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Acquisitions | 6 Months Ended
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Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Acquisitions | Acquisitions The Company spent $424.5 million in cash, net of cash acquired, to acquire LKC Technologies ("LKC") in January 2026 and First Aviation Services, Inc. ("First Aviation") in May 2026. LKC is a leading provider of innovative technologies to enable the effective diagnosis and management of ophthalmic conditions. LKC is part of EIG. First Aviation is a leading provider of highly engineered, mission-critical defense and aviation maintenance, repair and overhaul services and a manufacturer of related proprietary components. First Aviation has annual sales of approximately $80 million. First Aviation is part of EMG. The following table represents the allocation of the purchase price for the net assets of the LKC and First Aviation acquisitions based on the estimated fair values at acquisition (in millions):
Property, plant and equipment |  |  |  |  | $ | 19.2 |
Goodwill |  |  |  |  | 188.8 |
Other intangible assets |  |  |  |  | 211.5 |
Deferred income taxes |  |  |  |  | (43.6) |
Net working capital and other(1) |  |  |  |  | 59.7 |
Total purchase price |  |  |  |  | $ | 435.6 |
Less: Acquisition date fair value of cash acquired |  |  |  |  | (11.1) |
Total cash paid |  |  |  |  | $ | 424.5 |
________________ (1)Includes $7.1 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal. The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the acquisitions. LKC's design and engineering capabilities complement the Company's existing ultra precision technologies business. First Aviation's proprietary products and services complement the Company's existing maintenance, repair and overhaul business. At June 30, 2026, the purchase price allocated to other intangible assets of $211.5 million consists of $30.2 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $181.3 million of other intangible assets consists of $148.1 million of customer relationships, which are being amortized over a period of 17 to 20 years, and $33.2 million of purchased technology, which is being amortized over a period of 15 to 17 years. Amortization expense for each of the next five years for the 2026 acquisition is expected to approximate $10 million per year. The LKC and First Aviation acquisitions had an immaterial impact on reported net sales, net income, and diluted earnings per share for the three and six months ended June 30, 2026. Had the acquisitions been made at the beginning of 2026 or 2025, pro forma net sales, net income, and diluted earnings per share for the three and six months ended June 30, 2026 and 2025, would not have been materially different than the amounts reported. The Company finalized its measurements of tangible and intangible assets and liabilities, as well as the associated income tax considerations, for its July 2025 acquisition of FARO Technologies and its January 2026 acquisition of LKC, which had no material impact to the consolidated statement of income. The Company is in the process of finalizing the measurement of the intangible assets and tangible assets and liabilities, as well as the associated income tax considerations, for its May 2026 acquisition of First Aviation. In January 2025, the Company acquired Kern Microtechnik ("Kern"). The Kern acquisition included an $8.9 million estimated fair value contingent payment due upon Kern achieving certain cumulative revenue and EBITDA targets over the period January 1, 2025 to January 1, 2027. The contingent liability was based on a probabilistic approach using level 3 inputs. At June 30, 2026, there was no material change to the estimated fair value of the contingent payment liability. Indicor, LLC Agreement On May 5, 2026, the Company announced that it has entered into a definitive agreement to acquire a portfolio of instrumentation business from Indicor, LLC ("Indicor Instrumentation") in an all-cash transaction valued at approximately $5.0 billion. Indicor Instrumentation is a collection of leading businesses that design and manufacture mission critical solutions for demanding industrial and scientific applications. Its products serve customers across end markets that align closely with the Company's existing portfolio of instrumentation businesses. Indicor Instrumentation has annual sales of approximately $1.1 billion. The transaction is subject to customary closing conditions, including applicable regulatory approvals, and is expected to close in the second half of 2026. Following closing of the transaction, the businesses will be integrated into EIG or EMG based on product offerings and market alignment.

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