(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
or | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to |
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
September 29, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowance for credit losses of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Equity securities measured at fair value | |||||||||||
Current assets held for sale | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Long-term financing receivables, less allowance for credit losses of $ | |||||||||||
Other intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings | $ | $ | |||||||||
Trade accounts payable | |||||||||||
Current operating lease liabilities | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Current liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
Long-term operating lease liabilities | |||||||||||
Long-term debt | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and Contingencies (Note 10) | |||||||||||
Equity: | |||||||||||
Preferred stock, | |||||||||||
Common stock, | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income | |||||||||||
Total Vontier stockholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 29, 2023 | September 30, 2022 | September 29, 2023 | September 30, 2022 | ||||||||||||||||||||
Sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | ( | ( | ( | ( | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating costs: | |||||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ( | |||||||||||||||||||
Research and development expenses | ( | ( | ( | ( | |||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Non-operating income (expense), net: | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Gain on sale of business | |||||||||||||||||||||||
Gain on previously held equity interests from combination of business | |||||||||||||||||||||||
Unrealized (loss) gain on equity securities measured at fair value | ( | ||||||||||||||||||||||
Other non-operating (expense) income, net | ( | ( | |||||||||||||||||||||
Earnings before income taxes | |||||||||||||||||||||||
Provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Net earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of income taxes: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ( | |||||||||||||||||||
Other adjustments | |||||||||||||||||||||||
Total other comprehensive loss, net of income taxes | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock-based award activity, net of shares for tax withholding | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock-based award activity, net of shares for tax withholding | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Change in noncontrolling interests | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock-based award activity, net of shares for tax withholding | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Change in noncontrolling interests | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, September 29, 2023 | $ | $ | ( | $ | $ | $ | $ | $ |
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock-based award activity, net of shares for tax withholding | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Change in noncontrolling interests | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock-based award activity, net of shares for tax withholding | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Change in noncontrolling interests and other | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2022 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock-based award activity, net of shares for tax withholding | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Change in noncontrolling interests | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | ( | $ | $ | $ | $ | $ |
Nine Months Ended | |||||||||||
September 29, 2023 | September 30, 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | $ | |||||||||
Non-cash items: | |||||||||||
Depreciation and amortization expense | |||||||||||
Stock-based compensation expense | |||||||||||
Amortization of debt issuance costs | |||||||||||
Amortization of acquisition-related inventory fair value step-up | |||||||||||
Loss (gain) on equity investments | ( | ||||||||||
Gain on sale of business | ( | ||||||||||
Gain on sale of property | ( | ||||||||||
Gain on previously held equity interests from combination of business | ( | ||||||||||
Unrealized gain on equity securities measured at fair value | ( | ||||||||||
Impairment charges | |||||||||||
Change in deferred income taxes | ( | ( | |||||||||
Change in accounts receivable and long-term financing receivables, net | ( | ( | |||||||||
Change in other operating assets and liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sale of business, net of cash provided | |||||||||||
Cash paid for acquisitions, net of cash received | ( | ||||||||||
Payments for additions to property, plant and equipment | ( | ( | |||||||||
Proceeds from sale of property | |||||||||||
Cash paid for equity investments | ( | ( | |||||||||
Proceeds from sale of equity securities | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | |||||||||||
Repayment of long-term debt | ( | ( | |||||||||
Net proceeds from short-term borrowings | |||||||||||
Payments of common stock cash dividend | ( | ( | |||||||||
Purchases of treasury stock | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Other financing activities | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ( | |||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Beginning balance of cash and cash equivalents | |||||||||||
Ending balance of cash and cash equivalents | $ | $ |
($ in millions) | Driivz | Weighted Average Amortization Period | |||||||||
Accounts receivable | $ | ||||||||||
Technology | |||||||||||
Customer relationships | |||||||||||
Trade names | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Accrued expenses and other current liabilities | ( | ||||||||||
Other long-term liabilities | ( | ||||||||||
Purchase price, net of cash received | $ |
($ in millions) | September 29, 2023 | December 31, 2022 | |||||||||
Gross current financing receivables: | |||||||||||
PSAs | $ | $ | |||||||||
Franchisee Notes | |||||||||||
Current financing receivables, gross | $ | $ | |||||||||
Allowance for credit losses: | |||||||||||
PSAs | $ | $ | |||||||||
Franchisee Notes | |||||||||||
Total allowance for credit losses | $ | $ | |||||||||
Net current financing receivables: | |||||||||||
PSAs, net | $ | $ | |||||||||
Franchisee Notes, net | |||||||||||
Total current financing receivables, net | $ | $ |
($ in millions) | September 29, 2023 | December 31, 2022 | |||||||||
Gross long-term financing receivables: | |||||||||||
PSAs | $ | $ | |||||||||
Franchisee Notes | |||||||||||
Long-term financing receivables, gross | $ | $ | |||||||||
Allowance for credit losses: | |||||||||||
PSAs | $ | $ | |||||||||
Franchisee Notes | |||||||||||
Total allowance for credit losses | $ | $ | |||||||||
Net long-term financing receivables: | |||||||||||
PSAs, net | $ | $ | |||||||||
Franchisee Notes, net | |||||||||||
Total long-term financing receivables, net | $ | $ |
($ in millions) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||
PSAs | |||||||||||||||||||||||||||||||||||||||||
Credit Score: | |||||||||||||||||||||||||||||||||||||||||
Less than 400 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
400-599 | |||||||||||||||||||||||||||||||||||||||||
600-799 | |||||||||||||||||||||||||||||||||||||||||
800+ | |||||||||||||||||||||||||||||||||||||||||
Total PSAs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Franchisee Notes | |||||||||||||||||||||||||||||||||||||||||
Active distributors | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Separated distributors | |||||||||||||||||||||||||||||||||||||||||
Total Franchisee Notes | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Current Period Gross Write-offs | |||||||||||||||||||||||||||||||||||||||||
PSAs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Franchisee Notes | |||||||||||||||||||||||||||||||||||||||||
Total current period gross write-offs | $ | $ | $ | $ | $ | $ | $ |
($ in millions) | 30-59 days past due | 60-90 days past due | Greater than 90 days past due | Total past due | Total not considered past due | Total | Greater than 90 days past due and accruing interest | |||||||||||||||||||||||||||||||||||||
September 29, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
December 31, 2022 |
September 29, 2023 | |||||||||||||||||
($ in millions) | PSAs | Franchisee Notes | Total | ||||||||||||||
Allowance for credit losses, beginning of year | $ | $ | $ | ||||||||||||||
Provision for credit losses | |||||||||||||||||
Write-offs | ( | ( | ( | ||||||||||||||
Recoveries of amounts previously charged off | |||||||||||||||||
Allowance for credit losses, end of period | $ | $ | $ |
($ in millions) | September 29, 2023 | ||||
Cost basis of trade accounts receivable | $ | ||||
Allowance for credit losses balance, beginning of year | |||||
Provision for credit losses | |||||
Write-offs | ( | ||||
Foreign currency and other | ( | ||||
Allowance for credit losses balance, end of period | |||||
Net trade accounts receivable balance | $ |
($ in millions) | September 29, 2023 | December 31, 2022 | |||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Raw materials | |||||||||||
Total | $ | $ |
($ in millions) | September 29, 2023 | December 31, 2022 | |||||||||
Short-term borrowings: | |||||||||||
Short-term borrowings and bank overdrafts | $ | $ | |||||||||
Long-term debt: | |||||||||||
Three-Year Term Loans due 2024 | $ | $ | |||||||||
Three-Year Term Loans due 2025 | |||||||||||
Revolving Credit Facility due 2026 | |||||||||||
Total long-term debt | |||||||||||
Less: discounts and debt issuance costs | ( | ( | |||||||||
Total long-term debt, net | $ | $ |
($ in millions) | Foreign Currency Translation Adjustments | Other Adjustments (b) | Total | ||||||||||||||
For the Three Months Ended September 29, 2023: | |||||||||||||||||
Balance, June 30, 2023 | $ | $ | ( | $ | |||||||||||||
Other comprehensive loss before reclassifications, net of income taxes | ( | ( | |||||||||||||||
Net current period other comprehensive loss, net of income taxes | ( | ( | |||||||||||||||
Balance, September 29, 2023 | $ | $ | ( | $ | |||||||||||||
For the Three Months Ended September 30, 2022: | |||||||||||||||||
Balance, July 1, 2022 | $ | $ | ( | $ | |||||||||||||
Other comprehensive loss before reclassifications, net of income taxes | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||||
Increase | (a) | ||||||||||||||||
Income tax impact | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of income taxes | |||||||||||||||||
Net current period other comprehensive loss, net of income taxes | ( | ( | |||||||||||||||
Balance, September 30, 2022 | $ | $ | ( | $ | |||||||||||||
(a) This accumulated other comprehensive income component is included in the computation of net periodic pension cost. | |||||||||||||||||
(b) Includes balances relating to defined benefit plans and supplemental executive retirement plans. |
($ in millions) | Foreign Currency Translation Adjustments | Other Adjustments (b) | Total | ||||||||||||||
For the Nine Months Ended September 29, 2023: | |||||||||||||||||
Balance, December 31, 2022 | $ | $ | ( | $ | |||||||||||||
Other comprehensive loss before reclassifications, net of income taxes | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||||
Sale of business | (c) | ||||||||||||||||
Increase | (a) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of income taxes | |||||||||||||||||
Net current period other comprehensive (loss) income, net of income taxes | ( | ( | |||||||||||||||
Balance, September 29, 2023 | $ | $ | ( | $ | |||||||||||||
For the Nine Months Ended September 30, 2022: | |||||||||||||||||
Balance, December 31, 2021 | $ | $ | ( | $ | |||||||||||||
Other comprehensive loss before reclassifications, net of income taxes | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||||
Increase | (a) | ||||||||||||||||
Income tax impact | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of income taxes | |||||||||||||||||
Net current period other comprehensive (loss) income, net of income taxes | ( | ( | |||||||||||||||
Balance, September 30, 2022 | $ | $ | ( | $ | |||||||||||||
(a) This accumulated other comprehensive income component is included in the computation of net periodic pension cost. | |||||||||||||||||
(b) Includes balances relating to defined benefit plans and supplemental executive retirement plans. | |||||||||||||||||
(c) Reclassified to Gain on sale of business in the Consolidated Condensed Statements of Earnings and Comprehensive Income. | |||||||||||||||||
($ in millions) | September 29, 2023 | December 31, 2022 | |||||||||
Deferred revenue, current | $ | $ | |||||||||
Deferred revenue, noncurrent | |||||||||||
Total contract liabilities | $ | $ |
($ in millions) | Mobility Technologies | Repair Solutions | Environmental & Fueling Solutions | Other | Total | ||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||
Sales of products | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Sales of services | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Geographic: | |||||||||||||||||||||||||||||
North America (a) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||||||||
High growth markets | |||||||||||||||||||||||||||||
Rest of world | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
($ in millions) | Mobility Technologies | Repair Solutions | Environmental & Fueling Solutions | Other | Total | ||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||
Sales of products | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Sales of services | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Geographic: | |||||||||||||||||||||||||||||
North America (a) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||||||||
High growth markets | |||||||||||||||||||||||||||||
Rest of world | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
($ in millions) | Mobility Technologies | Repair Solutions | Environmental & Fueling Solutions | Other | Total | ||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||
Sales of products | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Sales of services | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Geographic: | |||||||||||||||||||||||||||||
North America (a) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||||||||
High growth markets | |||||||||||||||||||||||||||||
Rest of world | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
($ in millions) | Mobility Technologies | Repair Solutions | Environmental & Fueling Solutions | Other | Total | ||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||
Sales of products | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Sales of services | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Geographic: | |||||||||||||||||||||||||||||
North America (a) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||||||||
High growth markets | |||||||||||||||||||||||||||||
Rest of world | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
($ in millions) | September 29, 2023 | September 30, 2022 | September 29, 2023 | September 30, 2022 | |||||||||||||||||||
Sales: | |||||||||||||||||||||||
Mobility Technologies | $ | $ | $ | $ | |||||||||||||||||||
Repair Solutions(a) | |||||||||||||||||||||||
Environmental & Fueling Solutions | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Segment operating profit: | |||||||||||||||||||||||
Mobility Technologies | $ | $ | $ | $ | |||||||||||||||||||
Repair Solutions(b) | |||||||||||||||||||||||
Environmental & Fueling Solutions | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Segment operating profit | |||||||||||||||||||||||
Corporate & other unallocated costs(b) | ( | ( | ( | ( | |||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Gain on sale of business | |||||||||||||||||||||||
Gain on previously held equity interests from combination of business | |||||||||||||||||||||||
Unrealized (loss) gain on equity securities measured at fair value | ( | ||||||||||||||||||||||
Other non-operating (expense) income, net | ( | ( | |||||||||||||||||||||
Earnings before income taxes | $ | $ | $ | $ | |||||||||||||||||||
Depreciation expense: | |||||||||||||||||||||||
Mobility Technologies | $ | $ | $ | $ | |||||||||||||||||||
Repair Solutions | |||||||||||||||||||||||
Environmental & Fueling Solutions | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
($ in millions) | |||||
Balance, December 31, 2022 | $ | ||||
Accruals for warranties issued during the period | |||||
Settlements made | ( | ||||
Effect of foreign currency translation | ( | ||||
Balance, September 29, 2023 | $ |
($ in millions) | Classification | September 29, 2023 | December 31, 2022 | ||||||||||||||
Gross liabilities | |||||||||||||||||
Current | Accrued expenses and other current liabilities | $ | $ | ||||||||||||||
Long-term | Other long-term liabilities | ||||||||||||||||
Total | |||||||||||||||||
Projected insurance recoveries | |||||||||||||||||
Current | Prepaid expenses and other current assets | ||||||||||||||||
Long-term | Other assets | ||||||||||||||||
Total | $ | $ |
($ in millions) | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||
September 29, 2023 | |||||||||||||||||||||||
Contingent consideration liabilities | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation liabilities | |||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Equity securities measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
Contingent consideration liabilities | |||||||||||||||||||||||
Deferred compensation liabilities |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(in millions, except per share amounts) | September 29, 2023 | September 30, 2022 | September 29, 2023 | September 30, 2022 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted average common shares outstanding | |||||||||||||||||||||||
Effect of dilutive stock options and RSUs | |||||||||||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Anti-dilutive shares |
ASSETS | |||||
Accounts receivable, less allowance for credit losses | $ | ||||
Inventories | |||||
Prepaid expenses and other current assets | |||||
Property, plant and equipment, net | |||||
Operating lease right-of-use assets | |||||
Goodwill | |||||
Total assets held for sale | $ | ||||
LIABILITIES | |||||
Trade accounts payable | $ | ||||
Current operating lease liabilities | |||||
Accrued expenses and other current liabilities | |||||
Other long-term liabilities | |||||
Total liabilities held for sale | $ | ||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
($ in millions) | September 29, 2023 | September 30, 2022 | September 29, 2023 | September 30, 2022 | |||||||||||||||||||
Sales | $ | 765.4 | $ | 788.0 | $ | 2,306.2 | $ | 2,312.5 | |||||||||||||||
Cost of sales | (406.4) | (428.1) | (1,246.1) | (1,269.2) | |||||||||||||||||||
Gross profit | 359.0 | 359.9 | 1,060.1 | 1,043.3 | |||||||||||||||||||
Operating costs: | |||||||||||||||||||||||
Selling, general and administrative expenses ("SG&A") | (177.3) | (174.7) | (542.7) | (517.4) | |||||||||||||||||||
Research and development expenses ("R&D") | (39.1) | (35.0) | (120.4) | (104.4) | |||||||||||||||||||
Operating profit | $ | 142.6 | $ | 150.2 | $ | 397.0 | $ | 421.5 | |||||||||||||||
Gross profit as a % of sales | 46.9 | % | 45.7 | % | 46.0 | % | 45.1 | % | |||||||||||||||
SG&A as a % of sales | 23.2 | % | 22.2 | % | 23.5 | % | 22.4 | % | |||||||||||||||
R&D as a % of sales | 5.1 | % | 4.4 | % | 5.2 | % | 4.5 | % | |||||||||||||||
Operating profit as a % of sales | 18.6 | % | 19.1 | % | 17.2 | % | 18.2 | % |
% Change Three Months Ended September 29, 2023 vs. Comparable 2022 Period | % Change Nine Months Ended September 29, 2023 vs. Comparable 2022 Period | ||||||||||
Total sales growth (GAAP) | (2.9) | % | (0.3) | % | |||||||
Core sales (Non-GAAP) | (2.6) | % | (0.2) | % | |||||||
Acquisitions and divestitures (Non-GAAP) | (0.2) | % | 0.8 | % | |||||||
Currency exchange rates (Non-GAAP) | (0.1) | % | (0.9) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
($ in millions) | September 29, 2023 | September 30, 2022 | September 29, 2023 | September 30, 2022 | |||||||||||||||||||
Mobility Technologies | $ | 247.7 | $ | 228.5 | $ | 732.4 | $ | 646.7 | |||||||||||||||
Repair Solutions | 160.2 | 152.7 | 500.0 | 466.8 | |||||||||||||||||||
Environmental & Fueling Solutions | 331.6 | 368.5 | 984.7 | 1,072.0 | |||||||||||||||||||
Other | 25.9 | 38.3 | 89.1 | 127.0 | |||||||||||||||||||
Total | $ | 765.4 | $ | 788.0 | $ | 2,306.2 | $ | 2,312.5 |
% Change Three Months Ended September 29, 2023 vs. Comparable 2022 Period | % Change Nine Months Ended September 29, 2023 vs. Comparable 2022 Period | ||||||||||
Total sales growth (GAAP) | 8.4 | % | 13.3 | % | |||||||
Core sales (Non-GAAP) | 4.1 | % | 6.8 | % | |||||||
Acquisitions (Non-GAAP) | 4.8 | % | 7.9 | % | |||||||
Currency exchange rates (Non-GAAP) | (0.5) | % | (1.4) | % |
% Change Three Months Ended September 29, 2023 vs. Comparable 2022 Period | % Change Nine Months Ended September 29, 2023 vs. Comparable 2022 Period | ||||||||||
Total sales growth (GAAP) | 4.9 | % | 7.1 | % | |||||||
Core sales (Non-GAAP) | 5.0 | % | 7.2 | % | |||||||
Acquisitions (Non-GAAP) | — | % | — | % | |||||||
Currency exchange rates (Non-GAAP) | (0.1) | % | (0.1) | % |
% Change Three Months Ended September 29, 2023 vs. Comparable 2022 Period | % Change Nine Months Ended September 29, 2023 vs. Comparable 2022 Period | ||||||||||
Total sales growth (GAAP) | (10.0) | % | (8.1) | % | |||||||
Core sales (Non-GAAP) | (10.3) | % | (7.2) | % | |||||||
Acquisitions (Non-GAAP) | — | % | — | % | |||||||
Currency exchange rates (Non-GAAP) | 0.3 | % | (0.9) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | September 29, 2023 | Margin | September 30, 2022 | Margin | September 29, 2023 | Margin | September 30, 2022 | Margin | |||||||||||||||||||||||||||||||||||||||
Mobility Technologies | $ | 51.4 | 20.8 | % | $ | 54.8 | 24.0 | % | $ | 144.0 | 19.7 | % | $ | 138.5 | 21.4 | % | |||||||||||||||||||||||||||||||
Repair Solutions | 43.3 | 27.0 | 48.6 | 31.8 | 132.2 | 26.4 | 137.2 | 29.4 | |||||||||||||||||||||||||||||||||||||||
Environmental & Fueling Solutions | 95.7 | 28.9 | 104.3 | 28.3 | 271.6 | 27.6 | 284.8 | 26.6 | |||||||||||||||||||||||||||||||||||||||
Other | 2.2 | 8.5 | 1.5 | 3.9 | 8.2 | 9.2 | 9.8 | 7.7 | |||||||||||||||||||||||||||||||||||||||
Segment operating profit | 192.6 | 25.2 | 209.2 | 26.5 | 556.0 | 24.1 | 570.3 | 24.7 | |||||||||||||||||||||||||||||||||||||||
Corporate & other unallocated costs(a) | (50.0) | (6.6) | (59.0) | (7.4) | (159.0) | (6.9) | (148.8) | (6.5) | |||||||||||||||||||||||||||||||||||||||
Total operating profit | $ | 142.6 | 18.6 | % | $ | 150.2 | 19.1 | % | $ | 397.0 | 17.2 | % | $ | 421.5 | 18.2 | % |
Nine Months Ended | |||||||||||
($ in millions) | September 29, 2023 | September 30, 2022 | |||||||||
Net cash provided by operating activities | $ | 290.1 | $ | 139.8 | |||||||
Proceeds from sale of business, net of cash provided | $ | 107.5 | $ | — | |||||||
Cash paid for acquisitions, net of cash received | — | (277.1) | |||||||||
Payments for additions to property, plant and equipment | (43.5) | (43.0) | |||||||||
Proceeds from sale of property | 4.3 | 0.2 | |||||||||
Cash paid for equity investments | (2.7) | (11.3) | |||||||||
Proceeds from sale of equity securities | 20.4 | 5.1 | |||||||||
Net cash provided by (used in) investing activities | $ | 86.0 | $ | (326.1) | |||||||
Proceeds from issuance of long-term debt | $ | — | $ | 235.0 | |||||||
Repayment of long-term debt | (240.0) | (185.0) | |||||||||
Net proceeds from short-term borrowings | 1.4 | 3.6 | |||||||||
Payments of common stock cash dividend | (11.7) | (12.0) | |||||||||
Purchases of treasury stock | (61.6) | (288.0) | |||||||||
Proceeds from stock option exercises | 6.0 | 1.3 | |||||||||
Other financing activities | (7.4) | (3.8) | |||||||||
Net cash used in financing activities | $ | (313.3) | $ | (248.9) |
Summarized Results of Operations Data ($ in millions) | Nine Months Ended September 29, 2023 | ||||
Net sales (a) | $ | 1,141.5 | |||
Gross profit (b) | 560.5 | ||||
Net income (c) | $ | 259.0 | |||
(a) Includes intercompany sales of $23.6 million for the nine months ended September 29, 2023. | |||||
(b) Includes intercompany gross profit of $4.6 million for the nine months ended September 29, 2023. | |||||
(c) Includes intercompany pretax income of $25.5 million for the nine months ended September 29, 2023. |
Summarized Balance Sheet Data ($ in millions) | September 29, 2023 | ||||
Assets | |||||
Current assets | $ | 398.8 | |||
Intercompany receivables | 1,639.1 | ||||
Noncurrent assets | 636.2 | ||||
Total assets | $ | 2,674.1 | |||
Liabilities | |||||
Current liabilities | $ | 339.1 | |||
Intercompany payables | 379.8 | ||||
Noncurrent liabilities | 2,402.1 | ||||
Total liabilities | $ | 3,121.0 |
Period | Total Number of Shares Purchased (in millions) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (in millions) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs ($ in millions) | |||||||||||||||||||
July 1, 2023 to July 28, 2023 | — | $ | — | — | $ | 378.9 | |||||||||||||||||
July 29, 2023 to August 25, 2023 | 0.3 | 29.86 | 0.3 | 369.5 | |||||||||||||||||||
August 26, 2023 to September 29, 2023 | 0.1 | 30.60 | 0.1 | 367.3 | |||||||||||||||||||
Total | 0.4 | 0.4 |
Incorporated by Reference (Unless Otherwise Indicated) | |||||||||||||||||
Exhibit Number | Exhibit Index | Form | File No. | Exhibit | Filing Date | ||||||||||||
22.1 | 10-K | 001-39483 | 22.1 | February 17, 2023 | |||||||||||||
31.1 | — | — | Filed herewith | ||||||||||||||
31.2 | — | — | Filed herewith | ||||||||||||||
32.1 | — | — | Filed herewith | ||||||||||||||
32.2 | — | — | Filed herewith | ||||||||||||||
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 | — | — | Filed herewith | |||||||||||||
101.SCH | Inline XBRL Taxonomy Schema Document | — | — | Filed herewith | |||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | — | — | Filed herewith | |||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | — | — | Filed herewith | |||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | — | — | Filed herewith | |||||||||||||
101.PRE | Inline Taxonomy Extension Presentation Linkbase Document | — | — | Filed herewith | |||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | — | — | Filed herewith | |||||||||||||
VONTIER CORPORATION: | ||||||||
Date: November 2, 2023 | By: | /s/ Anshooman Aga | ||||||
Anshooman Aga | ||||||||
Senior Vice President and Chief Financial Officer | ||||||||
Date: November 2, 2023 | By: | /s/ Paul V. Shimp | ||||||
Paul V. Shimp | ||||||||
Chief Accounting Officer |
Date: November 2, 2023 | By: | /s/ Mark D. Morelli | ||||||
Mark D. Morelli | ||||||||
President and Chief Executive Officer |
Date: November 2, 2023 | By: | /s/ Anshooman Aga | ||||||
Anshooman Aga | ||||||||
Senior Vice President and Chief Financial Officer |
Date: November 2, 2023 | By: | /s/ Mark D. Morelli | ||||||
Mark D. Morelli | ||||||||
President and Chief Executive Officer |
Date: November 2, 2023 | By: | /s/ Anshooman Aga | ||||||
Anshooman Aga | ||||||||
Senior Vice President and Chief Financial Officer |
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Sep. 29, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit losses | $ 34.4 | $ 34.2 |
Financing receivable, allowance for credit losses | $ 32.5 | $ 37.7 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, issued (in shares) | 170,500,000 | 169,700,000 |
Common stock, outstanding (in shares) | 154,400,000 | 156,000,000 |
Treasury stock, common, shares (in shares) | 16,100,000 | 13,700,000 |
Consolidated Condensed Statements of Changes in Equity (Parenthetical) - $ / shares |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 29, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jul. 01, 2022 |
Apr. 01, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||||
Dividend on common stock (in dollars per share) | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 |
Business Overview and Basis of Presentation |
9 Months Ended |
---|---|
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview and Basis of Presentation | BUSINESS OVERVIEW AND BASIS OF PRESENTATION Nature of Business Vontier Corporation (“Vontier” or the “Company”) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. As of September 29, 2023, the Company operates through three reportable segments which align to the Company’s three operating segments: (i) Mobility Technologies, which provides digitally enabled equipment and solutions to support efficient operations across the mobility ecosystem, including point-of-sale and payment systems, workflow automation solutions, telematics, data analytics, software platform for electric vehicle charging networks, and integrated solutions for alternative fuel dispensing; (ii) Repair Solutions, which manufactures and distributes aftermarket vehicle repair tools, toolboxes, automotive diagnostic equipment and software through a network of mobile franchisees; and (iii) Environmental & Fueling Solutions, which provides environmental and fueling hardware and software, and aftermarket solutions for global fueling infrastructure. Basis of Presentation and Unaudited Interim Financial Information The accompanying Consolidated Condensed Financial Statements present the Company’s historical financial position, results of operations, changes in equity and cash flows in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and are unaudited. The interim Consolidated Condensed Financial Statements include the accounts of Vontier and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. The Consolidated Condensed Financial Statements also reflect the impact of noncontrolling interests. Noncontrolling interests do not have a significant impact on the Company’s consolidated results of operations, therefore, net earnings and net earnings per share attributable to noncontrolling interests are not presented separately in the Company’s Consolidated Condensed Statements of Earnings and Comprehensive Income. Net earnings attributable to noncontrolling interests have been reflected in selling, general and administrative expenses (“SG&A”) and were insignificant in all periods presented. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The accompanying interim Consolidated Condensed Financial Statements and the related notes should be read in conjunction with the Company’s Consolidated and Combined Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report on Form 10-K”). Goodwill In the first quarter of 2023, the Company realigned its internal organization, as further discussed in Note 9. Segment Information, which resulted in a decrease in the number of reporting units for goodwill impairment testing from seven reporting units to five reporting units. For historical reporting units that were divided among the Company’s new reporting units after the realignment, the Company used the relative fair value method to reallocate goodwill to the new reporting units. The Company performed a qualitative goodwill impairment test immediately prior to and following the change in reporting units. Based on the Company’s assessment, the Company determined on the basis of the qualitative and quantitative factors that the fair values of the reporting units were more likely than not greater than their respective carrying values both immediately prior to and following the change in reporting units, and therefore, a quantitative test was not required. Foreign Currency Translation and Transactions Exchange rate adjustments resulting from foreign currency transactions are recognized in Net earnings, whereas effects resulting from the translation of financial statements are reflected as a component of Accumulated other comprehensive income within equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using period-end exchange rates and income statement accounts are translated at weighted average exchange rates. Net foreign currency transaction gains or losses were not material in any of the periods presented. Recently Adopted Accounting Standards In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which requires enhanced disclosure of certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty while eliminating certain current recognition and measurement accounting guidance. This ASU also requires the disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases. ASU 2022-02 became effective for the Company’s annual and interim periods beginning on January 1, 2023. The Company has disclosed current-period gross write-offs in Note 3. Financing and Trade Receivables, while the other provisions of ASU 2022-02 did not have a material impact on the Company’s financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) and in January 2021 issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to defer the sunset date of ASU 2020-04 from December 31, 2022 to December 31, 2024. These ASUs provide temporary optional expedients and exceptions to existing guidance on contract modifications and hedge accounting to facilitate the market transition from existing reference rates, such as the London Inter-bank Offered Rate (“LIBOR”) which is being phased out, to alternate reference rates, such as the Secured Overnight Financing Rate (“SOFR”). These standards were effective upon issuance and allowed application to contract changes as early as January 1, 2020. The Company has transitioned all debt that historically referenced LIBOR to alternate reference rates, utilizing certain practical expedients to account for the modifications prospectively.
|
Acquisitions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS The Company did not complete any acquisitions during the nine months ended September 29, 2023. During the nine months ended September 30, 2022, the Company completed the acquisition of Driivz Ltd. (“Driivz”) and Invenco Group Ltd. (“Invenco”), which are further discussed below, and acquired all of the outstanding equity interests in two other businesses. Driivz On February 7, 2022, the Company acquired the remaining 81% of the outstanding shares of Driivz for $152.5 million, net of cash received. Driivz, which is based in Israel, is a cloud-based subscription software platform supporting electric vehicle charging infrastructure (“EVCI”) providers with operations management, energy optimization, billing and roaming capabilities, as well as driver self-service apps. The acquisition of Driivz accelerates the Company’s portfolio diversification and e-mobility strategies and positions the Company to capitalize on the global EVCI market opportunities. The acquisition of Driivz was accounted for as a business combination and, accordingly, the assets acquired and the liabilities assumed have been recorded at their respective fair values as of the acquisition date. The goodwill is attributable to the workforce of the acquired business, future market opportunities and the expected synergies with the Company’s existing operations. The majority of the goodwill derived from this acquisition is not deductible for tax purposes. The Company’s final purchase price allocation is as follows:
The Company recorded certain adjustments to the preliminary purchase price allocation during the measurement period resulting in a net decrease of $5.2 million to goodwill. The carrying value of the Company’s approximately 19% interest in Driivz prior to the acquisition was $10.3 million, which historically was carried at cost. In connection with the acquisition, this investment was remeasured to a fair value of $43.0 million resulting in the recognition of an aggregate noncash gain of $32.7 million during the nine months ended September 30, 2022, which was included in Gain on previously held equity interests from combination of business in the Consolidated Condensed Statements of Earnings and Comprehensive Income. The Company has not disclosed post-acquisition or pro forma revenue and earnings attributable to Driivz as it did not have a material effect on the Company’s results. Driivz is presented in the Company’s Mobility Technologies segment. Invenco On August 31, 2022, the Company acquired all of the outstanding equity interests of Invenco for $83.1 million, net of cash received. The purchase price includes contingent consideration initially measured at $6.1 million, which can reach up to $100.0 million based on achieving certain revenue targets. Invenco, which is based in New Zealand, is a global provider of self-service payment and microservice solutions with a range of products including outdoor payment terminals, electronic payment servers, payment switches, and cloud services. The acquisition of Invenco further advances the Company’s portfolio diversification and accelerates its digital strategy. The acquisition of Invenco was accounted for as a business combination and, accordingly, the assets acquired and the liabilities assumed have been recorded at their respective fair values as of the acquisition date. The final purchase price allocation was as follows: (i) $35.7 million to definite-lived intangible assets consisting of developed technology, customer relationships and a trade name with a weighted average amortization period of approximately five years, (ii) $33.0 million to goodwill and (iii) $14.4 million to other net assets. The goodwill is attributable to the workforce of the acquired business, future market opportunities and the expected synergies with the Company’s existing operations. The majority of the goodwill derived from this acquisition is not deductible for tax purposes. The Company recorded certain adjustments to the preliminary purchase price allocation during the measurement period resulting in a net increase of $5.7 million to goodwill. The Company has not disclosed post-acquisition or pro forma revenue and earnings attributable to Invenco as it did not have a material effect on the Company’s results. Invenco is presented in the Company’s Mobility Technologies segment.
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Financing and Trade Receivables |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing and Trade Receivables | FINANCING AND TRADE RECEIVABLES The Company’s financing receivables are comprised of commercial purchase security agreements with the Company’s end customers (“PSAs”) and commercial loans to the Company’s franchisees (“Franchisee Notes”) in the Repair Solutions segment. Financing receivables are generally secured by the underlying tools and equipment financed. Revenues associated with the Company’s interest income related to financing receivables are recognized to approximate a constant effective yield over the contract term. Accrued interest is included in Accounts receivable, less allowance for credit losses on the Consolidated Condensed Balance Sheets and was insignificant as of September 29, 2023 and December 31, 2022. The components of financing receivables with payments due in less than twelve months that are presented in Accounts receivable, less allowance for credit losses on the Consolidated Condensed Balance Sheets were as follows:
The components of Long-term financing receivables, less allowance for credit losses, which consists of financing receivables with payments due beyond one year, were as follows:
As of September 29, 2023 and December 31, 2022, the net unamortized discount on our financing receivables was $18.1 million and $16.8 million, respectively. Credit score and distributor tenure are the primary indicators of credit quality for the Company’s financing receivables. The amortized cost basis and current period gross write-offs of PSAs and Franchisee Notes by origination year as of and for the nine months ended September 29, 2023, is as follows:
Past Due PSAs are considered past due when a contractual payment has not been made. If a customer is making payments on its account, interest will continue to accrue. The table below sets forth the aging of the Company’s PSA balances as of:
Franchisee Notes are considered past due when payments have not been made for 21 days after the due date. Past due Franchisee Notes (where the franchisee had not yet separated) were insignificant as of September 29, 2023 and December 31, 2022. Uncollectable Status PSAs are deemed uncollectable and written off when they are both contractually delinquent and no payment has been received for 180 days. Franchisee Notes are deemed uncollectable and written off after a distributor separates and no payments have been received for one year. The Company stops accruing interest and other fees associated with financing receivables when (i) a customer is placed in uncollectable status and repossession efforts have begun; (ii) upon receipt of notification of bankruptcy; (iii) upon notification of the death of a customer; or (iv) other instances in which management concludes collectability is not reasonably assured. Allowance for Credit Losses Related to Financing Receivables The Company calculates the allowance for credit losses considering several factors, including the aging of its financing receivables, historical credit loss and portfolio delinquency experience and current economic conditions. The Company also evaluates financing receivables with identified exposures, such as customer defaults, bankruptcy or other events that make it unlikely it will recover the amounts owed to it. In calculating such reserves, the Company evaluates expected cash flows, including estimated proceeds from disposition of collateral, and calculates an estimate of the potential loss and the probability of loss. When a loss is considered probable on an individual financing receivable, a specific reserve is recorded. The following is a rollforward of the PSAs and Franchisee Notes components of the Company’s allowance for credit losses related to financing receivables as of:
Allowance for Credit Losses Related to Trade Accounts Receivables The following is a rollforward of the allowance for credit losses related to the Company’s trade accounts receivables, excluding financing receivables, and the Company’s trade accounts receivable cost basis as of:
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Inventories |
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Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES The classes of inventory as of September 29, 2023 and December 31, 2022 are summarized as follows:
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Financing |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing | FINANCING The Company had the following debt outstanding as of:
The Company’s long-term debt requires, among others, that the Company maintains certain financial covenants, and the Company was in compliance with all of these covenants as of September 29, 2023. Credit Facilities Revolving Credit Facility The Revolving Credit Facility bears interest at a variable rate equal to SOFR plus an 11.4 basis points SOFR adjustment, plus a ratings-based margin which was 117.5 basis points as of September 29, 2023. As of September 29, 2023, there were no borrowings outstanding and $750.0 million of borrowing capacity under the Revolving Credit Facility. Three-Year Term Loans Due 2024 The Three-Year Term Loans Due 2024, which mature on October 28, 2024, bear interest at a variable rate equal to SOFR plus an 11.4 basis points SOFR adjustment, plus a ratings-based margin which was 112.5 basis points as of September 29, 2023. The interest rate was 6.56% per annum as of September 29, 2023. The Company is not obligated to make repayments prior to the maturity date, but did voluntarily repay $75.0 million and $240.0 million during the three and nine months ended September 29, 2023, respectively. The Company is not permitted to re-borrow once repayment is made. There was no material difference between the carrying value and the estimated fair value of the debt outstanding as of September 29, 2023. Three-Year Term Loans Due 2025 The Three-Year Term Loans Due 2025 (together with the Three-Year Term Loans Due 2024, the “Term Loans”) bear interest at a variable rate equal to SOFR plus a 10.0 basis points credit spread adjustment plus a ratings-based margin which was 125.0 basis points as of September 29, 2023. The interest rate was 6.67% per annum as of September 29, 2023. As of September 29, 2023, there was no material difference between the carrying value and the estimated fair value of the debt outstanding. Senior Unsecured Notes The Company’s senior unsecured notes (collectively, the “Registered Notes”) consist of the following: •$500.0 million aggregate principal amount of senior notes due April 1, 2026 bearing interest at the rate of 1.800% per year; •$500.0 million aggregate principal amount of senior notes due April 1, 2028 bearing interest at the rate of 2.400% per year; and •$600.0 million aggregate principal amount of senior notes due April 1, 2031 bearing interest at the rate of 2.950% per year. The estimated fair value of the Registered Notes was $1.3 billion as of September 29, 2023. The fair value of the Registered Notes was determined based upon Level 2 inputs including indicative prices based upon observable market data. The difference between the fair value and the carrying amounts of the Registered Notes may be attributable to changes in market interest rates and/or the Company’s credit ratings subsequent to the incurrence of the borrowing. Short-term Borrowings As of September 29, 2023, certain of the Company’s businesses were in a cash overdraft position, and such overdrafts are included in Short-term borrowings on the Consolidated Condensed Balance Sheets. Additionally, the Company has other short-term borrowing arrangements with various banks to facilitate short-term cash flow requirements in certain countries also included in Short-term borrowings on the Consolidated Condensed Balance Sheets. Given the nature of the short-term borrowings, the carrying value approximates fair value as of September 29, 2023.
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Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. The changes in Accumulated other comprehensive income by component are summarized below:
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Sales |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | SALES Contract Assets In certain circumstances, contract assets are recorded which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is subject to contractual performance obligations rather than subject only to the passage of time. Contract assets were $7.1 million and $12.3 million as of September 29, 2023 and December 31, 2022, respectively, and are included in Prepaid expenses and other current assets in the accompanying Consolidated Condensed Balance Sheets. Contract Costs The Company incurs direct incremental costs to obtain certain contracts, typically costs associated with assets used by our customers in certain service arrangements and sales-related commissions. As of September 29, 2023 and December 31, 2022, the Company had $86.6 million and $88.6 million, respectively, in net revenue-related capitalized contract costs primarily related to assets used by the Company’s customers in certain software contracts, which are recorded in Prepaid expenses and other current assets, for the current portion, and Other assets, for the noncurrent portion, in the accompanying Consolidated Condensed Balance Sheets. Contract Liabilities The Company’s contract liabilities consist of deferred revenue generally related to customer deposits, post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts where applicable. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized and is included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the accompanying Consolidated Condensed Balance Sheets. The Company’s contract liabilities consisted of the following:
During the three and nine months ended September 29, 2023, the Company recognized $15.8 million and $96.4 million of revenue related to the Company’s contract liabilities at December 31, 2022, respectively. The change in contract liabilities from December 31, 2022 to September 29, 2023 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm, noncancelable orders and the annual contract value for software-as-a-service contracts with an original duration greater than one year for which work has not been performed. The Company has excluded performance obligations with an original expected duration of one year or less. Remaining performance obligations as of September 29, 2023 were $397.4 million, the majority of which are related to the annual contract value for software-as-a-service contracts. The Company expects approximately 40 percent of the remaining performance obligations will be fulfilled within the next two years, 70 percent within the next three years, and substantially all within four years. Disaggregation of Revenue Revenue from contracts with customers is disaggregated by sales of products and services and geographic location for each of our reportable segments, as it best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Disaggregation of revenue was as follows for the three months ended September 29, 2023:
(a) Includes total sales in the United States of $543.1 million. Disaggregation of revenue was as follows for the three months ended September 30, 2022:
(a) Includes total sales in the United States of $567.4 million. Disaggregation of revenue was as follows for the nine months ended September 29, 2023:
(a) Includes total sales in the United States of $1,613.4 million. Disaggregation of revenue was as follows for the nine months ended September 30, 2022:
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Income Taxes |
9 Months Ended |
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Sep. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate for the three and nine months ended September 29, 2023 was 24.4% and 24.6%, respectively, as compared to 26.2% and 21.8% for the three and nine months ended September 30, 2022, respectively. The decrease in the effective tax rate for the three months ended September 29, 2023 as compared to the comparable period in the prior year was primarily due to a loss from the sale of equity securities measured at fair value in the prior year. The increase in the effective tax rate for the nine months ended September 29, 2023 as compared to the comparable period in the prior year was primarily due to non-taxable income related to our previously held equity interest in Driivz in the prior year. The Company’s effective tax rate for the three and nine months ended September 29, 2023 differs from the U.S. federal statutory rate of 21% primarily due to the effect of state taxes and foreign taxable earnings at a rate different from the U.S. federal statutory rate. The Company’s effective tax rate for the three and nine months ended September 30, 2022 differs from the U.S. federal statutory rate of 21% primarily due to the effect of state taxes and foreign taxable earnings at a rate different from the U.S. federal statutory rate, which for the nine months ended September 30, 2022, was offset by non-taxable income related to the Company’s previously held equity interest in Driivz.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION In the first quarter of 2023, the Company realigned its internal organization to align with the Company’s strategy, resulting in changes to the Company’s operating segments. Historically, the Company operated through one reportable segment comprised of two operating segments: (i) Mobility Technologies and (ii) Diagnostics and Repair Technologies. Subsequent to the realignment, the Company now operates through three reportable segments which align to the Company’s three operating segments: (i) Mobility Technologies, (ii) Repair Solutions and (iii) Environmental & Fueling Solutions. The Company’s Coats (Hennessy) business, which is currently held for sale, is presented in Other. The Company’s Global Traffic Technologies business, which was divested during April 2023, is presented in Other for periods prior to the divestiture. Refer to Note 13. Divestitures and Assets and Liabilities Held for Sale for further discussion of the Company’s Coats (Hennessy) and Global Traffic Technologies businesses. Segment operating profit is used as a performance metric by the chief operating decision maker (“CODM”) in determining how to allocate resources and assess performance. Segment operating profit represents total segment sales less operating costs attributable to the segment, which does not include unallocated corporate costs and other operating costs not allocated to the reportable segments as part of the CODM’s assessment of reportable segment operating performance, including stock-based compensation expense, amortization of intangible assets, restructuring costs, transaction- and deal-related costs, and other costs not indicative of the segment’s core operating performance. As part of the CODM’s assessment of the Repair Solutions segment, a capital charge based on the segment’s financing receivables portfolio is assessed by Corporate (the “Repair Solutions Capital Charge”). The unallocated corporate and other operating costs are presented in Corporate & other unallocated costs in the reconciliation to earnings before income taxes below. Intersegment amounts are not significant and have been eliminated. The Company’s CODM does not review any information regarding total assets on a segment basis. Prior period segment results have been presented in conformity with the Company’s new reportable segments. Segment results for the periods indicated were as follows:
(a) Includes interest income related to financing receivables of $19.7 million, $17.9 million, $58.5 million and $54.5 million for the three and nine months ended September 29, 2023 and September 30, 2022, respectively. (b) Includes the Repair Solutions Capital Charge of $10.5 million, $10.0 million, $31.0 million and $29.8 million for the three and nine months ended September 29, 2023 and September 30, 2022, respectively.
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Litigation and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Litigation and Contingencies | LITIGATION AND CONTINGENCIES Warranty Estimated warranty costs are generally accrued at the time of sale. In general, manufactured products are warrantied against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances, estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. The following is a rollforward of the Company’s accrued warranty liability:
Litigation and Other Contingencies The Company is involved in legal proceedings from time to time in the ordinary course of its business. Although the outcome of such matters is uncertain, management believes that these legal proceedings will not have a material adverse effect on the financial condition or results of future operations of the Company. In accordance with accounting guidance, the Company records a liability in the Consolidated Condensed Financial Statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss does not meet the known or probable level but is reasonably possible and a loss or range of loss can be reasonably estimated, the estimated loss or range of loss is disclosed. Gross liabilities associated with known and future expected asbestos claims and projected insurance recoveries were as follows as of:
Guarantees As of September 29, 2023 and December 31, 2022, the Company had guarantees consisting primarily of outstanding standby letters of credit, bank guarantees, and performance and bid bonds of approximately $81.0 million and $84.0 million, respectively. These guarantees have been provided in connection with certain arrangements with vendors, customers, financing counterparties, and governmental entities to secure the Company’s obligations and/or performance requirements related to specific transactions. The Company believes that if the obligations under these instruments were triggered, they would not have a material effect on the financial statements.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where assets and liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows: •Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. •Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation. •Level 3 inputs are unobservable inputs based on our assumptions. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Below is a summary of financial assets and liabilities that are measured at fair value on a recurring basis as of:
Equity Securities The Company held a minority interest in Tritium Holdings Pty, Ltd (“Tritium”) which historically was recorded at cost in Other assets on the Consolidated Condensed Balance Sheets. On January 13, 2022, Tritium announced that it completed a business combination with Decarbonization Plus Acquisition Corporation II to make Tritium a publicly listed company on NASDAQ under the symbol “DCFC”. Once Tritium became publicly traded, the Company recorded its investment at fair value in Equity securities measured at fair value on the Consolidated Condensed Balance Sheets with changes in the value recorded in Unrealized (loss) gain on equity securities measured at fair value on the Consolidated Condensed Statements of Earnings and Comprehensive Income and Unrealized gain on equity securities measured at fair value on the Consolidated Condensed Statements of Cash Flows. During the first quarter of 2023, the Company sold its remaining interest in Tritium and recognized a loss of $0.9 million, which is presented in Other non-operating (expense) income, net on the Consolidated Condensed Statements of Earnings and Comprehensive Income and Loss (gain) on equity investments on the Consolidated Condensed Statements of Cash Flows for the nine months ended September 29, 2023. Contingent Consideration The fair value of the contingent consideration liabilities relates to payments to previous owners of acquired companies contingent on the achievement of certain revenue targets. The Company records a liability for contingent consideration in the purchase price for acquisitions at fair value on the acquisition date, and remeasures the liability at each reporting date, based on the Company’s estimate of the expected probability of achievement of the contingency targets. This estimate is based on significant unobservable inputs and represents a Level 3 measurement within the fair value hierarchy. Deferred Compensation Certain management employees participate in the Company’s nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. All amounts deferred under such plans are unfunded, unsecured obligations and are presented as a component of our compensation and benefits accrual included in Other long-term liabilities in the Consolidated Condensed Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within our defined contribution plans for the benefit of U.S. employees (except that the earnings rates for amounts contributed unilaterally by the Company are entirely based on changes in the value of the Company’s common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates. Nonrecurring Fair Value Measurements Certain assets and liabilities are carried on the accompanying Consolidated Condensed Balance Sheets at cost and are not remeasured to fair value on a recurring basis. These assets include finite-lived intangible assets, which are tested for impairment when a triggering event occurs, and goodwill and identifiable indefinite-lived intangible assets, which are tested for impairment at least annually as of the first day of the fourth quarter or more frequently if events and circumstances indicate that the asset may not be recoverable. As of September 29, 2023, assets carried on the balance sheet and not remeasured to fair value on a recurring basis included $1.7 billion of goodwill and $584.8 million of identifiable intangible assets, net.
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Capital Stock and Earnings Per Share |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock and Earnings Per Share | CAPITAL STOCK AND EARNINGS PER SHARE Earnings Per Share Basic earnings per share is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding. Diluted earnings per share is calculated by adjusting weighted average common shares outstanding for the dilutive effect of the assumed issuance of shares under stock-based compensation plans, determined using the treasury-stock method, except where the inclusion of such shares would have an anti-dilutive impact. Information related to the calculation of net earnings per share of common stock is summarized as follows:
Share Repurchase Program On May 24, 2022, the Company’s Board of Directors approved a replenishment of the Company’s previously approved share repurchase program announced in May 2021, bringing the total amount authorized for future share repurchases to $500.0 million. Under the share repurchase program, the Company may purchase shares of common stock from time to time in open market transactions, privately negotiated transactions, accelerated share repurchase programs, or by combinations of such methods, any of which may use prearranged trading plans that are designed to meet the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, corporate and regulatory requirements, restrictions under the Company’s debt obligations and other market and economic conditions. The share repurchase program may be suspended or discontinued at any time and has no expiration date. The Company repurchased 0.4 million of the Company’s shares for $11.6 million through open market transactions at an average price per share of $30.00 during the three months ended September 29, 2023 and 2.4 million of the Company’s shares for $61.6 million through open market transactions at an average price per share of $26.00 during the nine months ended September 29, 2023. As of September 29, 2023, the Company has remaining authorization to repurchase $367.3 million of its common stock under the share repurchase program.
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Divestitures and Assets and Liabilities Held for Sale |
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Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures and Assets and Liabilities Held for Sale | DIVESTITURES AND ASSETS AND LIABILITIES HELD FOR SALE Global Traffic Technologies On April 14, 2023, the Company completed the sale of Global Traffic Technologies for $108.4 million. The Company finalized customary working capital adjustments during the three months ended September 29, 2023. As a result of the transaction, the Company recognized a gain of $0.3 million and $34.4 million during the three and nine months ended September 29, 2023, respectively, which are presented in Gain on sale of business in the Consolidated Condensed Statements of Earnings and Comprehensive Income. There is a transition services agreement (the “TSA”) in place between the Company and Global Traffic Technologies which sets forth the terms and conditions pursuant to which the Company will provide certain services to Global Traffic Technologies. Receipts related to the TSA were insignificant for the three and nine months ended September 29, 2023. The operations of Global Traffic Technologies did not meet the criteria to be presented as discontinued operations. Coats (Hennessy) During the three months ended July 1, 2022, the Company reached the strategic decision to exit its Coats (Hennessy) business. The Company determined that the associated assets and liabilities met the held for sale accounting criteria and Coats (Hennessy) was classified as Current assets held for sale and Current liabilities held for sale in the Consolidated Condensed Balance Sheets as of September 29, 2023. The operations of Coats (Hennessy) did not meet the criteria to be presented as discontinued operations. The assets and liabilities were measured at the lower of fair value less costs to sell or the carrying value. The following table summarizes the carrying amounts of major classes of assets and liabilities of Coats (Hennessy) as of September 29, 2023 (in millions):
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Insider Trading Arrangements |
3 Months Ended |
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Sep. 29, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business Overview and Basis of Presentation (Policies) |
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Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Unaudited Interim Financial Information | Basis of Presentation and Unaudited Interim Financial Information The accompanying Consolidated Condensed Financial Statements present the Company’s historical financial position, results of operations, changes in equity and cash flows in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and are unaudited. The interim Consolidated Condensed Financial Statements include the accounts of Vontier and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. The Consolidated Condensed Financial Statements also reflect the impact of noncontrolling interests. Noncontrolling interests do not have a significant impact on the Company’s consolidated results of operations, therefore, net earnings and net earnings per share attributable to noncontrolling interests are not presented separately in the Company’s Consolidated Condensed Statements of Earnings and Comprehensive Income. Net earnings attributable to noncontrolling interests have been reflected in selling, general and administrative expenses (“SG&A”) and were insignificant in all periods presented. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The accompanying interim Consolidated Condensed Financial Statements and the related notes should be read in conjunction with the Company’s Consolidated and Combined Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report on Form 10-K”).
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Goodwill | Goodwill In the first quarter of 2023, the Company realigned its internal organization, as further discussed in Note 9. Segment Information, which resulted in a decrease in the number of reporting units for goodwill impairment testing from seven reporting units to five reporting units. For historical reporting units that were divided among the Company’s new reporting units after the realignment, the Company used the relative fair value method to reallocate goodwill to the new reporting units. The Company performed a qualitative goodwill impairment test immediately prior to and following the change in reporting units. Based on the Company’s assessment, the Company determined on the basis of the qualitative and quantitative factors that the fair values of the reporting units were more likely than not greater than their respective carrying values both immediately prior to and following the change in reporting units, and therefore, a quantitative test was not required.
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Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Exchange rate adjustments resulting from foreign currency transactions are recognized in Net earnings, whereas effects resulting from the translation of financial statements are reflected as a component of Accumulated other comprehensive income within equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using period-end exchange rates and income statement accounts are translated at weighted average exchange rates. Net foreign currency transaction gains or losses were not material in any of the periods presented.
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Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which requires enhanced disclosure of certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty while eliminating certain current recognition and measurement accounting guidance. This ASU also requires the disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases. ASU 2022-02 became effective for the Company’s annual and interim periods beginning on January 1, 2023. The Company has disclosed current-period gross write-offs in Note 3. Financing and Trade Receivables, while the other provisions of ASU 2022-02 did not have a material impact on the Company’s financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) and in January 2021 issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to defer the sunset date of ASU 2020-04 from December 31, 2022 to December 31, 2024. These ASUs provide temporary optional expedients and exceptions to existing guidance on contract modifications and hedge accounting to facilitate the market transition from existing reference rates, such as the London Inter-bank Offered Rate (“LIBOR”) which is being phased out, to alternate reference rates, such as the Secured Overnight Financing Rate (“SOFR”). These standards were effective upon issuance and allowed application to contract changes as early as January 1, 2020. The Company has transitioned all debt that historically referenced LIBOR to alternate reference rates, utilizing certain practical expedients to account for the modifications prospectively.
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Sales | Contract Assets In certain circumstances, contract assets are recorded which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is subject to contractual performance obligations rather than subject only to the passage of time. Contract assets were $7.1 million and $12.3 million as of September 29, 2023 and December 31, 2022, respectively, and are included in Prepaid expenses and other current assets in the accompanying Consolidated Condensed Balance Sheets. Contract Costs The Company incurs direct incremental costs to obtain certain contracts, typically costs associated with assets used by our customers in certain service arrangements and sales-related commissions. As of September 29, 2023 and December 31, 2022, the Company had $86.6 million and $88.6 million, respectively, in net revenue-related capitalized contract costs primarily related to assets used by the Company’s customers in certain software contracts, which are recorded in Prepaid expenses and other current assets, for the current portion, and Other assets, for the noncurrent portion, in the accompanying Consolidated Condensed Balance Sheets. Contract Liabilities The Company’s contract liabilities consist of deferred revenue generally related to customer deposits, post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts where applicable. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized and is included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the accompanying Consolidated Condensed Balance Sheets.
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Fair Value Measurements | The Company held a minority interest in Tritium Holdings Pty, Ltd (“Tritium”) which historically was recorded at cost in Other assets on the Consolidated Condensed Balance Sheets. On January 13, 2022, Tritium announced that it completed a business combination with Decarbonization Plus Acquisition Corporation II to make Tritium a publicly listed company on NASDAQ under the symbol “DCFC”. Once Tritium became publicly traded, the Company recorded its investment at fair value in Equity securities measured at fair value on the Consolidated Condensed Balance Sheets with changes in the value recorded in Unrealized (loss) gain on equity securities measured at fair value on the Consolidated Condensed Statements of Earnings and Comprehensive Income and Unrealized gain on equity securities measured at fair value on the Consolidated Condensed Statements of Cash Flows. The fair value of the contingent consideration liabilities relates to payments to previous owners of acquired companies contingent on the achievement of certain revenue targets. The Company records a liability for contingent consideration in the purchase price for acquisitions at fair value on the acquisition date, and remeasures the liability at each reporting date, based on the Company’s estimate of the expected probability of achievement of the contingency targets. This estimate is based on significant unobservable inputs and represents a Level 3 measurement within the fair value hierarchy. Deferred Compensation Certain management employees participate in the Company’s nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. All amounts deferred under such plans are unfunded, unsecured obligations and are presented as a component of our compensation and benefits accrual included in Other long-term liabilities in the Consolidated Condensed Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within our defined contribution plans for the benefit of U.S. employees (except that the earnings rates for amounts contributed unilaterally by the Company are entirely based on changes in the value of the Company’s common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates.
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Acquisitions (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions | The Company’s final purchase price allocation is as follows:
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Financing and Trade Receivables (Tables) |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of financing receivables with payments due in less than twelve months that are presented in Accounts receivable, less allowance for credit losses on the Consolidated Condensed Balance Sheets were as follows:
The components of Long-term financing receivables, less allowance for credit losses, which consists of financing receivables with payments due beyond one year, were as follows:
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Financing Receivable Credit Quality Indicators | The amortized cost basis and current period gross write-offs of PSAs and Franchisee Notes by origination year as of and for the nine months ended September 29, 2023, is as follows:
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Financing Receivable, Past Due | PSAs are considered past due when a contractual payment has not been made. If a customer is making payments on its account, interest will continue to accrue. The table below sets forth the aging of the Company’s PSA balances as of:
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Financing Receivable, Allowance for Credit Loss | The following is a rollforward of the PSAs and Franchisee Notes components of the Company’s allowance for credit losses related to financing receivables as of:
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Accounts Receivable, Allowance for Credit Loss | The following is a rollforward of the allowance for credit losses related to the Company’s trade accounts receivables, excluding financing receivables, and the Company’s trade accounts receivable cost basis as of:
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Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | The classes of inventory as of September 29, 2023 and December 31, 2022 are summarized as follows:
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Financing (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The Company had the following debt outstanding as of:
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Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of Accumulated Other Comprehensive Income | The changes in Accumulated other comprehensive income by component are summarized below:
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Sales (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract liabilities | The Company’s contract liabilities consisted of the following:
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Disaggregation of revenue | Disaggregation of revenue was as follows for the three months ended September 29, 2023:
(a) Includes total sales in the United States of $543.1 million. Disaggregation of revenue was as follows for the three months ended September 30, 2022:
(a) Includes total sales in the United States of $567.4 million. Disaggregation of revenue was as follows for the nine months ended September 29, 2023:
(a) Includes total sales in the United States of $1,613.4 million. Disaggregation of revenue was as follows for the nine months ended September 30, 2022:
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | Segment results for the periods indicated were as follows:
(a) Includes interest income related to financing receivables of $19.7 million, $17.9 million, $58.5 million and $54.5 million for the three and nine months ended September 29, 2023 and September 30, 2022, respectively. (b) Includes the Repair Solutions Capital Charge of $10.5 million, $10.0 million, $31.0 million and $29.8 million for the three and nine months ended September 29, 2023 and September 30, 2022, respectively.
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Litigation and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Warranty Liability | The following is a rollforward of the Company’s accrued warranty liability:
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Schedule of Other Assets, Noncurrent | Gross liabilities associated with known and future expected asbestos claims and projected insurance recoveries were as follows as of:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis | Below is a summary of financial assets and liabilities that are measured at fair value on a recurring basis as of:
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Capital Stock and Earnings Per Share (Tables) |
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Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | Information related to the calculation of net earnings per share of common stock is summarized as follows:
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Divestitures and Assets and Liabilities Held for Sale (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Key Components of Discontinued Operations | The following table summarizes the carrying amounts of major classes of assets and liabilities of Coats (Hennessy) as of September 29, 2023 (in millions):
|
Business Overview and Basis of Presentation (Details) |
3 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2023
Segment
reportingUnit
|
Sep. 29, 2023
reportingUnit
Segment
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | 1 | 3 |
Number of operating segments | 2 | 3 |
Number of reporting units | reportingUnit | 7 | 5 |
Acquisitions - Schedule of Business Acquisitions (Details) - USD ($) $ in Millions |
Feb. 07, 2022 |
Sep. 29, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 1,721.9 | $ 1,738.7 | |
Driivz | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 1.0 | ||
Goodwill | 125.7 | ||
Other assets | 2.9 | ||
Accrued expenses and other current liabilities | (12.5) | ||
Other long-term liabilities | (15.2) | ||
Purchase price, net of cash received | 195.5 | ||
Driivz | Technology | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 56.3 | ||
Weighted Average Amortization Period | 8 years | ||
Driivz | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 28.1 | ||
Weighted Average Amortization Period | 13 years | ||
Driivz | Trade names | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 9.2 | ||
Weighted Average Amortization Period | 16 years |
Financing and Trade Receivables - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 29, 2023 |
Dec. 31, 2022 |
|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Net unamortized discount on financing receivable | $ 18.1 | $ 16.8 |
Period after due date considered past due | 21 days | |
PSAs | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, period for uncollectible status | 180 days | |
Franchisee Notes | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, period for uncollectible status | 1 year |
Financing and Trade Receivables - Financing Receivable, Past Due (Details) - PSAs - USD ($) $ in Millions |
Sep. 29, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable, Past Due [Line Items] | ||
Total | $ 338.5 | $ 320.6 |
Greater than 90 days past due and accruing interest | 6.8 | 6.9 |
30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3.5 | 3.6 |
60-90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1.8 | 1.8 |
Greater than 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6.8 | 6.9 |
Total past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12.1 | 12.3 |
Total not considered past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 326.4 | $ 308.3 |
Financing and Trade Receivables - Financing Receivable, Allowance for Credit Loss (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 29, 2023
USD ($)
| |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses, beginning of year | $ 57.3 |
Provision for credit losses | 24.5 |
Write-offs | (30.5) |
Recoveries of amounts previously charged off | 2.0 |
Allowance for credit losses, end of period | 53.3 |
PSAs | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses, beginning of year | 45.5 |
Provision for credit losses | 22.2 |
Write-offs | (28.1) |
Recoveries of amounts previously charged off | 1.7 |
Allowance for credit losses, end of period | 41.3 |
Franchisee Notes | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses, beginning of year | 11.8 |
Provision for credit losses | 2.3 |
Write-offs | (2.4) |
Recoveries of amounts previously charged off | 0.3 |
Allowance for credit losses, end of period | $ 12.0 |
Financing and Trade Receivables - Accounts Receivable, Allowance for Credit Loss (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 29, 2023
USD ($)
| |
Credit Loss [Abstract] | |
Cost basis of trade accounts receivable | $ 438.3 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 14.6 |
Provision for credit losses | 4.2 |
Write-offs | (4.8) |
Foreign currency and other | (0.4) |
Ending balance | 13.6 |
Net trade accounts receivable balance | $ 424.7 |
Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Millions |
Sep. 29, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 128.7 | $ 136.6 |
Work in process | 20.5 | 34.8 |
Raw materials | 165.1 | 174.6 |
Total | $ 314.3 | $ 346.0 |
Financing - Schedule of Debt (Details) - USD ($) $ in Millions |
Sep. 29, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Short-Term Debt | $ 6.3 | $ 4.6 |
Total long-term debt | 2,360.0 | 2,600.0 |
Less: discounts and debt issuance costs | (11.8) | (14.3) |
Total long-term debt, net | 2,348.2 | 2,585.7 |
Short-term borrowings and bank overdrafts | ||
Debt Instrument [Line Items] | ||
Short-Term Debt | 6.3 | 4.6 |
Three-Year Term Loans due 2024 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 160.0 | 400.0 |
Three-Year Term Loans due 2025 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 600.0 | 600.0 |
1.800% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 500.0 | 500.0 |
2.400% senior unsecured notes due 2028 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 500.0 | 500.0 |
2.950% senior unsecured notes due 2031 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 600.0 | 600.0 |
Revolving Credit Facility due 2026 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 0.0 | $ 0.0 |
Financing - Schedule of Debt - Footnotes (Details) |
Sep. 29, 2023 |
---|---|
1.800% senior unsecured notes due 2026 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 1.80% |
2.400% senior unsecured notes due 2028 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 2.40% |
2.950% senior unsecured notes due 2031 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 2.95% |
Sales - Contract Assets and Costs (Details) - USD ($) $ in Millions |
Sep. 29, 2023 |
Dec. 31, 2022 |
---|---|---|
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 7.1 | $ 12.3 |
Deferred Sales Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Net revenue-related contract assets | $ 86.6 | $ 88.6 |
Sales - Contract liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 29, 2023 |
Sep. 29, 2023 |
Dec. 31, 2022 |
|
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue, current | $ 140.0 | $ 140.0 | $ 135.2 |
Deferred revenue, noncurrent | 49.2 | 49.2 | 48.7 |
Total contract liabilities | 189.2 | 189.2 | $ 183.9 |
Contract liabilities, revenue recognized | $ 15.8 | $ 96.4 |
Income Taxes (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 29, 2023 |
Sep. 30, 2022 |
Sep. 29, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 24.40% | 26.20% | 24.60% | 21.80% |
Segment Information - Narrative (Details) - Segment |
3 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2023 |
Sep. 29, 2023 |
|
Segment Reporting [Abstract] | ||
Number of reportable segments | 1 | 3 |
Number of operating segments | 2 | 3 |
Litigation and Contingencies - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 29, 2023 |
Dec. 31, 2022 |
|
Loss Contingencies [Line Items] | ||
Warranty period | 90 days | |
Standby letters of credit, bank guarantees, and performance and bid bonds | ||
Loss Contingencies [Line Items] | ||
Guarantees | $ 81.0 | $ 84.0 |
Litigation and Contingencies - Rollforward of Accrued Warranty Liability (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 29, 2023
USD ($)
| |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 43.0 |
Accruals for warranties issued during the period | 27.8 |
Settlements made | (25.1) |
Effect of foreign currency translation | (0.2) |
Ending balance | $ 45.5 |
Litigation and Contingencies -Schedule of Other Assets, Noncurrent (Details) - Asbestos Claims - USD ($) $ in Millions |
Sep. 29, 2023 |
Dec. 31, 2022 |
---|---|---|
Loss Contingencies [Line Items] | ||
Gross liabilities | $ 102.9 | $ 105.2 |
Projected insurance recoveries | 64.8 | 68.6 |
Accrued expenses and other current liabilities | ||
Loss Contingencies [Line Items] | ||
Gross liabilities | 26.2 | 27.1 |
Other long-term liabilities | ||
Loss Contingencies [Line Items] | ||
Gross liabilities | 76.7 | 78.1 |
Prepaid expenses and other current assets | ||
Loss Contingencies [Line Items] | ||
Projected insurance recoveries | 17.4 | 21.2 |
Other assets | ||
Loss Contingencies [Line Items] | ||
Projected insurance recoveries | $ 47.4 | $ 47.4 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Sep. 29, 2023 |
Dec. 31, 2022 |
|
Fair Value Disclosures [Abstract] | |||
Gain (loss) on sale of other investments | $ (0.9) | ||
Goodwill | $ 1,721.9 | $ 1,738.7 | |
Other intangible assets, net | $ 584.8 | $ 649.7 |
Capital Stock and Earnings Per Share - Schedule pf Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 29, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jul. 01, 2022 |
Apr. 01, 2022 |
Sep. 29, 2023 |
Sep. 30, 2022 |
|
Numerator: | ||||||||
Net earnings | $ 90.6 | $ 97.3 | $ 82.8 | $ 50.1 | $ 33.3 | $ 250.2 | $ 270.7 | $ 333.6 |
Denominator: | ||||||||
Basic weighted average common shares outstanding (in shares) | 154.8 | 158.2 | 155.3 | 161.5 | ||||
Effect of dilutive stock options and RSUs (in shares) | 1.0 | 0.5 | 0.8 | 0.7 | ||||
Diluted weighted average common shares outstanding (in shares) | 155.8 | 158.7 | 156.1 | 162.2 | ||||
Earnings per share: | ||||||||
Basic (in dollars per share) | $ 0.59 | $ 0.32 | $ 1.74 | $ 2.07 | ||||
Diluted (in dollars per share) | $ 0.58 | $ 0.32 | $ 1.73 | $ 2.06 | ||||
Anti-dilutive shares (in shares) | 1.7 | 3.4 | 2.3 | 3.3 |
Capital Stock and Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 29, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jul. 01, 2022 |
Apr. 01, 2022 |
Sep. 29, 2023 |
May 24, 2022 |
|
Equity, Class of Treasury Stock [Line Items] | ||||||||
Authorized repurchase amount | $ 500.0 | |||||||
Stock repurchased | $ 11.7 | $ 32.1 | $ 18.4 | $ 10.0 | $ 21.0 | $ 257.0 | ||
Remaining authorized repurchase amount | $ 367.3 | $ 367.3 | ||||||
Open Market Transactions | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock repurchased (in shares) | 0.4 | 2.4 | ||||||
Stock repurchased | $ 11.6 | $ 61.6 | ||||||
Stock repurchased (in dollars per share) | $ 30.00 | $ 26.00 |
Divestitures and Assets and Liabilities Held for Sale - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 29, 2023 |
Sep. 30, 2022 |
Sep. 29, 2023 |
Sep. 30, 2022 |
Apr. 14, 2023 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale of business | $ 0.3 | $ 0.0 | $ 34.4 | $ 0.0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Global Traffic Technologies | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration | $ 108.4 |
Divestitures and Assets and Liabilities Held for Sale - Schedule of Key Components of Discontinued Operations (Details) - USD ($) $ in Millions |
Sep. 29, 2023 |
Dec. 31, 2022 |
---|---|---|
LIABILITIES | ||
Current operating lease liabilities | $ 12.4 | $ 13.8 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Coats (Hennessy) | ||
ASSETS | ||
Accounts receivable, less allowance for credit losses | 18.1 | |
Inventories | 12.8 | |
Prepaid expenses and other current assets | 0.7 | |
Property, plant and equipment, net | 4.5 | |
Operating lease right-of-use assets | 0.2 | |
Goodwill | 15.7 | |
Total assets held for sale | 52.0 | |
LIABILITIES | ||
Trade accounts payable | 14.3 | |
Current operating lease liabilities | 0.2 | |
Accrued expenses and other current liabilities | 8.2 | |
Other long-term liabilities | 6.6 | |
Total liabilities held for sale | $ 29.3 |
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