GRACO INC. | ||
(Exact name of registrant as specified in its charter) |
Minnesota | 41-0285640 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
88 - 11th Avenue N.E. | |||||||||||
Minneapolis, | Minnesota | 55413 | |||||||||
(Address of principal executive offices) | (Zip Code) |
(612) | 623-6000 | ||||
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $1.00 per share | GGG | The New York Stock Exchange |
Yes | ☒ | No | ☐ |
Yes | ☒ | No | ☐ |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||
Emerging growth company | ☐ |
Yes | ☐ | No | ☒ |
Page | ||||||||||||||
PART I - FINANCIAL INFORMATION | ||||||||||||||
Item 1. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
PART II - OTHER INFORMATION | ||||||||||||||
Item 1A. | ||||||||||||||
Item 2. | ||||||||||||||
Item 6. | ||||||||||||||
EXHIBITS |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales | $ | 494,285 | $ | 454,129 | Net Sales | $ | 548,547 | $ | 507,164 | $ | 1,042,832 | $ | 961,293 | ||||||||||||||||||||||||||||||||
Cost of products sold | Cost of products sold | 239,810 | 206,795 | Cost of products sold | 279,487 | 243,340 | 519,297 | 450,135 | ||||||||||||||||||||||||||||||||||||||
Gross Profit | Gross Profit | 254,475 | 247,334 | Gross Profit | 269,060 | 263,824 | 523,535 | 511,158 | ||||||||||||||||||||||||||||||||||||||
Product development | Product development | 19,078 | 19,571 | Product development | 19,967 | 21,406 | 39,045 | 40,977 | ||||||||||||||||||||||||||||||||||||||
Selling, marketing and distribution | Selling, marketing and distribution | 62,995 | 62,228 | Selling, marketing and distribution | 62,076 | 69,126 | 125,071 | 131,354 | ||||||||||||||||||||||||||||||||||||||
General and administrative | General and administrative | 44,039 | 37,249 | General and administrative | 38,337 | 39,449 | 82,376 | 76,698 | ||||||||||||||||||||||||||||||||||||||
Operating Earnings | Operating Earnings | 128,363 | 128,286 | Operating Earnings | 148,680 | 133,843 | 277,043 | 262,129 | ||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 5,287 | 2,428 | Interest expense | 1,726 | 2,528 | 7,013 | 4,956 | ||||||||||||||||||||||||||||||||||||||
Other expense, net | Other expense, net | 153 | 121 | Other expense, net | 607 | (434) | 760 | (313) | ||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | Earnings Before Income Taxes | 122,923 | 125,737 | Earnings Before Income Taxes | 146,347 | 131,749 | 269,270 | 257,486 | ||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes | 22,080 | 20,050 | Income taxes | 28,969 | 21,631 | 51,049 | 41,681 | ||||||||||||||||||||||||||||||||||||||
Net Earnings | Net Earnings | $ | 100,843 | $ | 105,687 | Net Earnings | $ | 117,378 | $ | 110,118 | $ | 218,221 | $ | 215,805 | ||||||||||||||||||||||||||||||||
Net Earnings per Common Share | Net Earnings per Common Share | Net Earnings per Common Share | ||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 0.59 | $ | 0.63 | Basic | $ | 0.69 | $ | 0.65 | $ | 1.29 | $ | 1.27 | ||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | 0.58 | $ | 0.61 | Diluted | $ | 0.68 | $ | 0.63 | $ | 1.26 | $ | 1.24 |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net Earnings | Net Earnings | $ | 100,843 | $ | 105,687 | Net Earnings | $ | 117,378 | $ | 110,118 | $ | 218,221 | $ | 215,805 | ||||||||||||||||||||||||||||||||
Components of other comprehensive income (loss) | Components of other comprehensive income (loss) | Components of other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative translation adjustment | Cumulative translation adjustment | (2,960) | (10,470) | Cumulative translation adjustment | (13,532) | 5,693 | (16,492) | (4,777) | ||||||||||||||||||||||||||||||||||||||
Pension and postretirement medical liability adjustment | Pension and postretirement medical liability adjustment | 894 | 3,308 | Pension and postretirement medical liability adjustment | 1,368 | 2,373 | 2,262 | 5,681 | ||||||||||||||||||||||||||||||||||||||
Income taxes - pension and postretirement medical liability adjustment | Income taxes - pension and postretirement medical liability adjustment | (194) | (672) | Income taxes - pension and postretirement medical liability adjustment | (320) | (535) | (514) | (1,207) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Other comprehensive income (loss) | (2,260) | (7,834) | Other comprehensive income (loss) | (12,484) | 7,531 | (14,744) | (303) | ||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income | $ | 98,583 | $ | 97,853 | Comprehensive Income | $ | 104,894 | $ | 117,649 | $ | 203,477 | $ | 215,502 |
April 1, 2022 | December 31, 2021 | July 1, 2022 | December 31, 2021 | |||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 380,487 | $ | 624,302 | Cash and cash equivalents | $ | 413,359 | $ | 624,302 | ||||||||||||
Accounts receivable, less allowances of $7,200 and $3,900 | 339,407 | 325,132 | ||||||||||||||||||||
Accounts receivable, less allowances of $6,600 and $3,900 | Accounts receivable, less allowances of $6,600 and $3,900 | 373,141 | 325,132 | |||||||||||||||||||
Inventories | Inventories | 436,741 | 382,301 | Inventories | 450,974 | 382,301 | ||||||||||||||||
Other current assets | Other current assets | 40,585 | 31,886 | Other current assets | 39,002 | 31,886 | ||||||||||||||||
Total current assets | Total current assets | 1,197,220 | 1,363,621 | Total current assets | 1,276,476 | 1,363,621 | ||||||||||||||||
Property, Plant and Equipment, net | Property, Plant and Equipment, net | 487,805 | 451,061 | Property, Plant and Equipment, net | 516,156 | 451,061 | ||||||||||||||||
Goodwill | Goodwill | 371,401 | 356,255 | Goodwill | 365,491 | 356,255 | ||||||||||||||||
Other Intangible Assets, net | Other Intangible Assets, net | 154,006 | 149,740 | Other Intangible Assets, net | 145,201 | 149,740 | ||||||||||||||||
Operating Lease Assets | Operating Lease Assets | 31,228 | 30,046 | Operating Lease Assets | 31,055 | 30,046 | ||||||||||||||||
Deferred Income Taxes | Deferred Income Taxes | 42,195 | 55,786 | Deferred Income Taxes | 37,137 | 55,786 | ||||||||||||||||
Other Assets | Other Assets | 35,590 | 36,689 | Other Assets | 32,762 | 36,689 | ||||||||||||||||
Total Assets | Total Assets | $ | 2,319,445 | $ | 2,443,198 | Total Assets | $ | 2,404,278 | $ | 2,443,198 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||||||||
Notes payable to banks | Notes payable to banks | $ | 40,160 | $ | 43,489 | Notes payable to banks | $ | 55,522 | $ | 43,489 | ||||||||||||
Current portion of long term debt | Current portion of long term debt | — | 75,000 | Current portion of long term debt | — | 75,000 | ||||||||||||||||
Trade accounts payable | Trade accounts payable | 88,108 | 78,432 | Trade accounts payable | 85,452 | 78,432 | ||||||||||||||||
Salaries and incentives | Salaries and incentives | 47,809 | 82,941 | Salaries and incentives | 53,198 | 82,941 | ||||||||||||||||
Dividends payable | Dividends payable | 35,678 | 35,771 | Dividends payable | 35,794 | 35,771 | ||||||||||||||||
Other current liabilities | Other current liabilities | 190,558 | 191,159 | Other current liabilities | 194,092 | 191,159 | ||||||||||||||||
Total current liabilities | Total current liabilities | 402,313 | 506,792 | Total current liabilities | 424,058 | 506,792 | ||||||||||||||||
Long-term Debt | Long-term Debt | 75,000 | 75,000 | Long-term Debt | 75,000 | 75,000 | ||||||||||||||||
Retirement Benefits and Deferred Compensation | Retirement Benefits and Deferred Compensation | 105,129 | 106,897 | Retirement Benefits and Deferred Compensation | 103,341 | 106,897 | ||||||||||||||||
Operating Lease Liabilities | Operating Lease Liabilities | 24,209 | 23,527 | Operating Lease Liabilities | 23,112 | 23,527 | ||||||||||||||||
Deferred Income Taxes | Deferred Income Taxes | 10,193 | 10,661 | Deferred Income Taxes | 9,273 | 10,661 | ||||||||||||||||
Other Non-current Liabilities | Other Non-current Liabilities | 12,345 | 10,978 | Other Non-current Liabilities | 12,220 | 10,978 | ||||||||||||||||
Shareholders’ Equity | Shareholders’ Equity | Shareholders’ Equity | ||||||||||||||||||||
Common stock | Common stock | 169,223 | 170,308 | Common stock | 169,114 | 170,308 | ||||||||||||||||
Additional paid-in-capital | Additional paid-in-capital | 761,959 | 742,288 | Additional paid-in-capital | 770,209 | 742,288 | ||||||||||||||||
Retained earnings | Retained earnings | 841,503 | 876,916 | Retained earnings | 912,864 | 876,916 | ||||||||||||||||
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | (82,429) | (80,169) | Accumulated other comprehensive income (loss) | (94,913) | (80,169) | ||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 1,690,256 | 1,709,343 | Total shareholders’ equity | 1,757,274 | 1,709,343 | ||||||||||||||||
Total Liabilities and Shareholders’ Equity | Total Liabilities and Shareholders’ Equity | $ | 2,319,445 | $ | 2,443,198 | Total Liabilities and Shareholders’ Equity | $ | 2,404,278 | $ | 2,443,198 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||
Cash Flows From Operating Activities | Cash Flows From Operating Activities | Cash Flows From Operating Activities | ||||||||||||||||||||
Net Earnings | Net Earnings | $ | 100,843 | $ | 105,687 | Net Earnings | $ | 218,221 | $ | 215,805 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities | Adjustments to reconcile net earnings to net cash provided by operating activities | Adjustments to reconcile net earnings to net cash provided by operating activities | ||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 15,570 | 14,515 | Depreciation and amortization | 31,453 | 29,812 | ||||||||||||||||
Deferred income taxes | Deferred income taxes | 10,973 | 1,842 | Deferred income taxes | 14,743 | (10,313) | ||||||||||||||||
Share-based compensation | Share-based compensation | 7,088 | 6,618 | Share-based compensation | 14,386 | 13,745 | ||||||||||||||||
Change in | Change in | Change in | ||||||||||||||||||||
Accounts receivable | Accounts receivable | (14,296) | (10,611) | Accounts receivable | (56,263) | (38,747) | ||||||||||||||||
Inventories | Inventories | (52,979) | (27,541) | Inventories | (70,879) | (51,359) | ||||||||||||||||
Trade accounts payable | Trade accounts payable | 9,216 | 9,323 | Trade accounts payable | 8,369 | 14,496 | ||||||||||||||||
Salaries and incentives | Salaries and incentives | (35,341) | (6,949) | Salaries and incentives | (29,201) | 8,334 | ||||||||||||||||
Retirement benefits and deferred compensation | Retirement benefits and deferred compensation | (136) | 2,867 | Retirement benefits and deferred compensation | 349 | 5,980 | ||||||||||||||||
Other accrued liabilities | Other accrued liabilities | (8,690) | 4,493 | Other accrued liabilities | (386) | 32,399 | ||||||||||||||||
Other | Other | (923) | 1,425 | Other | 4,193 | (105) | ||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 31,325 | 101,669 | Net cash provided by operating activities | 134,985 | 220,047 | ||||||||||||||||
Cash Flows From Investing Activities | Cash Flows From Investing Activities | Cash Flows From Investing Activities | ||||||||||||||||||||
Property, plant and equipment additions | Property, plant and equipment additions | (47,093) | (21,415) | Property, plant and equipment additions | (88,861) | (54,759) | ||||||||||||||||
Acquisition of businesses, net of cash acquired | Acquisition of businesses, net of cash acquired | (25,016) | — | Acquisition of businesses, net of cash acquired | (25,296) | (19,322) | ||||||||||||||||
Other | Other | (134) | (34) | Other | (397) | (112) | ||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (72,243) | (21,449) | Net cash used in investing activities | (114,554) | (74,193) | ||||||||||||||||
Cash Flows From Financing Activities | Cash Flows From Financing Activities | Cash Flows From Financing Activities | ||||||||||||||||||||
Borrowings on short-term lines of credit, net | Borrowings on short-term lines of credit, net | (3,420) | 9,667 | Borrowings on short-term lines of credit, net | 13,830 | (9,282) | ||||||||||||||||
Payments on long-term debt | Payments on long-term debt | (75,000) | — | Payments on long-term debt | (75,000) | (70) | ||||||||||||||||
Payments of debt issuance costs | Payments of debt issuance costs | — | (1,404) | Payments of debt issuance costs | — | (1,422) | ||||||||||||||||
Common stock issued | Common stock issued | 21,294 | 26,460 | Common stock issued | 23,410 | 33,216 | ||||||||||||||||
Common stock repurchased | Common stock repurchased | (108,706) | — | Common stock repurchased | (120,021) | — | ||||||||||||||||
Taxes paid related to net share settlement of equity awards | Taxes paid related to net share settlement of equity awards | (1,219) | — | Taxes paid related to net share settlement of equity awards | (1,219) | — | ||||||||||||||||
Cash dividends paid | Cash dividends paid | (35,801) | (31,642) | Cash dividends paid | (71,341) | (63,414) | ||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (202,852) | 3,081 | Net cash used in financing activities | (230,341) | (40,972) | ||||||||||||||||
Effect of exchange rate changes on cash | Effect of exchange rate changes on cash | (45) | (1,594) | Effect of exchange rate changes on cash | (1,033) | (1,004) | ||||||||||||||||
Net increase in cash and cash equivalents | Net increase in cash and cash equivalents | (243,815) | 81,707 | Net increase in cash and cash equivalents | (210,943) | 103,878 | ||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||||||||||
Beginning of year | Beginning of year | 624,302 | 378,909 | Beginning of year | 624,302 | 378,909 | ||||||||||||||||
End of period | End of period | $ | 380,487 | $ | 460,616 | End of period | $ | 413,359 | $ | 482,787 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||
Three Months Ended April 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | 170,308 | $ | 742,288 | $ | 876,916 | $ | (80,169) | $ | 1,709,343 | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended July 1, 2022 | Three Months Ended July 1, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | Balance, April 1, 2022 | $ | 169,223 | $ | 761,959 | $ | 841,503 | $ | (82,429) | $ | 1,690,256 | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued | Shares issued | 437 | 19,638 | 0 | 0 | 20,075 | Shares issued | 70 | 2,047 | 0 | 0 | 2,117 | ||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | Shares repurchased | (1,522) | (6,636) | (100,548) | 0 | (108,706) | Shares repurchased | (179) | (777) | (10,360) | 0 | (11,316) | ||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation cost | Stock compensation cost | 0 | 6,670 | 0 | 0 | 6,670 | Stock compensation cost | 0 | 6,980 | 0 | 0 | 6,980 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock canceled (issued) | Restricted stock canceled (issued) | 0 | (1) | 0 | 0 | (1) | Restricted stock canceled (issued) | 0 | — | 0 | 0 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | 0 | 0 | 100,843 | 0 | 100,843 | Net earnings | 0 | 0 | 117,378 | 0 | 117,378 | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.210 per share) | Dividends declared ($0.210 per share) | 0 | 0 | (35,708) | 0 | (35,708) | Dividends declared ($0.210 per share) | 0 | 0 | (35,657) | 0 | (35,657) | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Other comprehensive income (loss) | 0 | 0 | 0 | (2,260) | (2,260) | Other comprehensive income (loss) | 0 | 0 | 0 | (12,484) | (12,484) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | 169,223 | $ | 761,959 | $ | 841,503 | $ | (82,429) | $ | 1,690,256 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2022 | Balance, July 1, 2022 | $ | 169,114 | $ | 770,209 | $ | 912,864 | $ | (94,913) | $ | 1,757,274 |
Six Months Ended July 1, 2022 | |||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | 170,308 | $ | 742,288 | $ | 876,916 | $ | (80,169) | $ | 1,709,343 | |||||||||||||||||||
Shares issued | 507 | 21,685 | 0 | 0 | 22,192 | ||||||||||||||||||||||||
Shares repurchased | (1,701) | (7,412) | (110,908) | 0 | (120,021) | ||||||||||||||||||||||||
Stock compensation cost | 0 | 13,649 | 0 | 0 | 0 | 13,649 | |||||||||||||||||||||||
Restricted stock canceled (issued) | 0 | (1) | 0 | 0 | (1) | ||||||||||||||||||||||||
Net earnings | 0 | 0 | 218,221 | 0 | 218,221 | ||||||||||||||||||||||||
Dividends declared ($0.420 per share) | 0 | 0 | (71,365) | 0 | (71,365) | ||||||||||||||||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | (14,744) | (14,744) | ||||||||||||||||||||||||
Balance, July 1, 2022 | $ | 169,114 | $ | 770,209 | $ | 912,864 | $ | (94,913) | $ | 1,757,274 |
Three Months Ended June 25, 2021 | |||||||||||||||||||||||||||||
Balance, March 26, 2021 | $ | 169,413 | $ | 702,829 | $ | 642,259 | $ | (131,999) | $ | 1,382,502 | |||||||||||||||||||
Shares issued | 254 | 8,838 | — | — | 9,092 | ||||||||||||||||||||||||
Stock compensation cost | — | 6,304 | — | — | 6,304 | ||||||||||||||||||||||||
Restricted stock canceled (issued) | — | (2,336) | — | — | (2,336) | ||||||||||||||||||||||||
Net earnings | — | — | 110,118 | — | 110,118 | ||||||||||||||||||||||||
Dividends declared ($0.188 per share) | — | — | (31,948) | — | (31,948) | ||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | 7,531 | 7,531 | ||||||||||||||||||||||||
Balance, June 25, 2021 | $ | 169,667 | $ | 715,635 | $ | 720,429 | $ | (124,468) | $ | 1,481,263 |
Three Months Ended March 26, 2021 | |||||||||||||||||||||||||||||
Balance, December 25, 2020 | $ | 168,568 | $ | 671,206 | $ | 568,295 | $ | (124,165) | $ | 1,283,904 | |||||||||||||||||||
Shares issued | 845 | 25,615 | — | — | 26,460 | ||||||||||||||||||||||||
Stock compensation cost | — | 6,008 | — | — | 6,008 | ||||||||||||||||||||||||
Net earnings | — | — | 105,687 | — | 105,687 | ||||||||||||||||||||||||
Dividends declared ($0.188 per share) | — | — | (31,723) | — | (31,723) | ||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | (7,834) | (7,834) | ||||||||||||||||||||||||
Balance, March 26, 2021 | $ | 169,413 | $ | 702,829 | $ | 642,259 | $ | (131,999) | $ | 1,382,502 |
Six Months Ended June 25, 2021 | |||||||||||||||||||||||||||||
Balance, December 25, 2020 | $ | 168,568 | $ | 671,206 | $ | 568,295 | $ | (124,165) | $ | 1,283,904 | |||||||||||||||||||
Shares issued | 1,099 | 34,453 | — | — | 35,552 | ||||||||||||||||||||||||
Stock compensation cost | — | 12,312 | — | — | 12,312 | ||||||||||||||||||||||||
Restricted stock canceled (issued) | — | (2,336) | — | — | (2,336) | ||||||||||||||||||||||||
Net earnings | — | — | 215,805 | — | 215,805 | ||||||||||||||||||||||||
Dividends declared ($0.375 per share) | — | — | (63,671) | — | (63,671) | ||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | (303) | (303) | ||||||||||||||||||||||||
Balance, June 25, 2021 | $ | 169,667 | $ | 715,635 | $ | 720,429 | $ | (124,468) | $ | 1,481,263 |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales | Net Sales | ||||||||||||||||||||||||||||||||||||||||||||
Industrial | Industrial | $ | 144,669 | $ | 129,864 | Industrial | $ | 158,325 | $ | 144,448 | $ | 302,994 | $ | 274,312 | ||||||||||||||||||||||||||||||||
Process | Process | 115,024 | 91,373 | Process | 124,483 | 97,232 | 239,507 | 188,605 | ||||||||||||||||||||||||||||||||||||||
Contractor | Contractor | 234,592 | 232,892 | Contractor | 265,739 | 265,484 | 500,331 | 498,376 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 494,285 | $ | 454,129 | Total | $ | 548,547 | $ | 507,164 | $ | 1,042,832 | $ | 961,293 | ||||||||||||||||||||||||||||||||
Operating Earnings | Operating Earnings | Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||
Industrial | Industrial | $ | 52,630 | $ | 42,358 | Industrial | $ | 55,201 | $ | 45,709 | $ | 107,831 | $ | 88,067 | ||||||||||||||||||||||||||||||||
Process | Process | 27,488 | 21,733 | Process | 31,057 | 21,676 | 58,545 | 43,409 | ||||||||||||||||||||||||||||||||||||||
Contractor | Contractor | 58,947 | 71,051 | Contractor | 68,244 | 73,656 | 127,191 | 144,707 | ||||||||||||||||||||||||||||||||||||||
Unallocated corporate (expense) | Unallocated corporate (expense) | (10,702) | (6,856) | Unallocated corporate (expense) | (5,822) | (7,198) | (16,524) | (14,054) | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 128,363 | $ | 128,286 | Total | $ | 148,680 | $ | 133,843 | $ | 277,043 | $ | 262,129 |
April 1, 2022 | December 31, 2021 | July 1, 2022 | December 31, 2021 | |||||||||||||||||||
Industrial | Industrial | $ | 601,377 | $ | 601,843 | Industrial | $ | 604,654 | $ | 601,843 | ||||||||||||
Process | Process | 497,363 | 436,203 | Process | 517,098 | 436,203 | ||||||||||||||||
Contractor | Contractor | 614,150 | 599,726 | Contractor | 658,361 | 599,726 | ||||||||||||||||
Unallocated corporate | Unallocated corporate | 606,555 | 805,426 | Unallocated corporate | 624,165 | 805,426 | ||||||||||||||||
Total | Total | $ | 2,319,445 | $ | 2,443,198 | Total | $ | 2,404,278 | $ | 2,443,198 |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net Sales (based on customer location) | Net Sales (based on customer location) | Net Sales (based on customer location) | ||||||||||||||||||||||||||||||||||||||||||||
United States | United States | $ | 255,082 | $ | 231,501 | United States | $ | 296,009 | $ | 263,722 | $ | 551,091 | $ | 495,223 | ||||||||||||||||||||||||||||||||
Other countries | Other countries | 239,203 | 222,628 | Other countries | 252,538 | 243,442 | 491,741 | 466,070 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 494,285 | $ | 454,129 | Total | $ | 548,547 | $ | 507,164 | $ | 1,042,832 | $ | 961,293 |
April 1, 2022 | December 31, 2021 | July 1, 2022 | December 31, 2021 | |||||||||||||||||||
Long-lived Assets | Long-lived Assets | Long-lived Assets | ||||||||||||||||||||
United States | United States | $ | 425,657 | $ | 388,835 | United States | $ | 456,238 | $ | 388,835 | ||||||||||||
Other countries | Other countries | 62,148 | 62,226 | Other countries | 59,918 | 62,226 | ||||||||||||||||
Total | Total | $ | 487,805 | $ | 451,061 | Total | $ | 516,156 | $ | 451,061 |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net earnings available to common shareholders | Net earnings available to common shareholders | $ | 100,843 | $ | 105,687 | Net earnings available to common shareholders | $ | 117,378 | $ | 110,118 | $ | 218,221 | $ | 215,805 | ||||||||||||||||||||||||||||||||
Weighted average shares outstanding for basic earnings per share | Weighted average shares outstanding for basic earnings per share | 169,809 | 168,948 | Weighted average shares outstanding for basic earnings per share | 169,128 | 169,594 | 169,469 | 169,271 | ||||||||||||||||||||||||||||||||||||||
Dilutive effect of stock options computed using the treasury stock method and the average market price | Dilutive effect of stock options computed using the treasury stock method and the average market price | 4,869 | 4,900 | Dilutive effect of stock options computed using the treasury stock method and the average market price | 3,570 | 4,978 | 4,219 | 4,939 | ||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding for diluted earnings per share | Weighted average shares outstanding for diluted earnings per share | 174,678 | 173,848 | Weighted average shares outstanding for diluted earnings per share | 172,698 | 174,572 | 173,688 | 174,210 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | Basic earnings per share | $ | 0.59 | $ | 0.63 | Basic earnings per share | $ | 0.69 | $ | 0.65 | $ | 1.29 | $ | 1.27 | ||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | $ | 0.58 | $ | 0.61 | Diluted earnings per share | $ | 0.68 | $ | 0.63 | $ | 1.26 | $ | 1.24 |
Option Shares | Weighted Average Exercise Price | Options Exercisable | Weighted Average Exercise Price | Option Shares | Weighted Average Exercise Price | Options Exercisable | Weighted Average Exercise Price | |||||||||||||||||||||||||||||||||||||||
Outstanding, December 31, 2021 | Outstanding, December 31, 2021 | 9,575 | $ | 39.31 | 7,296 | $ | 33.75 | Outstanding, December 31, 2021 | 9,575 | $ | 39.31 | 7,296 | $ | 33.75 | ||||||||||||||||||||||||||||||||
Granted | Granted | 831 | 71.73 | Granted | 831 | 71.73 | ||||||||||||||||||||||||||||||||||||||||
Exercised | Exercised | (162) | 22.90 | Exercised | (228) | 24.62 | ||||||||||||||||||||||||||||||||||||||||
Canceled | Canceled | (19) | 43.06 | Canceled | (24) | 43.75 | ||||||||||||||||||||||||||||||||||||||||
Outstanding, April 1, 2022 | 10,225 | $ | 42.20 | 7,751 | $ | 35.67 | ||||||||||||||||||||||||||||||||||||||||
Outstanding, July 1, 2022 | Outstanding, July 1, 2022 | 10,154 | $ | 42.29 | 7,809 | $ | 36.06 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||
Expected life in years | Expected life in years | 7.3 | 7.5 | Expected life in years | 7.3 | 7.5 | ||||||||||||||||
Interest rate | Interest rate | 1.9 | % | 0.9 | % | Interest rate | 1.9 | % | 1.2 | % | ||||||||||||
Volatility | Volatility | 25.5 | % | 25.2 | % | Volatility | 25.5 | % | 25.3 | % | ||||||||||||
Dividend yield | Dividend yield | 1.2 | % | 1.0 | % | Dividend yield | 1.2 | % | 1.0 | % | ||||||||||||
Weighted average fair value per share | Weighted average fair value per share | $ | 19.06 | $ | 17.66 | Weighted average fair value per share | $ | 19.06 | $ | 18.91 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||
Expected life in years | Expected life in years | 1.0 | 1.0 | Expected life in years | 1.0 | 1.0 | ||||||||||||||||
Interest rate | Interest rate | 0.9 | % | 0.1 | % | Interest rate | 0.9 | % | 0.1 | % | ||||||||||||
Volatility | Volatility | 20.5 | % | 40.1 | % | Volatility | 20.5 | % | 40.1 | % | ||||||||||||
Dividend yield | Dividend yield | 1.2 | % | 1.1 | % | Dividend yield | 1.2 | % | 1.1 | % | ||||||||||||
Weighted average fair value per share | Weighted average fair value per share | $ | 16.01 | $ | 21.50 | Weighted average fair value per share | $ | 16.01 | $ | 21.50 |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | 2,170 | $ | 2,721 | Service cost | $ | 1,964 | $ | 2,724 | $ | 4,134 | $ | 5,445 | ||||||||||||||||||||||||||||||||
Interest cost | Interest cost | 2,738 | 2,981 | Interest cost | 2,766 | 2,976 | 5,504 | 5,957 | ||||||||||||||||||||||||||||||||||||||
Expected return on assets | Expected return on assets | (4,802) | (5,130) | Expected return on assets | (4,777) | (5,131) | (9,579) | (10,261) | ||||||||||||||||||||||||||||||||||||||
Amortization and other | Amortization and other | 1,076 | 2,551 | Amortization and other | 1,419 | 2,555 | 2,495 | 5,106 | ||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | Net periodic benefit cost | $ | 1,182 | $ | 3,123 | Net periodic benefit cost | $ | 1,372 | $ | 3,124 | $ | 2,554 | $ | 6,247 | ||||||||||||||||||||||||||||||||
Postretirement Medical | Postretirement Medical | Postretirement Medical | ||||||||||||||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | 175 | $ | 175 | Service cost | $ | 83 | $ | 175 | $ | 258 | $ | 350 | ||||||||||||||||||||||||||||||||
Interest cost | Interest cost | 225 | 250 | Interest cost | 195 | 250 | 420 | 500 | ||||||||||||||||||||||||||||||||||||||
Amortization | Amortization | 175 | 250 | Amortization | (2) | 250 | 173 | 500 | ||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | Net periodic benefit cost | $ | 575 | $ | 675 | Net periodic benefit cost | $ | 276 | $ | 675 | $ | 851 | $ | 1,350 |
Pension and Postretirement Medical | Cumulative Translation Adjustment | Total | Pension and Postretirement Medical | Cumulative Translation Adjustment | Total | |||||||||||||||||||||||||||||
Three Months Ended April 1, 2022 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | (60,107) | $ | (20,062) | $ | (80,169) | ||||||||||||||||||||||||||||
Three Months Ended July 1, 2022 | Three Months Ended July 1, 2022 | |||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | Balance, April 1, 2022 | $ | (59,407) | $ | (23,022) | $ | (82,429) | |||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | — | (2,960) | (2,960) | Other comprehensive income (loss) before reclassifications | — | (13,532) | (13,532) | ||||||||||||||||||||||||||
Reclassified to pension cost and deferred tax | Reclassified to pension cost and deferred tax | 700 | — | 700 | Reclassified to pension cost and deferred tax | 1,048 | — | 1,048 | ||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | (59,407) | $ | (23,022) | $ | (82,429) | ||||||||||||||||||||||||||||
Balance, July 1, 2022 | Balance, July 1, 2022 | $ | (58,359) | $ | (36,554) | $ | (94,913) |
Three Months Ended March 26, 2021 | |||||||||||||||||
Balance, December 25, 2020 | $ | (114,129) | $ | (10,036) | $ | (124,165) | |||||||||||
Other comprehensive income (loss) before reclassifications | — | (10,470) | (10,470) | ||||||||||||||
Reclassified to pension cost and deferred tax | 2,636 | — | 2,636 | ||||||||||||||
Balance, March 26, 2021 | $ | (111,493) | $ | (20,506) | $ | (131,999) |
Six Months Ended July 1, 2022 | |||||||||||||||||
Balance, December 31, 2021 | $ | (60,107) | $ | (20,062) | $ | (80,169) | |||||||||||
Other comprehensive income (loss) before reclassifications | — | (16,492) | (16,492) | ||||||||||||||
Reclassified to pension cost and deferred tax | 1,748 | — | 1,748 | ||||||||||||||
Balance, July 1, 2022 | $ | (58,359) | $ | (36,554) | $ | (94,913) |
Three Months Ended June 25, 2021 | |||||||||||||||||
Balance, March 26, 2021 | $ | (111,493) | $ | (20,506) | $ | (131,999) | |||||||||||
Other comprehensive income (loss) before reclassifications | — | 5,693 | 5,693 | ||||||||||||||
Reclassified to pension cost and deferred tax | 1,838 | — | 1,838 | ||||||||||||||
Balance, June 25, 2021 | $ | (109,655) | $ | (14,813) | $ | (124,468) |
Six Months Ended June 25, 2021 | |||||||||||||||||
Balance, December 25, 2020 | $ | (114,129) | $ | (10,036) | $ | (124,165) | |||||||||||
Other comprehensive income (loss) before reclassifications | — | (4,777) | (4,777) | ||||||||||||||
Reclassified to pension cost and deferred tax | 4,474 | — | 4,474 | ||||||||||||||
Balance, June 25, 2021 | $ | (109,655) | $ | (14,813) | $ | (124,468) |
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||
Balance, beginning | Balance, beginning | $ | 3,254 | $ | 3,745 | Balance, beginning | $ | 3,254 | $ | 3,745 | ||||||||||||
Additions (reversals) charged to costs and expenses | Additions (reversals) charged to costs and expenses | 3,220 | 158 | Additions (reversals) charged to costs and expenses | 3,246 | 265 | ||||||||||||||||
Deductions from reserves (1) | Deductions from reserves (1) | (33) | (104) | Deductions from reserves (1) | (575) | (495) | ||||||||||||||||
Other additions (deductions) (2) | Other additions (deductions) (2) | 33 | (75) | Other additions (deductions) (2) | (236) | (4) | ||||||||||||||||
Balance, ending | Balance, ending | $ | 6,474 | $ | 3,724 | Balance, ending | $ | 5,688 | $ | 3,511 |
April 1, 2022 | December 31, 2021 | July 1, 2022 | December 31, 2021 | |||||||||||||||||||
Finished products and components | Finished products and components | $ | 194,563 | $ | 166,922 | Finished products and components | $ | 197,042 | $ | 166,922 | ||||||||||||
Products and components in various stages of completion | Products and components in various stages of completion | 126,214 | 117,063 | Products and components in various stages of completion | 137,268 | 117,063 | ||||||||||||||||
Raw materials and purchased components | Raw materials and purchased components | 205,893 | 185,291 | Raw materials and purchased components | 221,746 | 185,291 | ||||||||||||||||
Subtotal | Subtotal | 526,670 | 469,276 | Subtotal | 556,056 | 469,276 | ||||||||||||||||
Reduction to LIFO cost | Reduction to LIFO cost | (89,929) | (86,975) | Reduction to LIFO cost | (105,082) | (86,975) | ||||||||||||||||
Total | Total | $ | 436,741 | $ | 382,301 | Total | $ | 450,974 | $ | 382,301 |
Finite Life | Indefinite Life | Finite Life | Indefinite Life | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Relationships | Patents and Proprietary Technology | Trademarks, Trade Names and Other | Trade Names | Total | Customer Relationships | Patents and Proprietary Technology | Trademarks, Trade Names and Other | Trade Names | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
As of April 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of July 1, 2022 | As of July 1, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost | Cost | $ | 202,903 | $ | 26,974 | $ | 1,700 | $ | 62,633 | $ | 294,210 | Cost | $ | 202,903 | $ | 26,974 | $ | 1,700 | $ | 62,633 | $ | 294,210 | ||||||||||||||||||||||||||||||||||||
Accumulated amortization | Accumulated amortization | (112,499) | (16,454) | (503) | — | (129,456) | Accumulated amortization | (116,312) | (17,176) | (581) | — | (134,069) | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | Foreign currency translation | (8,410) | (761) | — | (1,577) | (10,748) | Foreign currency translation | (10,815) | (930) | — | (3,195) | (14,940) | ||||||||||||||||||||||||||||||||||||||||||||||
Book value | Book value | $ | 81,994 | $ | 9,759 | $ | 1,197 | $ | 61,056 | $ | 154,006 | Book value | $ | 75,776 | $ | 8,868 | $ | 1,119 | $ | 59,438 | $ | 145,201 | ||||||||||||||||||||||||||||||||||||
Weighted average life in years | Weighted average life in years | 13 | 10 | 5 | N/A | Weighted average life in years | 13 | 9 | 5 | N/A |
As of December 31, 2021 | |||||||||||||||||||||||||||||
Cost | $ | 194,505 | $ | 26,074 | $ | 900 | $ | 62,633 | $ | 284,112 | |||||||||||||||||||
Accumulated amortization | (108,657) | (15,734) | (452) | — | (124,843) | ||||||||||||||||||||||||
Foreign currency translation | (7,710) | (707) | — | (1,112) | (9,529) | ||||||||||||||||||||||||
Book value | $ | 78,138 | $ | 9,633 | $ | 448 | $ | 61,521 | $ | 149,740 | |||||||||||||||||||
Weighted average life in years | 13 | 10 | 5 | N/A |
2022 (Remainder) | 2023 | 2024 | 2025 | 2026 | Thereafter | ||||||||||||||||||||||||||||||
Estimated Amortization Expense | $ | 14,503 | $ | 17,776 | $ | 16,533 | $ | 15,967 | $ | 9,155 | $ | 19,016 |
2022 (Remainder) | 2023 | 2024 | 2025 | 2026 | Thereafter | ||||||||||||||||||||||||||||||
Estimated Amortization Expense | $ | 9,253 | $ | 17,309 | $ | 16,076 | $ | 15,511 | $ | 8,915 | $ | 18,699 |
Industrial | Process | Contractor | Total | Industrial | Process | Contractor | Total | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | Balance, December 31, 2021 | $ | 185,733 | $ | 141,304 | $ | 29,218 | $ | 356,255 | Balance, December 31, 2021 | $ | 185,733 | $ | 141,304 | $ | 29,218 | $ | 356,255 | ||||||||||||||||||||||||||||
Additions, adjustments from business acquisitions | Additions, adjustments from business acquisitions | — | 16,862 | — | 16,862 | Additions, adjustments from business acquisitions | — | 16,994 | — | 16,994 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation | Foreign currency translation | (1,246) | (470) | — | (1,716) | Foreign currency translation | (5,977) | (1,781) | — | (7,758) | ||||||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | 184,487 | $ | 157,696 | $ | 29,218 | $ | 371,401 | ||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2022 | Balance, July 1, 2022 | $ | 179,756 | $ | 156,517 | $ | 29,218 | $ | 365,491 |
April 1, 2022 | December 31, 2021 | July 1, 2022 | December 31, 2021 | |||||||||||||||||||
Accrued self-insurance retentions | Accrued self-insurance retentions | $ | 11,576 | $ | 9,303 | Accrued self-insurance retentions | $ | 9,553 | $ | 9,303 | ||||||||||||
Accrued warranty and service liabilities | Accrued warranty and service liabilities | 14,560 | 14,463 | Accrued warranty and service liabilities | 14,188 | 14,463 | ||||||||||||||||
Accrued trade promotions | Accrued trade promotions | 10,141 | 15,872 | Accrued trade promotions | 12,762 | 15,872 | ||||||||||||||||
Payable for employee stock purchases | Payable for employee stock purchases | 3,921 | 15,746 | Payable for employee stock purchases | 8,767 | 15,746 | ||||||||||||||||
Customer advances and deferred revenue | Customer advances and deferred revenue | 66,668 | 60,554 | Customer advances and deferred revenue | 69,222 | 60,554 | ||||||||||||||||
Income taxes payable | Income taxes payable | 12,481 | 5,200 | Income taxes payable | 12,975 | 5,200 | ||||||||||||||||
Right of return refund liability | Right of return refund liability | 18,713 | 18,614 | Right of return refund liability | 18,556 | 18,614 | ||||||||||||||||
Operating lease liabilities, current | Operating lease liabilities, current | 9,449 | 9,096 | Operating lease liabilities, current | 9,384 | 9,096 | ||||||||||||||||
Other | Other | 43,049 | 42,311 | Other | 38,685 | 42,311 | ||||||||||||||||
Total | Total | $ | 190,558 | $ | 191,159 | Total | $ | 194,092 | $ | 191,159 |
Balance, December 31, 2021 | $ | 14,463 | |||
Assumed in business acquisition | 38 | ||||
Charged to expense | |||||
Margin on parts sales reversed | |||||
Reductions for claims settled | |||||
Balance, | $ |
Level | April 1, 2022 | December 31, 2021 | Level | July 1, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||
Cash surrender value of life insurance | Cash surrender value of life insurance | 2 | $ | 22,052 | $ | 23,147 | Cash surrender value of life insurance | 2 | $ | 18,872 | $ | 23,147 | ||||||||||||||||||||||
Forward exchange contracts | Forward exchange contracts | 2 | 145 | — | ||||||||||||||||||||||||||||||
Total assets at fair value | Total assets at fair value | $ | 19,017 | $ | 23,147 | |||||||||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||
Contingent consideration | Contingent consideration | 3 | $ | 15,924 | $ | 12,274 | Contingent consideration | 3 | $ | 13,697 | $ | 12,274 | ||||||||||||||||||||||
Deferred compensation | Deferred compensation | 2 | 5,795 | 5,962 | Deferred compensation | 2 | 5,537 | 5,962 | ||||||||||||||||||||||||||
Forward exchange contracts | Forward exchange contracts | 2 | 173 | 111 | Forward exchange contracts | 2 | — | 111 | ||||||||||||||||||||||||||
Total liabilities at fair value | Total liabilities at fair value | $ | 21,892 | $ | 18,347 | Total liabilities at fair value | $ | 19,234 | $ | 18,347 |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Apr 1, 2022 | Mar 26, 2021 | % Change | Jul 1, 2022 | Jun 25, 2021 | % Change | Jul 1, 2022 | Jun 25, 2021 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales | $ | 494.3 | $ | 454.1 | 9 | % | Net Sales | $ | 548.5 | $ | 507.2 | 8 | % | $ | 1,042.8 | $ | 961.3 | 8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Earnings | Operating Earnings | 128.4 | 128.3 | — | % | Operating Earnings | 148.7 | 133.8 | 11 | % | 277.0 | 262.1 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings | Net Earnings | 100.8 | 105.7 | (5) | % | Net Earnings | 117.4 | 110.1 | 7 | % | 218.2 | 215.8 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings, adjusted (1) | Net Earnings, adjusted (1) | 99.3 | 101.6 | (2) | % | Net Earnings, adjusted (1) | 117.0 | 108.0 | 8 | % | 216.3 | 209.6 | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted Net Earnings per Common Share | Diluted Net Earnings per Common Share | $ | 0.58 | $ | 0.61 | (5) | % | Diluted Net Earnings per Common Share | $ | 0.68 | $ | 0.63 | 8 | % | $ | 1.26 | $ | 1.24 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted Net Earnings per Common Share, adjusted (1) | Diluted Net Earnings per Common Share, adjusted (1) | $ | 0.57 | $ | 0.58 | (2) | % | Diluted Net Earnings per Common Share, adjusted (1) | $ | 0.68 | $ | 0.62 | 10 | % | $ | 1.25 | $ | 1.20 | 4 | % |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | Earnings before income taxes | $ | 122.9 | $ | 125.7 | Earnings before income taxes | $ | 146.3 | $ | 131.7 | $ | 269.3 | $ | 257.5 | ||||||||||||||||||||||||||||||||
Income taxes, as reported | Income taxes, as reported | $ | 22.1 | $ | 20.0 | Income taxes, as reported | $ | 29.0 | $ | 21.6 | $ | 51.1 | $ | 41.7 | ||||||||||||||||||||||||||||||||
Excess tax benefit from option exercises | Excess tax benefit from option exercises | 1.5 | 4.1 | Excess tax benefit from option exercises | 0.4 | 2.1 | 1.9 | 6.2 | ||||||||||||||||||||||||||||||||||||||
Income taxes, adjusted | Income taxes, adjusted | $ | 23.6 | $ | 24.1 | Income taxes, adjusted | $ | 29.4 | $ | 23.7 | $ | 53.0 | $ | 47.9 | ||||||||||||||||||||||||||||||||
Effective income tax rate | Effective income tax rate | Effective income tax rate | ||||||||||||||||||||||||||||||||||||||||||||
As reported | As reported | 18.0 | % | 15.9 | % | As reported | 19.8 | % | 16.4 | % | 19.0 | % | 16.2 | % | ||||||||||||||||||||||||||||||||
Adjusted | Adjusted | 19.2 | % | 19.2 | % | Adjusted | 20.0 | % | 18.0 | % | 19.7 | % | 18.6 | % | ||||||||||||||||||||||||||||||||
Net Earnings, as reported | Net Earnings, as reported | $ | 100.8 | $ | 105.7 | Net Earnings, as reported | $ | 117.4 | $ | 110.1 | $ | 218.2 | $ | 215.8 | ||||||||||||||||||||||||||||||||
Excess tax benefit from option exercises | Excess tax benefit from option exercises | (1.5) | (4.1) | Excess tax benefit from option exercises | (0.4) | (2.1) | (1.9) | (6.2) | ||||||||||||||||||||||||||||||||||||||
Net Earnings, adjusted | Net Earnings, adjusted | $ | 99.3 | $ | 101.6 | Net Earnings, adjusted | $ | 117.0 | $ | 108.0 | $ | 216.3 | $ | 209.6 | ||||||||||||||||||||||||||||||||
Weighted Average Diluted Shares | Weighted Average Diluted Shares | 174.7 | 173.8 | Weighted Average Diluted Shares | 172.7 | 174.6 | 173.7 | 174.2 | ||||||||||||||||||||||||||||||||||||||
Diluted Earnings per Share | Diluted Earnings per Share | Diluted Earnings per Share | ||||||||||||||||||||||||||||||||||||||||||||
As reported | As reported | $ | 0.58 | $ | 0.61 | As reported | $ | 0.68 | $ | 0.63 | $ | 1.26 | $ | 1.24 | ||||||||||||||||||||||||||||||||
Adjusted | Adjusted | $ | 0.57 | $ | 0.58 | Adjusted | $ | 0.68 | $ | 0.62 | $ | 1.25 | $ | 1.20 |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales | 100.0 | % | 100.0 | % | Net Sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||
Cost of products sold | Cost of products sold | 48.5 | 45.5 | Cost of products sold | 51.0 | 48.0 | 49.8 | 46.8 | ||||||||||||||||||||||||||||||||||||||
Gross Profit | Gross Profit | 51.5 | 54.5 | Gross Profit | 49.0 | 52.0 | 50.2 | 53.2 | ||||||||||||||||||||||||||||||||||||||
Product development | Product development | 3.9 | 4.3 | Product development | 3.6 | 4.2 | 3.7 | 4.3 | ||||||||||||||||||||||||||||||||||||||
Selling, marketing and distribution | Selling, marketing and distribution | 12.7 | 13.7 | Selling, marketing and distribution | 11.3 | 13.6 | 12.0 | 13.7 | ||||||||||||||||||||||||||||||||||||||
General and administrative | General and administrative | 8.9 | 8.2 | General and administrative | 7.0 | 7.8 | 7.9 | 8.0 | ||||||||||||||||||||||||||||||||||||||
Operating Earnings | Operating Earnings | 26.0 | 28.2 | Operating Earnings | 27.1 | 26.4 | 26.6 | 27.2 | ||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 1.1 | 0.5 | Interest expense | 0.3 | 0.5 | 0.7 | 0.5 | ||||||||||||||||||||||||||||||||||||||
Other expense, net | Other expense, net | — | — | Other expense, net | 0.1 | (0.1) | 0.1 | — | ||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | Earnings Before Income Taxes | 24.9 | 27.7 | Earnings Before Income Taxes | 26.7 | 26.0 | 25.8 | 26.8 | ||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes | 4.5 | 4.4 | Income taxes | 5.3 | 4.3 | 4.9 | 4.3 | ||||||||||||||||||||||||||||||||||||||
Net Earnings | Net Earnings | 20.4 | % | 23.3 | % | Net Earnings | 21.4 | % | 21.7 | % | 20.9 | % | 22.4 | % |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Americas(1) | Americas(1) | $ | 293.2 | $ | 264.9 | Americas(1) | $ | 338.1 | $ | 302.0 | $ | 631.3 | $ | 566.9 | ||||||||||||||||||||||||||||||||
EMEA(2) | EMEA(2) | 106.2 | 110.2 | EMEA(2) | 108.3 | 113.8 | 214.5 | 224.0 | ||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 94.9 | 79.0 | Asia Pacific | 102.1 | 91.4 | 197.0 | 170.4 | ||||||||||||||||||||||||||||||||||||||
Consolidated | Consolidated | $ | 494.3 | $ | 454.1 | Consolidated | $ | 548.5 | $ | 507.2 | $ | 1,042.8 | $ | 961.3 |
Three Months | Three Months | Six Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume and Price | Acquisitions | Currency | Total | Volume and Price | Acquisitions | Currency | Total | Volume and Price | Acquisitions | Currency | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Americas | Americas | 11% | 0% | 0% | 11% | Americas | 11% | 1% | 0% | 12% | 11% | 1% | (1)% | 11% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMEA | EMEA | 0% | 2% | (6)% | (4)% | EMEA | 5% | 0% | (10)% | (5)% | 3% | 1% | (8)% | (4)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 22% | 0% | (2)% | 20% | Asia Pacific | 16% | 0% | (4)% | 12% | 19% | 0% | (3)% | 16% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | Consolidated | 10% | 1% | (2)% | 9% | Consolidated | 11% | 1% | (4)% | 8% | 11% | 0% | (3)% | 8% |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales | Net Sales | ||||||||||||||||||||||||||||||||||||||||||||
Americas | Americas | $ | 54.3 | $ | 46.3 | Americas | $ | 61.5 | $ | 51.9 | $ | 115.8 | $ | 98.2 | ||||||||||||||||||||||||||||||||
EMEA | EMEA | 47.9 | 45.1 | EMEA | 45.6 | 45.5 | 93.5 | 90.6 | ||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 42.5 | 38.5 | Asia Pacific | 51.2 | 47.1 | 93.7 | 85.6 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 144.7 | $ | 129.9 | Total | $ | 158.3 | $ | 144.5 | $ | 303.0 | $ | 274.4 | ||||||||||||||||||||||||||||||||
Operating earnings as a percentage of net sales | Operating earnings as a percentage of net sales | 36 | % | 33 | % | Operating earnings as a percentage of net sales | 35 | % | 32 | % | 36 | % | 32 | % |
Three Months | Three Months | Six Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume and Price | Acquisitions | Currency | Total | Volume and Price | Acquisitions | Currency | Total | Volume and Price | Acquisitions | Currency | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Americas | Americas | 17% | 0% | 0% | 17% | Americas | 19% | 0% | 0% | 19% | 18% | 0% | 0% | 18% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMEA | EMEA | 13% | 0% | (7)% | 6% | EMEA | 12% | 0% | (12)% | 0% | 13% | 0% | (10)% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 11% | 0% | 0% | 11% | Asia Pacific | 13% | 0% | (4)% | 9% | 12% | 0% | (3)% | 9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Total | Segment Total | 14% | 0% | (3)% | 11% | Segment Total | 15% | 0% | (5)% | 10% | 15% | 0% | (5)% | 10% |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales | Net Sales | ||||||||||||||||||||||||||||||||||||||||||||
Americas | Americas | $ | 68.4 | $ | 56.8 | Americas | $ | 77.0 | $ | 59.7 | $ | 145.4 | $ | 116.5 | ||||||||||||||||||||||||||||||||
EMEA | EMEA | 17.1 | 14.8 | EMEA | 17.6 | 15.8 | 34.7 | 30.6 | ||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 29.5 | 19.8 | Asia Pacific | 29.9 | 21.7 | 59.4 | 41.5 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 115.0 | $ | 91.4 | Total | $ | 124.5 | $ | 97.2 | $ | 239.5 | $ | 188.6 | ||||||||||||||||||||||||||||||||
Operating earnings as a percentage of net sales | Operating earnings as a percentage of net sales | 24 | % | 24 | % | Operating earnings as a percentage of net sales | 25 | % | 22 | % | 24 | % | 23 | % |
Three Months | Three Months | Six Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume and Price | Acquisitions | Currency | Total | Volume and Price | Acquisitions | Currency | Total | Volume and Price | Acquisitions | Currency | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Americas | Americas | 20% | 0% | 0% | 20% | Americas | 25% | 4% | 0% | 29% | 22% | 3% | 0% | 25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMEA | EMEA | 19% | 0% | (3)% | 16% | EMEA | 18% | 1% | (7)% | 12% | 18% | 0% | (4)% | 14% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 51% | 0% | (2)% | 49% | Asia Pacific | 42% | 1% | (5)% | 38% | 46% | 0% | (3)% | 43% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Total | Segment Total | 26% | 0% | 0% | 26% | Segment Total | 27% | 3% | (2)% | 28% | 27% | 2% | (2)% | 27% |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | March 26, 2021 | July 1, 2022 | June 25, 2021 | July 1, 2022 | June 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Net Sales | Net Sales | Net Sales | ||||||||||||||||||||||||||||||||||||||||||||
Americas | Americas | $ | 170.5 | $ | 161.9 | Americas | $ | 199.7 | $ | 190.4 | $ | 370.2 | $ | 352.3 | ||||||||||||||||||||||||||||||||
EMEA | EMEA | 41.2 | 50.2 | EMEA | 45.0 | 52.6 | 86.2 | 102.8 | ||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 22.9 | 20.7 | Asia Pacific | 21.0 | 22.5 | 43.9 | 43.2 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 234.6 | $ | 232.8 | Total | $ | 265.7 | $ | 265.5 | $ | 500.3 | $ | 498.3 | ||||||||||||||||||||||||||||||||
Operating earnings as a percentage of net sales | Operating earnings as a percentage of net sales | 25 | % | 31 | % | Operating earnings as a percentage of net sales | 26 | % | 28 | % | 25 | % | 29 | % |
Three Months | Three Months | Six Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume and Price | Acquisitions | Currency | Total | Volume and Price | Acquisitions | Currency | Total | Volume and Price | Acquisitions | Currency | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Americas | Americas | 5% | 0% | 0% | 5% | Americas | 5% | 0% | 0% | 5% | 5% | 0% | 0% | 5% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMEA | EMEA | (17)% | 4% | (5)% | (18)% | EMEA | (5)% | 0% | (9)% | (14)% | (11)% | 2% | (7)% | (16)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 14% | 0% | (3)% | 11% | Asia Pacific | (2)% | 0% | (5)% | (7)% | 6% | 0% | (5)% | 1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Total | Segment Total | 1% | 1% | (1)% | 1% | Segment Total | 3% | 0% | (3)% | 0% | 2% | 0% | (2)% | 0% |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (at end of period) | ||||||||||||||||||||||
January 1, 2022 - January 28, 2022 | 17,200 | $ | 69.69 | — | 18,500,634 | |||||||||||||||||||||
January 29, 2022 - February 25, 2022 | 1,117,639 | $ | 71.44 | — | 17,382,995 | |||||||||||||||||||||
February 26, 2022 - April 1, 2022 | 382,361 | $ | 71.37 | — | 17,000,634 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (at end of period) | ||||||||||||||||||||||
April 2, 2022 - April 29, 2022 | 121,461 | $ | 63.90 | — | 16,879,173 | |||||||||||||||||||||
April 30, 2022 - May 27, 2022 | 56,881 | $ | 62.50 | — | 16,822,292 | |||||||||||||||||||||
May 28, 2022 - July 1, 2022 | — | $ | — | — | 16,822,292 |
3.1 | Restated Articles of Incorporation as amended December 8, 2017. (Incorporated by reference to Exhibit 3.1 to the Company's Report on Form 8-K filed December 8, 2017.) | |||||||
3.2 | Restated Bylaws as amended February 14, 2014. (Incorporated by reference to Exhibit 3.2 to the Company’s 2013 Annual Report on Form 10-K.) | |||||||
Certification of President and Chief Executive Officer pursuant to Rule 13a-14(a). | ||||||||
Certification of Chief Financial Officer and Treasurer pursuant to Rule 13a-14(a). | ||||||||
Certification of President and Chief Executive Officer and Chief Financial Officer and Treasurer pursuant to Section 1350 of Title 18, U.S.C. | ||||||||
Press Release Reporting | ||||||||
101 | Interactive data files pursuant to Rule 405 of Regulation S-T formatted in iXBRL (Inline eXtensible Business Reporting Language). | |||||||
104 | Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101). | |||||||
Date: | By: | /s/ Mark W. Sheahan | ||||||||||||||||||
Mark W. Sheahan | ||||||||||||||||||||
President and Chief Executive Officer | ||||||||||||||||||||
(Principal Executive Officer) | ||||||||||||||||||||
Date: | By: | /s/ David M. Lowe | ||||||||||||||||||
David M. Lowe | ||||||||||||||||||||
Chief Financial Officer and Treasurer | ||||||||||||||||||||
(Principal Financial Officer) | ||||||||||||||||||||
Date: | By: | /s/ Kathryn L. Schoenrock | ||||||||||||||||||
Kathryn L. Schoenrock | ||||||||||||||||||||
Executive Vice President, Corporate Controller and Information Systems | ||||||||||||||||||||
(Principal Accounting Officer) |