| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware
(State or other jurisdiction of incorporation or organization)
|
|
51-0263969
(I.R.S. Employer Identification No.)
|
|
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6901 Professional Pkwy. East, Suite 200
Sarasota, Florida
(Address of principal executive offices)
|
|
34240
(Zip Code)
|
Large accelerated filer
|
Accelerated filer
|
|
|
Non-accelerated filer
(do not check if smaller reporting company)
|
Smaller reporting company
|
|
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Page
|
PART I.
|
FINANCIAL INFORMATION
|
|
|
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Item 1.
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Financial Statements (unaudited):
|
|
|
|
|
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Condensed Consolidated Statements of Earnings
|
3 |
|
|
|
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Condensed Consolidated Statements of Comprehensive Income
|
4 |
|
|
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Condensed Consolidated Balance Sheets
|
5 |
|
|
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Condensed Consolidated Statements of Cash Flows
|
6 |
|
|
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Condensed Consolidated Statement of Changes in Stockholders' Equity
|
7 |
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Notes to Condensed Consolidated Financial Statements
|
8 |
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Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
12 |
|
|
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
|
18 |
|
|
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Item 4.
|
Controls and Procedures
|
18 |
|
|
|
PART II.
|
OTHER INFORMATION
|
|
|
|
|
Item 1.
|
Legal Proceedings
|
18 |
|
|
|
Item 1A.
|
Risk Factors
|
18 |
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|
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Item 6.
|
Exhibits
|
19 |
|
|
|
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Signatures
|
20 |
ITEM 1. | FINANCIAL STATEMENTS |
|
Three months ended
|
Nine months ended
|
||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Net sales
|
$
|
884,122
|
$
|
827,810
|
$
|
2,603,349
|
$
|
2,348,955
|
||||||||
Cost of sales
|
360,082
|
345,185
|
1,067,191
|
999,247
|
||||||||||||
Gross profit
|
524,040
|
482,625
|
1,536,158
|
1,349,708
|
||||||||||||
|
||||||||||||||||
Selling, general and administrative expenses
|
278,382
|
263,276
|
820,434
|
765,436
|
||||||||||||
Income from operations
|
245,658
|
219,349
|
715,724
|
584,272
|
||||||||||||
|
||||||||||||||||
Interest expense, net
|
20,013
|
24,705
|
59,352
|
67,924
|
||||||||||||
Other income, net
|
552
|
409
|
1,042
|
453
|
||||||||||||
|
||||||||||||||||
Earnings before income taxes
|
226,197
|
195,053
|
657,414
|
516,801
|
||||||||||||
|
||||||||||||||||
Income taxes
|
70,687
|
58,730
|
197,317
|
144,211
|
||||||||||||
|
||||||||||||||||
Net earnings
|
$
|
155,510
|
$
|
136,323
|
$
|
460,097
|
$
|
372,590
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
Net earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.55
|
$
|
1.37
|
$
|
4.61
|
$
|
3.76
|
||||||||
Diluted
|
1.54
|
1.36
|
4.56
|
3.72
|
||||||||||||
|
||||||||||||||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic
|
100,068
|
99,207
|
99,837
|
99,058
|
||||||||||||
Diluted
|
101,006
|
100,302
|
100,803
|
100,152
|
||||||||||||
|
||||||||||||||||
Dividends declared per common share
|
$
|
0.200
|
$
|
0.165
|
$
|
0.600
|
$
|
0.495
|
Three months ended
|
Nine months ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Net earnings
|
$
|
155,510
|
$
|
136,323
|
$
|
460,097
|
$
|
372,590
|
||||||||
|
||||||||||||||||
Other comprehensive income/(loss), net of tax:
|
||||||||||||||||
Foreign currency translation adjustments
|
(60,755
|
)
|
31,902
|
(53,763
|
)
|
(10,219
|
)
|
|||||||||
|
||||||||||||||||
Total other comprehensive income/(loss), net of tax
|
(60,755
|
)
|
31,902
|
(53,763
|
)
|
(10,219
|
)
|
|||||||||
|
||||||||||||||||
Comprehensive income
|
$
|
94,755
|
$
|
168,225
|
$
|
406,334
|
$
|
362,371
|
|
September 30,
|
December 31,
|
||||||
2014
|
2013
|
|||||||
ASSETS:
|
||||||||
|
||||||||
Cash and cash equivalents
|
$
|
564,112
|
$
|
459,720
|
||||
Accounts receivable, net
|
528,734
|
519,075
|
||||||
Inventories, net
|
213,440
|
204,923
|
||||||
Deferred taxes
|
65,230
|
64,464
|
||||||
Unbilled receivables
|
103,124
|
86,945
|
||||||
Other current assets
|
58,051
|
38,210
|
||||||
Total current assets
|
1,532,691
|
1,373,337
|
||||||
|
||||||||
Property, plant and equipment, net
|
115,243
|
117,310
|
||||||
Goodwill
|
4,731,394
|
4,549,998
|
||||||
Other intangible assets, net
|
2,020,798
|
2,039,136
|
||||||
Deferred taxes
|
29,051
|
28,773
|
||||||
Other assets
|
81,089
|
76,427
|
||||||
|
||||||||
Total assets
|
$
|
8,510,266
|
$
|
8,184,981
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
||||||||
|
||||||||
Accounts payable
|
$
|
145,660
|
$
|
150,313
|
||||
Accrued compensation
|
115,167
|
107,953
|
||||||
Deferred revenue
|
221,552
|
209,332
|
||||||
Other accrued liabilities
|
161,057
|
153,712
|
||||||
Income taxes payable
|
-
|
4,275
|
||||||
Deferred taxes
|
7,495
|
6,490
|
||||||
Current portion of long-term debt, net
|
11,074
|
11,016
|
||||||
Total current liabilities
|
662,005
|
643,091
|
||||||
|
||||||||
Long-term debt, net of current portion
|
2,358,474
|
2,453,836
|
||||||
Deferred taxes
|
753,798
|
783,805
|
||||||
Other liabilities
|
87,765
|
91,199
|
||||||
Total liabilities
|
3,862,042
|
3,971,931
|
||||||
|
||||||||
Commitments and contingencies (Note 10)
|
||||||||
|
||||||||
Common stock
|
1,021
|
1,013
|
||||||
Additional paid-in capital
|
1,317,906
|
1,229,233
|
||||||
Retained earnings
|
3,359,297
|
2,959,196
|
||||||
Accumulated other comprehensive earnings
|
(10,680
|
)
|
43,083
|
|||||
Treasury stock
|
(19,320
|
)
|
(19,475
|
)
|
||||
Total stockholders' equity
|
4,648,224
|
4,213,050
|
||||||
|
||||||||
Total liabilities and stockholders' equity
|
$
|
8,510,266
|
$
|
8,184,981
|
|
Nine months ended
September 30,
|
|||||||
|
2014
|
2013
|
||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
460,097
|
$
|
372,590
|
||||
Adjustments to reconcile net earnings to cash flows from operating activities:
|
||||||||
Depreciation and amortization of property, plant and equipment
|
30,442
|
28,269
|
||||||
Amortization of intangible assets
|
117,179
|
111,210
|
||||||
Amortization of deferred financing costs
|
3,003
|
2,916
|
||||||
Non-cash stock compensation
|
47,011
|
40,040
|
||||||
Changes in operating assets and liabilities, net of acquired businesses:
|
||||||||
Accounts receivable
|
(5,225
|
)
|
43,101
|
|||||
Unbilled receivables
|
(16,615
|
)
|
(13,257
|
)
|
||||
Inventories
|
(8,833
|
)
|
(15,202
|
)
|
||||
Accounts payable and accrued liabilities
|
10,342
|
13,055
|
||||||
Income taxes payable
|
(54,178
|
)
|
(12,643
|
)
|
||||
Other, net
|
(3,991
|
)
|
(3,306
|
)
|
||||
Cash provided by operating activities
|
579,232
|
566,773
|
||||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Acquisitions of businesses, net of cash acquired
|
(305,254
|
)
|
(1,014,952
|
)
|
||||
Capital expenditures
|
(29,835
|
)
|
(33,349
|
)
|
||||
Proceeds from sale of assets
|
1,262
|
1,740
|
||||||
Other, net
|
(6,566
|
)
|
(144
|
)
|
||||
Cash used in investing activities
|
(340,393
|
)
|
(1,046,705
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Borrowings/(payments) under revolving line of credit, net
|
(95,000
|
)
|
290,000
|
|||||
Proceeds from senior notes
|
-
|
800,000
|
||||||
Principal payments on senior notes
|
-
|
(500,000
|
)
|
|||||
Principal payments on convertible notes
|
(561
|
)
|
(2,115
|
)
|
||||
Cash premiums paid on convertible note conversions
|
(1,518
|
)
|
(5,100
|
)
|
||||
Debt issuance costs
|
-
|
(7,717
|
)
|
|||||
Cash dividends to stockholders
|
(59,827
|
)
|
(32,706
|
)
|
||||
Proceeds from stock based compensation, net
|
26,424
|
16,839
|
||||||
Stock award tax excess windfall benefit
|
14,892
|
7,763
|
||||||
Treasury stock sales
|
2,080
|
1,833
|
||||||
Other
|
38
|
723
|
||||||
Cash provided by/(used in) financing activities
|
(113,472
|
)
|
569,520
|
|||||
|
||||||||
Effect of foreign currency exchange rate changes on cash
|
(20,975
|
)
|
(198
|
)
|
||||
|
||||||||
Net increase in cash and cash equivalents
|
104,392
|
89,390
|
||||||
|
||||||||
Cash and cash equivalents, beginning of period
|
459,720
|
370,590
|
||||||
|
||||||||
Cash and cash equivalents, end of period
|
$
|
564,112
|
$
|
459,980
|
|
Common
stock
|
Additional
paid-in
capital
|
Retained
earnings
|
Accumulated
other comprehensive earnings |
Treasury
stock
|
Total
|
||||||||||||||||||
Balances at December 31, 2013
|
$
|
1,013
|
$
|
1,229,233
|
$
|
2,959,196
|
$
|
43,083
|
$
|
(19,475
|
)
|
$
|
4,213,050
|
|||||||||||
|
||||||||||||||||||||||||
Net earnings
|
-
|
-
|
460,097
|
-
|
-
|
460,097
|
||||||||||||||||||
Stock option exercises
|
6
|
29,488
|
-
|
-
|
-
|
29,494
|
||||||||||||||||||
Treasury stock sold
|
-
|
1,924
|
-
|
-
|
155
|
2,079
|
||||||||||||||||||
Currency translation adjustments, net of $1,652 tax
|
-
|
-
|
-
|
(53,763
|
)
|
-
|
(53,763
|
)
|
||||||||||||||||
Stock based compensation
|
-
|
47,009
|
-
|
-
|
-
|
47,009
|
||||||||||||||||||
Restricted stock activity
|
2
|
(3,072
|
)
|
-
|
-
|
-
|
(3,070
|
)
|
||||||||||||||||
Stock option tax benefit, net of shortfalls
|
-
|
14,727
|
-
|
-
|
-
|
14,727
|
||||||||||||||||||
Conversion of senior subordinated convertible notes, net of $115 tax
|
-
|
(1,403
|
)
|
-
|
-
|
-
|
(1,403
|
)
|
||||||||||||||||
Dividends declared
|
-
|
-
|
(59,996
|
)
|
-
|
-
|
(59,996
|
)
|
||||||||||||||||
Balances at September 30, 2014
|
$
|
1,021
|
$
|
1,317,906
|
$
|
3,359,297
|
$
|
(10,680
|
)
|
$
|
(19,320
|
)
|
$
|
4,648,224
|
1. | Basis of Presentation |
2. | Recent Accounting Pronouncements |
3. | Earnings Per Share |
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Basic shares outstanding
|
100,068
|
99,207
|
99,837
|
$
|
99,058
|
|||||||||||
Effect of potential common stock:
|
||||||||||||||||
Common stock awards
|
788
|
905
|
815
|
894
|
||||||||||||
Senior subordinated convertible notes
|
150
|
190
|
151
|
200
|
||||||||||||
Diluted shares outstanding
|
101,006
|
100,302
|
100,803
|
100,152
|
5. | Stock Based Compensation |
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Stock based compensation
|
$
|
16,998
|
$
|
13,756
|
$
|
47,011
|
$
|
40,040
|
||||||||
Tax effect recognized in net income
|
5,949
|
4,814
|
16,454
|
14,014
|
||||||||||||
Windfall tax benefit/(shortfall), net
|
3,126
|
2,075
|
14,727
|
7,632
|
|
Nine Months Ended September 30,
|
||||
|
2014
|
|
2013
|
||
Risk-free interest rate (%)
|
1.63
|
|
0.80
|
||
Expected option life (years)
|
5.23
|
|
|
5.19
|
|
Expected volatility (%)
|
27.27
|
|
|
36.20
|
|
Expected dividend yield (%)
|
0.59
|
|
|
0.57
|
6. | Inventories |
|
September 30,
2014
|
December 31,
2013
|
||||||
Raw materials and supplies
|
$
|
133,473
|
$
|
127,525
|
||||
Work in process
|
33,915
|
30,498
|
||||||
Finished products
|
91,054
|
90,352
|
||||||
Inventory reserves
|
(45,002
|
)
|
(43,452
|
)
|
||||
|
$
|
213,440
|
$
|
204,923
|
7. | Goodwill and Other Intangible Assets |
|
Industrial
Technology |
Energy Systems
& Controls |
Medical &
Scientific Imaging |
RF Technology
|
Total
|
|||||||||||||||
Balances at December 31, 2013
|
$
|
425,501
|
$
|
434,697
|
$
|
2,435,506
|
$
|
1,254,294
|
$
|
4,549,998
|
||||||||||
Goodwill Acquired
|
-
|
-
|
173,707
|
33,470
|
207,177
|
|||||||||||||||
Other
|
-
|
275
|
(2,549
|
)
|
-
|
(2,274
|
)
|
|||||||||||||
Currency translation adjustments
|
(8,913
|
)
|
(3,550
|
)
|
(9,484
|
)
|
(1,560
|
)
|
(23,507
|
)
|
||||||||||
Balances at September 30, 2014
|
$
|
416,588
|
$
|
431,422
|
$
|
2,597,180
|
$
|
1,286,204
|
$
|
4,731,394
|
|
Cost
|
Accumulated
amortization
|
Net book
value
|
|||||||||
Assets subject to amortization:
|
||||||||||||
Customer related intangibles
|
$
|
1,936,336
|
$
|
(464,018
|
)
|
$
|
1,472,318
|
|||||
Unpatented technology
|
216,044
|
(120,091
|
)
|
95,953
|
||||||||
Software
|
160,618
|
(58,084
|
)
|
102,534
|
||||||||
Patents and other protective rights
|
31,394
|
(21,922
|
)
|
9,472
|
||||||||
Trade names
|
656
|
(16
|
)
|
640
|
||||||||
Assets not subject to amortization:
|
||||||||||||
Trade names
|
358,219
|
-
|
358,219
|
|||||||||
Balances at December 31, 2013
|
$
|
2,703,267
|
$
|
(664,131
|
)
|
$
|
2,039,136
|
|||||
Assets subject to amortization:
|
||||||||||||
Customer related intangibles
|
$
|
1,988,946
|
$
|
(522,581
|
)
|
$
|
1,466,365
|
|||||
Unpatented technology
|
212,812
|
(129,498
|
)
|
83,314
|
||||||||
Software
|
156,740
|
(59,716
|
)
|
97,024
|
||||||||
Patents and other protective rights
|
26,771
|
(17,866
|
)
|
8,905
|
||||||||
Backlog
|
1,100
|
(168
|
)
|
932
|
||||||||
Trade names
|
653
|
(60
|
)
|
593
|
||||||||
Assets not subject to amortization:
|
||||||||||||
Trade names
|
363,665
|
-
|
363,665
|
|||||||||
Balances at September 30, 2014
|
$
|
2,750,687
|
$
|
(729,889
|
)
|
$
|
2,020,798
|
8. | Debt |
9. | Fair Value of Financial Instruments |
$400 million senior notes due 2017
|
$
|
403
|
||
$800 million senior notes due 2018
|
797
|
|||
$500 million senior notes due 2019
|
582
|
|||
$500 million senior notes due 2022
|
487
|
10. | Contingencies |
Balance at December 31, 2013
|
$
|
14,336
|
||
Additions charged to costs and expenses
|
10,357
|
|||
Deductions
|
(13,561
|
)
|
||
Other
|
(1
|
)
|
||
Balance at September 30, 2014
|
$
|
11,131
|
11. | Business Segments |
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||||||||||||
|
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
||||||||||||||||||
Net sales:
|
||||||||||||||||||||||||
Industrial Technology
|
$
|
205,688
|
$
|
200,684
|
2.5
|
%
|
$
|
607,503
|
$
|
580,466
|
4.7
|
%
|
||||||||||||
Energy Systems & Controls
|
170,765
|
155,058
|
10.1
|
%
|
491,804
|
456,031
|
7.8
|
%
|
||||||||||||||||
Medical & Scientific Imaging
|
268,809
|
237,338
|
13.3
|
%
|
793,899
|
645,739
|
22.9
|
%
|
||||||||||||||||
RF Technology
|
238,860
|
234,730
|
1.8
|
%
|
710,143
|
666,719
|
6.5
|
%
|
||||||||||||||||
Total
|
$
|
884,122
|
$
|
827,810
|
6.8
|
%
|
$
|
2,603,349
|
$
|
2,348,955
|
10.8
|
%
|
||||||||||||
Gross profit:
|
||||||||||||||||||||||||
Industrial Technology
|
$
|
104,012
|
$
|
101,259
|
2.7
|
%
|
$
|
306,464
|
$
|
296,414
|
3.4
|
%
|
||||||||||||
Energy Systems & Controls
|
99,233
|
88,104
|
12.6
|
%
|
281,055
|
256,431
|
9.6
|
%
|
||||||||||||||||
Medical & Scientific Imaging
|
193,132
|
167,433
|
15.3
|
%
|
572,738
|
440,718
|
30.0
|
%
|
||||||||||||||||
RF Technology
|
127,663
|
125,829
|
1.5
|
%
|
375,901
|
356,145
|
5.5
|
%
|
||||||||||||||||
Total
|
$
|
524,040
|
$
|
482,625
|
8.6
|
%
|
$
|
1,536,158
|
$
|
1,349,708
|
13.8
|
%
|
||||||||||||
Operating profit*:
|
||||||||||||||||||||||||
Industrial Technology
|
$
|
62,046
|
$
|
60,753
|
2.1
|
%
|
$
|
178,540
|
$
|
164,278
|
8.7
|
%
|
||||||||||||
Energy Systems & Controls
|
49,033
|
41,076
|
19.4
|
%
|
130,844
|
118,432
|
10.5
|
%
|
||||||||||||||||
Medical & Scientific Imaging
|
91,227
|
71,968
|
26.8
|
%
|
275,379
|
179,433
|
53.5
|
%
|
||||||||||||||||
RF Technology
|
69,351
|
66,469
|
4.3
|
%
|
203,183
|
183,828
|
10.5
|
%
|
||||||||||||||||
Total
|
$
|
271,657
|
$
|
240,266
|
13.1
|
%
|
$
|
787,946
|
$
|
645,971
|
22.0
|
%
|
||||||||||||
Long-lived assets:
|
||||||||||||||||||||||||
Industrial Technology
|
$
|
47,147
|
$
|
49,055
|
(3.9
|
)%
|
||||||||||||||||||
Energy Systems & Controls
|
17,537
|
19,501
|
(10.1
|
)%
|
||||||||||||||||||||
Medical & Scientific Imaging
|
44,513
|
43,105
|
3.3
|
%
|
||||||||||||||||||||
RF Technology
|
29,211
|
28,360
|
3.0
|
%
|
||||||||||||||||||||
Total
|
$
|
138,408
|
$
|
140,021
|
(1.2
|
)%
|
● | general economic conditions; |
● | difficulty making acquisitions and successfully integrating acquired businesses; |
● | any unforeseen liabilities associated with future acquisitions; |
● | limitations on our business imposed by our indebtedness; |
● | unfavorable changes in foreign exchange rates; |
● | difficulties associated with exports; |
● | risks and costs associated with our international sales and operations; |
● | increased directors' and officers' liability and other insurance costs; |
● | risk of rising interest rates; |
● | product liability and insurance risks; |
● | increased warranty exposure; |
● | future competition; |
● | the cyclical nature of some of our markets; |
● | reduction of business with large customers; |
● | risks associated with government contracts; |
● | changes in the supply of, or price for, raw materials, parts and components; |
● | environmental compliance costs and liabilities; |
● | risks and costs associated with asbestos-related litigation; |
● | potential write-offs of our substantial goodwill and other intangible assets; |
● | our ability to successfully develop new products; |
● | failure to protect our intellectual property; |
● | the effect of, or change in, government regulations (including tax); |
● | economic disruption caused by terrorist attacks, health crises or other unforeseen events; and |
● | the factors discussed in other reports filed with the SEC. |
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Net sales:
|
||||||||||||||||
Industrial Technology
|
$
|
205,688
|
$
|
200,684
|
$
|
607,503
|
$
|
580,466
|
||||||||
Energy Systems & Controls
|
170,765
|
155,058
|
491,804
|
456,031
|
||||||||||||
Medical & Scientific Imaging
|
268,809
|
237,338
|
793,899
|
645,739
|
||||||||||||
RF Technology
|
238,860
|
234,730
|
710,143
|
666,719
|
||||||||||||
Total
|
$
|
884,122
|
$
|
827,810
|
$
|
2,603,349
|
$
|
2,348,955
|
||||||||
Gross margin:
|
||||||||||||||||
Industrial Technology
|
50.6
|
%
|
50.5
|
%
|
50.4
|
%
|
51.1
|
%
|
||||||||
Energy Systems & Controls
|
58.1
|
56.8
|
57.1
|
56.2
|
||||||||||||
Medical & Scientific Imaging
|
71.8
|
70.5
|
72.1
|
68.3
|
||||||||||||
RF Technology
|
53.4
|
53.6
|
52.9
|
53.4
|
||||||||||||
Total
|
59.3
|
58.3
|
59.0
|
57.5
|
||||||||||||
Selling, general & administrative expenses:
|
||||||||||||||||
Industrial Technology
|
20.4
|
%
|
20.2
|
%
|
21.1
|
%
|
22.8
|
%
|
||||||||
Energy Systems & Controls
|
29.4
|
30.3
|
30.5
|
30.3
|
||||||||||||
Medical & Scientific Imaging
|
37.9
|
40.2
|
37.5
|
40.5
|
||||||||||||
RF Technology
|
24.4
|
25.3
|
24.3
|
25.8
|
||||||||||||
Total
|
28.5
|
29.3
|
28.7
|
30.0
|
||||||||||||
Segment operating margin:
|
||||||||||||||||
Industrial Technology
|
30.2
|
%
|
30.3
|
%
|
29.4
|
%
|
28.3
|
%
|
||||||||
Energy Systems & Controls
|
28.7
|
26.5
|
26.6
|
26.0
|
||||||||||||
Medical & Scientific Imaging
|
33.9
|
30.3
|
34.7
|
27.8
|
||||||||||||
RF Technology
|
29.0
|
28.3
|
28.6
|
27.6
|
||||||||||||
Total
|
30.7
|
29.0
|
30.3
|
27.5
|
||||||||||||
Corporate administrative expenses
|
(2.9
|
)
|
(2.5
|
)
|
(2.8
|
)
|
(2.6
|
)
|
||||||||
|
27.8
|
26.5
|
27.5
|
24.9
|
||||||||||||
Interest expense
|
(2.3
|
)
|
(3.0
|
)
|
(2.3
|
)
|
(2.9
|
)
|
||||||||
Other income
|
0.1
|
-
|
-
|
-
|
||||||||||||
Earnings before income taxes
|
25.6
|
23.6
|
25.3
|
22.0
|
||||||||||||
Income taxes
|
(8.0
|
)
|
(7.1
|
)
|
(7.6
|
)
|
(6.1
|
)
|
||||||||
Net earnings
|
17.6
|
%
|
16.5
|
%
|
17.7
|
%
|
15.9
|
%
|
|
Net orders booked for the
three months ended
September 30,
|
Order backlog as of
September 30, |
||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Industrial Technology
|
$
|
205,945
|
$
|
197,549
|
$
|
121,768
|
$
|
131,768
|
||||||||
Energy Systems & Controls
|
173,172
|
148,922
|
127,803
|
120,415
|
||||||||||||
Medical & Scientific Imaging
|
270,881
|
262,320
|
303,295
|
276,926
|
||||||||||||
RF Technology
|
243,363
|
229,484
|
519,824
|
515,683
|
||||||||||||
Total
|
$
|
893,361
|
$
|
838,275
|
$
|
1,072,690
|
$
|
1,044,792
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||||
Cash provided by/(used in):
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Operating activities
|
$
|
226.1
|
255.8
|
$
|
579.2
|
566.8
|
||||||||||
Investing activities
|
(317.6
|
)
|
(18.6
|
)
|
(340.4
|
)
|
(1,046.7
|
)
|
||||||||
Financing activities
|
112.9
|
(161.4
|
)
|
(113.5
|
)
|
569.5
|
$400 million senior notes due 2017
|
$
|
400,000
|
||
$800 million senior notes due 2018
|
800,000
|
|||
$500 million senior notes due 2019
|
500,000
|
|||
$500 million senior notes due 2022
|
500,000
|
|||
Senior Subordinated Convertible Notes
|
7,928
|
|||
Revolving Facility
|
155,000
|
|||
Other
|
6,620
|
|||
Total debt
|
2,369,548
|
|||
Less current portion
|
11,074
|
|||
Long-term debt
|
$
|
2,358,474
|
|
September 30, 2014
|
December 31, 2013
|
||||||
Total Debt
|
$
|
2,369,548
|
$
|
2,464,852
|
||||
Cash
|
(564,112
|
)
|
(459,720
|
)
|
||||
Net Debt
|
1,805,436
|
2,005,132
|
||||||
Stockholders' Equity
|
4,648,224
|
4,213,050
|
||||||
Total Net Capital
|
$
|
6,453,660
|
$
|
6,218,182
|
||||
|
||||||||
Net Debt / Total Net Capital
|
28.0
|
%
|
32.2
|
%
|
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
Part II. | OTHER INFORMATION |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 6. | Exhibits |
31.1
|
|
Rule 13a-14(a)/15d-14(a), Certification of the Chief Executive Officer, filed herewith.
|
|
|
|
31.2
|
|
Rule 13a-14(a)/15d-14(a), Certification of the Chief Financial Officer, filed herewith.
|
|
|
|
32.1
|
|
Section 1350 Certification of the Chief Executive and Chief Financial Officers, filed herewith.
|
|
|
|
101.INS
|
|
XBRL Instance Document, furnished herewith.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document, furnished herewith.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document, furnished herewith.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document, furnished herewith.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document, furnished herewith.
|
|
||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document, furnished herewith.
|
/s/ Brian D. Jellison
|
|
Chairman of the Board, President,
|
October 31, 2014
|
Brian D. Jellison
|
|
and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
/s/ John Humphrey
|
|
Chief Financial Officer and
|
October 31, 2014
|
John Humphrey
|
|
Executive Vice President
|
|
|
|
(Principal Financial Officer)
|
|
/s/ Paul J. Soni
|
|
Vice President and Controller
|
October 31, 2014
|
Paul J. Soni
|
|
(Principal Accounting Officer)
|
|
Number
|
|
Exhibit
|
|
|
|
31.1
|
|
Rule 13a-14(a)/15d-14(a), Certification of the Chief Executive Officer, filed herewith.
|
|
|
|
31.2
|
|
Rule 13a-14(a)/15d-14(a), Certification of the Chief Financial Officer, filed herewith.
|
|
|
|
32.1
|
|
Section 1350 Certification of the Chief Executive and Chief Financial Officers, filed herewith.
|
|
|
|
101.INS
|
|
XBRL Instance Document, furnished herewith.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document, furnished herewith.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document, furnished herewith.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document, furnished herewith.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document, furnished herewith.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document, furnished herewith.
|
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 5, 2014
|
/s/ Brian D. Jellison
|
|
Brian D. Jellison
|
|
Chairman, President and
|
|
Chief Executive Officer
|
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 5, 2014
|
/s/ John Humphrey
|
|
John Humphrey
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
1. | The Report fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 5, 2014
|
/s/ Brian D. Jellison
|
|
|
Brian D. Jellison
|
|
|
Chairman, President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ John Humphrey
|
|
|
John Humphrey
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|