x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
Oregon | 93-0708501 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
27700 SW Parkway Avenue, Wilsonville, Oregon | 97070 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | |
Emerging growth company | ¨ |
PART I. FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
FLIR SYSTEMS, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Revenue | $ | 444,736 | $ | 439,618 | ||||
Cost of goods sold | 211,077 | 221,704 | ||||||
Gross profit | 233,659 | 217,914 | ||||||
Operating expenses: | ||||||||
Research and development | 47,998 | 44,561 | ||||||
Selling, general and administrative | 104,579 | 107,683 | ||||||
Loss on sale of business | — | 10,178 | ||||||
Total operating expenses | 152,577 | 162,422 | ||||||
Earnings from operations | 81,082 | 55,492 | ||||||
Interest expense | 5,516 | 4,052 | ||||||
Interest income | (1,057 | ) | (956 | ) | ||||
Other expense (income), net | 1,866 | (2,219 | ) | |||||
Earnings before income taxes | 74,757 | 54,615 | ||||||
Income tax provision | 13,009 | 15,420 | ||||||
Net earnings | $ | 61,748 | $ | 39,195 | ||||
Net earnings per share: | ||||||||
Basic | $ | 0.46 | $ | 0.28 | ||||
Diluted | $ | 0.45 | $ | 0.28 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 135,541 | 138,504 | ||||||
Diluted | 137,165 | 140,994 |
FLIR SYSTEMS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net earnings | $ | 61,748 | $ | 39,195 | |||
Other comprehensive (loss) income, net of tax: | |||||||
Fair value adjustment on interest rate swap contracts | (807 | ) | — | ||||
Foreign currency translation adjustments | (7,440 | ) | 13,937 | ||||
Total other comprehensive (loss) income | (8,247 | ) | 13,937 | ||||
Comprehensive income | $ | 53,501 | $ | 53,132 |
FLIR SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except for par value) (Unaudited) | |||||||
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 284,363 | $ | 512,144 | |||
Accounts receivable, net | 356,693 | 323,746 | |||||
Inventories | 385,316 | 352,107 | |||||
Assets held for sale, net | — | 2,032 | |||||
Prepaid expenses and other current assets | 101,074 | 102,618 | |||||
Total current assets | 1,127,446 | 1,292,647 | |||||
Property and equipment, net | 253,678 | 247,407 | |||||
Deferred income taxes, net | 97,705 | 100,620 | |||||
Goodwill | 903,461 | 904,571 | |||||
Intangible assets, net | 140,551 | 146,845 | |||||
Unallocated assets from acquisitions | 575,079 | 14,210 | |||||
Other assets | 108,389 | 74,942 | |||||
Total assets | $ | 3,206,309 | $ | 2,781,242 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 131,422 | $ | 95,496 | |||
Deferred revenue | 30,238 | 32,703 | |||||
Accrued payroll and related liabilities | 72,714 | 81,118 | |||||
Accrued product warranties | 15,747 | 15,204 | |||||
Advance payments from customers | 25,056 | 19,691 | |||||
Accrued expenses | 44,220 | 41,761 | |||||
Accrued income taxes | 5,523 | 13,855 | |||||
Other current liabilities | 22,277 | 16,186 | |||||
Credit facility | 100,000 | — | |||||
Current portion, long-term debt | 12,451 | — | |||||
Total current liabilities | 459,648 | 316,014 | |||||
Long-term debt | 656,891 | 421,948 | |||||
Deferred income taxes | 19,806 | 22,927 | |||||
Accrued income taxes | 74,828 | 76,435 | |||||
Pension and other long-term liabilities | 92,441 | 67,132 | |||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at March 31, 2019, and December 31, 2018 | — | — | |||||
Common stock, $0.01 par value, 500,000 shares authorized, 135,380 and 135,516 shares issued at March 31, 2019, and December 31, 2018, respectively, and additional paid-in capital | 1,354 | 1,355 | |||||
Retained earnings | 2,058,680 | 2,024,523 | |||||
Accumulated other comprehensive loss | (157,339 | ) | (149,092 | ) | |||
Total shareholders’ equity | 1,902,695 | 1,876,786 | |||||
Total liabilities and shareholders' equity | $ | 3,206,309 | $ | 2,781,242 |
FLIR SYSTEMS, INC. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (in thousands, except for per share amounts) (Unaudited) | ||||||||||||||||
Common Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) | Total Shareholders' Equity | |||||||||||||
Balance, December 31, 2018 | $ | 1,355 | $ | 2,024,523 | $ | (149,092 | ) | $ | 1,876,786 | |||||||
Opening balance adjustment(1) | — | 3,439 | — | 3,439 | ||||||||||||
Net earnings | — | 61,748 | — | 61,748 | ||||||||||||
Repurchase of common stock | (16,999 | ) | (7,999 | ) | — | (24,998 | ) | |||||||||
Common stock issued pursuant to stock-based compensation plans, net of shares withheld for taxes | 8,708 | — | — | 8,708 | ||||||||||||
Stock-based compensation | 8,290 | — | — | 8,290 | ||||||||||||
Dividends paid: | ||||||||||||||||
Common stock, $0.17/share | — | (23,031 | ) | — | (23,031 | ) | ||||||||||
Other comprehensive loss: | ||||||||||||||||
Fair value adjustment on interest rate swap contracts | — | — | (807 | ) | (807 | ) | ||||||||||
Foreign currency translation adjustment | — | — | (7,440 | ) | (7,440 | ) | ||||||||||
Balance, March 31, 2019 | $ | 1,354 | $ | 2,058,680 | $ | (157,339 | ) | $ | 1,902,695 |
Common Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) | Total Shareholders' Equity | |||||||||||||
Balance, December 31, 2017 | $ | 91,162 | $ | 1,856,756 | $ | (113,360 | ) | $ | 1,834,558 | |||||||
Adoption of ASC 606 and ASU 2016-16(2) | — | 80,280 | — | 80,280 | ||||||||||||
Net earnings | — | 39,195 | — | 39,195 | ||||||||||||
Repurchase of common stock | (94,956 | ) | — | — | (94,956 | ) | ||||||||||
Common stock issued pursuant to stock-based compensation plans, net of shares withheld for taxes | 3,232 | — | — | 3,232 | ||||||||||||
Stock-based compensation | 5,926 | — | — | 5,926 | ||||||||||||
Dividends paid: | ||||||||||||||||
Common stock, $0.16/share | — | (22,232 | ) | — | (22,232 | ) | ||||||||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustment | — | — | 13,937 | 13,937 | ||||||||||||
Balance, March 31, 2018 | $ | 5,364 | $ | 1,953,999 | $ | (99,423 | ) | $ | 1,859,940 |
FLIR SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
CASH PROVIDED BY OPERATING ACTIVITIES: | |||||||
Net earnings | $ | 61,748 | $ | 39,195 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 16,662 | 16,446 | |||||
Stock-based compensation arrangements | 8,090 | 5,931 | |||||
Deferred income taxes | 222 | 4,574 | |||||
Other, net | (1,328 | ) | (6,696 | ) | |||
(Decrease) increase in cash, net of acquisitions, resulting from changes in: | |||||||
Accounts receivable | (25,771 | ) | 28,344 | ||||
Inventories | (17,472 | ) | (8,760 | ) | |||
Prepaid expenses and other current assets | 1,944 | 1,331 | |||||
Other assets | 3,659 | (477 | ) | ||||
Accounts payable | 26,019 | (8,150 | ) | ||||
Deferred revenue | (4,531 | ) | 317 | ||||
Accrued payroll and other liabilities | (8,057 | ) | (14,760 | ) | |||
Accrued income taxes | (1,722 | ) | (29,435 | ) | |||
Pension and other long-term liabilities | (3,952 | ) | 15,316 | ||||
Net cash provided by operating activities | 55,511 | 43,176 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to property and equipment, net | (9,140 | ) | (7,099 | ) | |||
Proceeds from sale of assets | 2,973 | — | |||||
Proceeds from sale of business | — | 25,920 | |||||
Business acquisitions, net of cash acquired | (579,556 | ) | (7,070 | ) | |||
Other investments | (5,000 | ) | (9,500 | ) | |||
Net cash (used) provided by investing activities | (590,723 | ) | 2,251 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net proceeds from credit facility and long-term debt, including current portion | 723,054 | — | |||||
Repayment of credit facility | (375,000 | ) | — | ||||
Repurchase of common stock | (24,998 | ) | (94,956 | ) | |||
Dividends paid | (23,031 | ) | (22,232 | ) | |||
Proceeds from shares issued pursuant to stock-based compensation plans | 9,721 | 3,497 | |||||
Tax paid for net share exercises and issuance of vested restricted stock units | (1,013 | ) | (265 | ) | |||
Other financing activities | (419 | ) | (11 | ) | |||
Net cash provided (used) by financing activities | 308,314 | (113,967 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (883 | ) | 1,588 | ||||
Net decrease in cash and cash equivalents | (227,781 | ) | (66,952 | ) | |||
Cash and cash equivalents, beginning of year | 512,144 | 519,090 | |||||
Cash and cash equivalents, end of period | $ | 284,363 | $ | 452,138 |
Note 1. | Basis of Presentation |
Note 1. | Basis of Presentation - (Continued) |
Note 2. | Revenue |
Note 2. | Revenue - (Continued) |
Note 3. | Stock-based Compensation |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cost of goods sold | $ | 847 | $ | 695 | |||
Research and development | 1,708 | 1,409 | |||||
Selling, general and administrative | 5,535 | 3,827 | |||||
Stock-based compensation expense before income taxes | $ | 8,090 | $ | 5,931 |
March 31, | |||||||
2019 | 2018 | ||||||
Capitalized in inventory | $ | 1,279 | $ | 1,057 |
Note 4. | Net Earnings Per Share |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Numerator for earnings per share: | |||||||
Net earnings for basic and diluted earnings per share | $ | 61,748 | $ | 39,195 | |||
Denominator for earnings per share: | |||||||
Weighted average number of common shares outstanding | 135,541 | 138,504 | |||||
Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method | 1,624 | 2,490 | |||||
Diluted shares outstanding | 137,165 | 140,994 |
Note 5. | Fair Value of Financial Instruments |
Level 1 – quoted prices in active markets for identical securities as of the reporting date; |
Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and observable market prices for identical instruments that are traded in less active markets; and |
Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value. |
Note 5. | Fair Value of Financial Instruments - (Continued) |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
European euro | $ | 69,805 | $ | 61,452 | |||
Canadian dollar | 23,456 | 19,685 | |||||
British pound sterling | 9,430 | 609 | |||||
Brazilian real | 8,112 | 8,598 | |||||
Swedish kronor | 6,707 | 3,608 | |||||
Norwegian kroner | 2,097 | — | |||||
Australian dollar | 1,205 | 1,131 | |||||
Other | 113 | 813 | |||||
$ | 120,925 | $ | 95,896 |
March 31, 2019 | December 31, 2018 | ||||||||||||||
Prepaid Expenses and Other Current Assets | Other Current Liabilities | Prepaid Expenses and Other Current Assets | Other Current Liabilities | ||||||||||||
Foreign exchange contracts | $ | 730 | $ | 1,112 | $ | 431 | $ | 951 |
Effective Date | Notional Amount (in millions Swedish Kronor) | Fixed Rate | Maturity Date | |||
March 29, 2019 | 1,390.2 | 0.59% | March 31, 2024 |
Note 7. | Accounts Receivable |
Note 8. | Inventories |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
Raw material and subassemblies | $ | 218,651 | $ | 214,164 | |||
Work-in-progress | 52,748 | 43,096 | |||||
Finished goods | 113,917 | 94,847 | |||||
$ | 385,316 | $ | 352,107 |
Note 9. | Leases |
Three Months Ended March 31, 2019 | ||||
Operating lease expense | $ | 2,635 | ||
Short-term lease expense | 246 | |||
Variable lease expense | 514 | |||
Total lease expense | $ | 3,395 |
Three Months Ended March 31, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 2,422 | ||
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | $ | 300 |
March 31, 2019 | |||
Operating lease right-of-use assets | $ | 30,222 | |
Operating lease liabilities | $ | 33,655 |
Note 9. | Leases - (Continued) |
Nine months ending December 31, 2019 | $ | 6,904 | |
2020 | 8,300 | ||
2021 | 7,522 | ||
2022 | 4,636 | ||
2023 | 2,619 | ||
2024 | 1,760 | ||
Thereafter | 5,883 | ||
Total lease payments | 37,624 | ||
Less: imputed interest | (3,969 | ) | |
Present value of lease liabilities | $ | 33,655 |
Net Operating Leases | |||
2019 | $ | 10,561 | |
2020 | 8,270 | ||
2021 | 7,283 | ||
2022 | 4,894 | ||
2023 | 2,934 | ||
Thereafter | 5,911 | ||
Total minimum payments | $ | 39,853 |
Note 11. | Goodwill |
Balance, December 31, 2018 | $ | 904,571 | ||
Currency translation adjustments | (1,110 | ) | ||
Balance, March 31, 2019 | $ | 903,461 |
Note 13. | Credit Agreement |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
Unsecured notes | $ | 425,000 | $ | 425,000 | |||
Credit Agreement | 249,025 | — | |||||
Unamortized discounts and issuance costs of unsecured notes | (4,683 | ) | (3,052 | ) | |||
$ | 669,342 | $ | 421,948 | ||||
Current portion, long-term debt | $ | 12,451 | $ | — | |||
Long-term debt | $ | 656,891 | $ | 421,948 |
Note 15. | Accrued Product Warranties |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Accrued product warranties, beginning of period | $ | 18,583 | $ | 18,052 | ||||
Amounts paid for warranty services | (2,776 | ) | (3,278 | ) | ||||
Warranty provisions for products sold | 2,414 | 3,536 | ||||||
Business acquisition | 874 | — | ||||||
Currency translation adjustments and other | (37 | ) | 202 | |||||
Accrued product warranties, end of period | $ | 19,058 | $ | 18,512 | ||||
Current accrued product warranties, end of period | $ | 15,747 | $ | 15,319 | ||||
Long-term accrued product warranties, end of period | $ | 3,311 | $ | 3,193 |
Note 16. | Shareholders' Equity |
Note 17. | Contingencies |
Note 17. | Contingencies - (Continued) |
Note 18. | Income Taxes |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Income tax provision | $ | 13,009 | $ | 15,420 | |||
Effective tax rate | 17.4 | % | 28.2 | % |
Note 18. | Income Taxes - (Continued) |
Tax Years: | |
United States Federal | 2015 - 2017 |
State of California | 2014 - 2017 |
State of Massachusetts | 2014 - 2017 |
State of Oregon | 2015 - 2017 |
Sweden | 2012 - 2017 |
United Kingdom | 2014 - 2017 |
Belgium | 2011 - 2017 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Revenue—External Customers: | ||||||||
Industrial | $ | 179,370 | $ | 170,658 | ||||
Government and Defense | 173,350 | 159,331 | ||||||
Commercial | 92,016 | 109,629 | ||||||
$ | 444,736 | $ | 439,618 | |||||
Revenue—Intersegments: | ||||||||
Industrial | $ | 6,198 | $ | 6,332 | ||||
Government and Defense | 1,512 | 1,528 | ||||||
Commercial | 4,433 | 4,481 | ||||||
Eliminations | (12,143 | ) | (12,341 | ) | ||||
$ | — | $ | — | |||||
Segment operating income: | ||||||||
Industrial | $ | 56,897 | $ | 45,455 | ||||
Government and Defense | 48,267 | 46,182 | ||||||
Commercial | 12,948 | 14,472 | ||||||
$ | 118,112 | $ | 106,109 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Consolidated segment operating income | $ | 118,112 | $ | 106,109 | ||||
Unallocated corporate expenses | (24,562 | ) | (34,948 | ) | ||||
Amortization of purchased intangible assets | (5,928 | ) | (5,987 | ) | ||||
Amortization of acquisition-related inventory step-up | (6,477 | ) | — | |||||
Loss on sale of business | — | (10,178 | ) | |||||
Restructuring and other charges | (63 | ) | 496 | |||||
Consolidated earnings from operations | 81,082 | 55,492 | ||||||
Interest and non-operating expenses, net | (6,325 | ) | (877 | ) | ||||
Consolidated earnings before income taxes | $ | 74,757 | $ | 54,615 |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
Operating segment assets: | |||||||
Net accounts receivable, inventories and demonstration assets: | |||||||
Industrial | $ | 263,551 | $ | 266,457 | |||
Government and Defense | 359,195 | 307,041 | |||||
Commercial | 152,722 | 137,560 | |||||
$ | 775,468 | $ | 711,058 | ||||
Goodwill: | |||||||
Industrial | 390,599 | 391,603 | |||||
Government and Defense | 284,649 | 284,188 | |||||
Commercial | 228,213 | 228,780 | |||||
$ | 903,461 | $ | 904,571 | ||||
Total operating segment assets | $ | 1,678,929 | $ | 1,615,629 | |||
Assets not allocated: | |||||||
Cash and cash equivalents | $ | 284,363 | $ | 512,144 | |||
Assets held for sale, net | — | 2,032 | |||||
Prepaid expenses and other current assets | 67,615 | 67,413 | |||||
Property and equipment, net | 253,678 | 247,407 | |||||
Deferred income taxes | 97,705 | 100,620 | |||||
Intangible assets, net | 140,551 | 146,845 | |||||
Unallocated assets from acquisitions | 575,079 | 14,210 | |||||
Other assets | 108,389 | 74,942 | |||||
Total assets | $ | 3,206,309 | $ | 2,781,242 |
Three Months Ended March 31, 2019 | |||||||||||||||
Industrial | Government and Defense | Commercial | Total | ||||||||||||
United States | $ | 101,211 | $ | 109,304 | $ | 32,211 | $ | 242,726 | |||||||
Europe | 31,308 | 26,596 | 42,556 | 100,460 | |||||||||||
Asia | 34,434 | 17,386 | 6,959 | 58,779 | |||||||||||
Middle East/Africa | 3,769 | 17,407 | 6,096 | 27,272 | |||||||||||
Canada/Latin America | 8,648 | 2,657 | 4,194 | 15,499 | |||||||||||
$ | 179,370 | $ | 173,350 | $ | 92,016 | $ | 444,736 |
Three Months Ended March 31, 2018 | |||||||||||||||
Industrial | Government and Defense | Commercial | Total | ||||||||||||
United States | $ | 86,296 | $ | 95,133 | $ | 44,015 | $ | 225,444 | |||||||
Europe | 35,543 | 17,203 | 44,777 | 97,523 | |||||||||||
Asia | 34,057 | 18,351 | 8,965 | 61,373 | |||||||||||
Middle East/Africa | 3,664 | 27,184 | 5,559 | 36,407 | |||||||||||
Canada/Latin America | 11,098 | 1,460 | 6,313 | 18,871 | |||||||||||
$ | 170,658 | $ | 159,331 | $ | 109,629 | $ | 439,618 |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
United States | $ | 1,308,819 | $ | 720,885 | |||
Europe | 445,145 | 446,704 | |||||
Other foreign | 227,194 | 220,386 | |||||
$ | 1,981,158 | $ | 1,387,975 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
United States government | $ | 137,493 | $ | 118,955 |
Note 20. | Business Acquisitions and Divestitures |
Note 20. | Business Acquisitions and Divestitures - (Continued) |
Note 21. | Subsequent Events |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenue | $ | 179.4 | $ | 170.7 | |||
Earnings from operations | 56.9 | 45.5 | |||||
Operating margin | 31.7 | % | 26.6 | % | |||
Backlog, end of period | 173 | 179 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenue | $ | 173.4 | $ | 159.3 | |||
Earnings from operations | 48.3 | 46.2 | |||||
Operating margin | 27.8 | % | 29.0 | % | |||
Backlog, end of period | 451 | 357 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenue | $ | 92.0 | $ | 109.6 | |||
Earnings from operations | 12.9 | 14.5 | |||||
Operating margin | 14.1 | % | 13.2 | % | |||
Backlog, end of period | 48 | 60 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
• | the imposition of and changes to governmental licensing restrictions and controls impacting our technology and products; |
• | restrictions and prohibitions on the export of technology and products, including any applicable changes in regulation prohibiting the sale of certain of our products to certain end users without a license; |
• | international trade restrictions; |
• | difficulty in collecting receivables and governmental restrictions with respect to currency; |
• | inadequate protection of intellectual property; |
• | labor union activities; |
• | changes in tariffs and taxes; |
• | restrictions on repatriation of earnings; |
• | restriction on the importation and exportation of goods and services; |
• | risks, costs, impacts and obligations associated with the United States Foreign Corrupt Practices Act ("FCPA"), and other anti-bribery and anti-corruption laws applicable to us, and laws applicable to global trade and United States exports and costs and penalties from violations of such laws and related regulations, including the costs associated with required remedial and other increased compliance activity; |
• | difficulties in staffing and managing international operations; and |
• | instability in economic or political conditions, inflation, recession, actual or anticipated military or political conflicts, and potential impact due to the upcoming exit of the United Kingdom (the "U.K.") from the European Union (the "EU"), colloquially referred to as "Brexit". |
• | the timing, number and size of orders from, and shipments to, our customers, as well as the relative mix of those orders; |
• | variations in the volume of orders for a particular product or product line in a particular fiscal quarter; |
• | the size and timing of new contract awards; |
• | the timing of the release of government funds for procurement of our products; and |
• | the timing of orders and shipments within a given fiscal quarter. |
• | the seasonal pattern of contracting by the United States government and certain foreign governments; |
• | the desire of customers to take delivery of equipment prior to fiscal year ends due to funding considerations; and |
• | the tendency of commercial enterprises to utilize fully annual capital budgets prior to expiration. |
• | the jurisdictions in which profits are determined to be earned and taxed; |
• | the resolution of issues arising from tax audits with various tax authorities; |
• | changes in the valuation of our deferred tax assets and liabilities; |
• | adjustments to estimated taxes upon finalization of various tax returns; |
• | increases in expenses not deductible for tax purposes; |
• | changes in available tax credits; |
• | changes in share-based compensation expense; |
• | changes in tax laws or the interpretation of such tax laws and changes in generally accepted accounting principles; |
• | changes in foreign tax rates or agreed upon foreign taxable base; and/or |
• | the repatriation of earnings from outside the United States for which we have not previously provided for United States taxes. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plan or Programs | ||||||||
February 1 to February 28, 2019 | 95,581 | $ | 52.31 | 95,581 | ||||||||
March 1 to March 31, 2019 | 403,088 | 49.61 | 403,088 | |||||||||
Total | 498,669 | $ | 50.13 | 498,669 | 14,501,331 |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Number | Description |
2.1 | |
10.1 | |
31.1 | |
31.2 | |
32.1 | |
32.2 | |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
FLIR SYSTEMS, INC. | ||
Date May 2, 2019 | /s/ Carol P. Lowe | |
Carol P. Lowe | ||
Executive Vice President and Chief Financial Officer | ||
(Duly Authorized and Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of FLIR Systems, Inc.; |
2. | Based on my knowledge, this annual 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 evaluations; 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 of financial reporting, to the registrant’s auditors and the audit committee of 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 May 2, 2019 | /s/ James J. Cannon | |
James J. Cannon | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of FLIR Systems, Inc.; |
2. | Based on my knowledge, this quarterly 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 evaluations; 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 of financial reporting, to the registrant’s auditors and the audit committee of 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 May 2, 2019 | /s/ Carol P. Lowe | |
Carol P. Lowe | ||
Chief Financial Officer |
Date May 2, 2019 | /s/ James J. Cannon | |
James J. Cannon | ||
President and Chief Executive Officer |
Date May 2, 2019 | /s/ Carol P. Lowe | |
Carol P. Lowe | ||
Chief Financial Officer |
Document and Entity Information - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Apr. 26, 2019 |
Jun. 30, 2018 |
|
Document And Entity Information [Abstract] | |||
Entity Registrant Name | FLIR SYSTEMS INC | ||
Entity Central Index Key | 0000354908 | ||
Trading Symbol | FLIR | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 135,421,141 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7,125,061,781 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Statement [Abstract] | ||
Revenue | $ 444,736 | $ 439,618 |
Cost of Goods and Services Sold | 211,077 | 221,704 |
Gross profit | 233,659 | 217,914 |
Operating expenses: | ||
Research and development | 47,998 | 44,561 |
Selling, general and administrative | 104,579 | 107,683 |
Loss on sale of business | 0 | 10,178 |
Total operating expenses | 152,577 | 162,422 |
Earnings from operations | 81,082 | 55,492 |
Interest expense | 5,516 | 4,052 |
Interest income | (1,057) | (956) |
Other expense (income), net | 1,866 | (2,219) |
Earnings before income taxes | 74,757 | 54,615 |
Income tax provision | 13,009 | 15,420 |
Net earnings | $ 61,748 | $ 39,195 |
Net earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 0.46 | $ 0.28 |
Diluted earnings per share (in dollars per share) | $ 0.45 | $ 0.28 |
Weighted Average Number of Shares Outstanding, Basic | 135,541 | 138,504 |
Weighted Average Number of Shares Outstanding, Diluted | 137,165 | 140,994 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 61,748 | $ 39,195 |
Other comprehensive (loss) income, net of tax: | ||
Fair value adjustment on interest rate swap contracts | (807) | 0 |
Foreign currency translation adjustments | (7,440) | 13,937 |
Total other comprehensive (loss) income | (8,247) | 13,937 |
Comprehensive income | $ 53,501 | $ 53,132 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000 | 500,000 |
Common stock, shares issued | 135,380 | 135,516 |
Basis of Presentation and Significant Accounting Policies |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 | |||||
Accounting Policies [Abstract] | |||||
Nature of Business and Significant Accounting Policies | The accompanying consolidated financial statements of FLIR Systems, Inc. and its consolidated subsidiaries (the “Company”) are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The accompanying consolidated financial statements include the accounts of FLIR Systems, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the year ending December 31, 2019. Recently Adopted Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-02, "Leases ("ASC 842"). Effective January 1, 2019, the Company adopted ASC 842 and all the related amendments using the modified retrospective method, using the permitted practical expedients, to those contracts still outstanding as of January 1, 2019. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The most significant impact was the recognition, on a discounted basis, of right-of-use (ROU) assets totaling approximately $31.9 million and lease liabilities totaling approximately $34.2 million under non-cancelable operating leases as of January 1, 2019 and the related new required disclosures. The standard did not have an impact on the Company's consolidated income statements or consolidated statements of cash flows. For additional disclosures required under the new standard refer to Note 9: "Leases". FASB ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). Effective January 1, 2019, the Company adopted ASU 2017-04. The amendments in this update simplify the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment also requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The standard did not have an impact on the Company's consolidated financial statements. FASB ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). Effective January 1, 2019, the Company adopted ASU 2018-02. The standard allows companies to reclassify stranded tax effects in Accumulated other comprehensive earnings (loss) that have been caused by the Tax Cuts and Jobs Act of 2017 (the Act) to Retained earnings for each period in which the effect of the change in the U.S. federal corporate income tax rate is recorded. However, the FASB made the reclassification optional. As a result, the Company assessed the impact of the ASU on its financial statements and did not exercise the option to reclassify the stranded tax effects caused by the Act. FASB ASU No. 2018-07, "Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). Effective January 1, 2019, the Company adopted ASU 2018-07. The standard more closely aligns the accounting for employee and nonemployee share-based payments. The standard did not have a material impact on the Company's consolidated financial statements or disclosures.
Recently Adopted Accounting Pronouncements - (Continued) FASB ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“ASU 2018-15”). Effective January 1, 2019, the Company adopted ASU 2018-15. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The standard did not have a material impact on the Company’s consolidated financial statements. |
Revenue Revenue |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue | Revenue Recognition The Company designs, markets and sells products primarily as commercial, off-the-shelf products. Certain customers request different system configurations, based on standard options or accessories that the Company offers. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company regularly enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. In such situations, contract values are allocated to each performance obligation based on its relative estimated standalone selling price. The vast majority of the Company's revenues are recognized at a point in time when goods are transferred to a customer. However, for certain contracts that include highly customized components, if performance does not create an asset with an alternative use and termination for convenience clauses provide an enforceable right to payment for performance completed to date, revenue is recognized over time as the performance obligation is satisfied. Revenue includes certain shipping and handling costs and is stated net of third party agency fees. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. Revenue is recognized net of allowances for returns and net of taxes collected from customers which are subsequently remitted to governmental authorities. The Company's products are sold with warranty provisions that require it to remedy deficiencies in quality or performance of the Company's products over a specified period of time, generally twelve to twenty-four months, at no cost to its customers. Warranty liabilities are established at the time that revenue is recognized at levels that represent the Company's estimate of the costs that will be incurred to fulfill those warranty requirements. Provisions for estimated losses on sales or related receivables are recorded when identified. Service revenue is deferred and recognized over the contract period, as is the case for extended warranty contracts, or recognized as services are provided. See Note 19, "Operating Segments and Related Information - Revenue and Long-Lived Assets by Geographic Area" for information related to the Company’s revenues disaggregated by significant geographical region and operating segment. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables and deferred revenue and advance payments from customers on the Consolidated Balance Sheets. Contract assets and liabilities are reported on a contract-by-contract basis. The Company had no material deferred contract costs recorded on the Consolidated Balance Sheet as of March 31, 2019. Contract assets: The Company recognizes unbilled receivables as contract assets when the Company has rights to consideration for work completed but has not yet billed at the reporting date. Unbilled receivables are included within accounts receivable, net on the Consolidated Balance Sheets. The balance of unbilled receivables as of March 31, 2019 and December 31, 2018 were $17.7 million and $10.5 million, respectively.
Contract Balances Contract Liabilities: The Company records contract liabilities when cash payments are received or due in advance of the Company's performance. Contract liabilities include deferred revenue and advance payments from customers. Contract liabilities are classified as either current or long-term in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of March 31, 2019 and December 31, 2018, contract liability balances totaled $69.3 million and $66.4 million, respectively. These balances included amounts classified as long-term as of March 31, 2019 and December 31, 2018 and were $14.0 million and $14.0 million, respectively, and are included within pension and other long-term liabilities in the accompanying Consolidated Balance Sheets. Approximately $20.3 million of revenue recognized during the three month period ended March 31, 2019 was included in the combined opening contract liability balances. Remaining Performance Obligations Remaining performance obligations represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. While the remaining performance obligation disclosure is similar in concept to backlog, the definition of remaining performance obligations excludes contracts that provide the customer with the right to cancel or terminate for convenience with no substantial penalty, even if historical experience indicates the likelihood of cancellation or termination is remote. The Company has elected to exclude contracts with customers with an original term of one year or less from remaining performance obligations while these contracts are included within backlog. As of March 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $123.6 million. The Company expects to recognize revenue on approximately 84 percent of the remaining performance obligations over the next twelve months, and the remainder recognized thereafter. |
Stock-based compensation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock Incentive Plans The Company has a stock-based compensation program that provides equity incentives for employees, consultants and directors. This program includes incentive and non-statutory stock options and non-vested stock awards (referred to as restricted stock unit awards) granted under two plans: the FLIR Systems, Inc. 2002 Stock Incentive Plan (the “2002 Plan”) and the FLIR Systems, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The Company has discontinued issuing awards out of the 2002 Plan but previously-granted awards under the 2002 Plan remain outstanding. The Company has granted time-based options, time-based restricted stock unit awards, market-based restricted stock unit awards and performance-based restricted stock unit awards. Options generally expire ten years from the grant date. Time-based options and restricted stock unit awards generally vest over a three year period. Market-based restricted stock unit awards may be earned based upon the Company's total shareholder return compared to the total shareholder return of the component company at the 60th percentile level in the S&P 500 Index over a three year period. Performance-based restricted stock unit awards granted during the year ended December 31, 2016 may be earned based upon the Company's return on invested capital over a three year period. Performance-based restricted stock unit awards granted during the year ended December 31, 2017 may be earned based upon the Company's operating margin performance over a three year period. Performance-based restricted stock unit awards granted during the year ended December 31, 2018 may be earned based upon a combination of the Company's revenue and operating performance over a three year period. Certain shares vested under the performance-based restricted stock unit awards and the market-based restricted stock unit awards must be held by the participant for a period of one year from the vest date. Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (the “ESPP”) which allows employees to purchase shares of the Company’s common stock at 85 percent of the fair market value at the lower of either the date of enrollment or the purchase date. The ESPP provides for six-month offerings commencing on May 1 and November 1 of each year with purchases on April 30 and October 31 of each year. Shares purchased under the 2009 ESPP must be held by employees for a period of at least 18 months after the date of purchase. On April 19, 2019, the Company's shareholders approved the FLIR Systems, Inc. 2019 Employee Stock Purchase Plan ("2019 ESPP"). The final purchase under the 2009 ESPP was on April 30, 2019 and the first offering under the 2019 ESPP commenced on May 1, 2019. Note 3. Stock-based Compensation - (Continued) The following table sets forth the stock-based compensation expense recognized in the Consolidated Statements of Income (in thousands):
Stock-based compensation expense capitalized in the Consolidated Balance Sheets is as follows (in thousands):
As of March 31, 2019, the Company had approximately $45.5 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of two years. |
Net Earnings Per Share Net Earnings Per Share (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands):
The effect of stock-based compensation awards for three months ended March 31, 2019, which in the aggregate consisted of 58,000 shares have been excluded for purposes of diluted earnings per share since the effect of their inclusion would have been anti-dilutive. There were no shares excluded for the three months ended March 31, 2018. |
Fair Value of Financial Instruments |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Fair Value of Financial Instruments | Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories in accordance with FASB ASC Topic 820, “Fair Value Measurements”:
The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The Company had $0.7 million and $200.0 million of cash equivalents at March 31, 2019 and December 31, 2018, respectively, which were primarily investments in money market funds and overnight deposits. The Company has categorized its cash equivalents as a Level 1 financial asset, measured at fair value based on quoted prices in active markets of identical assets. All cash equivalents are in instruments that are convertible to cash daily. The fair value of the Company’s foreign currency contracts as of March 31, 2019 and December 31, 2018, and the interest rate swap contract as of March 31, 2019 are disclosed in Note 6, "Derivative Financial Instruments," and are based on Level 2 inputs. The fair value of the Company's borrowings under the Credit Agreement as described in Note 13, "Credit Agreement," as of March 31, 2019 approximates the carrying value. The fair value of the Company’s senior unsecured notes as described in Note 14, "Long-Term Debt," is approximately $427.0 million and $418.8 million based upon Level 2 inputs at March 31, 2019 and December 31, 2018, respectively. |
Derivative Financial Instruments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Foreign Currency Exchange Rate Risk The Company enters into foreign currency forward contracts not formally designated as hedges to manage the consolidated exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities. Changes in fair value of foreign currency forward contracts are recognized in income at the end of each reporting period based on the difference between the contract rate and the spot rate. In general, these gains and losses are offset in the Consolidated Statements of Income by the reciprocal gains and losses from the underlying assets or liabilities which originally gave rise to the exposure. The net amount of the gains and losses related to derivative instruments recorded in other expense (income), net for the three months ended March 31, 2019 and 2018 were a net gain of $0.3 million and a net loss of $4.7 million, respectively. The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):
At March 31, 2019, the Company’s foreign currency forward contracts, in general, had maturities of three months or less. The carrying amounts of the foreign exchange contracts included in the Consolidated Balance Sheets are as follows (in thousands):
Note 6. Derivative Financial Instruments - (Continued) Interest Rate Swap Contracts The Company's outstanding debt at March 31, 2019 consists of fixed rate notes and an unsecured credit facility consisting of a revolving loan facility, a U.S. dollar term loan facility and a Swedish kronor term loan facility, all of which accrue interest at a floating rate. As discussed in Note 13, "Credit Agreement," of the Notes to the Consolidated Financial Statements above, interest expense on the Company's floating rate debt is calculated based on a fixed spread over the applicable Eurocurrency rate (i.e. LIBOR). Therefore, fluctuations in market interest rates will cause interest expense increases or decreases on a given amount of floating rate debt. The Company is managing its interest rate risk related to certain floating rate debt through a floored amortizing interest rate swap (“floored swap”) in which the Company receives floating rate payments subject to a floor of zero percent and makes fixed rate payments. The impact of the floored swap is to fix the floating rate basis for the calculation of interest on the unsecured Swedish kronor term loan at the levels indicated in the table below. The effective interest rate paid is equal to the fixed rates shown below plus the applicable spread then in effect. At March 31, 2019, the effective interest rate on the Swedish kronor term loan which includes the impact of the floored swap was 1.840 percent. As of March 31, 2019, the following floored swap was outstanding:
The floored swap is designated and effective as a cash flow hedge and recorded as an asset or liability in the Company's Consolidated Balance Sheets at fair value. Fair value adjustments are recorded as an adjustment to accumulated other comprehensive earnings, except that any gains and losses on ineffectiveness of the floored swap would be recorded as an adjustment to other expense (income), net. The net fair value carrying amount of the Company's floored swap was a loss of $1.1 million, which has been recorded in prepaid expenses and other current assets, other assets, other current liabilities and pension and other long-term liabilities in the Consolidated Balance Sheet as of March 31, 2019. All of the Company's derivative counterparties have investment grade credit ratings. The Company is a party to master netting arrangements that contain features that allow counterparties to net settle amounts arising from multiple separate derivative transactions or net settle in the case of certain triggering events such as a bankruptcy or major default of one of the counterparties to the transaction. The Company has not pledged assets or posted collateral as a requirement for entering into or maintaining derivative positions. |
Accounts Receivable |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable are net of an allowance for doubtful accounts of $5.7 million and $4.3 million at March 31, 2019 and December 31, 2018, respectively. |
Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consist of the following (in thousands):
|
Leases |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in other assets, other current liabilities, and pension and other long-term liabilities on the consolidated balance sheets. The Company does not have any finance leases at March 31, 2019. Operating lease right-of-use assets (ROU assets) represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of minimum fixed lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include prepaid lease payments made prior to commencement of the lease plus initial capitalized direct costs and exclude tenant improvement allowances. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum fixed lease payments is recognized on a straight-line basis over the lease term. The Company has elected to apply the short-term lease exemption in accordance with guidance, and therefore, short-term leases (leases with a term of twelve months or less) are not recorded on the balance sheet. The Company has only a small number of leases that qualify for the exemption and the amount of its remaining short-term lease commitments is not significant. Most of the Company’s operating leases are for buildings, warehouses and office space. These leases have remaining lease terms of approximately one year to ten years. The components of lease expense was as follows (in thousands):
Supplemental cash flow information related to operating leases (in thousands):
Supplemental balance sheet information related to operating leases (in thousands):
As of March 31, 2019, the weighted average remaining lease term for operating leases was 5.3 years and the weighted average discount rate was 4.03% percent.
Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands):
The Company's future minimum lease commitments, net of sub-lease rental income, as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:
|
Property and Equipment |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment are net of accumulated depreciation of $341.0 million and $333.4 million at March 31, 2019 and December 31, 2018, respectively. |
Goodwill |
3 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Goodwill | The carrying value of goodwill and the activity for the three months ended March 31, 2019 are as follows (in thousands):
See Note 19, "Operating Segments and Related Information" of the Notes to the Consolidated Financial Statements for additional information on the carrying value of goodwill by operating segments. |
Intangible Assets |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets are net of accumulated amortization of $103.3 million and $97.7 million at March 31, 2019 and December 31, 2018, respectively. |
Credit Agreement |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreement On March 29, 2019, the Company entered into a Second Amended and Restated Credit Agreement (“Credit Agreement”) with Bank of America, N.A., JPMorgan Chase Bank, N.A., U.S. Bank National Association, Citibank, N.A., MUFG Union Bank, N.A., and the other lenders party thereto. The Credit Agreement amended and restated the Company's existing Amended and Restated Credit Agreement, dated as of May 31, 2016 ("Existing Credit Agreement"). The Credit Agreement provides for a $650.0 million unsecured revolving credit facility, a $100.0 million unsecured term loan facility available in U.S. dollars amortizing at 5.000 percent per annum, and a $150.0 million unsecured term loan facility available in Swedish kronor amortizing at 5.000 percent per annum. The Credit Agreement has a term of five years and matures on March 29, 2024. In connection with the closing of the Credit Agreement, the Company made an initial borrowing of $100.0 million in revolving loans, $100.0 million in term loans in U.S. dollars, and the equivalent of $150.0 million in term loans in Swedish kronor. Additionally, the Company repaid in full all outstanding amounts, consisting of revolving loans in an aggregate principal amount of $375.0 million, under the Existing Credit Agreement. |
Long-Term Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-term debt consists of the following (in thousands):
In June 2016, the Company issued $425.0 million aggregate principal amount of its 3.125 percent senior unsecured notes due June 15, 2021 (the “2016 Notes”). The net proceeds from the issuance of the 2016 Notes were approximately $421.0 million, after deducting underwriting discounts and offering expenses, which are being amortized over a period of five years. Interest on the 2016 Notes is payable semiannually in arrears on December 15 and June 15. The proceeds from the 2016 Notes were used to repay the principal amount of the notes outstanding in July 2016 and are being used for general corporate purposes, including working capital and capital expenditure needs, business acquisitions and repurchases of the Company’s common stock. As discussed in Note 13, "Credit Agreement," of the Notes to the Consolidated Financial Statements above, on March 29, 2019, the Company made an initial borrowing of $100.0 million in term loans in U.S. dollars, and the equivalent of $150.0 million in term loans in Swedish kronor. Both term loans amortize at 5.000 percent per annum with the current portion included in current liabilities. |
Accrued Product Warranties |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Product Warranties | The following table summarizes the Company’s warranty liability and activity (in thousands):
|
Shareholders' Equity (Notes) |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |
Stockholders' Equity | On February 7, 2019, the Company's Board of Directors authorized the repurchase of up to 15.0 million shares of the Company's outstanding common stock. This authorization expires in February 2021. During the three months ended March 31, 2019, the Company repurchased 0.5 million shares of the Company's common stock through open market transactions under the under the 2019 authorization. The February 2017 authorization by the Company's Board of Directors expired in February 2019. On March 8, 2019, the Company paid a dividend of $0.17 per share on its outstanding common stock to the shareholders of record as of the close of business on February 22, 2019. The total cash payments for dividends during the three months ended March 31, 2019 were $23.0 million. |
Contingencies |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Contingencies | Matters Involving the United States Department of State and Department of Commerce On April 24, 2018, the Company entered into a Consent Agreement with the United States Department of State's Directorate of Defense Trade Controls (“DDTC”) to resolve allegations regarding the unauthorized export of technical data and defense services to dual and third country nationals from certain Company facilities, the failure to properly use and manage export licenses and export authorizations, and failures to report certain payments under 22 CFR Part 130 in potential violation of the International Traffic in Arms Regulation (“ITAR”). The Consent Agreement has a four-year term and provides for: (i) a civil penalty of $30.0 million with $15.0 million of this amount suspended on the condition that the funds have or will be used for Department-approved Consent Agreement remedial compliance measures, (ii) the appointment of an external Special Compliance Official to oversee compliance with the Consent Agreement and the ITAR; (iii) two external audits of the Company’s ITAR compliance program; and (iv) continued implementation of ongoing remedial compliance measures and additional remedial compliance measures related to automated systems and ITAR compliance policies, procedures, and training. During the three-month period ended March 31, 2018, the Company recorded a $15.0 million charge for the portion of the penalty that is not subject to suspension. In April 2018, the Company paid $1.0 million of the $15.0 million charge and as of March 31, 2019, the remaining amount payable of $3.5 million and $10.5 million has been recorded in other current liabilities and pension and other long-term liabilities, respectively. The remaining $14.0 million is payable in annual installments of $3.5 million through April 2022. The Company expects recent and future investments in remedial compliance measures will be sufficient to cover the $15.0 million suspension amount. As part of the Consent Agreement, DDTC acknowledged that the Company voluntarily disclosed certain of the alleged Arms Export Control Act and ITAR violations, which were resolved pursuant to the Consent Agreement, cooperated in the DDTC's review, and instituted a number of compliance program improvements. In May 2017, the Company submitted an initial notification to DDTC regarding potential violations related to certain export classifications obtained through the commodity jurisdiction process and a final voluntary disclosure in August 2017. The Company also submitted a voluntary self-disclosure regarding the same matter with the United States Department of Commerce Bureau of Industry and Security ("BIS"). DDTC and BIS both acknowledged the submissions and, at the request of the agencies, the Company executed tolling agreements for this matter, suspending the statute of limitations through January 13, 2019 for DDTC and May 15, 2019 for DDTC and BIS, respectively. This matter remains under review by DDTC and BIS. In June 2017, BIS informed the Company of additional export licensing requirements that restrict the Company’s ability to sell certain thermal products without a license to customers in China not identified on a list maintained by the United States Department of Commerce. This action was precipitated by concerns of sale without a license or potential diversion of some of the Company's products to prohibited end users and to countries subject to economic and other sanctions implemented by the United States. BIS subsequently favorably modified these restrictions to reduce the applicability of the restrictions to sales of FLIR's Tau camera cores (as opposed to finished products containing Tau camera cores) to customers in China not identified on a list maintained by the United States Department of Commerce and persons in a country other than those in EAR Country Group A:5 (Supplement No. 1 to Part 740 of the EAR). If the Company is found to have violated applicable rules and regulations with respect to customers and limitations on the export and end use of the Company’s products, the Company could be subject to substantial fines and penalties, suspension of existing licenses or other authorizations and/or loss or suspension of export privileges. The Company is unable to reasonably estimate the time it may take to resolve these matters or the amount or range of potential loss, penalty or other government action, if any, that may be incurred in connection with these matters. However, an unfavorable outcome could result in substantial fines and penalties or loss or suspension of export privileges or of particular authorizations that could be material to the Company’s financial position, results of operations or cash flows in and following the period in which such an outcome becomes estimable or known.
SkyWatch Product Quality Matters In March 2016, the Company learned of potential quality concerns with respect to as many as 315 Level III and Level IV SkyWatch Surveillance Towers sold by FLIR and companies acquired by FLIR from 2002 through 2014. The Company notified customers who purchased the affected SkyWatch Towers of the potential concerns and, as a precautionary measure, also temporarily suspended production of all Level III and Level IV SkyWatch Towers pending the completion of its review and the implementation of any necessary remedial measures. The Company identified the cause of these quality issues, notified customers of their option to request repair and modification of their in-field units, and has begun in-field repairs of identified affected units. While there still remains uncertainty related to estimating the costs associated with a potential remedy and number of units which may require such remedy, the Company currently estimates the range of potential loss on remaining units to be between $4.9 million and $12.1 million. As no single amount within the range is a better estimate than any other amount within the range, the Company has recorded an accrual of $4.9 million in other current liabilities as of March 31, 2019. Factors underlying this estimated range of loss may change from time to time, and actual results may vary significantly from this estimate. Shareholder Derivative Lawsuit In October 2018, a shareholder filed a derivative lawsuit in the Circuit Court of the State of Oregon for the County of Multnomah under the caption Stein v. Carter, et al., Case No. 18CV46824, against the Company, as a nominal defendant, and certain current and former directors of the Company. Pointing to the Company’s 2015 settlement with the United States Securities and Exchange Commission of alleged United States Foreign Corrupt Practices Act violations and 2018 settlement with United States Department of State of alleged export control violations, the complaint alleges that the Company’s directors breached their fiduciary duties by failing to ensure that the Company had internal controls in place that would have prevented the alleged underlying misconduct and these settlements. The complaint also asserts claims for corporate waste and unjust enrichment, and seeks unspecified monetary damages from the individual defendants, injunctive relief, disgorgement of director compensation, and attorneys’ fees and costs. Because the complaint is derivative in nature, it does not seek monetary damages from the Company. However, the Company may be required to advance, and ultimately be responsible for, the legal fees and costs incurred by the individual defendants. On January 16, 2019, the defendants moved to dismiss the complaint. On March 21, 2019, instead of opposing the defendants' motion, the plaintiff filed an amended complaint. On April 25, 2019, the defendants moved to dismiss the amended complaint. A hearing on the motion to dismiss has been set for July 19, 2019. Other Matters The Company is also subject to other legal and administrative proceedings, investigations, claims and litigation arising in the ordinary course of business not specifically identified above. In these identified matters and others not specifically identified, the Company records a liability with respect to a matter when management believes it is both probable that a liability has been incurred and the Company can reasonably estimate the amount of the loss. The Company believes it has recorded adequate provisions for any probable and estimable losses for matters in existence on the date hereof. The Company reviews these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. While the outcome of each of these matters is currently not determinable, the Company does not expect that the ultimate resolution of any such matter will individually have a material adverse effect on the Company’s financial position, results of operations or cash flows. The costs to resolve all such matters may in the aggregate have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Income Taxes |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | The provision for income taxes was as follows:
The effective tax rate for the three months ended March 31, 2019, is lower than the United States Federal tax rate of 21.0 percent mainly due to a reduction in previously non-deductible interest expense and excess tax benefits from stock compensation, offset partially by state taxes, higher tax rates applied to income earned in certain foreign jurisdictions, and other discrete items.
As of March 31, 2019 and December 31, 2018, the Company has accrued income tax liabilities of $42.9 million related to the transition tax enacted on December 22, 2017 as part of the Tax Cuts and Jobs Act. Of the amounts accrued, none are expected to be due within one year. The remaining transition tax will not accrue interest and will be paid in annual installments beginning in 2020 through 2024. As of March 31, 2019, the Company had approximately $20.4 million of unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized. The Company anticipates approximately $5.1 million of its net unrecognized tax benefits will be recognized within 12 months as the result of settlements or effective settlements with various tax authorities, the closure of certain audits and the lapse of the applicable statute of limitations. The Company classifies interest and penalties related to unrecognized tax benefits in the income tax provision. As of March 31, 2019, the Company had $6.2 million of accrued interest and penalties related to unrecognized tax benefits that are recorded as current and non-current accrued income taxes on the Consolidated Balance Sheet. During the three-month period ending December 31, 2018, the Swedish Tax Authority (“STA”) issued a reassessment of tax for the year ending December 31, 2012 to one of the Company's non-operating subsidiaries in Sweden. The reassessment concerns the use of tax credits applied against capital gains pursuant to European Union Council Directive 2009/133/EC, commonly referred to as the EU Merger Directive, and assesses taxes and penalties totaling approximately $321.6 million (Swedish kronor 3.0 billion). The Company believes the STA’s assertions in the reassessment are not in accordance with Swedish tax regulations and plans to defend the Company's positions with the STA and through the Swedish court system, as necessary. Consequently, no adjustment to the Company's unrecognized tax benefits has been recorded in relation to this matter. Management believes that the Company's recorded tax liabilities are adequate in the aggregate for its income tax exposures. The Company currently has the following tax years open to examination by major taxing jurisdictions:
|
Operating Segments and Related Information |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Business Units and Related Information | Operating Segments The Company has three reportable operating segments as follows: Industrial Business Unit The Industrial business unit develops and manufactures thermal and visible-spectrum imaging camera cores and components that are utilized by third parties to create thermal, industrial, and other types of imaging systems. The segment also develops and manufactures devices that image, measure, and assess thermal energy, gases, and other environmental elements for industrial, commercial, and scientific applications, imaging payloads for Unmanned Aerial Systems ("UAS"), machine vision cameras, people counting and tracking, and thermal imaging solutions for use by consumers in the smartphone and mobile devices markets. Products include thermal imaging cameras, gas detection cameras, firefighting cameras, process automation cameras, and environmental test and measurement devices. Government and Defense Business Unit The Government and Defense business unit develops and manufactures enhanced imaging and recognition solutions for a wide variety of military, law enforcement, public safety, and other government customers around the world for the protection of borders, troops, and public welfare. The segment also develops and manufactures sensor instruments and integrated platform solutions for the detection, identification, and suppression of chemical, biological, radiological, nuclear, and explosives ("CBRNE") threats for military force protection, homeland security, and commercial applications. Offerings include airborne, land, maritime, and man-portable multi-spectrum imaging systems, radars, lasers, imaging components, integrated multi-sensor system platforms, CBRNE detectors, nano-class UAS solutions, and services related to these systems. Note 19. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) Commercial Business Unit The Commercial business unit develops and manufactures cameras, video recording systems, and video management systems for use in commercial and critical infrastructure, electronics and imaging instruments for the recreational and commercial maritime market, intelligent traffic monitoring and signal control systems, and hand-held and weapon-mounted thermal imaging systems for use in a variety of applications. Products include thermal and visible-spectrum security cameras, digital and networked video recorders, and related software and accessories, a full suite of networked marine electronic systems including multi-function helm displays, navigational instruments, autopilots, radars, sonar systems, thermal and visible imaging systems, and communications equipment for boats of all sizes, traffic cameras, sensors and associated traffic management software, and thermal scopes and handheld thermal cameras. The Company’s chief operating decision maker ("CODM"), its Chief Executive Officer, evaluates each of its segments’ performance and allocates resources based on revenue and segment operating income. Intersegment revenues are recorded at cost and are eliminated in consolidation. The Company and each of its segments employ consistent accounting policies. The following tables present revenue, operating income, and assets for the three segments. Operating income as reviewed by the CODM is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, loss on sale of a business and restructuring and other charges. Net accounts receivable, inventories and demonstration assets for the operating segments are regularly reviewed by management and are reported below as segment assets. All remaining assets, liabilities, capital expenditures, and depreciation are managed on a Company-wide basis. Operating segment information is as follows (in thousands):
Note 19. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands):
Unallocated corporate expenses include general corporate expenses, acquisition related costs and executive transition costs.
Note 19. Operating Segments and Related Information - (Continued) Revenue and Long-Lived Assets by Geographic Area Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands):
Long-lived assets by significant geographic locations are as follows (in thousands):
Major Customers Revenue derived from major customers is as follows (in thousands):
|
Business Acquisitions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 | |||||
Business Combinations [Abstract] | |||||
Business Acquisition | Business Acquisitions On March 26, 2018, the Company completed a transaction to acquire 100% of the outstanding stock of Fishing Hot Spots, a privately held technology company for approximately $7.1 million in cash. During the third quarter of 2018, the Company finalized the purchase price allocation and recorded $2.2 million of identified intangible assets and goodwill of $4.7 million in the Commercial business unit. On April 3, 2018, the Company completed a transaction to acquire 100% of the outstanding stock of Fishidy, Inc., a privately held startup technology company for approximately $7.1 million in cash. During the third quarter of 2018, the Company finalized the purchase price allocation and recorded $3.8 million of identified intangible assets and goodwill of $4.6 million in the Commercial business unit. On September 10, 2018, the Company completed a transaction to acquire 100% of the outstanding stock of Acyclica, Inc., a privately held software developer for automotive roadway and intersection data generation and analysis for approximately $10.3 million, including an estimate for contingent consideration pursuant to the stock purchase agreement. The allocation of the purchase price to identified intangible assets and goodwill is subject to the final determination of the valuation of the assets acquired and liabilities assumed. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of intangible assets and related taxes. The final allocation of the purchase price to the assets acquired and liabilities assumed will be completed when the final assessments of the intangible assets and related taxes are completed during the first half of 2019. Goodwill and intangibles will be recorded in the Commercial business unit. The preliminary unallocated purchase price of approximately $9.9 million, including an estimate for contingent consideration pursuant to the stock purchase agreement, has been reported in unallocated assets from acquisitions as of March 31, 2019. On October 16, 2018, the Company acquired substantially all of the outstanding shares of SeaPilot AB, a privately held technology company for approximately $4.6 million in cash. The allocation of the purchase price to identified intangible assets and goodwill is subject to the final determination of the valuation of the assets acquired and liabilities assumed. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of intangible assets and related taxes. The final allocation of the purchase price to the assets acquired and liabilities assumed will be completed when the final assessments of the intangible assets and related taxes are completed during the first half of 2019. Goodwill and intangibles will be recorded in the Commercial business unit. The preliminary unallocated purchase price of approximately $4.3 million has been reported in unallocated assets from acquisitions as of December 31, 2018. On January 28, 2019, the Company completed its acquisition of 100% of the outstanding stock of Aeryon Labs Inc., a privately held developer of high-performance UAS for the global military, public safety, and critical infrastructure markets for approximately $210.6 million in cash. The allocation of the purchase price to identified intangible assets and goodwill is subject to the final determination of the valuation of the assets acquired and liabilities assumed. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of intangible assets and related taxes. The final allocation of the purchase price to the assets acquired and liabilities assumed will be completed when the final assessments of the intangible assets and related taxes are completed during the second half of 2019. Goodwill and intangibles will be recorded in the Government and Defense business unit. The preliminary unallocated purchase price of approximately $192.8 million has been reported in unallocated assets from acquisitions as of March 31, 2019. On March 4, 2019, the Company completed its acquisition of 100% of the outstanding stock of Endeavor Robotics Holdings, Inc. a privately held developer of battle-tested, tactical unmanned ground vehicles for the global military, public safety, and critical infrastructure markets for approximately $386.8 million in cash. The allocation of the purchase price to identified intangible assets and goodwill is subject to the final determination of the valuation of the assets acquired and liabilities assumed. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of intangible assets and related taxes. The final allocation of the purchase price to the assets acquired and liabilities assumed will be completed when the final assessments of the intangible assets and related taxes are completed during the second half of 2019. Goodwill and intangibles will be recorded in the Government and Defense business unit. The preliminary unallocated purchase price of approximately $368.0 million has been reported in unallocated assets from acquisitions as of March 31, 2019. The business acquisitions listed above are not significant as defined in Regulation S–X under the Securities Exchange Act of 1934, nor are they significant compared to the Company's overall results of operations. Consequently, no pro forma financial information is provided.
Divestitures of the Consumer and Small and Medium-Sized Security Businesses On February 6, 2018 the Company sold the Consumer and Small and Medium-sized ("SMB") Security businesses within the Commercial business unit for total cash consideration of approximately $28.8 million. As a result of this combined sale, the Company recognized a total pre-tax loss of approximately $37.3 million (approximately $23.6 million in year ended December 31, 2017 and approximately $13.7 million in the year ended December 31, 2018). This disposal did not qualify as discontinued operations and therefore, its operating results were included in the Company’s continuing operations for all periods presented through the date of the sale. |
Subsequent Events |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | On April 18, 2019, the Company’s Board of Directors declared a quarterly dividend of $0.17 per share on its common stock, payable on June 7, 2019, to shareholders of record as of the close of business on May 24, 2019. The total cash payment of this dividend will be approximately $23.0 million. On May 1, 2019, the Company acquired the outstanding stock of New England Optical Systems, Inc., a privately-held engineering and manufacturing company engaged in the design and production of technologically advanced infrared optical assemblies. The transaction consideration includes an initial $22.0 million cash payment with up to an additional $12.0 million paid over a two-year period, dependent upon achieving certain milestones. The acquisition will be reported within the Company’s Industrial Business Unit, further expanding its vertically integrated manufacturing strategy. |
Basis of Presentation and Significant Accounting Policies (Policies) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 | ||||
Accounting Policies [Abstract] | ||||
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-02, "Leases ("ASC 842"). Effective January 1, 2019, the Company adopted ASC 842 and all the related amendments using the modified retrospective method, using the permitted practical expedients, to those contracts still outstanding as of January 1, 2019. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The most significant impact was the recognition, on a discounted basis, of right-of-use (ROU) assets totaling approximately $31.9 million and lease liabilities totaling approximately $34.2 million under non-cancelable operating leases as of January 1, 2019 and the related new required disclosures. The standard did not have an impact on the Company's consolidated income statements or consolidated statements of cash flows. For additional disclosures required under the new standard refer to Note 9: "Leases". FASB ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). Effective January 1, 2019, the Company adopted ASU 2017-04. The amendments in this update simplify the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment also requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The standard did not have an impact on the Company's consolidated financial statements. FASB ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). Effective January 1, 2019, the Company adopted ASU 2018-02. The standard allows companies to reclassify stranded tax effects in Accumulated other comprehensive earnings (loss) that have been caused by the Tax Cuts and Jobs Act of 2017 (the Act) to Retained earnings for each period in which the effect of the change in the U.S. federal corporate income tax rate is recorded. However, the FASB made the reclassification optional. As a result, the Company assessed the impact of the ASU on its financial statements and did not exercise the option to reclassify the stranded tax effects caused by the Act. FASB ASU No. 2018-07, "Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). Effective January 1, 2019, the Company adopted ASU 2018-07. The standard more closely aligns the accounting for employee and nonemployee share-based payments. The standard did not have a material impact on the Company's consolidated financial statements or disclosures. |
Stock-based compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table sets forth the stock-based compensation expense recognized in the Consolidated Statements of Income (in thousands):
Stock-based compensation expense capitalized in the Consolidated Balance Sheets is as follows (in thousands):
|
Net Earnings Per Share Net Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands):
|
Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amounts of outstanding foreign currency forward contracts by currency | The carrying amounts of the foreign exchange contracts included in the Consolidated Balance Sheets are as follows (in thousands):
The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):
As of March 31, 2019, the following floored swap was outstanding:
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consist of the following (in thousands):
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Costs | The components of lease expense was as follows (in thousands):
Supplemental cash flow information related to operating leases (in thousands):
Supplemental balance sheet information related to operating leases (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity of Lease Liabilities | Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands):
The Company's future minimum lease commitments, net of sub-lease rental income, as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:
|
Goodwill (Tables) |
3 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Carrying value and the activity | The carrying value of goodwill and the activity for the three months ended March 31, 2019 are as follows (in thousands):
|
Long-Term Debt Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt consists of the following (in thousands):
|
Accrued Product Warranties (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Warranty Liability and Activity | The following table summarizes the Company’s warranty liability and activity (in thousands):
|
Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Tax years open to examination by major taxing jurisdictions | The Company currently has the following tax years open to examination by major taxing jurisdictions:
|
Operating Segments and Related Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Business Unit Information | Operating segment information is as follows (in thousands):
Note 19. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands):
Unallocated corporate expenses include general corporate expenses, acquisition related costs and executive transition costs. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business unit assets |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
By Significant Geographical Location | Revenue and Long-Lived Assets by Geographic Area Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands):
Long-lived assets by significant geographic locations are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Derived from Major Customers | Major Customers Revenue derived from major customers is as follows (in thousands):
|
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
Accounting Policies [Abstract] | ||
Right-of-use assets | $ 30,222 | $ 31,900 |
Lease liabilities | $ 33,655 | $ 34,200 |
Stock-based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 8,090 | $ 5,931 |
Cost of Goods Sold [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expese | 847 | 695 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expese | 1,708 | 1,409 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expese | $ 5,535 | $ 3,827 |
Stock-based compensation Stock-based Compensation (Details 1) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation [Abstract] | ||
Capitalized in inventory | $ 1,279 | $ 1,057 |
Stock-based Compensation (Detail textual) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Share-based Compensation [Abstract] | |
Unrecognized stock-based compensation costs, net of estimated forfeiture | $ 45.5 |
Weighted average period of unrecognized stock-based compensation costs, net of estimated forfeiture | 2 years |
Net Earnings Per Share Net Earnings Per Share (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Earnings Per Share [Abstract] | ||
Net Income (loss) Available to Common Stockholders, Basic | $ 61,748 | $ 39,195 |
Weighted Average Number of Shares Outstanding, Basic | 135,541 | 138,504 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1,624 | 2,490 |
Weighted Average Number of Shares Outstanding, Diluted | 137,165 | 140,994 |
Net Earnings Per Share Net Earnings Per Share (Detail textual) |
3 Months Ended |
---|---|
Mar. 31, 2019
shares
| |
Earnings Per Share [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 58,000 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | $ 0.7 | $ 200.0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior unsecured notes | $ 427.0 | $ 418.8 |
Derivative Financial Instruments (Details 2) - Foreign exchange contracts - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Other Current Assets | ||
Derivatives [Line Items] | ||
Carrying amount of derivative asset | $ 730 | $ 431 |
Other Current Liabilities | ||
Derivatives [Line Items] | ||
Carrying amount of derivative liability | $ 1,112 | $ 951 |
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Derivative [Line Items] | ||
Notional Amount | $ 120,925 | $ 95,896 |
Fixed Rate | 0.59% | |
Effective Date | Mar. 29, 2019 | |
Maturity Date | Mar. 31, 2024 | |
Debt Instrument, Interest Rate, Effective Percentage | 1.84% | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 1,100 | |
Swedish Kronor | ||
Derivative [Line Items] | ||
Notional Amount | 6,707 | $ 3,608 |
Swedish Kronor | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,390,200 |
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, Gain on Derivative | $ 0.3 | |
Derivative, Loss on Derivative | $ (4.7) |
Accounts Receivable (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ 5.7 | $ 4.3 |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw material and subassemblies | $ 218,651 | $ 214,164 |
Work-in-progress | 52,748 | 43,096 |
Finished goods | 113,917 | 94,847 |
Total inventories | $ 385,316 | $ 352,107 |
Leases (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Lessee, Lease, Description [Line Items] | |
Operating lease expense | $ 2,635 |
Short-term lease expense | 246 |
Variable lease expense | 514 |
Total lease expense | $ 3,395 |
Weighted average remaining lease term | 5 years 3 months 15 days |
Weighted average discount rate (percent) | 4.03% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 10 years |
Leases - Supplemental Cash Flow Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 2,422 |
Right-of-use assets obtained in exchange for lease obligations | $ 300 |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 30,222 | $ 31,900 |
Operating lease liabilities | $ 33,655 | $ 34,200 |
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Leases [Abstract] | |||
Nine months ending December 31, 2019 | $ 6,904 | ||
2020 | 8,300 | ||
2021 | 7,522 | ||
2022 | 4,636 | ||
2023 | 2,619 | ||
2024 | 1,760 | ||
Thereafter | 5,883 | ||
Total lease payments | 37,624 | ||
Less: imputed interest | (3,969) | ||
Present value of lease liabilities | $ 33,655 | $ 34,200 | |
Leases Payments under Topic 840 [Abstract] | |||
2019 | $ 10,561 | ||
2020 | 8,270 | ||
2021 | 7,283 | ||
2022 | 4,894 | ||
2023 | 2,934 | ||
Thereafter | 5,911 | ||
Total minimum payments | $ 39,853 |
Property and Equipment (Details Textual) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Property, Plant and Equipment [Abstract] | ||
Accrumulated Depreciation | $ 341.0 | $ 333.4 |
Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning Balance | $ 904,571 |
Goodwill, Translation Adjustments | (1,110) |
Ending Balance | $ 903,461 |
Intangible Assets Intangible Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Intangible Assets [Abstract] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 103.3 | $ 97.7 |
Accrued Product Warranties (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Accrued product warranties, beginning of year | $ 18,583 | $ 18,052 | |
Amounts paid for warranty services | (2,776) | (3,278) | |
Warranty provisions for products sold | 2,414 | 3,536 | |
Business acquisitions and disposals | 874 | 0 | |
Currency translation adjustments and other | (37) | 202 | |
Accrued product warranties, end of year | 19,058 | 18,512 | |
Current accrued product warranties, end of year | 15,747 | 15,319 | $ 15,204 |
Long-term accrued product warranties, end of ear | $ 3,311 | $ 3,193 |
Shareholders' Equity Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.17 | $ 0.16 |
Dividends paid | $ 23,031 | $ 22,232 |
Shareholders' Equity Shareholders' Equity Note (Detail textual) (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Feb. 07, 2019 |
|
Stockholders' Equity Note [Abstract] | ||
Stock Repurchased During Period, Shares | 0.5 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 15.0 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Current tax expense (benefit): | ||
Income tax provision | $ 13,009 | $ 15,420 |
Effective tax rate | 17.40% | 28.20% |
Current income tax expense (benefit) | $ 5,100 | |
Deferred tax expense (benefit): | ||
Deferred Income Tax Expense (Benefit), Excluding Discontinued Operations | $ 20,400 |
Income Taxes (Details 2) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Foreign | ||
Income Taxes [Line Items] | ||
Income Tax Examination, Estimate of Possible Loss | $ 321.6 | |
Transition [Member] | ||
Income Taxes [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 42.9 |
Income Taxes (Details 3) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Statutory federal tax rate | 21.00% |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 6.2 |
Operating Segments and Related Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
segment
| |
Segment Reporting [Abstract] | |
Number of operating business units | 3 |
Operating Segments and Related Information Operating Segments and related information (Details 3) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Business Unit Reporting, Revenue Reconciling Item [Line Items] | ||
Unallocated corporate expense | $ (24,562) | $ (34,948) |
Amortization of purchased Intangible Assets | (5,928) | (5,987) |
Amortization of acquisition-related inventory step-up | (6,477) | 0 |
Loss on sale of business | 0 | (10,178) |
Other | 63 | 496 |
Consolidated earnings from operations | 81,082 | 55,492 |
Other Nonoperating Expense | (6,325) | (877) |
Consolidated earnings before income taxes | 74,757 | 54,615 |
Total Segments [Member] | ||
Business Unit Reporting, Revenue Reconciling Item [Line Items] | ||
Consolidated segment operating income | 118,112 | 106,109 |
Consolidated earnings from operations | $ 118,112 | $ 106,109 |
Operating Segments and Related Information (Details 6) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Business Unit Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 1,981,158 | $ 1,387,975 |
United States | ||
Business Unit Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 1,308,819 | 720,885 |
Europe [Member] | ||
Business Unit Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 445,145 | 446,704 |
Other Geographic Region [Member] | ||
Business Unit Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 227,194 | $ 220,386 |
Operating Segments and Related Information (Details 7) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Revenue, Major Customer [Line Items] | ||
Revenue | $ 444,736 | $ 439,618 |
United States government | ||
Revenue, Major Customer [Line Items] | ||
Revenue | $ 137,493 | $ 118,955 |
Business Acquisitions (Details 1) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Business Acquisition [Line Items] | ||
Goodwill | $ 903,461 | $ 904,571 |
Business Acquisitions and Divestitures Divestitures Textual (Detail) - Held-for-sale [Member] - Consumer and Small and Medium-Sized Security Business [Member] - USD ($) $ in Millions |
12 Months Ended | 24 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Feb. 06, 2018 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Carrying amount of disposal group | $ 28.8 | |||
Pre-tax loss on net asset held for sale | $ 13.7 | $ 23.6 | $ 37.3 |
Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions |
Jun. 07, 2019 |
May 24, 2019 |
May 01, 2019 |
Apr. 18, 2019 |
---|---|---|---|---|
Subsequent Event [Line Items] | ||||
Dividends Payable, Date Declared | Apr. 18, 2019 | |||
Quarterly dividend, value per share | $ 0.17 | |||
Quarterly dividend, date to be paid | Jun. 07, 2019 | |||
Quarterly dividend, date of record | May 24, 2019 | |||
Quarterly dividend, amount declared | $ 23.0 | |||
Business Combination, Consideration Transferred | $ 22.0 | |||
Business Combination, Contingent Consideration, Liability | $ 12.0 |
>.(QW0/-D&P)$7);7-:.-<=V3,%@TH86^P ^UO
M*C1*.&^:FMG.@"@C2$G&-YLO3(E6TSR-OK/)4^R=;#6<#;&]4L+\.X'$(:-;
M^NIX:.O&!0?+TT[4\!O UD6(>)
M_U:V7D"G CH7T+&742@X?V:6%9E6 ]+CV??,7_'V0-W9E#X9CB)\<^:-RUX+
MFL89N7JB"7,<,72!V N3MZD ;$ZKIO92X$5HDKFWFRYW[I^)
M5IG=:Q[B>19<+5&+63<8TL/@#A$8]DZ"0!)K,C(GCP*;,2(.8840#")T]F$_
M"$1@@AE(,',$LX.>3M]Y[+>_2G%R#S@PY31"Z@B0+@GCQ)0+=
MBG"BG^ATFYYN)IA&>KJ.?LBV!;)-@2P*9/^K\#,D.>P_Q""KCDHP;9PEBRH]
MJ#C'*^\RKO)*RMYYHR86E*+X^[@+'?=AO+G>3;!U0#(!DAFPCWG8F"@J?^">%YDU
M [%C[SL>GGA[2+ W97#&5L0[%._0>RFV^YN,70+1%',<8Y)ES!S!D'U.D:RE
M.";_P)-U^&Y5X2["=W\H3-<)TE6"-!*D_RUQ+>;VKR1LT5,%MHG3Y$AI>ATG
M>>&=!_8NB6_R.WR<]F_<-D([M-25DFD;A$"":15$?#L
M32:)55^"[6S*WS-VTA @XL7VC.><.3,>YZ-US[X#".1%*^,+VH70'QGS50=:
M^!O;@\&;QCHM IJN9;YW(.H$THKQW>Z.:2$-+?/D.[LRMT-0TL#9$3]H+=S/
M$R@[%G1/7QU/LNU"=+ R[T4+7R!\[<\.+;:PU%*#\=(:XJ IZ,/^>,IB? KX
M)F'TJS.)E5RL?8[&Q[J@NR@(%%0A,@C
19>%?>3Q3M[AT[9_$[:1G2-GX_%FX_QK8SQ@
M*6#W(LB^R0@%;$Q$/M%8V%%H:"F@L4.SH _>
M(@BV#((\,V@L!!IK+.PLE$YPA@--+@GV( ),V#E)'BE@>Z'Y]#W$L+]P"/2L
M?^:!H!&IAADPX)G7DS/O$H8=AW^"A;X;;ZT!3WWP8]A>&3KZ^.?#P3.L=
M.$VJH'.#,7?0GU2<\TIZ>Z[T964Z<*Z8YPRS$\&M+A> -@\".P9*H/\L#"AI*'-X0".P(W$\&
M7. J)M$-N<