Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2017 | ||
Amendment Flag | false | ||
Entity Registrant Name | Graco Inc. | ||
Entity Central Index Key | 42,888 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 169,442,333 | ||
Entity Public Float | $ 6,014,560,705 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GGG |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Income Statement [Abstract] | |||
Net Sales | $ 1,474,744 | $ 1,329,293 | $ 1,286,485 |
Cost of products sold | 681,695 | 621,054 | 601,785 |
Gross Profit | 793,049 | 708,239 | 684,700 |
Product development | 60,106 | 60,606 | 58,559 |
Selling, marketing and distribution | 233,462 | 215,253 | 201,855 |
General and administrative | 139,034 | 126,481 | 122,161 |
Impairment | 0 | 192,020 | 0 |
Operating Earnings | 360,447 | 113,879 | 302,125 |
Interest expense | 16,202 | 17,590 | 17,643 |
Held separate investment (income), net | 0 | 0 | (191,635) |
Other expense (income), net | (2,849) | (366) | 1,404 |
Earnings Before Income Taxes | 347,094 | 96,655 | 474,713 |
Income taxes | 94,682 | 55,981 | 129,000 |
Net Earnings | $ 252,412 | $ 40,674 | $ 345,713 |
Basic Net Earnings per Common Share | $ 1.50 | $ 0.24 | $ 2 |
Diluted Net Earnings per Common Share | 1.45 | 0.24 | 1.95 |
Cash Dividends Declared per Common Share | $ 0.49 | $ 0.45 | $ 0.41 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings | $ 252,412 | $ 40,674 | $ 345,713 |
Components of other comprehensive income (loss) | |||
Cumulative translation adjustment | 16,443 | (31,227) | (10,423) |
Pension and postretirement medical liability adjustment | (3,321) | (10,715) | 10,372 |
Income taxes - pension and postretirement medical liability | 1,317 | 4,211 | (3,710) |
Other comprehensive income (loss) | 14,439 | (37,731) | (3,761) |
Comprehensive Income | $ 266,851 | $ 2,943 | $ 341,952 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 103,662 | $ 52,365 |
Accounts receivable, less allowances of $14,000 and $12,700 | 256,421 | 218,365 |
Inventories | 239,349 | 201,609 |
Other current assets | 32,494 | 31,023 |
Total current assets | 631,926 | 503,362 |
Property, Plant and Equipment, net | 204,298 | 189,596 |
Goodwill | 278,789 | 259,849 |
Other Intangible Assets, net | 183,056 | 178,336 |
Deferred Income Taxes | 50,916 | 86,653 |
Other Assets | 30,220 | 25,313 |
Total Assets | 1,379,205 | 1,243,109 |
Current Liabilities | ||
Notes payable to banks | 6,578 | 8,913 |
Trade accounts payable | 48,748 | 39,988 |
Salaries and incentives | 55,884 | 37,109 |
Dividends payable | 22,260 | 20,088 |
Other current liabilities | 100,956 | 71,887 |
Total current liabilities | 234,426 | 177,985 |
Long-term Debt | 226,035 | 305,685 |
Retirement Benefits and Deferred Compensation | 172,411 | 159,250 |
Deferred Income Taxes | 17,253 | 17,672 |
Other Non-current Liabilities | 6,017 | 8,697 |
Commitments and Contingencies (Note K) | ||
Shareholders’ Equity | ||
Common stock, $1 par value; 291,000,000 shares authorized; 169,318,926 and 167,503,236 shares outstanding in 2017 and 2016 | 169,319 | 55,834 |
Additional paid-in-capital | 499,934 | 453,394 |
Retained earnings | 181,599 | 206,820 |
Accumulated other comprehensive income (loss) | (127,789) | (142,228) |
Total shareholders’ equity | 723,063 | 573,820 |
Total Liabilities and Shareholders’ Equity | $ 1,379,205 | $ 1,243,109 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 29, 2017 | Dec. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable | $ 14 | $ 12.7 |
Common stock, par value | $ 1 | $ 1 |
Common stock authorized | 291,000,000 | 291,000,000 |
Common stock outstanding | 169,318,926 | 167,503,236 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Cash Flows From Operating Activities | |||
Net Earnings | $ 252,412 | $ 40,674 | $ 345,713 |
Adjustments to reconcile net earnings to net cash provided by operating activities | |||
Impairment | 0 | 192,020 | 0 |
Depreciation and amortization | 45,583 | 48,290 | 44,607 |
Deferred income taxes | 34,446 | (35,561) | (11,585) |
Share-based compensation | 23,652 | 21,134 | 19,224 |
(Gain) loss on sale of business | 0 | 0 | (149,894) |
Change in | |||
Accounts receivable | (28,010) | 4,506 | (18,276) |
Inventories | (32,011) | (693) | (34,109) |
Trade accounts payable | 4,588 | 553 | 4,305 |
Salaries and incentives | 11,431 | (6,809) | (1,385) |
Retirement benefits and deferred compensation | 6,920 | 10,995 | 11,870 |
Other accrued liabilities | 23,909 | 3,298 | 1,645 |
Other | (5,056) | (2,401) | (20,701) |
Net cash provided by operating activities | 337,864 | 276,006 | 191,414 |
Cash Flows From Investing Activities | |||
Property, plant and equipment additions | (40,194) | (42,113) | (41,749) |
Acquisition of businesses, net of cash acquired | (27,905) | (48,946) | (189,017) |
Proceeds from sale of assets | 0 | 0 | 610,162 |
Change in restricted assets | (12) | 288 | (9,518) |
Other | (348) | (164) | 61 |
Net cash provided by (used in) investing activities | (68,459) | (90,935) | 369,939 |
Cash Flows From Financing Activities | |||
Borrowings (payments) on short-term lines of credit, net | (3,026) | (5,995) | 11,216 |
Borrowings on long-term line of credit | 315,920 | 648,134 | 720,605 |
Payments on long-term debt and line of credit | (395,570) | (735,144) | (942,910) |
Payments of debt issuance costs | 0 | (860) | 0 |
Common stock issued | 60,685 | 35,796 | 20,165 |
Common stock repurchased | (90,160) | (50,497) | (274,503) |
Taxes paid related to net share settlement of equity awards | (24,448) | (3,165) | (1,330) |
Cash dividends paid | (80,477) | (73,434) | (69,429) |
Net cash provided by (used in) financing activities | (217,076) | (185,165) | (536,186) |
Effect of exchange rate changes on cash | (1,032) | 164 | 3,472 |
Net increase (decrease) in cash and cash equivalents | 51,297 | 70 | 28,639 |
Cash and Cash Equivalents | |||
Beginning of year | 52,365 | 52,295 | 23,656 |
End of year | $ 103,662 | $ 52,365 | $ 52,295 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 26, 2014 | $ 596,032 | $ 59,199 | $ 384,704 | $ 252,865 | $ (100,736) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 18,486 | 446 | 18,040 | 0 | 0 |
Shares repurchased | (272,064) | (3,879) | (25,201) | (242,984) | 0 |
Stock compensation cost | 19,107 | 0 | 19,107 | 0 | 0 |
Tax benefit related to stock options exercised | 1,775 | 0 | 1,775 | 0 | 0 |
Restricted stock cancelled (issued) | 349 | 0 | 349 | 0 | 0 |
Net Earnings | 345,713 | 0 | 0 | 345,713 | 0 |
Dividends declared | (70,086) | 0 | 0 | (70,086) | 0 |
Other comprehensive income (loss) | (3,761) | 0 | 0 | 0 | (3,761) |
Ending Balance at Dec. 25, 2015 | 635,551 | 55,766 | 398,774 | 285,508 | (104,497) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 32,777 | 830 | 31,947 | 0 | 0 |
Shares repurchased | (50,497) | (762) | (5,449) | (44,286) | 0 |
Stock compensation cost | 21,355 | 0 | 21,355 | 0 | 0 |
Tax benefit related to stock options exercised | 6,913 | 0 | 6,913 | 0 | 0 |
Restricted stock cancelled (issued) | (146) | 0 | (146) | 0 | 0 |
Net Earnings | 40,674 | 0 | 0 | 40,674 | 0 |
Dividends declared | (75,076) | 0 | 0 | (75,076) | 0 |
Other comprehensive income (loss) | (37,731) | 0 | 0 | 0 | (37,731) |
Ending Balance at Dec. 30, 2016 | 573,820 | 55,834 | 453,394 | 206,820 | (142,228) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Split | 0 | 112,879 | 0 | (112,879) | 0 |
Shares issued | 36,653 | 1,489 | 35,164 | 0 | 0 |
Shares repurchased | (90,160) | (883) | (7,172) | (82,105) | 0 |
Stock compensation cost | 18,963 | 0 | 18,963 | 0 | 0 |
Restricted stock cancelled (issued) | (415) | 0 | (415) | 0 | 0 |
Net Earnings | 252,412 | 0 | 0 | 252,412 | 0 |
Dividends declared | (82,649) | 0 | 0 | (82,649) | 0 |
Other comprehensive income (loss) | 14,439 | 0 | 0 | 0 | 14,439 |
Ending Balance at Dec. 29, 2017 | $ 723,063 | $ 169,319 | $ 499,934 | $ 181,599 | $ (127,789) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Fiscal Year . The fiscal year of Graco Inc. and Subsidiaries (the “Company”) is 52 or 53 weeks, ending on the last Friday in December. The years ended December 29, 2017 and December 25, 2015 were 52-week years. The year ended December 30, 2016 was a 53-week year. Basis of Statement Presentation . The consolidated financial statements include the accounts of the parent company and its subsidiaries after elimination of intercompany balances and transactions. As of December 29, 2017 , all subsidiaries are 100 percent controlled by the Company. All share and per share data have been adjusted to reflect the three-for-one stock split distributed on December 27, 2017. Certain other prior year disclosures have been revised to conform with current year reporting. As more fully described in Note M (Divestiture), in 2015, the Company sold the Liquid Finishing business assets acquired in 2012 that were held as a cost-method investment. Investment income in the Company’s consolidated statements of earnings includes the pre-tax gain on the sale, net of transaction and other related expenses, along with dividend income received prior to the sale from after-tax earnings of Liquid Finishing. Foreign Currency Translation . The functional currency of certain subsidiaries is the local currency. Accordingly, adjustments resulting from the translation of those subsidiaries’ financial statements into U.S. dollars are charged or credited to accumulated other comprehensive income (loss). The U.S. dollar is the functional currency for all other foreign subsidiaries. Accordingly, gains and losses from the translation of foreign currency balances and transactions of those subsidiaries are included in other expense (income), net. Accounting Estimates . The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value Measurements. The three levels of inputs in the fair value measurement hierarchy are as follows: Level 1 – based on quoted prices in active markets for identical assets Level 2 – based on significant observable inputs Level 3 – based on significant unobservable inputs Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level 2017 2016 Assets Cash surrender value of life insurance 2 $ 16,128 $ 13,785 Forward exchange contracts 2 — 571 Total assets at fair value $ 16,128 $ 14,356 Liabilities Contingent consideration 3 $ 4,081 $ 4,081 Deferred compensation 2 3,836 3,265 Forward exchange contracts 2 517 — Total liabilities at fair value $ 8,434 $ 7,346 Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds. The Company’s policy and accounting for forward exchange contracts are described below, in Derivative Instruments and Hedging Activities. Contingent consideration liability represents the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of an acquired business based on its future revenues (see Note L, Acquisitions). Disclosures related to other fair value measurements are included below in Impairment of Long-Lived Assets, in Note F (Debt) and in Note J (Retirement Benefits). Cash Equivalents . All highly liquid investments with a maturity of three months or less at the date of purchase are considered to be cash equivalents. Accounts Receivable. Accounts receivable includes trade receivables of $244 million in 2017 and $209 million in 2016 . Other receivables totaled $12 million in 2017 and $9 million in 2016 . Inventory Valuation . Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) cost method is used for valuing most U.S. inventories. Inventories of foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method. Other Current Assets. Amounts included in other current assets were (in thousands): 2017 2016 Prepaid income taxes $ 8,934 $ 10,723 Restricted cash 9,242 9,230 Prepaid expenses and other 14,318 11,070 Total $ 32,494 $ 31,023 Cash balances included within other current assets were restricted to funding of certain self-insured loss reserves. Impairment of Long-Lived Assets. The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment annually in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We completed our annual impairment review of all long-lived assets in the fourth quarter of 2017. No impairment charges were recorded as a result of that review. In 2016, we recorded an impairment charge of $192 million for our Oil and Natural Gas reporting unit within the Process segment. There were no impairment charges in 2015. Property, Plant and Equipment . For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years Goodwill and Other Intangible Assets. Goodwill has been assigned to reporting units. Changes in the carrying amounts of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, December 25, 2015 $ 153,283 $ 228,473 $ 12,732 $ 394,488 Additions from business acquisitions — 28,130 — 28,130 Impairment — (146,669 ) — (146,669 ) Foreign currency translation (2,727 ) (13,373 ) — (16,100 ) Balance, December 30, 2016 150,556 96,561 12,732 259,849 Additions (adjustments) from business acquisitions 7,152 (62 ) 6,413 13,503 Foreign currency translation 3,965 1,472 — 5,437 Balance, December 29, 2017 $ 161,673 $ 97,971 $ 19,145 $ 278,789 Components of other intangible assets were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of December 29, 2017 Cost $ 179,826 $ 18,479 $ 1,071 $ 59,553 $ 258,929 Accumulated amortization (54,076 ) (7,795 ) (542 ) — (62,413 ) Foreign currency translation (9,186 ) (727 ) (61 ) (3,486 ) (13,460 ) Book value $ 116,564 $ 9,957 $ 468 $ 56,067 $ 183,056 Weighted average life in years 13 10 4 N/A As of December 30, 2016 Cost $ 170,284 $ 17,321 $ 895 $ 57,853 $ 246,353 Accumulated amortization (41,599 ) (6,088 ) (337 ) — (48,024 ) Foreign currency translation (13,630 ) (1,055 ) (59 ) (5,249 ) (19,993 ) Book value $ 115,055 $ 10,178 $ 499 $ 52,604 $ 178,336 Weighted average life in years 13 10 4 N/A Amortization of intangibles was $14.8 million in 2017 , $17.8 million in 2016 and $17.2 million in 2015 . Estimated future annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2018 2019 2020 2021 2022 Thereafter Estimated Amortization Expense $ 15,418 $ 15,089 $ 14,910 $ 14,740 $ 14,740 $ 52,092 Other Assets. Components of other assets were (in thousands): 2017 2016 Cash surrender value of life insurance $ 16,128 $ 13,785 Capitalized software 1,784 1,812 Equity method investment 6,755 6,366 Prepaid pension 2,538 — Deposits and other 3,015 3,350 Total $ 30,220 $ 25,313 The Company has entered into contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans. These insurance contracts are used to fund the non-qualified pension and deferred compensation arrangements. The insurance contracts are held in a trust and are available to general creditors in the event of the Company’s insolvency. Changes in cash surrender value are recorded in operating expense and were not significant in 2016 and 2015 . In 2017 , increases in cash surrender value totaled $2.3 million and were offset by expenses related to the non-qualified pension and deferred compensation plans funded by the insurance contracts. Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. Other Current Liabilities. Components of other current liabilities were (in thousands): 2017 2016 Accrued self-insurance retentions $ 7,956 $ 7,105 Accrued warranty and service liabilities 10,535 8,934 Accrued trade promotions 10,588 6,007 Payable for employee stock purchases 10,053 9,328 Customer advances and deferred revenue 22,632 9,400 Income taxes payable 7,564 8,608 Other 31,628 22,505 Total $ 100,956 $ 71,887 Self-Insurance. The Company is self-insured for certain losses and costs relating to product liability, workers’ compensation, employee medical benefit claims and representations and warranties associated with the Liquid Finishing business divestiture. The Company has stop-loss coverage in order to limit its exposure to significant claims. Accrued self-insurance retentions are based on claims filed, estimates of claims incurred but not reported, and other actuarial assumptions. Self-insured reserves totaled $8.5 million as of December 29, 2017 , and $9.8 million as of December 30, 2016 , including $0.5 million and $2.7 million , respectively, classified as other long-term liabilities in the Consolidated Balance Sheets. Product Warranties. A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors including evaluating specific product warranty issues. Following is a summary of activity in accrued warranty and service liabilities (in thousands): 2017 2016 Balance, beginning of year $ 8,934 $ 7,870 Charged to expense 7,930 7,516 Margin on parts sales reversed 2,826 1,796 Reductions for claims settled (9,155 ) (8,248 ) Balance, end of year $ 10,535 $ 8,934 Revenue Recognition . Sales are recognized when revenue is realized or realizable and has been earned. The Company’s policy is to recognize revenue when risk and title passes to the customer. This is generally on the date of shipment, however certain sales have terms requiring recognition when received by the customer. In cases where there are specific customer acceptance provisions, revenue is recognized at the later of customer acceptance or shipment (subject to shipping terms). Payment terms are established based on the type of product, distributor capabilities and competitive market conditions. Rights of return are typically contractually limited, amounts are estimable, and the Company records provisions for anticipated returns and warranty claims at the time revenue is recognized. Historically, sales returns have been less than 3 percent of sales. Provisions for sales returns are recorded as a reduction of net sales, and provisions for warranty claims are recorded in selling, marketing and distribution expenses. From time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. In such cases, provisions for estimated returns are recorded as a reduction of net sales. Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include cooperative advertising arrangements, rebates based on annual purchases and sales growth, coupons and reimbursement for competitive products. Payment of incentives may take the form of cash, trade credit, promotional merchandise or free product. Under cooperative advertising arrangements, the Company reimburses the distributor for a portion of its advertising costs related to the Company’s products; estimated costs are accrued at the time of sale and classified as selling, marketing and distribution expense. Rebates are accrued based on the program rates and progress toward the estimated annual sales amount and sales growth, and are recorded as a reduction of sales (cash, trade credit) or cost of products sold (free goods). The estimated costs related to coupon programs are accrued at the time of sale and classified as selling, marketing and distribution expense or cost of products sold, depending on the type of incentive offered. Shipping and Handling. Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold in the accompanying Consolidated Statements of Earnings. Amounts billed to customers for shipping and handling are included in net sales. Earnings Per Common Share . Basic net earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the year. Diluted net earnings per share is computed after giving effect to the exercise of all dilutive outstanding option grants. Comprehensive Income. Comprehensive income is a measure of all changes in shareholders’ equity except those resulting from investments by and distributions to owners, and includes such items as net earnings, certain foreign currency translation items, changes in the value of qualifying hedges and pension liability adjustments. Derivative Instruments and Hedging Activities . The Company accounts for all derivatives, including those embedded in other contracts, as either assets or liabilities and measures those financial instruments at fair value. The accounting for changes in the fair value of derivatives depends on their intended use and designation. As part of its risk management program, the Company may periodically use forward exchange contracts to manage known market exposures. Terms of derivative instruments are structured to match the terms of the risk being managed and are generally held to maturity. The Company does not hold or issue derivative financial instruments for trading purposes. All other contracts that contain provisions meeting the definition of a derivative also meet the requirements of, and have been designated as, normal purchases or sales. The Company’s policy is to not enter into contracts with terms that cannot be designated as normal purchases or sales. The Company periodically evaluates its monetary asset and liability positions denominated in foreign currencies. The Company enters into forward contracts or options, or borrows in various currencies, in order to hedge its net monetary positions. These instruments are recorded at fair value and the gains and losses are included in other expense, net. The notional amounts of contracts outstanding as of December 29, 2017 , totaled $34 million . The Company believes it uses strong financial counterparties in these transactions and that the resulting credit risk under these hedging strategies is not significant. The Company uses significant other observable inputs (level 2 in the fair value hierarchy) to value the derivative instruments used to hedge net monetary positions, including reference to market prices and financial models that incorporate relevant market assumptions. Net derivative assets are reported on the balance sheet in accounts receivable and net derivative liabilities are reported as other current liabilities. The fair market value of such instruments follows (in thousands): 2017 2016 Foreign Currency Contracts Assets $ — $ 621 Liabilities (517 ) (50 ) Net Assets (Liabilities) $ (517 ) $ 571 Recent Accounting Pronouncements. Share-based Payments A new accounting standard that changed certain aspects of accounting for share-based payments became effective for the Company in the first quarter of 2017. Excess tax benefits on exercised stock options that were previously credited to equity now reduce the current income tax provision. The change in accounting for excess tax benefits decreased the current income tax provision and increased net earnings for the year by $36.3 million , reduced the effective income tax rate by 10 percentage points and increased diluted earnings per share by $0.21 . Under the new standard, excess tax benefits are no longer reclassified out of cash flows from operating activities to financing activities in the Consolidated Statements of Cash Flows. We elected to apply the cash flow presentation requirements retrospectively to all periods presented, which resulted in an increase in previously reported net cash provided by operating activities and a decrease in net cash provided by financing activities of $6.9 million for the year ended December 30, 2016 and $1.8 million for the year ended December 25, 2015 . Also under the new standard, the Company elected to account for share-based grant forfeitures as they occur. The impact of the change in accounting for forfeitures was no t significant, and was reflected in share-based compensation cost in the first quarter of 2017. Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued a final standard on revenue from contracts with customers, contained in Accounting Standards Codification Topic 606 (“ASC 606”). The new standard sets forth a single comprehensive model for recognizing and reporting revenue. ASC 606 will become effective for the Company beginning with the first quarter of 2018, and the Company plans to adopt the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. Because the new standard impacted our business processes, systems and controls, we developed a comprehensive change management project plan to guide the implementation. This project plan included analyzing the standard’s impact on our revenue streams and associated contracts, comparing our historical accounting policies and practices to the requirements of the new standard, and identifying differences from applying the requirements of the new standard to our contracts. We developed internal controls to ensure that we adequately evaluated our portfolio of contracts under the five-step model to ensure proper assessment of our operating results under ASC 606. We reported on the progress of the implementation to the Audit Committee and the Board of Directors on a regular basis during the project’s duration. For most of our contracts, we will record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We have made the necessary changes to our business processes, policies, systems and controls to support recognition and disclosure under the new standard. Further, we will include incremental disaggregated revenue and other disclosures as required in our consolidated financial statements. Based on the results of the evaluation, nothing has come to our attention that would indicate that adoption of the new standard will have a material impact on our consolidated financial statements. Application of the transition requirements of the new standard will not have a material impact on opening retained earnings. Presentation of Pension Cost In March 2017, the FASB issued a final standard that changes the presentation of net periodic benefit cost related to defined benefit plans. The Company will adopt the standard when it becomes effective in fiscal 2018 and it will be applied retrospectively to all periods presented. Under the new standard, net periodic benefit costs are required to be disaggregated between service costs presented as operating expenses and other components of pension costs presented as non-operating expenses. The Company currently charges service costs to segment operations and includes other components of pension cost in unallocated corporate operating expenses. Under the new standard, unallocated corporate operating expenses will decrease, operating earnings will increase and other expense will increase by the amount of other (non-service) components of pension cost. There will be no impact on reported segment earnings, net earnings or earnings per share. Leases In February 2016, the FASB issued a final standard on accounting for leases. The new standard is effective for the Company in fiscal 2019 and requires most leases to be recorded on the balance sheet. The Company is evaluating the effect of the new standard on its consolidated financial statements and related disclosures and accounting systems. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 29, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information | Segment Information The Company has six operating segments which are aggregated into three reportable segments: Industrial, Process and Contractor. The Industrial segment includes our Industrial Products and Applied Fluid Technologies divisions. The Industrial segment markets equipment and pre-engineered packages for moving and applying paints, coatings, sealants, adhesives and other fluids. Markets served include automotive and vehicle assembly and components production, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries. The Process segment includes our Process, Oil and Natural Gas, and Lubrication divisions. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids. Markets served include food and beverage, dairy, oil and natural gas, pharmaceutical, cosmetics, electronics, wastewater, mining, fast oil change facilities, service garages, fleet service centers, automobile dealerships and industrial lubrication applications. The Contractor segment markets sprayers for architectural coatings for painting, corrosion control, texture and line striping. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The cost of manufacturing for each segment is based on product cost, and expenses are based on actual costs incurred along with cost allocations of shared and centralized functions based on activities performed, sales or space utilization. Depreciation expense is charged to the manufacturing or operating cost center that utilizes the asset, and is then allocated to segments on the same basis as other expenses within that cost center. Reportable segments are defined by product. Segments are responsible for development, manufacturing, marketing and sales of their products. This allows for focused marketing and efficient product development. The segments share common purchasing, certain manufacturing, distribution and administration functions. Segments information follows (in thousands): 2017 2016 2015 Net Sales Industrial $ 691,978 $ 629,581 $ 616,069 Process 294,652 266,630 273,631 Contractor 488,114 433,082 396,785 Total $ 1,474,744 $ 1,329,293 $ 1,286,485 Operating Earnings Industrial $ 237,700 $ 207,183 $ 201,749 Process 52,216 35,750 43,833 Contractor 113,898 91,837 86,447 Unallocated corporate (expense) (43,367 ) (28,871 ) (29,904 ) Impairment — (192,020 ) — Total $ 360,447 $ 113,879 $ 302,125 Assets Industrial $ 572,436 $ 546,366 Process 345,572 318,444 Contractor 255,615 208,016 Unallocated corporate 205,582 170,283 Total $ 1,379,205 $ 1,243,109 Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses and asset impairments. Unallocated corporate (expense) includes such items as stock compensation, divestiture and certain acquisition transaction costs, bad debt expense, charitable contributions, certain portions of pension expense and certain central warehouse expenses. Unallocated assets include cash, allowances and valuation reserves, deferred income taxes, certain capital and other assets. Geographic information follows (in thousands): 2017 2016 2015 Net Sales (based on customer location) United States $ 743,344 $ 685,981 $ 653,534 Other countries 731,400 643,312 632,951 Total $ 1,474,744 $ 1,329,293 $ 1,286,485 Long-lived Assets United States $ 163,416 $ 151,911 Other countries 40,882 37,685 Total $ 204,298 $ 189,596 Sales to Major Customers. Worldwide sales to one customer in the Contractor and Industrial segments individually represented over 10 percent of the Company’s consolidated sales in 2017, 2016 and 2015. |
Inventories
Inventories | 12 Months Ended |
Dec. 29, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major components of inventories were as follows (in thousands): 2017 2016 Finished products and components $ 124,327 $ 113,643 Products and components in various stages of completion 61,274 50,557 Raw materials and purchased components 103,407 84,631 Subtotal 289,008 248,831 Reduction to LIFO cost (49,659 ) (47,222 ) Total $ 239,349 $ 201,609 Inventories valued under the LIFO method were $135.9 million in 2017 and $103.2 million in 2016 . All other inventory was valued on the FIFO method. In 2017, there were no reductions in inventory quantities resulting in liquidation of LIFO inventory quantities carried at lower costs from prior years. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 29, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment were as follows (in thousands): 2017 2016 Land and improvements $ 24,469 $ 23,253 Buildings and improvements 145,009 132,343 Manufacturing equipment 298,719 286,742 Office, warehouse and automotive equipment 41,747 37,940 Additions in progress 18,170 9,364 Total property, plant and equipment 528,114 489,642 Accumulated depreciation (323,816 ) (300,046 ) Net property, plant and equipment $ 204,298 $ 189,596 Depreciation expense was $29.5 million in 2017 , $28.8 million in 2016 and $25.7 million in 2015 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Passage of the 2017 Tax Cuts and Jobs Act (the "Tax Act") required a revaluation of net deferred tax assets that increased the 2017 tax provision by $29.0 million and instituted a transition tax on un-repatriated foreign earnings that increased the tax provision by $6.6 million . Those adjustments increased the effective income tax rate by 10 percentage points . Adjustments recorded in 2017 were prepared on a provisional basis using estimates based on reasonable and supportable assumptions and available inputs and underlying information. The ultimate impact of the Tax Act may differ from those estimates due to continuing analysis or further regulatory guidance that may be issued. Any adjustments to the provisional amounts recorded as of December 29, 2017 that are identified within one year of the Tax Act enactment date will be included as an adjustment to tax expense in the period the amounts are determined. Adoption of a new accounting standard, requiring excess tax benefits related to stock option exercises to be credited to the income tax provision (formerly credited to equity), reduced the 2017 tax provision by $36.3 million , decreasing the effective tax rate by 10 percentage points . No additional income or withholding taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax as these amounts continue to be indefinitely reinvested in foreign operations. As of December 29, 2017 , the amount of cash held outside the U.S. was not significant to the Company’s liquidity and was available to fund investments abroad. Earnings before income tax expense (income) consist of (in thousands): 2017 2016 2015 Domestic $ 269,258 $ 107,440 $ 402,453 Foreign 77,836 (10,785 ) 72,260 Total $ 347,094 $ 96,655 $ 474,713 Income tax expense (income) consists of (in thousands): 2017 2016 2015 Current Federal $ 41,996 $ 67,126 $ 117,883 State and local 3,088 4,868 4,576 Foreign 19,486 18,195 18,115 Current income tax expense 64,570 90,189 140,574 Deferred Domestic 35,782 (27,509 ) (10,175 ) Foreign (5,670 ) (6,699 ) (1,399 ) Deferred income tax expense (benefit) 30,112 (34,208 ) (11,574 ) Total $ 94,682 $ 55,981 $ 129,000 Income taxes paid were $61.0 million in 2017 , $78.6 million in 2016 and $150.5 million in 2015 . A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: 2017 2016 2015 Statutory tax rate 35 % 35 % 35 % Tax effect of international operations (6 ) 4 (3 ) State taxes, net of federal effect 1 1 1 U.S. general business tax credits (1 ) (3 ) (1 ) Domestic production deduction (2 ) (7 ) (2 ) Stock compensation excess tax benefit (10 ) — — Impact of 2017 Tax Cuts and Jobs Act 10 — — Impairment — 28 — Dividends from Liquid Finishing — — (3 ) Effective tax rate 27 % 58 % 27 % Deferred income taxes are provided for temporary differences between the financial reporting and the tax basis of assets and liabilities. The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands): 2017 2016 Inventory valuations $ (1,686 ) $ 9,845 Self-insurance retention accruals 1,264 1,836 Warranty reserves 1,658 2,390 Vacation accruals 1,942 3,343 Bad debt reserves 2,620 3,824 Excess of tax over book depreciation and amortization (30,381 ) (31,849 ) Pension liability 31,220 43,924 Postretirement medical 4,313 6,856 Acquisition costs 680 1,052 Stock compensation 14,185 24,521 Deferred compensation 1,801 1,495 Foreign tax credit carryforward 5,000 — Other 1,047 1,744 Net deferred tax assets $ 33,663 $ 68,981 Total deferred tax assets were $68.8 million and $103.4 million , and total deferred tax liabilities were $35.1 million and $34.5 million on December 29, 2017 and December 30, 2016 . The difference between the deferred income tax provision and the change in net deferred income taxes is due to the change in other comprehensive income (loss) items. The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2011 . The Company records penalties and accrued interest related to uncertain tax positions in income tax expense. Total reserves for uncertain tax positions were not material. |
Debt
Debt | 12 Months Ended |
Dec. 29, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of debt follows (dollars in thousands): Average Interest Rate December 29, 2017 Maturity 2017 2016 Private placement unsecured fixed-rate notes Series A 4.00% March 2018 $ — $ 75,000 Series B 5.01% March 2023 75,000 75,000 Series C 4.88% January 2020 75,000 75,000 Series D 5.35% July 2026 75,000 75,000 Unsecured revolving credit facility 2.56% December 2021 1,035 5,685 Notes payable to banks 0.77% 2018 6,578 8,913 Total debt $ 232,613 $ 314,598 The estimated fair value of the fixed interest rate private placement debt was $245 million on December 29, 2017 and $325 million on December 30, 2016 . The fair value of variable rate borrowings approximates carrying value. The Company uses significant other observable inputs to estimate fair value (level 2 of the fair value hierarchy) based on the present value of future cash flows and rates that would be available for issuance of debt with similar terms and remaining maturities. On December 15, 2016, the Company executed an amendment to its revolving credit agreement, extending the expiration date to December 15, 2021 and decreasing certain interest rates and fees. The amended agreement with a syndicate of lenders provides up to $500 million of committed credit, available for general corporate purposes, working capital needs, share repurchases and acquisitions. The Company may borrow up to $50 million under the swingline portion of the facility for daily working capital needs. Under terms of the amended revolving credit agreement, borrowings may be denominated in U.S. dollars or certain other currencies. Loans denominated in U.S. dollars bear interest, at the Company’s option, at either a base rate or a LIBOR-based rate. Loans denominated in currencies other than U.S. dollars bear interest at a LIBOR-based rate. The base rate is an annual rate equal to a margin ranging from zero percent to 0.75 percent , depending on the Company’s cash flow leverage ratio (debt to earnings before interest, taxes, depreciation, amortization and extraordinary non-operating or non-cash charges and expenses) plus the highest of (i) the bank’s prime rate, (ii) the federal funds rate plus 0.5 percent , or (iii) one-month LIBOR plus 1.5 percent . In general, LIBOR-based loans bear interest at LIBOR plus 1 percent to 1.75 percent , depending on the Company’s cash flow leverage ratio. In addition to paying interest on the outstanding loans, the Company is required to pay a fee on the unused amount of the loan commitments at an annual rate ranging from 0.125 percent to 0.25 percent , depending on the Company’s cash flow leverage ratio. On December 29, 2017 , the Company had $545 million in lines of credit, including the $500 million in committed credit facilities described above and $45 million with foreign banks. The unused portion of committed credit lines was $512 million as of December 29, 2017 . In addition, the Company has unused, uncommitted lines of credit with foreign banks totaling $26 million . Borrowing rates under these credit lines vary with the prime rate, rates on domestic certificates of deposit and the London Interbank market. The Company pays facility fees at an annual rate of up to 0.15 percent on certain of these lines. No compensating balances are required. Various debt agreements require the Company to maintain certain financial ratios as to cash flow leverage and interest coverage. The Company is in compliance with all financial covenants of its debt agreements as of December 29, 2017 . Annual maturities of debt are as follows (in thousands): 2018 2019 2020 2021 2022 Thereafter Maturities of debt $ 6,578 $ — $ 75,000 $ 1,035 $ — $ 150,000 Interest paid on debt was $16.5 million in 2017 , $17.6 million in 2016 and $17.5 million in 2015 . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 29, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity At December 29, 2017 , the Company had 22,549 authorized, but not issued, cumulative preferred shares, $100 par value. The Company also has authorized, but not issued, a separate class of 3 million shares of preferred stock, $1 par value. All stock option, share and per share data reflect the three-for-one common stock split distributed on December 27, 2017. Changes in components of accumulated other comprehensive income (loss), net of tax were (in thousands): Pension and Postretirement Medical Cumulative Translation Adjustment Total Balance, December 26, 2014 $ (76,584 ) $ (24,152 ) $ (100,736 ) Other comprehensive income (loss) before reclassifications 641 (10,423 ) (9,782 ) Amounts reclassified from accumulated other comprehensive income 6,021 — 6,021 Balance, December 25, 2015 (69,922 ) (34,575 ) (104,497 ) Other comprehensive income (loss) before reclassifications (12,169 ) (31,227 ) (43,396 ) Amounts reclassified from accumulated other comprehensive income 5,665 — 5,665 Balance, December 30, 2016 (76,426 ) (65,802 ) (142,228 ) Other comprehensive income (loss) before reclassifications (14,791 ) 16,443 1,652 Amounts reclassified from accumulated other comprehensive income 12,787 — 12,787 Balance, December 29, 2017 $ (78,430 ) $ (49,359 ) $ (127,789 ) Amounts related to pension and postretirement medical adjustments are reclassified to pension cost, which is allocated to cost of products sold and operating expenses generally based on salaries and wages. Included in the 2017 reclassification is $12 million related to a pension settlement loss that was charged to general and administrative expense (see Note J). Amounts allocated, including the pension settlement loss were approximately as follows (in thousands): 2017 2016 2015 Cost of products sold $ 3,165 $ 3,379 $ 3,370 Product development 1,307 1,334 1,352 Selling, marketing and distribution 3,085 3,033 3,109 General and administrative 13,635 1,586 1,543 Total before tax $ 21,192 $ 9,332 $ 9,374 Income tax (benefit) (8,405 ) (3,667 ) (3,353 ) Total after tax $ 12,787 $ 5,665 $ 6,021 |
Share-Based Awards, Purchase Pl
Share-Based Awards, Purchase Plans and Compensation Cost | 12 Months Ended |
Dec. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Awards, Purchase Plans and Compensation Cost | Share-Based Awards, Purchase Plans and Compensation Cost Stock Option and Award Plan. The Company has a stock incentive plan under which it grants stock options and share awards to directors, officers and other employees. Option price is the market price on the date of grant. Options become exercisable at such time, generally over three or four years , and in such installments as set by the Company, and expire ten years from the date of grant. Restricted share awards have been made to certain key employees under the plan. The market value of restricted stock at the date of grant is charged to operations over the vesting period. Compensation cost related to restricted shares is not significant. The Company has a stock appreciation plan that provides for payments of cash to eligible foreign employees based on the change in the market price of the Company’s common stock over a period of time. Compensation cost related to the stock appreciation plan was $4.5 million in 2017 and was not significant in 2016 and 2015. Individual nonemployee directors of the Company may elect to receive, either currently or deferred, all or part of their retainer in the form of shares of the Company’s common stock instead of cash. Under this arrangement, the Company issued 5,975 shares in 2017 , 6,882 shares in 2016 and 5,963 shares in 2015 . The expense related to this arrangement is not significant. Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Shares Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price Outstanding, December 26, 2014 14,925 $ 14.91 9,954 $ 11.62 Granted 1,629 24.73 Exercised (984 ) 12.43 Canceled (75 ) 24.00 Outstanding, December 25, 2015 15,495 16.05 10,749 12.83 Granted 3,483 25.53 Exercised (2,286 ) 13.00 Canceled (87 ) 23.36 Outstanding, December 30, 2016 16,605 18.42 11,016 15.13 Granted 1,725 30.71 Exercised (4,903 ) 12.86 Canceled (137 ) 26.63 Outstanding, December 29, 2017 13,290 $ 21.99 7,729 $ 18.33 The following table summarizes information for options outstanding and exercisable at December 29, 2017 (in thousands, except exercise prices and contractual term amounts): Options Outstanding Options Exercisable Range of Prices Options Outstanding Weighted Average Remaining Contractual Term in Years Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $5 - $15 2,200 2.2 $ 10.52 2,200 $ 10.52 $15 - $20 2,795 4.6 18.14 2,795 18.14 $20 - $25 4,676 7.3 24.43 2,222 24.62 $25 - $30 1,912 8.2 27.07 507 25.51 $30 - $38 1,707 9.2 30.71 5 31.44 $5 - $38 13,290 6.3 $ 21.99 7,729 $ 18.33 The aggregate intrinsic value of exercisable option shares was $211.0 million as of December 29, 2017 , with a weighted average contractual term of 4.7 years . There were approximately 13.3 million vested share options and share options expected to vest as of December 29, 2017 , with an aggregate intrinsic value of $314.2 million , a weighted average exercise price of $21.99 and a weighted average contractual term of 6.3 years . Information related to options exercised follows (in thousands): 2017 2016 2015 Cash received $ 48,833 $ 21,142 $ 7,720 Aggregate intrinsic value 119,442 30,247 11,851 Tax benefit realized 42,000 9,900 3,600 Employee Stock Purchase Plan. Under the Company’s Employee Stock Purchase Plan, the purchase price of the shares is the lesser of 85 percent of the fair market value on the first day or the last day of the plan year. Under this plan, the Company issued 499,956 shares in 2017 , 510,432 shares in 2016 and 497,691 shares in 2015 . Authorized Shares. Shares authorized for issuance under the stock option and purchase plans are shown below (in thousands): Total Shares Authorized Available for Future Stock Incentive Plan (2015) 10,500 5,186 Employee Stock Purchase Plan (2006) 21,000 13,775 Total 31,500 18,961 Amounts available for future issuance exclude outstanding options. Options outstanding as of December 29, 2017 , include options granted under two plans that were replaced by subsequent plans. No shares are available for future grants under those plans. Share-based Compensation. The Company recognized share-based compensation cost as follows (in thousands): 2017 2016 2015 Share-based compensation $ 23,652 $ 21,134 $ 19,224 Tax benefit 5,100 6,100 5,400 Share-based compensation, net of tax $ 18,552 $ 15,034 $ 13,824 As of December 29, 2017 , there was $10.8 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of approximately 2.1 years . The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and results: 2017 2016 2015 Expected life in years 7.0 6.2 6.5 Interest rate 2.2 % 1.6 % 1.7 % Volatility 26.7 % 27.5 % 35.0 % Dividend yield 1.6 % 1.7 % 1.6 % Weighted average fair value per share $ 8.08 $ 5.96 $ 7.73 Expected life is estimated based on vesting terms and exercise and termination history. Interest rate is based on the U.S. Treasury rate on zero-coupon issues with a remaining term equal to the expected life of the option. Expected volatility is based on historical volatility over a period commensurate with the expected life of options. The fair value of employees’ purchase rights under the Employee Stock Purchase Plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results: 2017 2016 2015 Expected life in years 1.0 1.0 1.0 Interest rate 0.9 % 0.7 % 0.2 % Volatility 22.3 % 24.6 % 18.9 % Dividend yield 1.5 % 1.7 % 1.6 % Weighted average fair value per share $ 7.32 $ 6.38 $ 5.50 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 29, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): 2017 2016 2015 Net earnings available to common shareholders $ 252,412 $ 40,674 $ 345,713 Weighted average shares outstanding for basic earnings per share 167,925 166,851 172,829 Dilutive effect of stock options computed based on the treasury stock method using the average market price 6,393 4,025 4,191 Weighted average shares outstanding for diluted earnings per share 174,318 170,876 177,020 Basic earnings per share $ 1.50 $ 0.24 $ 2.00 Diluted earnings per share $ 1.45 $ 0.24 $ 1.95 Stock options to purchase 2.9 million and 4.1 million shares were not included in the 2016 and 2015 computations of diluted earnings per share, respectively, because they would have been anti-dilutive. The number of anti-dilutive options excluded from the 2017 computation of diluted earnings per share was not significant. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 29, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company has a defined contribution plan, under Section 401(k) of the Internal Revenue Code, which provides retirement benefits to most U.S. employees. For all employees who choose to participate, the Company matches employee contributions at a 100 percent rate, up to 3 percent of the employee’s compensation. For employees not covered by a defined benefit plan, the Company contributes an amount equal to 1.5 percent of the employee’s compensation. Employer contributions totaled $7.8 million in 2017 , $6.7 million in 2016 and $6.3 million in 2015 . The Company’s postretirement medical plan provides certain medical benefits for retired U.S. employees. Employees hired before January 1, 2005, are eligible for these benefits upon retirement and fulfillment of other eligibility requirements as specified by the plan. The Company has both funded and unfunded noncontributory defined benefit pension plans that together cover most U.S. employees hired before January 1, 2006, certain directors and some of the employees of the Company’s non-U.S. subsidiaries. The Company restructured its U.S. qualified defined benefit plan in 2017. Under the restructuring, the plan transferred $42 million of liabilities and assets associated with certain plan participants to an insurance company via the purchase of a group annuity contract, and the Company recognized a $12 million settlement loss in 2017 general and administrative expense. Remaining pension plan participants and related liabilities and assets were transferred into one of two newly established, legally separate qualified defined benefit plans, and the former plan was terminated. The benefits offered to the plans’ participants were unchanged. For U.S. plans, benefits are based on years of service and the highest 5 consecutive years’ earnings in the 10 years preceding retirement. The Company funds annually in amounts consistent with minimum funding levels and maximum tax deduction limits. Investment policies and strategies of the U.S. funded pension plans are based on participant demographics of each plan. For the larger of the two plans (the “Blue plan”) covering active participants and retirees with higher benefit amounts, investments are based on a long-term view of economic growth and weighted toward equity securities. The primary goal of the plan’s investments is to ensure that the plan’s liabilities are met over time. In developing strategic asset allocation guidelines, an emphasis is placed on the long-term characteristics of individual asset classes, and the benefits of diversification among multiple asset classes. The plan invests primarily in domestic and international equities, fixed income securities, which include treasuries, highly-rated corporate bonds and high-yield bonds and real estate. Strategic target allocations for Blue plan assets are 54 percent equity securities, 36 percent fixed income securities and 10 percent real estate and alternative investments. For the smaller of the two plans (the “Gray plan”) covering retirees with lower benefit amounts, investments are based on a shorter-term, more conservative outlook. The midpoints of the ranges of strategic target allocations for the Gray plan assets are 38 percent equity securities, 53 percent fixed income securities and 9 percent real estate and alternative investments. Plan assets are held in trusts for the benefit of plan participants and are invested in various commingled funds, most of which are sponsored by the trustee. The fair values for commingled equity, fixed-income and real estate investments are measured using net asset values, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per share market value. Certain trustee-sponsored funds allow redemptions monthly or quarterly, with 10 or 60 days advance notice, while most of the funds allow redemptions daily. The plans had unfunded commitments to make additional investments in certain funds totaling $3 million as of December 29, 2017 and $4 million as of December 30, 2016 . The Company maintains a defined contribution plan covering employees of a Swiss subsidiary, funded by Company and employee contributions. Responsibility for pension coverage under Swiss law has been transferred to a Swiss insurance company. Plan assets are invested in an insurance contract that guarantees a federally mandated annual rate of return. The value of the plan assets is effectively the value of the insurance contract. The performance of the underlying assets held by the insurance company has no direct impact on the surrender value of the insurance contract. The insurance backed assets have no active market and are classified as level 3 in the fair value hierarchy. Assets of all plans by category and fair value measurement level were as follows (in thousands): Level 2017 2016 Cash and cash equivalents 1 $ 3,254 $ 698 Insurance contract 3 26,411 24,287 Investments categorized in fair value hierarchy 29,665 24,985 Equity U.S. Large Cap N/A 55,488 58,236 U.S. Small/Mid Cap N/A 12,077 10,009 International N/A 45,958 40,404 Total Equity 113,523 108,649 Fixed income N/A 81,358 78,209 Real estate and other N/A 29,640 44,062 Investments measured at net asset value 224,521 230,920 Total $ 254,186 $ 255,905 The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands): 2017 2016 Balance, beginning of year $ 24,287 $ 28,080 Purchases 1,934 1,928 Redemptions (2,150 ) (5,267 ) Unrealized gains (losses) 2,340 (454 ) Balance, end of year $ 26,411 $ 24,287 The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 29, 2017 , and December 30, 2016 , and a statement of the funded status as of the same dates (in thousands): Pension Benefits Postretirement Medical Benefits 2017 2016 2017 2016 Change in benefit obligation Obligation, beginning of year $ 386,373 $ 380,672 $ 26,576 $ 23,211 Service cost 7,675 7,834 601 543 Interest cost 15,044 15,684 1,093 1,084 Actuarial loss (gain) 37,994 11,012 577 2,840 Benefit payments (13,299 ) (20,147 ) (1,076 ) (1,102 ) Settlements (43,539 ) (6,817 ) — — Exchange rate changes 3,311 (1,865 ) — — Obligation, end of year $ 393,559 $ 386,373 $ 27,771 $ 26,576 Change in plan assets Fair value, beginning of year $ 255,905 $ 268,258 $ — $ — Actual return on assets 32,132 11,397 — — Employer contributions 21,885 4,117 1,076 1,102 Benefit payments (13,299 ) (20,147 ) (1,076 ) (1,102 ) Settlements (43,539 ) (6,817 ) — — Exchange rate changes 1,102 (903 ) — — Fair value, end of year $ 254,186 $ 255,905 $ — $ — Funded status $ (139,373 ) $ (130,468 ) $ (27,771 ) $ (26,576 ) Amounts recognized in consolidated balance sheets Non-current assets $ 2,538 $ — $ — $ — Current liabilities 1,416 1,030 1,330 1,387 Non-current liabilities 140,495 129,438 26,441 25,189 Net $ 139,373 $ 130,468 $ 27,771 $ 26,576 The accumulated benefit obligation as of year-end for all defined benefit pension plans was $361 million for 2017 and $360 million for 2016 . Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): 2017 2016 Projected benefit obligation $ 344,733 $ 386,373 Accumulated benefit obligation 311,876 359,854 Fair value of plan assets 202,822 255,905 The components of net periodic benefit cost for the plans for 2017 , 2016 and 2015 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2017 2016 2015 2017 2016 2015 Service cost-benefits earned during the period $ 7,675 $ 7,834 $ 8,406 $ 601 $ 543 $ 542 Interest cost on projected benefit obligation 15,044 15,684 14,790 1,093 1,084 954 Expected return on assets (17,186 ) (18,009 ) (19,442 ) — — — Amortization of prior service cost (credit) 255 269 268 (344 ) (766 ) (676 ) Amortization of net loss (gain) 8,634 7,980 9,036 334 285 323 Settlement loss (gain) 12,313 1,565 423 — — — Cost of pension plans which are not significant and have not adopted ASC 715 122 85 79 N/A N/A N/A Net periodic benefit cost $ 26,857 $ 15,408 $ 13,560 $ 1,684 $ 1,146 $ 1,143 Amounts recognized in other comprehensive (income) loss in 2017 and 2016 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2017 2016 2017 2016 Net loss (gain) arising during the period $ 23,936 $ 17,208 $ 577 $ 2,840 Amortization of net gain (loss) (8,634 ) (7,980 ) (334 ) (285 ) Settlement gain (loss) (12,313 ) (1,565 ) — — Amortization of prior service credit (cost) (255 ) (269 ) 344 766 Total $ 2,734 $ 7,394 $ 587 $ 3,321 Amounts included in accumulated other comprehensive (income) loss as of December 29, 2017 and December 30, 2016 , that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2017 2016 2017 2016 Prior service cost (credit) $ 1,746 $ 1,920 $ — $ (344 ) Net loss 111,598 108,689 6,836 6,593 Net before income taxes 113,344 110,609 6,836 6,249 Income taxes (39,289 ) (38,182 ) (2,461 ) (2,250 ) Net $ 74,055 $ 72,427 $ 4,375 $ 3,999 Amounts included in accumulated other comprehensive (income) loss that are expected to be recognized as components of net periodic benefit cost in 2018 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits Prior service cost (credit) $ 277 $ — Net loss (gain) 7,797 543 Net before income taxes 8,074 543 Income taxes (1,776 ) (119 ) Net $ 6,298 $ 424 Assumptions used to determine the Company’s benefit obligations are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2017 2016 2017 2016 U.S. Plans Discount rate 3.9 % 4.5 % 3.9 % 4.5 % Rate of compensation increase 2.8 % 2.8 % N/A N/A Non-U.S. Plans Discount rate 1.0 % 0.9 % N/A N/A Rate of compensation increase 0.9 % 1.0 % N/A N/A Assumptions used to determine the Company’s net periodic benefit cost are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2017 2016 2015 2017 2016 2015 U.S. Plans Discount rate 4.5 % 4.7 % 4.2 % 4.5 % 4.7 % 4.2 % Rate of compensation increase 2.8 % 3.0 % 3.0 % N/A N/A N/A Expected return on assets 7.0 % 7.5 % 7.8 % N/A N/A N/A Non-U.S. Plans Discount rate 0.9 % 1.1 % 1.4 % N/A N/A N/A Rate of compensation increase 1.0 % 1.3 % 1.3 % N/A N/A N/A Expected return on assets 2.0 % 2.0 % 2.0 % N/A N/A N/A Several sources of information are considered in determining the expected rate of return assumption, including the allocation of plan assets, the input of actuaries and professional investment advisors, and historical long-term returns. In setting the return assumption, the Company recognizes that historical returns are not always indicative of future returns and also considers the long-term nature of its pension obligations. The Company’s U.S. retirement medical plan limits the annual cost increase that will be paid by the Company to 3 percent . In measuring the accumulated postretirement benefit obligation (APBO), the annual trend rate for health care costs was assumed to be 6.5 percent for 2018 , decreasing each year to a constant rate of 4.5 percent for 2038 and thereafter, subject to the plan’s annual increase limitation. At December 29, 2017 , a one percent change in assumed health care cost trend rates would no t have a significant impact on the service and interest cost components of net periodic postretirement health care benefit cost or the APBO for health care benefits. The Company expects to contribute $1.4 million to its unfunded pension plans and $1.3 million to the postretirement medical plan in 2018 . The Company will not be required to make contributions to the funded pension plans under minimum funding requirements for 2018 . Estimated future benefit payments are as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2018 $ 13,385 $ 1,330 2019 13,977 1,434 2020 15,584 1,561 2021 16,576 1,635 2022 17,881 1,712 Years 2023-2027 101,558 8,971 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments . Aggregate annual rental commitments under operating leases with noncancelable terms of more than one year were as follows at December 29, 2017 (in thousands): Buildings Vehicles & Equipment Total 2018 $ 4,911 $ 3,368 $ 8,279 2019 3,659 2,078 5,737 2020 3,113 1,364 4,477 2021 1,923 828 2,751 2022 1,524 646 2,170 Thereafter 4,170 609 4,779 Total $ 19,300 $ 8,893 $ 28,193 Total rental expense was $7.6 million in 2017 , $7.8 million in 2016 and $6.9 million in 2015 . Other Commitments. The Company is committed to pay suppliers under the terms of open purchase orders issued in the normal course of business totaling approximately $97 million at December 29, 2017 . The Company also has commitments with certain suppliers to purchase minimum quantities, and under the terms of certain agreements, the Company is committed for certain portions of the supplier’s inventory. The Company does not purchase, or commit to purchase, quantities in excess of normal usage or amounts that cannot be used within one year. The Company estimates that the maximum commitment amount under such agreements does not exceed $33 million . The Company enters into contracts with vendors to receive services. Commitments under these service contracts with noncancelable terms of more than one year include $3 million in 2018 and $3 million in 2019 . In addition, the Company could be obligated to perform under standby letters of credit totaling $2 million at December 29, 2017 . The Company has also guaranteed the debt of its subsidiaries for up to $10 million . All debt of subsidiaries is reflected in the consolidated balance sheets. Contingencies. The Company is party to various legal proceedings arising in the normal course of business. The Company is actively pursuing and defending these matters and has recorded an estimate of the probable costs where appropriate. Management does not expect that resolution of these matters will have a material adverse effect on the Company, although the ultimate outcome cannot be determined based on available information. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 29, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions In January 2016, the Company paid $48 million cash to acquire two related companies that manufacture and sell portable and fixed gas analyzers for landfill, biogas and medical applications and landfill gas wellhead equipment. The acquisitions enhance and complement the Company’s position in environmental monitoring and remediation markets served by its Process segment. The purchase price was allocated based on estimated fair values, including $28 million of goodwill, $24 million of other identifiable intangible assets and $4 million of other net liabilities. On January 20, 2015, the Company completed the acquisition of High Pressure Equipment Holdings, LLC (“HiP”) for $161 million cash. HiP designs and manufactures valves, fittings and other flow control equipment engineered to perform in ultra-high pressure environments. HiP’s products and business relationships enhance Graco’s position in the oil and natural gas industry and complement Graco’s core competencies of designing and manufacturing advanced flow control technologies. HiP had sales of $38 million in 2014. Results of HiP operations have been included in the Company’s Process segment from the date of acquisition, including sales of $22 million in 2017, $22 million in 2016 and $29 million in 2015. Purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands): Cash and cash equivalents $ 1,904 Accounts receivable 4,714 Inventories 7,605 Other current assets 69 Property, plant and equipment 1,962 Deferred income taxes 1,840 Identifiable intangible assets 60,100 Goodwill 86,149 Total assets acquired 164,343 Liabilities assumed (3,414 ) Net assets acquired $ 160,929 Acquired identifiable intangible assets and estimated useful life were as follows (dollars in thousands): Estimated Life (years) Customer relationships $ 47,100 12 Trade names 13,000 Indefinite Total identifiable intangible assets $ 60,100 Approximately two-thirds of the goodwill acquired with HiP is deductible for tax purposes. On January 2, 2015, the Company acquired White Knight Fluid Handling (“White Knight”) for $16 million cash and a commitment for additional consideration if future revenues exceed certain thresholds, initially valued at $8 million . The maximum payout is not limited. White Knight designs and manufactures high purity, metal-free pumps used in the production process of manufacturing semiconductors, solar panels, LED flat panel displays and various other electronics. The products, brands and distribution channels of White Knight expand and complement the offerings of the Company’s Process segment. The purchase price was allocated based on estimated fair values, including $12 million of goodwill, $9 million of other identifiable intangible assets and $3 million of net tangible assets. The Company completed other business acquisitions in 2017 , 2016 and 2015 that were not material to the consolidated financial statements. |
Divestiture
Divestiture | 12 Months Ended |
Dec. 29, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Divestiture In 2012, the Company purchased the finishing businesses of Illinois Tool Works Inc. The acquisition included finishing equipment operations, technologies and brands of the Powder Finishing and Liquid Finishing businesses. Under terms of a hold separate order from the Federal Trade Commission, the Company did not have the power to direct the activities of the Liquid Finishing businesses that most significantly impacted the economic performance of those businesses. Consequently, we reflected our investment in the Liquid Finishing businesses as a cost-method investment on our balance sheet, and their results of operations were not consolidated with those of the Company. In 2015, the Company sold the Liquid Finishing business assets for a price of $610 million cash. Held separate investment income included the pre-tax gain on sale of $150 million , net of transaction and other related expenses, including a $7 million contribution to the Company’s charitable foundation. Held separate investment income also included dividends of $42 million . Net earnings included after-tax gain and dividends totaling $141 million . |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | . Quarterly Financial Information (Unaudited) Unaudited quarterly financial data is summarized below (in thousands, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2017 Net Sales $ 340,590 $ 379,483 $ 379,812 $ 374,859 Gross Profit 185,273 203,941 203,465 200,370 Net Earnings 60,732 79,828 75,460 36,392 (1) Basic Net Earnings per Common Share $ 0.36 $ 0.48 $ 0.45 $ 0.22 (1) Diluted Net Earnings per Common Share 0.35 0.46 0.43 0.21 (1) Cash Dividends Declared per Common Share 0.12 0.12 0.12 0.13 2016 Net Sales $ 304,912 $ 348,126 $ 327,192 $ 349,063 Gross Profit 161,796 185,141 176,598 184,704 Net Earnings (Loss) 39,552 50,947 54,388 (104,213 ) (2) Basic Net Earnings (Loss) per Common Share $ 0.24 $ 0.31 $ 0.33 $ (0.62 ) (2) Diluted Net Earnings (Loss) per Common Share 0.23 0.30 0.32 (0.61 ) (2) Cash Dividends Declared per Common Share 0.11 0.11 0.11 0.12 (1) Net earnings in the fourth quarter of 2017 included income tax charges totaling $36 million to recognize the effects of U.S. federal income tax reform. (2) Net earnings (loss) in the fourth quarter of 2016 included $161 million of after tax loss from non-cash impairment charges in the Company’s ONG reporting unit within the Process Segment. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 29, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts Graco Inc. and Subsidiaries (in thousands) Allowance for Doubtful Accounts Allowance for Returns and Credits Total Balance, December 26, 2014 $ 2,400 $ 5,700 $ 8,100 Additions charged to costs and expenses 1,500 24,600 26,100 Deductions from reserves (1) (900 ) (23,000 ) (23,900 ) Other additions (deductions) (2) — 100 100 Balance, December 25, 2015 3,000 7,400 10,400 Additions charged to costs and expenses 1,200 27,800 29,000 Deductions from reserves (1) (100 ) (26,400 ) (26,500 ) Other additions (deductions) (2) (200 ) — (200 ) Balance, December 30, 2016 3,900 8,800 12,700 Additions charged to costs and expenses 1,600 30,600 32,200 Deductions from reserves (1) (1,700 ) (29,500 ) (31,200 ) Other additions (deductions) (2) 200 100 300 Balance, December 29, 2017 $ 4,000 $ 10,000 $ 14,000 (1) For doubtful accounts, represents amounts determined to be uncollectible and charged against reserve, net of collections on accounts previously charged against reserves. For returns and credits, represents amounts of credits issued and returns processed. (2) Includes amounts assumed or established in connection with acquisitions and effects of foreign currency translation. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2017 | |
Accounting Policies [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Presentation of Pension Cost In March 2017, the FASB issued a final standard that changes the presentation of net periodic benefit cost related to defined benefit plans. The Company will adopt the standard when it becomes effective in fiscal 2018 and it will be applied retrospectively to all periods presented. Under the new standard, net periodic benefit costs are required to be disaggregated between service costs presented as operating expenses and other components of pension costs presented as non-operating expenses. The Company currently charges service costs to segment operations and includes other components of pension cost in unallocated corporate operating expenses. Under the new standard, unallocated corporate operating expenses will decrease, operating earnings will increase and other expense will increase by the amount of other (non-service) components of pension cost. There will be no impact on reported segment earnings, net earnings or earnings per share. Leases In February 2016, the FASB issued a final standard on accounting for leases. The new standard is effective for the Company in fiscal 2019 and requires most leases to be recorded on the balance sheet. The Company is evaluating the effect of the new standard on its consolidated financial statements and related disclosures and accounting systems. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | A new accounting standard that changed certain aspects of accounting for share-based payments became effective for the Company in the first quarter of 2017. Excess tax benefits on exercised stock options that were previously credited to equity now reduce the current income tax provision. The change in accounting for excess tax benefits decreased the current income tax provision and increased net earnings for the year by $36.3 million , reduced the effective income tax rate by 10 percentage points and increased diluted earnings per share by $0.21 . Under the new standard, excess tax benefits are no longer reclassified out of cash flows from operating activities to financing activities in the Consolidated Statements of Cash Flows. We elected to apply the cash flow presentation requirements retrospectively to all periods presented, which resulted in an increase in previously reported net cash provided by operating activities and a decrease in net cash provided by financing activities of $6.9 million for the year ended December 30, 2016 and $1.8 million for the year ended December 25, 2015 . Also under the new standard, the Company elected to account for share-based grant forfeitures as they occur. The impact of the change in accounting for forfeitures was no t significant, and was reflected in share-based compensation cost in the first quarter of 2017. Revenue R |
Fiscal Year | The fiscal year of Graco Inc. and Subsidiaries (the “Company”) is 52 or 53 weeks, ending on the last Friday in December. The years ended December 29, 2017 and December 25, 2015 were 52-week years. The year ended December 30, 2016 was a 53-week year. |
Basis of Statement Presentation | The consolidated financial statements include the accounts of the parent company and its subsidiaries after elimination of intercompany balances and transactions. As of December 29, 2017 , all subsidiaries are 100 percent controlled by the Company. All share and per share data have been adjusted to reflect the three-for-one stock split distributed on December 27, 2017. Certain other prior year disclosures have been revised to conform with current year reporting. As more fully described in Note M (Divestiture), in 2015, the Company sold the Liquid Finishing business assets acquired in 2012 that were held as a cost-method investment. Investment income in the Company’s consolidated statements of earnings includes the pre-tax gain on the sale, net of transaction and other related expenses, along with dividend income received prior to the sale from after-tax earnings of Liquid Finishing. |
Foreign Currency Translation | The functional currency of certain subsidiaries is the local currency. Accordingly, adjustments resulting from the translation of those subsidiaries’ financial statements into U.S. dollars are charged or credited to accumulated other comprehensive income (loss). The U.S. dollar is the functional currency for all other foreign subsidiaries. Accordingly, gains and losses from the translation of foreign currency balances and transactions of those subsidiaries are included in other expense (income), net. |
Accounting Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Measurements | Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds. The Company’s policy and accounting for forward exchange contracts are described below, in Derivative Instruments and Hedging Activities. Contingent consideration liability represents the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of an acquired business based on its future revenues (see Note L, Acquisitions). Disclosures related to other fair value measurements are included below in Impairment of Long-Lived Assets, in Note F (Debt) and in Note J (Retirement Benefits). The three levels of inputs in the fair value measurement hierarchy are as follows: Level 1 – based on quoted prices in active markets for identical assets Level 2 – based on significant observable inputs Level 3 – based on significant unobservable inputs |
Cash Equivalents | All highly liquid investments with a maturity of three months or less at the date of purchase are considered to be cash equivalents. |
Inventory Valuation | Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) cost method is used for valuing most U.S. inventories. Inventories of foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method. |
Property, Plant and Equipment | For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years |
Goodwill and Other Intangible Assets | Goodwill has been assigned to reporting units. |
Capitalized Software | Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. |
Impairment or Long-Lived Assets | The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment annually in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Self-Insurance | The Company is self-insured for certain losses and costs relating to product liability, workers’ compensation, employee medical benefit claims and representations and warranties associated with the Liquid Finishing business divestiture. The Company has stop-loss coverage in order to limit its exposure to significant claims. Accrued self-insurance retentions are based on claims filed, estimates of claims incurred but not reported, and other actuarial assumptions. |
Product Warranties | A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors including evaluating specific product warranty issues. |
Revenue Recognition | Sales are recognized when revenue is realized or realizable and has been earned. The Company’s policy is to recognize revenue when risk and title passes to the customer. This is generally on the date of shipment, however certain sales have terms requiring recognition when received by the customer. In cases where there are specific customer acceptance provisions, revenue is recognized at the later of customer acceptance or shipment (subject to shipping terms). Payment terms are established based on the type of product, distributor capabilities and competitive market conditions. Rights of return are typically contractually limited, amounts are estimable, and the Company records provisions for anticipated returns and warranty claims at the time revenue is recognized. Historically, sales returns have been less than 3 percent of sales. Provisions for sales returns are recorded as a reduction of net sales, and provisions for warranty claims are recorded in selling, marketing and distribution expenses. From time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. In such cases, provisions for estimated returns are recorded as a reduction of net sales. Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include cooperative advertising arrangements, rebates based on annual purchases and sales growth, coupons and reimbursement for competitive products. Payment of incentives may take the form of cash, trade credit, promotional merchandise or free product. Under cooperative advertising arrangements, the Company reimburses the distributor for a portion of its advertising costs related to the Company’s products; estimated costs are accrued at the time of sale and classified as selling, marketing and distribution expense. Rebates are accrued based on the program rates and progress toward the estimated annual sales amount and sales growth, and are recorded as a reduction of sales (cash, trade credit) or cost of products sold (free goods). The estimated costs related to coupon programs are accrued at the time of sale and classified as selling, marketing and distribution expense or cost of products sold, depending on the type of incentive offered. |
Shipping and Handling | Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold in the accompanying Consolidated Statements of Earnings. Amounts billed to customers for shipping and handling are included in net sales. |
Earnings Per Common Share | Basic net earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the year. Diluted net earnings per share is computed after giving effect to the exercise of all dilutive outstanding option grants. |
Comprehensive Income | Comprehensive income is a measure of all changes in shareholders’ equity except those resulting from investments by and distributions to owners, and includes such items as net earnings, certain foreign currency translation items, changes in the value of qualifying hedges and pension liability adjustments. |
Derivative Instruments and Hedging Activities | The Company accounts for all derivatives, including those embedded in other contracts, as either assets or liabilities and measures those financial instruments at fair value. The accounting for changes in the fair value of derivatives depends on their intended use and designation. As part of its risk management program, the Company may periodically use forward exchange contracts to manage known market exposures. Terms of derivative instruments are structured to match the terms of the risk being managed and are generally held to maturity. The Company does not hold or issue derivative financial instruments for trading purposes. All other contracts that contain provisions meeting the definition of a derivative also meet the requirements of, and have been designated as, normal purchases or sales. The Company’s policy is to not enter into contracts with terms that cannot be designated as normal purchases or sales. The Company periodically evaluates its monetary asset and liability positions denominated in foreign currencies. The Company enters into forward contracts or options, or borrows in various currencies, in order to hedge its net monetary positions. These instruments are recorded at fair value and the gains and losses are included in other expense, net. The notional amounts of contracts outstanding as of December 29, 2017 , totaled $34 million . The Company believes it uses strong financial counterparties in these transactions and that the resulting credit risk under these hedging strategies is not significant. The Company uses significant other observable inputs (level 2 in the fair value hierarchy) to value the derivative instruments used to hedge net monetary positions, including reference to market prices and financial models that incorporate relevant market assumptions. Net derivative assets are reported on the balance sheet in accounts receivable and net derivative liabilities are reported as other current liabilities. |
Recent Accounting Pronouncements | A new accounting standard that changed certain aspects of accounting for share-based payments became effective for the Company in the first quarter of 2017. Excess tax benefits on exercised stock options that were previously credited to equity now reduce the current income tax provision. The change in accounting for excess tax benefits decreased the current income tax provision and increased net earnings for the year by $36.3 million , reduced the effective income tax rate by 10 percentage points and increased diluted earnings per share by $0.21 . Under the new standard, excess tax benefits are no longer reclassified out of cash flows from operating activities to financing activities in the Consolidated Statements of Cash Flows. We elected to apply the cash flow presentation requirements retrospectively to all periods presented, which resulted in an increase in previously reported net cash provided by operating activities and a decrease in net cash provided by financing activities of $6.9 million for the year ended December 30, 2016 and $1.8 million for the year ended December 25, 2015 . Also under the new standard, the Company elected to account for share-based grant forfeitures as they occur. The impact of the change in accounting for forfeitures was no t significant, and was reflected in share-based compensation cost in the first quarter of 2017. Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued a final standard on revenue from contracts with customers, contained in Accounting Standards Codification Topic 606 (“ASC 606”). The new standard sets forth a single comprehensive model for recognizing and reporting revenue. ASC 606 will become effective for the Company beginning with the first quarter of 2018, and the Company plans to adopt the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. Because the new standard impacted our business processes, systems and controls, we developed a comprehensive change management project plan to guide the implementation. This project plan included analyzing the standard’s impact on our revenue streams and associated contracts, comparing our historical accounting policies and practices to the requirements of the new standard, and identifying differences from applying the requirements of the new standard to our contracts. We developed internal controls to ensure that we adequately evaluated our portfolio of contracts under the five-step model to ensure proper assessment of our operating results under ASC 606. We reported on the progress of the implementation to the Audit Committee and the Board of Directors on a regular basis during the project’s duration. For most of our contracts, we will record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We have made the necessary changes to our business processes, policies, systems and controls to support recognition and disclosure under the new standard. Further, we will include incremental disaggregated revenue and other disclosures as required in our consolidated financial statements. Based on the results of the evaluation, nothing has come to our attention that would indicate that adoption of the new standard will have a material impact on our consolidated financial statements. Application of the transition requirements of the new standard will not have a material impact on opening retained earnings. Presentation of Pension Cost In March 2017, the FASB issued a final standard that changes the presentation of net periodic benefit cost related to defined benefit plans. The Company will adopt the standard when it becomes effective in fiscal 2018 and it will be applied retrospectively to all periods presented. Under the new standard, net periodic benefit costs are required to be disaggregated between service costs presented as operating expenses and other components of pension costs presented as non-operating expenses. The Company currently charges service costs to segment operations and includes other components of pension cost in unallocated corporate operating expenses. Under the new standard, unallocated corporate operating expenses will decrease, operating earnings will increase and other expense will increase by the amount of other (non-service) components of pension cost. There will be no impact on reported segment earnings, net earnings or earnings per share. Leases In February 2016, the FASB issued a final standard on accounting for leases. The new standard is effective for the Company in fiscal 2019 and requires most leases to be recorded on the balance sheet. The Company is evaluating the effect of the new standard on its consolidated financial statements and related disclosures and accounting systems. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Accounting Policies [Abstract] | |
Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level 2017 2016 Assets Cash surrender value of life insurance 2 $ 16,128 $ 13,785 Forward exchange contracts 2 — 571 Total assets at fair value $ 16,128 $ 14,356 Liabilities Contingent consideration 3 $ 4,081 $ 4,081 Deferred compensation 2 3,836 3,265 Forward exchange contracts 2 517 — Total liabilities at fair value $ 8,434 $ 7,346 |
Other Current Assets | Amounts included in other current assets were (in thousands): 2017 2016 Prepaid income taxes $ 8,934 $ 10,723 Restricted cash 9,242 9,230 Prepaid expenses and other 14,318 11,070 Total $ 32,494 $ 31,023 |
Property, Plant and Equipment | For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years |
Goodwill by Reporting Segment | Changes in the carrying amounts of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, December 25, 2015 $ 153,283 $ 228,473 $ 12,732 $ 394,488 Additions from business acquisitions — 28,130 — 28,130 Impairment — (146,669 ) — (146,669 ) Foreign currency translation (2,727 ) (13,373 ) — (16,100 ) Balance, December 30, 2016 150,556 96,561 12,732 259,849 Additions (adjustments) from business acquisitions 7,152 (62 ) 6,413 13,503 Foreign currency translation 3,965 1,472 — 5,437 Balance, December 29, 2017 $ 161,673 $ 97,971 $ 19,145 $ 278,789 |
Intangible Assets | Components of other intangible assets were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of December 29, 2017 Cost $ 179,826 $ 18,479 $ 1,071 $ 59,553 $ 258,929 Accumulated amortization (54,076 ) (7,795 ) (542 ) — (62,413 ) Foreign currency translation (9,186 ) (727 ) (61 ) (3,486 ) (13,460 ) Book value $ 116,564 $ 9,957 $ 468 $ 56,067 $ 183,056 Weighted average life in years 13 10 4 N/A As of December 30, 2016 Cost $ 170,284 $ 17,321 $ 895 $ 57,853 $ 246,353 Accumulated amortization (41,599 ) (6,088 ) (337 ) — (48,024 ) Foreign currency translation (13,630 ) (1,055 ) (59 ) (5,249 ) (19,993 ) Book value $ 115,055 $ 10,178 $ 499 $ 52,604 $ 178,336 Weighted average life in years 13 10 4 N/A |
Future Amortization Expense | Estimated future annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2018 2019 2020 2021 2022 Thereafter Estimated Amortization Expense $ 15,418 $ 15,089 $ 14,910 $ 14,740 $ 14,740 $ 52,092 |
Components of Other Assets | Components of other assets were (in thousands): 2017 2016 Cash surrender value of life insurance $ 16,128 $ 13,785 Capitalized software 1,784 1,812 Equity method investment 6,755 6,366 Prepaid pension 2,538 — Deposits and other 3,015 3,350 Total $ 30,220 $ 25,313 |
Components of Other Current Liabilities | Components of other current liabilities were (in thousands): 2017 2016 Accrued self-insurance retentions $ 7,956 $ 7,105 Accrued warranty and service liabilities 10,535 8,934 Accrued trade promotions 10,588 6,007 Payable for employee stock purchases 10,053 9,328 Customer advances and deferred revenue 22,632 9,400 Income taxes payable 7,564 8,608 Other 31,628 22,505 Total $ 100,956 $ 71,887 |
Accrued Warranty Liability Activity | Following is a summary of activity in accrued warranty and service liabilities (in thousands): 2017 2016 Balance, beginning of year $ 8,934 $ 7,870 Charged to expense 7,930 7,516 Margin on parts sales reversed 2,826 1,796 Reductions for claims settled (9,155 ) (8,248 ) Balance, end of year $ 10,535 $ 8,934 |
Fair Market Value and Classification of Derivative Instruments | Net derivative assets are reported on the balance sheet in accounts receivable and net derivative liabilities are reported as other current liabilities. The fair market value of such instruments follows (in thousands): 2017 2016 Foreign Currency Contracts Assets $ — $ 621 Liabilities (517 ) (50 ) Net Assets (Liabilities) $ (517 ) $ 571 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Information - Operations and Assets | Segments information follows (in thousands): 2017 2016 2015 Net Sales Industrial $ 691,978 $ 629,581 $ 616,069 Process 294,652 266,630 273,631 Contractor 488,114 433,082 396,785 Total $ 1,474,744 $ 1,329,293 $ 1,286,485 Operating Earnings Industrial $ 237,700 $ 207,183 $ 201,749 Process 52,216 35,750 43,833 Contractor 113,898 91,837 86,447 Unallocated corporate (expense) (43,367 ) (28,871 ) (29,904 ) Impairment — (192,020 ) — Total $ 360,447 $ 113,879 $ 302,125 Assets Industrial $ 572,436 $ 546,366 Process 345,572 318,444 Contractor 255,615 208,016 Unallocated corporate 205,582 170,283 Total $ 1,379,205 $ 1,243,109 |
Segment Reporting Information - Geographic | Geographic information follows (in thousands): 2017 2016 2015 Net Sales (based on customer location) United States $ 743,344 $ 685,981 $ 653,534 Other countries 731,400 643,312 632,951 Total $ 1,474,744 $ 1,329,293 $ 1,286,485 Long-lived Assets United States $ 163,416 $ 151,911 Other countries 40,882 37,685 Total $ 204,298 $ 189,596 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Inventory, Net [Abstract] | |
Components of Inventories | Major components of inventories were as follows (in thousands): 2017 2016 Finished products and components $ 124,327 $ 113,643 Products and components in various stages of completion 61,274 50,557 Raw materials and purchased components 103,407 84,631 Subtotal 289,008 248,831 Reduction to LIFO cost (49,659 ) (47,222 ) Total $ 239,349 $ 201,609 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment were as follows (in thousands): 2017 2016 Land and improvements $ 24,469 $ 23,253 Buildings and improvements 145,009 132,343 Manufacturing equipment 298,719 286,742 Office, warehouse and automotive equipment 41,747 37,940 Additions in progress 18,170 9,364 Total property, plant and equipment 528,114 489,642 Accumulated depreciation (323,816 ) (300,046 ) Net property, plant and equipment $ 204,298 $ 189,596 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Tax Expense | Earnings before income tax expense (income) consist of (in thousands): 2017 2016 2015 Domestic $ 269,258 $ 107,440 $ 402,453 Foreign 77,836 (10,785 ) 72,260 Total $ 347,094 $ 96,655 $ 474,713 |
Components of Income Tax Expense | Income tax expense (income) consists of (in thousands): 2017 2016 2015 Current Federal $ 41,996 $ 67,126 $ 117,883 State and local 3,088 4,868 4,576 Foreign 19,486 18,195 18,115 Current income tax expense 64,570 90,189 140,574 Deferred Domestic 35,782 (27,509 ) (10,175 ) Foreign (5,670 ) (6,699 ) (1,399 ) Deferred income tax expense (benefit) 30,112 (34,208 ) (11,574 ) Total $ 94,682 $ 55,981 $ 129,000 |
Federal Tax Rate Reconciliation | A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: 2017 2016 2015 Statutory tax rate 35 % 35 % 35 % Tax effect of international operations (6 ) 4 (3 ) State taxes, net of federal effect 1 1 1 U.S. general business tax credits (1 ) (3 ) (1 ) Domestic production deduction (2 ) (7 ) (2 ) Stock compensation excess tax benefit (10 ) — — Impact of 2017 Tax Cuts and Jobs Act 10 — — Impairment — 28 — Dividends from Liquid Finishing — — (3 ) Effective tax rate 27 % 58 % 27 % |
Deferred Income Taxes | The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands): 2017 2016 Inventory valuations $ (1,686 ) $ 9,845 Self-insurance retention accruals 1,264 1,836 Warranty reserves 1,658 2,390 Vacation accruals 1,942 3,343 Bad debt reserves 2,620 3,824 Excess of tax over book depreciation and amortization (30,381 ) (31,849 ) Pension liability 31,220 43,924 Postretirement medical 4,313 6,856 Acquisition costs 680 1,052 Stock compensation 14,185 24,521 Deferred compensation 1,801 1,495 Foreign tax credit carryforward 5,000 — Other 1,047 1,744 Net deferred tax assets $ 33,663 $ 68,981 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of debt follows (dollars in thousands): Average Interest Rate December 29, 2017 Maturity 2017 2016 Private placement unsecured fixed-rate notes Series A 4.00% March 2018 $ — $ 75,000 Series B 5.01% March 2023 75,000 75,000 Series C 4.88% January 2020 75,000 75,000 Series D 5.35% July 2026 75,000 75,000 Unsecured revolving credit facility 2.56% December 2021 1,035 5,685 Notes payable to banks 0.77% 2018 6,578 8,913 Total debt $ 232,613 $ 314,598 |
Annual Maturities of Debt | Annual maturities of debt are as follows (in thousands): 2018 2019 2020 2021 2022 Thereafter Maturities of debt $ 6,578 $ — $ 75,000 $ 1,035 $ — $ 150,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Components of Accumulated Other Comprehensive Income (Loss) | Changes in components of accumulated other comprehensive income (loss), net of tax were (in thousands): Pension and Postretirement Medical Cumulative Translation Adjustment Total Balance, December 26, 2014 $ (76,584 ) $ (24,152 ) $ (100,736 ) Other comprehensive income (loss) before reclassifications 641 (10,423 ) (9,782 ) Amounts reclassified from accumulated other comprehensive income 6,021 — 6,021 Balance, December 25, 2015 (69,922 ) (34,575 ) (104,497 ) Other comprehensive income (loss) before reclassifications (12,169 ) (31,227 ) (43,396 ) Amounts reclassified from accumulated other comprehensive income 5,665 — 5,665 Balance, December 30, 2016 (76,426 ) (65,802 ) (142,228 ) Other comprehensive income (loss) before reclassifications (14,791 ) 16,443 1,652 Amounts reclassified from accumulated other comprehensive income 12,787 — 12,787 Balance, December 29, 2017 $ (78,430 ) $ (49,359 ) $ (127,789 ) |
Amounts Related to Pension and Postretirement Medical Adjustments | Amounts related to pension and postretirement medical adjustments are reclassified to pension cost, which is allocated to cost of products sold and operating expenses generally based on salaries and wages. Included in the 2017 reclassification is $12 million related to a pension settlement loss that was charged to general and administrative expense (see Note J). Amounts allocated, including the pension settlement loss were approximately as follows (in thousands): 2017 2016 2015 Cost of products sold $ 3,165 $ 3,379 $ 3,370 Product development 1,307 1,334 1,352 Selling, marketing and distribution 3,085 3,033 3,109 General and administrative 13,635 1,586 1,543 Total before tax $ 21,192 $ 9,332 $ 9,374 Income tax (benefit) (8,405 ) (3,667 ) (3,353 ) Total after tax $ 12,787 $ 5,665 $ 6,021 |
Share-Based Awards, Purchase 31
Share-Based Awards, Purchase Plans and Compensation Cost (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options on Common Shares Granted and Outstanding | Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Shares Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price Outstanding, December 26, 2014 14,925 $ 14.91 9,954 $ 11.62 Granted 1,629 24.73 Exercised (984 ) 12.43 Canceled (75 ) 24.00 Outstanding, December 25, 2015 15,495 16.05 10,749 12.83 Granted 3,483 25.53 Exercised (2,286 ) 13.00 Canceled (87 ) 23.36 Outstanding, December 30, 2016 16,605 18.42 11,016 15.13 Granted 1,725 30.71 Exercised (4,903 ) 12.86 Canceled (137 ) 26.63 Outstanding, December 29, 2017 13,290 $ 21.99 7,729 $ 18.33 |
Options Outstanding and Exercisable | The following table summarizes information for options outstanding and exercisable at December 29, 2017 (in thousands, except exercise prices and contractual term amounts): Options Outstanding Options Exercisable Range of Prices Options Outstanding Weighted Average Remaining Contractual Term in Years Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $5 - $15 2,200 2.2 $ 10.52 2,200 $ 10.52 $15 - $20 2,795 4.6 18.14 2,795 18.14 $20 - $25 4,676 7.3 24.43 2,222 24.62 $25 - $30 1,912 8.2 27.07 507 25.51 $30 - $38 1,707 9.2 30.71 5 31.44 $5 - $38 13,290 6.3 $ 21.99 7,729 $ 18.33 |
Cash Proceeds Received and Tax Benefit from Share-based Payment Awards [Table Text Block] | Information related to options exercised follows (in thousands): 2017 2016 2015 Cash received $ 48,833 $ 21,142 $ 7,720 Aggregate intrinsic value 119,442 30,247 11,851 Tax benefit realized 42,000 9,900 3,600 |
Share Based Payment Award Stock Options Authorized | Shares authorized for issuance under the stock option and purchase plans are shown below (in thousands): Total Shares Authorized Available for Future Stock Incentive Plan (2015) 10,500 5,186 Employee Stock Purchase Plan (2006) 21,000 13,775 Total 31,500 18,961 |
Share-based compensation cost | The Company recognized share-based compensation cost as follows (in thousands): 2017 2016 2015 Share-based compensation $ 23,652 $ 21,134 $ 19,224 Tax benefit 5,100 6,100 5,400 Share-based compensation, net of tax $ 18,552 $ 15,034 $ 13,824 |
Options - Valuation Assumptions | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and results: 2017 2016 2015 Expected life in years 7.0 6.2 6.5 Interest rate 2.2 % 1.6 % 1.7 % Volatility 26.7 % 27.5 % 35.0 % Dividend yield 1.6 % 1.7 % 1.6 % Weighted average fair value per share $ 8.08 $ 5.96 $ 7.73 |
Employee Stock Purchase Plan - Valuation Assumptions | The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results: 2017 2016 2015 Expected life in years 1.0 1.0 1.0 Interest rate 0.9 % 0.7 % 0.2 % Volatility 22.3 % 24.6 % 18.9 % Dividend yield 1.5 % 1.7 % 1.6 % Weighted average fair value per share $ 7.32 $ 6.38 $ 5.50 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): 2017 2016 2015 Net earnings available to common shareholders $ 252,412 $ 40,674 $ 345,713 Weighted average shares outstanding for basic earnings per share 167,925 166,851 172,829 Dilutive effect of stock options computed based on the treasury stock method using the average market price 6,393 4,025 4,191 Weighted average shares outstanding for diluted earnings per share 174,318 170,876 177,020 Basic earnings per share $ 1.50 $ 0.24 $ 2.00 Diluted earnings per share $ 1.45 $ 0.24 $ 1.95 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Retirement Benefits [Abstract] | |
Plan assets by category and fair value measurement level | lans by category and fair value measurement level were as follows (in thousands): Level 2017 2016 Cash and cash equivalents 1 $ 3,254 $ 698 Insurance contract 3 26,411 24,287 Investments categorized in fair value hierarchy 29,665 24,985 Equity U.S. Large Cap N/A 55,488 58,236 U.S. Small/Mid Cap N/A 12,077 10,009 International N/A 45,958 40,404 Total Equity 113,523 108,649 Fixed income N/A 81,358 78,209 Real estate and other N/A 29,640 44,062 Investments measured at net asset value 224,521 230,920 Total $ 254,186 $ 255,905 |
Level 3 plan assets activity | The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands): 2017 2016 Balance, beginning of year $ 24,287 $ 28,080 Purchases 1,934 1,928 Redemptions (2,150 ) (5,267 ) Unrealized gains (losses) 2,340 (454 ) Balance, end of year $ 26,411 $ 24,287 |
Funded status of plans | The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 29, 2017 , and December 30, 2016 , and a statement of the funded status as of the same dates (in thousands): Pension Benefits Postretirement Medical Benefits 2017 2016 2017 2016 Change in benefit obligation Obligation, beginning of year $ 386,373 $ 380,672 $ 26,576 $ 23,211 Service cost 7,675 7,834 601 543 Interest cost 15,044 15,684 1,093 1,084 Actuarial loss (gain) 37,994 11,012 577 2,840 Benefit payments (13,299 ) (20,147 ) (1,076 ) (1,102 ) Settlements (43,539 ) (6,817 ) — — Exchange rate changes 3,311 (1,865 ) — — Obligation, end of year $ 393,559 $ 386,373 $ 27,771 $ 26,576 Change in plan assets Fair value, beginning of year $ 255,905 $ 268,258 $ — $ — Actual return on assets 32,132 11,397 — — Employer contributions 21,885 4,117 1,076 1,102 Benefit payments (13,299 ) (20,147 ) (1,076 ) (1,102 ) Settlements (43,539 ) (6,817 ) — — Exchange rate changes 1,102 (903 ) — — Fair value, end of year $ 254,186 $ 255,905 $ — $ — Funded status $ (139,373 ) $ (130,468 ) $ (27,771 ) $ (26,576 ) |
Amounts recognized in balance sheets | Amounts recognized in consolidated balance sheets Non-current assets $ 2,538 $ — $ — $ — Current liabilities 1,416 1,030 1,330 1,387 Non-current liabilities 140,495 129,438 26,441 25,189 Net $ 139,373 $ 130,468 $ 27,771 $ 26,576 |
Accumulated benefit obligation in excess of plan assets | Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): 2017 2016 Projected benefit obligation $ 344,733 $ 386,373 Accumulated benefit obligation 311,876 359,854 Fair value of plan assets 202,822 255,905 |
Components of net periodic benefit cost | The components of net periodic benefit cost for the plans for 2017 , 2016 and 2015 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2017 2016 2015 2017 2016 2015 Service cost-benefits earned during the period $ 7,675 $ 7,834 $ 8,406 $ 601 $ 543 $ 542 Interest cost on projected benefit obligation 15,044 15,684 14,790 1,093 1,084 954 Expected return on assets (17,186 ) (18,009 ) (19,442 ) — — — Amortization of prior service cost (credit) 255 269 268 (344 ) (766 ) (676 ) Amortization of net loss (gain) 8,634 7,980 9,036 334 285 323 Settlement loss (gain) 12,313 1,565 423 — — — Cost of pension plans which are not significant and have not adopted ASC 715 122 85 79 N/A N/A N/A Net periodic benefit cost $ 26,857 $ 15,408 $ 13,560 $ 1,684 $ 1,146 $ 1,143 |
Amounts recognized in other comprehensive (income) loss | Amounts recognized in other comprehensive (income) loss in 2017 and 2016 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2017 2016 2017 2016 Net loss (gain) arising during the period $ 23,936 $ 17,208 $ 577 $ 2,840 Amortization of net gain (loss) (8,634 ) (7,980 ) (334 ) (285 ) Settlement gain (loss) (12,313 ) (1,565 ) — — Amortization of prior service credit (cost) (255 ) (269 ) 344 766 Total $ 2,734 $ 7,394 $ 587 $ 3,321 |
Amounts included in accumulated other comprehensive (income) loss | Amounts included in accumulated other comprehensive (income) loss as of December 29, 2017 and December 30, 2016 , that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2017 2016 2017 2016 Prior service cost (credit) $ 1,746 $ 1,920 $ — $ (344 ) Net loss 111,598 108,689 6,836 6,593 Net before income taxes 113,344 110,609 6,836 6,249 Income taxes (39,289 ) (38,182 ) (2,461 ) (2,250 ) Net $ 74,055 $ 72,427 $ 4,375 $ 3,999 |
Amounts in AOCI expected to be recognized as cost in next year | Amounts included in accumulated other comprehensive (income) loss that are expected to be recognized as components of net periodic benefit cost in 2018 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits Prior service cost (credit) $ 277 $ — Net loss (gain) 7,797 543 Net before income taxes 8,074 543 Income taxes (1,776 ) (119 ) Net $ 6,298 $ 424 |
Assumptions used to determine obligations and cost | Assumptions used to determine the Company’s benefit obligations are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2017 2016 2017 2016 U.S. Plans Discount rate 3.9 % 4.5 % 3.9 % 4.5 % Rate of compensation increase 2.8 % 2.8 % N/A N/A Non-U.S. Plans Discount rate 1.0 % 0.9 % N/A N/A Rate of compensation increase 0.9 % 1.0 % N/A N/A Assumptions used to determine the Company’s net periodic benefit cost are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2017 2016 2015 2017 2016 2015 U.S. Plans Discount rate 4.5 % 4.7 % 4.2 % 4.5 % 4.7 % 4.2 % Rate of compensation increase 2.8 % 3.0 % 3.0 % N/A N/A N/A Expected return on assets 7.0 % 7.5 % 7.8 % N/A N/A N/A Non-U.S. Plans Discount rate 0.9 % 1.1 % 1.4 % N/A N/A N/A Rate of compensation increase 1.0 % 1.3 % 1.3 % N/A N/A N/A Expected return on assets 2.0 % 2.0 % 2.0 % N/A N/A N/A |
Estimated future benefit payments | Estimated future benefit payments are as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2018 $ 13,385 $ 1,330 2019 13,977 1,434 2020 15,584 1,561 2021 16,576 1,635 2022 17,881 1,712 Years 2023-2027 101,558 8,971 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Rental commitments under operating leases | Aggregate annual rental commitments under operating leases with noncancelable terms of more than one year were as follows at December 29, 2017 (in thousands): Buildings Vehicles & Equipment Total 2018 $ 4,911 $ 3,368 $ 8,279 2019 3,659 2,078 5,737 2020 3,113 1,364 4,477 2021 1,923 828 2,751 2022 1,524 646 2,170 Thereafter 4,170 609 4,779 Total $ 19,300 $ 8,893 $ 28,193 |
Acquisitions (Tables)
Acquisitions (Tables) - HiP | 12 Months Ended |
Dec. 29, 2017 | |
Business Acquisition [Line Items] | |
Schedule of recognized identified assets acquired and liabilities assumed | Purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands): Cash and cash equivalents $ 1,904 Accounts receivable 4,714 Inventories 7,605 Other current assets 69 Property, plant and equipment 1,962 Deferred income taxes 1,840 Identifiable intangible assets 60,100 Goodwill 86,149 Total assets acquired 164,343 Liabilities assumed (3,414 ) Net assets acquired $ 160,929 |
Schedule of identifiable intangible assets and estimated useful life | dentifiable intangible assets and estimated useful life were as follows (dollars in thousands): Estimated Life (years) Customer relationships $ 47,100 12 Trade names 13,000 Indefinite Total identifiable intangible assets $ 60,100 |
Quarterly Financial Informati36
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Unaudited quarterly financial data is summarized below (in thousands, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2017 Net Sales $ 340,590 $ 379,483 $ 379,812 $ 374,859 Gross Profit 185,273 203,941 203,465 200,370 Net Earnings 60,732 79,828 75,460 36,392 (1) Basic Net Earnings per Common Share $ 0.36 $ 0.48 $ 0.45 $ 0.22 (1) Diluted Net Earnings per Common Share 0.35 0.46 0.43 0.21 (1) Cash Dividends Declared per Common Share 0.12 0.12 0.12 0.13 2016 Net Sales $ 304,912 $ 348,126 $ 327,192 $ 349,063 Gross Profit 161,796 185,141 176,598 184,704 Net Earnings (Loss) 39,552 50,947 54,388 (104,213 ) (2) Basic Net Earnings (Loss) per Common Share $ 0.24 $ 0.31 $ 0.33 $ (0.62 ) (2) Diluted Net Earnings (Loss) per Common Share 0.23 0.30 0.32 (0.61 ) (2) Cash Dividends Declared per Common Share 0.11 0.11 0.11 0.12 (1) Net earnings in the fourth quarter of 2017 included income tax charges totaling $36 million to recognize the effects of U.S. federal income tax reform. (2) Net earnings (loss) in the fourth quarter of 2016 included $161 million of after tax loss from non-cash impairment charges in the Company’s ONG reporting unit within the Process Segment. |
Schedule II - Valuation and Q37
Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Summary of Valuation Allowance [Table Text Block] | Graco Inc. and Subsidiaries (in thousands) Allowance for Doubtful Accounts Allowance for Returns and Credits Total Balance, December 26, 2014 $ 2,400 $ 5,700 $ 8,100 Additions charged to costs and expenses 1,500 24,600 26,100 Deductions from reserves (1) (900 ) (23,000 ) (23,900 ) Other additions (deductions) (2) — 100 100 Balance, December 25, 2015 3,000 7,400 10,400 Additions charged to costs and expenses 1,200 27,800 29,000 Deductions from reserves (1) (100 ) (26,400 ) (26,500 ) Other additions (deductions) (2) (200 ) — (200 ) Balance, December 30, 2016 3,900 8,800 12,700 Additions charged to costs and expenses 1,600 30,600 32,200 Deductions from reserves (1) (1,700 ) (29,500 ) (31,200 ) Other additions (deductions) (2) 200 100 300 Balance, December 29, 2017 $ 4,000 $ 10,000 $ 14,000 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Other Details | |||
Stockholders' Equity Note, Stock Split | three-for-one | ||
Cash surrender value of life insurance change | $ 2,300,000 | ||
Amortization of intangible assets | 14,800,000 | $ 17,800,000 | $ 17,200,000 |
Self insured reserves | $ 8,500,000 | 9,800,000 | |
Sales returns percentage of sales (less than) | 3.00% | ||
Write-downs of long-lived assets | $ 0 | ||
Derivative, notional amount | 34,000,000 | ||
Goodwill, Impairment Loss | 146,669,000 | ||
Impairment Effect On Earnings, Pretax | (192,000,000) | ||
Stock compensation excess tax benefit | 36,300,000 | ||
Net Cash Provided by (Used in) Operating Activities | 337,864,000 | 276,006,000 | 191,414,000 |
Trade Accounts Receivable | |||
Other Details | |||
Accounts receivable | 244,000,000 | 209,000,000 | |
Other Receivables | |||
Other Details | |||
Accounts receivable | $ 12,000,000 | 9,000,000 | |
Minimum | |||
Other Details | |||
Capitalized software estimated useful life | 2 years | ||
Minimum | Buildings and improvements | |||
Other Details | |||
Property, plant and equipment, useful life | 10 years | ||
Minimum | Leasehold improvements | |||
Other Details | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum | Manufacturing equipment | |||
Other Details | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum | Office, warehouse and automotive equipment | |||
Other Details | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | |||
Other Details | |||
Capitalized software estimated useful life | 5 years | ||
Maximum | Buildings and improvements | |||
Other Details | |||
Property, plant and equipment, useful life | 30 years | ||
Maximum | Leasehold improvements | |||
Other Details | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum | Manufacturing equipment | |||
Other Details | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum | Office, warehouse and automotive equipment | |||
Other Details | |||
Property, plant and equipment, useful life | 10 years | ||
Other Noncurrent Liabilities | |||
Other Details | |||
Self insured reserves | $ 500,000 | 2,700,000 | |
Other Current Liabilities | |||
Other Details | |||
Self insured reserves | $ 8,000,000 | 7,100,000 | |
Accounting Standards Update 2016-09 [Member] | |||
Other Details | |||
Net Cash Provided by (Used in) Operating Activities | $ 6,900,000 | $ 1,800,000 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
ASSETS | ||
Total assets at fair value | $ 16,128 | $ 14,356 |
Liabilities [Abstract] | ||
Total liabilities at fair value | 8,434 | 7,346 |
Level 2 | ||
ASSETS | ||
Cash surrender value of life insurance | 16,128 | 13,785 |
Forward exchange contracts | 0 | 571 |
Liabilities [Abstract] | ||
Forward exchange contracts | 3,836 | 3,265 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 517 | 0 |
Level 3 | ||
Liabilities [Abstract] | ||
Contingent consideration | $ 4,081 | $ 4,081 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Accounting Policies [Abstract] | ||
Prepaid income taxes | $ 8,934 | $ 10,723 |
Restricted cash | 9,242 | 9,230 |
Prepaid expenses and other | 14,318 | 11,070 |
Other current assets | $ 32,494 | $ 31,023 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Goodwill by Reporting Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Goodwill Roll Forward | ||
Beginning balance | $ 259,849 | $ 394,488 |
Additions from business acquisitions | 13,503 | 28,130 |
Impairment | (146,669) | |
Foreign currency translation | 5,437 | (16,100) |
Ending balance | 278,789 | 259,849 |
Industrial | ||
Goodwill Roll Forward | ||
Beginning balance | 150,556 | 153,283 |
Additions from business acquisitions | 7,152 | 0 |
Impairment | 0 | |
Foreign currency translation | 3,965 | (2,727) |
Ending balance | 161,673 | 150,556 |
Process | ||
Goodwill Roll Forward | ||
Beginning balance | 96,561 | 228,473 |
Additions from business acquisitions | (62) | 28,130 |
Impairment | (146,669) | |
Foreign currency translation | 1,472 | (13,373) |
Ending balance | 97,971 | 96,561 |
Contractor | ||
Goodwill Roll Forward | ||
Beginning balance | 12,732 | 12,732 |
Additions from business acquisitions | 6,413 | 0 |
Impairment | 0 | |
Foreign currency translation | 0 | 0 |
Ending balance | $ 19,145 | $ 12,732 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total Other Intangible Assets, Gross | $ 258,929 | $ 246,353 |
Total Other Intangible Assets, Accumulated Amortization | (62,413) | (48,024) |
Total Other Intangible Assets, Foreign Currency Translation | (13,460) | (19,993) |
Total Other Intangible Assets, Net | 183,056 | 178,336 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Estimated amortization expense 2018 | 15,418 | |
Estimated amortization expense 2019 | 15,089 | |
Estimated amortization expense 2020 | 14,910 | |
Estimated amortization expense 2021 | 14,740 | |
Estimated amortization expense 2022 | 14,740 | |
Estimated amortization expense thereafter | 52,092 | |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets Original Cost | 59,553 | 57,853 |
Indefinite Lived Intangible Assets, Foreign Currency Translation | (3,486) | (5,249) |
Indefinite Lived Intangible Assets, Net | 56,067 | 52,604 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets, Gross | 179,826 | 170,284 |
Finite Lived Intangible Assets, Accumulated Amortization | (54,076) | (41,599) |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (9,186) | (13,630) |
Finite Lived Intangible Assets, Net | $ 116,564 | $ 115,055 |
Finite Lived Intangible Assets, Weighted Average Useful Life | 13 years | 13 years |
Patents and Proprietary Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets, Gross | $ 18,479 | $ 17,321 |
Finite Lived Intangible Assets, Accumulated Amortization | (7,795) | (6,088) |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (727) | (1,055) |
Finite Lived Intangible Assets, Net | $ 9,957 | $ 10,178 |
Finite Lived Intangible Assets, Weighted Average Useful Life | 10 years | 10 years |
Trademarks, Trade Names and Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets, Gross | $ 1,071 | $ 895 |
Finite Lived Intangible Assets, Accumulated Amortization | (542) | (337) |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (61) | (59) |
Finite Lived Intangible Assets, Net | $ 468 | $ 499 |
Finite Lived Intangible Assets, Weighted Average Useful Life | 4 years | 4 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Components of Other Assets) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Accounting Policies [Abstract] | ||
Cash surrender value of life insurance | $ 16,128 | $ 13,785 |
Capitalized software | 1,784 | 1,812 |
Equity method investment | 6,755 | 6,366 |
Prepaid Expense Other, Noncurrent | 2,538 | 0 |
Deposits and other | 3,015 | 3,350 |
Total | $ 30,220 | $ 25,313 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Components of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 |
Accounting Policies [Abstract] | |||
Self insured reserves | $ 8,500 | $ 9,800 | |
Other Current Liabilities | |||
Accrued self-insurance retentions | 7,956 | 7,105 | |
Accrued warranty and service liabilities | 10,535 | 8,934 | $ 7,870 |
Accrued trade promotions | 10,588 | 6,007 | |
Payable for employee stock purchases | 10,053 | 9,328 | |
Customer Advances and Deposits, Current | 22,632 | 9,400 | |
Income taxes payable | 7,564 | 8,608 | |
Other | 31,628 | 22,505 | |
Total | $ 100,956 | $ 71,887 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Accrued Warranty Liability Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Accrued warranty and service liabilities | ||
Balance, beginning of year | $ 8,934 | $ 7,870 |
Charged to expense | 7,930 | 7,516 |
Margin on parts sales reversed | 2,826 | 1,796 |
Reductions for claims settled | (9,155) | (8,248) |
Balance, end of year | $ 10,535 | $ 8,934 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Fair Market Value and Classification of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||
Assets | $ 0 | $ 621 |
Liabilities | 517 | 50 |
Net Assets (Liabilities) | $ (517) | $ 571 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 23, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net Earnings | $ 252,412,000 | $ 40,674,000 | $ 345,713,000 | ||||||||
Diluted Net Earnings per Common Share | $ 0.21 | $ 0.43 | $ 0.46 | $ 0.35 | $ (0.61) | $ 0.32 | $ 0.30 | $ 0.23 | $ 1.45 | $ 0.24 | $ 1.95 |
Net Cash Provided by (Used in) Operating Activities | $ 337,864,000 | $ 276,006,000 | $ 191,414,000 | ||||||||
Net Cash Provided by (Used in) Financing Activities | $ (217,076,000) | (185,165,000) | (536,186,000) | ||||||||
Stock compensation excess tax benefit, percent | (10.00%) | ||||||||||
Accounting Standards Update 2016-09 [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Diluted Net Earnings per Common Share | $ 0.21 | ||||||||||
Net Cash Provided by (Used in) Operating Activities | 6,900,000 | 1,800,000 | |||||||||
Net Cash Provided by (Used in) Financing Activities | $ (6,900,000) | $ (1,800,000) | |||||||||
Stock compensation excess tax benefit, percent | (10.00%) | ||||||||||
Cumulative Effect of Change on Equity | $ 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | 12 Months Ended | |
Dec. 29, 2017 | Dec. 25, 2015 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 6 | |
Number of reportable segments | 3 | |
Major Customer | Customer Concentration Risk | Sales | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 10.00% |
Segment Information (Operations
Segment Information (Operations and Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 23, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Segment Reporting Information | |||||||||||
Net Sales | $ 374,859 | $ 379,812 | $ 379,483 | $ 340,590 | $ 349,063 | $ 327,192 | $ 348,126 | $ 304,912 | $ 1,474,744 | $ 1,329,293 | $ 1,286,485 |
Operating Earnings | 360,447 | 113,879 | 302,125 | ||||||||
Assets | 1,379,205 | 1,243,109 | 1,379,205 | 1,243,109 | |||||||
Operating Segments | Industrial | |||||||||||
Segment Reporting Information | |||||||||||
Net Sales | 691,978 | 629,581 | 616,069 | ||||||||
Operating Earnings | 237,700 | 207,183 | 201,749 | ||||||||
Assets | 572,436 | 546,366 | 572,436 | 546,366 | |||||||
Operating Segments | Process | |||||||||||
Segment Reporting Information | |||||||||||
Net Sales | 294,652 | 266,630 | 273,631 | ||||||||
Operating Earnings | 52,216 | 35,750 | 43,833 | ||||||||
Assets | 345,572 | 318,444 | 345,572 | 318,444 | |||||||
Operating Segments | Contractor | |||||||||||
Segment Reporting Information | |||||||||||
Net Sales | 488,114 | 433,082 | 396,785 | ||||||||
Operating Earnings | 113,898 | 91,837 | 86,447 | ||||||||
Assets | 255,615 | 208,016 | 255,615 | 208,016 | |||||||
Unallocated Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Operating Earnings | (43,367) | (28,871) | (29,904) | ||||||||
Assets | $ 205,582 | $ 170,283 | 205,582 | 170,283 | |||||||
Impairment | |||||||||||
Segment Reporting Information | |||||||||||
Operating Earnings | $ 0 | $ (192,020) | $ 0 |
Segment Information (Geographic
Segment Information (Geographic Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 23, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Geographic Information | |||||||||||
Net Sales | $ 374,859 | $ 379,812 | $ 379,483 | $ 340,590 | $ 349,063 | $ 327,192 | $ 348,126 | $ 304,912 | $ 1,474,744 | $ 1,329,293 | $ 1,286,485 |
Long-lived Assets | 204,298 | 189,596 | 204,298 | 189,596 | |||||||
United States | |||||||||||
Geographic Information | |||||||||||
Net Sales | 743,344 | 685,981 | 653,534 | ||||||||
Long-lived Assets | 163,416 | 151,911 | 163,416 | 151,911 | |||||||
Non-US [Member] | |||||||||||
Geographic Information | |||||||||||
Net Sales | 731,400 | 643,312 | $ 632,951 | ||||||||
Long-lived Assets | $ 40,882 | $ 37,685 | $ 40,882 | $ 37,685 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Dec. 29, 2017 | Dec. 30, 2016 |
Inventory Disclosure [Abstract] | ||
LIFO Inventory Amount | $ 135.9 | $ 103.2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Inventory, Net [Abstract] | ||
Finished products and components | $ 124,327 | $ 113,643 |
Products and components in various stages of completion | 61,274 | 50,557 |
Raw materials and purchased components | 103,407 | 84,631 |
Inventory gross total | 289,008 | 248,831 |
Reduction to LIFO cost | (49,659) | (47,222) |
Total | $ 239,349 | $ 201,609 |
Property, Plant and Equipment53
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation Expense | $ 29.5 | $ 28.8 | $ 25.7 |
Property, Plant and Equipment54
Property, Plant and Equipment (PPE By Type) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 528,114 | $ 489,642 |
Accumulated depreciation | (323,816) | (300,046) |
Net property, plant and equipment | 204,298 | 189,596 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 24,469 | 23,253 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 145,009 | 132,343 |
Manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 298,719 | 286,742 |
Office, warehouse and automotive equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 41,747 | 37,940 |
Additions in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 18,170 | $ 9,364 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 29 | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 6.6 | ||
Effective Income Tax Rate Reconciliation, Impact of 2017 Tax Cuts and Jobs Act, percent | 10.00% | ||
Income taxes paid | $ 61 | $ 78.6 | $ 150.5 |
Deferred tax assets | 68.8 | 103.4 | |
Deferred tax liabilities | $ 35.1 | $ 34.5 | |
Stock compensation excess tax benefit, percent | (10.00%) | ||
Stock compensation excess tax benefit | $ 36.3 |
Income Taxes (Income before Inc
Income Taxes (Income before Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 269,258 | $ 107,440 | $ 402,453 |
Foreign | 77,836 | (10,785) | 72,260 |
Earnings Before Income Taxes | $ 347,094 | $ 96,655 | $ 474,713 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Current Income Tax Expense (Benefit) [Abstract] | |||
Federal | $ 41,996 | $ 67,126 | $ 117,883 |
State and local | 3,088 | 4,868 | 4,576 |
Foreign | 19,486 | 18,195 | 18,115 |
Total Current | 64,570 | 90,189 | 140,574 |
Deferred Income Tax Expense (Benefit) [Abstract] | |||
Domestic | 35,782 | (27,509) | (10,175) |
Foreign | (5,670) | (6,699) | (1,399) |
Total Deferred | 30,112 | (34,208) | (11,574) |
Total Income Tax Expense | $ 94,682 | $ 55,981 | $ 129,000 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Federal income tax rate reconciliation | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Tax effect of international operations | (6.00%) | 4.00% | (3.00%) |
State taxes, net of federal effect | 1.00% | 1.00% | 1.00% |
U.S. general business tax credits | (1.00%) | (3.00%) | (1.00%) |
Domestic production deduction | (2.00%) | (7.00%) | (2.00%) |
Stock compensation excess tax benefit, percent | (10.00%) | ||
Effective Income Tax Rate Reconciliation, Deduction, Other, Percent | 0.00% | 0.00% | |
Effective Income Tax Rate Reconciliation, Impact of 2017 Tax Cuts and Jobs Act, percent | 10.00% | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 0.00% | |
Impairment | 0.00% | 28.00% | 0.00% |
Dividends from Liquid Finishing | (0.00%) | (0.00%) | (3.00%) |
Effective tax rate | 27.00% | 58.00% | 27.00% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Deferred Tax Assets, Net [Abstract] | ||
Inventory valuations | $ 1,686 | $ 9,845 |
Self-insurance retention accruals | 1,264 | 1,836 |
Warranty reserves | 1,658 | 2,390 |
Vacation accruals | 1,942 | 3,343 |
Bad debt reserves | 2,620 | 3,824 |
Excess of tax over book depreciation and amortization | (30,381) | (31,849) |
Pension liability | 31,220 | 43,924 |
Postretirement medical | 4,313 | 6,856 |
Acquisition costs | 680 | 1,052 |
Stock compensation | 14,185 | 24,521 |
Deferred compensation | 1,801 | 1,495 |
Foreign tax credit carryforward | 5,000 | 0 |
Other | 1,047 | 1,744 |
Net deferred tax assets | $ 33,663 | $ 68,981 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Line of Credit Facility [Line Items] | |||
Estimated fair value of debt | $ 245,000,000 | $ 325,000,000 | |
Maximum borrowing amount - credit facility | 545,000,000 | ||
Interest paid | 16,500,000 | 17,600,000 | $ 17,500,000 |
Committed Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 500,000,000 | ||
Unused portion of credit facility | 512,000,000 | ||
Committed Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - swingline facility | $ 50,000,000 | ||
Committed Facility | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 45,000,000 | ||
Uncommitted Facility | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Unused portion of credit facility | $ 26,000,000 | ||
Uncommitted Facility | Foreign Line of Credit | Maximum | |||
Line of Credit Facility [Line Items] | |||
Loan commitment fee percentage | 0.15% | ||
Line of Credit | Committed Facility | Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.00% | ||
Loan commitment fee percentage | 0.125% | ||
Line of Credit | Committed Facility | Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.75% | ||
Loan commitment fee percentage | 0.25% | ||
Line of Credit | Federal Funds Effective Swap Rate | Committed Facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.50% | ||
Line of Credit | London Interbank Offered Rate (LIBOR) | Committed Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.50% | ||
Line of Credit | London Interbank Offered Rate (LIBOR) | Committed Facility | Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.00% | ||
Line of Credit | London Interbank Offered Rate (LIBOR) | Committed Facility | Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% |
Debt (Schedule of Debt Instrume
Debt (Schedule of Debt Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Debt Instrument [Line Items] | ||
Total debt, including current portion | $ 232,613 | $ 314,598 |
Series A maturing March 2018 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 4.00% | |
Debt Instrument, Maturity Date, Description | March 2018 | |
Total debt, including current portion | $ 0 | 75,000 |
Series B maturing March 2023 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 5.01% | |
Debt Instrument, Maturity Date, Description | March 2,023 | |
Total debt, including current portion | $ 75,000 | 75,000 |
Series C maturing January 2020 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 4.88% | |
Debt Instrument, Maturity Date, Description | January 2020 | |
Total debt, including current portion | $ 75,000 | 75,000 |
Series D maturing July 2026 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 5.35% | |
Debt Instrument, Maturity Date, Description | July 2,026 | |
Total debt, including current portion | $ 75,000 | 75,000 |
Revolving Credit Facility maturing June 2021 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 2.56% | |
Debt Instrument, Maturity Date, Description | December 2,021 | |
Total debt, including current portion | $ 1,035 | 5,685 |
Notes payable to banks maturing 2017 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 0.77% | |
Debt Instrument, Maturity Date, Description | 2,018 | |
Total debt, including current portion | $ 6,578 | $ 8,913 |
Debt (Annual Maturities of Debt
Debt (Annual Maturities of Debt) (Details) $ in Thousands | Dec. 29, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 6,578 |
2,019 | 0 |
2,020 | 75,000 |
2,021 | 1,035 |
2,022 | 0 |
Thereafter | $ 150,000 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) | 12 Months Ended |
Dec. 29, 2017$ / sharesshares | |
Class of Stock | |
Stockholders' Equity Note, Stock Split | three-for-one |
Cumulative Preferred Stock | |
Class of Stock | |
Preferred stock authorized | shares | 22,549 |
Preferred stock par value | $ / shares | $ 100 |
Preferred Stock | |
Class of Stock | |
Preferred stock authorized | shares | 3,000,000 |
Preferred stock par value | $ / shares | $ 1 |
Shareholders' Equity (AOCI and
Shareholders' Equity (AOCI and Reclassification) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | $ (142,228) | $ (104,497) | $ (100,736) |
Other comprehensive income (loss) before reclassifications | 1,652 | (43,396) | (9,782) |
Amounts reclassified from accumulated other comprehensive income | 12,787 | 5,665 | 6,021 |
Ending Balance | (127,789) | (142,228) | (104,497) |
Reclassification detail | |||
Amounts reclassified from accumulated other comprehensive income | 12,787 | 5,665 | 6,021 |
Pension and Postretirement Medical | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (76,426) | (69,922) | (76,584) |
Other comprehensive income (loss) before reclassifications | (14,791) | (12,169) | 641 |
Amounts reclassified from accumulated other comprehensive income | 12,787 | 5,665 | 6,021 |
Ending Balance | (78,430) | (76,426) | (69,922) |
Reclassification detail | |||
Reclassification before tax | 21,192 | 9,332 | 9,374 |
Income tax (benefit) | (8,405) | (3,667) | (3,353) |
Amounts reclassified from accumulated other comprehensive income | 12,787 | 5,665 | 6,021 |
Pension and Postretirement Medical | Cost of products sold | |||
Reclassification detail | |||
Reclassification before tax | 3,165 | 3,379 | 3,370 |
Pension and Postretirement Medical | Product development | |||
Reclassification detail | |||
Reclassification before tax | 1,307 | 1,334 | 1,352 |
Pension and Postretirement Medical | Selling, marketing and distribution | |||
Reclassification detail | |||
Reclassification before tax | 3,085 | 3,033 | 3,109 |
Pension and Postretirement Medical | General and administrative | |||
Reclassification detail | |||
Reclassification before tax | 13,635 | 1,586 | 1,543 |
Cumulative Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (65,802) | (34,575) | (24,152) |
Other comprehensive income (loss) before reclassifications | 16,443 | (31,227) | (10,423) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Ending Balance | (49,359) | (65,802) | (34,575) |
Reclassification detail | |||
Amounts reclassified from accumulated other comprehensive income | $ 0 | $ 0 | $ 0 |
Share-Based Awards, Purchase 65
Share-Based Awards, Purchase Plans and Compensation Cost (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Intrinsic value of exercisable option shares | $ 211 | ||
Exercisable option weighted average contractual term | 4 years 8 months | ||
Share options vested and expected to vest | 13,300,000 | ||
Aggregate intrinsic value of share options vested and expected to vest | $ 314.2 | ||
Weighted average exercise price of share options vested and expected to vest (per share) | $ 21.99 | ||
Weighted average contractual term of share options vested and expected to vest | 6 years 3 months | ||
Employee stock purchase plan shares granted | 499,956 | 510,432 | 497,691 |
Total shares authorized | 31,500,000 | ||
Available for future issuance | 18,961,000 | ||
Unrecognized compensation cost related to unvested options | $ 10.8 | ||
Weighted average recognition period for unvested options | 2 years 1 month | ||
Stock or Unit Option Plan Expense | $ 4.5 | ||
Stock Incentive Plan (2015) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award expiration period | 10 years | ||
Total shares authorized | 10,500,000 | ||
Available for future issuance | 5,186,000 | ||
Stock Incentive Plan (2015) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 3 years | ||
Stock Incentive Plan (2015) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 4 years | ||
Stock Incentive Plan (2015) | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares issued under the plan | 5,975 | 6,882 | 5,963 |
Employee Stock Purchase Plan (2006) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share purchase price as percentage of fair value | 85.00% | ||
Total shares authorized | 21,000,000 | ||
Available for future issuance | 13,775,000 | ||
Stock purchase plan discount percentage | 15.00% |
Share-Based Awards, Purchase 66
Share-Based Awards, Purchase Plans and Compensation Cost (Option Activity and Outstanding) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | Dec. 26, 2014 | |
Options, Outstanding [Roll Forward] | ||||
Beginning (in shares) | 16,605 | 15,495 | 14,925 | |
Granted (in shares) | 1,725 | 3,483 | 1,629 | |
Exercised (in shares) | (4,903) | (2,286) | (984) | |
Canceled (in shares) | (137) | (87) | (75) | |
Ending (in shares) | 13,290 | 16,605 | 15,495 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning (dollars per share) | $ 18.42 | $ 16.05 | $ 14.91 | |
Granted (dollars per share) | 30.71 | 25.53 | 24.73 | |
Exercised (dollars per share) | 12.86 | 13 | 12.43 | |
Canceled (dollars per share) | 26.63 | 23.36 | 24 | |
Outstanding, ending (dollars per share) | $ 21.99 | $ 18.42 | $ 16.05 | |
Options, exercisable (in shares) | 7,729 | 11,016 | 10,749 | 9,954 |
Weighted average exercise price of exercisable options (dollars per share) | $ 18.33 | $ 15.13 | $ 12.83 | $ 11.62 |
Share-Based Awards, Purchase 67
Share-Based Awards, Purchase Plans and Compensation Cost (Options Outstanding and Exercisable By Price) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | Dec. 26, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 13,290 | 16,605 | 15,495 | 14,925 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 21.99 | $ 18.42 | $ 16.05 | $ 14.91 |
Options, exercisable (in shares) | 7,729 | 11,016 | 10,749 | 9,954 |
Weighted average exercise price of exercisable options (dollars per share) | $ 18.33 | $ 15.13 | $ 12.83 | $ 11.62 |
Granted (in shares) | 1,725 | 3,483 | 1,629 | |
Granted (dollars per share) | $ 30.71 | $ 25.53 | $ 24.73 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (4,903) | (2,286) | (984) | |
Exercised (dollars per share) | $ 12.86 | $ 13 | $ 12.43 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (137) | (87) | (75) | |
Canceled (dollars per share) | $ 26.63 | $ 23.36 | $ 24 | |
$5 - $15 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Lower range exercise price | 5 | |||
Upper range exercise price | $ 15 | |||
Options Outstanding | 2,200 | |||
Weighted Average Remaining Contractual Term in Years | 2 years 2 months | |||
Weighted Average Exercise Price | $ 10.52 | |||
Options Exercisable | 2,200 | |||
Weighted Average Exercise Price | $ 10.52 | |||
$15 - $20 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Lower range exercise price | 15 | |||
Upper range exercise price | $ 20 | |||
Options Outstanding | 2,795 | |||
Weighted Average Remaining Contractual Term in Years | 4 years 7 months | |||
Weighted Average Exercise Price | $ 18.14 | |||
Options Exercisable | 2,795 | |||
Weighted Average Exercise Price | $ 18.14 | |||
$20 - $25 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Lower range exercise price | 20 | |||
Upper range exercise price | $ 25 | |||
Options Outstanding | 4,676 | |||
Weighted Average Remaining Contractual Term in Years | 7 years 4 months | |||
Weighted Average Exercise Price | $ 24.43 | |||
Options Exercisable | 2,222 | |||
Weighted Average Exercise Price | $ 24.62 | |||
$25 - $30 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Lower range exercise price | 25 | |||
Upper range exercise price | $ 30 | |||
Options Outstanding | 1,912 | |||
Weighted Average Remaining Contractual Term in Years | 8 years 2 months | |||
Weighted Average Exercise Price | $ 27.07 | |||
Options Exercisable | 507 | |||
Weighted Average Exercise Price | $ 25.51 | |||
$30 - $38 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Lower range exercise price | 30 | |||
Upper range exercise price | $ 38 | |||
Options Outstanding | 1,707 | |||
Weighted Average Remaining Contractual Term in Years | 9 years 2 months | |||
Weighted Average Exercise Price | $ 30.71 | |||
Options Exercisable | 5 | |||
Weighted Average Exercise Price | $ 31.44 | |||
$5 - $38 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Lower range exercise price | 5 | |||
Upper range exercise price | $ 38 | |||
Options Outstanding | 13,290 | |||
Weighted Average Remaining Contractual Term in Years | 6 years 3 months | |||
Weighted Average Exercise Price | $ 21.99 | |||
Options Exercisable | 7,729 | |||
Weighted Average Exercise Price | $ 18.33 |
Share-Based Awards, Purchase 68
Share-Based Awards, Purchase Plans and Compensation Cost (Options Exercised) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Cash received | $ 48,833 | $ 21,142 | $ 7,720 |
Aggregate intrinsic value | 119,442 | 30,247 | 11,851 |
Tax benefit realized | $ 42,000 | $ 9,900 | $ 3,600 |
Share-Based Awards, Purchase 69
Share-Based Awards, Purchase Plans and Compensation Cost (Authorized Shares) (Details) shares in Thousands | Dec. 29, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 31,500 |
Available for future issuance | 18,961 |
Stock Incentive Plan (2015) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 10,500 |
Available for future issuance | 5,186 |
Employee Stock Purchase Plan (2006) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 21,000 |
Available for future issuance | 13,775 |
Share-Based Awards, Purchase 70
Share-Based Awards, Purchase Plans and Compensation Cost Share-Based Awards, Purchase Plans and Compensation Cost (Share Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation | $ 23,652 | $ 21,134 | $ 19,224 |
Tax benefit | 5,100 | 6,100 | 5,400 |
Share-based compensation, net of tax | $ 18,552 | $ 15,034 | $ 13,824 |
Share-Based Awards, Purchase 71
Share-Based Awards, Purchase Plans and Compensation Cost (Valuation Assumptions Options) (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life in years | 7 years | 6 years 2 months | 6 years 6 months |
Interest rate | 2.20% | 1.60% | 1.70% |
Volatility | 26.70% | 27.50% | 35.00% |
Dividend yield | 1.60% | 1.70% | 1.60% |
Weighted average fair value per share | $ 8.08 | $ 5.96 | $ 7.73 |
Share-Based Awards, Purchase 72
Share-Based Awards, Purchase Plans and Compensation Cost (Valuation Assumptions ESPP) (Details) - Employee Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life in years | 1 year | 1 year | 1 year |
Interest rate | 0.90% | 0.70% | 0.20% |
Volatility | 22.30% | 24.60% | 18.90% |
Dividend yield | 1.50% | 1.70% | 1.60% |
Weighted average fair value per share | $ 7.32 | $ 6.38 | $ 5.50 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.9 | 4.1 |
Earnings per Share (Schedule Of
Earnings per Share (Schedule Of Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 23, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings available to common shareholders | $ 252,412 | $ 40,674 | $ 345,713 | ||||||||
Weighted average shares outstanding for basic earnings per share | 167,925 | 166,851 | 172,829 | ||||||||
Dilutive effect of stock options computed based on the treasury stock method using the average market price | 6,393 | 4,025 | 4,191 | ||||||||
Weighted average shares outstanding for diluted earnings per share | 174,318 | 170,876 | 177,020 | ||||||||
Basic earnings per share | $ 0.22 | $ 0.45 | $ 0.48 | $ 0.36 | $ (0.62) | $ 0.33 | $ 0.31 | $ 0.24 | $ 1.50 | $ 0.24 | $ 2 |
Diluted earnings per share | $ 0.21 | $ 0.43 | $ 0.46 | $ 0.35 | $ (0.61) | $ 0.32 | $ 0.30 | $ 0.23 | $ 1.45 | $ 0.24 | $ 1.95 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Defined Contribution Plan | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | ||
Company contribution rate for employees not covered by DBP | 1.50% | ||
Company contributions to 401K | $ 7,800,000 | $ 6,700,000 | $ 6,300,000 |
Highest earnings years | 5 years | ||
Years preceding retirement | 10 years | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||
Accumulated benefit obligation for all defined benefit plans | $ 361,000,000 | 360,000,000 | |
Pension Plan - Blue Plan [Member] | Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 54.00% | ||
Pension Plan - Blue Plan [Member] | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 36.00% | ||
Pension Plan - Blue Plan [Member] | Real Estate and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 10.00% | ||
Pension Plan - Gray Plan [Member] | Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 38.00% | ||
Pension Plan - Gray Plan [Member] | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 53.00% | ||
Pension Plan - Gray Plan [Member] | Real Estate and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 9.00% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 43,539,000 | 6,817,000 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (12,313,000) | (1,565,000) | (423,000) |
Investments at Net Asset Value, Redemption Frequency | daily | ||
Investments at Net Asset Value, Unfunded Commitments | $ 3,000,000 | 4,000,000 | |
Expected company contributions to retirement plans in 2017 | 1,400,000 | ||
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 0 | $ 0 |
Retirement medical plan limit on annual increase in company cost | 3.00% | ||
Expected company contributions to retirement plans in 2017 | $ 1,300,000 | ||
Assumed health care trend rates | |||
Effect of a one-percentage-point increase in the assumed health care cost trend rates | $ 0 | ||
Health care cost trend rate assumed for next year | 6.50% | ||
Ultimate health care cost trend rate | 4.50% | ||
Year that rate reaches ultimate trend rate | 2,038 | ||
Old Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 42,000,000 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 12,000,000 | ||
Minimum | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments at Net Asset Value, Redemption Notice Period | 10 days | ||
Maximum | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments at Net Asset Value, Redemption Notice Period | 60 days |
Retirement Benefits (Plan Asset
Retirement Benefits (Plan Assets by Category and Fair Value Measurement Level) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Investments, Fair Value Disclosure | $ 29,665 | $ 24,985 | |
Investments Net Asset Value | 224,521 | 230,920 | |
Fair value, plan assets | 254,186 | 255,905 | $ 268,258 |
Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 254,186 | 255,905 | |
Cash and cash equivalents | Level 1 | Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments, Fair Value Disclosure | 3,254 | 698 | |
Insurance contract | Level 3 | Fair Value, Measurements, Nonrecurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments, Fair Value Disclosure | 26,411 | 24,287 | |
Equity | Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 113,523 | 108,649 | |
U.S. Large Cap | Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 55,488 | 58,236 | |
U.S. Small/Mid Cap | Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 12,077 | 10,009 | |
International | Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 45,958 | 40,404 | |
Fixed income | Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 81,358 | 78,209 | |
Real estate and other | Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | $ 29,640 | $ 44,062 |
Retirement Benefits (Level 3 As
Retirement Benefits (Level 3 Asset Rollforward) (Details) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | $ 255,905 | $ 268,258 |
Fair value, end of year | 254,186 | 255,905 |
Insurance contract | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 24,287 | 28,080 |
Purchases | 1,934 | 1,928 |
Redemptions | (2,150) | (5,267) |
Unrealized gains (losses) | 2,340 | (454) |
Fair value, end of year | $ 26,411 | $ 24,287 |
Retirement Benefits (Funded Sta
Retirement Benefits (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Pension Benefits | |||
Change in benefit obligation | |||
Obligation, beginning of year | $ 386,373 | $ 380,672 | |
Service cost | 7,675 | 7,834 | $ 8,406 |
Interest cost | 15,044 | 15,684 | 14,790 |
Actuarial loss (gain) | 37,994 | 11,012 | |
Benefit payments | (13,299) | (20,147) | |
Settlements | (43,539) | (6,817) | |
Exchange rate changes | 3,311 | (1,865) | |
Obligation, end of year | 393,559 | 386,373 | 380,672 |
Change in plan assets | |||
Fair value, beginning of year | 255,905 | 268,258 | |
Actual return on assets | 32,132 | 11,397 | |
Employer contributions | 21,885 | 4,117 | |
Benefit payments | 13,299 | 20,147 | |
Settlements | (43,539) | (6,817) | |
Exchange rate changes | 1,102 | (903) | |
Fair value, end of year | 254,186 | 255,905 | 268,258 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (139,373) | (130,468) | |
Postretirement Medical Benefits | |||
Change in benefit obligation | |||
Obligation, beginning of year | 26,576 | 23,211 | |
Service cost | 601 | 543 | 542 |
Interest cost | 1,093 | 1,084 | 954 |
Actuarial loss (gain) | 577 | 2,840 | |
Benefit payments | (1,076) | (1,102) | |
Settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Obligation, end of year | 27,771 | 26,576 | 23,211 |
Change in plan assets | |||
Fair value, beginning of year | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Employer contributions | 1,076 | 1,102 | |
Benefit payments | 1,076 | 1,102 | |
Settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Fair value, end of year | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (27,771) | $ (26,576) |
Retirement Benefits (Amounts Re
Retirement Benefits (Amounts Recognized in Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Amounts recognized in consolidated balance sheets | ||
Non-current liabilities | $ 172,411 | $ 159,250 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid Expense, Noncurrent | 2,538 | 0 |
Amounts recognized in consolidated balance sheets | ||
Current liabilities | 1,416 | 1,030 |
Non-current liabilities | 140,495 | 129,438 |
Net | 139,373 | 130,468 |
Postretirement Medical Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid Expense, Noncurrent | 0 | 0 |
Amounts recognized in consolidated balance sheets | ||
Current liabilities | 1,330 | 1,387 |
Non-current liabilities | 26,441 | 25,189 |
Net | $ 27,771 | $ 26,576 |
Retirement Benefits (Accumulate
Retirement Benefits (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Information for plans with accumulated benefit obligation in excess of plan assets | ||
Projected benefit obligation | $ 344,733 | $ 386,373 |
Accumulated benefit obligation | 311,876 | 359,854 |
Fair value of plan assets | $ 202,822 | $ 255,905 |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Pension Benefits | |||
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | $ 7,675 | $ 7,834 | $ 8,406 |
Interest cost on projected benefit obligation | 15,044 | 15,684 | 14,790 |
Expected return on assets | (17,186) | (18,009) | (19,442) |
Amortization of prior service cost (credit) | 255 | 269 | 268 |
Amortization of net loss (gain) | 8,634 | 7,980 | 9,036 |
Settlement loss (gain) | 12,313 | 1,565 | 423 |
Cost of pension plans which are not significant and have not adopted ASC 715 | 122 | 85 | 79 |
Net periodic benefit cost | 26,857 | 15,408 | 13,560 |
Postretirement Medical Benefits | |||
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | 601 | 543 | 542 |
Interest cost on projected benefit obligation | 1,093 | 1,084 | 954 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (344) | (766) | (676) |
Amortization of net loss (gain) | 334 | 285 | 323 |
Settlement loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost | $ 1,684 | $ 1,146 | $ 1,143 |
Retirement Benefits (Amounts 82
Retirement Benefits (Amounts recognized in other comprehensive (income) loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Pension Benefits | ||
Amounts recognized in other comprehensive (income) loss | ||
Net loss (gain) arising during the period | $ 23,936 | $ 17,208 |
Amortization of net gain (loss) | (8,634) | (7,980) |
Settlement gain (loss) | (12,313) | (1,565) |
Amortization of prior service credit (cost) | (255) | (269) |
Total | 2,734 | 7,394 |
Postretirement Medical Benefits | ||
Amounts recognized in other comprehensive (income) loss | ||
Net loss (gain) arising during the period | 577 | 2,840 |
Amortization of net gain (loss) | (334) | (285) |
Settlement gain (loss) | 0 | 0 |
Amortization of prior service credit (cost) | 344 | 766 |
Total | $ 587 | $ 3,321 |
Retirement Benefits (Amounts in
Retirement Benefits (Amounts included in accumulated other comprehensive (income) loss) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Pension Benefits | ||
Amounts recognized in accumulated ther comprehensive income | ||
Prior service cost (credit) | $ 1,746 | $ 1,920 |
Net loss | 111,598 | 108,689 |
Net before income taxes | 113,344 | 110,609 |
Income taxes | (39,289) | (38,182) |
Net | 74,055 | 72,427 |
Postretirement Medical Benefits | ||
Amounts recognized in accumulated ther comprehensive income | ||
Prior service cost (credit) | 0 | (344) |
Net loss | 6,836 | 6,593 |
Net before income taxes | 6,836 | 6,249 |
Income taxes | (2,461) | (2,250) |
Net | $ 4,375 | $ 3,999 |
Retirement Benefits (Amounts 84
Retirement Benefits (Amounts in AOCI expected to be recognized as cost in next year) (Details) $ in Thousands | Dec. 29, 2017USD ($) |
Pension Benefits | |
Expected to be recognized in following year | |
Prior service cost (credit) | $ 277 |
Net loss (gain) | 7,797 |
Net before income taxes | 8,074 |
Income taxes | (1,776) |
Net | 6,298 |
Postretirement Medical Benefits | |
Expected to be recognized in following year | |
Prior service cost (credit) | 0 |
Net loss (gain) | 543 |
Net before income taxes | 543 |
Income taxes | (119) |
Net | $ 424 |
Retirement Benefits (Assumption
Retirement Benefits (Assumptions used to determine obligations and cost) (Details) | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
U.S. Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.90% | 4.50% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.80% | 2.80% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 4.50% | 4.70% | 4.20% |
Rate of compensation increase | 2.80% | 3.00% | 3.00% |
Expected return on assets | 7.00% | 7.50% | 7.80% |
Foreign Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1.00% | 0.90% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 0.90% | 1.00% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 0.90% | 1.10% | 1.40% |
Rate of compensation increase | 1.00% | 1.30% | 1.30% |
Expected return on assets | 2.00% | 2.00% | 2.00% |
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 6.50% | ||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.90% | 4.50% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 4.50% | 4.70% | 4.20% |
Retirement Benefits (Estimated
Retirement Benefits (Estimated future benefit payments) (Details) $ in Thousands | Dec. 29, 2017USD ($) |
Pension Benefits | |
Estimated future benefit payments | |
2,018 | $ 13,385 |
2,019 | 13,977 |
2,020 | 15,584 |
2,021 | 16,576 |
2,022 | 17,881 |
Years 2023-2027 | 101,558 |
Postretirement Medical Benefits | |
Estimated future benefit payments | |
2,018 | 1,330 |
2,019 | 1,434 |
2,020 | 1,561 |
2,021 | 1,635 |
2,022 | 1,712 |
Years 2023-2027 | $ 8,971 |
Commitments and Contingencies87
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent Expense | $ 7.6 | $ 7.8 | $ 6.9 |
Open purchase order commitments | 97 | ||
Maximum purchase quantities and supplier inventory commitments | $ 33 | ||
Contractual Obligation, Due in 2018 | 3 | ||
Contractual Obligation, Due in 2019 | 3 | ||
Standby letters of credit commitments | 2 | ||
Guarantees of subsidiary debt | $ 10 |
Commitments and Contingencies88
Commitments and Contingencies (Lease Commitments) (Details) $ in Thousands | Dec. 29, 2017USD ($) |
Operating Leases, Future Minimum Payments Due | |
2,018 | $ 8,279 |
2,019 | 5,737 |
2,020 | 4,477 |
2,021 | 2,751 |
2,022 | 2,170 |
Thereafter | 4,779 |
Total | 28,193 |
Buildings | |
Operating Leases, Future Minimum Payments Due | |
2,018 | 4,911 |
2,019 | 3,659 |
2,020 | 3,113 |
2,021 | 1,923 |
2,022 | 1,524 |
Thereafter | 4,170 |
Total | 19,300 |
Vehicles & Equipment | |
Operating Leases, Future Minimum Payments Due | |
2,018 | 3,368 |
2,019 | 2,078 |
2,020 | 1,364 |
2,021 | 828 |
2,022 | 646 |
Thereafter | 609 |
Total | $ 8,893 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Jan. 02, 2015 | Jan. 22, 2016 | Jan. 23, 2015 | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | Dec. 26, 2014 | Jan. 20, 2015 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 278,789 | $ 259,849 | $ 394,488 | |||||
Geotech And Landtec | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash purchase consideration | $ 48,000 | |||||||
Goodwill | 28,000 | |||||||
Identifiable intangible assets | 24,000 | |||||||
Liabilities assumed | $ 4,000 | |||||||
HiP | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash purchase consideration | $ 161,000 | |||||||
Sales reported by acquired entity for last annual period | $ 38,000 | |||||||
Sales since the date of acquisition | $ 22,000 | $ 22,000 | $ 29,000 | |||||
Goodwill | $ 86,149 | |||||||
Identifiable intangible assets | 60,100 | |||||||
Liabilities assumed | $ 3,414 | |||||||
White Knight | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash purchase consideration | $ 16,000 | |||||||
Contingent consideration | 8,000 | |||||||
Goodwill | 12,000 | |||||||
Identifiable intangible assets | 9,000 | |||||||
Net tangible assets | $ 3,000 |
Acquisitions (Schedule of Recog
Acquisitions (Schedule of Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | Jan. 20, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 278,789 | $ 259,849 | $ 394,488 | |
HiP | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1,904 | |||
Accounts receivable | 4,714 | |||
Inventories | 7,605 | |||
Other current assets | 69 | |||
Property, plant and equipment | 1,962 | |||
Deferred income taxes | 1,840 | |||
Identifiable intangible assets | 60,100 | |||
Goodwill | 86,149 | |||
Total assets acquired | 164,343 | |||
Liabilities assumed | (3,414) | |||
Net assets acquired/total purchase consideration | $ 160,929 |
Acquisitions (Schedule of Ident
Acquisitions (Schedule of Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Jan. 02, 2015 | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 20, 2015 |
Identifiable Intangible Assets | ||||
Total identifiable intangible assets | $ 183,056 | $ 178,336 | ||
HiP | ||||
Identifiable Intangible Assets | ||||
Total identifiable intangible assets | $ 60,100 | |||
Customer relationships | HiP | ||||
Identifiable Intangible Assets | ||||
Finite-lived intangible assets | 47,100 | |||
Estimated Life (years) | 12 years | |||
Trade names | HiP | ||||
Identifiable Intangible Assets | ||||
Trade names | $ 13,000 |
Divestiture (Narrative) (Detail
Divestiture (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of held separate investment | $ 0 | $ 0 | $ 149,894 | |
Liquid Finishing | Discontinued Operations Sold | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale consideration | $ 610,000 | |||
Gain on sale of held separate investment | 150,000 | |||
Cash contribution expense | 7,000 | |||
Dividend from investments | 42,000 | |||
Net earnings | $ 141,000 |
Quarterly Financial Informati93
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 23, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 36,000 | ||||||||||
Net Sales | $ 374,859 | $ 379,812 | $ 379,483 | $ 340,590 | $ 349,063 | $ 327,192 | $ 348,126 | $ 304,912 | 1,474,744 | $ 1,329,293 | $ 1,286,485 |
Gross Profit | 200,370 | 203,465 | 203,941 | 185,273 | 184,704 | 176,598 | 185,141 | 161,796 | 793,049 | 708,239 | 684,700 |
Net Earnings | $ 36,392 | $ 75,460 | $ 79,828 | $ 60,732 | $ (104,213) | $ 54,388 | $ 50,947 | $ 39,552 | $ 252,412 | $ 40,674 | $ 345,713 |
Basic Net Earnings per Common Share | $ 0.22 | $ 0.45 | $ 0.48 | $ 0.36 | $ (0.62) | $ 0.33 | $ 0.31 | $ 0.24 | $ 1.50 | $ 0.24 | $ 2 |
Diluted Net Earnings per Common Share | 0.21 | 0.43 | 0.46 | 0.35 | (0.61) | 0.32 | 0.30 | 0.23 | 1.45 | 0.24 | 1.95 |
Cash Dividends Declared per Common Share | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.49 | $ 0.45 | $ 0.41 |
Goodwill, Impairment Loss, Net of Tax | $ 161,000 |
Schedule II - Valuation and Q94
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Dec. 25, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 12,700 | $ 10,400 | $ 8,100 |
Additions charged to costs and expenses | 32,200 | 29,000 | 26,100 |
Deductions from reserves | (31,200) | (26,500) | (23,900) |
Other additions (deductions) | 300 | (200) | 100 |
Balance at end of year | 14,000 | 12,700 | 10,400 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 3,900 | 3,000 | 2,400 |
Additions charged to costs and expenses | 1,600 | 1,200 | 1,500 |
Deductions from reserves | (1,700) | (100) | (900) |
Other additions (deductions) | 200 | (200) | 0 |
Balance at end of year | 4,000 | 3,900 | 3,000 |
Allowance for returns and credits | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 8,800 | 7,400 | 5,700 |
Additions charged to costs and expenses | 30,600 | 27,800 | 24,600 |
Deductions from reserves | (29,500) | (26,400) | (23,000) |
Other additions (deductions) | 100 | 0 | 100 |
Balance at end of year | $ 10,000 | $ 8,800 | $ 7,400 |