Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2022 | Jul. 14, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 01, 2022 | |
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 $1.00 per share | |
Trading Symbol | GGG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 169,115,561 | |
Amendment Flag | false | |
Entity Central Index Key | 0000042888 | |
Current Fiscal Year End Date | --12-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 548,547 | $ 507,164 | $ 1,042,832 | $ 961,293 |
Cost of Goods and Services Sold | 279,487 | 243,340 | 519,297 | 450,135 |
Gross Profit | 269,060 | 263,824 | 523,535 | 511,158 |
Product development | 19,967 | 21,406 | 39,045 | 40,977 |
Selling, marketing and distribution | 62,076 | 69,126 | 125,071 | 131,354 |
General and administrative | 38,337 | 39,449 | 82,376 | 76,698 |
Operating Earnings | 148,680 | 133,843 | 277,043 | 262,129 |
Interest expense | 1,726 | 2,528 | 7,013 | 4,956 |
Other expense, net | 607 | (434) | 760 | (313) |
Earnings Before Income Taxes | 146,347 | 131,749 | 269,270 | 257,486 |
Income taxes | 28,969 | 21,631 | 51,049 | 41,681 |
Net Earnings | $ 117,378 | $ 110,118 | $ 218,221 | $ 215,805 |
Basic earnings per share | $ 0.69 | $ 0.65 | $ 1.29 | $ 1.27 |
Diluted earnings per share | $ 0.68 | $ 0.63 | $ 1.26 | $ 1.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Earnings | $ 117,378 | $ 110,118 | $ 218,221 | $ 215,805 |
Components of other comprehensive income (loss) | ||||
Cumulative translation adjustment | (13,532) | 5,693 | (16,492) | (4,777) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | 1,368 | 2,373 | 2,262 | 5,681 |
Pension and postretirement medical liability adjustment | (320) | (535) | (514) | (1,207) |
Other comprehensive income (loss) | (12,484) | 7,531 | (14,744) | (303) |
Comprehensive Income | $ 104,894 | $ 117,649 | $ 203,477 | $ 215,502 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 413,359 | $ 624,302 |
Accounts receivable, less allowances of $6,600 and $3,900 | 373,141 | 325,132 |
Inventories | 450,974 | 382,301 |
Other current assets | 39,002 | 31,886 |
Total current assets | 1,276,476 | 1,363,621 |
Property, Plant and Equipment | ||
Property, Plant and Equipment, net | 516,156 | 451,061 |
Goodwill | 365,491 | 356,255 |
Other Intangible Assets, net | 145,201 | 149,740 |
Operating Lease, Right-of-Use Asset | 31,055 | 30,046 |
Deferred Income Tax Assets, Net | 37,137 | 55,786 |
Other Assets | 32,762 | 36,689 |
Total Assets | 2,404,278 | 2,443,198 |
Current Liabilities | ||
Notes payable to banks | 55,522 | 43,489 |
Current portion of long term debt | 0 | 75,000 |
Trade accounts payable | 85,452 | 78,432 |
Salaries and incentives | 53,198 | 82,941 |
Dividends payable | 35,794 | 35,771 |
Other current liabilities | 194,092 | 191,159 |
Total current liabilities | 424,058 | 506,792 |
Long-term Debt | 75,000 | 75,000 |
Retirement Benefits and Deferred Compensation | 103,341 | 106,897 |
Operating Lease Liabilities | 23,112 | 23,527 |
Deferred Income Taxes | 9,273 | 10,661 |
Other Non-current Liabilities | 12,220 | 10,978 |
Shareholders’ Equity | ||
Common stock | 169,114 | 170,308 |
Additional paid-in-capital | 770,209 | 742,288 |
Retained earnings | 912,864 | 876,916 |
Accumulated other comprehensive income (loss) | (94,913) | (80,169) |
Total shareholders’ equity | 1,757,274 | 1,709,343 |
Total Liabilities and Shareholders’ Equity | $ 2,404,278 | $ 2,443,198 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jul. 01, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for Credits | $ 6.6 | $ 3.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2022 | Jun. 25, 2021 | |
Net Earnings | $ 218,221 | $ 215,805 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 31,453 | 29,812 |
Deferred income taxes | 14,743 | (10,313) |
Share-based compensation | 14,386 | 13,745 |
Change in | ||
Accounts receivable | (56,263) | (38,747) |
Inventories | (70,879) | (51,359) |
Trade accounts payable | 8,369 | 14,496 |
Salaries and incentives | (29,201) | 8,334 |
Retirement benefits and deferred compensation | 349 | 5,980 |
Other accrued liabilities | (386) | 32,399 |
Other | 4,193 | (105) |
Net cash provided by operating activities | 134,985 | 220,047 |
Cash Flows From Investing Activities | ||
Property, plant and equipment additions | (88,861) | (54,759) |
Acquisition of businesses, net of cash acquired | (25,296) | (19,322) |
Other | (397) | (112) |
Net cash used in investing activities | (114,554) | (74,193) |
Cash Flows From Financing Activities | ||
Borrowings on short-term lines of credit, net | 13,830 | (9,282) |
Payments on long-term debt | (75,000) | (70) |
Payments of debt issuance costs | 0 | 1,422 |
Common stock issued | 23,410 | 33,216 |
Common stock repurchased | (120,021) | 0 |
Taxes paid related to net share settlement of equity awards | (1,219) | 0 |
Cash dividends paid | (71,341) | (63,414) |
Net cash used in financing activities | (230,341) | (40,972) |
Effect of exchange rate changes on cash | (1,033) | (1,004) |
Net increase (decrease) in cash and cash equivalents | (210,943) | 103,878 |
Cash and Cash Equivalents | ||
Beginning of year | 624,302 | 378,909 |
End of period | $ 413,359 | $ 482,787 |
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 | $ 1,283,904 | $ 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 | |
Restricted stock canceled (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) |
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 | |
Restricted stock canceled (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 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,481,263 | 169,667 | 715,635 | 720,429 | (124,468) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,709,343 | 170,308 | 742,288 | 876,916 | (80,169) |
Shares issued | 22,192 | 507 | 21,685 | ||
Shares repurchased | (120,021) | (1,701) | (7,412) | (110,908) | |
Stock compensation cost | 13,649 | 13,649 | |||
Restricted stock canceled (issued) | (1) | (1) | |||
Net Earnings | 218,221 | 218,221 | |||
Dividends, Common Stock, Cash | (71,365) | (71,365) | |||
Other comprehensive income (loss) | (14,744) | (14,744) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,690,256 | 169,223 | 761,959 | 841,503 | (82,429) |
Shares issued | 2,117 | 70 | 2,047 | ||
Shares repurchased | (11,316) | (179) | (777) | (10,360) | |
Stock compensation cost | 6,980 | 6,980 | |||
Restricted stock canceled (issued) | 0 | 0 | |||
Net Earnings | 117,378 | 117,378 | |||
Dividends, Common Stock, Cash | (35,657) | (35,657) | |||
Other comprehensive income (loss) | (12,484) | (12,484) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,757,274 | $ 169,114 | $ 770,209 | $ 912,864 | $ (94,913) |
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 | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.210 | $ 0.188 | $ 0.420 | $ 0.375 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, 2022 and the related statements of earnings, comprehensive income and shareholders' equity for the three and six months ended July 1, 2022 and June 25, 2021, and cash flows for the six months ended July 1, 2022 and June 25, 2021 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 July 1, 2022, 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 2021 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 |
Jul. 01, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Effective January 1, 2022, our high performance coatings and foam product offerings previously included within the Applied Fluid Technologies division of the Industrial segment were realigned and are now managed under the Contractor segment. This change aligns the types of products offered and markets served within the segments. Prior year segment information has been restated to conform to the current organizational structure. 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 July 1, June 25, July 1, June 25, Net Sales Industrial $ 158,325 $ 144,448 $ 302,994 $ 274,312 Process 124,483 97,232 239,507 188,605 Contractor 265,739 265,484 500,331 498,376 Total $ 548,547 $ 507,164 $ 1,042,832 $ 961,293 Operating Earnings Industrial $ 55,201 $ 45,709 $ 107,831 $ 88,067 Process 31,057 21,676 58,545 43,409 Contractor 68,244 73,656 127,191 144,707 Unallocated corporate (expense) (5,822) (7,198) (16,524) (14,054) Total $ 148,680 $ 133,843 $ 277,043 $ 262,129 Assets by segment were as follows (in thousands): July 1, December 31, Industrial $ 604,654 $ 601,843 Process 517,098 436,203 Contractor 658,361 599,726 Unallocated corporate 624,165 805,426 Total $ 2,404,278 $ 2,443,198 Geographic information follows (in thousands): Three Months Ended Six Months Ended July 1, June 25, July 1, June 25, Net Sales (based on customer location) United States $ 296,009 $ 263,722 $ 551,091 $ 495,223 Other countries 252,538 243,442 491,741 466,070 Total $ 548,547 $ 507,164 $ 1,042,832 $ 961,293 July 1, December 31, Long-lived Assets United States $ 456,238 $ 388,835 Other countries 59,918 62,226 Total $ 516,156 $ 451,061 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, June 25, July 1, June 25, Net earnings available to common shareholders $ 117,378 $ 110,118 $ 218,221 $ 215,805 Weighted average shares outstanding for basic earnings per share 169,128 169,594 169,469 169,271 Dilutive effect of stock options computed using the treasury stock method and the average market price 3,570 4,978 4,219 4,939 Weighted average shares outstanding for diluted earnings per share 172,698 174,572 173,688 174,210 Basic earnings per share $ 0.69 $ 0.65 $ 1.29 $ 1.27 Diluted earnings per share $ 0.68 $ 0.63 $ 1.26 $ 1.24 Stock options to purchase 1,632,000 and 737,000 shares were not included in the July 1, 2022 and June 25, 2021 computations of diluted earnings per share, respectively, because they would have been anti-dilutive. |
Share-Based Awards
Share-Based Awards | 6 Months Ended |
Jul. 01, 2022 | |
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 31, 2021 9,575 $ 39.31 7,296 $ 33.75 Granted 831 71.73 Exercised (228) 24.62 Canceled (24) 43.75 Outstanding, July 1, 2022 10,154 $ 42.29 7,809 $ 36.06 The Company recognized year-to-date share-based compensation of $12.9 million in 2022 and $13.7 million in 2021. As of July 1, 2022, there was $14.9 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 July 1, June 25, Expected life in years 7.3 7.5 Interest rate 1.9 % 1.2 % Volatility 25.5 % 25.3 % Dividend yield 1.2 % 1.0 % Weighted average fair value per share $ 19.06 $ 18.91 Under the Company’s Employee Stock Purchase Plan, the Company issued 319,000 shares in 2022 and 416,000 shares in 2021. 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 July 1, June 25, Expected life in years 1.0 1.0 Interest rate 0.9 % 0.1 % Volatility 20.5 % 40.1 % Dividend yield 1.2 % 1.1 % Weighted average fair value per share $ 16.01 $ 21.50 |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, June 25, July 1, June 25, Pension Benefits Service cost $ 1,964 $ 2,724 $ 4,134 $ 5,445 Interest cost 2,766 2,976 5,504 5,957 Expected return on assets (4,777) (5,131) (9,579) (10,261) Amortization and other 1,419 2,555 2,495 5,106 Net periodic benefit cost $ 1,372 $ 3,124 $ 2,554 $ 6,247 Postretirement Medical Service cost $ 83 $ 175 $ 258 $ 350 Interest cost 195 250 420 500 Amortization (2) 250 173 500 Net periodic benefit cost $ 276 $ 675 $ 851 $ 1,350 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, 2022 Balance, April 1, 2022 $ (59,407) $ (23,022) $ (82,429) Other comprehensive income (loss) before reclassifications — (13,532) (13,532) Reclassified to pension cost and deferred tax 1,048 — 1,048 Balance, July 1, 2022 $ (58,359) $ (36,554) $ (94,913) Six Months Ended July 1, 2022 Balance, December 31, 2021 $ (60,107) $ (20,062) $ (80,169) Other comprehensive income (loss) before reclassifications — (16,492) (16,492) Reclassified to pension cost and deferred tax 1,748 — 1,748 Balance, July 1, 2022 $ (58,359) $ (36,554) $ (94,913) Three Months Ended June 25, 2021 Balance, March 26, 2021 $ (111,493) $ (20,506) $ (131,999) Other comprehensive income (loss) before reclassifications — 5,693 5,693 Reclassified to pension cost and deferred tax 1,838 — 1,838 Balance, June 25, 2021 $ (109,655) $ (14,813) $ (124,468) Six Months Ended June 25, 2021 Balance, December 25, 2020 $ (114,129) $ (10,036) $ (124,165) Other comprehensive income (loss) before reclassifications — (4,777) (4,777) Reclassified to pension cost and deferred tax 4,474 — 4,474 Balance, June 25, 2021 $ (109,655) $ (14,813) $ (124,468) |
Receivables and Credit Losses
Receivables and Credit Losses | 6 Months Ended |
Jul. 01, 2022 | |
Credit Loss [Abstract] | |
Receivables and Credit Losses | Receivables and Credit Losses Accounts receivable includes trade receivables of $361 million and other receivables of $12 million as of July 1, 2022 and $315 million and $10 million, respectively, as of December 31, 2021. Allowance for Credit Losses Following is a summary of activity in the year to date allowance for credit losses (in thousands): July 1, June 25, Balance, beginning $ 3,254 $ 3,745 Additions (reversals) charged to costs and expenses 3,246 265 Deductions from reserves (1) (575) (495) Other additions (deductions) (2) (236) (4) Balance, ending $ 5,688 $ 3,511 (1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (2) Includes effects of foreign currency translation. |
Inventories
Inventories | 6 Months Ended |
Jul. 01, 2022 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major components of inventories were as follows (in thousands): July 1, December 31, Finished products and components $ 197,042 $ 166,922 Products and components in various stages of completion 137,268 117,063 Raw materials and purchased components 221,746 185,291 Subtotal 556,056 469,276 Reduction to LIFO cost (105,082) (86,975) Total $ 450,974 $ 382,301 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, 2022 Cost $ 202,903 $ 26,974 $ 1,700 $ 62,633 $ 294,210 Accumulated amortization (116,312) (17,176) (581) — (134,069) Foreign currency translation (10,815) (930) — (3,195) (14,940) Book value $ 75,776 $ 8,868 $ 1,119 $ 59,438 $ 145,201 Weighted average life in years 13 9 5 N/A As of December 31, 2021 Cost $ 194,505 $ 26,074 $ 900 $ 62,633 $ 284,112 Accumulated amortization (108,657) (15,734) (452) — (124,843) Foreign currency translation (7,710) (707) — (1,112) (9,529) Book value $ 78,138 $ 9,633 $ 448 $ 61,521 $ 149,740 Weighted average life in years 13 10 5 N/A Amortization of intangibles for the quarter was $4.6 million in 2022 and $4.6 million in 2021 and for the year to date was $9.4 million in 2022 and $8.9 million in 2021. Estimated annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2022 (Remainder) 2023 2024 2025 2026 Thereafter Estimated Amortization Expense $ 9,253 $ 17,309 $ 16,076 $ 15,511 $ 8,915 $ 18,699 Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands): Industrial Process Contractor Total Balance, December 31, 2021 $ 185,733 $ 141,304 $ 29,218 $ 356,255 Additions, adjustments from business acquisitions — 16,994 — 16,994 Foreign currency translation (5,977) (1,781) — (7,758) Balance, July 1, 2022 $ 179,756 $ 156,517 $ 29,218 $ 365,491 In the first quarter, the Company completed an acquisition of a business that is not material to the consolidated financial statements. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jul. 01, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities Components of other current liabilities were as follows (in thousands): July 1, December 31, Accrued self-insurance retentions $ 9,553 $ 9,303 Accrued warranty and service liabilities 14,188 14,463 Accrued trade promotions 12,762 15,872 Payable for employee stock purchases 8,767 15,746 Customer advances and deferred revenue 69,222 60,554 Income taxes payable 12,975 5,200 Right of return refund liability 18,556 18,614 Operating lease liabilities, current 9,384 9,096 Other 38,685 42,311 Total $ 194,092 $ 191,159 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 31, 2021 $ 14,463 Assumed in business acquisition 38 Charged to expense 3,807 Margin on parts sales reversed 1,335 Reductions for claims settled (5,455) Balance, July 1, 2022 $ 14,188 Customer Advances and Deferred Revenue |
Fair Value
Fair Value | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, December 31, Assets Cash surrender value of life insurance 2 $ 18,872 $ 23,147 Forward exchange contracts 2 145 — Total assets at fair value $ 19,017 $ 23,147 Liabilities Contingent consideration 3 $ 13,697 $ 12,274 Deferred compensation 2 5,537 5,962 Forward exchange contracts 2 — 111 Total liabilities at fair value $ 19,234 $ 18,347 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 $75 million and estimated fair value of $80 million as of July 1, 2022. As of December 31, 2021, the long- term notes had a carrying amount of $150 million and estimated fair value of $165 million. 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 |
Jul. 01, 2022 | |
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 July 1, June 25, July 1, June 25, Net Sales Industrial $ 158,325 $ 144,448 $ 302,994 $ 274,312 Process 124,483 97,232 239,507 188,605 Contractor 265,739 265,484 500,331 498,376 Total $ 548,547 $ 507,164 $ 1,042,832 $ 961,293 Operating Earnings Industrial $ 55,201 $ 45,709 $ 107,831 $ 88,067 Process 31,057 21,676 58,545 43,409 Contractor 68,244 73,656 127,191 144,707 Unallocated corporate (expense) (5,822) (7,198) (16,524) (14,054) Total $ 148,680 $ 133,843 $ 277,043 $ 262,129 Assets by segment were as follows (in thousands): July 1, December 31, Industrial $ 604,654 $ 601,843 Process 517,098 436,203 Contractor 658,361 599,726 Unallocated corporate 624,165 805,426 Total $ 2,404,278 $ 2,443,198 |
Segment Reporting - Geographic | Geographic information follows (in thousands): Three Months Ended Six Months Ended July 1, June 25, July 1, June 25, Net Sales (based on customer location) United States $ 296,009 $ 263,722 $ 551,091 $ 495,223 Other countries 252,538 243,442 491,741 466,070 Total $ 548,547 $ 507,164 $ 1,042,832 $ 961,293 July 1, December 31, Long-lived Assets United States $ 456,238 $ 388,835 Other countries 59,918 62,226 Total $ 516,156 $ 451,061 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, June 25, July 1, June 25, Net earnings available to common shareholders $ 117,378 $ 110,118 $ 218,221 $ 215,805 Weighted average shares outstanding for basic earnings per share 169,128 169,594 169,469 169,271 Dilutive effect of stock options computed using the treasury stock method and the average market price 3,570 4,978 4,219 4,939 Weighted average shares outstanding for diluted earnings per share 172,698 174,572 173,688 174,210 Basic earnings per share $ 0.69 $ 0.65 $ 1.29 $ 1.27 Diluted earnings per share $ 0.68 $ 0.63 $ 1.26 $ 1.24 |
Share-Based Awards (Tables)
Share-Based Awards (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
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 31, 2021 9,575 $ 39.31 7,296 $ 33.75 Granted 831 71.73 Exercised (228) 24.62 Canceled (24) 43.75 Outstanding, July 1, 2022 10,154 $ 42.29 7,809 $ 36.06 |
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 July 1, June 25, Expected life in years 7.3 7.5 Interest rate 1.9 % 1.2 % Volatility 25.5 % 25.3 % Dividend yield 1.2 % 1.0 % Weighted average fair value per share $ 19.06 $ 18.91 |
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 July 1, June 25, Expected life in years 1.0 1.0 Interest rate 0.9 % 0.1 % Volatility 20.5 % 40.1 % Dividend yield 1.2 % 1.1 % Weighted average fair value per share $ 16.01 $ 21.50 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, June 25, July 1, June 25, Pension Benefits Service cost $ 1,964 $ 2,724 $ 4,134 $ 5,445 Interest cost 2,766 2,976 5,504 5,957 Expected return on assets (4,777) (5,131) (9,579) (10,261) Amortization and other 1,419 2,555 2,495 5,106 Net periodic benefit cost $ 1,372 $ 3,124 $ 2,554 $ 6,247 Postretirement Medical Service cost $ 83 $ 175 $ 258 $ 350 Interest cost 195 250 420 500 Amortization (2) 250 173 500 Net periodic benefit cost $ 276 $ 675 $ 851 $ 1,350 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, 2022 Balance, April 1, 2022 $ (59,407) $ (23,022) $ (82,429) Other comprehensive income (loss) before reclassifications — (13,532) (13,532) Reclassified to pension cost and deferred tax 1,048 — 1,048 Balance, July 1, 2022 $ (58,359) $ (36,554) $ (94,913) Six Months Ended July 1, 2022 Balance, December 31, 2021 $ (60,107) $ (20,062) $ (80,169) Other comprehensive income (loss) before reclassifications — (16,492) (16,492) Reclassified to pension cost and deferred tax 1,748 — 1,748 Balance, July 1, 2022 $ (58,359) $ (36,554) $ (94,913) Three Months Ended June 25, 2021 Balance, March 26, 2021 $ (111,493) $ (20,506) $ (131,999) Other comprehensive income (loss) before reclassifications — 5,693 5,693 Reclassified to pension cost and deferred tax 1,838 — 1,838 Balance, June 25, 2021 $ (109,655) $ (14,813) $ (124,468) Six Months Ended June 25, 2021 Balance, December 25, 2020 $ (114,129) $ (10,036) $ (124,165) Other comprehensive income (loss) before reclassifications — (4,777) (4,777) Reclassified to pension cost and deferred tax 4,474 — 4,474 Balance, June 25, 2021 $ (109,655) $ (14,813) $ (124,468) |
Receivables and Credit Losses (
Receivables and Credit Losses (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Credit Loss [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): July 1, June 25, Balance, beginning $ 3,254 $ 3,745 Additions (reversals) charged to costs and expenses 3,246 265 Deductions from reserves (1) (575) (495) Other additions (deductions) (2) (236) (4) Balance, ending $ 5,688 $ 3,511 (1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (2) Includes effects of foreign currency translation. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Inventory, Net [Abstract] | |
Components of Inventories | Major components of inventories were as follows (in thousands): July 1, December 31, Finished products and components $ 197,042 $ 166,922 Products and components in various stages of completion 137,268 117,063 Raw materials and purchased components 221,746 185,291 Subtotal 556,056 469,276 Reduction to LIFO cost (105,082) (86,975) Total $ 450,974 $ 382,301 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, 2022 Cost $ 202,903 $ 26,974 $ 1,700 $ 62,633 $ 294,210 Accumulated amortization (116,312) (17,176) (581) — (134,069) Foreign currency translation (10,815) (930) — (3,195) (14,940) Book value $ 75,776 $ 8,868 $ 1,119 $ 59,438 $ 145,201 Weighted average life in years 13 9 5 N/A As of December 31, 2021 Cost $ 194,505 $ 26,074 $ 900 $ 62,633 $ 284,112 Accumulated amortization (108,657) (15,734) (452) — (124,843) Foreign currency translation (7,710) (707) — (1,112) (9,529) Book value $ 78,138 $ 9,633 $ 448 $ 61,521 $ 149,740 Weighted average life in years 13 10 5 N/A |
Future Amortization Expense | Estimated annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2022 (Remainder) 2023 2024 2025 2026 Thereafter Estimated Amortization Expense $ 9,253 $ 17,309 $ 16,076 $ 15,511 $ 8,915 $ 18,699 |
Goodwill Rollforward | Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands): Industrial Process Contractor Total Balance, December 31, 2021 $ 185,733 $ 141,304 $ 29,218 $ 356,255 Additions, adjustments from business acquisitions — 16,994 — 16,994 Foreign currency translation (5,977) (1,781) — (7,758) Balance, July 1, 2022 $ 179,756 $ 156,517 $ 29,218 $ 365,491 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Components of Other Current Liabilities | Components of other current liabilities were as follows (in thousands): July 1, December 31, Accrued self-insurance retentions $ 9,553 $ 9,303 Accrued warranty and service liabilities 14,188 14,463 Accrued trade promotions 12,762 15,872 Payable for employee stock purchases 8,767 15,746 Customer advances and deferred revenue 69,222 60,554 Income taxes payable 12,975 5,200 Right of return refund liability 18,556 18,614 Operating lease liabilities, current 9,384 9,096 Other 38,685 42,311 Total $ 194,092 $ 191,159 |
Accrued Warranty Activity | Following is a summary of activity in accrued warranty and service liabilities (in thousands): Balance, December 31, 2021 $ 14,463 Assumed in business acquisition 38 Charged to expense 3,807 Margin on parts sales reversed 1,335 Reductions for claims settled (5,455) Balance, July 1, 2022 $ 14,188 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
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 July 1, December 31, Assets Cash surrender value of life insurance 2 $ 18,872 $ 23,147 Forward exchange contracts 2 145 — Total assets at fair value $ 19,017 $ 23,147 Liabilities Contingent consideration 3 $ 13,697 $ 12,274 Deferred compensation 2 5,537 5,962 Forward exchange contracts 2 — 111 Total liabilities at fair value $ 19,234 $ 18,347 |
Segment Reporting Information -
Segment Reporting Information - Operations and Assets (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2022 USD ($) | Jun. 25, 2021 USD ($) | Jul. 01, 2022 USD ($) segment | Jun. 25, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Revenues | $ 548,547 | $ 507,164 | $ 1,042,832 | $ 961,293 | |
Operating Earnings | 148,680 | 133,843 | 277,043 | 262,129 | |
Total Assets | 2,404,278 | 2,404,278 | $ 2,443,198 | ||
Operating Segments | Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 158,325 | 144,448 | 302,994 | 274,312 | |
Operating Earnings | 55,201 | 45,709 | 107,831 | 88,067 | |
Total Assets | 604,654 | 604,654 | 601,843 | ||
Operating Segments | Process | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 124,483 | 97,232 | 239,507 | 188,605 | |
Operating Earnings | 31,057 | 21,676 | 58,545 | 43,409 | |
Total Assets | 517,098 | 517,098 | 436,203 | ||
Operating Segments | Contractor | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 265,739 | 265,484 | 500,331 | 498,376 | |
Operating Earnings | 68,244 | 73,656 | 127,191 | 144,707 | |
Total Assets | 658,361 | 658,361 | 599,726 | ||
Unallocated corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating Earnings | (5,822) | $ (7,198) | (16,524) | $ (14,054) | |
Total Assets | $ 624,165 | $ 624,165 | $ 805,426 |
Segment Reporting Information_2
Segment Reporting Information - Geographic (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | Dec. 31, 2021 | |
Geographic Information [Line Items] | |||||
Revenues | $ 548,547 | $ 507,164 | $ 1,042,832 | $ 961,293 | |
Long-lived Assets | 516,156 | 516,156 | $ 451,061 | ||
United States | |||||
Geographic Information [Line Items] | |||||
Revenues | 296,009 | 263,722 | 551,091 | 495,223 | |
Long-lived Assets | 456,238 | 456,238 | 388,835 | ||
Other countries | |||||
Geographic Information [Line Items] | |||||
Revenues | 252,538 | $ 243,442 | 491,741 | $ 466,070 | |
Long-lived Assets | $ 59,918 | $ 59,918 | $ 62,226 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Earnings Per Share [Abstract] | ||||
Net earnings available to common shareholders | $ 117,378 | $ 110,118 | $ 218,221 | $ 215,805 |
Weighted average shares outstanding for basic earnings per share | 169,128 | 169,594 | 169,469 | 169,271 |
Dilutive effect of stock options computed using the treasury stock method and the average market price | 3,570 | 4,978 | 4,219 | 4,939 |
Weighted average shares outstanding for diluted earnings per share | 172,698 | 174,572 | 173,688 | 174,210 |
Basic earnings per share | $ 0.69 | $ 0.65 | $ 1.29 | $ 1.27 |
Diluted earnings per share | $ 0.68 | $ 0.63 | $ 1.26 | $ 1.24 |
Antidilutive securities excluded from the computation of diluted earnings per share | 1,632 | 737 |
Share-Based Awards - Options Ac
Share-Based Awards - Options Activity and Outstanding (Details) - $ / shares shares in Thousands | 6 Months Ended | |
Jul. 01, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning (in shares) | 9,575 | |
Options granted (in shares) | 831 | |
Options exercised (in shares) | (228) | |
Options canceled (in shares) | (24) | |
Ending (in shares) | 10,154 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning (dollars per share) | $ 39.31 | |
Granted (dollars per share) | 71.73 | |
Exercised (dollars per share) | 24.62 | |
Canceled (dollars per share) | 43.75 | |
Ending (dollars per share) | $ 42.29 | |
Options exercisable (in shares) | 7,809 | 7,296 |
Weighted average exercise price of exercisable options (dollars per share) | $ 36.06 | $ 33.75 |
Share-Based Awards - Options Fa
Share-Based Awards - Options Fair Value Inputs (Details) - Stock Option - $ / shares | 6 Months Ended | |
Jul. 01, 2022 | Jun. 25, 2021 | |
Fair Value Assumptions and Methodology [Abstract] | ||
Expected life in years | 7 years 3 months 18 days | 7 years 6 months |
Interest rate | 1.90% | 1.20% |
Volatility | 25.50% | 25.30% |
Dividend yield | 1.20% | 1% |
Weighted average fair value per share (in dollars per share) | $ 19.06 | $ 18.91 |
Share-Based Awards - ESPP Fair
Share-Based Awards - ESPP Fair Value Inputs (Details) - Employee Stock Purchase Plan - $ / shares | 6 Months Ended | |
Jul. 01, 2022 | Jun. 25, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 1 year | 1 year |
Interest rate | 0.90% | 0.10% |
Volatility | 20.50% | 40.10% |
Dividend yield | 1.20% | 1.10% |
Weighted average fair value per share (in dollars per share) | $ 16.01 | $ 21.50 |
Share-Based Awards - Narrative
Share-Based Awards - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 01, 2022 | Jun. 25, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 12.9 | $ 13.7 |
Unrecognized compensation cost | $ 14.9 | |
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 | 319,000 | 416,000 |
Stock purchase plan discount from market value | 15% |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,964 | $ 2,724 | $ 4,134 | $ 5,445 |
Interest cost | 2,766 | 2,976 | 5,504 | 5,957 |
Expected return on assets | (4,777) | (5,131) | (9,579) | (10,261) |
Amortization and other | 1,419 | 2,555 | 2,495 | 5,106 |
Net periodic benefit cost | 1,372 | 3,124 | 2,554 | 6,247 |
Postretirement Medical | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 83 | 175 | 258 | 350 |
Interest cost | 195 | 250 | 420 | 500 |
Amortization | (2) | 250 | 173 | 500 |
Net periodic benefit cost | $ 276 | $ 675 | $ 851 | $ 1,350 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | $ (82,429) | $ (131,999) | $ (80,169) | $ (124,165) |
Other comprehensive income (loss) before reclassifications | (13,532) | 5,693 | (16,492) | (4,777) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,048 | 1,838 | 1,748 | 4,474 |
Ending Accumulated other comprehensive income (loss) | (94,913) | (124,468) | (94,913) | (124,468) |
Pension and Postretirement Medical | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | (59,407) | (111,493) | (60,107) | (114,129) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,048 | 1,838 | 1,748 | 4,474 |
Ending Accumulated other comprehensive income (loss) | (58,359) | (109,655) | (58,359) | (109,655) |
Cumulative Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | (23,022) | (20,506) | (20,062) | (10,036) |
Other comprehensive income (loss) before reclassifications | (13,532) | 5,693 | (16,492) | (4,777) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | 0 |
Ending Accumulated other comprehensive income (loss) | $ (36,554) | $ (14,813) | $ (36,554) | $ (14,813) |
Receivables and Credit Losses_2
Receivables and Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Dec. 31, 2021 | |
Credit Loss [Abstract] | |||
Accounts Receivable, before Allowance for Credit Loss | $ 361,000 | $ 315,000 | |
Other Receivables | 12,000 | $ 10,000 | |
Balance, beginning | 3,254 | $ 3,745 | |
Additions (reversals) charged to costs and expenses | 3,246 | 265 | |
Deductions from reserves | (575) | (495) | |
Other additions (deductions) | (236) | (4) | |
Balance, ending | $ 5,688 | $ 3,511 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Finished products and components | $ 197,042 | $ 166,922 |
Products and components in various stages of completion | 137,268 | 117,063 |
Raw materials and purchased components | 221,746 | 185,291 |
Inventory gross | 556,056 | 469,276 |
Reduction to LIFO cost | (105,082) | (86,975) |
Total | $ 450,974 | $ 382,301 |
Intangible Assets - Other Intan
Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Apr. 01, 2022 | Jul. 01, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Total Cost | $ 294,210 | $ 284,112 | |
Total Foreign Currency Translation | (14,940) | (9,529) | |
Finite Life | |||
Accumulated amortization | (134,069) | (124,843) | |
Total Book Value | 145,201 | 149,740 | |
Trade Names | |||
Indefinite Life | |||
Cost | 62,633 | 62,633 | |
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (3,195) | (1,112) | |
Book value | 59,438 | 61,521 | |
Customer Relationships | |||
Finite Life | |||
Cost | 202,903 | 194,505 | |
Accumulated amortization | (116,312) | (108,657) | |
Foreign currency translation | (10,815) | (7,710) | |
Book value | $ 75,776 | 78,138 | |
Weighted average life in years | 13 years | 13 years | |
Patents and Proprietary Technology | |||
Finite Life | |||
Cost | $ 26,974 | 26,074 | |
Accumulated amortization | (17,176) | (15,734) | |
Foreign currency translation | (930) | (707) | |
Book value | $ 8,868 | 9,633 | |
Weighted average life in years | 10 years | 9 years | |
Trademarks, Trade Names and Other | |||
Finite Life | |||
Cost | $ 1,700 | 900 | |
Accumulated amortization | (581) | (452) | |
Foreign currency translation | 0 | 0 | |
Book value | $ 1,119 | $ 448 | |
Weighted average life in years | 5 years | 5 years |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Jul. 01, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remaining estimated amortization expense 2022 | $ 9,253 |
Estimated amortization expense 2023 | 17,309 |
Estimated amortization expense 2024 | 16,076 |
Estimated amortization expense 2025 | 15,511 |
Estimated amortization expense 2026 | 8,915 |
Estimated amortization expense thereafter | $ 18,699 |
Intangible Assets - Goodwill Ro
Intangible Assets - Goodwill Rollforward (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 356,255 |
Additions, adjustments from business acquisitions | 16,994 |
Foreign currency translation | (7,758) |
Ending balance | 365,491 |
Industrial | |
Goodwill [Roll Forward] | |
Beginning balance | 185,733 |
Additions, adjustments from business acquisitions | 0 |
Foreign currency translation | (5,977) |
Ending balance | 179,756 |
Process | |
Goodwill [Roll Forward] | |
Beginning balance | 141,304 |
Additions, adjustments from business acquisitions | 16,994 |
Foreign currency translation | (1,781) |
Ending balance | 156,517 |
Contractor | |
Goodwill [Roll Forward] | |
Beginning balance | 29,218 |
Additions, adjustments from business acquisitions | 0 |
Foreign currency translation | 0 |
Ending balance | $ 29,218 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 4.6 | $ 4.6 | $ 9.4 | $ 8.9 |
Other Current Liabilities - Com
Other Current Liabilities - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2021 |
Other Current Liabilities Details [Abstract] | ||
Accrued self-insurance retentions | $ 9,553 | $ 9,303 |
Accrued warranty and service liabilities | 14,188 | 14,463 |
Accrued trade promotions | 12,762 | 15,872 |
Payable for employee stock purchases | 8,767 | 15,746 |
Customer advances and deferred revenue | 69,222 | 60,554 |
Income taxes payable | 12,975 | 5,200 |
Right of return refund liability | 18,556 | 18,614 |
Operating lease liability, current | 9,384 | 9,096 |
Other | 38,685 | 42,311 |
Total | $ 194,092 | $ 191,159 |
Other Current Liabilities - Acc
Other Current Liabilities - Accrued Warranty Activity (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2022 USD ($) | |
Activity In Accrued Warranty And Service Liabilities Abstract | |
Balance, beginning of year | $ 14,463 |
Standard Product Warranty Accrual, Additions from Business Acquisition | 38 |
Charged to expense | 3,807 |
Margin on parts sales reversed | 1,335 |
Reductions for claims settled | (5,455) |
Balance, end of period | $ 14,188 |
Other Current Liabilities - Nar
Other Current Liabilities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Accrued Liabilities, Current [Abstract] | ||||
Contract with Customer, Liability, Revenue Recognized | $ 18.3 | $ 6.6 | $ 40.8 | $ 24 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2021 |
Assets | ||
Total assets at fair value | $ 19,017 | $ 23,147 |
Liabilities | ||
Total liabilities at fair value | 19,234 | 18,347 |
Long term debt, carrying amount | 75,000 | 150,000 |
Long term debt, fair value | 80,000 | 165,000 |
Level 2 | ||
Assets | ||
Cash surrender value of life insurance | 18,872 | 23,147 |
Forward exchange contracts | 145 | 0 |
Liabilities | ||
Deferred compensation | 5,537 | 5,962 |
Forward exchange contracts | 0 | 111 |
Level 3 | ||
Liabilities | ||
Contingent consideration | $ 13,697 | $ 12,274 |