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WTS Watts Water

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 28, 2021Apr. 25, 2021
Document Type10-Q
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateMar. 28,
2021
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 Focus2021
Document Fiscal Period FocusQ1
Entity Central Index Key0000795403
Amendment Flagfalse
Class A
Entity Common Stock, Shares Outstanding27,547,434
Class B
Entity Common Stock, Shares Outstanding6,124,290

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in MillionsMar. 28, 2021Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents $ 225.4 $ 218.9
Trade accounts receivable, less reserve allowances of $11.9 million at March 28, 2021 and $11.1 million at December 31, 2020238.6 197.6
Raw materials92.5 79.6
Work in process17.1 16.1
Finished goods169.4 167.9
Total Inventories279 263.6
Prepaid expenses and other current assets31.6 29.4
Total Current Assets774.6 709.5
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, at cost602.1 608.6
Accumulated depreciation(396.3)(396.3)
Property, plant and equipment, net205.8 212.3
OTHER ASSETS:
Goodwill597.3 602.4
Intangible assets, net137 141.8
Deferred income taxes4.4 4.4
Other, net65.3 67.8
TOTAL ASSETS1,784.4 1,738.2
CURRENT LIABILITIES:
Accounts payable141.5 110.1
Accrued expenses and other liabilities145.5 137.4
Accrued compensation and benefits58.2 65.3
Total Current Liabilities345.2 312.8
LONG-TERM DEBT, NET OF CURRENT PORTION198.6 198.2
DEFERRED INCOME TAXES54.3 51.1
OTHER NONCURRENT LIABILITIES105.1 106.3
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding
Additional paid-in capital611 606.3
Retained earnings581 560.1
Accumulated other comprehensive loss(114.2)(100)
Total Stockholders' Equity1,081.2 1,069.8
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY1,784.4 1,738.2
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. 28, 2021USD ($)$ / sharessharesDec. 31, 2020USD ($)$ / sharesshares
Trade accounts receivable, reserve allowances | $ $ 11.9 $ 11.1
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 shares27,585,082 27,478,512
Common Stock, outstanding shares27,585,082 27,478,512
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 shares6,124,290 6,144,290
Common Stock, outstanding shares6,124,290 6,144,290

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions3 Months Ended
Mar. 28, 2021Mar. 29, 2020
Consolidated Statements of Operations
Net sales $ 413.3 $ 382.6
Cost of goods sold239.6 219.8
GROSS PROFIT173.7 162.8
Selling, general and administrative expenses113.8 115
Restructuring0.3
OPERATING INCOME59.6 47.8
Other (income) expense:
Interest income(0.1)
Interest expense2 3
Other expense (income), net(0.3)0.3
Total other expense1.7 3.2
INCOME BEFORE INCOME TAXES57.9 44.6
Provision for income taxes16.2 12.6
NET INCOME $ 41.7 $ 32
Basic EPS
NET INCOME PER SHARE $ 1.23 $ 0.94
Weighted average number of shares33.8 34
Diluted EPS
NET INCOME PER SHARE $ 1.23 $ 0.94
Weighted average number of shares33.9 34.1
Dividends declared per share $ 0.23 $ 0.23

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions3 Months Ended
Mar. 28, 2021Mar. 29, 2020
Consolidated Statements of Comprehensive Income
Net income $ 41.7 $ 32
Other comprehensive loss net of tax:
Foreign currency translation adjustments(14.1)(16.5)
Cash flow hedges(0.1)(0.9)
Other comprehensive income (loss)(14.2)(17.4)
Comprehensive income $ 27.5 $ 14.6

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, 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(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
Increase (Decrease) in Stockholders' Equity
Change in accounting principle560.1
Balance at the beginning of the period at Dec. 31, 2020 $ 2.8 $ 0.6 606.3 560.1 (100)1,069.8
Balance (in shares) at Dec. 31, 202027,478,512 6,144,290
Increase (Decrease) in Stockholders' Equity
Net income41.7 41.7
Other comprehensive income(14.2)(14.2)
Comprehensive income27.5
Shares of Class B common stock converted to Class A common stock (in shares)20,000 (20,000)
Stock-based compensation2.9 2.9
Stock repurchase(3.8)(3.8)
Stock repurchase (in shares)(31,153)
Net change in restricted stock units1.8 (9.2)(7.4)
Net change in restricted and performance stock units (in shares)117,723
Common stock dividends(7.8)(7.8)
Balance at the end of the period at Mar. 28, 2021 $ 2.8 $ 0.6 $ 611 $ 581 $ (114.2)1,081.2
Balance (in shares) at Mar. 28, 202127,585,082 6,124,290
Increase (Decrease) in Stockholders' Equity
Change in accounting principle $ 581

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions3 Months Ended
Mar. 28, 2021Mar. 29, 2020
OPERATING ACTIVITIES
Net income $ 41.7 $ 32
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation8 7.6
Amortization of intangibles3.8 3.8
Loss on disposal and impairment of property, plant and equipment and other0.6
Stock-based compensation2.9 3.6
Deferred income tax4.3 3.9
Changes in operating assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivable(44)(20.6)
Inventories(18.8)(12.7)
Prepaid expenses and other assets(4.6)(4.6)
Accounts payable, accrued expenses and other liabilities40 (13.9)
Net cash provided by (used in) operating activities33.9 (0.9)
INVESTING ACTIVITIES
Additions to property, plant and equipment(4.9)(8.9)
Proceeds from sale of property, plant, and equipment2.9 1.4
Net cash used in investing activities(2)(7.5)
FINANCING ACTIVITIES
Proceeds from long-term borrowings20 70
Payments of long-term debt(20)
Payments for withholding taxes on vested awards(9.2)(7.7)
Payments for finance leases and other(0.4)(0.5)
Payments to repurchase common stock(3.8)(14.7)
Dividends(7.8)(8)
Net cash (used in) provided by financing activities(21.2)39.1
Effect of exchange rate changes on cash and cash equivalents(4.2)(5)
INCREASE IN CASH AND CASH EQUIVALENTS6.5 25.7
Cash and cash equivalents at beginning of year218.9 219.7
CASH AND CASH EQUIVALENTS AT END OF PERIOD225.4 245.4
NON CASH INVESTING AND FINANCING ACTIVITIES
Issuance of stock under management stock purchase plan0.5 0.7
CASH PAID FOR:
Interest2.3 2.5
Income taxes $ 5 $ 5

Basis of Presentation

Basis of Presentation3 Months Ended
Mar. 28, 2021
Basis of Presentation
Basis of Presentation1. 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 28, 2021, the Consolidated Statements of Operations for the first quarters ended March 28, 2021 and March 29, 2020, the Consolidated Statements of Comprehensive Income for the first quarters ended March 28, 2021 and March 29, 2020, the Consolidated Statements of Stockholders’ Equity for the first quarters ended March 28, 2021 and March 29, 2020, and the Consolidated Statements of Cash Flows for the first quarters ended March 28, 2021 and March 29, 2020. ​ The consolidated balance sheet at December 31, 2020 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, 2020. 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, 2020. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021, and may be further impacted by the 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. The COVID-19 pandemic has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 continues to impact the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. 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 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.

Accounting Policies

Accounting Policies3 Months Ended
Mar. 28, 2021
Accounting Policies
Accounting Policies2. Accounting Policies ​ The significant accounting policies used in preparation of these consolidated financial statements for the first quarter ended March 28, 2021 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, 2020. ​ Recently Adopted Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The effective date for adoption of this ASU is the calendar year beginning January 1, 2021 with early adoption permitted. The Company adopted this standard in the first quarter of 2021, 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 $15.4 million and $14.0 million for the first quarters of 2021 and 2020, respectively. ​ Research and Development ​ Research and development costs included in selling, general and administrative expenses amounted to $10.9 million and $11.5 million for the first quarters of 2021 and 2020, respectively.

Revenue Recognition

Revenue Recognition3 Months Ended
Mar. 28, 2021
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, thermostatic mixing valves and leak detection products. ● 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 28, 2021 ​ ​ ​ ​ (in millions) ​ ​ Distribution Channel ​ Americas ​ Europe ​ APMEA ​ Consolidated Wholesale ​ $ 157.4 ​ $ 80.9 ​ $ 16.6 ​ $ 254.9 OEM ​ ​ 20.4 ​ 41.1 ​ 1.0 ​ 62.5 Specialty ​ ​ 74.2 ​ — ​ — ​ 74.2 DIY ​ 20.8 ​ 0.9 ​ — ​ 21.7 Total ​ $ 272.8 ​ $ 122.9 ​ $ 17.6 ​ $ 413.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 28, 2021 ​ ​ ​ ​ (in millions) ​ ​ Principal Product Line ​ Americas ​ Europe ​ APMEA ​ Consolidated Residential & Commercial Flow Control ​ $ 162.3 ​ $ 47.2 ​ $ 14.7 ​ $ 224.2 HVAC and Gas Products ​ ​ 65.9 ​ 54.2 ​ 2.3 ​ 122.4 Drainage and Water Re-use Products ​ ​ 18.6 ​ 20.3 ​ 0.4 ​ 39.3 Water Quality Products ​ 26.0 ​ 1.2 ​ 0.2 ​ 27.4 Total ​ $ 272.8 ​ $ 122.9 ​ $ 17.6 ​ $ 413.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 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 these extended warranties and service policies to be separate performance obligations. 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, 2021 ​ $ — ​ $ 13.5 ​ $ 2.5 Change in period ​ ​ — ​ ​ 1.0 ​ ​ (0.2) Balance - March 28, 2021 ​ $ — ​ $ 14.5 ​ $ 2.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ The amount of revenue recognized that was included in the opening contract liability balance was $3.7 million and $2.3 million for the first quarters ended March 28, 2021 and March 29, 2020, 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. 28, 2021
Goodwill & 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 28, 2021 ​ ​ Gross Balance ​ Accumulated Impairment Losses ​ Net Goodwill ​ ​ ​ ​ Acquired ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance ​ During ​ Currency ​ Balance ​ Balance ​ Impairment ​ Balance ​ ​ ​ ​ January 1, ​ the ​ Translation ​ March 28, ​ January 1, ​ Loss During ​ March 28, ​ March 28, ​ 2021 Period and Other 2021 2021 the Period 2021 2021 ​ ​ (in millions) Americas ​ $ 482.5 ​ ​ — ​ $ 0.1 ​ $ 482.6 ​ $ (24.5) ​ ​ — ​ $ (24.5) ​ $ 458.1 Europe ​ 252.1 ​ — ​ (4.6) ​ 247.5 ​ (129.7) ​ — ​ (129.7) ​ 117.8 APMEA ​ 34.9 ​ — ​ (0.6) ​ 34.3 ​ (12.9) ​ — ​ (12.9) ​ 21.4 Total ​ $ 769.5 ​ ​ — ​ $ (5.1) ​ $ 764.4 ​ $ (167.1) ​ ​ — ​ $ (167.1) ​ $ 597.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ 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, ​ 2020 Period and Other 2020 2020 the Period 2020 2020 ​ ​ (in millions) Americas ​ $ 476.8 ​ $ 5.5 ​ $ 0.2 ​ $ 482.5 ​ $ (24.5) ​ $ — ​ $ (24.5) ​ $ 458.0 Europe ​ 241.4 ​ — ​ 10.7 ​ 252.1 ​ (129.7) ​ — ​ (129.7) ​ 122.4 APMEA ​ 30.0 ​ 3.9 ​ 1.0 ​ 34.9 ​ (12.9) ​ — ​ (12.9) ​ 22.0 Total ​ $ 748.2 ​ $ 9.4 ​ $ 11.9 ​ $ 769.5 ​ $ (167.1) ​ $ — ​ $ (167.1) ​ $ 602.4 ​ 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 which occurred in the fourth quarter of 2020, the Company performed qualitative fair value assessments, including an evaluation of certain key assumptions for all seven of its reporting units. The Company concluded that the fair value of all seven reporting units exceed its carrying value at that time. ​ Intangible assets include the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 28, 2021 ​ December 31, 2020 ​ ​ Gross ​ ​ ​ ​ Net ​ Gross ​ ​ ​ ​ Net ​ ​ Carrying ​ Accumulated ​ Carrying ​ Carrying ​ Accumulated ​ Carrying ​ Amount Amortization Amount Amount Amortization Amount ​ ​ (in millions) Patents ​ $ 16.1 ​ $ (16.0) ​ $ 0.1 ​ $ 16.1 ​ $ (16.0) ​ $ 0.1 Customer relationships ​ 235.9 ​ (168.0) ​ 67.9 ​ 236.2 ​ (165.8) ​ 70.4 Technology ​ 58.0 ​ (37.5) ​ 20.5 ​ 58.0 ​ (36.4) ​ 21.6 Trade names ​ 26.9 ​ (15.6) ​ 11.3 ​ 27.0 ​ (15.1) ​ 11.9 Other ​ 4.3 ​ (3.7) ​ 0.6 ​ 4.3 ​ (3.7) ​ 0.6 Total amortizable intangibles ​ 341.2 ​ (240.8) ​ 100.4 ​ 341.6 ​ (237.0) ​ 104.6 Indefinite-lived intangible assets ​ 36.6 ​ — ​ 36.6 ​ 37.2 ​ — ​ 37.2 ​ ​ $ 377.8 ​ $ (240.8) ​ $ 137.0 ​ $ 378.8 ​ $ (237.0) ​ $ 141.8 ​ Aggregate amortization expense for amortized intangible assets for the first quarters ended March 28, 2021 and March 29, 2020 was $3.8 million.

Financial Instruments and Deriv

Financial Instruments and Derivative Instruments3 Months Ended
Mar. 28, 2021
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 borrowings under the Amended and Restated Credit Agreement entered into on April 24, 2020 (the “Amended Credit Agreement”) approximate their carrying value. ​ 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, contingent consideration, and derivatives. The fair values of these financial assets and liabilities were determined using the following inputs at March 28, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at March 28, 2021 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 ​ $ — ​ $ — Total assets ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan liability for deferred compensation(2) ​ $ 2.5 ​ $ 2.5 ​ $ ​ ​ $ — Designated foreign currency hedges (3) ​ $ 0.3 ​ $ — ​ $ 0.3 ​ $ — Contingent consideration(4) ​ $ 3.1 ​ $ — ​ $ — ​ $ 3.1 Total liabilities ​ $ 5.9 ​ $ 2.5 ​ $ 0.3 ​ $ 3.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 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) ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Total assets ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps(3) ​ $ 0.6 ​ ​ — ​ ​ 0.6 ​ ​ — Plan liability for deferred compensation(2) ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Designated foreign currency hedge(3) ​ $ 0.1 ​ $ — ​ $ 0.1 ​ $ — Contingent consideration(4) ​ $ 3.2 ​ $ — ​ $ — ​ $ 3.2 Total liabilities ​ $ 6.4 ​ $ 2.5 ​ $ 0.7 ​ $ 3.2 (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) ​ The table below provides a summary of the changes in fair value of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period December 31, 2020 to March 28, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total realized and unrealized ​ ​ ​ ​ ​ Balance ​ ​ ​ ​ ​ ​ (gains) losses included in: ​ Balance ​ ​ December 31, ​ ​ ​ ​ ​ ​ Net earnings ​ Comprehensive ​ March 28, ​ 2020 Settlements Purchases adjustments income 2021 ​ ​ (in millions) Contingent consideration ​ $ 3.2 ​ ​ — ​ $ — ​ ​ — ​ $ (0.1) ​ $ 3.1 ​ In connection with the immaterial acquisition of AVG completed during the third quarter of 2020, a contingent liability of $2.8 million was recognized as the estimate of the acquisition date fair value of the contingent consideration. This liability was classified as Level 3 under the fair value hierarchy as it was based on the probability of achievement of future performance metrics as of the date of the acquisition, which was not observable in the market. Failure to meet the performance metrics would reduce this liability to zero, while complete achievement would increase the liability to a maximum contingent consideration of $4.4 million. The liability as of the first quarter ended March 28, 2021 was $3.1 million. ​ 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 “Prior Credit Agreement”) pursuant to which it received a funding commitment under a Term Loan of $300 million, and a Revolving Commitment (“Revolver”) of $500 million. For each facility, the Company could choose either an Adjusted LIBOR or Alternative Base Rate (“ABR”). Accordingly, the Company’s earnings and cash flows were 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 received the three-month USD-LIBOR subject to a 0% floor, and paid a fixed rate of 1.31375% on a notional amount of $225.0 million. The swaps were expected to mature on the same date as the Prior Credit Agreement on February 12, 2021, and were designated as cash flow hedges. On April 24, 2020, the Company entered into an Amended and Restated Credit Agreement (the “Amended Credit Agreement”). The Amended Credit Agreement amended and restated 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 additional year to February 2022. As part of the Amended Credit Agreement, the LIBOR rate was subject to a 1% floor as opposed to a 0% floor in the Prior Credit Agreement. The change in the LIBOR floor in the Amended Credit Agreement caused the interest rate swaps to no longer be considered highly effective in offsetting changes in the cash flow of the hedged item, as critical terms of the Amended Credit Agreement no longer matched the hedged item. As a result, the cash flow hedges no longer qualified for hedge accounting as of the date of execution of the Amended Credit Agreement. The Company subsequently began recognizing the mark-to-market fair value adjustments on a monthly basis in the consolidated statement of operations and continued to do so through the expiration date of the swaps, which occurred on February 12, 2021. For the first quarter ended March 28, 2021 an immaterial amount was recorded into interest expense related to the change in mark-to-market fair value adjustments. ​ On March 30, 2021, the Company entered into the Second Amended and Restated Credit Agreement (the “Second Amended Credit Agreement”). The Second Amended Credit Agreement amends the Amended Credit Agreement to extend the maturity date of the $800 million senior unsecured revolving credit facility from February 12, 2022 to March 30, 2026. The senior unsecured revolving credit facility under the Second Amended Credit Agreement (the "New Revolving Credit Facility") also includes sublimits of $100 million for letters of credit and $15 million for swing line loans. Borrowings outstanding under the New Revolving Credit Facility will bear interest at a fluctuating rate per annum as further detailed in Note 10. ​ 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 an interest rate swap on March 30, 2021. Under the interest rate swap agreement, the Company receives the one-month USD-LIBOR subject to a 0% floor, and pays a fixed rate of 1.02975% on a notional amount of $100.0 million. The swaps mature on March 30, 2026. 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 swap is 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. ​ 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 80% to 85% 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 28, 2021, 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 is 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 amounts outstanding as of March 28, 2021 for the Canadian dollar to U.S. dollar contracts and the U.S. dollar to the Chinese yuan contracts were $15.5 million and $1.8 million, respectively. The fair value of the Company’s designated foreign hedge contracts outstanding as of March 28, 2021 was a liability of $0.3 million. As of March 28, 2021, the amount expected to be reclassified into cost of goods sold from other comprehensive income in the next twelve months is a loss of $0.1 million.

Earnings per Share and Stock Re

Earnings per Share and Stock Repurchase Program3 Months Ended
Mar. 28, 2021
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 28, 2021 ​ For the First Quarter Ended March 29, 2020 ​ ​ 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 ​ $ 41.7 ​ 33.8 ​ $ 1.23 ​ $ 32.0 ​ 34.0 ​ $ 0.94 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock equivalents ​ ​ ​ ​ 0.1 ​ ​ — ​ ​ ​ 0.1 ​ ​ — ​ Diluted EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 41.7 ​ 33.9 ​ $ 1.23 ​ $ 32.0 34.1 ​ $ 0.94 ​ ​ There were no options to purchase Class A common stock outstanding during the first quarters ended March 28, 2021 or March 29, 2020 that would have been anti-dilutive. ​ On February 6, 2019, the Company’s Board of Directors authorized the repurchase 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 the stock repurchase program, the Company entered into Rule 10b5-1 plans, which permit 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 plans the Company entered into with respect to the repurchase program. As of March 28, 2021, there was ​ The following tables summarize the cost and the number of shares of Class A common stock repurchased under the repurchase program during the first quarters ended March 28, 2021 and March 29, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the First Quarter Ended ​ For the First Quarter Ended ​ ​ March 28, 2021 ​ March 29, 2020 ​ ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $150 million ​ 31,153 ​ $ 3.8 ​ 174,707 ​ $ 14.7 Total stock repurchased during the period: 31,153 ​ $ 3.8 174,707 ​ $ 14.7 ​

Stock-Based Compensation

Stock-Based Compensation3 Months Ended
Mar. 28, 2021
Stock-Based Compensation
Stock-Based Compensation7. Stock-Based Compensation ​ The Company issued 51,819 and 80,052 shares of restricted stock and deferred stock awards during the first quarters of 2021 and 2020, respectively. The Company grants shares of deferred stock awards to key employees and restricted 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 vest in their entirety 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 three years. Upon vesting, the number of shares of the Company’s Class A common stock awarded to each performance stock unit recipient will be determined based on the Company’s performance relative to certain performance goals set at the time the performance stock units were granted. The performance stock units are amortized to expense over the vesting period, and based on the Company’s performance relative to the performance goals, which may be adjusted with changes to the related expense recorded in the period of adjustment. If the performance goals are not met, no awards are earned and previously recognized compensation expense is reversed. The Company granted 46,774 and 73,106 performance stock units during the first quarters of 2021 and 2020, respectively. ​ Under the Management Stock Purchase Plan (“MSPP”), the Company granted 24,690 and 27,495 of restricted stock units (“RSUs”) during the first quarters of 2021 and 2020, 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: ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 Expected life (years) ​ 3.0 ​ 3.0 ​ Expected stock price volatility 32.7 % 24.6 % Expected dividend yield 0.75 % 1.1 % Risk-free interest rate 0.3 % 0.6 % ​ 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 2021 and 2020 of $37.12 and $22.36, 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, 2020.

Segment Information

Segment Information3 Months Ended
Mar. 28, 2021
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, 2020. ​ The following is a summary of the Company’s significant accounts and balances by segment, reconciled to its consolidated totals: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 28, ​ March 29, ​ 2021 2020 ​ ​ (in millions) Net sales ​ ​ ​ ​ Americas ​ $ 272.8 ​ $ 262.4 Europe ​ 122.9 ​ 110.2 APMEA ​ 17.6 ​ 10.0 Consolidated net sales ​ $ 413.3 ​ $ 382.6 Operating income (loss) ​ ​ ​ ​ ​ ​ Americas ​ $ 48.5 ​ $ 43.4 Europe ​ 19.5 ​ 13.7 APMEA ​ 2.3 ​ (0.1) Subtotal reportable segments ​ 70.3 ​ 57.0 Corporate(*) ​ (10.7) ​ (9.2) Consolidated operating income ​ 59.6 ​ 47.8 Interest income ​ — ​ (0.1) Interest expense ​ 2.0 ​ 3.0 Other expense (income), net ​ (0.3) ​ 0.3 Income before income taxes ​ $ 57.9 ​ $ 44.6 Capital expenditures ​ ​ ​ ​ ​ ​ Americas ​ $ 2.5 ​ $ 6.6 Europe ​ 2.4 ​ 2.2 APMEA ​ — ​ 0.1 Consolidated capital expenditures ​ $ 4.9 ​ $ 8.9 Depreciation and amortization ​ ​ ​ ​ ​ ​ Americas ​ $ 7.7 ​ $ 7.4 Europe ​ 3.3 ​ 3.4 APMEA ​ 0.8 ​ 0.6 Consolidated depreciation and amortization ​ $ 11.8 ​ $ 11.4 Identifiable assets (at end of period) ​ ​ ​ ​ ​ ​ Americas ​ $ 1,105.0 ​ $ 1,155.4 Europe ​ 549.4 ​ 519.6 APMEA ​ 130.0 ​ 92.4 Consolidated identifiable assets ​ $ 1,784.4 ​ $ 1,767.4 Property, plant and equipment, net (at end of period) ​ ​ ​ ​ ​ ​ Americas ​ $ 120.3 ​ $ 121.0 Europe ​ 80.4 ​ 75.4 APMEA ​ 5.1 ​ 5.4 Consolidated property, plant and equipment, net ​ $ 205.8 ​ $ 201.8 * 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, 2020 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 $116.2 million and $117.2 million at March 28, 2021 and March 29, 2020, respectively. ​ The following includes U.S. net sales of the Company’s Americas segment (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 28, ​ March 29, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ U.S. net sales ​ $ 254.4 ​ $ 246.7 ​ The following includes intersegment sales for Americas, Europe and APMEA (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 28, ​ March 29, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Intersegment Sales ​ ​ ​ ​ Americas ​ $ 2.5 ​ $ 2.4 Europe ​ 7.6 ​ 4.1 APMEA ​ 26.3 ​ 13.6 Intersegment sales ​ $ 36.4 ​ $ 20.1 ​

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss3 Months Ended
Mar. 28, 2021
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, 2020 ​ $ (99.9) ​ $ (0.1) ​ $ (100.0) Change in period ​ (14.1) ​ (0.1) ​ (14.2) Balance March 28, 2021 ​ $ (114.0) ​ $ (0.2) ​ $ (114.2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) (1) Cash flow hedges include interest rate swaps and designated foreign currency hedges. See Note 5 for further details.

Debt

Debt3 Months Ended
Mar. 28, 2021
Debt
Debt10. Debt ​ In February 2016, the Company entered into the Prior Credit Agreement. 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. The Prior Credit Agreement also provided for a $300 million, five-year, term loan facility (the “Term Loan Facility”) available to the Company in a single draw, of which the entire $300 million had been drawn in February 2016. On April 24, 2020, the Company entered into the Amended Credit Agreement. The Amended Credit Agreement amended and restated 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 such day plus 0.5% and (c) the adjusted LIBOR rate plus 1.0% for a one month interest period in dollars. The interest rate as of March 28, 2021 on the Revolving Credit Facility was 2.5%. As of March 28, 2021, the Company was in compliance with all covenants related to the Amended Credit Agreement. In addition to paying interest under the Amended 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. On March 30, 2021, at the beginning of the second quarter of 2021, the Company entered into the Second Amended Credit Agreement. The Second Amended Credit Agreement amends the Amended Credit Agreement to extend the maturity date of the $800 million senior unsecured revolving credit facility from February 12, 2022 to March 30, 2026. The Company’s Netherlands subsidiary, WWT International Holding B.V., has been added as a borrower under the Second Amended Credit Agreement in the place of Watts EMEA Holding B.V., which had been a borrower under the Amended Credit Agreement. Among other changes, the Second Amended Credit Agreement also increases the Company’s maximum consolidated leverage ratio (including both the base ratio and the ratio permitted during temporary step-ups following certain acquisitions), adjusts certain fees to reflect market conditions and reduces the 1.00% floor on the adjusted LIBOR rate to 0.00%. ​ The senior unsecured revolving credit facility under the Second Amended Credit Agreement (the “New Revolving Credit Facility”) also includes sublimits of $100 million for letters of credit and $15 million for swing line loans. Borrowings outstanding under the New Revolving Credit Facility will bear interest at a fluctuating rate per annum equal to an applicable percentage defined as (i) in the case of Eurocurrency rate loans, the adjusted British Bankers Association LIBOR rate plus an applicable percentage, ranging from 1.075% to 1.325%, determined by reference to the Company's consolidated leverage ratio, or (ii) in the case of alternate base rate loans and swing line loans, interest (which at all times will not be less than 1.00%) at the greatest of (a) the Prime Rate in effect on such day, (b) the FRBNY Rate in effect on such day plus 0.5% and (c) the adjusted LIBOR rate plus 1.0% for a one month interest period in dollars. The terms of the Prior Credit Agreement and the Amended Credit Agreement are 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, 2020. In addition to paying interest under the Second Amended Credit Agreement, the Company is also required to pay certain fees in connection with the New Revolving Credit Facility, including, but not limited to, an unused facility fee and letter of credit fees. The Second Amended Credit Agreement matures on March 30, 2026, subject to extension under certain circumstances and subject to the terms of the Second Amended Credit Agreement. The Company may repay loans outstanding under the Second Amended Credit Agreement from time to time without premium or penalty, other than customary breakage costs, if any, and subject to the terms of the Second Amended Credit Agreement. Both the Amended Credit Agreement and the Second Amended Credit Agreement impose 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. 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 $13.9 million as of March 28, 2021. 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. These instruments may exist or expire without being drawn down. Therefore, they do not necessarily represent future cash flow obligations. ​ ​ ​

Contingencies and Environmental

Contingencies and Environmental Remediation3 Months Ended
Mar. 28, 2021
Contingencies and Environmental Remediation
Contingencies and Environmental Remediation11. Contingencies and Environmental Remediation ​ In the ordinary course of business, the Company is involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened, including those involving product liability, environmental matters, and commercial disputes. ​ Other than the items described below, significant commitments and contingencies at March 28, 2021 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, 2020. ​ As of March 28, 2021, the Company estimates that the aggregate amount of reasonably possible loss in excess of the amount accrued for its contingencies is approximately $5.9 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”) for a portion of 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. The Remedial Investigation report has been completed, and the draft Feasibility Study report is due to be submitted to U.S. Environmental Protection Agency (USEPA) near the end of May, 2021. 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 for the first portion of the Site has not been completed, and the RI/FS process for the remainder of the Site has not yet been initiated, to determine what remediation plans will be implemented and the costs of such plans; (ii) the total amount of material sent to the Site, and the total number of potentially responsible parties who may or may not agree to fund or perform any remediation, have not 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. ​ Income Taxes In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. As of March 28, 2021, the Company had gross unrecognized tax benefits of approximately $12.0 million. As a result of recent challenges from a non-U.S. income tax authority, it is reasonably possible that the unrecognized tax benefits associated with this matter could increase by $4.6 million in the next twelve months. The Company also estimates that it is reasonably possible that other matters included in unrecognized tax benefits at March 28, 2021 may decrease by

Subsequent Events

Subsequent Events3 Months Ended
Mar. 28, 2021
Subsequent Events
Subsequent Events​ ​ ​ ​ 12. Subsequent Events ​ On May 3, 2021, the Company declared a quarterly dividend of twenty-six cents ($0.26) per share on each outstanding share of Class A common stock and Class B common stock payable on June 15, 2021 to stockholders of record on June 1, 2021. ​

Accounting Policies (Policies)

Accounting Policies (Policies)3 Months Ended
Mar. 28, 2021
Accounting Policies
Basis of PresentationThe 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 28, 2021, the Consolidated Statements of Operations for the first quarters ended March 28, 2021 and March 29, 2020, the Consolidated Statements of Comprehensive Income for the first quarters ended March 28, 2021 and March 29, 2020, the Consolidated Statements of Stockholders’ Equity for the first quarters ended March 28, 2021 and March 29, 2020, and the Consolidated Statements of Cash Flows for the first quarters ended March 28, 2021 and March 29, 2020. ​ The consolidated balance sheet at December 31, 2020 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, 2020. 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, 2020. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021, and may be further impacted by the effects of the global pandemic. ​ The Company operates on a 52 13
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. The COVID-19 pandemic has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 continues to impact the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. 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 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.
Recently Adopted Accounting StandardsRecently Adopted Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The effective date for adoption of this ASU is the calendar year beginning January 1, 2021 with early adoption permitted. The Company adopted this standard in the first quarter of 2021, 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 $15.4 million and $14.0 million for the first quarters of 2021 and 2020, respectively.
Research and DevelopmentResearch and Development ​ Research and development costs included in selling, general and administrative expenses amounted to $10.9 million and $11.5 million for the first quarters of 2021 and 2020, respectively.

Revenue Recognition (Tables)

Revenue Recognition (Tables)3 Months Ended
Mar. 28, 2021
Revenue Recognition
Schedule of disaggregation of revenue​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 28, 2021 ​ ​ ​ ​ (in millions) ​ ​ Distribution Channel ​ Americas ​ Europe ​ APMEA ​ Consolidated Wholesale ​ $ 157.4 ​ $ 80.9 ​ $ 16.6 ​ $ 254.9 OEM ​ ​ 20.4 ​ 41.1 ​ 1.0 ​ 62.5 Specialty ​ ​ 74.2 ​ — ​ — ​ 74.2 DIY ​ 20.8 ​ 0.9 ​ — ​ 21.7 Total ​ $ 272.8 ​ $ 122.9 ​ $ 17.6 ​ $ 413.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the first quarter ended March 28, 2021 ​ ​ ​ ​ (in millions) ​ ​ Principal Product Line ​ Americas ​ Europe ​ APMEA ​ Consolidated Residential & Commercial Flow Control ​ $ 162.3 ​ $ 47.2 ​ $ 14.7 ​ $ 224.2 HVAC and Gas Products ​ ​ 65.9 ​ 54.2 ​ 2.3 ​ 122.4 Drainage and Water Re-use Products ​ ​ 18.6 ​ 20.3 ​ 0.4 ​ 39.3 Water Quality Products ​ 26.0 ​ 1.2 ​ 0.2 ​ 27.4 Total ​ $ 272.8 ​ $ 122.9 ​ $ 17.6 ​ $ 413.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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
Schedule of contract assets and contract liabilities​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract ​ Contract ​ Contract ​ ​ Assets ​ Liabilities - Current ​ Liabilities - Noncurrent ​ ​ ​ ​ ​ (in millions) ​ ​ ​ Balance - January 1, 2021 ​ $ — ​ $ 13.5 ​ $ 2.5 Change in period ​ ​ — ​ ​ 1.0 ​ ​ (0.2) Balance - March 28, 2021 ​ $ — ​ $ 14.5 ​ $ 2.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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

Goodwill & Intangibles (Tables)

Goodwill & Intangibles (Tables)3 Months Ended
Mar. 28, 2021
Goodwill & Intangibles
Changes in the carrying amount of goodwill by geographic segment​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 28, 2021 ​ ​ Gross Balance ​ Accumulated Impairment Losses ​ Net Goodwill ​ ​ ​ ​ Acquired ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance ​ During ​ Currency ​ Balance ​ Balance ​ Impairment ​ Balance ​ ​ ​ ​ January 1, ​ the ​ Translation ​ March 28, ​ January 1, ​ Loss During ​ March 28, ​ March 28, ​ 2021 Period and Other 2021 2021 the Period 2021 2021 ​ ​ (in millions) Americas ​ $ 482.5 ​ ​ — ​ $ 0.1 ​ $ 482.6 ​ $ (24.5) ​ ​ — ​ $ (24.5) ​ $ 458.1 Europe ​ 252.1 ​ — ​ (4.6) ​ 247.5 ​ (129.7) ​ — ​ (129.7) ​ 117.8 APMEA ​ 34.9 ​ — ​ (0.6) ​ 34.3 ​ (12.9) ​ — ​ (12.9) ​ 21.4 Total ​ $ 769.5 ​ ​ — ​ $ (5.1) ​ $ 764.4 ​ $ (167.1) ​ ​ — ​ $ (167.1) ​ $ 597.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ 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, ​ 2020 Period and Other 2020 2020 the Period 2020 2020 ​ ​ (in millions) Americas ​ $ 476.8 ​ $ 5.5 ​ $ 0.2 ​ $ 482.5 ​ $ (24.5) ​ $ — ​ $ (24.5) ​ $ 458.0 Europe ​ 241.4 ​ — ​ 10.7 ​ 252.1 ​ (129.7) ​ — ​ (129.7) ​ 122.4 APMEA ​ 30.0 ​ 3.9 ​ 1.0 ​ 34.9 ​ (12.9) ​ — ​ (12.9) ​ 22.0 Total ​ $ 748.2 ​ $ 9.4 ​ $ 11.9 ​ $ 769.5 ​ $ (167.1) ​ $ — ​ $ (167.1) ​ $ 602.4
Schedule of Intangible assets​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 28, 2021 ​ December 31, 2020 ​ ​ Gross ​ ​ ​ ​ Net ​ Gross ​ ​ ​ ​ Net ​ ​ Carrying ​ Accumulated ​ Carrying ​ Carrying ​ Accumulated ​ Carrying ​ Amount Amortization Amount Amount Amortization Amount ​ ​ (in millions) Patents ​ $ 16.1 ​ $ (16.0) ​ $ 0.1 ​ $ 16.1 ​ $ (16.0) ​ $ 0.1 Customer relationships ​ 235.9 ​ (168.0) ​ 67.9 ​ 236.2 ​ (165.8) ​ 70.4 Technology ​ 58.0 ​ (37.5) ​ 20.5 ​ 58.0 ​ (36.4) ​ 21.6 Trade names ​ 26.9 ​ (15.6) ​ 11.3 ​ 27.0 ​ (15.1) ​ 11.9 Other ​ 4.3 ​ (3.7) ​ 0.6 ​ 4.3 ​ (3.7) ​ 0.6 Total amortizable intangibles ​ 341.2 ​ (240.8) ​ 100.4 ​ 341.6 ​ (237.0) ​ 104.6 Indefinite-lived intangible assets ​ 36.6 ​ — ​ 36.6 ​ 37.2 ​ — ​ 37.2 ​ ​ $ 377.8 ​ $ (240.8) ​ $ 137.0 ​ $ 378.8 ​ $ (237.0) ​ $ 141.8

Financial Instruments and Der_2

Financial Instruments and Derivative Instruments (Tables)3 Months Ended
Mar. 28, 2021
Schedule of fair value of financial assets and liabilities​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at March 28, 2021 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 ​ $ — ​ $ — Total assets ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan liability for deferred compensation(2) ​ $ 2.5 ​ $ 2.5 ​ $ ​ ​ $ — Designated foreign currency hedges (3) ​ $ 0.3 ​ $ — ​ $ 0.3 ​ $ — Contingent consideration(4) ​ $ 3.1 ​ $ — ​ $ — ​ $ 3.1 Total liabilities ​ $ 5.9 ​ $ 2.5 ​ $ 0.3 ​ $ 3.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 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) ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Total assets ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps(3) ​ $ 0.6 ​ ​ — ​ ​ 0.6 ​ ​ — Plan liability for deferred compensation(2) ​ $ 2.5 ​ $ 2.5 ​ $ — ​ $ — Designated foreign currency hedge(3) ​ $ 0.1 ​ $ — ​ $ 0.1 ​ $ — Contingent consideration(4) ​ $ 3.2 ​ $ — ​ $ — ​ $ 3.2 Total liabilities ​ $ 6.4 ​ $ 2.5 ​ $ 0.7 ​ $ 3.2 (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)
Significant Unobservable Inputs (Level 3)
Summary of the changes in fair value of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total realized and unrealized ​ ​ ​ ​ ​ Balance ​ ​ ​ ​ ​ ​ (gains) losses included in: ​ Balance ​ ​ December 31, ​ ​ ​ ​ ​ ​ Net earnings ​ Comprehensive ​ March 28, ​ 2020 Settlements Purchases adjustments income 2021 ​ ​ (in millions) Contingent consideration ​ $ 3.2 ​ ​ — ​ $ — ​ ​ — ​ $ (0.1) ​ $ 3.1

Earnings per Share and Stock _2

Earnings per Share and Stock Repurchase Program (Tables)3 Months Ended
Mar. 28, 2021
Earnings per Share and Stock Repurchase Program
Summary of reconciliation of the calculation of earnings per share​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the First Quarter Ended March 28, 2021 ​ For the First Quarter Ended March 29, 2020 ​ ​ 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 ​ $ 41.7 ​ 33.8 ​ $ 1.23 ​ $ 32.0 ​ 34.0 ​ $ 0.94 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock equivalents ​ ​ ​ ​ 0.1 ​ ​ — ​ ​ ​ 0.1 ​ ​ — ​ Diluted EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 41.7 ​ 33.9 ​ $ 1.23 ​ $ 32.0 34.1 ​ $ 0.94 ​ ​
Summary of the cost and number of Class A common stock repurchased​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the First Quarter Ended ​ For the First Quarter Ended ​ ​ March 28, 2021 ​ March 29, 2020 ​ ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $150 million ​ 31,153 ​ $ 3.8 ​ 174,707 ​ $ 14.7 Total stock repurchased during the period: 31,153 ​ $ 3.8 174,707 ​ $ 14.7

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)3 Months Ended
Mar. 28, 2021
Stock-Based Compensation
Schedule of stock-based compensation fair value assumptions​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 Expected life (years) ​ 3.0 ​ 3.0 ​ Expected stock price volatility 32.7 % 24.6 % Expected dividend yield 0.75 % 1.1 % Risk-free interest rate 0.3 % 0.6 %

Segment Information (Tables)

Segment Information (Tables)3 Months Ended
Mar. 28, 2021
Segment Information
Summary of the Company's significant accounts and balances by segment, reconciled to the consolidated totals​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 28, ​ March 29, ​ 2021 2020 ​ ​ (in millions) Net sales ​ ​ ​ ​ Americas ​ $ 272.8 ​ $ 262.4 Europe ​ 122.9 ​ 110.2 APMEA ​ 17.6 ​ 10.0 Consolidated net sales ​ $ 413.3 ​ $ 382.6 Operating income (loss) ​ ​ ​ ​ ​ ​ Americas ​ $ 48.5 ​ $ 43.4 Europe ​ 19.5 ​ 13.7 APMEA ​ 2.3 ​ (0.1) Subtotal reportable segments ​ 70.3 ​ 57.0 Corporate(*) ​ (10.7) ​ (9.2) Consolidated operating income ​ 59.6 ​ 47.8 Interest income ​ — ​ (0.1) Interest expense ​ 2.0 ​ 3.0 Other expense (income), net ​ (0.3) ​ 0.3 Income before income taxes ​ $ 57.9 ​ $ 44.6 Capital expenditures ​ ​ ​ ​ ​ ​ Americas ​ $ 2.5 ​ $ 6.6 Europe ​ 2.4 ​ 2.2 APMEA ​ — ​ 0.1 Consolidated capital expenditures ​ $ 4.9 ​ $ 8.9 Depreciation and amortization ​ ​ ​ ​ ​ ​ Americas ​ $ 7.7 ​ $ 7.4 Europe ​ 3.3 ​ 3.4 APMEA ​ 0.8 ​ 0.6 Consolidated depreciation and amortization ​ $ 11.8 ​ $ 11.4 Identifiable assets (at end of period) ​ ​ ​ ​ ​ ​ Americas ​ $ 1,105.0 ​ $ 1,155.4 Europe ​ 549.4 ​ 519.6 APMEA ​ 130.0 ​ 92.4 Consolidated identifiable assets ​ $ 1,784.4 ​ $ 1,767.4 Property, plant and equipment, net (at end of period) ​ ​ ​ ​ ​ ​ Americas ​ $ 120.3 ​ $ 121.0 Europe ​ 80.4 ​ 75.4 APMEA ​ 5.1 ​ 5.4 Consolidated property, plant and equipment, net ​ $ 205.8 ​ $ 201.8 * 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 28, ​ March 29, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ U.S. net sales ​ $ 254.4 ​ $ 246.7
Schedule of intersegment sales for Americas, EMEA and Asia-Pacific​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 28, ​ March 29, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Intersegment Sales ​ ​ ​ ​ Americas ​ $ 2.5 ​ $ 2.4 Europe ​ 7.6 ​ 4.1 APMEA ​ 26.3 ​ 13.6 Intersegment sales ​ $ 36.4 ​ $ 20.1

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)3 Months Ended
Mar. 28, 2021
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, 2020 ​ $ (99.9) ​ $ (0.1) ​ $ (100.0) Change in period ​ (14.1) ​ (0.1) ​ (14.2) Balance March 28, 2021 ​ $ (114.0) ​ $ (0.2) ​ $ (114.2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) (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)3 Months Ended
Mar. 28, 2021
Basis of Presentation
Length of fiscal year365 days
Length of fiscal quarter91 days

Accounting Policies - Shipping

Accounting Policies - Shipping and Handling, and Other (Details) - USD ($) $ in Millions3 Months Ended
Mar. 28, 2021Mar. 29, 2020
Shipping and Handling
Shipping and handling $ 15.4 $ 14
Research and Development
Research and development costs included in selling, general, and administrative expense $ 10.9 $ 11.5

Revenue Recognition (Details)

Revenue Recognition (Details) $ in Millions3 Months Ended
Mar. 28, 2021Mar. 28, 2021USD ($)Mar. 28, 2021itemMar. 28, 2021segmentMar. 29, 2020USD ($)
Disaggregation of Revenue
Number of distribution channels | item4
Number of geographic segments3 3
Revenue $ 413.3 $ 382.6
Minimum
Disaggregation of Revenue
Period of Business Operations140 years
Wholesale
Disaggregation of Revenue
Revenue254.9 231.8
OEM
Disaggregation of Revenue
Revenue62.5 54.2
Specialty
Disaggregation of Revenue
Revenue74.2 78.9
DIY
Disaggregation of Revenue
Revenue21.7 17.7
Residential & Commercial Flow Control
Disaggregation of Revenue
Revenue224.2 197.7
HVAC & Gas Products
Disaggregation of Revenue
Revenue122.4 113.6
Drainage & Water Re-use Products
Disaggregation of Revenue
Revenue39.3 42.7
Water Quality Products
Disaggregation of Revenue
Revenue27.4 28.6
Americas
Disaggregation of Revenue
Revenue272.8 262.4
Americas | Wholesale
Disaggregation of Revenue
Revenue157.4 147.4
Americas | OEM
Disaggregation of Revenue
Revenue20.4 19.5
Americas | Specialty
Disaggregation of Revenue
Revenue74.2 78.4
Americas | DIY
Disaggregation of Revenue
Revenue20.8 17.1
Americas | Residential & Commercial Flow Control
Disaggregation of Revenue
Revenue162.3 148.7
Americas | HVAC & Gas Products
Disaggregation of Revenue
Revenue65.9 67.6
Americas | Drainage & Water Re-use Products
Disaggregation of Revenue
Revenue18.6 18.5
Americas | Water Quality Products
Disaggregation of Revenue
Revenue26 27.6
Europe
Disaggregation of Revenue
Revenue122.9 110.2
Europe | Wholesale
Disaggregation of Revenue
Revenue80.9 75.1
Europe | OEM
Disaggregation of Revenue
Revenue41.1 34.5
Europe | DIY
Disaggregation of Revenue
Revenue0.9 0.6
Europe | Residential & Commercial Flow Control
Disaggregation of Revenue
Revenue47.2 41
Europe | HVAC & Gas Products
Disaggregation of Revenue
Revenue54.2 44.4
Europe | Drainage & Water Re-use Products
Disaggregation of Revenue
Revenue20.3 23.9
Europe | Water Quality Products
Disaggregation of Revenue
Revenue1.2 0.9
APMEA
Disaggregation of Revenue
Revenue17.6 10
APMEA | Wholesale
Disaggregation of Revenue
Revenue16.6 9.3
APMEA | OEM
Disaggregation of Revenue
Revenue1 0.2
APMEA | Specialty
Disaggregation of Revenue
Revenue0.5
APMEA | Residential & Commercial Flow Control
Disaggregation of Revenue
Revenue14.7 8
APMEA | HVAC & Gas Products
Disaggregation of Revenue
Revenue2.3 1.6
APMEA | Drainage & Water Re-use Products
Disaggregation of Revenue
Revenue0.4 0.3
APMEA | Water Quality Products
Disaggregation of Revenue
Revenue $ 0.2 $ 0.1

Revenue Recognition - Performan

Revenue Recognition - Performance obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01Mar. 28, 2021
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. 28, 2021Mar. 29, 2020Dec. 31, 2020Dec. 31, 2019
Contract with Customer, Asset
Contract Assets $ 0.3 $ 0.4
Change in period(0.1)
Contract Liabilities
Contract Liabilities - Current $ 14.5 11.7 $ 13.5 11.5
Increase (decrease) - Current Liabilities1 0.2
Contract Liabilities - Noncurrent2.3 2.8 $ 2.5 $ 2.9
Increase (decrease) - Noncurrent Liabilities(0.2)(0.1)
Revenue recognized, contract liability3.7 2.3
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. 28, 2021USD ($)Dec. 31, 2020USD ($)Mar. 28, 2021USD ($)item
Gross Balance
Balance at the beginning of the period $ 769.5 $ 748.2 $ 748.2
Acquired During the Period9.4
Foreign Currency Translation and Other(5.1)11.9
Balance at the end of the period764.4 769.5 764.4
Accumulated Impairment Losses
Balance at the beginning of the period(167.1)(167.1)(167.1)
Balance at the end of the period(167.1)(167.1)(167.1)
Net Goodwill597.3 602.4 $ 597.3
Number of reporting units | item7
Americas
Gross Balance
Balance at the beginning of the period482.5 476.8 $ 476.8
Acquired During the Period5.5
Foreign Currency Translation and Other0.1 0.2
Balance at the end of the period482.6 482.5 482.6
Accumulated Impairment Losses
Balance at the beginning of the period(24.5)(24.5)(24.5)
Balance at the end of the period(24.5)(24.5)(24.5)
Net Goodwill458.1 458 458.1
Europe
Gross Balance
Balance at the beginning of the period252.1 241.4 241.4
Foreign Currency Translation and Other(4.6)10.7
Balance at the end of the period247.5 252.1 247.5
Accumulated Impairment Losses
Balance at the beginning of the period(129.7)(129.7)(129.7)
Balance at the end of the period(129.7)(129.7)(129.7)
Net Goodwill117.8 122.4 117.8
APMEA
Gross Balance
Balance at the beginning of the period34.9 30 30
Acquired During the Period3.9
Foreign Currency Translation and Other(0.6)1
Balance at the end of the period34.3 34.9 34.3
Accumulated Impairment Losses
Balance at the beginning of the period(12.9)(12.9)(12.9)
Balance at the end of the period(12.9)(12.9)(12.9)
Net Goodwill $ 21.4 $ 22 $ 21.4

Goodwill and Intangibles - Inta

Goodwill and Intangibles - Intangibles (Details) - USD ($) $ in Millions3 Months Ended
Mar. 28, 2021Mar. 29, 2020Dec. 31, 2020
Intangible assets subject to amortization
Gross Carrying Amount $ 341.2 $ 341.6
Accumulated Amortization(240.8)(237)
Net Carrying Amount100.4 104.6
Indefinite-lived intangible assets
Indefinite-lived intangible assets36.6 37.2
Intangible assets
Gross Carrying Amount377.8 378.8
Net Carrying Amount137 141.8
Aggregate amortization expense for amortized intangible assets3.8 $ 3.8
Patents
Intangible assets subject to amortization
Gross Carrying Amount16.1 16.1
Accumulated Amortization(16)(16)
Net Carrying Amount0.1 0.1
Customer relationships
Intangible assets subject to amortization
Gross Carrying Amount235.9 236.2
Accumulated Amortization(168)(165.8)
Net Carrying Amount67.9 70.4
Technology
Intangible assets subject to amortization
Gross Carrying Amount58 58
Accumulated Amortization(37.5)(36.4)
Net Carrying Amount20.5 21.6
Trade name
Intangible assets subject to amortization
Gross Carrying Amount26.9 27
Accumulated Amortization(15.6)(15.1)
Net Carrying Amount11.3 11.9
Other
Intangible assets subject to amortization
Gross Carrying Amount4.3 4.3
Accumulated Amortization(3.7)(3.7)
Net Carrying Amount $ 0.6 $ 0.6

Financial Instruments and Der_3

Financial Instruments and Derivative Instruments - Fair Value on a Recurring Basis (Details) - Fair value measured on a recurring basis - USD ($) $ in MillionsMar. 28, 2021Dec. 31, 2020
Assets
Plan assets for deferred compensation $ 2.5 $ 2.5
Total assets2.5 2.5
Liabilities
Plan liabilities for deferred compensation2.5 2.5
Contingent Consideration3.1 3.2
Total liabilities5.9 6.4
Interest Rate Swaps
Liabilities
Derivative liabilities0.6
Forward exchange contracts
Liabilities
Derivative liabilities0.3 0.1
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Plan assets for deferred compensation2.5 2.5
Total assets2.5 2.5
Liabilities
Plan liabilities for deferred compensation2.5 2.5
Total liabilities2.5 2.5
Significant Other Observable Inputs (Level 2)
Liabilities
Total liabilities0.3 0.7
Significant Other Observable Inputs (Level 2) | Interest Rate Swaps
Liabilities
Derivative liabilities0.6
Significant Other Observable Inputs (Level 2) | Forward exchange contracts
Liabilities
Derivative liabilities0.3 0.1
Significant Unobservable Inputs (Level 3)
Liabilities
Contingent Consideration3.1 3.2
Total liabilities $ 3.1 $ 3.2

Financial Instruments and Der_4

Financial Instruments and Derivative Instruments - Fair Value Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Millions3 Months Ended
Mar. 28, 2021Dec. 31, 2020Mar. 29, 2020
Significant Unobservable Inputs (Level 3)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the ending of the period $ 3.1
Significant Unobservable Inputs (Level 3) | Minimum
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability recorded at acquisition date fair value0
Significant Unobservable Inputs (Level 3) | Maximum
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability recorded at acquisition date fair value4.4
Fair value measured on a recurring basis
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability recorded at acquisition date fair value3.1 $ 3.2
Fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of the period3.2
Comprehensive income(0.1)
Balance at the ending of the period3.1
Liability recorded at acquisition date fair value $ 3.1 $ 3.2
AVG | Significant Unobservable Inputs (Level 3)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Liability recorded at acquisition date fair value $ 2.8

Financial Instruments and Der_5

Financial Instruments and Derivative Instruments - Interest Rate Swaps and Non-Designated Cash Flow Hedge (Details) $ in MillionsFeb. 12, 2016USD ($)itemMar. 28, 2021USD ($)Dec. 31, 2020Mar. 30, 2021USD ($)Mar. 29, 2021Apr. 24, 2020USD ($)Apr. 23, 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 contracts80.00%
Maximum
Derivative instruments
Percentage of projected intercompany purchases hedged by forward exchange contracts85.00%
LIBOR
Interest Rate Swaps
Derivative, floor interest rate0.00%1.00%
Credit Agreement
Interest Rate Swaps
Borrowing capacity $ 100 $ 100
Term loan facility | Term Loan due February 2021
Interest Rate Swaps
Face amount $ 300
Revolving credit facility
Interest Rate Swaps
Borrowing capacity $ 500 800 $ 500
Swing Line Loans
Interest Rate Swaps
Borrowing capacity $ 15 $ 15
Forward exchange contracts | Cash Flow Hedging
Derivative instruments
Designated foreign currency hedges $ (0.3)
Forward exchange contracts | Designated
Amount of Gain or (Loss) Recognized in Income on Derivatives
Period of time for expected reclassification12 months
Amount expected to be reclassified $ (0.1)
Canadian Dollar to US Dollar Contracts
Interest Rate Swaps
Derivative notional amount15.5
US Dollar to Chinese Yuan Contracts
Interest Rate Swaps
Derivative notional amount $ 1.8
Interest Rate Swaps | Non designated | Cash Flow Hedging | LIBOR
Interest Rate Swaps
Derivative, floor interest rate1.00%
Interest Rate Swaps | Designated | Cash Flow Hedging
Interest Rate Swaps
Number of derivative contracts entered | item2
Derivative fixed interest rate1.31375%1.02975%
Derivative notional amount $ 225 $ 100
Interest Rate Swaps | Designated | Cash Flow Hedging | LIBOR
Interest Rate Swaps
Derivative, floor interest rate0.00%0.00%0.00%

Earnings per Share and Stock _3

Earnings per Share and Stock Repurchase Program (Details) $ / shares in Units, $ in Millions3 Months Ended
Mar. 28, 2021USD ($)$ / sharessharesMar. 29, 2020USD ($)$ / sharessharesDec. 31, 2020Feb. 06, 2019USD ($)Jul. 31, 2015USD ($)
Net (loss) income
Net income | $ $ 41.7 $ 32
Shares
Shares (in shares) | shares33,800,000 34,000,000
Per Share Amount
Net income (in dollars per share) | $ / shares $ 1.23 $ 0.94
Dilutive securities, principally common stock options
Common stock equivalents (in shares) | shares100,000 100,000
Net (loss) income
Net income | $ $ 41.7 $ 32
Weighted average number of shares:
Shares (in shares) | shares33,900,000 34,100,000
Securities not included in the computation of diluted EPS
Net income (in dollars per share) | $ / shares $ 1.23 $ 0.94
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 | shares31,153 174,707
Cost of shares repurchased | $ $ 3.8 $ 14.7
Class A
Common Stock
Common Stock, votes per share (Number of votes)1 1
Class B
Common Stock
Common Stock, votes per share (Number of votes)10 10
February 6, 2019
Shares repurchased
Number of shares repurchased | shares31,153 174,707
Cost of shares repurchased | $ $ 3.8 $ 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 $ 150
Remaining authorized repurchase amount | $ $ 109.6

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - $ / shares3 Months Ended12 Months Ended
Mar. 28, 2021Mar. 29, 2020Dec. 31, 2020
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)51,819 80,052
Second Amended and Restated 2004 Stock Incentive Plan | Performance stock units
Stock-based compensation
Vesting period3 years
Granted (in shares)46,774 73,106
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)24,690 27,495
Fair value assumptions
Expected life (years)3 years3 years
Expected stock price volatility (as a percent)32.70%24.60%
Expected dividend yield (as a percent)0.75%1.10%
Risk-free interest rate (as a percent)0.30%0.60%
Weighted average grant-date fair value (in dollars per share) $ 37.12 $ 22.36

Segment Information (Details)

Segment Information (Details) $ in Millions3 Months Ended
Mar. 28, 2021USD ($)Mar. 28, 2021USD ($)segmentMar. 28, 2021USD ($)itemMar. 29, 2020USD ($)Dec. 31, 2020USD ($)
Segment information
Number of geographic segments3 3
Net sales $ 413.3 $ 382.6
Operating income59.6 47.8
Interest income(0.1)
Interest expense2 3
Other expense (income), net(0.3)0.3
INCOME BEFORE INCOME TAXES57.9 44.6
Capital expenditures4.9 8.9
Depreciation and amortization11.8 11.4
Identifiable assets (at end of period)1,784.4 $ 1,784.4 $ 1,784.4 1,767.4 $ 1,738.2
Property, plant and equipment, net (at end of period)205.8 205.8 205.8 201.8 $ 212.3
Residential & Commercial Flow Control
Segment information
Net sales224.2 197.7
HVAC & Gas Products
Segment information
Net sales122.4 113.6
Drainage & Water Re-use Products
Segment information
Net sales39.3 42.7
Water Quality Products
Segment information
Net sales27.4 28.6
U.S.
Segment information
Net sales254.4 246.7
Reportable segments
Segment information
Operating income70.3 57
Corporate
Segment information
Operating income(10.7)(9.2)
Intersegment sales
Segment information
Net sales36.4 20.1
Americas
Segment information
Net sales272.8 262.4
Capital expenditures2.5 6.6
Depreciation and amortization7.7 7.4
Identifiable assets (at end of period)1,105 1,105 1,105 1,155.4
Property, plant and equipment, net (at end of period)120.3 120.3 120.3 121
Americas | Residential & Commercial Flow Control
Segment information
Net sales162.3 148.7
Americas | HVAC & Gas Products
Segment information
Net sales65.9 67.6
Americas | Drainage & Water Re-use Products
Segment information
Net sales18.6 18.5
Americas | Water Quality Products
Segment information
Net sales26 27.6
Americas | U.S.
Segment information
Property, plant and equipment, net (at end of period)116.2 116.2 116.2 117.2
Americas | Reportable segments
Segment information
Operating income48.5 43.4
Americas | Intersegment sales
Segment information
Net sales2.5 2.4
Europe
Segment information
Net sales122.9 110.2
Capital expenditures2.4 2.2
Depreciation and amortization3.3 3.4
Identifiable assets (at end of period)549.4 549.4 549.4 519.6
Property, plant and equipment, net (at end of period)80.4 80.4 80.4 75.4
Europe | Residential & Commercial Flow Control
Segment information
Net sales47.2 41
Europe | HVAC & Gas Products
Segment information
Net sales54.2 44.4
Europe | Drainage & Water Re-use Products
Segment information
Net sales20.3 23.9
Europe | Water Quality Products
Segment information
Net sales1.2 0.9
Europe | Reportable segments
Segment information
Operating income19.5 13.7
Europe | Intersegment sales
Segment information
Net sales7.6 4.1
APMEA
Segment information
Net sales17.6 10
Capital expenditures0.1
Depreciation and amortization0.8 0.6
Identifiable assets (at end of period)130 130 130 92.4
Property, plant and equipment, net (at end of period)5.1 $ 5.1 $ 5.1 5.4
APMEA | Residential & Commercial Flow Control
Segment information
Net sales14.7 8
APMEA | HVAC & Gas Products
Segment information
Net sales2.3 1.6
APMEA | Drainage & Water Re-use Products
Segment information
Net sales0.4 0.3
APMEA | Water Quality Products
Segment information
Net sales0.2 0.1
APMEA | Reportable segments
Segment information
Operating income2.3 (0.1)
APMEA | Intersegment sales
Segment information
Net sales $ 26.3 $ 13.6

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions3 Months Ended
Mar. 28, 2021Mar. 29, 2020
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period $ (100)
Balance at the end of the period(114.2)
Foreign Currency Translation
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period(99.9) $ (131.3)
Change in period(14.1)(16.5)
Balance at the end of the period(114)(147.8)
Cash Flow Hedge
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period(0.1)0.5
Change in period(0.1)(0.9)
Balance at the end of the period(0.2)(0.4)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period(100)(130.8)
Change in period(14.2)(17.4)
Balance at the end of the period $ (114.2) $ (148.2)

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) - USD ($)Mar. 30, 2021Apr. 24, 2020Feb. 12, 2016Mar. 28, 2021Mar. 29, 2021Apr. 23, 2020
Revolving credit facility
Credit Agreement
Unused and available credit under the credit agreement $ 586,100,000
Stand-by letters of credit outstanding $ 13,900,000
Letters of credit
Credit Agreement
Term of debt1 year
Stand-by letters of credit outstanding $ 13,900,000
LIBOR
Credit Agreement
Floor interest rate0.00%1.00%
Credit Agreement
Credit Agreement
Borrowing capacity $ 100,000,000 $ 100,000,000
Term of debt5 years
Sublimit on letters of credit $ 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)1.075%1.50%
Eurocurrency rate loans | LIBOR | Maximum
Credit Agreement
Interest rate added to base rate (as a percent)1.325%2.10%
Base rate loans and swing line loans
Credit Agreement
Minimum base rate (as a percent) $ 1 $ 2
Base rate loans and swing line loans | LIBOR
Credit Agreement
Interest rate (as a percent)1.00%1.00%
Base rate loans and swing line loans | Prime Rate
Credit Agreement
Interest rate (as a percent)0.50%0.50%
Revolving credit facility
Credit Agreement
Borrowing capacity $ 800,000,000 $ 500,000,000 $ 500,000,000
Extension period1 year
Interest rate on revolving credit facility (as a percent)2.50%
Amount drawn $ 200,000,000
Term loan facility | Term Loan due February 2021
Credit Agreement
Term of debt5 years
Face amount $ 300,000,000
Amount drawn $ 300,000,000
Swing Line Loans
Credit Agreement
Borrowing capacity $ 15,000,000 $ 15,000,000

Contingencies and Environment_2

Contingencies and Environmental Remediation (Details) $ in MillionsMar. 28, 2021USD ($)
Litigation contingencies
Possible loss $ 5.9
Gross unrecognized tax benefits12
Increase in unrecognized tax benefits, that is reasonably possible4.6
Minimum
Litigation contingencies
Decrease in unrecognized tax benefits, that is reasonably possible3
Maximum
Litigation contingencies
Decrease in unrecognized tax benefits, that is reasonably possible $ 4

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent eventMay 03, 2021$ / shares
Class A
Subsequent events
Quarterly dividend payable (in dollars per share) $ 0.26
Class B
Subsequent events
Quarterly dividend payable (in dollars per share) $ 0.26