Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2022 | Jan. 11, 2023 | Jul. 01, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-09249 | ||
Entity Registrant Name | Graco Inc. | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0285640 | ||
Entity Address, Address Line One | 88 - 11th Avenue N.E. | ||
Entity Address, City or Town | Minneapolis, | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55413 | ||
City Area Code | (612) | ||
Local Phone Number | 623-6000 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | GGG | ||
Security Exchange Name | NYSE | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
IcfrAuditorAttestationFlag | true | ||
Entity Shell Company | false | ||
Common stock outstanding | 169,133,922 | ||
Entity Public Float | $ 10,063,468,359 | ||
Entity Common Stock, Shares Outstanding | 167,776,564 | ||
Documents Incorporated by Reference [Text Block] | Portions of the Company’s definitive Proxy Statement for its Annual Meeting of Shareholders to be held on April 28, 2023, are incorporated by reference into Part III, as specifically set forth in said Part III. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000042888 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Auditor Firm ID | 34 | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Minneapolis, Minnesota |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Income Statement [Abstract] | |||
Net Sales | $ 2,143,521 | $ 1,987,608 | $ 1,650,115 |
Cost of products sold | 1,086,082 | 953,659 | 795,178 |
Gross Profit | 1,057,439 | 1,033,949 | 854,937 |
Product development | 80,008 | 79,651 | 72,194 |
Selling, marketing and distribution | 250,948 | 271,526 | 220,271 |
General and administrative | 153,783 | 151,449 | 135,525 |
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 35,229 |
Operating Earnings | 572,700 | 531,323 | 391,718 |
Interest expense | 9,897 | 10,215 | 11,280 |
Other expense, net | (2,921) | 12,643 | 5,787 |
Earnings Before Income Taxes | 565,724 | 508,465 | 374,651 |
Income taxes | 105,079 | 68,599 | 44,195 |
Net Earnings | $ 460,645 | $ 439,866 | $ 330,456 |
Basic Net Earnings per Common Share | $ 2.73 | $ 2.59 | $ 1.97 |
Diluted Net Earnings per Common Share | $ 2.66 | $ 2.52 | $ 1.92 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings | $ 460,645 | $ 439,866 | $ 330,456 |
Components of other comprehensive income (loss) | |||
Cumulative translation adjustment | (9,582) | (10,026) | 46,030 |
Pension and postretirement medical liability adjustment | 25,630 | 68,669 | (645) |
Income taxes - pension and postretirement medical liability | (5,257) | (14,647) | 237 |
Other comprehensive income (loss) | 10,791 | 43,996 | 45,622 |
Comprehensive Income | $ 471,436 | $ 483,862 | $ 376,078 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 339,196 | $ 624,302 |
Accounts receivable, less allowances of $7,000 and $3,900 | 346,010 | 325,132 |
Inventories | 476,790 | 382,301 |
Other current assets | 43,624 | 31,886 |
Total current assets | 1,205,620 | 1,363,621 |
Property, Plant and Equipment, net | 607,609 | 451,061 |
Goodwill | 368,171 | 356,255 |
Other Intangible Assets, net | 137,507 | 149,740 |
Operating Lease, Right-of-Use Asset | 29,785 | 30,046 |
Deferred Income Taxes | 57,090 | 55,786 |
Other Assets | 33,118 | 36,689 |
Total Assets | 2,438,900 | 2,443,198 |
Current Liabilities | ||
Notes payable to banks | 20,974 | 43,489 |
Long-term Debt, Current Maturities | 0 | 75,000 |
Trade accounts payable | 84,218 | 78,432 |
Salaries and incentives | 63,969 | 82,941 |
Dividends payable | 39,963 | 35,771 |
Other current liabilities | 190,793 | 191,159 |
Total current liabilities | 399,917 | 506,792 |
Long-term Debt | 75,000 | 75,000 |
Retirement Benefits and Deferred Compensation | 61,672 | 106,897 |
Operating Lease Liabilities | 21,057 | 23,527 |
Deferred Income Taxes | 9,443 | 10,661 |
Other Non-current Liabilities | 12,159 | 10,978 |
Shareholders’ Equity | ||
Common stock, $1 par value; 291,000,000 shares authorized; 167,702,130 and 170,307,412 shares outstanding in 2022 and 2021 | 167,702 | 170,308 |
Additional paid-in-capital | 784,477 | 742,288 |
Retained earnings | 976,851 | 876,916 |
Accumulated other comprehensive income (loss) | (69,378) | (80,169) |
Total shareholders’ equity | 1,859,652 | 1,709,343 |
Total Liabilities and Shareholders’ Equity | $ 2,438,900 | $ 2,443,198 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for Credits | $ 7,000 | $ 3,900 |
Shares, Outstanding | 167,702,130 | 170,307,412 |
Common stock, par value | $ 1 | $ 1 |
Common stock authorized | 291,000,000 | 291,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Cash Flows From Operating Activities | |||
Net Earnings | $ 460,645 | $ 439,866 | $ 330,456 |
Adjustments to reconcile net earnings to net cash provided by operating activities | |||
Depreciation and amortization | 65,997 | 59,325 | 55,329 |
Deferred income taxes | (9,997) | (46,572) | 10,747 |
Share-based compensation | 24,695 | 24,931 | 25,153 |
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 35,229 |
Change in | |||
Accounts receivable | (29,944) | (13,801) | (43,122) |
Inventories | (95,691) | (97,780) | (13,086) |
Trade accounts payable | 4,195 | 12,397 | 6,820 |
Salaries and incentives | (18,442) | 29,089 | (2,622) |
Retirement benefits and deferred compensation | (18,674) | 1,219 | (6,703) |
Other accrued liabilities | (4,191) | 51,342 | (3,772) |
Other | (1,199) | (3,120) | (394) |
Net cash provided by operating activities | 377,394 | 456,896 | 394,035 |
Cash Flows From Investing Activities | |||
Property, plant and equipment additions | (201,161) | (133,566) | (71,338) |
Acquisition of businesses, net of cash acquired | (25,296) | (19,386) | (27,557) |
Other | (362) | (347) | (143) |
Net cash provided by (used in) investing activities | (226,819) | (153,299) | (99,038) |
Cash Flows From Financing Activities | |||
Borrowings (payments) on short-term lines of credit, net | (18,252) | 20,497 | (1,986) |
Borrowings on long-term lines of credit | 0 | 0 | 250,000 |
Payments on long-term debt and lines of credit | (75,000) | (70) | (250,000) |
Payments of Debt Issuance Costs | 0 | (1,422) | 0 |
Common stock issued | 35,619 | 50,963 | 83,438 |
Common stock repurchased | (233,426) | 0 | (102,143) |
Taxes paid related to net share settlement of equity awards | (1,219) | 0 | (1,797) |
Cash dividends paid | (142,125) | (127,110) | (116,983) |
Net cash provided by (used in) financing activities | (434,403) | (57,142) | (139,471) |
Effect of exchange rate changes on cash | (1,278) | (1,062) | 2,410 |
Net increase (decrease) in cash and cash equivalents | (285,106) | 245,393 | 157,936 |
Cash, Cash Equivalents and Restricted Cash | |||
Beginning of year | 624,302 | 378,909 | 220,973 |
End of year | $ 339,196 | $ 624,302 | $ 378,909 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 27, 2019 | $ 1,024,931 | $ 167,287 | $ 578,440 | $ 448,991 | $ (169,787) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 82,397 | 3,608 | 78,789 | 0 | 0 |
Shares repurchased | (102,142) | (2,327) | (8,047) | (91,768) | 0 |
Stock compensation cost | 22,024 | 0 | 22,024 | 0 | 0 |
Net Earnings | 330,456 | 0 | 0 | 330,456 | 0 |
Dividends declared | (119,384) | 0 | 0 | (119,384) | 0 |
Other comprehensive income (loss) | 45,622 | 0 | 0 | 0 | 45,622 |
Ending Balance at Dec. 25, 2020 | $ 1,283,904 | 168,568 | 671,206 | 568,295 | (124,165) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cash Dividends Declared per Common Share | $ 0.7125 | ||||
Shares issued | $ 53,300 | 1,740 | 51,560 | 0 | 0 |
Stock compensation cost | 21,859 | 0 | 21,859 | 0 | 0 |
Restricted stock cancelled (issued) | (2,337) | 0 | (2,337) | 0 | 0 |
Net Earnings | 439,866 | 0 | 0 | 439,866 | 0 |
Dividends declared | (131,245) | 0 | 0 | (131,245) | 0 |
Other comprehensive income (loss) | 43,996 | 0 | 0 | 0 | 43,996 |
Ending Balance at Dec. 31, 2021 | $ 1,709,343 | 170,308 | 742,288 | 876,916 | (80,169) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cash Dividends Declared per Common Share | $ 0.7725 | ||||
Shares issued | $ 34,400 | 946 | 33,454 | 0 | 0 |
Shares repurchased | (233,426) | (3,552) | (15,481) | (214,393) | 0 |
Stock compensation cost | 24,216 | 0 | 24,216 | 0 | 0 |
Net Earnings | 460,645 | 0 | 0 | 460,645 | 0 |
Dividends declared | (146,317) | 0 | 0 | (146,317) | 0 |
Other comprehensive income (loss) | 10,791 | 0 | 0 | 0 | 10,791 |
Ending Balance at Dec. 30, 2022 | $ 1,859,652 | $ 167,702 | $ 784,477 | $ 976,851 | $ (69,378) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cash Dividends Declared per Common Share | $ 0.8650 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Fiscal Year . The fiscal year of Graco Inc. and Subsidiaries (the “Company”) is 52 or 53 weeks, ending on the last Friday in December. The year ended December 31, 2021 was a 53-week year whereas the years ended December 30, 2022 and December 25, 2020 were 52-week years. Basis of Statement Presentation . The consolidated financial statements include the accounts of the parent company and its subsidiaries after elimination of intercompany balances and transactions. As of December 30, 2022, all subsidiaries are 100 percent controlled by the Company. Foreign Currency Translation . The functional currency of certain subsidiaries is the local currency. Accordingly, adjustments resulting from the translation of those subsidiaries’ financial statements into U.S. dollars are charged or credited to accumulated other comprehensive income (loss). The U.S. dollar is the functional currency for all other foreign subsidiaries. Accordingly, gains and losses from the translation of foreign currency balances and transactions of those subsidiaries are included in other expense, net. Accounting Estimates . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value Measurements. The three levels of inputs in the fair value measurement hierarchy are as follows: Level 1 – based on quoted prices in active markets for identical assets Level 2 – based on significant observable inputs Level 3 – based on significant unobservable inputs Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level 2022 2021 Assets Cash surrender value of life insurance 2 $ 19,192 $ 23,147 Liabilities Contingent consideration 3 $ 14,914 $ 12,274 Deferred compensation 2 5,842 5,962 Forward exchange contracts 2 520 111 Total liabilities at fair value $ 21,276 $ 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. The Company’s policy and accounting for forward exchange contracts are described below, in Derivative Instruments and Hedging Activities. Contingent consideration liability represents the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of certain acquired businesses based on future revenues. Disclosures related to other fair value measurements are included below in Impairment of Long-Lived Assets, in Note F (Debt) and in Note J (Retirement Benefits). Cash Equivalents . All highly liquid investments with a maturity of three months or less at the date of purchase are considered to be cash equivalents. Accounts Receivable. Accounts receivable includes trade receivables of $334 million in 2022 and $315 million in 2021. Other receivables totaled $12 million in 2022 and $10 million in 2021. Allowance for Credit Losses. Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Following is a summary of activity in the allowance for credit losses (in thousands): 2022 2021 2020 Balance, beginning $ 3,254 $ 3,745 $ 4,828 Additions (reversals) charged to costs and expenses 3,567 (27) 647 Deductions from reserves (1) (633) (676) (2,732) Other additions (deductions) (2) (58) 212 1,002 Balance, ending $ 6,130 $ 3,254 $ 3,745 (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. Inventory Valuation . Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) cost method is used for valuing most U.S. inventories. Inventories of foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method. Other Current Assets. Amounts included in other current assets were (in thousands): 2022 2021 Prepaid income taxes $ 18,702 $ 10,485 Prepaid expenses and other 24,922 21,401 Total $ 43,624 $ 31,886 Impairment of Long-Lived Assets. The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment annually in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We completed our annual impairment test of all long-lived assets in the fourth quarter of 2022. No impairment charges were recorded as a result of that review. In connection with the Company's sale of its U.K.-based valve business in 2020, impairment charges of $35 million were recorded. There were no additional impairment charges in 2021 or 2020. Property, Plant and Equipment . For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years Goodwill and Other Intangible Assets. Goodwill has been assigned to reporting units. Changes in the carrying amounts of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, December 25, 2020 $ 140,997 $ 141,513 $ 65,093 $ 347,603 Additions, adjustments from business acquisitions — — 13,321 13,321 Foreign currency translation (3,842) (209) (618) (4,669) Balance, December 31, 2021 137,155 141,304 77,796 356,255 Additions, adjustments from business acquisitions — 16,994 — 16,994 Foreign currency translation (2,384) (1,932) (762) (5,078) Balance, December 30, 2022 $ 134,771 $ 156,366 $ 77,034 $ 368,171 Components of other intangible assets were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of December 30, 2022 Cost $ 202,103 $ 26,374 $ 1,300 $ 62,633 $ 292,410 Accumulated amortization (123,603) (18,027) (330) — (141,960) Foreign currency translation (10,060) (894) — (1,989) (12,943) Book value $ 68,440 $ 7,453 $ 970 $ 60,644 $ 137,507 Weighted average life in years 13 10 6 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 was $18.9 million in 2022, $17.9 million in 2021 and $16.7 million in 2020. Estimated future annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2023 2024 2025 2026 2027 Thereafter Estimated Amortization Expense $ 17,397 $ 16,169 $ 15,704 $ 8,972 $ 6,291 $ 12,330 The Company completed business acquisitions in 2022, 2021 and 2020 that were not material to the consolidated financial statements. Other Assets. Components of other assets were (in thousands): 2022 2021 Cash surrender value of life insurance $ 19,192 $ 23,147 Capitalized software 2,189 2,394 Equity method investment 8,767 7,541 Deposits and other 2,970 3,607 Total $ 33,118 $ 36,689 The Company has entered into contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans. These insurance contracts are used to fund the non-qualified pension and deferred compensation arrangements. The insurance contracts are held in a trust and are available to general creditors in the event of the Company’s insolvency. Changes in cash surrender value are recorded in other expense, net. The cash surrender value decreased $4.0 million in 2022, and increased $3.3 million in 2021 and $2.2 million in 2020. Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. Other Current Liabilities Components of other current liabilities were (in thousands): 2022 2021 Accrued self-insurance retentions $ 9,338 $ 9,303 Accrued warranty and service liabilities 14,674 14,463 Accrued trade promotions 13,799 15,872 Payable for employee stock purchases 16,497 15,746 Customer advances and deferred revenue 50,747 60,554 Income taxes payable 15,987 5,200 Tax payable, other 9,614 8,295 Operating lease liabilities, current 9,555 9,096 Right of return refund liability 18,449 18,614 Other 32,133 34,016 Total $ 190,793 $ 191,159 Self-Insurance. The Company is self-insured for certain losses and costs relating to product liability, workers’ compensation, and employee medical benefit claims. The Company has stop-loss coverage in order to limit its exposure to significant claims. Accrued self-insurance retentions are based on claims filed, estimates of claims incurred but not reported, and other actuarial assumptions. Self-insured reserves totaled $9.3 million as of December 30, 2022 and December 31, 2021. Product Warranties. A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors including evaluating specific product warranty issues. Following is a summary of activity in accrued warranty and service liabilities (in thousands): 2022 2021 Balance, beginning of year $ 14,463 $ 13,082 Assumed in business acquisition 38 23 Charged to expense 8,946 10,764 Margin on parts sales reversed 3,292 3,475 Reductions for claims settled (12,065) (12,881) Balance, end of year $ 14,674 $ 14,463 Revenue Recognition . Revenue is recognized at a single point in time upon the satisfaction of performance obligations, which occurs when control of the good or service transfers to the customer. This is generally on the date of shipment; however certain sales have terms requiring recognition when received by the customer. In cases where there are specific customer acceptance provisions, revenue is recognized at the later of customer acceptance or shipment (subject to shipping terms). Payment terms are established based on the type of product, distributor capabilities and competitive market conditions, and do not exceed one year. Standalone selling prices are determined based on the prices charged to customers for all material performance obligations. Variable consideration is accounted for as a price adjustment (sales adjustment). Following are examples of variable consideration that affect the Company’s reported revenue. Early payment discounts are provided to certain customers and within certain regions. Rights of return are typically contractually limited and amounts are estimable. The Company records a refund liability and establishes a recovery asset for the value of product expected to be returned at the time revenue is recognized. This includes promotions when, from time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. Provisions for sales returns are recorded as a reduction of net sales, and provisions for warranty claims are recorded in selling, marketing and distribution expenses. Historically, sales returns have been approximately 3 percent of sales. Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include rebates based on annual purchases and sales growth, coupons and reimbursement for competitive products. Payment of incentives may take the form of cash, trade credit, promotional merchandise or free product. Rebates are accrued based on the program rates and progress toward the probability weighted estimate of annual sales amount and sales growth. Additional promotions include cooperative advertising arrangements. Under cooperative advertising arrangements, the Company reimburses the distributor for a portion of its advertising costs related to the Company’s products. Estimated costs are accrued at the time of sale and classified as selling, marketing and distribution expense. The estimated costs related to coupon programs are accrued at the time of sale and classified as selling, marketing and distribution expense or cost of products sold, depending on the type of incentive offered. The considerations payable to customers are deemed as broad based and are not recorded against net sales. Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold. Amounts billed to customers for shipping and handling are included in net sales. Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. The balance in the deferred revenue and customer advances was $50.7 million as of December 30, 2022 and $60.6 million as of December 31, 2021. Net sales for 2022 included $60.4 million that was in deferred revenue and customer advances as of December 31, 2021. Net sales for 2021 included $40.9 million that was in deferred revenue and customer advances as of December 25, 2020. Shipping and handling activities that occur after control of the related good transfers are accounted for as fulfillment activities instead of assessing such activities as performance obligations. Sales taxes related to revenue producing transactions collected from the customer for a governmental authority are excluded from the transaction price. Revenue standard requirements are applied to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Promised goods or services are not assessed as performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes goods or services that are immaterial in the context of the contract is recognized before those immaterial goods or services are transferred to the customer, then the related costs to transfer those goods or services are accrued. Incremental costs of obtaining a contract are generally expensed when incurred because the amortization period would be less than one year. Such costs primarily relate to sales commissions and are recorded in selling, marketing and distribution expense. Earnings Per Common Share . Basic net earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the year. Diluted net earnings per share is computed after giving effect to the exercise of all dilutive outstanding option grants. Comprehensive Income. Comprehensive income is a measure of all changes in shareholders’ equity except those resulting from investments by and distributions to owners, and includes such items as net earnings, certain foreign currency translation items, changes in the value of qualifying hedges and pension liability adjustments. Derivative Instruments and Hedging Activities . The Company accounts for all derivatives, including those embedded in other contracts, as either assets or liabilities and measures those financial instruments at fair value. The accounting for changes in the fair value of derivatives depends on their intended use and designation. As part of its risk management program, the Company may periodically use forward exchange contracts to manage known market exposures. Terms of derivative instruments are structured to match the terms of the risk being managed and are generally held to maturity. The Company does not hold or issue derivative financial instruments for trading purposes. All other contracts that contain provisions meeting the definition of a derivative also meet the requirements of, and have been designated as, normal purchases or sales. The Company’s policy is to not enter into contracts with terms that cannot be designated as normal purchases or sales. The Company periodically evaluates its monetary asset and liability positions denominated in foreign currencies. The Company enters into forward contracts or options, or borrows in various currencies, in order to hedge its net monetary positions. These instruments are recorded at fair value and the gains and losses are included in other expense, net. The notional amounts of contracts outstanding as of December 30, 2022, totaled $48 million. The Company believes it uses strong financial counterparties in these transactions and that the resulting credit risk under these hedging strategies is not significant. The Company uses significant other observable inputs (level 2 in the fair value hierarchy) to value the derivative instruments used to hedge net monetary positions, including reference to market prices and financial models that incorporate relevant market assumptions. Net derivative assets are reported on the balance sheet in accounts receivable and net derivative liabilities are reported as other current liabilities. The fair market value of such instruments follows (in thousands): 2022 2021 Foreign Currency Contracts Assets $ 157 $ 239 Liabilities (677) (350) Net Assets (Liabilities) $ (520) $ (111) |
Segment Information
Segment Information | 12 Months Ended |
Dec. 30, 2022 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information | B. Segment Information The Company has five operating segments which are aggregated into three reportable segments: Contractor, Industrial and Process. Beginning with the first quarter of 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 Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture to walls and ceilings, insulation to building walls and other items, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors. The Industrial segment includes our Industrial and Powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, coatings, sealants, adhesives and other fluids. Markets served include automotive and vehicle assembly and components production, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries. The Process segment includes our Process and Lubrication divisions. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids. Markets served include food and beverage, dairy, oil and natural gas, pharmaceutical, cosmetics, electronics, semiconductor fabrication, wastewater, mining, fast oil change facilities, service garages, fleet service centers, automobile dealerships and industrial lubrication applications. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The cost of manufacturing for each segment is based on product cost, and expenses are based on actual costs incurred along with cost allocations of shared and centralized functions based on activities performed, sales or space utilization. Depreciation expense is charged to the manufacturing or operating cost center that utilizes the asset, and is then allocated to segments on the same basis as other expenses within that cost center. Reportable segments are defined by product. Segments are responsible for development, manufacturing, marketing and sales of their products. This allows for focused marketing and efficient product development. The segments share common purchasing, certain manufacturing, distribution and administration functions. Segment information follows (in thousands): 2022 2021 2020 Net Sales Contractor $ 999,060 $ 987,606 $ 842,525 Industrial 649,347 602,376 481,485 Process 495,114 397,626 326,105 Total $ 2,143,521 $ 1,987,608 $ 1,650,115 Operating Earnings Contractor $ 249,833 $ 266,204 $ 243,185 Industrial 231,298 199,856 147,939 Process 122,344 91,037 64,498 Unallocated corporate (expense) (30,775) (25,774) (28,675) Impairment — — (35,229) Total $ 572,700 $ 531,323 $ 391,718 Assets Contractor $ 752,729 $ 656,998 Industrial 578,302 544,585 Process 564,539 436,189 Unallocated corporate 543,330 805,426 Total $ 2,438,900 $ 2,443,198 Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses and asset impairments. Unallocated corporate (expense) includes such items as stock compensation, certain acquisition transaction costs, bad debt expense, charitable contributions and certain facility expenses. Unallocated assets include cash, allowances and valuation reserves, deferred income taxes, certain capital and other assets. Geographic information follows (in thousands): 2022 2021 2020 Net Sales (based on customer location) United States $ 1,116,012 $ 1,004,318 $ 883,451 Other countries 1,027,509 983,290 766,664 Total $ 2,143,521 $ 1,987,608 $ 1,650,115 Long-lived Assets United States $ 532,401 $ 388,835 Other countries 75,208 62,226 Total $ 607,609 $ 451,061 |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2022 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major components of inventories were as follows (in thousands): 2022 2021 Finished products and components $ 222,326 $ 166,922 Products and components in various stages of completion 138,957 117,063 Raw materials and purchased components 248,636 185,291 Subtotal 609,919 469,276 Reduction to LIFO cost (133,129) (86,975) Total $ 476,790 $ 382,301 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment were as follows (in thousands): 2022 2021 Land and improvements $ 65,066 $ 42,195 Buildings and improvements 376,115 280,947 Manufacturing equipment 439,109 384,617 Office, warehouse and automotive equipment 59,988 61,994 Additions in progress 126,198 105,520 Total property, plant and equipment 1,066,476 875,273 Accumulated depreciation (458,867) (424,212) Net property, plant and equipment $ 607,609 $ 451,061 Depreciation expense was $46.0 million in 2022, $40.0 million in 2021 and $38.0 million in 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings before income tax expense consist of (in thousands): 2022 2021 2020 Domestic $ 401,405 $ 370,903 $ 289,708 Foreign 164,319 137,562 84,943 Total $ 565,724 $ 508,465 $ 374,651 Income tax expense consists of (in thousands): 2022 2021 2020 Current Federal $ 70,976 $ 77,703 $ 11,509 State and local 5,948 7,493 3,217 Foreign 38,152 29,975 18,722 Current income tax expense 115,076 115,171 33,448 Deferred Domestic (8,733) (42,413) 12,856 Foreign (1,264) (4,159) (2,109) Deferred income tax expense (benefit) (9,997) (46,572) 10,747 Total $ 105,079 $ 68,599 $ 44,195 Income taxes paid were $112.3 million in 2022, $111.8 million in 2021 and $44.0 million in 2020. A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: 2022 2021 2020 Statutory tax rate 21 % 21 % 21 % Tax effect of international operations 1 (1) (2) State taxes, net of federal effect 1 1 1 U.S. general business tax credits (1) (1) (1) Loss on sale of business — — 2 Stock compensation excess tax benefit (1) (2) (6) Foreign Derived Intangible Income (FDII) (2) (5) (3) Effective tax rate 19 % 13 % 12 % Deferred income taxes are provided for temporary differences between the financial reporting and the tax basis of assets and liabilities. The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands): 2022 2021 Inventory valuations $ 678 $ 1,181 Accrued self-insurance retentions 1,626 1,534 Accrued warranty and service liabilities 2,279 2,285 Vacation accruals 3,409 3,261 Customer allowances 4,143 4,028 Excess of tax over book depreciation and amortization (42,322) (39,785) Pension benefit obligation 6,375 16,022 Postretirement medical benefit obligation 5,072 5,028 Stock compensation 12,390 11,442 Deferred compensation 2,283 2,595 Deferred revenue 2,160 2,427 Research and Development 11,370 — Prepayments from foreign subsidiaries 36,070 32,969 Other 2,114 2,138 Net deferred tax assets $ 47,647 $ 45,125 Total deferred tax assets were $57.1 million and $55.8 million, and total deferred tax liabilities were $9.4 million and $10.7 million on December 30, 2022 and December 31, 2021, respectively. The difference between the deferred income tax provision and the change in net deferred income taxes is due to the changes in other comprehensive income (loss) items and acquisition purchase accounting. The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2016. The Company continues to assert that it will indefinitely reinvest earnings of foreign subsidiaries to support expansion of its international business. No additional income or withholding taxes have been provided for any remaining undistributed foreign earnings, as these amounts continue to be indefinitely reinvested in foreign operations. As of December 30, 2022, the amount of cash held outside the U.S. was not significant to the Company’s liquidity and was available to fund investments abroad. The Company records penalties and accrued interest related to uncertain tax positions in income tax expense. Total reserves for uncertain tax positions were not material. |
Debt
Debt | 12 Months Ended |
Dec. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of debt follows (dollars in thousands): Average Interest Rate December 30, 2022 Maturity 2022 2021 Private placement unsecured fixed-rate notes Series B 5.01% January 2022 — 75,000 Series D 5.35% July 2026 75,000 75,000 Unsecured revolving credit facility N/A March 2026 — — Unsecured revolving credit facility - offshore renminbi denominated 3.34% N/A 14,327 39,222 Notes payable to banks 2.80% 2023 6,647 4,267 Total debt $ 95,974 $ 193,489 The estimated fair value of the fixed interest rate private placement debt was $75 million on December 30, 2022 and $165 million on December 31, 2021. The fair value of variable rate borrowings approximates carrying value. The Company uses significant other observable inputs to estimate fair value (level 2 of the fair value hierarchy) based on the present value of future cash flows and rates that would be available for issuance of debt with similar terms and remaining maturities. On 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. The amended and restated credit agreement contains customary provisions for the replacement of the LIBOR-based rate as that rate is expected to be phased out by July 1, 2023. Currently, 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 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 amended and restated 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 amended and restated credit agreement. The Company maintains a revolving credit agreement with a sole lender that provides up to $50 million of committed credit, available for general corporate purposes, working capital needs, share repurchases and acquisitions. Under the terms of the agreement, loans may be denominated in U.S. dollars or Chinese renminbi (offshore). Loans denominated in U.S. dollars bear interest, at the Company’s option, at either a base rate or a LIBOR-based rate. Loans denominated in Chinese renminbi (offshore) bear interest at a LIBOR-based rate based on the Chinese offshore rate. Other terms of this revolving credit agreement are substantially similar to those of the Company’s amended and restated credit agreement that expires in March 2026. On December 16, 2022, the Company entered into an amendment to its master note agreement that extends the period in which the Company may issue, and affiliates of the lender may purchase, the Company’s senior notes from January 29, 2023 to December 16, 2027. The amendment also increases the maximum aggregate principal amount of senior notes the Company may issue under the master note agreement from $200 million to $250 million, although the maximum aggregate amount of senior notes bearing interest at a floating rate that may be outstanding at any one time will continue to be $100 million. The amendment also extends the maturity and average life of each senior note bearing interest at a fixed rate that may be issued under the master note agreement from no more than 12 years after the date of issuance to no more than 15 years after the date of issuance, and includes customary provisions for the replacement of LIBOR with SOFR and customary benchmark replacement provisions with respect to senior notes bearing interest at a floating rate. All other material items of the master note agreement remain unchanged. Under the terms of the master note agreement, the Company is required to maintain certain financial ratios as to cash flow leverage and interest coverage similar to the requirements of its other debt agreements. On December 30, 2022, the Company had $591 million in lines of credit, including the $550 million in committed credit facilities described above and $41 million with foreign banks. The unused portion of committed credit lines was $545 million as of December 30, 2022. In addition, the Company has unused, uncommitted lines of credit with foreign banks totaling $17 million. Borrowing rates under these credit lines vary with the prime rate, rates on domestic certificates of deposit and the London Interbank market. The Company pays facility fees at an annual rate of up to 0.15 on certain of these lines. No compensating balances are required. Various debt agreements require the Company to maintain certain financial ratios as to cash flow leverage and interest coverage. The Company is in compliance with all financial covenants of its debt agreements as of December 30, 2022. Annual maturities of debt are as follows (in thousands): 2023 2024 2025 2026 2027 Thereafter Maturities of debt $ 20,974 $ — $ — $ 75,000 $ — $ — Interest paid on debt was $10.0 million in 2022, $9.8 million in 2021 and $11.3 million in 2020. In January 2022, we repaid $75 million of our Series B private placement note in addition to a $3.5 million prepayment fee, which was recognized as interest expense. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ EquityAt December 30, 2022, the Company had 22,549 authorized, but not issued, cumulative preferred shares, $100 par value. The Company also has authorized, but not issued, a separate class of 3 million shares of preferred stock, $1 par value. Changes in components of accumulated other comprehensive income (loss), net of tax were (in thousands): Pension and Cumulative Total Balance, December 27, 2019 $ (113,721) $ (56,066) $ (169,787) Other comprehensive income (loss) before reclassifications (7,852) 46,030 38,178 Amounts reclassified from accumulated other comprehensive income 7,444 — 7,444 Balance, December 25, 2020 (114,129) (10,036) (124,165) Other comprehensive income (loss) before reclassifications 34,953 (10,026) 24,927 Amounts reclassified from accumulated other comprehensive income 19,069 — 19,069 Balance, December 31, 2021 (60,107) (20,062) (80,169) Other comprehensive income (loss) before reclassifications 16,083 (9,582) 6,501 Amounts reclassified from accumulated other comprehensive income 4,290 — 4,290 Balance, December 30, 2022 $ (39,734) $ (29,644) $ (69,378) In connection with the Company's sale of its U.K.-based valve business in 2020, $24 million of unrealized foreign currency translation losses recorded in accumulated other comprehensive income were reclassified to net earnings. Amounts related to pension and postretirement medical adjustments are classified to non-service components of pension cost that are included within other non-operating expenses. Included in the 2021 reclassification is $12 million related to a pension settlement loss. See Note J |
Share-Based Awards, Purchase Pl
Share-Based Awards, Purchase Plans and Compensation Cost | 12 Months Ended |
Dec. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Awards, Purchase Plans and Compensation Cost | Share-Based Awards, Purchase Plans and Compensation Cost Stock Option and Award Plan. The Company has a stock incentive plan under which it grants stock options and share awards to directors, officers and other employees. Option price is the market price on the date of grant. Options become exercisable at such time, generally over 3 years or 4 years, and in such installments as set by the Company, and expire 10 years from the date of grant. Restricted share awards have been made to certain key employees under the plan. The market value of restricted stock at the date of grant is charged to operations over the vesting period. Compensation cost related to restricted shares is not significant. The Company has a stock appreciation plan that provides for payments of cash to eligible foreign employees based on the change in the market price of the Company’s common stock over a period of time. Compensation cost related to the stock appreciation plan was a benefit of $0.2 million in 2022, and expense of $3.1 million in 2021 and $2.4 million in 2020. Individual nonemployee directors of the Company may elect to receive, either currently or deferred, all or part of their retainer in the form of shares of the Company’s common stock instead of cash. Under this arrangement, the Company issued 12,055 shares in 2022, 12,070 shares in 2021 and 15,243 shares in 2020. The expense related to this arrangement is not significant. Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Weighted Average Options Weighted Average Outstanding, December 27, 2019 12,112 $ 28.91 8,231 $ 23.75 Granted 1,400 55.26 Exercised (3,238) 20.81 Canceled (66) 41.24 Outstanding, December 25, 2020 10,208 35.02 6,553 28.02 Granted 843 72.22 Exercised (1,309) 24.91 Canceled (167) 55.59 Outstanding, December 31, 2021 9,575 39.31 7,296 33.75 Granted 1,381 71.03 Exercised (645) 25.58 Canceled (46) 49.42 Outstanding, December 30, 2022 10,265 $ 44.40 7,793 $ 37.22 The following table summarizes information for options outstanding and exercisable at December 30, 2022 (in thousands, except exercise prices and contractual term amounts): Options Outstanding Options Exercisable Range of Options Weighted Average Weighted Average Options Weighted Average $10 - $30 2,971 2.4 $ 24.76 2,971 $ 24.76 $30 - $45 2,317 4.7 36.88 2,255 36.67 $45 - $60 2,813 6.6 50.50 2,325 50.02 $60 - $75 2,164 9.0 71.47 242 72.15 $10 - $75 10,265 5.5 $ 44.40 7,793 $ 37.22 The aggregate intrinsic value of exercisable option shares was $235.3 million as of December 30, 2022, with a weighted average contractual term of 4.5 years. There were approximately 10.3 million vested share options and share options expected to vest as of December 30, 2022, with an aggregate intrinsic value of $243.8 million, a weighted average exercise price of $44.40 and a weighted average contractual term of 5.5 years. Information related to options exercised follows (in thousands): 2022 2021 2020 Cash received $ 15,739 $ 32,610 $ 66,625 Aggregate intrinsic value 28,193 65,319 120,395 Tax benefit realized 6,020 13,329 25,000 Employee Stock Purchase Plan. Under the Company’s Employee Stock Purchase Plan, the purchase price of the shares is the lesser of 85 percent of the fair market value on the first day or the last day of the plan year. Under this plan, the Company issued 316,250 shares in 2022, 415,995 shares in 2021 and 399,567 shares in 2020. Authorized Shares. In April 2019, shareholders of the Company approved the Graco Inc. 2019 Stock Incentive Plan. The Plan provides for issuance of up to 10 million shares of Graco common stock. Shares authorized for issuance under the stock option and purchase plans are shown below (in thousands): Total Shares Available for Future Issuance as of December 30, 2022 Stock Incentive Plan (2019) 10,000 5,790 Employee Stock Purchase Plan (2006) 21,000 11,763 Total 31,000 17,553 Amounts available for future issuance exclude outstanding options. Options outstanding as of December 30, 2022, include options granted under two plans that were replaced by subsequent plans. No shares are available for future grants under those plans. Share-based Compensation. The Company recognized share-based compensation cost as follows (in thousands): 2022 2021 2020 Share-based compensation $ 24,695 $ 24,931 $ 25,153 Tax benefit 2,319 1,705 1,700 Share-based compensation, net of tax $ 22,376 $ 23,226 $ 23,453 As of December 30, 2022, there was $17.4 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of approximately 2.7 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: 2022 2021 2020 Expected life in years 6.4 7.5 7.5 Interest rate 2.7 % 0.9 % 1.4 % Volatility 26.2 % 25.2 % 22.0 % Dividend yield 1.2 % 1.0 % 1.3 % Weighted average fair value per share $ 19.10 $ 17.87 $ 12.18 Expected life is estimated based on vesting terms and exercise and termination history. Interest rate is based on the U.S. Treasury rate on zero-coupon issues with a remaining term equal to the expected life of the option. Expected volatility is based on historical volatility over a period commensurate with the expected life of options. The fair value of employees’ purchase rights under the Employee Stock Purchase Plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results: 2022 2021 2020 Expected life in years 1.0 1.0 1.0 Interest rate 0.9 % 0.1 % 1.5 % Volatility 20.5 % 40.1 % 21.9 % Dividend yield 1.2 % 1.1 % 1.4 % Weighted average fair value per share $ 16.01 $ 21.50 $ 11.55 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 30, 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): 2022 2021 2020 Net earnings available to common shareholders $ 460,645 $ 439,866 $ 330,456 Weighted average shares outstanding for basic earnings per share 168,952 169,635 167,462 Dilutive effect of stock options computed based on the treasury stock method using the average market price 3,941 4,891 4,546 Weighted average shares outstanding for diluted earnings per share 172,893 174,526 172,008 Basic earnings per share $ 2.73 $ 2.59 $ 1.97 Diluted earnings per share $ 2.66 $ 2.52 $ 1.92 Anti-dilutive stock options excluded from computations of diluted earnings per share totaled 2.2 million shares in 2022, 0.4 million shares in 2021 and 0.3 million 2020. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company has a defined contribution plan, under Section 401(k) of the Internal Revenue Code, which provides retirement benefits to most U.S. employees. For all employees who choose to participate, the Company matches employee contributions at a 100 percent rate, up to 3 percent of the employee’s compensation. For employees not covered by a defined benefit plan, the Company contributed an amount equal to 2 percent of the employee’s compensation. Employer contributions totaled $11.0 million in 2022, $10.0 million in 2021 and $8.7 million in 2020. The Company’s postretirement medical plan provides certain medical benefits for retired U.S. employees. Employees hired before January 1, 2005, are eligible for these benefits upon retirement and fulfillment of other eligibility requirements as specified by the plan. The Company has both funded and unfunded noncontributory defined benefit pension plans that together cover most U.S. employees hired before January 1, 2006, certain directors and some of the employees of the Company’s non-U.S. subsidiaries. The Company restructured one of its U.S. qualified defined benefit plans in 2021. Under the restructuring, the plan transferred $63 million of liabilities and assets associated with certain plan participants to an insurance company via the purchase of a group annuity contract, and the Company recognized a $12 million settlement loss, included in 2021 other expense, net. This charge represents the acceleration of deferred charges previously accrued in accumulated other comprehensive income. Subsequent to the transfer of pension obligations, the smaller of the two pension plans was merged into the larger plan in December of 2021, with the larger plan being the surviving funded pension plan. The benefits offered to the plans’ participants were unchanged. For U.S. plans, benefits are based on years of service and the highest 5 consecutive years’ earnings in the 10 years preceding retirement. Plans are funded annually in amounts consistent with minimum funding levels and maximum tax deduction limits, although the Company may make additional voluntary contributions from time to time to improve the funded status of its plans. Investment policies and strategies of the U.S. funded pension plan are based on participant demographics. As the plan covers active participants and retirees with higher benefit amounts, investments are based on a long-term view of economic growth and weighted toward equity securities. The primary goal of the plan’s investments is to ensure that the plan’s liabilities are met over time. In developing strategic asset allocation guidelines, an emphasis is placed on the long-term characteristics of individual asset classes, and the benefits of diversification among multiple asset classes. The plan invests primarily in domestic and international equities, fixed income securities, which include treasuries, highly-rated corporate bonds and high-yield bonds and real estate. Strategic target allocations for plan assets are 53 percent equity securities, 42 percent fixed income securities and 5 percent real estate and alternative investments. Plan assets are held in a trust for the benefit of plan participants and are invested in various commingled funds, most of which are sponsored by the trustee. The fair values for commingled equity, fixed-income and real estate investments are measured using net asset values, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per share market value. Certain trustee-sponsored funds allow redemptions monthly or quarterly, with 10 days or 60 days advance notice, while most of the funds allow redemptions daily. The plan had unfunded commitments to make additional investments in certain funds totaling $2.3 million as of December 30, 2022 and $2.4 million as of December 31, 2021. The Company maintains a defined contribution plan covering employees of a Swiss subsidiary, funded by Company and employee contributions. Responsibility for pension coverage under Swiss law has been transferred to a Swiss insurance company. Plan assets are invested in an insurance contract that guarantees a federally mandated annual rate of return. The value of the plan assets is effectively the value of the insurance contract. The performance of the underlying assets held by the insurance company has no direct impact on the surrender value of the insurance contract. The insurance backed assets have no active market and are classified as level 3 in the fair value hierarchy. Assets of all plans by category and fair value measurement level were as follows (in thousands): Level 2022 2021 Cash and cash equivalents 1 $ 351 $ 303 Insurance contract 3 32,163 30,926 Investments categorized in fair value hierarchy 32,514 31,229 Equity U.S. Large Cap N/A 74,838 110,569 U.S. Small/Mid Cap N/A 5,191 11,338 International N/A 37,862 56,128 Total equity 117,891 178,035 Fixed income N/A 93,262 130,774 Real estate and other N/A 37,508 7,862 Investments measured at net asset value 248,661 316,671 Total $ 281,175 $ 347,900 The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands): 2022 2021 Balance, beginning of year $ 30,926 $ 31,877 Purchases 2,431 2,430 Redemptions (669) (2,556) Unrealized losses (525) (825) Balance, end of year $ 32,163 $ 30,926 The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 30, 2022, and December 31, 2021, and a statement of the funded status as of the same dates (in thousands): Pension Benefits Postretirement Medical Benefits 2022 2021 2022 2021 Change in benefit obligation Obligation, beginning of year $ 418,051 $ 510,652 $ 32,122 $ 34,458 Service cost 8,242 9,355 516 670 Interest cost 10,996 11,409 839 832 Actuarial (gain) loss (110,467) (31,093) (9,044) (2,391) Benefit payments (9,122) (13,360) (1,503) (1,447) Plan amendments (267) (1,458) — — Settlements — (64,886) — — Exchange rate changes (1,626) (2,568) — — Obligation, end of year $ 315,807 $ 418,051 $ 22,930 $ 32,122 Change in plan assets Fair value, beginning of year $ 347,900 $ 373,565 $ — $ — Actual return on assets (80,078) 30,984 — — Employer contributions 22,756 22,493 1,503 1,447 Benefit payments (9,122) (13,360) (1,503) (1,447) Settlements — (64,886) — — Exchange rate changes (281) (896) — — Fair value, end of year $ 281,175 $ 347,900 $ — $ — Unfunded status $ (34,632) $ (70,151) $ (22,930) $ (32,122) Amounts recognized in consolidated balance sheets Non-current assets $ 5,398 $ — $ — $ — Current liabilities 1,860 1,769 1,763 1,768 Non-current liabilities 38,170 68,382 21,167 30,354 Net $ 34,632 $ 70,151 $ 22,930 $ 32,122 Changes in discount rates used to value pension obligations were the main drivers of actuarial gains in 2022 and 2021. In 2022 and 2021, the Company made a $20 million voluntary contribution each year to one of its U.S. qualified defined benefit plans. The accumulated benefit obligation as of year-end for all defined benefit pension plans was $297 million for 2022 and $388 million for 2021. Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): 2022 2021 Projected benefit obligation $ 72,190 $ 91,678 Accumulated benefit obligation 69,395 88,927 Fair value of plan assets 32,164 30,926 The components of net periodic benefit cost for the plans for 2022, 2021 and 2020 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2022 2021 2020 2022 2021 2020 Service cost-benefits earned during the period $ 8,242 $ 9,355 $ 9,361 $ 516 $ 670 $ 609 Interest cost on projected benefit obligation 10,996 11,409 13,313 839 832 1,016 Expected return on assets (19,754) (20,767) (18,814) — — — Amortization of prior service cost 84 246 294 — — — Amortization of net loss 4,701 9,248 10,243 345 1,002 733 Settlement loss — 12,285 — — — — Cost of pension plans which are not significant and have not adopted ASC 715 284 368 168 N/A N/A N/A Net periodic benefit cost $ 4,553 $ 22,144 $ 14,565 $ 1,700 $ 2,504 $ 2,358 Net periodic benefit cost is disaggregated between service cost presented as operating expense and other components of pension cost presented as non-operating expense. Other components of pension cost and changes in cash surrender value of insurance contracts intended to fund certain non-qualified pension and deferred compensation arrangements included in non-operating expenses totaled $1 million in 2022, $12 million in 2021 and $5 million in 2020. Amounts recognized in other comprehensive income (loss) in 2022 and 2021 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2022 2021 2022 2021 Net gain (loss) arising during the period $ 11,189 $ 42,039 $ 9,044 $ 2,391 Amortization of net (gain) loss 4,701 9,248 345 1,002 Prior service credit (cost) arising during the period 267 1,458 — — Settlement (gain) loss — 12,285 — — Amortization of prior service (credit) cost 84 246 — — Total $ 16,241 $ 65,276 $ 9,389 $ 3,393 Amounts included in accumulated other comprehensive income (loss) as of December 30, 2022 and December 31, 2021, that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2022 2021 2022 2021 Prior service cost $ 1,668 $ 1,293 $ — $ — Net gain (loss) (55,084) (70,995) 1,891 (7,498) Net gain (loss) before income taxes (53,416) (69,702) 1,891 (7,498) Income taxes 12,207 15,443 (416) 1,650 Net $ (41,209) $ (54,259) $ 1,475 $ (5,848) Assumptions used to determine the Company’s benefit obligations are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2022 2021 2022 2021 U.S. Plans Discount rate 5.6 % 3.0 % 5.6 % 2.9 % Rate of compensation increase 2.7 % 2.7 % N/A N/A Non-U.S. Plans Discount rate 2.4 % 0.4 % N/A N/A Rate of compensation increase 1.8 % 1.3 % N/A N/A Assumptions used to determine the Company’s net periodic benefit cost are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2022 2021 2020 2022 2021 2020 U.S. Plans Discount rate 3.0 % 2.6 % 3.5 % 2.9 % 2.6 % 3.4 % Rate of compensation increase 2.7 % 2.7 % 2.8 % N/A N/A N/A Expected return on assets 6.3 % 6.3 % 6.8 % N/A N/A N/A Non-U.S. Plans Discount rate 0.4 % 0.4 % 0.4 % N/A N/A N/A Rate of compensation increase 1.3 % 1.3 % 1.3 % N/A N/A N/A Expected return on assets 1.0 % 1.0 % 1.5 % N/A N/A N/A Several sources of information are considered in determining the expected rate of return assumption, including the allocation of plan assets, the input of actuaries and professional investment advisers, and historical long-term returns. In setting the return assumption, the Company recognizes that historical returns are not always indicative of future returns and also considers the long-term nature of its pension obligations. The Company’s U.S. retirement medical plan limits the annual cost increase that will be paid by the Company to 3 percent. In measuring the accumulated postretirement benefit obligation (APBO), the annual trend rate for health care costs was assumed to be 8.5 percent for 2023, decreasing each year to a constant rate of 4.5 percent for 2038 and thereafter, subject to the plan’s annual increase limitation. The Company expects to contribute $1.9 million to its unfunded pension plans and $1.8 million to the postretirement medical plan in 2023. The Company will not be required to make contributions to the funded pension plan under minimum funding requirements for 2023. Estimated future benefit payments are as follows (in thousands): Pension Postretirement 2023 $ 15,583 $ 1,763 2024 17,035 1,748 2025 16,406 1,735 2026 18,585 1,715 2027 20,116 1,699 Years 2028-2032 107,755 8,136 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Liabilities and Assets The Company owns most of the assets used in its operations, but leases certain buildings and land, vehicles, office equipment and other rental assets. The Company determines if an arrangement is a lease at inception. All of the Company’s current lease arrangements are classified as operating leases. The Company historically has not entered into financing leases. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments. Supplemental information related to the Company's lease activities is as follows (in thousands): 2022 2021 Operating lease expense $ 12,307 $ 11,641 Operating lease payments 11,886 11,564 Non-cash additions to operating lease assets 8,859 1,631 Additional information related to operating leases is as follows: 2022 2021 Weighted average remaining lease term (years) 3.0 5.0 Weighted average discount rate 3.00 % 2.24 % Variable lease costs and short term lease costs were not significant for the twelve months ended December 30, 2022 and December 31, 2021. As of December 30, 2022, future maturities of operating lease liabilities were as follows (in thousands): 2023 $ 9,555 2024 7,931 2025 5,462 2026 4,118 2027 2,514 Thereafter 2,928 Total lease payments $ 32,508 Present value adjustment (1,896) Operating lease liabilities $ 30,612 Other Commitments. The Company is committed to pay suppliers under the terms of open purchase orders issued in the normal course of business totaling approximately $230 million at December 30, 2022. The Company also has commitments with certain suppliers to purchase minimum quantities, and under the terms of certain agreements, the Company is committed for certain portions of the supplier’s inventory. The Company does not purchase, or commit to purchase, quantities in excess of normal usage or amounts that cannot be used within one year. The Company estimates that the maximum commitment amount under such agreements does not exceed $59 million. The Company enters into contracts with vendors to receive services. Commitments under these service contracts with non-cancelable terms of more than one year totaled $4 million in 2023, $3 million in 2024, $3 million in 2025 and $2 million thereafter. In addition, the Company could be obligated to perform under standby letters of credit totaling $6 million at December 30, 2022. The Company has also guaranteed the debt of its subsidiaries for up to $8 million. All debt of subsidiaries is reflected in the consolidated balance sheets. Contingencies. The Company is party to various legal proceedings arising in the normal course of business. The Company is actively pursuing and defending these matters and has recorded an estimate of the probable costs where appropriate. Management does not expect that resolution of these matters will have a material adverse effect on the Company, although the ultimate outcome cannot be determined based on available information. |
Lessee, Operating Leases | Operating Lease Liabilities and Assets The Company owns most of the assets used in its operations, but leases certain buildings and land, vehicles, office equipment and other rental assets. The Company determines if an arrangement is a lease at inception. All of the Company’s current lease arrangements are classified as operating leases. The Company historically has not entered into financing leases. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | The fiscal year of Graco Inc. and Subsidiaries (the “Company”) is 52 or 53 weeks, ending on the last Friday in December. The year ended December 31, 2021 was a 53-week year whereas the years ended December 30, 2022 and December 25, 2020 were 52-week years. |
Basis of Statement Presentation | The consolidated financial statements include the accounts of the parent company and its subsidiaries after elimination of intercompany balances and transactions. As of December 30, 2022, all subsidiaries are 100 percent controlled by the Company. |
Foreign Currency Translation | The functional currency of certain subsidiaries is the local currency. Accordingly, adjustments resulting from the translation of those subsidiaries’ financial statements into U.S. dollars are charged or credited to accumulated other comprehensive income (loss). The U.S. dollar is the functional currency for all other foreign subsidiaries. Accordingly, gains and losses from the translation of foreign currency balances and transactions of those subsidiaries are included in other expense, net. |
Accounting Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Measurement Cash Surrender Value, Policy [Policy Text Block] | Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds. |
Cash Equivalents | All highly liquid investments with a maturity of three months or less at the date of purchase are considered to be cash equivalents. |
Loans and Leases Receivable, Allowance for Loan Losses Policy | Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. |
Inventory Valuation | Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) cost method is used for valuing most U.S. inventories. Inventories of foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method. |
Impairment or Long-Lived Assets | The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment annually in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Property, Plant and Equipment | For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years |
Goodwill and Other Intangible Assets | Goodwill has been assigned to reporting units. |
Acquisitions | The Company completed business acquisitions in 2022, 2021 and 2020 that were not material to the consolidated financial statements. |
Life Settlement Contracts, Policy [Policy Text Block] | The Company has entered into contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans. These insurance contracts are used to fund the non-qualified pension and deferred compensation arrangements. The insurance contracts are held in a trust and are available to general creditors in the event of the Company’s insolvency. Changes in cash surrender value are recorded in other expense, net. |
Capitalized Software | Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. |
Self Insurance Reserve [Policy Text Block] | The Company is self-insured for certain losses and costs relating to product liability, workers’ compensation, and employee medical benefit claims. The Company has stop-loss coverage in order to limit its exposure to significant claims. Accrued self-insurance retentions are based on claims filed, estimates of claims incurred but not reported, and other actuarial assumptions. Self-insured reserves totaled $9.3 million as of December 30, 2022 and December 31, 2021. |
Product Warranties | A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors including evaluating specific product warranty issues. |
Revenue from Contract with Customer [Policy Text Block] | Revenue is recognized at a single point in time upon the satisfaction of performance obligations, which occurs when control of the good or service transfers to the customer. This is generally on the date of shipment; however certain sales have terms requiring recognition when received by the customer. In cases where there are specific customer acceptance provisions, revenue is recognized at the later of customer acceptance or shipment (subject to shipping terms). Payment terms are established based on the type of product, distributor capabilities and competitive market conditions, and do not exceed one year. Standalone selling prices are determined based on the prices charged to customers for all material performance obligations. Variable consideration is accounted for as a price adjustment (sales adjustment). Following are examples of variable consideration that affect the Company’s reported revenue. Early payment discounts are provided to certain customers and within certain regions. Rights of return are typically contractually limited and amounts are estimable. The Company records a refund liability and establishes a recovery asset for the value of product expected to be returned at the time revenue is recognized. This includes promotions when, from time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. Provisions for sales returns are recorded as a reduction of net sales, and provisions for warranty claims are recorded in selling, marketing and distribution expenses. Historically, sales returns have been approximately 3 percent of sales. Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include rebates based on annual purchases and sales growth, coupons and reimbursement for competitive products. Payment of incentives may take the form of cash, trade credit, promotional merchandise or free product. Rebates are accrued based on the program rates and progress toward the probability weighted estimate of annual sales amount and sales growth. Additional promotions include cooperative advertising arrangements. Under cooperative advertising arrangements, the Company reimburses the distributor for a portion of its advertising costs related to the Company’s products. Estimated costs are accrued at the time of sale and classified as selling, marketing and distribution expense. The estimated costs related to coupon programs are accrued at the time of sale and classified as selling, marketing and distribution expense or cost of products sold, depending on the type of incentive offered. The considerations payable to customers are deemed as broad based and are not recorded against net sales. Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold. Amounts billed to customers for shipping and handling are included in net sales. Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. The balance in the deferred revenue and customer advances was $50.7 million as of December 30, 2022 and $60.6 million as of December 31, 2021. Net sales for 2022 included $60.4 million that was in deferred revenue and customer advances as of December 31, 2021. Net sales for 2021 included $40.9 million that was in deferred revenue and customer advances as of December 25, 2020. Shipping and handling activities that occur after control of the related good transfers are accounted for as fulfillment activities instead of assessing such activities as performance obligations. Sales taxes related to revenue producing transactions collected from the customer for a governmental authority are excluded from the transaction price. Revenue standard requirements are applied to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Promised goods or services are not assessed as performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes goods or services that are immaterial in the context of the contract is recognized before those immaterial goods or services are transferred to the customer, then the related costs to transfer those goods or services are accrued. |
Earnings Per Common Share | Basic net earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the year. Diluted net earnings per share is computed after giving effect to the exercise of all dilutive outstanding option grants. |
Comprehensive Income | Comprehensive income is a measure of all changes in shareholders’ equity except those resulting from investments by and distributions to owners, and includes such items as net earnings, certain foreign currency translation items, changes in the value of qualifying hedges and pension liability adjustments. |
Derivative Instruments and Hedging Activities | The Company accounts for all derivatives, including those embedded in other contracts, as either assets or liabilities and measures those financial instruments at fair value. The accounting for changes in the fair value of derivatives depends on their intended use and designation. As part of its risk management program, the Company may periodically use forward exchange contracts to manage known market exposures. Terms of derivative instruments are structured to match the terms of the risk being managed and are generally held to maturity. The Company does not hold or issue derivative financial instruments for trading purposes. All other contracts that contain provisions meeting the definition of a derivative also meet the requirements of, and have been designated as, normal purchases or sales. The Company’s policy is to not enter into contracts with terms that cannot be designated as normal purchases or sales. The Company periodically evaluates its monetary asset and liability positions denominated in foreign currencies. The Company enters into forward contracts or options, or borrows in various currencies, in order to hedge its net monetary positions. These instruments are recorded at fair value and the gains and losses are included in other expense, net. The notional amounts of contracts outstanding as of December 30, 2022, totaled $48 million. The Company believes it uses strong financial counterparties in these transactions and that the resulting credit risk under these hedging strategies is not significant. |
Segment Information Segment Acc
Segment Information Segment Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2022 | |
Segment Accounting Policies [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The cost of manufacturing for each segment is based on product cost, and expenses are based on actual costs incurred along with cost allocations of shared and centralized functions based on activities performed, sales or space utilization. Depreciation expense is charged to the manufacturing or operating cost center that utilizes the asset, and is then allocated to segments on the same basis as other expenses within that cost center. Reportable segments are defined by product. Segments are responsible for development, manufacturing, marketing and sales of their products. This allows for focused marketing and efficient product development. The segments share common purchasing, certain manufacturing, distribution and administration functions. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Accounting Policies [Abstract] | |
Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level 2022 2021 Assets Cash surrender value of life insurance 2 $ 19,192 $ 23,147 Liabilities Contingent consideration 3 $ 14,914 $ 12,274 Deferred compensation 2 5,842 5,962 Forward exchange contracts 2 520 111 Total liabilities at fair value $ 21,276 $ 18,347 |
Accounts Receivable, Allowance for Credit Loss | Following is a summary of activity in the allowance for credit losses (in thousands): 2022 2021 2020 Balance, beginning $ 3,254 $ 3,745 $ 4,828 Additions (reversals) charged to costs and expenses 3,567 (27) 647 Deductions from reserves (1) (633) (676) (2,732) Other additions (deductions) (2) (58) 212 1,002 Balance, ending $ 6,130 $ 3,254 $ 3,745 (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. |
Other Current Assets | Amounts included in other current assets were (in thousands): 2022 2021 Prepaid income taxes $ 18,702 $ 10,485 Prepaid expenses and other 24,922 21,401 Total $ 43,624 $ 31,886 |
Property, Plant and Equipment | For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years |
Schedule of Goodwill | Changes in the carrying amounts of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, December 25, 2020 $ 140,997 $ 141,513 $ 65,093 $ 347,603 Additions, adjustments from business acquisitions — — 13,321 13,321 Foreign currency translation (3,842) (209) (618) (4,669) Balance, December 31, 2021 137,155 141,304 77,796 356,255 Additions, adjustments from business acquisitions — 16,994 — 16,994 Foreign currency translation (2,384) (1,932) (762) (5,078) Balance, December 30, 2022 $ 134,771 $ 156,366 $ 77,034 $ 368,171 |
Intangible Assets | Components of other intangible assets were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of December 30, 2022 Cost $ 202,103 $ 26,374 $ 1,300 $ 62,633 $ 292,410 Accumulated amortization (123,603) (18,027) (330) — (141,960) Foreign currency translation (10,060) (894) — (1,989) (12,943) Book value $ 68,440 $ 7,453 $ 970 $ 60,644 $ 137,507 Weighted average life in years 13 10 6 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 future annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2023 2024 2025 2026 2027 Thereafter Estimated Amortization Expense $ 17,397 $ 16,169 $ 15,704 $ 8,972 $ 6,291 $ 12,330 |
Components of Other Assets | Components of other assets were (in thousands): 2022 2021 Cash surrender value of life insurance $ 19,192 $ 23,147 Capitalized software 2,189 2,394 Equity method investment 8,767 7,541 Deposits and other 2,970 3,607 Total $ 33,118 $ 36,689 |
Components of Other Current Liabilities | Components of other current liabilities were (in thousands): 2022 2021 Accrued self-insurance retentions $ 9,338 $ 9,303 Accrued warranty and service liabilities 14,674 14,463 Accrued trade promotions 13,799 15,872 Payable for employee stock purchases 16,497 15,746 Customer advances and deferred revenue 50,747 60,554 Income taxes payable 15,987 5,200 Tax payable, other 9,614 8,295 Operating lease liabilities, current 9,555 9,096 Right of return refund liability 18,449 18,614 Other 32,133 34,016 Total $ 190,793 $ 191,159 |
Accrued Warranty Liability Activity | Following is a summary of activity in accrued warranty and service liabilities (in thousands): 2022 2021 Balance, beginning of year $ 14,463 $ 13,082 Assumed in business acquisition 38 23 Charged to expense 8,946 10,764 Margin on parts sales reversed 3,292 3,475 Reductions for claims settled (12,065) (12,881) Balance, end of year $ 14,674 $ 14,463 |
Fair Market Value and Classification of Derivative Instruments | Net derivative assets are reported on the balance sheet in accounts receivable and net derivative liabilities are reported as other current liabilities. The fair market value of such instruments follows (in thousands): 2022 2021 Foreign Currency Contracts Assets $ 157 $ 239 Liabilities (677) (350) Net Assets (Liabilities) $ (520) $ (111) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Information - Operations and Assets | Segment information follows (in thousands): 2022 2021 2020 Net Sales Contractor $ 999,060 $ 987,606 $ 842,525 Industrial 649,347 602,376 481,485 Process 495,114 397,626 326,105 Total $ 2,143,521 $ 1,987,608 $ 1,650,115 Operating Earnings Contractor $ 249,833 $ 266,204 $ 243,185 Industrial 231,298 199,856 147,939 Process 122,344 91,037 64,498 Unallocated corporate (expense) (30,775) (25,774) (28,675) Impairment — — (35,229) Total $ 572,700 $ 531,323 $ 391,718 Assets Contractor $ 752,729 $ 656,998 Industrial 578,302 544,585 Process 564,539 436,189 Unallocated corporate 543,330 805,426 Total $ 2,438,900 $ 2,443,198 |
Segment Reporting Information - Geographic | Geographic information follows (in thousands): 2022 2021 2020 Net Sales (based on customer location) United States $ 1,116,012 $ 1,004,318 $ 883,451 Other countries 1,027,509 983,290 766,664 Total $ 2,143,521 $ 1,987,608 $ 1,650,115 Long-lived Assets United States $ 532,401 $ 388,835 Other countries 75,208 62,226 Total $ 607,609 $ 451,061 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Inventory, Net [Abstract] | |
Components of Inventories | Major components of inventories were as follows (in thousands): 2022 2021 Finished products and components $ 222,326 $ 166,922 Products and components in various stages of completion 138,957 117,063 Raw materials and purchased components 248,636 185,291 Subtotal 609,919 469,276 Reduction to LIFO cost (133,129) (86,975) Total $ 476,790 $ 382,301 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment were as follows (in thousands): 2022 2021 Land and improvements $ 65,066 $ 42,195 Buildings and improvements 376,115 280,947 Manufacturing equipment 439,109 384,617 Office, warehouse and automotive equipment 59,988 61,994 Additions in progress 126,198 105,520 Total property, plant and equipment 1,066,476 875,273 Accumulated depreciation (458,867) (424,212) Net property, plant and equipment $ 607,609 $ 451,061 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Tax Expense | Earnings before income tax expense consist of (in thousands): 2022 2021 2020 Domestic $ 401,405 $ 370,903 $ 289,708 Foreign 164,319 137,562 84,943 Total $ 565,724 $ 508,465 $ 374,651 |
Components of Income Tax Expense | Income tax expense consists of (in thousands): 2022 2021 2020 Current Federal $ 70,976 $ 77,703 $ 11,509 State and local 5,948 7,493 3,217 Foreign 38,152 29,975 18,722 Current income tax expense 115,076 115,171 33,448 Deferred Domestic (8,733) (42,413) 12,856 Foreign (1,264) (4,159) (2,109) Deferred income tax expense (benefit) (9,997) (46,572) 10,747 Total $ 105,079 $ 68,599 $ 44,195 |
Federal Tax Rate Reconciliation | A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: 2022 2021 2020 Statutory tax rate 21 % 21 % 21 % Tax effect of international operations 1 (1) (2) State taxes, net of federal effect 1 1 1 U.S. general business tax credits (1) (1) (1) Loss on sale of business — — 2 Stock compensation excess tax benefit (1) (2) (6) Foreign Derived Intangible Income (FDII) (2) (5) (3) Effective tax rate 19 % 13 % 12 % |
Deferred Income Taxes | The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands): 2022 2021 Inventory valuations $ 678 $ 1,181 Accrued self-insurance retentions 1,626 1,534 Accrued warranty and service liabilities 2,279 2,285 Vacation accruals 3,409 3,261 Customer allowances 4,143 4,028 Excess of tax over book depreciation and amortization (42,322) (39,785) Pension benefit obligation 6,375 16,022 Postretirement medical benefit obligation 5,072 5,028 Stock compensation 12,390 11,442 Deferred compensation 2,283 2,595 Deferred revenue 2,160 2,427 Research and Development 11,370 — Prepayments from foreign subsidiaries 36,070 32,969 Other 2,114 2,138 Net deferred tax assets $ 47,647 $ 45,125 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of debt follows (dollars in thousands): Average Interest Rate December 30, 2022 Maturity 2022 2021 Private placement unsecured fixed-rate notes Series B 5.01% January 2022 — 75,000 Series D 5.35% July 2026 75,000 75,000 Unsecured revolving credit facility N/A March 2026 — — Unsecured revolving credit facility - offshore renminbi denominated 3.34% N/A 14,327 39,222 Notes payable to banks 2.80% 2023 6,647 4,267 Total debt $ 95,974 $ 193,489 |
Annual Maturities of Debt | Annual maturities of debt are as follows (in thousands): 2023 2024 2025 2026 2027 Thereafter Maturities of debt $ 20,974 $ — $ — $ 75,000 $ — $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Components of Accumulated Other Comprehensive Income (Loss) | Changes in components of accumulated other comprehensive income (loss), net of tax were (in thousands): Pension and Cumulative Total Balance, December 27, 2019 $ (113,721) $ (56,066) $ (169,787) Other comprehensive income (loss) before reclassifications (7,852) 46,030 38,178 Amounts reclassified from accumulated other comprehensive income 7,444 — 7,444 Balance, December 25, 2020 (114,129) (10,036) (124,165) Other comprehensive income (loss) before reclassifications 34,953 (10,026) 24,927 Amounts reclassified from accumulated other comprehensive income 19,069 — 19,069 Balance, December 31, 2021 (60,107) (20,062) (80,169) Other comprehensive income (loss) before reclassifications 16,083 (9,582) 6,501 Amounts reclassified from accumulated other comprehensive income 4,290 — 4,290 Balance, December 30, 2022 $ (39,734) $ (29,644) $ (69,378) |
Share-Based Awards, Purchase _2
Share-Based Awards, Purchase Plans and Compensation Cost (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Options on Common Shares Granted and Outstanding | Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Weighted Average Options Weighted Average Outstanding, December 27, 2019 12,112 $ 28.91 8,231 $ 23.75 Granted 1,400 55.26 Exercised (3,238) 20.81 Canceled (66) 41.24 Outstanding, December 25, 2020 10,208 35.02 6,553 28.02 Granted 843 72.22 Exercised (1,309) 24.91 Canceled (167) 55.59 Outstanding, December 31, 2021 9,575 39.31 7,296 33.75 Granted 1,381 71.03 Exercised (645) 25.58 Canceled (46) 49.42 Outstanding, December 30, 2022 10,265 $ 44.40 7,793 $ 37.22 |
Options Outstanding and Exercisable | The following table summarizes information for options outstanding and exercisable at December 30, 2022 (in thousands, except exercise prices and contractual term amounts): Options Outstanding Options Exercisable Range of Options Weighted Average Weighted Average Options Weighted Average $10 - $30 2,971 2.4 $ 24.76 2,971 $ 24.76 $30 - $45 2,317 4.7 36.88 2,255 36.67 $45 - $60 2,813 6.6 50.50 2,325 50.02 $60 - $75 2,164 9.0 71.47 242 72.15 $10 - $75 10,265 5.5 $ 44.40 7,793 $ 37.22 |
Cash Proceeds Received and Tax Benefit from Share-based Payment Awards [Table Text Block] | Information related to options exercised follows (in thousands): 2022 2021 2020 Cash received $ 15,739 $ 32,610 $ 66,625 Aggregate intrinsic value 28,193 65,319 120,395 Tax benefit realized 6,020 13,329 25,000 |
Share Based Payment Award Stock Options Authorized | Shares authorized for issuance under the stock option and purchase plans are shown below (in thousands): Total Shares Available for Future Issuance as of December 30, 2022 Stock Incentive Plan (2019) 10,000 5,790 Employee Stock Purchase Plan (2006) 21,000 11,763 Total 31,000 17,553 |
Share-based compensation cost | The Company recognized share-based compensation cost as follows (in thousands): 2022 2021 2020 Share-based compensation $ 24,695 $ 24,931 $ 25,153 Tax benefit 2,319 1,705 1,700 Share-based compensation, net of tax $ 22,376 $ 23,226 $ 23,453 |
Options - Valuation Assumptions | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and results: 2022 2021 2020 Expected life in years 6.4 7.5 7.5 Interest rate 2.7 % 0.9 % 1.4 % Volatility 26.2 % 25.2 % 22.0 % Dividend yield 1.2 % 1.0 % 1.3 % Weighted average fair value per share $ 19.10 $ 17.87 $ 12.18 |
Employee Stock Purchase Plan - Valuation Assumptions | The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results: 2022 2021 2020 Expected life in years 1.0 1.0 1.0 Interest rate 0.9 % 0.1 % 1.5 % Volatility 20.5 % 40.1 % 21.9 % Dividend yield 1.2 % 1.1 % 1.4 % Weighted average fair value per share $ 16.01 $ 21.50 $ 11.55 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): 2022 2021 2020 Net earnings available to common shareholders $ 460,645 $ 439,866 $ 330,456 Weighted average shares outstanding for basic earnings per share 168,952 169,635 167,462 Dilutive effect of stock options computed based on the treasury stock method using the average market price 3,941 4,891 4,546 Weighted average shares outstanding for diluted earnings per share 172,893 174,526 172,008 Basic earnings per share $ 2.73 $ 2.59 $ 1.97 Diluted earnings per share $ 2.66 $ 2.52 $ 1.92 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Retirement Benefits [Abstract] | |
Plan assets by category and fair value measurement level | Assets of all plans by category and fair value measurement level were as follows (in thousands): Level 2022 2021 Cash and cash equivalents 1 $ 351 $ 303 Insurance contract 3 32,163 30,926 Investments categorized in fair value hierarchy 32,514 31,229 Equity U.S. Large Cap N/A 74,838 110,569 U.S. Small/Mid Cap N/A 5,191 11,338 International N/A 37,862 56,128 Total equity 117,891 178,035 Fixed income N/A 93,262 130,774 Real estate and other N/A 37,508 7,862 Investments measured at net asset value 248,661 316,671 Total $ 281,175 $ 347,900 |
Level 3 plan assets activity | The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands): 2022 2021 Balance, beginning of year $ 30,926 $ 31,877 Purchases 2,431 2,430 Redemptions (669) (2,556) Unrealized losses (525) (825) Balance, end of year $ 32,163 $ 30,926 |
Funded status of plans | The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 30, 2022, and December 31, 2021, and a statement of the funded status as of the same dates (in thousands): Pension Benefits Postretirement Medical Benefits 2022 2021 2022 2021 Change in benefit obligation Obligation, beginning of year $ 418,051 $ 510,652 $ 32,122 $ 34,458 Service cost 8,242 9,355 516 670 Interest cost 10,996 11,409 839 832 Actuarial (gain) loss (110,467) (31,093) (9,044) (2,391) Benefit payments (9,122) (13,360) (1,503) (1,447) Plan amendments (267) (1,458) — — Settlements — (64,886) — — Exchange rate changes (1,626) (2,568) — — Obligation, end of year $ 315,807 $ 418,051 $ 22,930 $ 32,122 Change in plan assets Fair value, beginning of year $ 347,900 $ 373,565 $ — $ — Actual return on assets (80,078) 30,984 — — Employer contributions 22,756 22,493 1,503 1,447 Benefit payments (9,122) (13,360) (1,503) (1,447) Settlements — (64,886) — — Exchange rate changes (281) (896) — — Fair value, end of year $ 281,175 $ 347,900 $ — $ — Unfunded status $ (34,632) $ (70,151) $ (22,930) $ (32,122) |
Amounts recognized in balance sheets | Amounts recognized in consolidated balance sheets Non-current assets $ 5,398 $ — $ — $ — Current liabilities 1,860 1,769 1,763 1,768 Non-current liabilities 38,170 68,382 21,167 30,354 Net $ 34,632 $ 70,151 $ 22,930 $ 32,122 |
Accumulated benefit obligation in excess of plan assets | Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): 2022 2021 Projected benefit obligation $ 72,190 $ 91,678 Accumulated benefit obligation 69,395 88,927 Fair value of plan assets 32,164 30,926 |
Components of net periodic benefit cost | The components of net periodic benefit cost for the plans for 2022, 2021 and 2020 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2022 2021 2020 2022 2021 2020 Service cost-benefits earned during the period $ 8,242 $ 9,355 $ 9,361 $ 516 $ 670 $ 609 Interest cost on projected benefit obligation 10,996 11,409 13,313 839 832 1,016 Expected return on assets (19,754) (20,767) (18,814) — — — Amortization of prior service cost 84 246 294 — — — Amortization of net loss 4,701 9,248 10,243 345 1,002 733 Settlement loss — 12,285 — — — — Cost of pension plans which are not significant and have not adopted ASC 715 284 368 168 N/A N/A N/A Net periodic benefit cost $ 4,553 $ 22,144 $ 14,565 $ 1,700 $ 2,504 $ 2,358 |
Amounts recognized in other comprehensive (income) loss | Amounts recognized in other comprehensive income (loss) in 2022 and 2021 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2022 2021 2022 2021 Net gain (loss) arising during the period $ 11,189 $ 42,039 $ 9,044 $ 2,391 Amortization of net (gain) loss 4,701 9,248 345 1,002 Prior service credit (cost) arising during the period 267 1,458 — — Settlement (gain) loss — 12,285 — — Amortization of prior service (credit) cost 84 246 — — Total $ 16,241 $ 65,276 $ 9,389 $ 3,393 |
Amounts included in accumulated other comprehensive (income) loss | Amounts included in accumulated other comprehensive income (loss) as of December 30, 2022 and December 31, 2021, that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2022 2021 2022 2021 Prior service cost $ 1,668 $ 1,293 $ — $ — Net gain (loss) (55,084) (70,995) 1,891 (7,498) Net gain (loss) before income taxes (53,416) (69,702) 1,891 (7,498) Income taxes 12,207 15,443 (416) 1,650 Net $ (41,209) $ (54,259) $ 1,475 $ (5,848) |
Assumptions used to determine obligations and cost | Assumptions used to determine the Company’s benefit obligations are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2022 2021 2022 2021 U.S. Plans Discount rate 5.6 % 3.0 % 5.6 % 2.9 % Rate of compensation increase 2.7 % 2.7 % N/A N/A Non-U.S. Plans Discount rate 2.4 % 0.4 % N/A N/A Rate of compensation increase 1.8 % 1.3 % N/A N/A Assumptions used to determine the Company’s net periodic benefit cost are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2022 2021 2020 2022 2021 2020 U.S. Plans Discount rate 3.0 % 2.6 % 3.5 % 2.9 % 2.6 % 3.4 % Rate of compensation increase 2.7 % 2.7 % 2.8 % N/A N/A N/A Expected return on assets 6.3 % 6.3 % 6.8 % N/A N/A N/A Non-U.S. Plans Discount rate 0.4 % 0.4 % 0.4 % N/A N/A N/A Rate of compensation increase 1.3 % 1.3 % 1.3 % N/A N/A N/A Expected return on assets 1.0 % 1.0 % 1.5 % N/A N/A N/A |
Estimated future benefit payments | Estimated future benefit payments are as follows (in thousands): Pension Postretirement 2023 $ 15,583 $ 1,763 2024 17,035 1,748 2025 16,406 1,735 2026 18,585 1,715 2027 20,116 1,699 Years 2028-2032 107,755 8,136 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supplemental Lease Information | Supplemental information related to the Company's lease activities is as follows (in thousands): 2022 2021 Operating lease expense $ 12,307 $ 11,641 Operating lease payments 11,886 11,564 Non-cash additions to operating lease assets 8,859 1,631 |
Additional Information, Operating Lease, Disclosure [Table Text Block] | Additional information related to operating leases is as follows: 2022 2021 Weighted average remaining lease term (years) 3.0 5.0 Weighted average discount rate 3.00 % 2.24 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of December 30, 2022, future maturities of operating lease liabilities were as follows (in thousands): 2023 $ 9,555 2024 7,931 2025 5,462 2026 4,118 2027 2,514 Thereafter 2,928 Total lease payments $ 32,508 Present value adjustment (1,896) Operating lease liabilities $ 30,612 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | Dec. 27, 2019 | |
Other Details | ||||
Accounts Receivable, Allowance for Credit Loss | $ 6,130,000 | $ 3,254,000 | $ 3,745,000 | $ 4,828,000 |
Accounts Receivable, Credit Loss Expense (Reversal) | 3,567,000 | (27,000) | 647,000 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (633,000) | (676,000) | (2,732,000) | |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | (58,000) | 212,000 | 1,002,000 | |
Write-downs of long-lived assets | 0 | |||
Other Asset Impairment Charges | 35,000,000 | |||
Amortization of intangible assets | 18,900,000 | 17,900,000 | 16,700,000 | |
Cash surrender value of life insurance change | 4,000,000 | 3,300,000 | $ 2,200,000 | |
Self insured reserves | 9,300,000 | 9,300,000 | ||
Derivative, Notional Amount | $ 48,000,000 | |||
Minimum | ||||
Other Details | ||||
Capitalized software estimated useful life | 2 years | |||
Minimum | Buildings and improvements | ||||
Other Details | ||||
Property, plant and equipment, useful life | 10 years | |||
Minimum | Leasehold improvements | ||||
Other Details | ||||
Property, plant and equipment, useful life | 5 years | |||
Minimum | Manufacturing equipment | ||||
Other Details | ||||
Property, plant and equipment, useful life | 5 years | |||
Minimum | Office, warehouse and automotive equipment | ||||
Other Details | ||||
Property, plant and equipment, useful life | 3 years | |||
Maximum | ||||
Other Details | ||||
Capitalized software estimated useful life | 5 years | |||
Maximum | Buildings and improvements | ||||
Other Details | ||||
Property, plant and equipment, useful life | 30 years | |||
Maximum | Leasehold improvements | ||||
Other Details | ||||
Property, plant and equipment, useful life | 10 years | |||
Maximum | Manufacturing equipment | ||||
Other Details | ||||
Property, plant and equipment, useful life | 10 years | |||
Maximum | Office, warehouse and automotive equipment | ||||
Other Details | ||||
Property, plant and equipment, useful life | 10 years | |||
Trade Accounts Receivable | ||||
Other Details | ||||
Accounts receivable | $ 334,000,000 | 315,000,000 | ||
Other Receivables | ||||
Other Details | ||||
Accounts receivable | $ 12,000,000 | $ 10,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Liabilities [Abstract] | ||
Total liabilities at fair value | $ 21,276 | $ 18,347 |
Level 2 | ||
ASSETS | ||
Cash surrender value of life insurance | 19,192 | 23,147 |
Liabilities [Abstract] | ||
Deferred Compensation | 5,842 | 5,962 |
Forward exchange contracts | 520 | 111 |
Level 3 | ||
Liabilities [Abstract] | ||
Contingent consideration | $ 14,914 | $ 12,274 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Accounting Policies [Abstract] | |||
Beginning Balance | $ 3,254 | $ 3,745 | $ 4,828 |
Accounts Receivable, Credit Loss Expense (Reversal) | 3,567 | (27) | 647 |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (633) | (676) | (2,732) |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | (58) | 212 | 1,002 |
Ending Balance | $ 6,130 | $ 3,254 | $ 3,745 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Prepaid income taxes | $ 18,702 | $ 10,485 |
Prepaid expenses and other | 24,922 | 21,401 |
Other current assets | $ 43,624 | $ 31,886 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Goodwill by Reporting Segment) (Details) - USD ($) | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information | ||
Write-downs of long-lived assets | $ 0 | |
Goodwill Roll Forward | ||
Beginning balance | 356,255,000 | $ 347,603,000 |
Additions, adjustments from business acquisitions | 16,994,000 | 13,321,000 |
Foreign currency translation | (5,078,000) | (4,669,000) |
Ending balance | 368,171,000 | 356,255,000 |
Industrial | ||
Goodwill Roll Forward | ||
Beginning balance | 137,155,000 | 140,997,000 |
Additions, adjustments from business acquisitions | 0 | 0 |
Foreign currency translation | (2,384,000) | (3,842,000) |
Ending balance | 134,771,000 | 137,155,000 |
Process | ||
Goodwill Roll Forward | ||
Beginning balance | 141,304,000 | 141,513,000 |
Additions, adjustments from business acquisitions | 16,994,000 | 0 |
Foreign currency translation | (1,932,000) | (209,000) |
Ending balance | 156,366,000 | 141,304,000 |
Contractor | ||
Goodwill Roll Forward | ||
Beginning balance | 77,796,000 | 65,093,000 |
Additions, adjustments from business acquisitions | 0 | 13,321,000 |
Foreign currency translation | (762,000) | (618,000) |
Ending balance | $ 77,034,000 | $ 77,796,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 18,900 | $ 17,900 | $ 16,700 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Total Other Intangible Assets, Gross | 292,410 | 284,112 | |
Total Other Intangible Assets, Accumulated Amortization | (141,960) | (124,843) | |
Total Other Intangible Assets, Foreign Currency Translation | (12,943) | (9,529) | |
Total Other Intangible Assets, Net | 137,507 | 149,740 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense 2023 | 17,397 | ||
Estimated amortization expense 2024 | 16,169 | ||
Estimated amortization expense 2025 | 15,704 | ||
Estimated amortization expense 2026 | 8,972 | ||
Estimated amortization expense 2027 | 6,291 | ||
Estimated amortization expense thereafter | 12,330 | ||
Trade Names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Trade Names | 62,633 | 62,633 | |
Indefinite Lived Intangible Assets, Foreign Currency Translation | (1,989) | (1,112) | |
Indefinite Lived Intangible Assets, Net | 60,644 | 61,521 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets, Gross | 202,103 | 194,505 | |
Finite Lived Intangible Assets, Accumulated Amortization | (123,603) | (108,657) | |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (10,060) | (7,710) | |
Finite Lived Intangible Assets, Net | $ 68,440 | $ 78,138 | |
Finite Lived Intangible Assets, Weighted Average Useful Life | 13 years | 13 years | |
Patents and Proprietary Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets, Gross | $ 26,374 | $ 26,074 | |
Finite Lived Intangible Assets, Accumulated Amortization | (18,027) | (15,734) | |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (894) | (707) | |
Finite Lived Intangible Assets, Net | $ 7,453 | $ 9,633 | |
Finite Lived Intangible Assets, Weighted Average Useful Life | 10 years | 10 years | |
Trademarks, Trade Names and Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets, Gross | $ 1,300 | $ 900 | |
Finite Lived Intangible Assets, Accumulated Amortization | (330) | (452) | |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
Finite Lived Intangible Assets, Net | $ 970 | $ 448 | |
Finite Lived Intangible Assets, Weighted Average Useful Life | 6 years | 5 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Components of Other Assets) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Cash surrender value of life insurance | $ 19,192 | $ 23,147 |
Capitalized software | 2,189 | 2,394 |
Equity method investment | 8,767 | 7,541 |
Deposits and other | 2,970 | 3,607 |
Total | $ 33,118 | $ 36,689 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Components of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 |
Other Current Liabilities | |||
Accrued self-insurance retentions | $ 9,338 | $ 9,303 | |
Accrued warranty and service liabilities | 14,674 | 14,463 | $ 13,082 |
Accrued trade promotions | 13,799 | 15,872 | |
Payable for employee stock purchases | 16,497 | 15,746 | |
Customer Advances and Deferred Revenue | 50,747 | 60,554 | |
Income taxes payable | 15,987 | 5,200 | |
Tax payable, other | 9,614 | 8,295 | |
Operating lease liabilities, current | 9,555 | 9,096 | |
Right of return refund liability | 18,449 | 18,614 | |
Other | 32,133 | 34,016 | |
Total | $ 190,793 | $ 191,159 | |
Operating lease liabilities, current extensible list | |||
Self insured reserves | $ 9,300 | $ 9,300 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Accrued Warranty Liability Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Accrued warranty and service liabilities | ||
Balance, beginning of year | $ 14,463 | $ 13,082 |
Assumed in business acquisition | 38 | 23 |
Charged to expense | 8,946 | 10,764 |
Margin on parts sales reversed | 3,292 | 3,475 |
Reductions for claims settled | (12,065) | (12,881) |
Balance, end of year | $ 14,674 | $ 14,463 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies Summary of Significant Account Policies (Contracts with Customers - Revenue Recognition) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Sales Returns Percentage Of Sales | 3% | |
Contract with Customer, Liability | $ 50.7 | $ 60.6 |
Contract with Customer, Liability, Revenue Recognized | $ 60.4 | $ 40.9 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Fair Market Value and Classification of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Derivative, Notional Amount | $ 48,000 | |
Foreign Currency Fair Value Hedge Asset at Fair Value | 157 | $ 239 |
Foreign Currency Fair Value Hedge Liability at Fair Value | (677) | (350) |
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | $ (520) | $ (111) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Concentration Risk [Line Items] | |||
Number of operating segments | 5 | ||
Number of reportable segments | 3 | ||
Major Customer | Customer Concentration Risk | Sales | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10% | 10% | 10% |
Segment Information (Operations
Segment Information (Operations and Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Segment Reporting Information | |||
Net Sales | $ 2,143,521 | $ 1,987,608 | $ 1,650,115 |
Operating Earnings | 572,700 | 531,323 | 391,718 |
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | (35,229) |
Assets | 2,438,900 | 2,443,198 | |
Operating Segments | Contractor | |||
Segment Reporting Information | |||
Net Sales | 999,060 | 987,606 | 842,525 |
Operating Earnings | 249,833 | 266,204 | 243,185 |
Assets | 752,729 | 656,998 | |
Operating Segments | Industrial | |||
Segment Reporting Information | |||
Net Sales | 649,347 | 602,376 | 481,485 |
Operating Earnings | 231,298 | 199,856 | 147,939 |
Assets | 578,302 | 544,585 | |
Operating Segments | Process | |||
Segment Reporting Information | |||
Net Sales | 495,114 | 397,626 | 326,105 |
Operating Earnings | 122,344 | 91,037 | 64,498 |
Assets | 564,539 | 436,189 | |
Unallocated Corporate | |||
Segment Reporting Information | |||
Operating Earnings | (30,775) | (25,774) | $ (28,675) |
Assets | $ 543,330 | $ 805,426 |
Segment Information (Geographic
Segment Information (Geographic Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Geographic Information | |||
Net Sales | $ 2,143,521 | $ 1,987,608 | $ 1,650,115 |
Long-lived Assets | 607,609 | 451,061 | |
United States | |||
Geographic Information | |||
Net Sales | 1,116,012 | 1,004,318 | 883,451 |
Long-lived Assets | 532,401 | 388,835 | |
Non-US [Member] | |||
Geographic Information | |||
Net Sales | 1,027,509 | 983,290 | $ 766,664 |
Long-lived Assets | $ 75,208 | $ 62,226 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Finished products and components | $ 222,326 | $ 166,922 |
Products and components in various stages of completion | 138,957 | 117,063 |
Raw materials and purchased components | 248,636 | 185,291 |
Inventory gross total | 609,919 | 469,276 |
Reduction to LIFO cost | (133,129) | (86,975) |
Total | $ 476,790 | $ 382,301 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
LIFO Inventory Amount | $ 253.6 | $ 211.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment (PPE By Type) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,066,476 | $ 875,273 |
Accumulated depreciation | (458,867) | (424,212) |
Net property, plant and equipment | 607,609 | 451,061 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 65,066 | 42,195 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 376,115 | 280,947 |
Manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 439,109 | 384,617 |
Office, warehouse and automotive equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 59,988 | 61,994 |
Additions in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 126,198 | $ 105,520 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation Expense | $ 46 | $ 40 | $ 38 |
Income Taxes (Income before Inc
Income Taxes (Income before Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 401,405 | $ 370,903 | $ 289,708 |
Foreign | 164,319 | 137,562 | 84,943 |
Earnings Before Income Taxes | $ 565,724 | $ 508,465 | $ 374,651 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Current Income Tax Expense (Benefit) [Abstract] | |||
Federal | $ 70,976 | $ 77,703 | $ 11,509 |
State and local | 5,948 | 7,493 | 3,217 |
Foreign | 38,152 | 29,975 | 18,722 |
Total Current | 115,076 | 115,171 | 33,448 |
Deferred Income Tax Expense (Benefit) [Abstract] | |||
Domestic | (8,733) | (42,413) | 12,856 |
Foreign | (1,264) | (4,159) | (2,109) |
Total Deferred | (9,997) | (46,572) | 10,747 |
Total Income Tax Expense | $ 105,079 | $ 68,599 | $ 44,195 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Federal income tax rate reconciliation | |||
Statutory tax rate | 21% | 21% | 21% |
Tax effect of international operations | 1% | (1.00%) | (2.00%) |
State taxes, net of federal effect | 1% | 1% | 1% |
U.S. general business tax credits | (1.00%) | (1.00%) | (1.00%) |
Loss on sale of business | 0% | 0% | 2% |
Stock compensation excess tax benefit | (1.00%) | (2.00%) | (6.00%) |
Foreign Derived Intangible Income | (2.00%) | (5.00%) | (3.00%) |
Effective tax rate | 19% | 13% | 12% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Deferred Tax Assets, Net [Abstract] | ||
Inventory valuations | $ 678 | $ 1,181 |
Accrued self-insurance retentions | 1,626 | 1,534 |
Accrued warranty and service liabilities | 2,279 | 2,285 |
Vacation accruals | 3,409 | 3,261 |
Customer allowances | 4,143 | 4,028 |
Excess of tax over book depreciation and amortization | (42,322) | (39,785) |
Pension benefit obligation | 6,375 | 16,022 |
Postretirement medical benefit obligation | 5,072 | 5,028 |
Stock compensation | 12,390 | 11,442 |
Deferred compensation | 2,283 | 2,595 |
Deferred revenue | 2,160 | 2,427 |
Deferred Tax Assets, in Process Research and Development | 11,370 | 0 |
Prepayments from foreign subsidiaries | 36,070 | 32,969 |
Other | 2,114 | 2,138 |
Net deferred tax assets | $ 47,647 | $ 45,125 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income taxes paid | $ 112.3 | $ 111.8 | $ 44 |
Deferred tax assets | 57.1 | 55.8 | |
Deferred tax liabilities | $ 9.4 | $ 10.7 |
Debt (Schedule of Debt Instrume
Debt (Schedule of Debt Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total debt, including current portion | $ 95,974 | $ 193,489 |
Series B maturing Paid January 2022 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 5.01% | |
Debt Instrument, Maturity Date, Description | January 2022 | |
Total debt, including current portion | $ 0 | 75,000 |
Series D maturing July 2026 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 5.35% | |
Debt Instrument, Maturity Date, Description | July 2026 | |
Total debt, including current portion | $ 75,000 | 75,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Maturity Date, Description | March 2026 | |
Total debt, including current portion | $ 0 | 0 |
Chinese Renminbi Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.34% | |
Total debt, including current portion | $ 14,327 | 39,222 |
Notes payable to banks maturing 2023 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 2.80% | |
Debt Instrument, Maturity Date, Description | 2023 | |
Total debt, including current portion | $ 6,647 | $ 4,267 |
Line of Credit | Committed Facility | Minimum | Revolving Credit Facility | Cash flow leverage ratio no acquisition | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 1.00 | |
Line of Credit | Committed Facility | Minimum | Revolving Credit Facility | Cash flow leverage ratio with acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 1.00 | |
Line of Credit | Committed Facility | Minimum | Revolving Credit Facility | Interest coverage ratio no acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 1.00 | |
Line of Credit | Committed Facility | Minimum | Revolving Credit Facility | Interest coverage ratio with acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 1.00 | |
Line of Credit | Committed Facility | Maximum | Revolving Credit Facility | Cash flow leverage ratio no acquisition | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 3.50 | |
Line of Credit | Committed Facility | Maximum | Revolving Credit Facility | Cash flow leverage ratio with acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 4.00 | |
Line of Credit | Committed Facility | Maximum | Revolving Credit Facility | Interest coverage ratio no acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 3.00 | |
Line of Credit | Committed Facility | Maximum | Revolving Credit Facility | Interest coverage ratio with acquisitions | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Covenant Compliance | 2.50 |
Debt (Annual Maturities of Debt
Debt (Annual Maturities of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Debt Disclosure [Abstract] | |||
2023 | $ 20,974 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 75,000 | ||
2027 | 0 | ||
Thereafter | 0 | ||
Interest paid | $ 10,000 | $ 9,800 | $ 11,300 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Line of Credit Facility [Line Items] | |||
Estimated fair value of debt | $ 75,000,000 | $ 165,000,000 | |
Maximum borrowing amount - credit facility | 591,000,000 | ||
Interest paid | 10,000,000 | $ 9,800,000 | $ 11,300,000 |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Chinese Renminbi Facility Maximum Borrowing Capacity | 50,000,000 | ||
Committed Facility | |||
Line of Credit Facility [Line Items] | |||
Unused portion of credit facility | 545,000,000 | ||
Committed Facility | Domestic Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 550,000,000 | ||
Committed Facility | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 41,000,000 | ||
Uncommitted Facility | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Unused portion of credit facility | $ 17,000,000 | ||
Uncommitted Facility | Foreign Line of Credit | Maximum | |||
Line of Credit Facility [Line Items] | |||
Loan commitment fee percentage | 0.15% | ||
Shelf Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Maturity Date | Dec. 16, 2027 | ||
Maximum borrowing amount - credit facility | $ 250,000,000 | ||
Floating Rate Principal Maximum | 100,000,000 | ||
Series B maturing Paid January 2022 | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 75,000,000 | ||
Debt Instrument, Fee Amount | 3,500,000 | ||
Line of Credit | Committed Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | 250,000,000 | ||
Maximum borrowing amount - credit facility | 500,000,000 | ||
Line of Credit | Committed Facility | Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 200,000,000 | ||
Debt instrument, basis spread on variable rate | 0% | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | ||
Line of Credit | Committed Facility | Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.75% | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||
Line of Credit | Federal Funds Effective Swap Rate | Committed Facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.50% | ||
Line of Credit | London Interbank Offered Rate (LIBOR) | Committed Facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.50% | ||
Line of Credit | London Interbank Offered Rate (LIBOR) | Committed Facility | Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 1% | ||
Line of Credit | London Interbank Offered Rate (LIBOR) | Committed Facility | Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Class of Stock | |||
Foreign Currency Transaction Loss, before Tax | $ 24,000 | ||
Pension Benefits | |||
Class of Stock | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | (12,285) | $ 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | (12,285) | $ 0 |
Pension Plan - Blue and Gray Plans | Pension Benefits | |||
Class of Stock | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 12,000 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 12,000 | ||
Cumulative Preferred Stock | |||
Class of Stock | |||
Preferred stock authorized | 22,549 | ||
Preferred stock par value | $ 100 | ||
Preferred Stock | |||
Class of Stock | |||
Preferred stock authorized | 3,000,000 | ||
Preferred stock par value | $ 1 |
Shareholders' Equity (AOCI and
Shareholders' Equity (AOCI and Reclassification) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | $ (80,169) | $ (124,165) | $ (169,787) |
Other comprehensive income (loss) before reclassifications | 6,501 | 24,927 | 38,178 |
Amounts reclassified from accumulated other comprehensive income | 4,290 | 19,069 | 7,444 |
Ending Balance | (69,378) | (80,169) | (124,165) |
Pension and Postretirement Medical | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (60,107) | (114,129) | (113,721) |
Other comprehensive income (loss) before reclassifications | 16,083 | 34,953 | (7,852) |
Amounts reclassified from accumulated other comprehensive income | 4,290 | 19,069 | 7,444 |
Ending Balance | (39,734) | (60,107) | (114,129) |
Cumulative Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (20,062) | (10,036) | (56,066) |
Other comprehensive income (loss) before reclassifications | (9,582) | (10,026) | 46,030 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Ending Balance | $ (29,644) | $ (20,062) | $ (10,036) |
Share-Based Awards, Purchase _3
Share-Based Awards, Purchase Plans and Compensation Cost (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award expiration period | 10 years | ||
Stock Appreciation Plan Expense | $ (0.2) | $ 3.1 | $ 2.4 |
Intrinsic value of exercisable option shares | $ 235.3 | ||
Exercisable option weighted average contractual term | 4 years 6 months | ||
Share options vested and expected to vest | 10,300,000 | ||
Aggregate intrinsic value of share options vested and expected to vest | $ 243.8 | ||
Weighted average exercise price of share options vested and expected to vest (per share) | $ 44.40 | ||
Weighted average contractual term of share options vested and expected to vest | 5 years 6 months | ||
Employee stock purchase plan shares granted | 316,250 | 415,995 | 399,567 |
Unrecognized compensation cost related to unvested options | $ 17.4 | ||
Weighted average recognition period for unvested options | 2 years 8 months 12 days | ||
Stock Incentive Plan (2019) | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares issued under the plan | 12,055 | 12,070 | 15,243 |
Employee Stock Purchase Plan (2006) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share purchase price as percentage of fair value | 85% | ||
Stock purchase plan discount percentage | 15% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 4 years |
Share-Based Awards, Purchase _4
Share-Based Awards, Purchase Plans and Compensation Cost (Option Activity and Outstanding) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | Dec. 27, 2019 | |
Options, Outstanding [Roll Forward] | ||||
Beginning (in shares) | 9,575 | 10,208 | 12,112 | |
Granted (in shares) | 1,381 | 843 | 1,400 | |
Exercised (in shares) | (645) | (1,309) | (3,238) | |
Canceled (in shares) | (46) | (167) | (66) | |
Ending (in shares) | 10,265 | 9,575 | 10,208 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning (dollars per share) | $ 39.31 | $ 35.02 | $ 28.91 | |
Granted (dollars per share) | 71.03 | 72.22 | 55.26 | |
Exercised (dollars per share) | 25.58 | 24.91 | 20.81 | |
Canceled (dollars per share) | 49.42 | 55.59 | 41.24 | |
Outstanding, ending (dollars per share) | $ 44.40 | $ 39.31 | $ 35.02 | |
Options, exercisable (in shares) | 7,793 | 7,296 | 6,553 | 8,231 |
Weighted average exercise price of exercisable options (dollars per share) | $ 37.22 | $ 33.75 | $ 28.02 | $ 23.75 |
Share-Based Awards, Purchase _5
Share-Based Awards, Purchase Plans and Compensation Cost (Options Outstanding and Exercisable By Price) (Details) shares in Thousands | 12 Months Ended |
Dec. 30, 2022 $ / shares shares | |
$10 - $30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | $ 10 |
Upper range exercise price | $ 30 |
Options Outstanding | shares | 2,971 |
Weighted Average Remaining Contractual Term in Years | 2 years 4 months 24 days |
Weighted Average Exercise Price | $ 24.76 |
Options Exercisable | shares | 2,971 |
Weighted Average Exercise Price | $ 24.76 |
$30 - $45 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 30 |
Upper range exercise price | $ 45 |
Options Outstanding | shares | 2,317 |
Weighted Average Remaining Contractual Term in Years | 4 years 8 months 12 days |
Weighted Average Exercise Price | $ 36.88 |
Options Exercisable | shares | 2,255 |
Weighted Average Exercise Price | $ 36.67 |
$45 - $60 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 45 |
Upper range exercise price | $ 60 |
Options Outstanding | shares | 2,813 |
Weighted Average Remaining Contractual Term in Years | 6 years 7 months 6 days |
Weighted Average Exercise Price | $ 50.50 |
Options Exercisable | shares | 2,325 |
Weighted Average Exercise Price | $ 50.02 |
$60 - $75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 60 |
Upper range exercise price | $ 75 |
Options Outstanding | shares | 2,164 |
Weighted Average Remaining Contractual Term in Years | 9 years |
Weighted Average Exercise Price | $ 71.47 |
Options Exercisable | shares | 242 |
Weighted Average Exercise Price | $ 72.15 |
$10 - $75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 10 |
Upper range exercise price | $ 75 |
Options Outstanding | shares | 10,265 |
Weighted Average Remaining Contractual Term in Years | 5 years 6 months |
Weighted Average Exercise Price | $ 44.40 |
Options Exercisable | shares | 7,793 |
Weighted Average Exercise Price | $ 37.22 |
Share-Based Awards, Purchase _6
Share-Based Awards, Purchase Plans and Compensation Cost (Options Exercised) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Cash received | $ 15,739 | $ 32,610 | $ 66,625 |
Aggregate intrinsic value | 28,193 | 65,319 | 120,395 |
Tax benefit realized | $ 6,020 | $ 13,329 | $ 25,000 |
Share-Based Awards, Purchase _7
Share-Based Awards, Purchase Plans and Compensation Cost (Authorized Shares) (Details) shares in Thousands | Dec. 30, 2022 shares |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 31,000 |
Available for future issuance | 17,553 |
Stock Incentive Plan (2019) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 10,000 |
Available for future issuance | 5,790 |
Employee Stock Purchase Plan (2006) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total shares authorized | 21,000 |
Available for future issuance | 11,763 |
Share-Based Awards, Purchase _8
Share-Based Awards, Purchase Plans and Compensation Cost Share-Based Awards, Purchase Plans and Compensation Cost (Share Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation | $ 24,695 | $ 24,931 | $ 25,153 |
Tax benefit | 2,319 | 1,705 | 1,700 |
Share-based compensation, net of tax | $ 22,376 | $ 23,226 | $ 23,453 |
Share-Based Awards, Purchase _9
Share-Based Awards, Purchase Plans and Compensation Cost (Valuation Assumptions Options) (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life in years | 6 years 4 months 24 days | 7 years 6 months | 7 years 6 months |
Interest rate | 2.70% | 0.90% | 1.40% |
Volatility | 26.20% | 25.20% | 22% |
Dividend yield | 1.20% | 1% | 1.30% |
Weighted average fair value per share | $ 19.10 | $ 17.87 | $ 12.18 |
Share-Based Awards, Purchase_10
Share-Based Awards, Purchase Plans and Compensation Cost (Valuation Assumptions ESPP) (Details) - Employee Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life in years | 1 year | 1 year | 1 year |
Interest rate | 0.90% | 0.10% | 1.50% |
Volatility | 20.50% | 40.10% | 21.90% |
Dividend yield | 1.20% | 1.10% | 1.40% |
Weighted average fair value per share | $ 16.01 | $ 21.50 | $ 11.55 |
Earnings per Share (Schedule Of
Earnings per Share (Schedule Of Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Earnings Per Share [Abstract] | |||
Net earnings available to common shareholders | $ 460,645 | $ 439,866 | $ 330,456 |
Weighted average shares outstanding for basic earnings per share | 168,952 | 169,635 | 167,462 |
Dilutive effect of stock options computed based on the treasury stock method using the average market price | 3,941 | 4,891 | 4,546 |
Weighted average shares outstanding for diluted earnings per share | 172,893 | 174,526 | 172,008 |
Basic earnings per share | $ 2.73 | $ 2.59 | $ 1.97 |
Diluted earnings per share | $ 2.66 | $ 2.52 | $ 1.92 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.2 | 0.4 | 0.3 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Defined Contribution Plan | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3% | ||
Company contribution rate for employees not covered by DBP | 2% | ||
Company contributions to 401K | $ 11,000 | $ 10,000 | $ 8,700 |
Defined Benefit Plan Disclosure [Line Items] | |||
Highest earnings years | 5 years | ||
Years preceding retirement | 10 years | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 20,000 | 20,000 | |
Accumulated benefit obligation for all defined benefit plans | 297,000 | 388,000 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 1,000 | 12,000 | 5,000 |
Pension Plan - Blue Plan [Member] | Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 53% | ||
Pension Plan - Blue Plan [Member] | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 42% | ||
Pension Plan - Blue Plan [Member] | Real Estate and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 5% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | 64,886 | |
Settlement loss (gain) | $ 0 | 12,285 | 0 |
Investments at Net Asset Value, Redemption Frequency | daily | ||
Investments at Net Asset Value, Unfunded Commitments | $ 2,300 | 2,400 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 22,756 | 22,493 | |
Expected company contributions to retirement plans next year | 1,900 | ||
Pension Benefits | Pension Plan - Blue and Gray Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 63,000 | ||
Settlement loss (gain) | (12,000) | ||
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |
Settlement loss (gain) | 0 | 0 | $ 0 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1,503 | $ 1,447 | |
Retirement medical plan limit on annual increase in company cost | 3% | ||
Expected company contributions to retirement plans next year | $ 1,800 | ||
Assumed health care trend rates | |||
Health care cost trend rate assumed for next year | 8.50% | ||
Ultimate health care cost trend rate | 4.50% | ||
Year that rate reaches ultimate trend rate | 2038 | ||
Minimum | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments at Net Asset Value, Redemption Notice Period | 10 days | ||
Maximum | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments at Net Asset Value, Redemption Notice Period | 60 days |
Retirement Benefits (Plan Asset
Retirement Benefits (Plan Assets by Category and Fair Value Measurement Level) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | $ 281,175 | $ 347,900 | $ 373,565 |
Investments categorized in fair value hierarchy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 32,514 | 31,229 | |
Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 248,661 | 316,671 | |
Cash and cash equivalents | Level 1 | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 351 | 303 | |
Insurance contract | Level 3 | Fair Value, Nonrecurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 32,163 | 30,926 | |
Equity | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 117,891 | 178,035 | |
U.S. Large Cap | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 74,838 | 110,569 | |
U.S. Small/Mid Cap | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 5,191 | 11,338 | |
International | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 37,862 | 56,128 | |
Fixed income | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 93,262 | 130,774 | |
Real estate and other | Fair Value, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | $ 37,508 | $ 7,862 |
Retirement Benefits Retirement
Retirement Benefits Retirement Benefits (Level 3 Asset Rollforward) (Details) - Fair Value, Nonrecurring [Member] - Pension Benefits - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Balance, beginning of year | $ 30,926 | $ 31,877 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 2,431 | 2,430 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 669 | 2,556 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | (525) | (825) |
Balance, end of year | $ 32,163 | $ 30,926 |
Retirement Benefits (Funded Sta
Retirement Benefits (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Change in plan assets | |||
Employer contributions | $ 20,000 | $ 20,000 | |
Pension Benefits | |||
Change in benefit obligation | |||
Obligation, beginning of year | 418,051 | 510,652 | |
Service cost | 8,242 | 9,355 | $ 9,361 |
Interest cost | 10,996 | 11,409 | 13,313 |
Actuarial loss (gain) | (110,467) | (31,093) | |
Benefit payments | (9,122) | (13,360) | |
Plan amendments | (267) | (1,458) | |
Settlements | 0 | (64,886) | |
Exchange rate changes | (1,626) | (2,568) | |
Obligation, end of year | 315,807 | 418,051 | 510,652 |
Change in plan assets | |||
Fair value, beginning of year | 347,900 | 373,565 | |
Actual return on assets | (80,078) | 30,984 | |
Employer contributions | 22,756 | 22,493 | |
Benefit payments | (9,122) | (13,360) | |
Settlements | 0 | (64,886) | |
Exchange rate changes | (281) | (896) | |
Fair value, end of year | 281,175 | 347,900 | 373,565 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (34,632) | (70,151) | |
Postretirement Medical Benefits | |||
Change in benefit obligation | |||
Obligation, beginning of year | 32,122 | 34,458 | |
Service cost | 516 | 670 | 609 |
Interest cost | 839 | 832 | 1,016 |
Actuarial loss (gain) | (9,044) | (2,391) | |
Benefit payments | (1,503) | (1,447) | |
Plan amendments | 0 | 0 | |
Settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Obligation, end of year | 22,930 | 32,122 | 34,458 |
Change in plan assets | |||
Fair value, beginning of year | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Employer contributions | 1,503 | 1,447 | |
Benefit payments | (1,503) | (1,447) | |
Settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Fair value, end of year | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (22,930) | $ (32,122) |
Retirement Benefits (Amounts Re
Retirement Benefits (Amounts Recognized in Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Amounts recognized in consolidated balance sheets | ||
Non-current liabilities | $ 61,672 | $ 106,897 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid Expense, Noncurrent | 5,398 | 0 |
Amounts recognized in consolidated balance sheets | ||
Current liabilities | 1,860 | 1,769 |
Non-current liabilities | 38,170 | 68,382 |
Net | 34,632 | 70,151 |
Postretirement Medical Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid Expense, Noncurrent | 0 | 0 |
Amounts recognized in consolidated balance sheets | ||
Current liabilities | 1,763 | 1,768 |
Non-current liabilities | 21,167 | 30,354 |
Net | $ 22,930 | $ 32,122 |
Retirement Benefits (Accumulate
Retirement Benefits (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Information for plans with accumulated benefit obligation in excess of plan assets | ||
Projected benefit obligation | $ 72,190 | $ 91,678 |
Accumulated benefit obligation | 69,395 | 88,927 |
Fair value of plan assets | $ 32,164 | $ 30,926 |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Non-service pension cost included in non-operating expense | $ 1,000 | $ 12,000 | $ 5,000 |
Pension Benefits | |||
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | 8,242 | 9,355 | 9,361 |
Interest cost on projected benefit obligation | 10,996 | 11,409 | 13,313 |
Expected return on assets | (19,754) | (20,767) | (18,814) |
Amortization of prior service cost (credit) | 84 | 246 | 294 |
Amortization of net loss (gain) | 4,701 | 9,248 | 10,243 |
Settlement loss (gain) | 0 | 12,285 | 0 |
Cost of pension plans which are not significant and have not adopted ASC 715 | 284 | 368 | 168 |
Net periodic benefit cost | 4,553 | 22,144 | 14,565 |
Postretirement Medical Benefits | |||
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | 516 | 670 | 609 |
Interest cost on projected benefit obligation | 839 | 832 | 1,016 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of net loss (gain) | 345 | 1,002 | 733 |
Settlement loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost | $ 1,700 | $ 2,504 | $ 2,358 |
Retirement Benefits (Amounts _2
Retirement Benefits (Amounts recognized in other comprehensive (income) loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Pension Benefits | ||
Amounts recognized in other comprehensive (income) loss | ||
Net gain (loss) arising during the period | $ 11,189 | $ 42,039 |
Amortization of net (gain) loss | 4,701 | 9,248 |
Prior service credit (cost) arising during the period | 267 | 1,458 |
Settlement (gain) loss | 0 | 12,285 |
Amortization of prior service (credit) cost | 84 | 246 |
Total | 16,241 | 65,276 |
Postretirement Medical Benefits | ||
Amounts recognized in other comprehensive (income) loss | ||
Net gain (loss) arising during the period | 9,044 | 2,391 |
Amortization of net (gain) loss | 345 | 1,002 |
Prior service credit (cost) arising during the period | 0 | 0 |
Settlement (gain) loss | 0 | 0 |
Amortization of prior service (credit) cost | 0 | 0 |
Total | $ 9,389 | $ 3,393 |
Retirement Benefits (Amounts in
Retirement Benefits (Amounts included in accumulated other comprehensive (income) loss) (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Dec. 31, 2021 |
Pension Benefits | ||
Amounts recognized in accumulated ther comprehensive income | ||
Prior service cost | $ 1,668 | $ 1,293 |
Net gain (loss) | (55,084) | (70,995) |
Net before income taxes | (53,416) | (69,702) |
Income taxes | 12,207 | 15,443 |
Net | (41,209) | (54,259) |
Postretirement Medical Benefits | ||
Amounts recognized in accumulated ther comprehensive income | ||
Prior service cost | 0 | 0 |
Net gain (loss) | 1,891 | (7,498) |
Net before income taxes | 1,891 | (7,498) |
Income taxes | (416) | 1,650 |
Net | $ 1,475 | $ (5,848) |
Retirement Benefits (Assumption
Retirement Benefits (Assumptions used to determine obligations and cost) (Details) | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
U.S. Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.60% | 3% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.70% | 2.70% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 3% | 2.60% | 3.50% |
Rate of compensation increase | 2.70% | 2.70% | 2.80% |
Expected return on assets | 6.30% | 6.30% | 6.80% |
Non-U.S. Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.40% | 0.40% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 1.80% | 1.30% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 0.40% | 0.40% | 0.40% |
Rate of compensation increase | 1.30% | 1.30% | 1.30% |
Expected return on assets | 1% | 1% | 1.50% |
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 8.50% | ||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.60% | 2.90% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 2.90% | 2.60% | 3.40% |
Retirement Benefits (Estimated
Retirement Benefits (Estimated future benefit payments) (Details) $ in Thousands | Dec. 30, 2022 USD ($) |
Pension Benefits | |
Estimated future benefit payments | |
2023 | $ 15,583 |
2024 | 17,035 |
2025 | 16,406 |
2026 | 18,585 |
2027 | 20,116 |
Years 2028-2032 | 107,755 |
Postretirement Medical Benefits | |
Estimated future benefit payments | |
2023 | 1,763 |
2024 | 1,748 |
2025 | 1,735 |
2026 | 1,715 |
2027 | 1,699 |
Years 2028-2032 | $ 8,136 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating Lease, Expense | $ 12,307 | $ 11,641 |
Operating Lease, Payments | 11,886 | 11,564 |
Operating Lease, Right of Use Asset, Additions | $ 8,859 | $ 1,631 |
Operating Lease, Weighted Average Remaining Lease Term | 3 years | 5 years |
Operating Lease, Weighted Average Discount Rate, Percent | 3% | 2.24% |
Lessee, Operating Lease, Liability, Payments, Due in 2023 | $ 9,555 | |
Lessee, Operating Lease, Liability, Payments, Due in 2024 | 7,931 | |
Lessee, Operating Lease, Liability, Payments, Due in 2025 | 5,462 | |
Lessee, Operating Lease, Liability, Payments, Due in 2026 | 4,118 | |
Lessee, Operating Lease, Liability, Payments, Due in 2027 | 2,514 | |
Lessee, Operating Lease, Liability, Payments, Due Thereafter | 2,928 | |
Lessee, Operating Lease, Liability, Payments, Due | 32,508 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,896) | |
Operating Lease, Liability | $ 30,612 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Millions | Dec. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Open purchase order commitments | $ 230 |
Maximum purchase quantities and supplier inventory commitments | 59 |
Contractual Obligation, Due in 2023 | 4 |
Contractual Obligation, Due in 2024 | 3 |
Contractual Obligation, Due in 2025 | 3 |
Contractual Obligation, Due Thereafter | 2 |
Standby letters of credit commitments | 6 |
Guarantees of subsidiary debt | $ 8 |