ý | 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 |
ENGLAND AND WALES | 98-1386780 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Interface House, Interface Business Park Bincknoll Lane Royal Wootton Bassett Swindon SN4 8SY United Kingdom | +1 (508) 236 3800 | |
(Address of Principal Executive Offices, including Zip Code) | (Registrant’s Telephone Number, Including Area Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
PART I | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 6. | |||
Item 1. | Financial Statements. |
March 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 828,266 | $ | 753,089 | |||
Accounts receivable, net of allowances of $13,446 and $12,947 as of March 31, 2018 and December 31, 2017, respectively | 627,749 | 556,541 | |||||
Inventories | 459,699 | 446,129 | |||||
Prepaid expenses and other current assets | 102,868 | 92,532 | |||||
Total current assets | 2,018,582 | 1,848,291 | |||||
Property, plant and equipment, net | 753,965 | 750,049 | |||||
Goodwill | 3,005,464 | 3,005,464 | |||||
Other intangible assets, net of accumulated amortization of $1,802,070 and $1,767,001 as of March 31, 2018 and December 31, 2017, respectively | 885,569 | 920,124 | |||||
Deferred income tax assets | 33,615 | 33,003 | |||||
Other assets | 85,681 | 84,594 | |||||
Total assets | $ | 6,782,876 | $ | 6,641,525 | |||
Liabilities and shareholders’ equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt, capital lease and other financing obligations | $ | 8,178 | $ | 15,720 | |||
Accounts payable | 350,999 | 322,671 | |||||
Income taxes payable | 22,313 | 31,544 | |||||
Accrued expenses and other current liabilities | 284,419 | 259,560 | |||||
Total current liabilities | 665,909 | 629,495 | |||||
Deferred income tax liabilities | 341,550 | 338,228 | |||||
Pension and other post-retirement benefit obligations | 40,007 | 40,055 | |||||
Capital lease and other financing obligations, less current portion | 27,735 | 28,739 | |||||
Long-term debt, net | 3,221,676 | 3,225,810 | |||||
Other long-term liabilities | 35,058 | 33,572 | |||||
Total liabilities | 4,331,935 | 4,295,899 | |||||
Commitments and contingencies (Note 10) | |||||||
Shareholders’ equity: | |||||||
Ordinary shares, €0.01 nominal value per share, 177,069 and 400,000 shares authorized, and 171,419 and 178,437 shares issued, as of March 31, 2018 and December 31, 2017, respectively | 2,199 | 2,289 | |||||
Treasury shares, at cost, 7,076 shares as of December 31, 2017 | — | (288,478 | ) | ||||
Additional paid-in capital | 1,668,583 | 1,663,367 | |||||
Retained earnings | 835,807 | 1,031,612 | |||||
Accumulated other comprehensive loss | (55,648 | ) | (63,164 | ) | |||
Total shareholders’ equity | 2,450,941 | 2,345,626 | |||||
Total liabilities and shareholders’ equity | $ | 6,782,876 | $ | 6,641,525 |
For the three months ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net revenue | $ | 886,293 | $ | 807,271 | |||
Operating costs and expenses: | |||||||
Cost of revenue | 582,457 | 532,419 | |||||
Research and development | 36,001 | 31,804 | |||||
Selling, general and administrative | 81,322 | 70,114 | |||||
Amortization of intangible assets | 35,069 | 40,258 | |||||
Restructuring and other charges, net | 3,766 | 11,050 | |||||
Total operating costs and expenses | 738,615 | 685,645 | |||||
Profit from operations | 147,678 | 121,626 | |||||
Interest expense, net | (38,429 | ) | (40,277 | ) | |||
Other, net | (4,633 | ) | 4,719 | ||||
Income before taxes | 104,616 | 86,068 | |||||
Provision for income taxes | 14,126 | 14,332 | |||||
Net income | $ | 90,490 | $ | 71,736 | |||
Basic net income per share: | $ | 0.53 | $ | 0.42 | |||
Diluted net income per share: | $ | 0.52 | $ | 0.42 |
For the three months ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net income | $ | 90,490 | $ | 71,736 | |||
Other comprehensive income, net of tax: | |||||||
Cash flow hedges | 6,539 | 132 | |||||
Defined benefit and retiree healthcare plans | 977 | 480 | |||||
Other comprehensive income | 7,516 | 612 | |||||
Comprehensive income | $ | 98,006 | $ | 72,348 |
For the three months ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 90,490 | $ | 71,736 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 27,855 | 28,795 | |||||
Amortization of debt issuance costs | 1,805 | 1,857 | |||||
Share-based compensation | 5,090 | 3,952 | |||||
Loss on debt financing | 2,350 | — | |||||
Amortization of intangible assets | 35,069 | 40,258 | |||||
Deferred income taxes | 636 | 3,400 | |||||
Unrealized loss on hedges and other | 8,819 | 2,120 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (71,208 | ) | (32,915 | ) | |||
Inventories | (13,570 | ) | (17,354 | ) | |||
Prepaid expenses and other current assets | (2,147 | ) | (9,643 | ) | |||
Accounts payable and accrued expenses | 47,780 | 26,704 | |||||
Income taxes payable | (9,231 | ) | 3,099 | ||||
Other | (483 | ) | (2,308 | ) | |||
Net cash provided by operating activities | 123,255 | 119,701 | |||||
Cash flows from investing activities: | |||||||
Additions to property, plant and equipment and capitalized software | (30,938 | ) | (33,059 | ) | |||
Proceeds from the sale of assets | — | 2,937 | |||||
Net cash used in investing activities | (30,938 | ) | (30,122 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from exercise of stock options and issuance of ordinary shares | 2,219 | 2,450 | |||||
Payments on debt | (11,325 | ) | (11,122 | ) | |||
Payments to repurchase ordinary shares | — | (498 | ) | ||||
Payments of debt issuance costs | (5,813 | ) | (137 | ) | |||
Other | (2,221 | ) | — | ||||
Net cash used in financing activities | (17,140 | ) | (9,307 | ) | |||
Net change in cash and cash equivalents | 75,177 | 80,272 | |||||
Cash and cash equivalents, beginning of period | 753,089 | 351,428 | |||||
Cash and cash equivalents, end of period | $ | 828,266 | $ | 431,700 |
March 31, 2018 | December 31, 2017 | ||||||
Finished goods | $ | 192,486 | $ | 195,089 | |||
Work-in-process | 94,446 | 92,678 | |||||
Raw materials | 172,767 | 158,362 | |||||
Inventories | $ | 459,699 | $ | 446,129 |
Cash Flow Hedges | Defined Benefit and Retiree Healthcare Plans | Accumulated Other Comprehensive Loss | ||||||||||
Balance as of December 31, 2017 | $ | (28,179 | ) | $ | (34,985 | ) | $ | (63,164 | ) | |||
Other comprehensive (loss)/income before reclassifications, net of tax | (3,275 | ) | 578 | (2,697 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 9,814 | 399 | 10,213 | |||||||||
Other comprehensive income | 6,539 | 977 | 7,516 | |||||||||
Balance as of March 31, 2018 | $ | (21,640 | ) | $ | (34,008 | ) | $ | (55,648 | ) |
Loss/(Gain) Reclassified from Accumulated Other Comprehensive Loss | Affected Line in Condensed Consolidated Statements of Operations | |||||||||
For the three months ended | ||||||||||
Component | March 31, 2018 | March 31, 2017 | ||||||||
Derivative instruments designated and qualifying as cash flow hedges: | ||||||||||
Foreign currency forward contracts | $ | 10,884 | $ | (5,385 | ) | Net revenue (1) | ||||
Foreign currency forward contracts | 826 | 6,568 | Cost of revenue (1) | |||||||
Foreign currency forward contracts | 1,376 | — | Other, net (1) | |||||||
Total, before taxes | 13,086 | 1,183 | Income before taxes | |||||||
Income tax effect | (3,272 | ) | (295 | ) | Provision for income taxes | |||||
Total, net of taxes | $ | 9,814 | $ | 888 | Net income | |||||
Defined benefit and retiree healthcare plans | $ | 224 | $ | 502 | Other, net (2) | |||||
Income tax effect | 175 | (22 | ) | Provision for income taxes | ||||||
Total, net of taxes | $ | 399 | $ | 480 | Net income |
(1) | See Note 12, "Derivative Instruments and Hedging Activities," for additional details on amounts to be reclassified in the future from Accumulated other comprehensive loss. |
(2) | See Note 8, "Pension and Other Post-Retirement Benefits," for additional details of net periodic benefit cost. |
Severance | ||||
Balance at December 31, 2017 | $ | 7,583 | ||
Charges, net of reversals | 3,604 | |||
Payments | (2,817 | ) | ||
Impact of changes in foreign currency exchange rates | 294 | |||
Balance at March 31, 2018 | $ | 8,664 |
Maturity Date | March 31, 2018 | December 31, 2017 | ||||||||
Term Loan | October 14, 2021 | $ | 917,794 | $ | 927,794 | |||||
4.875% Senior Notes | October 15, 2023 | 500,000 | 500,000 | |||||||
5.625% Senior Notes | November 1, 2024 | 400,000 | 400,000 | |||||||
5.0% Senior Notes | October 1, 2025 | 700,000 | 700,000 | |||||||
6.25% Senior Notes | February 15, 2026 | 750,000 | 750,000 | |||||||
Less: discount | (17,233 | ) | (14,424 | ) | ||||||
Less: deferred financing costs | (26,607 | ) | (27,758 | ) | ||||||
Less: current portion | (2,278 | ) | (9,802 | ) | ||||||
Long-term debt, net | $ | 3,221,676 | $ | 3,225,810 | ||||||
Capital lease and other financing obligations | $ | 33,635 | $ | 34,657 | ||||||
Less: current portion | (5,900 | ) | (5,918 | ) | ||||||
Capital lease and other financing obligations, less current portion | $ | 27,735 | $ | 28,739 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||
Defined Benefit | Retiree Healthcare | Defined Benefit | Total | ||||||||||||||||||||||||||||
March 31, | March 31, | March 31, | March 31, | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 19 | $ | 21 | $ | 831 | $ | 602 | $ | 850 | $ | 623 | |||||||||||||||
Interest cost | 327 | 420 | 70 | 80 | 342 | 249 | 739 | 749 | |||||||||||||||||||||||
Expected return on plan assets | (428 | ) | (553 | ) | — | — | (237 | ) | (221 | ) | (665 | ) | (774 | ) | |||||||||||||||||
Amortization of net loss | 300 | 285 | — | 8 | 25 | 71 | 325 | 364 | |||||||||||||||||||||||
Amortization of prior service credit | — | — | (334 | ) | (333 | ) | (1 | ) | (1 | ) | (335 | ) | (334 | ) | |||||||||||||||||
Loss on settlement | 530 | 472 | — | — | — | — | 530 | 472 | |||||||||||||||||||||||
Gain on curtailment | — | — | — | — | (296 | ) | — | (296 | ) | — | |||||||||||||||||||||
Net periodic benefit cost/(credit) | $ | 729 | $ | 624 | $ | (245 | ) | $ | (224 | ) | $ | 664 | $ | 700 | $ | 1,148 | $ | 1,100 |
For the three months ended March 31, 2017 | |||||||||||
As reported | ASU No. 2017-07 Adjustment | As Adjusted | |||||||||
Net revenue | $ | 807,271 | $ | — | $ | 807,271 | |||||
Operating costs and expenses: | |||||||||||
Cost of revenue | 532,726 | (307 | ) | 532,419 | |||||||
Research and development | 31,814 | (10 | ) | 31,804 | |||||||
Selling, general and administrative | 70,274 | (160 | ) | 70,114 | |||||||
Amortization of intangible assets | 40,258 | — | 40,258 | ||||||||
Restructuring and other charges, net | 11,050 | — | 11,050 | ||||||||
Total operating costs and expenses | 686,122 | (477 | ) | 685,645 | |||||||
Profit from operations | 121,149 | 477 | 121,626 | ||||||||
Interest expense, net | (40,277 | ) | — | (40,277 | ) | ||||||
Other, net | 5,196 | (477 | ) | 4,719 | |||||||
Income before taxes | $ | 86,068 | $ | — | $ | 86,068 |
For the three months ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Stock options | $ | 1,289 | $ | 1,425 | |||
Restricted securities | 3,801 | 2,527 | |||||
Share-based compensation expense | $ | 5,090 | $ | 3,952 |
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 12,590 | $ | — | $ | — | $ | 3,955 | $ | — | |||||||||||
Commodity forward contracts | — | 2,906 | — | — | 6,458 | — | |||||||||||||||||
Total | $ | — | $ | 15,496 | $ | — | $ | — | $ | 10,413 | $ | — | |||||||||||
Liabilities | |||||||||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 43,317 | $ | — | $ | — | $ | 40,969 | $ | — | |||||||||||
Commodity forward contracts | — | 2,067 | — | — | 1,104 | — | |||||||||||||||||
Total | $ | — | $ | 45,384 | $ | — | $ | — | $ | 42,073 | $ | — |
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
Carrying Value (1) | Fair Value | Carrying Value (1) | Fair Value | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Term Loan | $ | 917,794 | $ | — | $ | 923,530 | $ | — | $ | 927,794 | $ | — | $ | 930,114 | $ | — | |||||||||||||||
4.875% Senior Notes | $ | 500,000 | $ | — | $ | 500,000 | $ | — | $ | 500,000 | $ | — | $ | 521,875 | $ | — | |||||||||||||||
5.625% Senior Notes | $ | 400,000 | $ | — | $ | 416,000 | $ | — | $ | 400,000 | $ | — | $ | 439,000 | $ | — | |||||||||||||||
5.0% Senior Notes | $ | 700,000 | $ | — | $ | 691,250 | $ | — | $ | 700,000 | $ | — | $ | 741,125 | $ | — | |||||||||||||||
6.25% Senior Notes | $ | 750,000 | $ | — | $ | 785,625 | $ | — | $ | 750,000 | $ | — | $ | 813,750 | $ | — |
Notional (in millions) | Effective Date(s) | Maturity Date(s) | Index | Weighted- Average Strike Rate | Hedge Designation | |||||
52.0 EUR | March 27, 2018 | April 30, 2018 | Euro to U.S. Dollar Exchange Rate | 1.24 USD | Not designated | |||||
403.5 EUR | Various from May 2016 to March 2018 | Various from April 2018 to February 2020 | Euro to U.S. Dollar Exchange Rate | 1.17 USD | Designated | |||||
772.0 CNY | March 27, 2018 | April 27, 2018 | U.S. Dollar to Chinese Renminbi Exchange Rate | 6.31 CNY | Not designated | |||||
811.0 CNY | Various from October 2017 to January 2018 | Various from April to December 2018 | U.S. Dollar to Chinese Renminbi Exchange Rate | 6.71 CNY | Designated | |||||
375.0 JPY | March 28, 2018 | April 27, 2018 | U.S. Dollar to Japanese Yen Exchange Rate | 105.99 JPY | Not designated | |||||
617.6 JPY | January 25, 2018 | Various from April to December 2018 | U.S. Dollar to Japanese Yen Exchange Rate | 107.23 JPY | Designated | |||||
38,245.5 KRW | Various from May 2016 to March 2018 | Various from April 2018 to February 2020 | U.S. Dollar to Korean Won Exchange Rate | 1,115.52 KRW | Designated | |||||
9.9 MYR | Various from May to November 2016 | Various from April to October 2018 | U.S. Dollar to Malaysian Ringgit Exchange Rate | 4.25 MYR | Designated | |||||
252.0 MXN | March 27, 2018 | April 30, 2018 | U.S. Dollar to Mexican Peso Exchange Rate | 18.46 MXN | Not designated | |||||
2,443.3 MXN | Various from May 2016 to March 2018 | Various from April 2018 to February 2020 | U.S. Dollar to Mexican Peso Exchange Rate | 20.29 MXN | Designated | |||||
30.2 GBP | Various from May 2016 to March 2018 | Various from April 2018 to February 2020 | British Pound Sterling to U.S. Dollar Exchange Rate | 1.32 USD | Designated |
Commodity | Notional | Remaining Contracted Periods | Weighted-Average Strike Price Per Unit | |||
Silver | 1,091,710 troy oz. | April 2018 - February 2020 | $17.68 | |||
Gold | 12,410 troy oz. | April 2018 - February 2020 | $1,311.87 | |||
Nickel | 274,872 pounds | April 2018 - February 2020 | $5.18 | |||
Aluminum | 5,552,122 pounds | April 2018 - February 2020 | $0.92 | |||
Copper | 7,407,223 pounds | April 2018 - February 2020 | $2.87 | |||
Platinum | 7,807 troy oz. | April 2018 - February 2020 | $988.64 | |||
Palladium | 1,967 troy oz. | April 2018 - February 2020 | $877.97 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
Balance Sheet Location | March 31, 2018 | December 31, 2017 | Balance Sheet Location | March 31, 2018 | December 31, 2017 | ||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||
Foreign currency forward contracts | Prepaid expenses and other current assets | $ | 10,435 | $ | 3,576 | Accrued expenses and other current liabilities | $ | 37,636 | $ | 32,806 | |||||||||
Foreign currency forward contracts | Other assets | 1,697 | 373 | Other long-term liabilities | 5,329 | 6,881 | |||||||||||||
Total | $ | 12,132 | $ | 3,949 | $ | 42,965 | $ | 39,687 | |||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Commodity forward contracts | Prepaid expenses and other current assets | $ | 2,662 | $ | 5,403 | Accrued expenses and other current liabilities | $ | 1,600 | $ | 1,006 | |||||||||
Commodity forward contracts | Other assets | 244 | 1,055 | Other long-term liabilities | 467 | 98 | |||||||||||||
Foreign currency forward contracts | Prepaid expenses and other current assets | 458 | 6 | Accrued expenses and other current liabilities | 352 | 1,282 | |||||||||||||
Total | $ | 3,364 | $ | 6,464 | $ | 2,419 | $ | 2,386 |
Derivatives designated as hedging instruments | Amount of Deferred (Loss)/Gain Recognized in Other Comprehensive Loss | Location of Net (Loss)/Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income | Amount of Net (Loss)/Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income | |||||||||||||||
March 31, 2018 | March 31, 2017 | March 31, 2018 | March 31, 2017 | |||||||||||||||
Foreign currency forward contracts | $ | (17,838 | ) | $ | (13,311 | ) | Net revenue | $ | (10,884 | ) | $ | 5,385 | ||||||
Foreign currency forward contracts | $ | 13,471 | $ | 12,303 | Cost of revenue | $ | (826 | ) | $ | (6,568 | ) | |||||||
Foreign currency forward contracts | $ | — | $ | — | Other, net | $ | (1,376 | ) | $ | — |
Derivatives not designated as hedging instruments | Amount of (Loss)/Gain Recognized in Net Income | Location of (Loss)/Gain Recognized in Net Income | ||||||||
March 31, 2018 | March 31, 2017 | |||||||||
Commodity forward contracts | $ | (3,195 | ) | $ | 5,440 | Other, net | ||||
Foreign currency forward contracts | $ | (4,950 | ) | $ | (2,536 | ) | Other, net |
For the three months ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Currency remeasurement gain on net monetary assets | $ | 6,748 | $ | 2,191 | |||
Loss on foreign currency forward contracts | (6,326 | ) | (2,536 | ) | |||
(Loss)/gain on commodity forward contracts | (3,195 | ) | 5,440 | ||||
Loss on debt financing | (2,350 | ) | — | ||||
Net periodic benefit cost, excluding service component (1) | (298 | ) | (477 | ) | |||
Other | 788 | 101 | |||||
Other, net | $ | (4,633 | ) | $ | 4,719 |
(1) | On January 1, 2018, we adopted FASB ASU No. 2017-07, which requires the service cost component and other components of net periodic benefit cost to be presented separately on the consolidated statements of operations. Refer to Note 2, "New Accounting Standards," for additional details. |
For the three months ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net revenue: | |||||||
Performance Sensing | $ | 662,829 | $ | 600,143 | |||
Sensing Solutions | 223,464 | 207,128 | |||||
Total net revenue | $ | 886,293 | $ | 807,271 | |||
Segment profit (as defined above): | |||||||
Performance Sensing | $ | 169,410 | $ | 151,736 | |||
Sensing Solutions | 71,884 | 67,438 | |||||
Total segment profit | 241,294 | 219,174 | |||||
Corporate and other | (54,781 | ) | (46,240 | ) | |||
Amortization of intangible assets | (35,069 | ) | (40,258 | ) | |||
Restructuring and other charges, net | (3,766 | ) | (11,050 | ) | |||
Profit from operations | 147,678 | 121,626 | |||||
Interest expense, net | (38,429 | ) | (40,277 | ) | |||
Other, net | (4,633 | ) | 4,719 | ||||
Income before taxes | $ | 104,616 | $ | 86,068 |
For the three months ended | |||||
March 31, 2018 | March 31, 2017 | ||||
Basic weighted-average ordinary shares outstanding | 171,404 | 170,947 | |||
Dilutive effect of stock options | 926 | 567 | |||
Dilutive effect of unvested restricted securities | 526 | 391 | |||
Diluted weighted-average ordinary shares outstanding | 172,856 | 171,905 |
For the three months ended | |||||
March 31, 2018 | March 31, 2017 | ||||
Anti-dilutive shares excluded | 709 | 1,280 | |||
Contingently issuable shares excluded | 787 | 517 |
For the three months ended March 31, 2018 | ||||||||||||
Performance Sensing | Sensing Solutions | Total | ||||||||||
Automotive | $ | 529,793 | $ | 13,856 | $ | 543,649 | ||||||
HVOR | 133,036 | — | 133,036 | |||||||||
Appliance and HVAC | — | 54,317 | 54,317 | |||||||||
Industrial | — | 82,385 | 82,385 | |||||||||
Aerospace | — | 41,706 | 41,706 | |||||||||
Other | — | 31,200 | 31,200 | |||||||||
Total | $ | 662,829 | $ | 223,464 | $ | 886,293 |
• | instability and changes in the global markets, including regulatory, political, economic, and military matters; |
• | changes to current policies, such as trade tariffs, by the U.S. government; |
• | adverse conditions in the automotive industry; |
• | competition in our industry; |
• | pressure from customers to reduce prices; |
• | supplier interruption or non-performance limiting our access to manufactured components or raw materials; |
• | business disruptions due to natural disasters or other disasters outside our control; |
• | labor disruptions or increased labor costs; |
• | difficulties or failures to integrate businesses we acquire; |
• | disruptions from any future acquisitions dispositions, joint ventures, collaborative arrangements, or other investments that either require significant resources, result in significant unanticipated losses, costs, or liabilities, or a combination thereof; |
• | market acceptance of new product introductions and product innovations; |
• | changes to, or our inability to comply with, various regulations, including tax laws, import/export regulations, anti-bribery laws, environmental and safety laws, and other governmental regulations; |
• | foreign currency risks, changes in socio-economic conditions, or changes to monetary and fiscal policies, including as a result of the impending exit of the U.K. from the European Union; |
• | losses and costs as a result of intellectual property, product liability, warranty, and recall claims that may be brought against us; |
• | taxing authorities challenging our historical and future tax positions or our allocation of taxable income among our subsidiaries; |
• | our level of indebtedness, or our inability to meet debt service obligations or comply with the covenants contained in the credit agreement and indentures; and |
• | security breaches and other disruptions to our information technology infrastructure. |
For the three months ended | |||||||||||||
March 31, 2018 | March 31, 2017 | ||||||||||||
($ in millions) | Amount | Percent of Net Revenue | Amount | Percent of Net Revenue | |||||||||
Net revenue: | |||||||||||||
Performance Sensing | $ | 662.8 | 74.8 | % | $ | 600.1 | 74.3 | % | |||||
Sensing Solutions | 223.5 | 25.2 | 207.1 | 25.7 | |||||||||
Net revenue | 886.3 | 100.0 | 807.3 | 100.0 | |||||||||
Operating costs and expenses: | |||||||||||||
Cost of revenue | 582.5 | 65.7 | 532.4 | 66.0 | |||||||||
Research and development | 36.0 | 4.1 | 31.8 | 3.9 | |||||||||
Selling, general and administrative | 81.3 | 9.2 | 70.1 | 8.7 | |||||||||
Amortization of intangible assets | 35.1 | 4.0 | 40.3 | 5.0 | |||||||||
Restructuring and other charges, net | 3.8 | 0.4 | 11.1 | 1.4 | |||||||||
Total operating costs and expenses | 738.6 | 83.3 | 685.6 | 84.9 | |||||||||
Profit from operations | 147.7 | 16.7 | 121.6 | 15.1 | |||||||||
Interest expense, net | (38.4 | ) | (4.3 | ) | (40.3 | ) | (5.0 | ) | |||||
Other, net | (4.6 | ) | (0.5 | ) | 4.7 | 0.6 | |||||||
Income before taxes | 104.6 | 11.8 | 86.1 | 10.7 | |||||||||
Provision for income taxes | 14.1 | 1.6 | 14.3 | 1.8 | |||||||||
Net income | $ | 90.5 | 10.2 | % | $ | 71.7 | 8.9 | % |
For the three months ended | |||||||
(in millions) | March 31, 2018 | March 31, 2017 | |||||
Net cash provided by/(used in): | |||||||
Operating activities: | |||||||
Net income adjusted for non-cash items | $ | 172.1 | $ | 152.1 | |||
Changes in operating assets and liabilities, net of effects of acquisitions | (48.9 | ) | (32.4 | ) | |||
Operating activities | 123.3 | 119.7 | |||||
Investing activities | (30.9 | ) | (30.1 | ) | |||
Financing activities | (17.1 | ) | (9.3 | ) | |||
Net change | $ | 75.2 | $ | 80.3 |
(in thousands) | Maturity Date | March 31, 2018 | |||
Term Loan | October 14, 2021 | $ | 917,794 | ||
4.875% Senior Notes | October 15, 2023 | 500,000 | |||
5.625% Senior Notes | November 1, 2024 | 400,000 | |||
5.0% Senior Notes | October 1, 2025 | 700,000 | |||
6.25% Senior Notes | February 15, 2026 | 750,000 | |||
Less: discount | (17,233 | ) | |||
Less: deferred financing costs | (26,607 | ) | |||
Less: current portion | (2,278 | ) | |||
Long-term debt, net | $ | 3,221,676 | |||
Capital lease and other financing obligations | $ | 33,635 | |||
Less: current portion | (5,900 | ) | |||
Capital lease and other financing obligations, less current portion | $ | 27,735 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 3. | Defaults Upon Senior Securities. |
Item 6. | Exhibits. |
Exhibit No. | Description | |
2.1 | ||
3.1 | ||
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
31.1 | ||
31.2 | ||
32.1 | ||
101 | The following materials from the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to the Condensed Consolidated Financial Statements. | |
/s/ Martha Sullivan |
(Martha Sullivan) President and Chief Executive Officer (Principal Executive Officer) |
/s/ Paul Vasington |
(Paul Vasington) Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
1. | Duties |
1.1 | Mr. Chawla is appointed as managing director of the Company. He also holds the function “Senior Vice President”. |
1.2 | In addition, Mr. Chawla also acts as statutory representative (managing director) of Sensata Technologies Holland BV. |
1.3 | The Managing Director shall perform his duties in accordance with the law, the Articles of Association of the Company, the Management Rules of the Company and the directions of the competent Company bodies, in particular any instructions given by the shareholders’ meeting, as well as in accordance with this Managing Director Service Agreement, but otherwise independently and on his own authority. |
1.4 | The Managing Director reports to the Executive Vice President, Performance Sensing and Chief Technology Officer of Sensata Technologies Inc. or such other person designated by the Company’s shareholders’ meeting. |
1.5 | The managing Director represents the Company in court and out of court. Vis-à-vis the employees he shall take up the rights and obligations as employer on behalf of the Company in the sense of the employment and social law regulations. |
1.6 | The Company may at any time appoint additional managing directors, remove managing directors from office, change both the power of attorney and the power of management of all or of individual managing directors, or reorganize the internal allocation of responsibilities among the managing directors. |
1.7 | The Managing Director shall without any additional remuneration also accept positions or offices in companies affiliated with the Company (sec. 15 of the German Stock Companies Act (Aktiengesetz, AktG)). |
1.8 | With a view to such positions and services, the regulations of this Managing Director Service Agreement shall apply analogously, unless agreed otherwise in writing. Moreover, the Managing Director shall comply with the provisions under the Articles of Association of the respective company as well as its rules of procedure in case such exist and any instructions given by the shareholders’ meeting or any other competent company body as set out in the Articles of Association of the Company. |
1.9 | Upon the Company’s request, the Managing Director shall also accept positions or offices in associations and professional or other organizations of which the Company or an affiliated company is a member. The Managing Director shall transfer to the Company any remuneration or allowances he receives from third parties in this respect. Upon the Company’s request, the Managing Director shall resign from any position or office accepted and/or he shall do his utmost to ensure that the persons nominated by the Company shall succeed him in the positions or offices. |
1.10 | The Company reserves the right to assign to the Managing Director at any time any equivalent area of work or responsibility within the board of managers in consideration of his abilities and qualifications. |
2. | Business Actions Requiring Approval |
3. | Scope and Place of Service |
3.1 | The Managing Director shall devote all his working capacity, knowledge and skills into the services of the Company as well as of company/companies mentioned in ciph. 1.7, respectively affiliated companies of the Company, if appropriate. |
3.2 | He shall be able to schedule his working hours subject to business requirements. |
3.3 | The Managing Director’s place of service is the seat of the Company in Dusseldorf. |
4. | Side and other Activities |
5. | Remuneration |
5.1 | The Managing Director shall receive an annual fixed salary in the gross amount of EUR 244,444.44 payable in twelve (12) installments of EUR 20,370.37. |
5.2 | The fixed salary as stipulated in ciph. 5.1 hereinabove shall be annually - prior to the start of the new business year - reviewed and adjusted at the Company’s discretion by the shareholders’ meeting subject to the economic situation of the Company, the Managing Director’s performance as well as the regular depreciation of money. |
5.3 | The fixed salary as agreed in ciph. 5.1 also compensates for any activities of the Managing Director outside the usual working hours. |
5.4 | The Managing Director is entitled to participate in the Company’s Executive Bonus Plan, according to which the claim for the payment of a bonus depends on the Company’s and individual performance. It is intended to define a target bonus of 65% of the annual base gross salary stipulated in ciph. 5.1, vacation and Christmas allowance in ciph. 5.7 given a target achievement of 100%. |
5.5 | The Managing Director is eligible to participate in the Company’s Equity Incentive Plan, which will be specified by annual goal settings, with metrics and pay out scale provided. Details of the Company’s Equity Incentive Plan are outlined in the company policy “Long Term Incentive Compensation”. |
5.6 | The Company pays the employer’s social security contributions as far as the Managing Director is subject to the mandatory social security contributions. The Company grants the Managing Director - in case he agreed to a private health insurance - a contribution to the private health insurance in the amount of the employer’s contribution applicable in case of the statutory health insurance. The amount is limited to half of the total amount the Managing Director expends for the private health insurance. Moreover, the contribution shall be limited as applicable in accordance with the statutory health insurance and other employer’s contribution under the Social Security Code Vol. 5 (Funftes Sozialgesetzbuch). |
5.7 | In order to reward company loyalty (Betriebstreue) and as an incentive for future company loyalty, the Managing Director is entitled to vacation allowance amounting to 50% of his gross monthly fixed salary once a calendar year, which can be calculated based on ciph. 5.1., currently EUR 10,185.19 gross. The vacation allowance will be paid together with the June salary. |
5.8 | No fringe benefits or allowances shall be paid to the Managing Director other than expressly provided for under |
5.9 | Possible payments of bonuses, premiums, fringe benefits or any other allowances not provided expressly in this Managing Director Service Agreement shall be made voluntarily only. Even repeated payments of such benefits shall not confer any right or claim for continued payment thereof in future. |
5.10 | The Company reimburses the real expenses of the Managing Director for tuition of his children up to a total maximum of EUR 60,000.00 per school year for the school years 2016-2017, 2017-2018, and 2018-2019 in so far as these expenses can be proved by receipts and invoices. |
6. | Mobile Phone/Laptop |
7. | Remuneration in the Event of Incapacity |
7.1 | In each case of unforeseen absence from the Company, the Managing Director shall inform the Company thereof without undue delay as well as of the reason and the probable duration of his absence. The Managing Director shall simultaneously draw the Company’s attention to any pressing tasks which need to be dealt with urgently. |
7.2 | Should inability to work due to sickness or accident last longer than three calendar days, the Managing Director shall submit a medical certificate regarding his inability to work and stating the probable duration of such condition by no later than the working day following the third calendar day. The Company is entitled to demand submission of the certificate of inability to work at an earlier date. |
7.3 | In the case of temporary incapacity of the Managing Director to provide services due to illness or any other reason beyond his control, the Company shall continue to pay the Managing Director the remuneration hereunder for six (6) weeks, provided that this Managing Director Service Agreement does not end earlier. |
8. | Reimbursement of Expenses |
9. | Company Car |
9.1 | For business purposes, the Company shall make available to the Managing Director a Company car (Audi A7, 3.0TDII, gross monthly leasing rate EUR 1,239.11 or equivalent car class and leasing price, 40,000km/per year). The respective costs (tax, insurance, gas, service fees, etc.) shall be borne by the Company. |
9.2 | The Managing Director may use the company car for private purposes. He shall bear the taxes on the private use. |
9.3 | The Managing Director is obliged to take care of the company car and is responsible for the proper use of the company car. He is obliged to ensure that the company car is kept in an operational and roadworthy condition. Outstanding inspections are to be initiated immediately. |
9.4 | The supply of the company car to a third party within the scope of the right of private use is prohibited, This does not apply to the Managing Director’s wife and children living in the Managing Director’s home, provided they hold the relevant driver’s license. |
9.5 | The Company reserves the right to unilaterally revoke the right to use the company car for both business and private purposes at its reasonably exercised discretion for factual reasons with ten (10) days’ notice, at the earliest, however, upon expiry of the current month. Factual reasons are in particular: |
i. | irrevocable release from the obligation to perform work, particularly after termination of the Managing Director’s Service Agreement, |
ii. | inability to work due to illness for a period exceeding 6 weeks, |
iii. | suspension of the Managing Director’s Service Relationship for other reasons, |
iv. | suspension or withdrawal of the driving license or if a ban or driving a vehicle is imposed, |
v. | if the Managing Director undertakes a new position within the Company for the exercise of which a company car is not required. |
9.6 | In case of termination of this Managing Director Service Agreement, the Managing Director shall return the company car at the Company’s seat at the termination date in proper condition and with all documents and keys. Any right of retention is excluded. |
9.7 | Apart from and notwithstanding afore regulations, the provisions under the Company’s company car policy 10026 shall apply. |
10. | Company Pension |
11. | Group Accident Insurance |
12. | Travel Insurance |
13. | Vacation |
13.1 | The Managing Director is entitled to an annual vacation of 30 working days. |
13.2 | He shall schedule this vacation after consultation with any co-managing directors or the competent Company bodies taking the interests of the Company into consideration. |
13.3 | Vacation not taken within three months after the end of ta calendar year shall be forfeited without any right of compensation unless otherwise agreed in writing. |
14. | Secrecy |
14.1 | The Managing Director is obliged to maintain strict confidentiality with regard to all confidential matters, notably trade and business secrets of the Company and its associated companies in the sense of §18 Public Companies Act (Aktiengesetz, AktG) as well as any other commercial, financial or technical information relating to the business of the Company, of any associated company or of any contractual partner of the Company. He will not disclose these confidential matters to any third person by whatever way or medium. Furthermore, the |
14.2 | All documents relating to the Company or its associated companies, notably all notes, specifications for quotations and/or contracts, drawings, minutes, reports, correspondence and similar documents (as well as all copies or other reproductions thereof, including in electronic form), and items (e.g. mobile phone, laptop, identity cards, etc.) and data carriers/data with which the Managing Director has been provided for work purposes must be handled with care. They may be used, copied or removed from Company premises other than for business purposes only with the Company’s prior written consent. |
14.3 | The Managing Director shall, without prior solicitation upon termination of the Managing Director Contract or in the event of an irrevocable release from the working activities, and upon request during the term of the Managing Director Service Agreement, return to the Company all documents, items and data carriers in his possession which are specified in ciph. 14.2. The same applies analogously to nonphysical information and materials such as computer programs or other data. The Managing Director is not permitted to retain backup copies. |
14.4 | The Managing Director acknowledges that the items, documents and data carriers/data specified in ciph. 14.2 and 14.3 are in the sole property of the Company or its associated companies. The Managing Director has no right of retention. |
14.5 | The Managing Director shall, without prior solicitation upon termination of the Managing Director Service Agreement or in the event of an irrevocable release from the working activities, and upon request during the term of the Management Director Service Agreement, inform the Company about all passwords, write protect codes and access codes or similar codes to all computers, laptops, mobile phones and other devices of the Company used by the Managing Director for business purposes. The Managing Director has no right of retention. |
15. | Contractual Prohibition of Competition |
16. | Term and Termination of the Service Agreement and of the Office |
16.1 | This Managing Director Service Agreement shall become effective as of December 1, 2016 and is concluded for an unlimited term. |
16.2 | This Managing Director Service Agreement can be terminated by either Party by giving notice with a notice period of one (1) months with effect as of the end of any calendar month. |
16.3 | The termination of this Managing Director Service Agreement must be made in writing. |
16.4 | This Managing Director Service Agreement shall be terminated at the latest and automatically by the end of the month, in which the Managing Director will reach the statutory retirement age. If it is determined by decision of the pension insurance provider that the Managing Director is occupationally disabled or unfit for gainful services, the Managing Director’s service relationship shall end upon the expiration of the month in which the decision is delivered. |
16.5 | Upon termination of this Managing Director Service Agreement, regardless of the identity of the terminating Party, the Company shall be entitled to release the Managing Director from his duties with immediate effect revocable or irrevocable subject to continued payment of the fixed contractual remuneration. |
16.6 | The right to terminate without notice for good cause remains unaffected. |
16.7 | The Company may at any time remove the Managing Director form his office as Managing Director. |
16.8 | Upon removal from his Managing Director office, the Managing Director shall not be entitled nor, except for transitional activities, be required to render services or other activities for the Company. The other duties of the Parties, including loyalty obligations and the approval requirement with respect to side and other activities, remain unaffected. |
17. | Severance Pay on Termination, Condition for Severance Pay |
17.1 | In the event of termination of the Managing Director Service Agreement at the request of the Company to which the Managing Director has not given any reason, he shall receive a severance payment (“Severance Payment”) provided that the following condition is fulfilled: |
17.2 | If and to the extend the Managing Director would be entitled to any (statutory) severance pay and/or compensation with regard to his activities as statutory representative (managing director) of Sensata Technologies Holland BV, this (statutory) severance pay and/or compensation will be deemed to be incorporated in the potential Severance Payment according to ciph. 17.1. The Severance Payment under ciph. 17.1 will not be increased by additional payments. |
17.3 | The Managing Director will not be entitled to the Severance Payment according to ciph.17.1 in case the Managing Director Service Agreement ends due to (early) retirement. |
18. | Forfeiture of Claims, Statute of Limitations |
18.1 | All claims of the Parties arising under with the Managing Director Service Agreement shall be deemed forfeited unless they are asserted in accordance with §126 b BGB (e.g. letter, email, fax) vis-à-vis the other Party within three months after falling due. This shall not apply to liability for intent and liability based on criminal offense or tort. |
18.2 | The above also rules for all claims in connection with the Managing Director Service Agreement. |
18.3 | The regular limitation period for all claims by the Parties arising under or in connection with this employment shall be one year. The afore limitation period shall not apply to liability for intent and liability based on criminal offense or tort. The statutory regulations governing the expiry of the limitation period shall not be affected. |
19. | Miscellaneous |
19.1 | This Managing Director Service Agreement constitutes the entire understanding between the Parties. There are no ancillary agreements. |
19.2 | Changes and/or amendments to this Managing Director Service Agreement including this provision require written form to be valid. |
19.3 | Claims under and in connection with this Managing Director Service Agreement may not be brought in summary proceedings (Urkundsprozess). |
19.4 | Should any provision of this Managing Director Service Agreement and/or of amendments thereof or supplements be or become invalid in whole or in part, this shall not affect the validity of the remaining provisions of this. In such case, the Parties are obliged to negotiate a valid and reasonable substituting regulation, which most closely approximates the intended economic result of the invalid provision. The same shall apply for any gap in this Managing Director Service Agreement. |
19.5 | Place of performance and place of jurisdiction shall be determined in line with statutory provisions. |
19.6 | This Managing Director Service Agreement shall be governed by German law. |
19.7 | The German version of this Managing Director Service Agreement shall prevail. |
/s/ | Gerrit H. Ensing |
/s/ | Paul Chawla |
Amendment on the Managing Director Service Agreement dated January 26, 2017 | |
between | |
Sensata Technologies Germany GmbH, represented by the shareholders’ meeting, this in return represented by Mr. Gerrit H. Ensing, Johannstraße 37, 40476 Dusseldorf, Germany hereinafter referred to as the “Company “ - and Mr. Paul Chawla, Sonnenacker 54, 40489 Dusseldorf, Germany - hereinafter referred to as the "Managing Director"- - together referred to as "The Parties"- | |
It is agreed as follows: | |
§ 1 Duties | |
(a) | Changes regarding Nr. 1.2 of the Managing Director Service Agreement: The Parties agree that the Managing Director stays appointed as managing director of the Company. He also holds the function “Senior Vice President Performance Sensing Auto, Sensata Technologies, Inc.” but will not act any longer as statutory representative (managing director) of Sensata Technologies Holland BV (see Nr. 1.1 and Nr. 1.7 of his managing director agreement) and the Managing Director will have no longer an assignment agreement with Sensata Technologies Holland BV. |
(b) | Nr. 1.4 of the Managing Director Service Agreement is changed as follows: "The Managing Director reports to the President & Chief Executive Officer of Sensata Technologies Inc. or such other person designated by the Company’s shareholders’ meeting." |
§ 2 Remuneration | |
(a) | Nr. 5.1 of the Managing Director Service Agreement is changed as follows: "The Managing Director shall receive an annual fixed salary in the gross amount of EUR 354,556.00 payable in 13,5 instalments (this includes the Christmas allowances and the vacation allowances according to Nr. 5.7 of this Managing Director Agreement." |
(b) | Regarding Nr. 5.7 of the Managing Director Service Agreement it is clarified that the Christmas allowances is currently paid in the gross amount of EUR 26,263.41 and the vacation allowances in the gross amount of EUR 13,131.70. The conditions of payment remain unchanged. |
(c) | Nr. 5.3 of the Managing Director Service Agreement is changed as follows: "The fixed salary as agreed also compensates for any activities of the Managing Director outside the usual working hours." |
(d) | Nr. 5.4 of the Managing Director Service Agreement is changed as follows: "The Managing Director is eligible to participate in the Company Executive Bonus Plan with a target of 75% of the annual fixed salary. Actual payout will vary depending upon company and Senior Leadership Scorecard Performance. Further details are provided in the Executive Bonus Plan and will be determined by the annual goal setting, with metrics and pay out scale provided." |
(e) | Nr. 5.5 of the Managing Director Service Agreement is changed as follows: "The Managing Director is eligible to participate in the Company’s Equity Incentive Plan. The target long term incentive award 2018 will be $750,000.00. Actual award granted will vary depending on company and individual performance. All long-term incentive awards are subject to approval of the Board of the Directors of Sensata Technologies Holding, N.V." |
(f) | The Parties agree that the Managing Director is not eligible for any other bonus plan or long equity plan as mentioned in this amendment. |
§ 3 Assignment | |
The Assignment Agreement to assign the Managing Director to Sensata Technologies Holland BV, Jan Tinbergenstraat 80, 7559 SP Hengelo, The Netherlands is terminated with immediate effect. | |
§ 4 Final provisions, Language | |
(a) | The rest of the Managing Director Service Agreement remains unaffected. |
(b) | This amendment to the Managing Director Service Agreement constitutes the entire understanding between the Parties. There are no ancillary agreements. Changes and/or amendments to this amendment to the Managing Director Service Agreement including this provision require written form to be valid. This shall also apply to addition to the written form requirement itself. Individual agreements always take precedence and apply regardless of the written form requirement (section 305 b of the German Civil Code (BGB)). |
(c) | Should any provision of this amendment to the Managing Director Service Agreement be or become invalid in whole or in part, this shall not affect the validity of the remaining provisions of this. In such case, the Parties are obliged to negotiate a valid and reasonable substituting regulation, which most closely approximates the intended economic result of the invalid provision. The same shall apply for any gap in this amendment to the Managing Director Service Agreement. |
(d) | The German version of this amendment to the Managing Director Service Agreement shall prevail. The Parties agree that amendments to this agreement and further amendments to the Managing Director Service Agreement can be concluded in English as well. |
/s/ Martha Sullivan |
Martha Sullivan President and Chief Executive Officer |
/s/ Paul Vasington |
Paul Vasington Executive Vice President and Chief Financial Officer |
/s/ Martha Sullivan | ||
Martha Sullivan President and Chief Executive Officer | ||
Date: | April 24, 2018 | |
/s/ Paul Vasington | ||
Paul Vasington Executive Vice President and Chief Financial Officer | ||
Date: | April 24, 2018 |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Apr. 13, 2018 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Sensata Technologies Holding plc | |
Entity Central Index Key | 0001477294 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 171,572,465 |
Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands |
Mar. 31, 2018
€ / shares
|
Mar. 31, 2018
USD ($)
shares
|
Dec. 31, 2017
€ / shares
|
Dec. 31, 2017
USD ($)
shares
|
---|---|---|---|---|
Current assets: | ||||
Accounts receivable, allowances | $ | $ 13,446 | $ 12,947 | ||
Accumulated amortization | $ | $ 1,802,070 | $ 1,767,001 | ||
Shareholders’ equity: | ||||
Ordinary shares, nominal value per share (in euros per share) | € / shares | € 0.01 | € 0.01 | ||
Ordinary shares, shares authorized | 177,069,000 | 400,000,000 | ||
Ordinary shares, shares issued | 171,419,000 | 178,437,000 | ||
Treasury stock, shares | 0 | 7,076,000 |
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Income Statement [Abstract] | ||
Net revenue | $ 886,293 | $ 807,271 |
Operating costs and expenses: | ||
Cost of revenue | 582,457 | 532,419 |
Research and development | 36,001 | 31,804 |
Selling, general and administrative | 81,322 | 70,114 |
Amortization of intangible assets | 35,069 | 40,258 |
Restructuring and other charges, net | 3,766 | 11,050 |
Total operating costs and expenses | 738,615 | 685,645 |
Profit from operations | 147,678 | 121,626 |
Interest expense, net | (38,429) | (40,277) |
Other, net | (4,633) | 4,719 |
Income before taxes | 104,616 | 86,068 |
Provision for income taxes | 14,126 | 14,332 |
Net income | $ 90,490 | $ 71,736 |
Basic net income per share (in dollars per share) | $ 0.53 | $ 0.42 |
Diluted net income per share (in dollars per share) | $ 0.52 | $ 0.42 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Net income | $ 90,490 | $ 71,736 |
Other comprehensive income, net of tax: | ||
Cash flow hedges | 6,539 | 132 |
Defined benefit and retiree healthcare plans | 977 | 480 |
Other comprehensive income | 7,516 | 612 |
Comprehensive income | $ 98,006 | $ 72,348 |
Business Description and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | Business Description and Basis of Presentation Description of Business The accompanying unaudited condensed consolidated financial statements reflect the financial position, results of operations, comprehensive income, and cash flows of Sensata Technologies Holding plc ("Sensata plc"), the successor issuer to Sensata Technologies Holding N.V. ("Sensata N.V."), and its wholly-owned subsidiaries, collectively referred to as the "Company," "Sensata," "we," "our," or "us." On September 28, 2017, the board of directors of Sensata N.V. unanimously approved a plan to change our location of incorporation from the Netherlands to the United Kingdom (the "U.K."). To effect this change, on February 16, 2018, the shareholders of Sensata N.V. approved a cross-border merger between Sensata N.V. and Sensata plc, a newly formed, public limited company incorporated under the laws of England and Wales, with Sensata plc being the surviving entity (the "Merger"). We received approval of the transaction by the U.K. High Court of Justice, and the Merger was completed on March 28, 2018, on which date Sensata plc became the publicly-traded parent of the subsidiary companies that were previously controlled by Sensata N.V., with no changes made to the business being conducted by us prior to the Merger. Due to the fact that the Merger was a business combination between entities under common control in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 805, Business Combinations, the assets and liabilities exchanged were accounted for at their carrying values. Sensata plc conducts its operations through subsidiary companies that operate business and product development centers primarily in the United States (the "U.S."), the Netherlands, Belgium, Bulgaria, China, Germany, Japan, South Korea, and the U.K.; and manufacturing operations primarily in China, Malaysia, Mexico, Bulgaria, France, Germany, the U.K., and the U.S. We organize our operations into two segments, Performance Sensing and Sensing Solutions. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q. Accordingly, these interim financial statements do not include all of the information and note disclosures required by U.S. GAAP for complete financial statements. The accompanying financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year, nor were the results of operations of the comparable periods in 2017 necessarily representative of those actually experienced for the full year 2017. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. All intercompany balances and transactions have been eliminated. All U.S. dollar and share amounts presented, except per share amounts, are stated in thousands, unless otherwise indicated. Certain reclassifications have been made to prior periods to conform to current period presentation. |
New Accounting Standards |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Standards | New Accounting Standards Adopted in the current period In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which modifies how all entities recognize revenue, and consolidates into one ASC Topic (FASB ASC Topic 606, Revenue from Contracts with Customers) the guidance found in FASB ASC Topic 605, Revenue Recognition, and various other revenue accounting standards for specialized transactions and industries. FASB ASC Topic 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted FASB ASC Topic 606 on January 1, 2018 using the modified retrospective transition method. Refer to Note 16, "Revenue Recognition," for additional details on this implementation and the required disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The new recognition and measurement guidance requires entities to measure equity investments (except those accounted for under the equity method, those that result in consolidation of the investee, and certain other investments) either at fair value, with changes to fair value recognized in net income, or, in certain instances, by use of a measurement alternative. Under the measurement alternative, such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. We adopted this guidance on January 1, 2018, which resulted in no impact on our consolidated financial position or results of operations. Refer to Note 11, "Fair Value Measures," for further detail regarding the application of the measurement alternative to our $50.0 million equity investment in Series B Preferred Stock of Quanergy, Inc ("Quanergy"), which does not have a readily determinable fair value. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires a change in the presentation of net periodic benefit cost on the consolidated statements of operations. Specifically, entities must present the service cost component of net periodic benefit cost in the same financial statement line item(s) as other compensation costs arising from services rendered by the related employees during the period, whereas the non–service components of net periodic benefit cost must be presented separately from the financial statement line item(s) that include service cost and outside of operating income. We adopted this guidance on January 1, 2018 and, as a result, we present the service cost component of net periodic benefit cost in the Cost of revenue, Research and development, and Selling, general, and administrative ("SG&A") expense line items, and we present the non–service components of net periodic benefit cost in Other, net. Refer to Note 13, "Other, net," for the total other components of net periodic benefit cost. All prior period amounts have been recast to reflect the revised presentation, and the adjustments made to revise the presentation of our prior year condensed consolidated statement of operations are presented in Note 8, "Pension and Other Post–Retirement Benefits." To be adopted in a future period In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which establishes new accounting and disclosure requirements for leases. FASB ASU No. 2016-02 requires lessees to classify most leases as either finance or operating leases and to initially recognize a lease liability and right-of-use asset. Entities may elect to account for certain short-term leases (with a term of one year or less) using a method similar to the current operating lease model. The statements of operations will include, for finance leases, separate recognition of interest on the lease liability and amortization of the right-of-use asset and for operating leases, a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. At December 31, 2017, we were contractually obligated to make future payments of $68.6 million under our operating lease obligations in existence as of that date, primarily related to long-term facility leases. While we are in the early stages of our implementation process for FASB ASU No. 2016-02 and have not yet determined its impact on our consolidated financial position or results of operations, these leases would potentially be required to be presented on the balance sheet in accordance with the requirements of FASB ASU No. 2016-02, which is effective for annual reporting periods beginning after December 15, 2018, including interim periods therein, with early adoption permitted. FASB ASU No. 2016-02 must be applied using a modified retrospective approach, which requires the recognition and measurement of leases at the beginning of the earliest period presented, with certain practical expedients available. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), which changes both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results, in order to better align an entity’s risk management activities and financial reporting for hedging relationships. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. FASB ASU No. 2017-12 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods, with early adoption permitted. The adoption of FASB ASU No. 2017-12 will not have a material impact on our consolidated financial position or results of operations. Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which modifies how all entities recognize revenue, and consolidates into one Accounting Standards Codification Topic (FASB ASC Topic 606, Revenue from Contracts with Customers) the guidance found in FASB ASC Topic 605, Revenue Recognition, and various other revenue accounting standards for specialized transactions and industries. FASB ASC Topic 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. We adopted FASB ASC Topic 606 on January 1, 2018 using the modified retrospective transition method. For the three months ended March 31, 2018 and 2017, the vast majority of our revenue was derived from the sale of tangible products for which we recognize revenue at a point in time. The contracts that relate to these product shipments are purchase orders that have firm purchase commitments generally only for a short period of time. As a result, the adoption of FASB ASC Topic 606 did not have a material effect on our financial statements or results of operations, and no cumulative catch-up adjustment was required. We used the related practical expedients that allow us to not disclose the transaction price allocated to remaining unsatisfied obligations and an explanation of when we expect to recognize the related revenue. In adopting FASB ASC Topic 606, we applied the new guidance only to contracts that were not completed on January 1, 2018. The following table presents revenue by segment, further disaggregated by end-market:
Performance Obligations Our revenue and related cost of revenue are primarily the result of promises to transfer products to our customers. Revenue is recognized when our performance obligation has been met, which is generally when the product is shipped from our warehouse or, in limited instances, when it is received by the customer, depending on the specific terms of the arrangement. Product sales are recorded net of value-added tax and similar taxes. Amounts billed to our customers for shipping and handling are recorded in revenue. Shipping and handling costs are included in cost of revenue. Sales to customers generally include a right of return for defective or non-conforming product. Sales returns have not historically been significant in relation to our net revenue and have been within our estimates. Product sales are recorded net of variable consideration, such as trade discounts (including volume and early payment incentives) and sales returns. Our standard terms of sale provide our customers with a warranty against faulty workmanship and the use of defective materials, which, depending on the product, generally exists for a period of twelve to eighteen months after the date we ship the product to our customer or for a period of twelve months after the date the customer resells our product, whichever comes first. We do not offer separately priced extended warranty or product maintenance contracts. Our liability associated with this warranty is, at our option, to repair the product, replace the product, or provide the customer with a credit. We also sell products to customers under negotiated agreements or where we have accepted the customer’s terms of purchase. In these instances, we may provide additional warranties for longer durations, consistent with differing end market practices, and where our liability is not limited. In addition, many sales take place in situations where commercial or civil codes, or other laws, would imply various warranties and restrict limitations on liability. Payment for products is due in accordance with the terms agreed upon with customers, generally within 90 days of shipment to the customer. Accordingly, our contracts with customers do not include a significant financing component. Contract Assets and Liabilities We generally invoice the customer and recognize revenue once we have satisfied our performance obligation. Accordingly, our contract assets comprise accounts receivable. In certain cases, we receive payment by customers related to our promise to satisfy performance obligations in the future. Such payments are recorded as contract liabilities, which are not material. |
Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The components of inventories as of March 31, 2018 and December 31, 2017 were as follows:
|
Shareholders' Equity |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders' Equity Prior to the Merger, Sensata NV’s articles of association authorized it to issue up to 400.0 million ordinary shares. However, shareholder approval was required to issue any amount of ordinary shares greater than those issued and outstanding or reserved under its equity plans. Entities incorporated under the laws of England and Wales are limited in the number of shares they can issue to those shares that have been authorized for "allotment" by their shareholders. In connection with the Merger, our board of directors did not ask shareholders to approve an allotment of ordinary shares greater than the total ordinary shares issued and outstanding plus ordinary shares available to be issued under our equity plans, which resulted in an allotment of 177.1 million ordinary shares. Treasury Shares Prior to the Merger, ordinary shares repurchased by us were recorded at cost, as treasury shares, and resulted in a reduction of shareholders' equity. We reissued treasury shares as part of our share-based compensation programs. The cost of reissued shares was determined using the first-in, first-out method. During the three months ended March 31, 2018, prior to completion of the Merger, we reissued 0.1 million treasury shares, and as a result, we recognized a reduction in Retained earnings of $0.2 million. In connection with the Merger, and in accordance with U.K. requirements, all then outstanding treasury shares were cancelled. Accordingly, we derecognized the total purchase price of these treasury shares, we recognized a reduction to ordinary shares at an amount equal to the total par value of such shares, and we recognized a reduction to Retained earnings at an amount equal to the excess of the total repurchase price over the total par value of the then outstanding treasury shares, or $286.1 million. Accumulated Other Comprehensive Loss The following is a roll forward of the components of Accumulated other comprehensive loss for the three months ended March 31, 2018:
The details of the amounts reclassified from Accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 are as follows:
|
Restructuring and Other Charges, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Restructuring and Other Charges, Net | Restructuring and Other Charges, Net Restructuring and other charges, net for the three months ended March 31, 2018 and 2017 were $3.8 million and $11.1 million, respectively. Restructuring and other charges, net for the three months ended March 31, 2018 consisted primarily of $3.5 million of severance charges related to limited workforce reductions in manufacturing, engineering, and administrative positions as well as the transfer of certain positions to more cost-effective locations. The expected payback period for these actions is approximately two years, and they are expected to generate incremental pre-tax savings of approximately $3 million on an annual basis once fully implemented. Restructuring and other charges, net for the three months ended March 31, 2017 consisted primarily of severance charges recorded in connection with the closing of our facility in Minden, Germany that was part of the acquisition of certain subsidiaries of Custom Sensors & Technologies Ltd. ("CST") and severance charges related to the termination of a limited number of employees. Changes to the severance portion of our restructuring liability during the three months ended March 31, 2018 were as follows:
|
Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Our long-term debt and capital lease and other financing obligations as of March 31, 2018 and December 31, 2017 consisted of the following:
In connection with the Merger, we paid $5.8 million of creditor fees and related third party costs in order to obtain consents to the transaction from our existing lenders. We applied the provisions of FASB ASC Subtopic 470-50, Modifications and Extinguishments, in accounting for the amounts paid. As a result, we recorded $3.5 million as an adjustment to the carrying amount of Long term debt, net and a loss of $2.4 million to Other, net. As of March 31, 2018, there was $415.3 million of availability under our $420.0 million revolving credit facility, net of $4.7 million in letters of credit. Outstanding letters of credit are issued primarily for the benefit of certain operating activities. As of March 31, 2018, no amounts had been drawn against these outstanding letters of credit. Accrued Interest Accrued interest associated with our outstanding debt is included as a component of Accrued expenses and other current liabilities in the condensed consolidated balance sheets. As of March 31, 2018 and December 31, 2017, accrued interest totaled $45.8 million and $36.9 million, respectively. |
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision for income taxes for the three months ended March 31, 2018 and 2017 totaled $14.1 million and $14.3 million, respectively. The Provision for income taxes consists of current tax expense, which relates primarily to our profitable operations in non-U.S. tax jurisdictions, and deferred tax expense, which relates to adjustments in book-to-tax basis differences primarily due to the step-up in fair value of fixed and intangible assets, including goodwill, acquired in connection with business combination transactions, and the utilization of net operating losses. On December 22, 2017, President Trump signed into U.S. law the Tax Cuts and Jobs Act of 2017 ("Tax Reform" or "the Act"). FASB ASC Topic 740, Accounting for Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017. Given the significance of the legislation, the U.S. Securities and Exchange Commission (the "SEC") staff issued Staff Accounting Bulletin No.118 ("SAB 118"), which allows registrants to record provisional amounts during a one-year "measurement period" similar to that used when accounting for business combinations. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared, and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared, or analyzed. As of March 31, 2018, we have not recorded incremental accounting adjustments related to the Act as we continue to consider interpretations of its application. |
Pension and Other Post-Retirement Benefits |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-Retirement Benefits | Pension and Other Post-Retirement Benefits We provide various pension and other post-retirement benefit plans for current and former employees, including defined benefit, defined contribution, and retiree healthcare benefit plans. The components of net periodic benefit cost/(credit) associated with our defined benefit and retiree healthcare plans for the three months ended March 31, 2018 and 2017 were as follows:
On January 1, 2018, we adopted the guidance in FASB ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Refer to Note 2, "New Accounting Standards," for further discussion. As a result of this adoption, components of net periodic benefit cost other than service cost in the three months ended March 31, 2017 were reclassified from various operating cost and expense line items to Other, net. The table below presents the effects of this adjustment.
|
Share-Based Payment Plans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Plans | Share-Based Payment Plans Share-Based Compensation Expense The table below presents non-cash compensation expense related to our equity awards, which is recognized within SG&A expense in the condensed consolidated statements of operations, during the identified periods:
Equity Awards We grant options and restricted stock units ("RSUs") for which vesting is subject only to continued employment and the passage of time. In addition, we grant performance–based options and performance–based restricted stock units ("PRSUs") for which vesting also depends on the attainment of certain performance criteria. During the three months ended March 31, 2018, we granted 11 RSUs to various executives and employees with a weighted average grant date fair value of $55.81 that will vest between January and February 2021. We did not grant any other equity awards during the three months ended March 31, 2018. Option Exercises During the three months ended March 31, 2018, 58 stock options were exercised, all of which were settled with shares reissued from treasury. |
Commitments and Contingencies |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings and Claims We are regularly involved in a number of claims and litigation matters in the ordinary course of business. Most of our litigation matters are third-party claims for property damage allegedly caused by our products but some involve allegations of personal injury or wrongful death. Although it is not feasible to predict the outcome of these matters, based upon our experience and current information known to us, we do not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on our results of operations, financial position, or cash flows. |
Fair Value Measures |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measures | Fair Value Measures Our assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy in accordance with FASB ASC Topic 820, Fair Value Measurement. Measured on a Recurring Basis The fair values of our assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 are as follows:
Measured on a Nonrecurring Basis We evaluated our goodwill and other indefinite-lived intangible assets for impairment as of October 1, 2017 and determined that they were not impaired. As of March 31, 2018, no events or changes in circumstances occurred that would have triggered the need for an additional impairment review of these assets. We periodically re-evaluate the carrying values and estimated useful lives of long-lived assets whenever events or changes in circumstances indicate that the carrying values of these assets may not be recoverable. On January 1, 2018, we adopted FASB ASU No. 2016-01, which requires that equity investments (except those accounted for under the equity method, those that result in consolidation of the investee, and certain other investments) be measured at either fair value, with changes to fair value recognized in net income, or, in certain instances, by use of a measurement alternative. Under the measurement alternative, such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. As it relates to our $50.0 million equity investment in Quanergy, we elected to use the measurement alternative. During the quarter, we noted no observable price changes in orderly transactions for an identical or similar investment of the same issuer, nor did we note any indicators of impairment that would require us to measure the fair value of the asset. Financial Instruments Not Recorded at Fair Value The following table presents the carrying values and fair values of financial instruments not recorded at fair value in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017:
(1) Carrying value excludes discounts and deferred financing costs. The fair values of the Term Loan and senior notes are primarily determined using observable prices in markets where these instruments are generally not traded on a daily basis. Cash and cash equivalents, accounts receivable, and accounts payable are carried at their cost, which approximates fair value, because of their short-term nature. |
Derivative Instruments and Hedging Activities |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Hedges of Foreign Currency Risk We are exposed to fluctuations in various foreign currencies against our functional currency, the U.S. dollar. We use foreign currency forward agreements to manage this exposure. We currently have outstanding foreign currency forward contracts that qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales and certain manufacturing costs. We also have outstanding foreign currency forward contracts, which are not designated for hedge accounting treatment in accordance with FASB ASC Topic 815, Derivatives and Hedging, that are intended to preserve the economic value of foreign currency denominated monetary assets and liabilities. For the three months ended March 31, 2018 and 2017, amounts excluded from the assessment of effectiveness and the ineffective portion of the changes in the fair value of our foreign currency forward agreements that are designated as cash flows were not material. As of March 31, 2018, we estimate that $27.4 million of net losses will be reclassified from Accumulated other comprehensive loss to earnings during the twelve-month period ending March 31, 2019. As of March 31, 2018, we had the following outstanding foreign currency forward contracts:
The notional amounts above represent the total quantities we have outstanding over the remaining contracted periods. Hedges of Commodity Risk Our objective in using commodity forward contracts is to offset a portion of our exposure to the potential change in prices associated with certain commodities used in the manufacturing of our products, including silver, gold, nickel, aluminum, copper, platinum, and palladium. The terms of these forward contracts fix the price at a future date for various notional amounts associated with these commodities. These instruments are not designated for hedge accounting treatment in accordance with FASB ASC Topic 815. We had the following outstanding commodity forward contracts, none of which were designated as derivatives in qualifying hedging relationships, as of March 31, 2018:
The notional amounts above represent the total quantities we have outstanding over the remaining contracted periods. Financial Instrument Presentation The following table presents the fair values of our derivative financial instruments and their classification in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017:
These fair value measurements are all categorized within Level 2 of the fair value hierarchy. The following tables present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months ended March 31, 2018 and 2017:
Credit Risk Related Contingent Features We have agreements with certain of our derivative counterparties that contain a provision whereby if we default on our indebtedness, and where repayment of the indebtedness has been accelerated by the lender, then we could also be declared in default on our derivative obligations. As of March 31, 2018, the termination value of outstanding derivatives in a liability position, excluding any adjustment for non-performance risk, was $45.6 million. As of March 31, 2018, we have not posted any cash collateral related to these agreements. If we breach any of the default provisions on any of our indebtedness, as described above, we could be required to settle our obligations under the derivative agreements at their termination values. |
Other, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, Net | Other, Net Other, net consisted of the following for the three months ended March 31, 2018 and 2017:
|
Segment Reporting |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting We organize our business into two reportable segments, Performance Sensing and Sensing Solutions, each of which is also an operating segment. Our operating segments are businesses that we manage as components of an enterprise for which separate financial information is evaluated regularly by our chief operating decision maker in deciding how to allocate resources and assess performance. An operating segment’s performance is primarily evaluated based on Segment profit, which excludes amortization expense, Restructuring and other charges, net, and certain corporate costs/credits not associated with the operations of the segment, including share-based compensation expense and a portion of depreciation expense associated with assets recorded in connection with acquisitions. In addition, an operating segment’s performance excludes results from discontinued operations, if any. Corporate costs excluded from an operating segment’s performance are separately stated below and also include costs that are related to functional areas, such as finance, information technology, legal, and human resources. We believe that Segment profit, as defined above, is an appropriate measure for evaluating the operating performance of our segments. However, this measure should be considered in addition to, and not as a substitute for, or superior to, profit from operations or other measures of financial performance prepared in accordance with U.S. GAAP. The accounting policies of each of our reporting segments are materially consistent with those in the summary of significant accounting policies as described in Note 2, "Significant Accounting Policies," included in our Annual Report on Form 10-K for the year ended December 31, 2017. The following table presents Net revenue and Segment profit for the reported segments and other operating results not allocated to the reported segments for the three months ended March 31, 2018 and 2017:
|
Net Income per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Share | Net Income per Share Basic and diluted net income per share are calculated by dividing Net income by the number of basic and diluted weighted-average ordinary shares outstanding during the period. For the three months ended March 31, 2018 and 2017, the weighted-average ordinary shares outstanding for basic and diluted net income per share were as follows:
Net income and net income per share are presented in the condensed consolidated statements of operations. Certain potential ordinary shares were excluded from our calculation of diluted weighted-average ordinary shares outstanding because either they would have had an anti–dilutive effect on net income per share, or they related to equity awards that were contingently issuable for which the contingency had not been satisfied. These potential ordinary shares are as follows:
|
Revenue Recognition |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | New Accounting Standards Adopted in the current period In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which modifies how all entities recognize revenue, and consolidates into one ASC Topic (FASB ASC Topic 606, Revenue from Contracts with Customers) the guidance found in FASB ASC Topic 605, Revenue Recognition, and various other revenue accounting standards for specialized transactions and industries. FASB ASC Topic 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted FASB ASC Topic 606 on January 1, 2018 using the modified retrospective transition method. Refer to Note 16, "Revenue Recognition," for additional details on this implementation and the required disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The new recognition and measurement guidance requires entities to measure equity investments (except those accounted for under the equity method, those that result in consolidation of the investee, and certain other investments) either at fair value, with changes to fair value recognized in net income, or, in certain instances, by use of a measurement alternative. Under the measurement alternative, such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. We adopted this guidance on January 1, 2018, which resulted in no impact on our consolidated financial position or results of operations. Refer to Note 11, "Fair Value Measures," for further detail regarding the application of the measurement alternative to our $50.0 million equity investment in Series B Preferred Stock of Quanergy, Inc ("Quanergy"), which does not have a readily determinable fair value. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires a change in the presentation of net periodic benefit cost on the consolidated statements of operations. Specifically, entities must present the service cost component of net periodic benefit cost in the same financial statement line item(s) as other compensation costs arising from services rendered by the related employees during the period, whereas the non–service components of net periodic benefit cost must be presented separately from the financial statement line item(s) that include service cost and outside of operating income. We adopted this guidance on January 1, 2018 and, as a result, we present the service cost component of net periodic benefit cost in the Cost of revenue, Research and development, and Selling, general, and administrative ("SG&A") expense line items, and we present the non–service components of net periodic benefit cost in Other, net. Refer to Note 13, "Other, net," for the total other components of net periodic benefit cost. All prior period amounts have been recast to reflect the revised presentation, and the adjustments made to revise the presentation of our prior year condensed consolidated statement of operations are presented in Note 8, "Pension and Other Post–Retirement Benefits." To be adopted in a future period In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which establishes new accounting and disclosure requirements for leases. FASB ASU No. 2016-02 requires lessees to classify most leases as either finance or operating leases and to initially recognize a lease liability and right-of-use asset. Entities may elect to account for certain short-term leases (with a term of one year or less) using a method similar to the current operating lease model. The statements of operations will include, for finance leases, separate recognition of interest on the lease liability and amortization of the right-of-use asset and for operating leases, a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. At December 31, 2017, we were contractually obligated to make future payments of $68.6 million under our operating lease obligations in existence as of that date, primarily related to long-term facility leases. While we are in the early stages of our implementation process for FASB ASU No. 2016-02 and have not yet determined its impact on our consolidated financial position or results of operations, these leases would potentially be required to be presented on the balance sheet in accordance with the requirements of FASB ASU No. 2016-02, which is effective for annual reporting periods beginning after December 15, 2018, including interim periods therein, with early adoption permitted. FASB ASU No. 2016-02 must be applied using a modified retrospective approach, which requires the recognition and measurement of leases at the beginning of the earliest period presented, with certain practical expedients available. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), which changes both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results, in order to better align an entity’s risk management activities and financial reporting for hedging relationships. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. FASB ASU No. 2017-12 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods, with early adoption permitted. The adoption of FASB ASU No. 2017-12 will not have a material impact on our consolidated financial position or results of operations. Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which modifies how all entities recognize revenue, and consolidates into one Accounting Standards Codification Topic (FASB ASC Topic 606, Revenue from Contracts with Customers) the guidance found in FASB ASC Topic 605, Revenue Recognition, and various other revenue accounting standards for specialized transactions and industries. FASB ASC Topic 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. We adopted FASB ASC Topic 606 on January 1, 2018 using the modified retrospective transition method. For the three months ended March 31, 2018 and 2017, the vast majority of our revenue was derived from the sale of tangible products for which we recognize revenue at a point in time. The contracts that relate to these product shipments are purchase orders that have firm purchase commitments generally only for a short period of time. As a result, the adoption of FASB ASC Topic 606 did not have a material effect on our financial statements or results of operations, and no cumulative catch-up adjustment was required. We used the related practical expedients that allow us to not disclose the transaction price allocated to remaining unsatisfied obligations and an explanation of when we expect to recognize the related revenue. In adopting FASB ASC Topic 606, we applied the new guidance only to contracts that were not completed on January 1, 2018. The following table presents revenue by segment, further disaggregated by end-market:
Performance Obligations Our revenue and related cost of revenue are primarily the result of promises to transfer products to our customers. Revenue is recognized when our performance obligation has been met, which is generally when the product is shipped from our warehouse or, in limited instances, when it is received by the customer, depending on the specific terms of the arrangement. Product sales are recorded net of value-added tax and similar taxes. Amounts billed to our customers for shipping and handling are recorded in revenue. Shipping and handling costs are included in cost of revenue. Sales to customers generally include a right of return for defective or non-conforming product. Sales returns have not historically been significant in relation to our net revenue and have been within our estimates. Product sales are recorded net of variable consideration, such as trade discounts (including volume and early payment incentives) and sales returns. Our standard terms of sale provide our customers with a warranty against faulty workmanship and the use of defective materials, which, depending on the product, generally exists for a period of twelve to eighteen months after the date we ship the product to our customer or for a period of twelve months after the date the customer resells our product, whichever comes first. We do not offer separately priced extended warranty or product maintenance contracts. Our liability associated with this warranty is, at our option, to repair the product, replace the product, or provide the customer with a credit. We also sell products to customers under negotiated agreements or where we have accepted the customer’s terms of purchase. In these instances, we may provide additional warranties for longer durations, consistent with differing end market practices, and where our liability is not limited. In addition, many sales take place in situations where commercial or civil codes, or other laws, would imply various warranties and restrict limitations on liability. Payment for products is due in accordance with the terms agreed upon with customers, generally within 90 days of shipment to the customer. Accordingly, our contracts with customers do not include a significant financing component. Contract Assets and Liabilities We generally invoice the customer and recognize revenue once we have satisfied our performance obligation. Accordingly, our contract assets comprise accounts receivable. In certain cases, we receive payment by customers related to our promise to satisfy performance obligations in the future. Such payments are recorded as contract liabilities, which are not material. |
New Accounting Standards (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q. Accordingly, these interim financial statements do not include all of the information and note disclosures required by U.S. GAAP for complete financial statements. The accompanying financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year, nor were the results of operations of the comparable periods in 2017 necessarily representative of those actually experienced for the full year 2017. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. All intercompany balances and transactions have been eliminated. All U.S. dollar and share amounts presented, except per share amounts, are stated in thousands, unless otherwise indicated. |
Reclassification | Certain reclassifications have been made to prior periods to conform to current period presentation |
New Accounting Standards | New Accounting Standards Adopted in the current period In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which modifies how all entities recognize revenue, and consolidates into one ASC Topic (FASB ASC Topic 606, Revenue from Contracts with Customers) the guidance found in FASB ASC Topic 605, Revenue Recognition, and various other revenue accounting standards for specialized transactions and industries. FASB ASC Topic 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted FASB ASC Topic 606 on January 1, 2018 using the modified retrospective transition method. Refer to Note 16, "Revenue Recognition," for additional details on this implementation and the required disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The new recognition and measurement guidance requires entities to measure equity investments (except those accounted for under the equity method, those that result in consolidation of the investee, and certain other investments) either at fair value, with changes to fair value recognized in net income, or, in certain instances, by use of a measurement alternative. Under the measurement alternative, such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. We adopted this guidance on January 1, 2018, which resulted in no impact on our consolidated financial position or results of operations. Refer to Note 11, "Fair Value Measures," for further detail regarding the application of the measurement alternative to our $50.0 million equity investment in Series B Preferred Stock of Quanergy, Inc ("Quanergy"), which does not have a readily determinable fair value. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires a change in the presentation of net periodic benefit cost on the consolidated statements of operations. Specifically, entities must present the service cost component of net periodic benefit cost in the same financial statement line item(s) as other compensation costs arising from services rendered by the related employees during the period, whereas the non–service components of net periodic benefit cost must be presented separately from the financial statement line item(s) that include service cost and outside of operating income. We adopted this guidance on January 1, 2018 and, as a result, we present the service cost component of net periodic benefit cost in the Cost of revenue, Research and development, and Selling, general, and administrative ("SG&A") expense line items, and we present the non–service components of net periodic benefit cost in Other, net. Refer to Note 13, "Other, net," for the total other components of net periodic benefit cost. All prior period amounts have been recast to reflect the revised presentation, and the adjustments made to revise the presentation of our prior year condensed consolidated statement of operations are presented in Note 8, "Pension and Other Post–Retirement Benefits." To be adopted in a future period In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which establishes new accounting and disclosure requirements for leases. FASB ASU No. 2016-02 requires lessees to classify most leases as either finance or operating leases and to initially recognize a lease liability and right-of-use asset. Entities may elect to account for certain short-term leases (with a term of one year or less) using a method similar to the current operating lease model. The statements of operations will include, for finance leases, separate recognition of interest on the lease liability and amortization of the right-of-use asset and for operating leases, a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. At December 31, 2017, we were contractually obligated to make future payments of $68.6 million under our operating lease obligations in existence as of that date, primarily related to long-term facility leases. While we are in the early stages of our implementation process for FASB ASU No. 2016-02 and have not yet determined its impact on our consolidated financial position or results of operations, these leases would potentially be required to be presented on the balance sheet in accordance with the requirements of FASB ASU No. 2016-02, which is effective for annual reporting periods beginning after December 15, 2018, including interim periods therein, with early adoption permitted. FASB ASU No. 2016-02 must be applied using a modified retrospective approach, which requires the recognition and measurement of leases at the beginning of the earliest period presented, with certain practical expedients available. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), which changes both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results, in order to better align an entity’s risk management activities and financial reporting for hedging relationships. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. FASB ASU No. 2017-12 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods, with early adoption permitted. The adoption of FASB ASU No. 2017-12 will not have a material impact on our consolidated financial position or results of operations. |
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventories | The components of inventories as of March 31, 2018 and December 31, 2017 were as follows:
|
Shareholders' Equity (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Roll forward of components of Accumulated other comprehensive loss, net of tax | The following is a roll forward of the components of Accumulated other comprehensive loss for the three months ended March 31, 2018:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from Accumulated other comprehensive loss | The details of the amounts reclassified from Accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 are as follows:
|
Restructuring and Other Charges, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Changes to restructuring liability | Changes to the severance portion of our restructuring liability during the three months ended March 31, 2018 were as follows:
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt and capital lease and other financing obligations | Our long-term debt and capital lease and other financing obligations as of March 31, 2018 and December 31, 2017 consisted of the following:
|
Pension and Other Post-Retirement Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost | The components of net periodic benefit cost/(credit) associated with our defined benefit and retiree healthcare plans for the three months ended March 31, 2018 and 2017 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of adjustment impact | The table below presents the effects of this adjustment.
|
Share-Based Payment Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of non-cash compensation expense related to equity awards | The table below presents non-cash compensation expense related to our equity awards, which is recognized within SG&A expense in the condensed consolidated statements of operations, during the identified periods:
|
Fair Value Measures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information about carrying values and fair values of financial instruments not recorded at fair value | The following table presents the carrying values and fair values of financial instruments not recorded at fair value in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017:
(1) Carrying value excludes discounts and deferred financing costs. |
Derivative Instruments and Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of outstanding derivative instruments | As of March 31, 2018, we had the following outstanding foreign currency forward contracts:
We had the following outstanding commodity forward contracts, none of which were designated as derivatives in qualifying hedging relationships, as of March 31, 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values of derivative financial instruments and their classification in balance sheets | The following table presents the fair values of our derivative financial instruments and their classification in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of effect of derivative financial instruments on statements of operations | The following tables present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months ended March 31, 2018 and 2017:
|
Other, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other, net | Other, net consisted of the following for the three months ended March 31, 2018 and 2017:
|
Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information by segment | The following table presents Net revenue and Segment profit for the reported segments and other operating results not allocated to the reported segments for the three months ended March 31, 2018 and 2017:
|
Net Income per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted-average ordinary shares outstanding | For the three months ended March 31, 2018 and 2017, the weighted-average ordinary shares outstanding for basic and diluted net income per share were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of antidilutive securities | These potential ordinary shares are as follows:
|
Revenue Recognition (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents revenue by segment, further disaggregated by end-market:
|
Business Description and Basis of Presentation (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of businesses | 2 |
New Accounting Standards (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Investment [Line Items] | ||
Future payments | $ 68.6 | |
Series B Preferred Stock | Quanergy | ||
Investment [Line Items] | ||
Equity investment | $ 50.0 |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory, Net [Abstract] | ||
Finished goods | $ 192,486 | $ 195,089 |
Work-in-process | 94,446 | 92,678 |
Raw materials | 172,767 | 158,362 |
Inventories | $ 459,699 | $ 446,129 |
Shareholders' Equity - Narrative (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Feb. 16, 2018 |
Mar. 31, 2018 |
Feb. 15, 2018 |
|
Equity [Abstract] | |||
Ordinary shares authorized (in shares) | 177.1 | 400.0 | |
Reissued treasury shares (in shares) | 0.1 | ||
Reduction in retained earnings | $ 286.1 | $ 0.2 |
Restructuring and Other Charges, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | $ 3,766 | $ 11,050 |
Severance charges | $ 3,500 | |
Payback period | 2 years | |
Pre-tax savings | $ 3,000 | |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 7,583 | |
Charges, net of reversals | 3,604 | |
Payments | (2,817) | |
Impact of changes in foreign currency exchange rates | 294 | |
Ending Balance | $ 8,664 |
Debt - Debt Schedule (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Less: discount | $ (17,233) | $ (14,424) |
Less: deferred financing costs | (26,607) | (27,758) |
Less: current portion | (2,278) | (9,802) |
Long-term debt, net | 3,221,676 | 3,225,810 |
Capital lease and other financing obligations | 33,635 | 34,657 |
Less: current portion | (5,900) | (5,918) |
Capital lease and other financing obligations, less current portion | 27,735 | 28,739 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | 917,794 | 927,794 |
4.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 500,000 | 500,000 |
Stated interest rate | 4.875% | |
5.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 400,000 | 400,000 |
Stated interest rate | 5.625% | |
5.0% Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 700,000 | 700,000 |
Stated interest rate | 5.00% | |
6.25% Senior Notes | ||
Debt Instrument [Line Items] | ||
Gross long-term debt | $ 750,000 | $ 750,000 |
Stated interest rate | 6.25% |
Debt - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Debt Instrument [Line Items] | ||
Payments for merger costs | $ 5,800,000 | |
Accrued interest | 45,800,000 | $ 36,900,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Amount available under revolving credit facility | 415,300,000 | |
Maximum borrowing capacity | 420,000,000.0 | |
Letters of credit outstanding, amount | 4,700,000 | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | 0 | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Payments for merger costs | 3,500,000 | |
Other, net | ||
Debt Instrument [Line Items] | ||
Payments for merger costs | $ 2,400,000 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 14,126 | $ 14,332 |
Share-Based Payment Plans - Schedule of Non-Cash Compensation Expense Related to Equity Awards (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 5,090 | $ 3,952 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1,289 | 1,425 |
Restricted securities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 3,801 | $ 2,527 |
Share-Based Payment Plans - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Option exercised (in shares) | 58,000 |
Various Executives and Employees | Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted shares (in shares) | 11,000 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 55.81 |
Various Executives and Employees | Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted shares (in shares) | 0 |
Fair Value Measures - Narrative (Details) $ in Millions |
Mar. 31, 2018
USD ($)
|
---|---|
Quanergy | Series B Preferred Stock | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Equity investment | $ 50.0 |
Derivative Instruments and Hedging Activities - Narrative (Details) |
Mar. 31, 2018
USD ($)
|
---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign currency cash flow loss to be reclassified during next 12 months | $ 27,400,000 |
Termination value of outstanding derivatives in a liability position | 45,600,000 |
Collateral already posted, aggregate fair value | $ 0 |
Other, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Other Income and Expenses [Abstract] | ||
Currency remeasurement gain on net monetary assets | $ 6,748 | $ 2,191 |
Loss on foreign currency forward contracts | (6,326) | (2,536) |
(Loss)/gain on commodity forward contracts | (3,195) | 5,440 |
Loss on debt financing | (2,350) | 0 |
Defined benefit and retiree healthcare plans net periodic benefit cost, excluding service component | (298) | (477) |
Other | 788 | 101 |
Other, net | $ (4,633) | $ 4,719 |
Net Income per Share - Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Basic weighted-average ordinary shares outstanding (in shares) | 171,404 | 170,947 |
Dilutive effect of stock options (in shares) | 926 | 567 |
Dilutive effect of unvested restricted securities (in shares) | 526 | 391 |
Diluted weighted-average ordinary shares outstanding (in shares) | 172,856 | 171,905 |
Net Income per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Anti-dilutive shares excluded | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 709 | 1,280 |
Contingently issuable shares excluded | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 787 | 517 |
=J*&7^!^=R?C+3:KE%)#:R6VQ$"5T=OD
M<-P%? 0\21CLXDQ")6?$EV!\+S.Z"0F!@L(%!>&W"]R!4D'(I_$Z:=(Y9" N
MS^_JWV+MOI:SL'"'ZEF6KLGHGI(2*M$K]XC# TSU7%,R%?\#+J \/&3B8Q2H
M;%Q)T5N'>E+QJ6CQ-NZRC?LPWFSY1%LG\(G 9\(^QF%CH)CYO7 B3PT.Q(R]
M[T1XXN3 ?6^*X(RMB'<^>>N]EYS?I.P2=";(<83P!229$0,,+IW$
/-T,/(>4&"!]HQ@&[>
M^S((9_UPH'""YW[0Y.HR$"<[Y:17\'.CS"691,=)^HS-U9_%MV;"VI'P*=./
MYQ]$G.I&>@>N]&"QU__(N0)=9/"DWU>EOPCC@<)1F6VJ]Z(?B_U!\788^6C\
M[N3_ %!+ P04 " "+1)A,AVK+LQ," 1!@ &0 'AL+W=ORPHDZBI0NZDFTI=+6<23CHQ5R&H_GT$KJ8:[=![XIE=
M!NL3N*E&>H'O8'^,)^TBO+!T3( T3,E$0U^C#[O#D7A\ /QD,)G5//&=G)5Z
M]<&7KD:I-P0<6NL9J!MN\ 2<>R)GX]?,B19)7[B>O[-_"KV[7L[4P)/B+ZRS
M0XT>4=)!3Z_^DO1JKQ,SBK CZ%D