Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 25, 2021 | Jul. 14, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 25, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-09249 | |
Entity Registrant Name | GRACO INC. | |
Entity Incorporation, State | MN | |
Entity Tax Identification Number | 41-0285640 | |
Entity Address, Address Description | 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 $1.00 per share | |
Trading Symbol | GGG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 169,741,603 | |
Amendment Flag | false | |
Entity Central Index Key | 0000042888 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Jun. 25, 2021 | Jun. 26, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 507,164 | $ 366,892 | $ 961,293 | $ 740,459 |
Cost of Goods and Services Sold | 243,340 | 184,363 | 450,135 | 359,299 |
Gross Profit | 263,824 | 182,529 | 511,158 | 381,160 |
Product development | 21,406 | 17,948 | 40,977 | 35,029 |
Selling, marketing and distribution | 69,126 | 48,831 | 131,354 | 106,219 |
General and administrative | 39,449 | 36,015 | 76,698 | 70,365 |
Impairment | 0 | 34,962 | 0 | 34,962 |
Operating Earnings | 133,843 | 44,773 | 262,129 | 134,585 |
Interest expense | 2,528 | 3,258 | 4,956 | 5,744 |
Other expense, net | (434) | (510) | (313) | 4,713 |
Earnings Before Income Taxes | 131,749 | 42,025 | 257,486 | 124,128 |
Income taxes | 21,631 | 13,193 | 41,681 | 22,478 |
Net Earnings | $ 110,118 | $ 28,832 | $ 215,805 | $ 101,650 |
Basic earnings per share | $ 0.65 | $ 0.17 | $ 1.27 | $ 0.61 |
Diluted earnings per share | $ 0.63 | $ 0.17 | $ 1.24 | $ 0.59 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Jun. 25, 2021 | Jun. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Earnings | $ 110,118 | $ 28,832 | $ 215,805 | $ 101,650 |
Components of other comprehensive income (loss) | ||||
Cumulative translation adjustment | 5,693 | 6,756 | (4,777) | 2,079 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | 2,373 | 2,446 | 5,681 | 5,195 |
Pension and postretirement medical liability adjustment | (535) | (554) | (1,207) | (1,169) |
Other comprehensive income (loss) | 7,531 | 8,648 | (303) | 6,105 |
Comprehensive Income | $ 117,649 | $ 37,480 | $ 215,502 | $ 107,755 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 25, 2021 | Dec. 25, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 482,787 | $ 378,909 |
Accounts receivable, less allowances of $4,400 and $4,400 | 354,222 | 314,946 |
Inventories | 337,525 | 285,704 |
Other current assets | 29,418 | 44,242 |
Total current assets | 1,203,952 | 1,023,801 |
Property, Plant and Equipment | ||
Property, Plant and Equipment, net | 387,906 | 350,750 |
Goodwill | 358,449 | 347,603 |
Other Intangible Assets, net | 159,861 | 160,669 |
Operating Lease, Right-of-Use Asset | 38,931 | 37,807 |
Deferred Income Tax Assets, Net | 33,949 | 25,828 |
Other Assets | 46,157 | 41,670 |
Total Assets | 2,229,205 | 1,988,128 |
Current Liabilities | ||
Notes payable to banks | 13,130 | 22,183 |
Trade accounts payable | 76,074 | 58,305 |
Salaries and incentives | 61,478 | 52,005 |
Dividends payable | 31,893 | 31,636 |
Other current liabilities | 176,149 | 157,260 |
Total current liabilities | 358,724 | 321,389 |
Long-term Debt | 150,000 | 150,000 |
Retirement Benefits and Deferred Compensation | 184,973 | 184,747 |
Operating Lease, Liability, Noncurrent | 31,639 | 29,224 |
Deferred Income Tax Liabilities, Net | 11,568 | 10,264 |
Other Non-current Liabilities | 11,038 | 8,600 |
Shareholders’ Equity | ||
Common stock | 169,667 | 168,568 |
Additional paid-in-capital | 715,635 | 671,206 |
Retained earnings | 720,429 | 568,295 |
Accumulated other comprehensive income (loss) | (124,468) | (124,165) |
Total shareholders’ equity | 1,481,263 | 1,283,904 |
Total Liabilities and Shareholders’ Equity | $ 2,229,205 | $ 1,988,128 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 25, 2021 | Dec. 25, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for Credits | $ 4.4 | $ 4.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2021 | Jun. 26, 2020 | |
Net Earnings | $ 215,805 | $ 101,650 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 29,812 | 26,966 |
Deferred income taxes | (10,313) | 1,366 |
Share-based compensation | 13,745 | 15,445 |
Impairment | 0 | 34,962 |
Change in | ||
Accounts receivable | (38,747) | (19,705) |
Inventories | (51,359) | (22,662) |
Trade accounts payable | 14,496 | 342 |
Salaries and incentives | 8,334 | (16,677) |
Retirement benefits and deferred compensation | 5,980 | 6,134 |
Other accrued liabilities | 32,399 | 12,578 |
Other | (105) | 2,151 |
Net cash provided by operating activities | 220,047 | 142,550 |
Cash Flows From Investing Activities | ||
Property, plant and equipment additions | (54,759) | (32,613) |
Acquisition of businesses, net of cash acquired | (19,322) | (27,173) |
Other | (112) | (245) |
Net cash used in investing activities | (74,193) | (60,031) |
Cash Flows From Financing Activities | ||
Borrowings (payments) on short-term lines of credit, net | (9,282) | (768) |
Borrowings on long-term lines of credit | 0 | 250,000 |
Payments on long-term debt and lines of credit | (70) | 0 |
Payments of Debt Issuance Costs | 1,422 | 0 |
Common stock issued | 33,216 | 42,217 |
Common stock repurchased | 0 | (102,143) |
Payment, Tax Withholding, Share-based Payment Arrangement | 0 | 1,796 |
Cash dividends paid | (63,414) | (58,490) |
Net cash provided by financing activities | (40,972) | 129,020 |
Effect of exchange rate changes on cash | (1,004) | 196 |
Net increase (decrease) in cash and cash equivalents | 103,878 | 211,735 |
Cash and Cash Equivalents | ||
Beginning of year | 378,909 | 220,973 |
End of period | $ 482,787 | $ 432,708 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,024,931 | $ 167,287 | $ 578,440 | $ 448,991 | $ (169,787) |
Shares issued | 41,151 | 1,733 | 39,418 | 0 | 0 |
Stock Repurchased During Period, Value | (102,143) | 2,327 | 8,047 | 91,769 | 0 |
Stock compensation cost | 13,992 | 0 | 13,992 | 0 | 0 |
Net Earnings | 101,650 | 0 | 0 | 101,650 | 0 |
Dividends, Common Stock, Cash | (58,718) | 0 | 0 | (58,718) | 0 |
Other comprehensive income (loss) | $ 6,105 | 0 | 0 | 0 | 6,105 |
Common Stock, Dividends, Per Share, Declared | $ 0.350 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,018,658 | 166,840 | 612,698 | 411,450 | (172,330) |
Shares issued | 4,064 | 113 | 3,951 | 0 | 0 |
Stock Repurchased During Period, Value | (12,114) | 260 | 904 | 10,950 | 0 |
Stock compensation cost | 8,058 | 0 | 8,058 | 0 | 0 |
Net Earnings | 28,832 | 0 | 0 | 28,832 | 0 |
Dividends, Common Stock, Cash | (29,178) | 0 | 0 | (29,178) | 0 |
Other comprehensive income (loss) | $ 8,648 | 0 | 0 | 0 | 8,648 |
Common Stock, Dividends, Per Share, Declared | $ 0.175 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,026,968 | 166,693 | 623,803 | 400,154 | (163,682) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,283,904 | 168,568 | 671,206 | 568,295 | (124,165) |
Shares issued | 35,552 | 1,099 | 34,453 | 0 | 0 |
Stock compensation cost | 12,312 | 0 | 12,312 | 0 | 0 |
Restricted stock cancelled (issued) | (2,336) | 0 | (2,336) | 0 | 0 |
Net Earnings | 215,805 | 0 | 0 | 215,805 | 0 |
Dividends, Common Stock, Cash | (63,671) | 0 | 0 | (63,671) | 0 |
Other comprehensive income (loss) | $ (303) | 0 | 0 | 0 | (303) |
Common Stock, Dividends, Per Share, Declared | $ 0.375 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,382,502 | 169,413 | 702,829 | 642,259 | (131,999) |
Shares issued | 9,092 | 254 | 8,838 | 0 | 0 |
Stock compensation cost | 6,304 | 0 | 6,304 | 0 | 0 |
Restricted stock cancelled (issued) | (2,336) | 0 | (2,336) | 0 | 0 |
Net Earnings | 110,118 | 0 | 0 | 110,118 | 0 |
Dividends, Common Stock, Cash | (31,948) | 0 | 0 | (31,948) | 0 |
Other comprehensive income (loss) | $ 7,531 | 0 | 0 | 0 | 7,531 |
Common Stock, Dividends, Per Share, Declared | $ 0.188 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,481,263 | $ 169,667 | $ 715,635 | $ 720,429 | $ (124,468) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Unaudited) Consolidated Statements of Shareholders' Equity (Unaudited) Parenthetical - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Jun. 25, 2021 | Jun. 26, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.188 | $ 0.175 | $ 0.375 | $ 0.350 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 25, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated balance sheet of Graco Inc. and subsidiaries (the “Company”) as of June 25, 2021 and the related statements of earnings, comprehensive income and shareholders' equity for the three and six months ended June 25, 2021 and June 26, 2020, and cash flows for the six months ended June 25, 2021 and June 26, 2020 have been prepared by the Company and have not been audited. In the opinion of management, these consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of the Company as of June 25, 2021, and the results of operations and cash flows for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company’s 2020 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 25, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has three reportable segments: Industrial, Process and Contractor. Sales and operating earnings by segment were as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Net Sales Industrial $ 204,577 $ 133,287 $ 389,309 $ 291,971 Process 97,233 77,759 188,606 163,837 Contractor 205,354 155,846 383,378 284,651 Total $ 507,164 $ 366,892 $ 961,293 $ 740,459 Operating Earnings Industrial $ 69,368 $ 37,001 $ 134,611 $ 87,234 Process 21,676 11,672 43,409 29,783 Contractor 49,997 41,109 98,163 69,739 Unallocated corporate (expense) (7,198) (10,047) (14,054) (17,209) Impairment — (34,962) — (34,962) Total $ 133,843 $ 44,773 $ 262,129 $ 134,585 Assets by segment were as follows (in thousands): June 25, December 25, Industrial $ 689,675 $ 632,165 Process 418,473 404,370 Contractor 491,189 438,067 Unallocated corporate 629,868 513,526 Total $ 2,229,205 $ 1,988,128 Geographic information follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Net Sales (based on customer location) United States $ 263,722 $ 205,789 $ 495,223 $ 404,032 Other countries 243,442 161,103 466,070 336,427 Total $ 507,164 $ 366,892 $ 961,293 $ 740,459 June 25, December 25, Long-lived Assets United States $ 326,395 $ 301,643 Other countries 61,511 49,107 Total $ 387,906 $ 350,750 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 25, 2021 | |
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): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Net earnings available to common shareholders $ 110,118 $ 28,832 $ 215,805 $ 101,650 Weighted average shares outstanding for basic earnings per share 169,594 166,663 169,271 167,320 Dilutive effect of stock options computed using the treasury stock method and the average market price 4,978 3,886 4,939 4,276 Weighted average shares outstanding for diluted earnings per share 174,572 170,549 174,210 171,596 Basic earnings per share $ 0.65 $ 0.17 $ 1.27 $ 0.61 Diluted earnings per share $ 0.63 $ 0.17 $ 1.24 $ 0.59 Stock options to purchase 737,000 and 2,530,000 shares were not included in the June 25, 2021 and June 26, 2020 computations of diluted earnings per share, respectively, because they would have been anti-dilutive. |
Share-Based Awards
Share-Based Awards | 6 Months Ended |
Jun. 25, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Share-Based Awards | Share-Based Awards Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Weighted Average Options Weighted Average Outstanding, December 25, 2020 10,208 $ 35.02 6,553 $ 28.02 Granted 841 72.21 Exercised (674) 22.69 Canceled (14) 43.06 Outstanding, June 25, 2021 10,361 $ 38.84 7,196 $ 31.31 The Company recognized year-to-date share-based compensation of $13.7 million in 2021 and $15.4 million in 2020. As of June 25, 2021, there was $17.9 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 3.0 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: Six Months Ended June 25, June 26, Expected life in years 7.5 7.5 Interest rate 1.2 % 1.5 % Volatility 25.3 % 22.0 % Dividend yield 1.0 % 1.3 % Weighted average fair value per share $ 18.91 $ 12.18 Under the Company’s Employee Stock Purchase Plan, the Company issued 416,000 shares in 2021 and 400,000 shares in 2020. The fair value of the employees’ purchase rights under this 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: Six Months Ended June 25, June 26, Expected life in years 1.0 1.0 Interest rate 0.1 % 1.5 % Volatility 40.1 % 21.9 % Dividend yield 1.1 % 1.4 % Weighted average fair value per share $ 21.50 $ 11.55 |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 25, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Pension Benefits Service cost $ 2,724 $ 2,193 $ 5,445 $ 4,615 Interest cost 2,976 3,227 5,957 6,634 Expected return on assets (5,131) (4,651) (10,261) (9,401) Amortization and other 2,555 2,517 5,106 5,238 Net periodic benefit cost $ 3,124 $ 3,286 $ 6,247 $ 7,086 Postretirement Medical Service cost $ 175 $ 130 $ 350 $ 305 Interest cost 250 260 500 508 Amortization 250 190 500 367 Net periodic benefit cost $ 675 $ 580 $ 1,350 $ 1,180 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 25, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Changes in components of accumulated other comprehensive income (loss), net of tax were as follows (in thousands): Pension and Cumulative Total Three Months Ended June 25, 2021 Balance, March 26, 2021 $ (111,493) $ (20,506) $ (131,999) Other comprehensive income (loss) before reclassifications — 5,693 5,693 Reclassified to pension cost and deferred tax 1,838 — 1,838 Balance, June 25, 2021 $ (109,655) $ (14,813) $ (124,468) Six Months Ended June 25, 2021 Balance, December 25, 2020 $ (114,129) $ (10,036) $ (124,165) Other comprehensive income (loss) before reclassifications — (4,777) (4,777) Reclassified to pension cost and deferred tax 4,474 — 4,474 Balance, June 25, 2021 $ (109,655) $ (14,813) $ (124,468) Three Months Ended June 26, 2020 Balance, March 27, 2020 $ (111,587) $ (60,743) $ (172,330) Other comprehensive income (loss) before reclassifications — 6,756 6,756 Reclassified to pension cost and deferred tax 1,892 — 1,892 Balance, June 26, 2020 $ (109,695) $ (53,987) $ (163,682) Six Months Ended June 26, 2020 Balance, December 27, 2019 $ (113,721) $ (56,066) $ (169,787) Other comprehensive income (loss) before reclassifications — 2,079 2,079 Reclassified to pension cost and deferred tax 4,026 — 4,026 Balance, June 26, 2020 $ (109,695) $ (53,987) $ (163,682) |
Receivables and Credit Losses
Receivables and Credit Losses | 6 Months Ended |
Jun. 25, 2021 | |
Credit Loss [Abstract] | |
Credit Loss, Financial Instrument | Receivables and Credit Losses Accounts receivable includes trade receivables of $333 million and other receivables of $21 million as of June 25, 2021 and $302 million and $13 million, respectively, as of December 25, 2020. Allowance for Credit Losses Following is a summary of activity in the year to date allowance for credit losses (in thousands): June 25, June 26, Balance, beginning $ 3,745 $ 4,828 Additions (reversals) charged to costs and expenses 265 631 Deductions from reserves (1) (495) (291) Other additions (deductions) (2) (4) (9) Balance, ending $ 3,511 $ 5,159 (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. |
Inventories
Inventories | 6 Months Ended |
Jun. 25, 2021 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major components of inventories were as follows (in thousands): June 25, December 25, Finished products and components $ 153,876 $ 133,122 Products and components in various stages of completion 95,695 83,791 Raw materials and purchased components 152,657 129,319 Subtotal 402,228 346,232 Reduction to LIFO cost (64,703) (60,528) Total $ 337,525 $ 285,704 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 25, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Components of other intangible assets were as follows (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of June 25, 2021 Cost $ 194,505 $ 26,074 $ 900 $ 62,633 $ 284,112 Accumulated amortization (101,173) (14,312) (376) — (115,861) Foreign currency translation (6,757) (603) — (1,030) (8,390) Book value $ 86,575 $ 11,159 $ 524 $ 61,603 $ 159,861 Weighted average life in years 13 10 5 N/A As of December 25, 2020 Cost $ 186,073 $ 25,187 $ 900 $ 61,920 $ 274,080 Accumulated amortization (93,832) (12,924) (301) — (107,057) Foreign currency translation (6,004) (538) — 188 (6,354) Book value $ 86,237 $ 11,725 $ 599 $ 62,108 $ 160,669 Weighted average life in years 13 10 5 N/A Amortization of intangibles for the quarter was $4.6 million in 2021 and $4.1 million in 2020 and for the year to date was $8.9 million in 2021 and $8.2 million in 2020. Estimated annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2021 (Remainder) 2022 2023 2024 2025 Thereafter Estimated Amortization Expense $ 9,003 $ 17,964 $ 17,076 $ 15,518 $ 14,946 $ 23,751 Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands): Industrial Process Contractor Total Balance, December 25, 2020 $ 186,536 $ 141,513 $ 19,554 $ 347,603 Additions, adjustments from business acquisitions 13,249 — — 13,249 Foreign currency translation (2,835) 432 — (2,403) Balance, June 25, 2021 $ 196,950 $ 141,945 $ 19,554 $ 358,449 In the second quarter the Company completed the acquisition of a business that is not material to the consolidated financial statements. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 25, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities Components of other current liabilities were as follows (in thousands): June 25, December 25, Accrued self-insurance retentions $ 8,209 $ 8,041 Accrued warranty and service liabilities 13,748 13,082 Accrued trade promotions 12,699 12,140 Payable for employee stock purchases 7,126 14,554 Customer advances and deferred revenue 57,884 41,689 Income taxes payable 11,871 8,564 Right of return refund liability 18,072 16,303 Operating lease liabilities, current 9,760 11,178 Other 36,780 31,709 Total $ 176,149 $ 157,260 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): Balance, December 25, 2020 $ 13,082 Assumed in business acquisition 24 Charged to expense 5,271 Margin on parts sales reversed 1,741 Reductions for claims settled (6,370) Balance, June 25, 2021 $ 13,748 Deferred Revenue 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 |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Jun. 25, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt On March 25, 2021, the Company entered into an Amended and Restated Credit Agreement that amends, supersedes and restates in its entirety the Company's prior Credit Agreement with U.S. Bank National Association, as administrative agent (the “Agent”) and a lender, and the other lenders that are parties thereto. The Amended and Restated Credit Agreement extends the maturity of the Company’s $500 million unsecured revolving credit facility from December 15, 2021 to March 25, 2026; includes a $250 million accordion feature; and provides mechanisms for two further one-year extensions of the maturity, subject to the consent of the extending banks. Borrowings under the Amended and Restated Credit Agreement may be denominated in U.S. Dollars or certain other currencies. Outstanding loans in currencies other than U.S. Dollars cannot exceed $200 million in the aggregate. Loans denominated in U.S. Dollars may 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 will bear interest at a LIBOR-based rate. The base rate is an annual rate equal to a margin ranging from 0.00% to 0.75%, depending on the Company’s cash flow leverage ratio, plus the highest of (i) the rate of interest from time to time announced by the Agent as its prime rate, (ii) the federal funds effective rate plus 0.50%, or (iii) one-month LIBOR plus 1.50%. In general, LIBOR-based loans bear interest at a rate per annum equal to LIBOR, plus a margin ranging from 1.00% to 1.75%, 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 facility fee on the unused amount of the loan commitments at a rate per annum ranging from 0.125% to 0.25%, depending on the Company’s cash flow leverage ratio. The Amended and Restated Credit Agreement contains customary provisions for the replacement of the LIBOR-based rate as that rate is phased out in the lending market. The Amended and Restated Credit Agreement contains customary representations, warranties, covenants and events of default, including but not limited to covenants restricting the Company’s and its subsidiaries’ ability to (i) merge or consolidate with another entity, (ii) sell, transfer, lease or convey their assets, (iii) make any material change in the nature of the core business of the Company, (iv) make certain investments, or (v) incur secured indebtedness. The Credit Agreement also requires the Company to maintain a cash flow leverage ratio of not more than 3.50 to 1.00 (unless a significant acquisition has been consummated, in which case, not more than 4.00 to 1.00 during the four fiscal quarter period beginning with the quarter in which such acquisition occurs) and an interest coverage ratio of not less than 3.00 to 1.00 (unless a significant acquisition has been consummated, in which case, not less than 2.50 to 1.00 during the four fiscal quarter period beginning with the quarter in which such acquisition occurs). A change in control of the Company will constitute an event of default under the Credit Agreement. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 25, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level June 25, December 25, Assets Cash surrender value of life insurance 2 $ 22,486 $ 19,887 Forward exchange contracts 2 33 16 Total assets at fair value $ 22,519 $ 19,903 Liabilities Contingent consideration 3 $ 10,884 $ 9,454 Deferred compensation 2 5,689 5,099 Total liabilities at fair value $ 16,573 $ 14,553 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. 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. Long-term notes payable with fixed interest rates had a carrying amount of $150 million and estimated fair value of $165 million as of June 25, 2021 and estimated fair value of $170 million as of December 25, 2020. 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. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting - Operations and Assets | Sales and operating earnings by segment were as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Net Sales Industrial $ 204,577 $ 133,287 $ 389,309 $ 291,971 Process 97,233 77,759 188,606 163,837 Contractor 205,354 155,846 383,378 284,651 Total $ 507,164 $ 366,892 $ 961,293 $ 740,459 Operating Earnings Industrial $ 69,368 $ 37,001 $ 134,611 $ 87,234 Process 21,676 11,672 43,409 29,783 Contractor 49,997 41,109 98,163 69,739 Unallocated corporate (expense) (7,198) (10,047) (14,054) (17,209) Impairment — (34,962) — (34,962) Total $ 133,843 $ 44,773 $ 262,129 $ 134,585 Assets by segment were as follows (in thousands): June 25, December 25, Industrial $ 689,675 $ 632,165 Process 418,473 404,370 Contractor 491,189 438,067 Unallocated corporate 629,868 513,526 Total $ 2,229,205 $ 1,988,128 |
Segment Reporting - Geographic | Geographic information follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Net Sales (based on customer location) United States $ 263,722 $ 205,789 $ 495,223 $ 404,032 Other countries 243,442 161,103 466,070 336,427 Total $ 507,164 $ 366,892 $ 961,293 $ 740,459 June 25, December 25, Long-lived Assets United States $ 326,395 $ 301,643 Other countries 61,511 49,107 Total $ 387,906 $ 350,750 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Net earnings available to common shareholders $ 110,118 $ 28,832 $ 215,805 $ 101,650 Weighted average shares outstanding for basic earnings per share 169,594 166,663 169,271 167,320 Dilutive effect of stock options computed using the treasury stock method and the average market price 4,978 3,886 4,939 4,276 Weighted average shares outstanding for diluted earnings per share 174,572 170,549 174,210 171,596 Basic earnings per share $ 0.65 $ 0.17 $ 1.27 $ 0.61 Diluted earnings per share $ 0.63 $ 0.17 $ 1.24 $ 0.59 |
Share-Based Awards (Tables)
Share-Based Awards (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Options Activity 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 Weighted Average Options Weighted Average Outstanding, December 25, 2020 10,208 $ 35.02 6,553 $ 28.02 Granted 841 72.21 Exercised (674) 22.69 Canceled (14) 43.06 Outstanding, June 25, 2021 10,361 $ 38.84 7,196 $ 31.31 |
Options Fair Value Inputs | 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: Six Months Ended June 25, June 26, Expected life in years 7.5 7.5 Interest rate 1.2 % 1.5 % Volatility 25.3 % 22.0 % Dividend yield 1.0 % 1.3 % Weighted average fair value per share $ 18.91 $ 12.18 |
ESPP Fair Value Inputs | 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: Six Months Ended June 25, June 26, Expected life in years 1.0 1.0 Interest rate 0.1 % 1.5 % Volatility 40.1 % 21.9 % Dividend yield 1.1 % 1.4 % Weighted average fair value per share $ 21.50 $ 11.55 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Pension Benefits Service cost $ 2,724 $ 2,193 $ 5,445 $ 4,615 Interest cost 2,976 3,227 5,957 6,634 Expected return on assets (5,131) (4,651) (10,261) (9,401) Amortization and other 2,555 2,517 5,106 5,238 Net periodic benefit cost $ 3,124 $ 3,286 $ 6,247 $ 7,086 Postretirement Medical Service cost $ 175 $ 130 $ 350 $ 305 Interest cost 250 260 500 508 Amortization 250 190 500 367 Net periodic benefit cost $ 675 $ 580 $ 1,350 $ 1,180 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Stockholders' Equity Note [Abstract] | |
Changes in AOCI | Changes in components of accumulated other comprehensive income (loss), net of tax were as follows (in thousands): Pension and Cumulative Total Three Months Ended June 25, 2021 Balance, March 26, 2021 $ (111,493) $ (20,506) $ (131,999) Other comprehensive income (loss) before reclassifications — 5,693 5,693 Reclassified to pension cost and deferred tax 1,838 — 1,838 Balance, June 25, 2021 $ (109,655) $ (14,813) $ (124,468) Six Months Ended June 25, 2021 Balance, December 25, 2020 $ (114,129) $ (10,036) $ (124,165) Other comprehensive income (loss) before reclassifications — (4,777) (4,777) Reclassified to pension cost and deferred tax 4,474 — 4,474 Balance, June 25, 2021 $ (109,655) $ (14,813) $ (124,468) Three Months Ended June 26, 2020 Balance, March 27, 2020 $ (111,587) $ (60,743) $ (172,330) Other comprehensive income (loss) before reclassifications — 6,756 6,756 Reclassified to pension cost and deferred tax 1,892 — 1,892 Balance, June 26, 2020 $ (109,695) $ (53,987) $ (163,682) Six Months Ended June 26, 2020 Balance, December 27, 2019 $ (113,721) $ (56,066) $ (169,787) Other comprehensive income (loss) before reclassifications — 2,079 2,079 Reclassified to pension cost and deferred tax 4,026 — 4,026 Balance, June 26, 2020 $ (109,695) $ (53,987) $ (163,682) |
Credit Losses (Tables)
Credit Losses (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Allowance for Credit Loss, Current and Noncurrent [Abstract] | |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | Following is a summary of activity in the year to date allowance for credit losses (in thousands): June 25, June 26, Balance, beginning $ 3,745 $ 4,828 Additions (reversals) charged to costs and expenses 265 631 Deductions from reserves (1) (495) (291) Other additions (deductions) (2) (4) (9) Balance, ending $ 3,511 $ 5,159 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Inventory, Net [Abstract] | |
Components of Inventories | Major components of inventories were as follows (in thousands): June 25, December 25, Finished products and components $ 153,876 $ 133,122 Products and components in various stages of completion 95,695 83,791 Raw materials and purchased components 152,657 129,319 Subtotal 402,228 346,232 Reduction to LIFO cost (64,703) (60,528) Total $ 337,525 $ 285,704 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Components of other intangible assets were as follows (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of June 25, 2021 Cost $ 194,505 $ 26,074 $ 900 $ 62,633 $ 284,112 Accumulated amortization (101,173) (14,312) (376) — (115,861) Foreign currency translation (6,757) (603) — (1,030) (8,390) Book value $ 86,575 $ 11,159 $ 524 $ 61,603 $ 159,861 Weighted average life in years 13 10 5 N/A As of December 25, 2020 Cost $ 186,073 $ 25,187 $ 900 $ 61,920 $ 274,080 Accumulated amortization (93,832) (12,924) (301) — (107,057) Foreign currency translation (6,004) (538) — 188 (6,354) Book value $ 86,237 $ 11,725 $ 599 $ 62,108 $ 160,669 Weighted average life in years 13 10 5 N/A |
Future Amortization Expense | Estimated annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2021 (Remainder) 2022 2023 2024 2025 Thereafter Estimated Amortization Expense $ 9,003 $ 17,964 $ 17,076 $ 15,518 $ 14,946 $ 23,751 |
Goodwill Rollforward | Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands): Industrial Process Contractor Total Balance, December 25, 2020 $ 186,536 $ 141,513 $ 19,554 $ 347,603 Additions, adjustments from business acquisitions 13,249 — — 13,249 Foreign currency translation (2,835) 432 — (2,403) Balance, June 25, 2021 $ 196,950 $ 141,945 $ 19,554 $ 358,449 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Components of Other Current Liabilities | Components of other current liabilities were as follows (in thousands): June 25, December 25, Accrued self-insurance retentions $ 8,209 $ 8,041 Accrued warranty and service liabilities 13,748 13,082 Accrued trade promotions 12,699 12,140 Payable for employee stock purchases 7,126 14,554 Customer advances and deferred revenue 57,884 41,689 Income taxes payable 11,871 8,564 Right of return refund liability 18,072 16,303 Operating lease liabilities, current 9,760 11,178 Other 36,780 31,709 Total $ 176,149 $ 157,260 |
Accrued Warranty Activity | Following is a summary of activity in accrued warranty and service liabilities (in thousands): Balance, December 25, 2020 $ 13,082 Assumed in business acquisition 24 Charged to expense 5,271 Margin on parts sales reversed 1,741 Reductions for claims settled (6,370) Balance, June 25, 2021 $ 13,748 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 25, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Schedule | Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level June 25, December 25, Assets Cash surrender value of life insurance 2 $ 22,486 $ 19,887 Forward exchange contracts 2 33 16 Total assets at fair value $ 22,519 $ 19,903 Liabilities Contingent consideration 3 $ 10,884 $ 9,454 Deferred compensation 2 5,689 5,099 Total liabilities at fair value $ 16,573 $ 14,553 |
Segment Reporting Information -
Segment Reporting Information - Operations and Assets (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2021USD ($) | Jun. 26, 2020USD ($) | Jun. 25, 2021USD ($)segment | Jun. 26, 2020USD ($) | Dec. 25, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Revenues | $ 507,164 | $ 366,892 | $ 961,293 | $ 740,459 | |
Operating Earnings | 133,843 | 44,773 | 262,129 | 134,585 | |
Total Assets | 2,229,205 | 2,229,205 | $ 1,988,128 | ||
Operating Segments | Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 204,577 | 133,287 | 389,309 | 291,971 | |
Operating Earnings | 69,368 | 37,001 | 134,611 | 87,234 | |
Total Assets | 689,675 | 689,675 | 632,165 | ||
Operating Segments | Process | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 97,233 | 77,759 | 188,606 | 163,837 | |
Operating Earnings | 21,676 | 11,672 | 43,409 | 29,783 | |
Total Assets | 418,473 | 418,473 | 404,370 | ||
Operating Segments | Contractor | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 205,354 | 155,846 | 383,378 | 284,651 | |
Operating Earnings | 49,997 | 41,109 | 98,163 | 69,739 | |
Total Assets | 491,189 | 491,189 | 438,067 | ||
Unallocated corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating Earnings | (7,198) | (10,047) | (14,054) | (17,209) | |
Impairment - Segment Information | 0 | $ (34,962) | 0 | $ (34,962) | |
Total Assets | $ 629,868 | $ 629,868 | $ 513,526 |
Segment Reporting Information_2
Segment Reporting Information - Geographic (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2021 | Jun. 26, 2020 | Jun. 25, 2021 | Jun. 26, 2020 | Dec. 25, 2020 | |
Geographic Information [Line Items] | |||||
Revenues | $ 507,164 | $ 366,892 | $ 961,293 | $ 740,459 | |
Long-lived Assets | 387,906 | 387,906 | $ 350,750 | ||
United States | |||||
Geographic Information [Line Items] | |||||
Revenues | 263,722 | 205,789 | 495,223 | 404,032 | |
Long-lived Assets | 326,395 | 326,395 | 301,643 | ||
Other countries | |||||
Geographic Information [Line Items] | |||||
Revenues | 243,442 | $ 161,103 | 466,070 | $ 336,427 | |
Long-lived Assets | $ 61,511 | $ 61,511 | $ 49,107 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Jun. 25, 2021 | Jun. 26, 2020 | |
Earnings Per Share [Abstract] | ||||
Net earnings available to common shareholders | $ 110,118 | $ 28,832 | $ 215,805 | $ 101,650 |
Weighted average shares outstanding for basic earnings per share | 169,594 | 166,663 | 169,271 | 167,320 |
Dilutive effect of stock options computed using the treasury stock method and the average market price | 4,978 | 3,886 | 4,939 | 4,276 |
Weighted average shares outstanding for diluted earnings per share | 174,572 | 170,549 | 174,210 | 171,596 |
Basic earnings per share | $ 0.65 | $ 0.17 | $ 1.27 | $ 0.61 |
Diluted earnings per share | $ 0.63 | $ 0.17 | $ 1.24 | $ 0.59 |
Antidilutive securities excluded from the computation of diluted earnings per share | 737 | 2,530 |
Share-Based Awards - Options Ac
Share-Based Awards - Options Activity and Outstanding (Details) - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 25, 2021 | Dec. 25, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning (in shares) | 10,208 | |
Options granted (in shares) | 841 | |
Options exercised (in shares) | (674) | |
Options canceled (in shares) | (14) | |
Ending (in shares) | 10,361 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning (dollars per share) | $ 35.02 | |
Granted (dollars per share) | 72.21 | |
Exercised (dollars per share) | 22.69 | |
Canceled (dollars per share) | 43.06 | |
Ending (dollars per share) | $ 38.84 | |
Options exercisable (in shares) | 7,196 | 6,553 |
Weighted average exercise price of exercisable options (dollars per share) | $ 31.31 | $ 28.02 |
Share-Based Awards - Options Fa
Share-Based Awards - Options Fair Value Inputs (Details) - Stock Option - $ / shares | 6 Months Ended | |
Jun. 25, 2021 | Jun. 26, 2020 | |
Fair Value Assumptions and Methodology [Abstract] | ||
Expected life in years | 7 years 6 months | 7 years 6 months |
Interest rate | 1.20% | 1.50% |
Volatility | 25.30% | 22.00% |
Dividend yield | 1.00% | 1.30% |
Weighted average fair value per share (in dollars per share) | $ 18.91 | $ 12.18 |
Share-Based Awards - ESPP Fair
Share-Based Awards - ESPP Fair Value Inputs (Details) - Employee Stock Purchase Plan - $ / shares | 6 Months Ended | |
Jun. 25, 2021 | Jun. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 1 year | 1 year |
Interest rate | 0.10% | 1.50% |
Volatility | 40.10% | 21.90% |
Dividend yield | 1.10% | 1.40% |
Weighted average fair value per share (in dollars per share) | $ 21.50 | $ 11.55 |
Share-Based Awards - Narrative
Share-Based Awards - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 25, 2021 | Jun. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 13.7 | $ 15.4 |
Unrecognized compensation cost | $ 17.9 | |
Weighted average recognition period | 3 years | |
Employee Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock purchase plan shares issued | 416,000 | 400,000 |
Stock purchase plan discount from market value | 15.00% |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Jun. 25, 2021 | Jun. 26, 2020 | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,724 | $ 2,193 | $ 5,445 | $ 4,615 |
Interest cost | 2,976 | 3,227 | 5,957 | 6,634 |
Expected return on assets | (5,131) | (4,651) | (10,261) | (9,401) |
Amortization and other | 2,555 | 2,517 | 5,106 | 5,238 |
Net periodic benefit cost | 3,124 | 3,286 | 6,247 | 7,086 |
Postretirement Medical | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 175 | 130 | 350 | 305 |
Interest cost | 250 | 260 | 500 | 508 |
Amortization | 250 | 190 | 500 | 367 |
Net periodic benefit cost | $ 675 | $ 580 | $ 1,350 | $ 1,180 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Jun. 25, 2021 | Jun. 26, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | $ (131,999) | $ (172,330) | $ (124,165) | $ (169,787) |
Other comprehensive income (loss) before reclassifications | 5,693 | 6,756 | (4,777) | 2,079 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,838 | 1,892 | 4,474 | 4,026 |
Ending Accumulated other comprehensive income (loss) | (124,468) | (163,682) | (124,468) | (163,682) |
Pension and Postretirement Medical | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | (111,493) | (111,587) | (114,129) | (113,721) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,838 | 1,892 | 4,474 | 4,026 |
Ending Accumulated other comprehensive income (loss) | (109,655) | (109,695) | (109,655) | (109,695) |
Cumulative Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | (20,506) | (60,743) | (10,036) | (56,066) |
Other comprehensive income (loss) before reclassifications | 5,693 | 6,756 | (4,777) | 2,079 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | 0 |
Ending Accumulated other comprehensive income (loss) | $ (14,813) | $ (53,987) | $ (14,813) | $ (53,987) |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Dec. 25, 2020 | |
Credit Loss [Abstract] | |||
Accounts Receivable, before Allowance for Credit Loss | $ 333,000 | $ 302,000 | |
Other Receivables | 21,000 | $ 13,000 | |
Balance, beginning | 3,745 | $ 4,828 | |
Additions (reversals) charged to costs and expenses | 265 | 631 | |
Deductions from reserves | (495) | (291) | |
Other additions (deductions) | (4) | (9) | |
Balance, ending | $ 3,511 | $ 5,159 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 25, 2021 | Dec. 25, 2020 |
Inventory, Net [Abstract] | ||
Finished products and components | $ 153,876 | $ 133,122 |
Products and components in various stages of completion | 95,695 | 83,791 |
Raw materials and purchased components | 152,657 | 129,319 |
Inventory gross | 402,228 | 346,232 |
Reduction to LIFO cost | (64,703) | (60,528) |
Total | $ 337,525 | $ 285,704 |
Intangible Assets - Other Intan
Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 25, 2021 | Dec. 25, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total Cost | $ 284,112 | $ 274,080 |
Total Foreign Currency Translation | (8,390) | (6,354) |
Finite Life | ||
Accumulated amortization | (115,861) | (107,057) |
Total Book Value | 159,861 | 160,669 |
Trade Names | ||
Indefinite Life | ||
Cost | 62,633 | 61,920 |
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (1,030) | 188 |
Book value | 61,603 | 62,108 |
Customer Relationships | ||
Finite Life | ||
Cost | 194,505 | 186,073 |
Accumulated amortization | (101,173) | (93,832) |
Foreign currency translation | (6,757) | (6,004) |
Book value | $ 86,575 | $ 86,237 |
Weighted average life in years | 13 years | 13 years |
Patents and Proprietary Technology | ||
Finite Life | ||
Cost | $ 26,074 | $ 25,187 |
Accumulated amortization | (14,312) | (12,924) |
Foreign currency translation | (603) | (538) |
Book value | $ 11,159 | $ 11,725 |
Weighted average life in years | 10 years | 10 years |
Trademarks, Trade Names and Other | ||
Finite Life | ||
Cost | $ 900 | $ 900 |
Accumulated amortization | (376) | (301) |
Foreign currency translation | 0 | 0 |
Book value | $ 524 | $ 599 |
Weighted average life in years | 5 years | 5 years |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Jun. 25, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remaining estimated amortization expense 2021 | $ 9,003 |
Estimated amortization expense 2022 | 17,964 |
Estimated amortization expense 2023 | 17,076 |
Estimated amortization expense 2024 | 15,518 |
Estimated amortization expense 2025 | 14,946 |
Estimated amortization expense thereafter | $ 23,751 |
Intangible Assets - Goodwill Ro
Intangible Assets - Goodwill Rollforward (Details) $ in Thousands | 6 Months Ended |
Jun. 25, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 347,603 |
Additions, adjustments from business acquisitions | 13,249 |
Foreign currency translation | (2,403) |
Ending balance | 358,449 |
Industrial | |
Goodwill [Roll Forward] | |
Beginning balance | 186,536 |
Additions, adjustments from business acquisitions | 13,249 |
Foreign currency translation | (2,835) |
Ending balance | 196,950 |
Process | |
Goodwill [Roll Forward] | |
Beginning balance | 141,513 |
Additions, adjustments from business acquisitions | 0 |
Foreign currency translation | 432 |
Ending balance | 141,945 |
Contractor | |
Goodwill [Roll Forward] | |
Beginning balance | 19,554 |
Additions, adjustments from business acquisitions | 0 |
Foreign currency translation | 0 |
Ending balance | $ 19,554 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Jun. 25, 2021 | Jun. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 4.6 | $ 4.1 | $ 8.9 | $ 8.2 |
Other Current Liabilities - Com
Other Current Liabilities - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 25, 2021 | Dec. 25, 2020 |
Other Current Liabilities Details [Abstract] | ||
Accrued self-insurance retentions | $ 8,209 | $ 8,041 |
Accrued warranty and service liabilities | 13,748 | 13,082 |
Accrued trade promotions | 12,699 | 12,140 |
Payable for employee stock purchases | 7,126 | 14,554 |
Customer advances and deferred revenue | 57,884 | 41,689 |
Income taxes payable | 11,871 | 8,564 |
Right of return refund liability | 18,072 | 16,303 |
Operating lease liability, current | 9,760 | 11,178 |
Other | 36,780 | 31,709 |
Total | $ 176,149 | $ 157,260 |
Other Current Liabilities - Acc
Other Current Liabilities - Accrued Warranty Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 25, 2021USD ($) | |
Activity In Accrued Warranty And Service Liabilities Abstract | |
Balance, beginning of year | $ 13,082 |
Standard Product Warranty Accrual, Additions from Business Acquisition | 24 |
Charged to expense | 5,271 |
Margin on parts sales reversed | 1,741 |
Reductions for claims settled | (6,370) |
Balance, end of period | $ 13,748 |
Other Current Liabilities - Nar
Other Current Liabilities - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 25, 2021 | Jun. 26, 2020 | Dec. 25, 2020 | |
Accrued Liabilities, Current [Abstract] | |||
Customer advances and deferred revenue | $ 57.9 | $ 41.7 | |
Contract with Customer, Liability, Revenue Recognized | $ 24 | $ 14.2 |
Debt (Details)
Debt (Details) - Committed Facility [Member] $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 25, 2021USD ($) | Jun. 25, 2021USD ($) | |
Debt Disclosure [Abstract] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | $ 500 |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 500 | 500 |
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 200 | 200 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 250 | $ 250 |
Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate | ||
Debt Disclosure [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Debt Disclosure [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Line of Credit | Minimum | Revolving Credit Facility | ||
Debt Disclosure [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | |
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | |
Line of Credit | Minimum | Revolving Credit Facility | Cash flow leverage ratio no acquisition | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 1.00 | |
Line of Credit | Minimum | Revolving Credit Facility | Cash flow leverage ratio with acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 1.00 | |
Line of Credit | Minimum | Revolving Credit Facility | Interest coverage ratio no acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 1.00 | |
Line of Credit | Minimum | Revolving Credit Facility | Interest coverage ratio with acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 1.00 | |
Line of Credit | Minimum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||
Debt Disclosure [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Line of Credit | Maximum | Revolving Credit Facility | ||
Debt Disclosure [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |
Line of Credit | Maximum | Revolving Credit Facility | Cash flow leverage ratio no acquisition | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 3.50 | |
Line of Credit | Maximum | Revolving Credit Facility | Cash flow leverage ratio with acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 4.00 | |
Line of Credit | Maximum | Revolving Credit Facility | Interest coverage ratio no acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 3.00 | |
Line of Credit | Maximum | Revolving Credit Facility | Interest coverage ratio with acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 2.50 | |
Line of Credit | Maximum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||
Debt Disclosure [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jun. 25, 2021 | Dec. 25, 2020 |
Assets | ||
Total assets at fair value | $ 22,519 | $ 19,903 |
Liabilities | ||
Total liabilities at fair value | 16,573 | 14,553 |
Long term debt, carrying amount | 150,000 | 150,000 |
Long term debt, fair value | 165,000 | 170,000 |
Level 2 | ||
Assets | ||
Cash surrender value of life insurance | 22,486 | 19,887 |
Forward exchange contracts | 33 | 16 |
Liabilities | ||
Deferred compensation | 5,689 | 5,099 |
Level 3 | ||
Liabilities | ||
Contingent consideration | $ 10,884 | $ 9,454 |