[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 |
Delaware
(State or other jurisdiction of
incorporation or organization) |
51-0263969
(I.R.S. Employer Identification No.)
|
6901 Professional Pkwy. East, Suite 200
Sarasota, Florida (Address of principal executive offices) |
34240
(Zip Code)
|
(941) 556-2601
(Registrant's telephone number, including area code)
|
þ Large accelerated filer
|
¨ Accelerated filer
|
¨ Non-accelerated filer (do not check if smaller reporting company)
|
¨ Smaller reporting company
|
|
|
Page
|
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements (unaudited):
|
|
|
Condensed Consolidated Statements of Earnings
|
3
|
|
Condensed Consolidated Statements of Comprehensive Income
|
4
|
|
Condensed Consolidated Balance Sheets
|
5
|
|
Condensed Consolidated Statements of Cash Flows
|
6
|
|
Condensed Consolidated Statement of Changes in Stockholders' Equity
|
7
|
|
Notes to Condensed Consolidated Financial Statements
|
8
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Item 2.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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15
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
|
22
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Item 4.
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Controls and Procedures
|
23
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PART II.
|
OTHER INFORMATION
|
|
Item 1.
|
Legal Proceedings
|
23
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Item 1A.
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Risk Factors
|
23
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Item 6.
|
Exhibits
|
24
|
|
Signatures
|
25
|
PART I. | FINANCIAL INFORMATION |
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
784,010
|
|
$
|
724,872
|
|
$
|
1,521,145
|
|
$
|
1,435,938
|
|
Cost of sales
|
|
|
338,503
|
|
|
327,264
|
|
|
654,062
|
|
|
647,137
|
|
Gross profit
|
|
|
445,507
|
|
|
397,608
|
|
|
867,083
|
|
|
788,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
265,761
|
|
|
218,824
|
|
|
502,160
|
|
|
439,713
|
|
Income from operations
|
|
|
179,746
|
|
|
178,784
|
|
|
364,923
|
|
|
349,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
22,361
|
|
|
15,077
|
|
|
43,219
|
|
|
30,560
|
|
Other income/(expense), net
|
|
|
2,536
|
|
|
(574
|
)
|
|
44
|
|
|
(1,064
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
159,921
|
|
|
163,133
|
|
|
321,748
|
|
|
317,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
48,568
|
|
|
48,320
|
|
|
85,481
|
|
|
94,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
111,353
|
|
$
|
114,813
|
|
$
|
236,267
|
|
$
|
223,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.12
|
|
$
|
1.18
|
|
$
|
2.39
|
|
$
|
2.29
|
|
Diluted
|
|
|
1.11
|
|
|
1.15
|
|
|
2.36
|
|
|
2.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
99,089
|
|
|
97,460
|
|
|
98,983
|
|
|
97,249
|
|
Diluted
|
|
|
100,162
|
|
|
99,619
|
|
|
100,071
|
|
|
99,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.1650
|
|
$
|
0.1375
|
|
$
|
0.3300
|
|
$
|
0.2750
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
111,353
|
|
$
|
114,813
|
|
$
|
236,267
|
|
$
|
223,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
(3,632
|
)
|
|
(33,208
|
)
|
|
(42,121
|
)
|
|
(14,047
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income/(loss), net of tax
|
|
|
(3,632
|
)
|
|
(33,208
|
)
|
|
(42,121
|
)
|
|
(14,047
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
$
|
107,721
|
|
$
|
81,605
|
|
$
|
194,146
|
|
$
|
209,075
|
|
|
|
June 30, 2013
|
|
December 31, 2012
|
|
||
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
374,571
|
|
$
|
370,590
|
|
Accounts receivable, net
|
|
|
547,572
|
|
|
526,408
|
|
Inventories, net
|
|
|
197,458
|
|
|
190,867
|
|
Deferred taxes
|
|
|
58,582
|
|
|
41,992
|
|
Unbilled receivables
|
|
|
84,319
|
|
|
72,193
|
|
Other current assets
|
|
|
65,633
|
|
|
43,492
|
|
Total current assets
|
|
|
1,328,135
|
|
|
1,245,542
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
115,677
|
|
|
110,397
|
|
Goodwill
|
|
|
4,521,774
|
|
|
3,868,857
|
|
Other intangible assets, net
|
|
|
2,084,677
|
|
|
1,698,867
|
|
Deferred taxes
|
|
|
86,579
|
|
|
78,644
|
|
Other assets
|
|
|
76,900
|
|
|
68,797
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
8,213,742
|
|
$
|
7,071,104
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
139,296
|
|
$
|
138,340
|
|
Accrued compensation
|
|
|
83,862
|
|
|
110,724
|
|
Deferred revenue
|
|
|
209,249
|
|
|
185,912
|
|
Other accrued liabilities
|
|
|
171,050
|
|
|
128,351
|
|
Deferred taxes
|
|
|
10,595
|
|
|
3,868
|
|
Current portion of long-term debt, net
|
|
|
512,799
|
|
|
519,015
|
|
Total current liabilities
|
|
|
1,126,851
|
|
|
1,086,210
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
|
2,245,424
|
|
|
1,503,107
|
|
Deferred taxes
|
|
|
856,551
|
|
|
707,278
|
|
Other liabilities
|
|
|
95,368
|
|
|
86,783
|
|
Total liabilities
|
|
|
4,324,194
|
|
|
3,383,378
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
1,012
|
|
|
1,006
|
|
Additional paid-in capital
|
|
|
1,198,269
|
|
|
1,158,001
|
|
Retained earnings
|
|
|
2,693,421
|
|
|
2,489,858
|
|
Accumulated other comprehensive earnings
|
|
|
16,416
|
|
|
58,537
|
|
Treasury stock
|
|
|
(19,570
|
)
|
|
(19,676
|
)
|
Total stockholders' equity
|
|
|
3,889,548
|
|
|
3,687,726
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
8,213,742
|
|
$
|
7,071,104
|
|
|
|
Six months ended June 30,
|
|
||||
|
|
2013
|
|
2012
|
|
||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
236,267
|
|
$
|
223,122
|
|
Adjustments to reconcile net earnings to cash flows from operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization of property, plant and equipment
|
|
|
18,742
|
|
|
18,950
|
|
Amortization of intangible assets
|
|
|
71,794
|
|
|
52,289
|
|
Amortization of deferred financing costs
|
|
|
1,802
|
|
|
1,181
|
|
Non-cash stock compensation
|
|
|
26,284
|
|
|
19,704
|
|
Changes in operating assets and liabilities, net of acquired businesses:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
10,636
|
|
|
(2,321
|
)
|
Unbilled receivables
|
|
|
(12,483
|
)
|
|
(10,244
|
)
|
Inventories
|
|
|
(10,362
|
)
|
|
(5,452
|
)
|
Accounts payable and accrued liabilities
|
|
|
(9,091
|
)
|
|
(20,371
|
)
|
Income taxes payable
|
|
|
(17,925
|
)
|
|
(18,615
|
)
|
Other, net
|
|
|
(4,657
|
)
|
|
2,540
|
|
Cash provided by operating activities
|
|
|
311,007
|
|
|
260,783
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Acquisitions of businesses, net of cash acquired
|
|
|
(1,007,513
|
)
|
|
(36,872
|
)
|
Capital expenditures
|
|
|
(21,889
|
)
|
|
(20,532
|
)
|
Proceeds from sale of assets
|
|
|
1,349
|
|
|
1,018
|
|
Other, net
|
|
|
(35
|
)
|
|
(474
|
)
|
Cash used in investing activities
|
|
|
(1,028,088
|
)
|
|
(56,860
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from senior notes
|
|
|
800,000
|
|
|
-
|
|
Payments under revolving line of credit, net
|
|
|
(58,000
|
)
|
|
-
|
|
Principal payments on convertible notes
|
|
|
(1,671
|
)
|
|
(13,215
|
)
|
Cash premiums paid on convertible note conversions
|
|
|
(4,040
|
)
|
|
(19,149
|
)
|
Debt issuance costs
|
|
|
(7,517
|
)
|
|
-
|
|
Cash dividends to stockholders
|
|
|
(16,338
|
)
|
|
(26,673
|
)
|
Proceeds from stock based compensation, net
|
|
|
10,998
|
|
|
28,314
|
|
Stock award tax excess windfall benefit
|
|
|
5,654
|
|
|
11,070
|
|
Treasury stock sales
|
|
|
1,250
|
|
|
1,123
|
|
Other
|
|
|
576
|
|
|
(1,107
|
)
|
Cash provided by/(used in) financing activities
|
|
|
730,912
|
|
|
(19,637
|
)
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash
|
|
|
(9,850
|
)
|
|
(3,489
|
)
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
3,981
|
|
|
180,797
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
370,590
|
|
|
338,101
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
374,571
|
|
$
|
518,898
|
|
|
|
Common
stock |
|
Additional paid-in capital
|
|
Retained
earnings
|
|
Accumulated other comprehensive earnings
|
|
Treasury
stock
|
|
Total
|
|
||||||
Balances at December 31, 2012
|
|
$
|
1,006
|
|
$
|
1,158,001
|
|
$
|
2,489,858
|
|
$
|
58,537
|
|
$
|
(19,676
|
)
|
$
|
3,687,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
-
|
|
|
-
|
|
|
236,267
|
|
|
-
|
|
|
-
|
|
|
236,267
|
|
Stock option exercises
|
|
|
3
|
|
|
14,408
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
14,411
|
|
Treasury stock sold
|
|
|
-
|
|
|
1,144
|
|
|
-
|
|
|
-
|
|
|
106
|
|
|
1,250
|
|
Currency translation adjustments, net of $2,707 tax
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(42,121
|
)
|
|
-
|
|
|
(42,121
|
)
|
Stock based compensation
|
|
|
-
|
|
|
26,289
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
26,289
|
|
Restricted stock activity
|
|
|
3
|
|
|
(3,402
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,399
|
)
|
Stock option tax benefit, net of shortfalls
|
|
|
-
|
|
|
5,557
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,557
|
|
Conversion of senior subordinated convertible notes, net of $312 tax
|
|
|
-
|
|
|
(3,728
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,728
|
)
|
Dividends declared
|
|
|
-
|
|
|
-
|
|
|
(32,704
|
)
|
|
-
|
|
|
-
|
|
|
(32,704
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at June 30, 2013
|
|
$
|
1,012
|
|
$
|
1,198,269
|
|
$
|
2,693,421
|
|
$
|
16,416
|
|
$
|
(19,570
|
)
|
$
|
3,889,548
|
|
1.
|
Basis of Presentation
|
2.
|
Recent Accounting Pronouncements
|
3.
|
Earnings Per Share
|
|
Three months ended June 30,
|
Six months ended June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Basic shares outstanding
|
99,089
|
97,460
|
98,983
|
97,249
|
||||||||||||
Effect of potential common stock:
|
||||||||||||||||
Common stock awards
|
882
|
1,129
|
884
|
1,172
|
||||||||||||
Senior subordinated convertible notes
|
191
|
1,030
|
204
|
1,079
|
||||||||||||
Diluted shares outstanding
|
100,162
|
99,619
|
100,071
|
99,500
|
4.
|
Business Acquisitions
|
Current assets
|
$
|
59,813
|
||
Identifiable intangibles
|
465,500
|
|||
Goodwill
|
679,999
|
|||
Other assets
|
5,798
|
|||
Total assets acquired
|
1,211,110
|
|||
Current liabilities
|
(24,717
|
)
|
||
Long-term deferred tax liability
|
(164,319
|
)
|
||
Other liabilities
|
(6,524
|
)
|
||
Net assets acquired
|
$
|
1,015,550
|
5.
|
Stock Based Compensation
|
|
Three months ended
June 30, |
Six months ended
June 30, |
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Stock based compensation
|
$
|
13,307
|
$
|
9,749
|
$
|
26,284
|
$
|
19,704
|
||||||||
Tax effect recognized in net income
|
4,658
|
3,412
|
9,199
|
6,896
|
||||||||||||
Windfall tax benefit/(shortfall), net
|
1,245
|
3,551
|
5,557
|
10,966
|
|
Six months ended June 30,
|
||
|
2013
|
|
2012
|
Fair value per share ($)
|
36.55
|
|
29.39
|
Risk-free interest rate (%)
|
0.78
|
|
0.82
|
Expected option life (years)
|
5.19
|
|
5.22
|
Expected volatility (%)
|
36.22
|
|
36.55
|
Expected dividend yield (%)
|
0.57
|
|
0.59
|
6.
|
Inventories
|
|
|
June 30,
2013 |
|
December 31,
2012 |
|
||
|
|
(in thousands)
|
|
||||
Raw materials and supplies
|
|
$
|
123,437
|
|
$
|
121,573
|
|
Work in process
|
|
|
33,648
|
|
|
29,725
|
|
Finished products
|
|
|
84,639
|
|
|
81,536
|
|
Inventory reserves
|
|
|
(44,266
|
)
|
|
(41,967
|
)
|
|
|
$
|
197,458
|
|
$
|
190,867
|
|
7.
|
Goodwill and Other Intangible Assets
|
|
Industrial Technology
|
|
Energy Systems & Controls
|
|
Medical & Scientific Imaging
|
|
RF Technology
|
|
Total
|
|
|||||
Balances at December 31, 2012
|
$
|
421,755
|
|
$
|
404,057
|
|
$
|
1,772,402
|
|
$
|
1,270,643
|
|
$
|
3,868,857
|
|
Additions
|
|
-
|
|
|
-
|
|
|
679,999
|
|
|
-
|
|
|
679,999
|
|
Other
|
|
-
|
|
|
-
|
|
|
(3,793
|
)
|
|
445
|
|
|
(3,348
|
)
|
Currency translation adjustments
|
|
(4,019
|
)
|
|
(2,400
|
)
|
|
(11,647
|
)
|
|
(5,668
|
)
|
|
(23,734
|
)
|
Balances at June 30, 2013
|
$
|
417,736
|
|
$
|
401,657
|
|
$
|
2,436,961
|
|
$
|
1,265,420
|
|
$
|
4,521,774
|
|
|
|
Cost
|
|
Accumulated
amortization |
|
Net book
value |
|
|||
Assets subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
Customer related intangibles
|
|
$
|
1,509,339
|
|
$
|
(379,535
|
)
|
$
|
1,129,804
|
|
Unpatented technology
|
|
|
198,609
|
|
|
(97,487
|
)
|
|
101,122
|
|
Software
|
|
|
160,520
|
|
|
(44,256
|
)
|
|
116,264
|
|
Patents and other protective rights
|
|
|
40,399
|
|
|
(20,312
|
)
|
|
20,087
|
|
Trade secrets
|
|
|
1,500
|
|
|
(1,500
|
)
|
|
-
|
|
Assets not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
Trade names
|
|
|
331,590
|
|
|
-
|
|
|
331,590
|
|
Balances at December 31, 2012
|
|
$
|
2,241,957
|
|
$
|
(543,090
|
)
|
$
|
1,698,867
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
Customer related intangibles
|
|
$
|
1,934,311
|
|
$
|
(426,269
|
)
|
$
|
1,508,042
|
|
Unpatented technology
|
|
|
210,943
|
|
|
(109,356
|
)
|
|
101,587
|
|
Software
|
|
|
160,245
|
|
|
(51,248
|
)
|
|
108,997
|
|
Patents and other protective rights
|
|
|
30,150
|
|
|
(21,420
|
)
|
|
8,730
|
|
Trade secrets
|
|
|
1,500
|
|
|
(1,500
|
)
|
|
-
|
|
Assets not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
Trade names
|
|
|
357,321
|
|
|
-
|
|
|
357,321
|
|
Balances at June 30, 2013
|
|
$
|
2,694,470
|
|
$
|
(609,793
|
)
|
$
|
2,084,677
|
|
8.
|
Debt
|
9.
|
Fair Value of Financial Instruments
|
$500 million senior notes due 2013
|
$
|
503
|
||
$400 million senior notes due 2017
|
394
|
|||
$800 million senior notes due 2018
|
786
|
|||
$500 million senior notes due 2019
|
582
|
|||
$500 million senior notes due 2022
|
477
|
10.
|
Contingencies
|
Balance at December 31, 2012
|
|
$
|
9,755
|
|
Additions charged to costs and expenses*
|
|
|
14,935
|
|
Deductions
|
|
|
(5,900
|
)
|
Other
|
|
|
(243
|
)
|
Balance at June 30, 2013
|
|
$
|
18,547
|
|
11.
|
Business Segments
|
|
Three months ended
June 30, |
|
|
Six months ended
June 30, |
|
|
|||||||||
|
2013
|
|
2012
|
Change
|
|
2013
|
|
2012
|
Change
|
|
|||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Technology
|
$
|
197,543
|
|
$
|
203,944
|
(3.1
|
)%
|
$
|
379,782
|
|
$
|
399,080
|
(4.8
|
)%
|
|
Energy Systems & Controls
|
|
155,331
|
|
|
154,737
|
0.4
|
|
|
300,973
|
|
|
303,339
|
(0.8
|
)
|
|
Medical & Scientific Imaging
|
|
207,957
|
|
|
150,921
|
37.8
|
|
|
408,401
|
|
|
313,732
|
30.2
|
|
|
RF Technology
|
|
223,179
|
|
|
215,270
|
3.7
|
|
|
431,989
|
|
|
419,787
|
2.9
|
|
|
Total
|
$
|
784,010
|
|
$
|
724,872
|
8.2
|
%
|
$
|
1,521,145
|
|
$
|
1,435,938
|
5.9
|
%
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Technology
|
$
|
101,844
|
|
$
|
102,770
|
(0.9
|
)%
|
$
|
195,155
|
|
$
|
201,433
|
(3.1
|
)%
|
|
Energy Systems & Controls
|
|
87,421
|
|
|
86,135
|
1.5
|
|
|
168,327
|
|
|
166,543
|
1.1
|
|
|
Medical & Scientific Imaging
|
|
138,416
|
|
|
96,212
|
43.9
|
|
|
273,285
|
|
|
202,398
|
35.0
|
|
|
RF Technology
|
|
117,826
|
|
|
112,491
|
4.7
|
|
|
230,316
|
|
|
218,427
|
5.4
|
|
|
Total
|
$
|
445,507
|
|
$
|
397,608
|
12.0
|
%
|
$
|
867,083
|
|
$
|
788,801
|
9.9
|
%
|
|
Operating profit*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Technology
|
$
|
50,580
|
|
$
|
62,076
|
(18.5
|
)%
|
$
|
103,525
|
|
$
|
119,583
|
(13.4
|
)%
|
|
Energy Systems & Controls
|
|
41,634
|
|
|
40,202
|
3.6
|
|
|
77,356
|
|
|
75,859
|
2.0
|
|
|
Medical & Scientific Imaging
|
|
47,537
|
|
|
35,679
|
33.2
|
|
|
107,465
|
|
|
79,041
|
36.0
|
|
|
RF Technology
|
|
60,729
|
|
|
58,161
|
4.4
|
|
|
117,359
|
|
|
108,514
|
8.2
|
|
|
Total
|
$
|
200,480
|
|
$
|
196,118
|
2.2
|
%
|
$
|
405,705
|
|
$
|
382,997
|
5.9
|
%
|
|
Long-lived assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Technology
|
$
|
46,565
|
|
$
|
43,096
|
8.0
|
%
|
|
|
|
|
|
|
|
|
Energy Systems & Controls
|
|
19,361
|
|
|
18,892
|
2.5
|
|
|
|
|
|
|
|
|
|
Medical & Scientific Imaging
|
|
42,926
|
|
|
44,314
|
(3.1
|
)
|
|
|
|
|
|
|
|
|
RF Technology
|
|
28,298
|
|
|
28,639
|
(1.2
|
)
|
|
|
|
|
|
|
|
|
Total
|
$
|
137,150
|
|
$
|
134,941
|
1.6
|
%
|
|
|
|
|
|
|
|
·
|
general economic conditions;
|
·
|
difficulty making acquisitions and successfully integrating acquired businesses;
|
·
|
any unforeseen liabilities associated with future acquisitions;
|
·
|
limitations on our business imposed by our indebtedness;
|
·
|
unfavorable changes in foreign exchange rates;
|
·
|
difficulties associated with exports;
|
·
|
risks and costs associated with our international sales and operations;
|
·
|
increased directors' and officers' liability and other insurance costs;
|
·
|
risk of rising interest rates;
|
·
|
product liability and insurance risks;
|
·
|
increased warranty exposure;
|
·
|
future competition;
|
·
|
the cyclical nature of some of our markets;
|
·
|
reduction of business with large customers;
|
·
|
risks associated with government contracts;
|
·
|
changes in the supply of, or price for, raw materials, parts and components;
|
·
|
environmental compliance costs and liabilities;
|
·
|
risks and costs associated with asbestos-related litigation;
|
·
|
potential write-offs of our substantial goodwill and other intangible assets;
|
·
|
our ability to successfully develop new products;
|
·
|
failure to protect our intellectual property;
|
·
|
the effect of, or change in, government regulations (including tax);
|
·
|
economic disruption caused by terrorist attacks, health crises or other unforeseen events; and
|
·
|
the factors discussed in other reports filed with the SEC.
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
|
||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Technology
|
|
$
|
197,543
|
|
$
|
203,944
|
|
$
|
379,782
|
|
$
|
399,080
|
|
Energy Systems & Controls
|
|
|
155,331
|
|
|
154,737
|
|
|
300,973
|
|
|
303,339
|
|
Medical & Scientific Imaging
|
|
|
207,957
|
|
|
150,921
|
|
|
408,401
|
|
|
313,732
|
|
RF Technology
|
|
|
223,179
|
|
|
215,270
|
|
|
431,989
|
|
|
419,787
|
|
Total
|
|
$
|
784,010
|
|
$
|
724,872
|
|
$
|
1,521,145
|
|
$
|
1,435,938
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Technology
|
|
|
51.6
|
%
|
|
50.4
|
%
|
|
51.4
|
%
|
|
50.5
|
%
|
Energy Systems & Controls
|
|
|
56.3
|
|
|
55.7
|
|
|
55.9
|
|
|
54.9
|
|
Medical & Scientific Imaging
|
|
|
66.6
|
|
|
63.7
|
|
|
66.9
|
|
|
64.5
|
|
RF Technology
|
|
|
52.8
|
|
|
52.3
|
|
|
53.3
|
|
|
52.0
|
|
Total
|
|
|
56.8
|
|
|
54.9
|
|
|
57.0
|
|
|
54.9
|
|
Selling, general & administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Technology
|
|
|
26.0
|
%
|
|
20.0
|
%
|
|
24.1
|
%
|
|
20.5
|
%
|
Energy Systems & Controls
|
|
|
29.5
|
|
|
29.7
|
|
|
30.2
|
|
|
29.9
|
|
Medical & Scientific Imaging
|
|
|
43.7
|
|
|
40.1
|
|
|
40.6
|
|
|
39.3
|
|
RF Technology
|
|
|
25.6
|
|
|
25.2
|
|
|
26.1
|
|
|
26.2
|
|
Total
|
|
|
31.3
|
|
|
27.8
|
|
|
30.3
|
|
|
28.3
|
|
Segment operating profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Technology
|
|
|
25.6
|
%
|
|
30.4
|
%
|
|
27.3
|
%
|
|
30.0
|
%
|
Energy Systems & Controls
|
|
|
26.8
|
|
|
26.0
|
|
|
25.7
|
|
|
25.0
|
|
Medical & Scientific Imaging
|
|
|
22.9
|
|
|
23.6
|
|
|
26.3
|
|
|
25.2
|
|
RF Technology
|
|
|
27.2
|
|
|
27.0
|
|
|
27.2
|
|
|
25.8
|
|
Total
|
|
|
25.6
|
|
|
27.1
|
|
|
26.7
|
|
|
26.7
|
|
Corporate administrative expenses
|
|
|
(2.6
|
)
|
|
(2.4
|
)
|
|
(2.7
|
)
|
|
(2.4
|
)
|
|
|
|
22.9
|
|
|
24.7
|
|
|
24.0
|
|
|
24.3
|
|
Interest expense
|
|
|
(2.9
|
)
|
|
(2.1
|
)
|
|
(2.8
|
)
|
|
(2.1
|
)
|
Other income/(expense)
|
|
|
0.3
|
|
|
(0.1
|
)
|
|
-
|
|
|
(0.1
|
)
|
Earnings before income taxes
|
|
|
20.4
|
|
|
22.5
|
|
|
21.2
|
|
|
22.1
|
|
Income taxes
|
|
|
(6.2
|
)
|
|
(6.7
|
)
|
|
(5.6
|
)
|
|
(6.6
|
)
|
Net earnings
|
|
|
14.2
|
%
|
|
15.8
|
%
|
|
15.5
|
%
|
|
15.5
|
%
|
|
|
Net orders booked for the
three months ended June 30, |
|
Order backlog as of June 30,
|
|
||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||
Industrial Technology
|
|
$
|
204,506
|
|
$
|
202,120
|
|
$
|
132,911
|
|
$
|
147,917
|
|
Energy Systems & Controls
|
|
|
159,955
|
|
|
157,775
|
|
|
125,471
|
|
|
128,018
|
|
Medical & Scientific Imaging
|
|
|
210,233
|
|
|
148,386
|
|
|
250,319
|
|
|
120,329
|
|
RF Technology
|
|
|
241,817
|
|
|
255,195
|
|
|
519,787
|
|
|
486,051
|
|
|
|
$
|
816,511
|
|
$
|
763,476
|
|
$
|
1,028,488
|
|
$
|
882,315
|
|
|
Three months ended
June 30, |
Six months ended
June 30, |
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Cash provided by/(used in):
|
||||||||||||||||
Operating activities
|
$
|
139.7
|
$
|
119.3
|
$
|
311.0
|
$
|
260.8
|
||||||||
Investing activities
|
(1,014.9
|
)
|
(28.1
|
)
|
(1,028.1
|
)
|
(56.9
|
)
|
||||||||
Financing activities
|
819.7
|
(17.4
|
)
|
730.9
|
(19.6
|
)
|
$500 million senior notes due 2013*
|
$
|
500,156
|
||
$400 million senior notes due 2017
|
400,000
|
|||
$800 million senior notes due 2018
|
800,000
|
|||
$500 million senior notes due 2019
|
500,000
|
|||
$500 million senior notes due 2022
|
500,000
|
|||
Senior Subordinated Convertible Notes
|
10,121
|
|||
Revolving Facility
|
42,000
|
|||
Other
|
5,946
|
|||
Total debt
|
2,758,223
|
|||
Less current portion
|
512,799
|
|||
Long-term debt
|
$
|
2,245,424
|
|
|
June 30,
2013 |
|
|
December 31,
2012
|
|||
Total debt
|
|
$
|
2,758,223
|
|
|
$
|
2,022,122
|
|
Cash
|
|
|
(374,571
|
)
|
|
|
(370,590
|
)
|
Net debt
|
|
|
2,383,652
|
|
|
|
1,651,532
|
|
Stockholders' equity
|
|
|
3,889,548
|
|
|
|
3,687,726
|
|
Total net capital
|
|
$
|
6,273,200
|
|
|
$
|
5,339,258
|
|
|
|
|
|
|
|
|
|
|
Net debt / Total net capital
|
|
|
38.0
|
%
|
|
|
30.9
|
%
|
4.1
|
Form of 2.05% Senior Notes due 2018, incorporated herein by reference to exhibit 4.1 to the Roper Industries, Inc. Current Report on Form 8-K filed June 6, 2013.
|
|
|
|
|
31.1
|
Rule 13a-14(a)/15d-14(a), Certification of the Chief Executive Officer, filed herewith.
|
|
|
|
|
31.2
|
Rule 13a-14(a)/15d-14(a), Certification of the Chief Financial Officer, filed herewith.
|
|
|
|
|
32.1
|
Section 1350 Certification of the Chief Executive and Chief Financial Officers, filed herewith.
|
|
|
|
|
101.INS
|
XBRL Instance Document, furnished herewith.
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document, furnished herewith.
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document, furnished herewith.
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document, furnished herewith.
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document, furnished herewith.
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document, furnished herewith.
|
/s/ Brian D. Jellison
|
|
Chairman of the Board, President,
|
August 7, 2013
|
Brian D. Jellison
|
|
and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
/s/ John Humphrey
|
|
Chief Financial Officer and
|
August 7, 2013
|
John Humphrey
|
|
Executive Vice President
|
|
|
|
(Principal Financial Officer)
|
|
/s/ Paul J. Soni
|
|
Vice President and Controller
|
August 7, 2013
|
Paul J. Soni
|
|
(Principal Accounting Officer)
|
|
4.1
|
Form of 2.05% Senior Notes due 2018, incorporated herein by reference to Exhibit 4.1 to the Roper Industries, Inc. Current Report on Form 8-K filed June 6, 2013.
|
|
|
|
|
31.1
|
Rule 13a-14(a)/15d-14(a), Certification of the Chief Executive Officer, filed herewith.
|
|
|
|
|
31.2
|
Rule 13a-14(a)/15d-14(a), Certification of the Chief Financial Officer, filed herewith.
|
|
|
|
|
32.1
|
Section 1350 Certification of the Chief Executive and Chief Financial Officers, filed herewith.
|
|
|
|
|
101.INS
|
XBRL Instance Document, furnished herewith.
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document, furnished herewith.
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document, furnished herewith.
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document, furnished herewith.
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document, furnished herewith.
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document, furnished herewith.
|
1. | I have reviewed this Quarterly Report on Form 10-Q of Roper Industries, Inc.; |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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. |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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. |
1.
|
The Report fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and
|
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: August 7, 2013
|
/s/ Brian D. Jellison
|
|
Brian D. Jellison
|
|
Chairman, President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
|
/s/ John Humphrey
|
|
John Humphrey
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
Business Segments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments |
Sales and operating profit by industry segment are set forth in the following table (dollars in thousands):
*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $20,734 and $17,334 for the three months ended June 30, 2013 and 2012, respectively, and $40,782 and $33,909 for the six months ended June 30, 2013 and 2012, respectively. |
Business Acquisitions
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions [Text Block] |
On May 1, 2013, Roper acquired 100% of the shares of Managed Health Care Associates, Inc. ("MHA"), in a $1.0 billion all-cash transaction. MHA is a leading provider of services and technologies to support the diverse and complex needs of alternate site health care providers who deliver services outside of an acute care hospital setting. The acquisition of MHA complements and expands the Company's medical platform. MHA is reported in the Medical & Scientific Imaging segment. During the six month period ended June 30, 2013, the Company expensed transaction costs of $2.3 million related to the acquisition as corporate general and administrative expenses, as incurred. The following table (in thousands) summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. The allocation of the purchase price is considered preliminary pending final intangible asset valuations and tax adjustments. Pro forma data has not been provided as the acquisition of MHA was not material to the Company's operations.
The fair value of current assets acquired also includes an adjustment of $35.0 million for administrative fees related to customer purchases that occurred prior to the acquisition date but not reported to MHA until after the acquisition date. In the ordinary course, these administrative fees are recorded as revenue when reported; however, GAAP accounting for business acquisitions requires the Company to estimate the amount of purchases occurring prior to the acquisition date and record the fair value of the administrative fees to be received from those purchases as an accounts receivable. The Company also recorded a fair value liability of $8.6 million included in current liabilities related to corresponding revenue share obligation owed to customers that generated the administrative fees. During the quarter ended June 30, 2013, a net of $18.5 million of these fair value adjustments was amortized, and at June 30, 2013 the receivable balance was $10.6 million, and the corresponding liability balance was $2.7 million. The Company expects the remaining net balance of $7.9 million to be amortized during the third quarter of 2013. The majority of the goodwill is not expected to be deductible for tax purposes. Of the $466 million of intangible assets acquired, $28 million was assigned to trade names that are not subject to amortization. The remaining $438 million of acquired intangible assets have a weighted-average useful life of approximately 20 years. The intangible assets that make up that amount include customer relationships of $433 million (20 year weighted-average useful life) and technology of $5 million (3 year weighted-average useful life). |
Fair Value of Financial Instruments (Tables)
|
6 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | Roper's debt at June 30, 2013 included $2.7 billion of fixed-rate senior notes with the following fair values (in millions):
|
Earnings Per Share (Policies)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Notes to Financial Statements [Abstract] | |
Earnings Per Share Policy | Basic earnings per share were calculated using net earnings and the weighted average number of shares of common stock outstanding during the respective period. Diluted earnings per share were calculated using net earnings and the weighted average number of shares of common stock and potential common stock outstanding during the respective period. Potentially dilutive common stock consisted of stock options and the premium over the conversion price on Roper's senior subordinated convertible notes based upon the trading price of Roper's common stock. The effects of potential common stock were determined using the treasury stock method. Weighted average shares outstanding are as shown below (in thousands): |
Business Acquisitions (Details) (USD $)
|
6 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2013
Mha Acquisition [Member]
|
May 01, 2013
Mha Acquisition [Member]
|
Jun. 30, 2013
Mha Acquisition [Member]
Customer Relationships [Member]
|
Jun. 30, 2013
Mha Acquisition [Member]
Unpatented Technology [Member]
|
|
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | May 01, 2013 | |||||
Payments to Acquire Businesses, Gross | $ 1,000,000,000 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||
Name of Acquired Entity | Managed Health Care Associates, Inc. ("MHA") | |||||
Description of Acquired Entity | MHA is a leading provider of services and technologies to support the diverse and complex needs of alternate site health care providers who deliver services outside of an acute care hospital setting. | |||||
Reason for Business Combination | The acquisition of MHA complements and expands the Company's medical platform. | |||||
Cost of Acquired Entity Transaction Costs | 2,300,000 | |||||
Business Combination, Admin Fee Receivables [Abstract] | ||||||
Business Combination, Acquired Receivables, Description | The fair value of current assets acquired also includes an adjustment of $35.0 million for administrative fees related to customer purchases that occurred prior to the acquisition date but not reported to MHA until after the acquisition date. In the ordinary course, these administrative fees are recorded as revenue when reported; however, GAAP accounting for business acquisitions requires the Company to estimate the amount of purchases occurring prior to the acquisition date and record the fair value of the administrative fees to be received from those purchases as an accounts receivable. The Company also recorded a fair value liability of $8.6 million included in current liabilities related to corresponding revenue share obligation owed to customers that generated the administrative fees. During the quarter ended June 30, 2013, a net of $18.5 million of these fair value adjustments was amortized, and at June 30, 2013 the receivable balance was $10.6 million, and the corresponding liability balance was $2.7 million. The Company expects the remaining net balance of $7.9 million to be amortized during the third quarter of 2013. | |||||
Business Combination, Liability Related to Acquired Receivables, Description | The Company also recorded a fair value liability of $8.6 million included in current liabilities related to corresponding revenue share obligation owed to customers that generated the administrative fees. | |||||
Business Combination, Acquired Receivables, Fair Value | 10,600,000 | 35,000,000 | ||||
Business Combination, Liability Related to Acquired Receivables, Fair Value | 2,700,000 | 8,600,000 | ||||
Business Combination, Acquired Receivables, Fair Value Net of Liability | 7,900,000 | |||||
Indefinite-lived Intangible Assets Acquired | 28,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 59,813,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 465,500,000 | |||||
Goodwill | 4,521,774,000 | 3,868,857,000 | 679,999,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 5,798,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 1,211,110,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 24,717,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 164,319,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 6,524,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | 1,015,550,000 | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 433,000,000 | $ 5,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | 3 years |
Earnings Per Share (Details)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Schedule Of Weighted Average Number Of Shares Outstanding Basic To Diluted | ||||
Basic shares outstanding | 99,089,000 | 97,460,000 | 98,983,000 | 97,249,000 |
Effect of potential common stock | ||||
Common stock awards | 882,000 | 1,129,000 | 884,000 | 1,172,000 |
Senior subordinated convertible notes | 191,000 | 1,030,000 | 204,000 | 1,079,000 |
Diluted shares outstanding | 100,162,000 | 99,619,000 | 100,071,000 | 99,500,000 |
Antidilutive stock options | 579,350 | 401,600 | 587,350 | 408,100 |
Contingencies (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Notes to Financial Statements [Abstract] | |
Standard Product Warranty Description | * During the second quarter of 2013, the Company identified a vendor-supplied component within a refrigeration system valve that did not meet its quality standards, and $9.1 million was expensed to cover the estimated cost of replacing the faulty components for customers. |
Warranty Accrual Activity Table | |
Balance | $ 9,755 |
Additions charged to costs and expenses | 14,935 |
Deductions | (5,900) |
Other | (243) |
Balance | $ 18,547 |
Debt (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Debt Instrument [Line Items] | |
Maturity Date | Jan. 15, 2034 |
Interest Rate (in hundredths) | 3.75% |
Senior Notes 2013 [Member]
|
|
Debt Instrument [Line Items] | |
Debt Instrument, Description | The Company has $500 million of senior notes maturing on August 15, 2013. It is the intent of the Company to use borrowings from its $1.5 billion revolving credit facility to repay these notes. |
Senior Notes due 2018 [Member]
|
|
Debt Instrument [Line Items] | |
Debt Instrument, Description | On June 6, 2013, the Company completed a public offering of $800 million aggregate principal amount of 2.05% senior unsecured notes due October 1, 2018. The notes were issued at 99.791% of their principal amount. The net proceeds were used to pay a portion of the outstanding revolver balance under Roper's revolving credit facility. The notes bear interest at a fixed rate of 2.05% per year, payable semi-annually in arrears on April 1 and October 1 of each year, beginning October 1, 2013. Roper may redeem some or all of these notes at any time or from time to time, at 100% of their principal amount, plus a make-whole premium based on a spread to U.S. Treasury securities.The notes are unsecured senior obligations of the Company and rank equally in right of payment with all of its existing and future unsecured and unsubordinated indebtedness. The notes are effectively subordinated to any existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. The notes are not guaranteed by any of Roper's subsidiaries and are effectively subordinated to all existing and future indebtedness and other liabilities of its subsidiaries. |
Issuance Date | Jun. 06, 2013 |
Principal amount (in millions) | $ 800 |
Maturity Date | Oct. 01, 2018 |
Periodic interest payments | semi-annually in arrears on April 1 and October 1 of each year |
Periodic interest payments, start | October 1, 2013 |
Interest Rate (in hundredths) | 2.05% |
Business Segments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and operating profit by business segment Table |
*Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $20,734 and $17,334 for the three months ended June 30, 2013 and 2012, respectively, and $40,782 and $33,909 for the six months ended June 30, 2013 and 2012, respectively. |
Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (USD $)
In Thousands |
Common stock
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Additional paid-in capital
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Retained earnings
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Accumulated other comprehensive earnings
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Treasury stock
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Total
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Beginning Balance at Dec. 31, 2012 | $ 1,006 | $ 1,158,001 | $ 2,489,858 | $ 58,537 | $ (19,676) | $ 3,687,726 |
Net earnings | 0 | 0 | 236,267 | 0 | 0 | 236,267 |
Stock option exercises | 3 | 14,408 | 0 | 0 | 0 | 14,411 |
Treasury stock sold | 0 | 1,144 | 0 | 0 | 106 | 1,250 |
Currency translation adjustments, net of tax | 0 | 0 | 0 | (42,121) | 0 | (42,121) |
Stock based compensation | 0 | 26,289 | 0 | 0 | 0 | 26,289 |
Restricted stock activity | 3 | (3,402) | 0 | 0 | 0 | (3,399) |
Stock option tax benefit, net of shortfalls | 0 | 5,557 | 0 | 0 | 0 | 5,557 |
Conversion of senior subordinated convertible notes | 0 | (3,728) | 0 | 0 | 0 | (3,728) |
Dividends declared | 0 | 0 | (32,704) | 0 | 0 | (32,704) |
Ending Balance at Jun. 30, 2013 | $ 1,012 | $ 1,198,269 | $ 2,693,421 | $ 16,416 | $ (19,570) | $ 3,889,548 |
Recent Accounting Pronouncements
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6 Months Ended | ||
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Jun. 30, 2013
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Notes to Financial Statements [Abstract] | |||
Recent Accounting Pronouncements |
The Financial Accounting Standards Board ("FASB") establishes changes to accounting principles under GAAP in the form of accounting standards updates ("ASUs") to the FASB's Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Any ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company's results of operations, financial position or cash flows. In July 2012, the FASB issued an amendment to accounting rules related to the testing of indefinite-lived intangibles. The new accounting rules permit an entity to first assess qualitative factors to determine if it is more likely than not that an indefinite-lived asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test prescribed under current accounting rules. Roper adopted this guidance on January 1, 2013. The guidance did not have an impact on the Company's results of operations, financial position or cash flows. |
Stock Based Compensation
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Jun. 30, 2013
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Notes to Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
The Roper Industries, Inc. Amended and Restated 2006 Incentive Plan is a stock based compensation plan used to grant incentive stock options, nonqualified stock options, restricted stock, stock appreciation rights or equivalent instruments to Roper's employees, officers and directors. Roper's stock purchase plan allows employees in the U.S. and Canada to designate up to 10% of eligible earnings to purchase Roper's common stock at a 5% discount to the average closing price of the stock at the beginning and end of a quarterly offering period. The common stock sold to the employees may be either treasury stock, stock purchased on the open market, or newly issued shares. The following table provides information regarding the Company's stock based compensation expense (in thousands):
Stock Options - In the six month period ended June 30, 2013, 520,850 options were granted with a weighted average fair value of $36.55 per option. During the same period in 2012, 412,100 options were granted with a weighted average fair value of $29.39 per option. All options were issued at grant date fair value, which is defined by the Plan as the closing price of Roper's common stock on the date of grant. Roper records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. Historical data is used to estimate the expected price volatility, the expected dividend yield, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The following weighted average assumptions were used to estimate the fair value of options granted during the current and prior year six month periods using the Black-Scholes option-pricing model:
Cash received from option exercises for the six months ended June 30, 2013 and 2012 was $14.4 million and $28.3 million, respectively. Restricted Stock Awards - During the six months ended June 30, 2013, 346,390 restricted stock awards were granted with a weighted average fair value of $116.45 per restricted share. During the same period in 2012, 290,307 awards were granted with a weighted average fair value of $94.05 per restricted share. All grants were issued at grant date fair value. During the six months ended June 30, 2013, 118,962 restricted awards vested with a weighted average grant date fair value of $62.39 per restricted share, at a weighted average vest date fair value of $120.52 per restricted share. Employee Stock Purchase Plan - During the six month periods ended June 30, 2013 and 2012, participants of the employee stock purchase plan purchased 10,712 and 12,329 shares, respectively, of Roper's common stock for total consideration of $1.25 million and $1.12 million, respectively. All shares were purchased from Roper's treasury shares. |
Earnings Per Share
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Jun. 30, 2013
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Notes to Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
Basic earnings per share were calculated using net earnings and the weighted average number of shares of common stock outstanding during the respective period. Diluted earnings per share were calculated using net earnings and the weighted average number of shares of common stock and potential common stock outstanding during the respective period. Potentially dilutive common stock consisted of stock options and the premium over the conversion price on Roper's senior subordinated convertible notes based upon the trading price of Roper's common stock. The effects of potential common stock were determined using the treasury stock method. Weighted average shares outstanding are as shown below (in thousands):
For the three and six month periods ended June 30, 2013 there were 579,350 and 587,350 outstanding stock options, respectively, that were not included in the determination of diluted earnings per share because doing so would have been antidilutive; this compares to 401,600 and 408,100 outstanding stock options, respectively, that would have been antidilutive for the three and six month periods ended June 30, 2012. |
Debt, Extinguishment (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
6 Months Ended |
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Jun. 30, 2013
|
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Extinguishment of Debt [Line Items] | |
Stated Interest Rate Percentage - Debt Instruments | 3.75% |
Maturity Date - Debt Instrument | Jan. 15, 2034 |
First Conversion Date | Jan. 15, 2009 |
Number of Notes Converted | 3,522 |
Cash Payments for Debt Conversions (in millions) | $ 5.6 |
Deferred Tax Liability (in millions) | 0.3 |
Per Note Conversion Price | $ 466 |
Excess above Principal Note Amount (in millions) | $ 23 |
3.75% Senior Subordinated Convertible Notes, Due 2034
|
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Extinguishment of Debt [Line Items] | |
If converted, issuance of common stock shares | 188,732 |