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WTS Watts Water

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 29, 2020Apr. 26, 2020
Document Type10-Q
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateMar. 29,
2020
Entity File Number001-11499
Entity Registrant NameWATTS WATER TECHNOLOGIES INC
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number04-2916536
Entity Address, Address Line One815 Chestnut Street
Entity Address, City or TownNorth Andover
Entity Address, State or ProvinceMA
Entity Address, Postal Zip Code01845
City Area Code978
Local Phone Number688-1811
Title of 12(b) SecurityClass A common stock, par value $0.10 per share
Trading SymbolWTS
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ1
Entity Central Index Key0000795403
Amendment Flagfalse
Class A
Entity Common Stock, Shares Outstanding27,489,109
Class B
Entity Common Stock, Shares Outstanding6,229,290

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in MillionsMar. 29, 2020Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents $ 245.4 $ 219.7
Trade accounts receivable, less reserve allowances of $13.4 million at March 29, 2020 and $14.3 million at December 31, 2019236.7 219.8
Raw materials94.2 83.3
Work in process17.3 15.5
Finished goods168.1 171.3
Total Inventories279.6 270.1
Prepaid expenses and other assets29.5 25.3
Total Current Assets791.2 734.9
PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, at cost560.6 557.9
Accumulated depreciation(358.8)(357.9)
Property, plant and equipment, net201.8 200
OTHER ASSETS:
Goodwill576 581.1
Intangible assets, net146.1 151.4
Deferred income taxes2.6 2.7
Other, net49.7 53
TOTAL ASSETS1,767.4 1,723.1
CURRENT LIABILITIES:
Accounts payable117.8 123.3
Accrued expenses and other liabilities132.7 133.4
Accrued compensation and benefits46.3 57.6
Current portion of long-term debt82.5 105
Total Current Liabilities379.3 419.3
LONG-TERM DEBT, NET OF CURRENT PORTION296.9 204.2
DEFERRED INCOME TAXES41.8 38.6
OTHER NONCURRENT LIABILITIES81.6 83
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding
Additional paid-in capital597.1 591.5
Retained earnings515.5 513.9
Accumulated other comprehensive loss(148.2)(130.8)
Total Stockholders' Equity967.8 978
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY1,767.4 1,723.1
Class A
STOCKHOLDERS' EQUITY:
Common Stock2.8 2.8
Class B
STOCKHOLDERS' EQUITY:
Common Stock $ 0.6 $ 0.6

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) $ in MillionsMar. 29, 2020USD ($)$ / sharessharesDec. 31, 2019USD ($)$ / sharesshares
Trade accounts receivable, allowance for doubtful accounts (in dollars) | $ $ 13.4 $ 14.3
Preferred Stock, par value (in dollars per share) | $ / shares $ 0.10 $ 0.10
Preferred Stock, shares authorized5,000,000 5,000,000
Preferred Stock, shares issued0 0
Preferred Stock, shares outstanding0 0
Class A
Common Stock, par value (in dollars per share) | $ / shares $ 0.10 $ 0.10
Common Stock, shares authorized120,000,000 120,000,000
Common Stock, votes per share (Number of votes)1 1
Common Stock, issued shares27,544,757 27,586,416
Common Stock, outstanding shares27,544,757 27,586,416
Class B
Common Stock, par value (in dollars per share) | $ / shares $ 0.10 $ 0.10
Common Stock, shares authorized25,000,000 25,000,000
Common Stock, votes per share (Number of votes)10 10
Common Stock, issued shares6,229,290 6,279,290
Common Stock, outstanding shares6,229,290 6,279,290

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions3 Months Ended
Mar. 29, 2020Mar. 31, 2019
Consolidated Statements of Operations
Net Sales $ 382.6 $ 388.7
Cost of goods sold219.8 224.5
GROSS PROFIT162.8 164.2
Selling, general and administrative expenses115 116.1
Restructuring1.4
OPERATING INCOME47.8 46.7
Other (income) expense:
Interest income(0.1)(0.1)
Interest expense3 3.6
Other income0.3 0.5
Total other expense3.2 4
INCOME BEFORE INCOME TAXES44.6 42.7
Provision for income taxes12.6 11.7
NET INCOME $ 32 $ 31
BASIC EPS
NET INCOME PER SHARE $ 0.94 $ 0.91
Weighted average number of shares (in shares)34 34.2
DILUTED EPS
NET INCOME PER SHARE $ 0.94 $ 0.91
Weighted average number of shares (in shares)34.1 34.2
Dividends declared per share (in dollars per share) $ 0.23 $ 0.21

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions3 Months Ended
Mar. 29, 2020Mar. 31, 2019
Consolidated Statements of Comprehensive Income
Net income $ 32 $ 31
Other comprehensive loss, net of tax:
Foreign currency translation adjustments(16.5)(4.6)
Cash flow hedges(0.9)(1.3)
Other comprehensive (loss) income(17.4)(5.9)
Comprehensive income $ 14.6 $ 25.1

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in MillionsClass ACommon StockClass BCommon StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total
Balance at the beginning of the period at Dec. 31, 2018 $ 2.8 $ 0.6 $ 568.3 $ 440.7 $ (121.1) $ 891.3
Balance (in shares) at Dec. 31, 201827,646,465 6,329,290
Increase (Decrease) in Stockholders' Equity
Net income31 31
Other comprehensive income (loss)(5.9)(5.9)
Comprehensive income25.1
Shares of Class B common stock converted to Class A common stock (in shares)50,000 (50,000)
Shares of Class A common stock issued upon the exercise of stock options0.6 0.6
Shares of Class A common stock issued upon the exercise of stock options (in shares)9,881
Stock-based compensation4.6 4.6
Stock repurchase(5.6)(5.6)
Stock repurchase (in shares)(74,409)
Net change in restricted stock units3.1 (6.7)(3.6)
Net change in restricted and performance stock units (in shares)78,360
Common stock dividends(7.3)(7.3)
Balance at the end of the period at Mar. 31, 2019 $ 2.8 $ 0.6 576.6 452.1 (127)905.1
Balance (in shares) at Mar. 31, 201927,710,297 6,279,290
Balance at the beginning of the period at Dec. 31, 2019 $ 2.8 $ 0.6 591.5 513.9 (130.8)978
Balance (in shares) at Dec. 31, 201927,586,416 6,279,290
Increase (Decrease) in Stockholders' Equity
Net income32 32
Other comprehensive income (loss)(17.4)(17.4)
Comprehensive income14.6
Shares of Class B common stock converted to Class A common stock (in shares)50,000 (50,000)
Stock-based compensation3.6 3.6
Stock repurchase(14.7)(14.7)
Stock repurchase (in shares)(174,707)
Net change in restricted stock units2 (7.7)(5.7)
Net change in restricted and performance stock units (in shares)83,048
Common stock dividends(8)(8)
Balance at the end of the period at Mar. 29, 2020 $ 2.8 $ 0.6 $ 597.1 $ 515.5 $ (148.2) $ 967.8
Balance (in shares) at Mar. 29, 202027,544,757 6,229,290

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions3 Months Ended
Mar. 29, 2020Mar. 31, 2019
OPERATING ACTIVITIES
Net income $ 32 $ 31
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation7.6 7.5
Amortization of intangibles3.8 3.9
Loss on disposal and impairment of property, plant and equipment and other0.5
Stock-based compensation3.6 4.6
Deferred income tax3.9 4.5
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts receivable(20.6)(36.3)
Inventories(12.7)(7.8)
Prepaid expenses and other assets(4.6)0.2
Accounts payable, accrued expenses and other liabilities(13.9)(32.3)
Net cash used in operating activities(0.9)(24.2)
INVESTING ACTIVITIES
Additions to property, plant and equipment(8.9)(6.9)
Proceeds from the sale of property, plant and equipment1.4
Net cash used in investing activities(7.5)(6.9)
FINANCING ACTIVITIES
Proceeds from long-term borrowings70 30
Payments of long-term debt(12.5)
Payments for tax withholding on vested awards(7.7)(6.7)
Payment of finance leases(0.5)(0.5)
Proceeds from share transactions under employee stock plans0.6
Payments to repurchase common stock(14.7)(5.6)
Dividends(8)(7.3)
Net cash provided by (used in) financing activities39.1 (2)
Effect of exchange rate changes on cash and cash equivalents(5)(0.8)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS25.7 (33.9)
Cash and cash equivalents at beginning of year219.7 204.1
CASH AND CASH EQUIVALENTS AT END OF PERIOD245.4 170.2
NON CASH INVESTING AND FINANCING ACTIVITIES
Issuance of stock under management stock purchase plan0.7 1.2
CASH PAID FOR:
Interest2.5 2.6
Income taxes $ 5 $ 2.9

Basis of Presentation

Basis of Presentation3 Months Ended
Mar. 29, 2020
Basis of Presentation
Basis of PresentationWATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ​ 1. Basis of Presentation ​ The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the Watts Water Technologies, Inc. (the Company) Consolidated Balance Sheet as of March 29, 2020, the Consolidated Statements of Operations for the first quarters ended March 29, 2020 and March 31, 2019, the Consolidated Statements of Comprehensive Income for the first quarters ended March 29, 2020 and March 31, 2019, the Consolidated Statements of Stockholders’ Equity for the first quarters ended March 29, 2020 and March 31, 2019, and the Consolidated Statements of Cash Flows for the first quarters ended March 29, 2020 and March 31, 2019. ​ The consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date. The accounting policies followed by the Company are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The financial statements included in this report should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2020, and may be impacted by the overall effects of the global pandemic. ​ The Company operates on a 52 13 ​ Estimates ​ The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 and the reported amounts of revenues and expenses during the reporting period. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. We are not aware of any specific event or circumstance that would require updates to the Company’s estimates or judgments or require the Company to revise the carrying value of the Company’s assets or liabilities as of May 7, 2020, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change as new events occur and additional information is obtained. Actual results could differ from those estimates. ​ COVID-19 ​ In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The Company is subject to risk and uncertainties as a result of the COVID-19 impact. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic is in its initial stages and information is rapidly evolving. Many of the Company’s products qualify as essential under local, state and national guidelines and orders, as such the Company is considered an essential business providing essential products during this global emergency. As a provider of essential products, the Company has made significant efforts to keep its facilities open, its employees working and its products available to its customers. The Company remains focused on protecting the health and safety of its employees and the communities in which it operates while maintaining the continuity of its business operations. The Company created a COVID-19 Task Force to protect its employees while maintaining production capabilities, and the Company has implemented social distancing guidelines and temperature monitoring, provided personal protective equipment, established a COVID-19 website for employees, which includes the latest CDC and other government protocols and promoted work-from-home policies where practical. ​ Capital markets and economies worldwide have also been negatively impacted by the protective measures taken by governments in response to the COVID-19 pandemic, and it is likely that these measures will result in a global economic recession. Such economic disruption could have a material adverse effect on the Company’s business as customers curtail and reduce capital and overall spending. Policymakers around the globe have responded with fiscal policy actions to bolster their local economies. The magnitude and overall effectiveness of these actions remains uncertain. The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers and suppliers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions and uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. However, the Company does not anticipate any adverse impacts on its ability to pay its debt obligations as they become due. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. ​ On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which includes modifications to the limitation on business interest expense and net operating loss provisions, and provides a payment delay of employer payroll taxes during 2020 after the date of enactment. The Company estimates the payment of approximately $4 million to $5 million of employer payroll taxes otherwise due in 2020 will be delayed with 50% due by December 31, 2021 and the remaining 50% by December 31, 2022. The CARES Act is not expected to have a material impact on the Company’s consolidated financial statements.

Accounting Policies

Accounting Policies3 Months Ended
Mar. 29, 2020
Accounting Policies
Accounting Policies2. Accounting Policies ​ The significant accounting policies used in preparation of these consolidated financial statements for the first quarter ended March 29, 2020 are consistent with those discussed in Note 2 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. ​ Recently Adopted Accounting Standards ​ In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)-Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance requires an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. The Company adopted this standard in the first quarter of 2020, and it did not have a material impact on the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).” ASU 2016-13 replaces the incurred loss impairment methodology under current Generally Accepted Accounting Principles (“GAAP”) with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivable, loans, and other financial instruments. The financial assets for which this standard is applicable on the Company’s balance sheet are accounts receivable and contract assets. The standard requires the Company to pool financial assets based on similar risk and economic characteristics and estimate expected credit losses over the contractual life of the asset. This standard is effective for reporting periods beginning after December 15, 2019. The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company adopted this standard in the first quarter of 2020, and it did not have a material impact on the Company’s financial statements. Accounting Standards Updates In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standard. Shipping and Handling ​ Shipping and handling costs included in selling, general and administrative expenses amounted to $14.0 million and $13.9 million for the first quarters of 2020 and 2019, respectively. ​ Research and Development ​ Research and development costs included in selling, general and administrative expenses amounted to $11.5 million and $9.3 million for the first quarters of 2020 and 2019, respectively.

Revenue Recognition

Revenue Recognition3 Months Ended
Mar. 29, 2020
Revenue Recognition
Revenue Recognition3. Revenue Recognition ​ The Company is a leading supplier of products that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial and residential markets of the Americas, Europe, and Asia-Pacific, Middle East, and Africa (“APMEA”). For over 140 years, the Company has designed and produced valve systems that safeguard and regulate water systems, energy efficient heating and hydronic systems, drainage systems and water filtration technology that helps purify and conserve water. ​ The Company distributes products through four primary distribution channels: wholesale, original equipment manufacturers (OEMs), specialty, and do-it-yourself (DIY). The Company operates in three geographic segments: Americas, Europe, and APMEA. Each of these segments sells similar products, which are comprised of the following principal product lines: ​ ● Residential & commercial flow control products—includes products typically sold into plumbing and hot water applications such as backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. ● HVAC & gas products—includes commercial high-efficiency boilers, water heaters and heating solutions, hydronic and electric heating systems for under-floor radiant applications, custom heat and hot water solutions, hydronic pump groups for boiler manufacturers and alternative energy control packages, and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. HVAC is an acronym for heating, ventilation and air conditioning. ● Drainage & water re - use products—includes drainage products and engineered rain water harvesting solutions for commercial, industrial, marine and residential applications. ● Water quality products—includes point-of-use and point-of-entry water filtration, conditioning and scale prevention systems for commercial, marine and residential applications. ​ The following table disaggregates revenue, which is presented as net sales in the financial statements, for each reportable segment, by distribution channel and principal product line: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 29, 2020 ​ ​ ​ ​ (in millions) ​ ​ Distribution Channel ​ Americas ​ Europe ​ APMEA ​ Consolidated Wholesale ​ $ 147.4 ​ $ 75.1 ​ $ 9.3 ​ $ 231.8 OEM ​ ​ 19.5 ​ 34.5 ​ 0.2 ​ 54.2 Specialty ​ ​ 78.4 ​ — ​ 0.5 ​ 78.9 DIY ​ 17.1 ​ 0.6 ​ — ​ 17.7 Total ​ $ 262.4 ​ $ 110.2 ​ $ 10.0 ​ $ 382.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 29, 2020 ​ ​ ​ ​ (in millions) ​ ​ Principal Product Line ​ Americas ​ Europe ​ APMEA ​ Consolidated Residential & Commercial Flow Control ​ $ 148.7 ​ $ 41.0 ​ $ 8.0 ​ $ 197.7 HVAC and Gas Products ​ ​ 67.6 ​ 44.4 ​ 1.6 ​ 113.6 Drainage and Water Re-use Products ​ ​ 18.5 ​ 23.9 ​ 0.3 ​ 42.7 Water Quality Products ​ 27.6 ​ 0.9 ​ 0.1 ​ 28.6 Total ​ $ 262.4 ​ $ 110.2 ​ $ 10.0 ​ $ 382.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 31, 2019 ​ ​ ​ ​ (in millions) ​ ​ Distribution Channel ​ Americas ​ Europe ​ APMEA ​ Consolidated Wholesale ​ $ 145.6 ​ $ 79.5 ​ $ 12.6 ​ $ 237.7 OEM ​ ​ 20.8 ​ 36.0 ​ 0.5 ​ 57.3 Specialty ​ ​ 76.1 ​ — ​ 0.4 ​ 76.5 DIY ​ 16.4 ​ 0.8 ​ — ​ 17.2 Total ​ $ 258.9 ​ $ 116.3 ​ $ 13.5 ​ $ 388.7 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 31, 2019 ​ ​ ​ ​ (in millions) ​ ​ Principal Product Line ​ Americas ​ Europe ​ APMEA ​ Consolidated Residential & Commercial Flow Control ​ $ 147.4 ​ $ 45.4 ​ $ 10.7 ​ $ 203.5 HVAC and Gas Products ​ ​ 68.7 ​ 48.5 ​ 2.1 ​ 119.3 Drainage and Water Re-use Products ​ ​ 18.1 ​ 21.9 ​ 0.5 ​ 40.5 Water Quality Products ​ 24.7 ​ 0.5 ​ 0.2 ​ 25.4 Total ​ $ 258.9 ​ $ 116.3 ​ $ 13.5 ​ $ 388.7 ​ The Company generally considers customer purchase orders, which in some cases are governed by master sales agreements, to represent the contract with a customer. The Company’s contracts with customers are generally for products only and typically do not include other performance obligations such as professional services, extended warranties, or other material rights. In situations where sales are to a distributor, the Company has concluded that its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. As the Company’s standard payment terms are less than one year, the Company has elected not to assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment from the Company’s manufacturing site or distribution center, or delivery to the customer’s named location. In certain circumstances, revenue from shipments to retail customers is recognized only when the product is consumed by the customer, as based on the terms of the arrangement, transfer of control is not satisfied until that point in time. In determining whether control has transferred, the Company considers if there is a present right to payment, physical possession and legal title, along with risks and rewards of ownership having transferred to the customer. In certain circumstances, the Company manufactures customized product without alternative use for its customers. However, as these arrangements do not entitle the Company a right to payment of cost plus a profit for work completed, the Company has concluded that revenue recognition at the point in time control transfers is appropriate and not over time recognition. ​ At times, the Company receives orders for products to be delivered over multiple dates that may extend across reporting periods. The Company invoices for each delivery upon shipment and recognizes revenues for each distinct product delivered, assuming transfer of control has occurred. As scheduled delivery dates are within one year, under the optional exemption provided by the guidance, revenues allocated to future shipments of partially completed contracts are not disclosed. ​ The Company generally provides an assurance warranty that its products will substantially conform to the published specification. The Company’s liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial. The Company does not consider activities related to such warranty, if any, to be a separate performance obligation. For certain of its products, the Company will separately sell extended warranty and service policies to its customers. The Company considers the sale of the extended warranty a separate performance obligation. These policies typically are for periods ranging from one ​ The timing of revenue recognition, billings and cash collections from the Company’s contracts with customers can vary based on the payment terms and conditions in the customer contracts. In some cases, customers will partially prepay for their goods; in other cases, after appropriate credit evaluations, payment is due in arrears. In addition, there are constraints which cause variability in the ultimate consideration to be recognized. These constraints typically include early payment discounts, volume rebates, rights of return, cooperative advertising, and market development funds. The Company includes these constraints in the estimated transaction price when there is a basis to reasonably estimate the amount of variable consideration. These estimates are based on historical experience, anticipated future performance and the Company’s best judgment at the time. When the timing of the Company’s recognition of revenue is different from the timing of payments made by the customer, the Company recognizes either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Contracts with payment in arrears are recognized as receivables. The opening and closing balances of the Company’s contract assets and contract liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract ​ Contract ​ Contract ​ ​ Assets ​ Liabilities - Current ​ Liabilities - Noncurrent ​ ​ ​ ​ ​ (in millions) ​ ​ ​ Balance - January 1, 2020 ​ $ 0.4 ​ $ 11.5 ​ $ 2.9 Change in period ​ ​ (0.1) ​ ​ 0.2 ​ ​ (0.1) Balance - March 29, 2020 ​ $ 0.3 ​ $ 11.7 ​ $ 2.8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance - January 1, 2019 ​ $ 1.0 ​ $ 11.3 ​ $ 2.7 Change in period ​ ​ (0.7) ​ ​ 0.1 ​ ​ — Balance - March 31, 2019 ​ $ 0.3 ​ $ 11.4 ​ $ 2.7 ​ The amount of revenue recognized that was included in the opening contract liability balance was $2.3 million and $3.3 million for the first quarters ended March 29, 2020 and March 31, 2019, respectively. This revenue consists primarily of revenue recognized for shipments of product which had been prepaid as well as the amortization of extended warranty and service policy revenue. The Company did not recognize any material revenue from obligations satisfied in prior periods. There were ​ The Company incurs costs to obtain and fulfill a contract; however, the Company has elected to recognize all incremental costs to obtain a contract as an expense when incurred if the amortization period is one year or less. The Company has elected to treat shipping and handling activities performed after the customer has obtained control of the related goods as a fulfillment cost and the related cost is accrued for in conjunction with the recording of revenue for the goods.

Goodwill & Intangibles

Goodwill & Intangibles3 Months Ended
Mar. 29, 2020
Goodwill and Intangibles
Goodwill & Intangibles4. Goodwill & Intangibles ​ The Company operates in three geographic segments: Americas, Europe, and APMEA. The changes in the carrying amount of goodwill by geographic segment are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 29, 2020 ​ ​ Gross Balance ​ Accumulated Impairment Losses ​ Net Goodwill ​ ​ ​ ​ Acquired ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance ​ During ​ Currency ​ Balance ​ Balance ​ Impairment ​ Balance ​ ​ ​ ​ January 1, ​ the ​ Translation ​ March 29, ​ January 1, ​ Loss During ​ March 29, ​ March 29, ​ 2020 Period and Other 2020 2020 the Period 2020 2020 ​ ​ (in millions) Americas ​ $ 476.8 ​ ​ — ​ $ (0.8) ​ $ 476.0 ​ $ (24.5) ​ ​ — ​ $ (24.5) ​ $ 451.5 Europe ​ 241.4 ​ — ​ (2.4) ​ 239.0 ​ (129.7) ​ — ​ (129.7) ​ 109.3 APMEA ​ 30.0 ​ — ​ (1.9) ​ 28.1 ​ (12.9) ​ — ​ (12.9) ​ 15.2 Total ​ $ 748.2 ​ ​ — ​ $ (5.1) ​ $ 743.1 ​ $ (167.1) ​ ​ — ​ $ (167.1) ​ $ 576.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ ​ Gross Balance ​ Accumulated Impairment Losses ​ Net Goodwill ​ ​ ​ ​ Acquired ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance ​ During ​ Currency ​ Balance ​ Balance ​ Impairment ​ Balance ​ ​ ​ ​ January 1, ​ the ​ Translation ​ December 31, ​ January 1, ​ Loss During ​ December 31, ​ December 31, ​ 2019 Period and Other 2019 2019 the Period 2019 2019 ​ ​ (in millions) Americas ​ $ 438.1 ​ $ 38.3 ​ $ 0.4 ​ $ 476.8 ​ $ (24.5) ​ $ — ​ $ (24.5) ​ $ 452.3 Europe ​ 243.7 ​ — ​ (2.3) ​ 241.4 ​ (129.7) ​ — ​ (129.7) ​ 111.7 APMEA ​ 30.1 ​ — ​ (0.1) ​ 30.0 ​ (12.9) ​ — ​ (12.9) ​ 17.1 Total ​ $ 711.9 ​ $ 38.3 ​ $ (2.0) ​ $ 748.2 ​ $ (167.1) ​ $ — ​ $ (167.1) ​ $ 581.1 ​ Goodwill and indefinite-lived intangible assets are tested for impairment at least annually or more frequently if events or circumstances indicate that it is “more likely than not” that they might be impaired, such as from a change in business conditions. The Company performs its annual goodwill and indefinite-lived intangible assets impairment assessment in the fourth quarter of each year. At the most recent annual impairment test date of October 27, 2019, the Company performed qualitative fair value assessments, including an evaluation of certain key assumptions for all ​ As a result of the impacts of the COVID-19 global pandemic, the Company reviewed the guidance outlined in ASC 350 to determine if there was an event or change in circumstance to indicate it is more likely than not that an impairment loss has been incurred during the first quarter of 2020. The Company performed an analysis of the decline in stock price when compared to December 31, 2019, assessed other market risk factors, and performed a market capitalization reconciliation of its reporting units. The Company concluded a triggering event did not occur as of March 29, 2020 and it was not “more likely than not” that the Company’s reporting units might be impaired. ​ Additionally, the Company noted the Heating and Hot Water Solutions (“HHWS”) reporting unit had a goodwill balance of $218.9 million as of March 29, 2020, which holds the greatest amount of goodwill and the least amount of excess of fair value over carrying value. While the Company concluded that a triggering event did not occur during the quarter ended March 29, 2020, the impact of a prolonged COVID-19 pandemic could impact the results of operations due to changes to assumptions utilized in the determination of the estimated fair values of the HHWS reporting unit that may be significant enough to trigger an impairment determination. ​ Intangible assets include the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 29, 2020 ​ December 31, 2019 ​ ​ Gross ​ ​ ​ ​ Net ​ Gross ​ ​ ​ ​ Net ​ ​ Carrying ​ Accumulated ​ Carrying ​ Carrying ​ Accumulated ​ Carrying ​ Amount Amortization Amount Amount Amortization Amount ​ ​ (in millions) Patents ​ $ 16.1 ​ $ (15.9) ​ $ 0.2 ​ $ 16.1 ​ $ (15.9) ​ $ 0.2 Customer relationships ​ 232.0 ​ (158.6) ​ 73.4 ​ 232.8 ​ (156.3) ​ 76.5 Technology ​ 56.7 ​ (32.7) ​ 24.0 ​ 56.9 ​ (31.6) ​ 25.3 Trade names ​ 25.8 ​ (13.5) ​ 12.3 ​ 26.0 ​ (13.1) ​ 12.9 Other ​ 4.3 ​ (3.6) ​ 0.7 ​ 4.3 ​ (3.6) ​ 0.7 Total amortizable intangibles ​ 334.9 ​ (224.3) ​ 110.6 ​ 336.1 ​ (220.5) ​ 115.6 Indefinite-lived intangible assets ​ 35.5 ​ — ​ 35.5 ​ 35.8 ​ — ​ 35.8 ​ ​ $ 370.4 ​ $ (224.3) ​ $ 146.1 ​ $ 371.9 ​ $ (220.5) ​ $ 151.4 ​ Aggregate amortization expense for amortized intangible assets for the first quarters ended March 29, 2020 and March 31, 2019 was $3.8 million and $3.9 million, respectively.

Financial Instruments and Deriv

Financial Instruments and Derivative Instruments3 Months Ended
Mar. 29, 2020
Financial Instruments and Derivative Instruments
Financial Instruments and Derivative Instruments5. Financial Instruments and Derivative Instruments ​ Fair Value ​ The carrying amounts of cash and cash equivalents, trade receivables and trade payables approximate fair value because of the short maturity of these financial instruments. ​ The fair value of the Company’s 5.05 % senior notes due 2020 is based on quoted market prices of similar notes (level 2). The fair value of the Company’s borrowings outstanding under the Credit Agreement and the Company’s variable rate debt approximates its carrying value. The carrying amount and the estimated fair market value of the Company’s long-term debt, including the current portion, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 29, ​ December 31, ​ 2020 2019 ​ ​ (in millions) Carrying amount ​ $ 380.0 ​ $ 310.0 Estimated fair value ​ $ 380.7 ​ $ 310.5 ​ Financial Instruments ​ The Company measures certain financial assets and liabilities at fair value on a recurring basis, including deferred compensation plan assets and related liabilities, redeemable financial instruments, and derivatives. The fair values of these financial assets and liabilities were determined using the following inputs at March 29, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at March 29, 2020 Using: ​ ​ ​ ​ ​ Quoted Prices in Active ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Markets for Identical ​ Observable ​ Unobservable ​ ​ ​ ​ ​ Assets ​ Inputs ​ Inputs ​ Total (Level 1) (Level 2) (Level 3) ​ ​ (in millions) Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan asset for deferred compensation(1) ​ $ 2.1 ​ $ 2.1 ​ $ — ​ $ — Designated foreign currency hedges (4) ​ $ 0.6 ​ $ — ​ $ 0.6 ​ $ — Total assets ​ $ 2.7 ​ $ 2.1 ​ $ 0.6 ​ $ — Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps (3) ​ $ 1.0 ​ $ — ​ $ 1.0 ​ $ — Plan liability for deferred compensation(2) ​ $ 2.1 ​ $ 2.1 ​ $ — ​ $ — Total liabilities ​ $ 3.1 ​ $ 2.1 ​ $ 1.0 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2019 Using: ​ ​ ​ ​ ​ Quoted Prices in Active ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Markets for Identical ​ Observable ​ Unobservable ​ ​ ​ ​ Assets ​ Inputs ​ Inputs ​ ​ Total (Level 1) (Level 2) (Level 3) ​ ​ (in millions) Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan asset for deferred compensation(1) ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Interest rate swaps (1) ​ $ 1.2 ​ $ — ​ $ 1.2 ​ $ — Total assets ​ $ 3.7 ​ $ 2.5 ​ $ 1.2 ​ $ — Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan liability for deferred compensation(2) ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Designated foreign currency hedge(3) ​ $ 0.2 ​ $ — ​ $ 0.2 ​ $ — Total liabilities ​ $ 2.7 ​ $ 2.5 ​ $ 0.2 ​ $ — (1) Included on the Company’s consolidated balance sheet in other assets (other, net). ​ (2) Included on the Company’s consolidated balance sheet in accrued compensation and benefits. ​ (3) ​ (4) ​ Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase and consist primarily of money market funds, for which the carrying amount is a reasonable estimate of fair value. ​ The Company uses financial instruments from time to time to enhance its ability to manage risk, including foreign currency and commodity pricing exposures, which exist as part of its ongoing business operations. The use of derivatives exposes the Company to counterparty credit risk for nonperformance and to market risk related to changes in currency exchange rates and commodity prices. The Company manages its exposure to counterparty credit risk through diversification of counterparties. The Company’s counterparties in derivative transactions are substantial commercial banks with significant experience using such derivative instruments. The impact of market risk on the fair value and cash flows of the Company’s derivative instruments is monitored and the Company restricts the use of derivative financial instruments to hedging activities. The Company does not enter into contracts for trading purposes nor does the Company enter into any contracts for speculative purposes. The use of derivative instruments is approved by senior management under written guidelines. ​ Interest Rate Swaps ​ On February 12, 2016, the Company entered into a Credit Agreement (the “Credit Agreement”) pursuant to which it received a funding commitment under a Term Loan of $300 million, of which the entire $300 million has been drawn on, and a Revolving Commitment (“Revolver”) of $500 million, of which $80.0 million had been drawn as of March 29, 2020. Both facilities mature on February 12, 2021. For each facility, the Company can choose either an Adjusted LIBOR or Alternative Base Rate (“ABR”). Accordingly, the Company’s earnings and cash flows are exposed to interest rate risk from changes in Adjusted LIBOR. In order to manage the Company’s exposure to changes in cash flows attributable to fluctuations in LIBOR-indexed interest payments related to the Company’s floating rate debt, the Company entered into two interest rate swaps. For each interest rate swap, the Company receives the three-month USD-LIBOR subject to a 0% floor, and pays a fixed rate of 1.31375% on a notional amount of $225.0 million. The swaps mature on February 12, 2021. The Company formally documents the hedge relationships at hedge inception to ensure that its interest rate swaps qualify for hedge accounting. On a quarterly basis, the Company assesses whether the interest rate swaps are highly effective in offsetting changes in the cash flow of the hedged item. The Company does not hold or issue interest rate swaps for trading purposes. The swaps are designated as cash flow hedges. For the first quarters ended March 29, 2020, and March 31, 2019, respectively, losses of million and ​ Designated Foreign Currency Hedges ​ The Company’s foreign subsidiaries transact most business, including certain intercompany transactions, in foreign currencies. Such transactions are principally purchases or sales of materials. The Company has exposure to a number of foreign currencies, including the Canadian dollar, the euro, and the Chinese yuan. The Company uses a layering methodology, whereby at the end of each quarter, the Company enters into forward exchange contracts hedging Canadian dollar to U.S. dollar, which hedge approximately 70% to 80% of the forecasted intercompany purchase transactions between one of the Company’s Canadian subsidiaries and the Company’s U.S. operating subsidiaries for the next twelve months. The Company uses a similar layering methodology when entering into forward exchange contracts hedging U.S. dollar to the Chinese yuan, which hedge up to 60% of the forecasted intercompany sales transactions between one of the Company’s Chinese subsidiaries and one of the Company’s U.S. operating subsidiaries for the next twelve months. As of March 29, 2020, all designated foreign exchange hedge contracts were cash flow hedges under ASC 815, Derivatives and Hedging The Company records the effective portion of the designated foreign currency hedge contracts in other comprehensive income until inventory turns and is sold to a third-party. Once the third-party transaction associated with the hedged forecasted transaction occurs, the effective portion of any related gain or loss on the designated foreign currency hedge will be reclassified into earnings within cost of goods sold. In the event the notional amount of the derivatives exceeds the forecasted intercompany purchases for a given month, the excess hedge position will be attributed to the following month’s forecasted purchases. However, if the following month’s forecasted purchases cannot absorb the excess hedge position from the current month, the effective portion of the hedge recorded in other comprehensive income will be reclassified to earnings. ​ The notional amount outstanding as of March 29, 2020 for the Canadian dollar to U.S. dollar contracts was $13.5 million. The fair value of the Company’s designated foreign hedge contracts outstanding as of March 29, 2020 was an asset balance of $0.6 million. All outstanding forward exchange contracts for the U.S. dollar to the Chinese yuan have been settled as of March 29, 2020. As of March 29, 2020, the amount expected to be reclassified into cost of goods sold from other comprehensive income in the next twelve months is a gain of $0.2 million.

Earnings per Share and Stock Re

Earnings per Share and Stock Repurchase Program3 Months Ended
Mar. 29, 2020
Earnings per Share and Stock Repurchase Program
Earnings per Share and Stock Repurchase Program6. Earnings per Share and Stock Repurchase Program ​ The following tables set forth the reconciliation of the calculation of earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the First Quarter Ended March 29, 2020 ​ For the First Quarter Ended March 31, 2019 ​ ​ ​ Income ​ Shares ​ Per Share ​ Income ​ Shares ​ Per Share ​ ​ (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ​ ​ ​ (Amounts in millions, except per share information) ​ Basic EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 32.0 ​ 34.0 ​ $ 0.94 ​ $ 31.0 ​ 34.2 ​ $ 0.91 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock equivalents ​ ​ ​ ​ 0.1 ​ ​ — ​ ​ ​ — ​ ​ — ​ Diluted EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 32.0 ​ 34.1 ​ $ 0.94 ​ $ 31.0 34.2 ​ $ 0.91 ​ ​ There were no options to purchase Class A common stock outstanding during the first quarters ended March 29, 2020 or March 31, 2019 that would have been anti-dilutive. ​ On July 27, 2015, the Company’s Board of Directors authorized the repurchase of up to $100 million of the Company’s Class A common stock from time to time on the open market or in privately negotiated transactions. On February 6, 2019, the Board of Directors authorized an additional stock repurchase program of up to $150 million of the Company’s Class A common stock to be purchased from time to time on the open market or in privately negotiated transactions. For both stock repurchase programs, the Company has entered into a Rule 10b5-1 plan, which permits shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time, subject to the terms of the Rule 10b5-1 plan the Company entered into with respect to the repurchase program. The ​ The following table summarizes the cost and the number of shares of Class A common stock repurchased under the two repurchase programs during the first quarter ended March 29, 2020 and March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the First Quarter Ended ​ For the First Quarter Ended ​ ​ March 29, 2020 ​ March 31, 2019 ​ ​ Number of shares ​ Cost of shares ​ Number of shares ​ Cost of shares ​ repurchased repurchased repurchased repurchased ​ ​ (Amounts in millions, except share amount) Stock repurchase programs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $100 million ​ — ​ ​ — ​ 74,409 ​ $ 5.6 $150 million ​ 174,707 ​ $ 14.7 ​ — ​ ​ — Total stock repurchased during the period: 174,707 ​ $ 14.7 74,409 ​ $ 5.6 ​

Stock-Based Compensation

Stock-Based Compensation3 Months Ended
Mar. 29, 2020
Stock-Based Compensation
Stock-Based Compensation7. Stock-Based Compensation ​ The Company issued 80,052 and 89,053 shares of deferred stock awards during the first quarters of 2020 and 2019, respectively. The Company grants shares of deferred stock awards to key employees and stock awards to non-employee members of the Company’s Board of Directors under the 2004 Stock Incentive Plan. Stock awards to employees typically vest over a ​ The Company also grants performance stock units to key employees under the 2004 Stock Incentive Plan. Performance stock units cliff vest at the end of a performance period set by the Compensation Committee of the Board of Directors at the time of grant, which is currently ​ Under the Management Stock Purchase Plan (“MSPP”) the Company granted 27,495 and 36,670 of restricted stock units (“RSUs”) during the first quarters of 2020 and 2019, respectively. The MSPP allows for the granting of RSUs to key employees. On an annual basis, key employees may elect to receive a portion of their annual incentive compensation in RSUs instead of cash. Participating employees may use up to ​ The fair value of each share issued under the Management Stock Purchase Plan is estimated on the date of grant, using the Black-Scholes-Merton Model, based on the following weighted average assumptions: ​ ​ ​ ​ ​ ​ ​ ​ 2020 2019 Expected life (years) ​ 3.0 ​ 3.0 ​ Expected stock price volatility 24.6 % 23.3 % Expected dividend yield 1.1 % 1.1 % Risk-free interest rate 0.6 % 2.5 % ​ The risk-free interest rate is based upon the U.S. Treasury yield curve at the time of grant for the respective expected life of the RSUs. The expected life (estimated period of time outstanding) of RSUs and volatility were calculated using historical data. The expected dividend yield of stock is the Company’s best estimate of the expected future dividend yield. ​ The above assumptions were used to determine the weighted average grant-date fair value of the discount on RSUs granted in 2020 and 2019 of $22.36 and $22.16, respectively. ​ A more detailed description of each of these plans can be found in Note 13 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Segment Information

Segment Information3 Months Ended
Mar. 29, 2020
Segment Information
Segment Information8. Segment Information ​ The Company operates in three geographic segments: Americas, Europe, and APMEA. Each of these segments sells similar products and has separate financial results that are reviewed by the Company’s chief operating decision- maker. Each segment earns revenue and income almost exclusively from the sale of its products. The Company sells its products into various end markets around the world, with sales by region based upon location of the entity recording the sale. See Note 3 for further detail on the product lines sold into by region. All intercompany sales transactions have been eliminated. The accounting policies for each segment are the same as those described in Note 2 above and in Note 2 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. ​ The following is a summary of the Company’s significant accounts and balances by segment, reconciled to its consolidated totals: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 29, ​ March 31, ​ 2020 2019 ​ ​ (in millions) Net Sales ​ ​ ​ ​ Americas ​ $ 262.4 ​ $ 258.9 Europe ​ 110.2 ​ 116.3 APMEA ​ 10.0 ​ 13.5 Consolidated net sales ​ $ 382.6 ​ $ 388.7 Operating income (loss) ​ ​ ​ ​ ​ ​ Americas ​ $ 43.4 ​ $ 43.1 Europe ​ 13.7 ​ 13.2 APMEA ​ (0.1) ​ 1.3 Subtotal reportable segments ​ 57.0 ​ 57.6 Corporate(*) ​ (9.2) ​ (10.9) Consolidated operating income ​ 47.8 ​ 46.7 Interest income ​ (0.1) ​ (0.1) Interest expense ​ 3.0 ​ 3.6 Other expense, net ​ 0.3 ​ 0.5 Income before income taxes ​ $ 44.6 ​ $ 42.7 Capital Expenditures ​ ​ ​ ​ ​ ​ Americas ​ $ 6.6 ​ $ 3.9 Europe ​ 2.2 ​ 3.0 APMEA ​ 0.1 ​ — Consolidated capital expenditures ​ $ 8.9 ​ $ 6.9 Depreciation and Amortization ​ ​ ​ ​ ​ ​ Americas ​ $ 7.4 ​ $ 7.1 Europe ​ 3.4 ​ 3.6 APMEA ​ 0.6 ​ 0.7 Consolidated depreciation and amortization ​ $ 11.4 ​ $ 11.4 Identifiable assets (at end of period) ​ ​ ​ ​ ​ ​ Americas ​ $ 1,155.4 ​ $ 1,050.1 Europe ​ 519.6 ​ 524.9 APMEA ​ 92.4 ​ 108.4 Consolidated identifiable assets ​ $ 1,767.4 ​ $ 1,683.4 Property, plant and equipment, net (at end of period) ​ ​ ​ ​ ​ ​ Americas ​ $ 121.0 ​ $ 114.3 Europe ​ 75.4 ​ 78.7 APMEA ​ 5.4 ​ 6.6 Consolidated property, plant and equipment, net ​ $ 201.8 ​ $ 199.6 * Corporate expenses are primarily for administrative compensation expense, compliance costs, professional fees, including corporate-related legal and audit expenses, shareholder services and benefit administration costs. ​ The above operating segments are presented on a basis consistent with the presentation included in the Company’s December 31, 2019 consolidated financial statements included in its Annual Report on Form 10-K. ​ The U.S. property, plant and equipment of the Company’s Americas segment was $117.2 million and $110.3 million at March 29, 2020 and March 31, 2019, respectively. ​ The following includes U.S. net sales of the Company’s Americas segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 29, ​ March 31, ​ 2020 2019 ​ ​ (in millions) U.S. net sales ​ $ 246.7 ​ $ 243.5 ​ The following includes intersegment sales for Americas, Europe and APMEA: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 29, ​ March 31, ​ 2020 2019 ​ ​ (in millions) Intersegment Sales ​ ​ ​ ​ Americas ​ $ 2.4 ​ $ 2.9 Europe ​ 4.1 ​ 3.6 APMEA ​ 13.6 ​ 16.9 Intersegment sales ​ $ 20.1 ​ $ 23.4 ​

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss3 Months Ended
Mar. 29, 2020
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss9. Accumulated Other Comprehensive Loss ​ Accumulated other comprehensive loss consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ Foreign ​ ​ ​ ​ Other ​ ​ Currency ​ ​ Cash Flow ​ Comprehensive ​ Translation ​ Hedges (1) Loss ​ ​ (in millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance December 31, 2019 ​ $ (131.3) ​ $ 0.5 ​ $ (130.8) Change in period ​ (16.5) ​ (0.9) ​ (17.4) Balance March 29, 2020 ​ $ (147.8) ​ $ (0.4) ​ $ (148.2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance December 31, 2018 ​ $ (126.3) ​ $ 5.2 ​ $ (121.1) Change in period ​ (4.6) ​ (1.3) ​ (5.9) Balance March 31, 2019 ​ $ (130.9) ​ $ 3.9 ​ $ (127.0) (1) Cash flow hedges include interest rate swaps and designated foreign currency hedges. See Note 5 for further details.

Debt

Debt3 Months Ended
Mar. 29, 2020
Debt
Debt10. Debt ​ In February 2016, the Company entered into the Credit Agreement (the “Prior Credit Agreement”) among the Company, certain subsidiaries of the Company who become borrowers under the Prior Credit Agreement, JPMorgan Chase Bank, N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer, and the other lenders referred to therein. The Prior Credit Agreement provided for a $500 million, five-year, senior unsecured revolving credit facility (the “Prior Revolving Credit Facility”) with a sublimit of up to $100 million in letters of credit. As of March 29, 2020, the Company had drawn $80.0 million on this line of credit and had $15.8 million in letters of credit outstanding, which resulted in a $404.2 million of unused and available credit under the Prior Revolving Credit Facility. The Prior Credit Agreement also provided for a ​ The Company maintains letters of credit that guarantee its performance or payment to third parties in accordance with specified terms and conditions. Amounts outstanding were $15.8 million as of March 29, 2020 and $25.8 million as of March 31, 2019. The Company’s letters of credit are primarily associated with insurance coverage. The Company’s letters of credit generally expire within one year of issuance and were drawn down against the Prior Revolving Credit Facility. These instruments may exist or expire without being drawn down. Therefore, they do not necessarily represent future cash flow obligations. ​ The Company is a party to a note agreement as further detailed in Note 11 of the Notes to Consolidated Financial Statements of the Annual Report on Form 10-K for the year ended December 31, 2019. This note agreement requires the Company to maintain a fixed charge coverage ratio of consolidated EBITDA plus consolidated rent expense during the period to consolidated fixed charges. Consolidated fixed charges are the sum of consolidated interest expense for the period and consolidated rent expense. As of March 29, 2020, the Company was in compliance with all covenants regarding this note agreement. ​ On April 24, 2020, the Company entered into an Amended and Restated Credit Agreement (the "New Credit Agreement") among the Company, certain subsidiaries of the Company who become borrowers thereunder, JPMorgan Chase Bank, N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer, and the other lenders referred to therein. The New Credit Agreement amends and restates the Prior Credit Agreement in its entirety while increasing the amount of revolving credit available from $500 million to $800 million, and extending the maturity by one In addition to paying interest under the New Credit Agreement, the Company is also required to pay certain fees in connection with the Revolving Credit Facility, including, but not limited to, an unused facility fee and letter of credit fees. The New Credit Agreement matures on February 12, 2022, subject to extension under certain circumstances and subject to the terms of the New Credit Agreement. The Company may repay loans outstanding under the New Credit Agreement from time to time without premium or penalty, other than customary breakage costs, if any, and subject to the terms of the New Credit Agreement. The New Credit Agreement imposes various restrictions on the Company and its subsidiaries, including restrictions pertaining to: (i) the incurrence of additional indebtedness, (ii) limitations on liens, (iii) making distributions, dividends and other payments, (iv) mergers, consolidations and acquisitions, (v) dispositions of assets, (vi) certain consolidated leverage ratios and consolidated interest coverage ratios, (vii) transactions with affiliates, (viii) changes to governing documents, and (ix) changes in control. As a result of entering the New Credit Agreement, interest rate swaps as referred to in Note 5 of Notes to the Consolidated Financial Statements are no longer effective in offsetting changes in the cash flow of the hedged item as the critical terms of the New Credit Agreement do not match to the hedged item. The Company will recognize the mark-to-market fair value adjustments on a monthly basis in the consolidated statement of operations through the expiration date of the swaps, which is February 12, 2021.

Contingencies and Environmental

Contingencies and Environmental Remediation3 Months Ended
Mar. 29, 2020
Contingencies and Environmental Remediation
Contingencies and Environmental Remediation11. Contingencies and Environmental Remediation ​ The Company is a defendant in numerous legal matters arising from its ordinary course of operations, including those involving product liability, environmental matters, and commercial disputes. ​ Other than the items described below, significant commitments and contingencies at March 29, 2020 are consistent with those discussed in Note 15 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. ​ As of March 29, 2020, the Company estimates that the aggregate amount of reasonably possible loss in excess of the amount accrued for its legal contingencies is approximately $4.9 million pre-tax. With respect to the estimate of reasonably possible loss, management has estimated the upper end of the range of reasonably possible loss based on (i) the amount of money damages claimed, where applicable, (ii) the allegations and factual development to date, (iii) available defenses based on the allegations, and/or (iv) other potentially liable parties. This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. In the event of an unfavorable outcome in one or more of the matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters, as they are resolved over time, is not likely to have a material adverse effect on the financial condition of the Company, though the outcome could be material to the Company’s operating results for any particular period depending, in part, upon the operating results for such period. ​ Chemetco, Inc. Superfund Site, Hartford, Illinois ​ In August 2017, Watts Regulator Co. (a wholly-owned subsidiary of the Company) received a “Notice of Environmental Liability” from the Chemetco Site Group (“Group”) alleging that it is a potentially responsible party for the Chemetco, Inc. Superfund Site in Hartford, Illinois (the “Site”) because it arranged for the disposal or treatment of hazardous substances that were contained in materials sent to the Site and that resulted in the release or threat of release of hazardous substances at the Site. The letter offered Watts Regulator Co. the opportunity to join the Group and participate in the Remedial Investigation and Feasibility Study (“RI/FS”) at the Site. Watts Regulator Co. joined the Group in September 2017 and was added in March 2018 as a signatory to the Administrative Settlement Agreement and Order on Consent with the United States Environmental Protection Agency (“USEPA”) governing completion of the RI/FS. Based on information currently known to it, management believes that Watts Regulator Co.’s share of the costs of the RI/FS is not likely to have a material adverse effect on the financial condition of the Company, or have a material adverse effect on the Company’s operating results for any particular period. The Company is unable to estimate a range of reasonably possible loss for the above matter in which damages have not been specified because: (i) the RI/FS has not been completed to determine what remediation plan will be implemented and the costs of such plan; (ii) the total number of potentially responsible parties who may or may not agree to fund or perform any remediation has not yet been determined; (iii) the share contribution for potentially responsible parties to any remediation has not been determined; and (iv) the number of years required to implement a remediation plan acceptable to USEPA is uncertain. ​

Subsequent Events

Subsequent Events3 Months Ended
Mar. 29, 2020
Subsequent Events
Subsequent Events12. Subsequent Events ​ On May 4, 2020, the Company declared a quarterly dividend of twenty-three cents ($0.23) per share on each outstanding share of Class A common stock and Class B common stock payable on June 15, 2020 to stockholders of record on June 1, 2020. ​ The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business and geographies, including how it will impact its customers and supply chain. However, the Company is unable to predict the impact that the COVID-19 pandemic will have on its future financial condition, results of operations and cash flows due to numerous uncertainties. The Company intends to continue to assess the evolving impact of the COVID-19 pandemic and expects to continue to make adjustments to its responses to address the situation as it develops. Due to the anticipated financial impact of the COVID-19 pandemic on the business, the Company implemented reduction-in-force restructuring actions in April 2020 to realize cost savings for the balance of the year. ​

Accounting Policies (Policies)

Accounting Policies (Policies)3 Months Ended
Mar. 29, 2020
Accounting Policies
Recently Adopted Accounting StandardsRecently Adopted Accounting Standards ​ In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)-Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance requires an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. The Company adopted this standard in the first quarter of 2020, and it did not have a material impact on the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).” ASU 2016-13 replaces the incurred loss impairment methodology under current Generally Accepted Accounting Principles (“GAAP”) with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivable, loans, and other financial instruments. The financial assets for which this standard is applicable on the Company’s balance sheet are accounts receivable and contract assets. The standard requires the Company to pool financial assets based on similar risk and economic characteristics and estimate expected credit losses over the contractual life of the asset. This standard is effective for reporting periods beginning after December 15, 2019. The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company adopted this standard in the first quarter of 2020, and it did not have a material impact on the Company’s financial statements. Accounting Standards Updates In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standard.
Shipping and HandlingShipping and Handling ​ Shipping and handling costs included in selling, general and administrative expenses amounted to $14.0 million and $13.9 million for the first quarters of 2020 and 2019, respectively.
Research and DevelopmentResearch and Development ​ Research and development costs included in selling, general and administrative expenses amounted to $11.5 million and $9.3 million for the first quarters of 2020 and 2019, respectively.
EstimatesEstimates ​ The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 and the reported amounts of revenues and expenses during the reporting period. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. We are not aware of any specific event or circumstance that would require updates to the Company’s estimates or judgments or require the Company to revise the carrying value of the Company’s assets or liabilities as of May 7, 2020, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change as new events occur and additional information is obtained. Actual results could differ from those estimates. ​ COVID-19 ​

Revenue Recognition (Tables)

Revenue Recognition (Tables)3 Months Ended
Mar. 29, 2020
Revenue Recognition
Schedule of disaggregation of revenue​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 29, 2020 ​ ​ ​ ​ (in millions) ​ ​ Distribution Channel ​ Americas ​ Europe ​ APMEA ​ Consolidated Wholesale ​ $ 147.4 ​ $ 75.1 ​ $ 9.3 ​ $ 231.8 OEM ​ ​ 19.5 ​ 34.5 ​ 0.2 ​ 54.2 Specialty ​ ​ 78.4 ​ — ​ 0.5 ​ 78.9 DIY ​ 17.1 ​ 0.6 ​ — ​ 17.7 Total ​ $ 262.4 ​ $ 110.2 ​ $ 10.0 ​ $ 382.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 29, 2020 ​ ​ ​ ​ (in millions) ​ ​ Principal Product Line ​ Americas ​ Europe ​ APMEA ​ Consolidated Residential & Commercial Flow Control ​ $ 148.7 ​ $ 41.0 ​ $ 8.0 ​ $ 197.7 HVAC and Gas Products ​ ​ 67.6 ​ 44.4 ​ 1.6 ​ 113.6 Drainage and Water Re-use Products ​ ​ 18.5 ​ 23.9 ​ 0.3 ​ 42.7 Water Quality Products ​ 27.6 ​ 0.9 ​ 0.1 ​ 28.6 Total ​ $ 262.4 ​ $ 110.2 ​ $ 10.0 ​ $ 382.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 31, 2019 ​ ​ ​ ​ (in millions) ​ ​ Distribution Channel ​ Americas ​ Europe ​ APMEA ​ Consolidated Wholesale ​ $ 145.6 ​ $ 79.5 ​ $ 12.6 ​ $ 237.7 OEM ​ ​ 20.8 ​ 36.0 ​ 0.5 ​ 57.3 Specialty ​ ​ 76.1 ​ — ​ 0.4 ​ 76.5 DIY ​ 16.4 ​ 0.8 ​ — ​ 17.2 Total ​ $ 258.9 ​ $ 116.3 ​ $ 13.5 ​ $ 388.7 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 31, 2019 ​ ​ ​ ​ (in millions) ​ ​ Principal Product Line ​ Americas ​ Europe ​ APMEA ​ Consolidated Residential & Commercial Flow Control ​ $ 147.4 ​ $ 45.4 ​ $ 10.7 ​ $ 203.5 HVAC and Gas Products ​ ​ 68.7 ​ 48.5 ​ 2.1 ​ 119.3 Drainage and Water Re-use Products ​ ​ 18.1 ​ 21.9 ​ 0.5 ​ 40.5 Water Quality Products ​ 24.7 ​ 0.5 ​ 0.2 ​ 25.4 Total ​ $ 258.9 ​ $ 116.3 ​ $ 13.5 ​ $ 388.7
Schedule of contract assets and contract liabilities​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract ​ Contract ​ Contract ​ ​ Assets ​ Liabilities - Current ​ Liabilities - Noncurrent ​ ​ ​ ​ ​ (in millions) ​ ​ ​ Balance - January 1, 2020 ​ $ 0.4 ​ $ 11.5 ​ $ 2.9 Change in period ​ ​ (0.1) ​ ​ 0.2 ​ ​ (0.1) Balance - March 29, 2020 ​ $ 0.3 ​ $ 11.7 ​ $ 2.8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance - January 1, 2019 ​ $ 1.0 ​ $ 11.3 ​ $ 2.7 Change in period ​ ​ (0.7) ​ ​ 0.1 ​ ​ — Balance - March 31, 2019 ​ $ 0.3 ​ $ 11.4 ​ $ 2.7

Goodwill & Intangibles (Tables)

Goodwill & Intangibles (Tables)3 Months Ended
Mar. 29, 2020
Goodwill and Intangibles
Changes in the carrying amount of goodwill by geographic segment​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 29, 2020 ​ ​ Gross Balance ​ Accumulated Impairment Losses ​ Net Goodwill ​ ​ ​ ​ Acquired ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance ​ During ​ Currency ​ Balance ​ Balance ​ Impairment ​ Balance ​ ​ ​ ​ January 1, ​ the ​ Translation ​ March 29, ​ January 1, ​ Loss During ​ March 29, ​ March 29, ​ 2020 Period and Other 2020 2020 the Period 2020 2020 ​ ​ (in millions) Americas ​ $ 476.8 ​ ​ — ​ $ (0.8) ​ $ 476.0 ​ $ (24.5) ​ ​ — ​ $ (24.5) ​ $ 451.5 Europe ​ 241.4 ​ — ​ (2.4) ​ 239.0 ​ (129.7) ​ — ​ (129.7) ​ 109.3 APMEA ​ 30.0 ​ — ​ (1.9) ​ 28.1 ​ (12.9) ​ — ​ (12.9) ​ 15.2 Total ​ $ 748.2 ​ ​ — ​ $ (5.1) ​ $ 743.1 ​ $ (167.1) ​ ​ — ​ $ (167.1) ​ $ 576.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ ​ Gross Balance ​ Accumulated Impairment Losses ​ Net Goodwill ​ ​ ​ ​ Acquired ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance ​ During ​ Currency ​ Balance ​ Balance ​ Impairment ​ Balance ​ ​ ​ ​ January 1, ​ the ​ Translation ​ December 31, ​ January 1, ​ Loss During ​ December 31, ​ December 31, ​ 2019 Period and Other 2019 2019 the Period 2019 2019 ​ ​ (in millions) Americas ​ $ 438.1 ​ $ 38.3 ​ $ 0.4 ​ $ 476.8 ​ $ (24.5) ​ $ — ​ $ (24.5) ​ $ 452.3 Europe ​ 243.7 ​ — ​ (2.3) ​ 241.4 ​ (129.7) ​ — ​ (129.7) ​ 111.7 APMEA ​ 30.1 ​ — ​ (0.1) ​ 30.0 ​ (12.9) ​ — ​ (12.9) ​ 17.1 Total ​ $ 711.9 ​ $ 38.3 ​ $ (2.0) ​ $ 748.2 ​ $ (167.1) ​ $ — ​ $ (167.1) ​ $ 581.1
Schedule of Intangible assets​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 29, 2020 ​ December 31, 2019 ​ ​ Gross ​ ​ ​ ​ Net ​ Gross ​ ​ ​ ​ Net ​ ​ Carrying ​ Accumulated ​ Carrying ​ Carrying ​ Accumulated ​ Carrying ​ Amount Amortization Amount Amount Amortization Amount ​ ​ (in millions) Patents ​ $ 16.1 ​ $ (15.9) ​ $ 0.2 ​ $ 16.1 ​ $ (15.9) ​ $ 0.2 Customer relationships ​ 232.0 ​ (158.6) ​ 73.4 ​ 232.8 ​ (156.3) ​ 76.5 Technology ​ 56.7 ​ (32.7) ​ 24.0 ​ 56.9 ​ (31.6) ​ 25.3 Trade names ​ 25.8 ​ (13.5) ​ 12.3 ​ 26.0 ​ (13.1) ​ 12.9 Other ​ 4.3 ​ (3.6) ​ 0.7 ​ 4.3 ​ (3.6) ​ 0.7 Total amortizable intangibles ​ 334.9 ​ (224.3) ​ 110.6 ​ 336.1 ​ (220.5) ​ 115.6 Indefinite-lived intangible assets ​ 35.5 ​ — ​ 35.5 ​ 35.8 ​ — ​ 35.8 ​ ​ $ 370.4 ​ $ (224.3) ​ $ 146.1 ​ $ 371.9 ​ $ (220.5) ​ $ 151.4

Financial Instruments and Der_2

Financial Instruments and Derivative Instruments (Tables)3 Months Ended
Mar. 29, 2020
Financial Instruments and Derivative Instruments
Schedule of carrying amount and estimated fair market value of the company's long-term debt, including current portion​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 29, ​ December 31, ​ 2020 2019 ​ ​ (in millions) Carrying amount ​ $ 380.0 ​ $ 310.0 Estimated fair value ​ $ 380.7 ​ $ 310.5
Schedule of fair value of financial assets and liabilities​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at March 29, 2020 Using: ​ ​ ​ ​ ​ Quoted Prices in Active ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Markets for Identical ​ Observable ​ Unobservable ​ ​ ​ ​ ​ Assets ​ Inputs ​ Inputs ​ Total (Level 1) (Level 2) (Level 3) ​ ​ (in millions) Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan asset for deferred compensation(1) ​ $ 2.1 ​ $ 2.1 ​ $ — ​ $ — Designated foreign currency hedges (4) ​ $ 0.6 ​ $ — ​ $ 0.6 ​ $ — Total assets ​ $ 2.7 ​ $ 2.1 ​ $ 0.6 ​ $ — Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps (3) ​ $ 1.0 ​ $ — ​ $ 1.0 ​ $ — Plan liability for deferred compensation(2) ​ $ 2.1 ​ $ 2.1 ​ $ — ​ $ — Total liabilities ​ $ 3.1 ​ $ 2.1 ​ $ 1.0 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2019 Using: ​ ​ ​ ​ ​ Quoted Prices in Active ​ Significant Other ​ Significant ​ ​ ​ ​ ​ Markets for Identical ​ Observable ​ Unobservable ​ ​ ​ ​ Assets ​ Inputs ​ Inputs ​ ​ Total (Level 1) (Level 2) (Level 3) ​ ​ (in millions) Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan asset for deferred compensation(1) ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Interest rate swaps (1) ​ $ 1.2 ​ $ — ​ $ 1.2 ​ $ — Total assets ​ $ 3.7 ​ $ 2.5 ​ $ 1.2 ​ $ — Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan liability for deferred compensation(2) ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Designated foreign currency hedge(3) ​ $ 0.2 ​ $ — ​ $ 0.2 ​ $ — Total liabilities ​ $ 2.7 ​ $ 2.5 ​ $ 0.2 ​ $ — (1) Included on the Company’s consolidated balance sheet in other assets (other, net). ​ (2) Included on the Company’s consolidated balance sheet in accrued compensation and benefits. ​ (3) ​ (4) ​

Earnings per Share and Stock _2

Earnings per Share and Stock Repurchase Program (Tables)3 Months Ended
Mar. 29, 2020
Earnings per Share and Stock Repurchase Program
Summary of reconciliation of the calculation of earnings per share​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the First Quarter Ended March 29, 2020 ​ For the First Quarter Ended March 31, 2019 ​ ​ ​ Income ​ Shares ​ Per Share ​ Income ​ Shares ​ Per Share ​ ​ (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ​ ​ ​ (Amounts in millions, except per share information) ​ Basic EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 32.0 ​ 34.0 ​ $ 0.94 ​ $ 31.0 ​ 34.2 ​ $ 0.91 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock equivalents ​ ​ ​ ​ 0.1 ​ ​ — ​ ​ ​ — ​ ​ — ​ Diluted EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 32.0 ​ 34.1 ​ $ 0.94 ​ $ 31.0 34.2 ​ $ 0.91 ​ ​
Summary of the cost and number of Class A common stock repurchased​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the First Quarter Ended ​ For the First Quarter Ended ​ ​ March 29, 2020 ​ March 31, 2019 ​ ​ Number of shares ​ Cost of shares ​ Number of shares ​ Cost of shares ​ repurchased repurchased repurchased repurchased ​ ​ (Amounts in millions, except share amount) Stock repurchase programs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $100 million ​ — ​ ​ — ​ 74,409 ​ $ 5.6 $150 million ​ 174,707 ​ $ 14.7 ​ — ​ ​ — Total stock repurchased during the period: 174,707 ​ $ 14.7 74,409 ​ $ 5.6

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)3 Months Ended
Mar. 29, 2020
Stock-Based Compensation
Schedule of stock-based compensation fair value assumptions​ ​ ​ ​ ​ ​ ​ ​ 2020 2019 Expected life (years) ​ 3.0 ​ 3.0 ​ Expected stock price volatility 24.6 % 23.3 % Expected dividend yield 1.1 % 1.1 % Risk-free interest rate 0.6 % 2.5 %

Segment Information (Tables)

Segment Information (Tables)3 Months Ended
Mar. 29, 2020
Segment Information
Summary of the Company's significant accounts and balances by segment, reconciled to the consolidated totals​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 29, ​ March 31, ​ 2020 2019 ​ ​ (in millions) Net Sales ​ ​ ​ ​ Americas ​ $ 262.4 ​ $ 258.9 Europe ​ 110.2 ​ 116.3 APMEA ​ 10.0 ​ 13.5 Consolidated net sales ​ $ 382.6 ​ $ 388.7 Operating income (loss) ​ ​ ​ ​ ​ ​ Americas ​ $ 43.4 ​ $ 43.1 Europe ​ 13.7 ​ 13.2 APMEA ​ (0.1) ​ 1.3 Subtotal reportable segments ​ 57.0 ​ 57.6 Corporate(*) ​ (9.2) ​ (10.9) Consolidated operating income ​ 47.8 ​ 46.7 Interest income ​ (0.1) ​ (0.1) Interest expense ​ 3.0 ​ 3.6 Other expense, net ​ 0.3 ​ 0.5 Income before income taxes ​ $ 44.6 ​ $ 42.7 Capital Expenditures ​ ​ ​ ​ ​ ​ Americas ​ $ 6.6 ​ $ 3.9 Europe ​ 2.2 ​ 3.0 APMEA ​ 0.1 ​ — Consolidated capital expenditures ​ $ 8.9 ​ $ 6.9 Depreciation and Amortization ​ ​ ​ ​ ​ ​ Americas ​ $ 7.4 ​ $ 7.1 Europe ​ 3.4 ​ 3.6 APMEA ​ 0.6 ​ 0.7 Consolidated depreciation and amortization ​ $ 11.4 ​ $ 11.4 Identifiable assets (at end of period) ​ ​ ​ ​ ​ ​ Americas ​ $ 1,155.4 ​ $ 1,050.1 Europe ​ 519.6 ​ 524.9 APMEA ​ 92.4 ​ 108.4 Consolidated identifiable assets ​ $ 1,767.4 ​ $ 1,683.4 Property, plant and equipment, net (at end of period) ​ ​ ​ ​ ​ ​ Americas ​ $ 121.0 ​ $ 114.3 Europe ​ 75.4 ​ 78.7 APMEA ​ 5.4 ​ 6.6 Consolidated property, plant and equipment, net ​ $ 201.8 ​ $ 199.6 * Corporate expenses are primarily for administrative compensation expense, compliance costs, professional fees, including corporate-related legal and audit expenses, shareholder services and benefit administration costs.
Schedule of U.S. net sales of the Company's Americas segment​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 29, ​ March 31, ​ 2020 2019 ​ ​ (in millions) U.S. net sales ​ $ 246.7 ​ $ 243.5
Schedule of intersegment sales for Americas, EMEA and Asia-Pacific​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 29, ​ March 31, ​ 2020 2019 ​ ​ (in millions) Intersegment Sales ​ ​ ​ ​ Americas ​ $ 2.4 ​ $ 2.9 Europe ​ 4.1 ​ 3.6 APMEA ​ 13.6 ​ 16.9 Intersegment sales ​ $ 20.1 ​ $ 23.4

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)3 Months Ended
Mar. 29, 2020
Accumulated Other Comprehensive Loss
Schedule of amounts recognized in accumulated other comprehensive income (loss)​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ Foreign ​ ​ ​ ​ Other ​ ​ Currency ​ ​ Cash Flow ​ Comprehensive ​ Translation ​ Hedges (1) Loss ​ ​ (in millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance December 31, 2019 ​ $ (131.3) ​ $ 0.5 ​ $ (130.8) Change in period ​ (16.5) ​ (0.9) ​ (17.4) Balance March 29, 2020 ​ $ (147.8) ​ $ (0.4) ​ $ (148.2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance December 31, 2018 ​ $ (126.3) ​ $ 5.2 ​ $ (121.1) Change in period ​ (4.6) ​ (1.3) ​ (5.9) Balance March 31, 2019 ​ $ (130.9) ​ $ 3.9 ​ $ (127.0) (1) Cash flow hedges include interest rate swaps and designated foreign currency hedges. See Note 5 for further details.

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Millions3 Months Ended
Mar. 29, 2020USD ($)
Length of fiscal year365 days
Length of fiscal quarter91 days
Estimated percent of deferred payroll taxes due in 202150.00%
Estimated percent of deferred payroll taxes due in 202250.00%
Minimum
Estimated payroll tax deferral $ 4
Maximum
Estimated payroll tax deferral $ 5

Accounting Policies - Other (De

Accounting Policies - Other (Details) - USD ($) $ in Millions3 Months Ended
Mar. 29, 2020Mar. 31, 2019
Shipping and Handling
Shipping and handling $ 14 $ 13.9
Research and Development
Research and development costs included in selling, general, and administrative expense $ 11.5 $ 9.3

Revenue Recognition (Details)

Revenue Recognition (Details) $ in Millions3 Months Ended
Mar. 29, 2020Mar. 29, 2020itemMar. 29, 2020USD ($)Mar. 29, 2020segmentMar. 31, 2019USD ($)
Disaggregation of Revenue
Number of distribution channels | item4
Number of geographic segments3 3
Revenue $ 382.6 $ 388.7
Minimum
Disaggregation of Revenue
Period of Business Operations140 years
Wholesale
Disaggregation of Revenue
Revenue231.8 237.7
OEM
Disaggregation of Revenue
Revenue54.2 57.3
Specialty
Disaggregation of Revenue
Revenue78.9 76.5
DIY
Disaggregation of Revenue
Revenue17.7 17.2
Residential & Commercial Flow Control
Disaggregation of Revenue
Revenue197.7 203.5
HVAC & Gas Products
Disaggregation of Revenue
Revenue113.6 119.3
Drainage & Water Re-use Products
Disaggregation of Revenue
Revenue42.7 40.5
Water Quality Products
Disaggregation of Revenue
Revenue28.6 25.4
Americas
Disaggregation of Revenue
Revenue262.4 258.9
Americas | Wholesale
Disaggregation of Revenue
Revenue147.4 145.6
Americas | OEM
Disaggregation of Revenue
Revenue19.5 20.8
Americas | Specialty
Disaggregation of Revenue
Revenue78.4 76.1
Americas | DIY
Disaggregation of Revenue
Revenue17.1 16.4
Americas | Residential & Commercial Flow Control
Disaggregation of Revenue
Revenue148.7 147.4
Americas | HVAC & Gas Products
Disaggregation of Revenue
Revenue67.6 68.7
Americas | Drainage & Water Re-use Products
Disaggregation of Revenue
Revenue18.5 18.1
Americas | Water Quality Products
Disaggregation of Revenue
Revenue27.6 24.7
Europe
Disaggregation of Revenue
Revenue110.2 116.3
Europe | Wholesale
Disaggregation of Revenue
Revenue75.1 79.5
Europe | OEM
Disaggregation of Revenue
Revenue34.5 36
Europe | DIY
Disaggregation of Revenue
Revenue0.6 0.8
Europe | Residential & Commercial Flow Control
Disaggregation of Revenue
Revenue41 45.4
Europe | HVAC & Gas Products
Disaggregation of Revenue
Revenue44.4 48.5
Europe | Drainage & Water Re-use Products
Disaggregation of Revenue
Revenue23.9 21.9
Europe | Water Quality Products
Disaggregation of Revenue
Revenue0.9 0.5
APMEA
Disaggregation of Revenue
Revenue10 13.5
APMEA | Wholesale
Disaggregation of Revenue
Revenue9.3 12.6
APMEA | OEM
Disaggregation of Revenue
Revenue0.2 0.5
APMEA | Specialty
Disaggregation of Revenue
Revenue0.5 0.4
APMEA | Residential & Commercial Flow Control
Disaggregation of Revenue
Revenue8 10.7
APMEA | HVAC & Gas Products
Disaggregation of Revenue
Revenue1.6 2.1
APMEA | Drainage & Water Re-use Products
Disaggregation of Revenue
Revenue0.3 0.5
APMEA | Water Quality Products
Disaggregation of Revenue
Revenue $ 0.1 $ 0.2

Revenue Recognition - Performan

Revenue Recognition - Performance obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01Mar. 29, 2020
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period1 year
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period3 years

Revenue Recognition - Contract

Revenue Recognition - Contract Liabilities (Details) - USD ($) $ in Millions3 Months Ended
Mar. 29, 2020Mar. 31, 2019Jan. 01, 2020Jan. 01, 2019
Contract with Customer, Asset
Contract Assets $ 0.3 $ 0.3 $ 0.4 $ 1
Change in period(0.1)(0.7)
Contract Liabilities
Contract Liabilities - Current11.7 11.4 11.5 11.3
Increase (decrease) - Current Liabilities0.2 0.1
Contract Liabilities - Noncurrent2.8 2.7 $ 2.9 $ 2.7
Increase (decrease) - Noncurrent Liabilities(0.1)
Revenue recognized, contract liability2.3 3.3
Impairment loss related to Contract Assets $ 0 $ 0

Goodwill and Intangibles - Good

Goodwill and Intangibles - Goodwill (Details) $ in Millions3 Months Ended12 Months Ended15 Months Ended
Mar. 29, 2020USD ($)itemMar. 31, 2019USD ($)itemDec. 31, 2019USD ($)Mar. 29, 2020USD ($)item
Gross Balance
Balance at the beginning of the period $ 748.2 $ 711.9 $ 711.9 $ 711.9
Acquired During the Period38.3
Foreign Currency Translation and Other(5.1)(2)
Balance at the end of the period743.1 748.2 743.1
Accumulated Impairment Losses
Balance at the beginning of the period(167.1) $ (167.1)(167.1)(167.1)
Balance at the end of the period(167.1)(167.1)(167.1)
Net Goodwill $ 576 581.1 $ 576
Number of reporting units | item7 7 7
Heating and Hot Water Solutions
Gross Balance
Balance at the end of the period $ 218.9 $ 218.9
Americas
Gross Balance
Balance at the beginning of the period476.8 $ 438.1 438.1 438.1
Acquired During the Period38.3
Foreign Currency Translation and Other(0.8)0.4
Balance at the end of the period476 476.8 476
Accumulated Impairment Losses
Balance at the beginning of the period(24.5)(24.5)(24.5)(24.5)
Balance at the end of the period(24.5)(24.5)(24.5)
Net Goodwill451.5 452.3 451.5
Europe
Gross Balance
Balance at the beginning of the period241.4 243.7 243.7 243.7
Foreign Currency Translation and Other(2.4)(2.3)
Balance at the end of the period239 241.4 239
Accumulated Impairment Losses
Balance at the beginning of the period(129.7)(129.7)(129.7)(129.7)
Balance at the end of the period(129.7)(129.7)(129.7)
Net Goodwill109.3 111.7 109.3
APMEA
Gross Balance
Balance at the beginning of the period30 30.1 30.1 30.1
Foreign Currency Translation and Other(1.9)(0.1)
Balance at the end of the period28.1 30 28.1
Accumulated Impairment Losses
Balance at the beginning of the period(12.9) $ (12.9)(12.9)(12.9)
Balance at the end of the period(12.9)(12.9)(12.9)
Net Goodwill $ 15.2 $ 17.1 $ 15.2

Goodwill and Intangibles - Inta

Goodwill and Intangibles - Intangibles (Details) - USD ($) $ in Millions3 Months Ended
Mar. 29, 2020Mar. 31, 2019Dec. 31, 2019
Intangible assets subject to amortization
Gross Carrying Amount $ 334.9 $ 336.1
Accumulated Amortization(224.3)(220.5)
Net Carrying Amount110.6 115.6
Indefinite-lived intangible assets
Indefinite-lived intangible assets35.5 35.8
Intangible assets
Gross Carrying Amount370.4 371.9
Net Carrying Amount146.1 151.4
Aggregate amortization expense for amortized intangible assets3.8 $ 3.9
Patents
Intangible assets subject to amortization
Gross Carrying Amount16.1 16.1
Accumulated Amortization(15.9)(15.9)
Net Carrying Amount0.2 0.2
Customer relationships
Intangible assets subject to amortization
Gross Carrying Amount232 232.8
Accumulated Amortization(158.6)(156.3)
Net Carrying Amount73.4 76.5
Technology
Intangible assets subject to amortization
Gross Carrying Amount56.7 56.9
Accumulated Amortization(32.7)(31.6)
Net Carrying Amount24 25.3
Trade name
Intangible assets subject to amortization
Gross Carrying Amount25.8 26
Accumulated Amortization(13.5)(13.1)
Net Carrying Amount12.3 12.9
Other
Intangible assets subject to amortization
Gross Carrying Amount4.3 4.3
Accumulated Amortization(3.6)(3.6)
Net Carrying Amount $ 0.7 $ 0.7

Financial Instruments and Der_3

Financial Instruments and Derivative Instruments - Fair Value (Details) - USD ($) $ in MillionsMar. 29, 2020Dec. 31, 2019
Long-term debt
Carrying amount $ 380 $ 310
Estimated fair value $ 380.7 $ 310.5
5.05% Senior notes due 2020
Senior notes
Interest rate (as a percent)5.05%

Financial Instruments and Der_4

Financial Instruments and Derivative Instruments - Fair Value on a Recurring Basis (Details) - Fair value measured on a recurring basis - USD ($) $ in MillionsMar. 29, 2020Dec. 31, 2019
Assets
Plan assets for deferred compensation $ 2.1 $ 2.5
Total assets2.7 3.7
Liabilities
Plan liabilities for deferred compensation2.1 2.5
Derivative liabilities0.2
Total liabilities3.1 2.7
Interest Rate Swaps
Assets
Derivative assets1.2
Liabilities
Derivative liabilities1
Forward exchange contracts
Assets
Derivative assets0.6
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Plan assets for deferred compensation2.1 2.5
Total assets2.1 2.5
Liabilities
Plan liabilities for deferred compensation2.1 2.5
Total liabilities2.1 2.5
Significant Other Observable Inputs (Level 2)
Assets
Total assets0.6 1.2
Liabilities
Derivative liabilities0.2
Total liabilities1 0.2
Significant Other Observable Inputs (Level 2) | Interest Rate Swaps
Assets
Derivative assets $ 1.2
Liabilities
Derivative liabilities1
Significant Other Observable Inputs (Level 2) | Forward exchange contracts
Assets
Derivative assets $ 0.6

Financial Instruments and Der_5

Financial Instruments and Derivative Instruments - Interest Rate Swaps and Non-Designated Cash Flow Hedge (Details) $ in MillionsFeb. 12, 2016USD ($)itemMar. 29, 2020USD ($)Mar. 31, 2019USD ($)Dec. 31, 2019Apr. 24, 2020USD ($)
Derivative instruments
Percentage of projected intercompany purchases hedged by forward exchange contracts60.00%
Period of projected intercompany purchase transactions12 months12 months
Minimum
Derivative instruments
Percentage of projected intercompany purchases hedged by forward exchange contracts70.00%
Maximum
Derivative instruments
Percentage of projected intercompany purchases hedged by forward exchange contracts80.00%
Term loan facility | Term Loan due February 2021
Interest Rate Swaps
Face amount $ 300
Amount drawn $ 300
Senior unsecured revolving credit facility
Interest Rate Swaps
Amount drawn80
Borrowing capacity $ 500 500 $ 800
Forward exchange contracts | Designated
Derivative instruments
Designated foreign currency hedges0.6
Amount of Gain or (Loss) Recognized in Income on Derivatives
Amount expected to be reclassified $ (0.2)
Period of time for expected reclassification12 months
Canadian Dollar to US Dollar Contracts
Interest Rate Swaps
Derivative notional amount $ 13.5
Interest Rate Swaps | Designated | Cash Flow Hedging
Interest Rate Swaps
Number of derivative contracts entered | item2
Derivative fixed interest rate1.31375%
Derivative notional amount $ 225
Gain (loss) recognized in Accumulated Other Comprehensive Loss, effective portion $ (1.6) $ (1.3)
Interest Rate Swaps | Designated | Cash Flow Hedging | LIBOR
Interest Rate Swaps
Derivative, floor interest rate0.00%

Earnings per Share and Stock _3

Earnings per Share and Stock Repurchase Program (Details) $ / shares in Units, $ in Millions3 Months Ended9 Months Ended
Mar. 29, 2020USD ($)item$ / sharessharesSep. 29, 2019sharesMar. 31, 2019USD ($)item$ / sharessharesSep. 29, 2019sharesFeb. 06, 2019USD ($)Jul. 27, 2015USD ($)
Net (loss) income
Net income $ 32 $ 31
Shares
Shares (in shares) | shares34,000,000 34,200,000
Per Share Amount
Net income (in dollars per share) | $ / shares $ 0.94 $ 0.91
Dilutive securities, principally common stock options
Common stock equivalents (in shares) | shares100,000
Net (loss) income
Net income $ 32 $ 31
Weighted average number of shares:
Shares (in shares) | shares34,100,000 34,200,000
Securities not included in the computation of diluted EPS
Net income (in dollars per share) | $ / shares $ 0.94 $ 0.91
Dilutive securities, principally common stock options
Options to purchase shares of Class A common stock, anti-dilutive | shares0 0
Shares repurchased
Number of shares repurchased | shares174,707 74,409
Cost of shares repurchased $ 14.7 $ 5.6
Number of stock repurchase programs | item2 2
July 27, 2015
Shares repurchased
Value of shares of the entity's Class A common stock authorized to be repurchased $ 100
Number of shares repurchased | shares74,409
Cost of shares repurchased $ 5.6
July 27, 2015 | Class A
Shares repurchased
Value of shares of the entity's Class A common stock authorized to be repurchased $ 100
February 6, 2019
Shares repurchased
Value of shares of the entity's Class A common stock authorized to be repurchased $ 150
Number of shares repurchased | shares174,707
Cost of shares repurchased $ 14.7
February 6, 2019 | Class A
Shares repurchased
Value of shares of the entity's Class A common stock authorized to be repurchased $ 150
Remaining authorized repurchase amount $ 127.6

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - $ / shares3 Months Ended12 Months Ended
Mar. 29, 2020Mar. 31, 2019Dec. 31, 2019
Second Amended and Restated 2004 Stock Incentive Plan
Stock-based compensation
Vesting period3 years
Second Amended and Restated 2004 Stock Incentive Plan | Restricted Stock and Deferred Shares
Stock-based compensation
Granted (in shares)80,052 89,053
Second Amended and Restated 2004 Stock Incentive Plan | Performance stock units
Stock-based compensation
Vesting period3 years
Granted (in shares)73,106 82,898
Management Stock Purchase Plan | Maximum
Stock-based compensation
Percentage of annual incentive bonus that may be used to purchase RSU's50.00%
Management Stock Purchase Plan | Class A
Stock-based compensation
Purchase price as percentage of fair market value of common stock on grant date80.00%
Management Stock Purchase Plan | Restricted stock units (RSUs)
Stock-based compensation
Granted (in shares)27,495 36,670
Fair value assumptions
Expected life (years)3 years3 years
Expected stock price volatility (as a percent)24.60%23.30%
Expected dividend yield (as a percent)1.10%1.10%
Risk-free interest rate (as a percent)0.60%2.50%
Weighted average grant-date fair value (in dollars per share) $ 22.36 $ 22.16

Segment Information (Details)

Segment Information (Details) $ in Millions3 Months Ended
Mar. 29, 2020USD ($)itemMar. 29, 2020USD ($)Mar. 29, 2020USD ($)segmentMar. 31, 2019USD ($)Dec. 31, 2019USD ($)
Segment information
Number of geographic segments3 3
Revenue $ 382.6 $ 388.7
Consolidated operating income (loss)47.8 46.7
Interest income(0.1)(0.1)
Interest expense3 3.6
Other expense, net0.3 0.5
INCOME BEFORE INCOME TAXES44.6 42.7
Capital Expenditures8.9 6.9
Depreciation and Amortization11.4 11.4
Identifiable assets (at end of period) $ 1,767.4 1,767.4 $ 1,767.4 1,683.4 $ 1,723.1
Property, plant and equipment, net (at end of period)201.8 201.8 201.8 199.6 $ 200
Residential & Commercial Flow Control
Segment information
Revenue197.7 203.5
HVAC & Gas Products
Segment information
Revenue113.6 119.3
Drainage & Water Re-use Products
Segment information
Revenue42.7 40.5
Water Quality Products
Segment information
Revenue28.6 25.4
U.S.
Segment information
Property, plant and equipment, net (at end of period)117.2 117.2 117.2 110.3
Reportable segments
Segment information
Consolidated operating income (loss)57 57.6
Corporate
Segment information
Consolidated operating income (loss)(9.2)(10.9)
Intersegment sales
Segment information
Revenue20.1 23.4
Americas
Segment information
Revenue262.4 258.9
Capital Expenditures6.6 3.9
Depreciation and Amortization7.4 7.1
Identifiable assets (at end of period)1,155.4 1,155.4 1,155.4 1,050.1
Property, plant and equipment, net (at end of period)121 121 121 114.3
Americas | Residential & Commercial Flow Control
Segment information
Revenue148.7 147.4
Americas | HVAC & Gas Products
Segment information
Revenue67.6 68.7
Americas | Drainage & Water Re-use Products
Segment information
Revenue18.5 18.1
Americas | Water Quality Products
Segment information
Revenue27.6 24.7
Americas | U.S.
Segment information
Revenue246.7 243.5
Americas | Reportable segments
Segment information
Consolidated operating income (loss)43.4 43.1
Americas | Intersegment sales
Segment information
Revenue2.4 2.9
Europe
Segment information
Revenue110.2 116.3
Capital Expenditures2.2 3
Depreciation and Amortization3.4 3.6
Identifiable assets (at end of period)519.6 519.6 519.6 524.9
Property, plant and equipment, net (at end of period)75.4 75.4 75.4 78.7
Europe | Residential & Commercial Flow Control
Segment information
Revenue41 45.4
Europe | HVAC & Gas Products
Segment information
Revenue44.4 48.5
Europe | Drainage & Water Re-use Products
Segment information
Revenue23.9 21.9
Europe | Water Quality Products
Segment information
Revenue0.9 0.5
Europe | Reportable segments
Segment information
Consolidated operating income (loss)13.7 13.2
Europe | Intersegment sales
Segment information
Revenue4.1 3.6
APMEA
Segment information
Revenue10 13.5
Capital Expenditures0.1
Depreciation and Amortization0.6 0.7
Identifiable assets (at end of period)92.4 92.4 92.4 108.4
Property, plant and equipment, net (at end of period) $ 5.4 5.4 $ 5.4 6.6
APMEA | Residential & Commercial Flow Control
Segment information
Revenue8 10.7
APMEA | HVAC & Gas Products
Segment information
Revenue1.6 2.1
APMEA | Drainage & Water Re-use Products
Segment information
Revenue0.3 0.5
APMEA | Water Quality Products
Segment information
Revenue0.1 0.2
APMEA | Reportable segments
Segment information
Consolidated operating income (loss)(0.1)1.3
APMEA | Intersegment sales
Segment information
Revenue $ 13.6 $ 16.9

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions3 Months Ended
Mar. 29, 2020Mar. 31, 2019
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period $ (130.8)
Balance at the end of the period(148.2)
Foreign Currency Translation
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period(131.3) $ (126.3)
Change in period(16.5)(4.6)
Balance at the end of the period(147.8)(130.9)
Cash Flow Hedges
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period0.5 5.2
Change in period(0.9)(1.3)
Balance at the end of the period(0.4)3.9
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period(130.8)(121.1)
Change in period(17.4)(5.9)
Balance at the end of the period $ (148.2) $ (127)

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) - USD ($)Apr. 24, 2020Feb. 12, 2016Mar. 29, 2020Mar. 31, 2019
Letters of credit
Credit Agreement
Term of debt1 year
Stand-by letters of credit outstanding $ 15,800,000 $ 25,800,000
5.05% Senior notes due 2020
Credit Agreement
Interest rate (as a percent)5.05%
Credit Agreement
Credit Agreement
Term of debt5 years
Sublimit on letters of credit $ 100,000,000 $ 100,000,000
Eurocurrency rate loans | LIBOR
Credit Agreement
Minimum base rate (as a percent) $ 1
Eurocurrency rate loans | LIBOR | Minimum
Credit Agreement
Interest rate added to base rate (as a percent)1.50%
Eurocurrency rate loans | LIBOR | Maximum
Credit Agreement
Interest rate added to base rate (as a percent)2.10%
Base rate loans and swing line loans
Credit Agreement
Minimum base rate (as a percent) $ 2
Base rate loans and swing line loans | LIBOR
Credit Agreement
Interest rate (as a percent)1.00%
Base rate loans and swing line loans | Prime Rate
Credit Agreement
Interest rate (as a percent)0.50%
Senior unsecured revolving credit facility
Credit Agreement
Borrowing capacity $ 800,000,000 $ 500,000,000 $ 500,000,000
Amount drawn $ 80,000,000
Extension period1 year
Interest rate on revolving credit facility (as a percent)1.83%
Unused and available credit under the credit agreement $ 404,200,000
Stand-by letters of credit outstanding $ 15,800,000
Term loan facility | Term Loan due February 2021
Credit Agreement
Term of debt5 years
Face amount $ 300,000,000
Interest rate (as a percent)2.86%
Amount drawn $ 300,000,000
Borrowings outstanding $ 225,000,000 $ 247,500,000
Swing Line Loans
Credit Agreement
Borrowing capacity $ 15,000,000

Contingencies and Environment_2

Contingencies and Environmental Remediation (Details) $ in MillionsMar. 29, 2020USD ($)
Contingencies and Environmental Remediation
Possible loss $ 4.9

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent eventMay 04, 2020$ / shares
Class A
Subsequent events
Quarterly dividend payable (in dollars per share) $ 0.23
Class B
Subsequent events
Quarterly dividend payable (in dollars per share) $ 0.23