Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2023 | Jul. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 01, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Fortune Brands Innovations, Inc. | |
Entity Central Index Key | 0001519751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | FBIN | |
Entity Common Stock, Shares Outstanding | 126,890,520 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-35166 | |
Entity Tax Identification Number | 62-1411546 | |
Entity Address, Address Line One | 520 Lake Cook Road | |
Entity Address, City or Town | Deerfield | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60015-5611 | |
City Area Code | 847 | |
Local Phone Number | 484-4400 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 1,163.7 | $ 1,255.4 | $ 2,203.7 | $ 2,395.6 |
Cost of products sold | 695.6 | 742 | 1,327.2 | 1,413.8 |
Selling, general and administrative expenses | 280.7 | 281.3 | 541.7 | 557.7 |
Amortization of intangible assets | 12.6 | 11.6 | 25.2 | 23.2 |
Restructuring charges | 22.2 | 1 | 25.2 | 1.6 |
Operating income | 152.6 | 219.5 | 284.4 | 399.3 |
Interest expense | 27.7 | 30.5 | 54.6 | 52.3 |
Other income, net | (5.2) | (0.2) | (11.6) | (2.4) |
Income from continuing operations before income taxes | 130.1 | 189.2 | 241.4 | 349.4 |
Income tax | 28 | 44.9 | 53.7 | 78.9 |
Income from continuing operations, net of tax | 102.1 | 144.3 | 187.7 | 270.5 |
(Loss) income from discontinued operations, net of tax | 0 | 47.7 | (1) | 102.4 |
Net income | $ 102.1 | $ 192 | $ 186.7 | $ 372.9 |
Basic earnings per common share | ||||
Continuing operations | $ 0.81 | $ 1.11 | $ 1.47 | $ 2.05 |
Discontinued operations | 0 | 0.36 | 0 | 0.78 |
Basic earnings per share | 0.81 | 1.47 | 1.47 | 2.83 |
Diluted earnings per common share | ||||
Continuing operations | 0.80 | 1.10 | 1.47 | 2.03 |
Discontinued operations | 0 | 0.36 | (0.01) | 0.77 |
Diluted earnings per share | $ 0.80 | $ 1.46 | $ 1.46 | $ 2.80 |
Comprehensive income | $ 114.5 | $ 184.5 | $ 198.4 | $ 425.3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 681.7 | $ 642.5 | |
Accounts receivable less allowances for discounts and credit losses | 621.2 | 521.8 | |
Inventories | 954.5 | 1,021.3 | |
Other current assets | 186.2 | 274.8 | |
Total current assets | 2,443.6 | 2,460.4 | |
Property, plant and equipment, net of accumulated depreciation | 866.6 | 783.7 | |
Operating lease assets | 114.1 | 118.9 | |
Goodwill | [1] | 1,910.7 | 1,640.7 |
Other intangible assets, net of accumulated amortization | 1,421.5 | 1,000.8 | |
Other assets | 116.7 | 116.4 | |
Total assets | 6,873.2 | 6,120.9 | |
Current liabilities | |||
Short-term debt | 599.8 | 599.2 | |
Accounts payable | 489.5 | 421.6 | |
Other current liabilities | 551.4 | 523.9 | |
Total current liabilities | 1,640.7 | 1,544.7 | |
Long-term debt | 2,668.5 | 2,074.3 | |
Deferred income taxes | 138.2 | 136.9 | |
Accrued defined benefit plans | 66.1 | 79.9 | |
Operating lease liabilities | 89 | 95.4 | |
Other non-current liabilities | 93.6 | 102.8 | |
Total liabilities | 4,696.1 | 4,034 | |
Commitments and contingencies (see Note 17) | |||
Stockholders' equity | |||
Common stock | [2] | 1.9 | 1.9 |
Paid-in capital | 3,103.5 | 3,069.6 | |
Accumulated other comprehensive loss | 55.3 | 37.4 | |
Retained earnings | 2,475.4 | 2,323.8 | |
Treasury stock | (3,459) | (3,345.8) | |
Total stockholders' equity | 2,177.1 | 2,086.9 | |
Total liabilities and equity | $ 6,873.2 | $ 6,120.9 | |
[1] Net of accumulated impairment losses of $ 399.5 million in the Outdoors segment. Common stock, par value $ 0.01 per share; 186.8 mi llion shares and 186.2 million shares issued at July 1, 2023 and December 31, 2022 , respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Jul. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 186,800,000 | 186,200,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | ||
Operating activities | |||
Net income | $ 186.7 | $ 372.9 | |
Non-cash adjustments: | |||
Depreciation | 40.9 | 61.7 | |
Amortization of intangibles | 25.2 | 32.1 | |
Non-cash lease expense | 15.8 | 22.2 | |
Stock-based compensation | 16.2 | 27.5 | |
Deferred taxes | (1) | (0.5) | |
Asset impairment charges | 0 | 26 | |
Amortization of deferred financing fees | 2.1 | 1.8 | |
(Gain) on sale of property, plant and equipment | (1.6) | (5.9) | |
Changes in assets and liabilities: | |||
Increase in accounts receivable | (65.4) | (110.8) | |
Decrease (increase) in inventories | 177.3 | (247.4) | |
Increase (decrease) in accounts payable | 49.6 | (1) | |
Decrease (increase) in other assets | 130.3 | (17.1) | |
Decrease in accrued expenses and other liabilities | (46.5) | (110.2) | |
Decrease in accrued taxes | (26) | (9.4) | |
Net cash provided by operating activities | 503.6 | 41.9 | |
Investing activities | |||
Capital expenditures | [1] | (112.2) | (115.6) |
Proceeds from the disposition of assets | 2.7 | 8 | |
Cost of acquisitions, net of cash acquired | (781.8) | (61.6) | |
Net cash used in investing activities | (891.3) | (169.2) | |
Financing activities | |||
Issuance of short-term debt | 0 | 700 | |
Repayment of short-term debt | 0 | (1,100) | |
Issuance of long-term debt | 595.1 | 4,123.7 | |
Repayment of long-term debt | 0 | (3,073.3) | |
Proceeds from the exercise of stock options | 5 | 0.4 | |
Treasury stock purchases | (100) | (505) | |
Employee withholding taxes related to stock-based compensation | (12.4) | (24.8) | |
Dividends to stockholders | (58.6) | (73.6) | |
Other financing, net | (1.3) | (20.3) | |
Net cash provided by financing activities | 427.8 | 27.1 | |
Effect of foreign exchange rate changes on cash | (2.1) | (11.3) | |
Net (decrease) increase in cash and cash equivalents | 38 | (111.5) | |
Cash, cash equivalents and restricted cash at beginning of period | [2] | 648.3 | 476.1 |
Cash, cash equivalents and restricted cash at end of period | [2] | $ 686.3 | $ 364.6 |
[1] Capital expenditures of $ 5.3 million as of July 1, 2023 and $ 12.1 million as of June 30, 2022 that had not been paid, were excluded from the Statement of Cash Flows. Restricted cash of $ 2.3 million and $ 2.3 million is included in Other current assets and Other assets, respectively, as of July 1, 2023 and restricted cash of $ 1.2 million and $ 2.8 million is included in Other current assets and Other assets, respectively, as of June 30, 2022 . Restricted cash of $ 2.1 million and $ 3.7 million is included in Other current assets and Other assets, respectively, as of December 31, 2022 . |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Capital expenditures incurred but not yet paid | $ 5.3 | $ 12.1 | |
Other Current Assets [Member] | |||
Restricted Cash | 2.3 | 1.2 | $ 2.1 |
Other Noncurrent Assets [Member] | |||
Restricted Cash | $ 2.3 | $ 2.8 | $ 3.7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock |
Beginning Balance at Dec. 31, 2021 | $ 3,064.8 | $ 1.9 | $ 3,018.3 | $ (24.6) | $ 2,807.9 | $ (2,738.7) |
Comprehensive income: | ||||||
Net income | 372.9 | 372.9 | ||||
Other comprehensive income (loss) | 52.4 | 52.4 | ||||
Stock options exercised | 0.4 | 0.4 | ||||
Stock-based compensation | 2.7 | 27.5 | (24.8) | |||
Treasury stock purchases | (505) | (505) | ||||
Dividends | 35.8 | 35.8 | ||||
Ending Balance at Jun. 30, 2022 | 2,952.4 | 1.9 | 3,046.2 | 27.8 | 3,145 | (3,268.5) |
Beginning Balance at Mar. 31, 2022 | 2,914.8 | 1.9 | 3,030.8 | 35.3 | 2,989.4 | (3,142.6) |
Comprehensive income: | ||||||
Net income | 192 | 192 | ||||
Other comprehensive income (loss) | (7.5) | (7.5) | ||||
Stock options exercised | 0.2 | 0.2 | ||||
Stock-based compensation | 14.7 | 15.2 | (0.5) | |||
Treasury stock purchases | (125.4) | (125.4) | ||||
Dividends | (36.4) | (36.4) | ||||
Ending Balance at Jun. 30, 2022 | 2,952.4 | 1.9 | 3,046.2 | 27.8 | 3,145 | (3,268.5) |
Beginning Balance at Dec. 31, 2022 | 2,086.9 | 1.9 | 3,069.6 | 37.4 | 2,323.8 | (3,345.8) |
Comprehensive income: | ||||||
Net income | 186.7 | 186.7 | ||||
Other comprehensive income (loss) | 11.7 | 11.7 | ||||
Other | 12.9 | 12.7 | 6.2 | (6) | ||
Stock options exercised | 5 | 5 | ||||
Stock-based compensation | 3.8 | 16.2 | (12.4) | |||
Treasury stock purchases | (100.8) | (100.8) | ||||
Dividends | (29.1) | (29.1) | ||||
Ending Balance at Jul. 01, 2023 | 2,177.1 | 1.9 | 3,103.5 | 55.3 | 2,475.4 | (3,459) |
Beginning Balance at Apr. 01, 2023 | 2,082.5 | 1.9 | 3,094.1 | 42.9 | 2,402.4 | (3,458.8) |
Comprehensive income: | ||||||
Net income | 102.1 | 102.1 | ||||
Other comprehensive income (loss) | 12.4 | 12.4 | ||||
Other | 0 | |||||
Stock options exercised | 2.7 | 2.7 | ||||
Stock-based compensation | 6.5 | 6.7 | (0.2) | |||
Dividends | (29.1) | (29.1) | ||||
Ending Balance at Jul. 01, 2023 | $ 2,177.1 | $ 1.9 | $ 3,103.5 | $ 55.3 | $ 2,475.4 | $ (3,459) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per Common share | $ 0.23 | $ 0.28 | $ 0.23 | $ 0.28 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jul. 01, 2023 | |
Insider Trading Arr [Line Items] | |
Rule 10b 51 Arr Adopted Flag | false |
Non Rule 10b 51 Arr Adopted Flag | false |
Rule 10b 51 Arr Trmntd Flag | false |
Non Rule 10b 51 Arr Trmntd Flag | false |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 6 Months Ended |
Jul. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | 1. Basis of Presentation and Principles of Consolidation The Company is a leading home and security products company with a portfolio of leading branded products used for residential home repair, remodeling, new construction and security applications. References to “Fortune Brands,” “the Company,” “we,” “our” and “us” refer to Fortune Brands Innovations, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. On December 14, 2022, the Company completed the separation of its Cabinets business, MasterBrand, Inc. (“MasterBrand”), via a tax-free spin-off transaction (the “Separation”) to create an independent, publicly-traded company. Immediately following completion of the Separation, the Company changed its name from “Fortune Brands Home & Security, Inc.” to “Fortune Brands Innovations, Inc.” and its stock ticker changed from “FBHS” to “FBIN” to better reflect its focus on activities related to core brands and innovation. As a result of the Separation, our former Cabinets segment was disposed of and the operating results of the Cabinets business are reported as discontinued operations for all periods presented within this Quarterly Report on Form 10-Q. All amounts, percentages and disclosures for all periods presented reflect only the continuing operations of the Company unless otherwise noted. See Note 4, Acquisitions and Dispositions, in the condensed consolidated financial statements, and Note 5, Discontinued Operations, in the consolidated financial statements in Item 8 of our 2022 Annual Report on Form 10-K for additional information. The condensed consolidated financial statements and notes are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and do not contain certain information included in our annual audited consolidated financial statements and notes. The December 31, 2022 condensed consolidated balance sheet was derived from our audited consolidated financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”). This Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. On June 20, 2023, we acquired the Emtek and Schaub premium and luxury door and cabinet hardware business, and the U.S. and Canadian Yale and August residential smart home locks business (collectively the "ASSA Businesses") from ASSA ABLOY, Inc. ("ASSA"). The Company completed the acquisition for a total purchase price of approximately $ 800 million, subject to post-closing adjustments. We financed the transaction with cash on hand. As of the date of this filing, legal title to international operations in Vietnam has not yet transferred, but we expect a deferred closing, which will include a payment of approximately $ 24 million (which amount is already included in the overall purchase price but for which the cash payment has not yet been made), shortly following receipt of local regulatory approval, which is expected to occur later in 2023. The results of Emtek and Schaub premium and luxury door and cabinet hardware business are reported as part of the Water segment and the results of the U.S. and Canadian Yale and August residential smart lock business are reported as part of the Security segment. The financial results of the ASSA Businesses were included in the Company’s consolidated balance sheet as of July 1, 2023. The results of operations and cash flows of the ASSA Businesses from the date of acquisition to July 1, 2023 were not material to the Company. In January 2023, the Board of Directors of the Company approved a change to the Company’s fiscal year end from December 31 to a 52- or 53-week fiscal year ending on the Saturday closest but not subsequent to December 31, effective as of the commencement of the Company’s fiscal year on January 1, 2023. This change was made in order to align the Company’s fiscal year with that of its operating businesses and to align the Company’s reporting calendar with how the Company evaluates its businesses. As a result, the Company’s fiscal quarters for the 2023 fiscal year end on April 1, 2023, July 1, 2023, September 30, 2023, and December 30, 2023. The condensed consolidated balance sheet as of July 1, 2023, the related condensed consolidated statements of comprehensive income and equity for the 26 weeks and 13 weeks ended July 1, 2023, the related condensed consolidated statements of comprehensive income and equity for the six and three months ended June 30, 2022, the related condensed consolidated statements of cash flows for the 26 weeks ended July 1, 2023, and the related condensed consolidated statements of cash flows for the six months ended June 30, 2022 are unaudited. The presentation of these financial statements requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. In the opinion of management, all adjustments necessary for a fair statement of the financial statements have been included. Interim results may not be indicative of results for a full year. Effective in the first quarter of 2023, the Company revised its segment reporting from two reportable segments, Water Innovations and Outdoors & Security, to three reportable segments, Water, Outdoors and Security. The change in segment reporting was made to align with changes made in the manner our chief operating decision maker reviews the Company’s operating results in assessing performance and allocating resources. Comparative prior periods amounts have been recast to conform to the new segment presentation. On July 29, 2022, we acquired 100 % of the outstanding equity of Aqualisa Holdings (International) Ltd. (“Aqualisa”), a leading U.K. manufacturer of shower products known for premium, innovative and smart digital shower systems, for a purchase price of $ 156.0 million, net of cash acquired of $ 4.8 million. We financed the transaction using cash on hand and borrowings under our revolving credit facility. The results of Aqualisa are reported as part of the Water segment. We have not included pro forma financial information as it is immaterial to our condensed consolidated statements of comprehensive income. The fair value allocated to assets acquired and liabilities assumed as of July 29, 2022 was $ 156.0 million. In January 2022, we acquired 100 % of the outstanding equity of Solar Innovations LLC and an affiliated entity (together, “Solar”), a leading producer of wide-opening exterior door systems and outdoor enclosures, for a purchase price of $ 61.6 million, net of cash acquired of $ 4.8 million. We financed the transaction using cash on hand and borrowings under our revolving credit facility. The results of Solar are reported as part of the Outdoors segment. We have not included pro forma financial information as it is immaterial to our condensed consolidated statements of comprehensive income. The fair value allocated to assets acquired and liabilities assumed as of January 31, 2022 was $ 61.6 million. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jul. 01, 2023 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards No material impacts noted from recently issued accounting standards. |
Balance Sheet Information
Balance Sheet Information | 6 Months Ended |
Jul. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | 3. Balance Sheet Information Supplemental information on our balance sheets is as follows: (In millions) July 1, December 31, Inventories: Raw materials and supplies $ 338.7 $ 309.4 Work in process 76.8 83.5 Finished products 539.0 628.4 Total inventories $ 954.5 $ 1,021.3 Property, plant and equipment, gross $ 1,734.8 $ 1,614.3 Less: accumulated depreciation 868.2 830.6 Property, plant and equipment, net $ 866.6 $ 783.7 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jul. 01, 2023 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions ASSA Businesses On June 20, 2023, we acquired the Emtek and Schaub premium and luxury door and cabinet hardware business, and the U.S. and Canadian Yale and August residential smart home locks business (collectively the "ASSA Businesses") from ASSA ABLOY, Inc. ("ASSA"). The Company completed the acquisition for a total purchase price of approximately $ 800 million, subject to post-closing adjustments. We financed the transaction with cash on hand. As of the date of this filing, legal title to international operations in Vietnam has not yet transferred, but we expect a deferred closing, which will include a payment of approximately $ 24 million (which amount is already included in the overall purchase price but for which the cash payment has not yet been made), shortly following receipt of local regulatory approval, which is expected to occur later in 2023. The results of Emtek and Schaub premium and luxury door and cabinet hardware business are reported as part of the Water segment and the results of the U.S. and Canadian Yale and August residential smart lock business are reported as part of the Security segment. The financial results of the ASSA Businesses were included in the Company’s consolidated balance sheet as of July 1, 2023. The results of operations and cash flows of the ASSA Businesses from the date of acquisition to July 1, 2023 were not material to the Company. The following table summarizes the preliminary allocation of the ASSA Businesses purchase price to the fair value of assets acquired and liabilities assumed as of the date of the acquisition. (In millions) Accounts receivable $ 32.3 Inventories 109.7 Property, plant and equipment 18.6 Goodwill 261.8 Identifiable intangible assets 439.4 Operating lease assets 6.8 Other assets 2.4 Total assets 871.0 Accounts payable 28.7 Other current liabilities and accruals 33.4 Other non-current liabilities 3.7 Net assets acquired (a) $ 805.2 (a) Net assets exclu de $ 16.0 mill ion of cash transferred to the Company as the result of the acquisition. The purchase price allocation is expected to change after asset and liability valuations are finalized. We apply significant judgment in determining the estimates and assumptions used to determine the fair value of the identifiable intangible assets, including forecasted revenue growth rates, EBITDA margins, percentage of revenue attributable to the tradename, contributory asset charges, customer attrition rate, market-participant discount rates and the assumed royalty rates. The Company is in the process of finalizing valuations of certain tangible and intangible assets, including property, plant and equipment. The provisional measurement of property, plant and equipment and goodwill is subject to change. Any change in the acquisition date fair value of the acquired assets and liabilities will change the amount of the purchase price allocable to goodwill. Goodwill includes expected sales and cost synergies. The goodwill is included in our Security and Water segments. Substantially all of the goodwill is expected to be deductible for income tax purposes, subject to the finalization of the purchase price allocation. ASSA Businesses identifiable intangible assets consist of finite-lived customer relationship assets of $ 336.6 million, indefinite-lived tradenames of $ 74.9 million, definite-lived tradenames of $ 16.8 million and finite-lived proprietary technology assets of $ 11.1 million. We will finalize our determination of useful lives and amortization methodology when the asset valuations are completed . The following unaudited pro forma summary presents consolidated financial information as if the ASSA Businesses had been acquired on January 1, 2022. The unaudited pro forma financial information is based on historical results of operations and financial position of the Company and the ASSA Businesses. The pro forma results include: • estimated amortization of finite-lived intangible assets, including customer relationships and proprietary technology, • the estimated cost of the inventory adjustment to fair value, • the reclassification of ASSA Businesses transaction costs from 2023 to the first quarter of 2022, • the removal of certain transactions recorded in the historical financial statements of the ASSA Businesses related to assets and activities which were retained by the seller, and • adjustments to conform accounting policies. The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2022. In addition, the unaudited pro forma information should not be deemed to be indicative of future results. (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Net sales $ 2,403.7 $ 2,599.1 $ 1,259.6 $ 1,356.4 Income from continuing operations, net of tax $ 218.1 $ 275.6 $ 120.7 $ 154.1 Cabinets On December 14, 2022, the Company completed the separation of its Cabinets business, MasterBrand, Inc. (“MasterBrand”), via a tax-free spin-off transaction (the “Separation”) to create an independent, publicly-traded company. Immediately following completion of the Separation, the Company changed its name from “Fortune Brands Home & Security, Inc.” to “Fortune Brands Innovations, Inc.” and its stock ticker changed from “FBHS” to “FBIN” to better reflect its focus on activities related to core brands and innovation. The condensed consolidated statements of income and consolidated balance sheets for all prior periods have been adjusted to reflect the presentation of MasterBrand as discontinued operations. For the six months ended June 30, 2022, the condensed consolidated statement of cash flows includes net cash provided from operations related to discontinued operations of $ 128.3 million and net cash in investing activities of $ 22.0 million. Depreciation, amortization and capital expenditures attributable to discontinued operations for the six months ended June 30, 2022, were $ 21.5 million, $ 8.9 million and $ 22.0 million, respectively. Aqualisa In July 2022, we acquired 100 % of the outstanding equity of Aqualisa Holdings (International) Ltd. (“Aqualisa”), a leading U.K. manufacturer of shower products known for premium, innovative and smart digital shower systems, for a purchase price of $ 156.0 million, net of cash acquired of $ 4.8 million. We financed the transaction using cash on hand and borrowings under our revolving credit facility. The results of Aqualisa are reported as part of the Water segment. We have not included pro forma financial information as the transaction is immaterial to our condensed consolidated statements of comprehensive income. The fair value allocated to assets acquired and liabilities assumed as of July 29, 2022, was $ 156.0 million, which include s $ 88.7 mi llion of goodwill. Goodwill includes expected sales and cost synergies and is not expected to be deductible for income tax purposes. Solar In January 2022, we acquired 100 % of the outstanding equity of Solar for a purchase price of $ 61.6 million, net of cash acquired of $ 4.8 million. We financed the transaction using cash on hand and borrowings under our revolving credit facility. The results of Solar are reported as part of the Outdoors segment. We have not included pro forma financial information as the transaction is immaterial to our condensed consolidated statements of comprehensive income. The fair value allocated to assets acquired and liabilities assumed as of January 31, 2022, was $ 61.6 million, which includes $ 23.3 million of goodwill. Goodwill includes expected sales and cost synergies and is expected to be deductible for income tax purposes. Flo Technologies In 2018, our Water segment entered into a strategic partnership with, and acquired non-controlling equity interests in, Flo Technologies, Inc. (“Flo”), a U.S. manufacturer of comprehensive water monitoring and shut-off systems with leak detection technologies. In January 2020, we entered into an agreement to acquire the remaining outstanding shares of Flo in a multi-phase transaction. As part of this agreement, we acquired a majority of Flo’s outstanding shares during 2020 and entered into a forward contract to purchase all remaining shares of Flo during the first quarter of 2022. On January 30, 2022, we made a final cash payment of $ 16.7 million to the legacy minority shareholders to acquire such shares which is reflected within Other financing, net in our consolidated statements of cash flows. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 6 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | 5. Goodwill and Identifiable Intangible Assets We had goodwill of $ 1,910.7 million and $ 1,640.7 million as of July 1, 2023 and December 31, 2022 , respectively. The change in the net carrying amount of goodwill by segment was as follows: (In millions) Water Outdoors Security Total Goodwill at December 31, 2022 (a) $ 893.4 $ 651.0 $ 96.3 $ 1,640.7 Year-to-date translation adjustments 7.7 - 0.4 8.1 Acquisition-related adjustments 222.4 0.1 39.4 261.9 Goodwill at July 1, 2023 (a) $ 1,123.5 $ 651.1 $ 136.1 $ 1,910.7 (a) Net of accumulated impairment losses of $ 399.5 million in the Outdoors segment. The gross carrying value and accumulated amortization by class of identifiable intangible assets as of July 1, 2023 and December 31, 2022 were as follows: (In millions) As of July 1, 2023 As of December 31, 2022 Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 553.5 $ - $ 553.5 $ 478.1 $ - $ 478.1 Amortizable intangible assets Tradenames 66.1 ( 8.0 ) 58.1 47.5 ( 6.8 ) 40.7 Customer and contractual relationships 1,004.3 ( 259.5 ) 744.8 662.6 ( 239.6 ) 423.0 Patents/proprietary technology 140.1 ( 75.0 ) 65.1 128.5 ( 69.5 ) 59.0 Total 1,210.5 ( 342.5 ) 868.0 838.6 ( 315.9 ) 522.7 Total identifiable intangibles $ 1,764.0 $ ( 342.5 ) $ 1,421.5 $ 1,316.7 $ ( 315.9 ) $ 1,000.8 We had net identifiable intangible assets of $ 1,421.5 million and $ 1,000.8 million as of July 1, 2023 and December 31, 2022, respectively. The $ 447.3 million increase in gross identifiable intangible assets was primarily due to the acquisition of ASSA Businesses and foreign translation adjustments. Amortizable identifiable intangible assets, principally customer relationships, are subject to amortization over their estimated useful life, ranging from 5 to 30 years, based on the assessment of a number of factors that may impact useful life, which includes customer attrition rates and other relevant factors. |
External Debt and Financing Arr
External Debt and Financing Arrangements | 6 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
External Debt and Financing Arrangements | 6. External Debt and Financing Arrangements Senior Notes In June 2023, the Company issued $ 600 million in aggregate principal 5.875 % senior unsecured notes maturing in 2033 in a registered public offering. The Company intends to use the net proceeds from the notes offering to pay off its 2023 4.000 % senior unsecured notes maturing in September 2023 and for general corporate purposes. In March 2022, the Company issued $ 900 million in aggregate principal amount of senior unsecured notes in a registered public offering consisting of $ 450 million of 4.000 % senior unsecured notes maturing in 2032 and $ 450 million of 4.500 % senior unsecured notes maturing in 2052 (together, the “2022 Notes”). The Company used the net proceeds from the 2022 Notes offering to pay down a portion of the outstanding balance on the 2021 Term Loan, as described below. On July 1, 2023 , the Company had aggregate outstanding senior notes in the amount of $ 3.3 billion, with varying maturities (the “Notes”). The Notes are unsecured senior obligations of the Company. The following table provides a summary of the Company’s outstanding Notes, including the net carrying value of the Notes, net of underwriting commissions, price discounts, and debt issuance costs as of July 1, 2023 and December 31, 2022: Net Carrying Value (in millions) Principal Amount Issuance Date Maturity Date July 1, 2023 December 31, 2022 4.000% Senior Notes $ 500.0 June 2015 June 2025 $ 498.5 $ 498.1 4.000% Senior Notes 600.0 September 2018 September 2023 599.8 599.2 3.250% Senior Notes 700.0 September 2019 September 2029 695.3 695.0 4.000% Senior Notes 450.0 March 2022 March 2032 446.0 445.8 4.500% Senior Notes 450.0 March 2022 March 2052 435.6 435.4 5.875% Senior Notes 600.0 June 2023 June 2033 593.1 - Total Senior Notes $ 3,300.0 $ 3,268.3 $ 2,673.5 Credit Facilities In August 2022, the Company entered into a third amended and restated $ 1.25 billion revolving credit facility (the “2022 Revolving Credit Agreement”), and borrowings thereunder will be used for general corporate purposes. The maturity date of the facility is August 2027. Interest rates under the 2022 Revolving Credit Agreement are variable based on the Secured Overnight Financing Rate (“SOFR”) at the time of the borrowing and the Company’s long-term credit rating and can range from SOFR + 1.02 % to SOFR + 1.525 %. Under the 2022 Revolving Credit Agreement, the Company is required to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0. Consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other one-time adjustments. In addition, the Company's ratio of consolidated debt minus certain cash and cash equivalents to consolidated EBITDA generally may not exceed 3.5 to 1.0 . On July 1, 2023 , and December 31, 2022, there were no outstanding borrowings under this facility. As of July 1, 2023, we were in compliance with all covenants under this facility. In November 2021, the Company entered into a 364-day, $ 400 million term loan credit agreement (the “2021 Term Loan”), for general corporate purposes, to mature in November 2022 . On March 1, 2022, the Company entered into a First Amendment and Incremental Agreement to the 2021 Term Loan (the “First Amendment”). The First Amendment provided for an increase in the principal amount from $ 400 million to $ 600 million as well as the transition from LIBOR to SOFR interest rates. As a result, interest rates under the 2021 Term Loan were variable based on SOFR at the time of the borrowing and the Company’s long-term credit rating and could range from SOFR + 0.725 % to SOFR + 1.350 %. On March 18, 2022, the Company entered into a Second Amendment and Incremental Agreement to the 2021 Term Loan (the “Second Amendment”), increasing the principal amount from $ 600 million to $ 1.1 billion. All other terms and conditions remained the same under the First Amendment and Second Amendment. Proceeds from the increased 2021 Term Loan were used to repay outstanding balances under our previous revolving credit facility. The outstanding $ 1.1 billion under the 2021 Term Loan was repaid on March 25, 2022 with proceeds from the senior notes offering in March 2022 (as described above) and other existing sources of liquidity. We currently have uncommitted bank lines of credit in China, which provide for unsecured borrowings for working capital of up to $ 20.5 million in aggregate as of July 1, 2023 and December 31, 2022, respectively. There were no outstanding balances as of July 1, 2023 and December 31, 2022. Commercial Paper The Company operates a commercial paper program (the “Commercial Paper Program” ) pursuant to which the Company may issue unsecured commercial paper notes. The Company’s 2022 Revolving Credit Agreement is the liquidity backstop for the repayment of any notes issued under the Commercial Paper Program, and as such, borrowings under the Commercial Paper Program are included in Long-term debt in the condensed consolidated balance sheets. Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed, with the aggregate principal amount outstanding at any time, including borrowings under the 2022 Revolving Credit Agreement, not to exceed $ 1.25 billion. The Company will use any issuances under the Commercial Paper Program for general corporate purposes. There were no outstanding borrowings under the Commercial Paper Program as of July 1, 2023 and December 31, 2022. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jul. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 7. Financial Instruments We do not enter into financial instruments for trading or speculative purposes. We principally use financial instruments to reduce the impact of changes in foreign currency exchange rates and commodities used as raw materials in our products. The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. Derivative financial instruments are recorded at fair value. The counterparties to derivative contracts are major financial institutions. We are subject to credit risk on these contracts equal to the fair value of these instruments. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company. Raw materials used by the Company are subject to price volatility caused by weather, supply conditions, geopolitical and economic variables, and other unpredictable external factors. As a result, from time to time, we enter into commodity swaps to manage the price risk associated with forecasted purchases of materials used in our operations. We may be exposed to interest rate risk on existing debt or forecasted debt issuance. To mitigate this risk, we may enter into interest rate hedge contracts. The Company entered into a total of $ 600 million of interest rate hedge contracts during the fourth quarter of 2021 and first quarter of 2022. These contracts were terminated during the second quarter of 2023 in parallel with the issuance of $ 600 million of long-term debt. Terminating the contracts resulted in a pre-tax gain of $ 84.2 million which was recorded in accumulated other comprehensive income and will be reclassified to earnings over the 10 -year maturity associated with the new long-term debt. Our primary foreign currency hedge contracts pertain to the British pound, the Canadian dollar, the Mexican peso and the Chinese yuan. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at July 1, 2023 was $ 325.8 million. Based on foreign exchange rates as of July 1, 2023, we estimat e that $ 12.5 million of net derivative gains included in accumulated other comprehensive income as of July 1, 2023 will be reclassified to earnings within the next twelve months. The fair values of derivative instruments on the consolidated balance sheets as of July 1, 2023 and December 31, 2022 were as follows: Fair Value (In millions) Location July 1, December 31, Assets: Foreign exchange contracts Other current assets $ 2.3 $ 5.0 Interest rate contracts Other current assets - 84.6 Total assets $ 2.3 $ 89.6 Liabilities: Foreign exchange contracts Other current liabilities $ 2.7 $ 0.7 Commodity contracts Other current liabilities 0.3 3.6 Total liabilities $ 3.0 $ 4.3 The effects of derivative financial instruments on the statements of comprehensive income for the twenty-six weeks ended July 1, 2023 and six months ended June 30, 2022 were as follows: (In millions) Classification and Amount of Gain (Loss) Twenty-Six Weeks Ended July 1, 2023 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,327.2 $ 54.6 $ 11.6 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - 4.4 Derivative designated as hedging instruments - - ( 2.9 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 4.0 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.1 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 2.6 - (In millions) Classification and Amount of Gain (Loss) Six Months Ended June 30, 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,413.8 $ 52.3 $ 2.4 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 10.4 ) Derivative designated as hedging instruments - - 7.7 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 1.3 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.3 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 1.4 - The effects of derivative financial instruments on the statements of comprehensive income for the thirteen weeks ended July 1, 2023 and three months ended June 30, 2022 were as follows: (In millions) Classification and Amount of Gain (Loss) Thirteen Weeks Ended July 1, 2023 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 695.6 $ 27.7 $ 5.2 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - 3.1 Derivative designated as hedging instruments - - ( 2.1 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 2.0 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.3 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 1.5 - (In millions) Classification and Amount of Gain (Loss) Three Months Ended June 30, 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 742.0 $ 30.5 $ 0.2 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 8.4 ) Derivative designated as hedging instruments - - 7.2 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.9 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.4 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 1.2 - |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements FASB ASC requirements for Fa ir Value Measurements and Disclosures establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect other than quoted prices included in Level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs, due to little or no market activity for the asset or liability, such as internally-developed valuation models. We do not have any assets or liabilities measured at fair value on a recurring basis that are Level 3. The carrying value and fair value of debt as of July 1, 2023 and December 31, 2022 were as follows: (In millions) July 1, 2023 December 31, 2022 Carrying Fair Carrying Fair Notes, net of underwriting commissions, price discounts and debt issuance costs $ 3,268.3 $ 3,038.5 $ 2,673.5 $ 2,412.6 The estimated fair value of our Notes is determined by using quoted market prices of our debt securities, which are Level 1 inputs. The estimated fair value of our 2022 Revolving Credit Facility, borrowings under our Commercial Paper Program and 2021 Term Loan is determined primarily using broker quotes, which are Level 2 inputs. Assets and liabilities measured at fair value on a recurring basis as of July 1, 2023 and December 31, 2022 were as follows: (In millions) Fair Value July 1, December 31, Assets Derivative financial instruments (Level 2) $ 2.3 $ 89.6 Deferred compensation program assets (Level 2) 15.9 14.9 Total assets $ 18.2 $ 104.5 Liabilities Derivative financial instruments (Level 2) $ 3.0 $ 4.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 01, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 9. Accumulated Other Comprehensive Income (Loss) Total accumulated other comprehensive income (loss) consists of net income and other changes in business equity from transactions and other events from sources other than stockholders. It includes currency translation gains and losses, unrealized gains and losses from derivative instruments designated as cash flow hedges, and defined benefit plan adjustments. In order to mitigate interest rate risk associated with forecasted debt issuances, Fortune Brands entered into a total of $ 600 million of interest rate hedges during the fourth quarter of 2021 and first quarter of 2022. These hedges were terminated during the second quarter of 2023 in parallel with the issuance of $ 600 million of long-term debt. Terminating the hedges resulted in a pre-tax gain of $ 84.2 million which was recorded in accumulated other comprehensive income and will be reclassified to earnings over the 10 -year maturity associated with the new long-term debt. The after-tax components of and changes in accumulated other comprehensive (loss) income for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 were as follows: (In millions) Foreign Derivative Defined Accumulated Balance at December 31, 2021 $ 3.3 $ 2.9 $ ( 30.8 ) $ ( 24.6 ) Amounts classified into accumulated other ( 16.1 ) 72.4 ( 0.1 ) 56.2 Amounts reclassified from accumulated other - ( 3.8 ) - ( 3.8 ) Net current-period other comprehensive (loss) income ( 16.1 ) 68.6 ( 0.1 ) 52.4 Balance at June 30, 2022 $ ( 12.8 ) $ 71.5 $ ( 30.9 ) $ 27.8 Balance at December 31, 2022 $ ( 12.1 ) $ 93.5 $ ( 44.0 ) $ 37.4 Amounts classified into accumulated other 13.0 4.4 ( 0.2 ) 17.2 Other - - 6.2 6.2 Amounts reclassified from accumulated other - ( 5.5 ) - ( 5.5 ) Net current-period other comprehensive (loss) income 13.0 ( 1.1 ) 6.0 17.9 Balance at July 1, 2023 $ 0.9 $ 92.4 $ ( 38.0 ) $ 55.3 (In millions) Foreign Derivative Defined Accumulated Balance at March 31, 2022 $ 14.9 $ 51.0 $ ( 30.6 ) $ 35.3 Amounts classified into accumulated other ( 27.7 ) 23.2 ( 0.3 ) ( 4.8 ) Amounts reclassified from accumulated other - ( 2.7 ) - ( 2.7 ) Net current-period other comprehensive (loss) income ( 27.7 ) 20.5 ( 0.3 ) ( 7.5 ) Balance at June 30, 2022 $ ( 12.8 ) $ 71.5 $ ( 30.9 ) $ 27.8 Balance at April 1, 2023 $ ( 4.1 ) $ 85.0 $ ( 38.0 ) $ 42.9 Amounts classified into accumulated other 5.0 10.2 - 15.2 Other - - - - Amounts reclassified from accumulated other - ( 2.8 ) - ( 2.8 ) Net current-period other comprehensive (loss) income 5.0 7.4 - 12.4 Balance at July 1, 2023 $ 0.9 $ 92.4 $ ( 38.0 ) $ 55.3 The reclassifications out of accumulated other comprehensive loss for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 were as follows: (In millions) Details about Accumulated Other Amount Reclassified from Affected Line Item in Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Gains (losses) on cash flow hedges Foreign exchange contracts $ 4.0 $ 1.3 Cost of products sold Commodity contracts ( 0.1 ) ( 0.3 ) Cost of products sold Interest rate contracts 2.6 1.4 Interest expense 6.5 2.4 Total before tax ( 1.0 ) ( 0.3 ) Tax expense Total reclassifications for the period $ 5.5 $ 2.1 Net of tax (In millions) Details about Accumulated Other Amount Reclassified from Affected Line Item in Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Gains (losses) on cash flow hedges Foreign exchange contracts $ 2.0 $ 0.9 Cost of products sold Commodity contracts ( 0.3 ) ( 0.4 ) Cost of products sold Interest rate contracts 1.5 1.2 Interest expense 3.2 1.7 Total before tax ( 0.4 ) ( 0.2 ) Tax expense Total reclassifications for the period $ 2.8 $ 1.5 Net of tax The amounts in the table above reflect continuing operations, and exclude income amounts, net of tax, related to discontinued operatio ns of $ 1.7 million and $ 1.2 mil lion in the six months and three months ended, June 30, 2022, respectively. |
Revenue
Revenue | 6 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 10. Revenue The following table disaggregates our consolidated revenue by major sales distribution channels for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2023: Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Wholesalers (a) $ 966.2 $ 1,053.2 $ 505.7 $ 565.3 Home Center retailers (b) 605.1 666.9 309.7 347.4 Other retailers (c) 191.7 210.3 96.2 117.1 Builder direct 0.5 - - - U.S. net sales 1,763.5 1,930.4 911.6 1,029.8 International (d) 440.2 465.2 252.1 225.6 Net sales $ 2,203.7 $ 2,395.6 $ 1,163.7 $ 1,255.4 (a) Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. (b) Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowe's Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. (c) Represents sales principally to our mass merchant and standalone independent e-commerce customers. (d) Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans
Defined Benefit Plans | 6 Months Ended |
Jul. 01, 2023 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plans | 11. Defined Benefit Plans The components of net periodic benefit income for pension benefits for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 were as follows: Pension Benefits (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Service cost $ 0.1 $ 0.2 $ 0.1 $ 0.1 Interest cost 13.6 10.2 6.7 5.1 Expected return on plan assets ( 14.3 ) ( 14.1 ) ( 7.1 ) ( 7.1 ) Net periodic benefit income $ ( 0.6 ) $ ( 3.7 ) $ ( 0.3 ) $ ( 1.9 ) Service cost relates to benefit accruals in an hourly Union defined benefit plan in our Security segment. All other defined benefit pension plans were frozen as of December 31, 2016. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The effective income tax rates for the twenty-six and thirteen weeks ended July 1, 2023 were 22.2 % and 21.5 % respectively. The effective income tax rates for the six and three months ended June 30, 2022 were 22.6 % and 23.7 %, respectively. The difference between the Company’s effective tax rate for the twenty-six weeks ended July 1, 2023, and the U.S. federal statutory rate of 21 % primarily relates to state income taxes (net of federal income tax benefits), foreign income taxed at higher rates, partially offset by a favorable benefit related to decreases in uncertain tax positions and a valuation allowance release. |
Product Warranties
Product Warranties | 6 Months Ended |
Jul. 01, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranties | 13. Product Warranties We generally record warranty expense related to contractual warranty terms at the time of sale. We may also provide customer concessions for claims made outside of the contractual warranty terms and those expenses are recorded in the period in which the concession is made. We offer our customers various warranty terms based on the type of product that is sold. Warranty expense is determined based on historic claim experience and the nature of the product category. The following table summarizes activity related to our product warranty liability for the twenty-six weeks ended July 1, 2023 and six months ended June 30, 2022, respectively. (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Reserve balance at January 1, $ 20.1 $ 19.5 Provision for warranties issued 4.3 3.9 Settlements made (in cash or in kind) ( 5.1 ) ( 4.2 ) Acquisition - 0.4 Foreign translation adjustments - ( 0.2 ) Reserve balance at end of period $ 19.3 $ 19.4 |
Information on Business Segment
Information on Business Segments | 6 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Information on Business Segments | 14. Information on Business Segments Net sales and operating income for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 by segment were as follows: (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 % Change Net Sales Water $ 1,211.3 $ 1,293.6 ( 6.4 ) % Outdoors 665.5 780.8 ( 14.8 ) Security 326.9 321.2 1.8 Net sales $ 2,203.7 $ 2,395.6 ( 8.0 ) % Operating Income (Loss) Water $ 270.5 $ 310.0 ( 12.7 ) % Outdoors 74.2 107.2 ( 30.8 ) Security 20.8 45.5 ( 54.3 ) Less: Corporate expenses ( 81.1 ) ( 63.4 ) ( 27.9 ) Operating income $ 284.4 $ 399.3 ( 28.8 ) % (In millions) Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 % Change Net Sales Water $ 617.1 $ 650.0 ( 5.1 ) % Outdoors 375.6 437.2 ( 14.1 ) Security 171.0 168.2 1.7 Net sales $ 1,163.7 $ 1,255.4 ( 7.3 ) % Operating Income (Loss) Water $ 142.1 $ 160.7 ( 11.6 ) % Outdoors 61.2 67.4 ( 9.2 ) Security ( 0.4 ) 25.1 ( 101.6 ) Less: Corporate expenses ( 50.3 ) ( 33.7 ) ( 49.3 ) Operating income $ 152.6 $ 219.5 ( 30.5 ) % |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jul. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 15. Restructuring and Other Charges Pre-tax restructuring and other charges for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 are shown below. (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Restructuring Other (a) Total Restructuring Other (a) Total Water $ 1.3 $ 0.2 $ 1.5 $ 0.9 $ 0.8 $ 1.7 Outdoors 3.0 ( 1.7 ) 1.3 0.7 ( 6.3 ) ( 5.6 ) Security 20.2 7.5 27.7 - - - Corporate 0.7 - 0.7 - - - Total $ 25.2 $ 6.0 $ 31.2 $ 1.6 $ ( 5.5 ) $ ( 3.9 ) (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. Restructuring and other charges (gains) in the first twenty-six weeks of 2023 are largely related to costs associated with the planned closure of a manufacturing facility within our Security segment and headcount actions across all segments. Restructuring and other charges (gains) in the first six months of 2022 were largely related to a gain on the sale of a previously closed manufacturing facility within our Outdoors segment, partially offset by severance actions within our Water and Outdoors segments. (In millions) Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Restructuring Other (a) Total Restructuring Other (a) Total Water $ 1.1 $ 0.1 $ 1.2 $ 0.9 $ - $ 0.9 Outdoors 1.5 ( 1.7 ) ( 0.2 ) 0.1 - 0.1 Security 19.6 7.5 27.1 - - - Total $ 22.2 $ 5.9 $ 28.1 $ 1.0 $ - $ 1.0 (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. Restructuring and other charges (gains) in the second quarter of 2023 are largely related to costs associated with the planned closure of a manufacturing facility within our Security segment. Restructuring and other charges in the second quarter of 2022 were largely related to severance costs associated with headcount actions within our Water segment. Reconciliation of Restructuring Liability (In millions) Balance at 2023 Cash (a) Non-Cash Balance at Workforce reduction costs $ 16.2 $ 14.2 $ ( 14.1 ) 0.7 $ 17.0 Other 13.5 11.0 ( 1.1 ) ( 14.3 ) 9.1 Total $ 29.7 $ 25.2 $ ( 15.2 ) $ ( 13.6 ) $ 26.1 (a) Cash expenditures primarily relate to severance charges. (In millions) Balance at 2022 Cash (a) Balance at Workforce reduction costs $ 3.2 $ 1.6 $ ( 3.4 ) $ 1.4 Other 0.8 - - 0.8 Total $ 4.0 $ 1.6 $ ( 3.4 ) $ 2.2 (a) Cash expenditures primarily relate to severance charges. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 16. Earnings Per Share The computations of earnings per common share for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 were as follows: (In millions, except per share data) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Income from continuing operations, net of tax $ 187.7 $ 270.5 $ 102.1 $ 144.3 (Loss) income from discontinued operations, net of tax (1.0 ) 102.4 - 47.7 Net income $ 186.7 $ 372.9 $ 102.1 $ 192.0 Earnings per common share Basic Continuing operations $ 1.47 $ 2.05 $ 0.81 $ 1.11 Discontinued operations - 0.78 - 0.36 Basic earnings per share $ 1.47 $ 2.83 $ 0.81 $ 1.47 Diluted Continuing operations $ 1.47 $ 2.03 $ 0.80 $ 1.10 Discontinued operations ( 0.01 ) 0.77 - 0.36 Diluted earnings per share $ 1.46 $ 2.80 $ 0.80 $ 1.46 Basic average shares outstanding 127.3 131.9 126.8 130.3 Stock-based awards 0.7 1.1 0.7 0.9 Diluted average shares outstanding 128.0 133.0 127.5 131.2 Antidilutive stock-based awards excluded from weighted- 1.0 1.0 1.0 1.6 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Litigation The Company is a defendant in lawsuits that are ordinary, routine litigation matters incidental to its businesses. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon our results of operations, cash flows or financial condition, and where appropriate, these actions are being vigorously contested. Accordingly, the Company believes the likelihood of material loss is remote. Environmental We are involved in remediation activities to clean up hazardous wastes as required by federal and state laws. Liabilities for remediation costs of each site are based on our best estimate of undiscounted future costs, excluding possible insurance recoveries or recoveries from other third parties. Uncertainties about the status of laws, regulations, technology and information related to individual sites make it difficult to develop estimates of environmental remediation exposures. Some of the potential liabilities relate to sites we own, and some relate to sites we no longer own or never owned. Several of our subsidiaries have been designated as potentially responsible parties (“PRP”) under Superfund or similar state laws. In most instances where our subsidiaries are named as a PRP, we enter into cost-sharing arrangements with other PRPs. We give notice to insurance carriers of potential PRP liability, but very rarely, if ever, receive reimbursement from insurance for PRP costs. We believe compliance with current environmental protection laws (before taking into account estimated recoveries from third parties) will not have a material adverse effect upon our results of operations, cash flows or financial condition. |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information on Balance Sheets | Supplemental information on our balance sheets is as follows: (In millions) July 1, December 31, Inventories: Raw materials and supplies $ 338.7 $ 309.4 Work in process 76.8 83.5 Finished products 539.0 628.4 Total inventories $ 954.5 $ 1,021.3 Property, plant and equipment, gross $ 1,734.8 $ 1,614.3 Less: accumulated depreciation 868.2 830.6 Property, plant and equipment, net $ 866.6 $ 783.7 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the ASSA Businesses purchase price to the fair value of assets acquired and liabilities assumed as of the date of the acquisition. (In millions) Accounts receivable $ 32.3 Inventories 109.7 Property, plant and equipment 18.6 Goodwill 261.8 Identifiable intangible assets 439.4 Operating lease assets 6.8 Other assets 2.4 Total assets 871.0 Accounts payable 28.7 Other current liabilities and accruals 33.4 Other non-current liabilities 3.7 Net assets acquired (a) $ 805.2 (a) Net assets exclu de $ 16.0 mill ion of cash transferred to the Company as the result of the acquisition. |
Schedule of Unaudited Pro Forma Financial Information | The unaudited pro forma financial information does not necessarily represent the results that would have occurred had the acquisition occurred on January 1, 2022. In addition, the unaudited pro forma information should not be deemed to be indicative of future results. (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Net sales $ 2,403.7 $ 2,599.1 $ 1,259.6 $ 1,356.4 Income from continuing operations, net of tax $ 218.1 $ 275.6 $ 120.7 $ 154.1 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in Net Carrying Amount of Goodwill by Segment | The change in the net carrying amount of goodwill by segment was as follows: (In millions) Water Outdoors Security Total Goodwill at December 31, 2022 (a) $ 893.4 $ 651.0 $ 96.3 $ 1,640.7 Year-to-date translation adjustments 7.7 - 0.4 8.1 Acquisition-related adjustments 222.4 0.1 39.4 261.9 Goodwill at July 1, 2023 (a) $ 1,123.5 $ 651.1 $ 136.1 $ 1,910.7 (a) Net of accumulated impairment losses of $ 399.5 million in the Outdoors segment. |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The gross carrying value and accumulated amortization by class of identifiable intangible assets as of July 1, 2023 and December 31, 2022 were as follows: (In millions) As of July 1, 2023 As of December 31, 2022 Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 553.5 $ - $ 553.5 $ 478.1 $ - $ 478.1 Amortizable intangible assets Tradenames 66.1 ( 8.0 ) 58.1 47.5 ( 6.8 ) 40.7 Customer and contractual relationships 1,004.3 ( 259.5 ) 744.8 662.6 ( 239.6 ) 423.0 Patents/proprietary technology 140.1 ( 75.0 ) 65.1 128.5 ( 69.5 ) 59.0 Total 1,210.5 ( 342.5 ) 868.0 838.6 ( 315.9 ) 522.7 Total identifiable intangibles $ 1,764.0 $ ( 342.5 ) $ 1,421.5 $ 1,316.7 $ ( 315.9 ) $ 1,000.8 |
External Debt and Financing A_2
External Debt and Financing Arrangements (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Notes | The following table provides a summary of the Company’s outstanding Notes, including the net carrying value of the Notes, net of underwriting commissions, price discounts, and debt issuance costs as of July 1, 2023 and December 31, 2022: Net Carrying Value (in millions) Principal Amount Issuance Date Maturity Date July 1, 2023 December 31, 2022 4.000% Senior Notes $ 500.0 June 2015 June 2025 $ 498.5 $ 498.1 4.000% Senior Notes 600.0 September 2018 September 2023 599.8 599.2 3.250% Senior Notes 700.0 September 2019 September 2029 695.3 695.0 4.000% Senior Notes 450.0 March 2022 March 2032 446.0 445.8 4.500% Senior Notes 450.0 March 2022 March 2052 435.6 435.4 5.875% Senior Notes 600.0 June 2023 June 2033 593.1 - Total Senior Notes $ 3,300.0 $ 3,268.3 $ 2,673.5 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | The fair values of derivative instruments on the consolidated balance sheets as of July 1, 2023 and December 31, 2022 were as follows: Fair Value (In millions) Location July 1, December 31, Assets: Foreign exchange contracts Other current assets $ 2.3 $ 5.0 Interest rate contracts Other current assets - 84.6 Total assets $ 2.3 $ 89.6 Liabilities: Foreign exchange contracts Other current liabilities $ 2.7 $ 0.7 Commodity contracts Other current liabilities 0.3 3.6 Total liabilities $ 3.0 $ 4.3 |
Effects of Derivative Financial Instruments on Consolidated Statements of Income | The effects of derivative financial instruments on the statements of comprehensive income for the twenty-six weeks ended July 1, 2023 and six months ended June 30, 2022 were as follows: (In millions) Classification and Amount of Gain (Loss) Twenty-Six Weeks Ended July 1, 2023 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,327.2 $ 54.6 $ 11.6 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - 4.4 Derivative designated as hedging instruments - - ( 2.9 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 4.0 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.1 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 2.6 - (In millions) Classification and Amount of Gain (Loss) Six Months Ended June 30, 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 1,413.8 $ 52.3 $ 2.4 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 10.4 ) Derivative designated as hedging instruments - - 7.7 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 1.3 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.3 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 1.4 - The effects of derivative financial instruments on the statements of comprehensive income for the thirteen weeks ended July 1, 2023 and three months ended June 30, 2022 were as follows: (In millions) Classification and Amount of Gain (Loss) Thirteen Weeks Ended July 1, 2023 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 695.6 $ 27.7 $ 5.2 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - 3.1 Derivative designated as hedging instruments - - ( 2.1 ) Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 2.0 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.3 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 1.5 - (In millions) Classification and Amount of Gain (Loss) Three Months Ended June 30, 2022 Cost of Interest Other income, net Total amounts per Consolidated Statements of Comprehensive Income $ 742.0 $ 30.5 $ 0.2 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships Foreign exchange contracts: Hedged items - - ( 8.4 ) Derivative designated as hedging instruments - - 7.2 Gain (loss) on cash flow hedging relationships Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income 0.9 - - Commodity contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income ( 0.4 ) - - Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income - 1.2 - |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Debt | The carrying value and fair value of debt as of July 1, 2023 and December 31, 2022 were as follows: (In millions) July 1, 2023 December 31, 2022 Carrying Fair Carrying Fair Notes, net of underwriting commissions, price discounts and debt issuance costs $ 3,268.3 $ 3,038.5 $ 2,673.5 $ 2,412.6 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of July 1, 2023 and December 31, 2022 were as follows: (In millions) Fair Value July 1, December 31, Assets Derivative financial instruments (Level 2) $ 2.3 $ 89.6 Deferred compensation program assets (Level 2) 15.9 14.9 Total assets $ 18.2 $ 104.5 Liabilities Derivative financial instruments (Level 2) $ 3.0 $ 4.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Equity [Abstract] | |
After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income | The after-tax components of and changes in accumulated other comprehensive (loss) income for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 were as follows: (In millions) Foreign Derivative Defined Accumulated Balance at December 31, 2021 $ 3.3 $ 2.9 $ ( 30.8 ) $ ( 24.6 ) Amounts classified into accumulated other ( 16.1 ) 72.4 ( 0.1 ) 56.2 Amounts reclassified from accumulated other - ( 3.8 ) - ( 3.8 ) Net current-period other comprehensive (loss) income ( 16.1 ) 68.6 ( 0.1 ) 52.4 Balance at June 30, 2022 $ ( 12.8 ) $ 71.5 $ ( 30.9 ) $ 27.8 Balance at December 31, 2022 $ ( 12.1 ) $ 93.5 $ ( 44.0 ) $ 37.4 Amounts classified into accumulated other 13.0 4.4 ( 0.2 ) 17.2 Other - - 6.2 6.2 Amounts reclassified from accumulated other - ( 5.5 ) - ( 5.5 ) Net current-period other comprehensive (loss) income 13.0 ( 1.1 ) 6.0 17.9 Balance at July 1, 2023 $ 0.9 $ 92.4 $ ( 38.0 ) $ 55.3 (In millions) Foreign Derivative Defined Accumulated Balance at March 31, 2022 $ 14.9 $ 51.0 $ ( 30.6 ) $ 35.3 Amounts classified into accumulated other ( 27.7 ) 23.2 ( 0.3 ) ( 4.8 ) Amounts reclassified from accumulated other - ( 2.7 ) - ( 2.7 ) Net current-period other comprehensive (loss) income ( 27.7 ) 20.5 ( 0.3 ) ( 7.5 ) Balance at June 30, 2022 $ ( 12.8 ) $ 71.5 $ ( 30.9 ) $ 27.8 Balance at April 1, 2023 $ ( 4.1 ) $ 85.0 $ ( 38.0 ) $ 42.9 Amounts classified into accumulated other 5.0 10.2 - 15.2 Other - - - - Amounts reclassified from accumulated other - ( 2.8 ) - ( 2.8 ) Net current-period other comprehensive (loss) income 5.0 7.4 - 12.4 Balance at July 1, 2023 $ 0.9 $ 92.4 $ ( 38.0 ) $ 55.3 |
Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | The reclassifications out of accumulated other comprehensive loss for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 were as follows: (In millions) Details about Accumulated Other Amount Reclassified from Affected Line Item in Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Gains (losses) on cash flow hedges Foreign exchange contracts $ 4.0 $ 1.3 Cost of products sold Commodity contracts ( 0.1 ) ( 0.3 ) Cost of products sold Interest rate contracts 2.6 1.4 Interest expense 6.5 2.4 Total before tax ( 1.0 ) ( 0.3 ) Tax expense Total reclassifications for the period $ 5.5 $ 2.1 Net of tax (In millions) Details about Accumulated Other Amount Reclassified from Affected Line Item in Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Gains (losses) on cash flow hedges Foreign exchange contracts $ 2.0 $ 0.9 Cost of products sold Commodity contracts ( 0.3 ) ( 0.4 ) Cost of products sold Interest rate contracts 1.5 1.2 Interest expense 3.2 1.7 Total before tax ( 0.4 ) ( 0.2 ) Tax expense Total reclassifications for the period $ 2.8 $ 1.5 Net of tax |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our consolidated revenue by major sales distribution channels for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2023: Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Wholesalers (a) $ 966.2 $ 1,053.2 $ 505.7 $ 565.3 Home Center retailers (b) 605.1 666.9 309.7 347.4 Other retailers (c) 191.7 210.3 96.2 117.1 Builder direct 0.5 - - - U.S. net sales 1,763.5 1,930.4 911.6 1,029.8 International (d) 440.2 465.2 252.1 225.6 Net sales $ 2,203.7 $ 2,395.6 $ 1,163.7 $ 1,255.4 (a) Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. (b) Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowe's Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. (c) Represents sales principally to our mass merchant and standalone independent e-commerce customers. (d) Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Income for Pension Benefits | The components of net periodic benefit income for pension benefits for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 were as follows: Pension Benefits (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Service cost $ 0.1 $ 0.2 $ 0.1 $ 0.1 Interest cost 13.6 10.2 6.7 5.1 Expected return on plan assets ( 14.3 ) ( 14.1 ) ( 7.1 ) ( 7.1 ) Net periodic benefit income $ ( 0.6 ) $ ( 3.7 ) $ ( 0.3 ) $ ( 1.9 ) |
Product Warranties (Tables)
Product Warranties (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Activity Related to Product Warranty Liability | The following table summarizes activity related to our product warranty liability for the twenty-six weeks ended July 1, 2023 and six months ended June 30, 2022, respectively. (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Reserve balance at January 1, $ 20.1 $ 19.5 Provision for warranties issued 4.3 3.9 Settlements made (in cash or in kind) ( 5.1 ) ( 4.2 ) Acquisition - 0.4 Foreign translation adjustments - ( 0.2 ) Reserve balance at end of period $ 19.3 $ 19.4 |
Information on Business Segme_2
Information on Business Segments (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Net Sales and Operating Income by Segment | Net sales and operating income for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 by segment were as follows: (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 % Change Net Sales Water $ 1,211.3 $ 1,293.6 ( 6.4 ) % Outdoors 665.5 780.8 ( 14.8 ) Security 326.9 321.2 1.8 Net sales $ 2,203.7 $ 2,395.6 ( 8.0 ) % Operating Income (Loss) Water $ 270.5 $ 310.0 ( 12.7 ) % Outdoors 74.2 107.2 ( 30.8 ) Security 20.8 45.5 ( 54.3 ) Less: Corporate expenses ( 81.1 ) ( 63.4 ) ( 27.9 ) Operating income $ 284.4 $ 399.3 ( 28.8 ) % (In millions) Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 % Change Net Sales Water $ 617.1 $ 650.0 ( 5.1 ) % Outdoors 375.6 437.2 ( 14.1 ) Security 171.0 168.2 1.7 Net sales $ 1,163.7 $ 1,255.4 ( 7.3 ) % Operating Income (Loss) Water $ 142.1 $ 160.7 ( 11.6 ) % Outdoors 61.2 67.4 ( 9.2 ) Security ( 0.4 ) 25.1 ( 101.6 ) Less: Corporate expenses ( 50.3 ) ( 33.7 ) ( 49.3 ) Operating income $ 152.6 $ 219.5 ( 30.5 ) % |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Pre-tax Restructuring and Other Charges | Pre-tax restructuring and other charges for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 are shown below. (In millions) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Restructuring Other (a) Total Restructuring Other (a) Total Water $ 1.3 $ 0.2 $ 1.5 $ 0.9 $ 0.8 $ 1.7 Outdoors 3.0 ( 1.7 ) 1.3 0.7 ( 6.3 ) ( 5.6 ) Security 20.2 7.5 27.7 - - - Corporate 0.7 - 0.7 - - - Total $ 25.2 $ 6.0 $ 31.2 $ 1.6 $ ( 5.5 ) $ ( 3.9 ) (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. (In millions) Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Restructuring Other (a) Total Restructuring Other (a) Total Water $ 1.1 $ 0.1 $ 1.2 $ 0.9 $ - $ 0.9 Outdoors 1.5 ( 1.7 ) ( 0.2 ) 0.1 - 0.1 Security 19.6 7.5 27.1 - - - Total $ 22.2 $ 5.9 $ 28.1 $ 1.0 $ - $ 1.0 (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. |
Reconciliation of Restructuring Liability | Reconciliation of Restructuring Liability (In millions) Balance at 2023 Cash (a) Non-Cash Balance at Workforce reduction costs $ 16.2 $ 14.2 $ ( 14.1 ) 0.7 $ 17.0 Other 13.5 11.0 ( 1.1 ) ( 14.3 ) 9.1 Total $ 29.7 $ 25.2 $ ( 15.2 ) $ ( 13.6 ) $ 26.1 (a) Cash expenditures primarily relate to severance charges. (In millions) Balance at 2022 Cash (a) Balance at Workforce reduction costs $ 3.2 $ 1.6 $ ( 3.4 ) $ 1.4 Other 0.8 - - 0.8 Total $ 4.0 $ 1.6 $ ( 3.4 ) $ 2.2 (a) Cash expenditures primarily relate to severance charges. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Computations of Earnings (Loss) per Common Share | The computations of earnings per common share for the twenty-six and thirteen weeks ended July 1, 2023 and six and three months ended June 30, 2022 were as follows: (In millions, except per share data) Twenty-Six Weeks Ended July 1, 2023 Six Months Ended June 30, 2022 Thirteen Weeks Ended July 1, 2023 Three Months Ended June 30, 2022 Income from continuing operations, net of tax $ 187.7 $ 270.5 $ 102.1 $ 144.3 (Loss) income from discontinued operations, net of tax (1.0 ) 102.4 - 47.7 Net income $ 186.7 $ 372.9 $ 102.1 $ 192.0 Earnings per common share Basic Continuing operations $ 1.47 $ 2.05 $ 0.81 $ 1.11 Discontinued operations - 0.78 - 0.36 Basic earnings per share $ 1.47 $ 2.83 $ 0.81 $ 1.47 Diluted Continuing operations $ 1.47 $ 2.03 $ 0.80 $ 1.10 Discontinued operations ( 0.01 ) 0.77 - 0.36 Diluted earnings per share $ 1.46 $ 2.80 $ 0.80 $ 1.46 Basic average shares outstanding 127.3 131.9 126.8 130.3 Stock-based awards 0.7 1.1 0.7 0.9 Diluted average shares outstanding 128.0 133.0 127.5 131.2 Antidilutive stock-based awards excluded from weighted- 1.0 1.0 1.0 1.6 |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |||||
Jun. 20, 2023 | Jul. 29, 2022 | Jul. 31, 2022 | Jan. 31, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | ||
Basis Of Presentation And Principles Of Consolidation [Line Items] | |||||||
Payments To Acquire Businesses Net Of Cash Acquired | $ 781.8 | $ 61.6 | |||||
Assa Businesses [Member] | |||||||
Basis Of Presentation And Principles Of Consolidation [Line Items] | |||||||
Payments To Acquire Businesses Net Of Cash Acquired | $ 800 | ||||||
Payments to acquire businesses gross | 800 | ||||||
Purchase price not yet paid as cash | 24 | ||||||
Cash transferred from acquisition | 16 | ||||||
Fair value allocated to assets acquired and liabilities assumed | [1] | $ 805.2 | |||||
Aqualisa Holdings International Ltd [Member] | |||||||
Basis Of Presentation And Principles Of Consolidation [Line Items] | |||||||
Payments To Acquire Businesses Net Of Cash Acquired | $ 4.8 | ||||||
Business acquisition, percentage of outstanding equity acquired | 100% | 100% | |||||
Payments to acquire businesses gross | $ 156 | $ 156 | |||||
Cash transferred from acquisition | 4.8 | ||||||
Fair value allocated to assets acquired and liabilities assumed | $ 156 | ||||||
Solar Innovations LLC [Member] | |||||||
Basis Of Presentation And Principles Of Consolidation [Line Items] | |||||||
Business acquisition, percentage of outstanding equity acquired | 100% | ||||||
Payments to acquire businesses gross | $ 61.6 | ||||||
Cash transferred from acquisition | 4.8 | ||||||
Fair value allocated to assets acquired and liabilities assumed | $ 61.6 | ||||||
[1] (a) Net assets exclu de $ 16.0 mill ion of cash transferred to the Company as the result of the acquisition. |
Balance Sheet Information - Sup
Balance Sheet Information - Supplemental Information on Balance Sheets (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Inventories: | ||
Raw materials and supplies | $ 338.7 | $ 309.4 |
Work in process | 76.8 | 83.5 |
Finished products | 539 | 628.4 |
Total inventories | 954.5 | 1,021.3 |
Property, plant and equipment, gross | 1,734.8 | 1,614.3 |
Less: accumulated depreciation | 868.2 | 830.6 |
Property, plant and equipment, net | $ 866.6 | $ 783.7 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 20, 2023 | Jul. 29, 2022 | Jan. 30, 2022 | Jul. 31, 2022 | Jan. 31, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | ||
Business Acquisition [Line Items] | ||||||||||
Depreciation | $ 40.9 | $ 61.7 | ||||||||
Amortization of intangible assets | $ 12.6 | $ 11.6 | 25.2 | 23.2 | ||||||
Payments To Acquire Businesses Net Of Cash Acquired | $ 781.8 | 61.6 | ||||||||
Cabinets [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net cash provided from operations related to discontinued operations | 128.3 | |||||||||
Net cash in investing activities | 22 | |||||||||
Capital expenditures | 22 | |||||||||
Discontinued Operations [Member] | Cabinets [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation | 21.5 | |||||||||
Amortization of intangible assets | $ 8.9 | |||||||||
Aqualisa Holdings (International) Ltd. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire businesses gross | $ 156 | $ 156 | ||||||||
Fair value allocated to assets acquired and liabilities assumed | $ 156 | |||||||||
Payments To Acquire Businesses Net Of Cash Acquired | $ 4.8 | |||||||||
Business acquisition, percentage of outstanding equity acquired | 100% | 100% | ||||||||
Business acquisition, goodwill, expected tax non-deductible amount | $ 88.7 | |||||||||
Solar Innovations [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire businesses gross | $ 61.6 | |||||||||
Fair value allocated to assets acquired and liabilities assumed | 61.6 | |||||||||
Payments To Acquire Businesses Net Of Cash Acquired | $ 4.8 | |||||||||
Business acquisition, percentage of outstanding equity acquired | 100% | |||||||||
Business acquisition, goodwill, expected tax non-deductible amount | $ 23.3 | |||||||||
Flo Technologies, Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Final cash payment | $ 16.7 | |||||||||
Assa Businesses [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire businesses gross | $ 800 | |||||||||
Fair value allocated to assets acquired and liabilities assumed | [1] | 805.2 | ||||||||
Payments To Acquire Businesses Net Of Cash Acquired | 800 | |||||||||
Purchase price not yet paid as cash | $ 24 | |||||||||
Finite-lived intangible assets, amortization method | . | |||||||||
Assa Businesses [Member] | Tradename [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets | $ 16.8 | |||||||||
Indefinite-lived intangible asset | 74.9 | |||||||||
Assa Businesses [Member] | Customer relationship [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets | 336.6 | |||||||||
Assa Businesses [Member] | Proprietary technology assets [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets | $ 11.1 | |||||||||
[1] (a) Net assets exclu de $ 16.0 mill ion of cash transferred to the Company as the result of the acquisition. |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Summary of Final Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Jun. 20, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Goodwill | [1] | $ 1,910.7 | $ 1,640.7 | |
ASSA Businesses [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 32.3 | |||
Inventories | 109.7 | |||
Property, plant and equipment | 18.6 | |||
Goodwill | 261.8 | |||
Identifiable intangible assets | 439.4 | |||
Operating lease assets | 6.8 | |||
Other assets | 2.4 | |||
Total assets | 871 | |||
Accounts payable | 28.7 | |||
Other current liabilities and accruals | 33.4 | |||
Other non-current liabilities | 3.7 | |||
Net assets acquired | [2] | $ 805.2 | ||
[1] Net of accumulated impairment losses of $ 399.5 million in the Outdoors segment. (a) Net assets exclu de $ 16.0 mill ion of cash transferred to the Company as the result of the acquisition. |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Summary of Final Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) $ in Millions | Jun. 20, 2023 USD ($) |
Assa Businesses [Member] | |
Business Acquisition [Line Items] | |
Cash transferred from acquisition | $ 16 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Schedule of Unaudited Pro Forma Financial Information (Detail) - Assa Businesses [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||||
Net sales | $ 1,259.6 | $ 1,356.4 | $ 2,403.7 | $ 2,599.1 |
Income from continuing operations, net of tax | $ 120.7 | $ 154.1 | $ 218.1 | $ 275.6 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 01, 2023 | Dec. 31, 2022 | ||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Goodwill | [1] | $ 1,910.7 | $ 1,640.7 |
Net identifiable intangible assets | 1,421.5 | $ 1,000.8 | |
Increase in gross identifiable intangible assets | $ 447.3 | ||
Tradenames and Customer Relationship [Member] | Minimum [Member] | |||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Amortizable identifiable intangible assets, estimated useful life | 5 years | ||
Tradenames and Customer Relationship [Member] | Maximum [Member] | |||
Goodwill and Identifiable Intangible Assets [Line Items] | |||
Amortizable identifiable intangible assets, estimated useful life | 30 years | ||
[1] Net of accumulated impairment losses of $ 399.5 million in the Outdoors segment. |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Detail) $ in Millions | 6 Months Ended | |
Jul. 01, 2023 USD ($) | ||
Goodwill [Line Items] | ||
Beginning Balance | $ 1,640.7 | [1] |
Year-to-date translation adjustments | 8.1 | |
Acquisition-related adjustments | 261.9 | |
Ending Balance | 1,910.7 | [1] |
Water [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 893.4 | [1] |
Year-to-date translation adjustments | 7.7 | |
Acquisition-related adjustments | 222.4 | |
Ending Balance | 1,123.5 | [1] |
Outdoors [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 651 | [1] |
Year-to-date translation adjustments | 0 | |
Acquisition-related adjustments | 0.1 | |
Ending Balance | 651.1 | [1] |
Security [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 96.3 | [1] |
Year-to-date translation adjustments | 0.4 | |
Acquisition-related adjustments | 39.4 | |
Ending Balance | $ 136.1 | [1] |
[1] Net of accumulated impairment losses of $ 399.5 million in the Outdoors segment. |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) $ in Millions | Jul. 01, 2023 USD ($) |
Outdoors Segment [Member] | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 399.5 |
Goodwill and Identifiable Int_6
Goodwill and Identifiable Intangible Assets - Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Indefinite-lived tradenames | $ 553.5 | $ 478.1 |
Net Book Value, Indefinite-lived tradenames | 553.5 | 478.1 |
Gross Carrying Amounts, Finite Lived | 1,210.5 | 838.6 |
Accumulated Amortization, Finite Lived | (342.5) | (315.9) |
Net Book Value, Finite Lived | 868 | 522.7 |
Gross Carrying Amounts, Total identifiable intangibles | 1,764 | 1,316.7 |
Accumulated Amortization, Total identifiable intangibles | (342.5) | (315.9) |
Net Book Value, Total identifiable intangibles | 1,421.5 | 1,000.8 |
Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 66.1 | 47.5 |
Accumulated Amortization, Finite Lived | (8) | (6.8) |
Net Book Value, Finite Lived | 58.1 | 40.7 |
Customer and contractual relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 1,004.3 | 662.6 |
Accumulated Amortization, Finite Lived | (259.5) | (239.6) |
Net Book Value, Finite Lived | 744.8 | 423 |
Patents/proprietary technology [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 140.1 | 128.5 |
Accumulated Amortization, Finite Lived | (75) | (69.5) |
Net Book Value, Finite Lived | $ 65.1 | $ 59 |
External Debt and Financing A_3
External Debt and Financing Arrangements - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Mar. 18, 2022 | Jun. 30, 2023 | Aug. 31, 2022 | Nov. 30, 2021 | Mar. 31, 2022 | Jul. 01, 2023 | Dec. 31, 2022 | Mar. 25, 2022 | |
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 3,300,000,000 | |||||||
Aggregate outstanding notes | 3,300,000,000 | |||||||
Debt Instrument, Description of Variable Rate Basis | As a result, interest rates under the 2021 Term Loan were variable based on SOFR at the time of the borrowing and the Company’s long-term credit rating and could range from SOFR + 0.725% to SOFR + 1.350%. | |||||||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital | 20,500,000 | $ 20,500,000 | ||||||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital amount outstanding | 0 | 0 | ||||||
Long-Term Debt | 3,268,300,000 | 2,673,500,000 | ||||||
2021 Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | |||||||
Principal Amount | $ 600,000,000 | |||||||
Term loan maturity period | 2022-11 | |||||||
Commercial Paper [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250,000,000 | |||||||
Long-Term Debt | 0 | 0 | ||||||
LIBOR [Member] | 2021 Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | 400,000,000 | |||||||
SOFR [Member] | 2021 Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 600,000,000 | |||||||
SOFR [Member] | 2021 Term Loan [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate over LIBOR | 0.725% | |||||||
SOFR [Member] | 2021 Term Loan [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate over LIBOR | 1.35% | |||||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 600,000,000 | $ 900,000,000 | ||||||
Senior Notes [Member] | 5.875% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured Senior Notes, Interest rate | 5.875% | |||||||
Unsecured Senior notes, Maturity year | 2033 | |||||||
Senior Notes [Member] | 4.000% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 450,000,000 | |||||||
Unsecured Senior Notes, Interest rate | 4% | 4% | ||||||
Unsecured Senior notes, Maturity year | 2032 | |||||||
Maturity Date | 2023-09 | |||||||
Senior Notes [Member] | 4.500% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 450,000,000 | |||||||
Unsecured Senior Notes, Interest rate | 4.50% | |||||||
Unsecured Senior notes, Maturity year | 2052 | |||||||
2022 Revolving Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250,000,000 | |||||||
Term loan, outstanding borrowings | $ 0 | $ 0 | ||||||
Debt instrument, covenant description | Under the 2022 Revolving Credit Agreement, the Company is required to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0. Consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other one-time adjustments. In addition, the Company's ratio of consolidated debt minus certain cash and cash equivalents to consolidated EBITDA generally may not exceed 3.5 to 1.0 | |||||||
Required minimum ratio of consolidated EBITDA to consolidated interest expense | 0.30 | |||||||
Ratio of consolidated debt minus certain cash and cash equivalents to consolidated EBITDA | 0.35 | |||||||
Debt Instrument, Description of Variable Rate Basis | Interest rates under the 2022 Revolving Credit Agreement are variable based on the Secured Overnight Financing Rate (“SOFR”) at the time of the borrowing and the Company’s long-term credit rating and can range from SOFR + 1.02% to SOFR + 1.525%. | |||||||
2022 Revolving Credit Agreement [Member] | SOFR [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate over LIBOR | 1.02% | |||||||
2022 Revolving Credit Agreement [Member] | SOFR [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate over LIBOR | 1.525% | |||||||
Second Amended And Incremental Agreement Term Loan Twenty Twenty One [Member] | 2021 Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 1,100,000,000 | |||||||
Term loan, outstanding borrowings | $ 1,100,000,000 |
External Debt and Financing A_4
External Debt and Financing Arrangements - Summary of Outstanding Notes (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 01, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Principal Amount | $ 3,300 | |
Net Carrying Value | 3,268.3 | $ 2,673.5 |
4.000% Senior Notes [Member] | 2015 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 500 | |
Issuance Date | 2015-06 | |
Maturity Date | 2025-06 | |
Net Carrying Value | $ 498.5 | 498.1 |
4.000% Senior Notes [Member] | 2018 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 600 | |
Issuance Date | 2018-09 | |
Maturity Date | 2023-09 | |
Net Carrying Value | $ 599.8 | 599.2 |
4.000% Senior Notes [Member] | 2022 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 450 | |
Issuance Date | 2022-03 | |
Maturity Date | 2032-03 | |
Net Carrying Value | $ 446 | 445.8 |
3.250% Senior Notes [Member] | 2019 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 700 | |
Issuance Date | 2019-09 | |
Maturity Date | 2029-09 | |
Net Carrying Value | $ 695.3 | 695 |
4.500% Senior Notes [Member] | 2022 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 450 | |
Issuance Date | 2022-03 | |
Maturity Date | 2052-03 | |
Net Carrying Value | $ 435.6 | 435.4 |
5.875% Senior Notes [Member] | 2023 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 600 | |
Issuance Date | 2023-06 | |
Maturity Date | 2033-06 | |
Net Carrying Value | $ 593.1 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 01, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||||
Notional amount of foreign currency derivative hedges | $ 600 | $ 600 | ||
Value of terminated interest rate hedges | $ 600 | |||
Maturity of long term debt | 10 years | |||
Foreign exchange contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of foreign currency derivative hedges | 325.8 | $ 325.8 | ||
Cash flow hedge [Member] | Foreign exchange contracts [Member] | ||||
Derivative [Line Items] | ||||
Estimated amount of net derivative gain in accumulated other comprehensive income reclassified to earnings within 12 months | $ 12.5 | 12.5 | ||
Total realized pre-tax gains | $ 84.2 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 2.3 | $ 89.6 |
Derivative liabilities, fair value | 3 | 4.3 |
Foreign exchange contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 2.3 | 5 |
Foreign exchange contracts [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 2.7 | 0.7 |
Interest rate contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 84.6 |
Commodity contracts [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 0.3 | $ 3.6 |
Financial Instruments - Effects
Financial Instruments - Effects of Derivative Financial Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Foreign exchange contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | $ 2 | $ 0.9 | $ 4 | $ 1.3 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Commodity contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | $ (0.3) | $ (0.4) | $ (0.1) | $ (0.3) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Interest rate contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss) income into income | $ 1.5 | $ 1.2 | $ 2.6 | $ 1.4 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense | Interest Expense |
Cost of products sold [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 695.6 | $ 742 | $ 1,327.2 | $ 1,413.8 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest |
Interest expense [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 27.7 | $ 30.5 | $ 54.6 | $ 52.3 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest |
Other income/expense, net [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 5.2 | $ 0.2 | $ 11.6 | $ 2.4 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest |
Other income/expense, net [Member] | Designated as hedging instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (2.1) | $ 7.2 | $ (2.9) | $ 7.7 |
Other income/expense, net [Member] | Foreign exchange contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 3.1 | $ (8.4) | $ 4.4 | $ (10.4) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Jul. 01, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Assets or liabilities measured at fair value on recurring basis | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Debt (Detail) - Senior Notes [Member] - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Carrying Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | $ 3,268.3 | $ 2,673.5 |
Fair Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Debt | $ 3,038.5 | $ 2,412.6 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments (Level 2) | $ 2.3 | $ 89.6 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 18.2 | 104.5 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments (Level 2) | 2.3 | 89.6 |
Deferred compensation program assets (Level 2) | 15.9 | 14.9 |
Derivative financial instruments (Level 2) | $ 3 | $ 4.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Interest rate hedges | $ 600 | $ 600 | ||||
Value of terminated interest rate hedges | $ 600 | |||||
Maturity of long term debt | 10 years | |||||
(Loss) income from discontinued operations, net of tax | 0 | $ 47.7 | $ (1) | $ 102.4 | ||
Foreign Exchange Contract [Member] | ||||||
Interest rate hedges | $ 325.8 | 325.8 | ||||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||||
Total realized pre-tax gains | $ 84.2 | |||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
(Loss) income from discontinued operations, net of tax | $ 1.2 | $ 1.7 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 2,082.5 | $ 2,914.8 | $ 2,086.9 | $ 3,064.8 |
Other | 12.9 | |||
Ending Balance | 2,177.1 | 2,952.4 | 2,177.1 | 2,952.4 |
Foreign Currency Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (4.1) | 14.9 | (12.1) | 3.3 |
Amounts classified into accumulated other comprehensive (loss) income | 5 | (27.7) | 13 | (16.1) |
Other | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Net current period other comprehensive (loss) income | 5 | (27.7) | 13 | (16.1) |
Ending Balance | 0.9 | (12.8) | 0.9 | (12.8) |
Derivative Hedging Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 85 | 51 | 93.5 | 2.9 |
Amounts classified into accumulated other comprehensive (loss) income | 10.2 | 23.2 | 4.4 | 72.4 |
Other | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive (loss) income | (2.8) | (2.7) | (5.5) | (3.8) |
Net current period other comprehensive (loss) income | 7.4 | 20.5 | (1.1) | 68.6 |
Ending Balance | 92.4 | 71.5 | 92.4 | 71.5 |
Defined Benefit Plan Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (38) | (30.6) | (44) | (30.8) |
Amounts classified into accumulated other comprehensive (loss) income | 0 | (0.3) | (0.2) | (0.1) |
Other | 0 | 6.2 | ||
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Net current period other comprehensive (loss) income | 0 | (0.3) | 6 | (0.1) |
Ending Balance | (38) | (30.9) | (38) | (30.9) |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 42.9 | 35.3 | 37.4 | (24.6) |
Amounts classified into accumulated other comprehensive (loss) income | 15.2 | (4.8) | 17.2 | 56.2 |
Other | 0 | 6.2 | ||
Amounts reclassified from accumulated other comprehensive (loss) income | (2.8) | (2.7) | (5.5) | (3.8) |
Net current period other comprehensive (loss) income | 12.4 | (7.5) | 17.9 | 52.4 |
Ending Balance | $ 55.3 | $ 27.8 | $ 55.3 | $ 27.8 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | $ 695.6 | $ 742 | $ 1,327.2 | $ 1,413.8 |
Interest expense | 27.7 | 30.5 | 54.6 | 52.3 |
Income from continuing operations before income taxes | 130.1 | 189.2 | 241.4 | 349.4 |
Tax (expense) benefit | (28) | (44.9) | (53.7) | (78.9) |
Total reclassifications for the period | 102.1 | 192 | 186.7 | 372.9 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income from continuing operations before income taxes | 3.2 | 1.7 | 6.5 | 2.4 |
Tax (expense) benefit | (0.4) | (0.2) | (1) | (0.3) |
Total reclassifications for the period | 2.8 | 1.5 | 5.5 | 2.1 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | Foreign Exchange Contract [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | 2 | 0.9 | 4 | 1.3 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | Commodity contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | (0.3) | (0.4) | (0.1) | (0.3) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Gain (Loss) [Member] | Interest rate contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 1.5 | $ 1.2 | $ 2.6 | $ 1.4 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 1,163.7 | $ 1,255.4 | $ 2,203.7 | $ 2,395.6 | |
Wholesalers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 505.7 | 565.3 | 966.2 | 1,053.2 |
Home Center retailers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [2] | 309.7 | 347.4 | 605.1 | 666.9 |
Other retailers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [3] | 96.2 | 117.1 | 191.7 | 210.3 |
Builder direct [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 0 | 0 | 0.5 | 0 | |
United States [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 911.6 | 1,029.8 | 1,763.5 | 1,930.4 | |
International [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [4] | $ 252.1 | $ 225.6 | $ 440.2 | $ 465.2 |
[1] Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowe's Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. Represents sales principally to our mass merchant and standalone independent e-commerce customers. Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans - Compone
Defined Benefit Plans - Components of Net Periodic Benefit Income for Pension Benefits (Detail) - Net Periodic Benefit Cost [Member] - Pension Benefits [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.2 |
Interest cost | 6.7 | 5.1 | 13.6 | 10.2 |
Expected return on plan assets | (7.1) | (7.1) | (14.3) | (14.1) |
Net periodic benefit income | $ (0.3) | $ (1.9) | $ (0.6) | $ (3.7) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 21.50% | 23.70% | 22.20% | 22.60% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% |
Product Warranties - Activity R
Product Warranties - Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 01, 2023 | Jun. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | ||
Reserve balance at the beginning of the period | $ 20.1 | $ 19.5 |
Provision for warranties issued | 4.3 | 3.9 |
Settlements made (in cash or in kind) | (5.1) | (4.2) |
Acquisition | 0 | 0.4 |
Foreign translation adjustments | 0 | (0.2) |
Reserve balance at end of period | $ 19.3 | $ 19.4 |
Information on Business Segme_3
Information on Business Segments - Net Sales and Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 1,163.7 | $ 1,255.4 | $ 2,203.7 | $ 2,395.6 |
Operating income | $ 152.6 | 219.5 | $ 284.4 | 399.3 |
Operating Income, Percentage Change vs. Prior Year | (30.50%) | (28.80%) | ||
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 1,163.7 | 1,255.4 | $ 2,203.7 | 2,395.6 |
Net Sales, Percentage Change vs. Prior Year | (7.30%) | (8.00%) | ||
Corporate [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ (50.3) | (33.7) | $ (81.1) | (63.4) |
Operating Income, Percentage Change vs. Prior Year | 49.30% | 27.90% | ||
Water Innovations [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 617.1 | 650 | $ 1,211.3 | 1,293.6 |
Operating income | $ 142.1 | 160.7 | $ 270.5 | 310 |
Net Sales, Percentage Change vs. Prior Year | (5.10%) | (6.40%) | ||
Operating Income, Percentage Change vs. Prior Year | (11.60%) | (12.70%) | ||
Outdoors [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 375.6 | 437.2 | $ 665.5 | 780.8 |
Operating income | $ 61.2 | 67.4 | $ 74.2 | 107.2 |
Net Sales, Percentage Change vs. Prior Year | (14.10%) | (14.80%) | ||
Operating Income, Percentage Change vs. Prior Year | (9.20%) | (30.80%) | ||
Security [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | $ 171 | 168.2 | $ 326.9 | 321.2 |
Operating income | $ (0.4) | $ 25.1 | $ 20.8 | $ 45.5 |
Net Sales, Percentage Change vs. Prior Year | 1.70% | 1.80% | ||
Operating Income, Percentage Change vs. Prior Year | (101.60%) | (54.30%) |
Restructuring and Other Charg_3
Restructuring and Other Charges - Pre-tax Restructuring and Other Charges (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 22.2 | $ 1 | $ 25.2 | $ 1.6 | |
Other Charges | [1] | 5.9 | 0 | 6 | (5.5) |
Total Charges | 28.1 | 1 | 31.2 | (3.9) | |
Operating Segments [Member] | Water [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1.1 | 0.9 | 1.3 | 0.9 | |
Other Charges | [1] | 0.1 | 0 | 0.2 | 0.8 |
Total Charges | 1.2 | 0.9 | 1.5 | 1.7 | |
Operating Segments [Member] | Outdoors [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1.5 | 0.1 | 3 | 0.7 | |
Other Charges | [1] | (1.7) | 0 | (1.7) | (6.3) |
Total Charges | (0.2) | 0.1 | 1.3 | (5.6) | |
Operating Segments [Member] | Security [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 19.6 | 0 | 20.2 | 0 | |
Other Charges | [1] | 7.5 | 0 | 7.5 | 0 |
Total Charges | $ 27.1 | $ 0 | 27.7 | 0 | |
Operating Segments [Member] | Corporate [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0.7 | 0 | |||
Other Charges | [1] | 0 | 0 | ||
Total Charges | $ 0.7 | $ 0 | |||
[1] (a) “Other Charges (Gains)” represent charges directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such costs may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities and gains or losses on the sale of previously closed facilities. |
Restructuring and Other Charg_4
Restructuring and Other Charges - Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | $ 29.7 | $ 4 | |||
Provision | $ 22.2 | $ 1 | 25.2 | 1.6 | |
Cash Expenditures | [1] | (15.2) | (3.4) | ||
Non-cash write-offs | (13.6) | ||||
Ending Balance | 26.1 | 2.2 | 26.1 | 2.2 | |
Workforce Reduction Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | 16.2 | 3.2 | |||
Provision | 14.2 | 1.6 | |||
Cash Expenditures | [1] | (14.1) | (3.4) | ||
Non-cash write-offs | 0.7 | ||||
Ending Balance | 17 | 1.4 | 17 | 1.4 | |
Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | 13.5 | 0.8 | |||
Provision | 11 | 0 | |||
Cash Expenditures | [1] | (1.1) | 0 | ||
Non-cash write-offs | (14.3) | ||||
Ending Balance | $ 9.1 | $ 0.8 | $ 9.1 | $ 0.8 | |
[1] (a) Cash expenditures primarily relate to severance charges. |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 30, 2022 | Jul. 01, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations, net of tax | $ 102.1 | $ 144.3 | $ 187.7 | $ 270.5 |
Income from discontinued operations, net of tax | 0 | 47.7 | (1) | 102.4 |
Net income | $ 102.1 | $ 192 | $ 186.7 | $ 372.9 |
Continuing operations | $ 0.81 | $ 1.11 | $ 1.47 | $ 2.05 |
Discontinued operations | 0 | 0.36 | 0 | 0.78 |
Basic earnings per share | 0.81 | 1.47 | 1.47 | 2.83 |
Continuing operations | 0.80 | 1.10 | 1.47 | 2.03 |
Discontinued operations | 0 | 0.36 | (0.01) | 0.77 |
Diluted earnings per share | $ 0.80 | $ 1.46 | $ 1.46 | $ 2.80 |
Basic average shares outstanding | 126,800,000 | 130,300,000 | 127,300,000 | 131,900,000 |
Stock-based awards | 700,000 | 900,000 | 700,000 | 1,100,000 |
Diluted average shares outstanding | 127,500,000 | 131,200,000 | 128,000,000 | 133,000,000 |
Antidilutive stock-based awards excluded from weighted- average number of shares outstanding for diluted earnings per share | 1 | 1.6 | 1 | 1 |