Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 27, 2019 | Feb. 04, 2020 | Jun. 28, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 27, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-09249 | ||
Entity Registrant Name | Graco Inc. | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0285640 | ||
Entity Address, Address Line One | 88 - 11th Avenue N.E. | ||
Entity Address, City or Town | Minneapolis, | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55413 | ||
City Area Code | (612) | ||
Local Phone Number | 623-6000 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | GGG | ||
Security Exchange Name | NYSE | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,243,652,599 | ||
Entity Common Stock, Shares Outstanding | 167,916,424 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000042888 | ||
Current Fiscal Year End Date | --12-27 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference [Text Block] | Portions of the Company’s definitive Proxy Statement for its Annual Meeting of Shareholders to be held on April 24, 2020 , are incorporated by reference into Part III, as specifically set forth in said Part III. |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Statement [Abstract] | |||
Net Sales | $ 1,646,045 | $ 1,653,292 | $ 1,474,744 |
Cost of products sold | 786,289 | 770,753 | 679,542 |
Gross Profit | 859,756 | 882,539 | 795,202 |
Product development | 67,557 | 63,124 | 59,217 |
Selling, marketing and distribution | 234,325 | 245,473 | 231,364 |
General and administrative | 133,418 | 137,515 | 125,876 |
Operating Earnings | 424,456 | 436,427 | 378,745 |
Interest expense | 13,110 | 14,385 | 16,202 |
Other expense, net | 5,469 | 11,276 | 15,449 |
Earnings Before Income Taxes | 405,877 | 410,766 | 347,094 |
Income taxes | 62,024 | 69,712 | 94,682 |
Net Earnings | $ 343,853 | $ 341,054 | $ 252,412 |
Basic Net Earnings per Common Share | $ 2.06 | $ 2.04 | $ 1.50 |
Diluted Net Earnings per Common Share | $ 2 | $ 1.97 | $ 1.45 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings | $ 343,853 | $ 341,054 | $ 252,412 |
Components of other comprehensive income (loss) | |||
Cumulative translation adjustment | 1,902 | (8,609) | 16,443 |
Pension and postretirement medical liability adjustment | (33,772) | 8,793 | (3,321) |
Income taxes - pension and postretirement medical liability | 6,940 | (1,799) | 1,317 |
Other comprehensive income (loss) | (24,930) | (1,615) | 14,439 |
Comprehensive Income | $ 318,923 | $ 339,439 | $ 266,851 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 220,973 | $ 132,118 |
Accounts receivable, less allowances of $5,400 and $5,300 | 267,345 | 274,608 |
Inventories | 273,233 | 283,982 |
Other current assets | 29,917 | 32,508 |
Total current assets | 791,468 | 723,216 |
Property, Plant and Equipment, net | 325,546 | 229,295 |
Goodwill | 307,663 | 293,846 |
Other Intangible Assets, net | 162,623 | 166,310 |
Operating Lease, Right-of-Use Asset | 29,891 | 0 |
Deferred Income Taxes | 39,327 | 32,055 |
Other Assets | 35,692 | 28,019 |
Total Assets | 1,692,210 | 1,472,741 |
Current Liabilities | ||
Notes payable to banks | 7,732 | 11,083 |
Trade accounts payable | 54,117 | 56,902 |
Salaries and incentives | 51,301 | 62,297 |
Dividends payable | 29,235 | 26,480 |
Other current liabilities | 142,937 | 143,041 |
Total current liabilities | 285,322 | 299,803 |
Long-term Debt | 164,298 | 266,391 |
Retirement Benefits and Deferred Compensation | 182,707 | 133,388 |
Operating Lease, Liability, Noncurrent | 24,176 | 0 |
Deferred Income Taxes | 10,776 | 16,586 |
Other Non-current Liabilities | 0 | 4,700 |
Shareholders’ Equity | ||
Common stock, $1 par value; 291,000,000 shares authorized; 165,170,888 and 169,318,926 shares outstanding in 2018 and 2017 | 167,287 | 165,171 |
Additional paid-in-capital | 578,440 | 510,825 |
Retained earnings | 448,991 | 220,734 |
Accumulated other comprehensive income (loss) | (169,787) | (144,857) |
Total shareholders’ equity | 1,024,931 | 751,873 |
Total Liabilities and Shareholders’ Equity | $ 1,692,210 | $ 1,472,741 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 27, 2019 | Dec. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for Credits | $ 5.3 | $ 5.3 |
Common stock, par value | $ 1 | $ 1 |
Common stock authorized | 291,000,000 | 291,000,000 |
Common stock outstanding | 167,286,836 | 165,170,888 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Cash Flows From Operating Activities | |||
Net Earnings | $ 343,853 | $ 341,054 | $ 252,412 |
Adjustments to reconcile net earnings to net cash provided by operating activities | |||
Depreciation and amortization | 48,911 | 47,754 | 45,583 |
Deferred income taxes | (6,411) | 15,405 | 34,446 |
Share-based compensation | 26,669 | 25,565 | 23,652 |
Change in | |||
Accounts receivable | 8,934 | (12,402) | (37,669) |
Inventories | 12,435 | (30,719) | (32,011) |
Trade accounts payable | (539) | (1,976) | 4,588 |
Salaries and incentives | (14,069) | 2,336 | 11,431 |
Retirement benefits and deferred compensation | 13,264 | (27,237) | 6,920 |
Other accrued liabilities | (11,510) | 7,517 | 35,321 |
Other | (2,803) | 688 | (6,809) |
Net cash provided by operating activities | 418,734 | 367,985 | 337,864 |
Cash Flows From Investing Activities | |||
Property, plant and equipment additions | (127,953) | (53,854) | (40,194) |
Acquisition of businesses, net of cash acquired | (26,577) | (10,769) | (27,905) |
Other | (939) | (1,624) | (348) |
Net cash provided by (used in) investing activities | (155,469) | (66,247) | (68,447) |
Cash Flows From Financing Activities | |||
Borrowings (payments) on short-term lines of credit, net | (3,341) | 4,931 | (3,026) |
Borrowings on long-term lines of credit | 105,423 | 620,746 | 315,920 |
Payments on long-term debt and lines of credit | (207,191) | (583,212) | (395,570) |
Common stock issued | 48,250 | 24,634 | 60,685 |
Common stock repurchased | (9,482) | (244,814) | (90,160) |
Taxes paid related to net share settlement of equity awards | (1,268) | (16,151) | (24,448) |
Cash dividends paid | (106,443) | (88,845) | (80,477) |
Net cash provided by (used in) financing activities | (174,052) | (282,711) | (217,076) |
Effect of exchange rate changes on cash | (358) | 187 | (1,032) |
Net increase (decrease) in cash and cash equivalents | 88,855 | 19,214 | 51,309 |
Cash, Cash Equivalents and Restricted Cash | |||
Beginning of year | 132,118 | 112,904 | 61,595 |
End of year | 220,973 | 132,118 | 112,904 |
Cash and cash equivalents | 220,973 | 132,118 | 103,662 |
Restricted cash | $ 0 | $ 0 | $ 9,242 |
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. 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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 9,255 | 1,657 | 7,598 | 0 | 0 |
Shares repurchased | (247,252) | (5,805) | (17,140) | (224,307) | 0 |
Stock compensation cost | 21,205 | 0 | 21,205 | 0 | 0 |
Restricted stock cancelled (issued) | (772) | 0 | (772) | 0 | 0 |
Net Earnings | 341,054 | 0 | 0 | 341,054 | 0 |
Dividends declared | (93,065) | 0 | 0 | (93,065) | 0 |
Reclassified to Retained Earnings | 0 | 0 | 0 | 15,453 | (15,453) |
Other comprehensive income (loss) | (1,615) | 0 | 0 | 0 | (1,615) |
Ending Balance at Dec. 28, 2018 | 751,873 | 165,171 | 510,825 | 220,734 | (144,857) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 46,981 | 2,274 | 44,707 | 0 | 0 |
Shares repurchased | (7,045) | (158) | (490) | (6,397) | 0 |
Stock compensation cost | 23,398 | 0 | 23,398 | 0 | 0 |
Net Earnings | 343,853 | 0 | 0 | 343,853 | 0 |
Dividends declared | (109,199) | 0 | 0 | (109,199) | 0 |
Other comprehensive income (loss) | (24,930) | 0 | 0 | 0 | (24,930) |
Ending Balance at Dec. 27, 2019 | $ 1,024,931 | $ 167,287 | $ 578,440 | $ 448,991 | $ (169,787) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 27, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 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 27, 2019 , December 28, 2018 and December 29, 2017 were 52-week years. 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 27, 2019 , all subsidiaries are 100 percent controlled by the Company. Certain prior year disclosures have been revised to conform with current year reporting. 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, 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 2019 2018 Assets Cash surrender value of life insurance 2 $ 17,702 $ 14,320 Forward exchange contracts 2 — 82 Total assets at fair value $ 17,702 $ 14,402 Liabilities Contingent consideration 3 $ 9,072 $ 7,200 Deferred compensation 2 4,719 4,203 Forward exchange contracts 2 87 — Total liabilities at fair value $ 13,878 $ 11,403 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 certain acquired businesses based on future revenues. 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 $256 million in 2019 and $262 million in 2018 . Other receivables totaled $11 million in 2019 and $13 million in 2018 . 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): 2019 2018 Prepaid income taxes $ 13,462 $ 14,762 Prepaid expenses and other 16,455 17,746 Total $ 29,917 $ 32,508 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 2019 . No impairment charges were recorded as a result of that review. There were no impairment charges in 2018 or 2017 . 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 29, 2017 $ 161,673 $ 97,971 $ 19,145 $ 278,789 Additions, adjustments from business acquisitions 17,544 170 409 18,123 Foreign currency translation (2,093 ) (973 ) — (3,066 ) Balance, December 28, 2018 177,124 97,168 19,554 293,846 Additions, adjustments from business acquisitions — 13,444 — 13,444 Foreign currency translation (12 ) 385 — 373 Balance, December 27, 2019 $ 177,112 $ 110,997 $ 19,554 $ 307,663 Components of other intangible assets were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of December 27, 2019 Cost $ 186,310 $ 20,413 $ 1,020 $ 61,920 $ 269,663 Accumulated amortization (80,764 ) (10,526 ) (650 ) — (91,940 ) Foreign currency translation (10,412 ) (885 ) (73 ) (3,730 ) (15,100 ) Book value $ 95,134 $ 9,002 $ 297 $ 58,190 $ 162,623 Weighted average life in years 13 10 4 N/A As of December 28, 2018 Cost $ 179,449 $ 18,571 $ 1,020 $ 59,537 $ 258,577 Accumulated amortization (67,322 ) (8,647 ) (439 ) — (76,408 ) Foreign currency translation (10,817 ) (895 ) (73 ) (4,074 ) (15,859 ) Book value $ 101,310 $ 9,029 $ 508 $ 55,463 $ 166,310 Weighted average life in years 13 10 4 N/A Amortization of intangibles was $15.5 million in 2019 , $15.6 million in 2018 and $14.8 million in 2017 . Estimated future annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2020 2021 2022 2023 2024 Thereafter Estimated Amortization Expense $ 16,095 $ 15,806 $ 15,716 $ 14,811 $ 13,249 $ 28,756 The Company completed business acquisitions in 2019 , 2018 and 2017 that were not material to the consolidated financial statements. Other Assets. Components of other assets were (in thousands): 2019 2018 Cash surrender value of life insurance $ 17,702 $ 14,320 Capitalized software 2,985 2,742 Equity method investment 7,603 7,252 Prepaid pension 2,931 — Deposits and other 4,471 3,705 Total $ 35,692 $ 28,019 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. The cash surrender value increased $3.4 million in 2019 , decreased $1.8 million in 2018 and increased $2.3 million in 2017 . 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): 2019 2018 Accrued self-insurance retentions $ 7,570 $ 7,870 Accrued warranty and service liabilities 12,785 11,056 Accrued trade promotions 8,390 11,449 Payable for employee stock purchases 13,722 11,916 Customer advances and deferred revenue 33,138 39,995 Income taxes payable 8,706 8,515 Operating lease liabilities, current 7,690 — Right of return refund liability 13,791 12,705 Other 37,145 39,535 Total $ 142,937 $ 143,041 Self-Insurance. The Company is self-insured for certain losses and costs relating to product liability, workers’ compensation, and employee medical benefit claims. 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 $7.6 million as of December 27, 2019 , and $7.9 million as of December 28, 2018 . 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): 2019 2018 Balance, beginning of year $ 11,056 $ 10,535 Charged to expense 10,350 8,963 Margin on parts sales reversed 2,576 1,193 Reductions for claims settled (11,197 ) (9,635 ) Balance, end of year $ 12,785 $ 11,056 Revenue Recognition . Accounting Policy Revenue is recognized at a single point in time upon the satisfaction of performance obligations, which occurs when control of the good or service transfers 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, and do not exceed one year. Standalone selling prices are determined based on the prices charged to customers for all material performance obligations. Variable consideration is accounted for as a price adjustment (sales adjustment). Following are examples of variable consideration that affect the Company’s reported revenue. Early payment discounts are provided to certain customers and within certain regions. Rights of return are typically contractually limited and amounts are estimable. The Company records a refund liability and establishes a recovery asset for the value of product expected to be returned at the time revenue is recognized. This includes promotions when, from time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. 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. Historically, sales returns have been approximately 3 percent of sales. Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include 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. Rebates are accrued based on the program rates and progress toward the probability weighted estimate of annual sales amount and sales growth. Additional promotions include cooperative advertising arrangements. 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. 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. The considerations payable to customers are deemed as broad based and are not recorded against net sales. Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold. Amounts billed to customers for shipping and handling are included in net sales. Deferred Revenues Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. The balance in the deferred revenue and customer advances was $33.1 million as of December 27, 2019 and $40.0 million as of December 28, 2018 . Net sales for the year included $39.4 million that was in deferred revenue and customer advances as of December 28, 2018 . Practical Expedients and Exemptions Shipping and handling activities that occur after control of the related good transfers are accounted for as fulfillment activities instead of assessing such activities as performance obligations. Sales taxes related to revenue producing transactions collected from the customer for a governmental authority are excluded from the transaction price. Revenue standard requirements are applied to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Promised goods or services are not assessed as performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes goods or services that are immaterial in the context of the contract is recognized before those immaterial goods or services are transferred to the customer, then the related costs to transfer those goods or services are accrued. Incremental costs of obtaining a contract are generally expensed when incurred because the amortization period would be less than one year. Such costs primarily relate to sales commissions and are recorded in selling, marketing and distribution expense. Disaggregated revenues by reporting segment and geography are disclosed in accordance with the revenue standard. See Note B , Segment Information. 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 27, 2019 , totaled $33 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): 2019 2018 Foreign Currency Contracts Assets $ — $ 322 Liabilities (87 ) (240 ) Net Assets (Liabilities) $ (87 ) $ 82 Recent Accounting Pronouncements. Credit Losses |
Segment Information
Segment Information | 12 Months Ended |
Dec. 27, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information | B. 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 solutions 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): 2019 2018 2017 Net Sales Industrial $ 747,396 $ 781,029 $ 691,978 Process 344,930 337,953 294,652 Contractor 553,719 534,310 488,114 Total $ 1,646,045 $ 1,653,292 $ 1,474,744 Operating Earnings Industrial $ 247,216 $ 271,307 $ 237,700 Process 76,367 68,514 52,216 Contractor 128,282 120,905 113,898 Unallocated corporate (expense) (27,409 ) (24,299 ) (25,069 ) Total $ 424,456 $ 436,427 $ 378,745 Assets Industrial $ 615,486 $ 640,683 Process 387,216 350,306 Contractor 368,832 283,727 Unallocated corporate 320,676 198,025 Total $ 1,692,210 $ 1,472,741 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, certain acquisition transaction costs, bad debt expense, charitable contributions and certain facility expenses. Unallocated assets include cash, allowances and valuation reserves, deferred income taxes, certain capital and other assets. Geographic information follows (in thousands): 2019 2018 2017 Net Sales (based on customer location) United States $ 840,659 $ 806,127 $ 743,344 Other countries 805,386 847,165 731,400 Total $ 1,646,045 $ 1,653,292 $ 1,474,744 Long-lived Assets United States $ 268,864 $ 178,331 Other countries 56,682 50,964 Total $ 325,546 $ 229,295 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 2019 , 2018 and 2017 |
Inventories
Inventories | 12 Months Ended |
Dec. 27, 2019 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major components of inventories were as follows (in thousands): 2019 2018 Finished products and components $ 132,128 $ 142,535 Products and components in various stages of completion 86,957 83,768 Raw materials and purchased components 117,026 115,705 Subtotal 336,111 342,008 Reduction to LIFO cost (62,878 ) (58,026 ) Total $ 273,233 $ 283,982 Inventories valued under the LIFO method were $140.3 million in 2019 and $154.4 million in 2018 . All other inventory was valued on the FIFO method. In 2019 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment were as follows (in thousands): 2019 2018 Land and improvements $ 29,817 $ 26,252 Buildings and improvements 182,195 157,385 Manufacturing equipment 320,240 317,011 Office, warehouse and automotive equipment 48,476 44,901 Additions in progress 99,476 24,484 Total property, plant and equipment 680,204 570,033 Accumulated depreciation (354,658 ) (340,738 ) Net property, plant and equipment $ 325,546 $ 229,295 Depreciation expense was $32.2 million in 2019 , $31.1 million in 2018 and $29.5 million in 2017 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings before income tax expense consist of (in thousands): 2019 2018 2017 Domestic $ 294,402 $ 310,999 $ 269,258 Foreign 111,475 99,767 77,836 Total $ 405,877 $ 410,766 $ 347,094 Income tax expense consists of (in thousands): 2019 2018 2017 Current Federal $ 39,015 $ 27,760 $ 41,996 State and local 3,347 3,398 3,088 Foreign 26,270 23,118 19,486 Current income tax expense 68,632 54,276 64,570 Deferred Domestic (151 ) 17,058 35,782 Foreign (6,457 ) (1,622 ) (5,670 ) Deferred income tax expense (benefit) (6,608 ) 15,436 30,112 Total $ 62,024 $ 69,712 $ 94,682 Income taxes paid were $67.1 million in 2019 , $58.1 million in 2018 and $61.0 million in 2017 . A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: 2019 2018 2017 Statutory tax rate 21 % 21 % 35 % Tax effect of international operations (1 ) — (6 ) State taxes, net of federal effect 1 1 1 U.S. general business tax credits (1 ) (1 ) (1 ) Domestic production deduction — — (2 ) Stock compensation excess tax benefit (3 ) (2 ) (10 ) Impact of 2017 Tax Cuts and Jobs Act — — 10 Global Intangible Low-taxed Income (GILTI) 1 1 — Foreign Derived Intangible Income (FDII) (3 ) (2 ) — Pension contribution — (1 ) — Effective tax rate 15 % 17 % 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): 2019 2018 Inventory valuations $ 966 $ (1,012 ) Self-insurance retention accruals 1,280 1,284 Warranty reserves 2,095 1,778 Vacation accruals 2,335 2,259 Bad debt reserves 3,142 2,785 Excess of tax over book depreciation and amortization (38,735 ) (37,208 ) Pension liability 32,079 22,884 Postretirement medical 4,625 4,491 Acquisition costs 407 601 Stock compensation 13,979 13,763 Deferred compensation 1,960 1,994 Net operating loss carryforward 929 — Deferred revenue 1,638 590 Other 1,851 1,260 Net deferred tax assets $ 28,551 $ 15,469 Total deferred tax assets were $68.9 million and $56.1 million , and total deferred tax liabilities were $40.4 million and $40.6 million on December 27, 2019 and December 28, 2018 . 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 2013 . The Company continues to assert that it will indefinitely reinvest earnings of foreign subsidiaries to support expansion of its international business. No additional income or withholding taxes have been provided for any remaining undistributed foreign earnings, as these amounts continue to be indefinitely reinvested in foreign operations. As of December 27, 2019 , the amount of cash held outside the U.S. was not significant to the Company’s liquidity and was available to fund investments abroad. 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. 27, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of debt follows (dollars in thousands): Average Interest Rate December 27, 2019 Maturity 2019 2018 Private placement unsecured fixed-rate notes Series B 5.01% March 2023 75,000 75,000 Series C 4.88% January 2020 — 75,000 Series D 5.35% July 2026 75,000 75,000 Unsecured revolving credit facility N/A December 2021 — — Unsecured revolving credit facility - CNH 4.41% N/A 14,298 41,391 Notes payable to banks 1.11% 2020 7,732 11,083 Total debt $ 172,030 $ 277,474 The estimated fair value of the fixed interest rate private placement debt was $165 million on December 27, 2019 and $235 million on December 28, 2018 . 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 September 24, 2018, the Company entered into a revolving credit agreement with a sole lender that was scheduled to expire in September 2020. The credit agreement provides up to $50 million of committed credit, available for general corporate purposes, working capital needs, share repurchases and acquisitions. Under the terms of the agreement, loans may be denominated in U.S. dollars or Chinese renminbi (offshore). 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 Chinese renminbi (offshore) bear interest at a LIBOR-based rate based on the Chinese offshore rate. Other terms of this revolving credit agreement are substantially similar to those of the Company’s revolving credit agreement that expires in December 2021. This revolver was amended effective January 29, 2020 to remove the expiration date, eliminate commitment fees, reduce interest rate margins and delete negative covenants regarding cash flow leverage and interest coverage ratios. On December 27, 2019 , the Company had $594 million in lines of credit, including the $550 million in committed credit facilities described above and $44 million with foreign banks. The unused portion of committed credit lines was $546 million as of December 27, 2019 . In addition, the Company has unused, uncommitted lines of credit with foreign banks totaling $27 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 27, 2019 . Annual maturities of debt are as follows (in thousands): 2020 2021 2022 2023 2024 Thereafter Maturities of debt $ 7,732 $ 14,298 $ — $ 75,000 $ — $ 75,000 Interest paid on debt was $13.5 million in 2019 , $14.0 million in 2018 and $16.5 million in 2017 . Subsequent Event On January 29, 2020 , the Company entered into a master note agreement with a sole lender that expires on January 29, 2023. The note agreement sets forth certain terms on which the Company may issue, and affiliates of the lender may purchase, up to $200 million of the Company ’ s senior notes. Interest on the senior notes will be determined at the time of issuance, at a fixed or LIBOR-based floating rate at the option of the Company, provided that the maximum aggregate principal amount of notes bearing interest at a floating rate may not exceed $100 million. Fixed rate notes issued under the agreement will mature no longer than 12 years from date of issuance and variable rate notes will mature no longer than 10 years from issuance. Under terms of the note agreement, the Company is required to maintain certain financial ratios as to cash flow leverage and interest coverage similar to the requirements of its other debt agreements. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 27, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity At December 27, 2019 , 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. 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 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 ) Other comprehensive income (loss) before reclassifications (196 ) (8,609 ) (8,805 ) Amounts reclassified from accumulated other comprehensive income 7,190 — 7,190 Reclassified to retained earnings (15,453 ) — (15,453 ) Balance, December 28, 2018 (86,889 ) (57,968 ) (144,857 ) Other comprehensive income (loss) before reclassifications (33,938 ) 1,902 (32,036 ) Amounts reclassified from accumulated other comprehensive income 7,106 — 7,106 Balance, December 27, 2019 $ (113,721 ) $ (56,066 ) $ (169,787 ) Amounts related to pension and postretirement medical adjustments are reclassified to non-service components of pension cost that are included within other non-operating expenses. Included in the 2017 reclassification is $12 million related to a pension settlement loss ( Note J ). In February 2018, FASB issued a new standard related to reclassification of certain tax effects from accumulated other comprehensive income (AOCI). The Company adopted the new standard in the first quarter of 2018. We elected to reclassify $15.5 million from accumulated other comprehensive income to retained earnings, representing the amount of “ stranded ” tax effects resulting from the change in the U.S. federal tax rate and the consequent revaluation of deferred tax assets related to pension and postretirement medical expense. On April 30, 2018, the Company repurchased 0.7 million shares of its common stock for $28.2 million from the President and Chief Executive Officer of the Company. The $43.33 per share purchase price represented a discount of 3 percent from the closing price of the Company’s stock immediately prior to the date of the transaction. The Company used available cash balances and borrowings under its revolving line of credit to fund the repurchase. |
Share-Based Awards, Purchase Pl
Share-Based Awards, Purchase Plans and Compensation Cost | 12 Months Ended |
Dec. 27, 2019 | |
Share-based Payment Arrangement [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 $3.3 million in 2019 , $4.4 million in 2018 and $4.5 million in 2017 . 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 15,016 shares in 2019 , 14,595 shares in 2018 and 20,646 shares in 2017 . 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 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 Granted 1,163 44.05 Exercised (2,081 ) 18.17 Canceled (102 ) 28.59 Outstanding, December 28, 2018 12,270 24.67 7,312 20.17 Granted 1,781 46.36 Exercised (1,886 ) 17.64 Canceled (53 ) 33.13 Outstanding, December 27, 2019 12,112 $ 28.91 8,231 $ 23.75 The following table summarizes information for options outstanding and exercisable at December 27, 2019 (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 - $20 2,513 2.1 $ 16.46 2,513 $ 16.46 $20 - $30 5,141 5.5 25.09 4,671 25.20 $30 - $40 1,549 7.2 30.74 731 30.77 $40 - $51 2,909 8.9 45.46 316 44.05 $5 - $51 12,112 5.8 $ 28.91 8,231 $ 23.75 The aggregate intrinsic value of exercisable option shares was $233.2 million as of December 27, 2019 , with a weighted average contractual term of 4.7 years . There were approximately 12.1 million vested share options and share options expected to vest as of December 27, 2019 , with an aggregate intrinsic value of $280.6 million , a weighted average exercise price of $28.91 and a weighted average contractual term of 5.8 years . Information related to options exercised follows (in thousands): 2019 2018 2017 Cash received $ 32,749 $ 11,158 $ 48,833 Aggregate intrinsic value 57,419 57,979 119,442 Tax benefit realized 12,000 12,000 42,000 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 397,833 shares in 2019 , 480,461 shares in 2018 and 499,956 shares in 2017 . Authorized Shares. In April 2019, shareholders of the Company approved the Graco Inc. 2019 Stock Incentive Plan. The Plan provides for issuance of up to 10 million shares of Graco common stock. 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 (2019) 10,000 9,413 Employee Stock Purchase Plan (2006) 21,000 12,897 Total 31,000 22,310 Amounts available for future issuance exclude outstanding options. Options outstanding as of December 27, 2019 , include options granted under three 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): 2019 2018 2017 Share-based compensation $ 26,669 $ 25,565 $ 23,652 Tax benefit 2,100 3,500 5,100 Share-based compensation, net of tax $ 24,569 $ 22,065 $ 18,552 As of December 27, 2019 , there was $9.9 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of approximately 2.5 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: 2019 2018 2017 Expected life in years 6.8 7.5 7.0 Interest rate 2.3 % 2.8 % 2.2 % Volatility 24.0 % 25.5 % 26.7 % Dividend yield 1.4 % 1.2 % 1.6 % Weighted average fair value per share $ 11.31 $ 12.84 $ 8.08 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: 2019 2018 2017 Expected life in years 1.0 1.0 1.0 Interest rate 2.6 % 2.1 % 0.9 % Volatility 22.7 % 21.3 % 22.3 % Dividend yield 1.4 % 1.2 % 1.5 % Weighted average fair value per share $ 11.36 $ 10.28 $ 7.32 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 27, 2019 | |
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): 2019 2018 2017 Net earnings available to common shareholders $ 343,853 $ 341,054 $ 252,412 Weighted average shares outstanding for basic earnings per share 166,515 167,364 167,925 Dilutive effect of stock options computed based on the treasury stock method using the average market price 5,109 5,849 6,393 Weighted average shares outstanding for diluted earnings per share 171,624 173,213 174,318 Basic earnings per share $ 2.06 $ 2.04 $ 1.50 Diluted earnings per share $ 2.00 $ 1.97 $ 1.45 Anti-dilutive stock options excluded from computations of diluted earnings per share totaled 1.1 million shares in 2019 and 1.1 million shares in 2018 . 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. 27, 2019 | |
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 contributed an amount equal to 1.5 percent of the employee’s compensation through 2019 and increased the contribution to 2.0 percent effective January 1, 2020. Employer contributions totaled $8.4 million in 2019 , $8.0 million in 2018 and $7.8 million in 2017 . 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, included in 2017 other non-operating expense. Remaining pension plan participants and related liabilities and assets were transferred into one of two new, 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 50 percent equity securities, 37 percent fixed income securities and 13 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 28 percent equity securities, 60 percent fixed income securities and 12 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 $2.5 million as of December 27, 2019 and $3.0 million as of December 28, 2018 . 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 2019 2018 Cash and cash equivalents (1) 1 $ (156 ) $ 927 Insurance contract 3 27,675 26,364 Investments categorized in fair value hierarchy 27,519 27,291 Equity U.S. Large Cap N/A 84,330 53,597 U.S. Small/Mid Cap N/A 9,202 7,602 International N/A 39,240 31,586 Total Equity 132,772 92,785 Fixed income N/A 107,832 76,213 Real estate and other N/A 35,821 72,964 Investments measured at net asset value 276,425 241,962 Total $ 303,944 $ 269,253 (1) Negative cash for 2019 represents unsettled pending trades within an investment that are classified in cash and cash equivalents until settled. The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands): 2019 2018 Balance, beginning of year $ 26,364 $ 26,411 Purchases 2,151 2,074 Redemptions (1,326 ) (2,086 ) Unrealized gains (losses) 486 (35 ) Balance, end of year $ 27,675 $ 26,364 The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 27, 2019 , and December 28, 2018 , and a statement of the funded status as of the same dates (in thousands): Pension Benefits Postretirement Medical Benefits 2019 2018 2019 2018 Change in benefit obligation Obligation, beginning of year $ 371,282 $ 393,559 $ 27,778 $ 27,771 Service cost 7,735 8,487 545 636 Interest cost 15,103 13,424 1,162 1,084 Actuarial loss (gain) 67,756 (30,452 ) 2,532 (397 ) Benefit payments (12,594 ) (11,265 ) (1,371 ) (1,316 ) Settlements — (1,561 ) — — Exchange rate changes 137 (910 ) — — Obligation, end of year $ 449,419 $ 371,282 $ 30,646 $ 27,778 Change in plan assets Fair value, beginning of year $ 269,253 $ 254,186 $ — $ — Actual return on assets 44,743 (13,875 ) — — Employer contributions 2,276 42,023 1,371 1,316 Benefit payments (12,594 ) (11,265 ) (1,371 ) (1,316 ) Settlements — (1,561 ) — — Exchange rate changes 266 (255 ) — — Fair value, end of year $ 303,944 $ 269,253 $ — $ — Funded status $ (145,475 ) $ (102,029 ) $ (30,646 ) $ (27,778 ) Amounts recognized in consolidated balance sheets Non-current assets $ 2,931 $ — $ — $ — Current liabilities 1,824 1,453 1,656 1,573 Non-current liabilities 146,582 100,576 28,990 26,205 Net $ 145,475 $ 102,029 $ 30,646 $ 27,778 Changes in discount rates used to value pension obligations were the main drivers of large actuarial losses (gains) in 2019 and 2018. In the third quarter of 2018, the Company made a $40 million voluntary contribution to one of its U.S. qualified defined benefit plans. The accumulated benefit obligation as of year-end for all defined benefit pension plans was $410 million for 2019 and $344 million for 2018 . Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): 2019 2018 Projected benefit obligation $ 402,900 $ 371,282 Accumulated benefit obligation 363,497 343,705 Fair value of plan assets 254,493 269,253 The components of net periodic benefit cost for the plans for 2019 , 2018 and 2017 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2019 2018 2017 2019 2018 2017 Service cost-benefits earned during the period $ 7,735 $ 8,487 $ 7,675 $ 545 $ 636 $ 601 Interest cost on projected benefit obligation 15,103 13,424 15,044 1,162 1,084 1,093 Expected return on assets (17,152 ) (17,447 ) (17,186 ) — — — Amortization of prior service cost (credit) 279 279 255 — — (344 ) Amortization of net loss (gain) 8,392 7,931 8,634 273 646 334 Settlement loss (gain) — 184 12,313 — — — Cost of pension plans which are not significant and have not adopted ASC 715 110 106 122 N/A N/A N/A Net periodic benefit cost $ 14,467 $ 12,964 $ 26,857 $ 1,980 $ 2,366 $ 1,684 Net periodic benefit cost is disaggregated between service cost presented as operating expense and other components of pension cost presented as non-operating expense. Other components of pension cost and changes in cash surrender value of insurance contracts intended to fund certain non-qualified pension and deferred compensation arrangements included in non-operating expenses totaled $5 million in 2019, $8 million in 2018 and $18 million in 2017. Amounts recognized in other comprehensive (income) loss in 2019 and 2018 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2019 2018 2019 2018 Net loss (gain) arising during the period $ 40,184 $ 644 $ 2,532 $ (397 ) Amortization of net gain (loss) (8,392 ) (7,931 ) (273 ) (646 ) Settlement gain (loss) — (184 ) — — Amortization of prior service credit (cost) (279 ) (279 ) — — Total $ 31,513 $ (7,750 ) $ 2,259 $ (1,043 ) Amounts included in accumulated other comprehensive (income) loss as of December 27, 2019 and December 28, 2018 , that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2019 2018 2019 2018 Prior service cost (credit) $ 1,197 $ 1,465 $ — $ — Net loss 135,910 104,127 8,052 5,793 Net before income taxes 137,107 105,592 8,052 5,793 Income taxes (29,666 ) (23,221 ) (1,772 ) (1,275 ) Net $ 107,441 $ 82,371 $ 6,280 $ 4,518 Amounts included in accumulated other comprehensive (income) loss that are expected to be recognized as components of net periodic benefit cost in 2020 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits Prior service cost (credit) $ 282 $ — Net loss (gain) 10,354 707 Net before income taxes 10,636 707 Income taxes (2,340 ) (156 ) Net $ 8,296 $ 551 Assumptions used to determine the Company’s benefit obligations are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2019 2018 2019 2018 U.S. Plans Discount rate 3.5 % 4.5 % 3.4 % 4.5 % Rate of compensation increase 2.8 % 2.8 % N/A N/A Non-U.S. Plans Discount rate 0.4 % 1.3 % N/A N/A Rate of compensation increase 1.3 % 1.4 % 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 2019 2018 2017 2019 2018 2017 U.S. Plans Discount rate 4.5 % 3.9 % 4.5 % 4.5 % 3.9 % 4.5 % Rate of compensation increase 2.8 % 2.8 % 2.8 % N/A N/A N/A Expected return on assets 7.0 % 7.1 % 7.0 % N/A N/A N/A Non-U.S. Plans Discount rate 1.3 % 1.0 % 0.9 % N/A N/A N/A Rate of compensation increase 1.4 % 0.9 % 1.0 % 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 advisers, 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 5.8 percent for 2020 , 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 27, 2019 , 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 $1.8 million to its unfunded pension plans and $1.7 million to the postretirement medical plan in 2020 . The Company expects to utilize available credits to satisfy any required contributions to the funded pension plans under minimum funding requirements for 2020 . Estimated future benefit payments are as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2020 $ 15,337 $ 1,656 2021 16,520 1,707 2022 17,917 1,731 2023 19,173 1,727 2024 21,281 1,703 Years 2025-2029 115,303 8,357 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Liabilities and Assets The Company adopted ASU No. 2016-02— Leases (Topic 842) as of December 29, 2018, the beginning of its fiscal year 2019. Using the modified retrospective approach with transition relief, the Company recorded operating lease assets and liabilities of $35 million as of December 29, 2018, and made no adjustments to retained earnings. Adoption of the new standard did not materially impact consolidated net earnings and cash flows. Electing the package of practical expedients permitted under transition guidance, the Company did not reassess previous conclusions about whether existing contracts contained a lease, historical lease classification, or initial direct costs. Electing the hindsight practical expedient to determine the lease term for existing leases did not result in any changes to existing lease terms. The Company elected not to apply recognition requirements to short term leases with terms of twelve months or less across all asset classes. The Company elected to analyze vehicle assets using the portfolio approach. Lastly, the Company elected as an accounting policy not to separate the lease and non-lease components in the lease payments across all asset classes. The Company owns most of the assets used in its operations, but leases certain buildings and land, vehicles, office equipment and other rental assets. The Company determines if an arrangement is a lease at inception. All of the Company ’ s current lease arrangements are classified as operating leases. The Company historically has not entered into financing leases. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments. As of December 27, 2019 , the weighted average remaining lease term was 5.7 years and the weighted average discount rate used to determine the operating lease liability was 3.9 percent . For the twelve months ended December 27, 2019 , expense related to operating leases was $11.5 million , operating lease payments included in operating cash flows totaled $11.0 million , and non-cash additions to operating lease assets totaled $2.4 million . Variable lease costs and short term lease costs were not significant for the twelve months ended December 27, 2019 . As of December 27, 2019 , future maturities of operating lease liabilities were as follows (in thousands): 2020 $ 8,222 2021 8,237 2022 5,657 2023 4,226 2024 1,843 Thereafter 7,490 Total lease payments $ 35,675 Present value adjustment (3,809 ) Operating lease liabilities $ 31,866 Aggregate annual rental commitments under operating leases with noncancelable terms of more than one year at December 28, 2018 were reported under previous lease accounting standards as follows (in thousands): 2019 $ 11,613 2020 8,759 2021 6,745 2022 5,102 2023 3,721 Thereafter 2,340 Total $ 38,280 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 $83 million at December 27, 2019 . 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 $44 million . The Company enters into contracts with vendors to receive services. Commitments under these service contracts with noncancelable terms of more than one year totaled $10 million in 2020 , $8 million in 2021 , $2 million in 2022 and $1 million thereafter. In addition, the Company could be obligated to perform under standby letters of credit totaling $2 million at December 27, 2019 . The Company has also guaranteed the debt of its subsidiaries for up to $42 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. |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 27, 2019 | |
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 2019 Net Sales $ 404,870 $ 428,328 $ 400,555 $ 412,292 Gross Profit 216,042 226,954 207,379 209,381 Net Earnings 86,749 88,137 84,132 84,835 Basic Net Earnings per Common Share $ 0.52 $ 0.53 $ 0.50 $ 0.51 Diluted Net Earnings per Common Share 0.51 0.51 0.49 0.49 Cash Dividends Declared per Common Share 0.16 0.16 0.16 0.18 2018 Net Sales $ 406,348 $ 424,570 $ 415,936 $ 406,438 Gross Profit 222,421 229,903 221,459 208,756 Net Earnings 85,510 89,140 92,681 73,723 Basic Net Earnings per Common Share $ 0.51 $ 0.53 $ 0.55 $ 0.44 Diluted Net Earnings per Common Share 0.49 0.51 0.54 0.43 Cash Dividends Declared per Common Share 0.13 0.13 0.13 0.16 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 27, 2019 | |
SEC Schedule, 12-09, 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 Balance, December 30, 2016 $ 3,900 Additions charged to costs and expenses 1,600 Deductions from reserves (1) (1,700 ) Other additions (deductions) (2) 200 Balance, December 29, 2017 4,000 Additions charged to costs and expenses 1,400 Deductions from reserves (1) (900 ) Other additions (deductions) (2) 300 Balance, December 28, 2018 4,800 Additions charged to costs and expenses 800 Deductions from reserves (1) (900 ) Other additions (deductions) (2) 100 Balance, December 27, 2019 $ 4,800 (1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (2) Includes amounts assumed or established in connection with acquisitions and effects of foreign currency translation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 27, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | 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 27, 2019 , December 28, 2018 and December 29, 2017 |
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 27, 2019 |
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, 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 Measurement Cash Surrender Value, Policy [Policy Text Block] | 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. |
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. |
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. |
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. |
Acquisitions | The Company completed business acquisitions in 2019 , 2018 and 2017 that were not material to the consolidated financial statements. |
Life Settlement Contracts, Policy [Policy Text Block] | 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. |
Capitalized Software | Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. |
Self Insurance Reserve [Policy Text Block] | The Company is self-insured for certain losses and costs relating to product liability, workers’ compensation, and employee medical benefit claims. 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 $7.6 million as of December 27, 2019 , and $7.9 million as of December 28, 2018 . |
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 from Contract with Customer [Policy Text Block] | Accounting Policy Revenue is recognized at a single point in time upon the satisfaction of performance obligations, which occurs when control of the good or service transfers 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, and do not exceed one year. Standalone selling prices are determined based on the prices charged to customers for all material performance obligations. Variable consideration is accounted for as a price adjustment (sales adjustment). Following are examples of variable consideration that affect the Company’s reported revenue. Early payment discounts are provided to certain customers and within certain regions. Rights of return are typically contractually limited and amounts are estimable. The Company records a refund liability and establishes a recovery asset for the value of product expected to be returned at the time revenue is recognized. This includes promotions when, from time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. 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. Historically, sales returns have been approximately 3 percent of sales. Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include 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. Rebates are accrued based on the program rates and progress toward the probability weighted estimate of annual sales amount and sales growth. Additional promotions include cooperative advertising arrangements. 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. 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. The considerations payable to customers are deemed as broad based and are not recorded against net sales. Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold. Amounts billed to customers for shipping and handling are included in net sales. Deferred Revenues Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. The balance in the deferred revenue and customer advances was $33.1 million as of December 27, 2019 and $40.0 million as of December 28, 2018 . Net sales for the year included $39.4 million that was in deferred revenue and customer advances as of December 28, 2018 . Practical Expedients and Exemptions Shipping and handling activities that occur after control of the related good transfers are accounted for as fulfillment activities instead of assessing such activities as performance obligations. Sales taxes related to revenue producing transactions collected from the customer for a governmental authority are excluded from the transaction price. Revenue standard requirements are applied to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Promised goods or services are not assessed as performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes goods or services that are immaterial in the context of the contract is recognized before those immaterial goods or services are transferred to the customer, then the related costs to transfer those goods or services are accrued. Incremental costs of obtaining a contract are generally expensed when incurred because the amortization period would be less than one year. Such costs primarily relate to sales commissions and are recorded in selling, marketing and distribution expense. Disaggregated revenues by reporting segment and geography are disclosed in accordance with the revenue standard. See Note B , Segment Information. |
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 27, 2019 , totaled $33 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. |
Recent Accounting Pronouncements | Credit Losses In June 2016, the FASB issued a final standard on accounting for credit losses. The new standard is effective for the Company in fiscal 2020 and requires a change in credit loss calculations using the expected loss method. The Company has determined there will be no significant impact on earnings or financial condition from the adoption of the new standard. Accounting policies and systems have been updated as needed and disclosures required by the new standard will be provided in the Company's first quarter 2020 reporting cycle. |
Segment Information Segment Acc
Segment Information Segment Accounting Policies (Policies) | 12 Months Ended |
Dec. 27, 2019 | |
Segment Accounting Policies [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | 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. |
Commitments and Contingencies L
Commitments and Contingencies Leases (Policies) | 12 Months Ended |
Dec. 27, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Operating Lease Liabilities and Assets The Company adopted ASU No. 2016-02— Leases (Topic 842) as of December 29, 2018, the beginning of its fiscal year 2019. Using the modified retrospective approach with transition relief, the Company recorded operating lease assets and liabilities of $35 million as of December 29, 2018, and made no adjustments to retained earnings. Adoption of the new standard did not materially impact consolidated net earnings and cash flows. Electing the package of practical expedients permitted under transition guidance, the Company did not reassess previous conclusions about whether existing contracts contained a lease, historical lease classification, or initial direct costs. Electing the hindsight practical expedient to determine the lease term for existing leases did not result in any changes to existing lease terms. The Company elected not to apply recognition requirements to short term leases with terms of twelve months or less across all asset classes. The Company elected to analyze vehicle assets using the portfolio approach. Lastly, the Company elected as an accounting policy not to separate the lease and non-lease components in the lease payments across all asset classes. The Company owns most of the assets used in its operations, but leases certain buildings and land, vehicles, office equipment and other rental assets. The Company determines if an arrangement is a lease at inception. All of the Company ’ s current lease arrangements are classified as operating leases. The Company historically has not entered into financing leases. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments. As of December 27, 2019 , the weighted average remaining lease term was 5.7 years and the weighted average discount rate used to determine the operating lease liability was 3.9 percent . For the twelve months ended December 27, 2019 , expense related to operating leases was $11.5 million , operating lease payments included in operating cash flows totaled $11.0 million , and non-cash additions to operating lease assets totaled $2.4 million . Variable lease costs and short term lease costs were not significant for the twelve months ended December 27, 2019 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
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 2019 2018 Assets Cash surrender value of life insurance 2 $ 17,702 $ 14,320 Forward exchange contracts 2 — 82 Total assets at fair value $ 17,702 $ 14,402 Liabilities Contingent consideration 3 $ 9,072 $ 7,200 Deferred compensation 2 4,719 4,203 Forward exchange contracts 2 87 — Total liabilities at fair value $ 13,878 $ 11,403 |
Other Current Assets | Amounts included in other current assets were (in thousands): 2019 2018 Prepaid income taxes $ 13,462 $ 14,762 Prepaid expenses and other 16,455 17,746 Total $ 29,917 $ 32,508 |
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 |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amounts of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, December 29, 2017 $ 161,673 $ 97,971 $ 19,145 $ 278,789 Additions, adjustments from business acquisitions 17,544 170 409 18,123 Foreign currency translation (2,093 ) (973 ) — (3,066 ) Balance, December 28, 2018 177,124 97,168 19,554 293,846 Additions, adjustments from business acquisitions — 13,444 — 13,444 Foreign currency translation (12 ) 385 — 373 Balance, December 27, 2019 $ 177,112 $ 110,997 $ 19,554 $ 307,663 |
Intangible Assets | Components of other intangible assets were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of December 27, 2019 Cost $ 186,310 $ 20,413 $ 1,020 $ 61,920 $ 269,663 Accumulated amortization (80,764 ) (10,526 ) (650 ) — (91,940 ) Foreign currency translation (10,412 ) (885 ) (73 ) (3,730 ) (15,100 ) Book value $ 95,134 $ 9,002 $ 297 $ 58,190 $ 162,623 Weighted average life in years 13 10 4 N/A As of December 28, 2018 Cost $ 179,449 $ 18,571 $ 1,020 $ 59,537 $ 258,577 Accumulated amortization (67,322 ) (8,647 ) (439 ) — (76,408 ) Foreign currency translation (10,817 ) (895 ) (73 ) (4,074 ) (15,859 ) Book value $ 101,310 $ 9,029 $ 508 $ 55,463 $ 166,310 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): 2020 2021 2022 2023 2024 Thereafter Estimated Amortization Expense $ 16,095 $ 15,806 $ 15,716 $ 14,811 $ 13,249 $ 28,756 |
Components of Other Assets | Components of other assets were (in thousands): 2019 2018 Cash surrender value of life insurance $ 17,702 $ 14,320 Capitalized software 2,985 2,742 Equity method investment 7,603 7,252 Prepaid pension 2,931 — Deposits and other 4,471 3,705 Total $ 35,692 $ 28,019 |
Components of Other Current Liabilities | Components of other current liabilities were (in thousands): 2019 2018 Accrued self-insurance retentions $ 7,570 $ 7,870 Accrued warranty and service liabilities 12,785 11,056 Accrued trade promotions 8,390 11,449 Payable for employee stock purchases 13,722 11,916 Customer advances and deferred revenue 33,138 39,995 Income taxes payable 8,706 8,515 Operating lease liabilities, current 7,690 — Right of return refund liability 13,791 12,705 Other 37,145 39,535 Total $ 142,937 $ 143,041 |
Accrued Warranty Liability Activity | Following is a summary of activity in accrued warranty and service liabilities (in thousands): 2019 2018 Balance, beginning of year $ 11,056 $ 10,535 Charged to expense 10,350 8,963 Margin on parts sales reversed 2,576 1,193 Reductions for claims settled (11,197 ) (9,635 ) Balance, end of year $ 12,785 $ 11,056 |
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): 2019 2018 Foreign Currency Contracts Assets $ — $ 322 Liabilities (87 ) (240 ) Net Assets (Liabilities) $ (87 ) $ 82 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Information - Operations and Assets | Segments information follows (in thousands): 2019 2018 2017 Net Sales Industrial $ 747,396 $ 781,029 $ 691,978 Process 344,930 337,953 294,652 Contractor 553,719 534,310 488,114 Total $ 1,646,045 $ 1,653,292 $ 1,474,744 Operating Earnings Industrial $ 247,216 $ 271,307 $ 237,700 Process 76,367 68,514 52,216 Contractor 128,282 120,905 113,898 Unallocated corporate (expense) (27,409 ) (24,299 ) (25,069 ) Total $ 424,456 $ 436,427 $ 378,745 Assets Industrial $ 615,486 $ 640,683 Process 387,216 350,306 Contractor 368,832 283,727 Unallocated corporate 320,676 198,025 Total $ 1,692,210 $ 1,472,741 |
Segment Reporting Information - Geographic | Geographic information follows (in thousands): 2019 2018 2017 Net Sales (based on customer location) United States $ 840,659 $ 806,127 $ 743,344 Other countries 805,386 847,165 731,400 Total $ 1,646,045 $ 1,653,292 $ 1,474,744 Long-lived Assets United States $ 268,864 $ 178,331 Other countries 56,682 50,964 Total $ 325,546 $ 229,295 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Inventory, Net [Abstract] | |
Components of Inventories | Major components of inventories were as follows (in thousands): 2019 2018 Finished products and components $ 132,128 $ 142,535 Products and components in various stages of completion 86,957 83,768 Raw materials and purchased components 117,026 115,705 Subtotal 336,111 342,008 Reduction to LIFO cost (62,878 ) (58,026 ) Total $ 273,233 $ 283,982 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment were as follows (in thousands): 2019 2018 Land and improvements $ 29,817 $ 26,252 Buildings and improvements 182,195 157,385 Manufacturing equipment 320,240 317,011 Office, warehouse and automotive equipment 48,476 44,901 Additions in progress 99,476 24,484 Total property, plant and equipment 680,204 570,033 Accumulated depreciation (354,658 ) (340,738 ) Net property, plant and equipment $ 325,546 $ 229,295 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Tax Expense | Earnings before income tax expense consist of (in thousands): 2019 2018 2017 Domestic $ 294,402 $ 310,999 $ 269,258 Foreign 111,475 99,767 77,836 Total $ 405,877 $ 410,766 $ 347,094 |
Components of Income Tax Expense | Income tax expense consists of (in thousands): 2019 2018 2017 Current Federal $ 39,015 $ 27,760 $ 41,996 State and local 3,347 3,398 3,088 Foreign 26,270 23,118 19,486 Current income tax expense 68,632 54,276 64,570 Deferred Domestic (151 ) 17,058 35,782 Foreign (6,457 ) (1,622 ) (5,670 ) Deferred income tax expense (benefit) (6,608 ) 15,436 30,112 Total $ 62,024 $ 69,712 $ 94,682 |
Federal Tax Rate Reconciliation | A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: 2019 2018 2017 Statutory tax rate 21 % 21 % 35 % Tax effect of international operations (1 ) — (6 ) State taxes, net of federal effect 1 1 1 U.S. general business tax credits (1 ) (1 ) (1 ) Domestic production deduction — — (2 ) Stock compensation excess tax benefit (3 ) (2 ) (10 ) Impact of 2017 Tax Cuts and Jobs Act — — 10 Global Intangible Low-taxed Income (GILTI) 1 1 — Foreign Derived Intangible Income (FDII) (3 ) (2 ) — Pension contribution — (1 ) — Effective tax rate 15 % 17 % 27 % |
Deferred Income Taxes | The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands): 2019 2018 Inventory valuations $ 966 $ (1,012 ) Self-insurance retention accruals 1,280 1,284 Warranty reserves 2,095 1,778 Vacation accruals 2,335 2,259 Bad debt reserves 3,142 2,785 Excess of tax over book depreciation and amortization (38,735 ) (37,208 ) Pension liability 32,079 22,884 Postretirement medical 4,625 4,491 Acquisition costs 407 601 Stock compensation 13,979 13,763 Deferred compensation 1,960 1,994 Net operating loss carryforward 929 — Deferred revenue 1,638 590 Other 1,851 1,260 Net deferred tax assets $ 28,551 $ 15,469 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of debt follows (dollars in thousands): Average Interest Rate December 27, 2019 Maturity 2019 2018 Private placement unsecured fixed-rate notes Series B 5.01% March 2023 75,000 75,000 Series C 4.88% January 2020 — 75,000 Series D 5.35% July 2026 75,000 75,000 Unsecured revolving credit facility N/A December 2021 — — Unsecured revolving credit facility - CNH 4.41% N/A 14,298 41,391 Notes payable to banks 1.11% 2020 7,732 11,083 Total debt $ 172,030 $ 277,474 |
Annual Maturities of Debt | Annual maturities of debt are as follows (in thousands): 2020 2021 2022 2023 2024 Thereafter Maturities of debt $ 7,732 $ 14,298 $ — $ 75,000 $ — $ 75,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
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 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 ) Other comprehensive income (loss) before reclassifications (196 ) (8,609 ) (8,805 ) Amounts reclassified from accumulated other comprehensive income 7,190 — 7,190 Reclassified to retained earnings (15,453 ) — (15,453 ) Balance, December 28, 2018 (86,889 ) (57,968 ) (144,857 ) Other comprehensive income (loss) before reclassifications (33,938 ) 1,902 (32,036 ) Amounts reclassified from accumulated other comprehensive income 7,106 — 7,106 Balance, December 27, 2019 $ (113,721 ) $ (56,066 ) $ (169,787 ) |
Share-Based Awards, Purchase _2
Share-Based Awards, Purchase Plans and Compensation Cost (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Share-based Payment Arrangement [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 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 Granted 1,163 44.05 Exercised (2,081 ) 18.17 Canceled (102 ) 28.59 Outstanding, December 28, 2018 12,270 24.67 7,312 20.17 Granted 1,781 46.36 Exercised (1,886 ) 17.64 Canceled (53 ) 33.13 Outstanding, December 27, 2019 12,112 $ 28.91 8,231 $ 23.75 |
Options Outstanding and Exercisable | The following table summarizes information for options outstanding and exercisable at December 27, 2019 (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 - $20 2,513 2.1 $ 16.46 2,513 $ 16.46 $20 - $30 5,141 5.5 25.09 4,671 25.20 $30 - $40 1,549 7.2 30.74 731 30.77 $40 - $51 2,909 8.9 45.46 316 44.05 $5 - $51 12,112 5.8 $ 28.91 8,231 $ 23.75 |
Cash Proceeds Received and Tax Benefit from Share-based Payment Awards [Table Text Block] | Information related to options exercised follows (in thousands): 2019 2018 2017 Cash received $ 32,749 $ 11,158 $ 48,833 Aggregate intrinsic value 57,419 57,979 119,442 Tax benefit realized 12,000 12,000 42,000 |
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 (2019) 10,000 9,413 Employee Stock Purchase Plan (2006) 21,000 12,897 Total 31,000 22,310 |
Share-based compensation cost | The Company recognized share-based compensation cost as follows (in thousands): 2019 2018 2017 Share-based compensation $ 26,669 $ 25,565 $ 23,652 Tax benefit 2,100 3,500 5,100 Share-based compensation, net of tax $ 24,569 $ 22,065 $ 18,552 |
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: 2019 2018 2017 Expected life in years 6.8 7.5 7.0 Interest rate 2.3 % 2.8 % 2.2 % Volatility 24.0 % 25.5 % 26.7 % Dividend yield 1.4 % 1.2 % 1.6 % Weighted average fair value per share $ 11.31 $ 12.84 $ 8.08 |
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: 2019 2018 2017 Expected life in years 1.0 1.0 1.0 Interest rate 2.6 % 2.1 % 0.9 % Volatility 22.7 % 21.3 % 22.3 % Dividend yield 1.4 % 1.2 % 1.5 % Weighted average fair value per share $ 11.36 $ 10.28 $ 7.32 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
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): 2019 2018 2017 Net earnings available to common shareholders $ 343,853 $ 341,054 $ 252,412 Weighted average shares outstanding for basic earnings per share 166,515 167,364 167,925 Dilutive effect of stock options computed based on the treasury stock method using the average market price 5,109 5,849 6,393 Weighted average shares outstanding for diluted earnings per share 171,624 173,213 174,318 Basic earnings per share $ 2.06 $ 2.04 $ 1.50 Diluted earnings per share $ 2.00 $ 1.97 $ 1.45 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Retirement Benefits [Abstract] | |
Plan assets by category and fair value measurement level | Assets of all plans by category and fair value measurement level were as follows (in thousands): Level 2019 2018 Cash and cash equivalents (1) 1 $ (156 ) $ 927 Insurance contract 3 27,675 26,364 Investments categorized in fair value hierarchy 27,519 27,291 Equity U.S. Large Cap N/A 84,330 53,597 U.S. Small/Mid Cap N/A 9,202 7,602 International N/A 39,240 31,586 Total Equity 132,772 92,785 Fixed income N/A 107,832 76,213 Real estate and other N/A 35,821 72,964 Investments measured at net asset value 276,425 241,962 Total $ 303,944 $ 269,253 (1) Negative cash for 2019 represents unsettled pending trades within an investment that are classified in cash and cash equivalents until settled. |
Level 3 plan assets activity | The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands): 2019 2018 Balance, beginning of year $ 26,364 $ 26,411 Purchases 2,151 2,074 Redemptions (1,326 ) (2,086 ) Unrealized gains (losses) 486 (35 ) Balance, end of year $ 27,675 $ 26,364 |
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 27, 2019 , and December 28, 2018 , and a statement of the funded status as of the same dates (in thousands): Pension Benefits Postretirement Medical Benefits 2019 2018 2019 2018 Change in benefit obligation Obligation, beginning of year $ 371,282 $ 393,559 $ 27,778 $ 27,771 Service cost 7,735 8,487 545 636 Interest cost 15,103 13,424 1,162 1,084 Actuarial loss (gain) 67,756 (30,452 ) 2,532 (397 ) Benefit payments (12,594 ) (11,265 ) (1,371 ) (1,316 ) Settlements — (1,561 ) — — Exchange rate changes 137 (910 ) — — Obligation, end of year $ 449,419 $ 371,282 $ 30,646 $ 27,778 Change in plan assets Fair value, beginning of year $ 269,253 $ 254,186 $ — $ — Actual return on assets 44,743 (13,875 ) — — Employer contributions 2,276 42,023 1,371 1,316 Benefit payments (12,594 ) (11,265 ) (1,371 ) (1,316 ) Settlements — (1,561 ) — — Exchange rate changes 266 (255 ) — — Fair value, end of year $ 303,944 $ 269,253 $ — $ — Funded status $ (145,475 ) $ (102,029 ) $ (30,646 ) $ (27,778 ) |
Amounts recognized in balance sheets | Amounts recognized in consolidated balance sheets Non-current assets $ 2,931 $ — $ — $ — Current liabilities 1,824 1,453 1,656 1,573 Non-current liabilities 146,582 100,576 28,990 26,205 Net $ 145,475 $ 102,029 $ 30,646 $ 27,778 |
Accumulated benefit obligation in excess of plan assets | Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): 2019 2018 Projected benefit obligation $ 402,900 $ 371,282 Accumulated benefit obligation 363,497 343,705 Fair value of plan assets 254,493 269,253 |
Components of net periodic benefit cost | The components of net periodic benefit cost for the plans for 2019 , 2018 and 2017 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2019 2018 2017 2019 2018 2017 Service cost-benefits earned during the period $ 7,735 $ 8,487 $ 7,675 $ 545 $ 636 $ 601 Interest cost on projected benefit obligation 15,103 13,424 15,044 1,162 1,084 1,093 Expected return on assets (17,152 ) (17,447 ) (17,186 ) — — — Amortization of prior service cost (credit) 279 279 255 — — (344 ) Amortization of net loss (gain) 8,392 7,931 8,634 273 646 334 Settlement loss (gain) — 184 12,313 — — — Cost of pension plans which are not significant and have not adopted ASC 715 110 106 122 N/A N/A N/A Net periodic benefit cost $ 14,467 $ 12,964 $ 26,857 $ 1,980 $ 2,366 $ 1,684 |
Amounts recognized in other comprehensive (income) loss | Amounts recognized in other comprehensive (income) loss in 2019 and 2018 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2019 2018 2019 2018 Net loss (gain) arising during the period $ 40,184 $ 644 $ 2,532 $ (397 ) Amortization of net gain (loss) (8,392 ) (7,931 ) (273 ) (646 ) Settlement gain (loss) — (184 ) — — Amortization of prior service credit (cost) (279 ) (279 ) — — Total $ 31,513 $ (7,750 ) $ 2,259 $ (1,043 ) |
Amounts included in accumulated other comprehensive (income) loss | Amounts included in accumulated other comprehensive (income) loss as of December 27, 2019 and December 28, 2018 , that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2019 2018 2019 2018 Prior service cost (credit) $ 1,197 $ 1,465 $ — $ — Net loss 135,910 104,127 8,052 5,793 Net before income taxes 137,107 105,592 8,052 5,793 Income taxes (29,666 ) (23,221 ) (1,772 ) (1,275 ) Net $ 107,441 $ 82,371 $ 6,280 $ 4,518 |
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 2020 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits Prior service cost (credit) $ 282 $ — Net loss (gain) 10,354 707 Net before income taxes 10,636 707 Income taxes (2,340 ) (156 ) Net $ 8,296 $ 551 |
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 2019 2018 2019 2018 U.S. Plans Discount rate 3.5 % 4.5 % 3.4 % 4.5 % Rate of compensation increase 2.8 % 2.8 % N/A N/A Non-U.S. Plans Discount rate 0.4 % 1.3 % N/A N/A Rate of compensation increase 1.3 % 1.4 % 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 2019 2018 2017 2019 2018 2017 U.S. Plans Discount rate 4.5 % 3.9 % 4.5 % 4.5 % 3.9 % 4.5 % Rate of compensation increase 2.8 % 2.8 % 2.8 % N/A N/A N/A Expected return on assets 7.0 % 7.1 % 7.0 % N/A N/A N/A Non-U.S. Plans Discount rate 1.3 % 1.0 % 0.9 % N/A N/A N/A Rate of compensation increase 1.4 % 0.9 % 1.0 % 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 2020 $ 15,337 $ 1,656 2021 16,520 1,707 2022 17,917 1,731 2023 19,173 1,727 2024 21,281 1,703 Years 2025-2029 115,303 8,357 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of December 27, 2019 , future maturities of operating lease liabilities were as follows (in thousands): 2020 $ 8,222 2021 8,237 2022 5,657 2023 4,226 2024 1,843 Thereafter 7,490 Total lease payments $ 35,675 Present value adjustment (3,809 ) Operating lease liabilities $ 31,866 |
Rental commitments under operating leases | Aggregate annual rental commitments under operating leases with noncancelable terms of more than one year at December 28, 2018 were reported under previous lease accounting standards as follows (in thousands): 2019 $ 11,613 2020 8,759 2021 6,745 2022 5,102 2023 3,721 Thereafter 2,340 Total $ 38,280 |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
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 2019 Net Sales $ 404,870 $ 428,328 $ 400,555 $ 412,292 Gross Profit 216,042 226,954 207,379 209,381 Net Earnings 86,749 88,137 84,132 84,835 Basic Net Earnings per Common Share $ 0.52 $ 0.53 $ 0.50 $ 0.51 Diluted Net Earnings per Common Share 0.51 0.51 0.49 0.49 Cash Dividends Declared per Common Share 0.16 0.16 0.16 0.18 2018 Net Sales $ 406,348 $ 424,570 $ 415,936 $ 406,438 Gross Profit 222,421 229,903 221,459 208,756 Net Earnings 85,510 89,140 92,681 73,723 Basic Net Earnings per Common Share $ 0.51 $ 0.53 $ 0.55 $ 0.44 Diluted Net Earnings per Common Share 0.49 0.51 0.54 0.43 Cash Dividends Declared per Common Share 0.13 0.13 0.13 0.16 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Summary of Valuation Allowance [Table Text Block] | Graco Inc. and Subsidiaries (in thousands) Allowance for Doubtful Accounts Balance, December 30, 2016 $ 3,900 Additions charged to costs and expenses 1,600 Deductions from reserves (1) (1,700 ) Other additions (deductions) (2) 200 Balance, December 29, 2017 4,000 Additions charged to costs and expenses 1,400 Deductions from reserves (1) (900 ) Other additions (deductions) (2) 300 Balance, December 28, 2018 4,800 Additions charged to costs and expenses 800 Deductions from reserves (1) (900 ) Other additions (deductions) (2) 100 Balance, December 27, 2019 $ 4,800 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Other Details | |||
Write-downs of long-lived assets | $ 0 | ||
Amortization of intangible assets | 15,500,000 | $ 15,600,000 | $ 14,800,000 |
Cash surrender value of life insurance change | 3,400,000 | (1,800,000) | $ 2,300,000 |
Self insured reserves | 7,600,000 | 7,900,000 | |
Derivative, Notional Amount | $ 33,000,000 | ||
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 Current Liabilities | |||
Other Details | |||
Self insured reserves | $ 7,600,000 | 7,900,000 | |
Trade Accounts Receivable | |||
Other Details | |||
Accounts receivable | 256,000,000 | 262,000,000 | |
Other Receivables | |||
Other Details | |||
Accounts receivable | $ 11,000,000 | $ 13,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
ASSETS | ||
Total assets at fair value | $ 17,702 | $ 14,402 |
Liabilities [Abstract] | ||
Total liabilities at fair value | 13,878 | 11,403 |
Level 2 | ||
ASSETS | ||
Cash surrender value of life insurance | 17,702 | 14,320 |
Forward exchange contracts | 0 | 82 |
Liabilities [Abstract] | ||
Deferred Compensation | 4,719 | 4,203 |
Forward exchange contracts | 87 | 0 |
Level 3 | ||
Liabilities [Abstract] | ||
Contingent consideration | $ 9,072 | $ 7,200 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Accounting Policies [Abstract] | ||
Prepaid income taxes | $ 13,462 | $ 14,762 |
Prepaid expenses and other | 16,455 | 17,746 |
Other current assets | $ 29,917 | $ 32,508 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Goodwill by Reporting Segment) (Details) - USD ($) | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Segment Reporting Information | ||
Write-downs of long-lived assets | $ 0 | |
Goodwill Roll Forward | ||
Beginning balance | 293,846,000 | $ 278,789,000 |
Additions, adjustments from business acquisitions | 13,444,000 | 18,123,000 |
Foreign currency translation | 373,000 | (3,066,000) |
Ending balance | 307,663,000 | 293,846,000 |
Industrial | ||
Goodwill Roll Forward | ||
Beginning balance | 177,124,000 | 161,673,000 |
Additions, adjustments from business acquisitions | 0 | 17,544,000 |
Foreign currency translation | (12,000) | (2,093,000) |
Ending balance | 177,112,000 | 177,124,000 |
Process | ||
Goodwill Roll Forward | ||
Beginning balance | 97,168,000 | 97,971,000 |
Additions, adjustments from business acquisitions | 13,444,000 | 170,000 |
Foreign currency translation | 385,000 | (973,000) |
Ending balance | 110,997,000 | 97,168,000 |
Contractor | ||
Goodwill Roll Forward | ||
Beginning balance | 19,554,000 | 19,145,000 |
Additions, adjustments from business acquisitions | 0 | 409,000 |
Foreign currency translation | 0 | 0 |
Ending balance | $ 19,554,000 | $ 19,554,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Document Period End Date | Dec. 27, 2019 | ||
Amortization of Intangible Assets | $ 15,500 | $ 15,600 | $ 14,800 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Total Other Intangible Assets, Gross | 269,663 | 258,577 | |
Total Other Intangible Assets, Accumulated Amortization | (91,940) | (76,408) | |
Total Other Intangible Assets, Foreign Currency Translation | (15,100) | (15,859) | |
Total Other Intangible Assets, Net | 162,623 | 166,310 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense 2020 | 16,095 | ||
Estimated amortization expense 2021 | 15,806 | ||
Estimated amortization expense 2022 | 15,716 | ||
Estimated amortization expense 2023 | 14,811 | ||
Estimated amortization expense 2024 | 13,249 | ||
Estimated amortization expense thereafter | 28,756 | ||
Trade Names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Trade Names | 61,920 | 59,537 | |
Indefinite Lived Intangible Assets, Foreign Currency Translation | (3,730) | (4,074) | |
Indefinite Lived Intangible Assets, Net | 58,190 | 55,463 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets, Gross | 186,310 | 179,449 | |
Finite Lived Intangible Assets, Accumulated Amortization | (80,764) | (67,322) | |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (10,412) | (10,817) | |
Finite Lived Intangible Assets, Net | $ 95,134 | $ 101,310 | |
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 | $ 20,413 | $ 18,571 | |
Finite Lived Intangible Assets, Accumulated Amortization | (10,526) | (8,647) | |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (885) | (895) | |
Finite Lived Intangible Assets, Net | $ 9,002 | $ 9,029 | |
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 | $ 1,020 | $ 1,020 | |
Finite Lived Intangible Assets, Accumulated Amortization | (650) | (439) | |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (73) | (73) | |
Finite Lived Intangible Assets, Net | $ 297 | $ 508 | |
Finite Lived Intangible Assets, Weighted Average Useful Life | 4 years | 4 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Components of Other Assets) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Accounting Policies [Abstract] | ||
Cash surrender value of life insurance | $ 17,702 | $ 14,320 |
Capitalized software | 2,985 | 2,742 |
Equity method investment | 7,603 | 7,252 |
Prepaid Expense Other, Noncurrent | 2,931 | 0 |
Deposits and other | 4,471 | 3,705 |
Total | $ 35,692 | $ 28,019 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Components of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 |
Other Current Liabilities | |||
Accrued self-insurance retentions | $ 7,570 | $ 7,870 | |
Accrued warranty and service liabilities | 12,785 | 11,056 | $ 10,535 |
Accrued trade promotions | 8,390 | 11,449 | |
Payable for employee stock purchases | 13,722 | 11,916 | |
Customer Advances and Deposits, Current | 33,138 | 39,995 | |
Income taxes payable | 8,706 | 8,515 | |
Operating Lease, Liability, Current | 7,690 | 0 | |
Contract with Customer, Refund Liability, Current | 13,791 | 12,705 | |
Other | 37,145 | 39,535 | |
Total | 142,937 | 143,041 | |
Self insured reserves | $ 7,600 | $ 7,900 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Accrued Warranty Liability Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Accrued warranty and service liabilities | ||
Balance, beginning of year | $ 11,056 | $ 10,535 |
Charged to expense | 10,350 | 8,963 |
Margin on parts sales reversed | 2,576 | 1,193 |
Reductions for claims settled | (11,197) | (9,635) |
Balance, end of year | $ 12,785 | $ 11,056 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies Summary of Significant Account Policies (Contracts with Customers - Revenue Recognition) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Sales Returns Percentage Of Sales | 3.00% | |
Contract with Customer, Liability | $ 33.1 | $ 40 |
Contract with Customer, Liability, Revenue Recognized | $ 39.4 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Fair Market Value and Classification of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Accounting Policies [Abstract] | ||
Derivative, Notional Amount | $ 33,000 | |
Foreign Currency Fair Value Hedge Asset at Fair Value | 0 | $ 322 |
Foreign Currency Fair Value Hedge Liability at Fair Value | (87) | (240) |
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | $ (87) | $ 82 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Concentration Risk [Line Items] | |||
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% | 10.00% |
Segment Information (Operations
Segment Information (Operations and Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Segment Reporting Information | |||||||||||
Net Sales | $ 412,292 | $ 400,555 | $ 428,328 | $ 404,870 | $ 406,438 | $ 415,936 | $ 424,570 | $ 406,348 | $ 1,646,045 | $ 1,653,292 | $ 1,474,744 |
Operating Earnings | 424,456 | 436,427 | 378,745 | ||||||||
Assets | 1,692,210 | 1,472,741 | 1,692,210 | 1,472,741 | |||||||
Operating Segments | Industrial | |||||||||||
Segment Reporting Information | |||||||||||
Net Sales | 747,396 | 781,029 | 691,978 | ||||||||
Operating Earnings | 247,216 | 271,307 | 237,700 | ||||||||
Assets | 615,486 | 640,683 | 615,486 | 640,683 | |||||||
Operating Segments | Process | |||||||||||
Segment Reporting Information | |||||||||||
Net Sales | 344,930 | 337,953 | 294,652 | ||||||||
Operating Earnings | 76,367 | 68,514 | 52,216 | ||||||||
Assets | 387,216 | 350,306 | 387,216 | 350,306 | |||||||
Operating Segments | Contractor | |||||||||||
Segment Reporting Information | |||||||||||
Net Sales | 553,719 | 534,310 | 488,114 | ||||||||
Operating Earnings | 128,282 | 120,905 | 113,898 | ||||||||
Assets | 368,832 | 283,727 | 368,832 | 283,727 | |||||||
Unallocated Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Operating Earnings | (27,409) | (24,299) | $ (25,069) | ||||||||
Assets | $ 320,676 | $ 198,025 | $ 320,676 | $ 198,025 |
Segment Information (Geographic
Segment Information (Geographic Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Geographic Information | |||||||||||
Net Sales | $ 412,292 | $ 400,555 | $ 428,328 | $ 404,870 | $ 406,438 | $ 415,936 | $ 424,570 | $ 406,348 | $ 1,646,045 | $ 1,653,292 | $ 1,474,744 |
Long-lived Assets | 325,546 | 229,295 | 325,546 | 229,295 | |||||||
United States | |||||||||||
Geographic Information | |||||||||||
Net Sales | 840,659 | 806,127 | 743,344 | ||||||||
Long-lived Assets | 268,864 | 178,331 | 268,864 | 178,331 | |||||||
Non-US [Member] | |||||||||||
Geographic Information | |||||||||||
Net Sales | 805,386 | 847,165 | $ 731,400 | ||||||||
Long-lived Assets | $ 56,682 | $ 50,964 | $ 56,682 | $ 50,964 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Inventory, Net [Abstract] | ||
Finished products and components | $ 132,128 | $ 142,535 |
Products and components in various stages of completion | 86,957 | 83,768 |
Raw materials and purchased components | 117,026 | 115,705 |
Inventory gross total | 336,111 | 342,008 |
Reduction to LIFO cost | (62,878) | (58,026) |
Total | $ 273,233 | $ 283,982 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Dec. 27, 2019 | Dec. 28, 2018 |
Inventory Disclosure [Abstract] | ||
LIFO Inventory Amount | $ 140.3 | $ 154.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment (PPE By Type) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 680,204 | $ 570,033 |
Accumulated depreciation | (354,658) | (340,738) |
Net property, plant and equipment | 325,546 | 229,295 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 29,817 | 26,252 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 182,195 | 157,385 |
Manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 320,240 | 317,011 |
Office, warehouse and automotive equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 48,476 | 44,901 |
Additions in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 99,476 | $ 24,484 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation Expense | $ 32.2 | $ 31.1 | $ 29.5 |
Income Taxes (Income before Inc
Income Taxes (Income before Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 294,402 | $ 310,999 | $ 269,258 |
Foreign | 111,475 | 99,767 | 77,836 |
Earnings Before Income Taxes | $ 405,877 | $ 410,766 | $ 347,094 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Current Income Tax Expense (Benefit) [Abstract] | |||
Federal | $ 39,015 | $ 27,760 | $ 41,996 |
State and local | 3,347 | 3,398 | 3,088 |
Foreign | 26,270 | 23,118 | 19,486 |
Total Current | 68,632 | 54,276 | 64,570 |
Deferred Income Tax Expense (Benefit) [Abstract] | |||
Domestic | (151) | 17,058 | 35,782 |
Foreign | (6,457) | (1,622) | (5,670) |
Total Deferred | (6,608) | 15,436 | 30,112 |
Total Income Tax Expense | $ 62,024 | $ 69,712 | $ 94,682 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Federal income tax rate reconciliation | |||
Statutory tax rate | 21.00% | 21.00% | 35.00% |
Tax effect of international operations | (1.00%) | 0.00% | 6.00% |
State taxes, net of federal effect | 1.00% | 1.00% | 1.00% |
U.S. general business tax credits | (1.00%) | (1.00%) | (1.00%) |
Domestic production deduction | 0.00% | 0.00% | (2.00%) |
Stock compensation excess tax benefit | (3.00%) | (2.00%) | (10.00%) |
Impact of 2017 Tax Cuts and Jobs Act | 0.00% | 0.00% | 10.00% |
Global Intangible Low-taxed Income | 1.00% | 1.00% | 0.00% |
Foreign Derived Intangible Income | (3.00%) | (2.00%) | 0.00% |
Pension Contribution | 0.00% | (1.00%) | 0.00% |
Effective tax rate | 15.00% | 17.00% | 27.00% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Deferred Tax Assets, Net [Abstract] | ||
Inventory valuations | $ 966 | $ 1,012 |
Self-insurance retention accruals | 1,280 | 1,284 |
Warranty reserves | 2,095 | 1,778 |
Vacation accruals | 2,335 | 2,259 |
Bad debt reserves | 3,142 | 2,785 |
Excess of tax over book depreciation and amortization | (38,735) | (37,208) |
Pension liability | 32,079 | 22,884 |
Postretirement medical | 4,625 | 4,491 |
Acquisition costs | 407 | 601 |
Stock compensation | 13,979 | 13,763 |
Deferred compensation | 1,960 | 1,994 |
Net operating loss carryforward | 929 | 0 |
Deferred revenue | 1,638 | 590 |
Other | 1,851 | 1,260 |
Net deferred tax assets | $ 28,551 | $ 15,469 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income taxes paid | $ 67.1 | $ 58.1 | $ 61 |
Deferred tax assets | 68.9 | 56.1 | |
Deferred tax liabilities | $ 40.4 | $ 40.6 |
Debt (Schedule of Debt Instrume
Debt (Schedule of Debt Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Debt Instrument [Line Items] | ||
Total debt, including current portion | $ 172,030 | $ 277,474 |
Series B maturing March 2023 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 5.01% | |
Debt Instrument, Maturity Date, Description | 3/11/2023 | |
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 | 1/26/2020 | |
Total debt, including current portion | $ 0 | 75,000 |
Series D maturing July 2026 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 5.35% | |
Debt Instrument, Maturity Date, Description | 7/26/2026 | |
Total debt, including current portion | $ 75,000 | 75,000 |
Revolving Credit Facility maturing December 2021 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Maturity Date, Description | 12/15/2021 | |
Total debt, including current portion | $ 0 | 0 |
Chinese Renminbi Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Average interest rate | 4.41% | |
Total debt, including current portion | $ 14,298 | 41,391 |
Notes payable to banks maturing 2020 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.11% | |
Debt Instrument, Maturity Date, Description | 2020 | |
Total debt, including current portion | $ 7,732 | $ 11,083 |
Debt (Annual Maturities of Debt
Debt (Annual Maturities of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Debt Disclosure [Abstract] | |||
2020 | $ 7,732 | ||
2021 | 14,298 | ||
2022 | 0 | ||
2023 | 75,000 | ||
2024 | 0 | ||
Thereafter | 75,000 | ||
Interest paid | $ 13,500 | $ 14,000 | $ 16,500 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Line of Credit Facility [Line Items] | |||
Estimated fair value of debt | $ 165,000,000 | $ 235,000,000 | |
Maximum borrowing amount - credit facility | 594,000,000 | ||
Interest paid | $ 13,500,000 | $ 14,000,000 | $ 16,500,000 |
Subsequent Event, Date | Jan. 29, 2020 | ||
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Chinese Renminbi Facility Maximum Borrowing Capacity | $ 50,000,000 | ||
Committed Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 500,000,000 | ||
Unused portion of credit facility | 546,000,000 | ||
Committed Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - swingline facility | 50,000,000 | ||
Committed Facility | Domestic Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 550,000,000 | ||
Committed Facility | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 44,000,000 | ||
Uncommitted Facility | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Unused portion of credit facility | $ 27,000,000 | ||
Uncommitted Facility | Foreign Line of Credit | Maximum | |||
Line of Credit Facility [Line Items] | |||
Loan commitment fee percentage | 0.15% | ||
Senior Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | $ 200,000,000 | ||
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% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 27, 2019 | |
Class of Stock | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (12) | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (15.5) | ||
Stock Repurchased During Period, Shares | 700,000 | ||
Proceeds from (Repurchase of) Equity | $ 28.2 | ||
Stock Repurchases, Final Price Paid Per Share | $ 43.33 | ||
Discount for Stock Repurchase | 3.00% | ||
Cumulative Preferred Stock | |||
Class of Stock | |||
Preferred stock authorized | 22,549 | ||
Preferred stock par value | $ 100 | ||
Preferred Stock | |||
Class of Stock | |||
Preferred stock authorized | 3,000,000 | ||
Preferred stock par value | $ 1 |
Shareholders' Equity (AOCI and
Shareholders' Equity (AOCI and Reclassification) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Accumulated Other Comprehensive Income (Loss) | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (12,000) | ||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | $ (144,857) | $ (127,789) | (142,228) |
Other comprehensive income (loss) before reclassifications | (32,036) | (8,805) | 1,652 |
Amounts reclassified from accumulated other comprehensive income | 7,106 | 7,190 | 12,787 |
Reclassified to Retained Earnings from AOCI | (15,453) | ||
Ending Balance | (169,787) | (144,857) | (127,789) |
Pension and Postretirement Medical | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (86,889) | (78,430) | (76,426) |
Other comprehensive income (loss) before reclassifications | (33,938) | (196) | (14,791) |
Amounts reclassified from accumulated other comprehensive income | 7,106 | 7,190 | 12,787 |
Reclassified to Retained Earnings from AOCI | (15,453) | ||
Ending Balance | (113,721) | (86,889) | (78,430) |
Cumulative Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (57,968) | (49,359) | (65,802) |
Other comprehensive income (loss) before reclassifications | 1,902 | (8,609) | 16,443 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Reclassified to Retained Earnings from AOCI | 0 | ||
Ending Balance | $ (56,066) | $ (57,968) | $ (49,359) |
Share-Based Awards, Purchase _3
Share-Based Awards, Purchase Plans and Compensation Cost (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award expiration period | 10 years | ||
Stock Appreciation Plan Expense | $ 3.3 | $ 4.4 | $ 4.5 |
Intrinsic value of exercisable option shares | $ 233.2 | ||
Exercisable option weighted average contractual term | 4 years 8 months 12 days | ||
Share options vested and expected to vest | 12,100,000 | ||
Aggregate intrinsic value of share options vested and expected to vest | $ 280.6 | ||
Weighted average exercise price of share options vested and expected to vest (per share) | $ 28.91 | ||
Weighted average contractual term of share options vested and expected to vest | 5 years 9 months 18 days | ||
Employee stock purchase plan shares granted | 397,833 | 480,461 | 499,956 |
Unrecognized compensation cost related to unvested options | $ 9.9 | ||
Weighted average recognition period for unvested options | 2 years 6 months | ||
Stock Incentive Plan (2019) | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares issued under the plan | 15,016 | 14,595 | 20,646 |
Employee Stock Purchase Plan (2006) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share purchase price as percentage of fair value | 85.00% | ||
Stock purchase plan discount percentage | 15.00% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 4 years |
Share-Based Awards, Purchase _4
Share-Based Awards, Purchase Plans and Compensation Cost (Option Activity and Outstanding) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | Dec. 30, 2016 | |
Options, Outstanding [Roll Forward] | ||||
Beginning (in shares) | 12,270 | 13,290 | 16,605 | |
Granted (in shares) | 1,781 | 1,163 | 1,725 | |
Exercised (in shares) | (1,886) | (2,081) | (4,903) | |
Canceled (in shares) | (53) | (102) | (137) | |
Ending (in shares) | 12,112 | 12,270 | 13,290 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning (dollars per share) | $ 24.67 | $ 21.99 | $ 18.42 | |
Granted (dollars per share) | 46.36 | 44.05 | 30.71 | |
Exercised (dollars per share) | 17.64 | 18.17 | 12.86 | |
Canceled (dollars per share) | 33.13 | 28.59 | 26.63 | |
Outstanding, ending (dollars per share) | $ 28.91 | $ 24.67 | $ 21.99 | |
Options, exercisable (in shares) | 8,231 | 7,312 | 7,729 | 11,016 |
Weighted average exercise price of exercisable options (dollars per share) | $ 23.75 | $ 20.17 | $ 18.33 | $ 15.13 |
Share-Based Awards, Purchase _5
Share-Based Awards, Purchase Plans and Compensation Cost (Options Outstanding and Exercisable By Price) (Details) shares in Thousands | 12 Months Ended |
Dec. 27, 2019$ / sharesshares | |
$5 - $20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | $ 5 |
Upper range exercise price | $ 20 |
Options Outstanding | shares | 2,513 |
Weighted Average Remaining Contractual Term in Years | 2 years 1 month 6 days |
Weighted Average Exercise Price | $ 16.46 |
Options Exercisable | shares | 2,513 |
Weighted Average Exercise Price | $ 16.46 |
$20 - $30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 20 |
Upper range exercise price | $ 30 |
Options Outstanding | shares | 5,141 |
Weighted Average Remaining Contractual Term in Years | 5 years 6 months |
Weighted Average Exercise Price | $ 25.09 |
Options Exercisable | shares | 4,671 |
Weighted Average Exercise Price | $ 25.20 |
$30 - $40 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 30 |
Upper range exercise price | $ 40 |
Options Outstanding | shares | 1,549 |
Weighted Average Remaining Contractual Term in Years | 7 years 2 months 12 days |
Weighted Average Exercise Price | $ 30.74 |
Options Exercisable | shares | 731 |
Weighted Average Exercise Price | $ 30.77 |
$40 - $51 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 40 |
Upper range exercise price | $ 51 |
Options Outstanding | shares | 2,909 |
Weighted Average Remaining Contractual Term in Years | 8 years 10 months 24 days |
Weighted Average Exercise Price | $ 45.46 |
Options Exercisable | shares | 316 |
Weighted Average Exercise Price | $ 44.05 |
$5 - $51 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Options Outstanding | shares | 12,112 |
Weighted Average Remaining Contractual Term in Years | 5 years 9 months 18 days |
Weighted Average Exercise Price | $ 28.91 |
Options Exercisable | shares | 8,231 |
Weighted Average Exercise Price | $ 23.75 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range Six [Member] [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 5 |
Upper range exercise price | $ 51 |
Share-Based Awards, Purchase _6
Share-Based Awards, Purchase Plans and Compensation Cost (Options Exercised) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Cash received | $ 32,749 | $ 11,158 | $ 48,833 |
Aggregate intrinsic value | 57,419 | 57,979 | 119,442 |
Tax benefit realized | $ 12,000 | $ 12,000 | $ 42,000 |
Share-Based Awards, Purchase _7
Share-Based Awards, Purchase Plans and Compensation Cost (Authorized Shares) (Details) shares in Thousands | Dec. 27, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 31,000 |
Available for future issuance | 22,310 |
Stock Incentive Plan (2019) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 10,000 |
Available for future issuance | 9,413 |
Employee Stock Purchase Plan (2006) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 21,000 |
Available for future issuance | 12,897 |
Share-Based Awards, Purchase _8
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. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation | $ 26,669 | $ 25,565 | $ 23,652 |
Tax benefit | 2,100 | 3,500 | 5,100 |
Share-based compensation, net of tax | $ 24,569 | $ 22,065 | $ 18,552 |
Share-Based Awards, Purchase _9
Share-Based Awards, Purchase Plans and Compensation Cost (Valuation Assumptions Options) (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life in years | 6 years 9 months 18 days | 7 years 6 months | 7 years |
Interest rate | 2.30% | 2.80% | 2.20% |
Volatility | 24.00% | 25.50% | 26.70% |
Dividend yield | 1.40% | 1.20% | 1.60% |
Weighted average fair value per share | $ 11.31 | $ 12.84 | $ 8.08 |
Share-Based Awards, Purchase_10
Share-Based Awards, Purchase Plans and Compensation Cost (Valuation Assumptions ESPP) (Details) - Employee Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life in years | 1 year | 1 year | 1 year |
Interest rate | 2.60% | 2.10% | 0.90% |
Volatility | 22.70% | 21.30% | 22.30% |
Dividend yield | 1.40% | 1.20% | 1.50% |
Weighted average fair value per share | $ 11.36 | $ 10.28 | $ 7.32 |
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. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings available to common shareholders | $ 343,853 | $ 341,054 | $ 252,412 | ||||||||
Weighted average shares outstanding for basic earnings per share | 166,515 | 167,364 | 167,925 | ||||||||
Dilutive effect of stock options computed based on the treasury stock method using the average market price | 5,109 | 5,849 | 6,393 | ||||||||
Weighted average shares outstanding for diluted earnings per share | 171,624 | 173,213 | 174,318 | ||||||||
Basic earnings per share | $ 0.51 | $ 0.50 | $ 0.53 | $ 0.52 | $ 0.44 | $ 0.55 | $ 0.53 | $ 0.51 | $ 2.06 | $ 2.04 | $ 1.50 |
Diluted earnings per share | $ 0.49 | $ 0.49 | $ 0.51 | $ 0.51 | $ 0.43 | $ 0.54 | $ 0.51 | $ 0.49 | $ 2 | $ 1.97 | $ 1.45 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.1 | 1.1 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) | Jul. 13, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 |
Defined Contribution Plan | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | |||
Company contribution rate for employees not covered by DBP | 1.50% | |||
Defined Contribution Plan, Employer Matching Contribution for Employees Not Covered by Defined Benefit Plan - Future, Percent | 2.00% | |||
Company contributions to 401K | $ 8,400,000 | $ 8,000,000 | $ 7,800,000 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 40,000,000 | |||
Highest earnings years | 5 years | |||
Years preceding retirement | 10 years | |||
Accumulated benefit obligation for all defined benefit plans | $ 410,000,000 | 344,000,000 | ||
Old Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 42,000,000 | |||
Gain (Loss) Due to Settlement (Plan Restructure) | $ (12,000,000) | |||
Pension Plan - Blue Plan [Member] | Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 50.00% | |||
Pension Plan - Blue Plan [Member] | Fixed income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 37.00% | |||
Pension Plan - Blue Plan [Member] | Real Estate and Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 13.00% | |||
Pension Plan - Gray Plan [Member] | Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 28.00% | |||
Pension Plan - Gray Plan [Member] | Fixed income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 60.00% | |||
Pension Plan - Gray Plan [Member] | Real Estate and Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 12.00% | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 2,276,000 | 42,023,000 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | 1,561,000 | ||
Investments at Net Asset Value, Redemption Frequency | daily | |||
Investments at Net Asset Value, Unfunded Commitments | $ 2,500,000 | 3,000,000 | ||
Expected company contributions to retirement plans next year | 1,800,000 | |||
Postretirement Medical Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 1,371,000 | 1,316,000 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | $ 0 | ||
Retirement medical plan limit on annual increase in company cost | 3.00% | |||
Expected company contributions to retirement plans next year | $ 1,700,000 | |||
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 | 5.80% | |||
Ultimate health care cost trend rate | 4.50% | |||
Year that rate reaches ultimate trend rate | 2038 | |||
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. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Investments, Fair Value Disclosure | $ 27,519 | $ 27,291 | |
Investments Net Asset Value | 276,425 | 241,962 | |
Fair value, plan assets | 303,944 | 269,253 | $ 254,186 |
Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 303,944 | 269,253 | |
Cash and cash equivalents | Level 1 | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments, Fair Value Disclosure | (156) | 927 | |
Insurance contract | Level 3 | Fair Value, Nonrecurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments, Fair Value Disclosure | 27,675 | 26,364 | |
Equity | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 132,772 | 92,785 | |
U.S. Large Cap | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 84,330 | 53,597 | |
U.S. Small/Mid Cap | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 9,202 | 7,602 | |
International | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 39,240 | 31,586 | |
Fixed income | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | 107,832 | 76,213 | |
Real estate and other | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments Net Asset Value | $ 35,821 | $ 72,964 |
Retirement Benefits Retirement
Retirement Benefits Retirement Benefits (Level 3 Asset Rollforward) (Details) - Fair Value, Nonrecurring [Member] - Pension Benefits - Level 3 - Insurance contract - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Balance, beginning of year | $ 26,364 | $ 26,411 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 2,151 | 2,074 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (1,326) | (2,086) |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | 486 | (35) |
Balance, end of year | $ 27,675 | $ 26,364 |
Retirement Benefits (Funded Sta
Retirement Benefits (Funded Status) (Details) - USD ($) $ in Thousands | Jul. 13, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 |
Change in plan assets | ||||
Employer contributions | $ 40,000 | |||
Pension Benefits | ||||
Change in benefit obligation | ||||
Obligation, beginning of year | $ 371,282 | $ 393,559 | ||
Service cost | 7,735 | 8,487 | $ 7,675 | |
Interest cost | 15,103 | 13,424 | 15,044 | |
Actuarial loss (gain) | 67,756 | (30,452) | ||
Benefit payments | (12,594) | (11,265) | ||
Settlements | 0 | (1,561) | ||
Exchange rate changes | 137 | (910) | ||
Obligation, end of year | 449,419 | 371,282 | 393,559 | |
Change in plan assets | ||||
Fair value, beginning of year | 269,253 | 254,186 | ||
Actual return on assets | 44,743 | (13,875) | ||
Employer contributions | 2,276 | 42,023 | ||
Benefit payments | (12,594) | (11,265) | ||
Settlements | 0 | (1,561) | ||
Exchange rate changes | 266 | (255) | ||
Fair value, end of year | 303,944 | 269,253 | 254,186 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (145,475) | (102,029) | ||
Postretirement Medical Benefits | ||||
Change in benefit obligation | ||||
Obligation, beginning of year | 27,778 | 27,771 | ||
Service cost | 545 | 636 | 601 | |
Interest cost | 1,162 | 1,084 | 1,093 | |
Actuarial loss (gain) | 2,532 | (397) | ||
Benefit payments | (1,371) | (1,316) | ||
Settlements | 0 | 0 | ||
Exchange rate changes | 0 | 0 | ||
Obligation, end of year | 30,646 | 27,778 | 27,771 | |
Change in plan assets | ||||
Fair value, beginning of year | 0 | 0 | ||
Actual return on assets | 0 | 0 | ||
Employer contributions | 1,371 | 1,316 | ||
Benefit payments | (1,371) | (1,316) | ||
Settlements | 0 | 0 | ||
Exchange rate changes | 0 | 0 | ||
Fair value, end of year | 0 | 0 | $ 0 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (30,646) | $ (27,778) |
Retirement Benefits (Amounts Re
Retirement Benefits (Amounts Recognized in Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Amounts recognized in consolidated balance sheets | ||
Non-current liabilities | $ 182,707 | $ 133,388 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid Expense, Noncurrent | 2,931 | 0 |
Amounts recognized in consolidated balance sheets | ||
Current liabilities | 1,824 | 1,453 |
Non-current liabilities | 146,582 | 100,576 |
Net | 145,475 | 102,029 |
Postretirement Medical Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid Expense, Noncurrent | 0 | 0 |
Amounts recognized in consolidated balance sheets | ||
Current liabilities | 1,656 | 1,573 |
Non-current liabilities | 28,990 | 26,205 |
Net | $ 30,646 | $ 27,778 |
Retirement Benefits (Accumulate
Retirement Benefits (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Information for plans with accumulated benefit obligation in excess of plan assets | ||
Projected benefit obligation | $ 402,900 | $ 371,282 |
Accumulated benefit obligation | 363,497 | 343,705 |
Fair value of plan assets | $ 254,493 | $ 269,253 |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Components of net periodic benefit cost | |||
Settlement loss (gain) | $ 12,000 | ||
Pension Benefits | |||
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | $ 7,735 | $ 8,487 | 7,675 |
Interest cost on projected benefit obligation | 15,103 | 13,424 | 15,044 |
Expected return on assets | (17,152) | (17,447) | (17,186) |
Amortization of prior service cost (credit) | 279 | 279 | 255 |
Amortization of net loss (gain) | 8,392 | 7,931 | 8,634 |
Settlement loss (gain) | 0 | 184 | 12,313 |
Cost of pension plans which are not significant and have not adopted ASC 715 | 110 | 106 | 122 |
Net periodic benefit cost | 14,467 | 12,964 | 26,857 |
Postretirement Medical Benefits | |||
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | 545 | 636 | 601 |
Interest cost on projected benefit obligation | 1,162 | 1,084 | 1,093 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | (344) |
Amortization of net loss (gain) | 273 | 646 | 334 |
Settlement loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost | 1,980 | 2,366 | 1,684 |
Accounting Standards Update 2017-07 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Non-service pension cost included in non-operating expense | $ 5,000 | $ 8,000 | $ 18,000 |
Retirement Benefits (Amounts _2
Retirement Benefits (Amounts recognized in other comprehensive (income) loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Pension Benefits | ||
Amounts recognized in other comprehensive (income) loss | ||
Net loss (gain) arising during the period | $ 40,184 | $ 644 |
Amortization of net gain (loss) | (8,392) | (7,931) |
Settlement gain (loss) | 0 | (184) |
Amortization of prior service credit (cost) | (279) | (279) |
Total | 31,513 | (7,750) |
Postretirement Medical Benefits | ||
Amounts recognized in other comprehensive (income) loss | ||
Net loss (gain) arising during the period | 2,532 | (397) |
Amortization of net gain (loss) | (273) | (646) |
Settlement gain (loss) | 0 | 0 |
Amortization of prior service credit (cost) | 0 | 0 |
Total | $ 2,259 | $ (1,043) |
Retirement Benefits (Amounts in
Retirement Benefits (Amounts included in accumulated other comprehensive (income) loss) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Pension Benefits | ||
Amounts recognized in accumulated ther comprehensive income | ||
Prior service cost (credit) | $ 1,197 | $ 1,465 |
Net loss | 135,910 | 104,127 |
Net before income taxes | 137,107 | 105,592 |
Income taxes | (29,666) | (23,221) |
Net | 107,441 | 82,371 |
Postretirement Medical Benefits | ||
Amounts recognized in accumulated ther comprehensive income | ||
Prior service cost (credit) | 0 | 0 |
Net loss | 8,052 | 5,793 |
Net before income taxes | 8,052 | 5,793 |
Income taxes | (1,772) | (1,275) |
Net | $ 6,280 | $ 4,518 |
Retirement Benefits (Amounts _3
Retirement Benefits (Amounts in AOCI expected to be recognized as cost in next year) (Details) $ in Thousands | Dec. 27, 2019USD ($) |
Pension Benefits | |
Expected to be recognized in following year | |
Prior service cost (credit) | $ 282 |
Net loss (gain) | 10,354 |
Net before income taxes | 10,636 |
Income taxes | (2,340) |
Net | 8,296 |
Postretirement Medical Benefits | |
Expected to be recognized in following year | |
Prior service cost (credit) | 0 |
Net loss (gain) | 707 |
Net before income taxes | 707 |
Income taxes | (156) |
Net | $ 551 |
Retirement Benefits (Assumption
Retirement Benefits (Assumptions used to determine obligations and cost) (Details) | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
U.S. Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.50% | 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% | 3.90% | 4.50% |
Rate of compensation increase | 2.80% | 2.80% | 2.80% |
Expected return on assets | 7.00% | 7.10% | 7.00% |
Non-U.S. Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 0.40% | 1.30% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 1.30% | 1.40% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 1.30% | 1.00% | 0.90% |
Rate of compensation increase | 1.40% | 0.90% | 1.00% |
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 | 5.80% | ||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.40% | 4.50% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 4.50% | 3.90% | 4.50% |
Retirement Benefits (Estimated
Retirement Benefits (Estimated future benefit payments) (Details) $ in Thousands | Dec. 27, 2019USD ($) |
Pension Benefits | |
Estimated future benefit payments | |
2020 | $ 15,337 |
2021 | 16,520 |
2022 | 17,917 |
2023 | 19,173 |
2024 | 21,281 |
Years 2025-2029 | 115,303 |
Postretirement Medical Benefits | |
Estimated future benefit payments | |
2020 | 1,656 |
2021 | 1,707 |
2022 | 1,731 |
2023 | 1,727 |
2024 | 1,703 |
Years 2025-2029 | $ 8,357 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 29, 2018 | Dec. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 29,891 | $ 35,000 | $ 0 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 8 months 12 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.90% | ||
Operating Lease, Expense | $ 11,500 | ||
Operating Lease, Payments | 11,000 | ||
Operating Lease, Right of Use Asset, Additions | 2,400 | ||
Lessee, Operating Lease, Liability, Payments, Due in 2020 | 8,222 | ||
Lessee, Operating Lease, Liability, Payments, Due in 2021 | 8,237 | ||
Lessee, Operating Lease, Liability, Payments, Due in 2022 | 5,657 | ||
Lessee, Operating Lease, Liability, Payments, Due in 2023 | 4,226 | ||
Lessee, Operating Lease, Liability, Payments, Due in 2024 | 1,843 | ||
Lessee, Operating Lease, Liability, Payments, Due Thereafter | 7,490 | ||
Lessee, Operating Lease, Liability, Payments, Due | 35,675 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (3,809) | ||
Operating Lease, Liability | $ 31,866 | ||
Operating Leases, Future Minimum Payments, Due in 2019 | 11,613 | ||
Operating Leases, Future Minimum Payments, Due in 2020 | 8,759 | ||
Operating Leases, Future Minimum Payments, Due in 2021 | 6,745 | ||
Operating Leases, Future Minimum Payments, Due in 2022 | 5,102 | ||
Operating Leases, Future Minimum Payments, Due in 2023 | 3,721 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 2,340 | ||
Operating Leases, Future Minimum Payments Due | $ 38,280 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Millions | Dec. 27, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Open purchase order commitments | $ 83 |
Maximum purchase quantities and supplier inventory commitments | 44 |
Contractual Obligation, Due in 2020 | 10 |
Contractual Obligation, Due in 2021 | 8 |
Contractual Obligation, Due in 2022 | 2 |
Contractual Obligation, Due Thereafter | 1 |
Standby letters of credit commitments | 2 |
Guarantees of subsidiary debt | $ 42 |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 412,292 | $ 400,555 | $ 428,328 | $ 404,870 | $ 406,438 | $ 415,936 | $ 424,570 | $ 406,348 | $ 1,646,045 | $ 1,653,292 | $ 1,474,744 |
Gross Profit | 209,381 | 207,379 | 226,954 | 216,042 | 208,756 | 221,459 | 229,903 | 222,421 | 859,756 | 882,539 | 795,202 |
Net Earnings | $ 84,835 | $ 84,132 | $ 88,137 | $ 86,749 | $ 73,723 | $ 92,681 | $ 89,140 | $ 85,510 | $ 343,853 | $ 341,054 | $ 252,412 |
Basic Net Earnings per Common Share | $ 0.51 | $ 0.50 | $ 0.53 | $ 0.52 | $ 0.44 | $ 0.55 | $ 0.53 | $ 0.51 | $ 2.06 | $ 2.04 | $ 1.50 |
Diluted Net Earnings per Common Share | 0.49 | 0.49 | 0.51 | 0.51 | 0.43 | 0.54 | 0.51 | 0.49 | $ 2 | $ 1.97 | $ 1.45 |
Cash Dividends Declared per Common Share | $ 0.18 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.13 | $ 0.13 | $ 0.13 |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 4,800 | $ 4,000 | $ 3,900 |
Additions charged to costs and expenses | 800 | 1,400 | 1,600 |
Deductions from reserves | (900) | (900) | (1,700) |
Other additions (deductions) | 100 | 300 | 200 |
Balance at end of year | $ 4,800 | $ 4,800 | $ 4,000 |