|
þ ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
¨ TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
51-0263969
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
Name
of Each Exchange
|
||
Title
of Each Class
|
On
Which Registered
|
|
Common
Stock, $0.01 Par Value
|
New
York Stock Exchange
|
PART
I
|
||
Item
1.
|
Business
|
3
|
Item
1A.
|
Risk
Factors
|
7
|
Item
1B.
|
Unresolved
Staff Comments
|
11
|
Item
2.
|
Properties
|
11
|
Item
3.
|
Legal
Proceedings
|
11
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
11
|
PART
II
|
||
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
12
|
Item
6.
|
Selected
Financial Data
|
14
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
15
|
Item
7A.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
24
|
Item
8.
|
Financial
Statements and Supplementary Data
|
25
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
53
|
Item
9A.
|
Controls
and Procedures
|
53
|
Item
9B.
|
Other
Information
|
53
|
PART
III
|
||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
54
|
Item
11.
|
Executive
Compensation
|
54
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
54
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
54
|
Item
14.
|
Principal
Accountant Fees and Services
|
54
|
PART
IV
|
||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
55
|
Signatures
|
57
|
·
|
general
economic conditions;
|
·
|
difficulty
making acquisitions and successfully integrating acquired
businesses;
|
·
|
any
unforeseen liabilities associated with future
acquisitions;
|
·
|
limitations
on our business imposed by our
indebtedness;
|
·
|
unfavorable
changes in foreign exchange rates;
|
·
|
difficulties
associated with exports;
|
·
|
risks
and costs associated with our international sales and
operations;
|
·
|
increased
directors’ and officers’ liability and other insurance
costs;
|
·
|
risk
of rising interest rates;
|
·
|
product
liability and insurance risks;
|
·
|
increased
warranty exposure;
|
·
|
future
competition;
|
·
|
the
cyclical nature of some of our
markets;
|
·
|
reduction
of business with large customers;
|
·
|
risks
associated with government
contracts;
|
·
|
changes
in the supply of, or price for, raw materials, parts and
components;
|
·
|
environmental
compliance costs and liabilities;
|
·
|
risks
and costs associated with asbestos-related
litigation;
|
·
|
potential
write-offs of our substantial intangible
assets;
|
·
|
our
ability to successfully develop new
products;
|
·
|
failure
to protect our intellectual
property;
|
·
|
economic
disruption caused by terrorist attacks, health crises or other unforeseen
events; and
|
·
|
the
factors discussed in Item 1A to this Annual Report under the heading “Risk
Factors.”
|
ITEM
1.
|
BUSINESS
|
|
·
|
place
us at a competitive disadvantage relative to our competitors, some of
which have lower debt service obligations and greater financial resources
than us;
|
|
·
|
limit
our ability to borrow additional
funds;
|
|
·
|
limit
our ability to complete future
acquisitions;
|
|
·
|
limit
our ability to pay dividends;
|
|
·
|
limit
our ability to make capital expenditures;
and
|
|
·
|
increase
our vulnerability to general adverse economic and industry
conditions.
|
|
·
|
unfavorable
changes in or noncompliance with U.S. and other jurisdictions’ export
requirements;
|
|
·
|
restrictions
on the export of technology and related
products;
|
|
·
|
unfavorable
changes in or noncompliance with U.S. and other jurisdictions’ export
policies to certain countries;
|
|
·
|
unfavorable
changes in the import policies of our foreign markets;
and
|
|
·
|
a
general economic downturn in our foreign
markets.
|
|
·
|
adverse
changes in a specific country’s or region’s political or economic
conditions, particularly in emerging
markets;
|
|
·
|
trade
protection measures and import or export
requirements;
|
|
·
|
trade
liberalization measures which could expose our international operations to
increased competition;
|
|
·
|
subsidies
or increased access to capital for firms that are currently, or may emerge
as, competitors in countries in which we have
operations;
|
|
·
|
partial
or total expropriation;
|
|
·
|
potentially
negative consequences from changes in tax
laws;
|
|
·
|
difficulty
in staffing and managing widespread
operations;
|
|
·
|
differing
labor regulations;
|
|
·
|
differing
protection of intellectual
property;
|
|
·
|
unexpected
changes in regulatory requirements;
|
|
·
|
longer
payment cycles of foreign customers and difficulty in collecting
receivables in foreign jurisdictions;
and
|
|
·
|
international
sentiment towards the U.S.
|
Segment
|
Region
|
Office
|
Office
& Manufacturing
|
||
Leased
|
Leased
|
Owned
|
|||
Industrial
Technology
|
(amounts
in thousands of square feet)
|
||||
US
|
42
|
231
|
579
|
||
Canada
|
36
|
-
|
-
|
||
Europe
|
39
|
88
|
485
|
||
Asia
|
9
|
-
|
-
|
||
Mexico
|
-
|
60
|
-
|
||
Energy
Systems & Controls
|
|||||
US
|
-
|
292
|
-
|
||
Canada
|
-
|
43
|
-
|
||
Europe
|
13
|
37
|
128
|
||
Asia
|
6
|
46
|
34
|
||
Scientific
& Industrial Imaging
|
|||||
US
|
192
|
212
|
127
|
||
Canada
|
-
|
93
|
-
|
||
Europe
|
6
|
21
|
-
|
||
RF
Technology
|
|||||
US
|
692
|
142
|
-
|
||
Canada
|
11
|
-
|
-
|
||
Europe
|
-
|
3
|
16
|
ITEM
3.
|
LEGAL
PROCEEDINGS
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF
SECURITY-HOLDERS
|
ITEM
5.
|
MARKET
FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
|
High
|
Low
|
Cash
Dividends Declared
|
||
2009
|
4th
Quarter
|
$
55.04
|
$
47.50
|
$ 0.0950
|
3rd
Quarter
|
53.05
|
42.27
|
0.0825
|
|
2nd
Quarter
|
47.99
|
41.03
|
0.0825
|
|
1st
Quarter
|
45.73
|
36.96
|
0.0825
|
|
2008
|
4th
Quarter
|
$
54.66
|
$
35.19
|
$ 0.0825
|
3rd
Quarter
|
65.49
|
54.75
|
0.0725
|
|
2nd
Quarter
|
67.70
|
59.39
|
0.0725
|
|
1st
Quarter
|
61.01
|
50.05
|
0.0725
|
12/31/04
|
12/31/05
|
12/31/06
|
12/31/07
|
12/31/08
|
12/31/09
|
|
Roper
Industries, Inc.
|
100.00
|
130.54
|
166.87
|
208.67
|
145.63
|
177.00
|
S&P
500
|
100.00
|
104.91
|
121.48
|
128.16
|
80.74
|
102.11
|
S&P
500 Industrials
|
100.00
|
102.33
|
115.93
|
129.87
|
78.02
|
94.35
|
Years
ended December 31,
|
||||||||||||||||
2009(1)
|
2008(2)
|
2007(3)
|
2006(4)
|
2005(5)
|
||||||||||||
Operations
data:
|
||||||||||||||||
Net
sales
|
$
|
2,049,668
|
$
|
2,306,371
|
$
|
2,102,049
|
$
|
1,700,734
|
$
|
1,453,731
|
||||||
Gross
profit
|
1,043,138
|
1,188,288
|
1,058,395
|
861,325
|
726,407
|
|||||||||||
Income
from operations
|
395,396
|
486,161
|
438,354
|
337,653
|
264,899
|
|||||||||||
Net
earnings
|
239,481
|
281,874
|
245,705
|
189,285
|
149,407
|
|||||||||||
Per
share data:
|
||||||||||||||||
Basic
earnings per share
|
$
|
2.64
|
$
|
3.15
|
$
|
2.78
|
$
|
2.18
|
$
|
1.75
|
||||||
Diluted
earnings per share
|
2.58
|
3.01
|
2.64
|
2.08
|
1.70
|
|||||||||||
Dividends
declared
|
0.34
|
0.30
|
0.27
|
0.24
|
0.22
|
|||||||||||
Balance
sheet data:
|
||||||||||||||||
Working
capital(6)
|
$
|
392,734
|
$
|
239,400
|
$
|
291,047
|
$
|
53,946
|
$
|
12,895
|
||||||
Total
assets
|
4,327,736
|
3,971,538
|
3,453,184
|
2,995,359
|
2,522,306
|
|||||||||||
Long-term
debt, less current portion
|
1,040,962
|
1,033,689
|
727,489
|
726,881
|
620,958
|
|||||||||||
Stockholders’
equity
|
2,421,490
|
2,003,934
|
1,794,643
|
1,496,004
|
1,262,992
|
(1)
|
Includes
results from the acquisitions of United Toll Systems, LLC. from October
30, 2009 and Verathon, Inc. from December 3,
2009.
|
(2)
|
Includes
results from the acquisitions of CBORD Holdings Corp. from February 20,
2008, Chalwyn Ltd. from June 18, 2008, Getloaded.com, LLC from July 17,
2008, Horizon Software Holdings, Inc. from August 27, 2008 and Technolog
Holdings Ltd. from September 10,
2008.
|
(3)
|
Includes
results from the acquisitions of JLT Mobile Computers, Inc. from February
21, 2007, DJ Instruments from February 28, 2007, Roda Deaco Valve, Ltd.
from March 22, 2007, Dynamic Instruments, Inc. from June 21, 2007, and
Black Diamond Advanced Technology, LLC from September 24,
2007.
|
(4)
|
Includes
results from the acquisitions of Sinmed Holding International BV from
April 5, 2006, Intellitrans, LLC from April 26, 2006, Lumenera Corporation
from July 25, 2006, AC Analytic Controls BV from August 8, 2006 and
Dynisco Parent, Inc. from November 30,
2006.
|
(5)
|
Includes
results from the acquisitions of Inovonics Corporation from February 25,
2005, CIVCO Holding, Inc. from June 17, 2005 and MEDTEC, Inc. from
November 30, 2005.
|
(6)
|
Includes our 3.75% senior
subordinated convertible notes, net of debt discount, required to be
classified as short-term debt, based upon the triggering of the conversion
feature of the notes due to increases in the trading price of the
Company’s stock.
|
Years
ended December 31,
|
||||||||||
2009
|
2008
|
2007
|
||||||||
Net
sales
|
||||||||||
Industrial
Technology
|
$
|
536,219
|
$
|
687,622
|
$
|
644,436
|
||||
Energy
Systems and Controls(1)
|
440,919
|
548,214
|
516,420
|
|||||||
Scientific
and Industrial Imaging(2)
|
354,776
|
375,542
|
376,163
|
|||||||
RF
Technology(3)
|
717,754
|
694,993
|
565,030
|
|||||||
Total
|
$
|
2,049,668
|
$
|
2,306,371
|
$
|
2,102,049
|
||||
Gross
profit:
|
||||||||||
Industrial
Technology
|
47.6
|
%
|
48.5
|
%
|
48.2
|
%
|
||||
Energy
Systems and Controls
|
53.1
|
53.8
|
53.6
|
|||||||
Scientific
and Industrial Imaging
|
56.5
|
55.0
|
54.9
|
|||||||
RF
Technology
|
49.3
|
50.8
|
46.8
|
|||||||
Total
|
50.9
|
51.5
|
50.4
|
|||||||
Operating
profit:
|
||||||||||
Industrial
Technology
|
23.1
|
%
|
25.9
|
%
|
25.6
|
%
|
||||
Energy
Systems and Controls
|
21.0
|
23.1
|
24.5
|
|||||||
Scientific
and Industrial Imaging
|
20.9
|
19.9
|
19.5
|
|||||||
RF
Technology
|
21.5
|
23.0
|
20.7
|
|||||||
Total
|
21.7
|
23.4
|
22.9
|
|||||||
Corporate
administrative expenses
|
(2.4
|
)%
|
(2.3
|
)%
|
(2.0
|
)%
|
||||
Income
from continuing operations
|
19.3
|
21.1
|
20.9
|
|||||||
Interest
expense
|
(2.9
|
)
|
(2.6
|
)
|
(2.9
|
)
|
||||
Loss
on extinguishment of debt
|
-
|
(0.1
|
)
|
-
|
||||||
Other
income/(expense)
|
0.2
|
0.2
|
(0.1
|
)
|
||||||
Income
from continuing operations before taxes
|
16.6
|
18.6
|
17.9
|
|||||||
Income
taxes
|
(4.9
|
)
|
(6.4
|
)
|
(6.2
|
)
|
||||
Net
earnings
|
11.7
|
%
|
12.2
|
%
|
11.7
|
%
|
(1)
|
Includes
results from the acquisitions of Tech-Pro from March 20, 2008, Chalwyn
from June 18, 2008, DJ Instruments from February 28, 2007, Roda Deaco from
March 22, 2007, Dynamic Instruments from June 21, 2007, AC Controls from
August 8, 2006 and Dynisco from November 30,
2006.
|
(2)
|
Includes
results from the acquisitions of Verathon from December 3, 2009 and JLT
from February 21, 2007.
|
(3)
|
Includes
results from the acquisitions of UTS from October 30, 2009, CBORD from
February 20, 2008, Getloaded from July 17, 2008, Horizon from August 27,
2008, Technolog from September 10, 2008, and Black Diamond from September
24, 2007.
|
2009
|
2008
|
change
|
|||||||
Industrial
Technology
|
$
|
528,208
|
$
|
656,176
|
(19.5
|
)%
|
|||
Energy
Systems and Controls
|
427,003
|
541,472
|
(21.1
|
)
|
|||||
Scientific
and Industrial Imaging
|
349,132
|
383,543
|
(9.0
|
)
|
|||||
RF
Technology
|
719,666
|
722,670
|
(0.4
|
)
|
|||||
Total
|
$
|
2,024,009
|
$
|
2,303,861
|
(12.1
|
)%
|
2009
|
2008
|
change
|
|||||||
Industrial
Technology
|
$
|
52,079
|
$
|
59,128
|
(11.9
|
)%
|
|||
Energy
Systems and Controls
|
70,901
|
84,997
|
(16.6
|
)
|
|||||
Scientific
and Industrial Imaging
|
73,747
|
80,020
|
(7.8
|
)
|
|||||
RF
Technology
|
368,762
|
365,669
|
0.8
|
||||||
Total
|
$
|
565,489
|
$
|
589,814
|
(4.1
|
)%
|
2008
|
2007
|
change
|
|||||||
Industrial
Technology
|
$
|
656,176
|
$
|
639,348
|
2.6
|
%
|
|||
Energy
Systems and Controls
|
541,472
|
525,899
|
3.0
|
||||||
Scientific
and Industrial Imaging
|
383,543
|
377,653
|
1.6
|
||||||
RF
Technology
|
722,670
|
575,100
|
25.7
|
||||||
Total
|
$
|
2,303,861
|
$
|
2,118,000
|
8.8
|
%
|
2008
|
2007
|
change
|
|||||||
Industrial
Technology
|
$
|
59,128
|
$
|
93,076
|
(36.5
|
)%
|
|||
Energy
Systems and Controls
|
84,997
|
93,102
|
(8.7
|
)
|
|||||
Scientific
and Industrial Imaging
|
80,020
|
74,834
|
6.9
|
||||||
RF
Technology
|
365,669
|
271,305
|
34.8
|
||||||
Total
|
$
|
589,814
|
$
|
532,317
|
10.8
|
%
|
2009
|
2008
|
2007
|
|
Cash
provided by/(used in):
|
|||
Operating
activities
|
$ 367.5
|
$ 434.4
|
$ 343.8
|
Investing
activities
|
(374.2)
|
(739.3)
|
(142.4)
|
Financing
activities
|
(13.6)
|
187.9
|
29.5
|
Contractual
Cash
Obligations1
|
Total
|
Payments
Due in Fiscal Year
|
||||||||||||||||||||
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
|||||||||||||||||
Long-term
debt
|
$
|
1,147,404
|
$
|
110,579
|
$
|
-
|
$
|
-
|
$
|
536,825
|
$
|
-
|
$
|
500,000
|
||||||||
Senior
note interest2
|
312,500
|
31,250
|
31,250
|
31,250
|
31,250
|
31,250
|
156,250
|
|||||||||||||||
Capital
leases
|
6,354
|
2,217
|
1,473
|
813
|
463
|
358
|
1,030
|
|||||||||||||||
Operating
leases
|
102,721
|
27,694
|
19,667
|
15,503
|
11,663
|
8,763
|
19,431
|
|||||||||||||||
Total
|
$
|
1,568,979
|
$
|
171,740
|
$
|
52,390
|
$
|
47,566
|
$
|
580,201
|
$
|
40,371
|
$
|
676,711
|
Other
Commercial Commitments
|
Total
Amount
Committed
|
Amounts
Expiring in Fiscal Year
|
||||||||||||||||||||
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
|||||||||||||||||
Standby
letters of credit and
bank guarantees
|
$
|
53,329
|
$
|
44,378
|
$
|
2,275
|
$
|
294
|
$
|
-
|
$
|
25
|
$
|
6,357
|
1.
|
We have excluded $26
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 8 of the notes to Consolidated Financial
Statements.
|
2.
|
We
have excluded interest on the Senior notes due 2013, as they have been
effectively converted to variable rate debt due to interest rate
swaps. See “Description of Certain Indebtedness”
above.
|
Page
|
|
Consolidated
Financial Statements:
|
|
Report
of Independent Registered Public Accounting Firm (PricewaterhouseCoopers
LLP)
|
26
|
Consolidated
Balance Sheets as of December 31, 2009 and 2008
|
27
|
Consolidated
Statements of Earnings for the Years ended December 31, 2009, 2008 and
2007
|
28
|
Consolidated
Statements of Stockholders’ Equity and Comprehensive Earnings for the
Years ended December 31, 2009, 2008 and 2007
|
29
|
Consolidated
Statements of Cash Flows for the Years ended December 31, 2009, 2008 and
2007
|
30
|
Notes
to Consolidated Financial Statements
|
32
|
Supplementary
Data:
|
|
Schedule
II - Consolidated Valuation and Qualifying Accounts for the Years ended
December 31, 2009, 2008 and 2007
|
53
|
2009
|
2008
|
||||||||
Assets
|
|||||||||
Cash
and cash equivalents
|
$
|
167,708
|
$
|
178,069
|
|||||
Accounts
receivable, net
|
381,658
|
376,855
|
|||||||
Inventories,
net
|
178,795
|
185,919
|
|||||||
Deferred
taxes
|
27,306
|
29,390
|
|||||||
Unbilled
Receivables
|
57,153
|
61,168
|
|||||||
Other
current assets
|
58,125
|
26,906
|
|||||||
Total
current assets
|
870,745
|
858,307
|
|||||||
Property,
plant and equipment, net
|
109,493
|
112,463
|
|||||||
Goodwill
|
2,388,432
|
2,118,852
|
|||||||
Other
intangible assets, net
|
868,900
|
804,020
|
|||||||
Deferred
taxes
|
33,123
|
28,050
|
|||||||
Other
assets
|
57,043
|
49,846
|
|||||||
Total
assets
|
$
|
4,327,736
|
$
|
3,971,538
|
|||||
Liabilities
and Stockholders' Equity
|
|||||||||
Accounts
payable
|
$
|
110,103
|
$
|
121,807
|
|||||
Accrued
liabilities
|
253,441
|
261,682
|
|||||||
Income
taxes payable
|
-
|
1,892
|
|||||||
Deferred
taxes
|
1,671
|
-
|
|||||||
Current
portion of long-term debt, net
|
112,796
|
233,526
|
|||||||
Total
current liabilities
|
478,011
|
618,907
|
|||||||
Long-term
debt, net of current portion
|
1,040,962
|
1,033,689
|
|||||||
Deferred
taxes
|
328,299
|
272,182
|
|||||||
Other
liabilities
|
58,974
|
42,826
|
|||||||
Total
liabilities
|
1,906,246
|
1,967,604
|
|||||||
Commitments
and contingencies (Note 13)
|
|||||||||
Stockholders'
equity:
|
|||||||||
Preferred
stock, $0.01 par value per share; 2,000 shares authorized; none
outstanding
|
-
|
-
|
|||||||
Common
stock, $0.01 par value per share; 350,000 shares authorized; 95,768 shares
issued and 93,618 outstanding at December 31, 2009 and 91,909 shares
issued and 89,721 outstanding at December 31, 2008.
|
958
|
919
|
|||||||
Additional
paid-in capital
|
982,321
|
815,736
|
|||||||
Retained
earnings
|
1,395,586
|
1,187,467
|
|||||||
Accumulated
other comprehensive earnings
|
63,945
|
21,513
|
|||||||
Treasury
stock 2,150 shares at December 31, 2009 and 2,188 shares at December 31,
2008.
|
(21,320
|
)
|
(21,701
|
)
|
|||||
Total
stockholders' equity
|
2,421,490
|
2,003,934
|
|||||||
Total
liabilities and stockholders' equity
|
$
|
4,327,736
|
$
|
3,971,538
|
Years
ended December 31,
|
||||||||||||||
2009
|
2008
|
2007
|
||||||||||||
Net
sales
|
$
|
2,049,668
|
$
|
2,306,371
|
$
|
2,102,049
|
||||||||
Cost
of sales
|
1,006,530
|
1,118,083
|
1,043,654
|
|||||||||||
Gross
profit
|
1,043,138
|
1,188,288
|
1,058,395
|
|||||||||||
Selling,
general and administrative expenses
|
647,742
|
702,127
|
620,041
|
|||||||||||
Income
from operations
|
395,396
|
486,161
|
438,354
|
|||||||||||
Interest
expense
|
58,544
|
60,819
|
58,855
|
|||||||||||
Loss
on extinguishment of debt
|
403
|
3,133
|
-
|
|||||||||||
Other
income (expense)
|
3,319
|
6,607
|
(2,502
|
)
|
||||||||||
Earnings
before income taxes
|
339,768
|
428,816
|
376,997
|
|||||||||||
Income
taxes
|
100,287
|
146,942
|
131,292
|
|||||||||||
Net
earnings
|
$
|
239,481
|
$
|
281,874
|
$
|
245,705
|
||||||||
Earnings
per share:
|
||||||||||||||
Basic
|
$
|
2.64
|
$
|
3.15
|
$
|
2.78
|
||||||||
Diluted
|
$
|
2.58
|
$
|
3.01
|
$
|
2.64
|
||||||||
Weighted
average common shares outstanding:
|
||||||||||||||
Basic
|
90,685
|
89,468
|
88,390
|
|||||||||||
Diluted
|
92,820
|
93,699
|
93,229
|
Common
Stock
|
Additional
paid-in capital
|
Retained
earnings
|
Accumulated
other comprehensive earnings
|
Treasury
stock
|
Total
stockholders equity
|
Compre-hensive
earnings
|
|||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
Balances
at December 31, 2006
|
87,779
|
$
|
900
|
$
|
735,001
|
$
|
713,814
|
$
|
68,666
|
$
|
(22,377
|
)
|
$
|
1,496,004
|
$
|
206,516
|
|||||||
Adjustment
to adopt accounting guidance related to unrecognized tax
benefits
|
-
|
-
|
-
|
(3,349
|
)
|
-
|
-
|
(3,349
|
)
|
-
|
|||||||||||||
Net
earnings
|
-
|
-
|
-
|
245,705
|
-
|
-
|
245,705
|
$
|
245,705
|
||||||||||||||
Stock
option exercises
|
791
|
8
|
15,256
|
-
|
-
|
-
|
15,264
|
-
|
|||||||||||||||
Treasury
stock sold
|
27
|
-
|
1,426
|
-
|
-
|
337
|
1,763
|
-
|
|||||||||||||||
Currency
translation adjustments, net of $9,979 tax
|
-
|
-
|
-
|
-
|
42,326
|
-
|
42,326
|
42,326
|
|||||||||||||||
Stock
based compensation
|
-
|
-
|
20,716
|
-
|
-
|
-
|
20,716
|
-
|
|||||||||||||||
Restricted
stock grants
|
176
|
2
|
(3,560
|
)
|
-
|
-
|
-
|
(3,558
|
)
|
-
|
|||||||||||||
Stock
option tax benefit
|
-
|
-
|
5,729
|
-
|
-
|
-
|
5,729
|
-
|
|||||||||||||||
Reduction
in unrealized gain on derivative, shown net of $(1,217)
tax
|
-
|
-
|
-
|
-
|
(2,260
|
)
|
-
|
(2,260
|
)
|
(2,260
|
)
|
||||||||||||
Dividends
declared ($0.2675 per share)
|
-
|
-
|
-
|
(23,697
|
)
|
-
|
-
|
(23,697
|
)
|
-
|
|||||||||||||
Balances
at December 31, 2007
|
88,773
|
$
|
910
|
$
|
774,568
|
$
|
932,473
|
$
|
108,732
|
$
|
(22,040
|
)
|
$
|
1,794,643
|
$
|
285,771
|
|||||||
Net
earnings
|
-
|
-
|
-
|
281,874
|
-
|
-
|
281,874
|
$
|
281,874
|
||||||||||||||
Stock
option exercises
|
462
|
5
|
11,032
|
-
|
-
|
-
|
11,037
|
-
|
|||||||||||||||
Treasury
stock sold
|
34
|
-
|
1,555
|
-
|
-
|
339
|
1,894
|
-
|
|||||||||||||||
Currency
translation adjustments, net of $9,404 tax
|
-
|
-
|
-
|
-
|
(86,679
|
)
|
-
|
(86,679
|
)
|
(86,679
|
)
|
||||||||||||
Stock
based compensation
|
-
|
-
|
30,905
|
-
|
-
|
-
|
30,905
|
-
|
|||||||||||||||
Restricted
stock grants
|
452
|
4
|
(7,967
|
)
|
-
|
-
|
-
|
(7,963
|
)
|
-
|
|||||||||||||
Stock
option tax benefit
|
-
|
-
|
5,643
|
-
|
-
|
-
|
5,643
|
-
|
|||||||||||||||
Reduction
in unrealized gain on derivative, shown net of $(291) tax
|
-
|
-
|
-
|
-
|
(540
|
)
|
-
|
(540
|
)
|
(540
|
)
|
||||||||||||
Dividends
declared ($0.30 per share)
|
-
|
-
|
-
|
(26,880
|
)
|
-
|
-
|
(26,880
|
)
|
-
|
|||||||||||||
Balances
at December 31, 2008
|
89,721
|
$
|
919
|
$
|
815,736
|
$
|
1,187,467
|
$
|
21,513
|
$
|
(21,701
|
)
|
$
|
2,003,934
|
$
|
194,655
|
|||||||
Net
earnings
|
-
|
-
|
-
|
239,481
|
-
|
-
|
239,481
|
$
|
239,481
|
||||||||||||||
Stock
option exercises
|
421
|
4
|
10,502
|
-
|
-
|
-
|
10,506
|
-
|
|||||||||||||||
Treasury
stock sold
|
38
|
-
|
1,312
|
-
|
-
|
381
|
1,693
|
-
|
|||||||||||||||
Currency
translation adjustments, net of $5,257 tax
|
-
|
-
|
-
|
-
|
42,432
|
-
|
42,432
|
42,432
|
|||||||||||||||
Stock
based compensation
|
-
|
-
|
26,660
|
-
|
-
|
-
|
26,660
|
-
|
|||||||||||||||
Restricted
stock grants
|
87
|
1
|
(3,648
|
)
|
-
|
-
|
-
|
(3,647
|
)
|
-
|
|||||||||||||
Stock
option tax benefit, net of shortfalls
|
-
|
-
|
2,032
|
-
|
-
|
-
|
2,032
|
-
|
|||||||||||||||
Issuance
of common stock, net of issue costs
|
2,300
|
23
|
121,427
|
-
|
-
|
-
|
121,450
|
-
|
|||||||||||||||
Conversion
of senior subordinated convertible notes
|
1,051
|
11
|
8,300
|
-
|
-
|
-
|
8,311
|
-
|
|||||||||||||||
Dividends
declared ($0.34 per share)
|
-
|
-
|
-
|
(31,362
|
)
|
-
|
-
|
(31,362
|
)
|
-
|
|||||||||||||
Balances
at December 31, 2009
|
93,618
|
$
|
958
|
$
|
982,321
|
$
|
1,395,586
|
$
|
63,945
|
$
|
(21,320
|
)
|
$
|
2,421,490
|
$
|
281,913
|
Years
ended December 31,
|
||||||||||
2009
|
2008
|
2007
|
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
earnings
|
$
|
239,481
|
$
|
281,874
|
$
|
245,705
|
||||
Adjustments
to reconcile net earnings to cash flows from operating
activities:
|
||||||||||
Depreciation
and amortization of property, plant and equipment
|
34,163
|
33,900
|
31,805
|
|||||||
Amortization
of intangible assets
|
69,285
|
66,941
|
59,386
|
|||||||
Amortization
of deferred financing costs
|
2,573
|
2,267
|
1,989
|
|||||||
Non-cash
stock compensation
|
27,476
|
30,905
|
20,688
|
|||||||
Changes
in operating assets and liabilities, net of acquired
businesses:
|
||||||||||
Accounts
receivable
|
26,978
|
14,609
|
(21,243
|
)
|
||||||
Inventories
|
31,081
|
(8,728
|
)
|
(489
|
)
|
|||||
Unbilled
Receivables
|
4,015
|
(950
|
)
|
(30,971
|
)
|
|||||
Accounts
payable and accrued liabilities
|
(58,801
|
)
|
9,209
|
14,219
|
||||||
Income
taxes payable
|
(6,225
|
)
|
(2,675
|
)
|
21,508
|
|||||
Other,
net
|
(2,527
|
)
|
7,086
|
1,210
|
||||||
Cash
provided by operating activities
|
367,499
|
434,438
|
343,807
|
|||||||
Cash
flows from investing activities:
|
||||||||||
Acquisitions
of businesses, net of cash acquired
|
(354,561
|
)
|
(704,764
|
)
|
(106,942
|
)
|
||||
Capital
expenditures
|
(25,885
|
)
|
(30,047
|
)
|
(30,107
|
)
|
||||
Proceeds
from sale of assets
|
11,218
|
1,746
|
1,347
|
|||||||
Other,
net
|
(4,964
|
)
|
(6,229
|
)
|
(6,686
|
)
|
||||
Cash
used in investing activities
|
(374,192
|
)
|
(739,294
|
)
|
(142,388
|
)
|
||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from senior notes
|
500,000
|
500,000
|
-
|
|||||||
Proceeds
from/(payments on) senior unsecured term loan
|
(350,000
|
)
|
350,000
|
-
|
||||||
Borrowings/(payments)
under revolving line of credit, net
|
(139,000
|
)
|
313,000
|
(206,900
|
)
|
|||||
Principal
payments on convertible notes
|
(124,270
|
)
|
-
|
-
|
||||||
Repayment
of borrowings under prior credit facility
|
-
|
(908,620
|
)
|
-
|
||||||
Principal
borrowings/(payments) on term notes under prior credit
facility
|
-
|
(49,125
|
)
|
234,500
|
||||||
Debt
issuance costs
|
(4,708
|
)
|
(10,226
|
)
|
-
|
|||||
Cash
dividends to stockholders
|
(29,823
|
)
|
(25,887
|
)
|
(22,954
|
)
|
||||
Treasury
stock sales
|
1,693
|
1,894
|
1,763
|
|||||||
Stock
award tax excess windfall benefit
|
2,813
|
5,359
|
7,876
|
|||||||
Proceeds
from issuance of common stock, net of issue costs
|
121,450
|
-
|
-
|
|||||||
Proceeds
from stock option exercises
|
10,506
|
11,037
|
15,263
|
|||||||
Other
|
(2,258
|
)
|
487
|
-
|
||||||
Cash
provided by/(used in) financing activities
|
(13,597
|
)
|
187,919
|
29,548
|
||||||
Effect
of exchange rate changes on cash
|
9,929
|
(13,762
|
)
|
8,323
|
||||||
Net
increase/(decrease) in cash and cash equivalents
|
(10,361
|
)
|
(130,699
|
)
|
239,290
|
|||||
Cash
and cash equivalents, beginning of year
|
178,069
|
308,768
|
69,478
|
|||||||
Cash
and cash equivalents, end of year
|
$
|
167,708
|
$
|
178,069
|
$
|
308,768
|
||||
Supplemental
disclosures:
|
||||||||||
Cash
paid for:
|
||||||||||
Interest
|
$
|
47,867
|
$
|
39,063
|
$
|
50,157
|
||||
Income
taxes, net of refunds received
|
$
|
103,699
|
$
|
144,258
|
$
|
101,908
|
||||
Noncash
investing activities:
|
||||||||||
Net
assets of businesses acquired:
|
||||||||||
Fair
value of assets, including goodwill
|
$
|
384,055
|
$
|
774,164
|
$
|
112,112
|
||||
Liabilities
assumed
|
(29,494
|
)
|
(69,400
|
)
|
(5,170
|
)
|
||||
Cash
paid, net of cash acquired
|
$
|
354,561
|
$
|
704,764
|
$
|
106,942
|
(1)
|
Summary of Accounting
Policies
|
|
Basis of
Presentation – These financial statements present consolidated
information for Roper Industries, Inc. and its subsidiaries (“Roper” or
the “Company”). All significant intercompany accounts and transactions
have been eliminated.
|
Years
ended December 31,
|
|||
2009
|
2008
|
2007
|
|
Basic
shares outstanding
|
90,685
|
89,468
|
88,390
|
Effect
of potential common stock
|
|||
Common
stock awards
|
853
|
1,155
|
1,511
|
Senior
subordinated convertible notes
|
1,282
|
3,076
|
3,328
|
Diluted
shares outstanding
|
92,820
|
93,699
|
93,229
|
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
|
February
20, 2008
|
||||
Current
assets
|
$
|
32,831
|
||
Other
assets
|
4,916
|
|||
Intangible
assets
|
158,180
|
|||
Goodwill
|
256,693
|
|||
Total
assets acquired
|
452,620
|
|||
Current
liabilities
|
(34,823
|
)
|
||
Other
liabilities
|
(42,887
|
)
|
||
Net
assets acquired
|
$
|
374,910
|
(3)
|
Inventories
|
2009
|
2008
|
||||||
Raw
materials and supplies
|
$
|
111,546
|
$
|
120,604
|
|||
Work
in process
|
24,557
|
26,913
|
|||||
Finished
products
|
71,729
|
68,510
|
|||||
Inventory
reserves
|
(29,037
|
)
|
(30,108
|
)
|
|||
$
|
178,795
|
$
|
185,919
|
(4)
|
Property, Plant and
Equipment
|
2009
|
2008
|
||||||
Land
|
$
|
5,068
|
$
|
4,738
|
|||
Buildings
|
68,912
|
61,884
|
|||||
Machinery,
tooling and other equipment
|
231,768
|
225,632
|
|||||
305,748
|
292,254
|
||||||
Accumulated
depreciation and amortization
|
(196,255
|
)
|
(179,791
|
)
|
|||
$
|
109,493
|
$
|
112,463
|
(5)
|
Goodwill
|
Industrial
Technology
|
Energy
Systems and Controls
|
Scientific
and Industrial Imaging
|
RF
Technology
|
Total
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Balances
at December 31, 2007
|
$
|
442,143
|
$
|
380,884
|
$
|
411,190
|
$
|
471,866
|
$
|
1,706,083
|
||||||
Goodwill
acquired
|
-
|
15,795
|
-
|
460,771
|
476,566
|
|||||||||||
Currency
translation adjustments
|
(18,482
|
)
|
(8,800
|
)
|
(10,838
|
)
|
(21,677
|
)
|
(59,797
|
)
|
||||||
Reclassifications
and other
|
-
|
(6,223
|
)
|
126
|
2,097
|
(4,000
|
)
|
|||||||||
Balances
at December 31, 2008
|
$
|
423,661
|
$
|
381,656
|
$
|
400,478
|
$
|
913,057
|
$
|
2,118,852
|
||||||
Goodwill
acquired
|
-
|
-
|
215,747
|
30,220
|
245,967
|
|||||||||||
Currency
translation adjustments
|
7,412
|
4,894
|
7,561
|
8,326
|
28,193
|
|||||||||||
Reclassifications
and other
|
-
|
(3,343
|
)
|
-
|
(1,237
|
)
|
(4,580
|
)
|
||||||||
Balances
at December 31, 2009
|
$
|
431,073
|
$
|
383,207
|
$
|
623,786
|
$
|
950,366
|
$
|
2,388,432
|
(6)
|
Other intangible
assets, net
|
Cost
|
Accum.
amort.
|
Net
book value
|
||||||||
(in
thousands)
|
||||||||||
Assets
subject to amortization:
|
||||||||||
Customer
related intangibles
|
$
|
683,130
|
$
|
(137,794
|
)
|
$
|
545,336
|
|||
Unpatented
technology
|
70,693
|
(22,232
|
)
|
48,461
|
||||||
Software
|
58,053
|
(30,215
|
)
|
27,838
|
||||||
Patents
and other protective rights
|
38,195
|
(21,998
|
)
|
16,197
|
||||||
Backlog
|
18,257
|
(17,024
|
)
|
1,233
|
||||||
Trade
secrets
|
5,116
|
(3,890
|
)
|
1,226
|
||||||
Assets
not subject to amortization:
|
||||||||||
Trade
names
|
163,729
|
-
|
163,729
|
|||||||
Balances
at December 31, 2008
|
$
|
1,037,173
|
$
|
(233,153
|
)
|
$
|
804,020
|
|||
Assets
subject to amortization:
|
||||||||||
Customer
related intangibles
|
$
|
752,913
|
$
|
(181,307
|
)
|
$
|
571,605
|
|||
Unpatented
technology
|
101,578
|
(33,532
|
)
|
68,046
|
||||||
Software
|
53,408
|
(30,739
|
)
|
22,669
|
||||||
Patents
and other protective rights
|
32,762
|
(20,187
|
)
|
12,575
|
||||||
Backlog
|
1,920
|
(1,920
|
)
|
-
|
||||||
Trade
secrets
|
2,773
|
(1,224
|
)
|
1,549
|
||||||
Assets
not subject to amortization:
|
||||||||||
Trade
names
|
192,455
|
-
|
192,455
|
|||||||
Balances
at December 31, 2009
|
$
|
1,137,809
|
$
|
(268,909
|
)
|
$
|
868,900
|
(7)
|
Accrued
Liabilities
|
2009
|
2008
|
||||||
Wages
and other compensation
|
$
|
70,164
|
$
|
63,878
|
|||
Commissions
|
9,522
|
13,419
|
|||||
Warranty
|
7,341
|
9,885
|
|||||
Accrued
dividend
|
8,894
|
7,403
|
|||||
Deferred
revenue
|
78,077
|
73,308
|
|||||
Billings
in excess of cost
|
9,955
|
18,398
|
|||||
Customer
deposits
|
8,378
|
13,825
|
|||||
Interest
|
26,452
|
18,649
|
|||||
Other
|
34,658
|
42,917
|
|||||
$
|
253,441
|
$
|
261,682
|
(8)
|
Income
Taxes
|
2009
|
2008
|
2007
|
||||||||
United
States
|
$
|
210,559
|
$
|
260,247
|
$
|
247,181
|
||||
Other
|
129,209
|
168,569
|
129,816
|
|||||||
$
|
339,768
|
$
|
428,816
|
$
|
376,997
|
2009
|
2008
|
2007
|
||||||||
Current:
|
||||||||||
Federal
|
$
|
54,636
|
$
|
77,920
|
$
|
82,923
|
||||
State
|
6,990
|
12,309
|
6,940
|
|||||||
Foreign
|
23,720
|
40,739
|
39,062
|
|||||||
Deferred:
|
||||||||||
Federal
|
14,880
|
17,028
|
2,011
|
|||||||
Foreign
|
61
|
(1,054
|
)
|
356
|
||||||
$
|
100,287
|
$
|
146,942
|
$
|
131,292
|
2009
|
2008
|
2007
|
|||||
Federal
statutory rate
|
35.00
|
%
|
35.00
|
%
|
35.00
|
%
|
|
Foreign
rate differential
|
(3.94
|
)
|
(2.59
|
)
|
(1.69
|
)
|
|
R&D
tax credits
|
(0.62
|
)
|
(0.42
|
)
|
(0.45
|
)
|
|
State
taxes, net of federal benefit
|
1.82
|
2.06
|
1.97
|
||||
Other,
net
|
(2.74
|
)
|
0.23
|
-
|
|||
29.52
|
%
|
34.28
|
%
|
34.83
|
%
|
2009
|
2008
|
||||||
Deferred
tax assets:
|
|||||||
Reserves
and accrued expenses
|
$
|
49,806
|
$
|
42,408
|
|||
Inventories
|
5,854
|
6,914
|
|||||
Net
operating loss carryforwards
|
4,008
|
3,983
|
|||||
Foreign
tax credits
|
-
|
1,244
|
|||||
R&D
credits
|
761
|
757
|
|||||
Plant
and equipment
|
-
|
2,134
|
|||||
Total
deferred tax assets
|
$
|
60,429
|
$
|
57,440
|
|||
Deferred
tax liabilities:
|
|||||||
Reserves
and accrued expenses
|
$
|
38,885
|
$
|
38,839
|
|||
Amortizable
intangible assets
|
289,326
|
233,130
|
|||||
Plant
and equipment
|
1,545
|
-
|
|||||
Other
|
214
|
213
|
|||||
Total
deferred tax liabilities
|
$
|
329,970
|
$
|
272,182
|
2009
|
2008
|
2007
|
||||||||
Beginning
balance
|
$
|
22,638
|
$
|
20,773
|
$
|
19,628
|
||||
Additions
for tax positions of prior periods
|
156
|
|
960
|
84
|
||||||
Additions
for tax positions of the current
period
|
4,750
|
3,086
|
2,876
|
|||||||
Reductions
for tax positions of prior periods
|
(250 | ) | - | - | ||||||
Settlements
with taxing authorities
|
(224
|
)
|
(1,609
|
)
|
-
|
|||||
Lapse
of applicable statute of
limitations
|
(4,148
|
)
|
(572
|
)
|
(1,815
|
)
|
||||
Ending
balance
|
$
|
22,922
|
$
|
22,638
|
$
|
20,773
|
(9)
|
Long-Term
Debt
|
2009 | 2008 | |||||
$350
million term loan
|
$
|
-
|
$
|
350,000
|
||
$750
million revolving credit facility
|
40,000
|
179,000
|
||||
Senior
Notes due 2013*
|
496,825
|
500,000
|
||||
Senior
Notes due 2019
|
500,000
|
-
|
||||
Senior
Subordinated Convertible Notes
|
110,579
|
230,000
|
||||
Debt
discount on convertible notes
|
-
|
(301
|
)
|
|||
Other
|
6,354
|
8,516
|
||||
Total
debt
|
1,153,758
|
1,267,215
|
||||
Less
current portion
|
112,796
|
233,526
|
||||
Long-term
debt
|
$
|
1,040,962
|
$
|
1,033,689
|
|
*Shown
net of fair value swap adjustment of
$3,175.
|
Years
ended December 31,
|
||||||||||
2009
|
2008
|
2007
|
||||||||
Contractual
(stated) interest
|
$
|
8,625
|
$
|
8,625
|
$
|
8,625
|
||||
Amortization
of debt discount
|
301
|
7,139
|
6,660
|
|||||||
Interest
expense
|
$
|
8,926
|
$
|
15,764
|
$
|
15,285
|
2010
|
$
|
112,796
|
||
2011
|
1,473
|
|||
2012
|
813
|
|||
2013
|
537,288
|
|||
2014
|
358
|
|||
Thereafter
|
501,030
|
|||
$
|
1,153,758
|
(10)
|
Retirement and Other
Benefit Plans
|
(11)
|
Stock-Based
Compensation
|
2009
|
2008
|
2007
|
||||||||||
Weighted
average fair value ($)
|
12.68 | 12.83 | 15.50 | |||||||||
Risk-free
interest rate (%)
|
1.78 | 2.87 | 4.69 | |||||||||
Average
expected option life (years)
|
5.37 | 5.02 | 5.02 | |||||||||
Expected
volatility (%)
|
32.24 | 21.10 | 23.08 | |||||||||
Expected
dividend yield (%)
|
0.78 | 0.53 | 0.50 |
Number
of shares
|
Weighted
average exercise price per share
|
Weighted
average contractual term
|
Aggregate
intrinsic value
|
|
Outstanding
at January 1, 2009
|
4,187,000
|
$
37.77
|
||
Granted
|
573,000
|
42.52
|
||
Exercised
|
(421,000)
|
25.01
|
|
|
Canceled
|
(101,000)
|
47.99
|
||
Outstanding
at December 31, 2009
|
4,238,000
|
39.39
|
5.34
|
$
58,965,000
|
Exercisable
at December 31, 2009
|
2,763,000
|
$
33.45
|
3.77
|
$
53,593,000
|
Outstanding
options
|
Exercisable
options
|
||||
Exercise
price
|
Number
|
Average
exercise
price
|
Average remaining
life
(years)
|
Number
|
Average
exercise
price
|
$ 11.66
– 20.00
|
519,000
|
$ 18.23
|
2.7
|
519,000
|
$ 18.23
|
20.01
- 30.00
|
707,000
|
21.94
|
2.9
|
707,000
|
21.94
|
30.01
– 40.00
|
499,000
|
31.56
|
2.6
|
499,000
|
31.56
|
40.01
– 50.00
|
957,000
|
42.73
|
6.4
|
451,000
|
43.64
|
50.01
– 60.00
|
1,530,000
|
54.67
|
7.6
|
574,000
|
54.33
|
60.01
– 65.04
|
26,000
|
63.72
|
6.7
|
13,000
|
63.63
|
$ 11.66
– 65.04
|
4,238,000
|
$ 39.39
|
5.3
|
2,763,000
|
$ 33.45
|
Number
of shares
|
Weighted
average fair value
|
|||||||
Nonvested
at January 1, 2009
|
792,000 | $ | 53.83 | |||||
Granted
|
206,000 | 42.76 | ||||||
Vested
|
(295,000 | ) | 42.58 | |||||
Forfeited
|
(2,000 | ) | 48.08 | |||||
Nonvested
at December 31, 2009
|
701,000 | $ | 51.83 |
(12)
|
Common Stock
Transactions
|
(13)
|
Contingencies
|
Balance
at beginning
of year
|
Additions
charged to costs and
expenses
|
Deductions
|
Other
|
Balance
at end
of year
|
$
9,885
|
4,416
|
(7,659)
|
699
|
$
7,341
|
(14)
|
Segment and Geographic
Area Information
|
Industrial
Technology
|
Energy Systems
and Controls
|
Scientific
and Industrial Imaging
|
RF
Technology
|
Corporate
|
Total
|
|||||||||||||
2009
|
||||||||||||||||||
Net
sales
|
$
|
536,219
|
$
|
440,919
|
$
|
354,776
|
$
|
717,754
|
$
|
-
|
$
|
2,049,668
|
||||||
Operating
profit
|
123,959
|
92,788
|
74,183
|
154,430
|
(49,964
|
)
|
395,396
|
|||||||||||
Total
assets:
|
||||||||||||||||||
Operating
assets
|
165,651
|
166,461
|
172,805
|
238,249
|
13,894
|
757,060
|
||||||||||||
Intangible
assets, net
|
635,147
|
532,022
|
787,884
|
1,302,279
|
-
|
3,257,332
|
||||||||||||
Other
|
(51
|
)
|
8,016
|
7,219
|
(27,825
|
)
|
(33,281
|
)
|
(45,922
|
)
|
||||||||
Total
|
3,968,470
|
|||||||||||||||||
Capital
expenditures
|
13,977
|
3,185
|
2,126
|
6,291
|
306
|
25,885
|
||||||||||||
Depreciation
and other amortization
|
24,636
|
18,736
|
16,691
|
43,183
|
202
|
103,448
|
||||||||||||
2008
|
||||||||||||||||||
Net
sales
|
$
|
687,622
|
$
|
548,214
|
$
|
375,542
|
$
|
694,993
|
$
|
-
|
$
|
2,306,371
|
||||||
Operating
profit
|
178,270
|
126,609
|
74,739
|
159,787
|
(53,244
|
)
|
486,161
|
|||||||||||
Total
assets:
|
||||||||||||||||||
Operating
assets
|
184,445
|
199,049
|
126,657
|
246,785
|
6,375
|
763,311
|
||||||||||||
Intangible
assets, net
|
639,988
|
538,367
|
473,655
|
1,270,862
|
-
|
2,922,872
|
||||||||||||
Other
|
6,814
|
3,522
|
24,322
|
(12,975
|
)
|
(8,510
|
)
|
13,173
|
||||||||||
Total
|
3,699,356
|
|||||||||||||||||
Capital
expenditures
|
12,385
|
6,618
|
2,895
|
7,905
|
244
|
30,047
|
||||||||||||
Depreciation
and other amortization
|
24,899
|
19,568
|
17,780
|
38,439
|
2,422
|
103,108
|
||||||||||||
2007
|
||||||||||||||||||
Net
sales
|
$
|
644,436
|
$
|
516,420
|
$
|
376,163
|
$
|
565,030
|
$
|
-
|
$
|
2,102,049
|
||||||
Operating
profit
|
164,750
|
126,367
|
73,230
|
117,057
|
(43,050
|
)
|
438,354
|
|||||||||||
Total
assets:
|
||||||||||||||||||
Operating
assets
|
183,639
|
209,152
|
129,342
|
191,889
|
8,060
|
722,082
|
||||||||||||
Intangible
assets, net
|
671,806
|
550,798
|
497,072
|
599,912
|
-
|
2,319,588
|
||||||||||||
Other
|
37,665
|
30,749
|
21,601
|
23,236
|
71,807
|
185,058
|
||||||||||||
Total
|
3,226,728
|
|||||||||||||||||
Capital
expenditures
|
9,687
|
6,749
|
4,752
|
8,823
|
96
|
30,107
|
||||||||||||
Depreciation
and other amortization
|
25,601
|
19,093
|
18,183
|
28,079
|
2,224
|
93,180
|
United
States
|
Non-U.S.
|
Eliminations
|
Total
|
||||||||||
(in
thousands)
|
|||||||||||||
2009
|
|||||||||||||
Sales
to unaffiliated customers
|
$
|
1,526,390
|
$
|
523,278
|
$
|
-
|
$
|
2,049,668
|
|||||
Sales
between geographic areas
|
87,323
|
126,093
|
(213,416
|
)
|
-
|
||||||||
Net
sales
|
$
|
1,613,713
|
$
|
649,371
|
$
|
(213,416
|
)
|
$
|
2,049,668
|
||||
Long-lived
assets
|
$
|
124,382
|
$
|
28,922
|
$
|
-
|
$
|
153,304
|
|||||
2008
|
|||||||||||||
Sales
to unaffiliated customers
|
$
|
1,709,844
|
$
|
596,507
|
$
|
-
|
$
|
2,306,351
|
|||||
Sales
between geographic areas
|
102,954
|
182,551
|
(285,505
|
)
|
-
|
||||||||
Net
sales
|
$
|
1,812,798
|
$
|
779,058
|
$
|
(285,505
|
)
|
$
|
2,306,351
|
||||
Long-lived
assets
|
$
|
122,005
|
$
|
29,131
|
$
|
-
|
$
|
151,136
|
|||||
2007
|
|||||||||||||
Sales
to unaffiliated customers
|
$
|
1,572,660
|
$
|
529,389
|
$
|
-
|
$
|
2,102,049
|
|||||
Sales
between geographic areas
|
90,268
|
165,735
|
(256,003
|
)
|
-
|
||||||||
Net
sales
|
$
|
1,662,928
|
$
|
695,124
|
$
|
(256,003
|
)
|
$
|
2,102,049
|
||||
Long-lived
assets
|
$
|
125,800
|
$
|
27,439
|
$
|
-
|
$
|
153,239
|
Industrial
Technology
|
Energy
Systems and Controls
|
Scientific
and Industrial Imaging
|
RF
Technology
|
Total
|
||||||||||||
(in
thousands)
|
||||||||||||||||
2009
|
||||||||||||||||
Canada
|
$
|
40,121
|
$
|
25,746
|
$
|
7,251
|
$
|
30,184
|
$
|
103,302
|
||||||
Europe
|
79,000
|
118,770
|
98,328
|
48,849
|
344,947
|
|||||||||||
Asia
|
41,364
|
85,323
|
65,687
|
6,157
|
198,531
|
|||||||||||
Middle
East
|
4,040
|
28,121
|
2,162
|
28,316
|
62,639
|
|||||||||||
Rest
of the world
|
12,256
|
48,657
|
9,424
|
11,042
|
81,379
|
|||||||||||
Total
|
$
|
176,781
|
$
|
306,617
|
$
|
182,852
|
$
|
124,548
|
$
|
790,798
|
||||||
2008
|
||||||||||||||||
Canada
|
$
|
39,831
|
$
|
40,951
|
$
|
8,814
|
$
|
30,909
|
$
|
120,505
|
||||||
Europe
|
110,590
|
171,627
|
111,373
|
21,372
|
414,962
|
|||||||||||
Asia
|
50,333
|
90,265
|
69,820
|
4,473
|
214,891
|
|||||||||||
Middle
East
|
3,766
|
23,506
|
1,576
|
34,418
|
63,266
|
|||||||||||
Rest
of the world
|
27,406
|
58,330
|
7,732
|
11,993
|
105,461
|
|||||||||||
Total
|
$
|
231,926
|
$
|
384,679
|
$
|
199,315
|
$
|
103,165
|
$
|
919,085
|
||||||
2007
|
||||||||||||||||
Canada
|
$
|
39,841
|
$
|
38,306
|
$
|
6,331
|
$
|
31,506
|
$
|
115,984
|
||||||
Europe
|
97,394
|
163,640
|
111,614
|
5,073
|
377,721
|
|||||||||||
Asia
|
43,873
|
84,925
|
68,721
|
907
|
198,426
|
|||||||||||
Middle
East
|
3,722
|
27,171
|
1,381
|
52,669
|
84,943
|
|||||||||||
Rest
of the world
|
22,311
|
45,194
|
7,569
|
6,426
|
81,500
|
|||||||||||
Total
|
$
|
207,141
|
$
|
359,236
|
$
|
195,616
|
$
|
96,581
|
$
|
858,574
|
(15)
|
Concentration of
Risk
|
(16)
|
Subsequent
Events
|
(17)
|
Quarterly Financial
Data (unaudited)
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||
(in
thousands, except per share data)
|
|||||||||||||
2009
|
|||||||||||||
Net
sales
|
$
|
505,444
|
$
|
504,910
|
$
|
485,676
|
$
|
553,638
|
|||||
Gross
profit
|
251,136
|
255,070
|
245,520
|
291,412
|
|||||||||
Income
from operations
|
86,792
|
95,964
|
91,872
|
120,768
|
|||||||||
Net
earnings
|
51,559
|
59,588
|
56,410
|
71,924
|
|||||||||
Earnings
from continuing operations per common share:
|
|||||||||||||
Basic
|
0.57
|
0.66
|
0.62
|
0.79
|
|||||||||
Diluted
|
0.56
|
0.64
|
0.61
|
0.77
|
|||||||||
2008
|
|||||||||||||
Net
sales
|
$
|
542,995
|
$
|
594,414
|
$
|
593,100
|
$
|
575,862
|
|||||
Gross
profit
|
276,390
|
305,330
|
308,760
|
297,808
|
|||||||||
Income
from operations
|
108,266
|
126,541
|
132,299
|
119,055
|
|||||||||
Net
earnings
|
62,451
|
74,523
|
74,029
|
70,871
|
|||||||||
Earnings
from continuing operations after change in accounting principle per common
share:
|
|||||||||||||
Basic
|
0.70
|
0.83
|
0.83
|
0.79
|
|||||||||
Diluted
|
0.67
|
0.79
|
0.79
|
0.77
|
Balance
at beginning of year
|
Additions
charged to costs and expenses
|
Deductions
|
Other
|
Balance
at end
of
year
|
||
(in
thousands)
|
||||||
Allowance
for doubtful accounts and sales allowances
|
||||||
2009
|
$
12,658
|
$
2,762
|
$
(4,874)
|
$ 641
|
$
11,187
|
|
2008
|
11,907
|
5,953
|
(5,402)
|
200
|
12,658
|
|
2007
|
9,003
|
4,957
|
(2,429)
|
376
|
11,907
|
|
Reserve
for inventory obsolescence
|
||||||
2009
|
$
30,108
|
$ 8,789
|
$
(10,508)
|
$ 648
|
$
29,037
|
|
2008
|
28,390
|
6,321
|
(4,063)
|
(540)
|
30,108
|
|
2007
|
27,348
|
4,649
|
(5,402)
|
1,795
|
28,390
|
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)
|
4,238,000
|
$
39.39
|
4,571,000
|
Equity
Compensation Plans Not Approved by Shareholders
|
-
|
-
|
-
|
Total
|
4,238,000
|
$
39.39
|
4,571,000
|
(1)
|
Consists
of the 1991 Stock Option Plan, the Amended and Restated 2000 Stock
Incentive Plan, the 1993 Stock Plan for Non-Employee Directors (no
additional equity awards may be granted under these three plans) and the
2006 Incentive Plan.
|
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, 2009,
2008 and 2007
|
(b)
|
Exhibits
|
Exhibit
No.
|
Description
of Exhibit
|
|
(a)3.1
|
Amended
and Restated Certificate of Incorporation.
|
|
(b)3.2
|
Amended
and Restated By-Laws.
|
|
(c)3.3
|
Certificate
of Amendment, amending Restated Certificate of
Incorporation.
|
|
(d)3.4
|
Certificate
Eliminating References to Roper Industries, Inc.’s Series A Preferred
Stock from the Certificate of Incorporation of Roper Industries, Inc.
dated November 16, 2006.
|
|
(e)3.5
|
Certificate
of Amendment, amending Restated Certificate of
Incorporation.
|
|
(f)4.2
|
Indenture
between Roper Industries, Inc. and SunTrust Bank, dated as of November 28,
2003.
|
|
4.3
|
Form
of Debt Securities (included in Exhibit 4.2).
|
|
(g)4.4
|
First
Supplemental Indenture between Roper Industries, Inc. and SunTrust Bank,
dated as of December 29, 2003.
|
|
(h)4.5
|
Second
Supplemental Indenture between Roper Industries, Inc. and Sun Trust Bank,
dated as of December 7, 2004.
|
|
(i)4.6
|
Indenture
between Roper Industries, Inc. and Wells Fargo Bank, dated as of August 4,
2008.
|
|
(j)4.7
|
Form
of Note.
|
|
(k)4.8
|
Form
of 6.625% Notes due 2013.
|
|
(l)4.9
|
Form
of 6.25% Senior Notes due 2019.
|
|
(m)10.01
|
1991
Stock Option Plan, as amended. †
|
|
(n)10.02
|
1993
Stock Plan for Nonemployee Directors, as amended and restated. †
|
|
(o)10.03
|
Form
of Amended and Restated Indemnification Agreement. †
|
|
(p)10.04
|
Employee
Stock Purchase Plan, as amended. †
|
|
(p)10.05
|
2000
Stock Incentive Plan, as amended. †
|
|
(p)10.06
|
Non-Qualified
Retirement Plan, as amended. †
|
|
(p)10.07
|
Brian
D. Jellison Employment Agreement, dated as of December 29, 2008. †
|
|
(t)10.08
|
Timothy
J. Winfrey offer letter dated May 20, 2002. †
|
|
(u)10.09
|
Credit
Agreement, dated as of July 7, 2008, among Roper Industries, Inc., as
parent borrower, the foreign subsidiary borrowers of Roper Industries,
Inc. from time to time parties thereto, the several lenders from time to
time parties thereto, Bank of Tokyo-Mitsubishi UFJ Trust Company and BNP
Paribas, as documentation agents, Wachovia Capital Markets, LLC and Banc
of America Securities, LLC, as syndication agents, and JPMorgan Chase
Bank, N.A., as administrative agent.
|
|
(v)10.10
|
Form
of Executive Officer Restricted Stock Award Agreement.
†
|
|
(v)10.11
|
Brian
D. Jellison Restricted Stock Unit Award Agreement. †
|
|
(w)10.12
|
Offer
letter for John Humphrey, dated March 31, 2006. †
|
|
(x)10.13
|
2006
Incentive Plan, as amended. †
|
|
(y)10.14
|
Form
of Restricted Stock Agreement for Employee Directors. †
|
|
(y)10.15
|
Form
of Restricted Stock Agreement for Non-Employee Directors.
†
|
|
(y)10.16
|
Form
of Restricted Stock Agreement for Employees. †
|
|
(y)10.17
|
Form
of Incentive Stock Option Agreement. †
|
|
(y)10.18
|
Form
of Non-Statutory Stock Option Agreement. †
|
|
(z)10.19
|
Director
Compensation Plan, as amended. †
|
|
(aa)10.20
|
David
B. Liner offer letter dated July 21, 2005. †
|
|
(bb)10.21
|
Amendment
to John Humphrey offer letter. †
|
|
(cc)10.22
|
Amendment
to Timothy J. Winfrey offer letter. †
|
|
(dd)10.23
|
Amendment
to David B. Liner offer letter. †
|
|
21.1
|
List
of Subsidiaries, filed herewith.
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm, 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, furnished herewith.
|
|
101.CAL
|
XBRL
Taxonomy Extension Calculation Linkbase Document, furnished
herewith.
|
|
101.DEF
|
XBRL
Taxonomy Extension Definition Linkbase Document, furnished
herewith.
|
|
101.LAB
|
XBRL
Taxonomy Extension Label Linkbase Document, furnished
herewith.
|
|
101.PRE
|
XBRL
Taxonomy Extension Presentation Linkbase Document, furnished
herewith.
|
(a)
|
Incorporated
herein by reference to Exhibit 3.1 to the Roper Industries, Inc. Quarterly
Report on Form 10-Q filed March 17, 2003 (file no. 1-12273), as amended by
the Certificate Eliminating References to the Company’s Series A Preferred
Stock from the Certificate of Incorporation of Roper Industries, Inc.
dated November 16, 2006, incorporated herein by reference to Exhibit 3.1
to the Roper Industries, Inc. Current Report on Form 8-K filed November
16, 2006 (file no. 1-12273).
|
|
(b)
|
Incorporated
herein by reference to Exhibit 3.1 to the Roper Industries, Inc. Current
Report on Form 8-K filed February 19, 2009 (file no.
1-12273).
|
|
(c)
|
Incorporated
herein by reference to Exhibit 10.1 to the Roper Industries, Inc.
Quarterly Report on Form 10-Q filed August 9, 2006 (file no.
1-12273)
|
|
(d)
|
Incorporated
herein by reference to Exhibit 3.1 to the Roper Industries, Inc. Current
Report on Form 8-K filed November 17, 2006 (file no.
1-12273).
|
|
(e)
|
Incorporated
herein by reference to Exhibit 3.1 to the Roper Industries, Inc. Quarterly
Report on Form 10-Q filed on August 9, 2007 (file no.
1-12273).
|
|
(f)
|
Incorporated
herein by reference to Exhibit 4.2 to the Roper Industries, Inc.
Pre-Effective Amendment No. 1 to the Registration Statement on Form S-3
filed November 28, 2003 (file no. 333-110491).
|
|
(g)
|
Incorporated
herein by reference to Exhibit 4.1 to the Roper Industries, Inc. Current
Report on Form 8-K filed January 13, 2004 (file no.
1-12273).
|
|
(h)
|
Incorporated
herein by reference to Exhibit 4.1 to the Roper Industries, Inc. Current
Report on Form 8-K filed December 7, 2004 (file no.
1-12273).
|
|
(i)
|
Incorporated
herein by reference to Exhibit 4.2 to the Roper Industries, Inc. Quarterly
Report on Form 10-Q filed on November 7, 2008 (file no.
1-12273).
|
|
(j)
|
Incorporated
herein by reference to Exhibit 4.2 to the Registration Statement on Form
S-3 filed July 29, 2008 (file no. 333-152590).
|
|
(k)
|
Incorporated
herein by reference to Exhibit 4.09 to the Roper Industries, Inc. Current
Report on Form 8-K filed August 4, 2008 (file no.
1-12273).
|
|
(l)
|
Incorporated
herein by reference to Exhibit 4.1 to the Roper Industries, Inc. Current
Report on Form 8-K filed September 2, 2009 (file no.
1-12273).
|
|
(m)
|
Incorporated
herein by reference to Exhibit 10.02 to the Roper Industries, Inc. Annual
Report on Form 10-K filed January 21, 1998 (file no.
1-12273).
|
|
(n)
|
Incorporated
herein by reference to Exhibit 10.2 to the Roper Industries, Inc.
Quarterly Report on Form 10-Q filed June 16, 2003 (file no.
1-12273).
|
|
(o)
|
Incorporated
herein by reference to Exhibit 10.04 to the Roper Industries, Inc.
Quarterly Report on Form 10-Q filed August 31, 1999 (file no.
1-12273).
|
|
(p)
|
Incorporated
herein by reference to Exhibits 10.1, 10.2, 10.3, 10.4 and 10.5 to the
Roper Industries, Inc. Current Report on Form 8-K filed December 6, 2006
(file no. 1-12273).
|
|
(q)
|
Incorporated
herein by reference to Exhibit 10.05 to the Roper Industries, Inc. Annual
Report on Form 10-K filed March 2, 2009 (file no.
1-12273).
|
|
(r)
|
Incorporated
herein by reference to Exhibit 10.06 to the Roper Industries, Inc. Annual
Report on Form 10-K filed March 2, 2009 (file no.
1-12273).
|
|
(s)
|
Incorporated
herein by reference to Exhibit 10.07 to the Roper Industries, Inc. Annual
Report on Form 10-K filed March 2, 2009 (file no.
1-12273).
|
|
(t)
|
Incorporated
herein by reference to Exhibits 10.06 and 10.09 to the Roper Industries,
Inc. Annual Report on Form 10-K/A filed November 3, 2003 (file no.
1-12273).
|
|
(u)
|
Incorporated
herein by reference to Exhibit 10.1 to the Roper Industries, Inc. Current
Report on Form 8-K filed July 7, 2008 (file no.
1-12273).
|
|
(v)
|
Incorporated
herein by reference to Exhibits 99.1 and 99.2 to the Roper Industries,
Inc. Current Report on Form 8-K filed December 30, 2004 (file no.
1-12273).
|
|
(w)
|
Incorporated
herein by reference to Exhibit 10.1 to the Roper Industries, Inc.
Quarterly Report on Form 10-Q filed August 9, 2006 (file no.
1-12273)
|
|
(x)
|
Incorporated
herein by reference to Exhibit 10.1 to the Roper Industries, Inc.
Quarterly Report on Form 10-Q filed November 7, 2008 (file no.
1-12273)
|
|
(y)
|
Incorporated
herein by reference to Exhibits 10.1, 10.2, 10.3, 10.4 and 10.5 to the
Roper Industries, Inc. Current Report on Form 8-K filed December 6, 2006
(file no. 1-12273).
|
|
(z)
|
Incorporated
herein by reference to Exhibit 10.01 to the Roper Industries, Inc.
Quarterly Report on Form 10-Q filed May 7, 2009 (file no.
1-12273).
|
|
(aa)
|
Incorporated
herein by reference to Exhibit 10.20 to the Roper Industries, Inc. Annual
Report on Form 10-K filed March 2, 2009 (file no.
1-12273).
|
|
(bb)
|
Incorporated
herein by reference to Exhibit 10.21 to the Roper Industries, Inc. Annual
Report on Form 10-K filed March 2, 2009 (file no.
1-12273).
|
|
(cc)
|
Incorporated
herein by reference to Exhibit 10.22 to the Roper Industries, Inc. Annual
Report on Form 10-K filed March 2, 2009 (file no.
1-12273).
|
|
(dd)
|
Incorporated
herein by reference to Exhibit 10.23 to the Roper Industries, Inc. Annual
Report on Form 10-K filed March 2, 2009 (file no.
1-12273).
|
|
†
|
Management
contract or compensatory plan or
arrangement.
|
By:
|
/S/
BRIAN D. JELLISON
|
February
26, 2010
|
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
26, 2010
|
|
(Principal
Executive Officer)
|
|||
/S/
JOHN HUMPHREY
|
Vice
President, Chief Financial Officer
|
||
John
Humphrey
|
(Principal
Financial Officer)
|
February
26, 2010
|
|
/S/
PAUL J. SONI
|
Vice
President and Controller
|
||
Paul
J. Soni
|
(Principal
Accounting Officer)
|
February
26, 2010
|
|
/S/
DAVID W. DEVONSHIRE
|
|||
David
W. Devonshire
|
Director
|
February
26, 2010
|
|
/S/
JOHN F. FORT, III
|
|||
John
F. Fort, III
|
Director
|
February
26, 2010
|
|
/S/
ROBERT D. JOHNSON
|
|||
Robert
D. Johnson
|
Director
|
February
26, 2010
|
|
/S/
ROBERT E. KNOWLING
|
|||
Robert
E. Knowling
|
Director
|
February
26, 2010
|
|
/S/
WILBUR J. PREZZANO
|
|||
Wilbur
J. Prezzano
|
Director
|
February
26, 2010
|
|
/S/
RICHARD F. WALLMAN
|
|||
Richard
F. Wallman
|
Director
|
February
26, 2010
|
|
/S/
CHRISTOPHER WRIGHT
|
|||
Christopher
Wright
|
Director
|
February
26, 2010
|