Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 27, 2017 | Jul. 02, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | REGAL BELOIT CORP | ||
Entity Central Index Key | 82,811 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2.5 | ||
Entity Common Stock, Shares Outstanding | 44,789,981 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Statement [Abstract] | |||
Net Sales | $ 3,224.5 | $ 3,509.7 | $ 3,257.1 |
Cost of Sales | 2,359.3 | 2,576.5 | 2,459.8 |
Gross Profit | 865.2 | 933.2 | 797.3 |
Operating Expenses | 544.6 | 600.5 | 516.3 |
Goodwill Impairment | 0 | 79.9 | 119.5 |
Asset Impairments | 0 | 0 | 40 |
Total Operating Expenses | 544.6 | 680.4 | 675.8 |
Income from Operations | 320.6 | 252.8 | 121.5 |
Interest Expense | 58.7 | 60.2 | 39.1 |
Interest Income | 4.5 | 4.3 | 7.9 |
Income before Taxes | 266.4 | 196.9 | 90.3 |
Provision for Income Taxes | 57.1 | 48.4 | 54.2 |
Net Income | 209.3 | 148.5 | 36.1 |
Less: Net Income Attributable to Noncontrolling Interests | 5.9 | 5.2 | 5.1 |
Net Income Attributable to Regal Beloit Corporation | $ 203.4 | $ 143.3 | $ 31 |
Earnings Per Share Attributable to Regal Beloit Corporation: | |||
Basic (in dollars per shares) | $ 4.55 | $ 3.21 | $ 0.69 |
Assuming Dilution (in dollars per share) | $ 4.52 | $ 3.18 | $ 0.69 |
Weighted Average Number of Shares Outstanding: | |||
Basic (in shares) | 44.7 | 44.7 | 45 |
Assuming Dilution (in shares) | 45 | 45.1 | 45.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 209.3 | $ 148.5 | $ 36.1 |
Translation: | |||
Foreign Currency Translation Adjustments | (68.2) | (94.5) | (55.5) |
Reclassification of Foreign Currency Translation Adjustments Included in Net Income, Net of Immaterial Tax Effects | 0 | 0 | (1) |
Hedging Activities: | |||
Decrease in Fair Value of Hedging Activities, Net of Tax Effects of $(15.2) Million in 2016, $(26.6) Million in 2015 and $(16.9) Million in 2014 | (24.8) | (43.3) | (27.6) |
Reclassification of Losses Included in Net Income, Net of Tax Effects of $19.1 Million in 2016, $16.5 Million in 2015, and $3.7 Million in 2014 | 31.2 | 26.8 | 6.1 |
Hedging Activities | 6.4 | (16.5) | (21.5) |
Pension and Post Retirement Plans: | |||
Decrease (Increase) in Prior Service Cost and Unrecognized Gain (Loss), Net of Tax Effects of $(1.5) Million in 2016, $1.8 Million in 2015 and $(10.2) Million in 2014 | (2.8) | 1.2 | (17.6) |
Amortization of Prior Service Cost and Unrecognized Loss Included in Net Periodic Pension Cost, Net of Tax Effects of $1.2 Million in 2016, $1.6 Million in 2015 and $1.1 Million in 2014 | 2.2 | 2.9 | 1.4 |
Amortization of Prior Service Cost and Unrecognized Loss Included in Net Periodic Pension Cost, Net of Tax Effects of $1.2 Million in 2016, $1.6 Million in 2015 and $1.1 Million in 2014 | (0.6) | 4.1 | (16.2) |
Other Comprehensive Income (Loss) | (62.4) | (106.9) | (94.2) |
Comprehensive Income (Loss) | 146.9 | 41.6 | (58.1) |
Less: Comprehensive Income Attributable to Noncontrolling Interest | 3.9 | 2.3 | 2.1 |
Comprehensive Income (Loss)Attributable to Regal Beloit Corporation | $ 143 | $ 39.3 | $ (60.2) |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Paranthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Tax effect of fair value hedging activities | $ (15.2) | $ (26.6) | $ (16.9) |
Tax effect of hedging activities reclassified into earnings | 19.1 | 16.5 | 3.7 |
Tax effect of pension benefits prior service cost arising during period | (1.5) | 1.8 | (10.2) |
Tax effect of pension benefits net gain (loss) arising during period less amortization of net prior service cost and unrecognized loss included in net periodic pension cost | $ 1.2 | $ 1.6 | $ 1.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Current Assets: | ||
Cash and Cash Equivalents | $ 284.5 | $ 252.9 |
Trade Receivables, Less Allowances of $11.5 Million in 2016 and $11.3 Million in 2015 | 462.2 | 462 |
Inventories | 660.8 | 775 |
Prepaid Expenses and Other Current Assets | 124.5 | 145.3 |
Total Current Assets | 1,532 | 1,635.2 |
Net Property, Plant and Equipment | 627.5 | 678.5 |
Goodwill | 1,453.2 | 1,465.6 |
Intangible Assets, Net of Amortization | 711.7 | 777.8 |
Deferred Income Tax Benefits | 22.4 | 18.6 |
Other Noncurrent Assets | 11.7 | 16 |
Total Assets | 4,358.5 | 4,591.7 |
Current Liabilities: | ||
Accounts Payable | 334.2 | 336.2 |
Dividends Payable | 10.7 | 10.3 |
Hedging Obligations | 49 | 44.7 |
Accrued Compensation and Employee Benefits | 70.1 | 80.6 |
Other Accrued Expenses | 137 | 134.7 |
Current Maturities of Long-Term Debt | 100.6 | 6.3 |
Total Current Liabilities | 701.6 | 612.8 |
Long-Term Debt | 1,310.9 | 1,715.6 |
Deferred Income Taxes | 97.7 | 100.9 |
Hedging Obligations | 17.6 | 27.6 |
Pension and Other Post Retirement Benefits | 106.5 | 105.9 |
Other Noncurrent Liabilities | 46 | 46.1 |
Contingencies and Commitments (see Note 11) | ||
Regal Beloit Corporation Shareholders' Equity: | ||
Common Stock, $.01 Par Value, 100.0 Million Shares Authorized, 44.8 Million and 44.7 Million Shares Issued and Outstanding at 2016 and 2015, Respectively | 0.4 | 0.4 |
Additional Paid-In Capital | 904.5 | 900.8 |
Retained Earnings | 1,452 | 1,291.1 |
Accumulated Other Comprehensive Loss | (318.1) | (255) |
Total Regal Beloit Corporation Shareholders' Equity | 2,038.8 | 1,937.3 |
Noncontrolling Interests | 39.4 | 45.5 |
Total Equity | 2,078.2 | 1,982.8 |
Total Liabilities and Equity | $ 4,358.5 | $ 4,591.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 11.5 | $ 11.3 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 44,800,000 | 44,700,000 |
Common stock, shares outstanding (in shares) | 44,800,000 | 44,700,000 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 28, 2013 | $ 2,102.4 | $ 0.5 | $ 916.1 | $ 1,199.4 | $ (59.8) | $ 46.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 36.1 | 31 | 5.1 | |||
Other Comprehensive Income (Loss) | (94.2) | (91.2) | (3) | |||
Dividends Declared | (38.6) | (38.6) | ||||
Stock Options Exercised, Including Income Tax Benefit and Share Cancellations | 0.1 | 0.1 | ||||
Share-Based Compensation | 11.9 | 11.9 | ||||
Stock Repurchase | (35) | (0.1) | (32) | (2.9) | ||
Sale of Joint Venture | (3.1) | (3.1) | ||||
Dividends Declared to Noncontrolling Interests | (0.3) | (0.3) | ||||
Ending Balance at Jan. 03, 2015 | 1,979.3 | 0.4 | 896.1 | 1,188.9 | (151) | 44.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 148.5 | 143.3 | 5.2 | |||
Other Comprehensive Income (Loss) | (106.9) | (104) | (2.9) | |||
Dividends Declared | (40.7) | (40.7) | ||||
Stock Options Exercised, Including Income Tax Benefit and Share Cancellations | 2.4 | 2.4 | ||||
Share-Based Compensation | 13.9 | 13.9 | ||||
Stock Repurchase | (12) | 0 | (11.6) | (0.4) | ||
Purchase of Subsidiary Shares from Noncontrolling Interest | (1.4) | (1.4) | ||||
Dividends Declared to Noncontrolling Interests | (0.3) | (0.3) | ||||
Ending Balance at Jan. 02, 2016 | 1,982.8 | 0.4 | 900.8 | 1,291.1 | (255) | 45.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 209.3 | 203.4 | 5.9 | |||
Other Comprehensive Income (Loss) | (62.4) | (60.4) | (2) | |||
Dividends Declared | (42.5) | (42.5) | ||||
Stock Options Exercised, Including Income Tax Benefit and Share Cancellations | (2.4) | (2.4) | ||||
Share-Based Compensation | 13.3 | 13.3 | ||||
Purchase of Subsidiary Shares from Noncontrolling Interest | (19.6) | (7.2) | (2.7) | (9.7) | ||
Dividends Declared to Noncontrolling Interests | (0.3) | (0.3) | ||||
Ending Balance at Dec. 31, 2016 | $ 2,078.2 | $ 0.4 | $ 904.5 | $ 1,452 | $ (318.1) | $ 39.4 |
Consolidated Statements of Equ8
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends Declared (in dollars per share) | $ 0.95 | $ 0.91 | $ 0.86 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income (Loss) | $ 209.3 | $ 148.5 | $ 36.1 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities (Net of Acquisitions and Divestitures): | |||
Depreciation | 93.4 | 95.5 | 92 |
Amortization | 62 | 63.9 | 46.7 |
Goodwill Impairment | 0 | 79.9 | 119.5 |
Asset Impairments | 0 | 0 | 40 |
Share-Based Compensation Expense | 13.3 | 13.9 | 11.9 |
Benefit from Deferred Income Taxes | (1.6) | (10.4) | (26.4) |
Excess Tax Benefits from Share-Based Compensation | 0 | (1.3) | (1.3) |
Loss on Venezuela Currency Devaluation | 0 | 1.5 | 10.4 |
Loss (Gain) on Disposition of Assets | 1.1 | 2.4 | (12.1) |
Loss on Sale of Consolidated Joint Venture | 0 | 0 | 1.9 |
Gain on Disposal of Real Estate | (11.6) | 0 | 0 |
Provision for Losses on Receivables | 1.6 | 12.2 | 19.5 |
Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures | |||
Receivables | (10.4) | 28.6 | (3.4) |
Inventories | 100.4 | 11.1 | (55.4) |
Accounts Payable | 7.6 | (22.3) | 6.9 |
Current Liabilities and Other | (25.5) | (42.4) | 11.9 |
Net Cash Provided by Operating Activities | 439.6 | 381.1 | 298.2 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Additions to Property, Plant and Equipment | (65.2) | (92.2) | (83.6) |
Purchases of Investment Securities | (53.7) | (55.4) | (46.7) |
Sales of Investment Securities | 72.6 | 45.6 | 44.8 |
Business Acquisitions, Net of Cash Acquired | 0 | (1,401.4) | (128.2) |
Additions of Equipment for Operating Leases | 0 | 0 | (4.6) |
Proceeds from Disposal of Business | 24.6 | 0 | 0 |
Proceeds from Sale of Consolidated Joint Venture | 0 | 0 | 0.9 |
Proceeds from Sale of Assets | 2.1 | 15.8 | 12.5 |
Net Cash Used in Investing Activities | (19.6) | (1,487.6) | (204.9) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings Under Revolving Credit Facility | 583.7 | 512 | 296.2 |
Repayments Under Revolving Credit Facility | (568.7) | (526) | (279.2) |
Proceeds from Short-Term Borrowings | 23.8 | 126.1 | 62.1 |
Repayments of Short-Term Borrowings | (30.5) | (126.7) | (61.9) |
Proceeds from Long-Term Debt | 0.2 | 1,250 | 0 |
Repayments of Long-Term Debt | (323.8) | (132.3) | (150.4) |
Dividends Paid to Shareholders | (42.1) | (40.2) | (37.8) |
Proceeds from the Exercise of Stock Options | 0.5 | 4.1 | 0.9 |
Excess Tax Benefits from Share-Based Compensation | 0 | 1.3 | 1.3 |
Payments of Deferred Purchase Price | 0 | 0 | (5.3) |
Purchase of Subsidiary Shares from Noncontrolling Interest | (19.6) | (1.4) | 0 |
Financing Fees Paid | 0 | (18) | 0 |
Repurchase of Common Stock | 0 | (12) | (35) |
Payments of Contingent Consideration | 0 | 0 | (8.6) |
Distribution to Noncontrolling Interests | (0.3) | (0.3) | (0.3) |
Net Cash Provided by (Used in) Financing Activities | (376.8) | 1,036.6 | (218) |
EFFECT OF EXCHANGE RATES ON CASH and CASH EQUIVALENTS | (11.6) | (11.3) | (7.2) |
Net (Decrease) Increase in Cash and Cash Equivalents | 31.6 | (81.2) | (131.9) |
Cash and Cash Equivalents at Beginning of Period | 252.9 | 334.1 | 466 |
Cash and Cash Equivalents at End of Period | 284.5 | 252.9 | 334.1 |
Cash Paid During the Year for: | |||
Interest | 53.7 | 54.6 | 39.9 |
Income Taxes | $ 66.9 | $ 70.1 | $ 58.2 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Nature of Operations [Abstract] | |
Nature of Operations | Nature of Operations Regal Beloit Corporation (the “Company”) is a United States based multi-national corporation. The Company reports in three operating segments, the Commercial and Industrial Systems segment, with its principal lines of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal lines of business in small motors, controls and air moving products; and the Power Transmission Solutions segment, with its principal lines of business in power transmission gearing, hydraulic pump drives, large open gearing and specialty mechanical products which control motion and torque. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company operates on a 52/53 week fiscal year ending on the Saturday closest to December 31 . The fiscal year ended December 31, 2016 was 52 weeks, the fiscal year ended January 2, 2016 was 52 weeks and the fiscal year ended January 3, 2015 was 53 weeks. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned subsidiaries. In addition, the Company has joint ventures that are consolidated in accordance with consolidation accounting guidance. All intercompany accounts and transactions are eliminated. Accounting for Highly Inflationary Economies The Company had a subsidiary in Venezuela using accounting for highly inflationary economies. Currency restrictions enacted by the Venezuelan government impacted the ability of the Company's subsidiary to obtain US dollars in exchange for Venezuelan bolivars fuertes ("Bolivars") at the official foreign exchange rate. In 2014, the Venezuelan government announced the expansion of its auction-based foreign exchange system (SICAD1). The Venezuelan government also introduced an additional auction-based foreign exchange system (SICAD2) which permitted all companies incorporated or domiciled in Venezuela to bid for US dollars. Effective January 3, 2015, the Company concluded that it was appropriate to apply the SICAD2 exchange rate of 51.0 Bolivars per US dollar as the Company believed that this rate best represented the economics of the business activity in Venezuela at that time. As a result, the Company recorded a $10.4 million pretax devaluation charge in the fourth quarter of 2014. During the first quarter of 2015, the Venezuelan government announced changes to its exchange rate system that included the launch of a new, market-based system known as the SIMADI. The Company adopted the SIMADI rate after its introduction. The SIMADI exchange rate was approximately 193 Venezuelan Bolivars to the US dollar as of April 4, 2015. The adoption of the SIMADI resulted in a $1.5 million pretax devaluation charge included in Operating Expenses during the first quarter 2015. In late 2015, the Company decided to cease doing business in Venezuela due to the inability of collecting payments on its receivables from certain customers in Venezuela, the difficulties in obtaining local currency and the increased economic uncertainty in that country. In the fourth quarter of fiscal 2015, in connection with the decision to cease doing business in Venezuela, the Company wrote off net assets of $12.8 million . Use of Estimates The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”), which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company uses estimates in accounting for, among other items, allowance for doubtful accounts; excess and obsolete inventory; share-based compensation; acquisitions; product warranty obligations; pension and post retirement assets and liabilities; derivative fair values; goodwill and other asset impairments; health care reserves; rebates and incentives; litigation claims and contingencies, including environmental matters; and income taxes. The Company accounts for changes to estimates and assumptions when warranted by factually based experience. Acquisitions The Company recognizes assets acquired, liabilities assumed, contractual contingencies and contingent consideration at their fair value on the acquisition date. The operating results of the acquired companies are included in the Company’s consolidated financial statements from the date of acquisition. Acquisition-related costs are expensed as incurred, restructuring costs are recognized as post-acquisition expense and changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period are recorded in Provision for Income Taxes. Revenue Recognition The Company generally recognizes revenue upon transfer of title, which generally occurs upon shipment of the product to the customer. The pricing of products sold is generally supported by customer purchase orders, and accounts receivable collection is reasonably assured at the time of shipment. Estimated discounts and rebates are recorded as a reduction of gross sales in the same period revenue is recognized. Product returns and credits are estimated and recorded at the time of shipment based upon historical experience. Shipping and handling costs are recorded as revenue when billed to the customers. The costs incurred from shipping are recorded in Cost of Sales and handling costs incurred in connection with selling and distribution activities are recorded in Operating Expenses. The Company has certain operating leases in the oil and gas industry where revenue is recognized over the term of the lease. The lease revenue is not material for all fiscal periods presented. The related net leased assets were not material at December 31, 2016 or January 2, 2016 and were included in Other Noncurrent Assets. The Company derives a significant portion of its revenues from several original equipment manufacturing customers. Despite this relative concentration, there were no customers that accounted for more than 10% of consolidated net sales in fiscal 2016 , fiscal 2015 or fiscal 2014 . Research and Development The Company performs research and development activities relating to new product development and the improvement of current products. The Company's research and development expenses consist primarily of costs for: (i) salaries and related personnel expenses; (ii) the design and development of new energy efficient products and enhancements; (iii) quality assurance and testing; and (iv) other related overhead. The Company's research and development efforts tend to be targeted toward developing new products that would allow it to gain additional market share, whether in new or existing segments. While these costs make up an insignificant portion of operating expenses in the Power Transmission Solutions segment, they are more substantial in the Climate Solutions and Commercial and Industrial Systems segments. In particular, a large driver of research and development efforts in the Climate Solutions and Commercial and Industrial Systems segments is energy efficiency. Research and development costs are expensed as incurred. For fiscal 2016, 2015 and 2014, research and development costs were $29.5 million , $30.1 million and $32.9 million , respectively. Research and development costs are recorded in Operating Expenses. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments which are readily convertible to cash, present insignificant risk of changes in value due to interest rate fluctuations and have original or purchased maturities of three months or less. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents. The Company has material deposits with global financial institutions. The Company performs periodic evaluations of the relative credit standing of its financial institutions and monitors the amount of exposure. Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers and their dispersion across many geographic areas. The Company monitors credit risk associated with its trade receivables. Investments Investments include term deposits which have original maturities of greater than three months and remaining maturities of less than one year. The fair value of term deposits approximates their carrying value. These investments are included in Prepaid Expenses and Other Current Assets on the Company's Consolidated Balance Sheets. Trade Receivables Trade receivables are stated at estimated net realizable value. Trade receivables are comprised of balances due from customers, net of estimated allowances. In estimating losses inherent in trade receivables the Company uses historical loss experiences and applies them to a related aging analysis. Determination of the proper level of allowances requires management to exercise significant judgment about the timing, frequency and severity of losses. The allowances for doubtful accounts take into consideration numerous quantitative and qualitative factors, including historical loss experience, collection experience, delinquency trends and economic conditions. In circumstances where the Company is aware of a specific customer's inability to meet its obligation, a specific reserve is recorded against amounts receivable to reduce the net recognized receivable to the amount reasonably expected to be collected. Additions to the allowances for doubtful accounts are maintained through adjustments to the provision for doubtful accounts, which are charged to Operating Expenses in the current period; amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously charged-off accounts benefit current period earnings. Inventories The major classes of inventory at year end are as follows: December 31, January 2, Raw Material and Work in Process 45 % 45 % Finished Goods and Purchased Parts 55 % 55 % Inventories are stated at cost, which is not in excess of market. Cost for approximately 55% of the Company's inventory at December 31, 2016 and 42% at January 2, 2016 was determined using the last-in, first-out ("LIFO") method. If all inventories were valued on the first-in, first-out ("FIFO") method, they would have increased by $43.7 million and $28.0 million as of December 31, 2016 and January 2, 2016 , respectively. Material, labor and factory overhead costs are included in the inventories. The Company reviews inventories for excess and obsolete products or components. Based on an analysis of historical usage and management's evaluation of estimated future demand, market conditions and alternative uses for possible excess or obsolete parts, the Company records an excess and obsolete reserve. As of the beginning of its fiscal year 2016, the Company changed its inventory valuation method for the US inventory of the recently acquired Power Transmission Solutions (“PTS”) business to the LIFO method from the FIFO method. This change affected approximately 9% of the Company’s inventory. The Company believed this change in accounting principle was preferable under the circumstances because LIFO would better match current costs with current revenues since the cost of raw materials has been volatile in recent years, resulting in greater consistency in inventory costing across the organization since LIFO is the method used for the majority of the Company's other US inventory, and better aligns with how management assesses the performance of the business. Because this change in accounting principle was immaterial in all annual or interim prior periods, it was not applied retrospectively. The change did not have a material impact on the consolidated financial statements for the year ended December 31, 2016. Also, as of the beginning of its fiscal year 2016, the Company changed its method of calculating LIFO inventories, which represented approximately 51% of the Company’s inventory. The Company reduced the number of LIFO inventory pools to three to align with the Company’s segments. Previously, the Company had 10 LIFO inventory pools, some of which crossed segments. The Company believed this change in accounting principle was preferable under the circumstances because fewer pools will simplify the LIFO calculations, combine inventory items with similarities within a segment, and better align with how management assesses the performance of the businesses. The Company determined that it had the data needed to apply this change in accounting principle prospectively as of the beginning of its fiscal year 2014, but that full retrospective application is impracticable because the data is not available to determine the cumulative effect of the change. Because the effect of applying the change prospectively as of the beginning of fiscal 2014 is immaterial in any annual or interim period in fiscal years 2014 or 2015, the Company applied this change in accounting principle prospectively from the first day of fiscal year 2016. The change did not have a material impact on the consolidated financial statements for the year ended December 31, 2016. Property, Plant and Equipment Property, Plant and Equipment are stated at cost. Depreciation of plant and equipment is provided principally on a straight-line basis over the estimated useful lives ( 3 to 50 years ) of the depreciable assets. Accelerated methods are used for income tax purposes. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures which extend the useful lives of existing equipment are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Property, plant and equipment by major classification was as follows (in millions): Useful Life (In Years) December 31, 2016 January 2, Land and Improvements $ 76.7 $ 80.7 Buildings and Improvements 3-50 280.4 276.9 Machinery and Equipment 3-15 929.9 926.7 Property, Plant and Equipment 1,287.0 1,284.3 Less: Accumulated Depreciation (659.5 ) (605.8 ) Net Property, Plant and Equipment $ 627.5 $ 678.5 Commitments for property, plant and equipment purchases were $6.6 million at December 31, 2016 . Goodwill The Company evaluates the carrying amount of goodwill annually or more frequently if events or circumstances indicate that the goodwill might be impaired. Factors that could trigger an impairment review include significant underperformance relative to historical or forecasted operating results, a significant decrease in the market value of an asset or significant negative industry or economic trends. For goodwill, the Company may perform a qualitative test to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. Based on prior goodwill impairment testing, the Company determined the performance of the quantitative impairment test was required for certain reporting units in 2016. The Company performs the required annual goodwill impairment test as of the end of the October fiscal month. The Company uses a weighting of the market approach and the income approach (discounted cash flow method) in testing goodwill for impairment. In the market approach, the Company applies performance multiples from comparable public companies, adjusted for relative risk, profitability, and growth considerations, to the reporting units to estimate fair value. The key assumptions used in the discounted cash flow method used to estimate fair value include discount rates, revenue and operating income projections and terminal value rates because such assumptions are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using market and industry data as well as Company-specific risk factors for each reporting unit. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant discount rate and long-term growth rates. The calculated fair values for the Company's 2016 impairment testing exceeded the carrying values of the reporting units for all of the Company's reporting units. The excess exceeded 10% of the carrying value for all reporting units except PTS. Throughout 2016, the Company's PTS reporting unit, which is a combination of the acquired PTS business from Emerson Electric and the Company's legacy PTS business, was impacted by declines in the oil and gas, distribution, and agricultural end-markets. The PTS reporting unit has goodwill of $570.8 million as of December 31, 2016. The Company's impairment test indicated the reporting unit’s implied fair value exceeded its book value by approximately 2% . Some of the key considerations used in the Company's impairment testing included (i) market pricing of guideline publicly traded companies (ii) cost of capital, including the risk-free interest rate, and (iii) recent historical and projected performance of the subject reporting unit. There is inherent uncertainty included in the assumptions used in goodwill impairment testing. A change to any of the assumptions could lead to a future impairment. The calculated fair values for the Company's reporting units exceeded the carrying values for a majority of the Company's reporting units in 2015. There were certain reporting units where the calculated fair values were less than the carrying values. The Commercial and Industrial Systems segment includes reporting units that have significant exposure to the volatility in the oil and gas industry. Crude oil prices remained depressed throughout 2015 with pronounced declines in the fourth quarter of 2015 and into 2016. Expected cash flows were also negatively impacted by lower gas and oil prices as lower prices decreased the capital spending of customers these reporting units serve. Weak economic conditions in China have contributed to the reduced expected cash flows for one of the reporting units in this region. An implied goodwill amount was calculated as a required second step in the testing, using the estimated fair value of all assets and liabilities of the reporting unit as if the unit had been acquired in a business combination. The resulting implied fair value of goodwill is a Level 3 asset measured at fair value on a non-recurring basis (see also Note 14 of the Notes to the Consolidated Financial Statements for fair value definitions). The total goodwill impairment charge related to these reporting units was $79.9 million and was recorded in Goodwill Impairment within the Consolidated Statements of Income. The calculated fair values for the Company's reporting units exceeded the carrying values for a majority of the Company's reporting units in 2014. There were certain reporting units where the calculated fair values were less than the carrying values. The Commercial and Industrial Systems segment and the Power Transmission Solutions segment include reporting units that have significant exposure to the volatility in the oil and gas industry. Crude oil prices saw a sharp decline in the latter part of 2014. Expected cash flows were also negatively impacted by lower gas and oil prices as lower prices decreased the capital spending of customers these reporting units serve. Weak economic conditions in regions such as Australia and New Zealand as well as currency devaluations in Venezuela have contributed to the reduced expected cash flows for our reporting units in these regions. In the Climate Solutions segment, unfavorable customer dynamics impacted one reporting unit's expected cash flows. An implied goodwill amount was then calculated as a required second step in the testing, using the estimated fair value of all assets and liabilities of the reporting unit as if the unit had been acquired in a business combination. The resulting implied fair value of goodwill is a Level 3 asset measured at fair value on a non-recurring basis (see also Note 14 of the Notes to the Consolidated Financial Statements for fair value definitions). Additionally, the Company’s reporting unit related to technology that had been deemed substantially impaired during the fourth quarter of 2013 was deemed fully impaired during 2014 as a result of the closing of the facility. This resulted in a $1.0 million impairment charge to goodwill. The total goodwill impairment charge related to these reporting units was $119.5 million and was recorded in Goodwill Impairment within the Consolidated Statements of Income. Intangible Assets I ntangible assets with finite lives are amortized over their estimated useful lives using the straight line method. The Company evaluates amortizing intangibles whenever events or circumstances have occurred that may indicate that carrying values may not be recoverable. If an indicator is present, the Company evaluates carrying values as compared to undiscounted estimated future cash flows. If such estimated future cash flows are less than carrying value, an impairment would be recognized. See also "Long-Lived Assets" in this footnote for the results and additional details of the impairment of certain long-lived assets and related charges in fiscal 2014. Indefinite-lived intangible assets are not amortized. The Company evaluates the carrying amount of indefinite-lived intangible assets annually or more frequently if events or circumstances indicate that the assets might be impaired. The Company performs the required annual impairment test as of the end of the October fiscal month. Indefinite-lived intangible assets consist of trade names associated with the acquired Power Transmission Solutions business. They were evaluated for impairment using a relief from royalty method to determine whether their fair values exceed their respective carrying amounts. The Company determined the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. For 2015 and 2016, the fair value of indefinite lived intangible assets exceeded their respective carrying value however in 2016, the fair value only exceeded the carrying value by approximately 2% . Some of the key considerations used in our impairment testing included (i) cost of capital, including the risk-free interest rate, (ii) royalty rate and (iii) recent historical and projected performance of the subject reporting unit. There is inherent uncertainty included in the assumptions used in indefinite-lived intangible asset testing. A change to any of the assumptions could lead to a future impairment. Long-Lived Assets The Company evaluates the recoverability of the carrying amount of property, plant and equipment and amortizing intangible assets (collectively, "long-lived assets") whenever events or changes in circumstance indicate that the carrying amount of an asset may not be fully recoverable through future cash flows. Factors that could trigger an impairment review include a significant decrease in the market value of an asset or significant negative or economic trends. For long-lived assets, the Company uses an estimate of the related undiscounted cash flows over the remaining life of the primary asset to estimate recoverability of the asset group. If the asset is not recoverable, the asset is written down to fair value. The Company concluded it did not have any impairments of long-lived assets in 2016. During 2015, due primarily to the continued decline in crude oil prices that was more pronounced in the fourth quarter of 2015 as well as weak economic conditions in China, an undiscounted cash flow test of long-lived assets for certain asset groups was performed. The undiscounted cash flows of each asset group tested exceeded its respective carrying value. As a result, no impairment was indicated. During 2014, due primarily to unfavorable customer dynamics and the effects of the sharp decline in the price of oil, the carrying amounts of intangible and other long-lived assets for two reporting units within the Climate Solutions and Power Transmission Solutions segments were deemed to be not fully recoverable. Fair value was determined using the discounted cash flows from the Company's internal cash flow projections and a discount rate indicative of the return an investor would expect to receive for investing in the asset which are Level 3 measurements. As a result, intangible and other long-lived asset impairments of $26.2 million were also recognized related to hydraulic fracturing equipment used in the oil and gas end markets. Technology and other long-lived asset impairments were recognized related to products used in hermetic climate applications of $13.8 million . Such impairments were recognized in Asset Impairments. The details were as follows (in millions): Commercial & Industrial Systems Climate Solutions Power Transmission Solutions Total Impairments during 2014: Impairment of Intangible Assets $ — $ 7.8 $ 11.1 $ 18.9 Impairment of Property, Plant and Equipment — 6.0 15.1 21.1 Asset Impairments $ — $ 13.8 $ 26.2 $ 40.0 Earnings Per Share Diluted earnings per share is computed based upon earnings applicable to common shares divided by the weighted-average number of common shares outstanding during the period adjusted for the effect of other dilutive securities. Options for common shares where the exercise price was above the market price have been excluded from the calculation of the effect of dilutive securities shown below; the amount of these shares were 1.3 million in 2016 , 0.7 million in 2015 and 0.3 million in 2014 . The following table reconciles the basic and diluted shares used in earnings per share calculations for the years ended (in millions): 2016 2015 2014 Denominator for Basic Earnings Per Share 44.7 44.7 45.0 Effect of Dilutive Securities 0.3 0.4 0.3 Denominator for Diluted Earnings Per Share 45.0 45.1 45.3 Retirement and Post Retirement Plans The Company's domestic employees are covered by defined contribution plans and approximately half of the Company's domestic employees are covered by defined benefit pension plans. The majority of the defined benefit pension plans covering the Company's domestic employees have been closed to new employees and frozen for existing employees. Certain employees are covered by a post retirement health care plan. Most of the Company's foreign employees are covered by government sponsored plans in the countries in which they are employed. The Company's obligations under its defined benefit pension and other post retirement plans are determined with the assistance of actuarial firms. The actuaries, under management's direction, make certain assumptions regarding such factors as withdrawal rates and mortality rates. The actuaries also provide information and recommendations from which management makes further assumptions on such factors as the long-term expected rate of return on plan assets, the discount rate on benefit obligations and where applicable, the rate of annual compensation increases and health care cost trend rates. Based upon the assumptions made, the investments made by the plans, overall conditions and movement in financial markets, life-spans of benefit recipients and other factors, annual expenses and recorded assets or liabilities of these defined benefit plans may change significantly from year to year. Beginning in 2016, the Company changed the method used to estimate the service and interest cost components of the net periodic pension and other post retirement benefit costs. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows. The change will not affect the measurement of the total benefit obligations as the change in service and interest costs is offset in the actuarial gains and losses recorded in other comprehensive income. The methodology of selecting a discount rate that matches each plan's cash flows to that of a theoretical bond portfolio yield curve will continue to be used to value the benefit obligation at the end of each year. The Company changed to the new method to provide a more precise measure of interest and service costs by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company has accounted for this change as a change in estimate prospectively and it resulted in a $2.9 million reduction in expense for fiscal 2016 as compared to the previous method. Derivative Financial Instruments Derivative instruments are recorded on the Consolidated Balance Sheets at fair value. Any fair value changes are recorded in Net Income or Accumulated Other Comprehensive Loss ("AOCI") as determined under accounting guidance that establishes criteria for designation and effectiveness of the hedging relationships. The Company uses derivative instruments to manage its exposure to fluctuations in certain raw material commodity pricing, fluctuations in the cost of forecasted foreign currency transactions, and variability in interest rate exposure on floating rate borrowings. The majority of derivative instruments have been designated as cash flow hedges (see also Note 13 of Notes to the Consolidated Financial Statements). Income Taxes The Company operates in numerous taxing jurisdictions and is subject to regular examinations by various US federal, state and foreign jurisdictions for various tax periods. The Company's income tax positions are based on research and interpretations of the income tax laws and rulings in each of the jurisdictions in which it does business. Due to the subjectivity of interpretations of laws and rulings in each jurisdiction, the differences and interplay in tax laws between those jurisdictions as well as the inherent uncertainty in estimating the final resolution of complex tax audit matters, estimates of income tax liabilities may differ from actual payments or assessments. Foreign Currency Translation For those operations using a functional currency other than the US dollar, assets and liabilities are translated into US dollars at year-end exchange rates, and revenues and expenses are translated at weighted-average exchange rates. The resulting translation adjustments are recorded as a separate component of Shareholders' Equity. Pursuant to accounting rules guiding highly inflationary currency, the Company did not translate its prior Venezuelan subsidiary's financial statements as its functional currency was the US dollar. Product Warranty Reserves The Company maintains reserves for product warranty to cover the stated warranty periods for its products. Such reserves are established based on an evaluation of historical warranty experience and specific significant warranty matters when they become known and can reasonably be estimated. Accumulated Other Comprehensive Loss Foreign currency translation adjustments, unrealized gains and losses on derivative instruments designated as hedges and pension and post retirement liability adjustments are included in Shareholders' Equity under AOCI. The components of the ending balances of AOCI are as follows (in millions): 2016 2015 Foreign Currency Translation Adjustments $ (241.0 ) $ (172.1 ) Hedging Activities, Net of Tax of $(25.2) in 2016 and $(29.1) in 2015 (41.1 ) (47.5 ) Pension and Post Retirement Benefits, Net of Tax of $(20.1) in 2016 and $(19.8) in 2015 (36.0 ) (35.4 ) Total $ (318.1 ) $ (255.0 ) Legal Claims and Contingent Liabilities The Company is subject to various legal proceedings, claims and regulatory matters, the outcomes of which are subject to significant uncertainty and will only be resolved when one or more future events occur or fail to occur. Management conducts regular reviews, including updates from legal counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Company records expenses and liabilities when the Company believes that an obligation of the Company or a subsidiary on a specific matter is probable and there is a basis to reasonably estimate the value of the obligation, and such assessment inherently involves an exercise in judgment. This methodology is used for legal claims that are filed against the Company or a subsidiary from time to time. The uncertainty that is associated with such matters frequently requires adjustments to the liabilities previously recorded. Fair Values of Financial Instruments The fair values of cash equivalents, term deposits, trade receivables and accounts payable approximate their carrying values due to the short period of time to maturity. The fair value of debt is estimated using discounted cash flows based on rates for instruments with comp |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures The results of operations for acquired businesses are included in the Consolidated Financial Statements from the dates of acquisition. Acquisition-related expenses were $9.1 million during 2015 and $5.8 million during 2014 . There were no acquisition-related expenses in 2016. 2016 Acquisitions Elco On January 18, 2016, the Company purchased the remaining shares owned by the joint venture partner in its Elco Group B.V. (“Elco”) joint venture, increasing the Company’s ownership from 55.0% to 100.0% , for a purchase price of $19.6 million . The purchase price of Elco is reflected as a component of equity. 2015 Acquisitions PTS On January 30, 2015, the Company acquired the Power Transmission Solutions business of Emerson Electric Co. ("PTS") for $1,408.9 million in cash through a combination of stock and asset purchases. PTS is a global leader in highly engineered power transmission products and solutions. The business manufactures, sells and services bearings, couplings, gearing, drive components and conveyor systems. PTS is included in the Power Transmission Solutions segment. The Company acquired PTS because management believes it diversifies the Company's end market exposure, provides complementary products, expands and balances the Company's product portfolio, and enhances its margin profile. On January 30, 2015, the Company entered into a Credit Agreement for a 5 -year unsecured term loan facility in the principal amount of $1.25 billion , which was drawn in full by the Company on January 30, 2015, in connection with the closing of the acquisition of PTS (see also Note 7 of Notes to the Consolidated Financial Statements). The acquisition of PTS was accounted for as a purchase in accordance with FASB ASC Topic 805, Business Combinations. Assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. The fair values of identifiable intangible assets, which were primarily customer relationships, trade names, and technology, were based on valuations using the income approach. The excess of the purchase price over the estimated fair values of tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The goodwill is attributable to expected synergies and expected growth opportunities. The Company estimates approximately 65% of goodwill will be deductible for United States income tax purposes. The purchase price allocation for PTS was as follows (in millions): As of January 30, 2015 Current Assets $ 22.5 Trade Receivables 67.2 Inventories 108.8 Property, Plant and Equipment 184.4 Intangible Assets 648.2 Goodwill 564.3 Total Assets Acquired 1,595.4 Accounts Payable 57.2 Current Liabilities Assumed 32.3 Long-Term Liabilities Assumed 97.0 Net Assets Acquired $ 1,408.9 The valuation of the net assets acquired of $1,408.9 million was classified as Level 3 in the valuation hierarchy (See Note 14 of the Notes to the Consolidated Financial Statements for the definition of Level 3 inputs). The Company valued property, plant and equipment using both a market approach and a cost approach depending on the asset. Intangible assets were valued using the present value of projected future cash flows and significant assumptions included royalty rates, discount rates, customer attrition and obsolescence factors. The components of Intangible Assets included as part of the PTS acquisition was as follows (in millions): Weighted Average Amortization Period (Years) Gross Value Amortizable Intangible Assets Customer Relationships 17.0 $ 462.8 Technology 14.5 63.5 Intangible Assets Subject to Amortization 16.7 526.3 Non-Amortizable Intangible Assets Trade Names - 121.9 Intangible Assets $ 648.2 Net sales from PTS were $512.9 million for the year ended January 2, 2016. Operating income from PTS was $14.5 million for the year ended January 2, 2016. Purchase accounting inventory adjustments and transaction costs of $29.8 million were included in the PTS operating income for the year ended January 2, 2016. 2014 Acquisitions Benshaw On June 30, 2014, the Company acquired all of the stock of Benshaw. Inc. ("Benshaw") for $51.0 million in cash. The Company financed the transaction with existing cash. Benshaw is a manufacturer of custom low and medium voltage variable frequency drives and soft starters. It is reported in the Commercial and Industrial Systems segment. The Company acquired Benshaw because management determined it was a strategic fit for the Commercial and Industrial Systems segment. The acquisition of Benshaw was accounted for as a purchase in accordance with FASB ASC Topic 805, Business Combinations. Assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. The fair values of identifiable intangible assets, which were primarily customer relationships and technology, were based on valuations using the income approach. The excess of the purchase price over the estimated fair values of tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The goodwill is attributable to expected synergies and expected growth opportunities. The Company expects goodwill will be deductible for US income tax purposes. The purchase price allocation for Benshaw was as follows (in millions): As of June 30, 2014 Current Assets $ 0.5 Trade Receivables 10.4 Inventories 22.4 Property, Plant and Equipment 4.5 Intangible Assets, Subject to Amortization 14.6 Goodwill 4.7 Total Assets Acquired 57.1 Accounts Payable 3.7 Current Liabilities Assumed 2.2 Long-Term Liabilities Assumed 0.2 Net Assets Acquired $ 51.0 Hy-Bon On February 7, 2014, the Company acquired the stock of Hy-Bon Engineering Company, Inc. ("Hy-Bon") for $78.0 million in cash. The Company financed the transaction with existing cash. Hy-Bon is a leader in vapor recovery solutions for oil and gas applications. It is reported in the Commercial and Industrial Systems segment. The Company acquired Hy-Bon because management determined it was a strategic fit for the Commercial and Industrial Systems segment. The acquisition of Hy-Bon was accounted for as a purchase in accordance with the FASB ASC Topic 805, Business Combinations. Assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. The fair values of identifiable intangible assets, which were primarily customer relationships, were based on valuations using the income approach. The excess of the purchase price over the estimated fair values of tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The goodwill is attributable to expected synergies and other growth opportunities. The Company does not expect goodwill will be deductible for US income tax purposes. The purchase price allocation for Hy-Bon was as follows (in millions): As of February 7, 2014 Current Assets $ 1.7 Trade Receivables 11.5 Inventories 14.3 Property, Plant and Equipment 8.1 Intangible Assets, Subject to Amortization 13.4 Goodwill 40.6 Other Assets 0.1 Total Assets Acquired 89.7 Accounts Payable 5.5 Current Liabilities Assumed 5.1 Long-Term Liabilities Assumed 1.1 Net Assets Acquired $ 78.0 Unaudited Pro Forma Consolidated Financial Information The following unaudited pro forma financial information presents the financial results for the fiscal years 2015 and 2014 as if the acquisition of PTS had occurred on December 29, 2013. As a practical expedient, the Company has used the audited stand-alone financial statements of PTS for the year ended September 30, 2014 to estimate pro-forma results for the year ended January 3, 2015. The pro forma financial information includes, where applicable, adjustments for: (i) the estimated amortization of acquired intangible assets, (ii) estimated additional interest expense on acquisition related borrowings, and (iii) the income tax effect on the pro forma adjustments using an estimated effective tax rate. The pro forma financial information excludes, where applicable, adjustments for: (i) the estimated impact of inventory purchase accounting adjustments and (ii) the estimated closing costs on the acquisition and (iii) any estimated cost synergies or other effects of the integration of the acquisition. The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the acquisition been completed as of the date indicated or the results that may be obtained in the future (in millions, except per share amounts): Fiscal 2015 Fiscal 2014 Pro Forma Net Sales $ 3,558.3 $ 3,864.4 Pro Forma Net Income Attributable to the Company 174.8 63.1 Basic Earnings Per Share as Reported $ 3.21 $ 0.69 Pro Forma Basic Earnings Per Share 3.91 1.40 Diluted Earnings Per Share as Reported $ 3.18 $ 0.69 Pro Forma Diluted Earnings Per Share 3.88 1.39 The following unaudited pro forma financial information presents the financial results for the fiscal year 2014 as if the acquisitions of Benshaw and Hy-Bon, had occurred on December 29, 2013. The pro forma financial information includes, where applicable, adjustments for: (i) the estimated amortization of acquired intangible assets, (ii) estimated additional interest expense on acquisition related borrowings, and (iii) the income tax effect on the pro forma adjustments using an estimated effective tax rate. The pro forma financial information excludes, where applicable, adjustments for: (i) the estimated impact of inventory purchase accounting adjustments, (ii) the estimated closing costs on the acquisition and (iii) any estimated cost synergies or other effects of the integration of the acquisition. The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the acquisitions been completed as of the date indicated or the results that may be obtained in the future (in millions, except per share amounts): Fiscal 2014 Pro Forma Net Sales $ 3,291.2 Pro Forma Net Income Attributable to the Company 28.8 Basic Earnings Per Share as Reported $ 0.69 Pro Forma Basic Earnings Per Share 0.64 Diluted Earnings Per Share as Reported $ 0.69 Pro Forma Diluted Earnings Per Share 0.64 2016 Divestitures Mastergear Worldwide On June 1, 2016, the Company sold its Mastergear Worldwide ("Mastergear") business to Rotork PLC for a purchase price of $24.6 million , subject to customary finalization. Mastergear was included in the Company's Power Transmission Solutions segment. A gain related to the sale of $11.6 million was recorded as a reduction to Operating Expenses in the Condensed Consolidated Statements of Income during fiscal 2016. Venezuelan Subsidiary On July 7, 2016, the Company sold the assets of its Venezuelan subsidiary, which had been included in the Company's Commercial and Industrial Systems segment, to a private company for $3.0 million . Of this amount, $1.0 million was received on the transaction closing date and $2.0 million is to be received in 24 monthly installments. The Company may receive additional amounts in the future related to certain accounts receivable of this business. The gains will be recognized as the cash is received. The Company wrote down its investment and ceased operations of this subsidiary in 2015. 2014 Divestitures Jinling The Company sold its shares of a joint venture located in Shanghai, China ("Jinling") on September 11, 2014 which was previously accounted for as a consolidated joint venture and was reported in the Commercial and Industrial Systems segment. A loss of approximately $1.9 million was recorded in Operating Expenses in the Consolidated Statements of Income in fiscal 2014. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets Goodwill The excess of purchase price over estimated fair value is assigned to goodwill. See Note 3 of Notes to the Consolidated Financial Statements, "Goodwill" and "Long-Lived Assets" for additional details. The following table presents changes to goodwill during the periods indicated (in millions): Total Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Balance as of January 3, 2015 $ 1,004.0 $ 645.4 $ 344.6 $ 14.0 Acquisitions and Valuation Adjustments 559.4 (5.2 ) — 564.6 Less: Impairment Charges 79.9 79.9 — — Translation Adjustments (17.9 ) (12.6 ) (1.8 ) (3.5 ) Balance as of January 2, 2016 $ 1,465.6 $ 547.7 $ 342.8 $ 575.1 Acquisitions and Valuation Adjustments (0.3 ) — — (0.3 ) Translation Adjustments (12.1 ) (7.1 ) (1.0 ) (4.0 ) Balance as of December 31, 2016 $ 1,453.2 $ 540.6 $ 341.8 $ 570.8 Cumulative Goodwill Impairment Charges $ 275.7 $ 244.8 $ 7.7 $ 23.2 Intangible Assets Gross intangible assets consist of the following (in millions): Weighted Average Amortization Period (Years) January 2, Acquisitions Translation Adjustments December 31, 2016 Customer Relationships 15 $ 709.0 $ — $ (5.4 ) $ 703.6 Technology 11 191.1 — (1.4 ) 189.7 Trademarks 12 32.1 — (0.3 ) 31.8 Patent and Engineering Drawings 5 16.6 — — 16.6 Non-compete Agreements 5 8.5 — (0.2 ) 8.3 957.3 — (7.3 ) 950.0 Non-amortizable Trade Names 121.3 — (0.5 ) 120.8 Total Gross Intangibles $ 1,078.6 $ — $ (7.8 ) $ 1,070.8 Accumulated amortization on intangible assets consists of the following: January 2, 2016 Amortization Translation Adjustments December 31, 2016 Customer Relationships $ 161.4 $ 42.6 $ (2.4 ) $ 201.6 Technology 92.9 17.4 (0.8 ) 109.5 Trademarks 21.8 1.9 (0.4 ) 23.3 Patent and Engineering Drawings 16.6 — — 16.6 Non-compete Agreements 8.1 0.1 (0.1 ) 8.1 Total Accumulated Amortization $ 300.8 $ 62.0 $ (3.7 ) $ 359.1 Intangible Assets, Net of Amortization $ 777.8 $ 711.7 While the Company believes its customer relationships are long-term in nature, the Company's contractual customer relationships are generally short-term. Useful lives are established at acquisition based on historical attrition rates. Amortization expense was $62.0 million in fiscal 2016 , $63.9 million in fiscal 2015 and $46.7 million in fiscal 2014 . The following table presents estimated future amortization expense (in millions): Estimated Amortization Year 2017 $ 55.0 2018 53.0 2019 52.6 2020 49.5 2021 41.9 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following sets forth certain financial information attributable to the Company's operating segments for fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively (in millions): Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Eliminations Total Fiscal 2016 External Sales $ 1,530.9 $ 960.0 $ 733.6 $ — $ 3,224.5 Intersegment Sales 49.2 24.1 4.3 (77.6 ) — Total Sales 1,580.1 984.1 737.9 (77.6 ) 3,224.5 Gross Profit 379.2 245.1 240.9 — 865.2 Operating Expenses 275.7 115.2 153.7 — 544.6 Income from Operations 103.5 129.9 87.2 — 320.6 Depreciation and Amortization 74.7 24.4 56.3 — 155.4 Capital Expenditures 36.6 15.0 13.6 — 65.2 Identifiable Assets 1,872.7 881.8 1,604.0 — 4,358.5 Fiscal 2015 External Sales $ 1,694.9 $ 1,041.2 $ 773.6 $ — $ 3,509.7 Intersegment Sales 71.2 24.1 4.0 (99.3 ) — Total Sales 1,766.1 1,065.3 777.6 (99.3 ) 3,509.7 Gross Profit 441.1 262.2 229.9 — 933.2 Operating Expenses 307.2 115.6 177.7 — 600.5 Goodwill impairment 79.9 — — — 79.9 Income from Operations 54.0 146.6 52.2 — 252.8 Depreciation and Amortization 77.5 28.6 53.3 — 159.4 Capital Expenditures 52.3 18.5 21.4 — 92.2 Identifiable Assets 1,959.5 937.2 1,695.0 — 4,591.7 Fiscal 2014 External Sales $ 1,856.1 $ 1,134.8 $ 266.2 $ — $ 3,257.1 Intersegment Sales 78.2 19.2 5.1 (102.5 ) — Total Sales 1,934.3 1,154.0 271.3 (102.5 ) 3,257.1 Gross Profit 468.2 258.8 70.3 — 797.3 Operating Expenses 333.9 137.7 44.7 — 516.3 Goodwill Impairment 100.7 7.7 11.1 — 119.5 Asset Impairments — 13.8 26.2 — 40.0 Income (Loss) from Operations 33.6 99.6 (11.7 ) — 121.5 Depreciation and Amortization 81.5 45.0 12.2 — 138.7 Capital Expenditures 59.6 16.8 7.2 — 83.6 Identifiable Assets 2,371.7 842.6 142.9 — 3,357.2 The Commercial and Industrial Systems segment produces medium and large electric motors, power generation products, high-performance drives and controls, and starters. Applications include general commercial and industrial equipment, commercial HVAC, power generation, and oil and gas. The Climate Solutions segment produces small motors, controls and air moving solutions. Applications include residential and light commercial HVAC, commercial refrigeration and water heaters. The Power Transmission Solutions segment produces power transmission gearing, hydraulic pump drives, large open gearing and specialty mechanical products. Applications include material handling, industrial equipment, energy and off-road equipment. The Company evaluates performance based on the segment's income from operations. Corporate costs have been allocated to each segment based on the net sales of each segment. The reported external net sales of each segment are from external customers. The following sets forth net sales by country in which the Company operates for fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively (in millions): Net Sales 2016 2015 2014 United States $ 2,212.6 $ 2,374.3 $ 2,359.3 Rest of the World 1,011.9 1,135.4 897.8 $ 3,224.5 $ 3,509.7 $ 3,257.1 US net sales for 2016 , 2015 and 2014 represented 68.6% , 67.6% and 72.4% of total net sales, respectively. No individual foreign country represented a material portion of total net sales for any of the years presented. The following sets forth long-lived assets (net property, plant and equipment) by country in which the Company operates for fiscal 2016 and fiscal 2015 , respectively (in millions): Long-lived Assets 2016 2015 United States $ 290.3 $ 339.8 Mexico 120.2 114.6 China 99.6 107.9 Rest of the World 117.4 116.2 $ 627.5 $ 678.5 No other individual foreign country represented a material portion of long-lived assets for any of the years presented. |
Debt And Bank Credit Facilities
Debt And Bank Credit Facilities | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Debt And Bank Credit Facilities | Debt and Bank Credit Facilities The Company's indebtedness as of December 31, 2016 and January 2, 2016 was as follows (in millions): December 31, January 2, Term Facility $ 798.1 $ 1,118.1 Senior Notes 600.0 600.0 Multicurrency Revolving Facility 18.0 3.0 Other 5.1 15.5 Less: Debt Issuance Costs (9.7 ) (14.7 ) 1,411.5 1,721.9 Less: Current Maturities 100.6 6.3 Non-Current Portion $ 1,310.9 $ 1,715.6 Credit Agreement In connection with the PTS Acquisition, on January 30, 2015, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent and the lenders named therein, providing for a (i) 5 -year unsecured term loan facility in the principal amount of $1.25 billion (the “Term Facility”) and (ii) a 5 -year unsecured multicurrency revolving facility in the principal amount of $500.0 million (the “Multicurrency Revolving Facility”), including a $100.0 million letter of credit sub facility, available for general corporate purposes. The Credit Agreement replaced the Prior Credit Agreement, and the Multicurrency Revolving Facility replaced the Prior Revolving Facility (further discussed below). The Term Facility was drawn in full on January 30, 2015 in connection with the closing of the PTS Acquisition. The loan under the Term Facility requires quarterly amortization at a rate starting at 5.0% per annum, increasing to 7.5% per annum after two years and further increasing to 10.0% per annum for the last two years of the Term Facility, unless previously prepaid. At December 31, 2016 the Company had borrowings under the Multicurrency Revolving Facility in the amount of $18.0 million , $32.1 million of standby letters of credit issued under the facility, and $449.9 million of available borrowing capacity. Borrowings under the Credit Agreement bear interest at floating rates based upon indices determined by the currency of the borrowing, plus an applicable margin determined by reference to the Company's consolidated funded debt to consolidated EBITDA ratio or at an alternative base rate. The average daily balance in borrowings under the Multicurrency Revolving Facility was $21.0 million and the weighted average interest rate on the Multicurrency Revolving Facility was 2.2% for the year ended December 31, 2016. The weighted average interest rate on the Term Facility was 2.3% for the year ended December 31, 2016. The average daily balance in borrowings under the Multicurrency Revolving Facility was $48.2 million and the weighted average interest rate on the Multicurrency Revolving Facility was 1.9% for the year ended January 2, 2016. The weighted average interest rate on the Term Facility was 1.8% for the year ended January 2, 2016. The Company pays a non-use fee on the aggregate unused amount of the Multicurrency Revolving Facility at a rate determined by reference to its consolidated funded debt to consolidated EBITDA ratio. The Credit Agreement requires the Company prepay the loans under the Term Facility with 100% of the net cash proceeds received from specified asset sales and borrowed money indebtedness, subject to certain exceptions. Senior Notes At December 31, 2016 , the Company had $600.0 million of unsecured senior notes (the “Notes”) outstanding. The Notes consist of (i) $500.0 million in senior notes (the “2011 Notes”) in a private placement which were issued in seven tranches with maturities from seven to twelve years and carry fixed interest rates and (ii) $100.0 million in senior notes (the “2007 Notes”) issued in 2007 with a floating interest rate based on a margin over the London Inter-Bank Offered Rate (“LIBOR”). Details on the Notes at December 31, 2016 were (in millions): Principal Interest Rate Maturity Floating Rate Series 2007A 100.0 Floating (1) August 23, 2017 Fixed Rate Series 2011A 100.0 4.1% July 14, 2018 Fixed Rate Series 2011A 230.0 4.8 to 5.0% July 14, 2021 Fixed Rate Series 2011A 170.0 4.9 to 5.1% July 14, 2023 $ 600.0 (1) Interest rates vary as LIBOR varies. The interest rate was 1.6% and 1.1% at December 31, 2016 and January 2, 2016 respectively. The Company has an interest rate swap agreement to manage fluctuations in cash flows resulting from interest rate risk (see also Note 13 of Notes to the Consolidated Financial Statements). Compliance with Financial Covenants The Credit Agreement and the Notes require the Company to meet specified financial ratios and to satisfy certain financial condition tests. The Company was in compliance with all financial covenants contained in the Notes and the Credit Agreement as of December 31, 2016 . Prior Credit Agreement and Prior Revolving Facility On June 30, 2011, the Company entered into a 5 -year unsecured revolving credit agreement (the “Prior Credit Agreement”) that provided for an aggregate amount of availability under a revolving credit facility of $500.0 million , including a $100.0 million letter of credit sub facility (the “Prior Revolving Facility”). The Prior Credit Agreement and Prior Revolving Facility were replaced with the Credit Agreement (discussed above). The Prior Revolving Facility permitted borrowing at interest rates based upon a margin above LIBOR. The average balance in borrowings under the Prior Revolving Facility was $20.3 million and the average interest rate was 1.4% in fiscal 2014. At January 3, 2015, the Company had $17.0 million outstanding on the Prior Revolving Facility. The balance on the Prior Revolving Facility was fully paid on January 27, 2015. Other Notes Payable At December 31, 2016 , other notes payable of $5.1 million were outstanding with a weighted average interest rate of 5.6% . At January 2, 2016 , other notes payable of $15.5 million were outstanding with a weighted average rate of 2.5% . Other Disclosures Based on rates for instruments with comparable maturities and credit quality, which are classified as Level 2 inputs (see also Note 14 of Notes to the Consolidated Financial Statements), the approximate fair value of the Company's total debt was $1,433.4 million and $1,758.2 million as of December 31, 2016 and January 2, 2016 , respectively. Maturities of long-term debt, excluding debt issuance costs, are as follows (in millions): Year Amount of Maturity 2017 $ 100.6 2018 118.3 2019 17.2 2020 781.6 2021 230.3 Thereafter 173.2 Total $ 1,421.2 |
Retirement and Post Retirement
Retirement and Post Retirement Health Care Plans | 12 Months Ended |
Dec. 31, 2016 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Retirement and Post Retirement Health Care Plans | Retirement and Post Retirement Health Care Plans Retirement Plans The Company's domestic employees are participants in defined benefit pension plans and/or defined contribution plans. The majority of the Company's defined benefit pension plans covering the Company's domestic employees have been closed to new employees and frozen for existing employees. Most foreign employees are covered by government sponsored plans in the countries in which they are employed. The defined contribution plans provide for Company contributions based, depending on the plan, upon one or more of participant contributions, service and profits. Company contributions to domestic defined contribution plans totaled $8.7 million , $9.9 million , and $8.8 million in 2016 , 2015 and 2014 , respectively. Company contributions to non-US defined contribution plans were $10.4 million , $9.2 million and $12.6 million in 2016 , 2015 , and 2014 , respectively. Beginning in 2016, the Company changed the method used to estimate the service and interest cost components of the net periodic pension and other post retirement benefit costs. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows. The change will not affect the measurement of the total benefit obligations as the change in service and interest costs is offset in the actuarial gains and losses recorded in other comprehensive income. The methodology of selecting a discount rate that matches each plan's cash flows to that of a theoretical bond portfolio yield curve will continue to be used to value the benefit obligation at the end of each year. The Company changed to the new method to provide a more precise measure of interest and service costs by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company has accounted for this change as a change in estimate prospectively and it resulted in a $2.9 million reduction in expense for fiscal 2016 as compared to the previous method. Benefits provided under defined benefit pension plans are based, depending on the plan, on employees' average earnings and years of credited service, or a benefit multiplier times years of service. Funding of these qualified defined benefit pension plans is in accordance with federal laws and regulations. The actuarial valuation measurement date for pension plans is as of December 31, 2016. The Company's target allocation, target return and actual weighted-average asset allocation by asset category are as follows: Target Actual Allocation Allocation Return 2016 2015 Equity Investments 76 % 6.3 - 7.5 % 70 % 70 % Fixed Income 19 % 3.6 - 4.5% 25 % 26 % Other 5 % 5.4 % 5 % 4 % Total 100 % 7.0 % 100 % 100 % The Company's investment strategy for its defined benefit pension plans is to achieve moderately aggressive growth, earning a long-term rate of return sufficient to allow the plans to reach fully funded status. Accordingly, allocation targets have been established to fit this strategy, with a heavier long-term weighting of investments in equity securities. The long-term rate of return assumptions consider historic returns and volatilities adjusted for changes in overall economic conditions that may affect future returns and a weighting of each investment class. The following table presents a reconciliation of the funded status of the defined benefit pension plans (in millions): 2016 2015 Change in Projected Benefit Obligation: Obligation at Beginning of Period $ 255.1 $ 194.3 Service Cost 8.1 10.0 Interest Cost 9.8 10.7 Actuarial (Gain) Loss 3.6 (18.2 ) Less: Benefits Paid (1) 18.9 11.7 Foreign Currency Translation (0.8 ) (0.8 ) Acquisitions — 70.8 Obligation at End of Period: $ 256.9 $ 255.1 Change in Fair Value of Plan Assets: Fair Value of Plan Assets at Beginning of Period 162.1 126.6 Actual Return on Plan Assets 7.9 (1.0 ) Employer Contributions 9.2 4.7 Less: Benefits Paid 18.9 11.7 Foreign Currency Translation — (0.4 ) Acquisitions — 43.9 Fair Value of Plan Assets at End of Period $ 160.3 $ 162.1 Funded Status $ (96.6 ) $ (93.0 ) (1) 2016 benefit payments included $6.6 million of non-recurring lump sum benefit payments. Pension Assets The Company classifies the pension plan investments into Level 1, which refers to securities valued using quoted prices from active markets for identical assets, Level 2, which refers to securities not traded on an active market but for which observable market inputs are readily available, and Level 3, which refers to securities valued based on significant unobservable inputs. Common stocks and mutual funds are valued at the unadjusted quoted market prices for the securities. Real estate fund values are determined using model-based techniques that include relative value analysis and discounted cash flow techniques. Certain common collective trust funds and limited partnership interests are valued based on the net asset value ("NAV") as provided by the administrator of the fund as a practical expedient to estimate fair value. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. Investments in units of short-term investment funds, comprised of cash and money market funds, are valued at their respective NAVs as reported by the funds daily. Pension assets by type and level are as follows (in millions): December 31, 2016 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 3.5 $ 3.5 $ — $ — Common Stocks: Domestic Equities 22.9 22.9 — — International Equities 12.6 12.6 — — Mutual Funds: US Equity Funds 18.8 18.8 — — International Equity Funds 16.2 16.2 — — Balanced Funds 8.4 8.4 — — Fixed Income Funds 15.1 15.1 — — Other 1.3 1.3 — — Real Estate Fund 10.0 — — 10.0 $ 108.8 $ 98.8 $ — $ 10.0 Investments Measured at Net Asset Value 51.5 Total $ 160.3 January 2, 2016 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 4.5 $ 4.5 $ — $ — Common Stocks: Domestic Equities 24.9 24.9 — — International Equities 9.6 9.6 — — Mutual Funds: US Equity Funds 22.3 22.3 — — Balanced funds 9.7 9.7 — International Equity Funds 16.8 16.8 — — Fixed Income Funds 15.0 15.0 Other 1.0 1.0 — — Real Estate Fund 8.1 — — 8.1 $ 111.9 $ 103.8 $ — $ 8.1 Investments Measured at Net Asset Value 50.2 Total $ 162.1 The common collective trust funds are investments in the Northern Trust Collective S&P 500 Index Fund and the Northern Trust Collective Aggregate Bond Index Fund. The Northern Trust Collective S&P 500 Index Fund seeks to provide investment results that approximate the overall performance of the common stocks in that index. The Northern Trust Collective Aggregate Bond Index Fund seeks to provide investment results that approximate the overall performance of the Barclays Capital US Aggregate Index by investing primarily, but not exclusively, in securities that comprise that index. The common collective trust funds are available for immediate redemption. The global emerging markets fund limited partnership interest is an investment in the Vontobel Global Emerging Markets Fund, which seeks to provide capital appreciation by investing in a diversified portfolio consisting primarily of equity based securities. The global emerging markets fund limited partnership interest can be redeemed on a monthly basis with immediate payment. The following table sets forth additional disclosures for the fair value measurement of the fair value of pension plan assets that calculate fair value based on NAV per share practical expedient as of December 31, 2016 (in millions): 2016 2015 Common Collective Trust Funds $ 45.1 $ 43.8 Global Emerging Markets Fund Limited Partnership 6.4 6.4 Total $ 51.5 $ 50.2 The Level 3 assets noted below represent investments in real estate funds managed by a major US insurance company and a global emerging markets fund limited partnership. Estimated values provided by fund management approximate the cost of the investments. In determining the reasonableness of the methodology used to value the Level 3 investments, the Company evaluates a variety of factors including reviews of economic conditions, industry and market developments, and overall credit ratings. The real estate fund can be redeemed on a quarterly basis and paid within two weeks of the request for redemption. The table below sets forth a summary of changes in the Company's Level 3 assets in its pension plan investments as of December 31, 2016 and January 2, 2016 (in millions): December 31, January 2, Beginning Balance $ 8.1 $ 6.2 Acquisition — 1.0 Net Purchases 1.7 0.2 Net Gains 0.2 0.7 Ending Balance $ 10.0 $ 8.1 The following table sets forth a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Level 3 real estate fund as of December 31, 2016 (in millions): Fair Value Significant Unobservable Inputs $ 10.0 Exit Capitalization Rate 4.9% to 7.0% Discount Rate 6.6% to 8.0% The following table sets forth a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Level 3 real estate fund as of January 2, 2016 (in millions): Fair Value Significant Unobservable Inputs $ 8.1 Exit Capitalization Rate 4.9% to 7.0% Discount Rate 6.6% to 8.3% Funded Status and Expense The Company recognized the funded status of its defined benefit pension plans on the Balance Sheet as follows (in millions): 2016 2015 Accrued Compensation and Employee Benefits $ 2.8 $ 2.7 Pension and Other Post Retirement Benefits 93.8 90.3 $ 96.6 $ 93.0 Amounts Recognized in Accumulated Other Comprehensive Loss Net Actuarial Loss $ 54.5 $ 51.1 Prior Service Cost 1.2 1.2 $ 55.7 $ 52.3 The accumulated benefit obligation for all defined benefit pension plans was $232.9 million and $226.9 million at December 31, 2016 and January 2, 2016 , respectively. The accumulated plan benefit obligation exceeded plan assets for all pension plans as of December 31, 2016 and January 2, 2016 . The following weighted average assumptions were used to determine the projected benefit obligation at December 31, 2016 and January 2, 2016 , respectively: 2016 2015 Discount Rate 4.3% 4.6% The objective of the discount rate assumption is to reflect the rate at which the pension benefits could be effectively settled. In making the determination, the Company takes into account the timing and amount of benefits that would be available under the plans. The methodology for selecting the discount rate was to match the plan's cash flows to that of a theoretical bond portfolio yield curve. Certain of the Company's defined benefit pension plan obligations are based on years of service rather than on projected compensation percentage increases. For those plans that use compensation increases in the calculation of benefit obligations and net periodic pension cost, the Company used an assumed rate of compensation increase of 3.0% for the years ended December 31, 2016 and January 2, 2016 . Net periodic pension benefit costs and the net actuarial loss and prior service cost recognized in other comprehensive income (“OCI”) for the defined benefit pension plans were as follows (in millions): 2016 2015 2014 Service Cost $ 8.1 $ 10.0 $ 2.5 Interest Cost 9.8 10.7 8.3 Expected Return on Plan Assets (11.9 ) (11.5 ) (9.2 ) Amortization of Net Actuarial Loss 3.1 4.3 2.3 Amortization of Prior Service Cost 0.2 0.2 0.2 Net Periodic Benefit Cost $ 9.3 $ 13.7 $ 4.1 Change in Obligations Recognized in OCI, Net of Tax Prior Service Cost $ 0.1 $ 0.1 $ 0.1 Net Actuarial Loss 2.0 2.8 1.3 Total Recognized in OCI $ 2.1 $ 2.9 $ 1.4 The estimated prior service cost and net actuarial loss for the defined benefit pension plans that will be amortized from AOCI into net periodic benefit cost during the 2017 fiscal year are $0.2 million , and $2.2 million respectively. As permitted under relevant accounting guidance, the amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plans. The following weighted average assumptions were used to determine net periodic pension cost for fiscal years 2016 , 2015 and 2014 , respectively. 2016 2015 2014 Discount Rate 4.6% 4.2% 5.0% Expected Long-Term Rate of Return on Assets 7.2% 7.5% 8.0% The Company made contributions to its defined benefit plan of $9.2 million and $4.7 million for the fiscal years ended December 31, 2016 and January 2, 2016 , respectively. The Company estimates that in 2017 it will make contributions in the amount of $3.3 million to fund its defined benefit pension plans. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): Year Expected Payments 2017 $ 13.6 2018 13.2 2019 14.0 2020 14.6 2021 15.7 2022- 2025 83.5 Post Retirement Health Care Plan In connection with the PTS acquisition, the Company established an unfunded post retirement health care plan for certain domestic retirees and their dependents. The following table presents a reconciliation of the benefit obligation of the post retirement health care plan (in millions): Change in accumulated post retirement benefit obligation 2016 2015 Obligation at Beginning of Period $ 16.8 $ — Service Cost 0.1 0.1 Interest Cost 0.5 0.5 Actuarial (Gain) Loss (2.4 ) 2.9 Participant Contributions 0.2 0.6 Less: Benefits Paid 1.4 3.1 Acquisitions — 15.8 Obligation at End of Period $ 13.8 $ 16.8 The Company recognized the funded status of its post retirement health care plan on the balance sheet as follows (in millions): 2016 2015 Accrued Compensation and Employee Benefits $ 1.1 $ 1.2 Pension and Other Post Retirement Benefits 12.7 15.6 $ 13.8 $ 16.8 Amounts Recognized in Accumulated Other Comprehensive Loss Net Actuarial Loss $ 0.4 $ 2.9 Net periodic benefit costs for the post retirement health care plan were as follows (in millions): 2016 2015 Service Cost $ 0.1 $ 0.1 Interest Cost 0.5 0.5 Amortization of Net Actuarial Loss 0.2 — Net Periodic Benefit Cost $ 0.8 $ 0.6 The amortization of prior service cost recognized in OCI, net of tax, for fiscal 2016 was $0.1 million . There will be no amortization of net actuarial loss for the post retirement health care plan from Other Comprehensive Income into net periodic benefit cost during the 2017 fiscal year. The discount rate used to measure the benefit as of December 31, 2016 was 3.9% . The health care cost trend rate for 2017 is 7.0% for pre-65 participants and 5.4% for post-65 participants, decreasing to 4.5% in 2025. A one percentage point change in the health care cost trend rate assumption would have a $0.4 million impact on the benefit obligation and an immaterial impact on post retirement benefits expense. In 2016, the Company contributed $1.2 million to the post retirement health care plan. The Company estimates that, in 2017, it will make contributions of $1.1 million to the post retirement health care plan. The following post retirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): Year Expected Payments 2017 $ 1.1 2018 1.2 2019 1.3 2020 1.3 2021 1.3 2022 - 2026 5.5 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock The Company acquired and retired 180,000 shares of its common stock in the quarter ended October 3, 2015 at an average cost of $66.56 per share for a total of $12.0 million . The Company acquired and retired 500,000 shares of its common stock in the third quarter of 2014 at an average cost of $69.94 per share for a total of $35.0 million . The repurchases were under the 3.0 million share repurchase program approved by the Company's Board of Directors. There are approximately 2.3 million shares of our common stock available for repurchase under this program. Share Based Compensation The Company recognized approximately $13.3 million , $13.9 million and $11.9 million in share-based compensation expense in 2016 , 2015 and 2014 , respectively. The total income tax benefit recognized in the Consolidated Statements of Income for share-based compensation expense was $5.1 million , $5.3 million , and $4.5 million in 2016 , 2015 and 2014 , respectively. The Company recognizes compensation expense on grants of share-based compensation awards on a straight-line basis over the vesting period of each award. The total fair value of shares and options vested was $11.3 million , $10.9 million , and $11.1 million in in 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , total unrecognized compensation cost related to share-based compensation awards was approximately $24.2 million , net of estimated forfeitures, which the Company expects to recognize over a weighted average period of approximately 2.0 years. During 2014 , the Company's shareholders approved the 2013 Equity Incentive Plan ("2013 Plan"). The 2013 Plan authorizes the issuance of 3.5 million shares of common stock for equity-based awards, and terminates any further grants under prior equity plans. Approximately 1.4 million shares were available for future grant or payment under the 2013 Plan at December 31, 2016 . Options and Stock Appreciation Rights The Company uses several forms of share-based incentive awards, including non-qualified stock options, incentive stock options, and stock settled stock appreciation rights ("SARs"). Options and SARs generally vest over 5 years and expire 10 years from the grant date. All grants are made at prices equal to the fair market value of the stock on the grant date. The majority of the Company’s annual share-based incentive awards are made in the fiscal second quarter. For years ended December 31, 2016 , January 2, 2016 , and January 3, 2015, expired and canceled shares were immaterial. The table below presents share-based compensation activity for the three fiscal years ended 2016 , 2015 and 2014 (in millions): 2016 2015 2014 Total Intrinsic Value of Share-Based Incentive Awards Exercised $ 2.5 $ 4.3 $ 5.2 Cash Received from Stock Option Exercises 0.5 4.1 1.9 Income Tax Benefit from the Exercise of Stock Options — 1.6 2.0 Total Fair Value of Share-Based Incentive Awards Vested 4.9 4.9 5.5 The assumptions used in the Company's Black-Scholes valuation related to grants for options and SARs were as follows: 2016 2015 2014 Per Share Weighted Average Fair Value of Grants $ 15.22 $ 27.15 $ 28.01 Risk-Free Interest Rate 1.4 % 1.9 % 2.0 % Expected Life (Years) 7.0 7.0 7.0 Expected Volatility 29.6 % 35.6 % 37.7 % Expected Dividend Yield 1.7 % 1.2 % 1.2 % The average risk-free interest rate is based on US Treasury security rates in effect as of the grant date. The expected dividend yield is based on the projected annual dividend as a percentage of the estimated market value of the Company's common stock as of the grant date. The Company estimated the expected volatility using a weighted average of daily historical volatility of the Company's stock price over the expected term of the award. The Company estimated the expected term using historical data. Following is a summary of share-based incentive plan activity (options and SARs) for fiscal 2016 : Number of Shares Under Options and SARs Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at January 2, 2016 1,548,266 $ 63.09 Granted 293,400 57.43 Exercised (137,475 ) 45.60 Forfeited (34,887 ) 71.91 Expired (58,805 ) 68.56 Outstanding at December 31, 2016 1,610,499 $ 63.16 5.8 $ 12.9 Exercisable at December 31, 2016 952,766 $ 60.77 4.0 9.2 Compensation expense recognized related to options and SARs was $4.2 million for fiscal 2016. As of December 31, 2016 , there was $9.8 million of unrecognized compensation cost related to non-vested options and SARs that is expected to be recognized as a charge to earnings over a weighted average period of 3.3 years. The amount of options and SARs expected to vest is materially consistent with those outstanding and not yet exercisable. Restricted Stock Awards and Restricted Stock Units Restricted stock awards ("RSA") and restricted stock units ("RSU") consist of shares or the rights to shares of the Company's stock. The awards are restricted such that they are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer. As defined in the individual grant agreements, acceleration of vesting may occur under a change in control, or death, disability or normal retirement of the grantee. RSAs and RSUs are valued using the closing market price as of the grant date. Following is a summary of RSA activity for fiscal 2016 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested RSAs at January 2, 2016 14,400 $ 78.15 0.4 Granted 19,593 57.43 Vested (14,400 ) 78.15 Unvested RSAs December 31, 2016 19,593 $ 57.43 0.4 The weighted average grant date fair value of awards granted was $57.43 , $78.15 and $75.76 in 2016 , 2015 and 2014 , respectively. RSAs vest on the first anniversary of the grant date, provided the holder of the shares is continuously employed by or in the service of the Company until the vesting date. Compensation expense recognized related to the RSAs was $1.1 million for fiscal 2016 . As of December 31, 2016 , there was $0.4 million of unrecognized compensation cost related to non-vested RSAs that is expected to be recognized as a charge to earnings over a weighted average period of 0.4 years. Following is a summary of RSU activity for fiscal 2016 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested RSUs at January 2, 2016 268,655 $ 72.91 1.8 Granted 105,648 57.50 Vested (81,085 ) 65.23 Forfeited (15,355 ) 74.18 Unvested RSUs at December 31, 2016 277,863 $ 69.23 1.7 The weighted average grant date fair value of awards granted was $57.50 , $77.38 and $74.77 in 2016 , 2015 and 2014 , respectively. RSUs vest on the third anniversary of the grant date, provided the holder of the shares is continuously employed by the Company until the vesting date. Compensation expense recognized related to the RSUs was $5.6 million for fiscal 2016 . As of December 31, 2016 , there was $9.2 million of unrecognized compensation cost related to non-vested RSUs that is expected to be recognized as a charge to earnings over a weighted average period of 1.7 years. Performance Share Units Performance share unit ("PSU") awards consist of shares or the rights to shares of the Company's stock which are awarded to employees of the Company. These shares are payable upon the determination that the Company achieved certain established performance targets and can range from 0% to 200% of the targeted payout based on the actual results. PSUs have a performance period of 3 years . As set forth in the individual grant agreements, acceleration of vesting may occur under a change in control, death or disability. There are no voting rights with these instruments until vesting occurs and a share of stock is issued. Some of the PSU awards are valued using a Monte Carlo simulation method as of the grant date while others are valued using the closing market price as of the grant date depending on the performance criteria for the award. Following is a summary of PSU activity for fiscal 2016 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested PSUs at January 2, 2016 87,895 $ 75.81 1.9 Granted 83,605 51.84 Forfeited (38,160 ) 60.10 Unvested PSUs December 31, 2016 133,340 $ 65.28 2.0 The weighted average grant date fair value of awards granted was $51.84 , $89.98 and $83.74 in 2016 , 2015 and 2014 , respectively. Compensation expense for awards granted are recognized based on the Monte Carlo simulation value or the expected payout ratio depending upon the performance criterion for the award, net of estimated forfeitures. Compensation expense recognized related to PSUs was $2.4 million for fiscal 2016 and $1.8 million for fiscal 2015 . Total unrecognized compensation expense for all PSUs granted as of December 31, 2016 was $4.8 million and it is expected to be recognized as a charge to earnings over a weighted average period of 2.0 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before taxes consisted of the following (in millions): 2016 2015 2014 United States $ 143.4 $ 25.8 $ (11.2 ) Foreign 123.0 171.1 101.5 Total $ 266.4 $ 196.9 $ 90.3 The provision for income taxes is summarized as follows (in millions): 2016 2015 2014 Current Federal $ 23.1 $ 13.5 $ 37.8 State 3.5 0.2 1.5 Foreign 30.4 45.1 41.3 $ 57.0 $ 58.8 $ 80.6 Deferred Federal $ 5.6 $ (2.0 ) $ (21.2 ) State 1.8 (0.9 ) (2.0 ) Foreign (7.3 ) (7.5 ) (3.2 ) 0.1 (10.4 ) (26.4 ) Total $ 57.1 $ 48.4 $ 54.2 A reconciliation of the statutory federal income tax rate and the effective tax rate reflected in the consolidated statements of income follows: 2016 2015 2014 Federal Statutory Rate 35.0 % 35.0 % 35.0 % State Income Taxes, Net of Federal Benefit 1.5 % (0.2 )% (0.4 )% Domestic Production Activities Deduction (1.1 )% (1.0 )% (2.7 )% Foreign Rate Differential - China (2.0 )% (3.3 )% (7.7 )% Foreign Rate Differential - All Other (6.0 )% (7.2 )% (4.8 )% Research and Development Credit (2.3 )% (4.1 )% (7.4 )% Goodwill Impairment — % 4.0 % 42.9 % Valuation Allowance — % — % 4.2 % Adjustments to Tax Accruals and Reserves 0.7 % 2.1 % 2.4 % Write Down of Venezuelan Assets — % 2.3 % — % Other (4.4 )% (3.0 )% (1.5 )% Effective Tax Rate 21.4 % 24.6 % 60.0 % Deferred taxes arise primarily from differences in amounts reported for tax and financial statement purposes. The Company's net deferred tax liability was $(75.3) million as of December 31, 2016, classified on the consolidated Balance Sheet as a net non-current deferred tax asset of $22.4 million and a net non-current deferred income tax liability of $(97.7) million . As of January 2, 2016, the Company's net deferred tax liability was $(82.3) million classified on the consolidated Balance Sheet as a net non-current deferred income tax benefit of $18.6 million and a net non-current deferred income tax liability of $(100.9) million . The components of this net deferred tax liability are as follows (in millions): December 31, January 2, Accrued Employee Benefits $ 75.1 $ 72.9 Bad Debt Allowances 2.7 4.9 Warranty Accruals 5.5 4.9 Inventory 21.3 22.5 Accrued Liabilities 9.2 7.4 Derivative Instruments 25.9 30.3 Tax Loss Carryforward 12.4 14.4 Valuation Allowance (6.8 ) (8.2 ) Other 5.0 4.7 Deferred Tax Assets 150.3 153.8 Property Related (31.4 ) (46.1 ) Intangible Items (194.2 ) (190.0 ) Deferred Tax Liabilities (225.6 ) (236.1 ) Net Deferred Tax Liability $ (75.3 ) $ (82.3 ) Following is a reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions): Unrecognized Tax Benefits, December 28, 2013 $ 4.4 Gross Increases from Prior Period Tax Positions 0.1 Gross Increases from Current Period Tax Positions 3.6 Settlements with Taxing Authorities (2.1 ) Lapse of Statute of Limitations (0.2 ) Unrecognized Tax Benefits, January 3, 2015 $ 5.8 Gross Increases from Prior Period Tax Positions — Gross Increases from Current Period Tax Positions 4.0 Settlements with Taxing Authorities (1.3 ) Lapse of Statute of Limitations (0.2 ) Unrecognized Tax Benefits, January 2, 2016 $ 8.3 Gross Increases from Prior Period Tax Positions — Gross Increases from Current Period Tax Positions 2.0 Settlements with Taxing Authorities — Lapse of Statute of Limitations (0.3 ) Unrecognized Tax Benefits, December 31, 2016 $ 10.0 Unrecognized tax benefits as of December 31, 2016 amount to $10.0 million , all of which would impact the effective income tax rate if recognized. Potential interest and penalties related to unrecognized tax benefits are recorded in income tax expense. During fiscal 2016 , 2015 and 2014 , the Company recognized approximately $0.2 million , $0.6 million and $(0.2) million in net interest (income) expense, respectively. The Company had approximately $1.9 million , $1.7 million and $1.1 million of accrued interest as of December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. Due to statute expirations, approximately $0.3 million of the unrecognized tax benefits, including accrued interest, could reasonably change in the coming year. With few exceptions, the Company is no longer subject to US federal and state/local income tax examinations by tax authorities for years prior to 2011, and the Company is no longer subject to non-US income tax examinations by tax authorities for years prior to 2009. At December 31, 2016 , the Company had approximately $12.4 million of tax effected net operating losses in various jurisdictions with a portion expiring over a period of up to 15 years and the remaining without expiration. At January 2, 2016 , the Company had approximately $14.4 million of tax effected net operating losses in various jurisdictions with a portion expiring over a period up to 15 years and the remaining without expiration. Valuation allowances totaling $6.8 million and $8.2 million as of December 31, 2016 and January 2, 2016 , respectively, have been established for deferred income tax assets primarily related to certain subsidiary loss carryforwards that may not be realized. Realization of the net deferred income tax assets is dependent on generating sufficient taxable income prior to their expiration. Although realization is not assured, management believes it is more-likely-than-not that the net deferred income tax assets will be realized. The amount of the net deferred income tax assets considered realizable, however, could change in the near term if future taxable income during the carryforward period fluctuates. The Company has been granted tax holidays for some of its Chinese subsidiaries. These tax holidays expire in 2017 and are renewable subject to certain conditions with which the Company expects to comply. In 2016, these holidays decreased the Provision for Income Taxes by $2.2 million . The Company considers the earnings of certain non-US subsidiaries to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and its specific plans for reinvestment of those subsidiary earnings. The Company has not recorded a deferred tax liability of approximately $130.5 million related to the US federal and state income taxes and foreign withholding taxes on approximately $721.9 million of undistributed earnings of foreign subsidiaries indefinitely invested outside the United States. Should the Company decide to repatriate the foreign earnings, it would need to adjust its income tax provision in the period it determined that the earnings will no longer be indefinitely invested outside the United States. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments One of the Company's subsidiaries that it acquired in 2007 is subject to numerous claims filed in various jurisdictions relating to certain sub-fractional motors that were primarily manufactured through 2004 and that were included as components of residential and commercial ventilation units manufactured and sold in high volumes by a third party. These claims generally allege that the ventilation units were the cause of fires. Based on the current facts, the Company is not able to assure that these claims, individually or in the aggregate, will not have a material effect on its subsidiary’s results of operations, financial condition or cash flows. The Company is not able to reasonably predict the outcome of these claims, the nature or extent of remedial actions, if any, its subsidiary, or the Company on its behalf, may be required to undertake with respect to motors that remain in the field, or the costs that may be incurred, some of which could be significant. The Company is, from time to time, party to litigation and other legal or regulatory proceedings that arise in the normal course of its business operations and the outcomes of which are subject to significant uncertainty, including product warranty and liability claims, contract disputes and environmental, asbestos, intellectual property, employment and other litigation matters. The Company's products are used in a variety of industrial, commercial and residential applications that subject the Company to claims that the use of its products is alleged to have resulted in injury or other damage. Many of these matters will only be resolved when one or more future events occur or fail to occur. Management conducts regular reviews, including updates from legal counsel, to assess the need for accounting recognition or disclosure of these contingencies, and such assessment inherently involves an exercise in judgment. The Company accrues for exposures in amounts that it believes are adequate, and the Company does not believe that the outcome of any such lawsuit individually or collectively will have a material effect on the Company's financial position, its results of operations or its cash flows. The Company recognizes the cost associated with its standard warranty on its products at the time of sale. The amount recognized is based on historical experience. The following is a reconciliation of the changes in accrued warranty costs for 2016 and 2015 (in millions): December 31, January 2, Beginning Balance $ 19.1 $ 19.3 Less: Payments 20.6 21.5 Provisions 21.9 20.5 Acquisitions — 0.8 Translation Adjustments (0.1 ) — Ending Balance $ 20.3 $ 19.1 These liabilities are included in Other Accrued Expenses and Other Noncurrent Liabilities on the Consolidated Balance Sheet. |
Leases And Rental Commitments
Leases And Rental Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Operating [Abstract] | |
Leases and Rental Commitments | Leases and Rental Commitments Rental expenses charged to operations amounted to $31.9 million in 2016 , $45.1 million in 2015 and $38.3 million in 2014 . The Company has future minimum rental commitments under operating leases as shown in the following table (in millions): Year Expected Payments 2017 $ 19.4 2018 10.8 2019 5.9 2020 3.7 2021 3.4 Thereafter 4.8 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative instruments are commodity price risk, currency exchange risk, and interest rate risk. Forward contracts on certain commodities are entered into to manage the price risk associated with forecasted purchases of materials used in the Company's manufacturing process. Forward contracts on certain currencies are entered into to manage forecasted cash flows in certain foreign currencies. Interest rate swaps are entered into to manage interest rate risk associated with the Company's floating rate borrowings. The Company is exposed to credit losses in the event of non-performance by the counterparties to various financial agreements, including its commodity hedging transactions, foreign currency exchange contracts and interest rate swap agreements. Exposure to counterparty credit risk is managed by limiting counterparties to major international banks and financial institutions meeting established credit guidelines and continually monitoring their compliance with the credit guidelines. The Company does not obtain collateral or other security to support financial instruments subject to credit risk. The Company does not anticipate non-performance by its counterparties, but cannot provide assurances. The Company recognizes all derivative instruments as either assets or liabilities at fair value in the statement of financial position. The Company designates commodity forward contracts as cash flow hedges of forecasted purchases of commodities, currency forward contracts as cash flow hedges of forecasted foreign currency cash flows and interest rate swaps as cash flow hedges of forecasted LIBOR-based interest payments. There were no significant collateral deposits on derivative financial instruments as of December 31, 2016 . For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or changes in market value of derivatives not designated as hedges are recognized in current earnings. At December 31, 2016 and January 2, 2016 the Company had $(7.5) million and $(7.4) million , net of tax, of derivative losses on closed hedge instruments in AOCI that will be realized in earnings when the hedged items impact earnings. The Company had outstanding the following notional amounts to hedge forecasted purchases of commodities (in millions): December 31, 2016 January 2, 2016 Copper $ 50.7 $ 59.4 Aluminum 4.9 4.2 As of December 31, 2016 , the maturities of commodity forward contracts extended through December 2017 . The Company had outstanding the following notional amounts of currency forward contracts (in millions): December 31, 2016 January 2, 2016 Mexican Peso $ 230.1 $ 339.4 Chinese Renminbi 275.5 233.9 Indian Rupee 43.6 54.5 Euro 69.0 68.5 Canadian Dollar 41.8 6.2 Australian Dollar 12.1 10.8 Thai Baht 4.9 3.7 Japanese Yen 2.8 2.7 Great Britain Pound 4.3 4.8 Singapore Dollar — 0.5 As of December 31, 2016 , the maturities of currency forward contracts extended through October 2019 . As of December 31, 2016 and January 2, 2016 , the total notional amount of the Company's receive-variable/pay-fixed interest rate swap was $100.0 million (with maturities extending to August 2017). Fair values of derivative instruments were (in millions): December 31, 2016 Prepaid Expenses Other Noncurrent Assets Hedging Obligations (Current) Hedging Obligations (Noncurrent) Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ — $ 3.3 $ — Currency Contracts 1.3 0.4 39.7 17.6 Commodity Contracts 4.7 — — — Not Designated as Hedging Instruments: Currency Contracts 1.5 — 6.0 — Commodity Contracts 2.6 — — — Total Derivatives $ 10.1 $ 0.4 $ 49.0 $ 17.6 January 2, 2016 Prepaid Expenses Other Noncurrent Assets Hedging Obligations (Current) Hedging Obligations (Noncurrent) Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ — $ — $ 7.8 Currency Contracts 0.7 0.4 29.9 19.5 Commodity Contracts 0.1 — 8.7 — Not Designated as Hedging Instruments: Currency Contracts 0.5 0.6 0.9 0.3 Commodity Contracts 5.1 — 5.2 — Total Derivatives $ 6.4 $ 1.0 $ 44.7 $ 27.6 Derivatives Designated as Cash Flow Hedging Instruments The effect of derivative instruments on the consolidated statements of income and comprehensive income for fiscal 2016, 2015 and 2014 were (in millions): Fiscal 2016 Interest Commodity Currency Rate Forwards Forwards Swaps Total Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 6.4 $ (46.1 ) $ (0.3 ) $ (40.0 ) Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — 0.2 — 0.2 (Loss) Recognized in Cost of Sales (13.6 ) (32.1 ) — (45.7 ) (Loss) Recognized in Interest Expense — — (4.8 ) (4.8 ) Fiscal 2015 Interest Commodity Currency Rate Forwards Forwards Swaps Total (Loss) Recognized in Other Comprehensive Income (Loss) $ (22.3 ) $ (46.5 ) $ (1.1 ) $ (69.9 ) Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — 0.2 — 0.2 (Loss) Recognized in Cost of Sales (19.8 ) (18.5 ) — (38.3 ) (Loss) Recognized in Interest Expense — — (5.2 ) (5.2 ) Fiscal 2014 Interest Commodity Currency Rate Forwards Forwards Swaps Total (Loss) Recognized in Other Comprehensive Income (Loss) $ (18.8 ) $ (25.2 ) $ (0.5 ) $ (44.5 ) Amounts Reclassified from Other Comprehensive Income (Loss): (Loss) Gain Recognized in Cost of Sales (7.1 ) 7.6 — 0.5 (Loss) Recognized in Interest Expense — — (10.3 ) (10.3 ) The ineffective portion of hedging instruments recognized was immaterial for all periods presented. Derivatives Not Designated as Cash Flow Hedging Instruments The effect of derivative instruments on the consolidated statements of income for fiscal 2016, 2015 and 2014 were (in millions): Fiscal 2016 Commodity Forwards Currency Forwards Total Gain Recognized in Cost of Sales $ 2.6 $ — $ 2.6 Loss Recognized in Operating Expenses — (5.2 ) (5.2 ) Fiscal 2015 Commodity Forwards Currency Forwards Total Loss Recognized in Operating Expenses $ — $ (8.8 ) $ (8.8 ) Fiscal 2014 Commodity Forwards Currency Forwards Total Loss Recognized in Cost of Sales $ — $ (1.3 ) $ (1.3 ) The net AOCI balance related to hedging activities of $(41.1) million losses at December 31, 2016 includes $(24.1) million of net deferred losses expected to be reclassified to the Statement of Income in the next twelve months. There were no gains or losses reclassified from AOCI to earnings based on the probability that the forecasted transaction would not occur. The Company's commodity and currency derivative contracts are subject to master netting agreements with the respective counterparties which allow the Company to net settle transactions with a single net amount payable by one party to another party. The Company has elected to present the derivative assets and derivative liabilities on the Consolidated Balance Sheets on a gross basis for the periods ended December 31, 2016 and January 2, 2016 . The following table presents the derivative assets and derivative liabilities presented on a net basis under enforceable master netting agreements (in millions): December 31, 2016 Gross Amounts as Presented in the Consolidated Balance Sheet Derivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 2.8 $ (1.7 ) $ 1.1 Derivative Commodity Contracts 7.3 — 7.3 Other Non-Current Assets: Derivative Currency Contracts 0.4 (0.2 ) 0.2 Hedging Obligations Current: Derivative Currency Contracts 45.7 (1.7 ) 44.0 Hedging Obligations: Derivative Currency Contracts 17.6 (0.2 ) 17.4 January 2, 2016 Gross Amounts as Presented in the Consolidated Balance Sheet Derivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 1.2 $ (1.2 ) $ — Derivative Commodity Contracts 5.2 (5.2 ) — Other Noncurrent Assets: Derivative Currency Contracts 1.0 (1.0 ) — Hedging Obligations Current: Derivative Currency Contracts 30.8 (1.2 ) 29.6 Derivative Commodity Contracts 13.9 (5.2 ) 8.7 Hedging Obligations: Derivative Currency Contracts 19.8 (1.0 ) 18.8 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability The Company uses the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and January 2, 2016 , respectively (in millions): December 31, 2016 January 2, 2016 Classification Assets: Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 2.8 $ 1.2 Level 2 Derivative Commodity Contracts 7.3 5.2 Level 2 Other Non-Current Assets: Assets Held in Rabbi Trust 5.4 5.2 Level 1 Derivative Currency Contracts 0.4 1.0 Level 2 Liabilities: Hedging Obligations Current: Interest Rate Swap 3.3 — Level 2 Derivative Currency Contracts 45.7 30.8 Level 2 Derivative Commodity Contracts — 13.9 Level 2 Hedging Obligations: Interest Rate Swap — 7.8 Level 2 Derivative Currency Contracts 17.6 19.8 Level 2 Level 1 fair value measurements for assets held in a Rabbi Trust are unadjusted quoted prices. Level 2 fair value measurements for derivative assets and liabilities are measured using quoted prices in active markets for similar assets and liabilities. Interest rate swaps are valued based on the discounted cash flows for the LIBOR forward yield curve for a swap with similar contractual terms. Foreign currency forwards are valued based on exchange rates quoted by domestic and foreign banks for similar instruments. Commodity forwards are valued based on observable market transactions of forward commodity prices. The Company did not change its valuation techniques during fiscal 2016 . |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities The Company incurred restructuring and restructuring related costs on projects beginning in 2014. Restructuring costs includes employee termination and plant relocation costs. Restructuring-related costs includes costs directly associated with actions resulting from our Simplification initiatives, such as asset write-downs or accelerated depreciation due to shortened useful lives in connection with site closures, discretionary employment benefit costs and other facility rationalization costs. Restructuring costs for employee termination expenses are generally required to be accrued over the employees remaining service period while restructuring costs for plant relocation costs and restructuring-related costs are generally required to be expensed as incurred The following is a reconciliation of provisions and payments for the restructuring projects for 2016 and 2015 (in millions): December 31, January 2, Beginning Balance $ 1.3 $ 6.1 Provision 6.8 8.9 Less: Payments 7.5 13.7 Ending Balance $ 0.6 $ 1.3 The following is a reconciliation of expenses by type for the restructuring projects in fiscal 2016 and fiscal 2015 (in millions): 2016 2015 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ 0.5 $ 0.3 $ 0.8 $ 0.6 $ — $ 0.6 Facility Related Costs 2.9 0.3 3.2 3.8 1.2 5.0 Other Expenses 0.8 0.9 1.7 3.3 — 3.3 Total Restructuring Costs $ 4.2 $ 1.5 $ 5.7 $ 7.7 $ 1.2 $ 8.9 Restructuring Related Costs: Other Employment Benefit Expenses $ 0.5 $ 0.6 $ 1.1 $ — $ — $ — Total Restructuring Related costs $ 0.5 $ 0.6 $ 1.1 $ — $ — $ — Total Restructuring and Restructuring Related Costs $ 4.7 $ 2.1 $ 6.8 $ 7.7 $ 1.2 $ 8.9 The following table shows the allocation of Restructuring Expenses by segment for fiscal 2016 and fiscal 2015 (in millions): Total Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Restructuring Expenses - 2016 $ 6.8 $ 2.5 $ 2.6 $ 1.7 Restructuring Expenses - 2015 $ 8.9 $ 6.8 $ 1.5 $ 0.6 The Company's current restructuring activities are expected to continue into 2018. The Company expects to record aggregate future charges of approximately $12.9 million which includes $6.1 million of employee termination expenses and $6.8 million of facility related and other costs. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) (Amounts in Millions, Except per Share Data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2016 2015 2016 2015 2016 2015 2016 2015 Net Sales $ 818.2 $ 911.7 $ 838.6 $ 942.2 $ 809.6 $ 882.3 $ 758.1 $ 773.5 Gross Profit 217.4 220.9 222.9 251.4 231.7 241.1 193.2 219.8 Income (Loss) from Operations (1) 69.3 63.6 91.4 103.2 89.8 100.1 70.1 (14.1 ) Net Income (Loss) (1) 42.7 37.9 58.4 64.9 61.1 64.3 47.1 (18.6 ) Net Income (Loss) Attributable to Regal Beloit Corporation (1) 41.6 36.4 56.6 62.8 59.6 63.4 45.6 (19.3 ) Earnings (Loss) Per Share Attributable to Regal Beloit Corporation (2). Basic 0.93 0.81 1.27 1.40 1.33 1.42 1.02 (0.43 ) Assuming Dilution 0.93 0.81 1.26 1.39 1.32 1.41 1.01 (0.43 ) Weighted Average Number of Shares Outstanding Basic 44.7 44.7 44.7 44.8 44.8 44.8 44.8 44.7 Assuming Dilution 45.0 45.1 45.0 45.2 45.0 45.1 45.1 44.7 Net Sales Commercial and Industrial Systems $ 377.6 $ 456.4 $ 394.7 $ 441.0 $ 389.4 $ 426.8 $ 369.2 $ 370.7 Climate Solutions 239.8 280.4 254.5 286.1 250.5 264.4 215.2 210.3 Power Transmission Solutions 200.8 174.9 189.4 215.1 169.7 191.1 173.7 192.5 Income (Loss) from Operations (1) Commercial and Industrial Systems 21.7 33.3 25.1 41.5 36.2 38.8 20.5 (59.7 ) Climate Solutions 24.6 33.4 36.1 43.7 42.2 40.7 27.0 28.9 Power Transmission Solutions 23.0 (3.1 ) 30.2 18.0 11.4 20.6 22.6 16.7 (1) Included in the fourth quarter 2015 results was a goodwill impairment of $79.9 million ($58.1 million after tax) included in the Commercial and Industrial Systems segment. (2) Due to the weighting of both earnings and the weighted average number of shares outstanding, the sum of the quarterly earnings per share may not equal the annual earnings per share. |
Schedule II Regal Beloit Corpor
Schedule II Regal Beloit Corporation Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Regal Beloit Corporation Valuation And Qualifying Accounts | SCHEDULE II REGAL BELOIT CORPORATION VALUATION AND QUALIFYING ACCOUNTS Balance Beginning of Year Charged to Expenses Deductions (a) Adjustments (b) Balance End of Year (Dollars in Millions) Allowance for Receivables: Fiscal 2016 $ 11.3 1.6 (1.2 ) (0.2 ) $ 11.5 Fiscal 2015 11.6 12.2 (12.4 ) (0.1 ) 11.3 Fiscal 2014 11.5 19.5 (19.2 ) (0.2 ) 11.6 (a) Deductions consist of write offs charged against the allowance for doubtful accounts and warranty claim costs. (b) Adjustments related to acquisitions and translation. |
Accounting Policies (Policy)
Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned subsidiaries. In addition, the Company has joint ventures that are consolidated in accordance with consolidation accounting guidance. All intercompany accounts and transactions are eliminated. |
Accounting for Highly Inflationary Economics | Accounting for Highly Inflationary Economies The Company had a subsidiary in Venezuela using accounting for highly inflationary economies. Currency restrictions enacted by the Venezuelan government impacted the ability of the Company's subsidiary to obtain US dollars in exchange for Venezuelan bolivars fuertes ("Bolivars") at the official foreign exchange rate. In 2014, the Venezuelan government announced the expansion of its auction-based foreign exchange system (SICAD1). The Venezuelan government also introduced an additional auction-based foreign exchange system (SICAD2) which permitted all companies incorporated or domiciled in Venezuela to bid for US dollars. Effective January 3, 2015, the Company concluded that it was appropriate to apply the SICAD2 exchange rate of 51.0 Bolivars per US dollar as the Company believed that this rate best represented the economics of the business activity in Venezuela at that time. As a result, the Company recorded a $10.4 million pretax devaluation charge in the fourth quarter of 2014. During the first quarter of 2015, the Venezuelan government announced changes to its exchange rate system that included the launch of a new, market-based system known as the SIMADI. The Company adopted the SIMADI rate after its introduction. The SIMADI exchange rate was approximately 193 Venezuelan Bolivars to the US dollar as of April 4, 2015. The adoption of the SIMADI resulted in a $1.5 million pretax devaluation charge included in Operating Expenses during the first quarter 2015. In late 2015, the Company decided to cease doing business in Venezuela due to the inability of collecting payments on its receivables from certain customers in Venezuela, the difficulties in obtaining local currency and the increased economic uncertainty in that country. In the fourth quarter of fiscal 2015, in connection with the decision to cease doing business in Venezuela, the Company wrote off net assets of $12.8 million . |
Use of Estimates | Use of Estimates The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”), which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company uses estimates in accounting for, among other items, allowance for doubtful accounts; excess and obsolete inventory; share-based compensation; acquisitions; product warranty obligations; pension and post retirement assets and liabilities; derivative fair values; goodwill and other asset impairments; health care reserves; rebates and incentives; litigation claims and contingencies, including environmental matters; and income taxes. The Company accounts for changes to estimates and assumptions when warranted by factually based experience. |
Acquisitions | Acquisitions The Company recognizes assets acquired, liabilities assumed, contractual contingencies and contingent consideration at their fair value on the acquisition date. The operating results of the acquired companies are included in the Company’s consolidated financial statements from the date of acquisition. Acquisition-related costs are expensed as incurred, restructuring costs are recognized as post-acquisition expense and changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period are recorded in Provision for Income Taxes. |
Revenue Recognition | Revenue Recognition The Company generally recognizes revenue upon transfer of title, which generally occurs upon shipment of the product to the customer. The pricing of products sold is generally supported by customer purchase orders, and accounts receivable collection is reasonably assured at the time of shipment. Estimated discounts and rebates are recorded as a reduction of gross sales in the same period revenue is recognized. Product returns and credits are estimated and recorded at the time of shipment based upon historical experience. Shipping and handling costs are recorded as revenue when billed to the customers. The costs incurred from shipping are recorded in Cost of Sales and handling costs incurred in connection with selling and distribution activities are recorded in Operating Expenses. The Company has certain operating leases in the oil and gas industry where revenue is recognized over the term of the lease. The lease revenue is not material for all fiscal periods presented. The related net leased assets were not material at December 31, 2016 or January 2, 2016 and were included in Other Noncurrent Assets. The Company derives a significant portion of its revenues from several original equipment manufacturing customers. Despite this relative concentration, there were no customers that accounted for more than 10% of consolidated net sales in fiscal 2016 , fiscal 2015 or fiscal 2014 . |
Research And Development | Research and Development The Company performs research and development activities relating to new product development and the improvement of current products. The Company's research and development expenses consist primarily of costs for: (i) salaries and related personnel expenses; (ii) the design and development of new energy efficient products and enhancements; (iii) quality assurance and testing; and (iv) other related overhead. The Company's research and development efforts tend to be targeted toward developing new products that would allow it to gain additional market share, whether in new or existing segments. While these costs make up an insignificant portion of operating expenses in the Power Transmission Solutions segment, they are more substantial in the Climate Solutions and Commercial and Industrial Systems segments. In particular, a large driver of research and development efforts in the Climate Solutions and Commercial and Industrial Systems segments is energy efficiency. Research and development costs are expensed as incurred. For fiscal 2016, 2015 and 2014, research and development costs were $29.5 million , $30.1 million and $32.9 million , respectively. Research and development costs are recorded in Operating Expenses. |
Cash And Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments which are readily convertible to cash, present insignificant risk of changes in value due to interest rate fluctuations and have original or purchased maturities of three months or less. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents. The Company has material deposits with global financial institutions. The Company performs periodic evaluations of the relative credit standing of its financial institutions and monitors the amount of exposure. Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers and their dispersion across many geographic areas. The Company monitors credit risk associated with its trade receivables. |
Investments | Investments Investments include term deposits which have original maturities of greater than three months and remaining maturities of less than one year. The fair value of term deposits approximates their carrying value. These investments are included in Prepaid Expenses and Other Current Assets on the Company's Consolidated Balance Sheets. |
Trade Receivables | Trade Receivables Trade receivables are stated at estimated net realizable value. Trade receivables are comprised of balances due from customers, net of estimated allowances. In estimating losses inherent in trade receivables the Company uses historical loss experiences and applies them to a related aging analysis. Determination of the proper level of allowances requires management to exercise significant judgment about the timing, frequency and severity of losses. The allowances for doubtful accounts take into consideration numerous quantitative and qualitative factors, including historical loss experience, collection experience, delinquency trends and economic conditions. In circumstances where the Company is aware of a specific customer's inability to meet its obligation, a specific reserve is recorded against amounts receivable to reduce the net recognized receivable to the amount reasonably expected to be collected. Additions to the allowances for doubtful accounts are maintained through adjustments to the provision for doubtful accounts, which are charged to Operating Expenses in the current period; amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously charged-off accounts benefit current period earnings. |
Inventories | Inventories are stated at cost, which is not in excess of market. Cost for approximately 55% of the Company's inventory at December 31, 2016 and 42% at January 2, 2016 was determined using the last-in, first-out ("LIFO") method. If all inventories were valued on the first-in, first-out ("FIFO") method, they would have increased by $43.7 million and $28.0 million as of December 31, 2016 and January 2, 2016 , respectively. Material, labor and factory overhead costs are included in the inventories. The Company reviews inventories for excess and obsolete products or components. Based on an analysis of historical usage and management's evaluation of estimated future demand, market conditions and alternative uses for possible excess or obsolete parts, the Company records an excess and obsolete reserve. As of the beginning of its fiscal year 2016, the Company changed its inventory valuation method for the US inventory of the recently acquired Power Transmission Solutions (“PTS”) business to the LIFO method from the FIFO method. This change affected approximately 9% of the Company’s inventory. The Company believed this change in accounting principle was preferable under the circumstances because LIFO would better match current costs with current revenues since the cost of raw materials has been volatile in recent years, resulting in greater consistency in inventory costing across the organization since LIFO is the method used for the majority of the Company's other US inventory, and better aligns with how management assesses the performance of the business. Because this change in accounting principle was immaterial in all annual or interim prior periods, it was not applied retrospectively. The change did not have a material impact on the consolidated financial statements for the year ended December 31, 2016. Also, as of the beginning of its fiscal year 2016, the Company changed its method of calculating LIFO inventories, which represented approximately 51% of the Company’s inventory. The Company reduced the number of LIFO inventory pools to three to align with the Company’s segments. Previously, the Company had 10 LIFO inventory pools, some of which crossed segments. The Company believed this change in accounting principle was preferable under the circumstances because fewer pools will simplify the LIFO calculations, combine inventory items with similarities within a segment, and better align with how management assesses the performance of the businesses. The Company determined that it had the data needed to apply this change in accounting principle prospectively as of the beginning of its fiscal year 2014, but that full retrospective application is impracticable because the data is not available to determine the cumulative effect of the change. Because the effect of applying the change prospectively as of the beginning of fiscal 2014 is immaterial in any annual or interim period in fiscal years 2014 or 2015, the Company applied this change in accounting principle prospectively from the first day of fiscal year 2016. The change did not have a material impact on the consolidated financial statements for the year ended December 31, 2016. |
Property, Plant and Equipment | Property, Plant and Equipment Property, Plant and Equipment are stated at cost. Depreciation of plant and equipment is provided principally on a straight-line basis over the estimated useful lives ( 3 to 50 years ) of the depreciable assets. Accelerated methods are used for income tax purposes. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures which extend the useful lives of existing equipment are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. |
Goodwill And Intangible Assets | Goodwill The Company evaluates the carrying amount of goodwill annually or more frequently if events or circumstances indicate that the goodwill might be impaired. Factors that could trigger an impairment review include significant underperformance relative to historical or forecasted operating results, a significant decrease in the market value of an asset or significant negative industry or economic trends. For goodwill, the Company may perform a qualitative test to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. Based on prior goodwill impairment testing, the Company determined the performance of the quantitative impairment test was required for certain reporting units in 2016. The Company performs the required annual goodwill impairment test as of the end of the October fiscal month. The Company uses a weighting of the market approach and the income approach (discounted cash flow method) in testing goodwill for impairment. In the market approach, the Company applies performance multiples from comparable public companies, adjusted for relative risk, profitability, and growth considerations, to the reporting units to estimate fair value. The key assumptions used in the discounted cash flow method used to estimate fair value include discount rates, revenue and operating income projections and terminal value rates because such assumptions are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using market and industry data as well as Company-specific risk factors for each reporting unit. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant discount rate and long-term growth rates. The calculated fair values for the Company's 2016 impairment testing exceeded the carrying values of the reporting units for all of the Company's reporting units. The excess exceeded 10% of the carrying value for all reporting units except PTS. Throughout 2016, the Company's PTS reporting unit, which is a combination of the acquired PTS business from Emerson Electric and the Company's legacy PTS business, was impacted by declines in the oil and gas, distribution, and agricultural end-markets. The PTS reporting unit has goodwill of $570.8 million as of December 31, 2016. The Company's impairment test indicated the reporting unit’s implied fair value exceeded its book value by approximately 2% . Some of the key considerations used in the Company's impairment testing included (i) market pricing of guideline publicly traded companies (ii) cost of capital, including the risk-free interest rate, and (iii) recent historical and projected performance of the subject reporting unit. There is inherent uncertainty included in the assumptions used in goodwill impairment testing. A change to any of the assumptions could lead to a future impairment. The calculated fair values for the Company's reporting units exceeded the carrying values for a majority of the Company's reporting units in 2015. There were certain reporting units where the calculated fair values were less than the carrying values. The Commercial and Industrial Systems segment includes reporting units that have significant exposure to the volatility in the oil and gas industry. Crude oil prices remained depressed throughout 2015 with pronounced declines in the fourth quarter of 2015 and into 2016. Expected cash flows were also negatively impacted by lower gas and oil prices as lower prices decreased the capital spending of customers these reporting units serve. Weak economic conditions in China have contributed to the reduced expected cash flows for one of the reporting units in this region. An implied goodwill amount was calculated as a required second step in the testing, using the estimated fair value of all assets and liabilities of the reporting unit as if the unit had been acquired in a business combination. The resulting implied fair value of goodwill is a Level 3 asset measured at fair value on a non-recurring basis (see also Note 14 of the Notes to the Consolidated Financial Statements for fair value definitions). The total goodwill impairment charge related to these reporting units was $79.9 million and was recorded in Goodwill Impairment within the Consolidated Statements of Income. The calculated fair values for the Company's reporting units exceeded the carrying values for a majority of the Company's reporting units in 2014. There were certain reporting units where the calculated fair values were less than the carrying values. The Commercial and Industrial Systems segment and the Power Transmission Solutions segment include reporting units that have significant exposure to the volatility in the oil and gas industry. Crude oil prices saw a sharp decline in the latter part of 2014. Expected cash flows were also negatively impacted by lower gas and oil prices as lower prices decreased the capital spending of customers these reporting units serve. Weak economic conditions in regions such as Australia and New Zealand as well as currency devaluations in Venezuela have contributed to the reduced expected cash flows for our reporting units in these regions. In the Climate Solutions segment, unfavorable customer dynamics impacted one reporting unit's expected cash flows. An implied goodwill amount was then calculated as a required second step in the testing, using the estimated fair value of all assets and liabilities of the reporting unit as if the unit had been acquired in a business combination. The resulting implied fair value of goodwill is a Level 3 asset measured at fair value on a non-recurring basis (see also Note 14 of the Notes to the Consolidated Financial Statements for fair value definitions). Additionally, the Company’s reporting unit related to technology that had been deemed substantially impaired during the fourth quarter of 2013 was deemed fully impaired during 2014 as a result of the closing of the facility. This resulted in a $1.0 million impairment charge to goodwill. The total goodwill impairment charge related to these reporting units was $119.5 million and was recorded in Goodwill Impairment within the Consolidated Statements of Income. Intangible Assets I ntangible assets with finite lives are amortized over their estimated useful lives using the straight line method. The Company evaluates amortizing intangibles whenever events or circumstances have occurred that may indicate that carrying values may not be recoverable. If an indicator is present, the Company evaluates carrying values as compared to undiscounted estimated future cash flows. If such estimated future cash flows are less than carrying value, an impairment would be recognized. See also "Long-Lived Assets" in this footnote for the results and additional details of the impairment of certain long-lived assets and related charges in fiscal 2014. Indefinite-lived intangible assets are not amortized. The Company evaluates the carrying amount of indefinite-lived intangible assets annually or more frequently if events or circumstances indicate that the assets might be impaired. The Company performs the required annual impairment test as of the end of the October fiscal month. Indefinite-lived intangible assets consist of trade names associated with the acquired Power Transmission Solutions business. They were evaluated for impairment using a relief from royalty method to determine whether their fair values exceed their respective carrying amounts. The Company determined the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. For 2015 and 2016, the fair value of indefinite lived intangible assets exceeded their respective carrying value however in 2016, the fair value only exceeded the carrying value by approximately 2% . Some of the key considerations used in our impairment testing included (i) cost of capital, including the risk-free interest rate, (ii) royalty rate and (iii) recent historical and projected performance of the subject reporting unit. There is inherent uncertainty included in the assumptions used in indefinite-lived intangible asset testing. A change to any of the assumptions could lead to a future impairment. |
Long-Lived Assets | Long-Lived Assets The Company evaluates the recoverability of the carrying amount of property, plant and equipment and amortizing intangible assets (collectively, "long-lived assets") whenever events or changes in circumstance indicate that the carrying amount of an asset may not be fully recoverable through future cash flows. Factors that could trigger an impairment review include a significant decrease in the market value of an asset or significant negative or economic trends. For long-lived assets, the Company uses an estimate of the related undiscounted cash flows over the remaining life of the primary asset to estimate recoverability of the asset group. If the asset is not recoverable, the asset is written down to fair value. The Company concluded it did not have any impairments of long-lived assets in 2016. During 2015, due primarily to the continued decline in crude oil prices that was more pronounced in the fourth quarter of 2015 as well as weak economic conditions in China, an undiscounted cash flow test of long-lived assets for certain asset groups was performed. The undiscounted cash flows of each asset group tested exceeded its respective carrying value. As a result, no impairment was indicated. During 2014, due primarily to unfavorable customer dynamics and the effects of the sharp decline in the price of oil, the carrying amounts of intangible and other long-lived assets for two reporting units within the Climate Solutions and Power Transmission Solutions segments were deemed to be not fully recoverable. Fair value was determined using the discounted cash flows from the Company's internal cash flow projections and a discount rate indicative of the return an investor would expect to receive for investing in the asset which are Level 3 measurements. As a result, intangible and other long-lived asset impairments of $26.2 million were also recognized related to hydraulic fracturing equipment used in the oil and gas end markets. Technology and other long-lived asset impairments were recognized related to products used in hermetic climate applications of $13.8 million . Such impairments were recognized in Asset Impairments. |
Earnings Per Share | Earnings Per Share Diluted earnings per share is computed based upon earnings applicable to common shares divided by the weighted-average number of common shares outstanding during the period adjusted for the effect of other dilutive securities. |
Retirement and Post Retirement Plans | Retirement and Post Retirement Plans The Company's domestic employees are covered by defined contribution plans and approximately half of the Company's domestic employees are covered by defined benefit pension plans. The majority of the defined benefit pension plans covering the Company's domestic employees have been closed to new employees and frozen for existing employees. Certain employees are covered by a post retirement health care plan. Most of the Company's foreign employees are covered by government sponsored plans in the countries in which they are employed. The Company's obligations under its defined benefit pension and other post retirement plans are determined with the assistance of actuarial firms. The actuaries, under management's direction, make certain assumptions regarding such factors as withdrawal rates and mortality rates. The actuaries also provide information and recommendations from which management makes further assumptions on such factors as the long-term expected rate of return on plan assets, the discount rate on benefit obligations and where applicable, the rate of annual compensation increases and health care cost trend rates. Based upon the assumptions made, the investments made by the plans, overall conditions and movement in financial markets, life-spans of benefit recipients and other factors, annual expenses and recorded assets or liabilities of these defined benefit plans may change significantly from year to year. Beginning in 2016, the Company changed the method used to estimate the service and interest cost components of the net periodic pension and other post retirement benefit costs. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows. The change will not affect the measurement of the total benefit obligations as the change in service and interest costs is offset in the actuarial gains and losses recorded in other comprehensive income. The methodology of selecting a discount rate that matches each plan's cash flows to that of a theoretical bond portfolio yield curve will continue to be used to value the benefit obligation at the end of each year. The Company changed to the new method to provide a more precise measure of interest and service costs by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company has accounted for this change as a change in estimate prospectively and it resulted in a $2.9 million reduction in expense for fiscal 2016 as compared to the previous method. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative instruments are recorded on the Consolidated Balance Sheets at fair value. Any fair value changes are recorded in Net Income or Accumulated Other Comprehensive Loss ("AOCI") as determined under accounting guidance that establishes criteria for designation and effectiveness of the hedging relationships. The Company uses derivative instruments to manage its exposure to fluctuations in certain raw material commodity pricing, fluctuations in the cost of forecasted foreign currency transactions, and variability in interest rate exposure on floating rate borrowings. The majority of derivative instruments have been designated as cash flow hedges (see also Note 13 of Notes to the Consolidated Financial Statements). |
Income Taxes | Income Taxes The Company operates in numerous taxing jurisdictions and is subject to regular examinations by various US federal, state and foreign jurisdictions for various tax periods. The Company's income tax positions are based on research and interpretations of the income tax laws and rulings in each of the jurisdictions in which it does business. Due to the subjectivity of interpretations of laws and rulings in each jurisdiction, the differences and interplay in tax laws between those jurisdictions as well as the inherent uncertainty in estimating the final resolution of complex tax audit matters, estimates of income tax liabilities may differ from actual payments or assessments. |
Foreign Currency Translation | Foreign Currency Translation For those operations using a functional currency other than the US dollar, assets and liabilities are translated into US dollars at year-end exchange rates, and revenues and expenses are translated at weighted-average exchange rates. The resulting translation adjustments are recorded as a separate component of Shareholders' Equity. Pursuant to accounting rules guiding highly inflationary currency, the Company did not translate its prior Venezuelan subsidiary's financial statements as its functional currency was the US dollar. |
Product Warranty Reserves | Product Warranty Reserves The Company maintains reserves for product warranty to cover the stated warranty periods for its products. Such reserves are established based on an evaluation of historical warranty experience and specific significant warranty matters when they become known and can reasonably be estimated. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Foreign currency translation adjustments, unrealized gains and losses on derivative instruments designated as hedges and pension and post retirement liability adjustments are included in Shareholders' Equity under AOCI. |
Legal Claims and Contingent Liabilities | Legal Claims and Contingent Liabilities The Company is subject to various legal proceedings, claims and regulatory matters, the outcomes of which are subject to significant uncertainty and will only be resolved when one or more future events occur or fail to occur. Management conducts regular reviews, including updates from legal counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Company records expenses and liabilities when the Company believes that an obligation of the Company or a subsidiary on a specific matter is probable and there is a basis to reasonably estimate the value of the obligation, and such assessment inherently involves an exercise in judgment. This methodology is used for legal claims that are filed against the Company or a subsidiary from time to time. The uncertainty that is associated with such matters frequently requires adjustments to the liabilities previously recorded. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The fair values of cash equivalents, term deposits, trade receivables and accounts payable approximate their carrying values due to the short period of time to maturity. The fair value of debt is estimated using discounted cash flows based on rates for instruments with comparable maturities and credit ratings as further described in Note 7 of Notes to the Consolidated Financial Statements. The fair value of pension assets and derivative instruments is determined based on the methods disclosed in Notes 8 and 14 of Notes to the Consolidated Financial Statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles- Goodwill and Other: Simplifying the Accounting for Goodwill Impairment, which removes Step 2 from the goodwill impairment test. Under the new guidance, the amount of goodwill impairment will be determined by the amount the carrying value of the reporting unit exceeds its fair value. The Company adopted this ASU on January 1, 2017, and it will only be applicable to the extent that the Company determines its goodwill is impaired. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory, which removes the prohibition in Accounting Standards Codification ("ASC") 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. Under the ASU, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted as of the beginning of a fiscal year for which neither the annual or interim (if applicable) financial statements have been issued. The standard requires application using a modified retrospective transition method. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The new standard is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In March 2016 the FASB issued Accounting ASU No. 2016-09, Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting . The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. There are challenges for companies with significant share-based payment activities and there are various transition methods. The Company is required to adopt the new requirements in the first quarter of fiscal 2017. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The core principle of ASU 2016-02 is that an entity should recognize on its balance sheet assets and liabilities arising from a lease. In accordance with that principle, ASU 2016-02 requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying leased asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on the lease classification as a finance or operating lease. This new accounting guidance is effective for fiscal years beginning after December 15, 2018 under a modified retrospective approach and early adoption is permitted. The Company has identified a six step process to successfully implement the new Lease standard - Form a task force to become experts and take the lead on understanding and implementing the new Lease standard; Update lease inventories; Decide on transition method; Review legal agreements and debt covenants; Consider IT needs; Discuss with stakeholders. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements and has commenced the first step of identifying a task force to take the lead in implementing the new Lease standard. See also Note 11 of Notes to the Consolidated Financial Statements for our lease commitments. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, a comprehensive new revenue recognition standard that supersedes the revenue recognition requirements in ASC 605, revenue recognition. This update requires the Company to recognize revenue at amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services at the time of transfer. ASU No. 2014-09 (and related updates) will become effective for the Company at the beginning of its 2018 fiscal year. The standard allows the option of using either a full retrospective or a modified retrospective approach for the adoption of the standard. The Company has not yet selected which approach to apply. The Company has identified a four step process to successfully implement the new Revenue standard - data gathering, assessment, solution development, and solution implementation. The Company has completed step one, data gathering, and is currently in the process of the assessment phase. The Company is in the process of evaluating and quantifying the materiality of the standard’s impact on its consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients, which clarifies the guidance in Topic 606 on assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The amendments in ASU No. 2016-12 do not change the core principles of the guidance in Topic 606. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing , which clarifies the identification of performance obligations and the licensing implementation guidance in Topic 606. The amendments in ASU No. 2016-10 do not change the core principles of the guidance in Topic 606. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which amends the principal-versus-agent implementation guidance in ASU No. 2014-09 (Topic 606). ASU No. 2016-08 clarifies the principal-versus-agent guidance in Topic 606 and requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investment in Certain Entities That Calculate Net Asset Value per Share ("NAV") (or its Equivalent). This ASU removes from the fair value hierarchy investments for which the practical expedient is used to measure fair value at NAV. Instead, an entity is required to include those investments as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount on the balance sheet. Further, entities must provide the disclosure only for investments for which they elect to use the NAV practical expedient to determine fair value. The ASU should be applied retrospectively to all periods presented. The Company adopted this standard in 2016 and this standard did not have a material impact on the Company's consolidated financial statements but did impact the disclosures in Note 8 of Notes to the Consolidated Financial Statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Percentage Distribution Between Major Classes of Inventory | The major classes of inventory at year end are as follows: December 31, January 2, Raw Material and Work in Process 45 % 45 % Finished Goods and Purchased Parts 55 % 55 % |
Property, Plant and Equipment | Property, plant and equipment by major classification was as follows (in millions): Useful Life (In Years) December 31, 2016 January 2, Land and Improvements $ 76.7 $ 80.7 Buildings and Improvements 3-50 280.4 276.9 Machinery and Equipment 3-15 929.9 926.7 Property, Plant and Equipment 1,287.0 1,284.3 Less: Accumulated Depreciation (659.5 ) (605.8 ) Net Property, Plant and Equipment $ 627.5 $ 678.5 |
Schedule of Impairment | The details were as follows (in millions): Commercial & Industrial Systems Climate Solutions Power Transmission Solutions Total Impairments during 2014: Impairment of Intangible Assets $ — $ 7.8 $ 11.1 $ 18.9 Impairment of Property, Plant and Equipment — 6.0 15.1 21.1 Asset Impairments $ — $ 13.8 $ 26.2 $ 40.0 |
Earnings Per Share Reconciliation | The following table reconciles the basic and diluted shares used in earnings per share calculations for the years ended (in millions): 2016 2015 2014 Denominator for Basic Earnings Per Share 44.7 44.7 45.0 Effect of Dilutive Securities 0.3 0.4 0.3 Denominator for Diluted Earnings Per Share 45.0 45.1 45.3 |
Accumulated Other Comprehensive Loss | The components of the ending balances of AOCI are as follows (in millions): 2016 2015 Foreign Currency Translation Adjustments $ (241.0 ) $ (172.1 ) Hedging Activities, Net of Tax of $(25.2) in 2016 and $(29.1) in 2015 (41.1 ) (47.5 ) Pension and Post Retirement Benefits, Net of Tax of $(20.1) in 2016 and $(19.8) in 2015 (36.0 ) (35.4 ) Total $ (318.1 ) $ (255.0 ) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Power Transmission Solutions | |
Business Acquisition [Line Items] | |
Schedule of Preliminary Purchase Price Allocation | The purchase price allocation for PTS was as follows (in millions): As of January 30, 2015 Current Assets $ 22.5 Trade Receivables 67.2 Inventories 108.8 Property, Plant and Equipment 184.4 Intangible Assets 648.2 Goodwill 564.3 Total Assets Acquired 1,595.4 Accounts Payable 57.2 Current Liabilities Assumed 32.3 Long-Term Liabilities Assumed 97.0 Net Assets Acquired $ 1,408.9 |
Components of Intangible Assets Included as Part of Acquisition | The components of Intangible Assets included as part of the PTS acquisition was as follows (in millions): Weighted Average Amortization Period (Years) Gross Value Amortizable Intangible Assets Customer Relationships 17.0 $ 462.8 Technology 14.5 63.5 Intangible Assets Subject to Amortization 16.7 526.3 Non-Amortizable Intangible Assets Trade Names - 121.9 Intangible Assets $ 648.2 |
Schedule of Pro Forma Financial Information | The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the acquisition been completed as of the date indicated or the results that may be obtained in the future (in millions, except per share amounts): Fiscal 2015 Fiscal 2014 Pro Forma Net Sales $ 3,558.3 $ 3,864.4 Pro Forma Net Income Attributable to the Company 174.8 63.1 Basic Earnings Per Share as Reported $ 3.21 $ 0.69 Pro Forma Basic Earnings Per Share 3.91 1.40 Diluted Earnings Per Share as Reported $ 3.18 $ 0.69 Pro Forma Diluted Earnings Per Share 3.88 1.39 |
Benshaw [Member] | |
Business Acquisition [Line Items] | |
Schedule of Preliminary Purchase Price Allocation | The purchase price allocation for Benshaw was as follows (in millions): As of June 30, 2014 Current Assets $ 0.5 Trade Receivables 10.4 Inventories 22.4 Property, Plant and Equipment 4.5 Intangible Assets, Subject to Amortization 14.6 Goodwill 4.7 Total Assets Acquired 57.1 Accounts Payable 3.7 Current Liabilities Assumed 2.2 Long-Term Liabilities Assumed 0.2 Net Assets Acquired $ 51.0 |
Hy-Bon [Member] | |
Business Acquisition [Line Items] | |
Schedule of Preliminary Purchase Price Allocation | The purchase price allocation for Hy-Bon was as follows (in millions): As of February 7, 2014 Current Assets $ 1.7 Trade Receivables 11.5 Inventories 14.3 Property, Plant and Equipment 8.1 Intangible Assets, Subject to Amortization 13.4 Goodwill 40.6 Other Assets 0.1 Total Assets Acquired 89.7 Accounts Payable 5.5 Current Liabilities Assumed 5.1 Long-Term Liabilities Assumed 1.1 Net Assets Acquired $ 78.0 |
Benshaw, Hy-Bon, Cemp and RAM [Member] | |
Business Acquisition [Line Items] | |
Schedule of Pro Forma Financial Information | The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the acquisitions been completed as of the date indicated or the results that may be obtained in the future (in millions, except per share amounts): Fiscal 2014 Pro Forma Net Sales $ 3,291.2 Pro Forma Net Income Attributable to the Company 28.8 Basic Earnings Per Share as Reported $ 0.69 Pro Forma Basic Earnings Per Share 0.64 Diluted Earnings Per Share as Reported $ 0.69 Pro Forma Diluted Earnings Per Share 0.64 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents changes to goodwill during the periods indicated (in millions): Total Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Balance as of January 3, 2015 $ 1,004.0 $ 645.4 $ 344.6 $ 14.0 Acquisitions and Valuation Adjustments 559.4 (5.2 ) — 564.6 Less: Impairment Charges 79.9 79.9 — — Translation Adjustments (17.9 ) (12.6 ) (1.8 ) (3.5 ) Balance as of January 2, 2016 $ 1,465.6 $ 547.7 $ 342.8 $ 575.1 Acquisitions and Valuation Adjustments (0.3 ) — — (0.3 ) Translation Adjustments (12.1 ) (7.1 ) (1.0 ) (4.0 ) Balance as of December 31, 2016 $ 1,453.2 $ 540.6 $ 341.8 $ 570.8 Cumulative Goodwill Impairment Charges $ 275.7 $ 244.8 $ 7.7 $ 23.2 |
Schedule of Gross Intangibles | Gross intangible assets consist of the following (in millions): Weighted Average Amortization Period (Years) January 2, Acquisitions Translation Adjustments December 31, 2016 Customer Relationships 15 $ 709.0 $ — $ (5.4 ) $ 703.6 Technology 11 191.1 — (1.4 ) 189.7 Trademarks 12 32.1 — (0.3 ) 31.8 Patent and Engineering Drawings 5 16.6 — — 16.6 Non-compete Agreements 5 8.5 — (0.2 ) 8.3 957.3 — (7.3 ) 950.0 Non-amortizable Trade Names 121.3 — (0.5 ) 120.8 Total Gross Intangibles $ 1,078.6 $ — $ (7.8 ) $ 1,070.8 |
Schedule of Accumulated Amortization | Accumulated amortization on intangible assets consists of the following: January 2, 2016 Amortization Translation Adjustments December 31, 2016 Customer Relationships $ 161.4 $ 42.6 $ (2.4 ) $ 201.6 Technology 92.9 17.4 (0.8 ) 109.5 Trademarks 21.8 1.9 (0.4 ) 23.3 Patent and Engineering Drawings 16.6 — — 16.6 Non-compete Agreements 8.1 0.1 (0.1 ) 8.1 Total Accumulated Amortization $ 300.8 $ 62.0 $ (3.7 ) $ 359.1 Intangible Assets, Net of Amortization $ 777.8 $ 711.7 |
Schedule of Estimated Amortization | The following table presents estimated future amortization expense (in millions): Estimated Amortization Year 2017 $ 55.0 2018 53.0 2019 52.6 2020 49.5 2021 41.9 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information Attributable To The Reporting Segments | The following sets forth certain financial information attributable to the Company's operating segments for fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively (in millions): Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Eliminations Total Fiscal 2016 External Sales $ 1,530.9 $ 960.0 $ 733.6 $ — $ 3,224.5 Intersegment Sales 49.2 24.1 4.3 (77.6 ) — Total Sales 1,580.1 984.1 737.9 (77.6 ) 3,224.5 Gross Profit 379.2 245.1 240.9 — 865.2 Operating Expenses 275.7 115.2 153.7 — 544.6 Income from Operations 103.5 129.9 87.2 — 320.6 Depreciation and Amortization 74.7 24.4 56.3 — 155.4 Capital Expenditures 36.6 15.0 13.6 — 65.2 Identifiable Assets 1,872.7 881.8 1,604.0 — 4,358.5 Fiscal 2015 External Sales $ 1,694.9 $ 1,041.2 $ 773.6 $ — $ 3,509.7 Intersegment Sales 71.2 24.1 4.0 (99.3 ) — Total Sales 1,766.1 1,065.3 777.6 (99.3 ) 3,509.7 Gross Profit 441.1 262.2 229.9 — 933.2 Operating Expenses 307.2 115.6 177.7 — 600.5 Goodwill impairment 79.9 — — — 79.9 Income from Operations 54.0 146.6 52.2 — 252.8 Depreciation and Amortization 77.5 28.6 53.3 — 159.4 Capital Expenditures 52.3 18.5 21.4 — 92.2 Identifiable Assets 1,959.5 937.2 1,695.0 — 4,591.7 Fiscal 2014 External Sales $ 1,856.1 $ 1,134.8 $ 266.2 $ — $ 3,257.1 Intersegment Sales 78.2 19.2 5.1 (102.5 ) — Total Sales 1,934.3 1,154.0 271.3 (102.5 ) 3,257.1 Gross Profit 468.2 258.8 70.3 — 797.3 Operating Expenses 333.9 137.7 44.7 — 516.3 Goodwill Impairment 100.7 7.7 11.1 — 119.5 Asset Impairments — 13.8 26.2 — 40.0 Income (Loss) from Operations 33.6 99.6 (11.7 ) — 121.5 Depreciation and Amortization 81.5 45.0 12.2 — 138.7 Capital Expenditures 59.6 16.8 7.2 — 83.6 Identifiable Assets 2,371.7 842.6 142.9 — 3,357.2 |
Schedule of Financial Information Attributable To Geographic Regions | The following sets forth long-lived assets (net property, plant and equipment) by country in which the Company operates for fiscal 2016 and fiscal 2015 , respectively (in millions): Long-lived Assets 2016 2015 United States $ 290.3 $ 339.8 Mexico 120.2 114.6 China 99.6 107.9 Rest of the World 117.4 116.2 $ 627.5 $ 678.5 The following sets forth net sales by country in which the Company operates for fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively (in millions): Net Sales 2016 2015 2014 United States $ 2,212.6 $ 2,374.3 $ 2,359.3 Rest of the World 1,011.9 1,135.4 897.8 $ 3,224.5 $ 3,509.7 $ 3,257.1 |
Debt And Bank Credit Faciliti32
Debt And Bank Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule Of Indebtedness | The Company's indebtedness as of December 31, 2016 and January 2, 2016 was as follows (in millions): December 31, January 2, Term Facility $ 798.1 $ 1,118.1 Senior Notes 600.0 600.0 Multicurrency Revolving Facility 18.0 3.0 Other 5.1 15.5 Less: Debt Issuance Costs (9.7 ) (14.7 ) 1,411.5 1,721.9 Less: Current Maturities 100.6 6.3 Non-Current Portion $ 1,310.9 $ 1,715.6 |
Details Of The Senior Notes | Details on the Notes at December 31, 2016 were (in millions): Principal Interest Rate Maturity Floating Rate Series 2007A 100.0 Floating (1) August 23, 2017 Fixed Rate Series 2011A 100.0 4.1% July 14, 2018 Fixed Rate Series 2011A 230.0 4.8 to 5.0% July 14, 2021 Fixed Rate Series 2011A 170.0 4.9 to 5.1% July 14, 2023 $ 600.0 (1) Interest rates vary as LIBOR varies. The interest rate was 1.6% and 1.1% at December 31, 2016 and January 2, 2016 respectively. |
Maturities Of Long-Term Debt | Maturities of long-term debt, excluding debt issuance costs, are as follows (in millions): Year Amount of Maturity 2017 $ 100.6 2018 118.3 2019 17.2 2020 781.6 2021 230.3 Thereafter 173.2 Total $ 1,421.2 |
Retirement and Post Retiremen33
Retirement and Post Retirement Health Care Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Defined Benefit Pension Assets Investment | The Company's target allocation, target return and actual weighted-average asset allocation by asset category are as follows: Target Actual Allocation Allocation Return 2016 2015 Equity Investments 76 % 6.3 - 7.5 % 70 % 70 % Fixed Income 19 % 3.6 - 4.5% 25 % 26 % Other 5 % 5.4 % 5 % 4 % Total 100 % 7.0 % 100 % 100 % |
Schedule Of Fair Value Of Plan Assets | Pension assets by type and level are as follows (in millions): December 31, 2016 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 3.5 $ 3.5 $ — $ — Common Stocks: Domestic Equities 22.9 22.9 — — International Equities 12.6 12.6 — — Mutual Funds: US Equity Funds 18.8 18.8 — — International Equity Funds 16.2 16.2 — — Balanced Funds 8.4 8.4 — — Fixed Income Funds 15.1 15.1 — — Other 1.3 1.3 — — Real Estate Fund 10.0 — — 10.0 $ 108.8 $ 98.8 $ — $ 10.0 Investments Measured at Net Asset Value 51.5 Total $ 160.3 January 2, 2016 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 4.5 $ 4.5 $ — $ — Common Stocks: Domestic Equities 24.9 24.9 — — International Equities 9.6 9.6 — — Mutual Funds: US Equity Funds 22.3 22.3 — — Balanced funds 9.7 9.7 — International Equity Funds 16.8 16.8 — — Fixed Income Funds 15.0 15.0 Other 1.0 1.0 — — Real Estate Fund 8.1 — — 8.1 $ 111.9 $ 103.8 $ — $ 8.1 Investments Measured at Net Asset Value 50.2 Total $ 162.1 The following table sets forth additional disclosures for the fair value measurement of the fair value of pension plan assets that calculate fair value based on NAV per share practical expedient as of December 31, 2016 (in millions): 2016 2015 Common Collective Trust Funds $ 45.1 $ 43.8 Global Emerging Markets Fund Limited Partnership 6.4 6.4 Total $ 51.5 $ 50.2 |
Schedule of Level Three Defined Benefit Plan Assets | The table below sets forth a summary of changes in the Company's Level 3 assets in its pension plan investments as of December 31, 2016 and January 2, 2016 (in millions): December 31, January 2, Beginning Balance $ 8.1 $ 6.2 Acquisition — 1.0 Net Purchases 1.7 0.2 Net Gains 0.2 0.7 Ending Balance $ 10.0 $ 8.1 The following table sets forth a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Level 3 real estate fund as of December 31, 2016 (in millions): Fair Value Significant Unobservable Inputs $ 10.0 Exit Capitalization Rate 4.9% to 7.0% Discount Rate 6.6% to 8.0% The following table sets forth a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Level 3 real estate fund as of January 2, 2016 (in millions): Fair Value Significant Unobservable Inputs $ 8.1 Exit Capitalization Rate 4.9% to 7.0% Discount Rate 6.6% to 8.3% |
Schedule Of Weighted-Average Assumptions Used To Determine Projected Benefit Obligation | The following weighted average assumptions were used to determine the projected benefit obligation at December 31, 2016 and January 2, 2016 , respectively: 2016 2015 Discount Rate 4.3% 4.6% |
Schedule Of Assumptions Used To Determine Net Periodic Pension Cost | The following weighted average assumptions were used to determine net periodic pension cost for fiscal years 2016 , 2015 and 2014 , respectively. 2016 2015 2014 Discount Rate 4.6% 4.2% 5.0% Expected Long-Term Rate of Return on Assets 7.2% 7.5% 8.0% |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Reconciliation Of Funded Status Of The Defined Benefit Plans | The following table presents a reconciliation of the funded status of the defined benefit pension plans (in millions): 2016 2015 Change in Projected Benefit Obligation: Obligation at Beginning of Period $ 255.1 $ 194.3 Service Cost 8.1 10.0 Interest Cost 9.8 10.7 Actuarial (Gain) Loss 3.6 (18.2 ) Less: Benefits Paid (1) 18.9 11.7 Foreign Currency Translation (0.8 ) (0.8 ) Acquisitions — 70.8 Obligation at End of Period: $ 256.9 $ 255.1 Change in Fair Value of Plan Assets: Fair Value of Plan Assets at Beginning of Period 162.1 126.6 Actual Return on Plan Assets 7.9 (1.0 ) Employer Contributions 9.2 4.7 Less: Benefits Paid 18.9 11.7 Foreign Currency Translation — (0.4 ) Acquisitions — 43.9 Fair Value of Plan Assets at End of Period $ 160.3 $ 162.1 Funded Status $ (96.6 ) $ (93.0 ) (1) 2016 benefit payments included $6.6 million of non-recurring lump sum benefit payments. |
Schedule Of Amounts Recognized in Balance Sheet of Defined Benefit Plans | The Company recognized the funded status of its defined benefit pension plans on the Balance Sheet as follows (in millions): 2016 2015 Accrued Compensation and Employee Benefits $ 2.8 $ 2.7 Pension and Other Post Retirement Benefits 93.8 90.3 $ 96.6 $ 93.0 Amounts Recognized in Accumulated Other Comprehensive Loss Net Actuarial Loss $ 54.5 $ 51.1 Prior Service Cost 1.2 1.2 $ 55.7 $ 52.3 |
Schedule Of Net Periodic Pension Benefit Costs For The Defined Benefit Plans | Net periodic pension benefit costs and the net actuarial loss and prior service cost recognized in other comprehensive income (“OCI”) for the defined benefit pension plans were as follows (in millions): 2016 2015 2014 Service Cost $ 8.1 $ 10.0 $ 2.5 Interest Cost 9.8 10.7 8.3 Expected Return on Plan Assets (11.9 ) (11.5 ) (9.2 ) Amortization of Net Actuarial Loss 3.1 4.3 2.3 Amortization of Prior Service Cost 0.2 0.2 0.2 Net Periodic Benefit Cost $ 9.3 $ 13.7 $ 4.1 Change in Obligations Recognized in OCI, Net of Tax Prior Service Cost $ 0.1 $ 0.1 $ 0.1 Net Actuarial Loss 2.0 2.8 1.3 Total Recognized in OCI $ 2.1 $ 2.9 $ 1.4 |
Schedule Of Pension Benefit Payments Expected Future Service | The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): Year Expected Payments 2017 $ 13.6 2018 13.2 2019 14.0 2020 14.6 2021 15.7 2022- 2025 83.5 |
Postretirement Health Coverage [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Reconciliation Of Funded Status Of The Defined Benefit Plans | The following table presents a reconciliation of the benefit obligation of the post retirement health care plan (in millions): Change in accumulated post retirement benefit obligation 2016 2015 Obligation at Beginning of Period $ 16.8 $ — Service Cost 0.1 0.1 Interest Cost 0.5 0.5 Actuarial (Gain) Loss (2.4 ) 2.9 Participant Contributions 0.2 0.6 Less: Benefits Paid 1.4 3.1 Acquisitions — 15.8 Obligation at End of Period $ 13.8 $ 16.8 |
Schedule Of Amounts Recognized in Balance Sheet of Defined Benefit Plans | The Company recognized the funded status of its post retirement health care plan on the balance sheet as follows (in millions): 2016 2015 Accrued Compensation and Employee Benefits $ 1.1 $ 1.2 Pension and Other Post Retirement Benefits 12.7 15.6 $ 13.8 $ 16.8 Amounts Recognized in Accumulated Other Comprehensive Loss Net Actuarial Loss $ 0.4 $ 2.9 |
Schedule Of Net Periodic Pension Benefit Costs For The Defined Benefit Plans | Net periodic benefit costs for the post retirement health care plan were as follows (in millions): 2016 2015 Service Cost $ 0.1 $ 0.1 Interest Cost 0.5 0.5 Amortization of Net Actuarial Loss 0.2 — Net Periodic Benefit Cost $ 0.8 $ 0.6 |
Schedule Of Pension Benefit Payments Expected Future Service | The following post retirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): Year Expected Payments 2017 $ 1.1 2018 1.2 2019 1.3 2020 1.3 2021 1.3 2022 - 2026 5.5 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of share-based compensation activity | The table below presents share-based compensation activity for the three fiscal years ended 2016 , 2015 and 2014 (in millions): 2016 2015 2014 Total Intrinsic Value of Share-Based Incentive Awards Exercised $ 2.5 $ 4.3 $ 5.2 Cash Received from Stock Option Exercises 0.5 4.1 1.9 Income Tax Benefit from the Exercise of Stock Options — 1.6 2.0 Total Fair Value of Share-Based Incentive Awards Vested 4.9 4.9 5.5 |
Assumptions used in Black-Scholes Valuation for Options and SAR's | The assumptions used in the Company's Black-Scholes valuation related to grants for options and SARs were as follows: 2016 2015 2014 Per Share Weighted Average Fair Value of Grants $ 15.22 $ 27.15 $ 28.01 Risk-Free Interest Rate 1.4 % 1.9 % 2.0 % Expected Life (Years) 7.0 7.0 7.0 Expected Volatility 29.6 % 35.6 % 37.7 % Expected Dividend Yield 1.7 % 1.2 % 1.2 % |
Share-based Incentive Plan Grant Activity (Options and SAR's) | Following is a summary of share-based incentive plan activity (options and SARs) for fiscal 2016 : Number of Shares Under Options and SARs Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at January 2, 2016 1,548,266 $ 63.09 Granted 293,400 57.43 Exercised (137,475 ) 45.60 Forfeited (34,887 ) 71.91 Expired (58,805 ) 68.56 Outstanding at December 31, 2016 1,610,499 $ 63.16 5.8 $ 12.9 Exercisable at December 31, 2016 952,766 $ 60.77 4.0 9.2 |
RSA Award Activity | Following is a summary of RSA activity for fiscal 2016 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested RSAs at January 2, 2016 14,400 $ 78.15 0.4 Granted 19,593 57.43 Vested (14,400 ) 78.15 Unvested RSAs December 31, 2016 19,593 $ 57.43 0.4 |
RSU Award Activity | Following is a summary of RSU activity for fiscal 2016 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested RSUs at January 2, 2016 268,655 $ 72.91 1.8 Granted 105,648 57.50 Vested (81,085 ) 65.23 Forfeited (15,355 ) 74.18 Unvested RSUs at December 31, 2016 277,863 $ 69.23 1.7 |
PSU Award Activity | Following is a summary of PSU activity for fiscal 2016 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested PSUs at January 2, 2016 87,895 $ 75.81 1.9 Granted 83,605 51.84 Forfeited (38,160 ) 60.10 Unvested PSUs December 31, 2016 133,340 $ 65.28 2.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Before Taxes And Noncontrolling Interest | Income (loss) before taxes consisted of the following (in millions): 2016 2015 2014 United States $ 143.4 $ 25.8 $ (11.2 ) Foreign 123.0 171.1 101.5 Total $ 266.4 $ 196.9 $ 90.3 |
Provision For Income Taxes | The provision for income taxes is summarized as follows (in millions): 2016 2015 2014 Current Federal $ 23.1 $ 13.5 $ 37.8 State 3.5 0.2 1.5 Foreign 30.4 45.1 41.3 $ 57.0 $ 58.8 $ 80.6 Deferred Federal $ 5.6 $ (2.0 ) $ (21.2 ) State 1.8 (0.9 ) (2.0 ) Foreign (7.3 ) (7.5 ) (3.2 ) 0.1 (10.4 ) (26.4 ) Total $ 57.1 $ 48.4 $ 54.2 |
Reconciliation Of The Statutory Federal Income Tax Rate And The Effective Tax Rate | A reconciliation of the statutory federal income tax rate and the effective tax rate reflected in the consolidated statements of income follows: 2016 2015 2014 Federal Statutory Rate 35.0 % 35.0 % 35.0 % State Income Taxes, Net of Federal Benefit 1.5 % (0.2 )% (0.4 )% Domestic Production Activities Deduction (1.1 )% (1.0 )% (2.7 )% Foreign Rate Differential - China (2.0 )% (3.3 )% (7.7 )% Foreign Rate Differential - All Other (6.0 )% (7.2 )% (4.8 )% Research and Development Credit (2.3 )% (4.1 )% (7.4 )% Goodwill Impairment — % 4.0 % 42.9 % Valuation Allowance — % — % 4.2 % Adjustments to Tax Accruals and Reserves 0.7 % 2.1 % 2.4 % Write Down of Venezuelan Assets — % 2.3 % — % Other (4.4 )% (3.0 )% (1.5 )% Effective Tax Rate 21.4 % 24.6 % 60.0 % |
Components Of Net Deferred Tax Asset (Liability) | The components of this net deferred tax liability are as follows (in millions): December 31, January 2, Accrued Employee Benefits $ 75.1 $ 72.9 Bad Debt Allowances 2.7 4.9 Warranty Accruals 5.5 4.9 Inventory 21.3 22.5 Accrued Liabilities 9.2 7.4 Derivative Instruments 25.9 30.3 Tax Loss Carryforward 12.4 14.4 Valuation Allowance (6.8 ) (8.2 ) Other 5.0 4.7 Deferred Tax Assets 150.3 153.8 Property Related (31.4 ) (46.1 ) Intangible Items (194.2 ) (190.0 ) Deferred Tax Liabilities (225.6 ) (236.1 ) Net Deferred Tax Liability $ (75.3 ) $ (82.3 ) |
Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits | Following is a reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions): Unrecognized Tax Benefits, December 28, 2013 $ 4.4 Gross Increases from Prior Period Tax Positions 0.1 Gross Increases from Current Period Tax Positions 3.6 Settlements with Taxing Authorities (2.1 ) Lapse of Statute of Limitations (0.2 ) Unrecognized Tax Benefits, January 3, 2015 $ 5.8 Gross Increases from Prior Period Tax Positions — Gross Increases from Current Period Tax Positions 4.0 Settlements with Taxing Authorities (1.3 ) Lapse of Statute of Limitations (0.2 ) Unrecognized Tax Benefits, January 2, 2016 $ 8.3 Gross Increases from Prior Period Tax Positions — Gross Increases from Current Period Tax Positions 2.0 Settlements with Taxing Authorities — Lapse of Statute of Limitations (0.3 ) Unrecognized Tax Benefits, December 31, 2016 $ 10.0 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Accrued Warranty Costs | The following is a reconciliation of the changes in accrued warranty costs for 2016 and 2015 (in millions): December 31, January 2, Beginning Balance $ 19.1 $ 19.3 Less: Payments 20.6 21.5 Provisions 21.9 20.5 Acquisitions — 0.8 Translation Adjustments (0.1 ) — Ending Balance $ 20.3 $ 19.1 |
Leases And Rental Commitments (
Leases And Rental Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Operating [Abstract] | |
Future Minimum Rental Commitments | The Company has future minimum rental commitments under operating leases as shown in the following table (in millions): Year Expected Payments 2017 $ 19.4 2018 10.8 2019 5.9 2020 3.7 2021 3.4 Thereafter 4.8 |
Derivative Financial Instrume38
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative [Line Items] | |
Schedule Of Fair Values Of Derivative Instruments | Fair values of derivative instruments were (in millions): December 31, 2016 Prepaid Expenses Other Noncurrent Assets Hedging Obligations (Current) Hedging Obligations (Noncurrent) Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ — $ 3.3 $ — Currency Contracts 1.3 0.4 39.7 17.6 Commodity Contracts 4.7 — — — Not Designated as Hedging Instruments: Currency Contracts 1.5 — 6.0 — Commodity Contracts 2.6 — — — Total Derivatives $ 10.1 $ 0.4 $ 49.0 $ 17.6 January 2, 2016 Prepaid Expenses Other Noncurrent Assets Hedging Obligations (Current) Hedging Obligations (Noncurrent) Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ — $ — $ 7.8 Currency Contracts 0.7 0.4 29.9 19.5 Commodity Contracts 0.1 — 8.7 — Not Designated as Hedging Instruments: Currency Contracts 0.5 0.6 0.9 0.3 Commodity Contracts 5.1 — 5.2 — Total Derivatives $ 6.4 $ 1.0 $ 44.7 $ 27.6 |
Schedule Of Cash Flow Hedging Instruments | The effect of derivative instruments on the consolidated statements of income and comprehensive income for fiscal 2016, 2015 and 2014 were (in millions): Fiscal 2016 Interest Commodity Currency Rate Forwards Forwards Swaps Total Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 6.4 $ (46.1 ) $ (0.3 ) $ (40.0 ) Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — 0.2 — 0.2 (Loss) Recognized in Cost of Sales (13.6 ) (32.1 ) — (45.7 ) (Loss) Recognized in Interest Expense — — (4.8 ) (4.8 ) Fiscal 2015 Interest Commodity Currency Rate Forwards Forwards Swaps Total (Loss) Recognized in Other Comprehensive Income (Loss) $ (22.3 ) $ (46.5 ) $ (1.1 ) $ (69.9 ) Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — 0.2 — 0.2 (Loss) Recognized in Cost of Sales (19.8 ) (18.5 ) — (38.3 ) (Loss) Recognized in Interest Expense — — (5.2 ) (5.2 ) Fiscal 2014 Interest Commodity Currency Rate Forwards Forwards Swaps Total (Loss) Recognized in Other Comprehensive Income (Loss) $ (18.8 ) $ (25.2 ) $ (0.5 ) $ (44.5 ) Amounts Reclassified from Other Comprehensive Income (Loss): (Loss) Gain Recognized in Cost of Sales (7.1 ) 7.6 — 0.5 (Loss) Recognized in Interest Expense — — (10.3 ) (10.3 ) |
Schedule of Derivatives Not Designated as Cash Flow Hedging Instruments | The effect of derivative instruments on the consolidated statements of income for fiscal 2016, 2015 and 2014 were (in millions): Fiscal 2016 Commodity Forwards Currency Forwards Total Gain Recognized in Cost of Sales $ 2.6 $ — $ 2.6 Loss Recognized in Operating Expenses — (5.2 ) (5.2 ) Fiscal 2015 Commodity Forwards Currency Forwards Total Loss Recognized in Operating Expenses $ — $ (8.8 ) $ (8.8 ) Fiscal 2014 Commodity Forwards Currency Forwards Total Loss Recognized in Cost of Sales $ — $ (1.3 ) $ (1.3 ) |
Derivatives Offsetting Disclosures | The following table presents the derivative assets and derivative liabilities presented on a net basis under enforceable master netting agreements (in millions): December 31, 2016 Gross Amounts as Presented in the Consolidated Balance Sheet Derivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 2.8 $ (1.7 ) $ 1.1 Derivative Commodity Contracts 7.3 — 7.3 Other Non-Current Assets: Derivative Currency Contracts 0.4 (0.2 ) 0.2 Hedging Obligations Current: Derivative Currency Contracts 45.7 (1.7 ) 44.0 Hedging Obligations: Derivative Currency Contracts 17.6 (0.2 ) 17.4 January 2, 2016 Gross Amounts as Presented in the Consolidated Balance Sheet Derivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 1.2 $ (1.2 ) $ — Derivative Commodity Contracts 5.2 (5.2 ) — Other Noncurrent Assets: Derivative Currency Contracts 1.0 (1.0 ) — Hedging Obligations Current: Derivative Currency Contracts 30.8 (1.2 ) 29.6 Derivative Commodity Contracts 13.9 (5.2 ) 8.7 Hedging Obligations: Derivative Currency Contracts 19.8 (1.0 ) 18.8 |
Commodity Forward Contracts [Member] | |
Derivative [Line Items] | |
Schedule Of Notional Amounts Of Forward Contracts | The Company had outstanding the following notional amounts to hedge forecasted purchases of commodities (in millions): December 31, 2016 January 2, 2016 Copper $ 50.7 $ 59.4 Aluminum 4.9 4.2 |
Currency Forward Contracts [Member] | |
Derivative [Line Items] | |
Schedule Of Notional Amounts Of Forward Contracts | The Company had outstanding the following notional amounts of currency forward contracts (in millions): December 31, 2016 January 2, 2016 Mexican Peso $ 230.1 $ 339.4 Chinese Renminbi 275.5 233.9 Indian Rupee 43.6 54.5 Euro 69.0 68.5 Canadian Dollar 41.8 6.2 Australian Dollar 12.1 10.8 Thai Baht 4.9 3.7 Japanese Yen 2.8 2.7 Great Britain Pound 4.3 4.8 Singapore Dollar — 0.5 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Financial Assets And Liabilities At Fair Value | The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and January 2, 2016 , respectively (in millions): December 31, 2016 January 2, 2016 Classification Assets: Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 2.8 $ 1.2 Level 2 Derivative Commodity Contracts 7.3 5.2 Level 2 Other Non-Current Assets: Assets Held in Rabbi Trust 5.4 5.2 Level 1 Derivative Currency Contracts 0.4 1.0 Level 2 Liabilities: Hedging Obligations Current: Interest Rate Swap 3.3 — Level 2 Derivative Currency Contracts 45.7 30.8 Level 2 Derivative Commodity Contracts — 13.9 Level 2 Hedging Obligations: Interest Rate Swap — 7.8 Level 2 Derivative Currency Contracts 17.6 19.8 Level 2 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following is a reconciliation of provisions and payments for the restructuring projects for 2016 and 2015 (in millions): December 31, January 2, Beginning Balance $ 1.3 $ 6.1 Provision 6.8 8.9 Less: Payments 7.5 13.7 Ending Balance $ 0.6 $ 1.3 |
Schedule of Restructuring and Related Costs | The following is a reconciliation of expenses by type for the restructuring projects in fiscal 2016 and fiscal 2015 (in millions): 2016 2015 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ 0.5 $ 0.3 $ 0.8 $ 0.6 $ — $ 0.6 Facility Related Costs 2.9 0.3 3.2 3.8 1.2 5.0 Other Expenses 0.8 0.9 1.7 3.3 — 3.3 Total Restructuring Costs $ 4.2 $ 1.5 $ 5.7 $ 7.7 $ 1.2 $ 8.9 Restructuring Related Costs: Other Employment Benefit Expenses $ 0.5 $ 0.6 $ 1.1 $ — $ — $ — Total Restructuring Related costs $ 0.5 $ 0.6 $ 1.1 $ — $ — $ — Total Restructuring and Restructuring Related Costs $ 4.7 $ 2.1 $ 6.8 $ 7.7 $ 1.2 $ 8.9 The following table shows the allocation of Restructuring Expenses by segment for fiscal 2016 and fiscal 2015 (in millions): Total Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Restructuring Expenses - 2016 $ 6.8 $ 2.5 $ 2.6 $ 1.7 Restructuring Expenses - 2015 $ 8.9 $ 6.8 $ 1.5 $ 0.6 |
Quarterly Financial Informati41
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarterly Financial Information (Unaudited) (Amounts in Millions, Except per Share Data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2016 2015 2016 2015 2016 2015 2016 2015 Net Sales $ 818.2 $ 911.7 $ 838.6 $ 942.2 $ 809.6 $ 882.3 $ 758.1 $ 773.5 Gross Profit 217.4 220.9 222.9 251.4 231.7 241.1 193.2 219.8 Income (Loss) from Operations (1) 69.3 63.6 91.4 103.2 89.8 100.1 70.1 (14.1 ) Net Income (Loss) (1) 42.7 37.9 58.4 64.9 61.1 64.3 47.1 (18.6 ) Net Income (Loss) Attributable to Regal Beloit Corporation (1) 41.6 36.4 56.6 62.8 59.6 63.4 45.6 (19.3 ) Earnings (Loss) Per Share Attributable to Regal Beloit Corporation (2). Basic 0.93 0.81 1.27 1.40 1.33 1.42 1.02 (0.43 ) Assuming Dilution 0.93 0.81 1.26 1.39 1.32 1.41 1.01 (0.43 ) Weighted Average Number of Shares Outstanding Basic 44.7 44.7 44.7 44.8 44.8 44.8 44.8 44.7 Assuming Dilution 45.0 45.1 45.0 45.2 45.0 45.1 45.1 44.7 Net Sales Commercial and Industrial Systems $ 377.6 $ 456.4 $ 394.7 $ 441.0 $ 389.4 $ 426.8 $ 369.2 $ 370.7 Climate Solutions 239.8 280.4 254.5 286.1 250.5 264.4 215.2 210.3 Power Transmission Solutions 200.8 174.9 189.4 215.1 169.7 191.1 173.7 192.5 Income (Loss) from Operations (1) Commercial and Industrial Systems 21.7 33.3 25.1 41.5 36.2 38.8 20.5 (59.7 ) Climate Solutions 24.6 33.4 36.1 43.7 42.2 40.7 27.0 28.9 Power Transmission Solutions 23.0 (3.1 ) 30.2 18.0 11.4 20.6 22.6 16.7 (1) Included in the fourth quarter 2015 results was a goodwill impairment of $79.9 million ($58.1 million after tax) included in the Commercial and Industrial Systems segment. (2) Due to the weighting of both earnings and the weighted average number of shares outstanding, the sum of the quarterly earnings per share may not equal the annual earnings per share. |
Nature of Operations (Details)
Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Nature of Operations [Abstract] | |
Number of reported segments | 3 |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||
Jan. 02, 2016USD ($) | Apr. 04, 2015USD ($)VEF / $ | Jan. 03, 2015USD ($)VEF / $ | Dec. 31, 2016USD ($)Rate | Jan. 02, 2016USD ($)unit | Jan. 03, 2015USD ($)VEF / $ | |
Property, Plant and Equipment [Line Items] | ||||||
Loss on Venezuela Currency Devaluation | $ 0 | $ 1,500,000 | $ 10,400,000 | |||
Research and development costs | 29,500,000 | 30,100,000 | 32,900,000 | |||
Commitments for purchases of property, plant, and equipment | 6,600,000 | |||||
Goodwill | $ 1,465,600,000 | $ 1,004,000,000 | 1,453,200,000 | 1,465,600,000 | 1,004,000,000 | |
Goodwill Impairment | 79,900,000 | $ 0 | 79,900,000 | 119,500,000 | ||
Percentage of fair value in excess of carrying value | Rate | 2.00% | |||||
Impairment of Intangible Assets | 0 | 18,900,000 | ||||
Retirement plan, reduction of expense | $ 2,900,000 | |||||
Technology | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Goodwill Impairment | 1,000,000 | |||||
Power Transmission Solutions | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Goodwill | 575,100,000 | 14,000,000 | $ 570,800,000 | 575,100,000 | 14,000,000 | |
Goodwill Impairment | 0 | |||||
Percentage of fair value in excess of carrying value | 2.00% | |||||
Impairment of Intangible Assets | 11,100,000 | |||||
Commercial and Industrial Systems | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Goodwill | 547,700,000 | 645,400,000 | $ 540,600,000 | 547,700,000 | 645,400,000 | |
Goodwill Impairment | $ 79,900,000 | |||||
Impairment of Intangible Assets | 0 | |||||
Climate Solutions and Power Transmission Solutions [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of reporting units | unit | 2 | |||||
Goodwill Impairment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Goodwill Impairment | $ 79,900,000 | 119,500,000 | ||||
Asset Impairments and Other, Net [Member] | Hydraulic Fracturing Equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Impairment of Intangible Assets | 26,200,000 | |||||
Asset Impairments and Other, Net [Member] | Hermetic Climate Applications [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Impairment of Intangible Assets | $ 13,800,000 | |||||
VENEZUELA | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Loss on Venezuelan asset write down | $ 12,800,000 | |||||
SIMADI [Member] | VENEZUELA | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Loss on Venezuela Currency Devaluation | $ 1,500,000 | |||||
SIMADI [Member] | VENEZUELA | Venezuelan bolívar fuerte | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Exchange rate translation | VEF / $ | 193 | |||||
SICAD2 [Member] | VENEZUELA | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Loss on Venezuela Currency Devaluation | $ 10,400,000 | |||||
SICAD2 [Member] | VENEZUELA | Venezuelan bolívar fuerte | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Exchange rate translation | VEF / $ | 51 | 51 |
Accounting Policies (Inventorie
Accounting Policies (Inventories) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($)inventory_pool | Jan. 03, 2016inventory_pool | |
Inventory [Line Items] | |||
Raw Material and Work in Process | 45.00% | 45.00% | |
Finished Goods and Purchased Parts | 55.00% | 55.00% | |
Percentage of LIFO Inventory | 55.00% | 42.00% | 51.00% |
FIFO LIFO valuation difference | $ | $ 43.7 | $ 28 | |
Number of LIFO Inventory Pools | inventory_pool | 10 | 3 | |
Power Transmission Solutions | |||
Inventory [Line Items] | |||
Percentage of LIFO Inventory | 9.00% |
Accounting Policies (Property,
Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 1,287 | $ 1,284.3 |
Less: Accumulated Depreciation | (659.5) | (605.8) |
Net Property, Plant and Equipment | 627.5 | 678.5 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 76.7 | 80.7 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 280.4 | 276.9 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 929.9 | $ 926.7 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Minimum [Member] | Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Minimum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 50 years | |
Maximum [Member] | Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 50 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 years |
Accounting Policies (Impairment
Accounting Policies (Impairment Schedule) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets | $ 0 | $ 18,900,000 | |
Impairment of Property, Plant and Equipment | 21,100,000 | ||
Asset Impairments | $ 0 | $ 0 | 40,000,000 |
Climate Solutions | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets | 7,800,000 | ||
Impairment of Property, Plant and Equipment | 6,000,000 | ||
Asset Impairments | 13,800,000 | ||
Commercial and Industrial Systems | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets | 0 | ||
Impairment of Property, Plant and Equipment | 0 | ||
Asset Impairments | 0 | ||
Power Transmission Solutions | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets | 11,100,000 | ||
Impairment of Property, Plant and Equipment | 15,100,000 | ||
Asset Impairments | $ 26,200,000 |
Accounting Policies (Earnings P
Accounting Policies (Earnings Per Share Reconciliation) (Details) - shares shares in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Accounting Policies [Abstract] | |||||||||||
Shares excluded from the calculation of the effect of dilutive securities | 1.3 | 0.7 | 0.3 | ||||||||
Denominator for basic EPS | 44.8 | 44.8 | 44.7 | 44.7 | 44.7 | 44.8 | 44.8 | 44.7 | 44.7 | 44.7 | 45 |
Effect of Dilutive Securities | 0.3 | 0.4 | 0.3 | ||||||||
Denominator for diluted EPS | 45.1 | 45 | 45 | 45 | 44.7 | 45.1 | 45.2 | 45.1 | 45 | 45.1 | 45.3 |
Accounting Policies (Accumulate
Accounting Policies (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Translation adjustments | $ (241) | $ (172.1) |
Hedging activities, net of tax | (41.1) | (47.5) |
Pension and post retirement benefits, net of tax | (36) | (35.4) |
Accumulated Other Comprehensive Loss | (318.1) | (255) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), tax | (25.2) | (29.1) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), tax | $ (20.1) | $ (19.8) |
Acquisitions and Divestitures49
Acquisitions and Divestitures (Narrative) (Details) | Jul. 07, 2016USD ($)installment | Jun. 01, 2016USD ($) | Jan. 18, 2016USD ($) | Jan. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Feb. 07, 2014USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Apr. 02, 2016USD ($) | Jan. 02, 2016USD ($) | Oct. 03, 2015USD ($) | Jul. 04, 2015USD ($) | Apr. 04, 2015USD ($) | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition-related expenses | $ 0 | $ 9,100,000 | $ 5,800,000 | ||||||||||||||
Net Sales | $ 758,100,000 | $ 809,600,000 | $ 838,600,000 | $ 818,200,000 | $ 773,500,000 | $ 882,300,000 | $ 942,200,000 | $ 911,700,000 | 3,224,500,000 | 3,509,700,000 | 3,257,100,000 | ||||||
Income from Operations | 70,100,000 | 89,800,000 | 91,400,000 | 69,300,000 | (14,100,000) | 100,100,000 | 103,200,000 | 63,600,000 | 320,600,000 | 252,800,000 | 121,500,000 | ||||||
Proceeds from Disposal of Business | 24,600,000 | 0 | 0 | ||||||||||||||
Power Transmission Solutions | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Net Sales | 173,700,000 | 169,700,000 | 189,400,000 | 200,800,000 | 192,500,000 | 191,100,000 | 215,100,000 | 174,900,000 | 733,600,000 | 773,600,000 | 266,200,000 | ||||||
Income from Operations | 22,600,000 | 11,400,000 | 30,200,000 | 23,000,000 | 16,700,000 | 20,600,000 | 18,000,000 | (3,100,000) | |||||||||
Commercial and Industrial Systems | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Net Sales | 369,200,000 | 389,400,000 | 394,700,000 | 377,600,000 | 370,700,000 | 426,800,000 | 441,000,000 | 456,400,000 | $ 1,530,900,000 | 1,694,900,000 | 1,856,100,000 | ||||||
Income from Operations | $ 20,500,000 | $ 36,200,000 | $ 25,100,000 | $ 21,700,000 | $ (59,700,000) | $ 38,800,000 | $ 41,500,000 | $ 33,300,000 | |||||||||
Mastergear [Member] | Operating Expenses | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) from divestiture of business | $ 11,600,000 | ||||||||||||||||
Mastergear [Member] | Power Transmission Solutions | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Consideration for disposal | $ 24,600,000 | ||||||||||||||||
Venezuelan Subsidiary [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Proceeds from Disposal of Business | $ 1,000,000 | ||||||||||||||||
Deferred gain on disposal | $ 2,000,000 | ||||||||||||||||
Number of installments | installment | 24 | ||||||||||||||||
Venezuelan Subsidiary [Member] | Commercial and Industrial Systems | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Consideration for disposal | $ 3,000,000 | ||||||||||||||||
Jinling [Member] | Commercial and Industrial Systems | Operating Expenses | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) from divestiture of business | $ (1,900,000) | ||||||||||||||||
Unsecured Debt [Member] | Credit Agreement Effective January 2015 [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Debt term | 5 years | ||||||||||||||||
Principal amount | $ 1,250,000,000 | ||||||||||||||||
Elco Group B.V. [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Consideration transferred | $ 19,600,000 | ||||||||||||||||
Equity interest in acquiree | 55.00% | ||||||||||||||||
Equity interest in acquiree including subsequent acquisition | 100.00% | ||||||||||||||||
Power Transmission Solutions | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Consideration transferred | $ 1,408,900,000 | ||||||||||||||||
Goodwill, expected tax deductible percent | 65.00% | ||||||||||||||||
Net assets acquired | $ 1,408,900,000 | ||||||||||||||||
Net Sales | 512,900,000 | ||||||||||||||||
Income from Operations | 14,500,000 | ||||||||||||||||
Purchase accounting adjustments and transaction costs | $ 29,800,000 | ||||||||||||||||
Power Transmission Solutions | Level 3 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Net assets acquired | $ 1,408,900,000 | ||||||||||||||||
Benshaw, Inc. [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Net assets acquired | $ 51,000,000 | ||||||||||||||||
Consideration transferred, cash | $ 51,000,000 | ||||||||||||||||
Hy-Bon Engineering Company, Inc. [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Net assets acquired | $ 78,000,000 | ||||||||||||||||
Consideration transferred, cash | $ 78,000,000 |
Acquisitions and Divestitures50
Acquisitions and Divestitures (Schedule of Preliminary Purchase Price Allocation) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 30, 2015 | Jan. 03, 2015 | Jun. 30, 2014 | Feb. 07, 2014 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,453.2 | $ 1,465.6 | $ 1,004 | |||
Power Transmission Solutions | ||||||
Business Acquisition [Line Items] | ||||||
Current Assets | $ 22.5 | |||||
Trade Receivables | 67.2 | |||||
Inventories | 108.8 | |||||
Property, Plant and Equipment | 184.4 | |||||
Intangible Assets | 648.2 | |||||
Intangible Assets, Subject to Amortization | 526.3 | |||||
Goodwill | 564.3 | |||||
Total Assets Acquired | 1,595.4 | |||||
Accounts Payable | 57.2 | |||||
Current Liabilities Assumed | 32.3 | |||||
Long-Term Liabilities Assumed | 97 | |||||
Net Assets Acquired | $ 1,408.9 | |||||
Benshaw, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current Assets | $ 0.5 | |||||
Trade Receivables | 10.4 | |||||
Inventories | 22.4 | |||||
Property, Plant and Equipment | 4.5 | |||||
Intangible Assets, Subject to Amortization | 14.6 | |||||
Goodwill | 4.7 | |||||
Total Assets Acquired | 57.1 | |||||
Accounts Payable | 3.7 | |||||
Current Liabilities Assumed | 2.2 | |||||
Long-Term Liabilities Assumed | 0.2 | |||||
Net Assets Acquired | $ 51 | |||||
Hy-Bon Engineering Company, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current Assets | $ 1.7 | |||||
Trade Receivables | 11.5 | |||||
Inventories | 14.3 | |||||
Property, Plant and Equipment | 8.1 | |||||
Intangible Assets, Subject to Amortization | 13.4 | |||||
Goodwill | 40.6 | |||||
Other Assets | 0.1 | |||||
Total Assets Acquired | 89.7 | |||||
Accounts Payable | 5.5 | |||||
Current Liabilities Assumed | 5.1 | |||||
Long-Term Liabilities Assumed | 1.1 | |||||
Net Assets Acquired | $ 78 |
Acquisitions and Divestitures51
Acquisitions and Divestitures (Components of Intangible Assets Included as Part of Acquisition) (Details) - USD ($) $ in Millions | Jan. 30, 2015 | Dec. 31, 2016 |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Weighted Average Amortization Period (Years) | 15 years | |
Technology | ||
Business Acquisition [Line Items] | ||
Weighted Average Amortization Period (Years) | 11 years | |
Power Transmission Solutions | ||
Business Acquisition [Line Items] | ||
Weighted Average Amortization Period (Years) | 16 years 8 months 12 days | |
Gross Value | $ 526.3 | |
Intangible Assets | 648.2 | |
Power Transmission Solutions | Trademarks | ||
Business Acquisition [Line Items] | ||
Trade Names | $ 121.9 | |
Power Transmission Solutions | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Weighted Average Amortization Period (Years) | 17 years | |
Gross Value | $ 462.8 | |
Power Transmission Solutions | Technology | ||
Business Acquisition [Line Items] | ||
Weighted Average Amortization Period (Years) | 14 years 6 months | |
Gross Value | $ 63.5 |
Acquisitions and Divestitures52
Acquisitions and Divestitures (Schedule of Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Business Acquisition [Line Items] | |||||||||||
Basic Earnings Per Share as Reported (in dollars per shares) | $ 1.02 | $ 1.33 | $ 1.27 | $ 0.93 | $ (0.43) | $ 1.42 | $ 1.40 | $ 0.81 | $ 4.55 | $ 3.21 | $ 0.69 |
Diluted Earnings Per Share as Reported (in dollars per shares) | $ 1.01 | $ 1.32 | $ 1.26 | $ 0.93 | $ (0.43) | $ 1.41 | $ 1.39 | $ 0.81 | $ 4.52 | $ 3.18 | $ 0.69 |
Power Transmission Solutions | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Pro Forma Net Sales | $ 3,558.3 | $ 3,864.4 | |||||||||
Pro Forma Net Income Attributable to the Company | $ 174.8 | $ 63.1 | |||||||||
Basic Earnings Per Share as Reported (in dollars per shares) | $ 3.21 | $ 0.69 | |||||||||
Pro Forma Basic Earnings Per Share (in dollars per shares) | 3.91 | 1.40 | |||||||||
Diluted Earnings Per Share as Reported (in dollars per shares) | 3.18 | 0.69 | |||||||||
Pro Forma Diluted Earnings Per Share (in dollars per shares) | $ 3.88 | $ 1.39 | |||||||||
Benshaw, Hy-Bon, Cemp and RAM [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Pro Forma Net Sales | $ 3,291.2 | ||||||||||
Pro Forma Net Income Attributable to the Company | $ 28.8 | ||||||||||
Basic Earnings Per Share as Reported (in dollars per shares) | $ 0.69 | ||||||||||
Pro Forma Basic Earnings Per Share (in dollars per shares) | 0.64 | ||||||||||
Diluted Earnings Per Share as Reported (in dollars per shares) | 0.69 | ||||||||||
Pro Forma Diluted Earnings Per Share (in dollars per shares) | $ 0.64 |
Goodwill And Intangible Asset53
Goodwill And Intangible Assets (Schedule of Changes To Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 02, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 1,465.6 | $ 1,004 | ||
Acquisitions and Valuation Adjustments | (0.3) | 559.4 | ||
Less: Impairment Charges | $ 79.9 | 0 | 79.9 | $ 119.5 |
Translation Adjustments | (12.1) | (17.9) | ||
Goodwill, ending balance | 1,465.6 | 1,453.2 | 1,465.6 | 1,004 |
Cumulative Goodwill Impairment Charges | 275.7 | |||
Commercial and Industrial Systems | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 547.7 | 645.4 | ||
Acquisitions and Valuation Adjustments | 0 | (5.2) | ||
Less: Impairment Charges | 79.9 | |||
Translation Adjustments | (7.1) | (12.6) | ||
Goodwill, ending balance | 547.7 | 540.6 | 547.7 | 645.4 |
Cumulative Goodwill Impairment Charges | 244.8 | |||
Climate Solutions | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 342.8 | 344.6 | ||
Acquisitions and Valuation Adjustments | 0 | 0 | ||
Less: Impairment Charges | 0 | |||
Translation Adjustments | (1) | (1.8) | ||
Goodwill, ending balance | 342.8 | 341.8 | 342.8 | 344.6 |
Cumulative Goodwill Impairment Charges | 7.7 | |||
Power Transmission Solutions | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 575.1 | 14 | ||
Acquisitions and Valuation Adjustments | (0.3) | 564.6 | ||
Less: Impairment Charges | 0 | |||
Translation Adjustments | (4) | (3.5) | ||
Goodwill, ending balance | $ 575.1 | 570.8 | $ 575.1 | $ 14 |
Cumulative Goodwill Impairment Charges | $ 23.2 |
Goodwill And Intangible Asset54
Goodwill And Intangible Assets (Schedule of Gross Intangibles) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Acquisitions | $ 0 | |
Translation Adjustments | (7.8) | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Total Gross Intangibles | 1,070.8 | $ 1,078.6 |
Non-amortizable Trade Names | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Non-amortizable Trade Names, beginning of period | 121.3 | |
Non-amortizable Trade Names Acquired | 0 | |
Non-amortizable Trade Names, Translation Adjustments | (0.5) | |
Non-amortizable Trade Names, end of period | $ 120.8 | |
Customer Relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 15 years | |
Intangible assets, beginning of period | $ 709 | |
Acquisitions | 0 | |
Translation Adjustments | (5.4) | |
Intangible assets, end of period | $ 703.6 | |
Technology | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 11 years | |
Intangible assets, beginning of period | $ 191.1 | |
Acquisitions | 0 | |
Translation Adjustments | (1.4) | |
Intangible assets, end of period | $ 189.7 | |
Trademarks | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 12 years | |
Intangible assets, beginning of period | $ 32.1 | |
Acquisitions | 0 | |
Translation Adjustments | (0.3) | |
Intangible assets, end of period | $ 31.8 | |
Patent and Engineering Drawings | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 5 years | |
Intangible assets, beginning of period | $ 16.6 | |
Acquisitions | 0 | |
Translation Adjustments | 0 | |
Intangible assets, end of period | $ 16.6 | |
Non-compete Agreements | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 5 years | |
Intangible assets, beginning of period | $ 8.5 | |
Acquisitions | 0 | |
Translation Adjustments | (0.2) | |
Intangible assets, end of period | 8.3 | |
Finite-Lived Intangible Assets [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets, beginning of period | 957.3 | |
Acquisitions | 0 | |
Translation Adjustments | (7.3) | |
Intangible assets, end of period | $ 950 |
Goodwill And Intangible Asset55
Goodwill And Intangible Assets (Schedule of Accumulated Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | $ 300.8 | ||
Amortization | 62 | $ 63.9 | $ 46.7 |
Translation Adjustments | (3.7) | ||
Accumulated Amortization, Ending balance | 359.1 | 300.8 | |
Intangible Assets, Net of Amortization, Beginning balance | 777.8 | ||
Intangible Assets, Net of Amortization, Ending balance | 711.7 | 777.8 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 161.4 | ||
Amortization | 42.6 | ||
Translation Adjustments | (2.4) | ||
Accumulated Amortization, Ending balance | 201.6 | 161.4 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 92.9 | ||
Amortization | 17.4 | ||
Translation Adjustments | (0.8) | ||
Accumulated Amortization, Ending balance | 109.5 | 92.9 | |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 21.8 | ||
Amortization | 1.9 | ||
Translation Adjustments | (0.4) | ||
Accumulated Amortization, Ending balance | 23.3 | 21.8 | |
Patent and Engineering Drawings | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 16.6 | ||
Amortization | 0 | ||
Translation Adjustments | 0 | ||
Accumulated Amortization, Ending balance | 16.6 | 16.6 | |
Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 8.1 | ||
Amortization | 0.1 | ||
Translation Adjustments | (0.1) | ||
Accumulated Amortization, Ending balance | $ 8.1 | $ 8.1 |
Goodwill And Intangible Asset56
Goodwill And Intangible Assets (Schedule of Estimated Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 62 | $ 63.9 | $ 46.7 |
2,017 | 55 | ||
2,018 | 53 | ||
2,019 | 52.6 | ||
2,020 | 49.5 | ||
2,021 | $ 41.9 |
Segment Information (Schedule o
Segment Information (Schedule of Financial Information Attributable To The Reporting Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 758.1 | $ 809.6 | $ 838.6 | $ 818.2 | $ 773.5 | $ 882.3 | $ 942.2 | $ 911.7 | $ 3,224.5 | $ 3,509.7 | $ 3,257.1 |
Gross Profit | 193.2 | 231.7 | 222.9 | 217.4 | 219.8 | 241.1 | 251.4 | 220.9 | 865.2 | 933.2 | 797.3 |
Operating Expenses | 544.6 | 600.5 | 516.3 | ||||||||
Goodwill Impairment | 79.9 | 0 | 79.9 | 119.5 | |||||||
Asset Impairments | 0 | 0 | 40 | ||||||||
Income from Operations | 70.1 | 89.8 | 91.4 | 69.3 | (14.1) | 100.1 | 103.2 | 63.6 | 320.6 | 252.8 | 121.5 |
Depreciation and Amortization | 155.4 | 159.4 | 138.7 | ||||||||
Capital Expenditures | 65.2 | 92.2 | 83.6 | ||||||||
Identifiable Assets | 4,358.5 | 4,591.7 | 4,358.5 | 4,591.7 | 3,357.2 | ||||||
Commercial and Industrial Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 369.2 | 389.4 | 394.7 | 377.6 | 370.7 | 426.8 | 441 | 456.4 | 1,530.9 | 1,694.9 | 1,856.1 |
Goodwill Impairment | 79.9 | ||||||||||
Asset Impairments | 0 | ||||||||||
Income from Operations | 20.5 | 36.2 | 25.1 | 21.7 | (59.7) | 38.8 | 41.5 | 33.3 | |||
Climate Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 215.2 | 250.5 | 254.5 | 239.8 | 210.3 | 264.4 | 286.1 | 280.4 | 960 | 1,041.2 | 1,134.8 |
Goodwill Impairment | 0 | ||||||||||
Asset Impairments | 13.8 | ||||||||||
Income from Operations | 27 | 42.2 | 36.1 | 24.6 | 28.9 | 40.7 | 43.7 | 33.4 | |||
Power Transmission Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 173.7 | 169.7 | 189.4 | 200.8 | 192.5 | 191.1 | 215.1 | 174.9 | 733.6 | 773.6 | 266.2 |
Goodwill Impairment | 0 | ||||||||||
Asset Impairments | 26.2 | ||||||||||
Income from Operations | 22.6 | $ 11.4 | $ 30.2 | $ 23 | 16.7 | $ 20.6 | $ 18 | $ (3.1) | |||
Operating Segments [Member] | Commercial and Industrial Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,580.1 | 1,766.1 | 1,934.3 | ||||||||
Gross Profit | 379.2 | 441.1 | 468.2 | ||||||||
Operating Expenses | 275.7 | 307.2 | 333.9 | ||||||||
Goodwill Impairment | 79.9 | 100.7 | |||||||||
Asset Impairments | 0 | ||||||||||
Income from Operations | 103.5 | 54 | 33.6 | ||||||||
Depreciation and Amortization | 74.7 | 77.5 | 81.5 | ||||||||
Capital Expenditures | 36.6 | 52.3 | 59.6 | ||||||||
Identifiable Assets | 1,872.7 | 1,959.5 | 1,872.7 | 1,959.5 | 2,371.7 | ||||||
Operating Segments [Member] | Climate Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 984.1 | 1,065.3 | 1,154 | ||||||||
Gross Profit | 245.1 | 262.2 | 258.8 | ||||||||
Operating Expenses | 115.2 | 115.6 | 137.7 | ||||||||
Goodwill Impairment | 0 | 7.7 | |||||||||
Asset Impairments | 13.8 | ||||||||||
Income from Operations | 129.9 | 146.6 | 99.6 | ||||||||
Depreciation and Amortization | 24.4 | 28.6 | 45 | ||||||||
Capital Expenditures | 15 | 18.5 | 16.8 | ||||||||
Identifiable Assets | 881.8 | 937.2 | 881.8 | 937.2 | 842.6 | ||||||
Operating Segments [Member] | Power Transmission Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 737.9 | 777.6 | 271.3 | ||||||||
Gross Profit | 240.9 | 229.9 | 70.3 | ||||||||
Operating Expenses | 153.7 | 177.7 | 44.7 | ||||||||
Goodwill Impairment | 0 | 11.1 | |||||||||
Asset Impairments | 26.2 | ||||||||||
Income from Operations | 87.2 | 52.2 | (11.7) | ||||||||
Depreciation and Amortization | 56.3 | 53.3 | 12.2 | ||||||||
Capital Expenditures | 13.6 | 21.4 | 7.2 | ||||||||
Identifiable Assets | 1,604 | 1,695 | 1,604 | 1,695 | 142.9 | ||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | (77.6) | (99.3) | (102.5) | ||||||||
Gross Profit | 0 | 0 | 0 | ||||||||
Operating Expenses | 0 | 0 | 0 | ||||||||
Goodwill Impairment | 0 | 0 | |||||||||
Asset Impairments | 0 | ||||||||||
Income from Operations | 0 | 0 | 0 | ||||||||
Depreciation and Amortization | 0 | 0 | 0 | ||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||
Identifiable Assets | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Intersegment Eliminations [Member] | Commercial and Industrial Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 49.2 | 71.2 | 78.2 | ||||||||
Intersegment Eliminations [Member] | Climate Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 24.1 | 24.1 | 19.2 | ||||||||
Intersegment Eliminations [Member] | Power Transmission Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 4.3 | $ 4 | $ 5.1 |
Industry Segment Information (S
Industry Segment Information (Schedule Of Financial Information Attributable To Geographic Regions) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 758.1 | $ 809.6 | $ 838.6 | $ 818.2 | $ 773.5 | $ 882.3 | $ 942.2 | $ 911.7 | $ 3,224.5 | $ 3,509.7 | $ 3,257.1 |
Long-Lived Assets | 627.5 | 678.5 | 627.5 | 678.5 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,212.6 | 2,374.3 | 2,359.3 | ||||||||
Long-Lived Assets | 290.3 | 339.8 | 290.3 | 339.8 | |||||||
Mexico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-Lived Assets | 120.2 | 114.6 | 120.2 | 114.6 | |||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-Lived Assets | 99.6 | 107.9 | 99.6 | 107.9 | |||||||
Rest of the World | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,011.9 | 1,135.4 | $ 897.8 | ||||||||
Long-Lived Assets | $ 117.4 | $ 116.2 | $ 117.4 | $ 116.2 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | United States | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 68.60% | 67.60% | 72.40% |
Debt And Bank Credit Faciliti60
Debt And Bank Credit Facilities (Schedule Of Indebtedness) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,421.2 | |
Less: Debt Issuance Costs | (9.7) | $ (14.7) |
Long-term debt, Total | 1,411.5 | 1,721.9 |
Less: Current Maturities | 100.6 | 6.3 |
Non-Current Portion | 1,310.9 | 1,715.6 |
Term Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 798.1 | 1,118.1 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 600 | 600 |
Multicurrency Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 18 | 3 |
Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 5.1 | $ 15.5 |
Debt And Bank Credit Faciliti61
Debt And Bank Credit Facilities (Narrative) (Details) | Jan. 30, 2015USD ($) | Jun. 30, 2011USD ($) | Dec. 31, 2016USD ($)tranche | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Senior Notes | $ 600,000,000 | ||||
Long-term Debt | 1,411,500,000 | $ 1,721,900,000 | |||
Fair value of debt | 1,433,400,000 | 1,758,200,000 | |||
Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 100,000,000 | ||||
Notes Payable, Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Other notes payable amount outstanding | $ 5,100,000 | $ 15,500,000 | |||
Weighted average interest rate of other notes payable | 5.60% | 2.50% | |||
Multicurrency Revolving Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 500,000,000 | ||||
Debt term | 5 years | ||||
Term Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 1,250,000,000 | ||||
Facility average interest rate | 2.30% | 1.80% | |||
Debt term | 5 years | ||||
Amortization rate per annum | 5.00% | ||||
Amortization rate per annum, after 2 years | 7.50% | ||||
Amortization rate per annum, last 2 years | 10.00% | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 600,000,000 | ||||
Senior Notes [Member] | 2011 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 500,000,000 | ||||
Number of tranches | tranche | 7 | ||||
Senior Notes [Member] | 2011 Notes [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt term | 7 years | ||||
Senior Notes [Member] | 2011 Notes [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt term | 12 years | ||||
Senior Notes [Member] | 2007 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 100,000,000 | ||||
Line of Credit [Member] | Credit Agreement Effective June 2011 [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 100,000,000 | ||||
Line of Credit [Member] | Credit Agreement Effective June 2011 [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 500,000,000 | ||||
Average balance outstanding under the Facility | $ 20,300,000 | ||||
Facility average interest rate | 1.40% | ||||
Long-term Debt | $ 17,000,000 | ||||
Debt term | 5 years | ||||
Line of Credit [Member] | Multicurrency Revolving Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | 18,000,000 | ||||
Average balance outstanding under the Facility | $ 21,000,000 | $ 48,200,000 | |||
Facility average interest rate | 2.20% | 1.90% | |||
Available borrowing capacity under the Facility | $ 449,900,000 | ||||
Line of Credit [Member] | Multicurrency Revolving Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 32,100,000 |
Debt And Bank Credit Faciliti62
Debt And Bank Credit Facilities (Details Of The Senior Notes) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Debt Instrument [Line Items] | ||
Senior Notes | $ 600 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 600 | |
Senior Notes [Member] | Floating Rate Series 2007A Mature In August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 100 | |
Spread on variable interest rate | 1.60% | 1.10% |
Senior Notes [Member] | Fixed Rate Series 2011A Mature In July 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 100 | |
Debt instrument interest rate | 4.10% | |
Senior Notes [Member] | Fixed Rate Series 2011A Mature In July 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 230 | |
Stated rate, minimum | 4.80% | |
Stated rate, maximum | 5.00% | |
Senior Notes [Member] | Fixed Rate Series 2011A Mature In July 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 170 | |
Stated rate, minimum | 4.90% | |
Stated rate, maximum | 5.10% |
Debt And Bank Credit Faciliti63
Debt And Bank Credit Facilities (Maturities Of Long-Term Debt) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 100.6 |
2,018 | 118.3 |
2,019 | 17.2 |
2,020 | 781.6 |
2,021 | 230.3 |
Thereafter | 173.2 |
Long-term debt, Total | $ 1,421.2 |
Retirement and Post Retiremen64
Retirement and Post Retirement Health Care Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Contributions | $ 9,200,000 | $ 4,700,000 | |
Retirement plan, reduction of expense | $ 2,900,000 | ||
Defined benefit plan compensation increase assumption | 3.00% | 3.00% | |
Expected contribution to defined benefit pension plans | $ 3,300,000 | ||
Accumulated benefit obligation | $ 232,900,000 | $ 226,900,000 | |
Discount Rate | 4.30% | 4.60% | |
United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Contributions | $ 8,700,000 | $ 9,900,000 | $ 8,800,000 |
Foreign Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Contributions | 10,400,000 | 9,200,000 | $ 12,600,000 |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Contributions | 9,200,000 | $ 4,700,000 | |
Future amortization of prior service cost | 200,000 | ||
Amount to be amortized | 2,200,000 | ||
Postretirement Health Coverage [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer Contributions | 1,200,000 | ||
Future amortization of prior service cost | 100,000 | ||
Amount to be amortized | 0 | ||
Expected contribution to defined benefit pension plans | $ 1,100,000 | ||
Discount Rate | 3.90% | ||
Health care cost trend rate, 2025 | 4.50% | ||
Effect of percentage point change in health care cost trend rate | $ 400,000 | ||
Minimum [Member] | Postretirement Health Coverage [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Health care cost trend rate, 2017 | 7.00% | ||
Maximum [Member] | Postretirement Health Coverage [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Health care cost trend rate, 2017 | 5.40% |
Retirement and Post Retiremen65
Retirement and Post Retirement Health Care Plans (Schedule Of Defined Benefit Pension Assets Investment) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Equity investments, Target Allocation | 100.00% | |
Target Return | 7.00% | |
Equity investments, Actual Allocation | 100.00% | 100.00% |
Equity Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity investments, Target Allocation | 76.00% | |
Equity investments, Target Return minimum | 6.30% | |
Equity investments, Target Return maximum | 7.50% | |
Equity investments, Actual Allocation | 70.00% | 70.00% |
Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity investments, Target Allocation | 19.00% | |
Fixed income, Target Return minimum | 3.60% | |
Fixed income, Target Return maximum | 4.50% | |
Equity investments, Actual Allocation | 25.00% | 26.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity investments, Target Allocation | 5.00% | |
Target Return | 5.40% | |
Equity investments, Actual Allocation | 5.00% | 4.00% |
Retirement and Post Retiremen66
Retirement and Post Retirement Health Care Plans (Schedule Of Reconciliation Of Funded Status Of The Defined Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Change in Fair Value of Plan Assets: | |||
Fair Value of Plan Assets at Beginning of Period | $ 162.1 | ||
Employer Contributions | 9.2 | $ 4.7 | |
Fair Value of Plan Assets at End of Period | 160.3 | 162.1 | |
Pension Plan [Member] | |||
Change in Projected Benefit Obligation: | |||
Obligation at Beginning of Period | 255.1 | 194.3 | |
Service Cost | 8.1 | 10 | $ 2.5 |
Interest Cost | 9.8 | 10.7 | 8.3 |
Actuarial (Gain) Loss | 3.6 | (18.2) | |
Less: Benefits Paid | 18.9 | 11.7 | |
Foreign Currency Translation | (0.8) | (0.8) | |
Acquisitions | 0 | 70.8 | |
Obligation at End of Period: | 256.9 | 255.1 | 194.3 |
Change in Fair Value of Plan Assets: | |||
Fair Value of Plan Assets at Beginning of Period | 162.1 | 126.6 | |
Actual Return on Plan Assets | 7.9 | (1) | |
Employer Contributions | 9.2 | 4.7 | |
Less: Benefits Paid | 18.9 | 11.7 | |
Foreign Currency Translation | 0 | (0.4) | |
Acquisitions | 0 | 43.9 | |
Fair Value of Plan Assets at End of Period | 160.3 | 162.1 | 126.6 |
Funded Status | (96.6) | (93) | |
Postretirement Health Coverage [Member] | |||
Change in Projected Benefit Obligation: | |||
Obligation at Beginning of Period | 16.8 | 0 | |
Service Cost | 0.1 | 0.1 | |
Interest Cost | 0.5 | 0.5 | |
Actuarial (Gain) Loss | (2.4) | 2.9 | |
Participant Contributions | 0.2 | 0.6 | |
Less: Benefits Paid | 1.4 | 3.1 | |
Acquisitions | 0 | 15.8 | |
Obligation at End of Period: | 13.8 | $ 16.8 | $ 0 |
Change in Fair Value of Plan Assets: | |||
Employer Contributions | $ 1.2 |
Retirement and Post Retiremen67
Retirement and Post Retirement Health Care Plans (Schedule Of Fair Value Of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 160.3 | $ 162.1 | |
Investments measured at net asset value | 51.5 | 50.2 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 98.8 | 103.8 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 10 | 8.1 | $ 6.2 |
Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 4.5 | ||
Cash And Cash Equivalents [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3.5 | 4.5 | |
Cash And Cash Equivalents [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Cash And Cash Equivalents [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Domestic Equities [Member] | Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 24.9 | ||
Domestic Equities [Member] | Common Stock [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 22.9 | 24.9 | |
Domestic Equities [Member] | Common Stock [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Domestic Equities [Member] | Common Stock [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
International Equities [Member] | Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 9.6 | ||
International Equities [Member] | Common Stock [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 12.6 | 9.6 | |
International Equities [Member] | Common Stock [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
International Equities [Member] | Common Stock [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Fixed Income | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 15 | ||
Fixed Income | Mutual Funds [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 15.1 | 15 | |
Fixed Income | Mutual Funds [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Fixed Income | Mutual Funds [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
U.S. Equity Funds [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 22.3 | ||
U.S. Equity Funds [Member] | Mutual Funds [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 18.8 | 22.3 | |
U.S. Equity Funds [Member] | Mutual Funds [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
U.S. Equity Funds [Member] | Mutual Funds [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Balanced Funds [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 9.7 | ||
Balanced Funds [Member] | Mutual Funds [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8.4 | 9.7 | |
Balanced Funds [Member] | Mutual Funds [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Balanced Funds [Member] | Mutual Funds [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
International Equity Funds [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 16.8 | ||
International Equity Funds [Member] | Mutual Funds [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 16.2 | 16.8 | |
International Equity Funds [Member] | Mutual Funds [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
International Equity Funds [Member] | Mutual Funds [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other Plan Asset Category [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1 | ||
Other Plan Asset Category [Member] | Mutual Funds [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1.3 | 1 | |
Other Plan Asset Category [Member] | Mutual Funds [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other Plan Asset Category [Member] | Mutual Funds [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Real Estate Investment [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8.1 | ||
Real Estate Investment [Member] | Mutual Funds [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Real Estate Investment [Member] | Mutual Funds [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Real Estate Investment [Member] | Mutual Funds [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 10 | 8.1 | |
Common Collective Trust Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at net asset value | 45.1 | 43.8 | |
Global Emerging Markets Fund Limited Partnership [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at net asset value | 6.4 | 6.4 | |
Estimate of Fair Value [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 108.8 | $ 111.9 | |
Estimate of Fair Value [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3.5 | ||
Estimate of Fair Value [Member] | Domestic Equities [Member] | Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 22.9 | ||
Estimate of Fair Value [Member] | International Equities [Member] | Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 12.6 | ||
Estimate of Fair Value [Member] | Fixed Income | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 15.1 | ||
Estimate of Fair Value [Member] | U.S. Equity Funds [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 18.8 | ||
Estimate of Fair Value [Member] | Balanced Funds [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8.4 | ||
Estimate of Fair Value [Member] | International Equity Funds [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 16.2 | ||
Estimate of Fair Value [Member] | Other Plan Asset Category [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1.3 | ||
Estimate of Fair Value [Member] | Real Estate Investment [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 10 |
Retirement and Post Retiremen68
Retirement and Post Retirement Health Care Plans (Level 3 Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Change in Fair Value of Plan Assets: | ||
Fair Value of Plan Assets at Beginning of Period | $ 162.1 | |
Fair Value of Plan Assets at End of Period | 160.3 | $ 162.1 |
Level 3 | ||
Change in Fair Value of Plan Assets: | ||
Fair Value of Plan Assets at Beginning of Period | 8.1 | 6.2 |
Acquisition | 0 | 1 |
Net Purchases | 1.7 | 0.2 |
Net Gains | 0.2 | 0.7 |
Fair Value of Plan Assets at End of Period | 10 | 8.1 |
Real Estate [Member] | ||
Change in Fair Value of Plan Assets: | ||
Fair Value | $ 10 | $ 8.1 |
Minimum [Member] | Level 3 | ||
Change in Fair Value of Plan Assets: | ||
Fair Value Inputs, Exit Capitalization Rate | 4.90% | 4.90% |
Fair Value Inputs, Discount Rate | 6.60% | 6.60% |
Maximum [Member] | Level 3 | ||
Change in Fair Value of Plan Assets: | ||
Fair Value Inputs, Exit Capitalization Rate | 7.00% | 7.00% |
Fair Value Inputs, Discount Rate | 8.00% | 8.30% |
Retirement and Post Retiremen69
Retirement and Post Retirement Health Care Plans (Schedule Of Amounts Recognized in Balance Sheet of Defined Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Pension Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Accrued Compensation and Employee Benefits | $ 2.8 | $ 2.7 |
Pension and Other Post Retirement Benefits | 93.8 | 90.3 |
Pension plan balance sheet total | 96.6 | 93 |
Net Actuarial Loss | 54.5 | 51.1 |
Prior Service Cost | 1.2 | 1.2 |
Amounts Recognized in Accumulated Other Comprehensive Loss | 55.7 | 52.3 |
Postretirement Health Coverage [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Accrued Compensation and Employee Benefits | 1.1 | 1.2 |
Pension and Other Post Retirement Benefits | 12.7 | 15.6 |
Pension plan balance sheet total | 13.8 | 16.8 |
Net Actuarial Loss | $ 0.4 | $ 2.9 |
Retirement and Post Retiremen70
Retirement and Post Retirement Health Care Plans (Schedule Of Weighted-Average Assumptions Used To Determine Projected Benefit Obligation) (Details) | Dec. 31, 2016 | Jan. 02, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 4.30% | 4.60% |
Retirement and Post Retiremen71
Retirement and Post Retirement Health Care Plans (Schedule Of Assumptions Used To Determine Net Periodic Pension Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 4.60% | 4.20% | 5.00% |
Defined benefit plan compensation increase assumption | 3.00% | 3.00% | |
Expected Long-Term Rate of Return on Assets | 7.20% | 7.50% | 8.00% |
Retirement and Post Retiremen72
Retirement and Post Retirement Health Care Plans (Schedule of Net Periodic Benefit Costs and Benefit Payments Expected Future Service) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | $ 8.1 | $ 10 | $ 2.5 |
Interest Cost | 9.8 | 10.7 | 8.3 |
Expected Return on Plan Assets | (11.9) | (11.5) | (9.2) |
Amortization of Net Actuarial Loss | 3.1 | 4.3 | 2.3 |
Amortization of Prior Service Cost | 0.2 | 0.2 | 0.2 |
Net Periodic Benefit Cost | 9.3 | 13.7 | 4.1 |
Prior Service Cost | 0.1 | 0.1 | 0.1 |
Net Actuarial Loss | 2 | 2.8 | 1.3 |
Total Recognized in OCI | 2.1 | 2.9 | $ 1.4 |
2,017 | 13.6 | ||
2,018 | 13.2 | ||
2,019 | 14 | ||
2,020 | 14.6 | ||
2,021 | 15.7 | ||
2022-2025 | 83.5 | ||
Postretirement Health Coverage [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 0.1 | 0.1 | |
Interest Cost | 0.5 | 0.5 | |
Amortization of Net Actuarial Loss | 0.2 | 0 | |
Net Periodic Benefit Cost | 0.8 | $ 0.6 | |
2,017 | 1.1 | ||
2,018 | 1.2 | ||
2,019 | 1.3 | ||
2,020 | 1.3 | ||
2,021 | 1.3 | ||
2022-2025 | $ 5.5 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Treasury Stock, Shares, Acquired | 180,000 | 500,000 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 66.56 | $ 69.94 | |||
Payments for Repurchase of Common Stock | $ 12 | $ 35 | $ 0 | $ 12 | $ 35 |
Number of shares approved to be repurchased | 3,000,000 | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,300,000 | ||||
Share-Based Compensation Expense | $ 13.3 | 13.9 | 11.9 | ||
Income tax benefit recognized for share-based compensation | 5.1 | 5.3 | 4.5 | ||
Fair value of shares and options vested | 11.3 | 10.9 | $ 11.1 | ||
Unrecognized compensation cost related to share-based compensation | $ 24.2 | ||||
Vesting period, minimum | 5 years | ||||
Share-based compensation expected to recognize over a weighted average period, years | 2 years 18 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Options and SAR's [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 4.2 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $ 9.8 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 3 years 3 months 12 days | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 1.1 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $ 0.4 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 5 months 2 days | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 5.6 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $ 9.2 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 1 year 7 months 30 days | ||||
Performance Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 2.4 | $ 1.8 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $ 4.8 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 2 years 3 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Award Performance Period | 3 years | ||||
Performance Share Units [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Shares Term, Potential Payout as a Percentage of Target | 0.00% | ||||
Performance Share Units [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Shares Term, Potential Payout as a Percentage of Target | 200.00% | ||||
Common Stock [Member] | 2013 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized shares of common stock (in shares) | 3,500,000 | ||||
Share available for future grant or payment under the various plans (in shares) | 1,400,000 |
Shareholders' Equity (Assumptio
Shareholders' Equity (Assumptions Used in Black Scholes valuation for Options and SAR's) (Details) - Options and SAR's [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Per Share Weighted Average Fair Value of Grants (in dollars per share) | $ 15.22 | $ 27.15 | $ 28.01 |
Risk-Free Interest Rate | 1.40% | 1.90% | 2.00% |
Expected Life (Years) | 7 years | 7 years | 7 years |
Expected Volatility | 29.60% | 35.60% | 37.70% |
Expected Dividend Yield | 1.70% | 1.20% | 1.20% |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule Of Share-Based Incentive Plan Grant Activity) (Details) - Options and SAR's [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Share-based incentive plan grant activity | ||
Options Shares Outstanding, Beginning Balance (in shares) | 1,548,266 | |
Option Shares, Granted (in shares) | 293,400 | |
Options Shares, Exercised (in shares) | (137,475) | |
Option Shares, Forfeited (in shares) | (34,887) | |
Option Shares, Expired (in shares) | (58,805) | |
Options Shares Outstanding, Ending Balance (in shares) | 1,610,499 | 1,548,266 |
Options Shares, Exercisable, Ending Balance (in shares) | 952,766 | |
Options Weighted Average Exercise Price. Beginning Balance (in dollars per share) | $ 63.09 | |
Options Weighted Average Exercise Price, Granted (in dollars per share) | 57.43 | |
Options Weighted Average Exercise Price, Exercised (in dollars per share) | 45.60 | |
Options Weighted Average Exercise Price, Forfeited (in dollars per share) | 71.91 | |
Options Weighted Average Exercise Price, Expired (in dollars per share) | 68.56 | |
Options Weighted Average Exercise Price, Ending Balance (in dollars per share) | 63.16 | $ 63.09 |
Options Weighted Average Exercise Price at End of Period (in dollars per share) | $ 60.77 | |
Options Outstanding Weighted Average Remaining Contractual Terms (years) | 5 years 9 months 20 days | |
Options Exercisable Weighted Average Remaining Contractual Term (years) | 4 years 10 days | |
Options Outstanding Aggregate Intrinsic Value | $ 12.9 | |
Options Exercisable Aggregate Intrinsic Value | $ 9.2 |
Shareholders' Equity (Schedul76
Shareholders' Equity (Schedule Of Share-Based Compensation Activity) (Details) - Options and SAR's [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of share-based incentive awards exercised | $ 2.5 | $ 4.3 | $ 5.2 |
Cash received from stock option exercises | 0.5 | 4.1 | 1.9 |
Income tax benefit from the exercise of stock options | 0 | 1.6 | 2 |
Total fair value of share-based incentive awards vested | $ 4.9 | $ 4.9 | $ 5.5 |
Shareholders' Equity (Other tha
Shareholders' Equity (Other than Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested Shares, Beginning Balance (in shares) | 14,400 | ||
Granted, Shares (in shares) | 19,593 | ||
Vested, Shares (in shares) | (14,400) | ||
Unvested Shares, Ending Balance (in shares) | 19,593 | 14,400 | |
Wtd. Avg. Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 78.15 | ||
Granted, Wtd. Avg. Share Fair Value (in dollars per share) | 57.43 | $ 78.15 | $ 75.76 |
Vested, Wtd. Avg. Share Fair Value (in dollars per share) | 78.15 | ||
Wtd. Avg. Grant Date Fair Value, Ending Balance (in dollars per share) | $ 57.43 | $ 78.15 | |
Weighted Average Remaining Contractual Term | 5 months 2 days | 4 months 18 days | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested Shares, Beginning Balance (in shares) | 268,655 | ||
Granted, Shares (in shares) | 105,648 | ||
Vested, Shares (in shares) | (81,085) | ||
Forfeited, Shares (in shares) | (15,355) | ||
Unvested Shares, Ending Balance (in shares) | 277,863 | 268,655 | |
Wtd. Avg. Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 72.91 | ||
Granted, Wtd. Avg. Share Fair Value (in dollars per share) | 57.50 | $ 77.38 | 74.77 |
Vested, Wtd. Avg. Share Fair Value (in dollars per share) | 65.23 | ||
Forfeited, Wtd. Avg. Share Fair Value (in dollars per share) | 74.18 | ||
Wtd. Avg. Grant Date Fair Value, Ending Balance (in dollars per share) | $ 69.23 | $ 72.91 | |
Weighted Average Remaining Contractual Term | 1 year 8 months | 1 year 9 months 24 days | |
Performance Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested Shares, Beginning Balance (in shares) | 87,895 | ||
Granted, Shares (in shares) | 83,605 | ||
Forfeited, Shares (in shares) | (38,160) | ||
Unvested Shares, Ending Balance (in shares) | 133,340 | 87,895 | |
Wtd. Avg. Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 75.81 | ||
Granted, Wtd. Avg. Share Fair Value (in dollars per share) | 51.84 | $ 89.98 | $ 83.74 |
Forfeited, Wtd. Avg. Share Fair Value (in dollars per share) | 60.10 | ||
Wtd. Avg. Grant Date Fair Value, Ending Balance (in dollars per share) | $ 65.28 | $ 75.81 | |
Weighted Average Remaining Contractual Term | 2 years 2 days | 1 year 10 months 23 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax liabilities | $ (75.3) | $ (82.3) | |
Deferred tax benefit, noncurrent | 22.4 | 18.6 | |
Deferred tax liabilities, net, noncurrent | (97.7) | (100.9) | |
Unrecognized tax benefits which would impact the effective income tax rate | 10 | ||
Unrecognized tax benefits, recognized interest expense | 0.2 | 0.6 | $ (0.2) |
Unrecognized tax benefits, accrued interest | 1.9 | 1.7 | $ 1.1 |
Unrecognized tax benefits including accrued that could change in coming year | 0.3 | ||
Net operating losses | $ 12.4 | $ 14.4 | |
Tax effected net operating losses, expiration period | 15 years | 15 years | |
Change in valuation allowance | $ 6.8 | $ 8.2 | |
Income tax holiday, amount of decrease in provision for income taxes | 2.2 | ||
Deferred tax liability not recorded related to undistributed earnings of foreign subsidiaries | 130.5 | ||
Undistributed earnings of foreign subsidiaries | $ 721.9 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 143.4 | $ 25.8 | $ (11.2) |
Foreign | 123 | 171.1 | 101.5 |
Income before Taxes | $ 266.4 | $ 196.9 | $ 90.3 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Current | |||
Federal | $ 23.1 | $ 13.5 | $ 37.8 |
State | 3.5 | 0.2 | 1.5 |
Foreign | 30.4 | 45.1 | 41.3 |
Total | 57 | 58.8 | 80.6 |
Deferred | |||
Federal | 5.6 | (2) | (21.2) |
State | 1.8 | (0.9) | (2) |
Foreign | (7.3) | (7.5) | (3.2) |
Total | 0.1 | (10.4) | (26.4) |
Total | $ 57.1 | $ 48.4 | $ 54.2 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of The Statutory Federal Income Tax Rate and The Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Taxes [Line Items] | |||
Federal Statutory Rate | 35.00% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Benefit | 1.50% | (0.20%) | (0.40%) |
Domestic Production Activities Deduction | (1.10%) | (1.00%) | (2.70%) |
Foreign Rate Differential | (6.00%) | (7.20%) | (4.80%) |
Research and Development Credit | (2.30%) | (4.10%) | (7.40%) |
Goodwill Impairment | 0.00% | 4.00% | 42.90% |
Valuation Allowance | 0.00% | 0.00% | 4.20% |
Adjustments to Tax Accruals and Reserves | 0.70% | 2.10% | 2.40% |
Write Down of Venezuelan Assets | 0.00% | 2.30% | 0.00% |
Other | (4.40%) | (3.00%) | (1.50%) |
Effective Tax Rate | 21.40% | 24.60% | 60.00% |
China | |||
Income Taxes [Line Items] | |||
Foreign Rate Differential | (2.00%) | (3.30%) | (7.70%) |
Income Taxes (Components of Net
Income Taxes (Components of Net Deferred Tax Asset (Liability)) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Income Tax Disclosure [Abstract] | ||
Accrued Employee Benefits | $ 75.1 | $ 72.9 |
Bad Debt Allowances | 2.7 | 4.9 |
Warranty Accruals | 5.5 | 4.9 |
Inventory | 21.3 | 22.5 |
Accrued Liabilities | 9.2 | 7.4 |
Derivative Instruments | 25.9 | 30.3 |
Tax Loss Carryforward | 12.4 | 14.4 |
Valuation Allowance | (6.8) | (8.2) |
Other | 5 | 4.7 |
Deferred Tax Assets | 150.3 | 153.8 |
Property Related | (31.4) | (46.1) |
Intangible Items | (194.2) | (190) |
Deferred Tax Liabilities | (225.6) | (236.1) |
Deferred Tax Liabilities | $ (75.3) | $ (82.3) |
Income Taxes (Reconciliation 83
Income Taxes (Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits - Beginning of Year | $ 8.3 | $ 5.8 | $ 4.4 |
Unrecognized Tax Benefits, December 28, 2013 | 0 | 0 | 0.1 |
Gross Increases from Current Period Tax Positions | 2 | 4 | 3.6 |
Settlements with Taxing Authorities | 0 | (1.3) | (2.1) |
Lapse of Statute of Limitations | (0.3) | (0.2) | (0.2) |
Unrecognized Tax Benefits - End of Year | $ 10 | $ 8.3 | $ 5.8 |
Contingencies and Commitments84
Contingencies and Commitments (Schedule Of Changes In Accrued Warranty Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning Balance | $ 19.1 | $ 19.3 |
Less: Payments | 20.6 | 21.5 |
Provisions | 21.9 | 20.5 |
Acquisitions | 0 | 0.8 |
Translation Adjustments | (0.1) | 0 |
Ending Balance | $ 20.3 | $ 19.1 |
Leases And Rental Commitments85
Leases And Rental Commitments (Future Minimum Rental Commitments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Leases, Operating [Abstract] | |||
2,017 | $ 19.4 | ||
2,018 | 10.8 | ||
2,019 | 5.9 | ||
2,020 | 3.7 | ||
2,021 | 3.4 | ||
Thereafter | 4.8 | ||
Rental expenses charged to operations | $ 31.9 | $ 45.1 | $ 38.3 |
Derivative Financial Instrume86
Derivative Financial Instruments (Schedule Of Fair Values Of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 10.1 | $ 6.4 |
Prepaid Expenses and Other Current Assets [Member] | Interest Rate Swaps [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Prepaid Expenses and Other Current Assets [Member] | Currency Swap [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1.3 | 0.7 |
Prepaid Expenses and Other Current Assets [Member] | Currency Swap [Member] | Not Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1.5 | 0.5 |
Prepaid Expenses and Other Current Assets [Member] | Derivative Commodity Contracts [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 4.7 | 0.1 |
Prepaid Expenses and Other Current Assets [Member] | Derivative Commodity Contracts [Member] | Not Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2.6 | 5.1 |
Other Noncurrent Assets [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0.4 | 1 |
Other Noncurrent Assets [Member] | Interest Rate Swaps [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Other Noncurrent Assets [Member] | Currency Swap [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0.4 | 0.4 |
Other Noncurrent Assets [Member] | Currency Swap [Member] | Not Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0.6 |
Other Noncurrent Assets [Member] | Derivative Commodity Contracts [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Other Noncurrent Assets [Member] | Derivative Commodity Contracts [Member] | Not Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Hedging Obligations Current [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 49 | 44.7 |
Hedging Obligations Current [Member] | Interest Rate Swaps [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 3.3 | 0 |
Hedging Obligations Current [Member] | Currency Swap [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 39.7 | 29.9 |
Hedging Obligations Current [Member] | Currency Swap [Member] | Not Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 6 | 0.9 |
Hedging Obligations Current [Member] | Derivative Commodity Contracts [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 8.7 |
Hedging Obligations Current [Member] | Derivative Commodity Contracts [Member] | Not Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 5.2 |
Hedging Obligations [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 17.6 | 27.6 |
Hedging Obligations [Member] | Interest Rate Swaps [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 7.8 |
Hedging Obligations [Member] | Currency Swap [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 17.6 | 19.5 |
Hedging Obligations [Member] | Currency Swap [Member] | Not Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0.3 |
Hedging Obligations [Member] | Derivative Commodity Contracts [Member] | Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Hedging Obligations [Member] | Derivative Commodity Contracts [Member] | Not Designated As Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 |
Derivative Financial Instrume87
Derivative Financial Instruments (Schedule of Cash Flow Hedging Instruments and Notional Amounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Designated As Hedging Instruments [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | $ 0.2 | ||
Designated As Hedging Instruments [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | ||
Designated As Hedging Instruments [Member] | Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0.2 | ||
Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | ||
Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) recognized in Other Comprehensive Income (Loss) | (40) | $ (69.9) | $ (44.5) |
Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) recognized in Other Comprehensive Income (Loss) | 6.4 | (22.3) | (18.8) |
Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) recognized in Other Comprehensive Income (Loss) | (46.1) | (46.5) | (25.2) |
Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) recognized in Other Comprehensive Income (Loss) | (0.3) | (1.1) | (0.5) |
Operating Expenses | Cash Flow Hedging [Member] | Not Designated As Hedging Instruments [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (5.2) | (8.8) | |
Operating Expenses | Cash Flow Hedging [Member] | Not Designated As Hedging Instruments [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | |
Operating Expenses | Cash Flow Hedging [Member] | Not Designated As Hedging Instruments [Member] | Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (5.2) | (8.8) | |
Sales Revenue, Net [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0.2 | ||
Sales Revenue, Net [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | ||
Sales Revenue, Net [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0.2 | ||
Sales Revenue, Net [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | ||
Cost of Sales | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (45.7) | (38.3) | 0.5 |
Cost of Sales | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (13.6) | (19.8) | (7.1) |
Cost of Sales | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (32.1) | (18.5) | 7.6 |
Cost of Sales | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Cost of Sales | Cash Flow Hedging [Member] | Not Designated As Hedging Instruments [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 2.6 | (1.3) | |
Cost of Sales | Cash Flow Hedging [Member] | Not Designated As Hedging Instruments [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 2.6 | 0 | |
Cost of Sales | Cash Flow Hedging [Member] | Not Designated As Hedging Instruments [Member] | Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | (1.3) | |
Interest Expense [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (4.8) | (5.2) | (10.3) |
Interest Expense [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Interest Expense [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Interest Expense [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (4.8) | (5.2) | $ (10.3) |
Mexican Peso | |||
Derivative [Line Items] | |||
Notional amount of derivative | 230.1 | 339.4 | |
Chinese Renminbi | |||
Derivative [Line Items] | |||
Notional amount of derivative | 275.5 | 233.9 | |
Indian Rupee | |||
Derivative [Line Items] | |||
Notional amount of derivative | 43.6 | 54.5 | |
Euro | |||
Derivative [Line Items] | |||
Notional amount of derivative | 69 | 68.5 | |
Canadian Dollar | |||
Derivative [Line Items] | |||
Notional amount of derivative | 41.8 | 6.2 | |
Australian Dollar | |||
Derivative [Line Items] | |||
Notional amount of derivative | 12.1 | 10.8 | |
Thai Baht | |||
Derivative [Line Items] | |||
Notional amount of derivative | 4.9 | 3.7 | |
Japanese Yen | |||
Derivative [Line Items] | |||
Notional amount of derivative | 2.8 | 2.7 | |
Great Britain Pound | |||
Derivative [Line Items] | |||
Notional amount of derivative | 4.3 | 4.8 | |
Singapore Dollar | |||
Derivative [Line Items] | |||
Notional amount of derivative | 0 | 0.5 | |
Copper [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amount of derivative | 50.7 | 59.4 | |
Aluminum [Member] | Commodity Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amount of derivative | $ 4.9 | $ 4.2 |
Derivative Financial Instrume88
Derivative Financial Instruments (Other) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Derivative [Line Items] | ||
Derivative losses on closed hedge instruments in AOCI that will be realized in earnings when the hedged items impact earnings | $ (7.5) | $ (7.4) |
AOCI balance related to hedging activities | (41.1) | |
Net current deferred gains (losses) expected to be realized | (24.1) | |
Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Current derivative assets, gross | 2.8 | 1.2 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (1.7) | (1.2) |
Current Derivatives, Fair Value, Net | 1.1 | 0 |
Prepaid Expenses and Other Current Assets [Member] | Derivative Commodity Contracts [Member] | ||
Derivative [Line Items] | ||
Current derivative assets, gross | 7.3 | 5.2 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | (5.2) |
Current Derivatives, Fair Value, Net | 7.3 | 0 |
Other Noncurrent Assets [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Assets, Noncurrent | 0.2 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (0.2) | (1) |
Long-term derivative assets, gross | 0.4 | 1 |
Hedging Obligations Current [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Current derivative liabilities, gross | 45.7 | 30.8 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (1.7) | (1.2) |
Derivative, Net Liability Position, Aggregate Fair Value | 44 | 29.6 |
Hedging Obligations Current [Member] | Derivative Commodity Contracts [Member] | ||
Derivative [Line Items] | ||
Current derivative liabilities, gross | 13.9 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (5.2) | |
Derivative, Net Liability Position, Aggregate Fair Value | 8.7 | |
Hedging Obligations [Member] | ||
Derivative [Line Items] | ||
Long-term Derivatives Fair Value, Net | 18.8 | |
Hedging Obligations [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (1) | |
Long-term derivative liabilities, gross | 19.8 | |
Hedging Obligations [Member] | Derivative Commodity Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | (0.2) | |
Long-term Derivatives Fair Value, Net | 17.4 | |
Long-term derivative liabilities, gross | 17.6 | |
Receive-Variable/Pay-Fixed Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 100 | $ 100 |
Fair Value (Schedule Of Financi
Fair Value (Schedule Of Financial Assets And Liabilities At Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jan. 02, 2016 |
Prepaid Expenses and Other Current Assets [Member] | Level 2 | Derivative Currency Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 2.8 | $ 1.2 |
Prepaid Expenses and Other Current Assets [Member] | Level 2 | Derivative Commodity Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 7.3 | 5.2 |
Other Noncurrent Assets [Member] | Level 1 | Assets Held in Rabbi Trust [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 5.4 | 5.2 |
Other Noncurrent Assets [Member] | Level 2 | Derivative Currency Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0.4 | 1 |
Hedging Obligations Current [Member] | Level 2 | Interest Rate Swaps [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 3.3 | 0 |
Hedging Obligations Current [Member] | Level 2 | Derivative Currency Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 45.7 | 30.8 |
Hedging Obligations Current [Member] | Level 2 | Derivative Commodity Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 13.9 |
Hedging Obligations [Member] | Level 2 | Interest Rate Swaps [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 7.8 |
Hedging Obligations [Member] | Level 2 | Derivative Currency Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | $ 17.6 | $ 19.8 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 1.3 | $ 6.1 |
Provision | 5.7 | 8.9 |
Less: Payments | 7.5 | 13.7 |
Ending Balance | 0.6 | 1.3 |
Expected future restructuring charges | 12.9 | |
Total Restructuring Related costs | 1.1 | 0 |
Total Restructuring and Restructuring Related Costs | 6.8 | 8.9 |
Commercial and Industrial Systems | ||
Restructuring Reserve [Roll Forward] | ||
Total Restructuring and Restructuring Related Costs | 2.5 | 6.8 |
Climate Solutions | ||
Restructuring Reserve [Roll Forward] | ||
Total Restructuring and Restructuring Related Costs | 2.6 | 1.5 |
Power Transmission Solutions | ||
Restructuring Reserve [Roll Forward] | ||
Total Restructuring and Restructuring Related Costs | 1.7 | 0.6 |
Cost of Sales | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 4.2 | 7.7 |
Total Restructuring Related costs | 0.5 | 0 |
Total Restructuring and Restructuring Related Costs | 4.7 | 7.7 |
Operating Expenses | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 1.5 | 1.2 |
Total Restructuring Related costs | 0.6 | 0 |
Total Restructuring and Restructuring Related Costs | 2.1 | 1.2 |
Employee Termination Expenses | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0.8 | 0.6 |
Expected future restructuring charges | 6.1 | |
Total Restructuring Related costs | 1.1 | 0 |
Employee Termination Expenses | Cost of Sales | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0.5 | 0.6 |
Total Restructuring Related costs | 0.5 | 0 |
Employee Termination Expenses | Operating Expenses | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0.3 | 0 |
Total Restructuring Related costs | 0.6 | 0 |
Facility Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 3.2 | 5 |
Expected future restructuring charges | 6.8 | |
Facility Related Costs | Cost of Sales | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 2.9 | 3.8 |
Facility Related Costs | Operating Expenses | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0.3 | 1.2 |
Other Expenses | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 1.7 | 3.3 |
Other Expenses | Cost of Sales | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0.8 | 3.3 |
Other Expenses | Operating Expenses | ||
Restructuring Reserve [Roll Forward] | ||
Provision | $ 0.9 | $ 0 |
Quarterly Financial Informati91
Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Net Sales | $ 758.1 | $ 809.6 | $ 838.6 | $ 818.2 | $ 773.5 | $ 882.3 | $ 942.2 | $ 911.7 | $ 3,224.5 | $ 3,509.7 | $ 3,257.1 |
Gross Profit | 193.2 | 231.7 | 222.9 | 217.4 | 219.8 | 241.1 | 251.4 | 220.9 | 865.2 | 933.2 | 797.3 |
Income from Operations | 70.1 | 89.8 | 91.4 | 69.3 | (14.1) | 100.1 | 103.2 | 63.6 | 320.6 | 252.8 | 121.5 |
Net Income | 47.1 | 61.1 | 58.4 | 42.7 | (18.6) | 64.3 | 64.9 | 37.9 | 209.3 | 148.5 | 36.1 |
Net Income Attributable to Regal Beloit Corporation | $ 45.6 | $ 59.6 | $ 56.6 | $ 41.6 | $ (19.3) | $ 63.4 | $ 62.8 | $ 36.4 | $ 203.4 | $ 143.3 | $ 31 |
Basic (in dollars per shares) | $ 1.02 | $ 1.33 | $ 1.27 | $ 0.93 | $ (0.43) | $ 1.42 | $ 1.40 | $ 0.81 | $ 4.55 | $ 3.21 | $ 0.69 |
Assuming Dilution (in dollars per share) | $ 1.01 | $ 1.32 | $ 1.26 | $ 0.93 | $ (0.43) | $ 1.41 | $ 1.39 | $ 0.81 | $ 4.52 | $ 3.18 | $ 0.69 |
Basic (in shares) | 44.8 | 44.8 | 44.7 | 44.7 | 44.7 | 44.8 | 44.8 | 44.7 | 44.7 | 44.7 | 45 |
Assuming Dilution (in shares) | 45.1 | 45 | 45 | 45 | 44.7 | 45.1 | 45.2 | 45.1 | 45 | 45.1 | 45.3 |
Goodwill Impairment | $ 79.9 | $ 0 | $ 79.9 | $ 119.5 | |||||||
Goodwill impairment (net of tax) | 58.1 | ||||||||||
Commercial and Industrial Systems | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Net Sales | $ 369.2 | $ 389.4 | $ 394.7 | $ 377.6 | 370.7 | $ 426.8 | $ 441 | $ 456.4 | 1,530.9 | 1,694.9 | 1,856.1 |
Income from Operations | 20.5 | 36.2 | 25.1 | 21.7 | (59.7) | 38.8 | 41.5 | 33.3 | |||
Goodwill Impairment | 79.9 | ||||||||||
Climate Solutions | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Net Sales | 215.2 | 250.5 | 254.5 | 239.8 | 210.3 | 264.4 | 286.1 | 280.4 | 960 | 1,041.2 | 1,134.8 |
Income from Operations | 27 | 42.2 | 36.1 | 24.6 | 28.9 | 40.7 | 43.7 | 33.4 | |||
Goodwill Impairment | 0 | ||||||||||
Power Transmission Solutions | |||||||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||||||
Net Sales | 173.7 | 169.7 | 189.4 | 200.8 | 192.5 | 191.1 | 215.1 | 174.9 | $ 733.6 | 773.6 | $ 266.2 |
Income from Operations | $ 22.6 | $ 11.4 | $ 30.2 | $ 23 | $ 16.7 | $ 20.6 | $ 18 | $ (3.1) | |||
Goodwill Impairment | $ 0 |
Schedule II Regal Beloit Corp92
Schedule II Regal Beloit Corporation Valuation And Qualifying Accounts (Details) - Allowance For Receivables [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | $ 11.3 | $ 11.6 | $ 11.5 |
Charged to Expenses | 1.6 | 12.2 | 19.5 |
Deductions | (1.2) | (12.4) | (19.2) |
Adjustments | (0.2) | (0.1) | (0.2) |
Balance End of Year | $ 11.5 | $ 11.3 | $ 11.6 |