Delaware | 53-0257888 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3005 Highland Parkway | |
Downers Grove, Illinois | 60515 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer o | |
Non-accelerated filer o | (Do not check if smaller reporting company) | Smaller reporting company o |
Page | ||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue | $ | 1,686,345 | $ | 1,758,628 | $ | 3,308,618 | $ | 3,474,129 | |||||||
Cost of goods and services | 1,055,132 | 1,104,060 | 2,088,141 | 2,192,402 | |||||||||||
Gross profit | 631,213 | 654,568 | 1,220,477 | 1,281,727 | |||||||||||
Selling and administrative expenses | 437,411 | 402,695 | 880,859 | 837,329 | |||||||||||
Operating earnings | 193,802 | 251,873 | 339,618 | 444,398 | |||||||||||
Interest expense, net | 32,157 | 31,988 | 63,871 | 64,025 | |||||||||||
Other income, net | (2,854 | ) | (1,256 | ) | (16,376 | ) | (5,443 | ) | |||||||
Earnings before provision for income taxes and discontinued operations | 164,499 | 221,141 | 292,123 | 385,816 | |||||||||||
Provision for income taxes | 46,209 | 65,507 | 74,477 | 112,992 | |||||||||||
Earnings from continuing operations | 118,290 | 155,634 | 217,646 | 272,824 | |||||||||||
Earnings from discontinued operations, net | — | 176,762 | — | 269,082 | |||||||||||
Net earnings | $ | 118,290 | $ | 332,396 | $ | 217,646 | $ | 541,906 | |||||||
Earnings per share from continuing operations: | |||||||||||||||
Basic | $ | 0.76 | $ | 0.98 | $ | 1.40 | $ | 1.70 | |||||||
Diluted | $ | 0.76 | $ | 0.97 | $ | 1.39 | $ | 1.69 | |||||||
Earnings per share from discontinued operations: | |||||||||||||||
Basic | $ | — | $ | 1.11 | $ | — | $ | 1.68 | |||||||
Diluted | $ | — | $ | 1.10 | $ | — | $ | 1.66 | |||||||
Net earnings per share: | |||||||||||||||
Basic | $ | 0.76 | $ | 2.10 | $ | 1.40 | $ | 3.38 | |||||||
Diluted | $ | 0.76 | $ | 2.07 | $ | 1.39 | $ | 3.35 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 155,180 | 158,640 | 155,122 | 160,137 | |||||||||||
Diluted | 156,595 | 160,398 | 156,414 | 161,876 | |||||||||||
Dividends paid per common share | $ | 0.42 | $ | 0.40 | $ | 0.84 | $ | 0.80 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net earnings | $ | 118,290 | $ | 332,396 | $ | 217,646 | $ | 541,906 | |||||||
Other comprehensive (loss) earnings, net of tax | |||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||
Foreign currency translation (losses) gains during period | (41,992 | ) | 39,287 | (33,223 | ) | (44,542 | ) | ||||||||
Reclassification of foreign currency translation gains to earnings upon sale of subsidiaries | — | (2,837 | ) | — | (3,117 | ) | |||||||||
Total foreign currency translation | (41,992 | ) | 36,450 | (33,223 | ) | (47,659 | ) | ||||||||
Pension and other postretirement benefit plans: | |||||||||||||||
Amortization of actuarial losses included in net periodic pension cost | 1,416 | 2,590 | 2,825 | 5,188 | |||||||||||
Amortization of prior service costs included in net periodic pension cost | 1,040 | 1,227 | 2,081 | 2,455 | |||||||||||
Total pension and other postretirement benefit plans | 2,456 | 3,817 | 4,906 | 7,643 | |||||||||||
Changes in fair value of cash flow hedges: | |||||||||||||||
Unrealized net (losses) gains arising during period | (162 | ) | (807 | ) | (211 | ) | 351 | ||||||||
Net losses reclassified into earnings | 213 | 570 | 166 | 471 | |||||||||||
Total cash flow hedges | 51 | (237 | ) | (45 | ) | 822 | |||||||||
Other | (448 | ) | 277 | 1,392 | 491 | ||||||||||
Other comprehensive (loss) earnings | (39,933 | ) | 40,307 | (26,970 | ) | (38,703 | ) | ||||||||
Comprehensive earnings | $ | 78,357 | $ | 372,703 | $ | 190,676 | $ | 503,203 |
June 30, 2016 | December 31, 2015 | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 255,140 | $ | 362,185 | |||
Receivables, net of allowances of $19,402 and $18,050 | 1,180,146 | 1,120,490 | |||||
Inventories, net | 833,907 | 802,895 | |||||
Prepaid and other current assets | 110,563 | 133,440 | |||||
Total current assets | 2,379,756 | 2,419,010 | |||||
Property, plant and equipment, net | 853,584 | 854,269 | |||||
Goodwill | 4,034,499 | 3,737,389 | |||||
Intangible assets, net | 1,499,894 | 1,413,223 | |||||
Other assets and deferred charges | 211,359 | 182,185 | |||||
Total assets | $ | 8,979,092 | $ | 8,606,076 | |||
Current liabilities: | |||||||
Notes payable and current maturities of long-term debt | $ | 344,157 | $ | 151,122 | |||
Accounts payable | 723,693 | 650,880 | |||||
Accrued compensation and employee benefits | 197,166 | 223,039 | |||||
Accrued insurance | 102,219 | 99,642 | |||||
Other accrued expenses | 252,373 | 235,971 | |||||
Federal and other taxes on income | 20,759 | 6,528 | |||||
Total current liabilities | 1,640,367 | 1,367,182 | |||||
Long-term debt, net | 2,607,066 | 2,603,655 | |||||
Deferred income taxes | 593,776 | 575,709 | |||||
Other liabilities | 424,148 | 414,955 | |||||
Stockholders' equity: | |||||||
Total stockholders' equity | 3,713,735 | 3,644,575 | |||||
Total liabilities and stockholders' equity | $ | 8,979,092 | $ | 8,606,076 |
Common Stock $1 Par Value | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) | Treasury Stock | Total Stockholders' Equity | ||||||||||||||||||
Balance at December 31, 2015 | $ | 256,113 | $ | 928,409 | $ | 7,686,642 | $ | (254,573 | ) | $ | (4,972,016 | ) | $ | 3,644,575 | |||||||||
Net earnings | — | — | 217,646 | — | — | 217,646 | |||||||||||||||||
Dividends paid | — | — | (130,654 | ) | — | — | (130,654 | ) | |||||||||||||||
Common stock issued for the exercise of share-based awards | 211 | (7,651 | ) | — | — | — | (7,440 | ) | |||||||||||||||
Tax benefit from the exercise of share-based awards | — | 2,218 | — | — | — | 2,218 | |||||||||||||||||
Share-based compensation expense | — | 14,360 | — | — | — | 14,360 | |||||||||||||||||
Other comprehensive earnings, net of tax | — | — | — | (26,970 | ) | — | (26,970 | ) | |||||||||||||||
Balance at June 30, 2016 | $ | 256,324 | $ | 937,336 | $ | 7,773,634 | $ | (281,543 | ) | $ | (4,972,016 | ) | $ | 3,713,735 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Operating Activities of Continuing Operations | |||||||
Net earnings | $ | 217,646 | $ | 541,906 | |||
Adjustments to reconcile net earnings to cash from operating activities: | |||||||
Earnings from discontinued operations, net | — | (269,082 | ) | ||||
Depreciation and amortization | 176,698 | 158,209 | |||||
Share-based compensation | 14,360 | 18,851 | |||||
Gain on sale of assets | (1,530 | ) | — | ||||
Gain on sale of business | (11,228 | ) | — | ||||
Cash effect of changes in assets and liabilities: | |||||||
Accounts receivable | 429 | 17,459 | |||||
Inventories | (16,429 | ) | 861 | ||||
Prepaid expenses and other assets | (5,449 | ) | 1,025 | ||||
Accounts payable | 5,377 | 6,588 | |||||
Accrued compensation and employee benefits | (42,534 | ) | (87,716 | ) | |||
Accrued expenses and other liabilities | 16,135 | (21,313 | ) | ||||
Accrued and deferred taxes, net | 11,746 | (17,805 | ) | ||||
Other, net | (23,940 | ) | 1,260 | ||||
Net cash provided by operating activities of continuing operations | 341,281 | 350,243 | |||||
Investing Activities of Continuing Operations | |||||||
Additions to property, plant and equipment | (72,652 | ) | (71,763 | ) | |||
Acquisitions (net of cash and cash equivalents acquired) | (475,236 | ) | (6,500 | ) | |||
Proceeds from the sale of property, plant and equipment | 5,804 | 7,723 | |||||
Proceeds from the sale of businesses | 47,300 | 685,000 | |||||
Other | (488 | ) | — | ||||
Net cash (used in) provided by investing activities of continuing operations | (495,272 | ) | 614,460 | ||||
Financing Activities of Continuing Operations | |||||||
Purchase of common stock | — | (500,134 | ) | ||||
Proceeds from exercise of share-based awards, including tax benefits | 3,966 | 3,481 | |||||
Change in commercial paper and notes payable, net | 185,556 | (396,100 | ) | ||||
Dividends paid to stockholders | (131,253 | ) | (127,659 | ) | |||
Payments to settle employee tax obligations on exercise of share-based awards | (7,440 | ) | (4,478 | ) | |||
Reduction of long-term debt | — | (42 | ) | ||||
Net cash provided by (used in) financing activities of continuing operations | 50,829 | (1,024,932 | ) | ||||
Cash Flows from Discontinued Operations | |||||||
Net cash used in operating activities of discontinued operations | — | (10,053 | ) | ||||
Net cash used in investing activities of discontinued operations | — | (1,984 | ) | ||||
Net cash used in discontinued operations | — | (12,037 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (3,883 | ) | (14,147 | ) | |||
Net decrease in cash and cash equivalents | (107,045 | ) | (86,413 | ) | |||
Cash and cash equivalents at beginning of period | 362,185 | 681,581 | |||||
Cash and cash equivalents at end of period | $ | 255,140 | $ | 595,168 |
2016 Acquisitions | ||||
Date | Type | Company / Product Line Acquired | Location (Near) | Segment |
January 7 | Stock | Tokheim Group S.A.S. | Dundee, UK | Fluids |
Manufacturer of fuel dispensers, retail automation systems and payment solutions. | ||||
May 25 | Stock | Fairbanks Environmental LTD | Skelmersdale, UK | Fluids |
Provider of monitoring and optimization software and tools centered around fuel management and on-site services. | ||||
June 13 | Stock | ProGauge | Milan, Italy | Fluids |
Provider of automatic tank gauge solutions, including a variety of tank probes, consoles, and related software and calibration services for service stations to measure and monitor fuel tank levels. |
Total | |||
Current assets, net of cash acquired | $ | 101,243 | |
Property, plant and equipment | 31,240 | ||
Goodwill | 301,577 | ||
Intangible assets | 192,065 | ||
Other non-current assets | 5,564 | ||
Current liabilities | (105,699 | ) | |
Non-current liabilities | (50,754 | ) | |
Net assets acquired | $ | 475,236 |
Amount allocated | Useful life (in years) | ||||
Goodwill - Non deductible | $ | 301,577 | na | ||
Customer intangibles | 101,898 | 10 | |||
Trademarks | 24,866 | 15 | |||
Other intangibles | 65,301 | 10 | |||
$ | 493,642 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue from continuing operations: | |||||||||||||||
As reported | $ | 1,686,345 | $ | 1,758,628 | $ | 3,308,618 | $ | 3,474,129 | |||||||
Pro forma | 1,690,286 | 1,884,970 | 3,324,674 | 3,725,932 | |||||||||||
Earnings from continuing operations: | |||||||||||||||
As reported | $ | 118,290 | $ | 155,634 | $ | 217,646 | $ | 272,824 | |||||||
Pro forma | 120,556 | 165,251 | 229,031 | 286,930 | |||||||||||
Basic earnings per share from continuing operations: | |||||||||||||||
As reported | $ | 0.76 | $ | 0.98 | $ | 1.40 | $ | 1.70 | |||||||
Pro forma | 0.78 | 1.04 | 1.48 | 1.79 | |||||||||||
Diluted earnings per share from continuing operations: | |||||||||||||||
As reported | $ | 0.76 | $ | 0.97 | $ | 1.39 | $ | 1.69 | |||||||
Pro forma | 0.77 | 1.03 | 1.46 | 1.77 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2015 | 2015 | ||||||
Revenue | $ | 8,374 | $ | 72,869 | |||
Gain on sale, net of tax | 178,227 | 265,581 | |||||
(Loss) earnings from operations before taxes | (272 | ) | 8,708 | ||||
Provision for income taxes | (1,193 | ) | (5,207 | ) | |||
(Loss) earnings from operations, net of tax | (1,465 | ) | 3,501 | ||||
Earnings from discontinued operations, net of tax | $ | 176,762 | $ | 269,082 |
June 30, 2016 | December 31, 2015 | ||||||
Raw materials | $ | 354,170 | $ | 333,551 | |||
Work in progress | 154,841 | 135,624 | |||||
Finished goods | 436,755 | 443,032 | |||||
Subtotal | 945,766 | 912,207 | |||||
Less reserves | (111,859 | ) | (109,312 | ) | |||
Total | $ | 833,907 | $ | 802,895 |
June 30, 2016 | December 31, 2015 | ||||||
Land | $ | 56,104 | $ | 55,567 | |||
Buildings and improvements | 555,345 | 546,809 | |||||
Machinery, equipment and other | 1,780,162 | 1,772,031 | |||||
Subtotal | 2,391,611 | 2,374,407 | |||||
Less accumulated depreciation | (1,538,027 | ) | (1,520,138 | ) | |||
Total | $ | 853,584 | $ | 854,269 |
Energy | Engineered Systems | Fluids | Refrigeration & Food Equipment | Total | |||||||||||||||
Balance at December 31, 2015 | $ | 1,047,180 | $ | 1,473,864 | $ | 655,745 | $ | 560,600 | $ | 3,737,389 | |||||||||
Acquisitions | — | — | 301,577 | — | 301,577 | ||||||||||||||
Purchase price adjustments | — | 363 | 4,688 | 580 | 5,631 | ||||||||||||||
Disposition of business | — | (9,615 | ) | — | — | (9,615 | ) | ||||||||||||
Foreign currency translation | 1,463 | 1,394 | (3,747 | ) | 407 | (483 | ) | ||||||||||||
Balance at June 30, 2016 | $ | 1,048,643 | $ | 1,466,006 | $ | 958,263 | $ | 561,587 | $ | 4,034,499 |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Amortized intangible assets: | |||||||||||||||
Trademarks | $ | 175,774 | $ | 52,863 | $ | 150,926 | $ | 45,536 | |||||||
Patents | 152,110 | 119,160 | 150,570 | 112,399 | |||||||||||
Customer Intangibles | 1,661,639 | 658,738 | 1,567,048 | 595,635 | |||||||||||
Unpatented Technologies | 134,203 | 58,896 | 137,919 | 56,495 | |||||||||||
Drawings & Manuals | 39,437 | 22,473 | 34,232 | 15,760 | |||||||||||
Distributor Relationships | 117,272 | 41,421 | 64,614 | 37,610 | |||||||||||
Other | 26,898 | 19,532 | 23,923 | 18,168 | |||||||||||
Total | 2,307,333 | 973,083 | 2,129,232 | 881,603 | |||||||||||
Unamortized intangible assets: | |||||||||||||||
Trademarks | 165,644 | 165,594 | |||||||||||||
Total intangible assets, net | $ | 1,499,894 | $ | 1,413,223 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Energy | $ | 5,610 | $ | 2,556 | $ | 12,026 | $ | 20,378 | |||||||
Engineered Systems | 773 | 747 | 2,740 | 5,102 | |||||||||||
Fluids | 2,764 | 58 | 7,990 | 2,155 | |||||||||||
Refrigeration & Food Equipment | 52 | (243 | ) | 73 | (525 | ) | |||||||||
Corporate | — | — | 757 | 111 | |||||||||||
Total | $ | 9,199 | $ | 3,118 | $ | 23,586 | $ | 27,221 | |||||||
These amounts are classified in the unaudited Condensed Consolidated Statements of Earnings as follows: | |||||||||||||||
Cost of goods and services | $ | 4,329 | $ | 2,474 | $ | 10,180 | $ | 9,928 | |||||||
Selling and administrative expenses | 4,870 | 644 | 13,406 | 17,293 | |||||||||||
Total | $ | 9,199 | $ | 3,118 | $ | 23,586 | $ | 27,221 |
• | The Energy segment incurred restructuring charges of $5,610 related to various programs across the segment focused on workforce reductions and field and facility consolidations. These programs were initiated to better align cost base with the anticipated demand environment. |
• | The Fluids segment recorded $2,764 of restructuring charges principally related to headcount reductions and facility consolidations at various businesses across the segment. |
• | The Engineered Systems segment and Refrigeration and Food Equipment segment incurred restructuring charges related primarily to headcount reductions. |
Severance | Exit | Total | |||||||||
Balance at December 31, 2015 | $ | 11,036 | $ | 2,955 | $ | 13,991 | |||||
Restructuring charges | 17,052 | 6,534 | 23,586 | ||||||||
Payments | (16,973 | ) | (2,595 | ) | (19,568 | ) | |||||
Foreign currency translation | 10 | 36 | 46 | ||||||||
Other, including write-offs of fixed assets and acquired balances | 2,374 | (2,374 | ) | — | |||||||
Balance at June 30, 2016 | $ | 13,499 | $ | 4,556 | $ | 18,055 |
June 30, 2016 | December 31, 2015 | ||||||
Short-term | |||||||
Current portion of long-term debt | $ | 7,157 | $ | 122 | |||
Commercial paper | 337,000 | 151,000 | |||||
$ | 344,157 | $ | 151,122 |
June 30, 2016 | December 31, 2015 | ||||||
Long-term | |||||||
5.45% 10-year notes due March 15, 2018 | 349,423 | 349,258 | |||||
2.125% 7-year notes due December 1, 2020 (Euro-denominated) | 330,303 | 328,592 | |||||
4.30% 10-year notes due March 1, 2021 | 449,878 | 449,865 | |||||
3.150% 10-year notes due November 15, 2025 | 397,105 | 396,951 | |||||
6.65% 30-year debentures due June 1, 2028 | 199,569 | 199,552 | |||||
5.375% 30-year debentures due October 15, 2035 | 296,924 | 296,844 | |||||
6.60% 30-year notes due March 15, 2038 | 248,080 | 248,036 | |||||
5.375% 30-year notes due March 1, 2041 | 346,069 | 345,989 | |||||
Other, less current installments | 2,496 | 2,255 | |||||
Total long-term debt | 2,619,847 | 2,617,342 | |||||
Unamortized debt issuance costs | (12,781 | ) | (13,687 | ) | |||
Long-term debt, net of debt issuance costs | $ | 2,607,066 | $ | 2,603,655 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest expense | $ | 33,779 | $ | 33,053 | $ | 67,097 | $ | 66,058 | |||||||
Interest income | (1,622 | ) | (1,065 | ) | (3,226 | ) | (2,033 | ) | |||||||
Interest expense, net | $ | 32,157 | $ | 31,988 | $ | 63,871 | $ | 64,025 |
Fair Value Asset (Liability) | |||||||||
June 30, 2016 | December 31, 2015 | Balance Sheet Caption | |||||||
Foreign currency forward / collar contracts | $ | 329 | $ | 170 | Prepaid / Other assets | ||||
Foreign currency forward / collar contracts | (551 | ) | (452 | ) | Other accrued expenses |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Gain (loss) on Euro-denominated debt | $ | 4,500 | $ | (6,975 | ) | $ | (1,665 | ) | $ | 28,375 | |||||
Loss on Swiss franc cross-currency swap | — | (2,716 | ) | — | (4,049 | ) | |||||||||
Total gain (loss) on net investment hedges before tax | 4,500 | (9,691 | ) | (1,665 | ) | 24,326 | |||||||||
Tax (expense) benefit | (1,575 | ) | 3,392 | 583 | (8,514 | ) | |||||||||
Net gain (loss) on net investment hedges, net of tax | $ | 2,925 | $ | (6,299 | ) | $ | (1,082 | ) | $ | 15,812 |
June 30, 2016 | December 31, 2015 | ||||||
Level 2 | Level 2 | ||||||
Assets: | |||||||
Foreign currency cash flow hedges | $ | 329 | $ | 170 | |||
Liabilities: | |||||||
Foreign currency cash flow hedges | 551 | 452 |
SARs | |||||||
2016 | 2015 | ||||||
Risk-free interest rate | 1.05 | % | 1.51 | % | |||
Dividend yield | 3.09 | % | 2.24 | % | |||
Expected life (years) | 4.6 | 5.1 | |||||
Volatility | 26.17 | % | 27.19 | % | |||
Grant price | $ | 57.25 | $ | 73.28 | |||
Fair value per share at date of grant | $ | 9.25 | $ | 14.55 |
Performance shares | |||||||
2016 | 2015 | ||||||
Fair value per share at date of grant | $ | 57.25 | $ | 73.28 | |||
Average attainment rate reflected in expense | 45.14 | % | 29.81 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Pre-tax compensation expense | $ | 2,973 | $ | 5,464 | $ | 14,360 | $ | 18,851 | |||||||
Tax benefit | (1,030 | ) | (1,917 | ) | (5,080 | ) | (6,681 | ) | |||||||
Total stock-based compensation expense, net of tax | $ | 1,943 | $ | 3,547 | $ | 9,280 | $ | 12,170 |
2016 | 2015 | ||||||
Beginning Balance, January 1 | $ | 44,466 | $ | 49,388 | |||
Provision for warranties | 29,148 | 24,877 | |||||
Settlements made | (26,649 | ) | (28,390 | ) | |||
Other adjustments, including acquisitions and currency translation | 3,011 | (517 | ) | ||||
Ending balance, June 30 | $ | 49,976 | $ | 45,358 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
U.S. Plan | Non-U.S. Plans | U.S. Plan | Non-U.S. Plans | ||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
Service Cost | $ | 3,479 | $ | 3,916 | $ | 1,405 | $ | 1,663 | $ | 6,957 | $ | 7,831 | $ | 2,778 | $ | 3,351 | |||||||||||||||
Interest Cost | 5,761 | 5,791 | 1,394 | 1,476 | 11,523 | 11,582 | 2,769 | 2,962 | |||||||||||||||||||||||
Expected return on plan assets | (9,699 | ) | (10,393 | ) | (1,974 | ) | (2,011 | ) | (19,397 | ) | (20,786 | ) | (3,922 | ) | (4,030 | ) | |||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||
Prior service cost | 183 | 224 | (100 | ) | 22 | 366 | 448 | (199 | ) | 45 | |||||||||||||||||||||
Recognized actuarial loss | 1,610 | 3,155 | 675 | 661 | 3,219 | 6,310 | 1,340 | 1,336 | |||||||||||||||||||||||
Transition obligation | — | — | 1 | 9 | — | — | 2 | 18 | |||||||||||||||||||||||
Curtailments, special termination benefits, and settlements | — | — | — | 1 | 810 | 3 | |||||||||||||||||||||||||
Net periodic expense | $ | 1,334 | $ | 2,693 | $ | 1,401 | $ | 1,821 | $ | 2,668 | $ | 6,195 | $ | 2,768 | $ | 3,685 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service Cost | $ | 739 | $ | 935 | $ | 1,479 | $ | 1,870 | |||||||
Interest Cost | 1,317 | 1,265 | 2,634 | 2,531 | |||||||||||
Amortization: | |||||||||||||||
Prior service cost | 1,566 | 1,732 | 3,133 | 3,464 | |||||||||||
Recognized actuarial (gain) loss | (140 | ) | 72 | (280 | ) | 143 | |||||||||
Net periodic expense | $ | 3,482 | $ | 4,004 | $ | 6,966 | $ | 8,008 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service Cost | $ | 13 | $ | 40 | $ | 26 | $ | 81 | |||||||
Interest Cost | 104 | 128 | 209 | 256 | |||||||||||
Amortization: | |||||||||||||||
Prior service cost | (35 | ) | (93 | ) | (71 | ) | (186 | ) | |||||||
Recognized actuarial gain | (59 | ) | (7 | ) | (118 | ) | (15 | ) | |||||||
Net periodic expense | $ | 23 | $ | 68 | $ | 46 | $ | 136 |
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | ||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | ||||||||||||||||||
Foreign currency translation adjustments | $ | (40,417 | ) | $ | (1,575 | ) | $ | (41,992 | ) | $ | 33,058 | $ | 3,392 | $ | 36,450 | ||||||||
Pension and other postretirement benefit plans | 3,701 | (1,245 | ) | 2,456 | 5,775 | (1,958 | ) | 3,817 | |||||||||||||||
Changes in fair value of cash flow hedges | 78 | (27 | ) | 51 | (364 | ) | 127 | (237 | ) | ||||||||||||||
Other | (507 | ) | 59 | (448 | ) | 317 | (40 | ) | 277 | ||||||||||||||
Total other comprehensive (loss) earnings | $ | (37,145 | ) | $ | (2,788 | ) | $ | (39,933 | ) | $ | 38,786 | $ | 1,521 | $ | 40,307 |
Six Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | ||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | ||||||||||||||||||
Foreign currency translation adjustments | $ | (33,806 | ) | $ | 583 | $ | (33,223 | ) | $ | (39,145 | ) | $ | (8,514 | ) | $ | (47,659 | ) | ||||||
Pension and other postretirement benefit plans | 7,392 | (2,486 | ) | 4,906 | 11,563 | (3,920 | ) | 7,643 | |||||||||||||||
Changes in fair value of cash flow hedges | (69 | ) | 24 | (45 | ) | 1,265 | (443 | ) | 822 | ||||||||||||||
Other | 1,584 | (192 | ) | 1,392 | 558 | (67 | ) | 491 | |||||||||||||||
Total other comprehensive loss | $ | (24,899 | ) | $ | (2,071 | ) | $ | (26,970 | ) | $ | (25,759 | ) | $ | (12,944 | ) | $ | (38,703 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net earnings | $ | 118,290 | $ | 332,396 | $ | 217,646 | $ | 541,906 | |||||||
Other comprehensive (loss) earnings | (39,933 | ) | 40,307 | (26,970 | ) | (38,703 | ) | ||||||||
Comprehensive earnings | $ | 78,357 | $ | 372,703 | $ | 190,676 | $ | 503,203 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Pension and postretirement benefit plans: | |||||||||||||||
Amortization of actuarial losses | $ | 2,087 | $ | 3,890 | $ | 4,163 | $ | 7,792 | |||||||
Amortization of prior service costs | 1,614 | 1,885 | 3,229 | 3,771 | |||||||||||
Total before tax | 3,701 | 5,775 | 7,392 | 11,563 | |||||||||||
Tax provision | (1,245 | ) | (1,958 | ) | (2,486 | ) | (3,920 | ) | |||||||
Net of tax | $ | 2,456 | $ | 3,817 | $ | 4,906 | $ | 7,643 | |||||||
Cash flow hedges: | |||||||||||||||
Net gains reclassified into earnings | $ | 328 | $ | 877 | $ | 256 | $ | 724 | |||||||
Tax provision | (115 | ) | (307 | ) | (90 | ) | (253 | ) | |||||||
Net of tax | $ | 213 | $ | 570 | $ | 166 | $ | 471 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue: | |||||||||||||||
Energy | $ | 259,008 | $ | 366,044 | $ | 542,238 | $ | 796,467 | |||||||
Engineered Systems | 592,432 | 593,091 | 1,169,427 | 1,166,287 | |||||||||||
Fluids | 405,838 | 351,511 | 804,900 | 691,747 | |||||||||||
Refrigeration & Food Equipment | 429,386 | 448,115 | 792,638 | 820,212 | |||||||||||
Intra-segment eliminations | (319 | ) | (133 | ) | (585 | ) | (584 | ) | |||||||
Total consolidated revenue | $ | 1,686,345 | $ | 1,758,628 | $ | 3,308,618 | $ | 3,474,129 | |||||||
Earnings from continuing operations: | |||||||||||||||
Segment (loss) earnings: | |||||||||||||||
Energy | $ | (75 | ) | $ | 40,909 | $ | 11,169 | $ | 93,214 | ||||||
Engineered Systems | 104,034 | 96,702 | 197,782 | 184,851 | |||||||||||
Fluids | 54,033 | 70,168 | 100,080 | 124,802 | |||||||||||
Refrigeration & Food Equipment | 63,230 | 65,732 | 101,391 | 101,882 | |||||||||||
Total segments | 221,222 | 273,511 | 410,422 | 504,749 | |||||||||||
Corporate expense / other (1) | 24,566 | 20,382 | 54,428 | 54,908 | |||||||||||
Net interest expense | 32,157 | 31,988 | 63,871 | 64,025 | |||||||||||
Earnings before provision for income taxes and discontinued operations | 164,499 | 221,141 | 292,123 | 385,816 | |||||||||||
Provision for taxes | 46,209 | 65,507 | 74,477 | 112,992 | |||||||||||
Earnings from continuing operations | $ | 118,290 | $ | 155,634 | $ | 217,646 | $ | 272,824 |
(1) | Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, and various administrative expenses relating to the corporate headquarters. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2015 | 2015 | |||||||
Shares of common stock repurchased | 3,965,253 | 6,718,418 | ||||||
Spending on share repurchases (in thousands) | $ | 300,079 | $ | 500,134 | ||||
Average price paid per share | $ | 75.68 | $ | 74.44 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Earnings from continuing operations | $ | 118,290 | $ | 155,634 | $ | 217,646 | $ | 272,824 | |||||||
Earnings from discontinued operations, net | — | 176,762 | — | 269,082 | |||||||||||
Net earnings | $ | 118,290 | $ | 332,396 | $ | 217,646 | $ | 541,906 | |||||||
Basic earnings per common share: | |||||||||||||||
Earnings from continuing operations | $ | 0.76 | $ | 0.98 | $ | 1.40 | $ | 1.70 | |||||||
Earnings from discontinued operations, net | $ | — | $ | 1.11 | $ | — | $ | 1.68 | |||||||
Net earnings | $ | 0.76 | $ | 2.10 | $ | 1.40 | $ | 3.38 | |||||||
Weighted average shares outstanding | 155,180,000 | 158,640,000 | 155,122,000 | 160,137,000 | |||||||||||
Diluted earnings per common share: | |||||||||||||||
Earnings from continuing operations | $ | 0.76 | $ | 0.97 | $ | 1.39 | $ | 1.69 | |||||||
Earnings from discontinued operations, net | $ | — | $ | 1.10 | $ | — | $ | 1.66 | |||||||
Net earnings | $ | 0.76 | $ | 2.07 | $ | 1.39 | $ | 3.35 | |||||||
Weighted average shares outstanding | 156,595,000 | 160,398,000 | 156,414,000 | 161,876,000 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Weighted average shares outstanding - Basic | 155,180,000 | 158,640,000 | 155,122,000 | 160,137,000 | |||||||
Dilutive effect of assumed exercise of employee stock options and SARs and vesting of performance shares | 1,415,000 | 1,758,000 | 1,292,000 | 1,739,000 | |||||||
Weighted average shares outstanding - Diluted | 156,595,000 | 160,398,000 | 156,414,000 | 161,876,000 |
• | Our Energy segment, serving the Drilling & Production, Bearings & Compression, and Automation end markets, is a provider of customer-driven solutions and services for safe and efficient production and processing of fuels worldwide and has a strong presence in the bearings and compression components and automation markets. |
• | Our Engineered Systems segment is comprised of two platforms, Printing & Identification and Industrials, and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions and industrial end markets. |
• | Our Fluids segment, serving the Fluid Transfer and Pumps end markets, is focused on the safe handling of critical fluids across the retail fueling, chemical, hygienic, oil and gas, and industrial end markets. |
• | Our Refrigeration & Food Equipment segment is a provider of innovative and energy efficient equipment and systems serving the commercial refrigeration and food service end markets. |
Revenue | Segment Earnings | ||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Energy | 15.4 | % | 20.8 | % | — | % | 15.0 | % | |||
Engineered Systems | 35.1 | % | 33.7 | % | 47.0 | % | 35.4 | % | |||
Fluids | 24.0 | % | 20.0 | % | 24.4 | % | 25.6 | % | |||
Refrigeration & Food Equipment | 25.5 | % | 25.5 | % | 28.6 | % | 24.0 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
(dollars in thousands, except per share figures) | 2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||
Revenue | $ | 1,686,345 | $ | 1,758,628 | (4.1 | )% | $ | 3,308,618 | $ | 3,474,129 | (4.8 | )% | |||||||||
Cost of goods and services | 1,055,132 | 1,104,060 | (4.4 | )% | 2,088,141 | 2,192,402 | (4.8 | )% | |||||||||||||
Gross profit | 631,213 | 654,568 | (3.6 | )% | 1,220,477 | 1,281,727 | (4.8 | )% | |||||||||||||
Gross profit margin | 37.4 | % | 37.2 | % | 0.2 | 36.9 | % | 36.9 | % | — | |||||||||||
Selling and administrative expenses | 437,411 | 402,695 | 8.6 | % | 880,859 | 837,329 | 5.2 | % | |||||||||||||
Selling and administrative as a percent of revenue | 25.9 | % | 22.9 | % | 3.0 | % | 26.6 | % | 24.1 | % | 2.5 | % | |||||||||
Interest expense, net | 32,157 | 31,988 | 0.5 | % | 63,871 | 64,025 | (0.2 | )% | |||||||||||||
Other income, net | (2,854 | ) | (1,256 | ) | nm* | (16,376 | ) | (5,443 | ) | nm* | |||||||||||
Provision for income taxes | 46,209 | 65,507 | (29.5 | )% | 74,477 | 112,992 | (34.1 | )% | |||||||||||||
Effective tax rate | 28.1 | % | 29.6 | % | (1.5 | ) | 25.5 | % | 29.3 | % | (3.8 | ) | |||||||||
Earnings from continuing operations | 118,290 | 155,634 | (24.0 | )% | 217,646 | 272,824 | (20.2 | )% | |||||||||||||
Earnings from discontinued operations, net | — | 176,762 | nm* | — | 269,082 | nm* | |||||||||||||||
Earnings from continuing operations per common share - diluted | $ | 0.76 | $ | 0.97 | (21.6 | )% | $ | 1.39 | $ | 1.69 | (17.8 | )% |
• | The Energy segment incurred restructuring charges of $5.6 million related to various programs across the segment focused on workforce reductions and field and facility consolidations. These programs were initiated to better align cost base with the anticipated demand environment. |
• | The Fluids segment recorded $2.8 million of restructuring charges principally related to headcount reductions and facility consolidations at various businesses across the segment. |
• | The Engineered Systems segment and Refrigeration and Food Equipment segment incurred restructuring charges related primarily to headcount reductions. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Revenue: | ||||||||||||||||||||||
Drilling & Production | $ | 164,288 | $ | 247,080 | (33.5 | )% | $ | 352,648 | $ | 546,238 | (35.4 | )% | ||||||||||
Bearings & Compression | 68,549 | 79,616 | (13.9 | )% | 132,993 | 157,207 | (15.4 | )% | ||||||||||||||
Automation | 26,171 | 39,348 | (33.5 | )% | 56,597 | 93,022 | (39.2 | )% | ||||||||||||||
Total | $ | 259,008 | $ | 366,044 | (29.2 | )% | $ | 542,238 | $ | 796,467 | (31.9 | )% | ||||||||||
Segment (loss) earnings | $ | (75 | ) | $ | 40,909 | (100.2 | )% | $ | 11,169 | $ | 93,214 | (88.0 | )% | |||||||||
Operating margin | 0.0 | % | 11.2 | % | 2.1 | % | 11.7 | % | ||||||||||||||
Segment EBITDA | $ | 33,214 | $ | 73,649 | (54.9 | )% | $ | 78,618 | $ | 160,381 | (51.0 | )% | ||||||||||
Segment EBITDA margin | 12.8 | % | 20.1 | % | 14.5 | % | 20.1 | % | ||||||||||||||
Other measures: | ||||||||||||||||||||||
Depreciation and amortization | $ | 33,289 | $ | 32,740 | 1.7 | % | $ | 67,449 | $ | 67,167 | 0.4 | % | ||||||||||
Bookings | 246,021 | 345,079 | (28.7 | )% | 519,466 | 761,707 | (31.8 | )% | ||||||||||||||
Backlog | 129,873 | 194,819 | (33.3 | )% | ||||||||||||||||||
Components of revenue decline: | Q2 2016 vs. Q2 2015 | YTD 2016 vs. 2015 | ||||||||||||||||||||
Organic decline | (28.4 | )% | (30.9 | )% | ||||||||||||||||||
Acquisitions | — | % | — | % | ||||||||||||||||||
Foreign currency translation | (0.8 | )% | (1.0 | )% | ||||||||||||||||||
(29.2 | )% | (31.9 | )% |
• | Drilling & Production end market revenue (representing 63.4% of segment revenue) decreased $82.8 million, or 33.5%, due to declines in U.S. rig count and end-customer capital spending in our North American markets. Our customers continue to delay and significantly limit their capital spending due to uncertainty within the oil and gas markets they serve and to conserve cash. |
• | Bearings & Compression end market revenue (representing 26.5% of segment revenue) decreased $11.1 million, or 13.9%, as U.S. OEM end-user demand weakened within its end markets, especially with oil and gas customers. |
• | Automation end market revenue (representing 10.1% of segment revenue) decreased $13.2 million, or 33.5%. This decrease was driven by customer project delays, as low oil prices and market uncertainties continued to drive reduced capital spending by well service and exploration and production companies. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Revenue: | ||||||||||||||||||||||
Printing & Identification | $ | 263,648 | $ | 229,934 | 14.7 | % | $ | 503,329 | $ | 460,115 | 9.4 | % | ||||||||||
Industrials | 328,784 | 363,157 | (9.5 | )% | 666,098 | 706,172 | (5.7 | )% | ||||||||||||||
Total | $ | 592,432 | $ | 593,091 | (0.1 | )% | $ | 1,169,427 | $ | 1,166,287 | 0.3 | % | ||||||||||
Segment earnings | $ | 104,034 | $ | 96,702 | 7.6 | % | $ | 197,782 | $ | 184,851 | 7.0 | % | ||||||||||
Operating margin | 17.6 | % | 16.3 | % | 16.9 | % | 15.8 | % | ||||||||||||||
Segment EBITDA | $ | 120,109 | $ | 111,094 | 8.1 | % | $ | 229,893 | $ | 213,769 | 7.5 | % | ||||||||||
Segment EBITDA margin | 20.3 | % | 18.7 | % | 19.7 | % | 18.3 | % | ||||||||||||||
Other measures: | ||||||||||||||||||||||
Depreciation and amortization | $ | 16,075 | $ | 14,392 | 11.7 | % | $ | 32,111 | $ | 28,918 | 11.0 | % | ||||||||||
Bookings: | ||||||||||||||||||||||
Printing & Identification | $ | 266,490 | $ | 224,203 | 18.9 | % | $ | 509,059 | $ | 459,820 | 10.7 | % | ||||||||||
Industrials | 304,345 | 336,173 | (9.5 | )% | 634,302 | 673,243 | (5.8 | )% | ||||||||||||||
$ | 570,835 | $ | 560,376 | 1.9 | % | $ | 1,143,361 | $ | 1,133,063 | 0.9 | % | |||||||||||
Backlog: | ||||||||||||||||||||||
Printing & Identification | $ | 104,509 | $ | 103,403 | 1.1 | % | ||||||||||||||||
Industrials | 210,646 | 248,592 | (15.3 | )% | ||||||||||||||||||
$ | 315,155 | $ | 351,995 | (10.5 | )% | |||||||||||||||||
Components of revenue decline: | Q2 2016 vs. Q2 2015 | YTD 2016 vs. 2015 | ||||||||||||||||||||
Organic growth | 2.0 | % | 2.3 | % | ||||||||||||||||||
Acquisitions | 3.2 | % | 3.1 | % | ||||||||||||||||||
Dispositions | (4.3 | )% | (3.6 | )% | ||||||||||||||||||
Foreign currency translation | (1.0 | )% | (1.5 | )% | ||||||||||||||||||
(0.1 | )% | 0.3 | % |
• | Revenue of our Printing & Identification platform (representing 44.5% of segment revenue) increased $33.7 million, or 14.7%, primarily driven by organic growth of 8.6% and acquisition-related growth of 8.2%, offset by the negative impact of foreign currency translation of 2.1%. Organic revenue growth was primarily driven by solid activity in our global marking and coding and digital printing equipment businesses. |
• | Revenue of our Industrials platform (representing 55.5% of segment revenue) decreased $34.4 million, or 9.5%, as compared to the prior year quarter. The decrease was primarily due to the impact of the disposition in the first quarter |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Revenue: | ||||||||||||||||||||||
Fluid Transfer | $ | 248,418 | $ | 196,696 | 26.3 | % | $ | 486,575 | $ | 391,867 | 24.2 | % | ||||||||||
Pumps | 157,420 | 154,815 | 1.7 | % | 318,325 | 299,880 | 6.2 | % | ||||||||||||||
$ | 405,838 | $ | 351,511 | 15.5 | % | $ | 804,900 | $ | 691,747 | 16.4 | % | |||||||||||
Segment earnings | $ | 54,033 | $ | 70,168 | (23.0 | )% | $ | 100,080 | $ | 124,802 | (19.8 | )% | ||||||||||
Operating margin | 13.3 | % | 20.0 | % | 12.4 | % | 18.0 | % | ||||||||||||||
Segment EBITDA | $ | 75,014 | $ | 83,816 | (10.5 | )% | $ | 141,572 | $ | 152,298 | (7.0 | )% | ||||||||||
Segment EBITDA margin | 18.5 | % | 23.8 | % | 17.6 | % | 22.0 | % | ||||||||||||||
Other measures: | ||||||||||||||||||||||
Depreciation and amortization | $ | 20,981 | $ | 13,648 | 53.7 | % | $ | 41,492 | $ | 27,496 | 50.9 | % | ||||||||||
Bookings | 413,767 | 333,695 | 24.0 | % | 832,112 | 673,005 | 23.6 | % | ||||||||||||||
Backlog | 315,786 | 240,389 | 31.4 | % | ||||||||||||||||||
Components of revenue decline: | Q2 2016 vs. Q2 2015 | YTD 2016 vs. 2015 | ||||||||||||||||||||
Organic decline | (7.9 | )% | (5.7 | )% | ||||||||||||||||||
Acquisitions | 24.0 | % | 23.4 | % | ||||||||||||||||||
Dispositions | (0.2 | )% | (0.4 | )% | ||||||||||||||||||
Foreign currency translation | (0.4 | )% | (0.9 | )% | ||||||||||||||||||
15.5 | % | 16.4 | % |
• | Fluid Transfer revenue (representing 61.2% of segment revenue) increased $51.7 million, or 26.3%, as compared to the prior year quarter. This revenue increase was primarily driven by our acquisitions in the first half of the year offset by the impact of reduced capital spending by certain integrated energy customers and project timing. |
• | Pumps revenue (representing 38.8% of segment revenue) increased $2.6 million, or 1.7%, as compared with the prior year quarter, primarily driven by our fourth quarter 2015 acquisitions offset by the impacts of lower activity in upstream oil and gas-related pump end markets. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Revenue: | ||||||||||||||||||||||
Refrigeration | $ | 332,647 | $ | 348,912 | (4.7 | )% | $ | 611,937 | $ | 639,628 | (4.3 | )% | ||||||||||
Food Equipment | 96,739 | 99,203 | (2.5 | )% | 180,701 | 180,584 | 0.1 | % | ||||||||||||||
Total | $ | 429,386 | $ | 448,115 | (4.2 | )% | $ | 792,638 | $ | 820,212 | (3.4 | )% | ||||||||||
Segment earnings | $ | 63,230 | $ | 65,732 | (3.8 | )% | $ | 101,391 | $ | 101,882 | (0.5 | )% | ||||||||||
Operating margin | 14.7 | % | 14.7 | % | 12.8 | % | 12.4 | % | ||||||||||||||
Segment EBITDA | $ | 80,111 | $ | 82,138 | (2.5 | )% | $ | 135,000 | $ | 134,746 | 0.2 | % | ||||||||||
Segment EBITDA margin | 18.7 | % | 18.3 | % | 17.0 | % | 16.4 | % | ||||||||||||||
Other measures: | ||||||||||||||||||||||
Depreciation and amortization | $ | 16,881 | $ | 16,406 | 2.9 | % | $ | 33,609 | $ | 32,864 | 2.3 | % | ||||||||||
Bookings | 468,661 | 486,793 | (3.7 | )% | 880,028 | 906,452 | (2.9 | )% | ||||||||||||||
Backlog | 332,312 | 373,193 | (11.0 | )% | ||||||||||||||||||
Components of revenue decline: | Q2 2016 vs. Q2 2015 | YTD 2016 vs. 2015 | ||||||||||||||||||||
Organic growth | 1.1 | % | 2.0 | % | ||||||||||||||||||
Acquisitions | — | % | — | % | ||||||||||||||||||
Dispositions | (5.6 | )% | (5.3 | )% | ||||||||||||||||||
Foreign currency translation | 0.3 | % | (0.1 | )% | ||||||||||||||||||
(4.2 | )% | (3.4 | )% |
• | Refrigeration revenue (representing 77.5% of segment revenue) decreased $16.2 million, or 4.7%, quarter over quarter, primarily driven by the disposition of our walk-in coolers product line at the end of 2015. The impact of this disposition was partially offset by organic volume growth driven by strong display case and specialty product activity in our retail refrigeration markets. |
• | Food Equipment revenue (representing 22.5% of segment revenue) decreased $2.5 million, or 2.5%, compared with the prior year quarter, mainly driven by weak food processing equipment results, partially offset by growth in our commercial foodservice and can-shaping equipment businesses. |
Six Months Ended June 30, | |||||||
Cash Flows from Continuing Operations (in thousands) | 2016 | 2015 | |||||
Net Cash Flows Provided By (Used In): | |||||||
Operating activities | $ | 341,281 | $ | 350,243 | |||
Investing activities | (495,272 | ) | 614,460 | ||||
Financing activities | 50,829 | (1,024,932 | ) |
• | Proceeds from the sale of business: In 2016, we generated cash of $47.3 million from the sale of Texas Hydraulics. In 2015, we generated cash of $685.0 million from from the sales of Datamax O'Neil and Sargent Aerospace. |
• | Acquisitions: During 2016, we deployed approximately $475.2 million, net, to acquire Tokheim, Fairbanks, and ProGauge within the Fluids segment. In comparison, in 2015, we acquired one business for a net aggregate cash purchase price of approximately $6.5 million. |
• | Capital spending: Our capital expenditures increased $0.9 million in 2016 as compared to the same period in 2015, primarily within the Fluids segment. We expect full year 2016 capital expenditures to approximate 2.3% of revenue. |
• | Share purchases: During the six months ended June 30, 2016, the Company did not repurchase any shares of common stock compared to repurchases of $500.1 million for the same period in 2015. As of June 30, 2016, the approximate number of shares available for repurchase under the January 2015 share repurchase authorization was 6.8 million. |
• | Commercial paper and notes payable: Commercial paper and notes payable, net increased in the 2016 period by $185.6 million, as we borrowed $316.4 million to fund the acquisition of Tokheim. We subsequently utilized proceeds from the sale of Texas Hydraulics and cash to pay down $47.3 million of commercial paper. We primarily use commercial paper borrowings for general corporate purposes, as well as to fund acquisitions and repurchase common stock. |
• | Dividend payments: Dividends paid to shareholders in 2016 was relatively flat as compared to 2015. Our dividends paid per common share increased 5% to $0.84 in 2016 compared to $0.80 in 2015; however, this higher dividend rate was partially offset by lower common shares outstanding for the 2016 period relative to 2015 due to approximately 1.5 million of share repurchases over the past twelve months. |
• | Net proceeds from the exercise of share-based awards: Proceeds from the exercise of share-based awards were $0.5 million higher in 2016 as compared to the prior year. These proceeds have declined in recent periods as the number of stock options are diminishing and a larger number of cashless exercises of equity awards have occurred. Payments to settle tax obligations on these exercises increased $3.0 million in 2016. |
Six Months Ended June 30, | |||||||
Free Cash Flow (dollars in thousands) | 2016 | 2015 | |||||
Cash flow provided by operating activities | $ | 341,281 | $ | 350,243 | |||
Less: Capital expenditures | (72,652 | ) | (71,763 | ) | |||
Free cash flow | $ | 268,629 | $ | 278,480 | |||
Free cash flow as a percentage of revenue | 8.1 | % | 8.0 | % |
Net Debt to Net Capitalization Ratio (dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Current maturities of long-term debt | $ | 7,157 | $ | 122 | ||||
Commercial paper | 337,000 | 151,000 | ||||||
Notes payable and current maturities of long-term debt | 344,157 | 151,122 | ||||||
Long-term debt | 2,607,066 | 2,603,655 | ||||||
Total debt | 2,951,223 | 2,754,777 | ||||||
Less: Cash and cash equivalents | (255,140 | ) | (362,185 | ) | ||||
Net debt | 2,696,083 | 2,392,592 | ||||||
Add: Stockholders' equity | 3,713,735 | 3,644,575 | ||||||
Net capitalization | $ | 6,409,818 | $ | 6,037,167 | ||||
Net debt to net capitalization | 42.1 | % | 39.6 | % |
Short Term Rating | Long Term Rating | Outlook | |||
Moody's | P-2 | A3 | Stable | ||
Standard & Poor's | A-2 | A- | Negative | ||
Fitch | F2 | A- | Negative |
(a) | Not applicable. |
(b) | Not applicable. |
(c) | In January 2015, the Board of Directors approved a new standing share repurchase authorization, whereby the Company may repurchase up to 15,000,000 shares of its common stock over the following three years. No repurchases were made in the second quarter of 2016. As of June 30, 2016, the number of shares still available for repurchase under the January 2015 share repurchase authorization was 6,771,458. |
31.1 | Certificate pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, signed and dated by Brad M. Cerepak. |
31.2 | Certificate pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, signed and dated by Robert A. Livingston. |
32 | Certificate pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by Robert A. Livingston and Brad M. Cerepak. |
101 | The following materials from Dover Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Earnings, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statement of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements. |
DOVER CORPORATION | ||
Date: | July 21, 2016 | /s/ Brad M. Cerepak |
Brad M. Cerepak | ||
Senior Vice President & Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: | July 21, 2016 | /s/ Sandra A. Arkell |
Sandra A. Arkell | ||
Vice President, Controller | ||
(Principal Accounting Officer) |
31.1 | Certificate pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, signed and dated by Brad M. Cerepak. |
31.2 | Certificate pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, signed and dated by Robert A. Livingston. |
32 | Certificate pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by Robert A. Livingston and Brad M. Cerepak. |
101 | The following materials from Dover Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Earnings, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statement of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements. |
1. | I have reviewed this Quarterly Report on Form 10-Q of Dover Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 21, 2016 | /s/ Brad M. Cerepak |
Brad M. Cerepak | ||
Senior Vice President & Chief Financial Officer | ||
(Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Dover Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 21, 2016 | /s/ Robert A. Livingston |
Robert A. Livingston | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
1. | The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2016 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and |
2. | Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | July 21, 2016 | /s/ Robert A. Livingston |
Robert A. Livingston | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Dated: | July 21, 2016 | /s/ Brad M. Cerepak |
Brad M. Cerepak | ||
Senior Vice President & Chief Financial Officer | ||
(Principal Financial Officer) |
Document and Entity Information - USD ($) |
6 Months Ended | ||
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Jun. 30, 2016 |
Jul. 14, 2016 |
Jun. 30, 2015 |
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Document and Entity Information [Abstract] | |||
Entity Registrant Name | DOVER Corp | ||
Entity Central Index Key | 0000029905 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 10,980,690,400 | ||
Entity Common Stock, Shares Outstanding | 155,215,908 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | Q2 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Current assets: | ||
Allowance for doubtful accounts receivable | $ 19,402 | $ 18,050 |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Earnings (Loss) [Member] |
Treasury Stock [Member] |
---|---|---|---|---|---|---|
Balance at Dec. 31, 2015 | $ 3,644,575 | $ 256,113 | $ 928,409 | $ 7,686,642 | $ (254,573) | $ (4,972,016) |
Net earnings | 217,646 | 0 | 0 | 217,646 | 0 | 0 |
Dividends paid | (130,654) | 0 | 0 | (130,654) | 0 | 0 |
Common stock issued for the exercise of share-based awards | (7,440) | 211 | (7,651) | 0 | 0 | 0 |
Tax benefit from the exercise of share-based awards | 2,218 | 0 | 2,218 | 0 | 0 | 0 |
Share-based compensation expense | 14,360 | 0 | 14,360 | 0 | 0 | 0 |
Other comprehensive earnings, net of tax | (26,970) | 0 | 0 | 0 | (26,970) | 0 |
Balance at Jun. 30, 2016 | $ 3,713,735 | $ 256,324 | $ 937,336 | $ 7,773,634 | $ (281,543) | $ (4,972,016) |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Stockholders' Equity [Abstract] | ||
Preferred stock, par value per share | $ 100 | $ 100 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $ 1 | $ 1 |
Basis of Presentation |
6 Months Ended |
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Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements, in accordance with Securities and Exchange Commission ("SEC") rules for interim periods, do not include all of the information and notes for complete financial statements as required by accounting principles generally accepted in the United States of America. As such, the accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Dover Corporation ("Dover" or the "Company") Annual Report on Form 10-K for the year ended December 31, 2015, which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business, properties, and other matters. The year end Condensed Consolidated Balance Sheet was derived from audited financial statements. Certain amounts in the prior year have been reclassified to conform to the current year presentation. It is the opinion of management that these financial statements reflect all adjustments necessary for a fair statement of the interim results. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | 2. Acquisitions During the six months ended June 30, 2016, the Company acquired three businesses within the Fluids segment for net cash consideration of $475,236. The following acquisitions were made during the six months ended June 30, 2016.
The following presents the allocation of acquisition cost to the assets acquired and liabilities assumed, based on their estimated fair values:
The amounts assigned to goodwill and major intangible asset classifications for the 2016 acquisitions are as follows:
The goodwill identified by these acquisitions reflect the benefits expected to be derived from product line expansion and operational synergies. Upon consummation of the acquisitions, with the exception of a minor noncontrolling interest in the Tokheim China subsidiary, these businesses are now wholly-owned by Dover. The Company has substantially completed the purchase price allocations for the 2016 acquisitions. As additional information is obtained about these assets and liabilities within the measurement period (not to exceed one year from the date of acquisition), the Company will refine its estimates of fair value to allocate the purchase price more accurately. Purchase price allocation adjustments may arise through working capital adjustments, asset appraisals or to reflect additional facts and circumstances in existence as of the acquisition date. Identified measurement period adjustments will be recorded, including any related impacts to net earnings, in the reporting period in which the adjustments are determined and may be significant. See Note 6 Goodwill and Other Intangible Assets for purchase price adjustments. The unaudited Condensed Consolidated Statements of Earnings include the results of these businesses from the date of acquisition. Pro Forma Information The following unaudited pro forma information illustrates the impact of both 2016 and 2015 acquisitions on the Company’s revenue and earnings from continuing operations for the three and six months ended June 30, 2016 and 2015. In 2015, the Company acquired four businesses in separate transactions for net cash consideration of $567,843. The 2016 and 2015 pro forma information assumes that the 2016 and 2015 acquisitions had taken place at the beginning of the prior year. Pro forma earnings are also adjusted to reflect the comparable impact of additional depreciation and amortization expense (net of tax) resulting from the fair value measurement of tangible and intangible assets relating to 2016 and 2015 acquisitions.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | 3. Disposed and Discontinued Operations Management evaluates Dover's businesses periodically for their strategic fit within its operations and may from time to time sell or discontinue certain operations for various reasons. Disposed Businesses On February 17, 2016, the company completed the sale of Texas Hydraulics. This disposal did not represent a strategic shift in operations and, therefore, did not qualify for presentation as a discontinued operation. Upon disposal of the business the Company recognized total proceeds of $47,300, which resulted in a gain on sale of $11,228 included within Other income, net within the Condensed Consolidated Statements of Earnings. Discontinued Operations The results of discontinued operations for the three and six months ended June 30, 2015 reflect the net earnings of businesses held for sale, Datamax O'Neil and Sargent Aerospace, prior to their respective sale dates. On March 2, 2015, the Company completed the sale of Datamax O'Neil for total proceeds of $185,000, which resulted in a net gain on sale of $87,781. On April 24, 2015, the Company completed the sale of Sargent Aerospace for total proceeds of $500,000, which resulted in a net gain on sale of $177,800. Summarized results of the Company’s discontinued operations are as follows:
The Company had no assets or liabilities classified as held for sale as of June 30, 2016 and December 31, 2015. |
Inventories |
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Inventory Disclosure | 4. Inventories, net
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Property, Plant and Equipment |
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Property, Plant and Equipment Disclosure | 5. Property, Plant and Equipment, net
Depreciation expense totaled $44,501 and $38,408 for the three months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016 and 2015, depreciation expense was $89,530 and $78,616, respectively. |
Goodwill and Other Intangible Assets |
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Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets The following table provides the changes in carrying value of goodwill by segment for the six months ended June 30, 2016:
As noted in Note 3 Disposed and Discontinued Operations, the Company completed the sale of its Texas Hydraulics business during the six months ended June 30, 2016. As a result of this sale, the Engineered Systems goodwill balance was reduced by $9,615. During the six months ended June 30, 2016, the Company recorded adjustments totaling $5,631 to goodwill relating to purchase price adjustments as a result of working capital adjustments and refinements of estimates to assets acquired and liabilities assumed for the 2015 acquisitions of Gemtron, JK Group, Gala Industries and Reduction Engineering Scheer. During the three months ended June 30, 2016, the Company recorded an adjustment of $17,200 to goodwill as a result of working capital adjustments for the acquisition of Tokheim in the first quarter of 2016. This reduction in price is included in Acquisitions in the table above. In accordance with the applicable accounting standard, Dover performs its annual goodwill impairment testing in the fourth quarter of each year. In addition to the annual impairment test, the Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing. The Company has considered the economic environments in which its businesses operate, particularly those reporting units exposed to the decline in oil and gas markets, and the long-term outlook for those businesses. The Company has determined that a triggering event has not occurred which would require impairment testing at this time. The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset:
Amortization expense totaled $43,593 and $39,619 for the three months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016 and 2015, amortization expense was $87,168 and $79,593, respectively. |
Restructuring Activities |
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Restructuring [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure | 7. Restructuring Activities The following table details restructuring charges incurred by segment for the periods presented:
The restructuring expenses of $9,199 and $23,586 incurred in the three and six months ended June 30, 2016 related to restructuring programs initiated during 2016 and 2015. These programs are designed to better align the Company's costs and operations with current market conditions through targeted facility consolidations, headcount reductions and other measures to further optimize operations. The Company expects the programs currently underway to be substantially completed in the next twelve to eighteen months. The $9,199 of restructuring charges incurred during the second quarter of 2016 primarily included the following items:
The following table details the Company’s severance and other restructuring accrual activity:
The accrual balance at June 30, 2016 primarily reflects restructuring plans initiated during the year, as well as ongoing lease commitment obligations for facilities closed in earlier periods. |
Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | 8. Borrowings Borrowings consist of the following:
The Company adopted new accounting guidance effective January 1, 2016 which requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction of the carrying amount of the related debt. Upon adoption, the Company reclassified $13,687 from assets to long-term debt to reflect this guidance in the comparable balance as of December 31, 2015. The Company maintains a $1.0 billion five-year unsecured revolving credit facility with a syndicate of banks (the "Credit Agreement") which expires on November 10, 2020. The Company was in compliance with its revolving credit and other long-term debt covenants at June 30, 2016 and had a coverage ratio of 9.7 to 1.0. The Company primarily uses this facility as liquidity back-up for its commercial paper program and has not drawn down any loans under the facility and does not anticipate doing so. The Company generally uses commercial paper borrowings for general corporate purposes, funding of acquisitions, and repurchases of its common stock. Interest expense and interest income for the three and six months ended June 30, 2016 and 2015 were as follows:
Letters of Credit As of June 30, 2016, the Company had approximately $100,319 outstanding in letters of credit and guarantees with financial institutions which expire at various dates within 2016 through 2023. These letters of credit are primarily maintained as security for insurance, warranty, and other performance obligations. |
Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | 9. Financial Instruments Derivatives The Company is exposed to market risk for changes in foreign currency exchange rates due to the global nature of its operations and certain commodity risks. In order to manage these risks the Company has hedged portions of its forecasted sales and purchases to occur within the next twelve months that are denominated in non-functional currencies, with currency forward or collar contracts designated as cash flow hedges. At June 30, 2016 and December 31, 2015, the Company had contracts with U.S. dollar equivalent notional amounts of $41,375 and $37,735, respectively, to exchange foreign currencies, principally the U.S. dollar, Chinese Yuan, Pound Sterling, Canadian Dollar, and Euro. The Company believes it is probable that all forecasted cash flow transactions will occur. In addition, the Company had outstanding contracts with a total notional amount of $72,022 and $51,369 at June 30, 2016 and December 31, 2015, respectively, that are not designated as hedging instruments. These instruments are used to reduce the Company's exposure for operating receivables and payables that are denominated in non-functional currencies. The following table sets forth the fair values of derivative instruments held by the Company as of June 30, 2016 and December 31, 2015 and the balance sheet lines in which they are recorded:
The amount of gains or losses from hedging activity recorded in earnings is not significant, and the amount of unrealized gains and losses from cash flow hedges that are expected to be reclassified to earnings in the next twelve months is not significant; therefore, additional tabular disclosures are not presented. There are no amounts excluded from the assessment of hedge effectiveness, and the Company's derivative instruments that are subject to credit risk contingent features were not significant. The Company is exposed to credit loss in the event of nonperformance by counterparties to the financial instrument contracts held by the Company; however, nonperformance by these counterparties is considered unlikely as the Company’s policy is to contract with highly-rated, diversified counterparties. Additionally, the Company has designated the €300.0 million of Euro-denominated notes issued December 4, 2013 as a hedge of a portion of its net investment in Euro-denominated operations. Due to the high degree of effectiveness between the hedging instruments and the exposure being hedged, fluctuations in the value of the Euro-denominated debt due to exchange rate changes are offset by changes in the net investment. Accordingly, changes in the value of the Euro-denominated debt are recognized in the cumulative translation adjustment section of other comprehensive income to offset changes in the value of the net investment in Euro-denominated operations. Gains (losses) on net investment hedges are recognized in other compressive earnings (losses) as a part of foreign currency translation adjustments as follows:
Fair Value Measurements ASC 820, "Fair Value Measurements and Disclosures," establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:
In addition to fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. The estimated fair value of long-term debt, net of unamortized debt issuance costs at June 30, 2016 and December 31, 2015 was $3,103,540 and $2,880,734, respectively, compared to the carrying value of $2,607,066 and $2,603,655, respectively. The estimated fair value of long-term debt is based on quoted market prices for similar instruments and is, therefore, classified as Level 2 within the fair value hierarchy. The carrying values of cash and cash equivalents, trade receivables, accounts payable, and notes payable are reasonable estimates of their fair values as of June 30, 2016 and December 31, 2015 due to the short-term nature of these instruments. |
Income Taxes |
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Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The effective tax rates for continuing operations for the three months ended June 30, 2016 and 2015 were 28.1% and 29.6%, respectively. Excluding unfavorable net discrete items in each period, the effective tax rates for the three months ended June 30, 2016 and 2015 were 27.3% and 29.3%, respectively. The discrete items for the three months ended June 30, 2016 resulted primarily from reassessment of the realizable benefits of certain state credits. The 2015 discrete items principally resulted from the conclusion of certain state tax audits and an adjustment of the tax accounts to the return filed. The reduction in the effective tax rate year over year is principally due to a change in the geographic mix of earnings as well as restructuring of foreign operations. The effective tax rates for continuing operations for the six months ended June 30, 2016 and 2015 were 25.5% and 29.3%, respectively. Excluding net discrete items in each period, the effective tax rate for the six months ended June 30, 2016 and 2015 was 27.6% and 29.3%, respectively. The decrease in the effective tax rate for the six months ended June 30, 2016 relative to the prior year is primarily due to the revaluation of deferred tax balances as a result of a tax rate reduction in a non U.S. jurisdiction. Dover and its subsidiaries file tax returns in the U.S., including various state and local returns, and in other foreign jurisdictions. We believe adequate provision has been made for all income tax uncertainties. The Company is routinely audited by taxing authorities in its filing jurisdictions, and a number of these audits are currently underway. The Company believes that within the next twelve months uncertain tax positions may be resolved and statutes of limitations will expire, which could result in a decrease in the gross amount of unrecognized tax benefits of approximately zero to $18,310. A portion of these unrecognized tax benefits relate to companies previously reported as discontinued operations. |
Equity Incentive Program |
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation | 11. Equity Incentive Program The Company typically grants equity awards annually at its regularly scheduled first quarter meeting of the Compensation Committee of the Board of Directors. During the first and second quarters of 2016, the Company issued stock-settled appreciation rights ("SARs") covering 1,346,354 shares, performance share awards of 79,561 and restricted stock units of 244,707. The Company uses the Black-Scholes option pricing model to determine the fair value of each SAR on the date of grant. Expected volatilities are based on Dover's stock price history, including implied volatilities from traded options on Dover stock. The Company uses historical data to estimate SAR exercise and employee termination patterns within the valuation model. The expected life of SARs granted is derived from the output of the option valuation model and represents the average period of time that SARs granted are expected to be outstanding. The interest rate for periods within the contractual life of the SARs is based on the U.S. Treasury yield curve in effect at the time of grant. The assumptions used in determining the fair value of the SARs awarded during the respective periods are as follows:
The performance share awards granted in 2015 and 2016 are considered performance condition awards as attainment is based on Dover's performance relative to established internal metrics. The fair value of these awards was determined using Dover's closing stock price on the date of grant. The expected attainment of the internal metrics for these awards is analyzed each reporting period, and the related expense is adjusted based on expected attainment, if that attainment differs from previous estimates. The cumulative effect on current and prior periods of a change in attainment is recognized in compensation cost in the period of change. The fair value and average attainment used in determining compensation cost for the performance shares issued in 2015 and 2016 is as follows for the six months ended June 30, 2016:
Stock-based compensation is reported within selling and administrative expenses in the accompanying unaudited Condensed Consolidated Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans:
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Commitments and Contingent Liabilities |
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Commitments and Contingent Liabilities | 12. Commitments and Contingent Liabilities Litigation A few of the Company’s subsidiaries are involved in legal proceedings relating to the cleanup of waste disposal sites identified under federal and state statutes that provide for the allocation of such costs among "potentially responsible parties." In each instance, the extent of the Company’s liability appears to be very small in relation to the total projected expenditures and the number of other "potentially responsible parties" involved and is anticipated to be immaterial to the Company. In addition, a few of the Company’s subsidiaries are involved in ongoing remedial activities at certain current and former plant sites, in cooperation with regulatory agencies, and appropriate reserves have been established. At June 30, 2016 and December 31, 2015, the Company has reserves totaling $31,806 and $30,595, respectively, for environmental and other matters, including private party claims for exposure to hazardous substances, that are probable and estimable. The Company and certain of its subsidiaries are also parties to a number of other legal proceedings incidental to their businesses. These proceedings primarily involve claims by private parties alleging injury arising out of use of the Company’s products, patent infringement, employment matters, and commercial disputes. Management and legal counsel, at least quarterly, review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and currently accrued to-date, and the availability and extent of insurance coverage. The Company has reserves for legal matters that are probable and estimable and not otherwise covered by insurance, and at June 30, 2016 and December 31, 2015, these reserves are not significant. While it is not possible at this time to predict the outcome of these legal actions, in the opinion of management, based on the aforementioned reviews, the Company is not currently involved in any legal proceedings which, individually or in the aggregate, could have a material effect on its financial position, results of operations, or cash flows. Warranty Accruals Estimated warranty program claims are provided for at the time of sale. Amounts provided for are based on historical costs and adjusted for new claims. The changes in the carrying amount of product warranties through June 30, 2016 and 2015 are as follows:
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | 13. Employee Benefit Plans Retirement Plans The Company offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. In addition, the Company sponsors qualified defined benefit pension plans covering certain employees of the Company and its subsidiaries. The plans’ benefits are generally based on years of service and employee compensation. The Company also provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law. The following tables set forth the components of the Company’s net periodic expense relating to retirement benefit plans: Qualified Defined Benefits
Non-Qualified Supplemental Benefits
Post-Retirement Plans The Company also maintains post retirement benefit plans, although these plans are effectively closed to new entrants. The supplemental and post retirement benefit plans are supported by the general assets of the Company. The following table sets forth the components of the Company’s net periodic expense relating to its post-retirement benefit plans:
The total amount amortized out of accumulated other comprehensive income into net periodic pension and post-retirement expense totaled $3,701 and $5,775 for the three months ended June 30, 2016 and 2015, respectively, and $7,392 and $11,563 for the six months ended June 30, 2016 and 2015, respectively. Defined Contribution Retirement Plans The Company also offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. The Company’s expense relating to defined contribution plans was $8,349, and $8,005 for the three months ended June 30, 2016 and 2015, respectively, and $18,157 and $17,011 for the six months ended June 30, 2016 and 2015. |
Other Comprehensive Earnings |
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Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Earnings | 14. Other Comprehensive Earnings (Loss) The amounts recognized in other comprehensive (loss) earnings were as follows:
Foreign currency translation adjustments for the three months ended June 30, 2016 and 2015 include a pre-tax gain of $4,500 and a pre-tax loss $9,691, respectively, on the Company's net investment hedges, which resulted in a tax expense of $1,575 and tax benefit of $3,392 reflected in other comprehensive income for the respective periods. See also Note 9 Financial Instruments.
Foreign currency translation adjustments for the six months ended June 30, 2016 include pre-tax losses of $1,665 on the Company's net investment hedges, which result in a tax benefit of $583 reflected in other comprehensive income. The six months ended June 30, 2015 reflect gains of $24,326 on these hedges, which resulted a tax expense of $8,514 included in other comprehensive income. See also Note 9 Financial Instruments. Total comprehensive earnings were as follows:
Amounts reclassified from accumulated other comprehensive earnings (loss) to earnings (loss) during the three and six months ended June 30, 2016 and 2015 were as follows:
The Company recognizes net periodic pension cost, which includes amortization of net actuarial losses and prior service costs, in both selling and administrative expenses and cost of goods and services, depending on the functional area of the underlying employees included in the plans. Cash flow hedges consist mainly of foreign currency forward contracts. The Company recognizes the realized gains and losses on its cash flow hedges in the same line item as the hedged transaction, such as revenue, cost of goods and services, or selling & administrative expenses. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 15. Segment Information For management reporting and performance evaluation purposes, the Company categorizes its operating companies into four distinct reportable segments. Segment financial information and a reconciliation of segment results to consolidated results is as follows:
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Share Repurchases |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | 16. Share Repurchases In January 2015, the Board of Directors approved a standing share repurchase authorization, whereby the Company may repurchase up to 15,000,000 shares of its common stock over the following three years. This plan replaced all previously authorized repurchase programs. During the three and six months ended June 30, 2016, the Company repurchased no shares of common stock under the January 2015 authorization. As of June 30, 2016, there were 6,771,458 shares available for repurchase under this plan. A summary of share repurchase activity during the three and six months ended June 30, 2015 is as follows:
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Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | 17. Earnings per Share The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share:
The following table is a reconciliation of the share amounts used in computing earnings per share:
Diluted per share amounts are computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and SARs, and vesting of performance shares and restricted shares, as determined using the treasury stock method. The weighted average number of anti-dilutive potential common shares excluded from the calculation above were approximately 60,000 and 45,000 for the three months ended June 30, 2016 and 2015, respectively, and 65,000 and 35,000 for the six months ended June 30, 2016 and 2015, respectively. |
Recent Accounting Standards |
6 Months Ended |
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Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | 18. Recent Accounting Standards Recently Issued Accounting Standards In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The update is effective for the Company in the first quarter of 2017. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. This ASU also provides clarifications surrounding the presentation of the effects of leases in the income statement and statement of cash flows. This guidance will be effective for the Company on January 1, 2019. The Company is currently evaluating this new guidance to determine the impact it will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This guidance will be effective for the Company January 1, 2018. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-10 Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. The Company is currently evaluating this guidance to determine the impact it will have on its consolidated financial statements. Recently Adopted Accounting Standards In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30):Simplifying the Presentation of Debt Issuance Costs. Under this guidance, debt issuance costs related to a recognized debt liability are required to be presented in the balance sheet as a direct reduction from the carrying amount of the related debt, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. The Company adopted this guidance January 1, 2016. As a result of adoption, debt issuance costs of $13,687 were reclassified from assets to reduce long-term-debt as of December 31, 2015. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. Under this guidance the cumulative impact of purchase accounting adjustments arising during the one year measurement period from the date of acquisition will be recognized, in full, in the period identified. This guidance was effective for the Company January 1, 2016 and will be applied prospectively to adjustments arising after that date. There was no impact of adopting this standard in the current period. |
Acquisitions (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following presents the allocation of acquisition cost to the assets acquired and liabilities assumed, based on their estimated fair values:
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Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The amounts assigned to goodwill and major intangible asset classifications for the 2016 acquisitions are as follows:
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Pro forma results of operations | The following unaudited pro forma information illustrates the impact of both 2016 and 2015 acquisitions on the Company’s revenue and earnings from continuing operations for the three and six months ended June 30, 2016 and 2015. In 2015, the Company acquired four businesses in separate transactions for net cash consideration of $567,843. The 2016 and 2015 pro forma information assumes that the 2016 and 2015 acquisitions had taken place at the beginning of the prior year. Pro forma earnings are also adjusted to reflect the comparable impact of additional depreciation and amortization expense (net of tax) resulting from the fair value measurement of tangible and intangible assets relating to 2016 and 2015 acquisitions.
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Discontinued Operations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results of discontinued operations | Summarized results of the Company’s discontinued operations are as follows:
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventory |
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Property, Plant and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of property, plant and equipment, net |
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | The following table provides the changes in carrying value of goodwill by segment for the six months ended June 30, 2016:
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Schedule of Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset:
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Restructuring Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The following table details restructuring charges incurred by segment for the periods presented:
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Schedule of Restructuring Reserve by Type of Cost | The following table details the Company’s severance and other restructuring accrual activity:
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Borrowings (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt | Borrowings consist of the following:
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Schedule of Long-term Debt Instruments |
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Schedule of Interest expense and interest income | Interest expense and interest income for the three and six months ended June 30, 2016 and 2015 were as follows:
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Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of derivative instruments and the balance sheet lines in which they are recorded | The following table sets forth the fair values of derivative instruments held by the Company as of June 30, 2016 and December 31, 2015 and the balance sheet lines in which they are recorded:
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Schedule of net investment hedges in accumulated other comprehensive income (loss) | as follows:
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Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:
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Equity Incentive Program (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based incentive plans compensation expense | Stock-based compensation is reported within selling and administrative expenses in the accompanying unaudited Condensed Consolidated Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans:
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Stock Appreciation Rights (SARs) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation assumptions |
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Performance Shares [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation assumptions |
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Commitments and Contingent Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | Estimated warranty program claims are provided for at the time of sale. Amounts provided for are based on historical costs and adjusted for new claims. The changes in the carrying amount of product warranties through June 30, 2016 and 2015 are as follows:
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Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit pension plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures |
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Supplemental Employee Retirement Plans, Defined Benefit [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures |
|
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Post-Retirement Benefits [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures |
|
Other Comprehensive Earnings (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of other comprehensive income | The amounts recognized in other comprehensive (loss) earnings were as follows:
Foreign currency translation adjustments for the three months ended June 30, 2016 and 2015 include a pre-tax gain of $4,500 and a pre-tax loss $9,691, respectively, on the Company's net investment hedges, which resulted in a tax expense of $1,575 and tax benefit of $3,392 reflected in other comprehensive income for the respective periods. See also Note 9 Financial Instruments.
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Schedule of comprehensive income (loss) | Total comprehensive earnings were as follows:
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Schedule of amounts reclassified from accumulated other comprehensive income (loss) to earnings | Amounts reclassified from accumulated other comprehensive earnings (loss) to earnings (loss) during the three and six months ended June 30, 2016 and 2015 were as follows:
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and earnings from continuing operations by market segment |
|
Share Repurchases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Repurchases [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share Repurchases | A summary of share repurchase activity during the three and six months ended June 30, 2015 is as follows:
|
Earnings per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of information used in computing basic and diluted earnings per share | The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of share amounts used in computing earnings per share | The following table is a reconciliation of the share amounts used in computing earnings per share:
|
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw materials | $ 354,170 | $ 333,551 |
Work in progress | 154,841 | 135,624 |
Finished Goods | 436,755 | 443,032 |
Subtotal | 945,766 | 912,207 |
Inventory reserves | (111,859) | (109,312) |
Total | $ 833,907 | $ 802,895 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Line Items] | |||||
Cost | $ 2,391,611 | $ 2,391,611 | $ 2,374,407 | ||
Accumulated depreciation | (1,538,027) | (1,538,027) | (1,520,138) | ||
Total | 853,584 | 853,584 | 854,269 | ||
Depreciation expense | 44,501 | $ 38,408 | 89,530 | $ 78,616 | |
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 56,104 | 56,104 | 55,567 | ||
Buildings and improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 555,345 | 555,345 | 546,809 | ||
Machinery, equipment and other [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | $ 1,780,162 | $ 1,780,162 | $ 1,772,031 |
Goodwill and Other Intangible Assets - Indefinite-lived Intangibles (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Trademarks [Member] | ||
Unamortized Intangible Assets [Abstract] | ||
Gross carrying amount | $ 165,644 | $ 165,594 |
Financial Instruments - Balance Sheet Location (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets [Abstract] | ||
Foreign currency cash flow hedges - asset | $ 329 | $ 170 |
Liabilities [Abstract] | ||
Foreign currency cash flow hedges - liability | $ 551 | $ 452 |
Financial Instruments - Fair Value Measurements (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 3,103,540 | $ 2,880,734 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency cash flow hedges - asset | 329 | 170 |
Foreign currency cash flow hedges - liability | $ 551 | $ 452 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Effective tax rate (in hundredths) | 28.10% | 29.60% | 25.50% | 29.30% |
Pre-discrete tax rate | 27.30% | 29.30% | 27.60% | 29.30% |
Minimum [Member] | ||||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 0 | $ 0 | ||
Maximum [Member] | ||||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 18,310 | $ 18,310 |
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for environmental loss contingencies | $ 31,806 | $ 30,595 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning balance | 44,466 | $ 49,388 | |
Provision for warranties | 29,148 | 24,877 | |
Settlements made | (26,649) | (28,390) | |
Other adjustments, including acquisitions and currency translation | 3,011 | (517) | |
Ending balance | $ 49,976 | $ 45,358 |
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share Repurchases [Line Items] | |||
Purchase of common stock | $ 0 | $ 500,134 | |
January 2015 Authorization [Member] | |||
Share Repurchases [Line Items] | |||
Number of shares authorized to be repurchased | 15,000,000 | ||
Shares repurchased | 3,965,253 | 0 | 6,718,418 |
Average price per share for repurchased shares (in dollars per share) | $ 75.68 | $ 74.44 | |
Remaining number of shares authorized to be repurchased | 6,771,458 | ||
Purchase of common stock | $ 300,079 | $ 500,134 |
Recent Accounting Standards Recent Accounting Standards (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Recent Accounting Policies [Abstract] | ||
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net | $ 12,781 | $ 13,687 |
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