Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 26, 2014 | Feb. 03, 2015 | Jun. 27, 2014 | |
Document Information [Abstract] | |||
Document type | 10-K | ||
Document period end date | 26-Dec-14 | ||
Amendment flag | FALSE | ||
Entity Information [Abstract] | |||
Entity registrant name | Graco Inc. | ||
Entity central index key | 42888 | ||
Entity current reporting status | Yes | ||
Entity voluntary filers | No | ||
Current fiscal year end date | -14 | ||
Entity filer category | Large Accelerated Filer | ||
Entity well known seasoned issuer | Yes | ||
Entity common stock shares outstanding | 58,991,622 | ||
Entity public float | $4,615,089,158 | ||
Document fiscal year focus | 2014 | ||
Document fiscal period focus | FY | ||
Trading symbol | GGG |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 26, 2014 | Dec. 27, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $23,656 | $19,756 |
Accounts receivable, less allowances of $8,100 and $6,300 | 214,944 | 183,293 |
Inventories | 159,797 | 133,787 |
Deferred Tax Assets Net Current | 19,969 | 18,827 |
Investment in businesses held separate | 421,767 | 422,297 |
Other current assets | 19,374 | 14,633 |
Total current assets | 859,507 | 792,593 |
Property, Plant and Equipment, net | 161,230 | 151,717 |
Goodwill | 292,574 | 189,967 |
Other Intangible Assets, net | 176,278 | 147,940 |
Deferred Income Taxes | 28,982 | 20,366 |
Other Assets | 26,207 | 24,645 |
Total Assets | 1,544,778 | 1,327,228 |
Current Liabilities | ||
Notes payable to banks | 5,016 | 9,584 |
Trade accounts payable | 39,306 | 34,282 |
Salaries and incentives | 40,775 | 38,939 |
Dividends payable | 17,790 | 16,881 |
Other current liabilities | 71,593 | 69,167 |
Total current liabilities | 174,480 | 168,853 |
Long-term Debt | 615,000 | 408,370 |
Retirement Benefits and Deferred Compensation | 136,812 | 94,705 |
Deferred Income Taxes | 22,454 | 20,935 |
Commitments and Contingencies (Note K) | ||
Shareholders' Equity | ||
Common stock, $1 par value; 97,000,000 shares authorized; | 59,199 | 61,003 |
Additional paid-in-capital | 384,704 | 347,058 |
Retained earnings | 252,865 | 272,653 |
Accumulated other comprehensive income (loss) | -100,736 | -46,349 |
Total shareholders' equity | 596,032 | 634,365 |
Total Liabilities and Shareholders' Equity | $1,544,778 | $1,327,228 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $) | Dec. 26, 2014 | Dec. 27, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Receivables allowances | $8,100 | $6,300 |
Common stock, par value | $1 | $1 |
Common shares authorized | 97,000,000 | 97,000,000 |
Common shares outstanding | 59,198,527 | 61,003,203 |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
CONSOLIDATED STATEMENTS OF EARNINGS | |||
Net Sales | $1,221,130 | $1,104,024 | $1,012,456 |
Cost of products sold | 554,394 | 496,569 | 461,926 |
Gross Profit | 666,736 | 607,455 | 550,530 |
Product development | 54,246 | 51,428 | 48,921 |
Selling, marketing and distribution | 194,751 | 177,853 | 163,523 |
General and administrative | 108,814 | 98,405 | 113,409 |
Operating Earnings | 308,925 | 279,769 | 224,677 |
Interest expense | 18,733 | 18,147 | 19,273 |
Other expense (income), net | -24,881 | -27,200 | -11,922 |
Earnings Before Income Taxes | 315,073 | 288,822 | 217,326 |
Income taxes | 89,500 | 78,000 | 68,200 |
Net Earnings | $225,573 | $210,822 | $149,126 |
Basic Net Earnings per Common Share | $3.75 | $3.44 | $2.47 |
Diluted Net Earnings per Common Share | $3.65 | $3.36 | $2.42 |
Cash Dividends Declared per Common Share | $1.13 | $1.03 | $0.93 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net Earnings | $225,573 | $210,822 | $149,126 |
Other comprehensive income (loss) | |||
Cumulative translation adjustment | -27,935 | 7,812 | -3,206 |
Pension and postretirement medical liability adjustment | -39,164 | 46,955 | -6,171 |
Income taxes | |||
Pension and postretirement medical liability adjustment | 12,712 | -17,371 | 2,113 |
Other comprehensive income (loss) | -54,387 | 37,396 | -7,264 |
Comprehensive Income | $171,186 | $248,218 | $141,862 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Cash Flows From Operating Activities | |||
Net Earnings | $225,573 | $210,822 | $149,126 |
Adjustments to reconcile net earnings to net cash provided by operating activities | |||
Depreciation and amortization | 35,515 | 37,316 | 38,762 |
Deferred income taxes | 329 | -1,715 | -10,786 |
Share-based compensation | 17,249 | 16,545 | 12,409 |
Excess tax benefit related to share-based payment arrangements | -6,634 | -8,347 | -4,217 |
Change in | |||
Accounts receivable | -26,557 | -11,880 | -2,752 |
Inventories | -15,079 | -10,186 | 5,941 |
Trade accounts payable | 450 | 2,436 | -952 |
Salaries and incentives | 1,520 | 2,022 | -4,251 |
Retirement benefits and deferred compensation | 5,052 | 3,629 | 3,209 |
Other accrued liabilities | 6,151 | 5,556 | 3,288 |
Other | -2,314 | -3,143 | -95 |
Net cash from operating activities | 241,255 | 243,055 | 189,682 |
Cash Flows From Investing Activities | |||
Property, plant and equipment additions | -30,636 | -23,319 | -18,234 |
Acquisition of businesses, net of cash acquired | -185,462 | -11,560 | -240,068 |
Investment in businesses held separate | 530 | 4,516 | -426,813 |
Proceeds from sale of assets | 0 | 1,600 | 0 |
Other | -1,163 | -2,475 | -9,405 |
Net cash used in investing activities | -216,731 | -31,238 | -694,520 |
Cash Flows From Financing Activities | |||
Borrowings (payments) on short-term lines of credit, net | -4,459 | 1,280 | -619 |
Borrowings on notes and long-term line of credit | 717,845 | 419,905 | 649,325 |
Payments on long-term line of credit | -511,215 | -568,122 | -392,845 |
Payments of debt issuance costs | -890 | 0 | -1,921 |
Excess tax benefit related to share-based payment arrangements | 6,634 | 8,347 | 4,217 |
Common stock issued | 30,199 | 41,664 | 30,194 |
Common stock repurchased | -195,326 | -67,827 | -1,378 |
Cash dividends paid | -66,362 | -61,139 | -54,302 |
Net cash from (used in) financing activities | -23,574 | -225,892 | 232,671 |
Effect of exchange rate changes on cash | 2,950 | 2,711 | 137 |
Net increase (decrease) in cash and cash equivalents | 3,900 | -11,364 | -272,030 |
Cash and Cash Equivalents | |||
Beginning of year | 19,756 | 31,120 | 303,150 |
End of year | $23,656 | $19,756 | $31,120 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands | |||||
Balance at Dec. 30, 2011 | $322,740 | $59,747 | $242,007 | $97,467 | ($76,481) |
Shares issued | 30,194 | 1,048 | 29,146 | 0 | 0 |
Shares repurchased | -1,378 | -28 | -116 | -1,234 | 0 |
Stock compensation cost | 11,941 | 0 | 11,941 | 0 | 0 |
Tax benefit related to stock options exercised | 4,817 | 0 | 4,817 | 0 | 0 |
Net Earnings | 149,126 | 0 | 0 | 149,126 | 0 |
Dividends declared | -56,062 | 0 | 0 | -56,062 | 0 |
Other comprehensive income (loss) | -7,264 | 0 | 0 | 0 | -7,264 |
Balance at Dec. 28, 2012 | 454,114 | 60,767 | 287,795 | 189,297 | -83,745 |
Shares issued | 42,342 | 1,196 | 41,146 | 0 | 0 |
Shares repurchased | -70,157 | -960 | -4,545 | -64,652 | 0 |
Stock compensation cost | 14,693 | 0 | 14,693 | 0 | 0 |
Tax benefit related to stock options exercised | 8,647 | 0 | 8,647 | 0 | 0 |
Restricted stock issued | -678 | 0 | -678 | 0 | 0 |
Net Earnings | 210,822 | 0 | 0 | 210,822 | 0 |
Dividends declared | -62,814 | 0 | 0 | -62,814 | 0 |
Other comprehensive income (loss) | 37,396 | 0 | 0 | 0 | 37,396 |
Balance at Dec. 27, 2013 | 634,365 | 61,003 | 347,058 | 272,653 | -46,349 |
Shares issued | 30,199 | 789 | 29,410 | 0 | 0 |
Shares repurchased | -195,434 | -2,593 | -14,751 | -178,090 | 0 |
Stock compensation cost | 16,253 | 0 | 16,253 | 0 | 0 |
Tax benefit related to stock options exercised | 6,734 | 0 | 6,734 | 0 | 0 |
Restricted stock issued | 0 | 0 | 0 | 0 | 0 |
Net Earnings | 225,573 | 0 | 0 | 225,573 | 0 |
Dividends declared | -67,271 | 0 | 0 | -67,271 | 0 |
Other comprehensive income (loss) | -54,387 | 0 | 0 | 0 | -54,387 |
Balance at Dec. 26, 2014 | $596,032 | $59,199 | $384,704 | $252,865 | ($100,736) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Dec. 26, 2014 | ||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||
Summary of Significant Accounting Policies [Text Block] | A. Summary of Significant Accounting Policies | |||||||||||||||
Fiscal Year. The fiscal year of Graco Inc. and Subsidiaries (the “Company”) is 52 or 53 weeks, ending on the last Friday in December. The years ended December 26, 2014, December 27, 2013 and December 28, 2012, 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 26, 2014, all subsidiaries are 100 percent owned. | ||||||||||||||||
As more fully described in Note L, the Company purchased the Powder Finishing and Liquid Finishing businesses in April 2012. The FTC issued an order requiring the Company to hold the Liquid Finishing businesses separate from the rest of the Company's businesses. Under terms of the hold separate order, the Company does not have the power to direct the activities of the Liquid Finishing businesses that most significantly impact the economic performance of those businesses. Therefore, the Company has determined that the Liquid Finishing businesses are variable interest entities for which the Company is not the primary beneficiary, and that they should not be consolidated. Furthermore, the Company does not have a controlling interest in the Liquid Finishing businesses, nor is it able to exert significant influence over the Liquid Finishing businesses. Consequently, the Company's investment in the shares of the Liquid Finishing businesses, totaling $422 million, has been reflected as a cost-method investment on the Consolidated Balance Sheet as of December 26, 2014, and their results of operations have not been consolidated with those of 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 (income), net. | ||||||||||||||||
Accounting Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||
Fair Value Measurements. The three levels of inputs in the fair value measurement hierarchy are as follows: | ||||||||||||||||
Level 1 – based on quoted prices in active markets for identical assets | ||||||||||||||||
Level 2 – based on significant observable inputs | ||||||||||||||||
Level 3 – based on significant unobservable inputs | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): | ||||||||||||||||
Level | 2014 | 2013 | ||||||||||||||
Assets | ||||||||||||||||
Cash surrender value of life insurance | 2 | $ | 13,187 | $ | 12,611 | |||||||||||
Forward exchange contracts | 2 | 280 | 291 | |||||||||||||
Total assets at fair value | $ | 13,467 | $ | 12,902 | ||||||||||||
Liabilities | ||||||||||||||||
Deferred compensation | 2 | $ | 2,676 | $ | 2,296 | |||||||||||
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. | ||||||||||||||||
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 $207 million in 2014 and $178 million in 2013. Other receivables totaled $8 million in 2014 and $5 million in 2013. | ||||||||||||||||
Inventory Valuation. Inventories are stated at the lower of cost or market. 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): | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Prepaid income taxes | $ | 10,849 | $ | 7,894 | ||||||||||||
Prepaid expenses and other | 8,525 | 6,739 | ||||||||||||||
Total | $ | 19,374 | $ | 14,633 | ||||||||||||
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 | Contractor | Lubrication | Total | |||||||||||||
26-Dec-14 | ||||||||||||||||
Beginning balance | $ | 157,738 | $ | 12,732 | $ | 19,497 | $ | 189,967 | ||||||||
Additions from business acquisitions | 114,331 | - | - | 114,331 | ||||||||||||
Foreign currency translation | -11,724 | - | - | -11,724 | ||||||||||||
Ending balance | $ | 260,345 | $ | 12,732 | $ | 19,497 | $ | 292,574 | ||||||||
27-Dec-13 | ||||||||||||||||
Beginning balance | $ | 148,999 | $ | 12,732 | $ | 19,497 | $ | 181,228 | ||||||||
Additions from business acquisitions | 6,626 | - | - | 6,626 | ||||||||||||
Foreign currency translation | 2,998 | - | - | 2,998 | ||||||||||||
Other | -885 | - | - | -885 | ||||||||||||
Ending balance | $ | 157,738 | $ | 12,732 | $ | 19,497 | $ | 189,967 | ||||||||
Components of other intangible assets were (dollars in thousands): | ||||||||||||||||
Estimated | Foreign | |||||||||||||||
Life | Accumulated | Currency | Book | |||||||||||||
(years) | Cost | Amortization | Translation | Value | ||||||||||||
26-Dec-14 | ||||||||||||||||
Customer relationships | 14-Mar | $ | 143,144 | $ | -21,948 | $ | -7,334 | $ | 113,862 | |||||||
Patents, proprietary technology | ||||||||||||||||
and product documentation | 11-Mar | 18,268 | -7,126 | -655 | 10,487 | |||||||||||
Trademarks, trade names and other | 5 | 175 | -44 | - | 131 | |||||||||||
161,587 | -29,118 | -7,989 | 124,480 | |||||||||||||
Not Subject to Amortization | ||||||||||||||||
Brand names | 55,265 | - | -3,467 | 51,798 | ||||||||||||
Total | $ | 216,852 | $ | -29,118 | $ | -11,456 | $ | 176,278 | ||||||||
27-Dec-13 | ||||||||||||||||
Customer relationships | 14-Mar | $ | 121,205 | $ | -26,377 | $ | 1,458 | $ | 96,286 | |||||||
Patents, proprietary technology | ||||||||||||||||
and product documentation | 11-Mar | 16,125 | -5,869 | 118 | 10,374 | |||||||||||
Trademarks, trade names and other | 5 | 175 | -9 | - | 166 | |||||||||||
137,505 | -32,255 | 1,576 | 106,826 | |||||||||||||
Not Subject to Amortization | ||||||||||||||||
Brand names | 40,400 | - | 714 | 41,114 | ||||||||||||
Total | $ | 177,905 | $ | -32,255 | $ | 2,290 | $ | 147,940 | ||||||||
Amortization of intangibles was $11.6 million in 2014, $12.5 million in 2013 and $15.0 million in 2012. Estimated future annual amortization is as follows (excluding amounts related to businesses acquired subsequent to the end of 2014): $12.4 million in 2015, $12.1 million in 2016, $11.8 million in 2017, $11.7 million in 2018, $11.6 million in 2019 and $64.9 million thereafter. | ||||||||||||||||
Other Assets. Components of other assets were (in thousands): | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Cash surrender value of life insurance | $ | 13,187 | $ | 12,611 | ||||||||||||
Capitalized software | 3,596 | 3,448 | ||||||||||||||
Equity method investment | 5,859 | 5,569 | ||||||||||||||
Deposits and other | 3,565 | 3,017 | ||||||||||||||
Total | $ | 26,207 | $ | 24,645 | ||||||||||||
The Company paid $1.5 million in 2013 for contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans. These insurance contracts will be used to fund the non-qualified pension and deferred compensation arrangements. The insurance contracts are held in a trust and are available to general creditors in the event of the Company's insolvency. Changes in cash surrender value are recorded in operating expense and were not significant in 2014 and 2012. In 2013, increases in cash surrender value totaled $1.6 million and were offset by expenses related to the non-qualified pension and deferred compensation plans funded by the insurance contracts. | ||||||||||||||||
Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. | ||||||||||||||||
Impairment of Long-Lived Assets. The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. Goodwill and other intangible assets not subject to amortization are also reviewed for impairment annually in the fourth quarter. There were no write-downs of long-lived assets in the periods presented. | ||||||||||||||||
Other Current Liabilities. Components of other current liabilities were (in thousands): | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Accrued self-insurance retentions | $ | 7,089 | $ | 6,381 | ||||||||||||
Accrued warranty and service liabilities | 7,609 | 7,771 | ||||||||||||||
Accrued trade promotions | 7,697 | 7,245 | ||||||||||||||
Payable for employee stock purchases | 9,126 | 7,908 | ||||||||||||||
Customer advances and deferred revenue | 8,918 | 11,693 | ||||||||||||||
Income taxes payable | 5,997 | 4,561 | ||||||||||||||
Other | 25,157 | 23,608 | ||||||||||||||
Total | $ | 71,593 | $ | 69,167 | ||||||||||||
Self-Insurance. The Company is self-insured for certain losses and costs relating to product liability, workers' compensation and employee medical benefits claims. The Company has purchased stop-loss coverage in order to limit its exposure to significant claims. Accrued self-insured retentions are based on claims filed and estimates of claims incurred but not reported. | ||||||||||||||||
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): | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Balance, beginning of year | $ | 7,771 | $ | 7,943 | ||||||||||||
Assumed in business acquisition | 12 | - | ||||||||||||||
Charged to expense | 6,069 | 6,119 | ||||||||||||||
Margin on parts sales reversed | 1,920 | 3,819 | ||||||||||||||
Reductions for claims settled | -8,163 | -10,110 | ||||||||||||||
Balance, end of year | $ | 7,609 | $ | 7,771 | ||||||||||||
Revenue Recognition. Sales are recognized when revenue is realized or realizable and has been earned. The Company's policy is to recognize revenue when risk and title passes 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. Rights of return are typically contractually limited, amounts are estimable, and the Company records provisions for anticipated returns and warranty claims at the time revenue is recognized. Historically, sales returns have been approximately 2 percent of sales. 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. From time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. In such cases, provisions for estimated returns are recorded as a reduction of net sales. | ||||||||||||||||
Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include cooperative advertising arrangements, 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. 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. Rebates are accrued based on the program rates and progress toward the estimated annual sales amount and sales growth, and are recorded as a reduction of sales (cash, trade credit) or cost of products sold (free goods). 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. | ||||||||||||||||
Shipping and Handling. Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold in the accompanying Consolidated Statements of Income. Amounts billed to customers for shipping and handling are included in net sales. | ||||||||||||||||
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 26, 2014 totaled $22 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 interest rate volatility and net monetary positions, including reference to market prices and financial models that incorporate relevant market assumptions. The fair market value and balance sheet classification of such instruments follows (in thousands): | ||||||||||||||||
Balance Sheet Classification | 2014 | 2013 | ||||||||||||||
Gain (loss) on foreign currency forward contracts | ||||||||||||||||
Gains | $ | 280 | $ | 306 | ||||||||||||
Losses | - | -15 | ||||||||||||||
Net | Accounts receivable | $ | 280 | $ | 291 | |||||||||||
Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board issued a final standard on revenue from contracts with customers. The new standard sets forth a single comprehensive model for recognizing and reporting revenue. The new standard is effective for the Company in its fiscal year 2017, and permits the use of either a retrospective or a cumulative effect transition method. The Company is evaluating the effect of the new standard on its consolidated financial statements and related disclosures, and has not yet selected a transition method. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||
Dec. 26, 2014 | |||||||||||
Segment Information [Abstract] | |||||||||||
Segment Information | B. Segment Information | ||||||||||
The Company has three reportable segments: Industrial (which aggregates six operating segments), Contractor and Lubrication. The Industrial segment markets equipment and pre-engineered packages 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, process, rail, marine, aerospace, farm, construction, bus, recreational vehicles, oil and natural gas, and various other industries. The Contractor segment markets sprayers for architectural coatings for painting, corrosion control, texture, and line striping. The Lubrication segment markets products to move and dispense lubricants for fast oil change facilities, service garages, fleet service centers, automobile dealerships, the mining industry and industrial lubrication applications. All segments market parts and accessories for their products. | |||||||||||
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. | |||||||||||
Reportable Segments (in thousands) | 2014 | 2013 | 2012 | ||||||||
Net Sales | |||||||||||
Industrial | $ | 727,389 | $ | 652,344 | $ | 603,398 | |||||
Contractor | 375,574 | 342,546 | 298,811 | ||||||||
Lubrication | 118,167 | 109,134 | 110,247 | ||||||||
Total | $ | 1,221,130 | $ | 1,104,024 | $ | 1,012,456 | |||||
Operating Earnings | |||||||||||
Industrial | $ | 225,337 | $ | 211,265 | $ | 186,129 | |||||
Contractor | 81,892 | 72,245 | 54,310 | ||||||||
Lubrication | 26,403 | 22,512 | 22,535 | ||||||||
Unallocated corporate (expense) | -24,707 | -26,253 | -38,297 | ||||||||
Total | $ | 308,925 | $ | 279,769 | $ | 224,677 | |||||
Assets | |||||||||||
Industrial | $ | 770,623 | $ | 591,135 | |||||||
Contractor | 176,757 | 152,300 | |||||||||
Lubrication | 83,148 | 82,503 | |||||||||
Unallocated corporate | 514,250 | 501,290 | |||||||||
Total | $ | 1,544,778 | $ | 1,327,228 | |||||||
Unallocated corporate (expense) is not included in management's measurement of segment performance and includes such items as stock compensation, divestiture and certain acquisition transaction costs, bad debt expense, charitable contributions, certain portions of pension expense and in 2014, central warehouse startup expenses. Unallocated assets include cash, allowances and valuation reserves, deferred income taxes, certain capital items and other assets. | |||||||||||
Geographic Information (in thousands) | 2014 | 2013 | 2012 | ||||||||
Net Sales (based on customer location) | |||||||||||
United States | $ | 577,359 | $ | 498,478 | $ | 440,757 | |||||
Other countries | 643,771 | 605,546 | 571,699 | ||||||||
Total | $ | 1,221,130 | $ | 1,104,024 | $ | 1,012,456 | |||||
Long-lived Assets | |||||||||||
United States | $ | 131,131 | $ | 120,262 | |||||||
Other countries | 30,099 | 31,455 | |||||||||
Total | $ | 161,230 | $ | 151,717 | |||||||
Sales to Major Customers | |||||||||||
There were no customers that accounted for 10 percent or more of consolidated sales in 2014, 2013 or 2012. |
Inventories
Inventories | 12 Months Ended | |||||
Dec. 26, 2014 | ||||||
Inventories [Abstract] | ||||||
Inventories | C. Inventories | |||||
Major components of inventories were as follows (in thousands): | ||||||
2014 | 2013 | |||||
Finished products and components | $ | 87,384 | $ | 65,963 | ||
Products and components in various stages of completion | 47,682 | 41,458 | ||||
Raw materials and purchased components | 69,212 | 69,051 | ||||
204,278 | 176,472 | |||||
Reduction to LIFO cost | -44,481 | -42,685 | ||||
Total | $ | 159,797 | $ | 133,787 | ||
Inventories valued under the LIFO method were $84.0 million in 2014 and $76.9 million in 2013. All other inventory was valued on the FIFO method. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||
Dec. 26, 2014 | ||||||
Property Plant and Equipment [Abstract] | ||||||
Property Plant and Equipment | D. Property, Plant and Equipment | |||||
Property, plant and equipment were as follows (in thousands): | ||||||
2014 | 2013 | |||||
Land and improvements | $ | 16,311 | $ | 16,506 | ||
Buildings and improvements | 123,126 | 118,460 | ||||
Manufacturing equipment | 242,978 | 222,810 | ||||
Office, warehouse and automotive equipment | 39,219 | 35,887 | ||||
Additions in progress | 12,117 | 14,224 | ||||
Total property, plant and equipment | 433,751 | 407,887 | ||||
Accumulated depreciation | -272,521 | -256,170 | ||||
Net property, plant and equipment | $ | 161,230 | $ | 151,717 | ||
Depreciation expense was $24.1 million in 2014, $23.4 million in 2013 and $22.2 million in 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 26, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Income Taxes | E. Income Taxes | ||||||||||
Earnings before income tax expense consist of (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 266,627 | $ | 238,928 | $ | 184,132 | |||||
Foreign | 48,446 | 49,894 | 33,194 | ||||||||
Total | $ | 315,073 | $ | 288,822 | $ | 217,326 | |||||
Income tax expense consists of (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current | |||||||||||
Domestic | |||||||||||
Federal | $ | 73,584 | $ | 64,753 | $ | 61,989 | |||||
State and local | 2,775 | 2,470 | 5,180 | ||||||||
Foreign | 12,263 | 11,569 | 11,218 | ||||||||
88,622 | 78,792 | 78,387 | |||||||||
Deferred | |||||||||||
Domestic | 2,497 | -553 | -5,431 | ||||||||
Foreign | -1,619 | -239 | -4,756 | ||||||||
878 | -792 | -10,187 | |||||||||
Total | $ | 89,500 | $ | 78,000 | $ | 68,200 | |||||
Income taxes paid were $92.1 million, $78.0 million and $71.7 million in 2014, 2013 and 2012. | |||||||||||
A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Statutory tax rate | 35 | % | 35 | % | 35 | % | |||||
Tax effect of international operations | -1 | -1 | -1 | ||||||||
State taxes, net of federal effect | 1 | 1 | 1 | ||||||||
U.S. general business tax credits | -1 | -2 | - | ||||||||
Domestic production deduction | -3 | -3 | -2 | ||||||||
Dividends from Liquid Finishing | -3 | -3 | -2 | ||||||||
Effective tax rate | 28 | % | 27 | % | 31 | % | |||||
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 are as follows (in thousands): | |||||||||||
2014 | 2013 | ||||||||||
Inventory valuations | $ | 9,163 | $ | 8,825 | |||||||
Self-insurance retention accruals | 2,098 | 1,887 | |||||||||
Warranty reserves | 2,074 | 2,089 | |||||||||
Vacation accruals | 3,023 | 2,740 | |||||||||
Bad debt reserves | 2,409 | 1,961 | |||||||||
Other | 1,202 | 1,325 | |||||||||
Deferred income taxes, current | 19,969 | 18,827 | |||||||||
Included in other current liabilities | -1,743 | -1,095 | |||||||||
Total Current | 18,226 | 17,732 | |||||||||
Unremitted earnings of consolidated foreign subsidiaries | -7,316 | -6,316 | |||||||||
Excess of tax over book depreciation | -50,664 | -42,322 | |||||||||
Pension liability | 35,247 | 20,798 | |||||||||
Postretirement medical | 7,743 | 8,097 | |||||||||
Acquisition costs | 3,369 | 3,644 | |||||||||
Stock compensation | 16,657 | 14,401 | |||||||||
Deferred compensation | 1,350 | 1,193 | |||||||||
Other | 142 | -64 | |||||||||
Total Non-current | 6,528 | -569 | |||||||||
Net deferred tax assets | $ | 24,754 | $ | 17,163 | |||||||
Total deferred tax assets were $95.3 million and $78.6 million, and total deferred tax liabilities were $70.6 million and $61.4 million on December 26, 2014 and December 27, 2013. The difference between the deferred income tax provision and the change in net deferred income taxes is due to the change in other comprehensive income (loss) items and the impact of acquisitions. | |||||||||||
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 2008. | |||||||||||
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. 26, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Debt | F. Debt | |||||||||||||
A summary of debt follows (dollars in thousands): | ||||||||||||||
Average | ||||||||||||||
Interest Rate | ||||||||||||||
December 26, | ||||||||||||||
2014 | Maturity | 2014 | 2013 | |||||||||||
Private placement unsecured fixed-rate notes | ||||||||||||||
Series A | 4 | % | Mar-18 | $ | 75,000 | $ | 75,000 | |||||||
Series B | 5.01 | % | Mar-23 | 75,000 | 75,000 | |||||||||
Series C | 4.88 | % | Jan-20 | 75,000 | 75,000 | |||||||||
Series D | 5.35 | % | Jul-26 | 75,000 | 75,000 | |||||||||
Unsecured revolving credit facility | 1.28 | % | Jun-19 | 315,000 | 108,370 | |||||||||
Notes payable to banks | 0.85 | % | 2015 | 5,016 | 9,584 | |||||||||
Total debt, including current portion | $ | 620,016 | $ | 417,954 | ||||||||||
The estimated fair value of debt with fixed interest rates was $330 million on December 26, 2014 and $320 million on December 27, 2013. 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 June 26, 2014, the Company executed an amendment to its revolving credit agreement, extending the expiration date to June 26, 2019. The amended agreement with a syndicate of lenders provides up to $500 million of committed credit, available for general corporate purposes, working capital needs, share repurchases and acquisitions. The Company may borrow up to $50 million under the swingline portion of the facility for daily working capital needs. | ||||||||||||||
Under terms of the amended revolving credit agreement, loans denominated in U.S. dollars bear interest, at the Company's option, at either a base rate or a LIBOR-based rate. Loans denominated in currencies other than U.S. dollars bear interest at a LIBOR-based rate. The base rate is an annual rate equal to a margin ranging from zero percent to 0.875 percent, depending on the Company's cash flow leverage ratio (debt to earnings before interest, taxes, depreciation, amortization and extraordinary non-operating or non-cash charges and expenses) plus the highest of (i) the bank's prime rate, (ii) the federal funds rate plus 0.5 percent or (iii) one-month LIBOR plus 1.5 percent. In general, LIBOR-based loans bear interest at LIBOR plus 1 percent to 1.875 percent, depending on the Company's cash flow leverage ratio. The Company is also required to pay a fee on the undrawn amount of the loan commitment at an annual rate ranging from 0.15 percent to 0.30 percent, depending on the Company's cash flow leverage ratio. | ||||||||||||||
On December 26, 2014, the Company had $550 million in lines of credit, including the $500 million in committed credit facilities described above and $50 million with foreign banks. The unused portion of committed credit lines was $200 million as of December 26, 2014. In addition, the Company has unused, uncommitted lines of credit with foreign banks totaling $31 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 of up to 0.15 percent per annum 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. | ||||||||||||||
Annual maturities of debt are as follows (in thousands): | ||||||||||||||
2015 | $ | 5,016 | ||||||||||||
2016 | - | |||||||||||||
2017 | - | |||||||||||||
2018 | 75,000 | |||||||||||||
2019 | 315,000 | |||||||||||||
Thereafter | 225,000 | |||||||||||||
Interest paid on debt during 2014, 2013 and 2012 was $18.6 million, $18.3 million and $19.0 million. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||
Dec. 26, 2014 | ||||||||||
Shareholders' Equity Note [Abstract] | ||||||||||
Shareholders' Equity | G. Shareholders' Equity | |||||||||
At December 26, 2014, 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 Post- | Cumulative | |||||||||
retirement | Translation | |||||||||
Medical | Adjustment | Total | ||||||||
2012 | ||||||||||
Beginning balance | $ | -75,658 | $ | -823 | $ | -76,481 | ||||
Other comprehensive income (loss) | ||||||||||
before reclassifications | -10,993 | -3,206 | -14,199 | |||||||
Amounts reclassified from accumulated | ||||||||||
other comprehensive income | 6,935 | - | 6,935 | |||||||
Ending balance | $ | -79,716 | $ | -4,029 | $ | -83,745 | ||||
2013 | ||||||||||
Beginning balance | $ | -79,716 | $ | -4,029 | $ | -83,745 | ||||
Other comprehensive income (loss) | ||||||||||
before reclassifications | 23,103 | 7,812 | 30,915 | |||||||
Amounts reclassified from accumulated | ||||||||||
other comprehensive income | 6,481 | - | 6,481 | |||||||
Ending balance | $ | -50,132 | $ | 3,783 | $ | -46,349 | ||||
2014 | ||||||||||
Beginning balance | $ | -50,132 | $ | 3,783 | $ | -46,349 | ||||
Other comprehensive income (loss) | ||||||||||
before reclassifications | -29,563 | -27,935 | -57,498 | |||||||
Amounts reclassified from accumulated | ||||||||||
other comprehensive income | 3,111 | - | 3,111 | |||||||
Ending balance | $ | -76,584 | $ | -24,152 | $ | -100,736 | ||||
Amounts related to pension and postretirement medical adjustments are reclassified to pension cost, which is allocated to cost of products sold and operating expenses based on salaries and wages, approximately as follows (in thousands): | ||||||||||
2014 | 2013 | 2012 | ||||||||
Cost of products sold | $ | 1,701 | $ | 3,635 | $ | 3,900 | ||||
Product development | 714 | 1,699 | 1,728 | |||||||
Selling, marketing and distribution | 1,371 | 2,828 | 2,886 | |||||||
General and administrative | 820 | 2,124 | 2,032 | |||||||
Total before tax | $ | 4,606 | $ | 10,286 | $ | 10,546 | ||||
Income tax (benefit) | -1,495 | -3,805 | -3,611 | |||||||
Total after tax | $ | 3,111 | $ | 6,481 | $ | 6,935 |
ShareBased_Awards
Share-Based Awards | 12 Months Ended | ||||||||||||
Dec. 26, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Share-Based Awards, Purchase Plans and Compensation Cost | H. Share-Based Awards, Purchase Plans and Compensation Cost | ||||||||||||
Stock Option and Award Plan. The Company has a stock incentive plan under which it grants stock options and share awards to directors, officers and other employees. Option price is the market price on the date of grant. Options become exercisable at such time, generally over three or four years, and in such installments as set by the Company, and expire ten years from the date of grant. | |||||||||||||
Restricted share awards have been made to certain key employees under the plan. The market value of restricted stock at the date of grant is charged to operations over the vesting period. Compensation cost charged to operations for restricted share awards was $0.3 million in 2014, $0.5 million in 2013 and $0.4 million in 2012. Individual nonemployee directors of the Company may elect to receive, either currently or deferred, all or part of their annual retainer, and/or payment for attendance at Board or Committee meetings, in the form of shares of the Company's common stock instead of cash. Under this arrangement, the Company issued 4,867 shares in 2014, 6,079 shares in 2013 and 7,656 shares in 2012. The expense related to this arrangement 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 this plan was $1.0 million in 2014, $1.9 million in 2013 and $0.5 million in 2012. | |||||||||||||
Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): | |||||||||||||
Weighted | Weighted | ||||||||||||
Average | Average | ||||||||||||
Option | Exercise | Options | Exercise | ||||||||||
Shares | Price | Exercisable | Price | ||||||||||
Outstanding, December 30, 2011 | 5,478 | $ | 32.12 | 3,211 | $ | 32.27 | |||||||
Granted | 566 | 50.33 | |||||||||||
Exercised | -805 | 27.14 | |||||||||||
Canceled | -47 | 35.24 | |||||||||||
Outstanding, December 28, 2012 | 5,192 | 34.85 | 3,194 | 32.99 | |||||||||
Granted | 969 | 65.97 | |||||||||||
Exercised | -990 | 33.04 | |||||||||||
Canceled | -22 | 40.71 | |||||||||||
Outstanding, December 27, 2013 | 5,149 | 41.03 | 3,311 | 33.2 | |||||||||
Granted | 475 | 74.62 | |||||||||||
Exercised | -607 | 35.73 | |||||||||||
Canceled | -42 | 61.35 | |||||||||||
Outstanding, December 26, 2014 | 4,975 | $ | 44.72 | 3,318 | $ | 34.86 | |||||||
The following table summarizes information for options outstanding and exercisable at December 26, 2014 (in thousands, except exercise prices and contractual term amounts): | |||||||||||||
Options | |||||||||||||
Outstanding | |||||||||||||
Weighted Avg. | Options | Options | |||||||||||
Remaining | Outstanding | Exercisable | |||||||||||
Range of | Options | Contractual Term | Weighted Avg. | Options | Weighted Avg. | ||||||||
Prices | Outstanding | in Years | Exercise Price | Exercisable | Exercise Price | ||||||||
$ 16-30 | 1,352 | 4 | $ | 23.6 | 1,352 | $ | 23.6 | ||||||
$ 30-45 | 1,585 | 4 | 39.31 | 1,458 | 39.01 | ||||||||
$ 45-60 | 1,177 | 7 | 53.99 | 491 | 52.24 | ||||||||
$ 60-76 | 861 | 9 | 75.19 | 17 | 74.89 | ||||||||
$ 16-76 | 4,975 | 6 | $ | 44.72 | 3,318 | $ | 34.86 | ||||||
The aggregate intrinsic value of exercisable option shares was $154.5 million as of December 26, 2014, with a weighted average contractual term of 4.6 years. There were approximately 4.9 million vested share options and share options expected to vest as of December 26, 2014, with an aggregate intrinsic value of $182.2 million, a weighted average exercise price of $44.50 and a weighted average contractual term of 5.8 years. | |||||||||||||
Information related to options exercised follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash received | $ | 20,343 | $ | 33,630 | $ | 21,687 | |||||||
Aggregate intrinsic value | 25,284 | 33,028 | 18,195 | ||||||||||
Tax benefit realized | 8,200 | 11,200 | 6,200 | ||||||||||
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. The Company issued 193,084 shares under this plan in 2014, 196,913 shares in 2013 and 238,621 shares in 2012. | |||||||||||||
Authorized Shares. Shares authorized for issuance under the stock option and purchase plans are shown below (in thousands): | |||||||||||||
Available for Future | |||||||||||||
Total Shares | Issuance as of | ||||||||||||
Authorized | 26-Dec-14 | ||||||||||||
Stock Incentive Plan (2010) | 5,100 | 2,031 | |||||||||||
Employee Stock Purchase Plan (2006) | 7,000 | 5,094 | |||||||||||
Total | 12,100 | 7,125 | |||||||||||
Amounts available for future issuance exclude outstanding options. Options outstanding as of December 26, 2014, include options granted under three plans that were replaced by subsequent plans. No shares are available for future grants under those plans. | |||||||||||||
Share-based Compensation. The Company recognized share-based compensation cost of $17.2 million in 2014, $16.5 million in 2013 and $12.4 million in 2012, which reduced net income by $12.8 million, or $0.21 per weighted diluted common share in 2014, $12.6 million, or $0.20 per weighted diluted common share in 2013 and $9.5 million, or $0.15 per weighted diluted common share in 2012. As of December 26, 2014, there was $13.7 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of approximately 1.6 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: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected life in years | 6.5 | 5.9 | 6.5 | ||||||||||
Interest rate | 2 | % | 1.3 | % | 1.3 | % | |||||||
Volatility | 36.1 | % | 35.4 | % | 36.6 | % | |||||||
Dividend yield | 1.5 | % | 1.6 | % | 1.8 | % | |||||||
Weighted average fair value per share | $ | 24.83 | $ | 19.44 | $ | 15.6 | |||||||
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: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected life in years | 1 | 1 | 1 | ||||||||||
Interest rate | 0.1 | % | 0.2 | % | 0.2 | % | |||||||
Volatility | 21.4 | % | 26 | % | 40.6 | % | |||||||
Dividend yield | 1.4 | % | 1.7 | % | 1.7 | % | |||||||
Weighted average fair value per share | $ | 17.81 | $ | 14.16 | $ | 15.58 |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 26, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Earnings Per Share | I. Earnings per Share | |||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): | ||||||||||
2014 | 2013 | 2012 | ||||||||
Net earnings available to common shareholders | $ | 225,573 | $ | 210,822 | $ | 149,126 | ||||
Weighted average shares outstanding for basic earnings per share | 60,148 | 61,203 | 60,451 | |||||||
Dilutive effect of stock options computed based on the treasury | ||||||||||
stock method using the average market price | 1,597 | 1,587 | 1,260 | |||||||
Weighted average shares outstanding for diluted earnings per share | 61,745 | 62,790 | 61,711 | |||||||
Basic earnings per share | $ | 3.75 | $ | 3.44 | $ | 2.47 | ||||
Diluted earnings per share | $ | 3.65 | $ | 3.36 | $ | 2.42 | ||||
Stock options to purchase 0.6 million, 0.4 million and 0.6 million shares were not included in the 2014, 2013 and 2012 computations of diluted earnings per share, respectively, because they would have been anti-dilutive. |
Retirement_Benefits
Retirement Benefits | 12 Months Ended | |||||||||||||||||||
Dec. 26, 2014 | ||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||
Retirement Benefits | J. 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 contributes an amount equal to 1.5 percent of the employee's compensation. Employer contributions totaled $6.9 million in 2014, $6.3 million in 2013 and $5.6 million in 2012. | ||||||||||||||||||||
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. For U.S. plans, benefits are based on years of service and the highest five consecutive years' earnings in the ten years preceding retirement. The Company funds annually in amounts consistent with minimum funding levels and maximum tax deduction limits. | ||||||||||||||||||||
The Company maintains a defined contribution plan covering employees of a Swiss subsidiary, funded by Company and employee contributions. In 2013, the Company transferred responsibility for pension coverage under Swiss law to a reputable Swiss insurance company. To effect the change, plan assets were converted to cash and deposited with the insurance company for investment under 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 in the “other” assets category, level 3 in the fair value hierarchy. The transfer of responsibility for current retirees to the new plan carrier was treated as a settlement under ASC 715 and resulted in a reduction of plan obligations and assets, and a small settlement gain in 2013. | ||||||||||||||||||||
Investment policies and strategies of the U.S. funded pension plan are based on a long-term view of economic growth and heavily 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. The midpoints of the ranges of strategic target allocations for plan assets are 58 percent equity securities, 31 percent fixed income securities and 11 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. Equity securities are valued using quoted prices in active markets. The fair values for commingled equity and fixed-income funds, international equity funds, 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. Commingled fund and international equity funds are classified as level 2 because the net asset value is not directly traded on an active exchange. Certain trustee-sponsored funds allow redemptions monthly or quarterly, with 10 or 60 days advance notice, while most of the funds allow redemptions daily. | ||||||||||||||||||||
Level 3 assets in the U.S. funded pension plan consist primarily of investments in real estate investment trust funds whose assets are valued at least annually by independent appraisal firms, using market, income and cost approaches. Significant unobservable quantitative inputs used in determining the fair value of each investment include cash flow assumptions, capitalization rates and discount rates. These inputs are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit. Changes in cash flows, discount rates and terminal capitalization rates will result in increases or decreases in the fair values of these investments. It is not possible for us to predict the effect of future economic or market conditions on the estimated fair values of plan assets. | ||||||||||||||||||||
Plan assets by category and fair value measurement level were as follows (in thousands): | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
26-Dec-14 | ||||||||||||||||||||
Equity | ||||||||||||||||||||
U.S. Large Cap | $ | 92,272 | $ | - | $ | 92,272 | $ | - | ||||||||||||
U.S. Small/Mid Cap | 14,948 | - | 14,948 | - | ||||||||||||||||
International | 45,958 | - | 45,958 | - | ||||||||||||||||
Total Equity | 153,178 | - | 153,178 | - | ||||||||||||||||
Fixed income | 53,548 | - | 40,693 | 12,855 | ||||||||||||||||
Insurance contract | 28,899 | - | - | 28,899 | ||||||||||||||||
Real estate and other | 41,583 | 1,356 | 15,008 | 25,219 | ||||||||||||||||
Total | $ | 277,208 | $ | 1,356 | $ | 208,879 | $ | 66,973 | ||||||||||||
27-Dec-13 | ||||||||||||||||||||
Equity | ||||||||||||||||||||
U.S. Large Cap | $ | 95,025 | $ | - | $ | 95,025 | $ | - | ||||||||||||
U.S. Small/Mid Cap | 18,020 | - | 18,020 | - | ||||||||||||||||
International | 69,140 | - | 69,140 | - | ||||||||||||||||
Total Equity | 182,185 | - | 182,185 | - | ||||||||||||||||
Fixed income | 48,718 | - | 40,158 | 8,560 | ||||||||||||||||
Real estate and other | 49,704 | 1,149 | 31,271 | 17,284 | ||||||||||||||||
Total | $ | 280,607 | $ | 1,149 | $ | 253,614 | $ | 25,844 | ||||||||||||
A reconciliation of the beginning and ending balances of level 3 plan assets follows: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Balance, beginning of year | $ | 25,844 | $ | 15,138 | ||||||||||||||||
Transfer from level 2 (insurance contract) | 31,271 | - | ||||||||||||||||||
Purchases | 12,914 | 14,277 | ||||||||||||||||||
Redemptions | -3,849 | -5,351 | ||||||||||||||||||
Change in unrealized gains (losses) | 793 | 1,780 | ||||||||||||||||||
Balance, end of year | $ | 66,973 | $ | 25,844 | ||||||||||||||||
The Company uses a fiscal year-end measurement date for all of its plans. The following provides a reconciliation of the changes in the plans' benefit obligations and fair value of assets over the periods ending December 26, 2014, and December 27, 2013, and a statement of the funded status as of the same dates (in thousands): | ||||||||||||||||||||
Pension Benefits | Postretirement Medical Benefits | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||
Obligation, beginning of year | $ | 352,271 | $ | 359,701 | $ | 21,342 | $ | 23,472 | ||||||||||||
Service cost | 6,846 | 7,447 | 486 | 626 | ||||||||||||||||
Interest cost | 15,944 | 14,149 | 981 | 961 | ||||||||||||||||
Actuarial loss (gain) | 44,290 | -15,653 | 1,037 | -2,582 | ||||||||||||||||
Plan changes | - | 3,197 | - | - | ||||||||||||||||
Benefit payments | -23,593 | -10,762 | -1,082 | -1,135 | ||||||||||||||||
Settlements | - | -7,430 | - | - | ||||||||||||||||
Exchange rate changes | -6,066 | 1,622 | - | - | ||||||||||||||||
Obligation, end of year | $ | 389,692 | $ | 352,271 | $ | 22,764 | $ | 21,342 | ||||||||||||
Change in plan assets | ||||||||||||||||||||
Fair value, beginning of year | $ | 280,607 | $ | 246,606 | $ | - | $ | - | ||||||||||||
Actual return on assets | 21,622 | 40,280 | - | - | ||||||||||||||||
Employer contributions | 1,814 | 10,728 | 1,082 | 1,135 | ||||||||||||||||
Benefit payments | -23,593 | -10,762 | -1,082 | -1,135 | ||||||||||||||||
Settlements | - | -7,241 | - | - | ||||||||||||||||
Exchange rate changes | -3,242 | 996 | - | - | ||||||||||||||||
Fair value, end of year | $ | 277,208 | $ | 280,607 | $ | - | $ | - | ||||||||||||
Funded status | $ | -112,484 | $ | -71,664 | $ | -22,764 | $ | -21,342 | ||||||||||||
Amounts recognized in consolidated balance sheets | ||||||||||||||||||||
Current liabilities | $ | 1,308 | $ | 1,116 | $ | 1,165 | $ | 1,256 | ||||||||||||
Non-current liabilities | 111,176 | 70,548 | 21,599 | 20,086 | ||||||||||||||||
Total liabilities | $ | 112,484 | $ | 71,664 | $ | 22,764 | $ | 21,342 | ||||||||||||
The accumulated benefit obligation as of year-end for all defined benefit pension plans was $361 million for 2014 and $326 million for 2013. Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Projected benefit obligation | $ | 389,692 | $ | 352,271 | ||||||||||||||||
Accumulated benefit obligation | 360,945 | 326,030 | ||||||||||||||||||
Fair value of plan assets | 277,208 | 280,607 | ||||||||||||||||||
The components of net periodic benefit cost for the plans for 2014, 2013 and 2012 were as follows (in thousands): | ||||||||||||||||||||
Pension Benefits | Postretirement Medical Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Service cost-benefits earned during the period | $ | 6,846 | $ | 7,447 | $ | 6,414 | $ | 486 | $ | 626 | $ | 589 | ||||||||
Interest cost on projected benefit obligation | 15,944 | 14,149 | 13,729 | 981 | 961 | 986 | ||||||||||||||
Expected return on assets | -21,253 | -18,508 | -15,907 | - | - | - | ||||||||||||||
Amortization of prior service cost (credit) | 320 | 8 | -5 | -658 | -658 | -658 | ||||||||||||||
Amortization of net loss (gain) | 4,929 | 10,456 | 10,814 | 15 | 480 | 395 | ||||||||||||||
Cost of pension plans which are not significant | ||||||||||||||||||||
and have not adopted ASC 715 | 80 | 94 | 121 | N/A | N/A | N/A | ||||||||||||||
Net periodic benefit cost | $ | 6,866 | $ | 13,646 | $ | 15,166 | $ | 824 | $ | 1,409 | $ | 1,312 | ||||||||
Amounts recognized in other comprehensive (income) loss in 2014 and 2013 were as follows (in thousands): | ||||||||||||||||||||
Pension Benefits | Postretirement Medical Benefits | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net loss (gain) arising during the period | $ | 42,733 | $ | -37,284 | $ | 1,037 | $ | -2,582 | ||||||||||||
Prior service cost (credit) arising during the period | - | 3,197 | - | - | ||||||||||||||||
Amortization of net gain (loss) | -4,929 | -10,456 | -15 | -480 | ||||||||||||||||
Amortization of prior service credit (cost) | -320 | -8 | 658 | 658 | ||||||||||||||||
Total | $ | 37,484 | $ | -44,551 | $ | 1,680 | $ | -2,404 | ||||||||||||
Amounts included in accumulated other comprehensive (income) loss as of December 26, 2014 and December 27, 2013, that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): | ||||||||||||||||||||
Pension Benefits | Postretirement Medical Benefits | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Prior service cost (credit) | $ | 2,658 | $ | 3,271 | $ | -1,786 | $ | -2,444 | ||||||||||||
Net loss | 111,298 | 73,200 | 4,347 | 3,325 | ||||||||||||||||
Net before income taxes | 113,956 | 76,471 | 2,561 | 881 | ||||||||||||||||
Income taxes | -39,011 | -26,903 | -922 | -317 | ||||||||||||||||
Net | $ | 74,945 | $ | 49,568 | $ | 1,639 | $ | 564 | ||||||||||||
Amounts included in accumulated other comprehensive (income) loss that are expected to be recognized as components of net periodic benefit cost in 2015 were as follows (in thousands): | ||||||||||||||||||||
Postretirement | ||||||||||||||||||||
Pension | Medical | |||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
Prior service cost (credit) | $ | 295 | $ | -676 | ||||||||||||||||
Net loss (gain) | 8,922 | 271 | ||||||||||||||||||
Net before income taxes | 9,217 | -405 | ||||||||||||||||||
Income taxes | -3,318 | 146 | ||||||||||||||||||
Net | $ | 5,899 | $ | -259 | ||||||||||||||||
Assumptions used to determine the Company's benefit obligations are shown below: | ||||||||||||||||||||
Pension Benefits | Postretirement Medical Benefits | |||||||||||||||||||
Weighted average assumptions | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
U.S. Plans | ||||||||||||||||||||
Discount rate | 4.2 | % | 5 | % | 4.2 | % | 5 | % | ||||||||||||
Rate of compensation increase | 3 | % | 3 | % | N/A | N/A | ||||||||||||||
Non-U.S. Plans | ||||||||||||||||||||
Discount rate | 1.5 | % | 2.5 | % | N/A | N/A | ||||||||||||||
Rate of compensation increase | 1.3 | % | 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 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
U.S. Plans | ||||||||||||||||||||
Discount rate | 5 | % | 4.2 | % | 4.6 | % | 5 | % | 4.2 | % | 4.6 | % | ||||||||
Rate of compensation increase | 3 | % | 3 | % | 3 | % | N/A | N/A | N/A | |||||||||||
Expected return on assets | 8.5 | % | 8.5 | % | 8.5 | % | N/A | N/A | N/A | |||||||||||
Non-U.S. Plans | ||||||||||||||||||||
Discount rate | 2.5 | % | 2.3 | % | 2.9 | % | N/A | N/A | N/A | |||||||||||
Rate of compensation increase | 1.3 | % | 1.2 | % | 1.2 | % | N/A | N/A | N/A | |||||||||||
Expected return on assets | 2 | % | 3 | % | 3 | % | 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 advisors, 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 7.0 percent for 2015, decreasing each year to a constant rate of 4.5 percent for 2026 and thereafter, subject to the plan's annual increase limitation. | ||||||||||||||||||||
At December 26, 2014, a one percent change in assumed health care cost trend rates would not have a significant impact on the service and interest cost components of net periodic postretirement health care benefit cost or the APBO for health care benefits. | ||||||||||||||||||||
The Company expects to contribute $2.3 million to its unfunded pension plans and $1.2 million to the postretirement medical plan in 2015. The Company will not be required to make contributions to the funded pension plan under minimum funding requirements for 2015. Estimated future benefit payments are as follows (in thousands): | ||||||||||||||||||||
Postretirement | ||||||||||||||||||||
Pension | Medical | |||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
2015 | $ | 15,290 | $ | 1,165 | ||||||||||||||||
2016 | 17,085 | 1,259 | ||||||||||||||||||
2017 | 16,299 | 1,310 | ||||||||||||||||||
2018 | 17,417 | 1,373 | ||||||||||||||||||
2019 | 18,248 | 1,440 | ||||||||||||||||||
Years 2020 - 2024 | 105,418 | 7,873 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 26, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies [Text Block] | K. Commitments and Contingencies | ||||||||
Lease Commitments. Aggregate annual rental commitments under operating leases with noncancelable terms of more than one year were as follows at December 26, 2014 (in thousands): | |||||||||
Vehicles & | |||||||||
Buildings | Equipment | Total | |||||||
2015 | $ | 3,472 | $ | 2,896 | $ | 6,368 | |||
2016 | 2,556 | 2,086 | 4,642 | ||||||
2017 | 2,307 | 1,481 | 3,788 | ||||||
2018 | 1,983 | 882 | 2,865 | ||||||
2019 | 2,023 | 607 | 2,630 | ||||||
Thereafter | 7,942 | 442 | 8,384 | ||||||
Total | $ | 20,283 | $ | 8,394 | $ | 28,677 | |||
Total rental expense was $5.0 million for 2014, $3.6 million for 2013 and $3.3 million for 2012. | |||||||||
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 $76 million at December 26, 2014. 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 $36 million. In addition, the Company could be obligated to perform under standby letters of credit totaling $2 million at December 26, 2014. The Company has also guaranteed the debt of its subsidiaries for up to $9 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. 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. | |||||||||
As more fully described in Note L, under terms of orders issued by the FTC, the Company is required to separately maintain the Liquid Finishing businesses as viable and competitive while it seeks a buyer for those businesses. The Company's maximum exposure to loss as a result of its involvement with the Liquid Finishing businesses would include the entirety of its investment of $422 million and reimbursement of losses of the operations of the Liquid Finishing businesses in accordance with the hold separate order, which cannot be quantified. The operating earnings of the Liquid Finishing businesses exceed $160 million (unaudited) since the date of acquisition, and no additional financial resources were required to be funded by the Company. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||
Dec. 26, 2014 | |||||||||||
Business Combinations [Abstract] | |||||||||||
Acquisitions | L. Acquisitions and Divestitures | ||||||||||
On October 1, 2014, the Company acquired the stock of Alco Valves Group for £72 million cash, subject to normal post-closing purchase price adjustments. Alco is a United Kingdom based manufacturer of high quality, high pressure valves used in the oil and natural gas industry and in other industrial processes. Alco's products and business relationships will enhance Graco's position in the oil and natural gas industry and complement Graco's core competencies of designing and manufacturing advanced flow control technologies. Alco revenues for the twelve months preceding the acquisition were approximately £19 million. Results of Alco operations, including $6 million of sales, have been included in the Company's Industrial segment starting from the date of acquisition. | |||||||||||
Purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands): | |||||||||||
Cash and cash equivalents | $ | 1,929 | |||||||||
Accounts receivable | 9,821 | ||||||||||
Inventories | 9,565 | ||||||||||
Other current assets | 343 | ||||||||||
Property, plant and equipment | 1,047 | ||||||||||
Other non-current assets | 225 | ||||||||||
Identifiable intangible assets | 30,348 | ||||||||||
Goodwill | 73,445 | ||||||||||
Total assets acquired | 126,723 | ||||||||||
Current liabilities assumed | -3,291 | ||||||||||
Deferred income taxes | -6,266 | ||||||||||
Net assets acquired | $ | 117,166 | |||||||||
None of the goodwill acquired with Alco is deductible for tax purposes. | |||||||||||
Identifiable intangible assets and estimated useful life are as follows (dollars in thousands): | |||||||||||
Estimated | |||||||||||
Life (years) | |||||||||||
Customer relationships | $ | 22,883 | 10 | ||||||||
Trade names | 7,465 | Indefinite | |||||||||
Total identifiable intangible assets | $ | 30,348 | |||||||||
In the first quarter of 2014, the Company paid $65 million cash to acquire a manufacturer of fluid management solutions for environmental monitoring and remediation, markets where Graco had little or no previous exposure. The acquired business expands and complements the Company's Industrial segment. The purchase price was allocated based on estimated fair values, including $37 million of goodwill, $22 million of other identifiable intangible assets and $6 million of net tangible assets. | |||||||||||
In April 2012, the Company completed the purchase of the finishing businesses of Illinois Tool Works Inc. The acquisition included finishing equipment operations, technologies and brands of the Powder Finishing and Liquid Finishing businesses. Results of the Powder Finishing businesses have been included in the Industrial segment since the date of acquisition. Pursuant to a March 2012 order, the Liquid Finishing businesses were to be held separate from the rest of Graco's businesses while the FTC considered a settlement with Graco and determined which portions of the Liquid Finishing business Graco must divest. | |||||||||||
The Company transferred cash purchase consideration of $660 million to the seller on April 2, 2012. In July 2012, the Company transferred additional cash purchase consideration of $8 million, representing the difference between cash balances acquired and the amount estimated at the time of closing. In 2013, the seller reimbursed Graco approximately $5 million for payments of pre-acquisition tax liabilities paid by Liquid Finishing businesses after the acquisition date. This reimbursement was recorded as a reduction of the cost-method investment. | |||||||||||
Purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands): | |||||||||||
Cash and cash equivalents | $ | 6,007 | |||||||||
Accounts receivable | 17,835 | ||||||||||
Inventories | 21,733 | ||||||||||
Other current assets | 2,534 | ||||||||||
Property, plant and equipment | 18,359 | ||||||||||
Other non-current assets | 50 | ||||||||||
Identifiable intangible assets | 150,500 | ||||||||||
Goodwill | 86,056 | ||||||||||
Total assets acquired | 303,074 | ||||||||||
Current liabilities assumed | -27,434 | ||||||||||
Non-current liabilities assumed | -7,984 | ||||||||||
Deferred income taxes | -26,105 | ||||||||||
Net assets acquired, Powder Finishing | 241,551 | ||||||||||
Investment in businesses held separate | 426,813 | ||||||||||
Total purchase consideration | $ | 668,364 | |||||||||
Identifiable intangible assets and estimated useful life are as follows (dollars in thousands): | |||||||||||
Estimated | |||||||||||
Life (years) | |||||||||||
Customer relationships | $ | 103,500 | 14 | ||||||||
Developed technology | 9,600 | 11 | |||||||||
Trade names | 37,400 | Indefinite | |||||||||
Total identifiable intangible assets | $ | 150,500 | |||||||||
The Company adjusted the preliminary purchase price allocation in the fourth quarter of 2012 to recognize deferred tax liability on certain identifiable intangible assets, which resulted in an $8 million increase in goodwill. Substantially none of the goodwill acquired in 2012 is deductible for tax purposes. | |||||||||||
In the fourth quarter of 2014, the FTC approved a final decision and order that became effective on October 9, 2014. Pursuant to the final order, Graco must sell the Liquid Finishing business assets within 180 days of the effective date. On October 8, 2014, the Company announced it had signed a definitive agreement to sell the Liquid Finishing business assets for $590 million cash, subject to regulatory approval and other customary closing conditions. The sale transaction is expected to close in the first half of 2015, in compliance with the FTC's final decision and order. Graco will continue to hold the Liquid Finishing businesses separate and maintain them as viable and competitive until the sale process is complete. | |||||||||||
The Liquid Finishing business assets are held as a cost-method investment on the Consolidated Balance Sheets. Income is recognized based on dividends received from after-tax earnings of Liquid Finishing and included in other expense (income) on the Consolidated Statements of Earnings. Dividends received totaled $28 million in 2014, $28 million in 2013 and $12 million in 2012. Once the Company completes the sale of its investment, there will be no further dividends from Liquid Finishing. | |||||||||||
The Company evaluates its cost-method investment for other-than-temporary impairment at each reporting period. As of December 26, 2014, the Company evaluated its investment in Liquid Finishing and determined that there is no impairment. | |||||||||||
Sales and operating earnings of the Liquid Finishing businesses were as follows (unaudited, in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net Sales | $ | 288,231 | $ | 278,543 | $ | 269,099 | |||||
Operating Earnings | 62,605 | 61,174 | 52,256 | ||||||||
The Company completed other business acquisitions in 2014, 2013 and 2012 that were not material to the consolidated financial statements. | |||||||||||
Subsequent events: In January 2015, the Company completed the acquisition of High Pressure Equipment Holdings, LLC (HiP) for $160 million. HiP designs and manufactures valves, fittings and other flow control equipment engineered to perform in ultra-high pressure environments. The Company also acquired White Knight Fluid Handling, a manufacturer of high purity, metal free pumps used in the production process of manufacturing semiconductors, solar panels, LED flat panel displays and various other electronics, and Multimaq-Pistolas e Equipamentos Para Pintura Ltda., a manufacturer and distributor of finishing products in the Brazilian market. |
Quarterly_Financial_Informatio
Quarterly Financial Information (unaudited) | 12 Months Ended | ||||||||||||
Dec. 26, 2014 | |||||||||||||
Quarterly Financial Information (unaudited) [Abstract] | |||||||||||||
Quarterly Financial Information (unaudited) | M. Quarterly Financial Information (unaudited) | ||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
2014 | |||||||||||||
Net Sales | $ | 289,962 | $ | 322,549 | $ | 302,614 | $ | 306,005 | |||||
Gross Profit | 159,312 | 176,850 | 165,814 | 164,760 | |||||||||
Net Earnings | 50,745 | 66,236 | 59,551 | 49,041 | |||||||||
Basic Net Earnings per Common Share | $ | 0.83 | $ | 1.1 | $ | 0.99 | $ | 0.83 | |||||
Diluted Net Earnings per Common Share | 0.81 | 1.07 | 0.97 | 0.8 | |||||||||
Cash Dividends Declared per Common Share | 0.28 | 0.28 | 0.28 | 0.3 | |||||||||
2013 | |||||||||||||
Net Sales | $ | 269,046 | $ | 286,020 | $ | 277,035 | $ | 271,923 | |||||
Gross Profit | 150,644 | 158,739 | 150,873 | 147,199 | |||||||||
Net Earnings | 52,130 | 57,843 | 56,101 | 44,748 | |||||||||
Basic Net Earnings per Common Share | $ | 0.86 | $ | 0.94 | $ | 0.91 | $ | 0.73 | |||||
Diluted Net Earnings per Common Share | 0.84 | 0.92 | 0.89 | 0.71 | |||||||||
Cash Dividends Declared per Common Share | 0.25 | 0.25 | 0.25 | 0.28 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 26, 2014 | ||||||||||||||||||||||||||||||||
Schedule Of Valuation And Qualifying Accounts Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts | |||||||||||||||||||||||||||||||
Graco Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Balance at | charged to | Deductions | Other | Balance at | ||||||||||||||||||||||||||||
beginning | costs and | from | add | end | ||||||||||||||||||||||||||||
of year | expenses | reserves1 | (deduct)2 | of year | ||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||
26-Dec-14 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,300 | $ | 800 | $ | 300 | $ | 600 | $ | 2,400 | ||||||||||||||||||||||
Allowance for returns and credits | 5,000 | 22,400 | 21,700 | - | 5,700 | |||||||||||||||||||||||||||
$ | 6,300 | $ | 23,200 | $ | 22,000 | $ | 600 | $ | 8,100 | |||||||||||||||||||||||
27-Dec-13 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,100 | $ | 600 | $ | 1,400 | $ | - | $ | 1,300 | ||||||||||||||||||||||
Allowance for returns and credits | 4,500 | 17,300 | 16,800 | - | 5,000 | |||||||||||||||||||||||||||
$ | 6,600 | $ | 17,900 | $ | 18,200 | $ | - | $ | 6,300 | |||||||||||||||||||||||
28-Dec-12 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,400 | $ | 500 | $ | 100 | $ | 300 | $ | 2,100 | ||||||||||||||||||||||
Allowance for returns and credits | 4,100 | 13,700 | 13,300 | - | 4,500 | |||||||||||||||||||||||||||
$ | 5,500 | $ | 14,200 | $ | 13,400 | $ | 300 | $ | 6,600 | |||||||||||||||||||||||
1 | For doubtful accounts, represents amounts determined to be uncollectible and charged against reserve, net of collections on accounts previously charged against reserves. For returns and credits, represents amounts of credits issued and returns processed. | |||||||||||||||||||||||||||||||
2 | Includes amounts assumed or established in connection with acquisitions and effects of foreign currency translation. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Fiscal Year | The fiscal year of Graco Inc. and Subsidiaries (the “Company”) is 52 or 53 weeks, ending on the last Friday in December. The years ended December 26, 2014, December 27, 2013 and December 28, 2012, 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 26, 2014, all subsidiaries are 100 percent owned. |
As more fully described in Note L, the Company purchased the Powder Finishing and Liquid Finishing businesses in April 2012. The FTC issued an order requiring the Company to hold the Liquid Finishing businesses separate from the rest of the Company's businesses. Under terms of the hold separate order, the Company does not have the power to direct the activities of the Liquid Finishing businesses that most significantly impact the economic performance of those businesses. Therefore, the Company has determined that the Liquid Finishing businesses are variable interest entities for which the Company is not the primary beneficiary, and that they should not be consolidated. Furthermore, the Company does not have a controlling interest in the Liquid Finishing businesses, nor is it able to exert significant influence over the Liquid Finishing businesses. Consequently, the Company's investment in the shares of the Liquid Finishing businesses, totaling $422 million, has been reflected as a cost-method investment on the Consolidated Balance Sheet as of December 26, 2014, and their results of operations have not been consolidated with those of 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 (income), net. |
Accounting Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Measurements | The three levels of inputs in the fair value measurement hierarchy are as follows: |
Level 1 – based on quoted prices in active markets for identical assets | |
Level 2 – based on significant observable inputs | |
Level 3 – based on significant unobservable inputs | |
Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds. | |
Cash Equivalents | All highly liquid investments with a maturity of three months or less at the date of purchase are considered to be cash equivalents. |
Inventory Valuation | Inventories are stated at the lower of cost or market. 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. |
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 |
Intangible Assets | Goodwill has been assigned to reporting units. |
Other Assets (Software Amortization) | Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. |
Impairment or Long-Lived Assets | The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. Goodwill and other intangible assets not subject to amortization are also reviewed for impairment annually in the fourth quarter. There were no write-downs of long-lived assets in the periods presented. |
Self-Insurance | The Company is self-insured for certain losses and costs relating to product liability, workers' compensation and employee medical benefits claims. The Company has purchased stop-loss coverage in order to limit its exposure to significant claims. Accrued self-insured retentions are based on claims filed and estimates of claims incurred but not reported. |
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 Recognition | Sales are recognized when revenue is realized or realizable and has been earned. The Company's policy is to recognize revenue when risk and title passes 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. Rights of return are typically contractually limited, amounts are estimable, and the Company records provisions for anticipated returns and warranty claims at the time revenue is recognized. Historically, sales returns have been approximately 2 percent of sales. 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. From time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. In such cases, provisions for estimated returns are recorded as a reduction of net sales. |
Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include cooperative advertising arrangements, 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. 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. Rebates are accrued based on the program rates and progress toward the estimated annual sales amount and sales growth, and are recorded as a reduction of sales (cash, trade credit) or cost of products sold (free goods). 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. | |
Shipping and Handling | Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold in the accompanying Consolidated Statements of Income. Amounts billed to customers for shipping and handling are included in net sales. |
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. |
Derivative Instruments and Hedging Activities | 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 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 uses significant other observable inputs (level 2 in the fair value hierarchy) to value the derivative instruments used to hedge interest rate volatility and net monetary positions, including reference to market prices and financial models that incorporate relevant market assumptions. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 26, 2014 | ||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||
Fair Value Table | Level | 2014 | 2013 | |||||||||||||
Assets | ||||||||||||||||
Cash surrender value of life insurance | 2 | $ | 13,187 | $ | 12,611 | |||||||||||
Forward exchange contracts | 2 | 280 | 291 | |||||||||||||
Total assets at fair value | $ | 13,467 | $ | 12,902 | ||||||||||||
Liabilities | ||||||||||||||||
Deferred compensation | 2 | $ | 2,676 | $ | 2,296 | |||||||||||
Other Current Assets | 2014 | 2013 | ||||||||||||||
Prepaid income taxes | $ | 10,849 | $ | 7,894 | ||||||||||||
Prepaid expenses and other | 8,525 | 6,739 | ||||||||||||||
Total | $ | 19,374 | $ | 14,633 | ||||||||||||
Property, Plant and Equipment, estimated useful lives | 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 by reporting segment | Industrial | Contractor | Lubrication | Total | ||||||||||||
26-Dec-14 | ||||||||||||||||
Beginning balance | $ | 157,738 | $ | 12,732 | $ | 19,497 | $ | 189,967 | ||||||||
Additions from business acquisitions | 114,331 | - | - | 114,331 | ||||||||||||
Foreign currency translation | -11,724 | - | - | -11,724 | ||||||||||||
Ending balance | $ | 260,345 | $ | 12,732 | $ | 19,497 | $ | 292,574 | ||||||||
27-Dec-13 | ||||||||||||||||
Beginning balance | $ | 148,999 | $ | 12,732 | $ | 19,497 | $ | 181,228 | ||||||||
Additions from business acquisitions | 6,626 | - | - | 6,626 | ||||||||||||
Foreign currency translation | 2,998 | - | - | 2,998 | ||||||||||||
Other | -885 | - | - | -885 | ||||||||||||
Ending balance | $ | 157,738 | $ | 12,732 | $ | 19,497 | $ | 189,967 | ||||||||
Intangible assets | Estimated | Foreign | ||||||||||||||
Life | Accumulated | Currency | Book | |||||||||||||
(years) | Cost | Amortization | Translation | Value | ||||||||||||
26-Dec-14 | ||||||||||||||||
Customer relationships | 14-Mar | $ | 143,144 | $ | -21,948 | $ | -7,334 | $ | 113,862 | |||||||
Patents, proprietary technology | ||||||||||||||||
and product documentation | 11-Mar | 18,268 | -7,126 | -655 | 10,487 | |||||||||||
Trademarks, trade names and other | 5 | 175 | -44 | - | 131 | |||||||||||
161,587 | -29,118 | -7,989 | 124,480 | |||||||||||||
Not Subject to Amortization | ||||||||||||||||
Brand names | 55,265 | - | -3,467 | 51,798 | ||||||||||||
Total | $ | 216,852 | $ | -29,118 | $ | -11,456 | $ | 176,278 | ||||||||
27-Dec-13 | ||||||||||||||||
Customer relationships | 14-Mar | $ | 121,205 | $ | -26,377 | $ | 1,458 | $ | 96,286 | |||||||
Patents, proprietary technology | ||||||||||||||||
and product documentation | 11-Mar | 16,125 | -5,869 | 118 | 10,374 | |||||||||||
Trademarks, trade names and other | 5 | 175 | -9 | - | 166 | |||||||||||
137,505 | -32,255 | 1,576 | 106,826 | |||||||||||||
Not Subject to Amortization | ||||||||||||||||
Brand names | 40,400 | - | 714 | 41,114 | ||||||||||||
Total | $ | 177,905 | $ | -32,255 | $ | 2,290 | $ | 147,940 | ||||||||
Components of other assets | 2014 | 2013 | ||||||||||||||
Cash surrender value of life insurance | $ | 13,187 | $ | 12,611 | ||||||||||||
Capitalized software | 3,596 | 3,448 | ||||||||||||||
Equity method investment | 5,859 | 5,569 | ||||||||||||||
Deposits and other | 3,565 | 3,017 | ||||||||||||||
Total | $ | 26,207 | $ | 24,645 | ||||||||||||
Components of other current liabilities | 2014 | 2013 | ||||||||||||||
Accrued self-insurance retentions | $ | 7,089 | $ | 6,381 | ||||||||||||
Accrued warranty and service liabilities | 7,609 | 7,771 | ||||||||||||||
Accrued trade promotions | 7,697 | 7,245 | ||||||||||||||
Payable for employee stock purchases | 9,126 | 7,908 | ||||||||||||||
Customer advances and deferred revenue | 8,918 | 11,693 | ||||||||||||||
Income taxes payable | 5,997 | 4,561 | ||||||||||||||
Other | 25,157 | 23,608 | ||||||||||||||
Total | $ | 71,593 | $ | 69,167 | ||||||||||||
Accrued warranty liabilities activity | 2014 | 2013 | ||||||||||||||
Balance, beginning of year | $ | 7,771 | $ | 7,943 | ||||||||||||
Assumed in business acquisition | 12 | - | ||||||||||||||
Charged to expense | 6,069 | 6,119 | ||||||||||||||
Margin on parts sales reversed | 1,920 | 3,819 | ||||||||||||||
Reductions for claims settled | -8,163 | -10,110 | ||||||||||||||
Balance, end of year | $ | 7,609 | $ | 7,771 | ||||||||||||
Fair Market Value and Classification of Derivative Instruments | Balance Sheet Classification | 2014 | 2013 | |||||||||||||
Gain (loss) on foreign currency forward contracts | ||||||||||||||||
Gains | $ | 280 | $ | 306 | ||||||||||||
Losses | - | -15 | ||||||||||||||
Net | Accounts receivable | $ | 280 | $ | 291 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||
Dec. 26, 2014 | |||||||||||
Segment Information [Abstract] | |||||||||||
Segment Reporting Information - Operations and Assets | Reportable Segments (in thousands) | 2014 | 2013 | 2012 | |||||||
Net Sales | |||||||||||
Industrial | $ | 727,389 | $ | 652,344 | $ | 603,398 | |||||
Contractor | 375,574 | 342,546 | 298,811 | ||||||||
Lubrication | 118,167 | 109,134 | 110,247 | ||||||||
Total | $ | 1,221,130 | $ | 1,104,024 | $ | 1,012,456 | |||||
Operating Earnings | |||||||||||
Industrial | $ | 225,337 | $ | 211,265 | $ | 186,129 | |||||
Contractor | 81,892 | 72,245 | 54,310 | ||||||||
Lubrication | 26,403 | 22,512 | 22,535 | ||||||||
Unallocated corporate (expense) | -24,707 | -26,253 | -38,297 | ||||||||
Total | $ | 308,925 | $ | 279,769 | $ | 224,677 | |||||
Assets | |||||||||||
Industrial | $ | 770,623 | $ | 591,135 | |||||||
Contractor | 176,757 | 152,300 | |||||||||
Lubrication | 83,148 | 82,503 | |||||||||
Unallocated corporate | 514,250 | 501,290 | |||||||||
Total | $ | 1,544,778 | $ | 1,327,228 | |||||||
Segment Reporting Information - Geographic | Geographic Information (in thousands) | 2014 | 2013 | 2012 | |||||||
Net Sales (based on customer location) | |||||||||||
United States | $ | 577,359 | $ | 498,478 | $ | 440,757 | |||||
Other countries | 643,771 | 605,546 | 571,699 | ||||||||
Total | $ | 1,221,130 | $ | 1,104,024 | $ | 1,012,456 | |||||
Long-lived Assets | |||||||||||
United States | $ | 131,131 | $ | 120,262 | |||||||
Other countries | 30,099 | 31,455 | |||||||||
Total | $ | 161,230 | $ | 151,717 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||
Dec. 26, 2014 | ||||||
Inventories [Abstract] | ||||||
Components of Inventories | 2014 | 2013 | ||||
Finished products and components | $ | 87,384 | $ | 65,963 | ||
Products and components in various stages of completion | 47,682 | 41,458 | ||||
Raw materials and purchased components | 69,212 | 69,051 | ||||
204,278 | 176,472 | |||||
Reduction to LIFO cost | -44,481 | -42,685 | ||||
Total | $ | 159,797 | $ | 133,787 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||
Dec. 26, 2014 | ||||||
Property Plant and Equipment [Abstract] | ||||||
Property, Plant and Equipment [Table Text Block] | 2014 | 2013 | ||||
Land and improvements | $ | 16,311 | $ | 16,506 | ||
Buildings and improvements | 123,126 | 118,460 | ||||
Manufacturing equipment | 242,978 | 222,810 | ||||
Office, warehouse and automotive equipment | 39,219 | 35,887 | ||||
Additions in progress | 12,117 | 14,224 | ||||
Total property, plant and equipment | 433,751 | 407,887 | ||||
Accumulated depreciation | -272,521 | -256,170 | ||||
Net property, plant and equipment | $ | 161,230 | $ | 151,717 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 26, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Earnings before income tax expense | 2014 | 2013 | 2012 | ||||||||
Domestic | $ | 266,627 | $ | 238,928 | $ | 184,132 | |||||
Foreign | 48,446 | 49,894 | 33,194 | ||||||||
Total | $ | 315,073 | $ | 288,822 | $ | 217,326 | |||||
Components of income tax expense | 2014 | 2013 | 2012 | ||||||||
Current | |||||||||||
Domestic | |||||||||||
Federal | $ | 73,584 | $ | 64,753 | $ | 61,989 | |||||
State and local | 2,775 | 2,470 | 5,180 | ||||||||
Foreign | 12,263 | 11,569 | 11,218 | ||||||||
88,622 | 78,792 | 78,387 | |||||||||
Deferred | |||||||||||
Domestic | 2,497 | -553 | -5,431 | ||||||||
Foreign | -1,619 | -239 | -4,756 | ||||||||
878 | -792 | -10,187 | |||||||||
Total | $ | 89,500 | $ | 78,000 | $ | 68,200 | |||||
Federal tax rate reconciliation | 2014 | 2013 | 2012 | ||||||||
Statutory tax rate | 35 | % | 35 | % | 35 | % | |||||
Tax effect of international operations | -1 | -1 | -1 | ||||||||
State taxes, net of federal effect | 1 | 1 | 1 | ||||||||
U.S. general business tax credits | -1 | -2 | - | ||||||||
Domestic production deduction | -3 | -3 | -2 | ||||||||
Dividends from Liquid Finishing | -3 | -3 | -2 | ||||||||
Effective tax rate | 28 | % | 27 | % | 31 | % | |||||
Deferred income taxes, current and non-current | 2014 | 2013 | |||||||||
Inventory valuations | $ | 9,163 | $ | 8,825 | |||||||
Self-insurance retention accruals | 2,098 | 1,887 | |||||||||
Warranty reserves | 2,074 | 2,089 | |||||||||
Vacation accruals | 3,023 | 2,740 | |||||||||
Bad debt reserves | 2,409 | 1,961 | |||||||||
Other | 1,202 | 1,325 | |||||||||
Deferred income taxes, current | 19,969 | 18,827 | |||||||||
Included in other current liabilities | -1,743 | -1,095 | |||||||||
Total Current | 18,226 | 17,732 | |||||||||
Unremitted earnings of consolidated foreign subsidiaries | -7,316 | -6,316 | |||||||||
Excess of tax over book depreciation | -50,664 | -42,322 | |||||||||
Pension liability | 35,247 | 20,798 | |||||||||
Postretirement medical | 7,743 | 8,097 | |||||||||
Acquisition costs | 3,369 | 3,644 | |||||||||
Stock compensation | 16,657 | 14,401 | |||||||||
Deferred compensation | 1,350 | 1,193 | |||||||||
Other | 142 | -64 | |||||||||
Total Non-current | 6,528 | -569 | |||||||||
Net deferred tax assets | $ | 24,754 | $ | 17,163 |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||
Dec. 26, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Debt summary | Average | |||||||||||||
Interest Rate | ||||||||||||||
December 26, | ||||||||||||||
2014 | Maturity | 2014 | 2013 | |||||||||||
Private placement unsecured fixed-rate notes | ||||||||||||||
Series A | 4 | % | Mar-18 | $ | 75,000 | $ | 75,000 | |||||||
Series B | 5.01 | % | Mar-23 | 75,000 | 75,000 | |||||||||
Series C | 4.88 | % | Jan-20 | 75,000 | 75,000 | |||||||||
Series D | 5.35 | % | Jul-26 | 75,000 | 75,000 | |||||||||
Unsecured revolving credit facility | 1.28 | % | Jun-19 | 315,000 | 108,370 | |||||||||
Notes payable to banks | 0.85 | % | 2015 | 5,016 | 9,584 | |||||||||
Total debt, including current portion | $ | 620,016 | $ | 417,954 | ||||||||||
Annual maturities of debt | 2015 | $ | 5,016 | |||||||||||
2016 | - | |||||||||||||
2017 | - | |||||||||||||
2018 | 75,000 | |||||||||||||
2019 | 315,000 | |||||||||||||
Thereafter | 225,000 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||
Dec. 26, 2014 | ||||||||||
Components of AOCI [Abstract] | ||||||||||
Components of Accumulated Other Comprehensive Income | Pension | |||||||||
and Post- | Cumulative | |||||||||
retirement | Translation | |||||||||
Medical | Adjustment | Total | ||||||||
2012 | ||||||||||
Beginning balance | $ | -75,658 | $ | -823 | $ | -76,481 | ||||
Other comprehensive income (loss) | ||||||||||
before reclassifications | -10,993 | -3,206 | -14,199 | |||||||
Amounts reclassified from accumulated | ||||||||||
other comprehensive income | 6,935 | - | 6,935 | |||||||
Ending balance | $ | -79,716 | $ | -4,029 | $ | -83,745 | ||||
2013 | ||||||||||
Beginning balance | $ | -79,716 | $ | -4,029 | $ | -83,745 | ||||
Other comprehensive income (loss) | ||||||||||
before reclassifications | 23,103 | 7,812 | 30,915 | |||||||
Amounts reclassified from accumulated | ||||||||||
other comprehensive income | 6,481 | - | 6,481 | |||||||
Ending balance | $ | -50,132 | $ | 3,783 | $ | -46,349 | ||||
2014 | ||||||||||
Beginning balance | $ | -50,132 | $ | 3,783 | $ | -46,349 | ||||
Other comprehensive income (loss) | ||||||||||
before reclassifications | -29,563 | -27,935 | -57,498 | |||||||
Amounts reclassified from accumulated | ||||||||||
other comprehensive income | 3,111 | - | 3,111 | |||||||
Ending balance | $ | -76,584 | $ | -24,152 | $ | -100,736 | ||||
2014 | 2013 | 2012 | ||||||||
Cost of products sold | $ | 1,701 | $ | 3,635 | $ | 3,900 | ||||
Product development | 714 | 1,699 | 1,728 | |||||||
Selling, marketing and distribution | 1,371 | 2,828 | 2,886 | |||||||
General and administrative | 820 | 2,124 | 2,032 | |||||||
Total before tax | $ | 4,606 | $ | 10,286 | $ | 10,546 | ||||
Income tax (benefit) | -1,495 | -3,805 | -3,611 | |||||||
Total after tax | $ | 3,111 | $ | 6,481 | $ | 6,935 |
ShareBased_Awards_Purchase_Pla
Share-Based Awards, Purchase Plans and Compensation Cost (Tables) | 12 Months Ended | ||||||||||||
Dec. 26, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Share Based Awards - Option shares activity | Weighted | Weighted | |||||||||||
Average | Average | ||||||||||||
Option | Exercise | Options | Exercise | ||||||||||
Shares | Price | Exercisable | Price | ||||||||||
Outstanding, December 30, 2011 | 5,478 | $ | 32.12 | 3,211 | $ | 32.27 | |||||||
Granted | 566 | 50.33 | |||||||||||
Exercised | -805 | 27.14 | |||||||||||
Canceled | -47 | 35.24 | |||||||||||
Outstanding, December 28, 2012 | 5,192 | 34.85 | 3,194 | 32.99 | |||||||||
Granted | 969 | 65.97 | |||||||||||
Exercised | -990 | 33.04 | |||||||||||
Canceled | -22 | 40.71 | |||||||||||
Outstanding, December 27, 2013 | 5,149 | 41.03 | 3,311 | 33.2 | |||||||||
Granted | 475 | 74.62 | |||||||||||
Exercised | -607 | 35.73 | |||||||||||
Canceled | -42 | 61.35 | |||||||||||
Outstanding, December 26, 2014 | 4,975 | $ | 44.72 | 3,318 | $ | 34.86 | |||||||
Options outstanding and exercisable | Options | ||||||||||||
Outstanding | |||||||||||||
Weighted Avg. | Options | Options | |||||||||||
Remaining | Outstanding | Exercisable | |||||||||||
Range of | Options | Contractual Term | Weighted Avg. | Options | Weighted Avg. | ||||||||
Prices | Outstanding | in Years | Exercise Price | Exercisable | Exercise Price | ||||||||
$ 16-30 | 1,352 | 4 | $ | 23.6 | 1,352 | $ | 23.6 | ||||||
$ 30-45 | 1,585 | 4 | 39.31 | 1,458 | 39.01 | ||||||||
$ 45-60 | 1,177 | 7 | 53.99 | 491 | 52.24 | ||||||||
$ 60-76 | 861 | 9 | 75.19 | 17 | 74.89 | ||||||||
$ 16-76 | 4,975 | 6 | $ | 44.72 | 3,318 | $ | 34.86 | ||||||
Options exercised | 2014 | 2013 | 2012 | ||||||||||
Cash received | $ | 20,343 | $ | 33,630 | $ | 21,687 | |||||||
Aggregate intrinsic value | 25,284 | 33,028 | 18,195 | ||||||||||
Tax benefit realized | 8,200 | 11,200 | 6,200 | ||||||||||
Authorized shares | Available for Future | ||||||||||||
Total Shares | Issuance as of | ||||||||||||
Authorized | 26-Dec-14 | ||||||||||||
Stock Incentive Plan (2010) | 5,100 | 2,031 | |||||||||||
Employee Stock Purchase Plan (2006) | 7,000 | 5,094 | |||||||||||
Total | 12,100 | 7,125 | |||||||||||
Stock Options - Valuation assumptions | 2014 | 2013 | 2012 | ||||||||||
Expected life in years | 6.5 | 5.9 | 6.5 | ||||||||||
Interest rate | 2 | % | 1.3 | % | 1.3 | % | |||||||
Volatility | 36.1 | % | 35.4 | % | 36.6 | % | |||||||
Dividend yield | 1.5 | % | 1.6 | % | 1.8 | % | |||||||
Weighted average fair value per share | $ | 24.83 | $ | 19.44 | $ | 15.6 | |||||||
Employee Stock Purchase Plan - Valuation assumptions | 2014 | 2013 | 2012 | ||||||||||
Expected life in years | 1 | 1 | 1 | ||||||||||
Interest rate | 0.1 | % | 0.2 | % | 0.2 | % | |||||||
Volatility | 21.4 | % | 26 | % | 40.6 | % | |||||||
Dividend yield | 1.4 | % | 1.7 | % | 1.7 | % | |||||||
Weighted average fair value per share | $ | 17.81 | $ | 14.16 | $ | 15.58 |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | |||||||||
Dec. 26, 2014 | ||||||||||
Earnings Per Share Details [Abstract] | ||||||||||
Computation of basic and diluted earnings per share | 2014 | 2013 | 2012 | |||||||
Net earnings available to common shareholders | $ | 225,573 | $ | 210,822 | $ | 149,126 | ||||
Weighted average shares outstanding for basic earnings per share | 60,148 | 61,203 | 60,451 | |||||||
Dilutive effect of stock options computed based on the treasury | ||||||||||
stock method using the average market price | 1,597 | 1,587 | 1,260 | |||||||
Weighted average shares outstanding for diluted earnings per share | 61,745 | 62,790 | 61,711 | |||||||
Basic earnings per share | $ | 3.75 | $ | 3.44 | $ | 2.47 | ||||
Diluted earnings per share | $ | 3.65 | $ | 3.36 | $ | 2.42 |
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 26, 2014 | ||||||||||||||||||||
Retirement Benefits Tables [Abstract] | ||||||||||||||||||||
Plan assets by category and fair value measurement level | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
26-Dec-14 | ||||||||||||||||||||
Equity | ||||||||||||||||||||
U.S. Large Cap | $ | 92,272 | $ | - | $ | 92,272 | $ | - | ||||||||||||
U.S. Small/Mid Cap | 14,948 | - | 14,948 | - | ||||||||||||||||
International | 45,958 | - | 45,958 | - | ||||||||||||||||
Total Equity | 153,178 | - | 153,178 | - | ||||||||||||||||
Fixed income | 53,548 | - | 40,693 | 12,855 | ||||||||||||||||
Insurance contract | 28,899 | - | - | 28,899 | ||||||||||||||||
Real estate and other | 41,583 | 1,356 | 15,008 | 25,219 | ||||||||||||||||
Total | $ | 277,208 | $ | 1,356 | $ | 208,879 | $ | 66,973 | ||||||||||||
27-Dec-13 | ||||||||||||||||||||
Equity | ||||||||||||||||||||
U.S. Large Cap | $ | 95,025 | $ | - | $ | 95,025 | $ | - | ||||||||||||
U.S. Small/Mid Cap | 18,020 | - | 18,020 | - | ||||||||||||||||
International | 69,140 | - | 69,140 | - | ||||||||||||||||
Total Equity | 182,185 | - | 182,185 | - | ||||||||||||||||
Fixed income | 48,718 | - | 40,158 | 8,560 | ||||||||||||||||
Real estate and other | 49,704 | 1,149 | 31,271 | 17,284 | ||||||||||||||||
Total | $ | 280,607 | $ | 1,149 | $ | 253,614 | $ | 25,844 | ||||||||||||
Level 3 plan assets activity | 2014 | 2013 | ||||||||||||||||||
Balance, beginning of year | $ | 25,844 | $ | 15,138 | ||||||||||||||||
Transfer from level 2 (insurance contract) | 31,271 | - | ||||||||||||||||||
Purchases | 12,914 | 14,277 | ||||||||||||||||||
Redemptions | -3,849 | -5,351 | ||||||||||||||||||
Change in unrealized gains (losses) | 793 | 1,780 | ||||||||||||||||||
Balance, end of year | $ | 66,973 | $ | 25,844 | ||||||||||||||||
Funded status of plans | Pension Benefits | Postretirement Medical Benefits | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||
Obligation, beginning of year | $ | 352,271 | $ | 359,701 | $ | 21,342 | $ | 23,472 | ||||||||||||
Service cost | 6,846 | 7,447 | 486 | 626 | ||||||||||||||||
Interest cost | 15,944 | 14,149 | 981 | 961 | ||||||||||||||||
Actuarial loss (gain) | 44,290 | -15,653 | 1,037 | -2,582 | ||||||||||||||||
Plan changes | - | 3,197 | - | - | ||||||||||||||||
Benefit payments | -23,593 | -10,762 | -1,082 | -1,135 | ||||||||||||||||
Settlements | - | -7,430 | - | - | ||||||||||||||||
Exchange rate changes | -6,066 | 1,622 | - | - | ||||||||||||||||
Obligation, end of year | $ | 389,692 | $ | 352,271 | $ | 22,764 | $ | 21,342 | ||||||||||||
Change in plan assets | ||||||||||||||||||||
Fair value, beginning of year | $ | 280,607 | $ | 246,606 | $ | - | $ | - | ||||||||||||
Actual return on assets | 21,622 | 40,280 | - | - | ||||||||||||||||
Employer contributions | 1,814 | 10,728 | 1,082 | 1,135 | ||||||||||||||||
Benefit payments | -23,593 | -10,762 | -1,082 | -1,135 | ||||||||||||||||
Settlements | - | -7,241 | - | - | ||||||||||||||||
Exchange rate changes | -3,242 | 996 | - | - | ||||||||||||||||
Fair value, end of year | $ | 277,208 | $ | 280,607 | $ | - | $ | - | ||||||||||||
Funded status | $ | -112,484 | $ | -71,664 | $ | -22,764 | $ | -21,342 | ||||||||||||
Amounts recognized in balance sheets | Amounts recognized in consolidated balance sheets | |||||||||||||||||||
Current liabilities | $ | 1,308 | $ | 1,116 | $ | 1,165 | $ | 1,256 | ||||||||||||
Non-current liabilities | 111,176 | 70,548 | 21,599 | 20,086 | ||||||||||||||||
Total liabilities | $ | 112,484 | $ | 71,664 | $ | 22,764 | $ | 21,342 | ||||||||||||
Accumulated benefit obligation in excess of plan assets | 2014 | 2013 | ||||||||||||||||||
Projected benefit obligation | $ | 389,692 | $ | 352,271 | ||||||||||||||||
Accumulated benefit obligation | 360,945 | 326,030 | ||||||||||||||||||
Fair value of plan assets | 277,208 | 280,607 | ||||||||||||||||||
Components of Net Periodic Benefic Cost | Pension Benefits | Postretirement Medical Benefits | ||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Service cost-benefits earned during the period | $ | 6,846 | $ | 7,447 | $ | 6,414 | $ | 486 | $ | 626 | $ | 589 | ||||||||
Interest cost on projected benefit obligation | 15,944 | 14,149 | 13,729 | 981 | 961 | 986 | ||||||||||||||
Expected return on assets | -21,253 | -18,508 | -15,907 | - | - | - | ||||||||||||||
Amortization of prior service cost (credit) | 320 | 8 | -5 | -658 | -658 | -658 | ||||||||||||||
Amortization of net loss (gain) | 4,929 | 10,456 | 10,814 | 15 | 480 | 395 | ||||||||||||||
Cost of pension plans which are not significant | ||||||||||||||||||||
and have not adopted ASC 715 | 80 | 94 | 121 | N/A | N/A | N/A | ||||||||||||||
Net periodic benefit cost | $ | 6,866 | $ | 13,646 | $ | 15,166 | $ | 824 | $ | 1,409 | $ | 1,312 | ||||||||
Amounts recognized in other comprehensive income | Pension Benefits | Postretirement Medical Benefits | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net loss (gain) arising during the period | $ | 42,733 | $ | -37,284 | $ | 1,037 | $ | -2,582 | ||||||||||||
Prior service cost (credit) arising during the period | - | 3,197 | - | - | ||||||||||||||||
Amortization of net gain (loss) | -4,929 | -10,456 | -15 | -480 | ||||||||||||||||
Amortization of prior service credit (cost) | -320 | -8 | 658 | 658 | ||||||||||||||||
Total | $ | 37,484 | $ | -44,551 | $ | 1,680 | $ | -2,404 | ||||||||||||
Amounts included in accumulated other comprehensive income | Pension Benefits | Postretirement Medical Benefits | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Prior service cost (credit) | $ | 2,658 | $ | 3,271 | $ | -1,786 | $ | -2,444 | ||||||||||||
Net loss | 111,298 | 73,200 | 4,347 | 3,325 | ||||||||||||||||
Net before income taxes | 113,956 | 76,471 | 2,561 | 881 | ||||||||||||||||
Income taxes | -39,011 | -26,903 | -922 | -317 | ||||||||||||||||
Net | $ | 74,945 | $ | 49,568 | $ | 1,639 | $ | 564 | ||||||||||||
Amounts in AOCI expected to be recognized as cost in next year | Postretirement | |||||||||||||||||||
Pension | Medical | |||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
Prior service cost (credit) | $ | 295 | $ | -676 | ||||||||||||||||
Net loss (gain) | 8,922 | 271 | ||||||||||||||||||
Net before income taxes | 9,217 | -405 | ||||||||||||||||||
Income taxes | -3,318 | 146 | ||||||||||||||||||
Net | $ | 5,899 | $ | -259 | ||||||||||||||||
Assumptions used to determine obligations and cost | Pension Benefits | Postretirement Medical Benefits | ||||||||||||||||||
Weighted average assumptions | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
U.S. Plans | ||||||||||||||||||||
Discount rate | 4.2 | % | 5 | % | 4.2 | % | 5 | % | ||||||||||||
Rate of compensation increase | 3 | % | 3 | % | N/A | N/A | ||||||||||||||
Non-U.S. Plans | ||||||||||||||||||||
Discount rate | 1.5 | % | 2.5 | % | N/A | N/A | ||||||||||||||
Rate of compensation increase | 1.3 | % | 1.3 | % | N/A | N/A | ||||||||||||||
Pension Benefits | Postretirement Medical Benefits | |||||||||||||||||||
Weighted average assumptions | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
U.S. Plans | ||||||||||||||||||||
Discount rate | 5 | % | 4.2 | % | 4.6 | % | 5 | % | 4.2 | % | 4.6 | % | ||||||||
Rate of compensation increase | 3 | % | 3 | % | 3 | % | N/A | N/A | N/A | |||||||||||
Expected return on assets | 8.5 | % | 8.5 | % | 8.5 | % | N/A | N/A | N/A | |||||||||||
Non-U.S. Plans | ||||||||||||||||||||
Discount rate | 2.5 | % | 2.3 | % | 2.9 | % | N/A | N/A | N/A | |||||||||||
Rate of compensation increase | 1.3 | % | 1.2 | % | 1.2 | % | N/A | N/A | N/A | |||||||||||
Expected return on assets | 2 | % | 3 | % | 3 | % | N/A | N/A | N/A | |||||||||||
Estimated future benefit payments | Postretirement | |||||||||||||||||||
Pension | Medical | |||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
2015 | $ | 15,290 | $ | 1,165 | ||||||||||||||||
2016 | 17,085 | 1,259 | ||||||||||||||||||
2017 | 16,299 | 1,310 | ||||||||||||||||||
2018 | 17,417 | 1,373 | ||||||||||||||||||
2019 | 18,248 | 1,440 | ||||||||||||||||||
Years 2020 - 2024 | 105,418 | 7,873 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 26, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Lease commitments | Vehicles & | ||||||||
Buildings | Equipment | Total | |||||||
2015 | $ | 3,472 | $ | 2,896 | $ | 6,368 | |||
2016 | 2,556 | 2,086 | 4,642 | ||||||
2017 | 2,307 | 1,481 | 3,788 | ||||||
2018 | 1,983 | 882 | 2,865 | ||||||
2019 | 2,023 | 607 | 2,630 | ||||||
Thereafter | 7,942 | 442 | 8,384 | ||||||
Total | $ | 20,283 | $ | 8,394 | $ | 28,677 |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||
Dec. 26, 2014 | |||||||||||
Finishing Group | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash and cash equivalents | $ | 6,007 | ||||||||
Accounts receivable | 17,835 | ||||||||||
Inventories | 21,733 | ||||||||||
Other current assets | 2,534 | ||||||||||
Property, plant and equipment | 18,359 | ||||||||||
Other non-current assets | 50 | ||||||||||
Identifiable intangible assets | 150,500 | ||||||||||
Goodwill | 86,056 | ||||||||||
Total assets acquired | 303,074 | ||||||||||
Current liabilities assumed | -27,434 | ||||||||||
Non-current liabilities assumed | -7,984 | ||||||||||
Deferred income taxes | -26,105 | ||||||||||
Net assets acquired, Powder Finishing | 241,551 | ||||||||||
Investment in businesses held separate | 426,813 | ||||||||||
Total purchase consideration | $ | 668,364 | |||||||||
Powder Finishing | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Schedule of identifiable intangible assets and estimated usefule life | Estimated | ||||||||||
Life (years) | |||||||||||
Customer relationships | $ | 103,500 | 14 | ||||||||
Developed technology | 9,600 | 11 | |||||||||
Trade names | 37,400 | Indefinite | |||||||||
Total identifiable intangible assets | $ | 150,500 | |||||||||
Liquid Finishing | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Schedule of Operating Results of Business Held Separate [Table Text Block] | 2014 | 2013 | 2012 | ||||||||
Net Sales | $ | 288,231 | $ | 278,543 | $ | 269,099 | |||||
Operating Earnings | 62,605 | 61,174 | 52,256 | ||||||||
Alco | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash and cash equivalents | $ | 1,929 | ||||||||
Accounts receivable | 9,821 | ||||||||||
Inventories | 9,565 | ||||||||||
Other current assets | 343 | ||||||||||
Property, plant and equipment | 1,047 | ||||||||||
Other non-current assets | 225 | ||||||||||
Identifiable intangible assets | 30,348 | ||||||||||
Goodwill | 73,445 | ||||||||||
Total assets acquired | 126,723 | ||||||||||
Current liabilities assumed | -3,291 | ||||||||||
Deferred income taxes | -6,266 | ||||||||||
Net assets acquired | $ | 117,166 | |||||||||
Schedule of identifiable intangible assets and estimated usefule life | Estimated | ||||||||||
Life (years) | |||||||||||
Customer relationships | $ | 22,883 | 10 | ||||||||
Trade names | 7,465 | Indefinite | |||||||||
Total identifiable intangible assets | $ | 30,348 |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 26, 2014 | |||||||||||||
Quarterly Financial Information (unaudited) [Abstract] | |||||||||||||
Quarterly Financial Information (unaudited) | First | Second | Third | Fourth | |||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
2014 | |||||||||||||
Net Sales | $ | 289,962 | $ | 322,549 | $ | 302,614 | $ | 306,005 | |||||
Gross Profit | 159,312 | 176,850 | 165,814 | 164,760 | |||||||||
Net Earnings | 50,745 | 66,236 | 59,551 | 49,041 | |||||||||
Basic Net Earnings per Common Share | $ | 0.83 | $ | 1.1 | $ | 0.99 | $ | 0.83 | |||||
Diluted Net Earnings per Common Share | 0.81 | 1.07 | 0.97 | 0.8 | |||||||||
Cash Dividends Declared per Common Share | 0.28 | 0.28 | 0.28 | 0.3 | |||||||||
2013 | |||||||||||||
Net Sales | $ | 269,046 | $ | 286,020 | $ | 277,035 | $ | 271,923 | |||||
Gross Profit | 150,644 | 158,739 | 150,873 | 147,199 | |||||||||
Net Earnings | 52,130 | 57,843 | 56,101 | 44,748 | |||||||||
Basic Net Earnings per Common Share | $ | 0.86 | $ | 0.94 | $ | 0.91 | $ | 0.73 | |||||
Diluted Net Earnings per Common Share | 0.84 | 0.92 | 0.89 | 0.71 | |||||||||
Cash Dividends Declared per Common Share | 0.25 | 0.25 | 0.25 | 0.28 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 26, 2014 | ||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts | |||||||||||||||||||||||||||||||
Graco Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Balance at | charged to | Deductions | Other | Balance at | ||||||||||||||||||||||||||||
beginning | costs and | from | add | end | ||||||||||||||||||||||||||||
of year | expenses | reserves1 | (deduct)2 | of year | ||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||
26-Dec-14 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,300 | $ | 800 | $ | 300 | $ | 600 | $ | 2,400 | ||||||||||||||||||||||
Allowance for returns and credits | 5,000 | 22,400 | 21,700 | - | 5,700 | |||||||||||||||||||||||||||
$ | 6,300 | $ | 23,200 | $ | 22,000 | $ | 600 | $ | 8,100 | |||||||||||||||||||||||
27-Dec-13 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,100 | $ | 600 | $ | 1,400 | $ | - | $ | 1,300 | ||||||||||||||||||||||
Allowance for returns and credits | 4,500 | 17,300 | 16,800 | - | 5,000 | |||||||||||||||||||||||||||
$ | 6,600 | $ | 17,900 | $ | 18,200 | $ | - | $ | 6,300 | |||||||||||||||||||||||
28-Dec-12 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,400 | $ | 500 | $ | 100 | $ | 300 | $ | 2,100 | ||||||||||||||||||||||
Allowance for returns and credits | 4,100 | 13,700 | 13,300 | - | 4,500 | |||||||||||||||||||||||||||
$ | 5,500 | $ | 14,200 | $ | 13,400 | $ | 300 | $ | 6,600 | |||||||||||||||||||||||
1 | For doubtful accounts, represents amounts determined to be uncollectible and charged against reserve, net of collections on accounts previously charged against reserves. For returns and credits, represents amounts of credits issued and returns processed. | |||||||||||||||||||||||||||||||
2 | Includes amounts assumed or established in connection with acquisitions and effects of foreign currency translation. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 26, 2014 | Dec. 27, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ||
Cost-method investment | $421,767,000 | $422,297,000 |
Other Current Assets | ||
Prepaid income taxes | 10,849,000 | 7,894,000 |
Prepaid expenses and other | 8,525,000 | 6,739,000 |
Total | 19,374,000 | 14,633,000 |
Goodwill Roll Forward | ||
Beginning balance | 189,967,000 | 181,228,000 |
Additions from business acquisitions | 114,331,000 | 6,626,000 |
Foreign currency translation | -11,724,000 | 2,998,000 |
Other | -885,000 | |
Ending balance | 292,574,000 | 189,967,000 |
Purchase price allocated to goodwill | 292,574,000 | 189,967,000 |
Industrial | ||
Goodwill Roll Forward | ||
Beginning balance | 157,738,000 | 148,999,000 |
Additions from business acquisitions | 114,331,000 | 6,626,000 |
Foreign currency translation | -11,724,000 | 2,998,000 |
Other | -885,000 | |
Ending balance | 260,345,000 | 157,738,000 |
Purchase price allocated to goodwill | 260,345,000 | 157,738,000 |
Contractor | ||
Goodwill Roll Forward | ||
Beginning balance | 12,732,000 | 12,732,000 |
Additions from business acquisitions | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other | 0 | |
Ending balance | 12,732,000 | 12,732,000 |
Purchase price allocated to goodwill | 12,732,000 | 12,732,000 |
Lubrication | ||
Goodwill Roll Forward | ||
Beginning balance | 19,497,000 | 19,497,000 |
Additions from business acquisitions | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other | 0 | |
Ending balance | 19,497,000 | 19,497,000 |
Purchase price allocated to goodwill | 19,497,000 | 19,497,000 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 10 to 30 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | lesser of 5 to 10 years or life of lease | |
Manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | lesser of 5 to 10 years or life of equipment | |
Office, warehouse and automotive equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 3 to 10 years | |
Trade accounts receivable | ||
Accounts Receivable [Line Items] | ||
Accounts Receivable Net | 207,000,000 | 178,000,000 |
Other receivables | ||
Accounts Receivable [Line Items] | ||
Accounts Receivable Net | 8,000,000 | 5,000,000 |
Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash surrender value of life insurance | 13,187,000 | 12,611,000 |
Forward exchange contracts | 280,000 | 291,000 |
Total assets at fair value | 13,467,000 | 12,902,000 |
Deferred compensation | $2,676,000 | $2,296,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Other Intangibles) (Details) (USD $) | 12 Months Ended | ||
Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $161,587,000 | $137,505,000 | |
Accumulated Amortization | -29,118,000 | -32,255,000 | |
Foreign Currency Translation | -7,989,000 | 1,576,000 | |
Book Value | 124,480,000 | 106,826,000 | |
Not Subject to Amortization | |||
Total Original Cost | 216,852,000 | 177,905,000 | |
Total Book Value | 176,278,000 | 147,940,000 | |
Current and future amortization expense | |||
Amortization of Intangible Assets | 11,600,000 | 12,500,000 | 15,000,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 12,400,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 12,100,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 11,800,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 11,700,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 11,600,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 64,900,000 | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 143,144,000 | 121,205,000 | |
Accumulated Amortization | -21,948,000 | -26,377,000 | |
Foreign Currency Translation | -7,334,000 | 1,458,000 | |
Book Value | 113,862,000 | 96,286,000 | |
Customer Relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life (years) | 3 years | 3 years | |
Customer Relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life (years) | 14 years | 14 years | |
Patents, proprietary technology and product documentation | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 18,268,000 | 16,125,000 | |
Accumulated Amortization | -7,126,000 | -5,869,000 | |
Foreign Currency Translation | -655,000 | 118,000 | |
Book Value | 10,487,000 | 10,374,000 | |
Patents, proprietary technology and product documentation | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life (years) | 3 years | 3 years | |
Patents, proprietary technology and product documentation | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life (years) | 11 years | 11 years | |
Trademarks, trade names and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 175,000 | 175,000 | |
Accumulated Amortization | -44,000 | -9,000 | |
Foreign Currency Translation | 0 | 0 | |
Book Value | 131,000 | 166,000 | |
Trademarks, trade names and other | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life (years) | 5 years | 5 years | |
Trademarks, trade names and other | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Life (years) | 5 years | 5 years | |
Trade Names | |||
Not Subject to Amortization | |||
Cost | 55,265,000 | 40,400,000 | |
Foreign Currency Translation | -3,467,000 | 714,000 | |
Book Value | $51,798,000 | $41,114,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Other) (Details) (USD $) | 12 Months Ended | |
Dec. 26, 2014 | Dec. 27, 2013 | |
Components of other assets [Abstract] | ||
Cash surrender value of life insurance | $13,187,000 | $12,611,000 |
Capitalized software | 3,596,000 | 3,448,000 |
Equity method investment | 5,859,000 | 5,569,000 |
Deposits and other | 3,565,000 | 3,017,000 |
Total | 26,207,000 | 24,645,000 |
Other Assets Details [Abstract] | ||
Life insurance premiums paid amount | 1,500,000 | |
Change in cash surrender value of life insurance | 1,600,000 | |
Capitalized Computer Software, Estimated Useful Life, Minimum | 2 years | |
Capitalized Computer Software, Estimated Useful Life, Maximum | 5 years | |
Other Current Liabilities | ||
Accrued self-insurance retentions | 7,089,000 | 6,381,000 |
Accrued warranty and service liabilities | 7,609,000 | 7,771,000 |
Accrued trade promotions | 7,697,000 | 7,245,000 |
Payable for employee stock purchases | 9,126,000 | 7,908,000 |
Customer advances and deferred revenue | 8,918,000 | 11,693,000 |
Income taxes payable | 5,997,000 | 4,561,000 |
Other | 25,157,000 | 23,608,000 |
Total | 71,593,000 | 69,167,000 |
Accrued warranty and service liabilities | ||
Balance, beginning of year | 7,771,000 | 7,943,000 |
Assumed in business acquisition | 12,000 | 0 |
Charged to expense | 6,069,000 | 6,119,000 |
Margin on parts sales reversed | 1,920,000 | 3,819,000 |
Reductions for claims settled | -8,163,000 | -10,110,000 |
Balance, end of year | 7,609,000 | 7,771,000 |
Revenue Recognition Policy Details [Abstract] | ||
Sales returns as a percentage of sales | 2.00% | |
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Foreign Currency Derivatives | 22,000,000 | |
Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
UnrealizedGainOnDerivatives | 280,000 | 306,000 |
UnrealizedLossOnDerivatives | 0 | -15,000 |
Foreign Exchange Contract [Member] | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Net gains on derivative contracts | $280,000 | $291,000 |
Segment_Information_by_Reporta
Segment Information (by Reportable Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $306,005 | $302,614 | $322,549 | $289,962 | $271,923 | $277,035 | $286,020 | $269,046 | $1,221,130 | $1,104,024 | $1,012,456 |
Operating earnings | 308,925 | 279,769 | 224,677 | ||||||||
Segment Assets Reconciliation | 1,544,778 | 1,327,228 | 1,544,778 | 1,327,228 | |||||||
Industrial | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 727,389 | 652,344 | 603,398 | ||||||||
Operating earnings | 225,337 | 211,265 | 186,129 | ||||||||
Segment Assets Reconciliation | 770,623 | 591,135 | 770,623 | 591,135 | |||||||
Contractor | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 375,574 | 342,546 | 298,811 | ||||||||
Operating earnings | 81,892 | 72,245 | 54,310 | ||||||||
Segment Assets Reconciliation | 176,757 | 152,300 | 176,757 | 152,300 | |||||||
Lubrication | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 118,167 | 109,134 | 110,247 | ||||||||
Operating earnings | 26,403 | 22,512 | 22,535 | ||||||||
Segment Assets Reconciliation | 83,148 | 82,503 | 83,148 | 82,503 | |||||||
Unallocated Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating earnings | -24,707 | -26,253 | -38,297 | ||||||||
Segment Assets Reconciliation | $514,250 | $501,290 | $514,250 | $501,290 |
Segment_Information_Geographic
Segment Information (Geographic Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Geographic Information [Line Items] | |||||||||||
Net Sales | $306,005 | $302,614 | $322,549 | $289,962 | $271,923 | $277,035 | $286,020 | $269,046 | $1,221,130 | $1,104,024 | $1,012,456 |
Long-Lived Assets | 161,230 | 151,717 | 161,230 | 151,717 | |||||||
US | |||||||||||
Geographic Information [Line Items] | |||||||||||
Net Sales | 577,359 | 498,478 | 440,757 | ||||||||
Long-Lived Assets | 131,131 | 120,262 | 131,131 | 120,262 | |||||||
Other Countries | |||||||||||
Geographic Information [Line Items] | |||||||||||
Net Sales | 643,771 | 605,546 | 571,699 | ||||||||
Long-Lived Assets | $30,099 | $31,455 | $30,099 | $31,455 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 26, 2014 | Dec. 27, 2013 |
Inventories [Abstract] | ||
Finished products and components | $87,384,000 | $65,963,000 |
Products and components in various stages of completion | 47,682,000 | 41,458,000 |
Raw materials and purchased components | 69,212,000 | 69,051,000 |
Inventory gross total | 204,278,000 | 176,472,000 |
Reduction to LIFO cost | -44,481,000 | -42,685,000 |
Total | 159,797,000 | 133,787,000 |
Inventories valued under the LIFO method | $84,000,000 | $76,900,000 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | |
Property, Plant and Equipment, Net [Abstract] | |||
Land and improvements | $16,311,000 | $16,506,000 | |
Buildings and improvements | 123,126,000 | 118,460,000 | |
Manufacturing equipment | 242,978,000 | 222,810,000 | |
Office, warehouse and automotive equipment | 39,219,000 | 35,887,000 | |
Additions in progress | 12,117,000 | 14,224,000 | |
Total property, plant and equipment | 433,751,000 | 407,887,000 | |
Accumulated depreciation | -272,521,000 | -256,170,000 | |
Net property, plant and equipment | 161,230,000 | 151,717,000 | |
Depreciation | $24,100,000 | $23,400,000 | $22,200,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $266,627,000 | $238,928,000 | $184,132,000 |
Foreign | 48,446,000 | 49,894,000 | 33,194,000 |
Earnings Before Income Taxes | 315,073,000 | 288,822,000 | 217,326,000 |
Current Income Tax Expense (Benefit) [Abstract] | |||
Federal | 73,584,000 | 64,753,000 | 61,989,000 |
State and local | 2,775,000 | 2,470,000 | 5,180,000 |
Foreign | 12,263,000 | 11,569,000 | 11,218,000 |
Total Current | 88,622,000 | 78,792,000 | 78,387,000 |
Deferred Income Tax Expense (Benefit) [Abstract] | |||
Domestic | 2,497,000 | -553,000 | -5,431,000 |
Foreign | -1,619,000 | -239,000 | -4,756,000 |
Total Deferred | 878,000 | -792,000 | -10,187,000 |
Total income tax expense | 89,500,000 | 78,000,000 | 68,200,000 |
Income taxes paid | 92,100,000 | 78,000,000 | 71,700,000 |
Federal income tax rate reconciliation | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Tax effect of international operations | -1.00% | -1.00% | -1.00% |
State taxes, net of federal effect | 1.00% | 1.00% | 1.00% |
U.S. general business tax credits | -1.00% | -2.00% | 0.00% |
Domestic production deduction | -3.00% | -3.00% | -2.00% |
Dividends from Liquid Finishing | -3.00% | -3.00% | -2.00% |
Other | 0.00% | 0.00% | 0.00% |
Effective tax rate | 28.00% | 27.00% | 31.00% |
Deferred Tax Assets and Liabilities [Line Items] | |||
Deferred income taxes, current | 19,969,000 | 18,827,000 | |
Net deferred tax assets | 24,754,000 | 17,163,000 | |
Deferred tax assets | 95,300,000 | 78,600,000 | |
Deferred tax liabilities | 70,600,000 | 61,400,000 | |
Current | |||
Deferred Tax Assets and Liabilities [Line Items] | |||
Inventory valuations | 9,163,000 | 8,825,000 | |
Self-insurance retention accruals | 2,098,000 | 1,887,000 | |
Warranty reserves | 2,074,000 | 2,089,000 | |
Vacation accruals | 3,023,000 | 2,740,000 | |
Bad debt reserves | 2,409,000 | 1,961,000 | |
Other | 1,202,000 | 1,325,000 | |
Deferred income taxes, current | 19,969,000 | 18,827,000 | |
Included in other current liabilities | -1,743,000 | -1,095,000 | |
Total Current | 18,226,000 | 17,732,000 | |
Noncurrent | |||
Deferred Tax Assets and Liabilities [Line Items] | |||
Unremitted earnings of consolidated foreign subsidiaries | -7,316,000 | -6,316,000 | |
Excess of tax over book depreciation | -50,664,000 | -42,322,000 | |
Pension liability | 35,247,000 | 20,798,000 | |
Postretirement medical | 7,743,000 | 8,097,000 | |
Acquisition costs | 3,369,000 | 3,644,000 | |
Stock compensation | 16,657,000 | 14,401,000 | |
Deferred compensation | 1,350,000 | 1,193,000 | |
Other | 142,000 | -64,000 | |
Total Non-current | $6,528,000 | ($569,000) |
Debt_Details
Debt (Details) (USD $) | Dec. 26, 2014 | Dec. 27, 2013 |
Debt Instrument [Line Items] | ||
Estimated fair value of debt | $330,000,000 | $320,000,000 |
Series A maturing March 2018 | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 4.00% | |
Amount | 75,000,000 | 75,000,000 |
Series B maturing March 2023 | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 5.01% | |
Amount | 75,000,000 | 75,000,000 |
Series C maturing January 2020 | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 4.88% | |
Amount | 75,000,000 | 75,000,000 |
Series D maturing July 2026 | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 5.35% | |
Amount | 75,000,000 | 75,000,000 |
Unsecured revolving credit facility maturing June 2019 | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 1.28% | |
Amount | 315,000,000 | 108,370,000 |
Notes payable to banks maturing 2015 | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 0.85% | |
Amount | 5,016,000 | 9,584,000 |
Total debt, including current portion | ||
Debt Instrument [Line Items] | ||
Amount | $620,016,000 | $417,954,000 |
Debt_Credit_Facility_and_Other
Debt (Credit Facility and Other Disclosures) (Details) (USD $) | 12 Months Ended | ||
Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | |
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | $550,000,000 | ||
Interest rate description | Under terms of the amended revolving credit agreement, loans denominated in U.S. dollars bear interest, at the Company’s option, at either a base rate or a LIBOR-based rate. Loans denominated in currencies other than U.S. dollars bear interest at a LIBOR-based rate. The base rate is an annual rate equal to a margin ranging from zero percent to 0.875 percent, depending on the Company’s cash flow leverage ratio (debt to earnings before interest, taxes, depreciation, amortization and extraordinary non-operating or non-cash charges and expenses) plus the highest of (i) the bank’s prime rate, (ii) the federal funds rate plus 0.5 percent or (iii) one-month LIBOR plus 1.5 percent. In general, LIBOR-based loans bear interest at LIBOR plus 1 percent to 1.875 percent, depending on the Company’s cash flow leverage ratio. | ||
Annual Maturities of Debt | |||
2015 | 5,016,000 | ||
2016 | 0 | ||
2017 | 0 | ||
2018 | 75,000,000 | ||
2019 | 315,000,000 | ||
Thereafter | 225,000,000 | ||
Interest Paid | 18,600,000 | 18,300,000 | 19,000,000 |
Committed Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 500,000,000 | ||
Unused portion of credit facility | 200,000,000 | ||
Committed Facility | Domestic Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - swingline facility | 50,000,000 | ||
Committed Facility | Domestic Line of Credit | Minimum | |||
Line of Credit Facility [Line Items] | |||
Loan commitment fee percentage | 0.15% | ||
Committed Facility | Domestic Line of Credit | Maximum | |||
Line of Credit Facility [Line Items] | |||
Loan commitment fee percentage | 0.30% | ||
Committed Facility | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount - credit facility | 50,000,000 | ||
Uncommitted Facility | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Unused portion of credit facility | $31,000,000 | ||
Uncommitted Facility | Foreign Line of Credit | Maximum | |||
Line of Credit Facility [Line Items] | |||
Loan commitment fee percentage | 0.15% |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | ($46,349) | ($83,745) | ($76,481) |
Other comprehensive income (loss) before reclassifications | -57,498 | 30,915 | -14,199 |
Amounts reclassified from accumulated other comprehensive income | 3,111 | 6,481 | 6,935 |
Ending balance | -100,736 | -46,349 | -83,745 |
Reclassification detail | |||
Reclassification after tax | 3,111 | 6,481 | 6,935 |
Pension and Postretirement Medical | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -50,132 | -79,716 | -75,658 |
Other comprehensive income (loss) before reclassifications | -29,563 | 23,103 | -10,993 |
Amounts reclassified from accumulated other comprehensive income | 3,111 | 6,481 | 6,935 |
Ending balance | -76,584 | -50,132 | -79,716 |
Reclassification detail | |||
Reclassification before tax | 4,606 | 10,286 | 10,546 |
Income tax (benefit) | -1,495 | -3,805 | -3,611 |
Reclassification after tax | 3,111 | 6,481 | 6,935 |
Pension and Postretirement Medical | Cost of products sold | |||
Reclassification detail | |||
Reclassification before tax | 1,701 | 3,635 | 3,900 |
Pension and Postretirement Medical | Product development | |||
Reclassification detail | |||
Reclassification before tax | 714 | 1,699 | 1,728 |
Pension and Postretirement Medical | Selling, marketing and distribution | |||
Reclassification detail | |||
Reclassification before tax | 1,371 | 2,828 | 2,886 |
Pension and Postretirement Medical | General and administrative | |||
Reclassification detail | |||
Reclassification before tax | 820 | 2,124 | 2,032 |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 3,783 | -4,029 | -823 |
Other comprehensive income (loss) before reclassifications | -27,935 | 7,812 | -3,206 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Ending balance | -24,152 | 3,783 | -4,029 |
Reclassification detail | |||
Reclassification after tax | $0 | $0 | $0 |
Shareholders_Equity_Narratives
Shareholders' Equity (Narratives) (Details) (USD $) | Dec. 26, 2014 |
Cumulative Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Preferred stock authorized | 22,549 |
Preferred stock par value | $100 |
Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Preferred stock authorized | 3,000,000 |
Preferred stock par value | $1 |
ShareBased_Awards_Purchase_Pla1
Share-Based Awards, Purchase Plans and Compensation Cost (Stock Options Activity) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Options, Outstanding [Roll Forward] | ||||
Outstanding, beginning | 5,149 | 5,192 | 5,478 | |
Granted | 475 | 969 | 566 | |
Exercised | -607 | -990 | -805 | |
Canceled | -42 | -22 | -47 | |
Outstanding, ending | 4,975 | 5,149 | 5,192 | |
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, beginning | $41.03 | $34.85 | $32.12 | |
Granted | $74.62 | $65.97 | $50.33 | |
Exercised | $35.73 | $33.04 | $27.14 | |
Canceled | $61.35 | $40.71 | $35.24 | |
Outstanding, ending | $44.72 | $41.03 | $34.85 | |
Options, Exercisable | 3,318 | 3,311 | 3,194 | 3,211 |
Weighted Average Exercise Price of Exercisable Options | $34.86 | $33.20 | $32.99 | $32.27 |
ShareBased_Awards_Purchase_Pla2
Share-Based Awards, Purchase Plans and Compensation Cost (Stock Options by Exercise Price Range) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 |
$ 16-30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 1,352 |
Options Outsanding Weighted Avg. Remaining Contractual Term in Years | 4 years |
Options Outstanding Weighted Avg. Exercise Price | $23.60 |
Options Exercisable | 1,352 |
Options Exercisable Weighted Avg. Exercise Price | $23.60 |
$ 30-45 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 1,585 |
Options Outsanding Weighted Avg. Remaining Contractual Term in Years | 4 years |
Options Outstanding Weighted Avg. Exercise Price | $39.31 |
Options Exercisable | 1,458 |
Options Exercisable Weighted Avg. Exercise Price | $39.01 |
$ 45-60 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 1,177 |
Options Outsanding Weighted Avg. Remaining Contractual Term in Years | 7 years |
Options Outstanding Weighted Avg. Exercise Price | $53.99 |
Options Exercisable | 491 |
Options Exercisable Weighted Avg. Exercise Price | $52.24 |
$ 60-76 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 861 |
Options Outsanding Weighted Avg. Remaining Contractual Term in Years | 9 years |
Options Outstanding Weighted Avg. Exercise Price | $75.19 |
Options Exercisable | 17 |
Options Exercisable Weighted Avg. Exercise Price | $74.89 |
$ 16-76 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 4,975 |
Options Outsanding Weighted Avg. Remaining Contractual Term in Years | 6 years |
Options Outstanding Weighted Avg. Exercise Price | $44.72 |
Options Exercisable | 3,318 |
Options Exercisable Weighted Avg. Exercise Price | $34.86 |
ShareBased_Awards_Purchase_Pla3
Share-Based Awards, Purchase Plans and Compensation Cost (Stock Options Exercised and Authorized, and Valuation Assumptions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Cash received | $20,343 | $33,630 | $21,687 |
Aggregate intrinsic value | 25,284 | 33,028 | 18,195 |
Tax benefit realized | $8,200 | $11,200 | $6,200 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shares Authorized | 12,100 | ||
Available for Future Issuance | 7,125 | ||
Stock Options | |||
Fair value assumptions and methodology | |||
Expected life in years | 6 years 6 months | 5 years 11 months | 6 years 6 months |
Interest rate | 2.00% | 1.30% | 1.30% |
Volatility | 36.10% | 35.40% | 36.60% |
Dividend yield | 1.50% | 1.60% | 1.80% |
Weighted average fair value per share | $24.83 | $19.44 | $15.60 |
Stock Incentive Plan (2010) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shares Authorized | 5,100 | ||
Available for Future Issuance | 2,031 | ||
Employee Stock Purchase Plan (2006) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shares Authorized | 7,000 | ||
Available for Future Issuance | 5,094 | ||
Fair value assumptions and methodology | |||
Expected life in years | 1 year | 1 year | 1 year |
Interest rate | 0.10% | 0.20% | 0.20% |
Volatility | 21.40% | 26.00% | 40.60% |
Dividend yield | 1.40% | 1.70% | 1.70% |
Weighted average fair value per share | $17.81 | $14.16 | $15.58 |
ShareBased_Awards_Purchase_Pla4
Share-Based Awards, Purchase Plans and Compensation Cost (Narratives) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $17.20 | $16.50 | $12.40 |
Intrinsic value of exercisable option shares | 154.5 | ||
Exercisable option weighted average contractual term | 4 years 7 months | ||
Share options vested and expected to vest | 4,900,000 | ||
Aggregate intrinsic value of share options vested and expected to vest | 182.2 | ||
Weighted average exercise price of share options vested and expected to vest (per share) | $44.50 | ||
Weighted average contractual term of share options vested and expected to vest | 5 years 10 months | ||
Employee stock purchase plan shares granted | 193,084 | 196,913 | 238,621 |
Share-based compensation impact on net income | 12.8 | 12.6 | 9.5 |
Share-based compenstion impact on EPS | $0.21 | $0.20 | $0.15 |
Unrecognized compensation cost related to unvested options | 13.7 | ||
Weighted average recognition period for unvested options | 1 year 7 months | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 1 | 1.9 | 0.5 |
Stock Incentive Plan (2010) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period | 10 years | ||
Stock Incentive Plan (2010) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Stock Incentive Plan (2010) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Stock Incentive Plan (2010) | Nonemployee Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued under the plan | 4,867 | 6,079 | 7,656 |
Stock Incentive Plan (2010) | Restricted Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $0.30 | $0.50 | $0.40 |
Employee Stock Purchase Plan (2006) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share purchase price as percentage of fair value | 85.00% | ||
Stock purchase plan discount percentage | 15.00% |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Earnings Per Share Details [Abstract] | |||||||||||
Net earnings available to common shareholders | $49,041 | $59,551 | $66,236 | $50,745 | $44,748 | $56,101 | $57,843 | $52,130 | $225,573 | $210,822 | $149,126 |
Weighted average shares outstanding for basic earnings per share | 60,148 | 61,203 | 60,451 | ||||||||
Dilutive effect of stock options computed based on the treasury stock method using the average market price | 1,597 | 1,587 | 1,260 | ||||||||
Weighted average shares outstanding for diluted earnings per share | 61,745 | 62,790 | 61,711 | ||||||||
Basic earnings per share | $0.83 | $0.99 | $1.10 | $0.83 | $0.73 | $0.91 | $0.94 | $0.86 | $3.75 | $3.44 | $2.47 |
Diluted earnings per share | $0.80 | $0.97 | $1.07 | $0.81 | $0.71 | $0.89 | $0.92 | $0.84 | $3.65 | $3.36 | $2.42 |
Antidilutive options excluded from computation | 600,000 | 400,000 | 600,000 |
Retirement_Benefits_Plan_Asset
Retirement Benefits (Plan Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | $277,208 | $280,607 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 1,356 | 1,149 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 208,879 | 253,614 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, beginning of year | 25,844 | 15,138 |
Transfer from level 2 (insurance contract) | 31,271 | 0 |
Purchases | 12,914 | 14,277 |
Redemptions | -3,849 | -5,351 |
Change in unrealized gains (losses) | 793 | 1,780 |
Fair value, end of year | 66,973 | 25,844 |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 58.00% | |
Fair value, beginning of year | 182,185 | |
Fair value, end of year | 153,178 | |
Equity | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
Equity | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 153,178 | 182,185 |
Equity | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
U.S. Large Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 92,272 | 95,025 |
U.S. Large Cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
U.S. Large Cap | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 92,272 | 95,025 |
U.S. Large Cap | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
U.S. Small Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 14,948 | 18,020 |
U.S. Small Cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
U.S. Small Cap | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 14,948 | 18,020 |
U.S. Small Cap | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 45,958 | 69,140 |
International | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
International | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 45,958 | 69,140 |
International | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 31.00% | |
Fair value, beginning of year | 48,718 | |
Fair value, end of year | 53,548 | |
Fixed Income | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | 0 |
Fixed Income | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 40,693 | 40,158 |
Fixed Income | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 12,855 | 8,560 |
Insurance contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 28,899 | |
Insurance contract | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | |
Insurance contract | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 0 | |
Insurance contract | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 28,899 | |
Real Estate and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 11.00% | |
Fair value, beginning of year | 49,704 | |
Fair value, end of year | 41,583 | |
Real Estate and Other | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 1,356 | 1,149 |
Real Estate and Other | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | 15,008 | 31,271 |
Real Estate and Other | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, end of year | $25,219 | $17,284 |
Retirement_Benefits_Other_Tabu
Retirement Benefits (Other Tabular Disclosures) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Change in plan assets | |||
Fair value, beginning of year | $280,607 | ||
Fair value, end of year | 277,208 | 280,607 | |
Amounts recognized in consolidated balance sheets | |||
Non-current liabilities | 136,812 | 94,705 | |
Information for plans with accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 389,692 | 352,271 | |
Accumulated benefit obligation | 360,945 | 326,030 | |
Fair value of plan assets | 277,208 | 280,607 | |
Amounts recognized in other comprehensive (income) loss | |||
Total | 39,164 | -46,955 | 6,171 |
Pension Benefits | |||
Change in benefit obligation | |||
Obligation, beginning of year | 352,271 | 359,701 | |
Service cost | 6,846 | 7,447 | 6,414 |
Interest cost | 15,944 | 14,149 | 13,729 |
Actuarial loss (gain) | 44,290 | -15,653 | |
Plan changes | 0 | 3,197 | |
Benefit payments | -23,593 | -10,762 | |
Settlements | 0 | -7,430 | |
Exchange rate changes | -6,066 | 1,622 | |
Obligation, end of year | 389,692 | 352,271 | 359,701 |
Change in plan assets | |||
Fair value, beginning of year | 280,607 | 246,606 | |
Actual return on assets | 21,622 | 40,280 | |
Employer contributions | 1,814 | 10,728 | |
Benefit payments | -23,593 | -10,762 | |
Settlements | 0 | -7,241 | |
Exchange rate changes | -3,242 | 996 | |
Fair value, end of year | 277,208 | 280,607 | 246,606 |
Funded status | -112,484 | -71,664 | |
Amounts recognized in consolidated balance sheets | |||
Current liabilities | 1,308 | 1,116 | |
Non-current liabilities | 111,176 | 70,548 | |
Total liabilities | 112,484 | 71,664 | |
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | 6,846 | 7,447 | 6,414 |
Interest cost on projected benefit obligation | 15,944 | 14,149 | 13,729 |
Expected return on assets | -21,253 | -18,508 | -15,907 |
Amortization of prior service cost (credit) | 320 | 8 | -5 |
Amortization of net loss (gain) | 4,929 | 10,456 | 10,814 |
Cost of pension plans which are not significant and have not adopted ASC 715 | 80 | 94 | 121 |
Net periodic benefit cost | 6,866 | 13,646 | 15,166 |
Amounts recognized in other comprehensive (income) loss | |||
Net loss (gain) arising during the period | 42,733 | -37,284 | |
Prior service cost (credit) arising during the period | 0 | 3,197 | |
Amortization of net gain (loss) | -4,929 | -10,456 | |
Amortization of prior service credit (cost) | -320 | -8 | |
Total | 37,484 | -44,551 | |
Amounts recognized in accumulated ther comprehensive income | |||
Prior service cost (credit) | 2,658 | 3,271 | |
Net loss | 111,298 | 73,200 | |
Net before income taxes | 113,956 | 76,471 | |
Income taxes | -39,011 | -26,903 | |
Net | 74,945 | 49,568 | |
Expected to be recognized in following year | |||
Prior service cost (credit) | 295 | ||
Net loss (gain) | 8,922 | ||
Net before income taxes | 9,217 | ||
Income taxes | -3,318 | ||
Net | 5,899 | ||
Estimated future benefit payments | |||
2015 | 15,290 | ||
2016 | 17,085 | ||
2017 | 16,299 | ||
2018 | 17,417 | ||
2019 | 18,248 | ||
Years 2020 - 2024 | 105,418 | ||
U.S. Plans | |||
Assumptions used to determine benefit obligations | |||
Discount rate | 4.20% | 5.00% | |
Rate of compensation increase | 3.00% | 3.00% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 5.00% | 4.20% | 4.60% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Expected return on assets | 8.50% | 8.50% | 8.50% |
Non-U.S. Plans | |||
Assumptions used to determine benefit obligations | |||
Discount rate | 1.50% | 2.50% | |
Rate of compensation increase | 1.30% | 1.30% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 2.50% | 2.30% | 2.90% |
Rate of compensation increase | 1.30% | 1.20% | 1.20% |
Expected return on assets | 2.00% | 3.00% | 3.00% |
Postretirement Medical Benefits | |||
Change in benefit obligation | |||
Obligation, beginning of year | 21,342 | 23,472 | |
Service cost | 486 | 626 | 589 |
Interest cost | 981 | 961 | 986 |
Actuarial loss (gain) | 1,037 | -2,582 | |
Plan changes | 0 | 0 | |
Benefit payments | -1,082 | -1,135 | |
Settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Obligation, end of year | 22,764 | 21,342 | 23,472 |
Change in plan assets | |||
Fair value, beginning of year | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Employer contributions | 1,082 | 1,135 | |
Benefit payments | -1,082 | -1,135 | |
Settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Fair value, end of year | 0 | 0 | 0 |
Funded status | -22,764 | -21,342 | |
Amounts recognized in consolidated balance sheets | |||
Current liabilities | 1,165 | 1,256 | |
Non-current liabilities | 21,599 | 20,086 | |
Total liabilities | 22,764 | 21,342 | |
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | 486 | 626 | 589 |
Interest cost on projected benefit obligation | 981 | 961 | 986 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | -658 | -658 | -658 |
Amortization of net loss (gain) | 15 | 480 | 395 |
Net periodic benefit cost | 824 | 1,409 | 1,312 |
Amounts recognized in other comprehensive (income) loss | |||
Net loss (gain) arising during the period | 1,037 | -2,582 | |
Prior service cost (credit) arising during the period | 0 | 0 | |
Amortization of net gain (loss) | -15 | -480 | |
Amortization of prior service credit (cost) | 658 | 658 | |
Total | 1,680 | -2,404 | |
Amounts recognized in accumulated ther comprehensive income | |||
Prior service cost (credit) | -1,786 | -2,444 | |
Net loss | 4,347 | 3,325 | |
Net before income taxes | 2,561 | 881 | |
Income taxes | -922 | -317 | |
Net | 1,639 | 564 | |
Expected to be recognized in following year | |||
Prior service cost (credit) | -676 | ||
Net loss (gain) | 271 | ||
Net before income taxes | -405 | ||
Income taxes | 146 | ||
Net | -259 | ||
Assumptions used to determine benefit obligations | |||
Discount rate | 4.20% | 5.00% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 5.00% | 4.20% | 4.60% |
Estimated future benefit payments | |||
2015 | 1,165 | ||
2016 | 1,259 | ||
2017 | 1,310 | ||
2018 | 1,373 | ||
2019 | 1,440 | ||
Years 2020 - 2024 | $7,873 |
Retirement_Benefits_Disclosure
Retirement Benefits (Disclosures in Narratives) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Defined Contribution Plan | |||
Percent at which employer matches employee contribution | 100.00% | ||
Maximum percent of participant's compensation employer contributes to DCP | 3.00% | ||
Company contribution rate for employees not covered by DBP | 1.50% | ||
Company contributions to 401K | $6.90 | $6.30 | $5.60 |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation for all defined benefit plans | 361 | 326 | |
Assumed health care trend rates | |||
Health care cost trend rate assumed for next year | 7.00% | ||
Ultimate health care cost trend rate | 4.50% | ||
Year that rate reaches ultimate trend rate | 2026 | ||
Retirement Medical Plan | |||
Retirement medical plan limit on annual increase in company cost | 3.00% | ||
Expected company contributions to retirement medical plan in next year | 1.2 | ||
Unfunded | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected company contributions to DBP in next year amount | $2.30 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | |
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2015 | $6,368,000 | ||
2016 | 4,642,000 | ||
2017 | 3,788,000 | ||
2018 | 2,865,000 | ||
2019 | 2,630,000 | ||
Thereafter | 8,384,000 | ||
Total | 28,677,000 | ||
Rental expense | 5,000,000 | 3,600,000 | 3,300,000 |
Open purchase order commitments | 76,000,000 | ||
Maximum purchase quantities and supplier inventory commitments | 36,000,000 | ||
Standby letters of credit commitments | 2,000,000 | ||
Guarantees of subsidiary debt | 9,000,000 | ||
Net operating earnings since the date of acquisition | 160,000,000 | ||
Cost-method investment | 421,767,000 | 422,297,000 | |
Buildings | |||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2015 | 3,472,000 | ||
2016 | 2,556,000 | ||
2017 | 2,307,000 | ||
2018 | 1,983,000 | ||
2019 | 2,023,000 | ||
Thereafter | 7,942,000 | ||
Total | 20,283,000 | ||
Vehicles & Equipment | |||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2015 | 2,896,000 | ||
2016 | 2,086,000 | ||
2017 | 1,481,000 | ||
2018 | 882,000 | ||
2019 | 607,000 | ||
Thereafter | 442,000 | ||
Total | $8,394,000 |
Acquisitions_Details
Acquisitions (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | Apr. 02, 2012 | Dec. 26, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Liquid Finishing | Liquid Finishing | Liquid Finishing | Liquid Finishing | Alco | Alco | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | ||||||||||||
Business Acquisition Descriptions | |||||||||||||||||
Sales since the date of acquisition | $6,000,000 | ||||||||||||||||
Sales reported by acquired entity for last annual period | 19,000,000 | ||||||||||||||||
Investment in businesses held separate | 421,767,000 | 422,297,000 | 421,767,000 | 422,297,000 | 426,813,000 | ||||||||||||
Sale consideration Liquid Finishing | 590,000,000 | ||||||||||||||||
Dividend from investments | 28,000,000 | 28,000,000 | 12,000,000 | ||||||||||||||
Net Sales | 306,005,000 | 302,614,000 | 322,549,000 | 289,962,000 | 271,923,000 | 277,035,000 | 286,020,000 | 269,046,000 | 1,221,130,000 | 1,104,024,000 | 1,012,456,000 | 288,231,000 | 278,543,000 | 269,099,000 | |||
Operating earnings | $308,925,000 | $279,769,000 | $224,677,000 | $62,605,000 | $61,174,000 | $52,256,000 |
Acquisitions_Purchase_Price_Al
Acquisitions (Purchase Price Allocation) (Details) | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 26, 2014 | Dec. 27, 2013 | Apr. 02, 2012 | Jul. 31, 2012 | Apr. 02, 2012 | Dec. 28, 2012 | Apr. 02, 2012 | Apr. 02, 2012 | Apr. 02, 2012 | Apr. 02, 2012 | Apr. 02, 2012 | Apr. 02, 2012 | Dec. 27, 2013 | Apr. 02, 2012 | Mar. 28, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Jan. 23, 2015 |
USD ($) | USD ($) | USD ($) | Customer Relationships | Customer Relationships | Trade Names | Trade Names | Finishing Group | Finishing Group | Finishing Group | Powder Finishing | Powder Finishing | Powder Finishing | Powder Finishing | Powder Finishing | Powder Finishing | Powder Finishing | Liquid Finishing | Liquid Finishing | QED | Alco | Alco | Alco | Alco | Alco | HiP | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Customer Relationships | Customer Relationships | Developed Technology | Developed Technology | Trade Names | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | Customer Relationships | Customer Relationships | Trade Names | USD ($) | ||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Cash purchase consideration | $660,000,000 | $8,000,000 | ($5,000,000) | $65,000,000 | £ 72,000,000 | $160,000,000 | ||||||||||||||||||||
Purchase Price Allocation | ||||||||||||||||||||||||||
Cash and cash equivalents | 6,007,000 | 1,929,000 | ||||||||||||||||||||||||
Accounts receivable | 17,835,000 | 9,821,000 | ||||||||||||||||||||||||
Inventories | 21,733,000 | 9,565,000 | ||||||||||||||||||||||||
Other current assets | 2,534,000 | 343,000 | ||||||||||||||||||||||||
Property, plant and equipment | 18,359,000 | 1,047,000 | ||||||||||||||||||||||||
Other non-current assets | 50,000 | 225,000 | ||||||||||||||||||||||||
Net tangible assets | 6,000,000 | |||||||||||||||||||||||||
Identifiable intangible assets | 150,500,000 | 22,000,000 | 30,348,000 | |||||||||||||||||||||||
Goodwill | 292,574,000 | 189,967,000 | 181,228,000 | 86,056,000 | 37,000,000 | 73,445,000 | ||||||||||||||||||||
Total assets acquired | 303,074,000 | 126,723,000 | ||||||||||||||||||||||||
Current liabilities assumed | -27,434,000 | -3,291,000 | ||||||||||||||||||||||||
Non-current liabilities assumed | -7,984,000 | |||||||||||||||||||||||||
Deferred income taxes | -26,105,000 | -6,266,000 | ||||||||||||||||||||||||
Net assets acquired/total purchase consideration | 668,364,000 | 241,551,000 | 117,166,000 | |||||||||||||||||||||||
Investment in businesses held separate | 421,767,000 | 422,297,000 | 426,813,000 | |||||||||||||||||||||||
Identifiable Intangible Assets | ||||||||||||||||||||||||||
Finite-lived intangible assets | 124,480,000 | 106,826,000 | 113,862,000 | 96,286,000 | 103,500,000 | 9,600,000 | 22,883,000 | |||||||||||||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 51,798,000 | 41,114,000 | 37,400,000 | 7,465,000 | ||||||||||||||||||||||
Total identifiable intangible assets | 150,500,000 | 30,348,000 | ||||||||||||||||||||||||
Estimated Life (years) | 14 years | 11 years | 10 years | |||||||||||||||||||||||
Goodwill adjustment | $8,000,000 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Quarterly Financial Information (unaudited) [Abstract] | |||||||||||
Net Sales | $306,005 | $302,614 | $322,549 | $289,962 | $271,923 | $277,035 | $286,020 | $269,046 | $1,221,130 | $1,104,024 | $1,012,456 |
Gross Profit | 164,760 | 165,814 | 176,850 | 159,312 | 147,199 | 150,873 | 158,739 | 150,644 | 666,736 | 607,455 | 550,530 |
Net Earnings | $49,041 | $59,551 | $66,236 | $50,745 | $44,748 | $56,101 | $57,843 | $52,130 | $225,573 | $210,822 | $149,126 |
Basic Net Earnings per Common Share | $0.83 | $0.99 | $1.10 | $0.83 | $0.73 | $0.91 | $0.94 | $0.86 | $3.75 | $3.44 | $2.47 |
Diluted Net Earnings per Common Share | $0.80 | $0.97 | $1.07 | $0.81 | $0.71 | $0.89 | $0.92 | $0.84 | $3.65 | $3.36 | $2.42 |
Cash Dividends Declared per Common Share | $0.30 | $0.28 | $0.28 | $0.28 | $0.28 | $0.25 | $0.25 | $0.25 | $1.13 | $1.03 | $0.93 |
Schedule_II_Valuation_and_Qual2
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Dec. 28, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $6,300 | $6,600 | $5,500 |
Additions charged to costs and expenses | 23,200 | 17,900 | 14,200 |
Deductions from reserves | 22,000 | 18,200 | 13,400 |
Other add (deduct) | 600 | 0 | 300 |
Balance at end of year | 8,100 | 6,300 | 6,600 |
Allowance for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 1,300 | 2,100 | 1,400 |
Additions charged to costs and expenses | 800 | 600 | 500 |
Deductions from reserves | 300 | 1,400 | 100 |
Other add (deduct) | 600 | 0 | 300 |
Balance at end of year | 2,400 | 1,300 | 2,100 |
Allowance for returns and credits [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 5,000 | 4,500 | 4,100 |
Additions charged to costs and expenses | 22,400 | 17,300 | 13,700 |
Deductions from reserves | 21,700 | 16,800 | 13,300 |
Other add (deduct) | 0 | 0 | 0 |
Balance at end of year | $5,700 | $5,000 | $4,500 |