Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 12, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-09249 | |
Entity Registrant Name | GRACO INC. | |
Entity Incorporation, State | MN | |
Entity Tax Identification Number | 41-0285640 | |
Entity Address, Address Description | 88 - 11th Avenue N.E. | |
Entity Address, City or Town | Minneapolis, | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55413 | |
City Area Code | (612) | |
Local Phone Number | 623-6000 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | GGG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 168,992,778 | |
Amendment Flag | false | |
Entity Central Index Key | 0000042888 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 559,644 | $ 548,547 | $ 1,089,290 | $ 1,042,832 |
Cost of Goods and Services Sold | 268,229 | 279,487 | 512,735 | 519,297 |
Gross Profit | 291,415 | 269,060 | 576,555 | 523,535 |
Product development | 21,286 | 19,967 | 41,765 | 39,045 |
Selling, marketing and distribution | 68,380 | 62,076 | 133,763 | 125,071 |
General and administrative | 44,697 | 38,337 | 87,307 | 82,376 |
Operating Earnings | 157,052 | 148,680 | 313,720 | 277,043 |
Interest expense | 1,798 | 1,726 | 3,145 | 7,013 |
Other (income) expense, net | (4,365) | 607 | (6,394) | 760 |
Earnings Before Income Taxes | 159,619 | 146,347 | 316,969 | 269,270 |
Income taxes | 25,351 | 28,969 | 53,535 | 51,049 |
Net Earnings | $ 134,268 | $ 117,378 | $ 263,434 | $ 218,221 |
Basic earnings per share | $ 0.80 | $ 0.69 | $ 1.56 | $ 1.29 |
Diluted earnings per share | $ 0.78 | $ 0.68 | $ 1.53 | $ 1.26 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Earnings | $ 134,268 | $ 117,378 | $ 263,434 | $ 218,221 |
Components of other comprehensive income (loss) | ||||
Cumulative translation adjustment | 4,553 | (13,532) | 9,528 | (16,492) |
Pension and postretirement medical liability adjustment | 1,195 | 1,368 | 2,327 | 2,262 |
Income taxes - pension and postretirement medical liability adjustment | (264) | (320) | (508) | (514) |
Other comprehensive income (loss) | 5,484 | (12,484) | 11,347 | (14,744) |
Comprehensive Income | $ 139,752 | $ 104,894 | $ 274,781 | $ 203,477 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 520,633 | $ 339,196 |
Accounts receivable, less allowances of $5,100 and $7,000 | 365,818 | 346,010 |
Inventories | 479,095 | 476,790 |
Other current assets | 44,907 | 43,624 |
Total current assets | 1,410,453 | 1,205,620 |
Property, Plant and Equipment, net | 680,040 | 607,609 |
Goodwill | 371,880 | 368,171 |
Other Intangible Assets, net | 131,089 | 137,507 |
Operating Lease Assets | 29,158 | 29,785 |
Deferred Income Taxes | 48,189 | 57,090 |
Other Assets | 36,916 | 33,118 |
Total Assets | 2,707,725 | 2,438,900 |
Current Liabilities | ||
Notes payable to banks | 49,099 | 20,974 |
Current portion of long term debt | 75,000 | 0 |
Trade accounts payable | 81,540 | 84,218 |
Salaries and incentives | 55,150 | 63,969 |
Dividends payable | 39,692 | 39,963 |
Other current liabilities | 188,857 | 190,793 |
Total current liabilities | 489,338 | 399,917 |
Long-term Debt | 0 | 75,000 |
Retirement Benefits and Deferred Compensation | 61,995 | 61,672 |
Operating Lease Liabilities | 20,343 | 21,057 |
Deferred Income Taxes | 8,730 | 9,443 |
Other Non-current Liabilities | 11,012 | 12,159 |
Shareholders’ Equity | ||
Common stock | 168,985 | 167,702 |
Additional paid-in-capital | 850,900 | 784,477 |
Retained earnings | 1,154,453 | 976,851 |
Accumulated other comprehensive income (loss) | (58,031) | (69,378) |
Total shareholders’ equity | 2,116,307 | 1,859,652 |
Total Liabilities and Shareholders’ Equity | $ 2,707,725 | $ 2,438,900 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for Credits | $ 5.1 | $ 7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Cash Flows From Operating Activities | ||
Net Earnings | $ 263,434 | $ 218,221 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 36,117 | 31,453 |
Deferred income taxes | 7,650 | 14,743 |
Share-based compensation | 18,417 | 14,386 |
Change in | ||
Accounts receivable | (17,421) | (56,263) |
Inventories | (184) | (70,879) |
Trade accounts payable | (8,243) | 8,369 |
Salaries and incentives | (10,179) | (29,201) |
Retirement benefits and deferred compensation | 1,953 | 349 |
Other accrued liabilities | (5,728) | (386) |
Other | (3,493) | 4,193 |
Net cash provided by operating activities | 282,323 | 134,985 |
Cash Flows From Investing Activities | ||
Property, plant and equipment additions | (92,232) | (88,861) |
Acquisition of businesses, net of cash acquired | 0 | (25,296) |
Other | (940) | (397) |
Net cash used in investing activities | (93,172) | (114,554) |
Cash Flows From Financing Activities | ||
Borrowings on short-term lines of credit, net | 28,966 | 13,830 |
Payments on long-term debt | 0 | (75,000) |
Payments of debt issuance costs | 1,025 | 0 |
Common stock issued | 52,053 | 23,410 |
Common stock repurchased | (7,766) | (120,021) |
Taxes paid related to net share settlement of equity awards | (1,225) | (1,219) |
Cash dividends paid | (78,991) | (71,341) |
Net cash provided (used) in financing activities | (7,988) | (230,341) |
Effect of exchange rate changes on cash | 274 | (1,033) |
Net increase (decrease) in cash and cash equivalents | 181,437 | (210,943) |
Cash and Cash Equivalents | ||
Beginning of year | 339,196 | 624,302 |
End of period | $ 520,633 | $ 413,359 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2021 | $ 1,709,343 | $ 170,308 | $ 742,288 | $ 876,916 | $ (80,169) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 22,192 | 507 | 21,685 | 0 | 0 |
Shares repurchased | (120,021) | (1,701) | (7,412) | (110,908) | 0 |
Stock compensation cost | 13,649 | 0 | 13,649 | 0 | 0 |
Restricted stock canceled (issued) | (1) | 0 | (1) | 0 | 0 |
Net Earnings | 218,221 | 0 | 0 | 218,221 | 0 |
Dividends declared | (71,365) | 0 | 0 | (71,365) | 0 |
Other comprehensive income (loss) | (14,744) | 0 | 0 | 0 | (14,744) |
Ending Balance at Jul. 01, 2022 | 1,757,274 | 169,114 | 770,209 | 912,864 | (94,913) |
Beginning Balance at Apr. 01, 2022 | 1,690,256 | 169,223 | 761,959 | 841,503 | (82,429) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 2,117 | 70 | 2,047 | 0 | 0 |
Shares repurchased | (11,316) | (179) | (777) | (10,360) | 0 |
Stock compensation cost | 6,980 | 0 | 6,980 | 0 | 0 |
Restricted stock canceled (issued) | 0 | 0 | 0 | 0 | 0 |
Net Earnings | 117,378 | 0 | 0 | 117,378 | 0 |
Dividends declared | (35,657) | 0 | 0 | (35,657) | 0 |
Other comprehensive income (loss) | (12,484) | 0 | 0 | 0 | (12,484) |
Ending Balance at Jul. 01, 2022 | 1,757,274 | 169,114 | 770,209 | 912,864 | (94,913) |
Beginning Balance at Dec. 30, 2022 | 1,859,652 | 167,702 | 784,477 | 976,851 | (69,378) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 50,828 | 1,398 | 49,430 | 0 | 0 |
Shares repurchased | (7,766) | (115) | (539) | (7,112) | 0 |
Stock compensation cost | 17,532 | 0 | 17,532 | 0 | 0 |
Net Earnings | 263,434 | 0 | 0 | 263,434 | 0 |
Dividends declared | (78,720) | 0 | 0 | (78,720) | 0 |
Other comprehensive income (loss) | 11,347 | 0 | 0 | 0 | 11,347 |
Ending Balance at Jun. 30, 2023 | 2,116,307 | 168,985 | 850,900 | 1,154,453 | (58,031) |
Beginning Balance at Mar. 31, 2023 | 1,986,343 | 168,308 | 821,570 | 1,059,980 | (63,515) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 21,027 | 677 | 20,350 | 0 | 0 |
Stock compensation cost | 8,980 | 0 | 8,980 | 0 | 0 |
Net Earnings | 134,268 | 0 | 0 | 134,268 | 0 |
Dividends declared | (39,795) | 0 | 0 | (39,795) | 0 |
Other comprehensive income (loss) | 5,484 | 0 | 0 | 0 | 5,484 |
Ending Balance at Jun. 30, 2023 | $ 2,116,307 | $ 168,985 | $ 850,900 | $ 1,154,453 | $ (58,031) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Unaudited) Consolidated Statements of Shareholders' Equity (Unaudited) Parenthetical - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends declared per share (in dollars per share) | $ 0.2350 | $ 0.210 | $ 0.470 | $ 0.4200 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated balance sheet of Graco Inc. and subsidiaries (the “Company”) as of June 30, 2023 and the related statements of earnings, comprehensive income and shareholders' equity for the three and six months ended June 30, 2023 and July 1, 2022, and cash flows for the six months ended June 30, 2023 and July 1, 2022 have been prepared by the Company and have not been audited. In the opinion of management, these consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of the Company as of June 30, 2023, and the results of operations and cash flows for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company’s 2022 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has three reportable segments: Contractor, Industrial and Process. Sales and operating earnings by segment were as follows (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Net Sales Contractor $ 255,648 $ 265,739 $ 501,619 $ 500,331 Industrial 163,523 158,325 313,713 302,994 Process 140,473 124,483 273,958 239,507 Total $ 559,644 $ 548,547 $ 1,089,290 $ 1,042,832 Operating Earnings Contractor $ 68,868 $ 68,244 $ 142,640 $ 127,191 Industrial 55,887 55,201 108,657 107,831 Process 43,620 31,057 84,185 58,545 Unallocated corporate (expense) (11,323) (5,822) (21,762) (16,524) Total $ 157,052 $ 148,680 $ 313,720 $ 277,043 Assets by segment were as follows (in thousands): June 30, December 30, Contractor $ 769,654 $ 752,729 Industrial 617,270 578,302 Process 583,002 564,539 Unallocated corporate 737,799 543,330 Total $ 2,707,725 $ 2,438,900 Geographic information follows (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Net Sales (based on customer location) United States $ 301,953 $ 296,009 $ 590,942 $ 551,091 Other countries 257,691 252,538 498,348 491,741 Total $ 559,644 $ 548,547 $ 1,089,290 $ 1,042,832 June 30, December 30, Long-lived Assets United States $ 583,160 $ 532,401 Other countries 96,880 75,208 Total $ 680,040 $ 607,609 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Net earnings available to common shareholders $ 134,268 $ 117,378 $ 263,434 $ 218,221 Weighted average shares outstanding for basic earnings per share 168,683 169,128 168,351 169,469 Dilutive effect of stock options computed using the treasury stock method and the average market price 3,868 3,570 3,763 4,219 Weighted average shares outstanding for diluted earnings per share 172,551 172,698 172,114 173,688 Basic earnings per share $ 0.80 $ 0.69 $ 1.56 $ 1.29 Diluted earnings per share $ 0.78 $ 0.68 $ 1.53 $ 1.26 Anti-dilutive shares not included in diluted earnings per share computation 1,868 1,632 2,206 1,625 |
Share-Based Awards
Share-Based Awards | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Share-Based Awards | Share-Based Awards Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Weighted Average Options Weighted Average Outstanding, December 30, 2022 10,265 $ 44.40 7,793 $ 37.22 Granted 1,114 71.45 Exercised (1,093) 30.74 Canceled (62) 64.80 Outstanding, June 30, 2023 10,224 $ 48.68 7,529 $ 40.96 The Company recognized year-to-date share-based compensation of $18.4 million in 2023 and $12.9 million in 2022. As of June 30, 2023, there was $25.8 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 2.9 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: Six Months Ended June 30, July 1, Expected life in years 6.7 7.3 Interest rate 4.0 % 1.9 % Volatility 26.3 % 25.5 % Dividend yield 1.3 % 1.2 % Weighted average fair value per share $ 21.76 $ 19.06 Under the Company’s Employee Stock Purchase Plan, the Company issued 323,000 shares in 2023 and 319,000 shares in 2022. The fair value of the employees’ purchase rights under this Plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option pricing model with the following assumptions and results: Six Months Ended June 30, July 1, Expected life in years 1.0 1.0 Interest rate 5.1 % 0.9 % Volatility 26.4 % 20.5 % Dividend yield 1.4 % 1.2 % Weighted average fair value per share $ 18.04 $ 16.01 |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Pension Benefits Service cost $ 1,467 $ 1,964 $ 2,931 $ 4,134 Interest cost 3,798 2,766 7,575 5,504 Expected return on assets (3,980) (4,777) (7,955) (9,579) Amortization and other 415 1,419 855 2,495 Net periodic benefit cost $ 1,700 $ 1,372 $ 3,406 $ 2,554 Postretirement Medical Service cost $ 100 $ 83 $ 200 $ 258 Interest cost 210 195 420 420 Amortization 90 (2) 180 173 Net periodic benefit cost $ 400 $ 276 $ 800 $ 851 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Changes in components of accumulated other comprehensive income (loss), net of tax were as follows (in thousands): Pension and Cumulative Total Three Months Ended June 30, 2023 Balance, March 31, 2023 $ (38,846) $ (24,669) $ (63,515) Other comprehensive income (loss) before reclassifications — 4,553 4,553 Reclassified to pension cost and deferred tax 931 — 931 Balance, June 30, 2023 $ (37,915) $ (20,116) $ (58,031) Six Months Ended June 30, 2023 Balance, December 30, 2022 $ (39,734) $ (29,644) $ (69,378) Other comprehensive income (loss) before reclassifications — 9,528 9,528 Reclassified to pension cost and deferred tax 1,819 — 1,819 Balance, June 30, 2023 $ (37,915) $ (20,116) $ (58,031) Three Months Ended July 1, 2022 Balance, April 1, 2022 $ (59,407) $ (23,022) $ (82,429) Other comprehensive income (loss) before reclassifications — (13,532) (13,532) Reclassified to pension cost and deferred tax 1,048 — 1,048 Balance, July 1, 2022 $ (58,359) $ (36,554) $ (94,913) Six Months Ended July 1, 2022 Balance, December 31, 2021 $ (60,107) $ (20,062) $ (80,169) Other comprehensive income (loss) before reclassifications — (16,492) (16,492) Reclassified to pension cost and deferred tax 1,748 — 1,748 Balance, July 1, 2022 $ (58,359) $ (36,554) $ (94,913) |
Receivables and Credit Losses
Receivables and Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Credit Loss [Abstract] | |
Receivables and Credit Losses | Receivables and Credit Losses Accounts receivable include trade receivables of $354 million and other receivables of $12 million as of June 30, 2023 and $334 million and $12 million, respectively, as of December 30, 2022. Allowance for Credit Losses Following is a summary of activity for credit losses (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Balance, beginning $ 4,232 $ 6,474 $ 6,130 $ 3,254 Additions charged to costs and expenses 417 26 280 3,246 Deductions from reserves (1) (449) (542) (2,269) (575) Other additions (deductions) (2) (1) (269) 58 (236) Balance, ending $ 4,199 $ 5,689 $ 4,199 $ 5,689 (1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (2) Includes effects of foreign currency translation. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major components of inventories were as follows (in thousands): June 30, December 30, Finished products and components $ 245,480 $ 222,326 Products and components in various stages of completion 138,264 138,957 Raw materials and purchased components 227,972 248,636 Subtotal 611,716 609,919 Reduction to LIFO cost (132,621) (133,129) Total $ 479,095 $ 476,790 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Components of other intangible assets were as follows (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of June 30, 2023 Cost $ 197,417 $ 26,374 $ 1,300 $ 62,633 $ 287,724 Accumulated amortization (126,617) (19,245) (445) — (146,307) Foreign currency translation (8,803) (848) — (677) (10,328) Book value $ 61,997 $ 6,281 $ 855 $ 61,956 $ 131,089 Weighted average life in years 13 9 6 N/A 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 Amortization of intangibles for the second quarter was $4.4 million in 2023 and $4.6 million in 2022, and for the year to date was $8.9 million in 2023 and $9.4 million in 2022. Estimated annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2023 (Remainder) 2024 2025 2026 2027 Thereafter Estimated Amortization Expense $ 8,526 $ 16,448 $ 15,986 $ 9,105 $ 6,443 $ 12,625 Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands): Contractor Industrial Process Total Balance, December 30, 2022 $ 77,034 $ 134,771 $ 156,366 $ 368,171 Additions, adjustments from business acquisitions — — — — Foreign currency translation 276 2,646 787 3,709 Balance, June 30, 2023 $ 77,310 $ 137,417 $ 157,153 $ 371,880 |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities Components of other current liabilities were as follows (in thousands): June 30, December 30, Accrued self-insurance retentions $ 9,203 $ 9,338 Accrued warranty and service liabilities 15,413 14,674 Accrued trade promotions 11,434 13,799 Payable for employee stock purchases 7,515 16,497 Customer advances and deferred revenue 58,226 50,747 Income taxes payable 19,369 15,987 Tax payable, other 9,337 9,614 Right of return refund liability 18,257 18,449 Operating lease liabilities, current 9,126 9,555 Other 30,977 32,133 Total $ 188,857 $ 190,793 A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors, including evaluating specific product warranty issues. Following is a summary of activity in accrued warranty and service liabilities (in thousands): Balance, December 30, 2022 $ 14,674 Charged to expense 5,229 Margin on parts sales reversed 2,179 Reductions for claims settled (6,669) Balance, June 30, 2023 $ 15,413 Customer Advances and Deferred Revenue |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 23, 2023 and June 8, 2023, the Company executed amendments to its amended and restated credit agreement that amended, superseded and restated in its entirety the Company's existing credit agreement with U.S. Bank National Association, as administrative agent and a lender, and the other lenders that are parties thereto. The first amendment removed references to LIBOR for calculating rates and replaced it with SOFR and its equivalent benchmark rates such as EURIBOR, TIBOR and RFR loans. The second amendment increased, from $500 million to $750 million, the amount of availability under an unsecured revolving credit facility, as well as increasing, from $200 million to $375 million, the maximum amount of outstanding loans in currencies other than U.S. Dollars. The amendment also increased, from $250 million to $375 million, the amount by which the size of the credit facility may be increased upon exercise of an accordion feature. The accordion feature may be exercised by means of an increase in the revolving commitments or the addition of term loans. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In July 2023, the Company prepaid $75 million of its Series D private placement note in addition to a $0.7 million prepayment fee, which will be recognized as interest expense in the third quarter of 2023. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level June 30, December 30, Assets Cash surrender value of life insurance 2 $ 21,015 $ 19,192 Forward exchange contracts 2 160 — Total assets at fair value $ 21,175 $ 19,192 Liabilities Contingent consideration 3 $ 9,975 $ 14,914 Deferred compensation 2 5,984 5,842 Forward exchange contracts 2 — 520 Total liabilities at fair value $ 15,959 $ 21,276 Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds. Contingent consideration liability represents the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of certain acquired businesses based on future revenues. Long-term notes payable with fixed interest rates had a carrying amount of $75 million and an estimated fair value of $75 million as of both June 30, 2023 and December 30, 2022. The fair value of variable rate borrowings approximates carrying value. The Company uses significant other observable inputs to estimate fair value (level 2 of the fair value hierarchy) based on the present value of future cash flows and rates that would be available for issuance of debt with similar terms and remaining maturities. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting - Operations and Assets | Sales and operating earnings by segment were as follows (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Net Sales Contractor $ 255,648 $ 265,739 $ 501,619 $ 500,331 Industrial 163,523 158,325 313,713 302,994 Process 140,473 124,483 273,958 239,507 Total $ 559,644 $ 548,547 $ 1,089,290 $ 1,042,832 Operating Earnings Contractor $ 68,868 $ 68,244 $ 142,640 $ 127,191 Industrial 55,887 55,201 108,657 107,831 Process 43,620 31,057 84,185 58,545 Unallocated corporate (expense) (11,323) (5,822) (21,762) (16,524) Total $ 157,052 $ 148,680 $ 313,720 $ 277,043 Assets by segment were as follows (in thousands): June 30, December 30, Contractor $ 769,654 $ 752,729 Industrial 617,270 578,302 Process 583,002 564,539 Unallocated corporate 737,799 543,330 Total $ 2,707,725 $ 2,438,900 |
Segment Reporting - Geographic | Geographic information follows (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Net Sales (based on customer location) United States $ 301,953 $ 296,009 $ 590,942 $ 551,091 Other countries 257,691 252,538 498,348 491,741 Total $ 559,644 $ 548,547 $ 1,089,290 $ 1,042,832 June 30, December 30, Long-lived Assets United States $ 583,160 $ 532,401 Other countries 96,880 75,208 Total $ 680,040 $ 607,609 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Net earnings available to common shareholders $ 134,268 $ 117,378 $ 263,434 $ 218,221 Weighted average shares outstanding for basic earnings per share 168,683 169,128 168,351 169,469 Dilutive effect of stock options computed using the treasury stock method and the average market price 3,868 3,570 3,763 4,219 Weighted average shares outstanding for diluted earnings per share 172,551 172,698 172,114 173,688 Basic earnings per share $ 0.80 $ 0.69 $ 1.56 $ 1.29 Diluted earnings per share $ 0.78 $ 0.68 $ 1.53 $ 1.26 Anti-dilutive shares not included in diluted earnings per share computation 1,868 1,632 2,206 1,625 |
Share-Based Awards (Tables)
Share-Based Awards (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Options Activity and Outstanding | Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Weighted Average Options Weighted Average Outstanding, December 30, 2022 10,265 $ 44.40 7,793 $ 37.22 Granted 1,114 71.45 Exercised (1,093) 30.74 Canceled (62) 64.80 Outstanding, June 30, 2023 10,224 $ 48.68 7,529 $ 40.96 |
Options Fair Value Inputs | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: Six Months Ended June 30, July 1, Expected life in years 6.7 7.3 Interest rate 4.0 % 1.9 % Volatility 26.3 % 25.5 % Dividend yield 1.3 % 1.2 % Weighted average fair value per share $ 21.76 $ 19.06 |
ESPP Fair Value Inputs | The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option pricing model with the following assumptions and results: Six Months Ended June 30, July 1, Expected life in years 1.0 1.0 Interest rate 5.1 % 0.9 % Volatility 26.4 % 20.5 % Dividend yield 1.4 % 1.2 % Weighted average fair value per share $ 18.04 $ 16.01 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Pension Benefits Service cost $ 1,467 $ 1,964 $ 2,931 $ 4,134 Interest cost 3,798 2,766 7,575 5,504 Expected return on assets (3,980) (4,777) (7,955) (9,579) Amortization and other 415 1,419 855 2,495 Net periodic benefit cost $ 1,700 $ 1,372 $ 3,406 $ 2,554 Postretirement Medical Service cost $ 100 $ 83 $ 200 $ 258 Interest cost 210 195 420 420 Amortization 90 (2) 180 173 Net periodic benefit cost $ 400 $ 276 $ 800 $ 851 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Changes in AOCI | Changes in components of accumulated other comprehensive income (loss), net of tax were as follows (in thousands): Pension and Cumulative Total Three Months Ended June 30, 2023 Balance, March 31, 2023 $ (38,846) $ (24,669) $ (63,515) Other comprehensive income (loss) before reclassifications — 4,553 4,553 Reclassified to pension cost and deferred tax 931 — 931 Balance, June 30, 2023 $ (37,915) $ (20,116) $ (58,031) Six Months Ended June 30, 2023 Balance, December 30, 2022 $ (39,734) $ (29,644) $ (69,378) Other comprehensive income (loss) before reclassifications — 9,528 9,528 Reclassified to pension cost and deferred tax 1,819 — 1,819 Balance, June 30, 2023 $ (37,915) $ (20,116) $ (58,031) Three Months Ended July 1, 2022 Balance, April 1, 2022 $ (59,407) $ (23,022) $ (82,429) Other comprehensive income (loss) before reclassifications — (13,532) (13,532) Reclassified to pension cost and deferred tax 1,048 — 1,048 Balance, July 1, 2022 $ (58,359) $ (36,554) $ (94,913) Six Months Ended July 1, 2022 Balance, December 31, 2021 $ (60,107) $ (20,062) $ (80,169) Other comprehensive income (loss) before reclassifications — (16,492) (16,492) Reclassified to pension cost and deferred tax 1,748 — 1,748 Balance, July 1, 2022 $ (58,359) $ (36,554) $ (94,913) |
Receivables and Credit Losses (
Receivables and Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | Following is a summary of activity for credit losses (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Balance, beginning $ 4,232 $ 6,474 $ 6,130 $ 3,254 Additions charged to costs and expenses 417 26 280 3,246 Deductions from reserves (1) (449) (542) (2,269) (575) Other additions (deductions) (2) (1) (269) 58 (236) Balance, ending $ 4,199 $ 5,689 $ 4,199 $ 5,689 (1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (2) Includes effects of foreign currency translation. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, Net [Abstract] | |
Components of Inventories | Major components of inventories were as follows (in thousands): June 30, December 30, Finished products and components $ 245,480 $ 222,326 Products and components in various stages of completion 138,264 138,957 Raw materials and purchased components 227,972 248,636 Subtotal 611,716 609,919 Reduction to LIFO cost (132,621) (133,129) Total $ 479,095 $ 476,790 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Components of other intangible assets were as follows (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of June 30, 2023 Cost $ 197,417 $ 26,374 $ 1,300 $ 62,633 $ 287,724 Accumulated amortization (126,617) (19,245) (445) — (146,307) Foreign currency translation (8,803) (848) — (677) (10,328) Book value $ 61,997 $ 6,281 $ 855 $ 61,956 $ 131,089 Weighted average life in years 13 9 6 N/A 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 |
Future Amortization Expense | Estimated annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2023 (Remainder) 2024 2025 2026 2027 Thereafter Estimated Amortization Expense $ 8,526 $ 16,448 $ 15,986 $ 9,105 $ 6,443 $ 12,625 |
Goodwill Rollforward | Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands): Contractor Industrial Process Total Balance, December 30, 2022 $ 77,034 $ 134,771 $ 156,366 $ 368,171 Additions, adjustments from business acquisitions — — — — Foreign currency translation 276 2,646 787 3,709 Balance, June 30, 2023 $ 77,310 $ 137,417 $ 157,153 $ 371,880 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Components of Other Current Liabilities | Components of other current liabilities were as follows (in thousands): June 30, December 30, Accrued self-insurance retentions $ 9,203 $ 9,338 Accrued warranty and service liabilities 15,413 14,674 Accrued trade promotions 11,434 13,799 Payable for employee stock purchases 7,515 16,497 Customer advances and deferred revenue 58,226 50,747 Income taxes payable 19,369 15,987 Tax payable, other 9,337 9,614 Right of return refund liability 18,257 18,449 Operating lease liabilities, current 9,126 9,555 Other 30,977 32,133 Total $ 188,857 $ 190,793 |
Accrued Warranty Activity | Following is a summary of activity in accrued warranty and service liabilities (in thousands): Balance, December 30, 2022 $ 14,674 Charged to expense 5,229 Margin on parts sales reversed 2,179 Reductions for claims settled (6,669) Balance, June 30, 2023 $ 15,413 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Schedule | Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level June 30, December 30, Assets Cash surrender value of life insurance 2 $ 21,015 $ 19,192 Forward exchange contracts 2 160 — Total assets at fair value $ 21,175 $ 19,192 Liabilities Contingent consideration 3 $ 9,975 $ 14,914 Deferred compensation 2 5,984 5,842 Forward exchange contracts 2 — 520 Total liabilities at fair value $ 15,959 $ 21,276 |
Segment Reporting Information -
Segment Reporting Information - Operations and Assets (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jul. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jul. 01, 2022 USD ($) | Dec. 30, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Revenues | $ 559,644 | $ 548,547 | $ 1,089,290 | $ 1,042,832 | |
Operating Earnings | 157,052 | 148,680 | 313,720 | 277,043 | |
Total Assets | 2,707,725 | 2,707,725 | $ 2,438,900 | ||
Operating Segments | Contractor | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 255,648 | 265,739 | 501,619 | 500,331 | |
Operating Earnings | 68,868 | 68,244 | 142,640 | 127,191 | |
Total Assets | 769,654 | 769,654 | 752,729 | ||
Operating Segments | Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 163,523 | 158,325 | 313,713 | 302,994 | |
Operating Earnings | 55,887 | 55,201 | 108,657 | 107,831 | |
Total Assets | 617,270 | 617,270 | 578,302 | ||
Operating Segments | Process | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 140,473 | 124,483 | 273,958 | 239,507 | |
Operating Earnings | 43,620 | 31,057 | 84,185 | 58,545 | |
Total Assets | 583,002 | 583,002 | 564,539 | ||
Unallocated corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating Earnings | (11,323) | $ (5,822) | (21,762) | $ (16,524) | |
Total Assets | $ 737,799 | $ 737,799 | $ 543,330 |
Segment Reporting Information_2
Segment Reporting Information - Geographic (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 30, 2022 | |
Geographic Information [Line Items] | |||||
Revenues | $ 559,644 | $ 548,547 | $ 1,089,290 | $ 1,042,832 | |
Long-lived Assets | 680,040 | 680,040 | $ 607,609 | ||
United States | |||||
Geographic Information [Line Items] | |||||
Revenues | 301,953 | 296,009 | 590,942 | 551,091 | |
Long-lived Assets | 583,160 | 583,160 | 532,401 | ||
Other countries | |||||
Geographic Information [Line Items] | |||||
Revenues | 257,691 | $ 252,538 | 498,348 | $ 491,741 | |
Long-lived Assets | $ 96,880 | $ 96,880 | $ 75,208 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Earnings Per Share [Abstract] | ||||
Net earnings available to common shareholders | $ 134,268 | $ 117,378 | $ 263,434 | $ 218,221 |
Weighted average shares outstanding for basic earnings per share | 168,683 | 169,128 | 168,351 | 169,469 |
Dilutive effect of stock options computed using the treasury stock method and the average market price | 3,868 | 3,570 | 3,763 | 4,219 |
Weighted average shares outstanding for diluted earnings per share | 172,551 | 172,698 | 172,114 | 173,688 |
Basic earnings per share | $ 0.80 | $ 0.69 | $ 1.56 | $ 1.29 |
Diluted earnings per share | $ 0.78 | $ 0.68 | $ 1.53 | $ 1.26 |
Antidilutive securities excluded from the computation of diluted earnings per share | 1,868 | 1,632 | 2,206 | 1,625 |
Share-Based Awards - Options Ac
Share-Based Awards - Options Activity and Outstanding (Details) - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning (in shares) | 10,265 | |
Options granted (in shares) | 1,114 | |
Options exercised (in shares) | (1,093) | |
Options canceled (in shares) | (62) | |
Ending (in shares) | 10,224 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning (dollars per share) | $ 44.40 | |
Granted (dollars per share) | 71.45 | |
Exercised (dollars per share) | 30.74 | |
Canceled (dollars per share) | 64.80 | |
Ending (dollars per share) | $ 48.68 | |
Options exercisable (in shares) | 7,529 | 7,793 |
Weighted average exercise price of exercisable options (dollars per share) | $ 40.96 | $ 37.22 |
Share-Based Awards - Options Fa
Share-Based Awards - Options Fair Value Inputs (Details) - Stock Option - $ / shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Fair Value Assumptions and Methodology [Abstract] | ||
Expected life in years | 6 years 8 months 12 days | 7 years 3 months 18 days |
Interest rate | 4% | 1.90% |
Volatility | 26.30% | 25.50% |
Dividend yield | 1.30% | 1.20% |
Weighted average fair value per share (in dollars per share) | $ 21.76 | $ 19.06 |
Share-Based Awards - ESPP Fair
Share-Based Awards - ESPP Fair Value Inputs (Details) - Employee Stock Purchase Plan - $ / shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 1 year | 1 year |
Interest rate | 5.10% | 0.90% |
Volatility | 26.40% | 20.50% |
Dividend yield | 1.40% | 1.20% |
Weighted average fair value per share (in dollars per share) | $ 18.04 | $ 16.01 |
Share-Based Awards - Narrative
Share-Based Awards - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 18.4 | $ 12.9 |
Unrecognized compensation cost | $ 25.8 | |
Weighted average recognition period | 2 years 10 months 24 days | |
Employee Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock purchase plan shares issued | 323,000 | 319,000 |
Stock purchase plan discount from market value | 15% |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,467 | $ 1,964 | $ 2,931 | $ 4,134 |
Interest cost | 3,798 | 2,766 | 7,575 | 5,504 |
Expected return on assets | (3,980) | (4,777) | (7,955) | (9,579) |
Amortization and other | 415 | 1,419 | 855 | 2,495 |
Net periodic benefit cost | 1,700 | 1,372 | 3,406 | 2,554 |
Postretirement Medical | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 100 | 83 | 200 | 258 |
Interest cost | 210 | 195 | 420 | 420 |
Amortization | 90 | (2) | 180 | 173 |
Net periodic benefit cost | $ 400 | $ 276 | $ 800 | $ 851 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | $ (63,515) | $ (82,429) | $ (69,378) | $ (80,169) |
Other comprehensive income (loss) before reclassifications | 4,553 | (13,532) | 9,528 | (16,492) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 931 | 1,048 | 1,819 | 1,748 |
Ending Accumulated other comprehensive income (loss) | (58,031) | (94,913) | (58,031) | (94,913) |
Pension and Postretirement Medical | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | (38,846) | (59,407) | (39,734) | (60,107) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 931 | 1,048 | 1,819 | 1,748 |
Ending Accumulated other comprehensive income (loss) | (37,915) | (58,359) | (37,915) | (58,359) |
Cumulative Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Accumulated other comprehensive income (loss) | (24,669) | (23,022) | (29,644) | (20,062) |
Other comprehensive income (loss) before reclassifications | 4,553 | (13,532) | 9,528 | (16,492) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | 0 |
Ending Accumulated other comprehensive income (loss) | $ (20,116) | $ (36,554) | $ (20,116) | $ (36,554) |
Receivables and Credit Losses_2
Receivables and Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 30, 2022 | |
Credit Loss [Abstract] | |||||
Accounts Receivable, before Allowance for Credit Loss | $ 354,000 | $ 354,000 | $ 334,000 | ||
Other Receivables | 12,000 | 12,000 | $ 12,000 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning | 4,232 | $ 6,474 | 6,130 | $ 3,254 | |
Additions (reversals) charged to costs and expenses | (417) | (26) | (280) | 3,246 | |
Deductions from reserves | (449) | (542) | (2,269) | (575) | |
Other additions (deductions) | (1) | (269) | 58 | (236) | |
Balance, ending | $ 4,199 | $ 5,689 | $ 4,199 | $ 5,689 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Inventory, Net [Abstract] | ||
Finished products and components | $ 245,480 | $ 222,326 |
Products and components in various stages of completion | 138,264 | 138,957 |
Raw materials and purchased components | 227,972 | 248,636 |
Inventory gross | 611,716 | 609,919 |
Reduction to LIFO cost | (132,621) | (133,129) |
Total | $ 479,095 | $ 476,790 |
Intangible Assets - Other Intan
Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 30, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total Cost | $ 287,724 | $ 292,410 |
Total Foreign Currency Translation | (10,328) | (12,943) |
Finite Life | ||
Accumulated amortization | (146,307) | (141,960) |
Total Book Value | 131,089 | 137,507 |
Trade Names | ||
Indefinite Life | ||
Cost | 62,633 | 62,633 |
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (677) | (1,989) |
Book value | 61,956 | 60,644 |
Customer Relationships | ||
Finite Life | ||
Cost | 197,417 | 202,103 |
Accumulated amortization | (126,617) | (123,603) |
Foreign currency translation | (8,803) | (10,060) |
Book value | $ 61,997 | $ 68,440 |
Weighted average life in years | 13 years | 13 years |
Patents and Proprietary Technology | ||
Finite Life | ||
Cost | $ 26,374 | $ 26,374 |
Accumulated amortization | (19,245) | (18,027) |
Foreign currency translation | (848) | (894) |
Book value | $ 6,281 | $ 7,453 |
Weighted average life in years | 9 years | 10 years |
Trademarks, Trade Names and Other | ||
Finite Life | ||
Cost | $ 1,300 | $ 1,300 |
Accumulated amortization | (445) | (330) |
Foreign currency translation | 0 | 0 |
Book value | $ 855 | $ 970 |
Weighted average life in years | 6 years | 6 years |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remaining estimated amortization expense 2023 | $ 8,526 |
Estimated amortization expense 2024 | 16,448 |
Estimated amortization expense 2025 | 15,986 |
Estimated amortization expense 2026 | 9,105 |
Estimated amortization expense 2027 | 6,443 |
Estimated amortization expense thereafter | $ 12,625 |
Intangible Assets - Goodwill Ro
Intangible Assets - Goodwill Rollforward (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 368,171 |
Additions, adjustments from business acquisitions | 0 |
Foreign currency translation | 3,709 |
Ending balance | 371,880 |
Industrial | |
Goodwill [Roll Forward] | |
Beginning balance | 134,771 |
Additions, adjustments from business acquisitions | 0 |
Foreign currency translation | 2,646 |
Ending balance | 137,417 |
Process | |
Goodwill [Roll Forward] | |
Beginning balance | 156,366 |
Additions, adjustments from business acquisitions | 0 |
Foreign currency translation | 787 |
Ending balance | 157,153 |
Contractor | |
Goodwill [Roll Forward] | |
Beginning balance | 77,034 |
Additions, adjustments from business acquisitions | 0 |
Foreign currency translation | 276 |
Ending balance | $ 77,310 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 4.4 | $ 4.6 | $ 8.9 | $ 9.4 |
Other Current Liabilities - Com
Other Current Liabilities - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Other Current Liabilities Details [Abstract] | ||
Accrued self-insurance retentions | $ 9,203 | $ 9,338 |
Accrued warranty and service liabilities | 15,413 | 14,674 |
Accrued trade promotions | 11,434 | 13,799 |
Payable for employee stock purchases | 7,515 | 16,497 |
Customer advances and deferred revenue | 58,226 | 50,747 |
Income taxes payable | 19,369 | 15,987 |
Taxes Payable, Current | 9,337 | 9,614 |
Right of return refund liability | 18,257 | 18,449 |
Operating lease liability, current | 9,126 | 9,555 |
Other | 30,977 | 32,133 |
Total | $ 188,857 | $ 190,793 |
Other Current Liabilities - Acc
Other Current Liabilities - Accrued Warranty Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Activity In Accrued Warranty And Service Liabilities Abstract | |
Balance, beginning of year | $ 14,674 |
Charged to expense | 5,229 |
Margin on parts sales reversed | 2,179 |
Reductions for claims settled | (6,669) |
Balance, end of period | $ 15,413 |
Other Current Liabilities - Nar
Other Current Liabilities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Accrued Liabilities, Current [Abstract] | ||||
Contract with Customer, Liability, Revenue Recognized | $ 16 | $ 18.3 | $ 36.6 | $ 40.8 |
Debt (Details)
Debt (Details) - Revolving Credit Facility - Committed Facility - Line of Credit - USD ($) $ in Millions | Jun. 08, 2023 | Jun. 07, 2023 |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750 | $ 500 |
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 375 | 200 |
Line of Credit Facility, Current Borrowing Capacity | $ 375 | $ 250 |
Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | 0% |
Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | 1% |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.875% | 0.75% |
Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.875% | 1.75% |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Jul. 26, 2023 USD ($) |
Subsequent Event [Line Items] | |
Debt Instrument, Repurchased Face Amount | $ 75 |
Debt Instrument, Fee Amount | $ 0.7 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Assets | ||
Total assets at fair value | $ 21,175 | $ 19,192 |
Liabilities | ||
Total liabilities at fair value | 15,959 | 21,276 |
Long term debt, carrying amount | 75,000 | 75,000 |
Long term debt, fair value | 75,000 | 75,000 |
Level 2 | ||
Assets | ||
Cash surrender value of life insurance | 21,015 | 19,192 |
Forward exchange contracts | 160 | 0 |
Liabilities | ||
Deferred compensation | 5,984 | 5,842 |
Forward exchange contracts | 0 | 520 |
Level 3 | ||
Liabilities | ||
Contingent consideration | $ 9,975 | $ 14,914 |