☑
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
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51-0263969
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(State or other jurisdiction of incorporation or organization)
|
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(I.R.S. Employer Identification No.)
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Title of Each Class
|
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Name of Each Exchange On Which Registered
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Common Stock, $0.01 Par Value
|
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New York Stock Exchange
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PART I
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Page
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Item 1.
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Business
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4 |
Item 1A.
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Risk Factors
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8 |
Item 1B.
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Unresolved Staff Comments
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13 |
Item 2.
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Properties
|
14 |
Item 3.
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Legal Proceedings
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15 |
Item 4.
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Mine Safety Disclosures
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15 |
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PART II
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Item 5.
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Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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15 |
Item 6.
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Selected Financial Data
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17 |
Item 7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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18 |
Item 7A.
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Quantitative and Qualitative Disclosures about Market Risk
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29 |
Item 8.
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Financial Statements and Supplementary Data
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30 |
Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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61 |
Item 9A.
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Controls and Procedures
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61 |
Item 9B.
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Other Information
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62 |
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PART III
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Item 10.
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Directors, Executive Officers and Corporate Governance
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62 |
Item 11.
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Executive Compensation
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62 |
Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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63 |
Item 13.
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Certain Relationships and Related Transactions and Director Independence
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63 |
Item 14.
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Principal Accountant Fees and Services
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63 |
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PART IV
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Item 15.
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Exhibits and Financial Statement Schedules
|
64 |
Item 16. | Form 10-K Summary | 66 |
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Signatures
|
67 |
● |
general economic conditions;
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● |
difficulty making acquisitions and successfully integrating acquired businesses;
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● |
any unforeseen liabilities associated with future acquisitions;
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● |
limitations on our business imposed by our indebtedness;
|
● |
unfavorable changes in foreign exchange rates;
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● |
difficulties associated with exports;
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● |
risks and costs associated with our international sales and operations;
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● |
rising interest rates;
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● |
product liability and insurance risks;
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● |
increased warranty exposure;
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● |
future competition;
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● |
the cyclical nature of some of our markets;
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● |
reduction of business with large customers;
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● |
risks associated with government contracts;
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● |
changes in the supply of, or price for, raw materials, parts and components;
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● |
environmental compliance costs and liabilities;
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● |
risks and costs associated with asbestos-related litigation;
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● |
potential write-offs of our substantial goodwill and other intangible assets;
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● |
our ability to successfully develop new products;
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● |
failure to protect our intellectual property;
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● |
the effect of, or change in, government regulations (including tax);
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● |
economic disruption caused by terrorist attacks, including cybersecurity threats, health crises or other unforeseen events; and
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● |
the factors discussed in Item 1A to this Annual Report under the heading "Risk Factors."
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ITEM 1. |
BUSINESS
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ITEM 1A. |
RISK FACTORS
|
● |
place us at a competitive disadvantage relative to our competitors, some of which have lower debt service obligations and greater financial resources;
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● |
limit our ability to borrow additional funds;
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● |
limit our ability to complete future acquisitions;
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● |
limit our ability to pay dividends;
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● |
limit our ability to make capital expenditures; and
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● |
increase our vulnerability to general adverse economic and industry conditions.
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● |
unfavorable changes in or noncompliance with U.S. and other jurisdictions' export requirements;
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● |
restrictions on the export of technology and related products;
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● |
unfavorable changes in or noncompliance with U.S. and other jurisdictions' export policies to certain countries;
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● |
unfavorable changes in the import policies of our foreign markets; and
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● |
a general economic downturn in our foreign markets.
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● |
adverse changes in a specific country's or region's political or economic conditions, particularly in emerging markets;
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● |
oil price shocks;
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● |
trade protection measures and import or export requirements;
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● |
subsidies or increased access to capital for firms that are currently, or may emerge as, competitors in countries in which we have operations;
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● |
partial or total expropriation;
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● |
potentially negative consequences from changes in tax laws;
|
● |
difficulty in staffing and managing widespread operations;
|
● |
differing labor regulations;
|
● |
differing protection of intellectual property; and
|
● |
unexpected changes in regulatory requirements.
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ITEM 1B. |
UNRESOLVED STAFF COMMENTS
|
ITEM 2. |
PROPERTIES
|
|
|
Office
|
Office & Manufacturing
|
|
Segment
|
Region
|
Leased
|
Leased
|
Owned
|
Medical & Scientific Imaging
|
|
|
|
|
|
U.S.
|
309
|
298
|
127
|
|
Canada
|
-
|
109
|
-
|
|
Europe
|
32
|
64
|
-
|
|
Asia-Pacific
|
21
|
-
|
-
|
|
Mexico
|
-
|
44
|
-
|
|
|
|
|
|
RF Technology
|
|
|
|
|
|
U.S.
|
1,164
|
92
|
16
|
|
Canada
|
27
|
-
|
-
|
|
Europe
|
56
|
-
|
16
|
|
Asia-Pacific
|
111
|
-
|
-
|
|
|
|
|
|
Industrial Technology
|
|
|
|
|
|
U.S.
|
18
|
260
|
478
|
|
Canada
|
36
|
-
|
-
|
|
Europe
|
13
|
136
|
43
|
|
Asia-Pacific
|
23
|
-
|
-
|
|
Mexico
|
-
|
60
|
-
|
|
|
|
|
|
Energy Systems & Controls
|
|
|
|
|
|
U.S.
|
-
|
343
|
-
|
|
Canada
|
-
|
56
|
-
|
|
Europe
|
29
|
28
|
128
|
|
Asia-Pacific
|
6
|
30
|
33
|
ITEM 3. |
LEGAL PROCEEDINGS
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM 5. |
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
|
High
|
Low
|
Cash Dividends
Declared
|
|||||||||
2016
|
4
th
Quarter
|
$
|
188.04
|
$
|
167.91
|
$
|
0.35
|
||||||
|
3
rd
Quarter
|
182.84
|
163.33
|
0.30
|
|||||||||
|
2
nd
Quarter
|
184.66
|
164.77
|
0.30
|
|||||||||
|
1
st
Quarter
|
187.56
|
158.89
|
0.30
|
|||||||||
|
|||||||||||||
2015
|
4
th
Quarter
|
$
|
194.83
|
$
|
157.75
|
$
|
0.30
|
||||||
|
3
rd
Quarter
|
177.08
|
152.93
|
0.25
|
|||||||||
|
2
nd
Quarter
|
177.79
|
167.08
|
0.25
|
|||||||||
|
1
st
Quarter
|
174.02
|
145.75
|
0.25
|
12/31/11
|
12/31/12
|
12/31/13
|
12/31/14
|
12/31/15
|
12/31/16
|
||||||||||||||||||||
Roper Technologies, Inc.
|
100.00
|
129.26
|
161.43
|
183.03
|
223.53
|
217.09
|
|||||||||||||||||||
S&P 500 |
100.00
|
116.00
|
153.58
|
174.60
|
177.01
|
198.18
|
|||||||||||||||||||
S&P 500 Industrials
|
100.00
|
115.35
|
162.27
|
178.21
|
173.70
|
206.46
|
ITEM 6. |
SELECTED FINANCIAL DATA
|
|
As of and for the Years ended December 31,
|
|||||||||||||||||||
|
2016
(1)
|
2015
(2)
|
2014
(3)
|
2013
(4)
|
2012
(5)
|
|||||||||||||||
Operations data:
|
||||||||||||||||||||
Net sales
|
$
|
3,789,925
|
$
|
3,582,395
|
$
|
3,549,494
|
$
|
3,238,128
|
$
|
2,993,489
|
||||||||||
Gross profit
|
2,332,410
|
2,164,646
|
2,101,899
|
1,882,928
|
1,671,717
|
|||||||||||||||
Income from operations
|
1,054,563
|
1,027,918
|
999,473
|
842,361
|
757,587
|
|||||||||||||||
Net earnings
|
658,645
|
696,067
|
646,033
|
538,293
|
483,360
|
|||||||||||||||
|
||||||||||||||||||||
Per share data:
|
||||||||||||||||||||
Basic earnings per share
|
$
|
6.50
|
$
|
6.92
|
$
|
6.47
|
$
|
5.43
|
$
|
4.95
|
||||||||||
Diluted earnings per share
|
6.43
|
6.85
|
6.40
|
5.37
|
4.86
|
|||||||||||||||
|
||||||||||||||||||||
Dividends declared per share
|
$
|
1.2500
|
$
|
1.0500
|
$
|
0.8500
|
0.6950
|
$
|
0.5775
|
|||||||||||
|
||||||||||||||||||||
Balance sheet data:
|
||||||||||||||||||||
Working capital
(6)
|
$
|
331,229
|
$
|
897,919
|
$
|
884,158
|
$
|
730,246
|
$
|
159,887
|
||||||||||
Total assets
(7)
|
14,324,927
|
10,168,365
|
8,400,185
|
8,169,120
|
7,059,975
|
|||||||||||||||
Long-term debt, net of current portion
(7)
|
5,808,561
|
3,264,417
|
2,190,282
|
2,437,975
|
1,492,533
|
|||||||||||||||
Stockholders' equity
|
5,788,865
|
5,298,947
|
4,755,360
|
4,213,050
|
3,687,726
|
(1) |
Includes results from the acquisitions of CliniSys Group Ltd. from January 7, 2016, PCI Medical Inc. from March 17, 2016, GeneInsight Inc. from April 1, 2016, iSqFt Holdings Inc. (d/b/a ConstructConnect) from October 31, 2016, UNIConnect LC from November 10, 2016 and Deltek Inc. from December 28, 2016.
|
(2) |
Includes results from the acquisitions of Strata Decision Technologies LLC from January 21, 2015, SoftWriters Inc. from February 9, 2015, Data Innovations LLC from March 4, 2015, On Center Software LLC from July 20, 2015, RF IDeas Inc. from September 1, 2015, Atlantic Health Partners LLC from September 4, 2015, Aderant Holdings Inc. from October 21, 2015, Atlas Database Software Corp. from October 26, 2015, Black Diamond Advanced Technologies through March 20, 2015 and Abel Pumps through October 2, 2015.
|
(3) |
Includes results from the acquisitions of Foodlink Holdings Inc. from July 2, 2014, Innovative Product Achievements LLC from August 5, 2014, Strategic Healthcare Programs Holdings LLC from August 14, 2014.
|
(4) |
Includes results from the acquisitions of Managed Health Care Associates Inc. from May 1, 2013 and Advanced Sensors Ltd. from October 4, 2013.
|
(5) |
Includes results from the acquisition of Sunquest Information Systems Inc. from August 22, 2012.
|
(6) |
At December 31, 2016, there were $399 million of senior notes, net of debt issuance costs, due November 15, 2017 and at December 31, 2012, there were $499 million of senior notes, net of debt issuance costs (adjusted due to the retrospective adoption of an accounting standard update which requires that our senior notes be shown net of debt issuance costs), that matured on August 15, 2013, thus requiring a classification as short-term debt, included in working capital.
|
(7) |
Total assets and Long-term debt, net of current portion for 2012 through 2014 have been adjusted due to the retrospective adoption of an accounting standard update which requires that our senior notes be shown net of debt issuance costs. The adjustment amounts were $12,749, $15,861 and $10,574 for the years ended December 31, 2014, 2013 and 2012, respectively.
|
ITEM 7. |
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Years ended December 31,
|
|||||||||||
|
2016
|
2015
|
2014
|
|||||||||
Net sales:
|
||||||||||||
Medical & Scientific Imaging
(1)
|
$
|
1,362,813
|
$
|
1,215,318
|
$
|
1,080,309
|
||||||
RF Technology
(2)
|
1,210,264
|
1,033,951
|
950,227
|
|||||||||
Industrial Technology
(3)
|
706,625
|
745,381
|
827,145
|
|||||||||
Energy Systems & Controls
|
510,223
|
587,745
|
691,813
|
|||||||||
Total
|
$
|
3,789,925
|
$
|
3,582,395
|
$
|
3,549,494
|
||||||
|
||||||||||||
Gross margin:
|
||||||||||||
Medical & Scientific Imaging
|
73.2
|
%
|
74.0
|
%
|
72.1
|
%
|
||||||
RF Technology
|
56.7
|
53.4
|
52.8
|
|||||||||
Industrial Technology
|
50.6
|
49.8
|
50.5
|
|||||||||
Energy Systems & Controls
|
57.1
|
58.1
|
58.3
|
|||||||||
Total
|
61.5
|
%
|
60.4
|
%
|
59.2
|
%
|
||||||
|
||||||||||||
Segment operating margin:
|
||||||||||||
Medical & Scientific Imaging
|
35.0
|
%
|
36.4
|
%
|
34.8
|
%
|
||||||
RF Technology
|
30.8
|
30.2
|
28.5
|
|||||||||
Industrial Technology
|
28.7
|
28.8
|
29.9
|
|||||||||
Energy Systems & Controls
|
25.4
|
27.6
|
29.3
|
|||||||||
Total
|
31.2
|
%
|
31.6
|
%
|
30.9
|
%
|
||||||
|
||||||||||||
Corporate administrative expenses
|
(3.4
|
)%
|
(2.9
|
)%
|
(2.8
|
)%
|
||||||
Income from continuing operations
|
27.8
|
28.7
|
28.2
|
|||||||||
Interest expense, net
|
(2.9
|
)
|
(2.4
|
)
|
(2.2
|
)
|
||||||
Other income/(expense)
|
(0.1
|
)
|
1.6
|
-
|
||||||||
Income from continuing operations before taxes
|
24.8
|
28.0
|
26.0
|
|||||||||
Income taxes
|
(7.4
|
)
|
(8.5
|
)
|
(7.8
|
)
|
||||||
|
||||||||||||
Net earnings
|
17.4
|
%
|
19.4
|
%
|
18.2
|
%
|
(1) |
Includes results from the acquisitions of Innovative Product Achievements LLC from August 5, 2014, Strategic Healthcare Programs Holdings LLC from August 14, 2014, Strata Decision Technologies LLC from January 21, 2015, SoftWriters Inc. from February 9, 2015, Data Innovations LLC from March 4, 2015, Atlantic Health Partners LLC from September 4, 2015, Atlas Database Software Corp. from October 26, 2015, CliniSys from January 7, 2016, PCI Medical from March 17, 2016, GeneInsight from April 1, 2016 and UNIConnect from November 10, 2016.
|
(2) |
Includes results from the acquisitions of Foodlink Holdings Inc. from July 2, 2014, On Center Software LLC from July 20, 2015, RF Ideas Inc. from September 1, 2015, Aderant Holdings Inc. from October 21, 2015, Black Diamond Advanced Technologies through March 20, 2015, ConstructConnect from October 31, 2016 and Deltek from December 28, 2016.
|
(3) |
Includes results from Abel Pumps through October 2, 2015.
|
|
2016
|
2015
|
change
|
|||||||||
Medical & Scientific Imaging
|
$
|
1,399,007
|
$
|
1,235,143
|
13.3
|
%
|
||||||
RF Technology
|
1,278,246
|
1,024,999
|
24.7
|
|||||||||
Industrial Technology
|
704,622
|
731,810
|
(3.7
|
)
|
||||||||
Energy Systems & Controls
|
514,300
|
555,672
|
(7.4
|
)
|
||||||||
Total
|
$
|
3,896,175
|
$
|
3,547,624
|
9.8
|
%
|
|
2016
|
2015
|
change
|
|||||||||
Medical & Scientific Imaging
|
$
|
423,616
|
$
|
373,213
|
13.5
|
%
|
||||||
RF Technology
|
991,212
|
538,877
|
83.9
|
|||||||||
Industrial Technology
|
65,259
|
68,002
|
(4.0
|
)
|
||||||||
Energy Systems & Controls
|
92,309
|
90,365
|
2.2
|
|||||||||
Total
|
$
|
1,572,396
|
$
|
1,070,457
|
46.9
|
%
|
|
2015
|
2014
|
change
|
|||||||||
Medical & Scientific Imaging
|
$
|
1,235,143
|
$
|
1,081,190
|
14.2
|
%
|
||||||
RF Technology
|
1,024,999
|
955,831
|
7.2
|
|||||||||
Industrial Technology
|
731,810
|
808,921
|
(9.5
|
)
|
||||||||
Energy Systems & Controls
|
555,672
|
692,136
|
(19.7
|
)
|
||||||||
Total
|
$
|
3,547,624
|
$
|
3,538,078
|
0.3
|
%
|
|
2015
|
2014
|
change
|
|||||||||
Medical & Scientific Imaging
|
$
|
373,213
|
$
|
296,098
|
26.0
|
%
|
||||||
RF Technology
|
538,877
|
520,727
|
3.5
|
|||||||||
Industrial Technology
|
68,002
|
97,507
|
(30.3
|
)
|
||||||||
Energy Systems & Controls
|
90,365
|
126,838
|
(28.8
|
)
|
||||||||
Total
|
$
|
1,070,457
|
$
|
1,041,170
|
2.8
|
%
|
|
2016
|
2015
|
2014
|
|||||||||
Cash provided by/(used in):
|
||||||||||||
Operating activities
|
$
|
964
|
$
|
929
|
$
|
840
|
||||||
Investing activities
|
(3,753
|
)
|
(1,698
|
)
|
(348
|
)
|
||||||
Financing activities
|
2,805
|
996
|
(298
|
)
|
Payments Due in Fiscal Year
|
||||||||||||||||||||||||||||
Contractual
Cash Obligations
1
|
Total
|
2017
|
2018
|
2019
|
2020
|
2021
|
Thereafter
|
|||||||||||||||||||||
Long-term debt
|
$
|
6,230,003
|
$
|
400,003
|
$
|
800,000
|
$
|
500,000
|
$
|
600,000
|
$
|
500,000
|
$
|
3,430,000
|
||||||||||||||
Senior note interest
|
719,557
|
139,900
|
129,325
|
106,608
|
85,025
|
67,269
|
191,430
|
|||||||||||||||||||||
Capital leases
|
2,986
|
1,592
|
840
|
407
|
147
|
-
|
-
|
|||||||||||||||||||||
Operating leases
|
248,530
|
60,536
|
46,080
|
35,341
|
29,726
|
25,177
|
51,670
|
|||||||||||||||||||||
Total
|
$
|
7,201,076
|
$
|
602,031
|
$
|
976,245
|
$
|
642,356
|
$
|
714,898
|
$
|
592,446
|
$
|
3,673,100
|
|
Amounts Expiring in Fiscal Year
|
|||||||||||||||||||||||||||
Other Commercial
Commitments
|
Total
Amount
Committed
|
2017
|
2018
|
2019
|
2020
|
2021
|
Thereafter
|
|||||||||||||||||||||
Standby letters of credit and bank guarantees
|
$
|
74,071
|
$
|
26,223
|
$
|
1,961
|
$
|
428
|
$
|
104
|
$
|
33,642
|
$
|
11,713
|
1 |
We have excluded $29 million related to the liability for uncertain tax positions from the tables as the current portion is not material, and we are not able to reasonably estimate the timing of the long-term portion of the liability. See Note 7 of the Notes to Consolidated Financial Statements included in this Annual Report.
|
ITEM 7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8. |
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
Page
|
Consolidated Financial Statements:
|
|
Report of Independent Registered Certified Public Accounting Firm (PricewaterhouseCoopers LLP)
|
31 |
Consolidated Balance Sheets as of December 31, 2016 and 2015
|
32 |
Consolidated Statements of Earnings for the Years ended December 31, 2016 , 2015 and 2014
|
33 |
Consolidated Statements of Comprehensive Income for the Years ended December 31, 2016 , 2015 and 2014
|
34 |
Consolidated Statements of Stockholders' Equity for the Years ended December 31, 2016 , 2015 and 2014
|
35 |
Consolidated Statements of Cash Flows for the Years ended December 31, 2016 , 2015 and 2014
|
36 |
Notes to Consolidated Financial Statements
|
38 |
|
|
Supplementary Data:
|
|
Schedule II - Consolidated Valuation and Qualifying Accounts for the Years ended December 31, 2016 , 2015 and 2014
|
61 |
|
2016
|
2015
|
||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
757,200
|
$
|
778,511
|
||||
Accounts receivable, net
|
619,854
|
488,271
|
||||||
Inventories, net
|
181,952
|
189,868
|
||||||
Income taxes receivable
|
31,679
|
-
|
||||||
Unbilled receivables
|
129,965
|
122,042
|
||||||
Other current assets
|
55,851
|
39,355
|
||||||
Total current assets
|
1,776,501
|
1,618,047
|
||||||
|
||||||||
Property, plant and equipment, net
|
141,318
|
105,510
|
||||||
Goodwill
|
8,647,142
|
5,824,726
|
||||||
Other intangible assets, net
|
3,655,843
|
2,528,996
|
||||||
Deferred taxes
|
30,620
|
31,532
|
||||||
Other assets
|
73,503
|
59,554
|
||||||
Total assets
|
$
|
14,324,927
|
$
|
10,168,365
|
||||
|
||||||||
Liabilities and Stockholders' Equity
|
||||||||
Accounts payable
|
$
|
152,067
|
$
|
139,737
|
||||
Accrued compensation
|
161,730
|
119,511
|
||||||
Deferred revenue
|
488,399
|
267,030
|
||||||
Other accrued liabilities
|
219,339
|
168,513
|
||||||
Income taxes payable
|
22,762
|
18,532
|
||||||
Current portion of long-term debt, net
|
400,975
|
6,805
|
||||||
Total current liabilities
|
1,445,272
|
720,128
|
||||||
|
||||||||
Long-term debt, net of current portion
|
5,808,561
|
3,264,417
|
||||||
Deferred taxes
|
1,178,205
|
810,856
|
||||||
Other liabilities
|
104,024
|
74,017
|
||||||
Total liabilities
|
8,536,062
|
4,869,418
|
||||||
|
||||||||
Commitments and contingencies (Note 12)
|
||||||||
|
||||||||
Stockholders' equity:
|
||||||||
Preferred stock, $0.01 par value per share; 1,000 shares authorized; none outstanding
|
-
|
-
|
||||||
Common stock, $0.01 par value per share; 350,000 shares authorized; 103,578 shares issued and 101,672 outstanding at December 31, 2016 and 102,795 shares issued and 100,870 outstanding at December 31, 2015
|
1,036
|
1,028
|
||||||
Additional paid-in capital
|
1,489,067
|
1,419,262
|
||||||
Retained earnings
|
4,642,402
|
4,110,530
|
||||||
Accumulated other comprehensive earnings
|
(324,739
|
)
|
(212,779
|
)
|
||||
Treasury stock, 1,906 shares at December 31, 2016 and 1,925 shares at December 31, 2015
|
(18,901
|
)
|
(19,094
|
)
|
||||
Total stockholders' equity
|
5,788,865
|
5,298,947
|
||||||
Total liabilities and stockholders' equity
|
$
|
14,324,927
|
$
|
10,168,365
|
|
Years ended December 31,
|
|||||||||||
|
2016
|
2015
|
2014
|
|||||||||
Net sales
|
$
|
3,789,925
|
$
|
3,582,395
|
$
|
3,549,494
|
||||||
Cost of sales
|
1,457,515
|
1,417,749
|
1,447,595
|
|||||||||
Gross profit
|
2,332,410
|
2,164,646
|
2,101,899
|
|||||||||
Selling, general and administrative expenses
|
1,277,847
|
1,136,728
|
1,102,426
|
|||||||||
Income from operations
|
1,054,563
|
1,027,918
|
999,473
|
|||||||||
Interest expense, net
|
111,559
|
84,225
|
78,637
|
|||||||||
Loss on extinguishment of debt
|
871
|
-
|
-
|
|||||||||
Other income/(expense), net
|
(1,481
|
)
|
58,652
|
620
|
||||||||
Earnings before income taxes
|
940,652
|
1,002,345
|
921,456
|
|||||||||
Income taxes
|
282,007
|
306,278
|
275,423
|
|||||||||
|
||||||||||||
Net earnings
|
$
|
658,645
|
$
|
696,067
|
$
|
646,033
|
||||||
|
||||||||||||
Earnings per share:
|
||||||||||||
Basic
|
$
|
6.50
|
$
|
6.92
|
$
|
6.47
|
||||||
Diluted
|
$
|
6.43
|
$
|
6.85
|
$
|
6.40
|
||||||
|
||||||||||||
Weighted-average common shares outstanding:
|
||||||||||||
Basic
|
101,291
|
100,616
|
99,916
|
|||||||||
Diluted
|
102,464
|
101,597
|
100,884
|
|
Years ended December 31,
|
|||||||||||
|
2016
|
2015
|
2014
|
|||||||||
Net earnings
|
$
|
658,645
|
$
|
696,067
|
$
|
646,033
|
||||||
|
||||||||||||
Other comprehensive income, net of tax:
|
||||||||||||
Foreign currency translation adjustments
|
(111,960
|
)
|
(139,789
|
)
|
(115,010
|
)
|
||||||
Unrecognized pension gain
|
-
|
(1,063
|
)
|
-
|
||||||||
|
||||||||||||
Total other comprehensive loss, net of tax
|
(111,960
|
)
|
(140,852
|
)
|
(115,010
|
)
|
||||||
|
||||||||||||
Comprehensive income
|
$
|
546,685
|
$
|
555,215
|
$
|
531,023
|
|
Common Stock
|
Accumulated
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
Additional
paid-in
capital |
Retained
earnings
|
other
comprehensive
earnings
|
Treasury
stock
|
Total
stockholders'
equity
|
|||||||||||||||||||||
Balances at December 31, 2013
|
99,312
|
$
|
1,013
|
$
|
1,229,233
|
$
|
2,959,196
|
$
|
43,083
|
$
|
(19,475
|
)
|
$
|
4,213,050
|
||||||||||||||
Net earnings
|
-
|
-
|
-
|
646,033
|
-
|
-
|
646,033
|
|||||||||||||||||||||
Stock option exercises
|
581
|
6
|
32,517
|
-
|
-
|
-
|
32,523
|
|||||||||||||||||||||
Treasury stock sold
|
20
|
-
|
2,549
|
-
|
-
|
202
|
2,751
|
|||||||||||||||||||||
Currency translation adjustments, net of $3,916 tax
|
-
|
-
|
-
|
-
|
(115,010
|
)
|
-
|
(115,010
|
)
|
|||||||||||||||||||
Stock based compensation
|
-
|
-
|
63,025
|
-
|
-
|
-
|
63,025
|
|||||||||||||||||||||
Restricted stock activity
|
213
|
2
|
(22,064
|
)
|
-
|
-
|
-
|
(22,062
|
)
|
|||||||||||||||||||
Stock option tax benefit, net of shortfalls
|
-
|
-
|
21,481
|
-
|
-
|
-
|
21,481
|
|||||||||||||||||||||
Conversion of senior subordinated convertible notes
|
-
|
-
|
(1,403
|
)
|
-
|
-
|
-
|
(1,403
|
)
|
|||||||||||||||||||
Dividends declared ($0.85 per share)
|
-
|
-
|
-
|
(85,028
|
)
|
-
|
-
|
(85,028
|
)
|
|||||||||||||||||||
Balances at December 31, 2014
|
100,126
|
$
|
1,021
|
$
|
1,325,338
|
$
|
3,520,201
|
$
|
(71,927
|
)
|
$
|
(19,273
|
)
|
$
|
4,755,360
|
|||||||||||||
Net earnings
|
-
|
-
|
-
|
696,067
|
-
|
-
|
696,067
|
|||||||||||||||||||||
Stock option exercises
|
402
|
4
|
33,002
|
-
|
-
|
-
|
33,006
|
|||||||||||||||||||||
Treasury stock sold
|
18
|
-
|
2,710
|
-
|
-
|
179
|
2,889
|
|||||||||||||||||||||
Currency translation adjustments, net of $6,658 tax
|
-
|
-
|
-
|
-
|
(139,789
|
)
|
-
|
(139,789
|
)
|
|||||||||||||||||||
Stock based compensation
|
-
|
-
|
61,766
|
-
|
-
|
-
|
61,766
|
|||||||||||||||||||||
Restricted stock activity
|
324
|
3
|
(14,697
|
)
|
-
|
-
|
-
|
(14,694
|
)
|
|||||||||||||||||||
Stock option tax benefit, net of shortfalls
|
-
|
-
|
22,175
|
-
|
-
|
-
|
22,175
|
|||||||||||||||||||||
Conversion of senior subordinated convertible notes
|
-
|
-
|
(11,032
|
)
|
-
|
-
|
-
|
(11,032
|
)
|
|||||||||||||||||||
Post-retirement benefit plan adjustments
|
-
|
-
|
-
|
-
|
(1,063
|
)
|
-
|
(1,063
|
)
|
|||||||||||||||||||
Dividends declared ($1.05 per share)
|
-
|
-
|
-
|
(105,738
|
)
|
-
|
-
|
(105,738
|
)
|
|||||||||||||||||||
Balances at December 31, 2015
|
100,870
|
$
|
1,028
|
$
|
1,419,262
|
$
|
4,110,530
|
$
|
(212,779
|
)
|
$
|
(19,094
|
)
|
$
|
5,298,947
|
|||||||||||||
Net earnings
|
-
|
-
|
-
|
658,645
|
-
|
-
|
658,645
|
|||||||||||||||||||||
Stock option exercises
|
372
|
4
|
27,970
|
-
|
-
|
-
|
27,974
|
|||||||||||||||||||||
Treasury stock sold
|
19
|
-
|
3,147
|
-
|
-
|
193
|
3,340
|
|||||||||||||||||||||
Currency translation adjustments, net of $2,570 tax
|
-
|
-
|
-
|
-
|
(111,960
|
)
|
-
|
(111,960
|
)
|
|||||||||||||||||||
Stock based compensation
|
-
|
-
|
77,860
|
-
|
-
|
-
|
77,860
|
|||||||||||||||||||||
Restricted stock activity
|
411
|
4
|
(17,980
|
)
|
-
|
-
|
-
|
(17,976
|
)
|
|||||||||||||||||||
Stock option tax benefit, net of shortfalls
|
-
|
-
|
(8,081
|
)
|
-
|
-
|
-
|
(8,081
|
)
|
|||||||||||||||||||
Conversion of senior subordinated convertible notes
|
-
|
-
|
(13,111
|
)
|
-
|
-
|
-
|
(13,111
|
)
|
|||||||||||||||||||
Dividends declared ($1.25 per share)
|
-
|
-
|
-
|
(126,773
|
)
|
-
|
-
|
(126,773
|
)
|
|||||||||||||||||||
Balances at December 31, 2016
|
101,672
|
$
|
1,036
|
$
|
1,489,067
|
$
|
4,642,402
|
$
|
(324,739
|
)
|
$
|
(18,901
|
)
|
$
|
5,788,865
|
|
Years ended December 31,
|
|||||||||||
|
2016
|
2015
|
2014
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings
|
$
|
658,645
|
$
|
696,067
|
$
|
646,033
|
||||||
Adjustments to reconcile net earnings to cash flows from operating activities:
|
||||||||||||
Depreciation and amortization of property, plant and equipment
|
37,299
|
38,185
|
40,890
|
|||||||||
Amortization of intangible assets
|
203,154
|
166,076
|
156,394
|
|||||||||
Amortization of deferred financing costs
|
5,612
|
4,136
|
4,003
|
|||||||||
Non-cash stock compensation
|
78,827
|
61,766
|
63,027
|
|||||||||
Gain on disposal of a business
|
-
|
(70,860
|
)
|
-
|
||||||||
Changes in operating assets and liabilities, net of acquired businesses:
|
||||||||||||
Accounts receivable
|
(20,734
|
)
|
52,597
|
(404
|
)
|
|||||||
Unbilled receivables
|
(1,202
|
)
|
(21,844
|
)
|
(10,305
|
)
|
||||||
Inventories
|
6,353
|
(1,150
|
)
|
6,349
|
||||||||
Accounts payable and accrued liabilities
|
20,176
|
(8,392
|
)
|
7,747
|
||||||||
Deferred revenue
|
25,190
|
8,239
|
(28,202
|
)
|
||||||||
Income taxes
|
(47,589
|
)
|
3,069
|
(46,619
|
)
|
|||||||
Other, net
|
(1,946
|
)
|
936
|
1,528
|
||||||||
Cash provided by operating activities
|
963,785
|
928,825
|
840,441
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Acquisitions of businesses, net of cash acquired
|
(3,721,758
|
)
|
(1,762,883
|
)
|
(305,379
|
)
|
||||||
Capital expenditures
|
(37,305
|
)
|
(36,260
|
)
|
(37,644
|
)
|
||||||
Capitalized software expenditures
|
(2,801
|
)
|
(2,439
|
)
|
(2,588
|
)
|
||||||
Proceeds from disposal of a business
|
-
|
105,624
|
-
|
|||||||||
Proceeds from sale of assets
|
870
|
1,126
|
1,506
|
|||||||||
Other, net
|
8,138
|
(3,500
|
)
|
(4,000
|
)
|
|||||||
Cash used in investing activities
|
(3,752,856
|
)
|
(1,698,332
|
)
|
(348,105
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from senior notes
|
1,200,000
|
900,000
|
-
|
|||||||||
Borrowings/(payments) under revolving line of credit, net
|
1,750,000
|
180,000
|
(250,000
|
)
|
||||||||
Principal payments on convertible notes
|
(4,284
|
)
|
(4,006
|
)
|
(561
|
)
|
||||||
Debt issuance costs
|
(17,266
|
)
|
(8,044
|
)
|
-
|
|||||||
Cash dividends to stockholders
|
(121,130
|
)
|
(100,334
|
)
|
(79,859
|
)
|
||||||
Treasury stock sales
|
3,340
|
2,889
|
2,751
|
|||||||||
Stock award tax excess windfall benefit
|
-
|
22,228
|
21,081
|
|||||||||
Proceeds from stock based compensation, net
|
9,998
|
18,312
|
10,463
|
|||||||||
Redemption premium on convertible debt
|
(14,166
|
)
|
(13,126
|
)
|
(1,518
|
)
|
||||||
Other
|
(1,229
|
)
|
(1,677
|
)
|
(461
|
)
|
||||||
Cash provided by/(used in) financing activities
|
2,805,263
|
996,242
|
(298,104
|
)
|
||||||||
Effect of exchange rate changes on cash
|
(37,503
|
)
|
(58,654
|
)
|
(43,522
|
)
|
||||||
Net increase/(decrease) in cash and cash equivalents
|
(21,311
|
)
|
168,081
|
150,710
|
||||||||
Cash and cash equivalents, beginning of year
|
778,511
|
610,430
|
459,720
|
|||||||||
Cash and cash equivalents, end of year
|
$
|
757,200
|
$
|
778,511
|
$
|
610,430
|
Supplemental disclosures:
|
||||||||||||
Cash paid for:
|
||||||||||||
Interest
|
$
|
104,928
|
$
|
79,225
|
$
|
74,446
|
||||||
Income taxes, net of refunds received
|
$
|
329,596
|
$
|
280,801
|
$
|
300,969
|
||||||
Noncash investing activities:
|
||||||||||||
Net assets of businesses acquired:
|
||||||||||||
Fair value of assets, including goodwill
|
$
|
4,433,085
|
$
|
1,876,984
|
$
|
324,717
|
||||||
Liabilities assumed
|
(711,327
|
)
|
(114,101
|
)
|
(19,338
|
)
|
||||||
Cash paid, net of cash acquired
|
$
|
3,721,758
|
$
|
1,762,883
|
$
|
305,379
|
(1) |
Summary of Accounting Policies
|
·
|
The Company recorded tax benefits of $15.3 million within income tax expense for the year ended December 31, 2016 related to the excess tax benefit on share-based awards. Prior to adoption this amount would have been recorded as a reduction of additional paid-in capital. This change adds volatility to the Company's effective tax rate.
|
·
|
The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the statement of cash flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted.
|
·
|
The Company elected not to change its policy on accounting for forfeitures and continued to estimate the total number of awards for which the requisite service period will not be rendered.
|
·
|
The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share since adoption. This resulted in an increase in diluted weighted average common shares outstanding of 278,829 shares for the year ended December 31, 2016.
|
|
Years ended December 31,
|
|||||||||||
|
2016
|
2015
|
2014
|
|||||||||
Basic weighted-average shares outstanding
|
101,291
|
100,616
|
99,916
|
|||||||||
Effect of potential common stock:
|
||||||||||||
Common stock awards
|
1,126
|
887
|
816
|
|||||||||
Senior subordinated convertible notes
|
47
|
94
|
152
|
|||||||||
Diluted weighted-average shares outstanding
|
102,464
|
101,597
|
100,884
|
● |
a significant adverse change in legal factors or in the business climate;
|
● |
an adverse action or assessment by a regulator;
|
● |
unanticipated competition;
|
● |
a loss of key personnel;
|
● |
a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of;
|
● |
the testing for recoverability under the Impairment or Disposal of Long-Lived Assets of a significant asset group within a reporting unit; and
|
● |
recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit.
|
Buildings
|
20-30 years
|
Machinery
|
8-12 years
|
Other equipment
|
3-5 years
|
● |
persuasive evidence of an arrangement exists;
|
● |
delivery has occurred or services have been rendered;
|
● |
the seller's price to the buyer is fixed or determinable; and
|
● |
collectibility is reasonably assured.
|
(2) |
Business Acquisitions and Divestitures
|
Accounts receivable
|
$
|
94,506
|
||
Other current assets
|
37,558
|
|||
Identifiable intangibles
|
972,000
|
|||
Goodwill
|
2,234,549
|
|||
Other assets
|
43,098
|
|||
Total assets acquired
|
3,381,711
|
|||
Deferred revenue
|
166,393
|
|||
Other current liabilities
|
57,433
|
|||
Long-term deferred tax liability
|
349,810
|
|||
Other liabilities
|
7,935
|
|||
Net assets acquired
|
$
|
2,800,140
|
|
Pro forma
|
|||||||
|
Year ended December 31,
|
|||||||
|
2016
|
2015
|
||||||
Sales
|
$
|
4,268,052
|
$
|
4,012,030
|
||||
Net income
|
656,404
|
647,089
|
||||||
Earnings per share, basic
|
6.48
|
6.43
|
||||||
Earnings per share, diluted
|
6.41
|
6.37
|
·
|
Clinisys - On January 7, 2016, Roper acquired 100% of the shares of CliniSys Group Ltd. ("CliniSys"), a provider of clinical laboratory software headquartered in the United Kingdom.
|
·
|
PCI Medical - On March 17, 2016, Roper acquired the assets of PCI Medical Inc., a provider of medical probe and scope disinfection products.
|
·
|
GeneInsight - On April 1, 2016, the Company acquired 100% of the shares of GeneInsight Inc., a provider of software for managing the analysis, interpretation and reporting of genetic tests.
|
·
|
UNIConnect - On November 10, 2016, Roper acquired the assets of UNIConnect LC, a provider of process management software for molecular laboratories.
|
·
|
Strata
- On January 21, 2015, Roper acquired 100% of the shares of Strata Decision Technologies LLC ("Strata"), a provider of planning and budget software for health care providers.
|
·
|
Softwriters
- On February 9, 2015, Roper acquired 100% of the shares of Softwriters Inc., a provider of long-term care pharmacy operating software.
|
·
|
Data Innovations
- On March 4, 2015, Roper acquired 100% of the shares of Data Innovations LLC, a provider of clinical and blood laboratory middleware.
|
·
|
AHP
- On September 4, 2015, Roper acquired the assets of Atlantic Health Partners LLC ("AHP"), a group purchasing organization specializing in vaccines for the physician marketplace.
|
·
|
Atlas
- On October 26, 2015, Roper acquired 100% of the shares of Atlas Database Software Corp. ("Atlas"), a provider of clinical process integration to private and public health sectors.
|
·
|
On Center
- On July 20, 2015, Roper acquired 100% of the shares of On Center Software LLC ("On Center"), a provider of construction automation technology.
|
·
|
RF IDeas
- On September 1, 2015, Roper acquired 100% of the shares of RF IDeas, Inc., a provider of proprietary identification card technology solutions.
|
·
|
Aderant
- On October 21, 2015, Roper acquired 100% of the shares of Aderant Holdings, Inc. ("Aderant"), a provider of comprehensive software solutions for law and other professional services firms.
|
(3) |
Inventories
|
|
2016
|
2015
|
||||||
Raw materials and supplies
|
$
|
113,632
|
$
|
120,811
|
||||
Work in process
|
24,290
|
22,979
|
||||||
Finished products
|
81,263
|
80,118
|
||||||
Inventory reserves
|
(37,233
|
)
|
(34,040
|
)
|
||||
|
$
|
181,952
|
$
|
189,868
|
(4) |
Property, Plant and Equipment
|
|
2016
|
2015
|
||||||
Land
|
$
|
2,404
|
$
|
2,488
|
||||
Buildings
|
88,201
|
79,182
|
||||||
Machinery and other equipment
|
221,325
|
223,561
|
||||||
Computer equipment
|
70,110
|
57,338
|
||||||
Software
|
54,451
|
38,517
|
||||||
|
436,491
|
401,086
|
||||||
Accumulated depreciation
|
(295,173
|
)
|
(295,576
|
)
|
||||
|
$
|
141,318
|
$
|
105,510
|
(5) |
Goodwill and Other Intangible Assets
|
|
Medical &
Scientific Imaging
|
RF Technology
|
Industrial Technology
|
Energy Systems
& Controls
|
Total
|
|||||||||||||||
Balances at December 31, 2014
|
$
|
2,594,356
|
$
|
1,280,788
|
$
|
408,964
|
$
|
426,583
|
$
|
4,710,691
|
||||||||||
Goodwill acquired
|
476,106
|
720,345
|
-
|
-
|
1,196,451
|
|||||||||||||||
Goodwill written off related to divestiture of business
|
-
|
-
|
(20,524
|
)
|
-
|
(20,524
|
)
|
|||||||||||||
Currency translation adjustments
|
(31,556
|
)
|
(7,667
|
)
|
(14,407
|
)
|
(8,386
|
)
|
(62,016
|
)
|
||||||||||
Reclassifications and other
|
291
|
(167
|
)
|
-
|
-
|
124
|
||||||||||||||
Balances at December 31, 2015
|
$
|
3,039,197
|
$
|
1,993,299
|
$
|
374,033
|
$
|
418,197
|
$
|
5,824,726
|
||||||||||
Goodwill acquired
|
166,768
|
2,710,223
|
-
|
-
|
2,876,991
|
|||||||||||||||
Currency translation adjustments
|
(19,100
|
)
|
(15,118
|
)
|
(10,055
|
)
|
(7,774
|
)
|
(52,047
|
)
|
||||||||||
Reclassifications and other
|
(1,794
|
)
|
(734
|
)
|
-
|
-
|
(2,528
|
)
|
||||||||||||
Balances at December 31, 2016
|
$
|
3,185,071
|
$
|
4,687,670
|
$
|
363,978
|
$
|
410,423
|
$
|
8,647,142
|
|
Cost
|
Accum. amort.
|
Net book value
|
|||||||||
Assets subject to amortization:
|
||||||||||||
Customer related intangibles
|
$
|
2,448,509
|
$
|
(602,615
|
)
|
$
|
1,845,894
|
|||||
Unpatented technology
|
270,170
|
(117,405
|
)
|
152,765
|
||||||||
Software
|
161,201
|
(44,298
|
)
|
116,903
|
||||||||
Patents and other protective rights
|
24,160
|
(18,659
|
)
|
5,501
|
||||||||
Backlog
|
700
|
(700
|
)
|
-
|
||||||||
Trade names
|
595
|
(122
|
)
|
473
|
||||||||
Assets not subject to amortization:
|
||||||||||||
Trade names
|
407,460
|
-
|
407,460
|
|||||||||
Balances at December 31, 2015
|
$
|
3,312,795
|
$
|
(783,799
|
)
|
$
|
2,528,996
|
|||||
|
||||||||||||
Assets subject to amortization:
|
||||||||||||
Customer related intangibles
|
$
|
3,272,081
|
$
|
(712,718
|
)
|
$
|
2,559,363
|
|||||
Unpatented technology
|
462,152
|
(144,025
|
)
|
318,127
|
||||||||
Software
|
184,761
|
(56,882
|
)
|
127,879
|
||||||||
Patents and other protective rights
|
24,656
|
(20,399
|
)
|
4,257
|
||||||||
Trade names
|
6,591
|
(653
|
)
|
5,938
|
||||||||
Assets not subject to amortization:
|
||||||||||||
Trade names
|
578,279
|
-
|
578,279
|
|||||||||
In process research and development
|
62,000
|
-
|
62,000
|
|||||||||
Balances at December 31, 2016
|
$
|
4,590,520
|
$
|
(934,677
|
)
|
$
|
3,655,843
|
(6) |
Accrued Liabilities
|
|
2016
|
2015
|
||||||
Interest
|
$
|
21,742
|
$
|
19,776
|
||||
Customer deposits
|
16,707
|
15,094
|
||||||
Commissions
|
9,144
|
12,079
|
||||||
Warranty
|
10,548
|
10,183
|
||||||
Accrued dividend
|
36,077
|
30,436
|
||||||
Rebates
|
19,414
|
16,511
|
||||||
Billings in excess of cost
|
12,381
|
5,464
|
||||||
Other
|
93,326
|
58,970
|
||||||
|
$
|
219,339
|
$
|
168,513
|
(7) |
Income Taxes
|
|
2016
|
2015
|
2014
|
|||||||||
United States
|
$
|
721,000
|
$
|
710,614
|
$
|
665,219
|
||||||
Other
|
219,652
|
291,731
|
256,237
|
|||||||||
|
$
|
940,652
|
$
|
1,002,345
|
$
|
921,456
|
|
2016
|
2015
|
2014
|
|||||||||
Current:
|
||||||||||||
Federal
|
$
|
239,217
|
$
|
229,224
|
$
|
218,302
|
||||||
State
|
21,779
|
22,041
|
37,155
|
|||||||||
Foreign
|
54,937
|
71,507
|
56,107
|
|||||||||
Deferred:
|
||||||||||||
Federal
|
(26,760
|
)
|
6,710
|
(27,357
|
)
|
|||||||
State
|
189
|
(16,844
|
)
|
(3,307
|
)
|
|||||||
Foreign
|
(7,355
|
)
|
(6,360
|
)
|
(5,477
|
)
|
||||||
|
$
|
282,007
|
$
|
306,278
|
$
|
275,423
|
|
2016
|
2015
|
2014
|
|||||||||
Federal statutory rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||||
Foreign rate differential
|
(3.2
|
)
|
(3.3
|
)
|
(3.9
|
)
|
||||||
R&D tax credits
|
(0.7
|
)
|
(0.5
|
)
|
(0.4
|
)
|
||||||
State taxes, net of federal benefit
|
1.9
|
2.0
|
2.0
|
|||||||||
Section 199 deduction
|
(1.5
|
)
|
(1.3
|
)
|
(1.6
|
)
|
||||||
Other, net
|
(1.5
|
)
|
(1.3
|
)
|
(1.2
|
)
|
||||||
|
30.0
|
%
|
30.6
|
%
|
29.9
|
%
|
|
2016
|
2015
|
||||||
Deferred tax assets:
|
||||||||
Reserves and accrued expenses
|
$
|
186,120
|
$
|
146,014
|
||||
Inventories
|
8,967
|
9,309
|
||||||
Net operating loss carryforwards
|
87,010
|
45,616
|
||||||
R&D credits
|
7,933
|
8,504
|
||||||
Foreign tax credits
|
9,203
|
7,940
|
||||||
Valuation allowance
|
(26,009
|
)
|
(19,338
|
)
|
||||
Total deferred tax assets
|
$
|
273,224
|
$
|
198,045
|
||||
Deferred tax liabilities:
|
||||||||
Reserves and accrued expenses
|
$
|
13,915
|
$
|
11,222
|
||||
Amortizable intangible assets
|
1,400,792
|
962,143
|
||||||
Plant and equipment
|
6,102
|
4,004
|
||||||
Total deferred tax liabilities
|
$
|
1,420,809
|
$
|
977,369
|
|
2016
|
2015
|
2014
|
|||||||||
Beginning balance
|
$
|
26,140
|
$
|
28,567
|
$
|
26,924
|
||||||
Additions for tax positions of prior periods
|
3,450
|
3,525
|
6,532
|
|||||||||
Additions for tax positions of the current period
|
9,012
|
3,299
|
5,571
|
|||||||||
Additions due to acquisitions
|
5,049
|
6,177
|
-
|
|||||||||
Reductions for tax positions of prior periods
|
(1,165
|
)
|
(12,206
|
)
|
(1,008
|
)
|
||||||
Reductions for tax positions of the current period
|
||||||||||||
Settlements with taxing authorities
|
(568
|
)
|
(142
|
)
|
(518
|
)
|
||||||
Lapse of applicable statute of limitations
|
(3,240
|
)
|
(3,080
|
)
|
(8,934
|
)
|
||||||
Ending balance
|
$
|
38,678
|
$
|
26,140
|
$
|
28,567
|
(8) |
Long-Term Debt
|
|
2016
|
2015
|
||||||
2016 Facility
|
$
|
1,930,000
|
$
|
-
|
||||
2012 Facility
|
-
|
180,000
|
||||||
$400 million 1.850% senior notes due 2017
|
400,000
|
400,000
|
||||||
$800 million 2.050% senior notes due 2018
|
800,000
|
800,000
|
||||||
$500 million 6.250% senior notes due 2019
|
500,000
|
500,000
|
||||||
$600 million 3.000% senior notes due 2020
|
600,000
|
600,000
|
||||||
$500 million 2.800% senior notes due 2021
|
500,000
|
-
|
||||||
$500 million 3.125% senior notes due 2022
|
500,000
|
500,000
|
||||||
$300 million 3.850% senior notes due 2025
|
300,000
|
300,000
|
||||||
$700 million 3.800% senior notes due 2026
|
700,000
|
-
|
||||||
Senior subordinated convertible notes
|
-
|
4,179
|
||||||
Other
|
2,989
|
4,435
|
||||||
Less unamortized debt issuance costs
|
(23,453
|
)
|
(17,392
|
)
|
||||
Total debt
|
6,209,536
|
3,271,222
|
||||||
Less current portion, net of issuance costs |
400,975
|
6,805
|
||||||
Long-term debt |
$
|
5,808,561
|
$
|
3,264,417
|
2017
|
$
|
401,595
|
||
2018
|
800,840
|
|||
2019
|
500,407
|
|||
2020
|
600,147
|
|||
2021
|
500,000
|
|||
Thereafter
|
3,430,000
|
|||
Total
|
$
|
6,232,989
|
(9) |
Fair Value
|
$400 million 1.850% senior notes due 2017
|
$
|
401
|
||
$800 million 2.050% senior notes due 2018
|
803
|
|||
$500 million 6.250% senior notes due 2019
|
551
|
|||
$600 million 3.000% senior notes due 2020
|
605
|
|||
$500 million 2.800% senior notes due 2021
|
497
|
|||
$500 million 3.125% senior notes due 2022
|
497
|
|||
$300 million 3.850% senior notes due 2025
|
303
|
|||
$700 million 3.800% senior notes due 2026
|
702
|
(10) |
Retirement and Other Benefit Plans
|
(11) |
Stock-Based Compensation
|
|
2016
|
2015
|
2014
|
|||||||||
Stock based compensation
|
$
|
78.8
|
$
|
61.8
|
$
|
63.0
|
||||||
Tax benefit recognized in net income
|
27.6
|
21.6
|
22.1
|
|||||||||
Windfall tax benefit, net
|
-
|
22.2
|
21.5
|
|
2016
|
2015
|
2014
|
|||||||||
Weighted-average fair value ($)
|
34.57
|
33.98
|
34.95
|
|||||||||
Risk-free interest rate (%)
|
1.44
|
1.53
|
1.63
|
|||||||||
Average expected option life (years)
|
5.20
|
5.10
|
5.22
|
|||||||||
Expected volatility (%)
|
21.35
|
22.17
|
27.01
|
|||||||||
Expected dividend yield (%)
|
0.70
|
0.62
|
0.58
|
|
Number of shares
|
Weighted-average
exercise price
per share
|
Weighted-average
contractual term
|
Aggregate intrinsic
value
|
||||||||||||
Outstanding at January 1, 2015
|
2,981,111
|
$
|
90.48
|
|||||||||||||
Granted
|
628,155
|
162.77
|
||||||||||||||
Exercised
|
(400,050
|
)
|
82.50
|
|||||||||||||
Canceled
|
(91,600
|
)
|
142.36
|
|||||||||||||
Outstanding at December 31, 2015
|
3,117,616
|
104.54
|
6.08
|
$
|
265,782,636
|
|||||||||||
Granted
|
743,250
|
172.23
|
||||||||||||||
Exercised
|
(371,853
|
)
|
75.23
|
|||||||||||||
Canceled
|
(69,416
|
)
|
159.97
|
|||||||||||||
Outstanding at December 31, 2016
|
3,419,597
|
121.31
|
6.15
|
$
|
211,369,740
|
|||||||||||
Exercisable at December 31, 2016
|
1,954,306
|
$
|
89.37
|
4.28
|
$
|
183,136,309
|
Outstanding options
|
Exercisable options
|
|||||||||||||||||||||
Exercise price
|
Number
|
Average
exercise
price
|
Average remaining
life (years)
|
Number
|
Average
exercise
price
|
|||||||||||||||||
$
|
38.46 - 57.68
|
689,289
|
$
|
53.28
|
1.5
|
689,289
|
$
|
53.28
|
||||||||||||||
57.69 - 76.91
|
259,460
|
72.55
|
4.2
|
259,460
|
72.55
|
|||||||||||||||||
76.92 - 96.14
|
249,281
|
93.34
|
5.0
|
249,281
|
93.34
|
|||||||||||||||||
96.15 - 115.37
|
283,069
|
114.99
|
6.0
|
283,069
|
114.99
|
|||||||||||||||||
115.38 - 134.60
|
503,778
|
130.72
|
7.0
|
368,456
|
129.96
|
|||||||||||||||||
134.61- 153.82
|
259,370
|
144.19
|
7.7
|
75,334
|
141.95
|
|||||||||||||||||
153.83 - 173.05
|
916,725
|
167.80
|
8.8
|
25,334
|
157.81
|
|||||||||||||||||
173.06 - 192.28
|
258,625
|
179.42
|
9.5
|
4,083
|
175.47
|
|||||||||||||||||
$
|
38.46 - 192.28
|
3,419,597
|
$
|
121.31
|
6.2
|
1,954,306
|
$
|
89.37
|
|
Number of
shares
|
Weighted-average
grant date
fair value
|
||||||
Nonvested at December 31, 2014
|
542,555
|
$
|
130.29
|
|||||
Granted
|
437,035
|
159.32
|
||||||
Vested
|
(243,423
|
)
|
183.10
|
|||||
Forfeited
|
(26,892
|
)
|
148.82
|
|||||
Nonvested at December 31, 2015
|
709,275
|
$
|
146.64
|
|||||
Granted
|
555,730
|
172.67
|
||||||
Vested
|
(287,233
|
)
|
141.27
|
|||||
Forfeited
|
(25,100
|
)
|
139.56
|
|||||
Nonvested at December 31, 2016
|
952,672
|
$
|
164.62
|
(12) |
Contingencies
|
2017
|
$
|
53.8
|
||
2018
|
41.0
|
|||
2019
|
32.4
|
|||
2020
|
28.7
|
|||
2021
|
24.9
|
|||
Thereafter
|
51.6
|
|||
Total
|
$
|
232.4
|
|
2016
|
2015
|
2014
|
|||||||||
Balance, beginning of year
|
$
|
10,183
|
$
|
9,537
|
$
|
14,336
|
||||||
Additions charged to costs and expenses
|
15,950
|
14,284
|
13,396
|
|||||||||
Deductions
|
(15,513
|
)
|
(13,059
|
)
|
(18,078
|
)
|
||||||
Other
|
(72
|
)
|
(579
|
)
|
(117
|
)
|
||||||
Balance, end of year
|
$
|
10,548
|
$
|
10,183
|
$
|
9,537
|
(13) |
Segment and Geographic Area Information
|
|
Medical &
Scientific
Imaging
|
RF Technology
|
Industrial
Technology |
Energy Systems
& Controls
|
Corporate
|
Total
|
||||||||||||||||||
2016
|
||||||||||||||||||||||||
Net sales
|
$
|
1,362,813
|
$
|
1,210,264
|
$
|
706,625
|
$
|
510,223
|
$
|
-
|
$
|
3,789,925
|
||||||||||||
Operating profit
|
477,548
|
372,467
|
202,451
|
129,602
|
(127,505
|
)
|
1,054,563
|
|||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Operating assets
|
282,437
|
487,936
|
182,430
|
164,349
|
11,788
|
1,128,940
|
||||||||||||||||||
Intangible assets, net
|
4,660,298
|
6,634,964
|
493,924
|
513,799
|
-
|
12,302,985
|
||||||||||||||||||
Other
|
154,838
|
156,413
|
88,130
|
134,976
|
358,645
|
893,002
|
||||||||||||||||||
Total
|
14,324,927
|
|||||||||||||||||||||||
Capital expenditures
|
16,098
|
11,536
|
6,590
|
2,218
|
863
|
37,305
|
||||||||||||||||||
Depreciation and other amortization
|
119,248
|
82,653
|
18,573
|
19,701
|
278
|
240,453
|
||||||||||||||||||
2015
|
||||||||||||||||||||||||
Net sales
|
$
|
1,215,318
|
$
|
1,033,951
|
$
|
745,381
|
$
|
587,745
|
$
|
-
|
$
|
3,582,395
|
||||||||||||
Operating profit
|
441,931
|
312,112
|
214,538
|
162,128
|
(102,791
|
)
|
1,027,918
|
|||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Operating assets
|
265,520
|
293,004
|
182,544
|
194,898
|
9,080
|
945,046
|
||||||||||||||||||
Intangible assets, net
|
4,451,028
|
2,848,911
|
513,155
|
540,628
|
-
|
8,353,722
|
||||||||||||||||||
Other
|
121,461
|
117,596
|
67,832
|
113,014
|
449,694
|
869,597
|
||||||||||||||||||
Total
|
10,168,365
|
|||||||||||||||||||||||
Capital expenditures
|
12,642
|
10,758
|
9,179
|
3,276
|
405
|
36,260
|
||||||||||||||||||
Depreciation and other amortization
|
105,928
|
56,877
|
19,912
|
21,254
|
290
|
204,261
|
||||||||||||||||||
2014
|
||||||||||||||||||||||||
Net sales
|
$
|
1,080,309
|
$
|
950,227
|
$
|
827,145
|
$
|
691,813
|
$
|
-
|
$
|
3,549,494
|
||||||||||||
Operating profit
|
375,867
|
271,177
|
247,596
|
203,021
|
(98,188
|
)
|
999,473
|
|||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Operating assets
|
232,380
|
270,458
|
220,115
|
219,284
|
7,002
|
949,239
|
||||||||||||||||||
Intangible assets, net
|
3,842,180
|
1,720,977
|
557,593
|
568,670
|
-
|
6,689,420
|
||||||||||||||||||
Other*
|
147,529
|
65,636
|
120,681
|
223,831
|
203,849
|
761,526
|
||||||||||||||||||
Total*
|
8,400,185
|
|||||||||||||||||||||||
Capital expenditures
|
11,430
|
10,521
|
10,713
|
4,634
|
346
|
37,644
|
||||||||||||||||||
Depreciation and other amortization
|
93,683
|
58,702
|
21,135
|
23,281
|
483
|
197,284
|
|
United States
|
Non-U.S.
|
Eliminations
|
Total
|
||||||||||||
2016
|
||||||||||||||||
Sales to unaffiliated customers
|
$
|
2,978,496
|
$
|
811,429
|
$
|
-
|
$
|
3,789,925
|
||||||||
Sales between geographic areas
|
137,276
|
109,370
|
(246,646
|
)
|
-
|
|||||||||||
Net sales
|
$
|
3,115,772
|
$
|
920,799
|
$
|
(246,646
|
)
|
$
|
3,789,925
|
|||||||
Long-lived assets
|
$
|
145,996
|
$
|
21,020
|
$
|
-
|
$
|
167,016
|
||||||||
2015
|
||||||||||||||||
Sales to unaffiliated customers
|
$
|
2,829,752
|
$
|
752,643
|
$
|
-
|
$
|
3,582,395
|
||||||||
Sales between geographic areas
|
135,363
|
119,006
|
(254,369
|
)
|
-
|
|||||||||||
Net sales
|
$
|
2,965,115
|
$
|
871,649
|
$
|
(254,369
|
)
|
$
|
3,582,395
|
|||||||
Long-lived assets
|
$
|
133,522
|
$
|
21,960
|
$
|
-
|
$
|
155,482
|
||||||||
2014
|
||||||||||||||||
Sales to unaffiliated customers
|
$
|
2,661,470
|
$
|
888,024
|
$
|
-
|
$
|
3,549,494
|
||||||||
Sales between geographic areas
|
159,049
|
119,175
|
(278,224
|
)
|
-
|
|||||||||||
Net sales
|
$
|
2,820,519
|
$
|
1,007,199
|
$
|
(278,224
|
)
|
$
|
3,549,494
|
|||||||
Long-lived assets
|
$
|
134,855
|
$
|
30,781
|
$
|
-
|
$
|
165,636
|
|
Medical &
Scientific Imaging
|
RF Technology
|
Industrial
Technology |
Energy Systems
& Controls
|
Total
|
|||||||||||||||
2016
|
||||||||||||||||||||
Canada
|
$
|
21,993
|
$
|
52,703
|
$
|
60,551
|
$
|
22,360
|
$
|
157,607
|
||||||||||
Europe
|
228,058
|
71,673
|
89,229
|
119,032
|
507,992
|
|||||||||||||||
Asia
|
111,843
|
11,988
|
52,087
|
126,769
|
302,687
|
|||||||||||||||
Middle East
|
10,107
|
50,605
|
2,997
|
37,491
|
101,200
|
|||||||||||||||
Rest of the world
|
21,549
|
17,067
|
20,675
|
46,202
|
105,493
|
|||||||||||||||
Total
|
$
|
393,550
|
$
|
204,036
|
$
|
225,539
|
$
|
351,854
|
$
|
1,174,979
|
||||||||||
2015
|
||||||||||||||||||||
Canada
|
$
|
23,737
|
$
|
45,506
|
$
|
65,826
|
$
|
23,883
|
$
|
158,952
|
||||||||||
Europe
|
167,698
|
57,581
|
97,938
|
129,021
|
452,238
|
|||||||||||||||
Asia
|
112,732
|
10,019
|
60,817
|
132,088
|
315,656
|
|||||||||||||||
Middle East
|
15,877
|
54,165
|
4,220
|
50,227
|
124,489
|
|||||||||||||||
Rest of the world
|
20,417
|
10,761
|
24,471
|
55,074
|
110,723
|
|||||||||||||||
Total
|
$
|
340,461
|
$
|
178,032
|
$
|
253,272
|
$
|
390,293
|
$
|
1,162,058
|
||||||||||
2014
|
||||||||||||||||||||
Canada
|
$
|
24,997
|
$
|
45,811
|
$
|
106,598
|
$
|
31,831
|
$
|
209,237
|
||||||||||
Europe
|
185,263
|
54,330
|
121,909
|
157,391
|
518,893
|
|||||||||||||||
Asia
|
107,695
|
7,555
|
61,552
|
143,524
|
320,326
|
|||||||||||||||
Middle East
|
9,997
|
34,241
|
3,824
|
42,988
|
91,050
|
|||||||||||||||
Rest of the world
|
28,722
|
9,333
|
26,134
|
78,186
|
142,375
|
|||||||||||||||
Total
|
$
|
356,674
|
$
|
151,270
|
$
|
320,017
|
$
|
453,920
|
$
|
1,281,881
|
(14) |
Concentration of Risk
|
(15) |
Quarterly Financial Data (unaudited)
|
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
||||||||||||
|
(in thousands, except per share data)
|
|||||||||||||||
2016
|
||||||||||||||||
Net sales
|
$
|
902,423
|
$
|
931,558
|
$
|
945,144
|
$
|
1,010,800
|
||||||||
Gross profit
|
559,519
|
567,520
|
578,493
|
626,878
|
||||||||||||
Income from operations
|
244,991
|
253,078
|
267,390
|
289,104
|
||||||||||||
Net earnings
|
151,416
|
158,069
|
167,079
|
182,081
|
||||||||||||
|
||||||||||||||||
Earnings from continuing operations per common share:
|
||||||||||||||||
Basic
|
1.50
|
1.56
|
1.65
|
1.79
|
||||||||||||
Diluted
|
1.48
|
1.54
|
1.63
|
1.78
|
||||||||||||
|
||||||||||||||||
2015
|
||||||||||||||||
Net sales
|
$
|
865,281
|
$
|
889,541
|
$
|
883,933
|
$
|
943,640
|
||||||||
Gross profit
|
518,161
|
533,911
|
533,483
|
579,091
|
||||||||||||
Income from operations
|
246,896
|
251,974
|
250,371
|
278,677
|
||||||||||||
Net earnings
|
155,773
|
171,280
|
160,417
|
208,597
|
||||||||||||
|
||||||||||||||||
Earnings from continuing operations per common share:
|
||||||||||||||||
Basic
|
1.55
|
1.70
|
1.59
|
2.07
|
||||||||||||
Diluted
|
1.54
|
1.69
|
1.58
|
2.05
|
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A. |
CONTROLS AND PROCEDURES
|
ITEM 10. |
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11. |
EXECUTIVE COMPENSATION
|
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Plan Category
|
(a)
Number of Securities to
be Issued Upon
Exercise of Outstanding
Options, Warrants and
Rights
|
(b)
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights
|
(c)
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation Plans
(Excluding Securities
Reflected in Column (a))
|
|||||||||
Equity Compensation Plans Approved by Shareholders
(1)
|
||||||||||||
Stock options
|
3,419,597
|
$
|
121.31
|
|||||||||
Restricted stock awards
(2)
|
952,672
|
-
|
||||||||||
Subtotal
|
4,372,269
|
9,190,273
|
||||||||||
Equity Compensation Plans Not Approved by Shareholders
|
-
|
-
|
-
|
|||||||||
Total
|
4,372,269
|
$
|
-
|
9,190,273
|
(1) |
Consists of the Amended and Restated 2006 Incentive Plan (no additional equity awards may be granted under this plan) and the 2016 Incentive Plan.
|
(2) |
The weighted-average exercise price is not applicable to restricted stock awards.
|
ITEM 13. |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
|
ITEM 14. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15. |
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(a) |
The following documents are filed as a part of this Annual Report.
|
(1) |
Consolidated Financial Statements:
The following consolidated financial statements are included in Part II, Item 8 of this report.
|
(2) |
Consolidated Valuation and Qualifying Accounts for the Years ended December 31, 2016 , 2015 and 2014
|
(b) |
Exhibits
|
Exhibit No.
|
Description of Exhibit
|
|
(a)
2.1
|
Agreement and Plan of Merger dated as of December 6, 2016, by and among Project Diamond Holdings Corporation, the Company, Dash I, Inc. and Thoma Bravo, LLC, as representative of the stockholders of Project Diamond Holdings Corporation and holders of outstanding options to acquire common stock of Project Diamond Holdings Corporation.
|
|
(b)
3.1
|
Restated Certificate of Incorporation as amended through April 24, 2015.
|
|
(c)
3.2
|
Amended and Restated By-Laws.
|
|
(d)
4.2
|
Indenture between Registrant and SunTrust Bank, dated as of November 28, 2003.
|
|
4.3
|
Form of Debt Securities (included in Exhibit 4.2).
|
|
(e)
4.4
|
First Supplemental Indenture between Registrant and SunTrust Bank, dated as of December 29, 2003.
|
|
(f)
4.5
|
Second Supplemental Indenture between Registrant and SunTrust Bank, dated as of December 7, 2004.
|
|
(g)
4.6
|
Indenture between Registrant and Wells Fargo Bank, dated as of August 4, 2008.
|
|
(h)
4.7
|
Form of Note.
|
|
(i)
4.8
|
Form of 2.05% Senior Notes due 2018.
|
|
(j)
4.9
|
Form of 6.25% Senior Notes due 2019.
|
|
(k)
4.10
|
Form of 1.85% Senior Notes due 2017.
|
|
4.11
|
Form of 3.125% Senior Notes due 2022 (included in Exhibit 4.10).
|
|
(l)
4.12
|
Form of 3.00% Senior Notes due 2020.
|
|
4.13
|
Form of 3.85% Senior Notes due 2025 (included in Exhibit 4.12).
|
|
(m)
4.14
|
Form of 2.800% Senior Notes due 2021.
|
|
4.15
|
Form of 3.800% Senior Notes due 2026 (included in Exhibit 4.14)
|
|
(n)
10.01
|
Form of Amended and Restated Indemnification Agreement.
†
|
|
(o)
10.02
|
Employee Stock Purchase Plan, as amended and restated.
†
|
|
(p)
10.03
|
2000 Stock Incentive Plan, as amended.
†
|
|
(p)
10.04
|
Non-Qualified Retirement Plan, as amended.
†
|
|
(q)
10.05
|
Brian D. Jellison Employment Agreement, dated as of December 29, 2008.
†
|
(r)
10.06
|
Credit Agreement, dated as of September 23, 2016 among Registrant, the foreign subsidiary borrowers from time to time party thereto, the financial institutions party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Wells Fargo Bank, N.A. and Bank of America, N.A. as syndication agents, and The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mizuho Bank, Ltd., PNC Bank, National Association, SunTrust Bank and TD Bank, N.A. as co-documentation agents.
|
|
(s)
10.07
|
Amendment No. 1 to Credit Agreement dated December 2, 2016, to Credit Agreement dated as of September 23, 2016 by and among Registrant, the foreign subsidiary borrowers party thereto from time to time, the lenders party thereto from time to time, JP Morgan Chase Bank, N.A., as Administrative Agent, and the other agents and parties thereto.
|
|
(t)
10.08
|
Form of Executive Officer Restricted Stock Award Agreement. †
|
|
(t)
10.09
|
Brian D. Jellison Restricted Stock Unit Award Agreement. †
|
|
(u)
10.10
|
Offer letter for John Humphrey, dated March 31, 2006. †
|
|
(v)
10.11
|
Amended and Restated 2006 Incentive Plan. †
|
|
(w)
10.12
|
Form of Restricted Stock Agreement for Non-Employee Directors. †
|
|
(w)
10.13
|
Form of Restricted Stock Agreement for Employees. †
|
|
(w)
10.14
|
Form of Non-Statutory Stock Option Agreement. †
|
|
(x)
10.15
|
David B. Liner Retirement Agreement and General Release dated November 18, 2016. †
|
|
(y)
10.16
|
Amendment to John Humphrey offer letter. †
|
|
10.17
|
Offer letter to John K. Stipancich, filed herewith. †
|
|
(z)
10.18
|
Form of director and officer indemnification agreement. †
|
|
(aa)
10.19
|
2016 Stock Incentive Plan. †
|
|
10.20
|
Amendment No. 1 to the 2016 Stock Incentive Plan, filed herewith. †
|
|
10.21
|
Form of Cash Settled Restricted Stock Unit Award Agreement for Non-US Employees, under the 2016 Stock Incentive Plan, filed herewith.†
|
|
10.22
|
Form of Non-Statutory Stock Option Agreement, under the 2016 Stock Incentive Plan, filed herewith. †
|
|
10.23
|
Form of Restricted Stock Award Agreement, under the 2016 Stock Incentive Plan, filed herewith. †
|
|
(bb)
10.24
|
Director Compensation Plan, under 2016 Stock Incentive Plan. †
|
|
10.25
|
Form of Restricted Stock Unit Award Agreement for Non-Employee Directors, under the 2016 Stock Incentive Plan (included in Exhibit 10.24). †
|
|
21.1
|
List of Subsidiaries, filed herewith.
|
|
23.1
|
Consent of Independent Registered Public Accountants, filed herewith.
|
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer, filed herewith.
|
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer, filed herewith.
|
|
32.1
|
Section 1350 Certification of Chief Executive and Chief Financial Officers, filed herewith.
|
|
101.INS
|
XBRL Instance Document, furnished herewith.
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document, filed herewith.
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document, filed herewith.
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document, filed herewith.
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document, filed herewith.
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document, filed herewith.
|
a) |
Incorporated herein by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on December 6, 2016 (file no. 1-12273).
|
|
b)
|
Incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on April 24, 2015 (file no. 1-12273).
|
|
c)
|
Incorporated herein by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed March 14, 2016 (file no. 1-12273).
|
|
d)
|
Incorporated herein by reference to Exhibit 4.2 to the Company's Pre-Effective Amendment No. 1 to the Registration Statement on Form S-3 filed November 28, 2003 (file no. 333-110491).
|
|
e)
|
Incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed January 13, 2004 (file no. 1-12273).
|
|
f)
|
Incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed December 7, 2004 (file no. 1-12273).
|
g)
|
Incorporated herein by reference to Exhibit 4.2 to the Company's Quarterly Report on Form 10-Q filed on November 7, 2008 (file no. 1-12273).
|
|
h)
|
Incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-3/ASR filed November 25, 2015 (file no. 333-208200).
|
|
i)
|
Incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed June 6, 2013 (file no. 1-12273).
|
|
j)
|
Incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed September 2, 2009 (file no. 1-12273).
|
|
k)
|
Incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed November 21, 2012 (file no. 1-12273).
|
|
l)
|
Incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed December 7, 2015 (file no. 1-12273).
|
|
m)
|
Incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed December 19, 2016 (file no. 1-12273).
|
|
n)
|
Incorporated herein by reference to Exhibit 10.04 to the Company's Quarterly Report on Form 10-Q filed August 31, 1999 (file no. 1-12273).
|
|
o)
|
Incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed November 5, 2010 (file no. 1-12273).
|
|
p)
|
Incorporated herein by reference to Exhibit 10.06 to the Company's Annual Report on Form 10-K filed March 2, 2009 (file no. 1-12273).
|
|
q)
|
Incorporated herein by reference to Exhibit 10.07 to the Company's Annual Report on Form 10-K filed March 2, 2009 (file no. 1-12273).
|
|
r)
|
Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed September 23, 2016 (file no. 1-12273).
|
|
s)
|
Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed December 7, 2016 (file no. 1-12273).
|
|
t)
|
Incorporated herein by reference to Exhibits 99.1 and 99.2 to the Company's Current Report on Form 8-K filed December 30, 2004 (file no. 1-12273).
|
|
u)
|
Incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed August 9, 2006 (file no. 1-12273).
|
|
v)
|
Incorporated herein by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A filed April 30, 2012 (file no. 1-12273).
|
|
w)
|
Incorporated herein by reference to Exhibits 10.2, 10.3 and 10.4 to the Company's Current Report on Form 8-K filed December 6, 2006 (file no. 1-12273).
|
|
x)
|
Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed November 23, 2016 (file no. 1-12273).
|
|
y)
|
Incorporated herein by reference to Exhibit 10.01 to the Company's Quarterly Report on Form 10-Q filed May 7, 2009 (file no. 1-12273).
|
|
z)
|
Incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed November 20, 2015 (file no. 1-12273).
|
|
aa)
|
Incorporated by reference to Appendix B to the Company's Definitive Proxy Statement on Schedule 14A filed April 26, 2016 (file no. 1-12273).
|
|
bb)
|
Incorporated by reference to Exhibit 10.2 to the Company's Form 10Q filed August 5, 2016 (file no. 1-12273).
|
|
†
|
Management contract or compensatory plan or arrangement.
|
ITEM 16. |
FORM 10-K SUMMARY
|
|
By:
|
/S/ BRIAN D. JELLISON
|
February 27, 2017
|
|
|
|
Brian D. Jellison, President and Chief Executive Officer
|
|
|
/S/ BRIAN D. JELLISON
|
|
President, Chief Executive Officer and
|
|
Brian D. Jellison
|
|
Chairman of the Board of Directors
|
February 27, 2017
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/S/ JOHN HUMPHREY
|
|
Executive Vice President, Chief Financial Officer
|
|
John Humphrey
|
|
(Principal Financial Officer)
|
February 27, 2017
|
|
|
|
|
/S/ PAUL J. SONI
|
|
Vice President and Controller
|
|
Paul J. Soni
|
|
(Principal Accounting Officer)
|
February 27, 2017
|
|
|
|
|
/S/ AMY WOODS BRINKLEY
|
|||
Amy Woods Brinkley
|
Director
|
February 27, 2017
|
|
/S/ JOHN F. FORT, III
|
|
|
|
John F. Fort, III
|
|
Director
|
February 27, 2017
|
|
|
|
|
/S/ ROBERT D. JOHNSON
|
|
|
|
Robert D. Johnson
|
|
Director
|
February 27, 2017
|
|
|
|
|
/S/ ROBERT E. KNOWLING
|
|
|
|
Robert E. Knowling
|
|
Director
|
February 27, 2017
|
|
|
|
|
/S/ WILBUR J. PREZZANO
|
|
|
|
Wilbur J. Prezzano
|
|
Director
|
February 27, 2017
|
|
|
|
|
/S/ LAURA G. THATCHER
|
|
|
|
Laura G. Thatcher
|
|
Director
|
February 27, 2017
|
/S/ RICHARD F. WALLMAN
|
|||
Richard F. Wallman
|
Director
|
February 27, 2017
|
|
/S/ CHRISTOPHER WRIGHT
|
|||
Christopher Wright
|
Director
|
February 27, 2017
|
|
Name of Subsidiary
|
Jurisdiction of
Incorporation/Organization
|
3089554 Nova Scotia ULC
|
Canada
|
AC Analytical Controls B.V.
|
Netherlands
|
AC Analytical Controls Holding B.V.
|
Netherlands
|
AC Analytical Controls Services B.V.
|
Netherlands
|
Acton Research Corporation
|
Delaware
|
Acumen PM, LLC
|
Texas
|
Aderant Canada Company
|
Canada
|
Aderant Case Management, LLC
|
Delaware
|
Aderant CM, LLC
|
Delaware
|
Aderant CompuLaw, LLC
|
Delaware
|
Aderant CRM, LLC
|
Delaware
|
Aderant DoD, LLC
|
Delaware
|
Aderant Enterprise Holdings, Inc.
|
Delaware
|
Aderant FM, LLC
|
Delaware
|
Aderant Holdings, Inc.
|
Delaware
|
Aderant Imaging, LLC
|
Delaware
|
Aderant International Holdings, Inc.
|
Delaware
|
Aderant Legal Holdings, Inc.
|
Delaware
|
Aderant Legal Holdings (AUS) Pty Ltd
|
Australia
|
Aderant Legal Holdings (NZ) ULC
|
New Zealand
|
Aderant Legal (UK) Limited
|
United Kingdom
|
Aderant North America, Inc.
|
Florida
|
Aderant Parent Holdings, Inc.
|
Delaware
|
Aderant RainMaker, LLC
|
Delaware
|
Aderant Redwood, LLC
|
Delaware
|
Advanced Sensors Limited
|
United Kingdom
|
Alpha Holdings of Delaware I LLC
|
Delaware
|
Alpha Holdings of Delaware II LLC
|
Delaware
|
Alpha Technologies B.V.
|
Netherlands
|
Alpha Technologies GmbH
|
Germany
|
Alpha Technologies Japan LLC
|
Delaware
|
Alpha Technologies Services LLC
|
Delaware
|
Alpha Technologies U.K.
|
United Kingdom
|
Alpha Technologies, s.r.o.
|
Czech Republic
|
Alpha UK Holdings LLC
|
Delaware
|
Amot Controls Corporation
|
Delaware
|
Amot Controls GmbH
|
Germany
|
Amot/Metrix Investment Company, Inc.
|
Delaware
|
Amphire Solutions, Inc.
|
Delaware
|
Amtech Systems (Hong Kong) Limited
|
Hong Kong
|
Amtech Systems, LLC
|
Delaware
|
Amtech World Corporation
|
Delaware
|
Ascension Technology Corporation
|
Delaware
|
Atlantic Health Partners, Inc.
|
Delaware
|
Atlas Database Software Corp.
|
California
|
Atlas Healthcare Software India Private Limited
|
India
|
Axium Holdco, Inc.
|
Delaware
|
BidClerk, Inc.
|
Delaware
|
Bid News Construction Reports LLC
|
Oklahoma
|
CBORD Holdings Corp.
|
Delaware
|
CDC Publishing, LLC
|
Delaware
|
Centurion Research Solutions, LLC
|
Virginia
|
Civco Holding, Inc.
|
Delaware
|
Civco Medical Instruments Co., Inc.
|
Iowa
|
CIVCO Medical Solutions B.V.
|
Netherlands
|
Clinisys Group Limited
|
United Kingdom
|
Clinisys Scotland Limited
|
United Kingdom
|
Clinisys Solutions Limited
|
United Kingdom
|
CMD Holdco, Inc.
|
Delaware
|
Compressor Controls (Beijing) Corporation Ltd.
|
China
|
Compressor Controls Corporation
|
Iowa
|
Compressor Controls Corporation B.V.
|
Netherlands
|
Compressor Controls Corporation Middle East
|
Delaware
|
Compressor Controls Corporation S.r.l.
|
Italy
|
Compressor Controls Mauritius Ltd.
|
Mauritius
|
Compressor Controls Pty Ltd.
|
Australia
|
Construction Datafax, Inc.
|
Alabama
|
Construction Market Data Group Inc.
|
Canada
|
Construction Market Data Group LLC
|
Delaware
|
Cornell Pump Company
|
Delaware
|
Cornell Pump Europe GmbH
|
Germany
|
C/S Solutions, Inc.
|
California
|
DAP Technologies Corp.
|
Delaware
|
DAP Technologies Limited
|
United Kingdom
|
DAP Technologies LTD
|
Canada
|
Dash I, Inc.
|
Delaware
|
DAT Solutions, LLC
|
Delaware
|
Data Innovations LLC
|
Delaware
|
Data Innovations Cooperatief U.A.
|
Netherlands
|
Data Innovations Europe S.A.
|
Belgium
|
Data Innovations Latin America Ltda
|
Brazil
|
Dawning Technologies, LLC
|
Delaware
|
DCMH Group Holdings, Inc.
|
Delaware
|
DCMH Group Holdings, LLC
|
Delaware
|
DCMH Holdings, Inc.
|
Delaware
|
Deltek Asia Pacific (HK) Limited
|
Hong Kong
|
Deltek Australia Pty Ltd.
|
Australia
|
Deltek Belgie BVBA
|
Belgium
|
Deltek Danmark A/S
|
Denmark
|
Deltek France SAS
|
France
|
Deltek GB Limited
|
United Kingdom
|
Deltek GmbH
|
Germany
|
Deltek Holdings Limited
|
United Kingdom
|
Deltek, Inc.
|
Delaware
|
Deltek Nederland B.V.
|
Netherlands
|
Deltek Netherlands B.V.
|
Netherlands
|
Deltek Norge AS
|
Norway
|
Deltek Systems (Canada), Inc.
|
Canada
|
Deltek Systems (Colorado) Inc.
|
Wyoming
|
Deltek Systems (Philippines) Ltd.
|
Virginia
|
Deltek Systems (UK) Ltd.
|
United Kingdom
|
Deltek Sverige AB
|
Sweden
|
Deltek UK Limited
|
United Kingdom
|
Deltek US, Inc.
|
Delaware
|
Deltek WST LLC
|
Texas
|
DI Acquisition Subsidiary, Inc.
|
Delaware
|
DI Dutch Holdings LLC
|
Delaware
|
DI Hong Kong Limited
|
Hong Kong
|
Dynamic Instruments, Inc.
|
California
|
Dynisco Enterprises GmbH
|
Germany
|
Dynisco Enterprises, LLC
|
Delaware
|
Dynisco Europe GmbH
|
Germany
|
Dynisco Holding GmbH
|
Germany
|
Dynisco Hong Kong Holdings, Limited
|
Hong Kong
|
Dynisco Instruments LLC
|
Delaware
|
Dynisco Instruments S.a.r.l.
|
France
|
Dynisco LLC
|
Delaware
|
Dynisco Parent, Inc.
|
Delaware
|
Dynisco S.r.l.
|
Italy
|
Dynisco Shanghai Sensor and Instrument Co., Ltd.
|
China
|
Dynisco –Viatran (M) Sdn Bhd
|
Malaysia
|
Dynisco Viatran LLC
|
Delaware
|
Dynisco-Viatran Instrument Sdn Bhd
|
Malaysia
|
Fluid Metering, Inc.
|
Delaware
|
FMS Purchasing & Services, Inc.
|
Florida
|
Foodlink Holdings, Inc.
|
California
|
Foodlink IT India Private Limited
|
India
|
Fresco Automation & IT Consultancy
|
Belgium
|
FSI Holdings, Inc.
|
Virginia
|
FTI Flow Technology, Inc.
|
Delaware
|
Gatan GmbH
|
Germany
|
Gatan Inc.
|
Pennsylvania
|
Gatan Service Corporation
|
Pennsylvania
|
GeneInsight, Inc.
|
Delaware
|
Getloaded Corporation
|
Delaware
|
Guangzhou MEDTEC Medical Device Co., Ltd
|
China
|
Hansco Automatisering B.V.
|
Netherlands
|
Hansen Technologies Corporation
|
Illinios
|
Hansen Technologies Europe GmbH
|
Germany
|
Harbour Holding Corp.
|
Delaware
|
Hardy Process Solutions
|
California
|
Horizon Software International, LLC
|
Georgia
|
HRsmart Canada Inc.
|
Canada
|
HRsmart Czech Republic
|
Czech Republic
|
HRsmart France SAS
|
France
|
HRsmart Germany GmbH
|
Germany
|
HRsmart, Inc.
|
Delaware
|
HRsmart International
|
Cayman Islands
|
HRsmart International Holdings LLC
|
Texas
|
HRsmart Mexico
|
Mexico
|
HRsmart Philippines
|
Philippines
|
HRsmart SA (Pty) Ltd.
|
South Africa
|
HRsmart Talent Management Solutions Europe Limited
|
United Kingdom
|
HRsmart Ventures LLC
|
Texas
|
Innovative Product Achievements, LLC
|
Delaware
|
Inovonics Corporation
|
Colorado
|
INPUT, Inc.
|
Delaware
|
Input Limited
|
United Kingdom
|
Input S.A.R.L.
|
France
|
Instill Corporation
|
Delaware
|
Integrated Designs, L.P.
|
Delaware
|
Intellitrans Canada Ltd.
|
Canada
|
IntelliTrans Limited
|
United Kingdom
|
Intellitrans Sweden AB
|
Sweden
|
Intellitrans, LLC
|
Delaware
|
IPA Acquisition Subsidiary, Inc.
|
Delaware
|
ISL Finance SAS
|
France
|
ISL Holding, SAS
|
France
|
ISL Scientifique de Laboratorie - ISL, S.A.S.
|
France
|
iSqFt Holdings, Inc.
|
Delaware
|
iSqFt, Inc.
|
Delaware
|
iSqFt Parent Corporation
|
Delaware
|
iSqFt Sub, Inc.
|
Delaware
|
IT Canada Holdings, LLC
|
Delaware
|
iTradenetwork Limited
|
United Kingdom
|
iTradeNetwork, Inc.
|
Delaware
|
Job Access LTDA
|
Brazil
|
K/S Roper Finance
|
Denmark
|
K/S Roper Holding
|
Denmark
|
K/S Roper Investments
|
Denmark
|
Link Logistics Holding LLC
|
Delaware
|
Logitech Limited
|
United Kingdom
|
Lumenera Corporation
|
Canada
|
Managed Health Care Associates, Inc.
|
Delaware
|
Marumoto Struers K.K.
|
Japan
|
Med Group I, Inc.
|
Delaware
|
MED Group Parent, Inc.
|
Delaware
|
Med Holdings, LLC
|
Delaware
|
Med Operating, LLC
|
Delaware
|
Media Cybernetics, Inc.
|
Delaware
|
Medical Equipment Distributors II, L.P.
|
Texas
|
Medical Equipment Distributors, Inc.
|
Delaware
|
Medical Information Professional Systems GmbH
|
Germany
|
Medical Information Professional Systems NV
|
Belgium
|
MEDTEC, Inc.
|
Iowa
|
Metrix Instrument Co., L.P.
|
Delaware
|
MHA Long Term Care Network, Inc.
|
Delaware
|
MIPS Austria GesmbH
|
Austria
|
MIPS CZ s.r.o
|
Czech Republic
|
MIPS Deutschland GmbH & Co. KG
|
Germany
|
MIPS Deutschland Holding GmbH
|
Germany
|
MIPS France Sarl
|
France
|
MIPS Schweiz AG
|
Switzerland
|
MIPS Software Iberica SL
|
Spain
|
MPR Readers Inc.
|
Delaware
|
mySBX Corporation
|
Delaware
|
Navigator Group Purchasing, Inc.
|
Tennessee
|
NDI Europe GmbH
|
Germany
|
Neptune Technology Group (Canada) Limited
|
Canada
|
Neptune Technology Group Inc.
|
Delaware
|
Neptune Technology Group Mexico S.de R.L. de C.V.
|
Mexico
|
Neptune Technology Group Mexico Services S. de R.L. de C.V.
|
Mexico
|
Neptune Technology Group Services Inc.
|
Delaware
|
Nippon Roper K.K.
|
Japan
|
Northern Digital Inc.
|
Canada
|
Novient, Inc.
|
Georgia
|
Off-Campus Advantage, LLC
|
Delaware
|
Omega Legal Systems, Inc.
|
Arizona
|
On Center Holdings, Inc.
|
Delaware
|
On Center Intermediate Holdings, Inc.
|
Delaware
|
On Center Software, Inc.
|
Texas
|
PAC Denmark ApS
|
Netherlands
|
PAC GmbH
|
Germany
|
PAC Instruments Asia PTE. Ltd.
|
Singapore
|
PAC (Shanghai) Co. Ltd.
|
China
|
PB Bidco Limited
|
United Kingdom
|
PB Holdco Limited
|
United Kingdom
|
PB Midco Limited
|
United Kingdom
|
PB Topco Limited
|
United Kingdom
|
Petroleum Analyzer Company L.P.
|
Delaware
|
PGP UK Limited
|
Scotland
|
Project Diamond Intermediate Holdings Corporation
|
Delaware
|
QSC 1208 Limited
|
United Kingdom
|
QSC 1209 Limited
|
United Kingdom
|
Quantitative Imaging Corporation
|
Canada
|
Rebate Tracking Group, LLC
|
Florida
|
Redlake MASD, LLC
|
Delaware
|
RF IDeas, Inc.
|
Delaware
|
RI Marketing India Private Limited
|
India
|
RIL Holding Limited
|
United Kingdom
|
RMT, Inc.
|
Arizona
|
Roda Deaco Valve Inc.
|
Canada
|
Roper Brasil Comercio E Promocao De Productos E Servicos LTDA
|
Brazil
|
Roper Canada Finance LP
|
Canada
|
Roper Canada Holdings, Inc.
|
Canada
|
Roper Canada Holdings LP
|
Canada
|
Roper Canada Partners, Inc.
|
Canada
|
Roper Capital Deutschland GmbH
|
Germany
|
Roper Canada UK Limited
|
United Kingdom
|
Roper Denmark UK Limited
|
United Kingdom
|
Roper DK Sub Sarl
|
Luxembourg
|
Roper Engineering s.r.o.
|
Czech Republic
|
Roper Europe GmbH
|
Germany
|
Roper Finance Sarl & Co. KG
|
Germany
|
Roper Finance Scot LP
|
Scotland
|
Roper Germany GmbH
|
Germany
|
Roper Germany GmbH & Co. KG
|
Germany
|
Roper Germany UK Limited
|
United Kingdom
|
Roper GM Denmark Holdings ApS
|
Denmark
|
Roper Holdings Limited
|
United Kingdom
|
Roper Holdings, Inc.
|
Delaware
|
Roper Industrial Holdings LLC
|
Delaware
|
Roper Industrial Products Investment Company
|
Iowa
|
Roper Industries, Inc.
|
Delaware
|
Roper Industries Denmark ApS
|
Denmark
|
Roper Industries Deutschland GmbH
|
Germany
|
Roper Industries L.P.
|
Canada
|
Roper Industries Limited
|
United Kingdom
|
Roper Industries Manufacturing (Shanghai) Co., Ltd.
|
China
|
Roper Industries Mauritius Ltd.
|
Mauritius
|
Roper Industries UK Limited
|
United Kingdom
|
Roper International Holding, Inc.
|
Delaware
|
Roper LLC
|
Russian Federation
|
Roper Lux Sub S.a.r.l
|
Luxembourg
|
Roper Luxembourg Finance S.a.r.l.
|
Luxembourg
|
Roper Luxembourg Holdings S.a.r.l.
|
Luxembourg
|
Roper Luxembourg S.a.r.l.
|
Luxembourg
|
Roper Luxembourg UK Holdings S.a.r.l.
|
Luxembourg
|
Roper Middle East Ltd.
|
Dubai (FZE)
|
Roper Pump Company
|
Delaware
|
Roper Scientific B.V.
|
Netherlands
|
Roper Scientific GmbH
|
Germany
|
Roper Scientific SAS
|
France
|
Roper Scientific, Inc.
|
Delaware
|
Roper Scot LP
|
United Kingdom
|
Roper Southeast Asia LLC
|
Delaware
|
Roper UK Investments Limited
|
United Kingdom
|
Roper UK, Ltd.
|
United Kingdom
|
Roper-Mex, L.P.
|
Delaware
|
Ropintassco 1, LLC
|
Delaware
|
Ropintassco 2, LLC
|
Delaware
|
Ropintassco 3, LLC
|
Delaware
|
Ropintassco 4, LLC
|
Delaware
|
Ropintassco 5, LLC
|
Delaware
|
Ropintassco 6, LLC
|
Delaware
|
Ropintassco 7, LLC
|
Delaware
|
Ropintassco Holdings, L.P.
|
Delaware
|
RT Merger Sub, Inc.
|
Delaware
|
Shanghai Roper Industries Trading Co., Ltd.
|
China
|
SHP Group Holdings, Inc.
|
Delaware
|
Sinmed Holding International B.V.
|
Netherlands
|
SIRA, LLC
|
Delaware
|
Societe de Distribution de Logiciels Medicaux
|
France
|
SoftWriters, Inc.
|
Delaware
|
Softwriters Holdings, Inc.
|
Delaware
|
Sohnar, Inc.
|
Delaware
|
Sohnar Limited
|
United Kingdom
|
Sohnar Pty Ltd
|
Australia
|
Star Purchasing Services, LLC
|
Wisconsin
|
Strata Acquisition Subsidiary, Inc.
|
Delaware
|
Strata Decision Technology Holdings LLC
|
Delaware
|
Strata Decision Technology LLC
|
Illinios
|
Strata Parallel II Inc.
|
Delaware
|
Strategic Healthcare Programs Blocker LLC
|
Delaware
|
Strategic Healthcare Programs Blocker 2, Inc.
|
Delaware
|
Strategic Healthcare Programs, L.L.C.
|
Delaware
|
Strategic Healthcare Programs Holdings, LLC
|
Delaware
|
Struers (Shanghai) International Trading Ltd.
|
China
|
Struers A/S
|
Denmark
|
Struers GmbH
|
Germany
|
Struers Inc.
|
Delaware
|
Struers Limited
|
United Kingdom
|
Struers Limited
|
Canada
|
Struers SAS
|
France
|
Student Advantage, LLC
|
Delaware
|
Sunquest Europe Limited
|
United Kingdom
|
Sunquest Holdings, Inc.
|
Delaware
|
Sunquest Information Systems (Europe) Limited
|
United Kingdom
|
Sunquest Information Systems (India) Private Limited
|
India
|
Sunquest Information Systems (International) Limited
|
United Kingdom
|
Sunquest Information Systems Canada, Inc.
|
Canada
|
Sunquest Information Systems, Inc.
|
Pennsylvania
|
Taupo Holdings, Inc.
|
Delaware
|
Technolog Group Limited
|
United Kingdom
|
Technolog Holdings Ltd.
|
United Kingdom
|
Technolog Limited
|
United Kingdom
|
Technolog SARL
|
France
|
Telomere Inc.
|
Delaware
|
The CBORD Group, Inc.
|
Delaware
|
The Tidewater Healthcare Shared Services Group, Inc.
|
Pennsylvania
|
The Washington Management Group, Inc.
|
District of Columbia
|
TLP Holdings, LLC
|
Delaware
|
Transcore Atlantic, Inc.
|
Delaware
|
Transcore CNUS, Inc.
|
Delaware
|
Transcore Holdings, Inc.
|
Delaware
|
Transcore ITS, LLC
|
Delaware
|
Transcore Link Logistics Corporation
|
Canada
|
Transcore Nova Scotia Corporation
|
Canada
|
Transcore Partners, LLC
|
Delaware
|
Transcore Quebec Corporation Inc.
|
Canada
|
TransCore Transportation Solutions India Private Limited
|
India
|
TransCore Transportation Systems Mauritius Private Limited
|
Mauritius
|
Transcore, LP
|
Delaware
|
Trinity Integrated Systems Limited
|
United Kingdom
|
UHF Purchasing Services, LLC
|
Delaware
|
United Controls Group, Inc.
|
Ohio
|
Uson L.P.
|
Delaware
|
Uson Limited
|
United Kingdom
|
Utilitec Limited
|
United Kingdom
|
Utilitec Services Limited
|
United Kingdom
|
Utility Data Services Limited
|
United Kingdom
|
Verathon Holdings (Delaware) Inc.
|
Delaware
|
Verathon Inc.
|
Washington
|
Verathon Medical (Australia) Pty Limited
|
Australia
|
Verathon Medical (Canada) ULC
|
Canada
|
Verathon Medical (Europe) B.V.
|
Netherlands
|
Verathon Medical (France) SARL
|
France
|
Verathon Medical (Hong Kong) Limited
|
Hong Kong
|
Verathon Medical (Japan) K.K.
|
Japan
|
Verathon Medical (UK) Ltd.
|
United Kingdom
|
Verathon Medical Inc.
|
Washington
|
Viastar Services, LP
|
Texas
|
Viatran Corporation
|
New York
|
Walter Herzog GmbH
|
Germany
|
XTS Software Corporation
|
Oregon
|
Zetec (Shanghai) Co., Ltd.
|
China
|
Zetec France
|
France
|
Zetec Korea, Inc.
|
Delaware
|
Zetec Rental LLC
|
Delaware
|
Zetec Services, Inc.
|
Delaware
|
Zetec, Inc.
|
Washington
|
o
|
Your base salary will be $620,000 per year. Your performance will be measured and reviewed on an annual basis. The first such review will be during the first quarter of 2017.
|
o
|
Your annual bonus opportunity will be up to 100% of your annual base salary, with the payment based upon Company performance. Any bonus earned for 2016 will be paid no later than March 15, 2017.
|
o
|
A $375,000 one-time payment (less applicable withholdings) will be provided once you have formally commenced employment with the Company. If you voluntarily terminate your employment with the Company before the end of two full years of employment, you must repay a pro-rated portion of the one-time payment to the Company.
|
o
|
Stock Options
: You will receive an option to purchase 18,000 shares of Roper common stock with an exercise price not less than the fair market value of a share as of the grant date, and that will be scheduled to vest 50% on June 30, 2018, and the remaining 50% will vest on June 30, 2019, subject to your continued employment with the Company through each such vesting date.
|
o
|
Restricted Shares:
You will receive 12,000 restricted shares of Roper common stock, which vest contingent on the Company attaining specific, pre-determined and objective performance goals, as certified by the Compensation Committee. If the goals are obtained, 1/3 of the shares will vest on November 30, 2017, 1/3 of the shares will vest on November 30, 2018 and the remaining 1/3 on November 30, 2019, subject to your continued employment with the Company through each such vesting period.
|
o
|
You will be eligible for all Company employee benefits available to Roper's corporate officers including disability, health, dental, vision, life insurance, Non-Qualified Deferred Contribution Plan, and a 401(k) Plan. The Company currently makes base and matching contributions of up 4.5%, as well as a 3% profit-sharing contribution as part of the 401(k) plan subject to participation. Details of these and other benefits will be provided in materials that will be sent to you. Coverage will commence on your start date with Roper to the extent permitted under the applicable plans.
|
o
|
Customary vacation, holidays and sick leave and business and professional expense reimbursement will be provided as per Company policy.
|
o
|
Roper will provide $1,600 per month (taxable income) as a car allowance under its corporate program.
|
o
|
Real estate commission of up to 6% on the sale of your Milton, GA home and reasonable and customary seller's closing cost on the sale of your Milton, GA home
|
o
|
Shipment of household goods
|
o
|
Reasonable and customary closing costs for the purchase of a home in the Sarasota area
|
o
|
Lump sum payment of $25,000 ( ̴1/2 months' salary, less applicable tax withholdings) to assist with miscellaneous expenses associated with the relocation
|
o
|
If Roper terminates your employment without Cause (as used herein, "Cause" shall mean gross neglect of duty, prolonged absence from duty without the consent of the Company, intentionally engaging in any activity that is in conflict with or adverse to the business or other interests of the Company, or willful misconduct, misfeasance or malfeasance of duty which is reasonably determined to be detrimental to the Company), you will be entitled to receive one year of severance equal to your then-current monthly base salary, plus a pro-rated bonus, based upon Company performance, and one year of medical benefits coverage. All of these payments will be provided in a lump sum payment, less applicable withholdings.
|
Percentage of Shares
|
Vesting Date
|
ROPER TECHNOLOGIES, INC.
By: ____________________________________________
Its: President and Chief Executive Officer
|
Grant Date: _______________
Accepted by Grantee: __________________________
|
(a) |
as to the percentages of the Units specified on the cover page hereof, on the respective Vesting Dates specified on the cover page hereof; provided Grantee is then still employed by the Company or an Affiliate, or
|
(b) |
the termination of Grantee's termination of employment by reason of death or Disability or, with the consent of the Committee, Grantee's Retirement.
|
Continuous Status as a Participant
after Grant Date
|
Percent of Option Shares Vested
|
ROPER TECHNOLOGIES, INC.
By:
Its: President and Chief Executive Officer
|
Grant Date: ____________________
|
Continuous Status as a Participant
after Grant Date
|
Percent of Shares Vested
|
ROPER TECHNOLOGIES, INC.
By: __________________
Its: President and Chief Executive Officer
|
Grant Date:
____________________
|
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: February 27, 2017
|
/s/ Brian D. Jellison
|
|
Brian D. Jellison
|
|
Chairman of the Board, President and
|
|
Chief Executive Officer
|
(Principal 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: February 27, 2017
|
/s/ John Humphrey
|
|
John Humphrey
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
(Principal Financial Officer) |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; 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: February 27, 2017
|
/s/ Brian D. Jellison
|
|
|
Brian D. Jellison
|
|
|
Chairman of the Board, President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ John Humphrey
|
|
|
John Humphrey
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|