(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
or | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to |
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
March 29, 2024 | December 31, 2023 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowance for credit losses of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Current assets held for sale | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Long-term financing receivables, less allowance for credit losses of $ | |||||||||||
Other intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings and current portion of long-term debt | $ | $ | |||||||||
Trade accounts payable | |||||||||||
Current operating lease liabilities | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Current liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
Long-term operating lease liabilities | |||||||||||
Long-term debt | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and Contingencies (Note 9) | |||||||||||
Equity: | |||||||||||
Preferred stock, | |||||||||||
Common stock, | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income | |||||||||||
Total Vontier stockholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended | |||||||||||
March 29, 2024 | March 31, 2023 | ||||||||||
Sales | $ | $ | |||||||||
Operating costs and expenses: | |||||||||||
Cost of sales, excluding amortization of acquisition-related intangible assets | ( | ( | |||||||||
Selling, general and administrative expenses | ( | ( | |||||||||
Research and development expenses | ( | ( | |||||||||
Amortization of acquisition-related intangible assets | ( | ( | |||||||||
Operating profit | |||||||||||
Non-operating income (expense), net: | |||||||||||
Interest expense, net | ( | ( | |||||||||
Gain on sale of business | |||||||||||
Other non-operating expense, net | ( | ( | |||||||||
Earnings before income taxes | |||||||||||
Provision for income taxes | ( | ( | |||||||||
Net earnings | $ | $ | |||||||||
Net earnings per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted average shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Net earnings | $ | $ | |||||||||
Other comprehensive income (loss), net of income taxes: | |||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||
Other adjustments | |||||||||||
Total other comprehensive loss, net of income taxes | ( | ( | |||||||||
Comprehensive income | $ | $ |
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock-based award activity, net of shares for tax withholding | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, March 29, 2024 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock-based award activity, net of shares for tax withholding | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | ( |
Three Months Ended | |||||||||||
March 29, 2024 | March 31, 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | $ | |||||||||
Non-cash items: | |||||||||||
Depreciation expense | |||||||||||
Amortization of acquisition-related intangible assets | |||||||||||
Stock-based compensation expense | |||||||||||
Gain on sale of business | ( | ||||||||||
Other non-cash items | ( | ||||||||||
Change in deferred income taxes | ( | ( | |||||||||
Change in accounts receivable and long-term financing receivables, net | ( | ||||||||||
Change in other operating assets and liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sale of business, net of cash provided | |||||||||||
Payments for additions to property, plant and equipment | ( | ( | |||||||||
Proceeds from sale of property | |||||||||||
Cash paid for equity investments | ( | ( | |||||||||
Proceeds from sale of equity securities | |||||||||||
Net cash provided by investing activities | |||||||||||
Cash flows from financing activities: | |||||||||||
Repayment of long-term debt | ( | ( | |||||||||
Net (repayments of) proceeds from short-term borrowings | ( | ||||||||||
Payments of common stock cash dividend | ( | ( | |||||||||
Purchases of treasury stock | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Other financing activities | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net change in cash and cash equivalents | |||||||||||
Beginning balance of cash and cash equivalents | |||||||||||
Ending balance of cash and cash equivalents | $ | $ |
($ in millions) | March 29, 2024 | December 31, 2023 | |||||||||
Gross current financing receivables: | |||||||||||
PSAs | $ | $ | |||||||||
Franchisee Notes | |||||||||||
Current financing receivables, gross | $ | $ | |||||||||
Allowance for credit losses: | |||||||||||
PSAs | $ | $ | |||||||||
Franchisee Notes | |||||||||||
Total allowance for credit losses | $ | $ | |||||||||
Net current financing receivables: | |||||||||||
PSAs, net | $ | $ | |||||||||
Franchisee Notes, net | |||||||||||
Total current financing receivables, net | $ | $ |
($ in millions) | March 29, 2024 | December 31, 2023 | |||||||||
Gross long-term financing receivables: | |||||||||||
PSAs | $ | $ | |||||||||
Franchisee Notes | |||||||||||
Long-term financing receivables, gross | $ | $ | |||||||||
Allowance for credit losses: | |||||||||||
PSAs | $ | $ | |||||||||
Franchisee Notes | |||||||||||
Total allowance for credit losses | $ | $ | |||||||||
Net long-term financing receivables: | |||||||||||
PSAs, net | $ | $ | |||||||||
Franchisee Notes, net | |||||||||||
Total long-term financing receivables, net | $ | $ |
($ in millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | ||||||||||||||||||||||||||||||||||
PSAs | |||||||||||||||||||||||||||||||||||||||||
Credit Score: | |||||||||||||||||||||||||||||||||||||||||
Less than 400 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
400-599 | |||||||||||||||||||||||||||||||||||||||||
600-799 | |||||||||||||||||||||||||||||||||||||||||
800+ | |||||||||||||||||||||||||||||||||||||||||
Total PSAs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Franchisee Notes | |||||||||||||||||||||||||||||||||||||||||
Active distributors | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Separated distributors | |||||||||||||||||||||||||||||||||||||||||
Total Franchisee Notes | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Current Period Gross Write-offs | |||||||||||||||||||||||||||||||||||||||||
PSAs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Franchisee Notes | |||||||||||||||||||||||||||||||||||||||||
Total current period gross write-offs | $ | $ | $ | $ | $ | $ | $ |
($ in millions) | 30-59 days past due | 60-90 days past due | Greater than 90 days past due | Total past due | Total not considered past due | Total | Greater than 90 days past due and accruing interest | |||||||||||||||||||||||||||||||||||||
March 29, 2024 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
December 31, 2023 |
March 29, 2024 | |||||||||||||||||
($ in millions) | PSAs | Franchisee Notes | Total | ||||||||||||||
Allowance for credit losses, beginning of year | $ | $ | $ | ||||||||||||||
Provision for credit losses | |||||||||||||||||
Write-offs | ( | ( | ( | ||||||||||||||
Recoveries of amounts previously charged off | |||||||||||||||||
Allowance for credit losses, end of period | $ | $ | $ |
($ in millions) | March 29, 2024 | ||||
Cost basis of trade accounts receivable | $ | ||||
Allowance for credit losses balance, beginning of year | |||||
Provision for credit losses | |||||
Write-offs | ( | ||||
Foreign currency and other | ( | ||||
Allowance for credit losses balance, end of period | |||||
Net trade accounts receivable balance | $ |
($ in millions) | March 29, 2024 | December 31, 2023 | |||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Raw materials | |||||||||||
Total | $ | $ |
($ in millions) | March 29, 2024 | December 31, 2023 | |||||||||
Short-term borrowings: | |||||||||||
Short-term borrowings and bank overdrafts | $ | $ | |||||||||
Long-term debt: | |||||||||||
Three-Year Term Loans due 2024 | $ | $ | |||||||||
Three-Year Term Loans due 2025 | |||||||||||
Revolving Credit Facility due 2026 | |||||||||||
Total long-term debt | |||||||||||
Less: current portion of long-term debt | ( | ( | |||||||||
Less: discounts and debt issuance costs | ( | ( | |||||||||
Total long-term debt, net | $ | $ |
($ in millions) | Foreign Currency Translation Adjustments | Other Adjustments (b) | Total | ||||||||||||||
For the Three Months Ended March 29, 2024: | |||||||||||||||||
Balance, December 31, 2023 | $ | $ | ( | $ | |||||||||||||
Other comprehensive loss before reclassifications, net of income taxes | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||||
Sale of business | (c) | ||||||||||||||||
Increase | (a) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of income taxes | |||||||||||||||||
Net current period other comprehensive (loss) income, net of income taxes | ( | ( | |||||||||||||||
Balance, March 29, 2024 | $ | $ | ( | $ | |||||||||||||
For the Three Months Ended March 31, 2023: | |||||||||||||||||
Balance, December 31, 2022 | $ | $ | ( | $ | |||||||||||||
Other comprehensive loss before reclassifications, net of income taxes | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||||
Increase | (a) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of income taxes | |||||||||||||||||
Net current period other comprehensive (loss) income, net of income taxes | ( | ( | |||||||||||||||
Balance, March 31, 2023 | $ | $ | ( | $ | |||||||||||||
(a) This accumulated other comprehensive income component is included in the computation of net periodic pension cost. | |||||||||||||||||
(b) Includes balances relating to defined benefit plans and supplemental executive retirement plans. | |||||||||||||||||
(c) Reclassified to Gain on sale of business in the Consolidated Condensed Statements of Earnings and Comprehensive Income. |
($ in millions) | March 29, 2024 | December 31, 2023 | |||||||||
Deferred revenue, current | $ | $ | |||||||||
Deferred revenue, noncurrent | |||||||||||
Total contract liabilities | $ | $ |
($ in millions) | Mobility Technologies | Repair Solutions | Environmental & Fueling Solutions | Other | Eliminations | Total | |||||||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||||||||
Sales of products | $ | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||||
Sales of services | — | ||||||||||||||||||||||||||||||||||
Intersegment sales | — | ( | — | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Geographic: | |||||||||||||||||||||||||||||||||||
North America (a) | $ | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||||
Western Europe | — | ||||||||||||||||||||||||||||||||||
High growth markets | — | ||||||||||||||||||||||||||||||||||
Rest of world | — | ||||||||||||||||||||||||||||||||||
Intersegment sales | — | ( | — | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
($ in millions) | Mobility Technologies | Repair Solutions | Environmental & Fueling Solutions | Other | Total | ||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||
Sales of products | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Sales of services | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Geographic: | |||||||||||||||||||||||||||||
North America (a) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||||||||
High growth markets | |||||||||||||||||||||||||||||
Rest of world | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Three Months Ended | |||||||||||
($ in millions) | March 29, 2024 | March 31, 2023 | |||||||||
Sales: | |||||||||||
Mobility Technologies(a) | $ | $ | |||||||||
Repair Solutions(b) | |||||||||||
Environmental & Fueling Solutions | |||||||||||
Other | |||||||||||
Intersegment eliminations | ( | ||||||||||
Total | $ | $ | |||||||||
Segment operating profit: | |||||||||||
Mobility Technologies | $ | $ | |||||||||
Repair Solutions(c) | |||||||||||
Environmental & Fueling Solutions | |||||||||||
Other | ( | ||||||||||
Segment operating profit | |||||||||||
Corporate & other unallocated costs(c)(d) | ( | ( | |||||||||
Operating profit | |||||||||||
Interest expense, net | ( | ( | |||||||||
Gain on sale of business | |||||||||||
Other non-operating expense, net | ( | ( | |||||||||
Earnings before income taxes | $ | $ | |||||||||
Depreciation expense: | |||||||||||
Mobility Technologies | $ | $ | |||||||||
Repair Solutions | |||||||||||
Environmental & Fueling Solutions | |||||||||||
Other | |||||||||||
Corporate | |||||||||||
Total | $ | $ |
($ in millions) | |||||
Balance, December 31, 2023 | $ | ||||
Accruals for warranties issued during the period | |||||
Settlements made | ( | ||||
Effect of foreign currency translation | ( | ||||
Balance, March 29, 2024 | $ |
($ in millions) | Classification | March 29, 2024 | December 31, 2023 | ||||||||||||||
Gross liabilities | |||||||||||||||||
Current | Accrued expenses and other current liabilities | $ | $ | ||||||||||||||
Long-term | Other long-term liabilities | ||||||||||||||||
Total | |||||||||||||||||
Projected insurance recoveries | |||||||||||||||||
Current | Prepaid expenses and other current assets | ||||||||||||||||
Long-term | Other assets | ||||||||||||||||
Total | $ | $ |
($ in millions) | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||
March 29, 2024 | |||||||||||||||||||||||
Contingent consideration liabilities | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation liabilities(a) | |||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Contingent consideration liabilities | |||||||||||||||||||||||
Deferred compensation liabilities(a) |
Three Months Ended | |||||||||||
(in millions, except per share amounts) | March 29, 2024 | March 31, 2023 | |||||||||
Numerator: | |||||||||||
Net earnings | $ | $ | |||||||||
Denominator: | |||||||||||
Basic weighted average common shares outstanding | |||||||||||
Effect of dilutive stock options and RSUs | |||||||||||
Diluted weighted average common shares outstanding | |||||||||||
Earnings per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Anti-dilutive shares |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 29, 2024 | % of Sales | March 31, 2023 | % of Sales | |||||||||||||||||||
Sales | $ | 755.8 | $ | 776.4 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales(a) | (383.8) | 50.8 | % | (423.4) | 54.5 | % | |||||||||||||||||
Selling, general and administrative expenses ("SG&A") | (165.4) | 21.9 | % | (157.5) | 20.3 | % | |||||||||||||||||
Research and development expenses ("R&D") | (44.5) | 5.9 | % | (41.0) | 5.3 | % | |||||||||||||||||
Amortization of acquisition-related intangible assets | (20.0) | 2.6 | % | (20.7) | 2.7 | % | |||||||||||||||||
Operating profit | $ | 142.1 | 18.8 | % | $ | 133.8 | 17.2 | % |
% Change Three Months Ended March 29, 2024 vs. Comparable 2023 Period | |||||
Total sales growth (GAAP) | (2.7) | % | |||
Core sales (Non-GAAP) | 3.9 | % | |||
Acquisitions and divestitures (Non-GAAP) | (5.8) | % | |||
Currency exchange rates (Non-GAAP) | (0.8) | % |
Three Months Ended | |||||||||||
($ in millions) | March 29, 2024 | March 31, 2023 | |||||||||
Mobility Technologies | $ | 242.7 | $ | 245.9 | |||||||
Repair Solutions | 182.4 | 181.4 | |||||||||
Environmental & Fueling Solutions | 331.0 | 313.8 | |||||||||
Other | 1.3 | 35.3 | |||||||||
Intersegment eliminations | (1.6) | — | |||||||||
Total | $ | 755.8 | $ | 776.4 |
% Change Three Months Ended March 29, 2024 vs. Comparable 2023 Period | |||||
Total sales growth (GAAP) | (1.3) | % | |||
Core sales (Non-GAAP) | 0.3 | % | |||
Acquisitions and divestitures (Non-GAAP) | — | % | |||
Currency exchange rates (Non-GAAP) | (1.6) | % |
% Change Three Months Ended March 29, 2024 vs. Comparable 2023 Period | |||||
Total sales growth (GAAP) | 0.6 | % | |||
Core sales (Non-GAAP) | 0.6 | % | |||
Acquisitions and divestitures (Non-GAAP) | — | % | |||
Currency exchange rates (Non-GAAP) | — | % |
% Change Three Months Ended March 29, 2024 vs. Comparable 2023 Period | |||||
Total sales growth (GAAP) | 5.5 | % | |||
Core sales (Non-GAAP) | 9.6 | % | |||
Acquisitions and divestitures (Non-GAAP) | (3.5) | % | |||
Currency exchange rates (Non-GAAP) | (0.6) | % |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 29, 2024 | Margin | March 31, 2023 | Margin | |||||||||||||||||||
Mobility Technologies | $ | 47.6 | 19.6 | % | $ | 47.9 | 19.5 | % | |||||||||||||||
Repair Solutions | 44.7 | 24.5 | 47.3 | 26.1 | |||||||||||||||||||
Environmental & Fueling Solutions | 97.3 | 29.4 | 80.7 | 25.7 | |||||||||||||||||||
Other | (0.4) | (30.8) | 3.8 | 10.8 | |||||||||||||||||||
Segment operating profit | 189.2 | 25.0 | 179.7 | 23.1 | |||||||||||||||||||
Corporate & other unallocated costs(a) | (47.1) | (6.2) | (45.9) | (5.9) | |||||||||||||||||||
Total operating profit | $ | 142.1 | 18.8 | % | $ | 133.8 | 17.2 | % |
Three Months Ended | |||||||||||
($ in millions) | March 29, 2024 | March 31, 2023 | |||||||||
Net cash provided by operating activities | $ | 91.5 | $ | 81.0 | |||||||
Proceeds from sale of business, net of cash provided | $ | 70.5 | $ | — | |||||||
Payments for additions to property, plant and equipment | (20.2) | (13.7) | |||||||||
Proceeds from sale of property | 0.9 | 4.2 | |||||||||
Cash paid for equity investments | (0.2) | (1.9) | |||||||||
Proceeds from sale of equity securities | — | 20.4 | |||||||||
Net cash provided by investing activities | $ | 51.0 | $ | 9.0 | |||||||
Repayment of long-term debt | $ | (50.0) | $ | (65.0) | |||||||
Net (repayments of) proceeds from short-term borrowings | (1.0) | 3.9 | |||||||||
Payments of common stock cash dividend | (3.9) | (3.9) | |||||||||
Purchases of treasury stock | (21.6) | (18.1) | |||||||||
Proceeds from stock option exercises | 12.8 | 1.2 | |||||||||
Other financing activities | (10.7) | (5.3) | |||||||||
Net cash used in financing activities | $ | (74.4) | $ | (87.2) |
Summarized Results of Operations Data ($ in millions) | Three Months Ended March 29, 2024 | ||||
Net sales (a) | $ | 410.4 | |||
Operating profit (b) | 140.3 | ||||
Net income (c) | $ | 93.2 | |||
(a) Includes intercompany sales of $5.0 million for the three months ended March 29, 2024. | |||||
(b) Includes intercompany operating profit of $0.7 million for the three months ended March 29, 2024. | |||||
(c) Includes intercompany pretax income of $0.4 million for the three months ended March 29, 2024. |
Summarized Balance Sheet Data ($ in millions) | March 29, 2024 | ||||
Assets | |||||
Current assets | $ | 419.7 | |||
Intercompany receivables | 1,826.4 | ||||
Noncurrent assets | 649.9 | ||||
Total assets | $ | 2,896.0 | |||
Liabilities | |||||
Current liabilities | $ | 405.4 | |||
Intercompany payables | 277.6 | ||||
Noncurrent liabilities | 2,242.9 | ||||
Total liabilities | $ | 2,925.9 |
Period | Total Number of Shares Purchased (in millions) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (in millions) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs ($ in millions) | |||||||||||||||||||
January 1, 2024 - January 26, 2024 | 0.5 | $ | 34.06 | 0.5 | $ | 335.6 | |||||||||||||||||
January 27, 2024 - February 23, 2024 | — | — | — | 335.6 | |||||||||||||||||||
February 24, 2024 - March 29, 2024 | 0.1 | 43.08 | 0.1 | 332.7 | |||||||||||||||||||
Total | 0.6 | 0.6 |
Incorporated by Reference (Unless Otherwise Indicated) | |||||||||||||||||
Exhibit Number | Exhibit Index | Form | File No. | Exhibit | Filing Date | ||||||||||||
22.1 | 10-K | 001-39483 | 22.1 | February 15, 2024 | |||||||||||||
31.1 | — | — | Filed herewith | ||||||||||||||
31.2 | — | — | Filed herewith | ||||||||||||||
32.1 | — | — | Filed herewith | ||||||||||||||
32.2 | — | — | Filed herewith | ||||||||||||||
101.INS | Inline XBRL Instance Document - the Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document | — | — | Filed herewith | |||||||||||||
101.SCH | Inline XBRL Taxonomy Schema Document | — | — | Filed herewith | |||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | — | — | Filed herewith | |||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | — | — | Filed herewith | |||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | — | — | Filed herewith | |||||||||||||
101.PRE | Inline Taxonomy Extension Presentation Linkbase Document | — | — | Filed herewith | |||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | — | — | Filed herewith | |||||||||||||
VONTIER CORPORATION: | ||||||||
Date: May 2, 2024 | By: | /s/ Anshooman Aga | ||||||
Anshooman Aga | ||||||||
Senior Vice President and Chief Financial Officer | ||||||||
Date: May 2, 2024 | By: | /s/ Paul V. Shimp | ||||||
Paul V. Shimp | ||||||||
Chief Accounting Officer |
Date: May 2, 2024 | By: | /s/ Mark D. Morelli | ||||||
Mark D. Morelli | ||||||||
President and Chief Executive Officer |
Date: May 2, 2024 | By: | /s/ Anshooman Aga | ||||||
Anshooman Aga | ||||||||
Senior Vice President and Chief Financial Officer |
Date: May 2, 2024 | By: | /s/ Mark D. Morelli | ||||||
Mark D. Morelli | ||||||||
President and Chief Executive Officer |
Date: May 2, 2024 | By: | /s/ Anshooman Aga | ||||||
Anshooman Aga | ||||||||
Senior Vice President and Chief Financial Officer |
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Mar. 29, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit losses | $ 36.6 | $ 35.7 |
Financing receivable, allowance for credit losses | $ 32.8 | $ 33.7 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, issued (in shares) | 171,700,000 | 170,800,000 |
Common stock, outstanding (in shares) | 154,600,000 | 154,300,000 |
Treasury stock, common, shares (in shares) | 17,100,000 | 16,500,000 |
Consolidated Condensed Statements of Changes in Equity (Parenthetical) - $ / shares |
3 Months Ended | |
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Mar. 29, 2024 |
Mar. 31, 2023 |
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Statement of Stockholders' Equity [Abstract] | ||
Dividend on common stock (in dollars per share) | $ 0.025 | $ 0.025 |
Business Overview and Basis of Presentation |
3 Months Ended |
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Mar. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview and Basis of Presentation | BUSINESS OVERVIEW AND BASIS OF PRESENTATION Nature of Business Vontier Corporation (“Vontier” or the “Company”) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. The Company operates through three reportable segments which align to the Company’s three operating segments: (i) Mobility Technologies, which provides digitally enabled equipment and solutions to support efficient operations across the mobility ecosystem, including point-of-sale and payment systems, workflow automation solutions, telematics, data analytics, software platform for electric vehicle charging networks, and integrated solutions for alternative fuel dispensing; (ii) Repair Solutions, which manufactures and distributes aftermarket vehicle repair tools, toolboxes, automotive diagnostic equipment and software through a network of mobile franchisees; and (iii) Environmental & Fueling Solutions, which provides environmental and fueling hardware and software, and aftermarket solutions for global fueling infrastructure. The Company’s Global Traffic Technologies and Coats businesses, which were divested during April 2023 and January 2024, respectively, are presented in Other for periods prior to the divestitures. Basis of Presentation and Unaudited Interim Financial Information The accompanying Consolidated Condensed Financial Statements present the Company’s historical financial position, results of operations, changes in equity and cash flows in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and are unaudited. The interim Consolidated Condensed Financial Statements include the accounts of Vontier and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. The Consolidated Condensed Financial Statements also reflect the impact of noncontrolling interests. Noncontrolling interests do not have a significant impact on the Company’s consolidated results of operations, therefore, net earnings and net earnings per share attributable to noncontrolling interests are not presented separately in the Company’s Consolidated Condensed Statements of Earnings and Comprehensive Income. Net earnings attributable to noncontrolling interests have been reflected in selling, general and administrative expenses (“SG&A”) and were insignificant in all periods presented. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The accompanying interim Consolidated Condensed Financial Statements and the related notes should be read in conjunction with the Company’s Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”). Foreign Currency Translation and Transactions Exchange rate adjustments resulting from foreign currency transactions are recognized in Net earnings, whereas effects resulting from the translation of financial statements are reflected as a component of Accumulated other comprehensive income within equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using period-end exchange rates and income statement accounts are translated at weighted average exchange rates. Net foreign currency transaction gains or losses were not material in any of the periods presented. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation of income taxes paid by jurisdiction. ASU 2023-09 is effective for the Company’s annual financial statements for the year ended December 31, 2025, with early adoption permitted. Prospective application is required, with retrospective application permitted. The Company is currently assessing the impact ASU 2023-09 will have on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which enhances segment disclosures primarily by requiring disclosure of significant segment expenses. ASU 2023-07 is effective for the Company’s annual financial statements for the year ended December 31, 2024, and for its interim financial statements beginning with the first fiscal quarter of the year ended December 31, 2025, with early adoption permitted. Retrospective application is required. The Company is currently assessing the impact ASU 2023-07 will have on its consolidated financial statements.
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Financing and Trade Receivables |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing and Trade Receivables | FINANCING AND TRADE RECEIVABLES The Company’s financing receivables are comprised of commercial purchase security agreements originated between the Company’s franchisees and technicians or independent shop owners that are assumed by the Company (“PSAs”) and commercial loans to the Company’s franchisees (“Franchisee Notes”) in the Repair Solutions segment. Financing receivables are generally secured by the underlying tools and equipment financed. PSAs are installment sales contracts originated between the franchisee and technicians or independent shop owners which enable these customers to purchase tools and equipment on an extended-term payment plan. PSA payment terms are generally up to five years. Upon origination, the Company assumes the PSA by crediting the franchisee’s trade accounts receivable. As a result, originations of PSAs are non-cash transactions. The Company records PSAs at amortized cost. Franchisee Notes have payment terms of up to 10 years and include financing to fund business startup costs including: (i) installment loans to franchisees used generally to finance inventory, equipment, and franchise fees; and (ii) lines of credit to finance working capital, including additional purchases of inventory. Revenues associated with the Company’s interest income related to financing receivables are recognized to approximate a constant effective yield over the contract term. Accrued interest is included in Accounts receivable, less allowance for credit losses on the Consolidated Condensed Balance Sheets and was insignificant as of March 29, 2024 and December 31, 2023. Product sales to franchisees and the related financing income is included in Cash flows from operating activities in the accompanying Consolidated Condensed Statements of Cash Flows. The components of financing receivables with payments due in less than twelve months that are presented in Accounts receivable, less allowance for credit losses on the Consolidated Condensed Balance Sheets were as follows:
The components of Long-term financing receivables, less allowance for credit losses, which consists of financing receivables with payments due beyond one year, were as follows:
As of March 29, 2024 and December 31, 2023, the net unamortized discount on our financing receivables was $18.5 million and $17.6 million, respectively. Credit score and distributor tenure are the primary indicators of credit quality for the Company’s financing receivables. The amortized cost basis and current period gross write-offs of PSAs and Franchisee Notes by origination year as of and for the three months ended March 29, 2024, is as follows:
Past Due PSAs are considered past due when a contractual payment has not been made. If a customer is making payments on its account, interest will continue to accrue. The table below sets forth the aging of the Company’s PSA balances as of:
Franchisee Notes are considered past due when payments have not been made for 21 days after the due date. Past due Franchisee Notes (where the franchisee had not yet separated) were insignificant as of March 29, 2024 and December 31, 2023. Uncollectable Status PSAs are deemed uncollectable and written off when they are both contractually delinquent and no payment has been received for 180 days. Franchisee Notes are deemed uncollectable and written off after a distributor separates and no payments have been received for one year. The Company stops accruing interest and other fees associated with financing receivables when (i) a customer is placed in uncollectable status and repossession efforts have begun; (ii) upon receipt of notification of bankruptcy; (iii) upon notification of the death of a customer; or (iv) other instances in which management concludes collectability is not reasonably assured. Allowance for Credit Losses Related to Financing Receivables The Company calculates the allowance for credit losses considering several factors, including the aging of its financing receivables, historical credit loss and portfolio delinquency experience and current economic conditions. The Company also evaluates financing receivables with identified exposures, such as customer defaults, bankruptcy or other events that make it unlikely it will recover the amounts owed to it. In calculating such reserves, the Company evaluates expected cash flows, including estimated proceeds from disposition of collateral, and calculates an estimate of the potential loss and the probability of loss. When a loss is considered probable on an individual financing receivable, a specific reserve is recorded. The following is a rollforward of the PSAs and Franchisee Notes components of the Company’s allowance for credit losses related to financing receivables as of:
Allowance for Credit Losses Related to Trade Accounts Receivables The following is a rollforward of the allowance for credit losses related to the Company’s trade accounts receivables, excluding financing receivables, and the Company’s trade accounts receivable cost basis as of:
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Inventories |
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES The classes of inventory as of March 29, 2024 and December 31, 2023 are summarized as follows:
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Financing |
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Financing | FINANCING The Company had the following debt outstanding as of:
The Company’s long-term debt requires, among others, that the Company maintains certain financial covenants, and the Company was in compliance with all of these covenants as of March 29, 2024. Credit Facilities Revolving Credit Facility The Revolving Credit Facility bears interest at a variable rate equal to SOFR plus an 11.4 basis points SOFR adjustment, plus a ratings-based margin which was 117.5 basis points as of March 29, 2024. As of March 29, 2024, there were no borrowings outstanding and $750.0 million of available borrowing capacity under the Revolving Credit Facility. Three-Year Term Loans Due 2024 The Three-Year Term Loans Due 2024, which mature on October 28, 2024, bear interest at a variable rate equal to SOFR plus an 11.4 basis points SOFR adjustment, plus a ratings-based margin which was 112.5 basis points as of March 29, 2024. The interest rate was 6.57% per annum as of March 29, 2024. The Company is not obligated to make repayments prior to the maturity date, but did voluntarily repay $50.0 million during the three months ended March 29, 2024. The Company is not permitted to re-borrow once repayment is made. There was no material difference between the carrying value and the estimated fair value of the debt outstanding as of March 29, 2024. Three-Year Term Loans Due 2025 The Three-Year Term Loans Due 2025 (together with the Three-Year Term Loans Due 2024, the “Term Loans”) bear interest at a variable rate equal to SOFR plus a 10.0 basis points credit spread adjustment, plus a ratings-based margin which was 125.0 basis points as of March 29, 2024. The interest rate was 6.69% per annum as of March 29, 2024. There was no material difference between the carrying value and the estimated fair value of the debt outstanding as of March 29, 2024. Senior Unsecured Notes The Company’s senior unsecured notes (collectively, the “Registered Notes”) consist of the following: •$500.0 million aggregate principal amount of senior notes due April 1, 2026 bearing interest at the rate of 1.800% per year; •$500.0 million aggregate principal amount of senior notes due April 1, 2028 bearing interest at the rate of 2.400% per year; and •$600.0 million aggregate principal amount of senior notes due April 1, 2031 bearing interest at the rate of 2.950% per year. The estimated fair value of the Registered Notes was $1.4 billion as of March 29, 2024. The fair value of the Registered Notes was determined based upon Level 2 inputs including indicative prices based upon observable market data. The difference between the fair value and the carrying amounts of the Registered Notes may be attributable to changes in market interest rates and/or the Company’s credit ratings subsequent to the incurrence of the borrowing. Short-term Borrowings As of March 29, 2024, certain of the Company’s businesses were in a cash overdraft position, and such overdrafts are included in Short-term borrowings and current portion of long-term debt on the Consolidated Condensed Balance Sheets. Additionally, the Company has other short-term borrowing arrangements with various banks to facilitate short-term cash flow requirements in certain countries also included in Short-term borrowings and current portion of long-term debt on the Consolidated Condensed Balance Sheets. Given the nature of the short-term borrowings, the carrying value approximates fair value as of March 29, 2024.
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Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. The changes in Accumulated other comprehensive income by component are summarized below:
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Sales |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | SALES Contract Assets In certain circumstances, contract assets are recorded which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is subject to contractual performance obligations rather than subject only to the passage of time. Contract assets were $6.6 million and $6.8 million as of March 29, 2024 and December 31, 2023, respectively, and are included in Prepaid expenses and other current assets in the accompanying Consolidated Condensed Balance Sheets. Contract Costs The Company incurs direct incremental costs to obtain and fulfill certain contracts, typically costs associated with assets used by our customers in certain sales arrangements and sales-related commissions. As of March 29, 2024 and December 31, 2023, the Company had $93.6 million and $90.9 million, respectively, in revenue-related capitalized contract costs primarily related to assets used by the Company’s customers in certain software contracts, which are recorded in Prepaid expenses and other current assets, for the current portion, and Other assets, for the noncurrent portion, in the accompanying Consolidated Condensed Balance Sheets. Contract Liabilities The Company’s contract liabilities consist of deferred revenue generally related to customer deposits, post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts where applicable. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized and is included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the accompanying Consolidated Condensed Balance Sheets. The Company’s contract liabilities consisted of the following:
During the three months ended March 29, 2024, the Company recognized $50.5 million of revenue related to the Company’s contract liabilities at December 31, 2023. The change in contract liabilities from December 31, 2023 to March 29, 2024 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performance obligations which are unsatisfied as of the end of the period. The Company has excluded performance obligations with an original expected duration of one year or less and amounts for variable consideration allocated to wholly-unsatisfied performance obligations. Remaining performance obligations as of March 29, 2024 were $483.0 million, the majority of which are related to software-as-a-service and extended warranty and service contracts. The Company expects approximately 65 percent of the remaining performance obligations will be fulfilled within the next two years, 80 percent within the next three years, and 90 percent within four years. Disaggregation of Revenue Revenue from contracts with customers is disaggregated by sales of products and services and geographic location for each of our reportable segments, as it best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Disaggregation of revenue was as follows for the three months ended March 29, 2024:
(a) Includes total sales in the United States of $537.4 million. Disaggregation of revenue was as follows for the three months ended March 31, 2023:
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Income Taxes |
3 Months Ended |
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Mar. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate for the three months ended March 29, 2024 was 16.0% as compared to 24.0% for the three months ended March 31, 2023. The decrease in the effective tax rate for the three months ended March 29, 2024 as compared to the comparable period in the prior year was primarily due to the non-taxable gain on the divestiture of the Coats business in the three months ended March 29, 2024. The Company’s effective tax rate for the three months ended March 29, 2024 differs from the U.S. federal statutory rate of 21% primarily due to the effect of state taxes, foreign taxable earnings at a rate different from the U.S. federal statutory rate, and the non-taxable gain on the divestiture of the Coats business. The Company’s effective tax rate for the three months ended March 31, 2023 differs from the U.S. federal statutory rate of 21% primarily due to the effect of state taxes
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION Segment operating profit is used as a performance metric by the chief operating decision maker (“CODM”) in determining how to allocate resources and assess performance. Segment operating profit represents total segment sales less operating costs attributable to the segment, which does not include unallocated corporate costs and other operating costs not allocated to the reportable segments as part of the CODM’s assessment of reportable segment operating performance, including stock-based compensation expense, amortization of acquisition-related intangible assets, restructuring costs, transaction- and deal-related costs, and other costs not indicative of the segment’s core operating performance. As part of the CODM’s assessment of the Repair Solutions segment, a capital charge based on the segment’s financing receivables portfolio is assessed by Corporate (the “Repair Solutions Capital Charge”). The unallocated corporate and other operating costs are presented in Corporate & other unallocated costs in the reconciliation to earnings before income taxes below. Intersegment sales primarily result from solutions developed by the Mobility Technologies segment that are integrated into products sold by the Environmental & Fueling Solutions segment. Intersegment sales are recorded at cost plus a margin which is intended to reflect the contribution made by the Mobility Technologies segment. Segment operating profit includes the operating profit from intersegment sales. Intersegment sales for the three months ended March 31, 2023 are not significant and have been eliminated in the segments’ results. The Company’s CODM does not review any information regarding total assets on a segment basis. Segment results for the periods indicated were as follows:
(a) Includes intersegment sales of $1.6 million for the three months ended March 29, 2024. (b) Includes interest income related to financing receivables of $18.9 million and $19.8 million for the three months ended March 29, 2024 and March 31, 2023, respectively. (c) Includes the Repair Solutions Capital Charge of $10.9 million and $10.2 million for the three months ended March 29, 2024 and March 31, 2023, respectively. (d) Includes amortization of acquisition-related intangible assets.
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Litigation and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Litigation and Contingencies | LITIGATION AND CONTINGENCIES Warranty Estimated warranty costs are generally accrued at the time of sale. In general, manufactured products are warrantied against defects in material and workmanship when properly used for their intended purpose, installed correctly and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances, estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. The following is a rollforward of the accrued warranty liability:
Litigation and Other Contingencies The Company is involved in legal proceedings from time to time in the ordinary course of its business. Although the outcome of such matters is uncertain, management believes that these legal proceedings will not have a material adverse effect on the financial condition or results of future operations of the Company. In accordance with accounting guidance, the Company records a liability in the Consolidated Condensed Financial Statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss does not meet the known or probable level but is reasonably possible and a loss or range of loss can be reasonably estimated, the estimated loss or range of loss is disclosed. Gross liabilities associated with known and future expected asbestos claims and projected insurance recoveries were as follows as of:
Guarantees As of March 29, 2024 and December 31, 2023, the Company had guarantees consisting primarily of outstanding standby letters of credit, bank guarantees, and performance and bid bonds of approximately $77.5 million and $79.2 million, respectively. These guarantees have been provided in connection with certain arrangements with vendors, customers, financing counterparties, and governmental entities to secure the Company’s obligations and/or performance requirements related to specific transactions.
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Fair Value Measurements |
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Fair Value Measurements | FAIR VALUE MEASUREMENTS Below is a summary of financial assets and liabilities that are measured at fair value on a recurring basis as of:
(a) Refer to Note 8. Fair Value Measurements to the Consolidated Financial Statements in the Company’s 2023 Annual Report on Form 10-K for more information on the Company’s deferred compensation liabilities. Contingent Consideration The fair value of the contingent consideration liabilities relates to payments to previous owners of acquired companies contingent on the achievement of certain revenue targets. The Company records a liability for contingent consideration in the purchase price for acquisitions at fair value on the acquisition date, and remeasures the liability at each reporting date, based on the Company’s estimate of the expected probability of achievement of the contingency targets. This estimate is based on significant unobservable inputs and represents a Level 3 measurement within the fair value hierarchy. Nonrecurring Fair Value Measurements Certain assets and liabilities are carried on the accompanying Consolidated Condensed Balance Sheets at cost and are not remeasured to fair value on a recurring basis. These assets include finite-lived intangible assets, which are tested for impairment when a triggering event occurs, and goodwill and identifiable indefinite-lived intangible assets, which are tested for impairment at least annually as of the first day of the fourth quarter or more frequently if events and circumstances indicate that the asset may not be recoverable. As of March 29, 2024, assets carried on the balance sheet and not remeasured to fair value on a recurring basis included $1.7 billion of goodwill and $546.4 million of identifiable intangible assets, net.
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Capital Stock and Earnings Per Share |
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock and Earnings Per Share | CAPITAL STOCK AND EARNINGS PER SHARE Earnings Per Share Basic earnings per share is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding. Diluted earnings per share is calculated by adjusting weighted average common shares outstanding for the dilutive effect of the assumed issuance of shares under stock-based compensation plans, determined using the treasury-stock method, except where the inclusion of such shares would have an anti-dilutive impact. Information related to the calculation of net earnings per share of common stock is summarized as follows:
Share Repurchase Program On May 24, 2022, the Company’s Board of Directors approved a replenishment of the Company’s previously approved share repurchase program announced in May 2021, bringing the total amount authorized for future share repurchases to $500.0 million. Under the share repurchase program, the Company may purchase shares of common stock from time to time in open market transactions, privately negotiated transactions, accelerated share repurchase programs, or by combinations of such methods, any of which may use prearranged trading plans that are designed to meet the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, corporate and regulatory requirements, restrictions under the Company’s debt obligations and other market and economic conditions. The share repurchase program may be suspended or discontinued at any time and has no expiration date. The Company repurchased 0.6 million of the Company’s shares for $21.6 million through open market transactions at an average price per share of $35.04 during the three months ended March 29, 2024. As of March 29, 2024, the Company has remaining authorization to repurchase $332.7 million of its common stock under the share repurchase program.
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Divestitures |
3 Months Ended |
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Mar. 29, 2024 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Divestitures | DIVESTITURES On January 8, 2024, the Company completed the sale of Coats for $74.5 million, subject to the finalization of customary working capital adjustments. As a result of the transaction, the Company recognized a preliminary gain of $39.8 million during the three months ended March 29, 2024, which is presented in Gain on sale of business in the Consolidated Condensed Statements of Earnings and Comprehensive Income. There is a transition services agreement (the “TSA”) in place between the Company and Coats which sets forth the terms and conditions pursuant to which the Company will provide certain services to Coats. Receipts related to the TSA were insignificant for the three months ended March 29, 2024. The operations of Coats did not meet the criteria to be presented as discontinued operations.
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Insider Trading Arrangements |
3 Months Ended |
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Mar. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business Overview and Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Unaudited Interim Financial Information | Basis of Presentation and Unaudited Interim Financial Information The accompanying Consolidated Condensed Financial Statements present the Company’s historical financial position, results of operations, changes in equity and cash flows in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and are unaudited. The interim Consolidated Condensed Financial Statements include the accounts of Vontier and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. The Consolidated Condensed Financial Statements also reflect the impact of noncontrolling interests. Noncontrolling interests do not have a significant impact on the Company’s consolidated results of operations, therefore, net earnings and net earnings per share attributable to noncontrolling interests are not presented separately in the Company’s Consolidated Condensed Statements of Earnings and Comprehensive Income. Net earnings attributable to noncontrolling interests have been reflected in selling, general and administrative expenses (“SG&A”) and were insignificant in all periods presented. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The accompanying interim Consolidated Condensed Financial Statements and the related notes should be read in conjunction with the Company’s Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”).
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Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Exchange rate adjustments resulting from foreign currency transactions are recognized in Net earnings, whereas effects resulting from the translation of financial statements are reflected as a component of Accumulated other comprehensive income within equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using period-end exchange rates and income statement accounts are translated at weighted average exchange rates. Net foreign currency transaction gains or losses were not material in any of the periods presented.
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Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation.
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Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation of income taxes paid by jurisdiction. ASU 2023-09 is effective for the Company’s annual financial statements for the year ended December 31, 2025, with early adoption permitted. Prospective application is required, with retrospective application permitted. The Company is currently assessing the impact ASU 2023-09 will have on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which enhances segment disclosures primarily by requiring disclosure of significant segment expenses. ASU 2023-07 is effective for the Company’s annual financial statements for the year ended December 31, 2024, and for its interim financial statements beginning with the first fiscal quarter of the year ended December 31, 2025, with early adoption permitted. Retrospective application is required. The Company is currently assessing the impact ASU 2023-07 will have on its consolidated financial statements.
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Sales | Contract Assets In certain circumstances, contract assets are recorded which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is subject to contractual performance obligations rather than subject only to the passage of time. Contract assets were $6.6 million and $6.8 million as of March 29, 2024 and December 31, 2023, respectively, and are included in Prepaid expenses and other current assets in the accompanying Consolidated Condensed Balance Sheets. Contract Costs The Company incurs direct incremental costs to obtain and fulfill certain contracts, typically costs associated with assets used by our customers in certain sales arrangements and sales-related commissions. As of March 29, 2024 and December 31, 2023, the Company had $93.6 million and $90.9 million, respectively, in revenue-related capitalized contract costs primarily related to assets used by the Company’s customers in certain software contracts, which are recorded in Prepaid expenses and other current assets, for the current portion, and Other assets, for the noncurrent portion, in the accompanying Consolidated Condensed Balance Sheets. Contract Liabilities The Company’s contract liabilities consist of deferred revenue generally related to customer deposits, post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts where applicable. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized and is included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the accompanying Consolidated Condensed Balance Sheets.
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Fair Value Measurements | The fair value of the contingent consideration liabilities relates to payments to previous owners of acquired companies contingent on the achievement of certain revenue targets. The Company records a liability for contingent consideration in the purchase price for acquisitions at fair value on the acquisition date, and remeasures the liability at each reporting date, based on the Company’s estimate of the expected probability of achievement of the contingency targets. This estimate is based on significant unobservable inputs and represents a Level 3 measurement within the fair value hierarchy.
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Financing and Trade Receivables (Tables) |
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of financing receivables with payments due in less than twelve months that are presented in Accounts receivable, less allowance for credit losses on the Consolidated Condensed Balance Sheets were as follows:
The components of Long-term financing receivables, less allowance for credit losses, which consists of financing receivables with payments due beyond one year, were as follows:
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Financing Receivable Credit Quality Indicators | The amortized cost basis and current period gross write-offs of PSAs and Franchisee Notes by origination year as of and for the three months ended March 29, 2024, is as follows:
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Financing Receivable, Past Due | PSAs are considered past due when a contractual payment has not been made. If a customer is making payments on its account, interest will continue to accrue. The table below sets forth the aging of the Company’s PSA balances as of:
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Financing Receivable, Allowance for Credit Loss | The following is a rollforward of the PSAs and Franchisee Notes components of the Company’s allowance for credit losses related to financing receivables as of:
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Accounts Receivable, Allowance for Credit Loss | The following is a rollforward of the allowance for credit losses related to the Company’s trade accounts receivables, excluding financing receivables, and the Company’s trade accounts receivable cost basis as of:
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Inventories (Tables) |
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | The classes of inventory as of March 29, 2024 and December 31, 2023 are summarized as follows:
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Financing (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The Company had the following debt outstanding as of:
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Accumulated Other Comprehensive Income (Tables) |
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of Accumulated Other Comprehensive Income | The changes in Accumulated other comprehensive income by component are summarized below:
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Sales (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract liabilities | The Company’s contract liabilities consisted of the following:
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Disaggregation of revenue | Disaggregation of revenue was as follows for the three months ended March 29, 2024:
(a) Includes total sales in the United States of $537.4 million. Disaggregation of revenue was as follows for the three months ended March 31, 2023:
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | Segment results for the periods indicated were as follows:
(a) Includes intersegment sales of $1.6 million for the three months ended March 29, 2024. (b) Includes interest income related to financing receivables of $18.9 million and $19.8 million for the three months ended March 29, 2024 and March 31, 2023, respectively. (c) Includes the Repair Solutions Capital Charge of $10.9 million and $10.2 million for the three months ended March 29, 2024 and March 31, 2023, respectively. (d) Includes amortization of acquisition-related intangible assets.
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Litigation and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Warranty Liability | The following is a rollforward of the accrued warranty liability:
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Schedule of Other Assets, Noncurrent | Gross liabilities associated with known and future expected asbestos claims and projected insurance recoveries were as follows as of:
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis | Below is a summary of financial assets and liabilities that are measured at fair value on a recurring basis as of:
(a) Refer to Note 8. Fair Value Measurements to the Consolidated Financial Statements in the Company’s 2023 Annual Report on Form 10-K for more information on the Company’s deferred compensation liabilities.
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Capital Stock and Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | Information related to the calculation of net earnings per share of common stock is summarized as follows:
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Business Overview and Basis of Presentation (Details) |
3 Months Ended |
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Mar. 29, 2024
Segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Number of operating segments | 3 |
Financing and Trade Receivables - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 29, 2024 |
Dec. 31, 2023 |
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Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Net unamortized discount on financing receivable | $ 18.5 | $ 17.6 |
Period after due date considered past due | 21 days | |
PSAs | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, period for uncollectible status | 180 days | |
PSAs | Maximum | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, payment terms | 5 years | |
Franchisee Notes | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, period for uncollectible status | 1 year | |
Franchisee Notes | Maximum | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, payment terms | 10 years |
Financing and Trade Receivables - Financing Receivable, Past Due (Details) - PSAs - USD ($) $ in Millions |
Mar. 29, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Past Due [Line Items] | ||
Total | $ 348.4 | $ 346.4 |
Greater than 90 days past due and accruing interest | 7.0 | 7.2 |
30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3.5 | 3.7 |
60-90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1.8 | 1.9 |
Greater than 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7.0 | 7.2 |
Total past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12.3 | 12.8 |
Total not considered past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 336.1 | $ 333.6 |
Financing and Trade Receivables - Financing Receivable, Allowance for Credit Loss (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 29, 2024
USD ($)
| |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses, beginning of year | $ 53.8 |
Provision for credit losses | 12.1 |
Write-offs | (12.8) |
Recoveries of amounts previously charged off | 0.4 |
Allowance for credit losses, end of period | 53.5 |
PSAs | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses, beginning of year | 41.5 |
Provision for credit losses | 9.9 |
Write-offs | (10.7) |
Recoveries of amounts previously charged off | 0.4 |
Allowance for credit losses, end of period | 41.1 |
Franchisee Notes | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses, beginning of year | 12.3 |
Provision for credit losses | 2.2 |
Write-offs | (2.1) |
Recoveries of amounts previously charged off | 0.0 |
Allowance for credit losses, end of period | $ 12.4 |
Financing and Trade Receivables - Accounts Receivable, Allowance for Credit Loss (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 29, 2024
USD ($)
| |
Credit Loss [Abstract] | |
Cost basis of trade accounts receivable | $ 432.5 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 15.6 |
Provision for credit losses | 2.5 |
Write-offs | (2.0) |
Foreign currency and other | (0.2) |
Ending balance | 15.9 |
Net trade accounts receivable balance | $ 416.6 |
Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Millions |
Mar. 29, 2024 |
Dec. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 134.3 | $ 132.8 |
Work in process | 17.9 | 20.1 |
Raw materials | 142.6 | 143.7 |
Total | $ 294.8 | $ 296.6 |
Financing - Schedule of Debt - Footnotes (Details) |
Mar. 29, 2024 |
---|---|
1.800% senior unsecured notes due 2026 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 1.80% |
2.400% senior unsecured notes due 2028 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 2.40% |
2.950% senior unsecured notes due 2031 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 2.95% |
Sales - Contract Assets and Costs (Details) - USD ($) $ in Millions |
Mar. 29, 2024 |
Dec. 31, 2023 |
---|---|---|
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 6.6 | $ 6.8 |
Deferred Sales Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Net revenue-related contract assets | $ 93.6 | $ 90.9 |
Sales - Contract liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 29, 2024 |
Dec. 31, 2023 |
|
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, current | $ 113.6 | $ 132.4 |
Deferred revenue, noncurrent | 57.9 | 53.6 |
Total contract liabilities | 171.5 | $ 186.0 |
Contract liabilities, revenue recognized | $ 50.5 |
Income Taxes (Details) |
3 Months Ended | |
---|---|---|
Mar. 29, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 16.00% | 24.00% |
Litigation and Contingencies - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 29, 2024 |
Dec. 31, 2023 |
|
Loss Contingencies [Line Items] | ||
Warranty period | 90 days | |
Standby letters of credit, bank guarantees, and performance and bid bonds | ||
Loss Contingencies [Line Items] | ||
Guarantees | $ 77.5 | $ 79.2 |
Litigation and Contingencies - Rollforward of Accrued Warranty Liability (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 29, 2024
USD ($)
| |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 43.0 |
Accruals for warranties issued during the period | 8.0 |
Settlements made | (9.9) |
Effect of foreign currency translation | (0.2) |
Ending balance | $ 40.9 |
Litigation and Contingencies -Schedule of Other Assets, Noncurrent (Details) - Asbestos Claims - USD ($) $ in Millions |
Mar. 29, 2024 |
Dec. 31, 2023 |
---|---|---|
Loss Contingencies [Line Items] | ||
Gross liabilities | $ 94.0 | $ 94.3 |
Projected insurance recoveries | 56.2 | 56.6 |
Accrued expenses and other current liabilities | ||
Loss Contingencies [Line Items] | ||
Gross liabilities | 17.5 | 17.8 |
Other long-term liabilities | ||
Loss Contingencies [Line Items] | ||
Gross liabilities | 76.5 | 76.5 |
Prepaid expenses and other current assets | ||
Loss Contingencies [Line Items] | ||
Projected insurance recoveries | 12.3 | 12.7 |
Other assets | ||
Loss Contingencies [Line Items] | ||
Projected insurance recoveries | $ 43.9 | $ 43.9 |
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions |
Mar. 29, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities | $ 5.4 | $ 9.3 |
Deferred compensation liabilities | 4.5 | 4.2 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities | 0.0 | 0.0 |
Deferred compensation liabilities | 4.5 | 4.2 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities | 0.0 | 0.0 |
Deferred compensation liabilities | 0.0 | 0.0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities | 5.4 | 9.3 |
Deferred compensation liabilities | $ 0.0 | $ 0.0 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
Mar. 29, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Goodwill | $ 1,732.1 | $ 1,742.4 |
Other intangible assets, net | $ 546.4 | $ 568.3 |
Capital Stock and Earnings Per Share - Schedule pf Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 29, 2024 |
Mar. 31, 2023 |
|
Numerator: | ||
Net earnings | $ 136.8 | $ 82.8 |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 154.5 | 155.7 |
Effect of dilutive stock options and RSUs (in shares) | 0.9 | 0.4 |
Diluted weighted average common shares outstanding (in shares) | 155.4 | 156.1 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.89 | $ 0.53 |
Diluted (in dollars per share) | $ 0.88 | $ 0.53 |
Anti-dilutive shares (in shares) | 1.0 | 3.4 |
Capital Stock and Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 29, 2024 |
Mar. 31, 2023 |
May 24, 2022 |
|
Equity, Class of Treasury Stock [Line Items] | |||
Authorized repurchase amount | $ 500.0 | ||
Stock repurchased | $ 21.9 | $ 18.4 | |
Remaining authorized repurchase amount | $ 332.7 | ||
Open Market Transactions | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased (in shares) | 0.6 | ||
Stock repurchased | $ 21.6 | ||
Stock repurchased (in dollars per share) | $ 35.04 |
Divestitures - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 29, 2024 |
Mar. 31, 2023 |
Jan. 08, 2024 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of business | $ 39.8 | $ 0.0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Coats | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration | $ 74.5 |
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