10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________________________________ 

FORM 10-Q

_________________________________________________________________________________ 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 001-34652

_________________________________________________________________________________ 

SENSATA TECHNOLOGIES HOLDING PLC

(Exact name of registrant as specified in its charter)

_________________________________________________________________________________ 

England and Wales	98-1386780
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

529 Pleasant Street

Attleboro, Massachusetts, 02703, United States

(Address of principal executive offices, including zip code)

+1 (508) 236 3800

(Registrant's telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

_____________________________________ 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Ordinary Shares - nominal value €0.01 per share	ST	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 14, 2023, 152,422,440 ordinary shares were outstanding.

TABLE OF CONTENTS

PART I
	Item 1.	Financial Statements (unaudited):
		Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	3
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022	4
		Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2023 and 2022	5
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022	6
		Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Six Months Ended June 30, 2023 and 2022	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
	Item 4.	Controls and Procedures	33
PART II
	Item 1.	Legal Proceedings	34
	Item 1A.	Risk Factors	34
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
	Item 3.	Defaults Upon Senior Securities	34
	Item 5.	Other Information	34
	Item 6.	Exhibits	35
		Signatures	36

2

PART I—FINANCIAL INFORMATION

Item 1.Financial Statements.

SENSATA TECHNOLOGIES HOLDING PLC

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

(unaudited)

	June 30, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	857,312	$	1,225,518
Accounts receivable, net of allowances of $32,409 and $24,246 as of June 30, 2023 and December 31, 2022, respectively	772,427		742,382
Inventories	660,082		644,875
Prepaid expenses and other current assets	186,807		162,268
Total current assets	2,476,628		2,775,043
Property, plant and equipment, net	858,760		840,819
Goodwill	3,861,872		3,911,224
Other intangible assets, net of accumulated amortization of $2,444,191 and $2,352,813 as of June 30, 2023 and December 31, 2022, respectively	961,180		999,722
Deferred income tax assets	93,782		100,539
Other assets	140,378		128,873
Total assets	$	8,392,600	$	8,756,220
Liabilities and shareholders' equity
Current liabilities:
Current portion of long-term debt, finance lease and other financing obligations	$	1,809	$	256,471
Accounts payable	523,968		531,572
Income taxes payable	31,920		43,987
Accrued expenses and other current liabilities	323,201		346,942
Total current liabilities	880,898		1,178,972
Deferred income tax liabilities	390,743		364,593
Pension and other post-retirement benefit obligations	38,960		36,086
Finance lease and other financing obligations, less current portion	23,771		24,742
Long-term debt, net	3,770,507		3,958,928
Other long-term liabilities	77,949		82,092
Total liabilities	5,182,828		5,645,413
Commitments and contingencies (Note 11)
Shareholders’ equity:
Ordinary shares, €0.01 nominal value per share, 177,069 shares authorized, and 175,793 and 175,207 shares issued as of June 30, 2023 and December 31, 2022, respectively	2,249		2,242
Treasury shares, at cost, 23,371 and 22,781 shares as of June 30, 2023 and December 31, 2022, respectively	(1,149,838)		(1,124,713)
Additional paid-in capital	1,889,234		1,866,201
Retained earnings	2,472,281		2,383,341
Accumulated other comprehensive loss	(4,154)		(16,264)
Total shareholders' equity	3,209,772		3,110,807
Total liabilities and shareholders' equity	$	8,392,600	$	8,756,220

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

SENSATA TECHNOLOGIES HOLDING PLC

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(unaudited)

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net revenue	$	1,062,112	$	1,020,548	$	2,060,287	$	1,996,318
Operating costs and expenses:
Cost of revenue	732,108		686,603		1,402,579		1,343,683
Research and development	44,857		47,971		90,796		93,951
Selling, general and administrative	91,312		97,329		177,462		193,009
Amortization of intangible assets	54,563		36,805		95,337		74,172
Restructuring and other charges, net	21,259		12,897		27,258		26,630
Total operating costs and expenses	944,099		881,605		1,793,432		1,731,445
Operating income	118,013		138,943		266,855		264,873
Interest expense, net	(38,105)		(44,842)		(78,196)		(90,287)
Other, net	(10,924)		(39,240)		(9,532)		(89,696)
Income before taxes	68,984		54,861		179,127		84,890
Provision for income taxes	19,873		20,020		43,599		27,608
Net income	$	49,111	$	34,841	$	135,528	$	57,282
Basic net income per share	$	0.32	$	0.22	$	0.89	$	0.36
Diluted net income per share	$	0.32	$	0.22	$	0.88	$	0.36

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

SENSATA TECHNOLOGIES HOLDING PLC

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(unaudited)

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income	$	49,111	$	34,841	$	135,528	$	57,282
Other comprehensive income:
Cash flow hedges	8,686		9,183		11,493		12,033
Defined benefit and retiree healthcare plans	224		380		617		808
Other comprehensive income	8,910		9,563		12,110		12,841
Comprehensive income	$	58,021	$	44,404	$	147,638	$	70,123

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

SENSATA TECHNOLOGIES HOLDING PLC

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

	For the six months ended
	June 30, 2023		June 30, 2022
Cash flows from operating activities:
Net income	$	135,528	$	57,282
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	63,560		62,882
Amortization of debt issuance costs	3,421		3,433
Gain on sale of business	(5,877)		—
Share-based compensation	17,607		15,739
Loss on debt financing	857		—
Amortization of intangible assets	95,337		74,172
Deferred income taxes	13,449		(5,211)
Mark-to-market loss on equity investments, net	302		71,100
Unrealized loss on derivative instruments and other	14,674		20,669
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable, net	(30,045)		(102,845)
Inventories	(19,036)		(69,379)
Prepaid expenses and other current assets	(13,408)		(17,762)
Accounts payable and accrued expenses	(39,665)		56,767
Income taxes payable	(12,067)		(11,384)
Other	(3,615)		1,425
Acquisition-related compensation payments	(8,380)		(15,000)
Net cash provided by operating activities	212,642		141,888
Cash flows from investing activities:
Acquisitions, net of cash received	—		(48,989)
Additions to property, plant and equipment and capitalized software	(84,444)		(74,069)
Investment in debt and equity securities	(390)		(6,878)
Proceeds from the sale of business, net of cash sold	19,000		—
Other	—		152
Net cash used in investing activities	(65,834)		(129,784)
Cash flows from financing activities:
Proceeds from exercise of stock options and issuance of ordinary shares	5,346		14,577
Payment of employee restricted stock tax withholdings	(11,470)		(7,577)
Payments on debt	(448,390)		(5,664)
Dividends paid	(35,113)		(17,225)
Payments to repurchase ordinary shares	(25,076)		(144,279)
Payments of debt financing costs	(311)		(2,313)
Net cash used in financing activities	(515,014)		(162,481)
Net change in cash and cash equivalents	(368,206)		(150,377)
Cash and cash equivalents, beginning of year	1,225,518		1,708,955
Cash and cash equivalents, end of period	$	857,312	$	1,558,578

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

SENSATA TECHNOLOGIES HOLDING PLC

Condensed Consolidated Statements of Changes in Shareholders' Equity

(In thousands)

(unaudited) 

	Ordinary Shares			Treasury Shares			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
	Number	Amount		Number	Amount
Balance as of March 31, 2023	175,298	$	2,243	(22,781)	$	(1,124,713)	$	1,876,168	$	2,452,858	$	(13,064)	$	3,193,492
Surrender of shares for tax withholding	—	—		(231)	(11,347)		—		—		—		(11,347)
Stock options exercised	76	1		—	—		2,665		—		—		2,666
Vesting of restricted securities	650	7		—	—		—		(7)		—		—
Cash dividends paid	—	—		—	—		—		(18,336)		—		(18,336)
Repurchase of ordinary shares	—	—		(590)	(25,125)		—		—		—		(25,125)
Retirement of ordinary shares	(231)	(2)		231	11,347		—		(11,345)		—		—
Share-based compensation	—	—		—	—		10,401		—		—		10,401
Net income	—	—		—	—		—		49,111		—		49,111
Other comprehensive income	—	—		—	—		—		—		8,910		8,910
Balance as of June 30, 2023	175,793	$	2,249	(23,371)	$	(1,149,838)	$	1,889,234	$	2,472,281	$	(4,154)	$	3,209,772

Balance as of December 31, 2022	175,207	$	2,242	(22,781)	$	(1,124,713)	$	1,866,201	$	2,383,341	$	(16,264)	$	3,110,807
Surrender of shares for tax withholding	—	—		(233)	(11,470)		—		—		—		(11,470)
Stock options exercised	158	2		—	—		5,426		—		—		5,428
Vesting of restricted securities	661	7		—	—		—		(7)		—		—
Cash dividends paid	—	—		—	—		—		(35,113)		—		(35,113)
Repurchase of ordinary shares	—	—		(590)	(25,125)		—		—		—		(25,125)
Retirement of ordinary shares	(233)	(2)		233	11,470		—		(11,468)		—		—
Share-based compensation	—	—		—	—		17,607		—		—		17,607
Net income	—	—		—	—		—		135,528		—		135,528
Other comprehensive income	—	—		—	—		—		—		12,110		12,110
Balance as of June 30, 2023	175,793	$	2,249	(23,371)	$	(1,149,838)	$	1,889,234	$	2,472,281	$	(4,154)	$	3,209,772

	Ordinary Shares			Treasury Shares			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
	Number	Amount		Number	Amount
Balance as of March 31, 2022	174,583	$	2,236	(17,576)	$	(899,697)	$	1,831,497	$	2,154,563	$	(16,282)	$	3,072,317
Surrender of shares for tax withholding	—	—		(148)	(7,442)		—		—		—		(7,442)
Stock options exercised	39	—		—	—		1,229		—		—		1,229
Vesting of restricted securities	450	5		—	—		—		(5)		—		—
Cash dividends paid	—	—		—	—		—		(17,225)		—		(17,225)
Repurchase of ordinary shares	—	—		(1,693)	(78,898)		—		—		—		(78,898)
Retirement of ordinary shares	(148)	(2)		148	7,442		—		(7,440)		—		—
Share-based compensation	—	—		—	—		9,199		—		—		9,199
Net income	—	—		—	—		—		34,841		—		34,841
Other comprehensive income	—	—		—	—		—		—		9,563		9,563
Balance as of June 30, 2022	174,924	$	2,239	(19,269)	$	(978,595)	$	1,841,925	$	2,164,734	$	(6,719)	$	3,023,584

Balance as of December 31, 2021	174,287	$	2,232	(16,438)	$	(832,439)	$	1,812,244	$	2,132,257	$	(19,560)	$	3,094,734
Surrender of shares for tax withholding	—	—		(151)	(7,577)		—		—		—		(7,577)
Stock options exercised	329	4		—	—		13,942		—		—		13,946
Vesting of restricted securities	459	5		—	—		—		(5)		—		—
Cash dividends paid	—	—		—	—		—		(17,225)		—		(17,225)
Repurchase of ordinary shares	—	—		(2,831)	(146,156)		—		—		—		(146,156)
Retirement of ordinary shares	(151)	(2)		151	7,577		—		(7,575)		—		—
Share-based compensation	—	—		—	—		15,739		—		—		15,739
Net income	—	—		—	—		—		57,282		—		57,282
Other comprehensive income	—	—		—	—		—		—		12,841		12,841
Balance as of June 30, 2022	174,924	$	2,239	(19,269)	$	(978,595)	$	1,841,925	$	2,164,734	$	(6,719)	$	3,023,584

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

SENSATA TECHNOLOGIES HOLDING PLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements reflect the financial position, results of operations, comprehensive income, cash flows, and changes in shareholders' equity of Sensata Technologies Holding plc, a public limited company incorporated under the laws of England and Wales, and its consolidated subsidiaries, collectively referred to as the "Company," "Sensata," "we," "our," or "us."

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("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 interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (the "SEC") on February 13, 2023 (the "2022 Annual Report").

All U.S. dollar ("USD") and share amounts presented, except per share amounts, are stated in thousands, unless otherwise indicated.

2. New Accounting Standards

There are no recently issued accounting standards that have been adopted in the current period or will be adopted in future periods that have had or are expected to have a material impact on our consolidated financial position or results of operations.

3. Revenue Recognition

The following tables present net revenue disaggregated by segment and end market for the three and six months ended June 30, 2023 and 2022 for our two reportable segments, Performance Sensing ("PS") and Sensing Solutions ("SS"):

	For the three months ended June 30, 2023						For the three months ended June 30, 2022 (3)
	PS		SS		Total		PS		SS		Total
Automotive	$	530,268	$	9,550	$	539,818	$	506,232	$	9,932	$	516,164
HVOR (1)	227,176		—		227,176		225,413		—		225,413
Industrial	—		185,202		185,202		—		137,331		137,331
Appliance and HVAC (2)	—		50,952		50,952		—		57,675		57,675
Aerospace	—		46,832		46,832		—		38,558		38,558
Other	—		12,132		12,132		—		45,407		45,407
Total	$	757,444	$	304,668	$	1,062,112	$	731,645	$	288,903	$	1,020,548

	For the six months ended June 30, 2023 (3)						For the six months ended June 30, 2022 (3)
	PS		SS		Total		PS		SS		Total
Automotive	$	1,047,152	$	17,684	$	1,064,836	$	1,008,594	$	19,217	$	1,027,811
HVOR (1)	448,560		—		448,560		425,746		—		425,746
Industrial	—		333,714		333,714		—		266,952		266,952
Appliance and HVAC (2)	—		98,426		98,426		—		116,500		116,500
Aerospace	—		91,158		91,158		—		71,828		71,828
Other	—		23,593		23,593		—		87,481		87,481
Total	$	1,495,712	$	564,575	$	2,060,287	$	1,434,340	$	561,978	$	1,996,318

___________________________________

(1)    Heavy vehicle and off-road

(2)    Heating, ventilation and air conditioning

8

(3)    Effective April 1, 2023, we moved our material handling products from the HVOR operating segment (in the Performance Sensing reportable segment) to the Sensing Solutions operating segment to align with new management reporting. The amounts previously reported in the tables above for the three and six months ended June 30, 2022 have been retrospectively recast to reflect this change. In addition, the six months ended June 30, 2023 includes amounts for the three months ended March 31, 2023 that have been retrospectively adjusted for this change.

4. Share-Based Payment Plans

The following table presents the components of non-cash compensation expense related to our equity awards for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock options	$	(205)	$	2	$	(86)	$	309
Restricted securities	10,606		9,197		17,693		15,430
Share-based compensation expense	$	10,401	$	9,199	$	17,607	$	15,739

Equity Awards

We granted the following restricted stock units ("RSUs" and each, an "RSU") and performance-based restricted stock units ("PRSUs" and each, a "PRSU") under the Sensata Technologies Holding plc 2021 Equity Incentive Plan during the six months ended June 30, 2023:

Awards Granted To:	Type of Award	Number of Units Granted (in thousands)	Weighted Average Grant Date Fair Value
Directors	RSU (1)	33	$	40.95
Various executives and employees	RSU (2)	547	$	49.57
Various executives and employees	PRSU (3)	241	$	49.53
Various executives and employees	PRSU (4)	102	$	55.50

____________________________________

(1)    These RSUs cliff vest one year from the grant date (May and June 2024).

(2)    These RSUs vest ratably over three years, one-third per year beginning on the first anniversary of the grant date. These RSUs will fully vest on various dates between January 2026 and June 2026.

(3)    These PRSUs vest on various dates between April 2026 and June 2026. The number of units that ultimately vest will be between 0% and 150% and is dependent on the achievement of certain performance criteria.

(4)    These awards include certain PRSUs with market performance conditions that will be evaluated relative to the performance of certain peers as defined in the award agreement. The number of units that ultimately vest (in April 2026) will be from 0% to 150%, depending on achievement of these performance criteria. Total grant date value of these PRSUs is approximately $5.6 million and was valued using the Monte Carlo method. Related share-based compensation expense recognized in the three and six months ended June 30, 2023 was $0.6 million.

9

5. Restructuring and Other Charges, Net

The following table presents the components of restructuring and other charges, net for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Severance costs, net (1)	$	4,749	$	—	$	8,962	$	587
Facility and other exit costs	310		1,241		535		2,289
Gain on sale of business	—		—		(5,877)		—
Acquisition-related compensation arrangements (2)	3,330		12,834		10,602		31,089
Other (1)(2)(3)	12,870		(1,178)		13,036		(7,335)
Restructuring and other charges, net	$	21,259	$	12,897	$	27,258	$	26,630

___________________________________

(1)    The three and six months ended June 30, 2023 include certain costs to exit the marine energy storage business (the "Marine Business") of Spear Power Systems (“Spear”) as discussed below.

(2)    We have reclassified acquisition-related compensation arrangements for the three and six months ended June 30, 2022 from the "other" caption within restructuring and other charges, net, to correspond to current period presentation.

(3)    The six months ended June 30, 2022 primarily includes gains related to changes in the fair value of acquisition-related contingent consideration amounts.

On June 6, 2023, we announced that we had made the decision to exit the Marine Business, which was included in the Sensing Solutions reportable segment. Exiting the Marine Business resulted in a charge of $38.3 million in the three and six months ended June 30, 2023. The charge included $13.5 million of accelerated amortization of definite-lived intangible assets, presented in amortization of intangible assets, and a $10.5 million write-down of inventory, presented in cost of revenue. In addition, certain of these charges are presented in restructuring and other charges, net, including $1.2 million of severance costs, $1.7 million related to the write-down of property, plant, and equipment, $2.3 million related to the write-down of accounts receivables, and $9.1 million of other charges, including contract termination costs.

The following table presents a rollforward of our severance liability for the six months ended June 30, 2023:

	Severance
Balance as of December 31, 2022	$	8,617
Charges, net of reversals	8,962
Payments	(12,344)
Foreign currency remeasurement	166
Balance as of June 30, 2023	$	5,401

The severance liability as of June 30, 2023 and December 31, 2022 was entirely recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets.

6. Other, Net

The following table presents the components of other, net for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Currency remeasurement loss on net monetary assets	$	(9,307)	$	(14,090)	$	(10,566)	$	(14,157)
Gain on foreign currency forward contracts	4,423		3,165		4,607		1,922
Loss on commodity forward contracts	(6,269)		(18,254)		(4,370)		(8,830)
Loss on debt financing	(372)		—		(857)		—
Mark-to-market loss on equity investments, net	(302)		(11,821)		(302)		(71,100)
Net periodic benefit cost, excluding service cost	(810)		(639)		(1,781)		(1,394)
Other	1,713		2,399		3,737		3,863
Other, net	$	(10,924)	$	(39,240)	$	(9,532)	$	(89,696)

10

7. Income Taxes

The following table presents the provision for income taxes for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Provision for income taxes	$	19,873	$	20,020	$	43,599	$	27,608

The provision for income taxes consists of (1) current tax expense, which relates primarily to our profitable operations in tax jurisdictions with limited or no net operating loss carryforwards and withholding taxes related to management fees, royalties, and the repatriation of foreign earnings; and (2) deferred tax expense (or benefit), which represents adjustments in book-to-tax basis differences primarily related to (a) book versus tax basis in intangible assets, (b) changes in net operating loss carryforwards, and (c) changes in withholding taxes on unremitted earnings. Other items impacting deferred tax expense include changes in tax rates and changes in our assessment of the realizability of our deferred tax assets.

We recorded a partial valuation allowance against certain interest carryforwards in the U.S. at both December 31, 2022 and December 31, 2021. We are continually evaluating both the positive and negative evidence for this partial valuation allowance. We believe that there is a reasonable possibility that within the next 12 months, sufficient positive evidence may become available to allow us to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of this deferred tax asset and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability and future utilization of this attribute that we are able to actually achieve.

8. 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 and six months ended June 30, 2023 and 2022 the weighted-average ordinary shares outstanding used to calculate basic and diluted net income per share were as follows:

	For the three months ended		For the six months ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Basic weighted-average ordinary shares outstanding	152,700	156,477	152,609	156,950
Dilutive effect of stock options	55	190	103	331
Dilutive effect of unvested restricted securities	309	327	482	531
Diluted weighted-average ordinary shares outstanding	153,064	156,994	153,194	157,812

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 were as follows:

	For the three months ended		For the six months ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Anti-dilutive shares excluded	1,625	1,426	1,003	715
Contingently issuable shares excluded	1,366	1,383	1,317	1,192

9. Inventories

The following table presents the components of inventories as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
Finished goods	$	223,295	$	202,531
Work-in-process	109,297		117,691
Raw materials	327,490		324,653
Inventories	$	660,082	$	644,875

11

10. Debt

The following table presents the components of long-term debt, finance lease and other financing obligations as of June 30, 2023 and December 31, 2022:

	Maturity Date	June 30, 2023		December 31, 2022
Term Loan (1)	September 20, 2026	$	—	$	446,834
5.625% Senior Notes	November 1, 2024	400,000		400,000
5.0% Senior Notes	October 1, 2025	700,000		700,000
4.375% Senior Notes	February 15, 2030	450,000		450,000
3.75% Senior Notes	February 15, 2031	750,000		750,000
4.0% Senior Notes	April 15, 2029	1,000,000		1,000,000
5.875% Senior Notes	September 1, 2030	500,000		500,000
Less: debt discount, net of premium		(2,355)		(3,360)
Less: deferred financing costs		(27,138)		(29,916)
Less: current portion		—		(254,630)
Long-term debt, net		$	3,770,507	$	3,958,928
Finance lease and other financing obligations		$	25,580	$	26,583
Less: current portion		(1,809)		(1,841)
Finance lease and other financing obligations, less current portion		$	23,771	$	24,742

___________________________________

(1)    On February 6, 2023, we prepaid $250.0 million of outstanding principal on our Term Loan balance. Accordingly, that portion of the principal balance outstanding on the Term Loan as of December 31, 2022 was presented as current portion of long-term debt. On May 3, 2023, we prepaid $196.8 million of outstanding principal on the Term Loan, representing the remaining balance on the Term Loan as of that date plus $0.5 million in interest.

Our debt consists of secured credit facilities and various tranches of senior unsecured notes. Refer to Note 14: Debt of the audited consolidated financial statements and notes thereto included in the 2022 Annual Report for additional information regarding our existing indebtedness.

As of June 30, 2023, we had $746.1 million available under our $750.0 million revolving credit facility (the "Revolving Credit Facility"), net of $3.9 million of obligations in respect of outstanding letters of credit issued thereunder. Outstanding letters of credit are issued primarily for the benefit of certain operating activities. As of June 30, 2023, 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 June 30, 2023 and December 31, 2022, accrued interest totaled $48.9 million and $50.1 million, respectively.

11. Commitments and Contingencies

We are regularly involved in a number of claims and litigation matters that arise in the ordinary course of business. 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 condition, and/or cash flows.

12. Shareholders' Equity

Cash Dividends

In the three and six months ended June 30, 2023, we paid aggregate cash dividends of $18.3 million and $35.1 million, respectively, compared to $17.2 million in each of the three and six months ended June 30, 2022. On July 20, 2023, we announced that our Board of Directors approved a quarterly dividend of $0.12 per share, payable on August 23, 2023 to shareholders of record as of August 9, 2023.

12

Treasury Shares

From time to time, our Board of Directors has authorized various share repurchase programs, which may be modified or terminated by the Board at any time. On January 20, 2022, our Board of Directors authorized a $500.0 million ordinary share repurchase program (the “January 2022 Program”), which replaced the previous $500.0 million program approved in July 2019.

In the three and six months ended June 30, 2023, we repurchased 0.6 million ordinary shares (for an aggregate value of $25.1 million). We did not repurchase any ordinary shares under this program in the three months ended March 31, 2023. In the three and six months ended June 30, 2022, we repurchased 1.7 million ordinary shares (for an aggregate value of $78.9 million) and 2.8 million ordinary shares (for an aggregate value of $146.2 million), respectively. All share repurchases in these periods were made under the January 2022 Program. As of June 30, 2023, $199.4 million remained available for repurchase under the January 2022 Program.

Accumulated Other Comprehensive Loss

The following table presents the components of accumulated other comprehensive loss for the six months ended June 30, 2023:

	Cash Flow Hedges		Defined Benefit and Retiree Healthcare Plans		Accumulated Other Comprehensive Loss
Balance as of December 31, 2022	$	15,665	$	(31,929)	$	(16,264)
Other comprehensive income before reclassifications, net of tax	24,206		—		24,206
Reclassifications from accumulated other comprehensive loss, net of tax	(12,713)		617		(12,096)
Other comprehensive income	11,493		617		12,110
Balance as of June 30, 2023	$	27,158	$	(31,312)	$	(4,154)

The following table presents the amounts reclassified from accumulated other comprehensive loss for the three and six months ended June 30, 2023 and 2022:

	For the three months ended June 30,				For the six months ended June 30,				Affected Line in Condensed Consolidated Statements of Operations
Component	2023		2022		2023		2022
Derivative instruments designated and qualifying as cash flow hedges:
Foreign currency forward contracts	$	(4,394)	$	(9,476)	$	(11,033)	$	(13,740)	Net revenue (1)
Foreign currency forward contracts	(4,403)		(2,603)		(6,100)		(5,232)		Cost of revenue (1)
Total, before taxes	(8,797)		(12,079)		(17,133)		(18,972)		Income before taxes
Income tax effect	2,269		3,116		4,420		4,894		Provision for income taxes
Total, net of taxes	$	(6,528)	$	(8,963)	$	(12,713)	$	(14,078)	Net income
Defined benefit and retiree healthcare plans	$	311	$	519	$	848	$	1,130	Other, net
Income tax effect	(87)		(139)		(231)		(322)		Provision for income taxes
Total, net of taxes	$	224	$	380	$	617	$	808	Net income

___________________________________

(1)    Refer to Note 14: Derivative Instruments and Hedging Activities for additional information regarding amounts to be reclassified from accumulated other comprehensive loss in future periods.

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13. Fair Value Measures

Measured on a Recurring Basis

The fair values of our assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 are shown in the below table.

	June 30, 2023		December 31, 2022
Assets
Cash equivalents (Level 1)	$	380,130	$	860,034
Foreign currency forward contracts (Level 2)	43,046		31,126
Commodity forward contracts (Level 2)	2,011		4,181
Total	$	425,187	$	895,341
Liabilities
Foreign currency forward contracts (Level 2)	$	8,162	$	9,866
Commodity forward contracts (Level 2)	5,260		4,671
Total	$	13,422	$	14,537

Refer to Note 14: Derivative Instruments and Hedging Activities for additional information regarding our forward contracts. Cash equivalents consist of U.S. Government Treasury money market funds and are classified as Level 1 as they are exchange traded in an active market.

Measured on a Nonrecurring Basis

We evaluated our goodwill and other indefinite-lived intangible assets for impairment as of October 1, 2022 and determined that they were not impaired. In the three months ended June 30, 2023, we exited the Marine Business, as discussed further in Note 5: Restructuring and Other Charges, Net. We considered the exit of the Marine Business and determined that goodwill related to the Clean Energy Solutions reporting unit was not impaired as of the date of the exit. No other events or changes in circumstances occurred in the six months ended June 30, 2023 that would have triggered the need for an additional impairment review of our goodwill and other indefinite-lived intangible assets.

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 June 30, 2023 and December 31, 2022. All fair value measures presented are categorized in Level 2 of the fair value hierarchy.

	June 30, 2023				December 31, 2022
	Carrying Value(1)		Fair Value		Carrying Value(1)		Fair Value
Liabilities
Term Loan	$	—	$	—	$	446,834	$	443,483
5.625% Senior Notes	$	400,000	$	396,000	$	400,000	$	398,000
5.0% Senior Notes	$	700,000	$	679,910	$	700,000	$	684,250
4.375% Senior Notes	$	450,000	$	400,500	$	450,000	$	400,500
3.75% Senior Notes	$	750,000	$	635,625	$	750,000	$	626,250
4.0% Senior Notes	$	1,000,000	$	882,500	$	1,000,000	$	875,000
5.875% Senior Notes	$	500,000	$	481,250	$	500,000	$	473,750

___________________________________

(1)    Excluding any related debt discounts, premiums, and deferred financing costs.

In addition to the above, we hold certain equity investments that do not have readily determinable fair values for which we use the measurement alternative prescribed in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 321, Investments—Equity Securities. As of June 30, 2023 and December 31, 2022, we held equity investments under the measurement alternative of $18.3 million and $15.0 million, respectively, which are presented in other assets in the condensed consolidated balance sheets. There were no impairments or changes resulting from observable transactions for these investments in the three and six months ended June 30, 2023 and 2022 and no adjustments have been made to their carrying values as of June 30, 2023 and December 31, 2022.

14

14. Derivative Instruments and Hedging Activities

Hedges of Foreign Currency Risk

For the three and six months ended June 30, 2023 and 2022, amounts excluded from the assessment of effectiveness of our foreign currency forward contracts that are designated as cash flow hedges were not material. As of June 30, 2023, we estimated that $30.1 million of net gains will be reclassified from accumulated other comprehensive loss to earnings during the twelve-month period ending June 30, 2024.

As of June 30, 2023, we had the following outstanding foreign currency forward contracts:

Notional (in millions)	Effective Date(s)	Maturity Date(s)	Index (Exchange Rates)	Weighted-Average Strike Rate	Hedge Designation (1)
11.0 EUR	June 21, 2023	July 31, 2023	Euro ("EUR") to USD	1.09 USD	Not designated
375.0 EUR	Various from July 2021 to June 2023	Various from July 2023 to June 2025	EUR to USD	1.09 USD	Cash flow hedge
770.0 CNY	June 21, 2023	July 31, 2023	USD to Chinese Renminbi ("CNY")	7.16 CNY	Not designated
300.0 CNY	Various in January 2023	Various from July 2023 to September 2023	USD to CNY	6.74 CNY	Cash flow hedge
436.0 JPY	June 21, 2023	July 31, 2023	USD to Japanese Yen ("JPY")	141.47 JPY	Not designated
26,312.5 KRW	Various from August 2021 to June 2023	Various from July 2023 to May 2025	USD to Korean Won ("KRW")	1,273.23 KRW	Cash flow hedge
25.0 MYR	June 21, 2023	July 31, 2023	USD to Malaysian Ringgit ("MYR")	4.63 MYR	Not designated
4,318.3 MXN	Various from July 2021 to June 2023	Various from July 2023 to June 2025	USD to Mexican Peso ("MXN")	20.78 MXN	Cash flow hedge
5.2 GBP	June 21, 2023	July 31, 2023	British Pound Sterling ("GBP") to USD	1.27 USD	Not designated
58.6 GBP	Various from July 2021 to June 2023	Various from July 2023 to June 2025	GBP to USD	1.23 USD	Cash flow hedge

___________________________________

(1)    Derivative financial instruments not designated as hedges are used to manage our exposure to currency exchange rate risk. They are intended to preserve economic value, and they are not used for trading or speculative purposes.

Hedges of Commodity Risk

As of June 30, 2023, we had the following outstanding commodity forward contracts, none of which were designated for hedge accounting treatment in accordance with FASB ASC Topic 815, Derivatives and Hedging:

Commodity	Notional	Remaining Contracted Periods	Weighted-Average Strike Price Per Unit
Silver	862,162 troy oz.	July 2023 to May 2025	$23.31
Gold	7,169 troy oz.	July 2023 to May 2025	$1,932.48
Nickel	200,265 pounds	July 2023 to May 2025	$11.47
Aluminum	3,902,120 pounds	July 2023 to May 2025	$1.19
Copper	7,730,119 pounds	July 2023 to May 2025	$3.98
Platinum	9,047 troy oz.	July 2023 to May 2025	$982.97
Palladium	1,221 troy oz.	July 2023 to May 2025	$1,944.38

15

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 June 30, 2023 and December 31, 2022:

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	June 30, 2023		December 31, 2022		Balance Sheet Location	June 30, 2023		December 31, 2022
Derivatives designated as hedging instruments
Foreign currency forward contracts	Prepaid expenses and other current assets	$	35,280	$	27,114	Accrued expenses and other current liabilities	$	6,184	$	6,586
Foreign currency forward contracts	Other assets	6,357		3,763		Other long-term liabilities	1,908		3,280
Total		$	41,637	$	30,877		$	8,092	$	9,866
Derivatives not designated as hedging instruments
Commodity forward contracts	Prepaid expenses and other current assets	$	1,584	$	2,542	Accrued expenses and other current liabilities	$	4,120	$	4,066
Commodity forward contracts	Other assets	427		1,639		Other long-term liabilities	1,140		605
Foreign currency forward contracts	Prepaid expenses and other current assets	1,409		249		Accrued expenses and other current liabilities	70		—
Total		$	3,420	$	4,430		$	5,330	$	4,671

These fair value measurements were 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 and the condensed consolidated statements of comprehensive income for the three months ended June 30, 2023 and 2022:

Derivatives designated as hedging instruments	Amount of Deferred Gain/(Loss) Recognized in Other Comprehensive Income				Location of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	Amount of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income
	2023		2022			2023		2022
Foreign currency forward contracts	$	4,872	$	28,192	Net revenue	$	4,394	$	9,476
Foreign currency forward contracts	$	15,631	$	(3,765)	Cost of revenue	$	4,403	$	2,603

Derivatives not designated as hedging instruments	Amount of (Loss)/Gain Recognized in Net Income				Location of (Loss)/Gain Recognized in Net Income
	2023		2022
Commodity forward contracts	$	(6,269)	$	(18,254)	Other, net
Foreign currency forward contracts	$	4,423	$	3,165	Other, net

The following tables present the effect of our derivative financial instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income for the six months ended June 30, 2023 and 2022:

Derivatives designated as hedging instruments	Amount of Deferred Gain Recognized in Other Comprehensive Income				Location of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	Amount of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income
	2023		2022			2023		2022
Foreign currency forward contracts	$	1,284	$	33,778	Net revenue	$	11,033	$	13,740
Foreign currency forward contracts	$	31,339	$	1,380	Cost of revenue	$	6,100	$	5,232

16

Derivatives not designated as hedging instruments	Amount of (Loss)/Gain Recognized in Net Income				Location of (Loss)/Gain Recognized in Net Income
	2023		2022
Commodity forward contracts	$	(4,370)	$	(8,830)	Other, net
Foreign currency forward contracts	$	4,607	$	1,922	Other, net

Credit Risk Related Contingent Features

We have agreements with our derivative counterparties that contain a provision whereby if we default on our indebtedness and repayment of the indebtedness has been accelerated by the lender, then we could also be declared in default on our derivative obligations.

As of June 30, 2023, the termination value of outstanding derivatives in a liability position, excluding any adjustment for non-performance risk, was $13.6 million. As of June 30, 2023, we had 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.

15. Acquisitions and Divestitures

Acquisitions

Elastic M2M

On February 11, 2022, we acquired all of the equity interests of Elastic M2M Inc. ("Elastic M2M") for an aggregate cash purchase price of $51.6 million, subject to certain post-closing items. In addition to the aggregate cash purchase price, the previous shareholders of Elastic M2M are entitled to up to $30.0 million of additional acquisition-related incentive compensation, which was pending the completion of certain technical milestones in fiscal year 2022 and achievement of financial targets in fiscal years 2022 and 2023. All technical milestones were completed in fiscal year 2022. As of December 31, 2022, we had recognized $24.7 million of this acquisition-related incentive compensation. In the three and six months ended June 30, 2023, we recognized an additional $0.2 million and $3.5 million, respectively, of this acquisition-related incentive compensation. This acquisition-related incentive compensation is recorded in restructuring and other charges, net.

Elastic M2M is an innovator of connected intelligence for operational assets across heavy-duty transport, warehouse, supply chain and logistics, industrial, light-duty passenger car, and a variety of other industry segments. Elastic M2M primarily serves telematics service providers and resellers, enabling them to leverage Elastic M2M’s cloud platform and analytics capabilities to deliver sensor-based operational insights to their end users. This acquisition augments our cloud capabilities critical to delivering actionable sensor-based insights, an increasingly important capability in this fast-growing industry segment. We are integrating Elastic M2M into the Performance Sensing reportable segment.

The allocation of the purchase price related to this acquisition was finalized in the three months ended March 31, 2023. The following table summarizes the final allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed:

Net working capital, excluding cash	$	35
Goodwill	28,211
Other intangible assets	27,700
Deferred income tax liabilities	(5,925)
Fair value of net assets acquired, excluding cash and cash equivalents	50,021
Cash and cash equivalents	1,597
Fair value of net assets acquired	$	51,618

The goodwill recognized as a result of this acquisition represents future economic benefits expected to arise from synergies from combining operations and the extension of existing customer relationships. The goodwill recognized in this acquisition will not be deductible for tax purposes.

17

In connection with the allocation of purchase price to the assets acquired and liabilities assumed, we identified certain definite-lived intangible assets. The following table presents the acquired intangible assets, their estimated fair values, and weighted-average lives:

	Acquisition Date Fair Value		Weighted-Average Lives (years)
Acquired definite-lived intangible assets
Customer relationships	$	17,500	13
Completed technologies	10,200		10
Total definite-lived intangible assets acquired	$	27,700	12

The definite-lived intangible assets were valued using the income approach. We primarily used the relief-from-royalty method to value completed technologies, and we used the multi-period excess earnings method to value customer relationships. These valuation methods incorporate assumptions including expected discounted future net cash flows resulting from either the future estimated after-tax royalty payments avoided as a result of owning the completed technologies or the future earnings related to existing customer relationships.

Dynapower

On July 12, 2022, we completed the acquisition of all of the outstanding equity interests of DP Acquisition Corp ("Dynapower"), a leader in power conversion systems including inverters, converters, and rectifiers for renewable energy generation, green hydrogen production, electric vehicle charging stations, and microgrid applications, as well as industrial and defense applications, for an aggregate cash purchase price of $577.5 million, subject to certain post-closing items. Dynapower also provides aftermarket sales and service to maintain its equipment in the field.

Dynapower is a foundational addition to our Clean Energy Solutions strategy and complements our recent acquisitions of GIGAVAC, Lithium Balance, and Spear. We are integrating Dynapower into our Sensing Solutions reportable segment.

We recorded measurement period adjustments in the three months ended June 30, 2023 that predominantly reflected an updated valuation of definite-lived intangible assets. Accordingly, definite-lived intangible assets increased $57.2 million (primarily customer relationships). Along with other adjustments, including the associated deferred income tax liability on acquired intangibles, goodwill decreased $41.0 million. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed:

Net working capital, excluding cash	$	12,514
Property, plant and equipment	1,846
Goodwill	377,267
Other intangible assets	221,600
Other assets	1,656
Deferred income tax liabilities	(40,785)
Other long-term liabilities	(1,035)
Fair value of net assets acquired, excluding cash and cash equivalents	573,063
Cash and cash equivalents	4,410
Fair value of net assets acquired	$	577,473

The allocation of purchase price of Dynapower is preliminary and is based on management’s judgments after evaluating several factors, including preliminary valuation assessments of intangible assets. The final allocation of the purchase price to the assets acquired will be completed when the final valuations are completed. The preliminary goodwill recognized as a result of this acquisition represents future economic benefits expected to arise from synergies from combining operations and the extension of existing customer relationships. The goodwill recognized in this acquisition will not be deductible for tax purposes.

18

In connection with the preliminary allocation of purchase price to the assets acquired and liabilities assumed, we identified certain definite-lived intangible assets. The following table presents the acquired intangible assets, their estimated fair values, and weighted-average lives:

	Acquisition Date Fair Value		Weighted-Average Lives (years)
Acquired definite-lived intangible assets
Customer relationships	$	79,800	16
Backlog	15,500		3
Completed technologies	92,100		15
Tradenames	34,200		18
Total definite-lived intangible assets acquired	$	221,600	15

The definite-lived intangible assets were valued using the income approach. We primarily used the relief-from-royalty method to value completed technologies and tradenames, and we used the multi-period excess earnings method to value customer relationships. These valuation methods incorporate assumptions including expected discounted future net cash flows resulting from either the future estimated after-tax royalty payments avoided as a result of owning the completed technologies or the future earnings related to existing customer relationships.

Divestiture - Qinex Business

On May 27, 2022, we executed an asset purchase agreement (the "APA") whereby we agreed to sell various assets and liabilities comprising our semiconductor test and thermal business (collectively, the "Qinex Business") to LTI Holdings, Inc. ("LTI") in exchange for consideration of approximately $219.0 million, subject to working capital and other adjustments. Concurrent with the execution of the APA, the parties entered into a Contract Manufacturing Agreement ("CMA") and a Transition Services Agreement ("TSA"), each for nominal consideration.

The CMA commenced at closing of the transaction ("Closing") and had a term of either six or nine months, depending on the manufacturing site. LTI also had the option of extending each contract for an additional three months. The period from Closing to the end of the CMA term (including extensions, if any) is referred to as the "Transition Period." The terms of the CMA required that we provide manufacturing and distribution services for the Transition Period. The TSA commenced at Closing and had a term that varied depending on the nature of the support services, ranging from one month to the entirety of the Transition Period. The terms of the TSA required that we provide various forms of commercial, operational, and back-office support to LTI. The Transition Period ended in the three months ended March 31, 2023.

Closing occurred in July 2022, at which time assets of approximately $70 million (including allocated goodwill of $45 million) and liabilities of approximately $2 million transferred to LTI. Transferred assets and liabilities excluded inventories and accounts payable, which transferred to LTI at the end of the Transition Period. We received cash consideration of $198.8 million at Closing and recognized a pre-tax gain of $135.1 million in the three months ended September 30, 2022. Cash consideration received at Closing excluded amounts held in escrow until various milestones were met through the Transition Period. In the three months ended June 30, 2023, we received an escrow payment of $15.0 million, which includes $10.0 million (presented in cash flows from operating activities) related to the transfer of inventory. Approximately $4.0 million remains in escrow as of June 30, 2023.

The Qinex Business manufactured semiconductor burn-in test sockets and thermal control solutions and was formed through the combination of Sensata’s semiconductor interconnect business with Wells-CTI in 2012. The Qinex Business was included in our Sensing Solutions segment (and Industrial Solutions reporting unit). We allocated goodwill to the Qinex Business based on its fair value relative to the total fair value of the Industrial Solutions reporting unit.

16. Segment Reporting

We present financial information for two reportable segments, Performance Sensing and Sensing Solutions. The Performance Sensing reportable segment consists of two operating segments, Automotive and HVOR, which meet the criteria for aggregation in FASB ASC Topic 280, Segment Reporting. The Sensing Solutions reportable segment is also an operating segment. Effective April 1, 2023, we moved our material handling products from the HVOR operating segment (in the Performance Sensing reportable segment) to the Sensing Solutions operating segment to align with new management reporting. This product move resulted in a reallocation of $57.1 million of goodwill from the HVOR reporting unit to the Industrial Solutions reporting unit based on its fair value relative to the total fair value of the HVOR reporting unit.

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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 operating income, which excludes amortization of intangible assets, restructuring and other charges, net, certain costs associated with our strategic megatrend initiatives, and certain corporate costs or credits not associated with the operations of the segment, including share-based compensation expense and a portion of depreciation expense associated with assets recognized in connection with acquisitions. Corporate and other expenses excluded from an operating (and reportable) 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 operating income, 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, operating income or other measures of financial performance prepared in accordance with U.S. GAAP. The accounting policies of each of our operating and reportable segments are materially consistent with those described in Note 2: Significant Accounting Policies of the audited consolidated financial statements and notes thereto included in our 2022 Annual Report.

The following table presents net revenue and segment operating income for our reportable segments and other operating results not allocated to our reportable segments for the three and six months ended June 30, 2023 and 2022. The amounts previously reported in the table below for the three and six months ended June 30, 2022 have been retrospectively recast to reflect the move of the material handling products between operating segments as described above. In addition, the six months ended June 30, 2023 includes amounts for the three months ended March 31, 2023 that have been retrospectively adjusted for this change.

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net revenue:
Performance Sensing	$	757,444	$	731,645	$	1,495,712	$	1,434,340
Sensing Solutions	304,668		288,903		564,575		561,978
Total net revenue	$	1,062,112	$	1,020,548	$	2,060,287	$	1,996,318
Segment operating income (as defined above):
Performance Sensing	$	191,147	$	179,293	$	373,887	$	353,507
Sensing Solutions	84,152		85,714		159,468		164,653
Total segment operating income	275,299		265,007		533,355		518,160
Corporate and other	(81,464)		(76,362)		(143,905)		(152,485)
Amortization of intangible assets	(54,563)		(36,805)		(95,337)		(74,172)
Restructuring and other charges, net	(21,259)		(12,897)		(27,258)		(26,630)
Operating income	118,013		138,943		266,855		264,873
Interest expense, net	(38,105)		(44,842)		(78,196)		(90,287)
Other, net	(10,924)		(39,240)		(9,532)		(89,696)
Income before taxes	$	68,984	$	54,861	$	179,127	$	84,890

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Cautionary Statements Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as "may," "will," "could," "should," "expect," "anticipate," "believe," "estimate," "predict," "project," "forecast," "continue," "intend," "plan," "potential," "opportunity," "guidance," and similar terms or phrases. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives, business and market outlook, megatrends, priorities, growth, shareholder value, capital expenditures, cash flows, demand for products and services, share repurchases, and Sensata’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. These statements are subject to risks, uncertainties, and other important factors relating to our operations and business environment, and we can give no assurances that these forward-looking statements will prove to be correct.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements, including, but not limited to, risks related to public health crises, instability and changes in the global markets, supplier interruption or non-performance, the acquisition or disposition of businesses, adverse conditions or competition in the industries upon which we are dependent, intellectual property, product liability, warranty and recall claims, market acceptance of new product introductions and product innovations, labor disruptions or increased labor costs, and changes in existing environmental or safety laws, regulations, and programs.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks, and potential events including, but not limited to, those described in Item 1A: Risk Factors included in our 2022 Annual Report and as may be updated from time to time in Item 1A: Risk Factors included in our quarterly reports on Form 10-Q or other subsequent filings with the United States Securities and Exchange Commission. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations supplements, and should be read in conjunction with, the discussion in Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations included in our 2022 Annual Report. The following discussion should also be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q. Amounts and percentages in the following discussions have been calculated based on unrounded numbers. Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

Overview

Net revenue for the three months ended June 30, 2023 was $1,062.1 million, an increase of 4.1% compared to $1,020.5 million in the three months ended June 30, 2022. Excluding a decrease of 1.4% attributed to changes in foreign currency exchange rates and an increase of 2.1% due to the net effect of acquisitions and divestitures, net revenue increased 3.4% on an organic basis. Organic revenue growth (or decline), discussed throughout this Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations (this "MD&A"), is a financial measure not presented in accordance with U.S. GAAP. Refer to Non-GAAP Financial Measures included elsewhere in this MD&A for additional information regarding our use of organic revenue growth (or decline).

Net revenue for the six months ended June 30, 2023 was $2,060.3 million, an increase of 3.2% compared to $1,996.3 million in the six months ended June 30, 2022. Excluding a decrease of 1.9% attributed to changes in foreign currency exchange rates and an increase of 1.1% due to the net effect of acquisitions and divestitures, net revenue increased 4.0% on an organic basis.

Operating income for the three months ended June 30, 2023 decreased $20.9 million, or 15.1%, to $118.0 million (11.1% of net revenue) from $138.9 million (13.6% of net revenue) in the three months ended June 30, 2022. This decline was largely driven by our decision to exit the Marine Business in the second quarter of 2023 (reflecting $38.3 million of charges incurred, including those related to accelerated amortization of intangible assets, write-down of inventory, and other restructuring charges), partially offset by the net impacts of pricing recoveries from customers, inflation on material and logistics costs, and volume leverage. Refer to Note 5: Restructuring and Other Charges, Net, of our unaudited condensed consolidated financial statements, included elsewhere in this Quarterly Report on Form 10-Q, for additional information regarding the exit of the Marine Business.

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Operating income for the six months ended June 30, 2023 increased $2.0 million, or 0.7%, to $266.9 million (13.0% of net revenue) compared to $264.9 million (13.3% of net revenue) in the six months ended June 30, 2022, as the charges incurred related to the Marine Business were more than offset by the net impacts of pricing recoveries from customers, inflation on material and logistics costs, and volume leverage.

Refer to Results of Operations included elsewhere in this MD&A for additional discussion of our earnings results for the three and six months ended June 30, 2023 compared to the prior year period.

We generated $212.6 million of operating cash flows in the six months ended June 30, 2023, ending the quarter with $857.3 million in cash and cash equivalents. In the six months ended June 30, 2023, we used approximately $448.4 million to pay down the remaining balance on our variable-rate Term Loan, bringing our gross indebtedness to $3.8 billion as of June 30, 2023 (a net leverage ratio of 3.2x) compared to $4.3 billion as of December 31, 2022 (a net leverage ratio of 3.4x). In the six months ended June 30, 2023, we used cash of approximately $84.4 million for capital expenditures, $35.1 million for payment of dividends, and $25.1 million for share repurchases as part of our share repurchase plan. In the three months ended June 30, 2023, we increased our cash dividends to $0.12 per share, first paid to shareholders of record in May 2023. In fiscal year 2023, we will continue to return capital to shareholders through our dividend and opportunistic share repurchases. We expect improving free cash flow will naturally allow leverage to decline and returns on invested capital to improve over time.

Results of Operations

The table below presents our historical results of operations, in millions of dollars and as a percentage of net revenue, for the three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022. We have derived the results of operations from the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Amounts and percentages in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

	For the three months ended								For the six months ended
	June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
	Amount		Margin (1)		Amount		Margin (1)		Amount		Margin (1)		Amount		Margin (1)
Net revenue:
Performance Sensing	$	757.4	71.3	%	$	731.6	71.7	%	$	1,495.7	72.6	%	$	1,434.3	71.8	%
Sensing Solutions	304.7		28.7		288.9		28.3		564.6		27.4		562.0		28.2
Net revenue	1,062.1		100.0		1,020.5		100.0		2,060.3		100.0		1,996.3		100.0
Operating costs and expenses	944.1		88.9		881.6		86.4		1,793.4		87.0		1,731.4		86.7
Operating income	118.0		11.1		138.9		13.6		266.9		13.0		264.9		13.3
Interest expense, net	(38.1)		(3.6)		(44.8)		(4.4)		(78.2)		(3.8)		(90.3)		(4.5)
Other, net	(10.9)		(1.0)		(39.2)		(3.8)		(9.5)		(0.5)		(89.7)		(4.5)
Income before taxes	69.0		6.5		54.9		5.4		179.1		8.7		84.9		4.3
Provision for income taxes	19.9		1.9		20.0		2.0		43.6		2.1		27.6		1.4
Net income	$	49.1	4.6	%	$	34.8	3.4	%	$	135.5	6.6	%	$	57.3	2.9	%

___________________________________

(1)    Represents the amount presented divided by total net revenue.

Net Revenue

Net revenue for the three months ended June 30, 2023 increased 4.1% compared to the prior period. Net revenue increased 3.4% on an organic basis, which excludes a decrease of 1.4% attributed to changes in foreign currency exchange rates and an increase of 2.1% due to the net effect of acquisitions and divestitures.

Net revenue for the six months ended June 30, 2023 increased 3.2% compared to the prior period. Net revenue increased 4.0% on an organic basis, which excludes a decrease of 1.9% attributed to changes in foreign currency exchange rates and an increase of 1.1% due to the net effect of acquisitions and divestitures.

Effective April 1, 2023, we moved our material handling products from the HVOR operating segment (in the Performance Sensing reportable segment) to the Sensing Solutions operating segment to align with new management reporting. In the table above and the discussion below, the revenue previously reported for our Performance Sensing and Sensing Solutions reportable segments for the three and six months ended June 30, 2022 have been retrospectively recast to reflect this change. In addition, the six months ended June 30, 2023 includes amounts for the three months ended March 31, 2023 that have been retrospectively adjusted for this change.

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Performance Sensing

Performance Sensing net revenue for the three months ended June 30, 2023 increased 3.5% compared to the prior period. Excluding a decrease of 1.7% attributed to changes in foreign currency exchange rates, Performance Sensing net revenue increased 5.2% on an organic basis. Both automotive and HVOR contributed to these results as discussed below.

Automotive net revenue for the three months ended June 30, 2023 grew 4.7% compared to the prior period. Excluding a decline of 2.0% attributed to changes in foreign currency exchange rates, automotive net revenue grew 6.7% on an organic basis, primarily due to market growth and improved pricing. HVOR net revenue for the three months ended June 30, 2023 grew 0.8% compared to the prior period. Excluding a decline of 1.0% attributed to changes in foreign currency exchange rates, HVOR net revenue grew 1.8% on an organic basis, primarily due to market growth, partially offset by channel inventory de-stocking.

Performance Sensing net revenue for the six months ended June 30, 2023 increased 4.3% compared to the prior period. Excluding a decrease of 2.1% attributed to changes in foreign currency exchange rates and an increase of 0.2% due to the effect of acquisitions, Performance Sensing net revenue increased 6.2% on an organic basis. Both automotive and HVOR contributed to these results as discussed below.

Automotive net revenue for the six months ended June 30, 2023 grew 3.8% compared to the prior period. Excluding a decrease of 2.5% attributed to changes in foreign currency exchange rates, automotive net revenue grew 6.3% on an organic basis, primarily due to market growth and improved pricing. HVOR net revenue for the six months ended June 30, 2023 grew 5.4% compared to the prior period. Excluding a decrease of 1.4% attributed to changes in foreign currency exchange rates and an increase of 0.7% due to the effect of acquisitions, HVOR net revenue grew 6.1% on an organic basis, primarily due to market growth and outgrowth, partially offset by channel inventory de-stocking.

Sensing Solutions

Sensing Solutions net revenue for the three months ended June 30, 2023 increased 5.5% compared to the prior period. Excluding a decline of 0.9% attributed to changes in foreign currency exchange rates and an increase of 7.6% due to the net effect of acquisitions and divestitures, Sensing Solutions net revenue declined 1.2% on an organic basis, which primarily reflects weakness in our appliance and HVAC markets, partially offset by growth in the aerospace markets.

Sensing Solutions net revenue for the six months ended June 30, 2023 increased 0.5% compared to the prior period. Excluding a decline of 1.2% attributed to changes in foreign currency exchange rates and an increase of 3.3% due to the net effect of acquisitions and divestitures, Sensing Solutions net revenue declined 1.6% on an organic basis, which primarily reflects weakness in our appliance and HVAC markets, partially offset by growth in the aerospace markets.

Operating costs and expenses

Operating costs and expenses for the three and six months ended June 30, 2023 and 2022 are presented, in millions of dollars and as a percentage of net revenue, in the following table. Amounts and percentages in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

	For the three months ended								For the six months ended
	June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
	Amount		Margin (1)		Amount		Margin (1)		Amount		Margin (1)		Amount		Margin (1)
Operating costs and expenses:
Cost of revenue	$	732.1	68.9	%	$	686.6	67.3	%	$	1,402.6	68.1	%	$	1,343.7	67.3	%
Research and development	44.9		4.2		48.0		4.7		90.8		4.4		94.0		4.7
Selling, general and administrative	91.3		8.6		97.3		9.5		177.5		8.6		193.0		9.7
Amortization of intangible assets	54.6		5.1		36.8		3.6		95.3		4.6		74.2		3.7
Restructuring and other charges, net	21.3		2.0		12.9		1.3		27.3		1.3		26.6		1.3
Total operating costs and expenses	$	944.1	88.9	%	$	881.6	86.4	%	$	1,793.4	87.0	%	$	1,731.4	86.7	%

___________________________________

(1)    Represents the amount presented divided by total net revenue.

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Cost of revenue

For the three months ended June 30, 2023, cost of revenue as a percentage of net revenue increased from the prior period, primarily due to (1) the $10.5 million write-down of inventory as a result of our decision to exit the Marine Business, (2) the unfavorable effect of acquisitions and divestitures on gross margin, (3) the unfavorable effect of product mix, and (4) the unfavorable effect of changes in foreign currency exchange rates, partially offset by the net impacts of pricing recoveries from customers, inflation on material and logistics costs, and volume leverage. Refer to Note 5: Restructuring and Other Charges, Net, of our unaudited condensed consolidated financial statements, included elsewhere in this Quarterly Report on Form 10-Q, for additional details regarding the charges related to the exit of the Marine Business.

For the six months ended June 30, 2023, cost of revenue as a percentage of net revenue increased from the prior period, primarily due to (1) the unfavorable effect of product mix, (2) the $10.5 million write-down of inventory as a result of our decision to exit the Marine Business, (3) the unfavorable effect of acquisitions and divestitures on gross margin, and (4) the unfavorable effect of changes in foreign currency exchange rates, partially offset by the net impacts of pricing recoveries, inflation, and volume leverage.

Research and development expense

For the three months ended June 30, 2023, research and development ("R&D") expense decreased from the prior period, primarily due to lower costs as a result of repositioning actions taken in fiscal year 2022, partially offset by higher spend to support increased revenue.

For the six months ended June 30, 2023, R&D expense decreased from the prior period, primarily due to (1) lower costs as a result of repositioning actions taken in fiscal year 2022 and (2) the favorable effect of changes in foreign currency exchange rates, partially offset by higher spend to support increased revenue.

Selling, general and administrative expense

For the three months ended June 30, 2023, selling, general and administrative ("SG&A") expense decreased from the prior period, primarily as a result of (1) cost savings as a result of repositioning actions taken in fiscal year 2022, and (2) lower transaction costs as a result of reduced mergers and acquisitions activity, partially offset by (1) increased SG&A expense from our acquisitions (net of divestitures) and (2) increased share-based compensation expense. Refer to Note 15: Acquisitions and Divestitures and Note 4: Share-Based Payment Plans of our unaudited condensed consolidated financial statements, included elsewhere in this Quarterly Report on Form 10-Q, for additional information regarding acquired businesses and share-based compensation.

For the six months ended June 30, 2023, SG&A expense decreased from the prior period, primarily as a result of (1) cost savings as a result of repositioning actions taken in fiscal year 2022, (2) lower transaction costs as a result of reduced mergers and acquisitions activity, and (3) the favorable effect of changes in foreign currency exchange rates, partially offset by increased SG&A expense from our acquisitions (net of divestitures).

Amortization of intangible assets

For the three and six months ended June 30, 2023, amortization of intangible assets increased from the prior period, primarily due to (1) a charge of $13.5 million for accelerated amortization of intangible assets as a result of our exit from the Marine Business and (2) increased amortization due to newly acquired intangible assets. Refer to Note 5: Restructuring and Other Charges, Net, of our unaudited condensed consolidated financial statements, included elsewhere in this Quarterly Report on Form 10-Q, for additional details regarding the charges regarding the exit of the Marine Business.

Restructuring and other charges, net

For the three months ended June 30, 2023, restructuring and other charges, net increased from the prior period, primarily due to (1) charges incurred as a result of our exit from the Marine Business and (2) an increase in severance charges that were not the result of initiation of a larger restructuring plan, partially offset by lower acquisition-related deferred compensation. Refer to Note 5: Restructuring and Other Charges, Net of our unaudited condensed consolidated financial statements, included elsewhere in this Quarterly Report on Form 10-Q, for additional information regarding the components of restructuring and other charges, net, including the exit of the Marine Business.

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For the six months ended June 30, 2023, restructuring and other charges, net increased slightly from the prior period, as negative factors such as (1) charges incurred as a result of our exit from the Marine Business, (2) the non-recurrence of a gain recognized in the first quarter of 2022 related to the reduction of the liability for contingent consideration for Spear, and (3) an increase in severance charges that were not the result of initiation of a larger restructuring plan, were largely offset by positive factors such as (1) a reduction in expense for acquisition-related compensation arrangements and (2) the gain on sale of a business in the first quarter of 2023.

Operating income

For the three months ended June 30, 2023, operating income decreased compared to the prior period, primarily due to (1) $38.3 million of charges incurred as a result of our exit from the Marine Business, (2) the unfavorable effect of changes in foreign currency exchange rates, (3) the dilutive impact of acquisitions and divestitures, and (4) unfavorable product mix, partially offset by (1) the net impacts of pricing recoveries, inflation, and volume leverage, (2) cost savings as a result of repositioning actions taken in fiscal year 2022, and (3) lower acquisition-related deferred compensation.

For the six months ended June 30, 2023, operating income increased compared to the prior period, primarily due to (1) the net impacts of pricing recoveries, inflation, and volume leverage, (2) cost savings as a result of repositioning actions taken in fiscal year 2022, (3) lower acquisition-related deferred compensation, and (4) the gain on the sale of a business in the first quarter of 2023. These drivers were partially offset by (1) $38.3 million of charges incurred as a result of our exit from the Marine Business, (2) the dilutive impact of acquisitions and divestitures, (3) the unfavorable effect of changes in foreign currency exchange rates, (4) unfavorable product mix, (5) the impact of the non-recurrence of a gain recognized in the first quarter of 2022 related to the reduction of the liability for contingent consideration for Spear, and (6) an increase in severance charges that were not the result of initiation of a larger restructuring plan.

Interest expense, net

For the three months ended June 30, 2023, interest expense, net decreased $6.7 million from the prior period, primarily due to (1) increased interest income as a result of increasing interest rates and (2) lower interest expense on the Term Loan due to the early payment on the Term Loan in the first and second quarters of 2023, partially offset by increased interest expense due to the net impact of the early redemption of the 4.875% Senior Notes and the issuance of the 5.875% Senior Notes in the third quarter of 2022. Refer to Note 14: Debt of the audited consolidated financial statements and notes thereto included in the 2022 Annual Report and Note 10: Debt, of our unaudited condensed consolidated financial statements, included elsewhere in this Quarterly Report on Form 10-Q, for additional information regarding these debt transactions.

For the six months ended June 30, 2023, interest expense, net decreased $12.1 million from the prior period, primarily due to increased interest income as a result of increasing interest rates, partially offset by increased interest expense due to the net impact of the early redemption of the 4.875% Senior Notes and the issuance of the 5.875% Senior Notes in the third quarter of 2022.

Other, net

Other, net primarily includes currency remeasurement gains and losses on net monetary assets, gains and losses on foreign currency and commodity forward contracts not designated as hedging instruments, mark-to-market gains and losses on investments, losses related to debt refinancing, and the portion of our net periodic benefit cost excluding service cost. Refer to Note 6: Other, Net of our unaudited condensed consolidated financial statements, included elsewhere in this Quarterly Report on Form 10-Q, for more details regarding the components of other, net.

For the three months ended June 30, 2023, other, net represented a net loss of $10.9 million, a favorable impact on earnings of $28.3 million compared to a net loss of $39.2 million in the prior period. This favorable impact was primarily due to (1) the non-recurrence of mark-to-market losses on equity investments, primarily our investment in Quanergy Systems Inc. ("Quanergy"), in the second quarter of 2022, (2) lower losses on commodity forward contracts, and (3) lower currency remeasurement loss on net monetary assets.

For the six months ended June 30, 2023, other, net represented a net loss of $9.5 million, a favorable impact on earnings of $80.2 million compared to a net loss of $89.7 million in the prior period. This was largely due to (1) the non-recurrence of mark-to-market losses on equity investments, primarily our investment in Quanergy, in the six months ended June 30, 2022, (2) the combined impact of lower currency remeasurement loss on net monetary assets and higher gains on foreign currency forward contracts, and (3) lower losses on commodity forward contracts.

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Provision for income taxes

The provision for income taxes consists of (1) current tax expense, which relates primarily to our profitable operations in tax jurisdictions with limited or no net operating loss carryforwards and withholding taxes related to management fees, royalties, and the repatriation of foreign earnings; and (2) deferred tax expense (or benefit), which represents adjustments in book-to-tax basis differences primarily related to (a) book versus tax basis in intangible assets, (b) changes in net operating loss carryforwards, and (c) changes in withholding taxes on unremitted earnings. Other items impacting deferred tax expense include changes in tax rates and changes in our assessment of the realizability of our deferred tax assets.

For the three months ended June 30, 2023, the provision for income taxes decreased $0.1 million from the prior period, predominantly due to the inability to benefit the 2022 mark-to-market loss on our investment in Quanergy.

For the six months ended June 30, 2023, the provision for income taxes increased $16.0 million from the prior period, predominantly due to the increase in profit before tax and the inability to benefit the 2022 mark-to-market loss on our investment in Quanergy.

Non-GAAP Financial Measures

This section provides additional information regarding certain non-GAAP financial measures, including organic revenue growth (or decline), adjusted operating income, adjusted operating margin, adjusted net income, adjusted earnings per share ("EPS"), free cash flow, net leverage ratio, and adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA"), which are used by our management, Board of Directors, and investors. We use these non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance, and as a factor in determining compensation for certain employees. 

The use of our non-GAAP financial measures has limitations. They should be considered as supplemental in nature and are not intended to be considered in isolation from, or as an alternative to, reported net revenue growth (or decline), operating income, operating margin, net income, diluted EPS, net cash provided by operating activities, or total debt, finance lease and other financing obligations, respectively, calculated in accordance with U.S. GAAP. In addition, our measures of organic revenue growth (or decline), adjusted operating income, adjusted operating margin, adjusted net income, adjusted EPS, free cash flow, net leverage ratio, and adjusted EBITDA may not be the same as, or comparable to, similar non-GAAP financial measures presented by other companies.

Organic revenue growth (or decline) and market outgrowth

Organic revenue growth (or decline) is defined as the reported percentage change in net revenue, calculated in accordance with U.S. GAAP, excluding the period-over-period impact of foreign currency exchange rate differences as well as the net impact of material acquisitions and divestitures for the 12-month period following the respective transaction date(s).

We believe that organic revenue growth (or decline) provides investors with helpful information with respect to our operating performance, and we use organic revenue growth (or decline) to evaluate our ongoing operations as well as for internal planning and forecasting purposes. We believe that organic revenue growth (or decline) provides useful information in evaluating the results of our business because it excludes items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior-year period.

Market outgrowth is calculated as organic revenue growth less our weighted market growth. Our weighted market growth is calculated using our regional and platform sales mix, as applicable, in the corresponding prior period. Market outgrowth is used to describe the impact of an increasing quantity and value of our products used in customer systems and applications above market growth. We believe this provides a more meaningful comparison of our revenue growth relative to the markets we serve.

Adjusted operating income, adjusted operating margin, adjusted net income, and adjusted EPS

We define adjusted operating income as operating income, determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are described under the heading Non-GAAP Adjustments below. Adjusted operating margin is calculated by dividing adjusted operating income by net revenue determined in accordance with U.S. GAAP. We define adjusted net income as follows: net income (or loss) determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are described under the heading Non-GAAP Adjustments below. Adjusted EPS is calculated by dividing adjusted net income by the number of diluted weighted-average ordinary shares outstanding in the period.

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We may also refer to certain of these measures, or changes in these measures, on a constant currency basis. Adjusted operating margin calculated on a constant currency basis is determined by stating revenues and expenses at prior period foreign currency exchange rates and excludes the impact of foreign currency exchange rates on all hedges. Adjusted EPS on a constant currency basis is determined in the same manner as adjusted operating margin, but also excludes the change in gain or loss on the remeasurement of monetary assets and liabilities.

Management uses adjusted operating income, adjusted operating margin, adjusted net income, and adjusted EPS (and the constant currency equivalent of each) as measures of operating performance, for planning purposes (including the preparation of our annual operating budget), to allocate resources to enhance the financial performance of our business, to evaluate the effectiveness of our business strategies, in communications with our Board of Directors and investors concerning our financial performance, and as factors in determining compensation for certain employees. We believe investors and securities analysts also use these non-GAAP financial measures in their evaluation of our performance and the performance of other similar companies. These non-GAAP financial measures are not measures of liquidity.

Free cash flow

Free cash flow is defined as net cash provided by operating activities less additions to property, plant and equipment and capitalized software. We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to, among other things, fund acquisitions, repurchase ordinary shares, and (or) accelerate the repayment of debt obligations.

Adjusted EBITDA

Adjusted EBITDA is defined as net income (or loss), determined in accordance with U.S. GAAP, excluding interest expense, net, provision for (or benefit from) income taxes, depreciation expense, amortization of intangible assets, and the following non-GAAP adjustments, if applicable: (1) restructuring related and other, (2) financing and other transaction costs, and (3) deferred loss or gain on derivative instruments. Refer to Non-GAAP Adjustments below for additional discussion of these adjustments. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Net leverage ratio

Net leverage ratio represents net debt (total debt, finance lease and other financing obligations less cash and cash equivalents) divided by last twelve months ("LTM") adjusted EBITDA. We believe that the net leverage ratio is a useful measure to management and investors in understanding trends in our overall financial condition.

Non-GAAP adjustments

Many of our non-GAAP adjustments relate to a series of strategic initiatives developed by our management aimed at better positioning us for future revenue growth and an improved cost structure. These initiatives have been modified from time to time to reflect changes in overall market conditions and the competitive environment facing our business. These initiatives include, among other items, acquisitions, divestitures, restructurings of certain business, supply chain or corporate activities, and various financing transactions. We describe these adjustments in more detail below, each of which is net of current tax impacts, as applicable.

•Restructuring related and other: includes net charges related to certain restructuring and other exit activities as well as other costs (or income) that we believe are either unique or unusual to the identified reporting period, and that we believe impact comparisons to prior period operating results. Such costs include charges related to optimization of our manufacturing processes to increase productivity. This type of activity occurs periodically, however each action is unique, discrete, and driven by various facts and circumstances. Such amounts are excluded from internal financial statements and analyses that management uses in connection with financial planning and in its review and assessment of our operating and financial performance, including the performance of our segments.

•Financing and other transaction costs: includes losses or gains related to debt financing transactions, losses or gains related to the divestiture of a business, costs incurred, including for legal, accounting, and other professional services, that are directly related to an acquisition, divestiture, or equity financing transaction, mark-to-market losses or gains on our equity investments, expenses related to compensation arrangements entered into concurrent with the closing of an acquisition, and gains related to changes in the fair value of acquisition-related contingent consideration amounts.

•Deferred loss or gain on derivative instruments: includes unrealized losses or gains on derivative instruments that do not qualify for hedge accounting as well as the impact of commodity prices on our raw material costs relative to the strike price on our commodity forward contracts.

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•Step-up depreciation and amortization: includes depreciation expense associated with the step-up in fair value of assets acquired in connection with a business combination (e.g., property, plant and equipment and inventories) and amortization of intangible assets.

•Deferred taxes and other tax related: includes adjustments for book-to-tax basis differences due primarily to the step-up in fair value of fixed and intangible assets and goodwill, the utilization of net operating losses, and adjustments to our valuation allowance in connection with certain acquisitions and tax law changes. Other tax related items include certain adjustments to unrecognized tax benefits and withholding tax on repatriation of foreign earnings.

•Amortization of debt issuance costs: represents interest expense related to the amortization of deferred financing costs as well as debt discounts, net of premiums.

•Where applicable, the current income tax effect of non-GAAP adjustments.

Our definition of adjusted net income excludes the deferred provision for (or benefit from) income taxes and other tax related items described above. As we treat deferred income taxes as an adjustment to compute adjusted net income, the deferred income tax effect associated with the reconciling items presented below would not change adjusted net income for any period presented.

Non-GAAP reconciliations

The following tables present reconciliations of certain financial measures calculated in accordance with U.S. GAAP to the related non-GAAP financial measures for the three months ended June 30, 2023 and 2022. Refer to the Non-GAAP Adjustments section above for additional information regarding these adjustments. Amounts and percentages in the tables below have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

	For the three months ended June 30, 2023
(Dollars in millions, except per share amounts)	Operating Income		Operating Margin		Income Taxes		Net Income		Diluted EPS
Reported (GAAP)	$	118.0	11.1	%	$	19.9	$	49.1	$	0.32
Non-GAAP adjustments:
Restructuring related and other	31.1		2.9		(0.6)		30.4		0.20
Financing and other transaction costs	4.3		0.4		(0.1)		3.9		0.03
Step-up depreciation and amortization	53.3		5.0		—		53.3		0.35
Deferred (gain)/loss on derivative instruments	(0.9)		(0.1)		(1.1)		4.2		0.03
Amortization of debt issuance costs	—		—		—		1.7		0.01
Deferred taxes and other tax related	—		—		6.4		6.4		0.04
Total adjustments	87.7		8.3		4.6		100.0		0.65
Adjusted (non-GAAP)	$	205.7	19.4	%	$	15.3	$	149.2	$	0.97

	For the three months ended June 30, 2022
(Dollars in millions, except per share amounts)	Operating Income		Operating Margin		Income Taxes		Net Income		Diluted EPS
Reported (GAAP)	$	138.9	13.6	%	$	20.0	$	34.8	$	0.22
Non-GAAP adjustments:
Restructuring related and other	3.9		0.4		0.0		4.3		0.03
Financing and other transaction costs	14.4		1.4		(0.5)		28.3		0.18
Step-up depreciation and amortization	35.3		3.5		—		35.3		0.22
Deferred loss on derivative instruments	1.2		0.1		(4.0)		15.4		0.10
Amortization of debt issuance costs	—		—		—		1.7		0.01
Deferred taxes and other tax related	—		—		9.7		9.7		0.06
Total adjustments	54.8		5.4		5.2		94.7		0.60
Adjusted (non-GAAP)	$	193.8	19.0	%	$	14.9	$	129.5	$	0.83

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The following tables present reconciliations of certain financial measures calculated in accordance with U.S. GAAP to the related non-GAAP financial measures for the six months ended June 30, 2023 and 2022.

	For the six months ended June 30, 2023
(Dollars in millions, except per share amounts)	Operating Income		Operating Margin		Income Taxes		Net Income		Diluted EPS
Reported (GAAP)	$	266.9	13.0	%	$	43.6	$	135.5	$	0.88
Non-GAAP adjustments:
Restructuring related and other	34.0		1.7		(1.3)		32.7		0.21
Financing and other transaction costs	8.5		0.4		2.8		11.5		0.08
Step-up depreciation and amortization	92.5		4.5		—		92.5		0.60
Deferred (gain)/loss on derivative instruments	(3.2)		(0.2)		(0.2)		0.9		0.01
Amortization of debt issuance costs	—		—		—		3.4		0.02
Deferred taxes and other tax related	—		—		13.2		13.2		0.09
Total adjustments	131.8		6.4		14.5		154.3		1.01
Adjusted (non-GAAP)	$	398.6	19.3	%	$	29.1	$	289.8	$	1.89

	For the six months ended June 30, 2022
(Dollars in millions, except per share amounts)	Operating Income		Operating Margin		Income Taxes		Net Income		Diluted EPS
Reported (GAAP)	$	264.9	13.3	%	$	27.6	$	57.3	$	0.36
Non-GAAP adjustments:
Restructuring related and other	8.0		0.4		(0.1)		8.3		0.05
Financing and other transaction costs	30.3		1.5		(1.0)		102.8		0.65
Step-up depreciation and amortization	71.3		3.6		—		71.3		0.45
Deferred loss on derivative instruments	1.8		0.1		(2.2)		8.5		0.05
Amortization of debt issuance costs	—		—		—		3.4		0.02
Deferred taxes and other tax related	—		—		1.3		1.3		0.01
Total adjustments	111.4		5.6		(2.0)		195.7		1.24
Adjusted (non-GAAP)	$	376.3	18.8	%	$	29.6	$	253.0	$	1.60

The following table provides a reconciliation of net cash provided by operating activities in accordance with U.S. GAAP to free cash flow.

	For the six months ended June 30,
(In millions)	2023		2022
Net cash provided by operating activities (GAAP)	$	212.6	$	141.9
Additions to property, plant and equipment and capitalized software	(84.4)		(74.1)
Free cash flow (non-GAAP)	$	128.2	$	67.8

The following table provides a reconciliation of corporate and other expenses in accordance with U.S. GAAP to adjusted corporate and other expenses.

	For the three months ended June 30,				For the six months ended June 30,
(In millions)	2023		2022		2023		2022
Corporate and other expenses (GAAP)	$	(81.5)	$	(76.4)	$	(143.9)	$	(152.5)
Restructuring related and other	13.1		2.6		11.7		5.2
Financing and other transaction costs	1.0		2.8		3.6		6.5
Step-up depreciation and amortization	0.3		0.3		0.3		0.6
Deferred (gain)/loss on derivative instruments	(0.9)		1.2		(3.2)		1.8
Total adjustments	13.4		6.9		12.4		14.1
Adjusted corporate and other expenses (non-GAAP)	$	(68.1)	$	(69.4)	$	(131.5)	$	(138.4)

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The following table provides a reconciliation of net income in accordance with U.S. GAAP to Adjusted EBITDA.

			For the three months ended June 30,				For the six months ended June 30,
(In millions)	LTM		2023		2022		2023		2022
Net income	$	388.9	$	49.1	$	34.8	$	135.5	$	57.3
Interest expense, net	166.7		38.1		44.8		78.2		90.3
Provision for income taxes	102.0		19.9		20.0		43.6		27.6
Depreciation expense	127.9		32.6		31.4		63.6		62.9
Amortization of intangible assets	175.0		54.6		36.8		95.3		74.2
EBITDA	960.5		194.3		167.9		416.2		312.2
Non-GAAP adjustments
Restructuring related and other	63.6		31.1		4.3		34.0		8.5
Financing and other transaction costs	(87.6)		4.0		28.7		8.8		103.8
Deferred (gain)/loss on derivative instruments	(7.6)		5.3		19.4		1.2		10.7
Adjusted EBITDA	$	928.8	$	234.7	$	220.4	$	460.2	$	435.2

The following table provides a reconciliation of total debt, finance lease and other financing obligations in accordance with U.S. GAAP to net leverage ratio.

(Dollars in millions)	June 30, 2023		December 31, 2022
Current portion of long-term debt, finance lease and other financing obligations	$	1.8	$	256.5
Finance lease and other financing obligations, less current portion	23.8		24.7
Long-term debt, net	3,770.5		3,958.9
Total debt, finance lease and other financing obligations	3,796.1		4,240.1
Less: debt discount, net of premium	(2.4)		(3.4)
Less: deferred financing costs	(27.1)		(29.9)
Total gross indebtedness	3,825.6		4,273.4
Less: cash and cash equivalents	857.3		1,225.5
Net debt	$	2,968.3	$	3,047.9
Adjusted EBITDA (LTM)	$	928.8	$	903.9
Net leverage ratio	3.2		3.4

Liquidity and Capital Resources

As of June 30, 2023 and December 31, 2022, we held cash and cash equivalents in the following regions:

(In millions)	June 30, 2023		December 31, 2022
United Kingdom	$	11.7	$	15.7
United States	13.8		16.1
The Netherlands	400.3		861.3
China	350.1		210.0
Other	81.4		122.5
Total	$	857.3	$	1,225.5

The amount of cash and cash equivalents held in these geographic regions fluctuates throughout the year due to a variety of factors, such as our use of intercompany loans and dividends and the timing of cash receipts and disbursements in the normal course of business. Our earnings are not considered to be permanently reinvested in certain jurisdictions in which they were earned. We recognize a deferred tax liability on these unremitted earnings to the extent the remittance of such earnings cannot be recovered in a tax-free manner.

In certain jurisdictions, our cash balances are subject to withholding taxes immediately upon withdrawal of funds to a different jurisdiction. In addition, in order to take advantage of incentive programs offered by various jurisdictions, including tax incentives, we are required to maintain minimum cash balances in these jurisdictions. The transfer of cash from these jurisdictions could result in loss of incentives or higher cash tax expense, but those impacts are not expected to be material.

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Our cash and cash equivalents balances are held in the following significant currencies (amounts in the tables below have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):

	As of June 30, 2023
(In millions)	USD		EUR		GBP		CNY		Other
United Kingdom	$	(1.8)	€	0.0	£	10.5	¥	—
United States	13.6		0.2		—		—
The Netherlands	385.4		12.4		1.0		—
China	134.8		—		—		1,557.6
Other	62.7		2.1		0.1		—
Total	$	594.6	€	14.7	£	11.6	¥	1,557.6
USD Equivalent			$	16.0	$	14.6	$	215.3	$	16.8

	As of December 31, 2022
(In millions)	USD		EUR		GBP		CNY		Other
United Kingdom	$	2.7	€	0.0	£	10.7	¥	—
United States	16.1		—		—		—
The Netherlands	848.6		10.9		0.2		—
China	95.0		—		—		794.4
Other	99.9		2.3		—		—
Total	$	1,062.3	€	13.2	£	10.9	¥	794.4
USD Equivalent			$	14.0	$	13.2	$	115.2	$	20.8

Cash Flows:

The table below summarizes our primary sources and uses of cash for the six months ended June 30, 2023 and 2022. We have derived these summarized statements of cash flows from the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Amounts in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

	For the six months ended
(In millions)	June 30, 2023		June 30, 2022
Net cash provided by/(used in):
Operating activities:
Net income adjusted for non-cash items	$	338.9	$	300.1
Changes in operating assets and liabilities, net	(117.8)		(143.2)
Cash operating activities	(8.4)		(15.0)
Operating activities	212.6		141.9
Investing activities	(65.8)		(129.8)
Financing activities	(515.0)		(162.5)
Net change	$	(368.2)	$	(150.4)

Operating activities. Net cash provided by operating activities for the six months ended June 30, 2023 increased compared to the corresponding period of the prior year, primarily due to higher net income and timing of supplier payments and customer receipts. The increase was partially offset by additional cash paid on interest of $15.2 million in the six months ended June 30, 2023 compared to the prior period.

Investing activities. Net cash used in investing activities for the six months ended June 30, 2023 decreased compared to the corresponding period of the prior year, primarily due to (1) the fact that there were no acquisitions in the six months ended June 30, 2023 (compared to $49.0 million paid for Elastic M2M in the prior period) and (2) we paid $0.4 million to invest in debt and equity securities (compared to $6.9 million in the prior period), partially offset by an increase in capital expenditures of $10.4 million. In addition, we received cash proceeds of $19.0 million from the sale of businesses in the six months ended June 30, 2023. For fiscal year 2023, we anticipate capital expenditures of approximately $170.0 million to $180.0 million, which we expect to fund with cash on hand.

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Financing activities. Net cash used in financing activities for the six months ended June 30, 2023 increased primarily due to (1) the early payment of the entire Term Loan balance made in the six months ended June 30, 2023 and (2) an increase in cash paid to shareholders in the form of cash dividends of $17.9 million, partially offset by lower cash paid to repurchase ordinary shares as part of our share repurchase program.

Indebtedness and Liquidity

As of June 30, 2023, we had $3.8 billion in gross indebtedness, which includes finance lease and other financing obligations and excludes debt discounts, premiums, and deferred financing costs.

Capital Resources

Senior Secured Credit Facilities

The Credit Agreement provides for Senior Secured Credit Facilities consisting of the Term Loan, the Revolving Credit Facility, and incremental availability (the "Accordion") under which additional secured credit facilities could be issued under certain circumstances. In the six months ended June 30, 2023, we repaid the Term Loan balance in full.

Sources of liquidity

Our sources of liquidity include cash on hand, cash flows from operations, and available capacity under the Revolving Credit Facility. As of June 30, 2023, we had $746.1 million available under the Revolving Credit Facility, net of $3.9 million of obligations in respect of outstanding letters of credit issued thereunder. Outstanding letters of credit are issued primarily for the benefit of certain operating activities. As of June 30, 2023, no amounts had been drawn against these outstanding letters of credit. Availability under the Accordion varies each period based on our attainment of certain financial metrics as set forth in the terms of the Credit Agreement and the indentures under which our senior notes were issued (the "Senior Notes Indentures"). As of June 30, 2023, availability under the Accordion was approximately $1.2 billion.

We believe, based on our current level of operations and taking into consideration the restrictions and covenants included in the Credit Agreement and Senior Notes Indentures, that the sources of liquidity described above will be sufficient to fund our operations, capital expenditures, dividend payments, ordinary share repurchases, and debt service for at least the next twelve months. However, we cannot make assurances that our business will generate sufficient cash flows from operations or that future borrowings will be available to us in an amount sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. Further, our highly-leveraged nature may limit our ability to procure additional financing in the future.

Our ability to raise additional financing, and our borrowing costs, may be impacted by short- and long-term debt ratings assigned by independent rating agencies, which are based, in significant part, on our performance as measured by certain credit metrics such as interest coverage and leverage ratios. As of July 21, 2023, Moody’s Investors Service’s corporate credit rating for STBV was Ba2 with a stable outlook, and Standard & Poor’s corporate credit rating for STBV was BB+ with a stable outlook. Any future downgrades to STBV's credit ratings may increase our future borrowing costs but will not reduce availability under the Credit Agreement.

Restrictions and Covenants

The Credit Agreement provides that if our senior secured net leverage ratio exceeds a specified level, we are required to use a portion of our excess cash flow, as defined in the Credit Agreement, generated by operating, investing, or financing activities to prepay some or all of the outstanding borrowings under the Senior Secured Credit Facilities. The Credit Agreement also requires mandatory prepayments of the outstanding borrowings under the Senior Secured Credit Facilities upon certain asset dispositions and casualty events, in each case subject to certain reinvestment rights, and upon the incurrence of certain indebtedness (excluding any permitted indebtedness). These provisions were not triggered during the six months ended June 30, 2023.

The Credit Agreement and the Senior Notes Indentures contain restrictions and covenants that limit the ability of our wholly-owned subsidiary, STBV, and certain of its subsidiaries to, among other things, incur subsequent indebtedness, sell assets, pay dividends, and make other restricted payments. For a full discussion of these restrictions and covenants, refer to Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources included in our 2022 Annual Report. These restrictions and covenants, which are subject to important exceptions and qualifications set forth in the Credit Agreement and Senior Notes Indentures, were taken into consideration when we established our share repurchase programs and will be evaluated periodically with respect to future potential funding of those programs. As of June 30, 2023, we believe we were in compliance with all covenants and default provisions under our credit arrangements.

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Share repurchase programs

From time to time, our Board of Directors has authorized various share repurchase programs, which may be modified or terminated by our Board at any time. We currently have authorization for the January 2022 Program, under which approximately $199.4 million remained available as of June 30, 2023. In the six months ended June 30, 2023 and 2022, we repurchased 0.6 million and 2.8 million ordinary shares, respectively, under the January 2022 Program.

Dividends

In the second quarter of 2022, we began paying cash dividends of $0.11 per share to our shareholders. In the second quarter of 2023, we increased the dividends to $0.12 per share. In the six months ended June 30, 2023 and 2022, we paid aggregate cash dividends of $35.1 million and $17.2 million, respectively. On July 20, 2023, we announced that our Board of Directors approved a quarterly dividend of $0.12 per share, payable on August 23, 2023 to shareholders of record as of August 9, 2023.

Recently Issued Accounting Pronouncements

There are no recently issued accounting standards that have been adopted in the current period or will be adopted in future periods that have had or are expected to have a material impact on our consolidated financial position or results of operations.

Critical Accounting Policies and Estimates

For a discussion of the critical accounting policies that require the use of significant judgments and estimates by management, refer to Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates included in our 2022 Annual Report.

Item 3.Quantitative and Qualitative Disclosures About Market Risk.

No significant changes to our market risk have occurred since December 31, 2022. For a discussion of market risks affecting us, refer to Part II, Item 7A: Quantitative and Qualitative Disclosures About Market Risk included in our 2022 Annual Report.

Item 4.Controls and Procedures.

The required certifications of our Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer are included as exhibits to this Quarterly Report on Form 10-Q. The disclosures set forth in this Item 4 contain information concerning the evaluation of our disclosure controls and procedures and changes in internal control over financial reporting referred to in these certifications. These certifications should be read in conjunction with this Item 4 for a more complete understanding of the matters covered by the certifications.

Evaluation of Disclosure Controls and Procedures

With the participation of our Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer, we have evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2023. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the United States Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of June 30, 2023, our Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the three months ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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Inherent Limitations on Effectiveness of Controls

There are inherent limitations to the effectiveness of any system of internal control over financial reporting. Accordingly, even an effective system of internal control over financial reporting can only provide reasonable assurance with respect to financial statement preparation and presentation in accordance with United States generally accepted accounting principles. Our internal controls over financial reporting are subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may be inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time.

PART II—OTHER INFORMATION

Item 1.Legal Proceedings.

We are regularly involved in a number of claims and litigation matters that arise in the ordinary course of business. 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 condition, and/or cash flows.

Item 1A.Risk Factors.

Information regarding risk factors appears in Part I, Item 1A: Risk Factors, included in our 2022 Annual Report. There have been no material changes to the risk factors disclosed therein.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased (in shares) (1)	Weighted-Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Programs (in millions)
April 1 through April 30, 2023	210,572	$	50.02	—	$	224.5
May 1 through May 31, 2023	323,381	$	41.14	305,514	$	211.9
June 1 through June 30, 2023	286,164	$	44.16	284,382	$	199.4
Quarter total	820,117	$	44.47	589,896	$	199.4

___________________________________

(1)     The total number of ordinary shares purchased includes ordinary shares that were withheld upon the vesting of restricted securities to cover payment of employee withholding tax. These withholdings took place outside of a publicly announced repurchase plan. There were 210,572, 17,867, and 1,782 ordinary shares withheld in April 2023, May 2023, and June 2023, respectively, representing a total aggregate fair value of $11.3 million based on the closing price of our ordinary shares on the date of withholdings.

Item 3.Defaults Upon Senior Securities.

None.

Item 5.Other Information.

None.

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Item 6.Exhibits.

Exhibit No.	Description
3.1	Articles of Association of Sensata Technologies Holding plc (incorporated by reference to Exhibit 3.1 of the Registrant's Current Report on Form 8-K filed on March 28, 2018).
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.3	Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document. *
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document. *
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document. *
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document. *
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document. *
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

___________________________________

*    Filed herewith

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: August 1, 2023

SENSATA TECHNOLOGIES HOLDING PLC

/s/ Jeff Cote

(Jeff Cote)

Chief Executive Officer and President

(Principal Executive Officer)

/s/ Paul Vasington

(Paul Vasington)

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

/s/ Maria Freve

(Maria Freve)

Vice President and Chief Accounting Officer

(Principal Accounting Officer)

36

EX-31.1

Exhibit 31.1

Certification

I, Jeff Cote, certify that:

1.I have reviewed the quarterly report on Form 10-Q of Sensata Technologies Holding plc;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 1, 2023
		/s/ JEFF COTE
		Jeff Cote
		Chief Executive Officer and President

EX-31.2

Exhibit 31.2

Certification

I, Paul Vasington, certify that:

1.I have reviewed the quarterly report on Form 10-Q of Sensata Technologies Holding plc;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 1, 2023
		/s/ PAUL VASINGTON
		Paul Vasington
		Executive Vice President and Chief Financial Officer

EX-31.3

Exhibit 31.3

Certification

I, Maria Freve, certify that:

1.I have reviewed the quarterly report on Form 10-Q of Sensata Technologies Holding plc;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 1, 2023
		/s/ MARIA FREVE
		Maria Freve
		Vice President and Chief Accounting Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Sensata Technologies Holding plc (the “Company”) for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned chief executive officer, chief financial officer, and chief accounting officer of the Company, certifies, to the best knowledge and belief of the signatory, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ JEFF COTE
	Jeff Cote
	Chief Executive Officer and President
Date:	August 1, 2023
	/s/ PAUL VASINGTON
	Paul Vasington
	Executive Vice President and Chief Financial Officer
Date:	August 1, 2023
	/s/ MARIA FREVE
	Maria Freve
	Vice President and Chief Accounting Officer
Date:	August 1, 2023

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Jul. 14, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-34652
Entity Registrant Name	SENSATA TECHNOLOGIES HOLDING PLC
Entity Incorporation, State or Country Code	X0
Entity Tax Identification Number	98-1386780
Entity Address, Address Line One	529 Pleasant Street
Entity Address, City or Town	Attleboro
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02703
Entity Address, Country	US
City Area Code	508
Local Phone Number	236 3800
Title of 12(b) Security	Ordinary Shares - nominal value €0.01 per share
Trading Symbol	ST
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		152,422,440
Entity Central Index Key	0001477294
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 857,312	$ 1,225,518
Accounts receivable, net of allowances of $32,409 and $24,246 as of June 30, 2023 and December 31, 2022, respectively	772,427	742,382
Inventories	660,082	644,875
Prepaid expenses and other current assets	186,807	162,268
Total current assets	2,476,628	2,775,043
Property, plant and equipment, net	858,760	840,819
Goodwill	3,861,872	3,911,224
Other intangible assets, net of accumulated amortization of $2,444,191 and $2,352,813 as of June 30, 2023 and December 31, 2022, respectively	961,180	999,722
Deferred income tax assets	93,782	100,539
Other assets	140,378	128,873
Total assets	8,392,600	8,756,220
Current liabilities:
Current portion of long-term debt, finance lease and other financing obligations	1,809	256,471
Accounts payable	523,968	531,572
Income taxes payable	31,920	43,987
Accrued expenses and other current liabilities	323,201	346,942
Total current liabilities	880,898	1,178,972
Deferred income tax liabilities	390,743	364,593
Pension and other post-retirement benefit obligations	38,960	36,086
Finance lease and other financing obligations, less current portion	23,771	24,742
Long-term debt, net	3,770,507	3,958,928
Other long-term liabilities	77,949	82,092
Total liabilities	5,182,828	5,645,413
Commitments and contingencies (Note 11)
Shareholders’ equity:
Ordinary shares, €0.01 nominal value per share, 177,069 shares authorized, and 175,793 and 175,207 shares issued as of June 30, 2023 and December 31, 2022, respectively	2,249	2,242
Treasury shares, at cost, 23,371 and 22,781 shares as of June 30, 2023 and December 31, 2022, respectively	(1,149,838)	(1,124,713)
Additional paid-in capital	1,889,234	1,866,201
Retained earnings	2,472,281	2,383,341
Accumulated other comprehensive loss	(4,154)	(16,264)
Total shareholders' equity	3,209,772	3,110,807
Total liabilities and shareholders' equity	$ 8,392,600	$ 8,756,220

XML

Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands	Jun. 30, 2023 USD ($) shares	Jun. 30, 2023 € / shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2022 € / shares
Statement of Financial Position [Abstract]
Accounts receivable, allowances | $	$ 32,409		$ 24,246
Accumulated amortization | $	$ 2,444,191		$ 2,352,813
Ordinary shares, nominal value per share (in euros per share) | € / shares		€ 0.01		€ 0.01
Ordinary shares authorized (in shares)	177,069,000		177,069,000
Ordinary shares issued (in shares)	175,793,000		175,207,000
Treasury shares (in shares)	23,371,000		22,781,000

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net revenue	$ 1,062,112	$ 1,020,548	$ 2,060,287	$ 1,996,318
Operating costs and expenses:
Cost of revenue	732,108	686,603	1,402,579	1,343,683
Research and development	44,857	47,971	90,796	93,951
Selling, general and administrative	91,312	97,329	177,462	193,009
Amortization of intangible assets	54,563	36,805	95,337	74,172
Restructuring and other charges, net	21,259	12,897	27,258	26,630
Total operating costs and expenses	944,099	881,605	1,793,432	1,731,445
Operating income	118,013	138,943	266,855	264,873
Interest expense, net	(38,105)	(44,842)	(78,196)	(90,287)
Other, net	(10,924)	(39,240)	(9,532)	(89,696)
Income before taxes	68,984	54,861	179,127	84,890
Provision for income taxes	19,873	20,020	43,599	27,608
Net income	$ 49,111	$ 34,841	$ 135,528	$ 57,282
Basic net income per share (in dollars per share)	$ 0.32	$ 0.22	$ 0.89	$ 0.36
Diluted net income per share (in dollars per share)	$ 0.32	$ 0.22	$ 0.88	$ 0.36

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 49,111	$ 34,841	$ 135,528	$ 57,282
Other comprehensive income:
Cash flow hedges	8,686	9,183	11,493	12,033
Defined benefit and retiree healthcare plans	224	380	617	808
Other comprehensive income	8,910	9,563	12,110	12,841
Comprehensive income	$ 58,021	$ 44,404	$ 147,638	$ 70,123

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 135,528	$ 57,282
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	63,560	62,882
Amortization of debt issuance costs	3,421	3,433
Gain on sale of business	(5,877)	0
Share-based compensation	17,607	15,739
Loss on debt financing	857	0
Amortization of intangible assets	95,337	74,172
Deferred income taxes	13,449	(5,211)
Mark-to-market loss on equity investments, net	302	71,100
Unrealized loss on derivative instruments and other	14,674	20,669
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable, net	(30,045)	(102,845)
Inventories	(19,036)	(69,379)
Prepaid expenses and other current assets	(13,408)	(17,762)
Accounts payable and accrued expenses	(39,665)	56,767
Income taxes payable	(12,067)	(11,384)
Other	(3,615)	1,425
Acquisition-related compensation payments	(8,380)	(15,000)
Net cash provided by operating activities	212,642	141,888
Cash flows from investing activities:
Acquisitions, net of cash received	0	(48,989)
Additions to property, plant and equipment and capitalized software	(84,444)	(74,069)
Investment in debt and equity securities	(390)	(6,878)
Proceeds from the sale of business, net of cash sold	19,000	0
Other	0	152
Net cash used in investing activities	(65,834)	(129,784)
Cash flows from financing activities:
Proceeds from exercise of stock options and issuance of ordinary shares	5,346	14,577
Payment of employee restricted stock tax withholdings	(11,470)	(7,577)
Payments on debt	(448,390)	(5,664)
Dividends paid	(35,113)	(17,225)
Payments to repurchase ordinary shares	(25,076)	(144,279)
Payments of debt financing costs	(311)	(2,313)
Net cash used in financing activities	(515,014)	(162,481)
Net change in cash and cash equivalents	(368,206)	(150,377)
Cash and cash equivalents, beginning of year	1,225,518	1,708,955
Cash and cash equivalents, end of period	$ 857,312	$ 1,558,578

XML

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Ordinary Shares	Treasury Shares	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Ordinary shares, beginning balance (in shares) at Dec. 31, 2021		174,287,000
Treasury shares, beginning balance (in shares) at Dec. 31, 2021			(16,438,000)
Beginning balance at Dec. 31, 2021	$ 3,094,734	$ 2,232	$ (832,439)	$ 1,812,244	$ 2,132,257	$ (19,560)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Surrender of shares for tax withholding (in shares)			(151,000)
Surrender of shares for tax withholding	(7,577)		$ (7,577)
Stock options exercised (in shares)		329,000
Stock options exercised	13,946	$ 4		13,942
Vesting of restricted securities (in shares)		459,000
Vesting of restricted securities	0	$ 5			(5)
Cash dividends paid	(17,225)				(17,225)
Repurchase of ordinary shares (in shares)			(2,831,000)
Repurchase of ordinary shares	(146,156)		$ (146,156)
Retirement of ordinary shares (in shares)		(151,000)	(151,000)
Retirement of ordinary shares	0	$ (2)	$ 7,577		(7,575)
Share-based compensation	15,739			15,739
Net income	57,282				57,282
Other comprehensive income	12,841					12,841
Ordinary shares, ending balance (in shares) at Jun. 30, 2022		174,924,000
Treasury shares, ending balance (in shares) at Jun. 30, 2022			(19,269,000)
Ending balance at Jun. 30, 2022	3,023,584	$ 2,239	$ (978,595)	1,841,925	2,164,734	(6,719)
Ordinary shares, beginning balance (in shares) at Mar. 31, 2022		174,583,000
Treasury shares, beginning balance (in shares) at Mar. 31, 2022			(17,576,000)
Beginning balance at Mar. 31, 2022	3,072,317	$ 2,236	$ (899,697)	1,831,497	2,154,563	(16,282)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Surrender of shares for tax withholding (in shares)			(148,000)
Surrender of shares for tax withholding	(7,442)		$ (7,442)
Stock options exercised (in shares)		39,000
Stock options exercised	1,229	$ 0		1,229
Vesting of restricted securities (in shares)		450,000
Vesting of restricted securities	0	$ 5			(5)
Cash dividends paid	(17,225)				(17,225)
Repurchase of ordinary shares (in shares)			(1,693,000)
Repurchase of ordinary shares	(78,898)		$ (78,898)
Retirement of ordinary shares (in shares)		(148,000)	(148,000)
Retirement of ordinary shares	0	$ (2)	$ 7,442		(7,440)
Share-based compensation	9,199			9,199
Net income	34,841				34,841
Other comprehensive income	9,563					9,563
Ordinary shares, ending balance (in shares) at Jun. 30, 2022		174,924,000
Treasury shares, ending balance (in shares) at Jun. 30, 2022			(19,269,000)
Ending balance at Jun. 30, 2022	$ 3,023,584	$ 2,239	$ (978,595)	1,841,925	2,164,734	(6,719)
Ordinary shares, beginning balance (in shares) at Dec. 31, 2022	175,207,000	175,207,000
Treasury shares, beginning balance (in shares) at Dec. 31, 2022	(22,781,000)		(22,781,000)
Beginning balance at Dec. 31, 2022	$ 3,110,807	$ 2,242	$ (1,124,713)	1,866,201	2,383,341	(16,264)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of ordinary shares (in shares)			0
Ordinary shares, ending balance (in shares) at Mar. 31, 2023		175,298,000
Treasury shares, ending balance (in shares) at Mar. 31, 2023			(22,781,000)
Ending balance at Mar. 31, 2023	$ 3,193,492	$ 2,243	$ (1,124,713)	1,876,168	2,452,858	(13,064)
Ordinary shares, beginning balance (in shares) at Dec. 31, 2022	175,207,000	175,207,000
Treasury shares, beginning balance (in shares) at Dec. 31, 2022	(22,781,000)		(22,781,000)
Beginning balance at Dec. 31, 2022	$ 3,110,807	$ 2,242	$ (1,124,713)	1,866,201	2,383,341	(16,264)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Surrender of shares for tax withholding (in shares)			(233,000)
Surrender of shares for tax withholding	(11,470)		$ (11,470)
Stock options exercised (in shares)		158,000
Stock options exercised	5,428	$ 2		5,426
Vesting of restricted securities (in shares)		661,000
Vesting of restricted securities	0	$ 7			(7)
Cash dividends paid	(35,113)				(35,113)
Repurchase of ordinary shares (in shares)			(590,000)
Repurchase of ordinary shares	(25,125)		$ (25,125)
Retirement of ordinary shares (in shares)		(233,000)	(233,000)
Retirement of ordinary shares	0	$ (2)	$ 11,470		(11,468)
Share-based compensation	17,607			17,607
Net income	135,528				135,528
Other comprehensive income	$ 12,110					12,110
Ordinary shares, ending balance (in shares) at Jun. 30, 2023	175,793,000	175,793,000
Treasury shares, ending balance (in shares) at Jun. 30, 2023	(23,371,000)		(23,371,000)
Ending balance at Jun. 30, 2023	$ 3,209,772	$ 2,249	$ (1,149,838)	1,889,234	2,472,281	(4,154)
Ordinary shares, beginning balance (in shares) at Mar. 31, 2023		175,298,000
Treasury shares, beginning balance (in shares) at Mar. 31, 2023			(22,781,000)
Beginning balance at Mar. 31, 2023	3,193,492	$ 2,243	$ (1,124,713)	1,876,168	2,452,858	(13,064)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Surrender of shares for tax withholding (in shares)			(231,000)
Surrender of shares for tax withholding	(11,347)		$ (11,347)
Stock options exercised (in shares)		76,000
Stock options exercised	2,666	$ 1		2,665
Vesting of restricted securities (in shares)		650,000
Vesting of restricted securities	0	$ 7			(7)
Cash dividends paid	(18,336)				(18,336)
Repurchase of ordinary shares (in shares)			(590,000)
Repurchase of ordinary shares	(25,125)		$ (25,125)
Retirement of ordinary shares (in shares)		(231,000)	(231,000)
Retirement of ordinary shares	0	$ (2)	$ 11,347		(11,345)
Share-based compensation	10,401			10,401
Net income	49,111				49,111
Other comprehensive income	$ 8,910					8,910
Ordinary shares, ending balance (in shares) at Jun. 30, 2023	175,793,000	175,793,000
Treasury shares, ending balance (in shares) at Jun. 30, 2023	(23,371,000)		(23,371,000)
Ending balance at Jun. 30, 2023	$ 3,209,772	$ 2,249	$ (1,149,838)	$ 1,889,234	$ 2,472,281	$ (4,154)

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements reflect the financial position, results of operations, comprehensive income, cash flows, and changes in shareholders' equity of Sensata Technologies Holding plc, a public limited company incorporated under the laws of England and Wales, and its consolidated subsidiaries, collectively referred to as the "Company," "Sensata," "we," "our," or "us."

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("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 interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (the "SEC") on February 13, 2023 (the "2022 Annual Report").

All U.S. dollar ("USD") and share amounts presented, except per share amounts, are stated in thousands, unless otherwise indicated.

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New Accounting Standards	6 Months Ended
	Jun. 30, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Standards	New Accounting StandardsThere are no recently issued accounting standards that have been adopted in the current period or will be adopted in future periods that have had or are expected to have a material impact on our consolidated financial position or results of operations.

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Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following tables present net revenue disaggregated by segment and end market for the three and six months ended June 30, 2023 and 2022 for our two reportable segments, Performance Sensing ("PS") and Sensing Solutions ("SS"):

	For the three months ended June 30, 2023						For the three months ended June 30, 2022 (3)
	PS		SS		Total		PS		SS		Total
Automotive	$	530,268	$	9,550	$	539,818	$	506,232	$	9,932	$	516,164
HVOR (1)	227,176		—		227,176		225,413		—		225,413
Industrial	—		185,202		185,202		—		137,331		137,331
Appliance and HVAC (2)	—		50,952		50,952		—		57,675		57,675
Aerospace	—		46,832		46,832		—		38,558		38,558
Other	—		12,132		12,132		—		45,407		45,407
Total	$	757,444	$	304,668	$	1,062,112	$	731,645	$	288,903	$	1,020,548

	For the six months ended June 30, 2023 (3)						For the six months ended June 30, 2022 (3)
	PS		SS		Total		PS		SS		Total
Automotive	$	1,047,152	$	17,684	$	1,064,836	$	1,008,594	$	19,217	$	1,027,811
HVOR (1)	448,560		—		448,560		425,746		—		425,746
Industrial	—		333,714		333,714		—		266,952		266,952
Appliance and HVAC (2)	—		98,426		98,426		—		116,500		116,500
Aerospace	—		91,158		91,158		—		71,828		71,828
Other	—		23,593		23,593		—		87,481		87,481
Total	$	1,495,712	$	564,575	$	2,060,287	$	1,434,340	$	561,978	$	1,996,318

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(1)    Heavy vehicle and off-road

(2)    Heating, ventilation and air conditioning

(3)    Effective April 1, 2023, we moved our material handling products from the HVOR operating segment (in the Performance Sensing reportable segment) to the Sensing Solutions operating segment to align with new management reporting. The amounts previously reported in the tables above for the three and six months ended June 30, 2022 have been retrospectively recast to reflect this change. In addition, the six months ended June 30, 2023 includes amounts for the three months ended March 31, 2023 that have been retrospectively adjusted for this change.

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Share-Based Payment Plans

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Plans

Share-Based Payment Plans

The following table presents the components of non-cash compensation expense related to our equity awards for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock options	$	(205)	$	2	$	(86)	$	309
Restricted securities	10,606		9,197		17,693		15,430
Share-based compensation expense	$	10,401	$	9,199	$	17,607	$	15,739

Equity Awards

We granted the following restricted stock units ("RSUs" and each, an "RSU") and performance-based restricted stock units ("PRSUs" and each, a "PRSU") under the Sensata Technologies Holding plc 2021 Equity Incentive Plan during the six months ended June 30, 2023:

Awards Granted To:	Type of Award	Number of Units Granted (in thousands)	Weighted Average Grant Date Fair Value
Directors	RSU (1)	33	$	40.95
Various executives and employees	RSU (2)	547	$	49.57
Various executives and employees	PRSU (3)	241	$	49.53
Various executives and employees	PRSU (4)	102	$	55.50

____________________________________

(1)    These RSUs cliff vest one year from the grant date (May and June 2024).

(2)    These RSUs vest ratably over three years, one-third per year beginning on the first anniversary of the grant date. These RSUs will fully vest on various dates between January 2026 and June 2026.

(3)    These PRSUs vest on various dates between April 2026 and June 2026. The number of units that ultimately vest will be between 0% and 150% and is dependent on the achievement of certain performance criteria.

(4)    These awards include certain PRSUs with market performance conditions that will be evaluated relative to the performance of certain peers as defined in the award agreement. The number of units that ultimately vest (in April 2026) will be from 0% to 150%, depending on achievement of these performance criteria. Total grant date value of these PRSUs is approximately $5.6 million and was valued using the Monte Carlo method. Related share-based compensation expense recognized in the three and six months ended June 30, 2023 was $0.6 million.

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Restructuring and Other Charges, Net

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges, Net

Restructuring and Other Charges, Net

The following table presents the components of restructuring and other charges, net for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Severance costs, net (1)	$	4,749	$	—	$	8,962	$	587
Facility and other exit costs	310		1,241		535		2,289
Gain on sale of business	—		—		(5,877)		—
Acquisition-related compensation arrangements (2)	3,330		12,834		10,602		31,089
Other (1)(2)(3)	12,870		(1,178)		13,036		(7,335)
Restructuring and other charges, net	$	21,259	$	12,897	$	27,258	$	26,630

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(1)    The three and six months ended June 30, 2023 include certain costs to exit the marine energy storage business (the "Marine Business") of Spear Power Systems (“Spear”) as discussed below.

(2)    We have reclassified acquisition-related compensation arrangements for the three and six months ended June 30, 2022 from the "other" caption within restructuring and other charges, net, to correspond to current period presentation.

(3)    The six months ended June 30, 2022 primarily includes gains related to changes in the fair value of acquisition-related contingent consideration amounts.

On June 6, 2023, we announced that we had made the decision to exit the Marine Business, which was included in the Sensing Solutions reportable segment. Exiting the Marine Business resulted in a charge of $38.3 million in the three and six months ended June 30, 2023. The charge included $13.5 million of accelerated amortization of definite-lived intangible assets, presented in amortization of intangible assets, and a $10.5 million write-down of inventory, presented in cost of revenue. In addition, certain of these charges are presented in restructuring and other charges, net, including $1.2 million of severance costs, $1.7 million related to the write-down of property, plant, and equipment, $2.3 million related to the write-down of accounts receivables, and $9.1 million of other charges, including contract termination costs.

The following table presents a rollforward of our severance liability for the six months ended June 30, 2023:

	Severance
Balance as of December 31, 2022	$	8,617
Charges, net of reversals	8,962
Payments	(12,344)
Foreign currency remeasurement	166
Balance as of June 30, 2023	$	5,401

The severance liability as of June 30, 2023 and December 31, 2022 was entirely recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets.

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Other, Net

6 Months Ended

Jun. 30, 2023

Other Income and Expenses [Abstract]

Other, Net

Other, Net

The following table presents the components of other, net for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Currency remeasurement loss on net monetary assets	$	(9,307)	$	(14,090)	$	(10,566)	$	(14,157)
Gain on foreign currency forward contracts	4,423		3,165		4,607		1,922
Loss on commodity forward contracts	(6,269)		(18,254)		(4,370)		(8,830)
Loss on debt financing	(372)		—		(857)		—
Mark-to-market loss on equity investments, net	(302)		(11,821)		(302)		(71,100)
Net periodic benefit cost, excluding service cost	(810)		(639)		(1,781)		(1,394)
Other	1,713		2,399		3,737		3,863
Other, net	$	(10,924)	$	(39,240)	$	(9,532)	$	(89,696)

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Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table presents the provision for income taxes for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Provision for income taxes	$	19,873	$	20,020	$	43,599	$	27,608

The provision for income taxes consists of (1) current tax expense, which relates primarily to our profitable operations in tax jurisdictions with limited or no net operating loss carryforwards and withholding taxes related to management fees, royalties, and the repatriation of foreign earnings; and (2) deferred tax expense (or benefit), which represents adjustments in book-to-tax basis differences primarily related to (a) book versus tax basis in intangible assets, (b) changes in net operating loss carryforwards, and (c) changes in withholding taxes on unremitted earnings. Other items impacting deferred tax expense include changes in tax rates and changes in our assessment of the realizability of our deferred tax assets.

We recorded a partial valuation allowance against certain interest carryforwards in the U.S. at both December 31, 2022 and December 31, 2021. We are continually evaluating both the positive and negative evidence for this partial valuation allowance. We believe that there is a reasonable possibility that within the next 12 months, sufficient positive evidence may become available to allow us to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of this deferred tax asset and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability and future utilization of this attribute that we are able to actually achieve.

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Net Income per Share

6 Months Ended

Jun. 30, 2023

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 and six months ended June 30, 2023 and 2022 the weighted-average ordinary shares outstanding used to calculate basic and diluted net income per share were as follows:

	For the three months ended		For the six months ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Basic weighted-average ordinary shares outstanding	152,700	156,477	152,609	156,950
Dilutive effect of stock options	55	190	103	331
Dilutive effect of unvested restricted securities	309	327	482	531
Diluted weighted-average ordinary shares outstanding	153,064	156,994	153,194	157,812

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 were as follows:

	For the three months ended		For the six months ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Anti-dilutive shares excluded	1,625	1,426	1,003	715
Contingently issuable shares excluded	1,366	1,383	1,317	1,192

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Inventories

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

The following table presents the components of inventories as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
Finished goods	$	223,295	$	202,531
Work-in-process	109,297		117,691
Raw materials	327,490		324,653
Inventories	$	660,082	$	644,875

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Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

The following table presents the components of long-term debt, finance lease and other financing obligations as of June 30, 2023 and December 31, 2022:

	Maturity Date	June 30, 2023		December 31, 2022
Term Loan (1)	September 20, 2026	$	—	$	446,834
5.625% Senior Notes	November 1, 2024	400,000		400,000
5.0% Senior Notes	October 1, 2025	700,000		700,000
4.375% Senior Notes	February 15, 2030	450,000		450,000
3.75% Senior Notes	February 15, 2031	750,000		750,000
4.0% Senior Notes	April 15, 2029	1,000,000		1,000,000
5.875% Senior Notes	September 1, 2030	500,000		500,000
Less: debt discount, net of premium		(2,355)		(3,360)
Less: deferred financing costs		(27,138)		(29,916)
Less: current portion		—		(254,630)
Long-term debt, net		$	3,770,507	$	3,958,928
Finance lease and other financing obligations		$	25,580	$	26,583
Less: current portion		(1,809)		(1,841)
Finance lease and other financing obligations, less current portion		$	23,771	$	24,742

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(1)    On February 6, 2023, we prepaid $250.0 million of outstanding principal on our Term Loan balance. Accordingly, that portion of the principal balance outstanding on the Term Loan as of December 31, 2022 was presented as current portion of long-term debt. On May 3, 2023, we prepaid $196.8 million of outstanding principal on the Term Loan, representing the remaining balance on the Term Loan as of that date plus $0.5 million in interest.

Our debt consists of secured credit facilities and various tranches of senior unsecured notes. Refer to Note 14: Debt of the audited consolidated financial statements and notes thereto included in the 2022 Annual Report for additional information regarding our existing indebtedness.

As of June 30, 2023, we had $746.1 million available under our $750.0 million revolving credit facility (the "Revolving Credit Facility"), net of $3.9 million of obligations in respect of outstanding letters of credit issued thereunder. Outstanding letters of credit are issued primarily for the benefit of certain operating activities. As of June 30, 2023, 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 June 30, 2023 and December 31, 2022, accrued interest totaled $48.9 million and $50.1 million, respectively.

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Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are regularly involved in a number of claims and litigation matters that arise in the ordinary course of business. 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 condition, and/or cash flows.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Cash Dividends

In the three and six months ended June 30, 2023, we paid aggregate cash dividends of $18.3 million and $35.1 million, respectively, compared to $17.2 million in each of the three and six months ended June 30, 2022. On July 20, 2023, we announced that our Board of Directors approved a quarterly dividend of $0.12 per share, payable on August 23, 2023 to shareholders of record as of August 9, 2023.

Treasury Shares

From time to time, our Board of Directors has authorized various share repurchase programs, which may be modified or terminated by the Board at any time. On January 20, 2022, our Board of Directors authorized a $500.0 million ordinary share repurchase program (the “January 2022 Program”), which replaced the previous $500.0 million program approved in July 2019.

In the three and six months ended June 30, 2023, we repurchased 0.6 million ordinary shares (for an aggregate value of $25.1 million). We did not repurchase any ordinary shares under this program in the three months ended March 31, 2023. In the three and six months ended June 30, 2022, we repurchased 1.7 million ordinary shares (for an aggregate value of $78.9 million) and 2.8 million ordinary shares (for an aggregate value of $146.2 million), respectively. All share repurchases in these periods were made under the January 2022 Program. As of June 30, 2023, $199.4 million remained available for repurchase under the January 2022 Program.

Accumulated Other Comprehensive Loss

The following table presents the components of accumulated other comprehensive loss for the six months ended June 30, 2023:

	Cash Flow Hedges		Defined Benefit and Retiree Healthcare Plans		Accumulated Other Comprehensive Loss
Balance as of December 31, 2022	$	15,665	$	(31,929)	$	(16,264)
Other comprehensive income before reclassifications, net of tax	24,206		—		24,206
Reclassifications from accumulated other comprehensive loss, net of tax	(12,713)		617		(12,096)
Other comprehensive income	11,493		617		12,110
Balance as of June 30, 2023	$	27,158	$	(31,312)	$	(4,154)

The following table presents the amounts reclassified from accumulated other comprehensive loss for the three and six months ended June 30, 2023 and 2022:

	For the three months ended June 30,				For the six months ended June 30,				Affected Line in Condensed Consolidated Statements of Operations
Component	2023		2022		2023		2022
Derivative instruments designated and qualifying as cash flow hedges:
Foreign currency forward contracts	$	(4,394)	$	(9,476)	$	(11,033)	$	(13,740)	Net revenue (1)
Foreign currency forward contracts	(4,403)		(2,603)		(6,100)		(5,232)		Cost of revenue (1)
Total, before taxes	(8,797)		(12,079)		(17,133)		(18,972)		Income before taxes
Income tax effect	2,269		3,116		4,420		4,894		Provision for income taxes
Total, net of taxes	$	(6,528)	$	(8,963)	$	(12,713)	$	(14,078)	Net income
Defined benefit and retiree healthcare plans	$	311	$	519	$	848	$	1,130	Other, net
Income tax effect	(87)		(139)		(231)		(322)		Provision for income taxes
Total, net of taxes	$	224	$	380	$	617	$	808	Net income

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(1)    Refer to Note 14: Derivative Instruments and Hedging Activities for additional information regarding amounts to be reclassified from accumulated other comprehensive loss in future periods.

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Fair Value Measures

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measures

Fair Value Measures

Measured on a Recurring Basis

The fair values of our assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 are shown in the below table.

	June 30, 2023		December 31, 2022
Assets
Cash equivalents (Level 1)	$	380,130	$	860,034
Foreign currency forward contracts (Level 2)	43,046		31,126
Commodity forward contracts (Level 2)	2,011		4,181
Total	$	425,187	$	895,341
Liabilities
Foreign currency forward contracts (Level 2)	$	8,162	$	9,866
Commodity forward contracts (Level 2)	5,260		4,671
Total	$	13,422	$	14,537

Refer to Note 14: Derivative Instruments and Hedging Activities for additional information regarding our forward contracts. Cash equivalents consist of U.S. Government Treasury money market funds and are classified as Level 1 as they are exchange traded in an active market.

Measured on a Nonrecurring Basis

We evaluated our goodwill and other indefinite-lived intangible assets for impairment as of October 1, 2022 and determined that they were not impaired. In the three months ended June 30, 2023, we exited the Marine Business, as discussed further in Note 5: Restructuring and Other Charges, Net. We considered the exit of the Marine Business and determined that goodwill related to the Clean Energy Solutions reporting unit was not impaired as of the date of the exit. No other events or changes in circumstances occurred in the six months ended June 30, 2023 that would have triggered the need for an additional impairment review of our goodwill and other indefinite-lived intangible assets.

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 June 30, 2023 and December 31, 2022. All fair value measures presented are categorized in Level 2 of the fair value hierarchy.

	June 30, 2023				December 31, 2022
	Carrying Value(1)		Fair Value		Carrying Value(1)		Fair Value
Liabilities
Term Loan	$	—	$	—	$	446,834	$	443,483
5.625% Senior Notes	$	400,000	$	396,000	$	400,000	$	398,000
5.0% Senior Notes	$	700,000	$	679,910	$	700,000	$	684,250
4.375% Senior Notes	$	450,000	$	400,500	$	450,000	$	400,500
3.75% Senior Notes	$	750,000	$	635,625	$	750,000	$	626,250
4.0% Senior Notes	$	1,000,000	$	882,500	$	1,000,000	$	875,000
5.875% Senior Notes	$	500,000	$	481,250	$	500,000	$	473,750

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(1)    Excluding any related debt discounts, premiums, and deferred financing costs.

In addition to the above, we hold certain equity investments that do not have readily determinable fair values for which we use the measurement alternative prescribed in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 321, Investments—Equity Securities. As of June 30, 2023 and December 31, 2022, we held equity investments under the measurement alternative of $18.3 million and $15.0 million, respectively, which are presented in other assets in the condensed consolidated balance sheets. There were no impairments or changes resulting from observable transactions for these investments in the three and six months ended June 30, 2023 and 2022 and no adjustments have been made to their carrying values as of June 30, 2023 and December 31, 2022.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Hedges of Foreign Currency Risk

For the three and six months ended June 30, 2023 and 2022, amounts excluded from the assessment of effectiveness of our foreign currency forward contracts that are designated as cash flow hedges were not material. As of June 30, 2023, we estimated that $30.1 million of net gains will be reclassified from accumulated other comprehensive loss to earnings during the twelve-month period ending June 30, 2024.

As of June 30, 2023, we had the following outstanding foreign currency forward contracts:

Notional (in millions)	Effective Date(s)	Maturity Date(s)	Index (Exchange Rates)	Weighted-Average Strike Rate	Hedge Designation (1)
11.0 EUR	June 21, 2023	July 31, 2023	Euro ("EUR") to USD	1.09 USD	Not designated
375.0 EUR	Various from July 2021 to June 2023	Various from July 2023 to June 2025	EUR to USD	1.09 USD	Cash flow hedge
770.0 CNY	June 21, 2023	July 31, 2023	USD to Chinese Renminbi ("CNY")	7.16 CNY	Not designated
300.0 CNY	Various in January 2023	Various from July 2023 to September 2023	USD to CNY	6.74 CNY	Cash flow hedge
436.0 JPY	June 21, 2023	July 31, 2023	USD to Japanese Yen ("JPY")	141.47 JPY	Not designated
26,312.5 KRW	Various from August 2021 to June 2023	Various from July 2023 to May 2025	USD to Korean Won ("KRW")	1,273.23 KRW	Cash flow hedge
25.0 MYR	June 21, 2023	July 31, 2023	USD to Malaysian Ringgit ("MYR")	4.63 MYR	Not designated
4,318.3 MXN	Various from July 2021 to June 2023	Various from July 2023 to June 2025	USD to Mexican Peso ("MXN")	20.78 MXN	Cash flow hedge
5.2 GBP	June 21, 2023	July 31, 2023	British Pound Sterling ("GBP") to USD	1.27 USD	Not designated
58.6 GBP	Various from July 2021 to June 2023	Various from July 2023 to June 2025	GBP to USD	1.23 USD	Cash flow hedge

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(1)    Derivative financial instruments not designated as hedges are used to manage our exposure to currency exchange rate risk. They are intended to preserve economic value, and they are not used for trading or speculative purposes.

Hedges of Commodity Risk

As of June 30, 2023, we had the following outstanding commodity forward contracts, none of which were designated for hedge accounting treatment in accordance with FASB ASC Topic 815, Derivatives and Hedging:

Commodity	Notional	Remaining Contracted Periods	Weighted-Average Strike Price Per Unit
Silver	862,162 troy oz.	July 2023 to May 2025	$23.31
Gold	7,169 troy oz.	July 2023 to May 2025	$1,932.48
Nickel	200,265 pounds	July 2023 to May 2025	$11.47
Aluminum	3,902,120 pounds	July 2023 to May 2025	$1.19
Copper	7,730,119 pounds	July 2023 to May 2025	$3.98
Platinum	9,047 troy oz.	July 2023 to May 2025	$982.97
Palladium	1,221 troy oz.	July 2023 to May 2025	$1,944.38

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 June 30, 2023 and December 31, 2022:

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	June 30, 2023		December 31, 2022		Balance Sheet Location	June 30, 2023		December 31, 2022
Derivatives designated as hedging instruments
Foreign currency forward contracts	Prepaid expenses and other current assets	$	35,280	$	27,114	Accrued expenses and other current liabilities	$	6,184	$	6,586
Foreign currency forward contracts	Other assets	6,357		3,763		Other long-term liabilities	1,908		3,280
Total		$	41,637	$	30,877		$	8,092	$	9,866
Derivatives not designated as hedging instruments
Commodity forward contracts	Prepaid expenses and other current assets	$	1,584	$	2,542	Accrued expenses and other current liabilities	$	4,120	$	4,066
Commodity forward contracts	Other assets	427		1,639		Other long-term liabilities	1,140		605
Foreign currency forward contracts	Prepaid expenses and other current assets	1,409		249		Accrued expenses and other current liabilities	70		—
Total		$	3,420	$	4,430		$	5,330	$	4,671

These fair value measurements were 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 and the condensed consolidated statements of comprehensive income for the three months ended June 30, 2023 and 2022:

Derivatives designated as hedging instruments	Amount of Deferred Gain/(Loss) Recognized in Other Comprehensive Income				Location of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	Amount of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income
	2023		2022			2023		2022
Foreign currency forward contracts	$	4,872	$	28,192	Net revenue	$	4,394	$	9,476
Foreign currency forward contracts	$	15,631	$	(3,765)	Cost of revenue	$	4,403	$	2,603

Derivatives not designated as hedging instruments	Amount of (Loss)/Gain Recognized in Net Income				Location of (Loss)/Gain Recognized in Net Income
	2023		2022
Commodity forward contracts	$	(6,269)	$	(18,254)	Other, net
Foreign currency forward contracts	$	4,423	$	3,165	Other, net

The following tables present the effect of our derivative financial instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income for the six months ended June 30, 2023 and 2022:

Derivatives designated as hedging instruments	Amount of Deferred Gain Recognized in Other Comprehensive Income				Location of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	Amount of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income
	2023		2022			2023		2022
Foreign currency forward contracts	$	1,284	$	33,778	Net revenue	$	11,033	$	13,740
Foreign currency forward contracts	$	31,339	$	1,380	Cost of revenue	$	6,100	$	5,232

Derivatives not designated as hedging instruments	Amount of (Loss)/Gain Recognized in Net Income				Location of (Loss)/Gain Recognized in Net Income
	2023		2022
Commodity forward contracts	$	(4,370)	$	(8,830)	Other, net
Foreign currency forward contracts	$	4,607	$	1,922	Other, net

Credit Risk Related Contingent Features

We have agreements with our derivative counterparties that contain a provision whereby if we default on our indebtedness and repayment of the indebtedness has been accelerated by the lender, then we could also be declared in default on our derivative obligations.

As of June 30, 2023, the termination value of outstanding derivatives in a liability position, excluding any adjustment for non-performance risk, was $13.6 million. As of June 30, 2023, we had 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.

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Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2023

Business Acquisitions and Divestitures [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Acquisitions

Elastic M2M

On February 11, 2022, we acquired all of the equity interests of Elastic M2M Inc. ("Elastic M2M") for an aggregate cash purchase price of $51.6 million, subject to certain post-closing items. In addition to the aggregate cash purchase price, the previous shareholders of Elastic M2M are entitled to up to $30.0 million of additional acquisition-related incentive compensation, which was pending the completion of certain technical milestones in fiscal year 2022 and achievement of financial targets in fiscal years 2022 and 2023. All technical milestones were completed in fiscal year 2022. As of December 31, 2022, we had recognized $24.7 million of this acquisition-related incentive compensation. In the three and six months ended June 30, 2023, we recognized an additional $0.2 million and $3.5 million, respectively, of this acquisition-related incentive compensation. This acquisition-related incentive compensation is recorded in restructuring and other charges, net.

Elastic M2M is an innovator of connected intelligence for operational assets across heavy-duty transport, warehouse, supply chain and logistics, industrial, light-duty passenger car, and a variety of other industry segments. Elastic M2M primarily serves telematics service providers and resellers, enabling them to leverage Elastic M2M’s cloud platform and analytics capabilities to deliver sensor-based operational insights to their end users. This acquisition augments our cloud capabilities critical to delivering actionable sensor-based insights, an increasingly important capability in this fast-growing industry segment. We are integrating Elastic M2M into the Performance Sensing reportable segment.

The allocation of the purchase price related to this acquisition was finalized in the three months ended March 31, 2023. The following table summarizes the final allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed:

Net working capital, excluding cash	$	35
Goodwill	28,211
Other intangible assets	27,700
Deferred income tax liabilities	(5,925)
Fair value of net assets acquired, excluding cash and cash equivalents	50,021
Cash and cash equivalents	1,597
Fair value of net assets acquired	$	51,618

The goodwill recognized as a result of this acquisition represents future economic benefits expected to arise from synergies from combining operations and the extension of existing customer relationships. The goodwill recognized in this acquisition will not be deductible for tax purposes.

In connection with the allocation of purchase price to the assets acquired and liabilities assumed, we identified certain definite-lived intangible assets. The following table presents the acquired intangible assets, their estimated fair values, and weighted-average lives:

	Acquisition Date Fair Value		Weighted-Average Lives (years)
Acquired definite-lived intangible assets
Customer relationships	$	17,500	13
Completed technologies	10,200		10
Total definite-lived intangible assets acquired	$	27,700	12

The definite-lived intangible assets were valued using the income approach. We primarily used the relief-from-royalty method to value completed technologies, and we used the multi-period excess earnings method to value customer relationships. These valuation methods incorporate assumptions including expected discounted future net cash flows resulting from either the future estimated after-tax royalty payments avoided as a result of owning the completed technologies or the future earnings related to existing customer relationships.

Dynapower

On July 12, 2022, we completed the acquisition of all of the outstanding equity interests of DP Acquisition Corp ("Dynapower"), a leader in power conversion systems including inverters, converters, and rectifiers for renewable energy generation, green hydrogen production, electric vehicle charging stations, and microgrid applications, as well as industrial and defense applications, for an aggregate cash purchase price of $577.5 million, subject to certain post-closing items. Dynapower also provides aftermarket sales and service to maintain its equipment in the field.

Dynapower is a foundational addition to our Clean Energy Solutions strategy and complements our recent acquisitions of GIGAVAC, Lithium Balance, and Spear. We are integrating Dynapower into our Sensing Solutions reportable segment.

We recorded measurement period adjustments in the three months ended June 30, 2023 that predominantly reflected an updated valuation of definite-lived intangible assets. Accordingly, definite-lived intangible assets increased $57.2 million (primarily customer relationships). Along with other adjustments, including the associated deferred income tax liability on acquired intangibles, goodwill decreased $41.0 million. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed:

Net working capital, excluding cash	$	12,514
Property, plant and equipment	1,846
Goodwill	377,267
Other intangible assets	221,600
Other assets	1,656
Deferred income tax liabilities	(40,785)
Other long-term liabilities	(1,035)
Fair value of net assets acquired, excluding cash and cash equivalents	573,063
Cash and cash equivalents	4,410
Fair value of net assets acquired	$	577,473

The allocation of purchase price of Dynapower is preliminary and is based on management’s judgments after evaluating several factors, including preliminary valuation assessments of intangible assets. The final allocation of the purchase price to the assets acquired will be completed when the final valuations are completed. The preliminary goodwill recognized as a result of this acquisition represents future economic benefits expected to arise from synergies from combining operations and the extension of existing customer relationships. The goodwill recognized in this acquisition will not be deductible for tax purposes.

In connection with the preliminary allocation of purchase price to the assets acquired and liabilities assumed, we identified certain definite-lived intangible assets. The following table presents the acquired intangible assets, their estimated fair values, and weighted-average lives:

	Acquisition Date Fair Value		Weighted-Average Lives (years)
Acquired definite-lived intangible assets
Customer relationships	$	79,800	16
Backlog	15,500		3
Completed technologies	92,100		15
Tradenames	34,200		18
Total definite-lived intangible assets acquired	$	221,600	15

The definite-lived intangible assets were valued using the income approach. We primarily used the relief-from-royalty method to value completed technologies and tradenames, and we used the multi-period excess earnings method to value customer relationships. These valuation methods incorporate assumptions including expected discounted future net cash flows resulting from either the future estimated after-tax royalty payments avoided as a result of owning the completed technologies or the future earnings related to existing customer relationships.

Divestiture - Qinex Business

On May 27, 2022, we executed an asset purchase agreement (the "APA") whereby we agreed to sell various assets and liabilities comprising our semiconductor test and thermal business (collectively, the "Qinex Business") to LTI Holdings, Inc. ("LTI") in exchange for consideration of approximately $219.0 million, subject to working capital and other adjustments. Concurrent with the execution of the APA, the parties entered into a Contract Manufacturing Agreement ("CMA") and a Transition Services Agreement ("TSA"), each for nominal consideration.

The CMA commenced at closing of the transaction ("Closing") and had a term of either six or nine months, depending on the manufacturing site. LTI also had the option of extending each contract for an additional three months. The period from Closing to the end of the CMA term (including extensions, if any) is referred to as the "Transition Period." The terms of the CMA required that we provide manufacturing and distribution services for the Transition Period. The TSA commenced at Closing and had a term that varied depending on the nature of the support services, ranging from one month to the entirety of the Transition Period. The terms of the TSA required that we provide various forms of commercial, operational, and back-office support to LTI. The Transition Period ended in the three months ended March 31, 2023.

Closing occurred in July 2022, at which time assets of approximately $70 million (including allocated goodwill of $45 million) and liabilities of approximately $2 million transferred to LTI. Transferred assets and liabilities excluded inventories and accounts payable, which transferred to LTI at the end of the Transition Period. We received cash consideration of $198.8 million at Closing and recognized a pre-tax gain of $135.1 million in the three months ended September 30, 2022. Cash consideration received at Closing excluded amounts held in escrow until various milestones were met through the Transition Period. In the three months ended June 30, 2023, we received an escrow payment of $15.0 million, which includes $10.0 million (presented in cash flows from operating activities) related to the transfer of inventory. Approximately $4.0 million remains in escrow as of June 30, 2023.

The Qinex Business manufactured semiconductor burn-in test sockets and thermal control solutions and was formed through the combination of Sensata’s semiconductor interconnect business with Wells-CTI in 2012. The Qinex Business was included in our Sensing Solutions segment (and Industrial Solutions reporting unit). We allocated goodwill to the Qinex Business based on its fair value relative to the total fair value of the Industrial Solutions reporting unit.

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Segment Reporting

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment ReportingWe present financial information for two reportable segments, Performance Sensing and Sensing Solutions. The Performance Sensing reportable segment consists of two operating segments, Automotive and HVOR, which meet the criteria for aggregation in FASB ASC Topic 280, Segment Reporting. The Sensing Solutions reportable segment is also an operating segment. Effective April 1, 2023, we moved our material handling products from the HVOR operating segment (in the Performance Sensing reportable segment) to the Sensing Solutions operating segment to align with new management reporting. This product move resulted in a reallocation of $57.1 million of goodwill from the HVOR reporting unit to the Industrial Solutions reporting unit based on its fair value relative to the total fair value of the HVOR reporting unit.

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 operating income, which excludes amortization of intangible assets, restructuring and other charges, net, certain costs associated with our strategic megatrend initiatives, and certain corporate costs or credits not associated with the operations of the segment, including share-based compensation expense and a portion of depreciation expense associated with assets recognized in connection with acquisitions. Corporate and other expenses excluded from an operating (and reportable) 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 operating income, 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, operating income or other measures of financial performance prepared in accordance with U.S. GAAP. The accounting policies of each of our operating and reportable segments are materially consistent with those described in Note 2: Significant Accounting Policies of the audited consolidated financial statements and notes thereto included in our 2022 Annual Report.

The following table presents net revenue and segment operating income for our reportable segments and other operating results not allocated to our reportable segments for the three and six months ended June 30, 2023 and 2022. The amounts previously reported in the table below for the three and six months ended June 30, 2022 have been retrospectively recast to reflect the move of the material handling products between operating segments as described above. In addition, the six months ended June 30, 2023 includes amounts for the three months ended March 31, 2023 that have been retrospectively adjusted for this change.

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net revenue:
Performance Sensing	$	757,444	$	731,645	$	1,495,712	$	1,434,340
Sensing Solutions	304,668		288,903		564,575		561,978
Total net revenue	$	1,062,112	$	1,020,548	$	2,060,287	$	1,996,318
Segment operating income (as defined above):
Performance Sensing	$	191,147	$	179,293	$	373,887	$	353,507
Sensing Solutions	84,152		85,714		159,468		164,653
Total segment operating income	275,299		265,007		533,355		518,160
Corporate and other	(81,464)		(76,362)		(143,905)		(152,485)
Amortization of intangible assets	(54,563)		(36,805)		(95,337)		(74,172)
Restructuring and other charges, net	(21,259)		(12,897)		(27,258)		(26,630)
Operating income	118,013		138,943		266,855		264,873
Interest expense, net	(38,105)		(44,842)		(78,196)		(90,287)
Other, net	(10,924)		(39,240)		(9,532)		(89,696)
Income before taxes	$	68,984	$	54,861	$	179,127	$	84,890

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Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("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 interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (the "SEC") on February 13, 2023 (the "2022 Annual Report").All U.S. dollar ("USD") and share amounts presented, except per share amounts, are stated in thousands, unless otherwise indicated.

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following tables present net revenue disaggregated by segment and end market for the three and six months ended June 30, 2023 and 2022 for our two reportable segments, Performance Sensing ("PS") and Sensing Solutions ("SS"):

	For the three months ended June 30, 2023						For the three months ended June 30, 2022 (3)
	PS		SS		Total		PS		SS		Total
Automotive	$	530,268	$	9,550	$	539,818	$	506,232	$	9,932	$	516,164
HVOR (1)	227,176		—		227,176		225,413		—		225,413
Industrial	—		185,202		185,202		—		137,331		137,331
Appliance and HVAC (2)	—		50,952		50,952		—		57,675		57,675
Aerospace	—		46,832		46,832		—		38,558		38,558
Other	—		12,132		12,132		—		45,407		45,407
Total	$	757,444	$	304,668	$	1,062,112	$	731,645	$	288,903	$	1,020,548

	For the six months ended June 30, 2023 (3)						For the six months ended June 30, 2022 (3)
	PS		SS		Total		PS		SS		Total
Automotive	$	1,047,152	$	17,684	$	1,064,836	$	1,008,594	$	19,217	$	1,027,811
HVOR (1)	448,560		—		448,560		425,746		—		425,746
Industrial	—		333,714		333,714		—		266,952		266,952
Appliance and HVAC (2)	—		98,426		98,426		—		116,500		116,500
Aerospace	—		91,158		91,158		—		71,828		71,828
Other	—		23,593		23,593		—		87,481		87,481
Total	$	1,495,712	$	564,575	$	2,060,287	$	1,434,340	$	561,978	$	1,996,318

___________________________________

(1)    Heavy vehicle and off-road

(2)    Heating, ventilation and air conditioning

(3)    Effective April 1, 2023, we moved our material handling products from the HVOR operating segment (in the Performance Sensing reportable segment) to the Sensing Solutions operating segment to align with new management reporting. The amounts previously reported in the tables above for the three and six months ended June 30, 2022 have been retrospectively recast to reflect this change. In addition, the six months ended June 30, 2023 includes amounts for the three months ended March 31, 2023 that have been retrospectively adjusted for this change.

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Share-Based Payment Plans (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Non-Cash Compensation Expense Related to Equity Awards

The following table presents the components of non-cash compensation expense related to our equity awards for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock options	$	(205)	$	2	$	(86)	$	309
Restricted securities	10,606		9,197		17,693		15,430
Share-based compensation expense	$	10,401	$	9,199	$	17,607	$	15,739

Schedule of Equity Awards

We granted the following restricted stock units ("RSUs" and each, an "RSU") and performance-based restricted stock units ("PRSUs" and each, a "PRSU") under the Sensata Technologies Holding plc 2021 Equity Incentive Plan during the six months ended June 30, 2023:

Awards Granted To:	Type of Award	Number of Units Granted (in thousands)	Weighted Average Grant Date Fair Value
Directors	RSU (1)	33	$	40.95
Various executives and employees	RSU (2)	547	$	49.57
Various executives and employees	PRSU (3)	241	$	49.53
Various executives and employees	PRSU (4)	102	$	55.50

____________________________________

(1)    These RSUs cliff vest one year from the grant date (May and June 2024).

(2)    These RSUs vest ratably over three years, one-third per year beginning on the first anniversary of the grant date. These RSUs will fully vest on various dates between January 2026 and June 2026.

(3)    These PRSUs vest on various dates between April 2026 and June 2026. The number of units that ultimately vest will be between 0% and 150% and is dependent on the achievement of certain performance criteria.

(4)    These awards include certain PRSUs with market performance conditions that will be evaluated relative to the performance of certain peers as defined in the award agreement. The number of units that ultimately vest (in April 2026) will be from 0% to 150%, depending on achievement of these performance criteria. Total grant date value of these PRSUs is approximately $5.6 million and was valued using the Monte Carlo method. Related share-based compensation expense recognized in the three and six months ended June 30, 2023 was $0.6 million.

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Restructuring and Other Charges, Net (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Other Charges, Net

The following table presents the components of restructuring and other charges, net for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Severance costs, net (1)	$	4,749	$	—	$	8,962	$	587
Facility and other exit costs	310		1,241		535		2,289
Gain on sale of business	—		—		(5,877)		—
Acquisition-related compensation arrangements (2)	3,330		12,834		10,602		31,089
Other (1)(2)(3)	12,870		(1,178)		13,036		(7,335)
Restructuring and other charges, net	$	21,259	$	12,897	$	27,258	$	26,630

___________________________________

(1)    The three and six months ended June 30, 2023 include certain costs to exit the marine energy storage business (the "Marine Business") of Spear Power Systems (“Spear”) as discussed below.

(2)    We have reclassified acquisition-related compensation arrangements for the three and six months ended June 30, 2022 from the "other" caption within restructuring and other charges, net, to correspond to current period presentation.

(3)    The six months ended June 30, 2022 primarily includes gains related to changes in the fair value of acquisition-related contingent consideration amounts.

Schedule of Severance Liability

The following table presents a rollforward of our severance liability for the six months ended June 30, 2023:

	Severance
Balance as of December 31, 2022	$	8,617
Charges, net of reversals	8,962
Payments	(12,344)
Foreign currency remeasurement	166
Balance as of June 30, 2023	$	5,401

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Other, Net (Tables)

6 Months Ended

Jun. 30, 2023

Other Income and Expenses [Abstract]

Schedule of Other, Net

The following table presents the components of other, net for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Currency remeasurement loss on net monetary assets	$	(9,307)	$	(14,090)	$	(10,566)	$	(14,157)
Gain on foreign currency forward contracts	4,423		3,165		4,607		1,922
Loss on commodity forward contracts	(6,269)		(18,254)		(4,370)		(8,830)
Loss on debt financing	(372)		—		(857)		—
Mark-to-market loss on equity investments, net	(302)		(11,821)		(302)		(71,100)
Net periodic benefit cost, excluding service cost	(810)		(639)		(1,781)		(1,394)
Other	1,713		2,399		3,737		3,863
Other, net	$	(10,924)	$	(39,240)	$	(9,532)	$	(89,696)

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The following table presents the provision for income taxes for the three and six months ended June 30, 2023 and 2022:

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Provision for income taxes	$	19,873	$	20,020	$	43,599	$	27,608

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Net Income per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Weighted-Average Ordinary Shares Outstanding

For the three and six months ended June 30, 2023 and 2022 the weighted-average ordinary shares outstanding used to calculate basic and diluted net income per share were as follows:

	For the three months ended		For the six months ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Basic weighted-average ordinary shares outstanding	152,700	156,477	152,609	156,950
Dilutive effect of stock options	55	190	103	331
Dilutive effect of unvested restricted securities	309	327	482	531
Diluted weighted-average ordinary shares outstanding	153,064	156,994	153,194	157,812

Schedule of Antidilutive Securities

These potential ordinary shares were as follows:

	For the three months ended		For the six months ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Anti-dilutive shares excluded	1,625	1,426	1,003	715
Contingently issuable shares excluded	1,366	1,383	1,317	1,192

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Inventories (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Components of Inventories

The following table presents the components of inventories as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
Finished goods	$	223,295	$	202,531
Work-in-process	109,297		117,691
Raw materials	327,490		324,653
Inventories	$	660,082	$	644,875

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Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt, Finance Lease, and Other Financing Obligations

The following table presents the components of long-term debt, finance lease and other financing obligations as of June 30, 2023 and December 31, 2022:

	Maturity Date	June 30, 2023		December 31, 2022
Term Loan (1)	September 20, 2026	$	—	$	446,834
5.625% Senior Notes	November 1, 2024	400,000		400,000
5.0% Senior Notes	October 1, 2025	700,000		700,000
4.375% Senior Notes	February 15, 2030	450,000		450,000
3.75% Senior Notes	February 15, 2031	750,000		750,000
4.0% Senior Notes	April 15, 2029	1,000,000		1,000,000
5.875% Senior Notes	September 1, 2030	500,000		500,000
Less: debt discount, net of premium		(2,355)		(3,360)
Less: deferred financing costs		(27,138)		(29,916)
Less: current portion		—		(254,630)
Long-term debt, net		$	3,770,507	$	3,958,928
Finance lease and other financing obligations		$	25,580	$	26,583
Less: current portion		(1,809)		(1,841)
Finance lease and other financing obligations, less current portion		$	23,771	$	24,742

___________________________________

(1)    On February 6, 2023, we prepaid $250.0 million of outstanding principal on our Term Loan balance. Accordingly, that portion of the principal balance outstanding on the Term Loan as of December 31, 2022 was presented as current portion of long-term debt. On May 3, 2023, we prepaid $196.8 million of outstanding principal on the Term Loan, representing the remaining balance on the Term Loan as of that date plus $0.5 million in interest.

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Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Roll Forward of Components of Accumulated Other Comprehensive Loss

The following table presents the components of accumulated other comprehensive loss for the six months ended June 30, 2023:

	Cash Flow Hedges		Defined Benefit and Retiree Healthcare Plans		Accumulated Other Comprehensive Loss
Balance as of December 31, 2022	$	15,665	$	(31,929)	$	(16,264)
Other comprehensive income before reclassifications, net of tax	24,206		—		24,206
Reclassifications from accumulated other comprehensive loss, net of tax	(12,713)		617		(12,096)
Other comprehensive income	11,493		617		12,110
Balance as of June 30, 2023	$	27,158	$	(31,312)	$	(4,154)

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Loss

The following table presents the amounts reclassified from accumulated other comprehensive loss for the three and six months ended June 30, 2023 and 2022:

	For the three months ended June 30,				For the six months ended June 30,				Affected Line in Condensed Consolidated Statements of Operations
Component	2023		2022		2023		2022
Derivative instruments designated and qualifying as cash flow hedges:
Foreign currency forward contracts	$	(4,394)	$	(9,476)	$	(11,033)	$	(13,740)	Net revenue (1)
Foreign currency forward contracts	(4,403)		(2,603)		(6,100)		(5,232)		Cost of revenue (1)
Total, before taxes	(8,797)		(12,079)		(17,133)		(18,972)		Income before taxes
Income tax effect	2,269		3,116		4,420		4,894		Provision for income taxes
Total, net of taxes	$	(6,528)	$	(8,963)	$	(12,713)	$	(14,078)	Net income
Defined benefit and retiree healthcare plans	$	311	$	519	$	848	$	1,130	Other, net
Income tax effect	(87)		(139)		(231)		(322)		Provision for income taxes
Total, net of taxes	$	224	$	380	$	617	$	808	Net income

___________________________________

(1)    Refer to Note 14: Derivative Instruments and Hedging Activities for additional information regarding amounts to be reclassified from accumulated other comprehensive loss in future periods.

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Fair Value Measures (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The fair values of our assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 are shown in the below table.

	June 30, 2023		December 31, 2022
Assets
Cash equivalents (Level 1)	$	380,130	$	860,034
Foreign currency forward contracts (Level 2)	43,046		31,126
Commodity forward contracts (Level 2)	2,011		4,181
Total	$	425,187	$	895,341
Liabilities
Foreign currency forward contracts (Level 2)	$	8,162	$	9,866
Commodity forward contracts (Level 2)	5,260		4,671
Total	$	13,422	$	14,537

Schedule of 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 June 30, 2023 and December 31, 2022. All fair value measures presented are categorized in Level 2 of the fair value hierarchy.

	June 30, 2023				December 31, 2022
	Carrying Value(1)		Fair Value		Carrying Value(1)		Fair Value
Liabilities
Term Loan	$	—	$	—	$	446,834	$	443,483
5.625% Senior Notes	$	400,000	$	396,000	$	400,000	$	398,000
5.0% Senior Notes	$	700,000	$	679,910	$	700,000	$	684,250
4.375% Senior Notes	$	450,000	$	400,500	$	450,000	$	400,500
3.75% Senior Notes	$	750,000	$	635,625	$	750,000	$	626,250
4.0% Senior Notes	$	1,000,000	$	882,500	$	1,000,000	$	875,000
5.875% Senior Notes	$	500,000	$	481,250	$	500,000	$	473,750

___________________________________

(1)    Excluding any related debt discounts, premiums, and deferred financing costs.

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Derivative Instruments

As of June 30, 2023, we had the following outstanding foreign currency forward contracts:

Notional (in millions)	Effective Date(s)	Maturity Date(s)	Index (Exchange Rates)	Weighted-Average Strike Rate	Hedge Designation (1)
11.0 EUR	June 21, 2023	July 31, 2023	Euro ("EUR") to USD	1.09 USD	Not designated
375.0 EUR	Various from July 2021 to June 2023	Various from July 2023 to June 2025	EUR to USD	1.09 USD	Cash flow hedge
770.0 CNY	June 21, 2023	July 31, 2023	USD to Chinese Renminbi ("CNY")	7.16 CNY	Not designated
300.0 CNY	Various in January 2023	Various from July 2023 to September 2023	USD to CNY	6.74 CNY	Cash flow hedge
436.0 JPY	June 21, 2023	July 31, 2023	USD to Japanese Yen ("JPY")	141.47 JPY	Not designated
26,312.5 KRW	Various from August 2021 to June 2023	Various from July 2023 to May 2025	USD to Korean Won ("KRW")	1,273.23 KRW	Cash flow hedge
25.0 MYR	June 21, 2023	July 31, 2023	USD to Malaysian Ringgit ("MYR")	4.63 MYR	Not designated
4,318.3 MXN	Various from July 2021 to June 2023	Various from July 2023 to June 2025	USD to Mexican Peso ("MXN")	20.78 MXN	Cash flow hedge
5.2 GBP	June 21, 2023	July 31, 2023	British Pound Sterling ("GBP") to USD	1.27 USD	Not designated
58.6 GBP	Various from July 2021 to June 2023	Various from July 2023 to June 2025	GBP to USD	1.23 USD	Cash flow hedge

___________________________________

(1)    Derivative financial instruments not designated as hedges are used to manage our exposure to currency exchange rate risk. They are intended to preserve economic value, and they are not used for trading or speculative purposes.

As of June 30, 2023, we had the following outstanding commodity forward contracts, none of which were designated for hedge accounting treatment in accordance with FASB ASC Topic 815, Derivatives and Hedging:

Commodity	Notional	Remaining Contracted Periods	Weighted-Average Strike Price Per Unit
Silver	862,162 troy oz.	July 2023 to May 2025	$23.31
Gold	7,169 troy oz.	July 2023 to May 2025	$1,932.48
Nickel	200,265 pounds	July 2023 to May 2025	$11.47
Aluminum	3,902,120 pounds	July 2023 to May 2025	$1.19
Copper	7,730,119 pounds	July 2023 to May 2025	$3.98
Platinum	9,047 troy oz.	July 2023 to May 2025	$982.97
Palladium	1,221 troy oz.	July 2023 to May 2025	$1,944.38

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 June 30, 2023 and December 31, 2022:

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	June 30, 2023		December 31, 2022		Balance Sheet Location	June 30, 2023		December 31, 2022
Derivatives designated as hedging instruments
Foreign currency forward contracts	Prepaid expenses and other current assets	$	35,280	$	27,114	Accrued expenses and other current liabilities	$	6,184	$	6,586
Foreign currency forward contracts	Other assets	6,357		3,763		Other long-term liabilities	1,908		3,280
Total		$	41,637	$	30,877		$	8,092	$	9,866
Derivatives not designated as hedging instruments
Commodity forward contracts	Prepaid expenses and other current assets	$	1,584	$	2,542	Accrued expenses and other current liabilities	$	4,120	$	4,066
Commodity forward contracts	Other assets	427		1,639		Other long-term liabilities	1,140		605
Foreign currency forward contracts	Prepaid expenses and other current assets	1,409		249		Accrued expenses and other current liabilities	70		—
Total		$	3,420	$	4,430		$	5,330	$	4,671

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 and the condensed consolidated statements of comprehensive income for the three months ended June 30, 2023 and 2022:

Derivatives designated as hedging instruments	Amount of Deferred Gain/(Loss) Recognized in Other Comprehensive Income				Location of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	Amount of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income
	2023		2022			2023		2022
Foreign currency forward contracts	$	4,872	$	28,192	Net revenue	$	4,394	$	9,476
Foreign currency forward contracts	$	15,631	$	(3,765)	Cost of revenue	$	4,403	$	2,603

Derivatives not designated as hedging instruments	Amount of (Loss)/Gain Recognized in Net Income				Location of (Loss)/Gain Recognized in Net Income
	2023		2022
Commodity forward contracts	$	(6,269)	$	(18,254)	Other, net
Foreign currency forward contracts	$	4,423	$	3,165	Other, net

The following tables present the effect of our derivative financial instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income for the six months ended June 30, 2023 and 2022:

Derivatives designated as hedging instruments	Amount of Deferred Gain Recognized in Other Comprehensive Income				Location of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	Amount of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income
	2023		2022			2023		2022
Foreign currency forward contracts	$	1,284	$	33,778	Net revenue	$	11,033	$	13,740
Foreign currency forward contracts	$	31,339	$	1,380	Cost of revenue	$	6,100	$	5,232

Derivatives not designated as hedging instruments	Amount of (Loss)/Gain Recognized in Net Income				Location of (Loss)/Gain Recognized in Net Income
	2023		2022
Commodity forward contracts	$	(4,370)	$	(8,830)	Other, net
Foreign currency forward contracts	$	4,607	$	1,922	Other, net

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Acquisitions and Divestitures (Tables)

6 Months Ended

Jun. 30, 2023

Business Acquisitions and Divestitures [Abstract]

Schedule of Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the final allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed:

Net working capital, excluding cash	$	35
Goodwill	28,211
Other intangible assets	27,700
Deferred income tax liabilities	(5,925)
Fair value of net assets acquired, excluding cash and cash equivalents	50,021
Cash and cash equivalents	1,597
Fair value of net assets acquired	$	51,618

The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed:

Net working capital, excluding cash	$	12,514
Property, plant and equipment	1,846
Goodwill	377,267
Other intangible assets	221,600
Other assets	1,656
Deferred income tax liabilities	(40,785)
Other long-term liabilities	(1,035)
Fair value of net assets acquired, excluding cash and cash equivalents	573,063
Cash and cash equivalents	4,410
Fair value of net assets acquired	$	577,473

Schedule of Acquired Intangible Assets and Weighted Average Useful Lives

The following table presents the acquired intangible assets, their estimated fair values, and weighted-average lives:

	Acquisition Date Fair Value		Weighted-Average Lives (years)
Acquired definite-lived intangible assets
Customer relationships	$	17,500	13
Completed technologies	10,200		10
Total definite-lived intangible assets acquired	$	27,700	12

The following table presents the acquired intangible assets, their estimated fair values, and weighted-average lives:

	Acquisition Date Fair Value		Weighted-Average Lives (years)
Acquired definite-lived intangible assets
Customer relationships	$	79,800	16
Backlog	15,500		3
Completed technologies	92,100		15
Tradenames	34,200		18
Total definite-lived intangible assets acquired	$	221,600	15

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

The following table presents net revenue and segment operating income for our reportable segments and other operating results not allocated to our reportable segments for the three and six months ended June 30, 2023 and 2022. The amounts previously reported in the table below for the three and six months ended June 30, 2022 have been retrospectively recast to reflect the move of the material handling products between operating segments as described above. In addition, the six months ended June 30, 2023 includes amounts for the three months ended March 31, 2023 that have been retrospectively adjusted for this change.

	For the three months ended				For the six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net revenue:
Performance Sensing	$	757,444	$	731,645	$	1,495,712	$	1,434,340
Sensing Solutions	304,668		288,903		564,575		561,978
Total net revenue	$	1,062,112	$	1,020,548	$	2,060,287	$	1,996,318
Segment operating income (as defined above):
Performance Sensing	$	191,147	$	179,293	$	373,887	$	353,507
Sensing Solutions	84,152		85,714		159,468		164,653
Total segment operating income	275,299		265,007		533,355		518,160
Corporate and other	(81,464)		(76,362)		(143,905)		(152,485)
Amortization of intangible assets	(54,563)		(36,805)		(95,337)		(74,172)
Restructuring and other charges, net	(21,259)		(12,897)		(27,258)		(26,630)
Operating income	118,013		138,943		266,855		264,873
Interest expense, net	(38,105)		(44,842)		(78,196)		(90,287)
Other, net	(10,924)		(39,240)		(9,532)		(89,696)
Income before taxes	$	68,984	$	54,861	$	179,127	$	84,890

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Revenue Recognition (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($) segment	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($) segment
Revenue from Contract with Customer [Abstract]
Number of reporting segments | segment	2	2	2	2
Disaggregation of Revenue [Line Items]
Net revenue	$ 1,062,112	$ 1,020,548	$ 2,060,287	$ 1,996,318
PS
Disaggregation of Revenue [Line Items]
Net revenue	757,444	731,645	1,495,712	1,434,340
SS
Disaggregation of Revenue [Line Items]
Net revenue	304,668	288,903	564,575	561,978
Automotive
Disaggregation of Revenue [Line Items]
Net revenue	539,818	516,164	1,064,836	1,027,811
Automotive | PS
Disaggregation of Revenue [Line Items]
Net revenue	530,268	506,232	1,047,152	1,008,594
Automotive | SS
Disaggregation of Revenue [Line Items]
Net revenue	9,550	9,932	17,684	19,217
HVOR
Disaggregation of Revenue [Line Items]
Net revenue	227,176	225,413	448,560	425,746
HVOR | PS
Disaggregation of Revenue [Line Items]
Net revenue	227,176	225,413	448,560	425,746
HVOR | SS
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Industrial
Disaggregation of Revenue [Line Items]
Net revenue	185,202	137,331	333,714	266,952
Industrial | PS
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Industrial | SS
Disaggregation of Revenue [Line Items]
Net revenue	185,202	137,331	333,714	266,952
Appliance and HVAC
Disaggregation of Revenue [Line Items]
Net revenue	50,952	57,675	98,426	116,500
Appliance and HVAC | PS
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Appliance and HVAC | SS
Disaggregation of Revenue [Line Items]
Net revenue	50,952	57,675	98,426	116,500
Aerospace
Disaggregation of Revenue [Line Items]
Net revenue	46,832	38,558	91,158	71,828
Aerospace | PS
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Aerospace | SS
Disaggregation of Revenue [Line Items]
Net revenue	46,832	38,558	91,158	71,828
Other
Disaggregation of Revenue [Line Items]
Net revenue	12,132	45,407	23,593	87,481
Other | PS
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Other | SS
Disaggregation of Revenue [Line Items]
Net revenue	$ 12,132	$ 45,407	$ 23,593	$ 87,481

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Share-Based Payment Plans - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 10,401	$ 9,199	$ 17,607	$ 15,739
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	(205)	2	(86)	309
Restricted securities
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 10,606	$ 9,197	$ 17,693	$ 15,430

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Share-Based Payment Plans - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 10,401	$ 9,199	$ 17,607	$ 15,739
Directors | RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)			33
Weighted-average grant date fair value (in dollars per share)			$ 40.95
Award vesting period			1 year
Various executives and employees | RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)			547
Weighted-average grant date fair value (in dollars per share)			$ 49.57
Award vesting period			3 years
Award vesting percentage			33.33%
Various executives and employees | PRSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)			241
Weighted-average grant date fair value (in dollars per share)			$ 49.53
Various executives and employees | PRSU | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			0.00%
Various executives and employees | PRSU | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			150.00%
Various executives and employees | PRSU with Performance Criteria Evaluated relative to Certain Peers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)			102
Weighted-average grant date fair value (in dollars per share)			$ 55.50
Total grant date value			$ 5,600
Share-based compensation expense	$ 600		$ 600
Various executives and employees | PRSU with Performance Criteria Evaluated relative to Certain Peers | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			0.00%
Various executives and employees | PRSU with Performance Criteria Evaluated relative to Certain Peers | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			150.00%

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Restructuring and Other Charges, Net - Components of Restructuring and Other Charges, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Severance costs, net	$ 4,749	$ 0	$ 8,962	$ 587
Facility and other exit costs	310	1,241	535	2,289
Gain on sale of business	0	0	(5,877)	0
Acquisition-related compensation arrangements	3,330	12,834	10,602	31,089
Other	12,870	(1,178)	13,036	(7,335)
Restructuring and other charges, net	$ 21,259	$ 12,897	$ 27,258	$ 26,630

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Restructuring and Other Charges, Net - Schedule of Severance Liability (Details) - Employee Severance $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 8,617
Charges, net of reversals	8,962
Payments	(12,344)
Foreign currency remeasurement	166
Restructuring reserve, ending balance	$ 5,401

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Restructuring and Other Charges, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Business exit costs	$ 310	$ 1,241	$ 535	$ 2,289
Amortization of intangible assets	54,563	36,805	95,337	74,172
Severance costs, net	4,749	0	8,962	587
Other charges	12,870	$ (1,178)	13,036	$ (7,335)
Exiting Marine Business
Restructuring Cost and Reserve [Line Items]
Business exit costs	38,300		38,300
Amortization of intangible assets	13,500		13,500
Inventory write-down	10,500		10,500
Severance costs, net	1,200		1,200
Tangible asset impairments	1,700		1,700
Write-down of accounts receivables	2,300		2,300
Other charges	$ 9,100		$ 9,100

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Other, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other Income and Expenses [Abstract]
Currency remeasurement loss on net monetary assets	$ (9,307)	$ (14,090)	$ (10,566)	$ (14,157)
Gain on foreign currency forward contracts	4,423	3,165	4,607	1,922
Loss on commodity forward contracts	(6,269)	(18,254)	(4,370)	(8,830)
Loss on debt financing	(372)	0	(857)	0
Mark-to-market loss on equity investments, net	(302)	(11,821)	(302)	(71,100)
Net periodic benefit cost, excluding service cost	(810)	(639)	(1,781)	(1,394)
Other	1,713	2,399	3,737	3,863
Other, net	$ (10,924)	$ (39,240)	$ (9,532)	$ (89,696)

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 19,873	$ 20,020	$ 43,599	$ 27,608

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Net Income per Share - Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Basic weighted-average ordinary shares outstanding (in shares)	152,700	156,477	152,609	156,950
Dilutive effect of stock options (in shares)	55	190	103	331
Dilutive effect of unvested restricted securities (in shares)	309	327	482	531
Diluted weighted-average ordinary shares outstanding (in shares)	153,064	156,994	153,194	157,812

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Net Income per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
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)	1,625	1,426	1,003	715
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)	1,366	1,383	1,317	1,192

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Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 223,295	$ 202,531
Work-in-process	109,297	117,691
Raw materials	327,490	324,653
Inventories	$ 660,082	$ 644,875

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Debt - Schedule of Long-term Debt, Finance Lease, and Other Financing Obligations (Details) - USD ($) $ in Thousands	May 03, 2023	Feb. 06, 2023	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Less: debt discount, net of premium			$ (2,355)	$ (3,360)
Less: deferred financing costs			(27,138)	(29,916)
Less: current portion			0	(254,630)
Long-term debt, net			3,770,507	3,958,928
Finance lease and other financing obligations			25,580	26,583
Less: current portion			(1,809)	(1,841)
Finance lease and other financing obligations, less current portion			$ 23,771	24,742
Term Loan
Debt Instrument [Line Items]
Prepayments of long-term debt	$ 196,800	$ 250,000
Payment of Term Loan accrued interest	$ 500
5.625% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			5.625%
5.0% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			5.00%
4.375% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			4.375%
3.75% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			3.75%
4.0% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			4.00%
5.875% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			5.875%
Secured Debt | Term Loan
Debt Instrument [Line Items]
Gross long-term debt			$ 0	446,834
Senior Notes | 5.625% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			5.625%
Gross long-term debt			$ 400,000	400,000
Senior Notes | 5.0% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			5.00%
Gross long-term debt			$ 700,000	700,000
Senior Notes | 4.375% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			4.375%
Gross long-term debt			$ 450,000	450,000
Senior Notes | 3.75% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			3.75%
Gross long-term debt			$ 750,000	750,000
Senior Notes | 4.0% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			4.00%
Gross long-term debt			$ 1,000,000	1,000,000
Senior Notes | 5.875% Senior Notes
Debt Instrument [Line Items]
Debt, stated interest rate			5.875%
Gross long-term debt			$ 500,000	$ 500,000

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Debt - Narrative (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Accrued interest	$ 48,900,000	$ 50,100,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Amount available under revolving credit facility	746,100,000
Maximum borrowing capacity	750,000,000
Letters of credit outstanding	3,900,000
Letter of Credit | Line of Credit
Debt Instrument [Line Items]
Long-term line of credit	$ 0

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Shareholders' Equity - Narrative (Details) - USD ($)		3 Months Ended			6 Months Ended
	Jul. 20, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jan. 20, 2022
Equity, Class of Treasury Stock [Line Items]
Dividends paid		$ 18,300,000		$ 17,200,000	$ 35,113,000	$ 17,225,000
Repurchase of ordinary shares		$ (25,125,000)		$ (78,898,000)	$ (25,125,000)	$ (146,156,000)
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Dividends declared pre share (in dollars per share)	$ 0.12
Treasury Shares
Equity, Class of Treasury Stock [Line Items]
Repurchase of ordinary shares (in shares)		590,000	0	1,693,000	590,000	2,831,000
Repurchase of ordinary shares		$ (25,125,000)		$ (78,898,000)	$ (25,125,000)	$ (146,156,000)
January 2022 Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount							$ 500,000,000
Remaining amount under share repurchase program		$ 199,400,000			$ 199,400,000
July2019 Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount							$ 500,000,000

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Shareholders' Equity - Accumulated Other Comprehensive Loss Roll forward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 3,193,492	$ 3,072,317	$ 3,110,807	$ 3,094,734
Other comprehensive income	8,910	9,563	12,110	12,841
Ending balance	3,209,772	3,023,584	3,209,772	3,023,584
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			15,665
Other comprehensive income before reclassifications, net of tax			24,206
Reclassifications from accumulated other comprehensive loss, net of tax			(12,713)
Other comprehensive income			11,493
Ending balance	27,158		27,158
Defined Benefit and Retiree Healthcare Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			(31,929)
Other comprehensive income before reclassifications, net of tax			0
Reclassifications from accumulated other comprehensive loss, net of tax			617
Other comprehensive income			617
Ending balance	(31,312)		(31,312)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(13,064)	(16,282)	(16,264)	(19,560)
Other comprehensive income before reclassifications, net of tax			24,206
Reclassifications from accumulated other comprehensive loss, net of tax			(12,096)
Other comprehensive income	8,910	9,563	12,110	12,841
Ending balance	$ (4,154)	$ (6,719)	$ (4,154)	$ (6,719)

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Shareholders' Equity - Accumulated Other Comprehensive Loss Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net revenue	$ 1,062,112	$ 1,020,548	$ 2,060,287	$ 1,996,318
Cost of revenue	(732,108)	(686,603)	(1,402,579)	(1,343,683)
Provision for income taxes	(19,873)	(20,020)	(43,599)	(27,608)
Other, net	(10,924)	(39,240)	(9,532)	(89,696)
Net income	49,111	34,841	135,528	57,282
(Gain)/Loss Reclassified from Accumulated Other Comprehensive Loss | Derivative instruments designated and qualifying as cash flow hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before taxes	(8,797)	(12,079)	(17,133)	(18,972)
Provision for income taxes	2,269	3,116	4,420	4,894
Net income	(6,528)	(8,963)	(12,713)	(14,078)
(Gain)/Loss Reclassified from Accumulated Other Comprehensive Loss | Derivative instruments designated and qualifying as cash flow hedges: | Foreign currency forward contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net revenue	(4,394)	(9,476)	(11,033)	(13,740)
Cost of revenue	(4,403)	(2,603)	(6,100)	(5,232)
(Gain)/Loss Reclassified from Accumulated Other Comprehensive Loss | Defined benefit and retiree healthcare plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Provision for income taxes	(87)	(139)	(231)	(322)
Other, net	311	519	848	1,130
Net income	$ 224	$ 380	$ 617	$ 808

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Fair Value Measures - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 425,187	$ 895,341
Liabilities	13,422	14,537
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	380,130	860,034
Foreign currency forward contracts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	43,046	31,126
Liabilities	8,162	9,866
Commodity forward contracts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	2,011	4,181
Liabilities	$ 5,260	$ 4,671

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Fair Value Measures - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Equity securities without readily determinable fair value	$ 18.3	$ 15.0

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Fair Value Measures - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
5.625% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, stated interest rate	5.625%
5.0% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, stated interest rate	5.00%
4.375% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, stated interest rate	4.375%
3.75% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, stated interest rate	3.75%
4.0% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, stated interest rate	4.00%
5.875% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, stated interest rate	5.875%
Level 2 | Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	$ 0	$ 443,483
Level 2 | 5.625% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	396,000	398,000
Level 2 | 5.0% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	679,910	684,250
Level 2 | 4.375% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	400,500	400,500
Level 2 | 3.75% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	635,625	626,250
Level 2 | 4.0% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	882,500	875,000
Level 2 | 5.875% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	481,250	473,750
Level 2 | Carrying Value | Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	0	446,834
Level 2 | Carrying Value | 5.625% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	400,000	400,000
Level 2 | Carrying Value | 5.0% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	700,000	700,000
Level 2 | Carrying Value | 4.375% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	450,000	450,000
Level 2 | Carrying Value | 3.75% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	750,000	750,000
Level 2 | Carrying Value | 4.0% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	1,000,000	1,000,000
Level 2 | Carrying Value | 5.875% Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	$ 500,000	$ 500,000

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Derivative Instruments and Hedging Activities - Narrative (Details)	Jun. 30, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign currency cash flow gain to be reclassified during next 12 months	$ 30,100,000
Termination value of outstanding derivatives in a liability position	13,600,000
Collateral already posted, aggregate fair value	$ 0

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Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments (Details) - 6 months ended Jun. 30, 2023 € in Millions, ₩ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, RM in Millions, $ in Millions	EUR (€) lb ozt € / $ $ / RM $ / $ £ / $ $ / ¥ $ / ¥ $ / ₩	CNY (¥) € / $ $ / RM £ / $ $ / $ $ / ¥ $ / ₩ $ / ¥	JPY (¥) € / $ $ / RM £ / $ $ / $ $ / ¥ $ / ₩ $ / ¥	KRW (₩) € / $ $ / RM £ / $ $ / $ $ / ¥ $ / ₩ $ / ¥	MYR (RM) € / $ $ / RM £ / $ $ / $ $ / ¥ $ / ₩ $ / ¥	MXN ($) € / $ $ / RM £ / $ $ / $ $ / ¥ $ / ₩ $ / ¥	GBP (£) € / $ $ / RM £ / $ $ / $ $ / ¥ $ / ₩ $ / ¥
Foreign currency forward contracts | Not designated | Euro ("EUR") to USD
Hedges of Foreign Currency Risk
Notional | €	€ 11.0
Weighted-Average Strike Rate | € / $	1.09	1.09	1.09	1.09	1.09	1.09	1.09
Foreign currency forward contracts | Not designated | USD to Chinese Renminbi ("CNY")
Hedges of Foreign Currency Risk
Notional | ¥		¥ 770.0
Weighted-Average Strike Rate | $ / ¥	7.16	7.16	7.16	7.16	7.16	7.16	7.16
Foreign currency forward contracts | Not designated | USD to Japanese Yen ("JPY")
Hedges of Foreign Currency Risk
Notional | ¥			¥ 436.0
Weighted-Average Strike Rate | $ / ¥	141.47	141.47	141.47	141.47	141.47	141.47	141.47
Foreign currency forward contracts | Not designated | USD to Malaysian Ringgit ("MYR")
Hedges of Foreign Currency Risk
Notional | RM					RM 25.0
Weighted-Average Strike Rate | $ / RM	4.63	4.63	4.63	4.63	4.63	4.63	4.63
Foreign currency forward contracts | Not designated | British Pound Sterling ("GBP") to USD
Hedges of Foreign Currency Risk
Notional | £							£ 5.2
Weighted-Average Strike Rate | £ / $	1.27	1.27	1.27	1.27	1.27	1.27	1.27
Foreign currency forward contracts | Cash flow hedge | Euro ("EUR") to USD
Hedges of Foreign Currency Risk
Notional | €	€ 375.0
Weighted-Average Strike Rate | € / $	1.09	1.09	1.09	1.09	1.09	1.09	1.09
Foreign currency forward contracts | Cash flow hedge | USD to Chinese Renminbi ("CNY")
Hedges of Foreign Currency Risk
Notional | ¥		¥ 300.0
Weighted-Average Strike Rate | $ / ¥	6.74	6.74	6.74	6.74	6.74	6.74	6.74
Foreign currency forward contracts | Cash flow hedge | USD to Korean Won ("KRW")
Hedges of Foreign Currency Risk
Notional | ₩				₩ 26,312.5
Weighted-Average Strike Rate | $ / ₩	1,273.23	1,273.23	1,273.23	1,273.23	1,273.23	1,273.23	1,273.23
Foreign currency forward contracts | Cash flow hedge | USD to Mexican Peso ("MXN")
Hedges of Foreign Currency Risk
Notional | $						$ 4,318.3
Weighted-Average Strike Rate | $ / $	20.78	20.78	20.78	20.78	20.78	20.78	20.78
Foreign currency forward contracts | Cash flow hedge | British Pound Sterling ("GBP") to USD
Hedges of Foreign Currency Risk
Notional | £							£ 58.6
Weighted-Average Strike Rate | £ / $	1.23	1.23	1.23	1.23	1.23	1.23	1.23
Silver | Not designated
Hedges of Foreign Currency Risk
Weighted-Average Strike Rate	23.31	23.31	23.31	23.31	23.31	23.31	23.31
Hedges of Commodity Risk
Notional	862,162
Gold | Not designated
Hedges of Foreign Currency Risk
Weighted-Average Strike Rate	1,932.48	1,932.48	1,932.48	1,932.48	1,932.48	1,932.48	1,932.48
Hedges of Commodity Risk
Notional	7,169
Nickel | Not designated
Hedges of Foreign Currency Risk
Weighted-Average Strike Rate	11.47	11.47	11.47	11.47	11.47	11.47	11.47
Hedges of Commodity Risk
Notional | lb	200,265
Aluminum | Not designated
Hedges of Foreign Currency Risk
Weighted-Average Strike Rate	1.19	1.19	1.19	1.19	1.19	1.19	1.19
Hedges of Commodity Risk
Notional | lb	3,902,120
Copper | Not designated
Hedges of Foreign Currency Risk
Weighted-Average Strike Rate	3.98	3.98	3.98	3.98	3.98	3.98	3.98
Hedges of Commodity Risk
Notional | lb	7,730,119
Platinum | Not designated
Hedges of Foreign Currency Risk
Weighted-Average Strike Rate	982.97	982.97	982.97	982.97	982.97	982.97	982.97
Hedges of Commodity Risk
Notional	9,047
Palladium | Not designated
Hedges of Foreign Currency Risk
Weighted-Average Strike Rate	1,944.38	1,944.38	1,944.38	1,944.38	1,944.38	1,944.38	1,944.38
Hedges of Commodity Risk
Notional	1,221

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Derivative Instruments and Hedging Activities - Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Cash flow hedge
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 41,637	$ 30,877
Liability Derivatives	8,092	9,866
Not designated
Derivatives, Fair Value [Line Items]
Asset Derivatives	3,420	4,430
Liability Derivatives	5,330	4,671
Foreign currency forward contracts | Cash flow hedge | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	35,280	27,114
Foreign currency forward contracts | Cash flow hedge | Other assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	6,357	3,763
Foreign currency forward contracts | Cash flow hedge | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	6,184	6,586
Foreign currency forward contracts | Cash flow hedge | Other long-term liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	1,908	3,280
Foreign currency forward contracts | Not designated | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	1,409	249
Foreign currency forward contracts | Not designated | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	70	0
Commodity forward contracts | Not designated | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	1,584	2,542
Commodity forward contracts | Not designated | Other assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	427	1,639
Commodity forward contracts | Not designated | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	4,120	4,066
Commodity forward contracts | Not designated | Other long-term liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 1,140	$ 605

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Derivative Instruments and Hedging Activities - Income Statement Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Foreign currency forward contracts | Not designated
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Loss)/Gain Recognized in Net Income	$ 4,423	$ 3,165	$ 4,607	$ 1,922
Foreign currency forward contracts | Net revenue | Cash flow hedge
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Deferred Gain/(Loss) Recognized in Other Comprehensive Income	4,872	28,192	1,284	33,778
Amount of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	4,394	9,476	11,033	13,740
Foreign currency forward contracts | Cost of revenue | Cash flow hedge
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Deferred Gain/(Loss) Recognized in Other Comprehensive Income	15,631	(3,765)	31,339	1,380
Amount of Net Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	4,403	2,603	6,100	5,232
Commodity forward contracts | Not designated
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Loss)/Gain Recognized in Net Income	$ (6,269)	$ (18,254)	$ (4,370)	$ (8,830)

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Acquisitions and Divestitures - Acquisitions (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 11, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Jul. 12, 2022
Business Acquisition [Line Items]
Acquisition-related compensation arrangements		$ 3,330	$ 12,834	$ 10,602	$ 31,089
Elastic M2M Inc
Business Acquisition [Line Items]
Aggregate purchase price	$ 51,600
Acquisition-related incentive compensation	$ 30,000
Compensation earned						$ 24,700
Acquisition-related compensation arrangements		200		3,500
Fair value of net assets acquired		51,618		$ 51,618
Dynapower
Business Acquisition [Line Items]
Fair value of net assets acquired							$ 577,473
Measurement period adjustments, intangibles		57,200
Goodwill adjustments		$ 41,000

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Acquisitions and Divestitures - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jul. 12, 2022
Business Acquisition [Line Items]
Goodwill	$ 3,861,872	$ 3,911,224
Elastic M2M Inc
Business Acquisition [Line Items]
Net working capital, excluding cash	35
Goodwill	28,211
Other intangible assets	27,700
Deferred income tax liabilities	(5,925)
Fair value of net assets acquired, excluding cash and cash equivalents	50,021
Cash and cash equivalents	1,597
Fair value of net assets acquired	$ 51,618
Dynapower
Business Acquisition [Line Items]
Net working capital, excluding cash			$ 12,514
Property, plant and equipment			1,846
Goodwill			377,267
Other intangible assets			221,600
Other assets			1,656
Deferred income tax liabilities			(40,785)
Other long-term liabilities			(1,035)
Fair value of net assets acquired, excluding cash and cash equivalents			573,063
Cash and cash equivalents			4,410
Fair value of net assets acquired			$ 577,473

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Acquisitions and Divestitures - Schedule of Finite-Lived Intangible Assets Acquired and Weighted Average Useful Lives (Details) - USD ($) $ in Thousands	Jul. 12, 2022	Feb. 11, 2022
Elastic M2M Inc
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition Date Fair Value		$ 27,700
Weighted-Average Lives (years)		12 years
Elastic M2M Inc | Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition Date Fair Value		$ 17,500
Weighted-Average Lives (years)		13 years
Elastic M2M Inc | Completed technologies
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition Date Fair Value		$ 10,200
Weighted-Average Lives (years)		10 years
Dynapower
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition Date Fair Value	$ 221,600
Weighted-Average Lives (years)	15 years
Dynapower | Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition Date Fair Value	$ 79,800
Weighted-Average Lives (years)	16 years
Dynapower | Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition Date Fair Value	$ 15,500
Weighted-Average Lives (years)	3 years
Dynapower | Completed technologies
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition Date Fair Value	$ 92,100
Weighted-Average Lives (years)	15 years
Dynapower | Tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition Date Fair Value	$ 34,200
Weighted-Average Lives (years)	18 years

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Acquisitions and Divestitures - Divestitures (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Qinex Business - USD ($) $ in Millions		3 Months Ended
	May 27, 2022	Jun. 30, 2023	Sep. 30, 2022	Jul. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration on sale of business	$ 219.0			$ 198.8
Contract manufacturing agreement, extension period	3 months
Disposal group, assets held for sale				70.0
Disposal group, goodwill				45.0
Disposal group, liabilities				$ 2.0
Pre tax gain on sale of business			$ 135.1
Escrow payment received		$ 15.0
Escrow payment received, transfer of inventory		10.0
Escrow amount		$ 4.0
Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contract manufacturing agreement, term	6 months
Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contract manufacturing agreement, term	9 months

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Segment Reporting - Schedules of Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($) segment	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($) segment
Segment Reporting Information [Line Items]
Number of reporting segments | segment	2	2	2	2
Reconciliation from Segment Totals to Consolidated [Abstract]
Net revenue	$ 1,062,112	$ 1,020,548	$ 2,060,287	$ 1,996,318
Operating income	118,013	138,943	266,855	264,873
Amortization of intangible assets	(54,563)	(36,805)	(95,337)	(74,172)
Restructuring and other charges, net	(21,259)	(12,897)	(27,258)	(26,630)
Interest expense, net	(38,105)	(44,842)	(78,196)	(90,287)
Other, net	(10,924)	(39,240)	(9,532)	(89,696)
Income before taxes	68,984	54,861	$ 179,127	84,890
Performance Sensing
Segment Reporting Information [Line Items]
Number of operating segments | segment			2
Goodwill, increase (decrease)	(57,100)
Reconciliation from Segment Totals to Consolidated [Abstract]
Net revenue	757,444	731,645	$ 1,495,712	1,434,340
Sensing Solutions
Segment Reporting Information [Line Items]
Goodwill, increase (decrease)	57,100
Reconciliation from Segment Totals to Consolidated [Abstract]
Net revenue	304,668	288,903	564,575	561,978
Operating Segments
Reconciliation from Segment Totals to Consolidated [Abstract]
Net revenue	1,062,112	1,020,548	2,060,287	1,996,318
Operating income	275,299	265,007	533,355	518,160
Operating Segments | Performance Sensing
Reconciliation from Segment Totals to Consolidated [Abstract]
Net revenue	757,444	731,645	1,495,712	1,434,340
Operating income	191,147	179,293	373,887	353,507
Operating Segments | Sensing Solutions
Reconciliation from Segment Totals to Consolidated [Abstract]
Net revenue	304,668	288,903	564,575	561,978
Operating income	84,152	85,714	159,468	164,653
Corporate and other
Reconciliation from Segment Totals to Consolidated [Abstract]
Operating income	$ (81,464)	$ (76,362)	$ (143,905)	$ (152,485)