(Exact Name of Registrant as Specified in Its Charter) |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbols | Name of each exchange on which registered |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS | |
(d) | Exhibits: | |
Exhibit No. | Description | |
99.1 | ||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
FORTIVE CORPORATION | |||
Date: | February 6, 2020 | By: | /s/ Daniel B. Kim |
Daniel B. Kim | |||
Vice President - Associate General Counsel and Secretary |
As of December 31 | |||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 1,205.2 | $ | 1,178.4 | |||
Accounts receivable less allowance for doubtful accounts of $59.8 million and $54.9 million at December 31, 2019 and December 31, 2018, respectively | 1,384.5 | 1,195.1 | |||||
Inventories | 640.3 | 574.5 | |||||
Prepaid expenses and other current assets | 455.6 | 193.2 | |||||
Current assets, discontinued operations | 3.2 | 30.0 | |||||
Total current assets | 3,688.8 | 3,171.2 | |||||
Property, plant and equipment, net | 519.5 | 576.1 | |||||
Operating lease right-of-use assets | 206.8 | — | |||||
Other assets | 779.6 | 548.9 | |||||
Goodwill | 8,399.3 | 6,133.1 | |||||
Other intangible assets, net | 3,845.0 | 2,476.3 | |||||
Total assets | $ | 17,439.0 | $ | 12,905.6 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 1,500.0 | $ | 455.6 | |||
Trade accounts payable | 765.5 | 706.5 | |||||
Current operating lease liabilities | 54.9 | — | |||||
Accrued expenses and other current liabilities | 1,146.8 | 999.3 | |||||
Current liabilities, discontinued operations | — | 30.7 | |||||
Total current liabilities | 3,467.2 | 2,192.1 | |||||
Operating lease liabilities | 159.0 | — | |||||
Other long-term liabilities | 1,584.2 | 1,125.9 | |||||
Long-term debt | 4,828.4 | 2,974.7 | |||||
Equity: | |||||||
Preferred stock: $0.01 par value, 15.0 million shares authorized; 5.0% Mandatory convertible preferred stock, series A, 1.4 million shares designated, issued and outstanding at December 31, 2019 and December 31, 2018 | — | — | |||||
Common stock: $0.01 par value, 2.0 billion shares authorized; 336.9 and 335.1 million issued; 336.0 and 334.5 million outstanding at December 31, 2019 and December 31, 2018, respectively | 3.4 | 3.4 | |||||
Additional paid-in capital | 3,311.1 | 3,126.0 | |||||
Retained earnings | 4,128.8 | 3,552.7 | |||||
Accumulated other comprehensive income (loss) | (56.3 | ) | (86.6 | ) | |||
Total Fortive stockholders’ equity | 7,387.0 | 6,595.5 | |||||
Noncontrolling interests | 13.2 | 17.4 | |||||
Total stockholders’ equity | 7,400.2 | 6,612.9 | |||||
Total liabilities and stockholders’ equity | $ | 17,439.0 | $ | 12,905.6 |
Three Months Ended | Year Ended | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
Sales | $ | 2,002.4 | $ | 1,757.5 | $ | 7,320.0 | $ | 6,452.7 | |||||||
Cost of sales | (966.5 | ) | (859.2 | ) | (3,639.7 | ) | (3,131.4 | ) | |||||||
Gross profit | 1,035.9 | 898.3 | 3,680.3 | 3,321.3 | |||||||||||
Operating costs: | |||||||||||||||
Selling, general, and administrative expenses | (629.5 | ) | (495.0 | ) | (2,219.5 | ) | (1,728.6 | ) | |||||||
Research and development expenses | (111.2 | ) | (108.8 | ) | (456.7 | ) | (414.3 | ) | |||||||
Operating profit | 295.2 | 294.5 | 1,004.1 | 1,178.4 | |||||||||||
Non-operating expenses, net: | |||||||||||||||
Gain (loss) from combination of business | (0.4 | ) | — | 40.8 | — | ||||||||||
Interest expense, net | (47.5 | ) | (26.7 | ) | (164.2 | ) | (97.0 | ) | |||||||
Other non-operating expenses, net | (4.6 | ) | (0.4 | ) | (6.2 | ) | (3.0 | ) | |||||||
Earnings from continuing operations before income taxes | 242.7 | 267.4 | 874.5 | 1,078.4 | |||||||||||
Income taxes | (63.9 | ) | (27.3 | ) | (149.1 | ) | (160.1 | ) | |||||||
Net earnings from continuing operations | 178.8 | 240.1 | 725.4 | 918.3 | |||||||||||
Earnings from discontinued operations, net of income taxes | 14.0 | 1,872.2 | 13.5 | 1,995.5 | |||||||||||
Net earnings | 192.8 | 2,112.3 | 738.9 | 2,913.8 | |||||||||||
Mandatory convertible preferred dividends | (17.2 | ) | (17.3 | ) | (69.0 | ) | (34.9 | ) | |||||||
Net earnings attributable to common stockholders | $ | 175.6 | $ | 2,095.0 | $ | 669.9 | $ | 2,878.9 | |||||||
Net earnings per share from continuing operations: | |||||||||||||||
Basic | $ | 0.48 | $ | 0.67 | $ | 1.95 | $ | 2.56 | |||||||
Diluted | $ | 0.48 | $ | 0.66 | $ | 1.93 | $ | 2.52 | |||||||
Net earnings per share from discontinued operations: | |||||||||||||||
Basic | $ | 0.04 | $ | 5.60 | $ | 0.04 | $ | 5.78 | |||||||
Diluted | $ | 0.04 | $ | 5.52 | $ | 0.04 | $ | 5.69 | |||||||
Net earnings per share: | |||||||||||||||
Basic | $ | 0.52 | $ | 6.26 | $ | 1.99 | $ | 8.33 | |||||||
Diluted | $ | 0.52 | $ | 6.17 | $ | 1.97 | $ | 8.21 | |||||||
Average common stock and common equivalent shares outstanding: | |||||||||||||||
Basic | 336.4 | 334.6 | 335.8 | 345.5 | |||||||||||
Diluted | 340.1 | 339.3 | 340.0 | 350.7 |
Year Ended December 31 | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings from continuing operations | $ | 725.4 | $ | 918.3 | $ | 884.3 | |||||
Noncash items: | |||||||||||
Depreciation | 133.3 | 125.7 | 93.3 | ||||||||
Amortization | 292.9 | 135.1 | 65.0 | ||||||||
Stock-based compensation expense | 61.4 | 50.8 | 44.2 | ||||||||
Gain from acquisition and combination of business | (40.8 | ) | — | (15.3 | ) | ||||||
Impairment charges on intangible assets | — | 1.1 | 2.3 | ||||||||
Gain on sale of property | — | — | (8.0 | ) | |||||||
Change in deferred income taxes | 13.9 | 7.7 | (61.0 | ) | |||||||
Change in accounts receivable, net | (166.9 | ) | (105.9 | ) | (55.4 | ) | |||||
Change in inventories | 118.8 | (73.4 | ) | 17.5 | |||||||
Change in trade accounts payable | 53.7 | 76.2 | 17.7 | ||||||||
Change in prepaid expenses and other assets | (163.7 | ) | 63.3 | (100.5 | ) | ||||||
Change in accrued expenses and other liabilities | 256.9 | 2.4 | 136.0 | ||||||||
Total operating cash provided by continuing operations | 1,284.9 | 1,201.3 | 1,020.1 | ||||||||
Total operating cash provided by (used in) discontinued operations | (13.5 | ) | 143.1 | 156.3 | |||||||
Net cash provided by operating activities | 1,271.4 | 1,344.4 | 1,176.4 | ||||||||
Cash flows from investing activities: | |||||||||||
Cash paid for acquisitions, net of cash received | (3,943.9 | ) | (2,815.1 | ) | (1,556.6 | ) | |||||
Payments for additions to property, plant and equipment | (112.5 | ) | (112.3 | ) | (111.1 | ) | |||||
Proceeds from sale of property | — | — | 21.5 | ||||||||
All other investing activities | 1.8 | (42.1 | ) | 1.5 | |||||||
Total investing cash used in continuing operations | (4,054.6 | ) | (2,969.5 | ) | (1,644.7 | ) | |||||
Total investing cash provided by (used in) discontinued operations | — | 1,002.9 | (25.0 | ) | |||||||
Net cash used in investing activities | (4,054.6 | ) | (1,966.6 | ) | (1,669.7 | ) | |||||
Cash flows from financing activities: | |||||||||||
Net proceeds from (repayments of) commercial paper borrowings | 494.8 | (266.1 | ) | 556.2 | |||||||
Proceeds from borrowings (maturities greater than 90 days), net of $24.3 million of issuance costs in 2019 | 2,913.2 | 1,750.0 | 125.9 | ||||||||
Repayment of borrowings (maturities greater than 90 days) | (455.3 | ) | (1,850.0 | ) | — | ||||||
Proceeds from issuance of mandatory convertible preferred stock, net of $43.0 million of issuance costs | — | 1,337.4 | — | ||||||||
Payment of common stock cash dividend to shareholders | (93.8 | ) | (96.6 | ) | (97.2 | ) | |||||
Payment of mandatory convertible preferred stock cash dividend to shareholders | (69.0 | ) | (34.9 | ) | — | ||||||
All other financing activities | 13.0 | 39.3 | 13.4 | ||||||||
Total financing cash provided by continuing operations | 2,802.9 | 879.1 | 598.3 | ||||||||
Total financing cash provided by discontinued operations | — | — | 1.4 | ||||||||
Net cash provided by financing activities | 2,802.9 | 879.1 | 599.7 | ||||||||
Effect of exchange rate changes on cash and equivalents | 7.1 | (40.6 | ) | 52.5 | |||||||
Net change in cash and equivalents | 26.8 | 216.3 | 158.9 | ||||||||
Beginning balance of cash and equivalents | $ | 1,178.4 | $ | 962.1 | $ | 803.2 | |||||
Ending balance of cash and equivalents | $ | 1,205.2 | $ | 1,178.4 | $ | 962.1 |
Three Months Ended | Year Ended | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
Sales: | |||||||||||||||
Professional Instrumentation | $ | 1,231.0 | $ | 1,000.3 | $ | 4,427.8 | $ | 3,655.1 | |||||||
Industrial Technologies | 771.4 | 757.2 | 2,892.2 | 2,797.6 | |||||||||||
Total | $ | 2,002.4 | $ | 1,757.5 | $ | 7,320.0 | $ | 6,452.7 | |||||||
Operating Profit: | |||||||||||||||
Professional Instrumentation | $ | 171.0 | $ | 161.3 | $ | 547.9 | $ | 744.6 | |||||||
Industrial Technologies | 149.7 | 155.1 | 553.9 | 525.6 | |||||||||||
Other (a) | (25.5 | ) | (21.9 | ) | (97.7 | ) | (91.8 | ) | |||||||
Total | $ | 295.2 | $ | 294.5 | $ | 1,004.1 | $ | 1,178.4 | |||||||
Operating Margins: | |||||||||||||||
Professional Instrumentation | 13.9 | % | 16.1 | % | 12.4 | % | 20.4 | % | |||||||
Industrial Technologies | 19.4 | % | 20.5 | % | 19.2 | % | 18.8 | % | |||||||
Total | 14.7 | % | 16.8 | % | 13.7 | % | 18.3 | % | |||||||
(a) Operating profit amounts in the Other category consist of unallocated corporate costs and other costs not considered part of our evaluation of reportable segment operating performance. |
• | Excluding on a pretax basis amortization of acquisition-related intangible assets; |
• | Excluding on a pretax basis acquisition and other transaction costs deemed significant (“Transaction Costs”); |
• | Excluding on a pretax basis the effect of deferred revenue and inventory fair value adjustments related to significant acquisitions; |
• | Excluding on a pretax basis the effect of earnings from our equity method investments; |
• | Excluding on a pretax basis the non-recurring gain on the disposition of assets; |
• | Excluding on a pretax basis the non-cash interest expense associated with our 0.875% convertible senior notes; |
• | Excluding on a pretax basis the cost incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature, and planning requirements, as well as the inconsistent frequency of such plans), from ongoing productivity improvements (the “Discrete Restructuring Charges”); |
• | Excluding the tax effect of the adjustments noted above. The tax effect of such adjustments was calculated by applying our overall estimated effective tax rate to the pretax amount of each adjustment (unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment). We expect to apply our overall estimated effective tax rate to each adjustment going forward, and, as such, we are applying the estimated effective tax rate to each adjustment for the forecasted periods to facilitate comparisons in future periods; |
• | Excluding discrete tax and other tax-related adjustments resulting from internal reorganizations effectuated in connection with the pending separation of Vontier; |
• | Excluding the 2017 provisional amount estimated in connection with the Tax Cut and Jobs Act and subsequent adjustments to the provisional estimates (the “TCJA Adjustments”); and |
• | Including the impact of the assumed conversion of our Mandatory Convertible Preferred Stock. |
Three Months Ended | Year Ended | ||||||||||||||
($ in millions) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||
Net Earnings From Continuing Operations Attributable to Common Stockholders (GAAP) | $ | 161.6 | $ | 222.8 | $ | 656.4 | $ | 883.4 | |||||||
Dividends on the mandatory convertible preferred stock to apply if-converted method | 17.2 | 17.3 | 69.0 | 34.9 | |||||||||||
Net Earnings from Continuing Operations (GAAP) | 178.8 | 240.1 | 725.4 | 918.3 | |||||||||||
Pretax amortization of acquisition-related intangible assets in the three months ($82 million pretax, $69 million after tax) and year ended ($293 million pretax, $246 million after tax) December 31, 2019, and in the three months ($54 million pretax, $45 million after tax) and year ended ($135 million pretax, $113 million after tax) December 31, 2018 | 81.5 | 53.8 | 292.9 | 135.2 | |||||||||||
Pretax acquisition and other transaction costs in the three months ($43 million pretax, $37 million after tax) and year ended ($146 million pretax, $123 million after tax) December 31, 2019, and in the three months ($27 million pretax, $22 million after tax) and year ended ($67 million pretax, $56 million after tax) December 31, 2018* | 43.4 | 26.8 | 145.8 | 67.4 | |||||||||||
Pretax acquisition-related fair value adjustments to deferred revenue and inventory related to significant acquisitions in the three months ($11 million pretax, $9 million after tax) and year ended ($121 million pretax, $102 million after tax) December 31, 2019, and in the three months ($31 million pretax, $26 million after tax) and year ended ($34 million pretax, $28 million after tax) December 31, 2018 | 10.8 | 31.4 | 121.0 | 34.4 | |||||||||||
Pretax losses from equity method investments in the three months ($3 million pretax, $3 million after tax) and year ended ($4 million pretax, $3 million after tax) December 31, 2019 | 3.4 | — | 3.9 | — | |||||||||||
Pretax (gain) loss on the disposition of the Tektronix Video Business in the three months ($0 million pretax, $0 million after tax) and year ended ($41 million pretax, $39 million after tax) December 31, 2019 | 0.4 | — | (40.8 | ) | — | ||||||||||
Pretax non-cash interest expense associated with our 0.875% convertible notes in the three months ($8 million pretax, $7 million after tax) and year ended ($28 million pretax, $24 million after tax) December 31, 2019 | 8.4 | — | 28.1 | — | |||||||||||
Pretax discrete restructuring charges in the three months ($38 million pretax, $32 million after tax) and year ended ($38 million pretax, $32 million after tax) December 31, 2019 | 38.3 | — | 38.3 | — | |||||||||||
Tax effect of the adjustments reflected above (a) | (29.6 | ) | (19.5 | ) | (98.6 | ) | (42.0 | ) | |||||||
Additional income tax adjustment | 32.4 | — | 32.4 | — | |||||||||||
TCJA adjustments | — | (7.5 | ) | — | (12.5 | ) | |||||||||
Adjusted Net Earnings from Continuing Operations (Non-GAAP) | $ | 367.8 | $ | 325.1 | $ | 1,248.4 | $ | 1,100.8 | |||||||
(a) The MCPS are not tax deductible and therefore the tax effect of the adjustments includes only the amortization of acquisition-related intangible assets, acquisition and other transaction costs, acquisition-related fair value adjustments to deferred revenue and inventory, the gain on the disposition of the Tektronix Video Business, losses from equity method investments, the non-cash interest expense associated with the 0.875% convertible notes, and restructuring charges. | |||||||||||||||
* $1.3 million and $0.6 million of acquisition and other transaction costs were recorded in the three months ended March 29, 2019 and June 28, 2019, respectively, that were not previously adjusted for but are reflected in the totals for the year ended December 31, 2019. |
Three Months Ended (a) | Year Ended (a) | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
Diluted Net Earnings Per Share from Continuing Operations Attributable to Common Stockholders (GAAP) | $ | 0.48 | $ | 0.66 | $ | 1.93 | $ | 2.52 | |||||||
Dividends on the mandatory convertible preferred stock to apply if-converted method | 0.05 | 0.05 | 0.20 | 0.10 | |||||||||||
Assumed dilutive impact on the Diluted Net Earnings Per Share Attributable to Common Stockholders if the MCPS Converted Shares had been outstanding | (0.03 | ) | (0.04 | ) | (0.11 | ) | (0.06 | ) | |||||||
Pretax amortization of acquisition-related intangible assets in the three months ($82 million pretax, $69 million after tax) and year ended ($293 million pretax, $246 million after tax) December 31, 2019, and in the three months ($54 million pretax, $45 million after tax) and year ended ($135 million pretax, $113 million after tax) December 31, 2018 | 0.23 | 0.15 | 0.82 | 0.38 | |||||||||||
Pretax acquisition and other transaction costs in the three months ($43 million pretax, $37 million after tax) and year ended ($146 million pretax, $123 million after tax) December 31, 2019, and in the three months ($27 million pretax, $22 million after tax) and year ended ($67 million pretax, $56 million after tax) December 31, 2018* | 0.12 | 0.07 | 0.41 | 0.19 | |||||||||||
Pretax acquisition-related fair value adjustments to deferred revenue and inventory related to significant acquisitions in the three months ($11 million pretax, $9 million after tax) and year ended ($121 million pretax, $102 million after tax) December 31, 2019, and in the three months ($31 million pretax, $26 million after tax) and year ended ($34 million pretax, $28 million after tax) December 31, 2018 | 0.03 | 0.09 | 0.34 | 0.10 | |||||||||||
Pretax losses from equity method investments in the three months ($3 million pretax, $3 million after tax) and year ended ($4 million pretax, $3 million after tax) December 31, 2019 | 0.01 | — | 0.01 | — | |||||||||||
Pretax (gain) loss on the disposition of the Tektronix Video Business in the three months ($0 million pretax, $0 million after tax) and year ended ($41 million pretax, $39 million after tax) December 31, 2019 | — | — | (0.11 | ) | — | ||||||||||
Pretax non-cash interest expense associated with our 0.875% convertible notes in the three months ($8 million pretax, $7 million after tax) and year ended ($28 million pretax, $24 million after tax) December 31, 2019 | 0.02 | — | 0.08 | — | |||||||||||
Pretax discrete restructuring charges in the three months ($38 million pretax, $32 million after tax) and year ended ($38 million pretax, $32 million after tax) December 31, 2019 | 0.11 | — | 0.11 | — | |||||||||||
Tax effect of the adjustments reflected above (b) | (0.08 | ) | (0.05 | ) | (0.28 | ) | (0.12 | ) | |||||||
Additional income tax adjustment | 0.09 | — | 0.09 | — | |||||||||||
TCJA Adjustments | — | (0.02 | ) | — | (0.03 | ) | |||||||||
Adjusted Diluted Net Earnings Per Share from Continuing Operations (Non-GAAP) | $ | 1.03 | $ | 0.91 | $ | 3.48 | $ | 3.06 | |||||||
(a) Each of the per share adjustments below was calculated assuming the MCPS Converted Shares had been outstanding. The 0.875% convertible notes did not have an impact on the adjusted diluted shares outstanding. | |||||||||||||||
(b) The MCPS are not tax deductible and therefore the tax effect of the adjustments includes only the amortization of acquisition-related intangible assets, acquisition and other transaction costs, acquisition-related fair value adjustments to deferred revenue and inventory, the gain on the disposition of the Tektronix Video Business, losses from equity method investments, the non-cash interest expense associated with the 0.875% convertible notes, and restructuring charges. | |||||||||||||||
* $1.3 million and $0.6 million of acquisition and other transaction costs were recorded in the three months ended March 29, 2019 and June 28, 2019, respectively, that were not previously adjusted for but are reflected in the totals for the year ended December 31, 2019. | |||||||||||||||
The sum of the components of adjusted diluted net earnings per share from continuing operations may not equal due to rounding. |
Three Months Ended | Year Ended | ||||||||||
(shares in millions) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||
Average common diluted stock outstanding | 340.1 | 339.3 | 340.0 | 350.7 | |||||||
MCPS Converted Shares (a) | 18.3 | 18.4 | 18.3 | 8.7 | |||||||
Adjusted average common stock and common equivalent shares outstanding | 358.4 | 357.7 | 358.3 | 359.4 | |||||||
(a) The number of MCPS Converted Shares assumes the conversion of all 1.38 million shares applying the “if-converted” method and using an average 20-day VWAP of $75.19 as of December 31, 2019. The 0.875% convertible notes did not have an impact on the adjusted diluted shares outstanding. |
% Change Three Months Ended December 31, 2019 vs. Comparable 2018 Period | % Change Year Ended December 31, 2019 vs. Comparable 2018 Period | ||||
Total Revenue Growth (GAAP) | 13.9 | % | 13.4 | % | |
Core (Non-GAAP) | 0.4 | % | 2.0 | % | |
Acquisitions (Non-GAAP) | 14.6 | % | 13.2 | % | |
Impact of currency translation (Non-GAAP) | (1.1 | )% | (1.8 | )% |
Three Months Ending March 27, 2020 | Year Ending December 31, 2020 | ||||||||||||||
Low End | High End | Low End | High End | ||||||||||||
Forecasted Diluted Net Earnings Per Share from Continuing Operations Attributable to Common Stockholders | $ | 0.24 | $ | 0.28 | $ | 2.16 | $ | 2.26 | |||||||
Anticipated dividends on mandatory convertible preferred stock in the three months ending March 27, 2020 ($17 million) and year ending December 31, 2020 ($69 million) | 0.05 | 0.05 | 0.20 | 0.20 | |||||||||||
Anticipated dilutive impact on Forecasted Diluted Net Earnings Per Share from Continuing Operations if the MCPS Converted Shares (17.7 million shares in the three months ending March 27, 2020 and year ending December 31, 2020) had been outstanding | (0.02 | ) | (0.02 | ) | (0.12 | ) | (0.12 | ) | |||||||
Anticipated pretax amortization of acquisition-related intangible assets in the three months ending March 27, 2020 ($85 million pretax (or $0.24 per share), $72 million after tax (or $0.20 per share)) and year ending December 31, 2020 ($336 million pretax (or $0.93 per share), $282 million after tax (or $0.78 per share)) | 0.24 | 0.24 | 0.93 | 0.93 | |||||||||||
Anticipated pretax significant acquisition and other transaction costs, including costs related to establishing a new separate company infrastructure in connection with the Vontier transaction in the three months ending March 27, 2020 ($67 million pretax (or $0.19 per share), $57 million after tax (or $0.16 per share)) and year ending December 31, 2020 ($185 million pretax (or $0.51 per share), $156 million after tax (or $0.43 per share)) | 0.19 | 0.19 | 0.51 | 0.51 | |||||||||||
Anticipated pretax fair value adjustments to deferred revenue and inventory related to significant acquisitions in the three months ending March 27, 2020 ($15 million pretax (or $0.04 per share), $14 million after tax (or $0.04 per share)) and year ending December 31, 2020 ($37 million pretax (or $0.10 per share), $33 million after tax (or $0.09 share)) | 0.04 | 0.04 | 0.10 | 0.10 | |||||||||||
Anticipated pretax losses from equity method investments in the three months ending March 27, 2020 ($1 million pretax (or $0 per share), $1 million after tax (or $0 per share)) and year ending December 31, 2020 ($7 million pretax (or $0.02 per share), $7 million after tax (or $0.02 share)) | — | — | 0.02 | 0.02 | |||||||||||
Anticipated pretax non-cash interest from 0.875% convertible notes in the three months ending March 27, 2020 ($8 million pretax (or $0.02 per share), $7 million after tax (or $0.02 per share)) and the year ending December 31, 2020 ($34 million pretax (or $0.09 per share), $29 million after tax (or $0.07 per share)) | 0.02 | 0.02 | 0.09 | 0.09 | |||||||||||
Tax effect of the adjustments reflected above (a) | (0.07 | ) | (0.07 | ) | (0.26 | ) | (0.26 | ) | |||||||
Additional income tax adjustment | 0.01 | 0.01 | 0.05 | 0.05 | |||||||||||
Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations | $ | 0.70 | $ | 0.74 | $ | 3.68 | $ | 3.78 | |||||||
(a) The MCPS are not tax deductible and therefore the tax effect of the adjustments includes only the amortization of acquisition-related intangible assets, acquisition and other transaction costs, acquisition-related fair value adjustments to deferred revenue and inventory, losses from equity method investments, and non-cash interest from 0.875% convertible notes. | |||||||||||||||
The sum of the components of forecasted adjusted diluted net earnings per share from continuing operations may not equal due to rounding. | |||||||||||||||
Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations does not give effect to the pending Vontier separation. |
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