Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 14, 2019 | Jun. 30, 2018 | |
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. 29, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.6 | ||
Entity Common Stock, Shares Outstanding | 42,787,551 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net Sales | $ 3,645.6 | $ 3,360.3 | $ 3,224.5 |
Cost of Sales | 2,681 | 2,476.7 | 2,359.5 |
Gross Profit | 964.6 | 883.6 | 865 |
Operating Expenses | 599.4 | 552.5 | 542.5 |
Goodwill Impairment | 9.5 | 0 | 0 |
Asset Impairments | 8.7 | 0 | 0 |
Total Operating Expenses | 617.6 | 552.5 | 542.5 |
Income from Operations | 347 | 331.1 | 322.5 |
Other Expenses, net | 1.5 | 1 | 1.9 |
Interest Expense | 55.2 | 56.1 | 58.7 |
Interest Income | 1.9 | 3.2 | 4.5 |
Income before Taxes | 292.2 | 277.2 | 266.4 |
Provision for Income Taxes | 56.4 | 59.1 | 57.1 |
Net Income | 235.8 | 218.1 | 209.3 |
Less: Net Income Attributable to Noncontrolling Interests | 4.6 | 5.1 | 5.9 |
Net Income Attributable to Regal Beloit Corporation | $ 231.2 | $ 213 | $ 203.4 |
Earnings Per Share Attributable to Regal Beloit Corporation: | |||
Basic (in dollars per shares) | $ 5.30 | $ 4.78 | $ 4.55 |
Assuming Dilution (in dollars per share) | $ 5.26 | $ 4.74 | $ 4.52 |
Weighted Average Number of Shares Outstanding: | |||
Basic (in shares) | 43.6 | 44.6 | 44.7 |
Assuming Dilution (in shares) | 43.9 | 44.9 | 45 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 235.8 | $ 218.1 | $ 209.3 |
Translation: | |||
Foreign Currency Translation Adjustments | (71.2) | 103.1 | (68.2) |
Hedging Activities: | |||
Increase (Decrease) in Fair Value of Hedging Activities, Net of Tax Effects of $(1.2) Million in 2018, $26.1 Million in 2017 and $(15.2) Million in 2016 | (4) | 42.4 | (24.8) |
Reclassification of (Gains) Losses Included in Net Income, Net of Tax Effects of $(3.8) Million in 2018, $4.5 Million in 2017, and $19.1 Million in 2016 | (12) | 7.3 | 31.2 |
Hedging Activities | (16) | 49.7 | 6.4 |
Pension and Post Retirement Plans: | |||
Decrease (Increase) in Prior Service Cost and Unrecognized Gain (Loss), Net of Tax Effects of $(0.6) Million in 2018, $0.4 Million in 2017 and $(1.5) Million in 2016 | (1.9) | 1.8 | (2.8) |
Amortization of Prior Service Cost and Unrecognized Loss Included in Net Periodic Pension Cost, Net of Tax Effects of $0.8 Million in 2018, $0.9 Million in 2017 and $1.2 Million in 2016 | 2.9 | 1.6 | 2.2 |
Amortization of Prior Service Cost and Unrecognized Loss Included in Net Periodic Pension Cost, Net of Tax Effects of $0.8 Million in 2018, $0.9 Million in 2017 and $1.2 Million in 2016 | 1 | 3.4 | (0.6) |
Other Comprehensive Income (Loss) | (86.2) | 156.2 | (62.4) |
Comprehensive Income | 149.6 | 374.3 | 146.9 |
Less: Comprehensive Income Attributable to Noncontrolling Interest | 2.8 | 7.2 | 3.9 |
Comprehensive Income Attributable to Regal Beloit Corporation | $ 146.8 | $ 367.1 | $ 143 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Tax effect of fair value hedging activities | $ (1.2) | $ 26.1 | $ (15.2) |
Tax effect of hedging activities reclassified into earnings | (3.8) | 4.5 | 19.1 |
Tax effect of pension benefits prior service cost arising during period | (0.6) | 0.4 | (1.5) |
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 | $ 0.8 | $ 0.9 | $ 1.2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Current Assets: | ||
Cash and Cash Equivalents | $ 248.6 | $ 139.6 |
Trade Receivables, Less Allowances of $13.3 Million in 2018 and $11.3 Million in 2017 | 551.9 | 506.3 |
Inventories | 767.2 | 757.1 |
Assets of Businesses Held for Sale | 92.1 | 0 |
Prepaid Expenses and Other Current Assets | 157.9 | 171.4 |
Total Current Assets | 1,817.7 | 1,574.4 |
Net Property, Plant and Equipment | 615.5 | 623 |
Goodwill | 1,509.2 | 1,477.1 |
Intangible Assets, Net of Amortization | 625.5 | 670.5 |
Deferred Income Tax Benefits | 34.2 | 28.5 |
Other Noncurrent Assets | 21.7 | 14.7 |
Total Assets | 4,623.8 | 4,388.2 |
Current Liabilities: | ||
Accounts Payable | 424.8 | 384.3 |
Dividends Payable | 12 | 11.5 |
Current Hedging Obligations | 11.3 | 8.1 |
Accrued Compensation and Employee Benefits | 81.9 | 74.2 |
Other Accrued Expenses | 136 | 132.7 |
Liabilities of Businesses Held for Sale | 17 | 0 |
Current Maturities of Long-Term Debt | 0.5 | 101.2 |
Total Current Liabilities | 683.5 | 712 |
Long-Term Debt | 1,306.6 | 1,039.9 |
Deferred Income Taxes | 148.3 | 135.3 |
Noncurrent Hedging Obligations | 1.2 | 0.9 |
Pension and Other Post Retirement Benefits | 96.2 | 101 |
Other Noncurrent Liabilities | 49.5 | 44.4 |
Contingencies (see Note 11) | ||
Regal Beloit Corporation Shareholders' Equity: | ||
Common Stock, $0.01 Par Value, 100.0 Million Shares Authorized, 42.8 Million and 44.3 Million Shares Issued and Outstanding at 2018 and 2017, Respectively | 0.4 | 0.4 |
Additional Paid-In Capital | 783.6 | 877.5 |
Retained Earnings | 1,777.9 | 1,611.6 |
Accumulated Other Comprehensive Loss | (251.4) | (164) |
Total Regal Beloit Corporation Shareholders' Equity | 2,310.5 | 2,325.5 |
Noncontrolling Interests | 28 | 29.2 |
Total Equity | 2,338.5 | 2,354.7 |
Total Liabilities and Equity | $ 4,623.8 | $ 4,388.2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 13.3 | $ 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) | 42,800,000 | 44,300,000 |
Common stock, shares outstanding (in shares) | 42,800,000 | 44,300,000 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock $0.01 Par Value | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning 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 ($0.95, $1.02, and $1.10 per share, respectively) | (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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 218.1 | 213 | 5.1 | |||
Other Comprehensive Income (Loss) | 156.2 | 154.1 | 2.1 | |||
Dividends Declared ($0.95, $1.02, and $1.10 per share, respectively) | (45.3) | (45.3) | ||||
Stock Options Exercised, Including Income Tax Benefit and Share Cancellations | (3.6) | (3.6) | ||||
Share-Based Compensation | 13.6 | 13.6 | ||||
Stock Repurchase | (45.1) | (37) | (8.1) | |||
Dividends Declared to Noncontrolling Interests | (17.4) | (17.4) | ||||
Ending Balance at Dec. 30, 2017 | 2,354.7 | 0.4 | 877.5 | 1,611.6 | (164) | 29.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 235.8 | 231.2 | 4.6 | |||
Other Comprehensive Income (Loss) | (86.2) | (84.4) | (1.8) | |||
Dividends Declared ($0.95, $1.02, and $1.10 per share, respectively) | (47.7) | (47.7) | ||||
Stock Options Exercised, Including Income Tax Benefit and Share Cancellations | (4.8) | (4.8) | ||||
Share-Based Compensation | 16.9 | 16.9 | ||||
Stock Repurchase | (127.8) | (106) | (21.8) | |||
Purchase of Subsidiary Shares from Noncontrolling Interest | (0.8) | 1.6 | (2.4) | |||
Dividends Declared to Noncontrolling Interests | (1.6) | (1.6) | ||||
Ending Balance at Dec. 29, 2018 | $ 2,338.5 | $ 0.4 | $ 783.6 | $ 1,777.9 | $ (251.4) | $ 28 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends Declared (in dollars per share) | $ 1.10 | $ 1.02 | $ 0.95 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 235.8 | $ 218.1 | $ 209.3 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities (Net of Acquisitions and Divestitures): | |||
Depreciation | 87.5 | 82 | 93.4 |
Amortization | 54.9 | 55.2 | 62 |
Goodwill Impairment | 9.5 | 0 | 0 |
Asset Impairments | 8.7 | 0 | 0 |
Share-Based Compensation Expense | 16.9 | 13.6 | 13.3 |
Expense (Benefit) from Deferred Income Taxes | 13.2 | (9.7) | (1.6) |
Loss on Exit of Business | 0 | 3.9 | 0 |
Exit Related Costs | 16.7 | 0 | 0 |
Loss (Gain) on Disposition of Assets | 1.1 | (2.5) | 1.1 |
Other Non-Cash Changes | 3 | 1.3 | 1.6 |
Gain on Sale of Businesses | 0 | (0.1) | (11.6) |
Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures | |||
Receivables | (56.5) | (31) | (10.4) |
Inventories | (42.7) | (83) | 100.4 |
Accounts Payable | 41.1 | 37.7 | 7.6 |
Current Liabilities and Other | (26.5) | 6.4 | (22.8) |
Net Cash Provided by Operating Activities | 362.7 | 291.9 | 442.3 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Additions to Property, Plant and Equipment | (77.6) | (65.2) | (65.2) |
Purchases of Investment Securities | 0 | (0.9) | (53.7) |
Sales of Investment Securities | 0.5 | 0.9 | 72.6 |
Business Acquisitions, Net of Cash Acquired | (161.5) | 0 | 0 |
Proceeds from Sale of Businesses | 0.7 | 1.1 | 24.6 |
Proceeds from Sale of Assets | 10 | 6.3 | 2.1 |
Net Cash Used in Investing Activities | (227.9) | (57.8) | (19.6) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings Under Revolving Credit Facility | 1,350.3 | 1,247.6 | 583.7 |
Repayments Under Revolving Credit Facility | (1,271.7) | (1,245.8) | (568.7) |
Proceeds from Short-Term Borrowings | 19 | 25.2 | 23.8 |
Repayments of Short-Term Borrowings | (19.7) | (24.7) | (30.5) |
Proceeds from Long-Term Borrowings | 900.2 | 0.3 | 0.2 |
Repayments of Long-Term Borrowings | (811.4) | (277.3) | (323.8) |
Dividends Paid to Shareholders | (47.2) | (44.5) | (42.1) |
Proceeds from the Exercise of Stock Options | 0 | 0.4 | 0.5 |
Shares Surrendered for Taxes | (3.5) | (4) | (2.7) |
Purchase of Subsidiary Shares from Noncontrolling Interest | (0.8) | 0 | (19.6) |
Financing Fees Paid | (3.5) | 0 | 0 |
Repurchase of Common Stock | (127.8) | (45.1) | 0 |
Payments of Contingent Consideration | 0 | (5.3) | 0 |
Distributions to Noncontrolling Interests | (1.6) | (17.4) | (0.3) |
Net Cash Used in Financing Activities | (17.7) | (390.6) | (379.5) |
EFFECT OF EXCHANGE RATES ON CASH and CASH EQUIVALENTS | (8.1) | 11.6 | (11.6) |
Net Increase (Decrease) in Cash and Cash Equivalents | 109 | (144.9) | 31.6 |
Cash and Cash Equivalents at Beginning of Period | 139.6 | 284.5 | 252.9 |
Cash and Cash Equivalents at End of Period | 248.6 | 139.6 | 284.5 |
Cash Paid During the Year for: | |||
Interest | 54.2 | 53.2 | 53.7 |
Income Taxes | $ 81.2 | $ 59.7 | $ 66.9 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 29, 2018 | |
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 produces medium and large motors, commercial and industrial equipment, alternators, motors and controls and air moving solutions; the Climate Solutions segment produces small motors, controls and air moving solutions; and the Power Transmission Solutions segment manufactures, sells and services belt and chain drives, helical and worm gearing, mounted and unmounted bearings, couplings, modular plastic belts, conveying chains and components, hydraulic pump drives, large open gearing and specialty mechanical products. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 29, 2018 | |
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 years ended December 29, 2018 , December 30, 2017 , and December 31, 2016 were 52 weeks. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
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. 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 recognizes revenue from the sale of electric motors, electrical motion controls, power generation and power transmission products. The Company recognizes revenue when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. For a limited number of contracts, the Company recognizes revenue over time in proportion to costs incurred. The pricing of products sold is generally supported by customer purchase orders, and accounts receivable collection is reasonably assured. 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 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 2018 , fiscal 2017 or fiscal 2016 . Nature of Goods and Services The Company sells products with multiple applications as well as customized products that have a single application such as those manufactured for its OEM’s customers. The Company reports in three operating segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. See Note 6 for a description of the different segments. Nature of Performance Obligations The Company’s contracts with customers typically consist of purchase orders, invoices and master supply agreements. At contract inception, across all three segments, the Company assesses the goods and services promised in its sales arrangements with customers and identifies a performance obligation for each promise to transfer to the customer a good or service that is distinct. The Company’s primary performance obligations consist of product sales and customized systems/solutions. Product: The nature of products varies from segment to segment but across all segments, individual products are generally not integrated and represent separate performance obligations. Customized systems/solutions: The Company provides customized systems/solutions which consist of multiple products engineered and designed to specific customer specification, combined or integrated into one combined solution for a specific customer application. The goods are transferred to the customer and revenue is typically recognized over time as the performance obligations are satisfied. When Performance Obligations are Satisfied For performance obligations related to substantially all of the Company's product sales, the Company determines that the customer obtains control upon shipment and recognizes revenue accordingly. Once a product has shipped, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from the asset. The Company considers control to have transferred upon shipment because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset. For a limited number of contracts, the Company transfers control and recognizes revenue over time. The Company satisfies its performance obligations over time and the Company uses a cost-based input method to measure progress. In applying the cost-based method of revenue recognition, the Company uses actual costs incurred to date relative to the total estimated costs for the contract in conjunction with the customer's commitment to perform in determining the amount of revenue and cost to recognize. The Company has determined that the cost-based input method provides a faithful depiction of the transfer of goods to the customer. Payment Terms The arrangement with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchased. Payment terms vary by customer but typically range from due upon delivery to 120 days after delivery. For contracts recognized at a point in time, revenue and billing typically occur simultaneously. The Company generally has payment terms with its customers of one year or less and has elected the practical expedient applicable to such contracts not to consider the time value of money. For contracts recognized using the cost-based input method, revenue recognized in excess of customer billings and billings in excess of revenue recognized are reviewed to determine the net asset or net liability position and classified as such on the Consolidated Balance Sheet. Returns, Refunds, and Warranties The Company’s contracts do not explicitly offer a “general” right of return to its customers (e.g. customers ordered excess products and return unused items). Warranties are classified as either assurance type or service type warranties. A warranty is considered an assurance type warranty if it provides the customer with assurance that the product will function as intended. A warranty that goes above and beyond ensuring basic functionality is considered a service type warranty. The Company generally only offers limited warranties which are considered to be assurance type warranties and are not accounted for as separate performance obligations. Customers generally receive repair or replacement on products that do not function to specification. Estimated product warranties are provided for specific product groups and the Company accrues for estimated future warranty cost in the period in which the sale is recognized. The Company estimates the accrual requirements based on historical warranty loss experience and the cost is included in Cost of Sales. Volume Rebates In some cases, the nature of the Company’s contract may give rise to variable consideration including volume based sales incentives. If the customer achieves specific sales targets, they are entitled to rebates. The Company estimates the projected amount of the rebates that will be achieved and recognizes the estimated costs as a reduction to Net Sales as revenue is recognized. Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by geographical region for the fiscal year ended December 29, 2018 (in millions): Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 1,173.5 $ 891.9 $ 686.4 $ 2,751.8 Asia 269.6 39.5 24.1 333.2 Europe 177.2 50.5 96.9 324.6 Rest-of-World 161.7 42.9 31.4 236.0 Total $ 1,782.0 $ 1,024.8 $ 838.8 $ 3,645.6 Practical Expedients and Exemptions The Company typically expenses incremental direct costs of obtaining a contract, primarily sales commissions, as incurred because the amortization period is expected to be 12 months or less. Contract costs are included in Operating Expenses in the accompanying Consolidated Statements of Income. Due to the short nature of the Company’s contracts, the Company has adopted a practical expedient to not disclose revenue allocated to remaining performance obligations as substantially all of its contracts have original terms of 12 months or less. The Company typically does not include in its transaction price any amounts collected from customers for sales taxes. The Company has elected to account for shipping and handling costs as fulfillment activities and expense the costs as incurred as part of Cost of Sales. 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 2018 , 2017 and 2016 , research and development costs were $29.3 million , $29.9 million and $29.5 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. 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 29, December 30, Raw Material and Work in Process 45% 47% Finished Goods and Purchased Parts 55% 53% Inventories are stated at cost, which is not in excess of market. Cost for approximately 54% of the Company's inventory as of December 29, 2018 and 52% as of December 30, 2017 was determined using the last-in, first-out method. If all inventories were valued on the first-in, first-out method, they would have increased by $65.5 million and $46.0 million as of December 29, 2018 and December 30, 2017 , 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. Assets Held for Sale In December 2018, the Company signed an agreement to sell its engineered drives and controls systems business included in the Company's Commercial and Industrial Systems segment. This transaction closed in January 2019. Also in January 2019, the Company signed an agreement to sell its capacitors business which had been included in the Company's Climate Solutions segment. This transaction is expected to close in the second quarter of 2019. The assets and liabilities related to these businesses have been reclassified to Assets of Businesses Held for Sale and Liabilities of Businesses Held for Sale on the Company's Consolidated Balance Sheets as of December 29, 2018 . These businesses are being divested as they are considered non-core to the Company's operations. The table below presents the balances that were classified as Assets of Businesses Held for Sale and Liabilities of Businesses Held for Sale as of December 29, 2018 (in millions): December 29, 2018 Trade Receivables $ 19.2 Inventories 34.7 Prepaid Expenses and Other Current Assets 5.0 Property, Plant and Equipment 19.9 Intangible Assets 12.0 Goodwill 1.3 Assets of Businesses Held for Sale $ 92.1 Accounts Payable $ 8.1 Accrued Compensation and Employee Benefits 0.5 Other Accrued Expenses 7.3 Other Noncurrent Liabilities 1.1 Liabilities of Businesses Held for Sale $ 17.0 Fiscal 2018 Net Sales and Income from Operations for the businesses classified as held for sale at December 29, 2018 were $138.9 million and $15.7 million , respectively. 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 29, 2018 December 30, Land and Improvements $ 82.1 $ 78.2 Buildings and Improvements 3-50 302.8 294.5 Machinery and Equipment 3-15 971.9 986.8 Property, Plant and Equipment 1,356.8 1,359.5 Less: Accumulated Depreciation (741.3 ) (736.5 ) Net Property, Plant and Equipment $ 615.5 $ 623.0 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. The Company performed quantitative impairment testing for all reporting units in 2018 . The Company performs the required annual goodwill impairment testing 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 reporting unit fair values for the Company's fiscal 2018 and fiscal 2017 impairment testing exceeded the carrying values by at least 10% for all of its reporting units. 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. On July 31, 2018 , the Company received notification from a customer of its Hermetic Climate business that it would wind down operations. The Hermetic Climate business accounted for sales of $52.6 million and $60.4 million for the fiscal years ended 2018 and 2017 , respectively. As a result of this notification, the Company accelerated its plans to exit this business. The Company will be winding down its operations over the next few months and as a result, the Company recognized exit and exit related charges of $34.9 million during fiscal 2018 . The charges included goodwill impairment of $9.5 million , customer relationship intangible asset impairment of $5.5 million , technology intangible asset impairment of $2.1 million and fixed asset impairment of $1.1 million . In addition to the impairments, the Company took charges on accounts receivable and inventory along with recognizing other expenses related to exiting the business. Intangible Assets Intangible 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. The Company recorded impairments for its customer relationship intangible asset of $5.5 million and technology intangible asset of $2.1 million due to the winding down of the Hermetic Climate business described above. 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 testing 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 fiscal 2018 and fiscal 2017 , the fair value of indefinite lived intangible assets exceeded their respective carrying value. Some of the key considerations used in the Company's 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 of the related business 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 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 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 had an impairment of $1.1 million in long-lived assets in fiscal 2018 due to the winding down of the Hermetic Climate business described above. 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. Share based compensation awards 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 0.6 million in fiscal 2018 , 0.5 million in fiscal 2017 and 1.3 million in fiscal 2016 . The following table reconciles the basic and diluted shares used in earnings per share calculations for the fiscal years ended (in millions): 2018 2017 2016 Denominator for Basic Earnings Per Share 43.6 44.6 44.7 Effect of Dilutive Securities 0.3 0.3 0.3 Denominator for Diluted Earnings Per Share 43.9 44.9 45.0 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 fiscal 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 service cost component of the Company's net periodic benefit cost is included in Cost of Sales and Operating Expenses. All other components of net periodic benefit costs are included in Other Expenses, net on the Company's Consolidated Statements of Income. 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). 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. 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. As a result of adopting ASU 2018-02 on April 1, 2018 on a prospective basis, the Company reclassified $6.6 million of stranded tax benefits related to Pension and Post Retirement Benefits and $2.0 million of stranded tax expense related to Hedging Activities to Retained Earnings. This resulted in a $4.6 million increase in Retained Earnings. The components of the ending balances of AOCI are as follows (in millions): 2018 2017 Foreign Currency Translation Adjustments $ (207.8 ) $ (140.0 ) Hedging Activities, Net of Tax of $(1.7) in 2018 and $5.4 in 2017 (5.4 ) 8.6 Pension and Post Retirement Benefits, Net of Tax of $(11.8) in 2018 and $(18.8) in 2017 (38.2 ) (32.6 ) Total $ (251.4 ) $ (164.0 ) 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 comparable maturities and credit ratings as further described in Note 7. The fair value of pension assets and derivative instruments is determined based on the methods disclosed in Notes 8 and 14. Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) , Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU addresses the income tax effects of items in Accumulated Other Comprehensive Loss (“AOCI”) which were originally recognized in other comprehensive income, rather than in income from continuing operations. Specifically, it permits a reclassification from AOCI to Retained Earnings for the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate resulting from the US tax law changes enacted in December 2017. It also requires certain disclosures about these reclassifications. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied either on a prospective basis in the period of adoption or retrospectively to each period (or periods) in which the effect of the ch |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures The results of operations of acquired businesses are included in the Consolidated Financial Statements from the date of acquisition. Acquisition and acquisition related expenses of $1.5 million were recorded in Operating Expenses for the fiscal year ended December 29, 2018 . There were no acquisition-related expenses in fiscal 2017 or fiscal 2016 . See Note 3 for information regarding planned 2019 divestitures and exits. 2018 Acquisitions Nicotra Gebhardt On April 10, 2018, the Company acquired Nicotra Gebhardt S.p.A. ("NG") for $161.5 million in cash, net of $8.5 million of cash acquired. NG is a leader in critical, energy-efficient systems for ventilation and air quality. NG manufactures, sells and services fans and blowers under the industry leading brands of Nicotra and Gebhardt. The financial results of NG have been included in the Company's Commercial & Industrial Systems segment from the date of acquisition. The Company finalized its analysis of the fair value of tangible assets acquired and liabilities assumed and the allocation of any excess acquisition cost over the fair value of the net tangible assets acquired to any separately identifiable intangible assets. The Company booked provisional amounts at the acquisition date and has made adjustments to the provisional amounts to reflect changes in the initial value of property, plant and equipment, intangible assets and the related deferred tax balances. The Company made the adjustments retrospectively during the allowed measurement period. The Company has completed its assessment of valuing property, plant and equipment using both a market approach and a cost approach depending on the asset. Intangible assets have been valued using the present value of projected future cash flows. Significant assumptions include royalty rates, discount rates and customer attrition. None of the goodwill is expected to be deductible for tax purposes. The following table summarizes the fair value of assets acquired and liabilities assumed (in millions): As of April 10, 2018 Other Current Assets $ 17.2 Trade Receivables 28.0 Inventories 22.1 Property, Plant and Equipment 44.6 Intangible Assets 37.8 Goodwill 58.7 Other Noncurrent Assets 2.5 Total Assets Acquired $ 210.9 Accounts Payable 16.7 Current Liabilities 14.2 Long-Term Liabilities 10.0 Net Assets Acquired $ 170.0 Other Disclosures The Consolidated Statements of Income include the results of operations of NG since the date of acquisition, and such results are reflected in the Commercial and Industrial Systems segment. Results of operations since the date of acquisition and supplemental pro forma financial information have not been presented for the NG acquisition as such information is not material to the results of operations. South Africa During the year ended December 29, 2018 the Company purchased the remaining shares owned by the joint venture partner in a South African distribution business for a purchase price of $0.8 million . The purchase price of the South African distribution business is reflected as a component of equity. 2018 Divestitures Israel Subsidiary On November 8, 2018 , the Company sold all of the stock of its Israeli subsidiary, which had been included in the Company's Commercial and Industrial Systems segment, to a private company for a purchase price of $0.9 million . 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. 2016 Divestitures Mastergear Worldwide On June 1, 2016, the Company sold its Mastergear Worldwide ("Mastergear") business to Rotork PLC for a purchase price of $25.7 million . Mastergear was included in the Company's Power Transmission Solutions segment. Gains related to the sale of $0.1 million and $11.6 million were recorded as a reduction to Operating Expenses in the Consolidated Statements of Income during fiscal 2017 and 2016, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 29, 2018 | |
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 for additional details. During the third quarter of 2018 , the Company accelerated its plans to exit the Hermetic Climate business. This decision resulted in an impairment charge of $9.5 million . The following information presents changes to goodwill during the periods indicated (in millions): Total Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Balance as of December 31, 2016 $ 1,453.2 $ 540.6 $ 341.8 $ 570.8 Translation Adjustments 23.9 8.2 0.6 15.1 Balance as of December 30, 2017 $ 1,477.1 $ 548.8 $ 342.4 $ 585.9 Acquisitions 58.7 58.7 — — Less: Impairment charges (9.5 ) — (9.5 ) — Less: Held for Sale (1.3 ) — (1.3 ) — Translation Adjustments (15.8 ) (8.6 ) (1.0 ) (6.2 ) Balance as of December 29, 2018 $ 1,509.2 $ 598.9 $ 330.6 $ 579.7 Cumulative Goodwill Impairment Charges $ 285.2 $ 244.8 $ 17.2 $ 23.2 Intangible Assets Intangible assets consist of the following (in millions): Weighted Average Amortization Period (Years) December 30, 2017 Acquisition Held for Sale Impairment Charges Translation Adjustments December 29, 2018 Customer Relationships 17 $ 720.9 $ 28.3 $ (18.7 ) $ (10.8 ) $ (10.9 ) $ 708.8 Technology 14 192.3 — (32.2 ) (14.1 ) (1.5 ) 144.5 Trademarks 14 32.8 9.5 (4.0 ) — (1.3 ) 37.0 Patent and Engineering Drawings 5 16.6 — — — — 16.6 Non-Compete Agreements 8 8.5 — (1.1 ) — (0.2 ) 7.2 971.1 37.8 (56.0 ) (24.9 ) (13.9 ) 914.1 Non-Amortizable Trade Names 122.5 — — — (0.6 ) 121.9 Total Gross Intangibles $ 1,093.6 $ 37.8 $ (56.0 ) $ (24.9 ) $ (14.5 ) $ 1,036.0 Accumulated amortization on intangible assets consists of the following: December 30, 2017 Amortization Held for Sale Impairment Charges Translation Adjustments December 29, 2018 Customer Relationships $ 249.6 $ 43.5 $ (11.1 ) $ (5.3 ) $ (4.3 ) $ 272.4 Technology 122.8 9.5 (29.1 ) (12.0 ) (1.1 ) 90.1 Trademarks 25.7 1.8 (2.7 ) — (0.6 ) 24.2 Patent and Engineering Drawings 16.6 — — — — 16.6 Non-Compete Agreements 8.4 0.1 (1.1 ) — (0.2 ) 7.2 Total Accumulated Amortization $ 423.1 $ 54.9 $ (44.0 ) $ (17.3 ) $ (6.2 ) $ 410.5 Intangible Assets, Net of Amortization $ 670.5 $ 625.5 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 $54.9 million in fiscal 2018 , $55.2 million in fiscal 2017 and $62.0 million in fiscal 2016 . The Company recognized impairment of its customer relationships and technology intangible assets of $5.5 million and $2.1 million , respectively, related to its decision to exit the Hermetic Climate Business at the end of its fiscal 2018 third quarter. The following table presents estimated future amortization expense (in millions): Estimated Amortization Year 2019 $ 50.9 2020 48.3 2021 43.1 2022 41.5 2023 41.4 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is comprised of three operating segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. Commercial and Industrial Systems produces medium and large motors, commercial and industrial equipment, alternators, motors and controls and air moving solutions. These products serve markets including commercial HVAC, pool and spa, standby and critical power and oil and gas systems. Climate Solutions produces small motors, controls and air moving solutions serving markets including residential and light commercial HVAC, water heaters and commercial refrigeration. Power Transmission Solutions manufactures, sells and services belt and chain drives, helical and worm gearing, mounted and unmounted bearings, couplings, modular plastic belts, conveying chains and components, hydraulic pump drives, large open gearing and specialty mechanical products serving markets including beverage, bulk handling, metals, special machinery, energy, aerospace and general industrial. 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 certain financial information attributable to the Company's operating segments for fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively (in millions): Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Eliminations Total Fiscal 2018 External Sales $ 1,782.0 $ 1,024.8 $ 838.8 $ — $ 3,645.6 Intersegment Sales 50.9 22.1 24.1 (97.1 ) — Total Sales 1,832.9 1,046.9 862.9 (97.1 ) 3,645.6 Gross Profit 423.4 262.7 278.5 — 964.6 Operating Expenses 296.4 128.9 174.1 — 599.4 Goodwill Impairment — 9.5 — — 9.5 Asset Impairments — 8.7 — — 8.7 Income from Operations 127.0 115.6 104.4 — 347.0 Depreciation and Amortization 67.0 21.0 54.4 — 142.4 Capital Expenditures 41.8 17.7 18.1 — 77.6 Fiscal 2017 External Sales $ 1,604.3 $ 990.6 $ 765.4 $ — $ 3,360.3 Intersegment Sales 66.5 24.9 4.5 (95.9 ) — Total Sales 1,670.8 1,015.5 769.9 (95.9 ) 3,360.3 Gross Profit 376.8 255.4 251.4 — 883.6 Operating Expenses 277.0 113.9 161.6 — 552.5 Income from Operations 99.8 141.5 89.8 — 331.1 Depreciation and Amortization 59.8 22.1 55.3 — 137.2 Capital Expenditures 39.2 13.4 12.6 — 65.2 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 378.7 245.3 241.0 — 865.0 Operating Expenses 275.4 114.5 152.6 — 542.5 Income from Operations 103.3 130.8 88.4 — 322.5 Depreciation and Amortization 74.7 24.4 56.3 — 155.4 Capital Expenditures 36.6 15.0 13.6 — 65.2 The following table presents identifiable assets information attributable to the Company's operating segments as of December 29, 2018 , December 30, 2017 , and December 31, 2016 (in millions): Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Total Identifiable Assets as of December 29, 2018 $ 2,108.0 $ 907.7 $ 1,608.1 $ 4,623.8 Identifiable Assets as of December 30, 2017 1,854.1 909.9 1,624.2 4,388.2 Identifiable Assets as of December 31, 2016 1,872.7 881.8 1,604.0 4,358.5 The following sets forth net sales by country in which the Company operates for fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively (in millions): Net Sales 2018 2017 2016 United States $ 2,402.9 $ 2,267.2 $ 2,212.6 Rest of the World 1,242.7 1,093.1 1,011.9 Total $ 3,645.6 $ 3,360.3 $ 3,224.5 US net sales for fiscal 2018 , fiscal 2017 and fiscal 2016 represented 65.9% , 67.5% and 68.6% 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 2018 and fiscal 2017 , respectively (in millions): Long-lived Assets 2018 2017 United States $ 242.7 $ 263.6 Mexico 139.7 136.3 China 90.2 99.5 Rest of the World 142.9 123.6 Total $ 615.5 $ 623.0 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. 29, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Debt and Bank Credit Facilities | Debt and Bank Credit Facilities The Company's indebtedness as of December 29, 2018 and December 30, 2017 was as follows (in millions): December 29, December 30, Term Facility $ 810.0 $ — Senior Notes 400.0 500.0 Multicurrency Revolving Facility 98.4 — Prior Term Facility — 621.1 Prior Multicurrency Revolving Facility — 19.7 Other 4.9 5.7 Less: Debt Issuance Costs (6.2 ) (5.4 ) Total 1,307.1 1,141.1 Less: Current Maturities 0.5 101.2 Non-Current Portion $ 1,306.6 $ 1,039.9 Credit Agreement In connection with the Company's acquisition of the Power Transmission Solutions business of Emerson Electric Co. on January 30, 2015 (the "PTS Acquisition"), the Company entered into a Credit Agreement (the “Prior 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 “Prior Term Facility”) and (ii) a 5 -year unsecured multicurrency revolving facility in the principal amount of $500.0 million (the “Prior Multicurrency Revolving Facility”), including a $100 million letter of credit sub facility available for general corporate purposes. Borrowings under the Credit Agreement bore 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. On August 27, 2018 , the Company replaced the Prior Credit Agreement by entering into an Amended and Restated 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 $900.0 million (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 $50.0 million letter of credit sub facility, available for general corporate purposes. 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 Term Facility was drawn in full on August 27, 2018 with the proceeds settling the amounts owed under the Prior Term Facility and Prior Multicurrency Revolving Facility. The Term Facility requires quarterly amortization at a rate starting at 5.0% per annum, increasing to 7.5% per annum after three years and further increasing to 10.0% per annum for the last years of the Term Facility, unless previously prepaid. The weighted average interest rate on the Term Facility and Prior Term Facility was 3.4% and 2.6% for the fiscal years ended December 29, 2018 and December 30, 2017 , respectively. The Credit Agreement requires the Company to 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. The Company repaid $90.0 million under the Term Facility in fiscal 2018 and $177.0 million under the Prior Term Facility in fiscal 2017 . As of December 29, 2018 the Company had borrowings under the Multicurrency Revolving Facility in the amount of $98.4 million , $0.4 million of standby letters of credit, and $401.2 million of available borrowing capacity. The average daily balance in borrowings under the Multicurrency Revolving Facility and Prior Multicurrency Revolving Facility was $171.5 million and $111.2 million , respectively, and the weighted average interest rate on the Multicurrency Revolving Facility and Prior Multicurrency Revolving Facility was 3.3% and 2.6% for the fiscal years ended December 29, 2018 and December 30, 2017 , respectively. 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. Senior Notes As of December 29, 2018 , the Company had $400.0 million of unsecured senior notes (the “Notes”) outstanding. The Notes consist of $400.0 million in senior notes in a private placement which were issued in five tranches with maturities from ten to twelve years and carry fixed interest rates. As of December 29, 2018 , $400.0 million of the Notes are included in Long-Term Debt on the Consolidated Balance Sheets. Details on the Notes as of December 29, 2018 were (in millions): Principal Interest Rate Maturity 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 Total $ 400.0 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 29, 2018 . Other Notes Payable As of December 29, 2018 , other notes payable of $4.9 million were outstanding with a weighted average interest rate of 5.0% . As of December 30, 2017 , other notes payable of $5.7 million were outstanding with a weighted average interest rate of 5.7% . Other Disclosures Based on rates for instruments with comparable maturities and credit quality, which are classified as Level 2 inputs (see also Note 14), the approximate fair value of the Company's total debt was $1,323.6 million and $1,165.4 million as of December 29, 2018 and December 30, 2017 , respectively. Maturities of long-term debt, excluding debt issuance costs, are as follows (in millions): Year Amount of Maturity 2019 $ 0.5 2020 22.9 2021 286.7 2022 79.2 2023 921.4 Thereafter 2.6 Total $ 1,313.3 |
Retirement and Post Retirement
Retirement and Post Retirement Health Care Plans | 12 Months Ended |
Dec. 29, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [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 $10.1 million , $9.3 million , and $8.7 million in fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. Company contributions to non-US defined contribution plans were $11.8 million , $9.4 million and $10.4 million in fiscal 2018 , fiscal 2017 , and fiscal 2016 , respectively. Beginning in fiscal 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. 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 the calendar year end of each year. The Company's target allocation, target return and actual weighted-average asset allocation by asset category are as follows: Target Actual Allocation Allocation Return 2018 2017 Equity Investments 73% 6.5 - 8.3% 68% 71% Fixed Income 22% 3.7 - 6.1% 27% 24% Other 5% 5.4% 5% 5% 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): 2018 2017 Change in Projected Benefit Obligation: Obligation at Beginning of Period $ 278.0 $ 256.9 Service Cost 7.3 7.2 Interest Cost 9.3 9.3 Actuarial (Gain) Loss (14.9 ) 16.2 Less: Benefits Paid 13.3 13.2 Foreign Currency Translation (1.3 ) 1.6 Obligation at End of Period $ 265.1 $ 278.0 Change in Fair Value of Plan Assets: Fair Value of Plan Assets at Beginning of Period 185.3 160.3 Actual Return on Plan Assets (8.2 ) 28.7 Employer Contributions 10.9 8.6 Less: Benefits Paid 13.3 13.2 Foreign Currency Translation (0.7 ) 0.9 Fair Value of Plan Assets at End of Period $ 174.0 $ 185.3 Funded Status $ (91.1 ) $ (92.7 ) The funded status as of December 29, 2018 included domestic plans of $82.4 million and international plans of $8.7 million . The funded status as of December 30, 2017 included domestic plans of $83.7 million and international plans of $9.0 million . 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 29, 2018 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 3.9 $ 3.9 $ — $ — Common Stocks: Domestic Equities 22.4 22.4 — — International Equities 13.7 13.7 — — Mutual Funds: US Equity Funds 24.8 24.8 — — International Equity Funds 2.5 2.5 — — Balanced Funds 8.5 8.5 — — Fixed Income Funds 17.3 17.3 — — Other 1.5 1.5 — — Real Estate Fund 10.3 — — 10.3 $ 104.9 $ 94.6 $ — $ 10.3 Investments Measured at Net Asset Value 69.1 Total $ 174.0 December 30, 2017 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 4.4 $ 4.4 $ — $ — Common Stocks: Domestic Equities 27.1 27.1 — — International Equities 14.6 14.6 — — Mutual Funds: US Equity Funds 25.4 25.4 — — International Equity Funds 19.0 19.0 — — Balanced Funds 8.3 8.3 — — Fixed Income Funds 15.1 15.1 — — Other 1.5 1.5 — — Real Estate Fund 9.6 — — 9.6 $ 125.0 $ 115.4 $ — $ 9.6 Investments Measured at Net Asset Value 60.3 Total $ 185.3 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 29, 2018 and December 30, 2017 (in millions): 2018 2017 Common Collective Trust Funds $ 61.7 $ 51.7 Global Emerging Markets Fund Limited Partnership 7.4 8.6 Total $ 69.1 $ 60.3 The common collective trust funds are investments in the Northern Trust Collective S&P 500 Index Fund, the Northern Trust Collective Aggregate Bond Index Fund and the American Century Non-US Growth 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 American Century Non-US Growth Fund is broadly invested in a diversified portfolio of non-US stocks. 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 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 29, 2018 and December 30, 2017 (in millions): 2018 2017 Beginning Balance $ 9.6 $ 10.0 Net Purchases (Sales) 0.6 (0.5 ) Net Gains 0.1 0.1 Ending Balance $ 10.3 $ 9.6 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 29, 2018 (in millions): Fair Value Significant Unobservable Inputs $10.3 Exit Capitalization Rate 4.9% to 7.0% Discount Rate 6.6% to 7.8% 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 30, 2017 (in millions): Fair Value Significant Unobservable Inputs $9.6 Exit Capitalization Rate 4.9% to 7.0% Discount Rate 6.6% to 8.0% Funded Status and Expense The Company recognized the funded status of its defined benefit pension plans on the Consolidated Balance Sheets as follows (in millions): 2018 2017 Accrued Compensation and Employee Benefits $ 3.4 $ 2.9 Pension and Other Post Retirement Benefits 87.7 89.8 Total $ 91.1 $ 92.7 Amounts Recognized in Accumulated Other Comprehensive Loss Net Actuarial Loss $ 52.3 $ 51.3 Prior Service Cost 1.4 1.0 Total $ 53.7 $ 52.3 The accumulated benefit obligation for all defined benefit pension plans was $244.0 million and $251.7 million as of December 29, 2018 and December 30, 2017 , respectively. The accumulated benefit obligation exceeded plan assets for all pension plans as of December 29, 2018 and December 30, 2017 . The following weighted average assumptions were used to determine the projected benefit obligation as of December 29, 2018 and December 30, 2017 , respectively: 2018 2017 Discount Rate 4.4% 3.8% 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 fiscal years ended December 29, 2018 and December 30, 2017 . 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): 2018 2017 2016 Service Cost $ 7.3 $ 7.2 $ 8.1 Interest Cost 9.3 9.3 9.8 Expected Return on Plan Assets (11.9 ) (11.2 ) (11.9 ) Amortization of Net Actuarial Loss 3.5 2.3 3.1 Amortization of Prior Service Cost 0.2 0.2 0.2 Net Periodic Benefit Cost $ 8.4 $ 7.8 $ 9.3 Change in Obligations Recognized in OCI, Net of Tax Prior Service Cost $ 0.2 $ 0.1 $ 0.1 Net Actuarial Loss 2.7 1.5 2.0 Total Recognized in OCI $ 2.9 $ 1.6 $ 2.1 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 2019 fiscal year are $0.3 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 2018 , 2017 and 2016 , respectively. 2018 2017 2016 Discount Rate 3.8% 4.3% 4.6% Expected Long-Term Rate of Return on Assets 6.9% 7.0% 7.2% The Company made contributions to its defined benefit plan of $10.9 million and $8.6 million for the fiscal years ended December 29, 2018 and December 30, 2017 , respectively. The Company estimates that in fiscal 2019 it will make contributions in the amount of $10.4 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 2019 $ 15.4 2020 15.8 2021 16.4 2022 16.5 2023 16.9 2024-2027 88.7 Post Retirement Health Care Plan In connection with the acquisition of the Power Transmission Solutions business from Emerson Electric Co. in 2015, 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 2018 2017 Obligation at Beginning of Period $ 12.1 $ 13.8 Service Cost 0.1 0.1 Interest Cost 0.4 0.4 Actuarial Gain (2.8 ) (1.3 ) Participant Contributions 0.4 0.5 Less: Benefits Paid 1.0 1.4 Obligation at End of Period $ 9.2 $ 12.1 The Company recognized the funded status of its post retirement health care plan on the balance sheet as follows (in millions): 2018 2017 Accrued Compensation and Employee Benefits $ 0.7 $ 0.9 Pension and Other Post Retirement Benefits 8.5 11.2 Total $ 9.2 $ 12.1 Amounts Recognized in Accumulated Other Comprehensive Loss Net Actuarial (Gain) Loss $ (3.7 ) $ (0.9 ) Net periodic benefit costs for the post retirement health care plan were as follows (in millions): 2018 2017 Service Cost $ 0.1 $ 0.1 Interest Cost 0.4 0.4 Net Periodic Benefit Cost $ 0.5 $ 0.5 There was no amortization of prior service cost recognized in OCI, net of tax, for fiscal 2018 . The estimated net actuarial gain for the post retirement health care plan that will be amortized from AOCI into net periodic benefit cost during the 2019 fiscal year is $0.4 million . The following assumptions were used to determine the projected benefit obligation as of December 29, 2018 and December 30, 2017 , respectively. 2018 2017 Discount Rate 4.2% 3.5% The health care cost trend rate for fiscal 2019 is 7.6% for pre-65 participants and 5.3% for post-65 participants, decreasing to 4.5% in fiscal 2026, the year that the health care cost trend rate reaches the assumed ultimate rate. The health care cost trend rate for fiscal 2018 is 8.0% for pre-65 participants and 5.4% for post-65 participants, decreasing to 4.5% in fiscal 2026. A one percentage point change in the health care cost trend rate assumption would have an immaterial impact on both the benefit obligation and on post retirement benefits expense. The Company contributed $0.6 million and $0.9 million to the post retirement health care plan in fiscal 2018 and fiscal 2017 , respectively. The Company estimates that in fiscal 2019 it will make contributions of $0.7 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 2019 $ 0.7 2020 0.8 2021 0.9 2022 0.9 2023 0.9 2024-2027 3.8 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock The Company acquired and retired 1,652,887 shares of its common stock in fiscal 2018 , at an average cost of $77.31 per share for a total cost of $127.8 million . The Company acquired and retired 576,804 shares of its common stock in fiscal 2017 at an average cost of $78.12 per share for a total cost of $45.1 million . At a meeting of the Board of Directors in July 2018 the Company's Board of Directors approved the extinguishment of the existing 3.0 million share repurchase program approved in November 2013 and replaced it with an authorization to purchase up to $250.0 million in shares. There is approximately $196.9 million in common stock available for repurchase under this program as of December 29, 2018 . Share-Based Compensation The Company recognized approximately $16.9 million , $13.6 million and $13.3 million in share-based compensation expense in fiscal years 2018 , 2017 and 2016 , respectively. The total income tax benefit recognized in the Consolidated Statements of Income for share-based compensation expense was $4.1 million , $5.2 million , and $5.1 million in fiscal years 2018 , 2017 and 2016 , 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 $12.8 million , $11.9 million , and $11.3 million in fiscal years 2018 , 2017 and 2016 , respectively. On October 10, 2018, the Company entered into a retirement agreement with the CEO resulting in the modification of the CEO's unvested awards. The Company expects to recognize the modified award values over the modified service term. The modification increased the amount of unrecognized compensation cost and reduced the weighted average period in which the Company expects to recognize the unrecognized compensation cost. Total unrecognized compensation cost related to share-based compensation awards was approximately $19.5 million , net of estimated forfeitures, which the Company expects to recognize over a weighted average period of approximately 1.8 years as of December 29, 2018 . During 2018, the Company's shareholders approved the 2018 Equity Incentive Plan ("2018 Plan"). The 2018 Plan authorizes the issuance of 2.1 million shares of common stock, plus the number of shares reserved under the prior 2013 Equity Incentive Plan that are not the subject of outstanding awards for equity-based awards and terminates any further grants under prior equity plans. Approximately 2.6 million shares were available for future grant or payment under the 2018 Plan as of December 29, 2018 . Options and Stock Appreciation Rights The Company uses stock settled stock appreciation rights (“SARs”) as a form of share-based incentive awards. SARs are the right to receive stock in an amount equal to the appreciation in value of a share of stock over the base price per share that 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. For fiscal years ended December 29, 2018 , December 30, 2017 , and December 31, 2016 , expired and canceled shares were immaterial. The table below presents share-based compensation activity for the fiscal years ended 2018 , 2017 and 2016 (in millions): 2018 2017 2016 Total Intrinsic Value of Share-Based Incentive Awards Exercised $5.2 $4.3 $2.5 Cash Received from Stock Option Exercises — 0.4 0.5 Total Fair Value of Share-Based Incentive Awards Vested 3.9 4.3 4.9 The weighted average assumptions used in the Company's Black-Scholes valuation related to grants for SARs were as follows: 2018 2017 2016 Per Share Weighted Average Fair Value of Grants $22.73 $23.31 $15.22 Risk-Free Interest Rate 2.9% 2.1% 1.4% Expected Life (Years) 7.0 7.0 7.0 Expected Volatility 27.8% 28.6% 29.6% Expected Dividend Yield 1.4% 1.3% 1.7% 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 2018 : Number of Shares Under Options and SARs Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding as of December 30, 2017 1,601,791 $ 66.46 Granted 193,357 77.60 Exercised (249,324) 57.54 Forfeited (5,206) 70.30 Expired (1,250) 54.28 Outstanding as of December 29, 2018 1,539,368 $ 69.31 5.6 $ 16.0 Exercisable as of December 29, 2018 928,987 $ 66.61 3.9 $ 12.0 Compensation expense recognized related to options and SARs was $4.7 million for fiscal December 29, 2018 . As of December 29, 2018 , there was $6.4 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 3.1 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 ("RSAs") and restricted stock units ("RSUs") 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. Following is the summary of RSAs activity for fiscal 2018 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested RSAs as of December 30, 2017 13,941 $ 80.70 0.4 Granted 16,490 74.68 Vested (13,941) 80.70 Forfeited (830) 80.25 Unvested RSAs as of December 29, 2018 15,660 $ 74.38 0.4 The weighted average grant date fair value of awards granted was $74.68 , $ 80.70 and $57.43 in fiscal years 2018 , 2017 and 2016 , respectively. RSAs vest on the one year 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 $1.2 million for fiscal 2018 . As of December 29, 2018 , 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 the summary of RSUs activity for fiscal 2018 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested RSUs as of December 30, 2017 260,533 $ 70.81 1.7 Granted 78,140 74.51 Vested (98,636) 76.25 Forfeited (5,213) 69.71 Unvested RSUs as of December 29, 2018 234,824 $ 69.78 1.6 The weighted average grant date fair value of awards granted was $74.51 , $80.48 and $57.50 in fiscal years 2018 , 2017 and 2016 , 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 $7.8 million for fiscal 2018 . As of December 29, 2018 , there was $6.8 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 1.6 years. Performance Share Units Performance share unit ("PSUs") 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 , and vest three years from the grant date. The PSUs have performance criteria based on a return on invested capital metric or they have performance criteria using returns relative to the Company's peer group. 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 less NPV of dividends as of the grant date depending on the performance criteria for the award. The assumptions used in the Company's Monte Carlo simulation related to grants for performance share units were as follows: December 29, December 30, Risk-free interest rate 2.7% 1.6% Expected life (years) 3.0 3.0 Expected volatility 25.0% 24.0% Expected dividend yield 1.4% 1.3% Following is the summary of PSUs activity for fiscal 2018 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested PSUs as of December 30, 2017 155,116 $ 70.43 2.0 Granted 50,659 83.80 Vested (1,359) 57.43 Forfeited (36,576) 83.55 Unvested PSUs as of December 29, 2018 167,840 $ 71.71 1.8 The weighted average grant date fair value of awards granted was $83.80 , $90.82 and $51.84 in fiscal years 2018 , 2017 and 2016 , 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 $3.2 million for fiscal 2018 . Total unrecognized compensation expense for all PSUs granted as of December 29, 2018 was $5.8 million and it is expected to be recognized as a charge to earnings over a weighted average period of 1.8 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before taxes consisted of the following (in millions): 2018 2017 2016 United States $ 121.5 $ 147.4 $ 143.4 Foreign 170.7 129.8 123.0 Total $ 292.2 $ 277.2 $ 266.4 The provision for income taxes is summarized as follows (in millions): 2018 2017 2016 Current Federal $ 4.5 $ 36.9 $ 23.1 State 0.8 (0.3 ) 3.5 Foreign 37.9 32.2 30.4 $ 43.2 $ 68.8 $ 57.0 Deferred Federal $ 16.6 $ (7.2 ) $ 5.6 State 2.1 2.2 1.8 Foreign (5.5 ) (4.7 ) (7.3 ) 13.2 (9.7 ) 0.1 Total $ 56.4 $ 59.1 $ 57.1 On December 22, 2017 , the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law revising the US corporate income tax. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017 , the elimination of certain deductions and imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries. In December 2017 , the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows the Company to record provisional amounts if the accounting assessment is incomplete for impacts of the Act, with the requirement that the accounting be finalized in a period not to exceed one year from the date of enactment. The primary impacts of the Act reflected in the 2017 Consolidated Financial Statements relate to the remeasurement of deferred tax assets and liabilities resulting from the change in the corporate tax rate; a one-time mandatory transition tax on undistributed earnings of foreign affiliates; and deferred taxes in connection with a change in the Company’s intent to permanently reinvest the historical undistributed earnings of its foreign affiliates. In the period ended December 30, 2017 , the Company recorded a provisional net $1.0 million reduction in tax expense. The benefit recognized related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse was $51.0 million . The expense recognized related to the one-time tax on the mandatory deemed repatriation of foreign earnings was $40.0 million of which the Company elected to pay the one-time tax over a period of eight years. The Company also recognized an expense of $10.0 million for local withholding taxes on foreign earnings not deemed permanently reinvested. These provisional amounts have been updated as the Company completed its assessment of the Act to $52.7 million benefit for the remeasurement of deferred tax assets and liabilities and $29.8 million expense for the one-time tax on the mandatory deemed repatriation of foreign earnings. The local withholding taxes on foreign earnings not deemed permanently invested has been updated to $13.3 million . These adjustments were reflected in the 2018 Consolidated Financial Statements. For purposes of SAB 118, the Company considers the accounting for the income tax impacts of the Act complete. The Act also subjects US shareholders to tax on Global Intangible Low Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for GILTI, states than an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. The Company has elected to recognize the tax on GILTI as an expense in the period in which the tax is incurred. As of December 29, 2018 , the Company has included GILTI related to current year earnings only in its annual effective tax rate and has not provided additional GILTI on deferred items. A reconciliation of the statutory federal income tax rate and the effective tax rate reflected in the consolidated statements of income follows: 2018 2017 2016 Federal Statutory Rate 21.0% 35.0% 35.0% State Income Taxes, Net of Federal Benefit 1.1% 0.3% 1.5% Domestic Production Activities Deduction —% (1.0)% (1.1)% Foreign Rate Differential - China 0.9% (2.1)% (2.0)% Foreign Rate Differential - All Other (1.4)% (4.3)% (6.0)% Research and Development Credit (2.5)% (3.0)% (2.3)% Valuation Allowance (0.3)% (0.6)% —% Tax Cuts and Jobs Act of 2017 (1.3)% (0.4)% —% Tax on Repatriation 1.3% —% —% Adjustments to Tax Accruals and Reserves —% (1.9)% 0.7% Other 0.5% (0.7)% (4.4)% Effective Tax Rate 19.3% 21.3% 21.4% Deferred taxes arise primarily from differences in amounts reported for tax and financial statement purposes. The Company's net deferred tax liability was $(114.1) million as of December 29, 2018 , classified on the consolidated Balance Sheet as a net non-current deferred tax asset of $34.2 million and a net non-current deferred income tax liability of $(148.3) million . As of December 30, 2017 , the Company's net deferred tax liability was $(106.8) million classified on the consolidated Balance Sheet as a net non-current deferred income tax benefit of $28.5 million and a net non-current deferred income tax liability of $(135.3) million . The components of this net deferred tax liability are as follows (in millions): December 29, December 30, Accrued Employee Benefits $ 53.9 $ 53.4 Bad Debt Allowances 2.2 2.3 Warranty Accruals 3.6 3.1 Inventory 14.6 12.9 Accrued Liabilities (8.0 ) (5.3 ) Derivative Instruments 1.8 (4.3 ) Tax Loss Carryforward 13.1 12.9 Valuation Allowance (4.9 ) (5.9 ) Other 14.0 1.2 Deferred Tax Assets 90.3 70.3 Property Related (32.2 ) (26.2 ) Intangible Items (172.2 ) (150.9 ) Deferred Tax Liabilities (204.4 ) (177.1 ) Net Deferred Tax Liability $ (114.1 ) $ (106.8 ) Following is a reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions): 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 Gross Increases from Prior Period Tax Positions — Gross Increases from Current Period Tax Positions 2.7 Settlements with Taxing Authorities (5.3 ) Lapse of Statute of Limitations (0.7 ) Unrecognized Tax Benefits, December 30, 2017 $ 6.7 Gross Increases from Prior Period Tax Positions — Gross Increases from Current Period Tax Positions 0.3 Settlements with Taxing Authorities (0.1 ) Lapse of Statute of Limitations (0.4 ) Unrecognized Tax Benefits, December 29, 2018 $ 6.5 Unrecognized tax benefits as of December 29, 2018 amount to $6.5 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 years 2018 , 2017 and 2016 , the Company recognized approximately $0.2 million , $(0.2) million and $0.2 million in net interest (income) expense, respectively. The Company had approximately $1.9 million , $1.7 million and $1.9 million of accrued interest as of December 29, 2018 , December 30, 2017 and December 31, 2016 , respectively. Due to statute expirations, approximately $0.4 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 2013, and the Company is no longer subject to non-US income tax examinations by tax authorities for years prior to 2011. As of December 29, 2018 , the Company had approximately $13.1 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. As of December 30, 2017 , the Company had approximately $12.9 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 $4.9 million and $5.9 million as of December 29, 2018 and December 30, 2017 , 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 2020 and are renewable subject to certain conditions with which the Company expects to comply. In 2018 , these holidays decreased the Provision for Income Taxes by $4.7 million . The Company continues to treat approximately $103.5 million of earnings from certain foreign entities as permanently reinvested and has not recorded a deferred tax liability for the local withholding taxes of approximately $15.8 million on those earnings. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 ventilation units are subject to product safety requirements and other potential regulation of their performance by government agencies such as the US Consumer Product Safety Commission (“CPSC”). The claims generally allege that the ventilation units were the cause of fires. The Company has recorded an estimated liability for incurred claims. Based on the current facts, the Company cannot assure that these claims, individually or in the aggregate, will not have a material adverse effect on its subsidiary's financial condition. The Company's subsidiary cannot reasonably predict the outcome of these claims, the nature or extent of any CPSC or other remedial actions, if any, that the Company's subsidiary may need 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, results of operations or 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 fiscal 2018 and fiscal 2017 (in millions): December 29, December 30, Beginning Balance $ 16.0 $ 20.3 Less: Payments 20.1 23.5 Provisions 20.2 19.0 Acquisitions 0.3 — Held for Sale (1.4 ) — Translation Adjustments (0.2 ) 0.2 Ending Balance $ 14.8 $ 16.0 These liabilities are included in Other Accrued Expenses and Other Noncurrent Liabilities on the Consolidated Balance Sheets. |
Leases And Rental Commitments
Leases And Rental Commitments | 12 Months Ended |
Dec. 29, 2018 | |
Leases, Operating [Abstract] | |
Leases and Rental Commitments | Leases and Rental Commitments Rental expenses charged to operations amounted to $35.5 million in fiscal 2018 , $35.1 million in fiscal 2017 and $31.9 million in fiscal 2016 . The Company has future minimum rental commitments under operating leases as shown in the following table (in millions): Year Expected Payments 2019 $ 30.8 2020 24.7 2021 19.2 2022 11.7 2023 6.5 Thereafter 16.2 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 29, 2018 | |
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 utilized 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 Consolidated Balance Sheets. 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 29, 2018 or December 30, 2017 . Cash flow hedges 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. As of December 29, 2018 and December 30, 2017 , the Company had $(2.1) million and $(2.0) 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. As of December 29, 2018 , the Company had the following commodity forward contracts outstanding (with maturities extending through March 2020 ) to hedge forecasted purchases of commodities (notional amounts expressed in terms of the dollar value of the hedged item (in millions): December 29, 2018 December 30, 2017 Copper $ 95.4 $ 80.8 Aluminum 10.0 7.7 As of December 29, 2018 , the Company had the following currency forward contracts outstanding (with maturities extending through April 2021 ) to hedge forecasted foreign currency cash flows (in millions): December 29, 2018 December 30, 2017 Mexican Peso $ 182.3 $ 137.1 Chinese Renminbi 125.5 214.9 Indian Rupee 44.0 35.8 Euro 225.7 26.4 Canadian Dollar 11.4 47.7 Australian Dollar 13.2 14.9 Thai Baht 6.7 7.5 British Pound 15.3 2.7 As of December 29, 2018 , the total notional amount of the Company's receive-variable/pay-fixed interest rate swap was $88.4 million with a maturity of April 12, 2021 . Fair values of derivative instruments as of December 29, 2018 and December 30, 2017 were (in millions): December 29, 2018 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Current Hedging Obligations Noncurrent Hedging Obligations Designated as Hedging Instruments: Currency Contracts $ 6.0 $ 7.2 $ 4.3 $ 1.1 Commodity Contracts 0.1 — 6.0 0.1 Not Designated as Hedging Instruments: Currency Contracts 0.6 — 0.7 — Commodity Contracts — — 0.3 — Total Derivatives $ 6.7 $ 7.2 $ 11.3 $ 1.2 December 30, 2017 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Current Hedging Obligations Noncurrent Hedging Obligations Designated as Hedging Instruments: Currency Contracts $ 11.5 $ 2.5 $ 7.9 $ 0.9 Commodity Contracts 10.8 0.7 — — Not Designated as Hedging Instruments: Currency Contracts 4.1 — 0.2 — Commodity Contracts 0.2 — — — Total Derivatives $ 26.6 $ 3.2 $ 8.1 $ 0.9 As of December 29, 2018 , the Company's interest rate swap had an immaterial balance and is not presented in the fair value amounts above. Derivatives Designated as Cash Flow Hedging Instruments The effect of derivative instruments designated as cash flow hedges on the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income for fiscal years 2018 , 2017 and 2016 were (in millions): Fiscal 2018 Interest Commodity Currency Rate Forwards Forwards Swaps Total Gain (Loss) Recognized in Other Comprehensive Income $ (17.9 ) $ 11.0 $ 1.7 $ (5.2 ) Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — 0.2 — 0.2 Gain Recognized in Cost of Sales 5.0 2.9 — 7.9 Gain Recognized in Operating Expense — 6.1 — 6.1 Gain Recognized in Interest Expense — — 1.6 1.6 Fiscal 2017 Interest Commodity Currency Rate Forwards Forwards Swaps Total Gain Recognized in Other Comprehensive Loss $ 21.7 $ 46.3 $ 0.5 $ 68.5 Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — 0.9 — 0.9 Gain (Loss) Recognized in Cost of Sales 12.2 (22.1 ) — (9.9 ) Loss Recognized in Interest Expense — — (2.8 ) (2.8 ) Fiscal 2016 Interest Commodity Currency Rate Forwards Forwards Swaps Total Gain (Loss) Recognized in Other Comprehensive 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 ) 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 not designated as cash flow hedges on the Consolidated Statements of Income for fiscal years 2018 , 2017 and 2016 were (in millions): Fiscal 2018 Commodity Forwards Currency Forwards Total Loss Recognized in Cost of Sales $ (0.5 ) $ — $ (0.5 ) Loss Recognized in Operating Expenses — (6.8 ) (6.8 ) Fiscal 2017 Commodity Forwards Currency Forwards Total Loss Recognized in Cost of Sales $ (1.1 ) $ — $ (1.1 ) Gain Recognized in Operating Expenses — 14.3 14.3 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 ) The net AOCI balance related to hedging activities of a $(5.4) million gain as of December 29, 2018 includes $(3.2) million of net deferred losses expected to be reclassified to the Consolidated Statement of Comprehensive 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 29, 2018 and December 30, 2017 . The following table presents the derivative assets and derivative liabilities presented on a net basis under enforceable master netting agreements (in millions): December 29, 2018 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 $ 6.6 $ (3.6 ) $ 3.0 Derivative Commodity Contracts 0.1 (0.1 ) — Other Noncurrent Assets: Derivative Currency Contracts 7.2 (0.6 ) 6.6 Current Hedging Obligations: Derivative Currency Contracts 5.0 (3.6 ) 1.4 Derivative Commodity Contracts 6.3 (0.1 ) 6.2 Noncurrent Hedging Obligations: Derivative Currency Contracts 1.1 (0.6 ) 0.5 Derivative Commodity Contracts 0.1 — 0.1 December 30, 2017 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 $ 15.6 $ (5.9 ) $ 9.7 Derivative Commodity Contracts 11.0 — 11.0 Other Noncurrent Assets: Derivative Currency Contracts 2.5 (0.7 ) 1.8 Derivative Commodity Contracts 0.7 — 0.7 Current Hedging Obligations: Derivative Currency Contracts 8.1 (5.9 ) 2.2 Noncurrent Hedging Obligations: Derivative Currency Contracts 0.9 (0.7 ) 0.2 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 and December 30, 2017 , respectively (in millions): December 29, 2018 December 30, 2017 Classification Assets: Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 6.6 $ 15.6 Level 2 Derivative Commodity Contracts 0.1 11.0 Level 2 Other Noncurrent Assets: Assets Held in Rabbi Trust 5.6 5.7 Level 1 Derivative Currency Contracts 7.2 2.5 Level 2 Derivative Commodity Contracts — 0.7 Level 2 Liabilities: Current Hedging Obligations: Derivative Currency Contracts 5.0 8.1 Level 2 Derivative Commodity Contracts 6.3 — Level 2 Noncurrent Hedging Obligations: Derivative Currency Contracts 1.1 0.9 Level 2 Derivative Commodity Contracts 0.1 — 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 using the LIBOR forward yield curve for an instrument 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 2018 . |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities The Company incurred restructuring and restructuring-related costs on projects beginning in 2014. Restructuring costs include employee termination and plant relocation costs. Restructuring-related costs include costs directly associated with actions resulting from the Company's 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 fiscal 2018 and fiscal 2017 (in millions): December 29, December 30, Beginning Balance $ 1.2 $ 0.6 Provision 7.7 14.1 Less: Payments 8.7 13.5 Ending Balance $ 0.2 $ 1.2 The following is a reconciliation of expenses by type for the restructuring projects in fiscal years 2018 , 2017 and 2016 (in millions): 2018 2017 2016 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ — $ 0.3 $ 0.3 $ 2.6 $ 1.7 $ 4.3 $ 0.5 $ 0.3 $ 0.8 Facility Related Costs 2.3 3.4 5.7 4.3 0.9 5.2 2.9 0.3 3.2 Other Expenses 0.8 0.8 1.6 3.9 — 3.9 0.8 0.9 1.7 Total Restructuring Costs $ 3.1 $ 4.5 $ 7.6 $ 10.8 $ 2.6 $ 13.4 $ 4.2 $ 1.5 $ 5.7 Restructuring-Related Costs: Other Employment Benefit Expenses $ 0.1 $ — $ 0.1 $ 0.7 $ — $ 0.7 $ 0.5 $ 0.6 $ 1.1 Total Restructuring-Related Costs $ 0.1 $ — $ 0.1 $ 0.7 $ — $ 0.7 $ 0.5 $ 0.6 $ 1.1 Total Restructuring and Restructuring-Related Costs $ 3.2 $ 4.5 $ 7.7 $ 11.5 $ 2.6 $ 14.1 $ 4.7 $ 2.1 $ 6.8 The following table shows the allocation of Restructuring Expenses by segment for fiscal years 2018 , 2017 and 2016 (in millions): Total Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Restructuring Expenses - 2018 $ 7.7 $ 5.6 $ 1.8 $ 0.3 Restructuring Expenses - 2017 $ 14.1 $ 10.9 $ 2.5 $ 0.7 Restructuring Expenses - 2016 $ 6.8 $ 2.5 $ 2.6 $ 1.7 The Company's current restructuring activities are expected to continue into fiscal 2019 . The Company expects to record aggregate future charges of approximately $2.2 million related to announced projects as of year-end fiscal 2018 , which includes $0.8 million of employee termination expenses and $1.4 million of facility related and other costs. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 2017 2018 2017 2018 2017 2018 2017 Net Sales $ 878.8 $ 813.5 $ 959.7 $ 869.2 $ 925.4 $ 856.9 $ 881.7 $ 820.7 Gross Profit 234.9 215.5 247.4 222.8 242.6 226.9 239.7 218.4 Income from Operations 88.2 75.0 99.6 83.2 69.4 94.3 89.8 78.6 Net Income 59.3 47.6 67.3 54.3 52.7 63.6 56.5 52.6 Net Income Attributable to Regal Beloit Corporation 58.4 46.3 65.9 53.0 51.3 62.2 55.6 51.5 Earnings Per Share Attributable to Regal Beloit Corporation (1) Basic 1.32 1.03 1.51 1.19 1.18 1.40 1.29 1.16 Assuming Dilution 1.31 1.02 1.50 1.18 1.17 1.39 1.28 1.15 Weighted Average Number of Shares Outstanding Basic 44.2 44.8 43.8 44.7 43.4 44.4 43.1 44.3 Assuming Dilution 44.5 45.1 44.1 45.1 43.8 44.8 43.4 44.7 Net Sales Commercial and Industrial Systems $ 414.0 $ 381.2 $ 469.0 $ 407.4 $ 462.3 $ 408.0 $ 436.7 $ 407.7 Climate Solutions 259.9 247.7 277.3 270.5 255.4 256.0 232.2 216.4 Power Transmission Solutions 204.9 184.6 213.4 191.3 207.7 192.9 212.8 196.6 Income from Operations Commercial and Industrial Systems 29.1 25.7 30.5 20.6 35.3 29.5 32.1 24.0 Climate Solutions 32.3 31.4 44.0 40.4 6.0 39.1 33.3 30.6 Power Transmission Solutions 26.8 17.9 25.1 22.2 28.1 25.7 24.4 24.0 (1) 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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events In December 2018, the Company signed an agreement to sell its engineered drives and controls systems business included in the Company's Commercial and Industrial Systems segment. This transaction closed in January 2019. Also in January 2019, the Company signed an agreement to sell its capacitors business which had been included in the Company's Climate Solutions segment. This transaction is expected to close in the second quarter of 2019. The assets and liabilities related to these businesses have been reclassified to Assets of Businesses Held for Sale and Liabilities of Businesses Held for Sale on the Company's Consolidated Balance Sheets as of December 29, 2018 . These businesses are being divested as they are considered non-core to the Company's operations. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 29, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II 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 2018 $ 11.3 6.9 (2.1 ) (2.8 ) $ 13.3 Fiscal 2017 11.5 1.3 (2.8 ) 1.3 11.3 Fiscal 2016 11.3 1.6 (1.2 ) (0.2 ) 11.5 (a) Deductions consist of write offs charged against the allowance for doubtful accounts. (b) Adjustments consist of balances moved to held for sale and translation. |
Accounting Policies (Policy)
Accounting Policies (Policy) | 12 Months Ended |
Dec. 29, 2018 | |
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. |
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 recognizes revenue from the sale of electric motors, electrical motion controls, power generation and power transmission products. The Company recognizes revenue when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. For a limited number of contracts, the Company recognizes revenue over time in proportion to costs incurred. The pricing of products sold is generally supported by customer purchase orders, and accounts receivable collection is reasonably assured. 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 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 2018 , fiscal 2017 or fiscal 2016 . Nature of Goods and Services The Company sells products with multiple applications as well as customized products that have a single application such as those manufactured for its OEM’s customers. The Company reports in three operating segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. See Note 6 for a description of the different segments. Nature of Performance Obligations The Company’s contracts with customers typically consist of purchase orders, invoices and master supply agreements. At contract inception, across all three segments, the Company assesses the goods and services promised in its sales arrangements with customers and identifies a performance obligation for each promise to transfer to the customer a good or service that is distinct. The Company’s primary performance obligations consist of product sales and customized systems/solutions. Product: The nature of products varies from segment to segment but across all segments, individual products are generally not integrated and represent separate performance obligations. Customized systems/solutions: The Company provides customized systems/solutions which consist of multiple products engineered and designed to specific customer specification, combined or integrated into one combined solution for a specific customer application. The goods are transferred to the customer and revenue is typically recognized over time as the performance obligations are satisfied. When Performance Obligations are Satisfied For performance obligations related to substantially all of the Company's product sales, the Company determines that the customer obtains control upon shipment and recognizes revenue accordingly. Once a product has shipped, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from the asset. The Company considers control to have transferred upon shipment because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset. For a limited number of contracts, the Company transfers control and recognizes revenue over time. The Company satisfies its performance obligations over time and the Company uses a cost-based input method to measure progress. In applying the cost-based method of revenue recognition, the Company uses actual costs incurred to date relative to the total estimated costs for the contract in conjunction with the customer's commitment to perform in determining the amount of revenue and cost to recognize. The Company has determined that the cost-based input method provides a faithful depiction of the transfer of goods to the customer. Payment Terms The arrangement with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchased. Payment terms vary by customer but typically range from due upon delivery to 120 days after delivery. For contracts recognized at a point in time, revenue and billing typically occur simultaneously. The Company generally has payment terms with its customers of one year or less and has elected the practical expedient applicable to such contracts not to consider the time value of money. For contracts recognized using the cost-based input method, revenue recognized in excess of customer billings and billings in excess of revenue recognized are reviewed to determine the net asset or net liability position and classified as such on the Consolidated Balance Sheet. Returns, Refunds, and Warranties The Company’s contracts do not explicitly offer a “general” right of return to its customers (e.g. customers ordered excess products and return unused items). Warranties are classified as either assurance type or service type warranties. A warranty is considered an assurance type warranty if it provides the customer with assurance that the product will function as intended. A warranty that goes above and beyond ensuring basic functionality is considered a service type warranty. The Company generally only offers limited warranties which are considered to be assurance type warranties and are not accounted for as separate performance obligations. Customers generally receive repair or replacement on products that do not function to specification. Estimated product warranties are provided for specific product groups and the Company accrues for estimated future warranty cost in the period in which the sale is recognized. The Company estimates the accrual requirements based on historical warranty loss experience and the cost is included in Cost of Sales. Volume Rebates In some cases, the nature of the Company’s contract may give rise to variable consideration including volume based sales incentives. If the customer achieves specific sales targets, they are entitled to rebates. The Company estimates the projected amount of the rebates that will be achieved and recognizes the estimated costs as a reduction to Net Sales as revenue is recognized. |
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 2018 , 2017 and 2016 , research and development costs were $29.3 million , $29.9 million and $29.5 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. |
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. |
Assets Held for Sale | Assets Held for Sale In December 2018, the Company signed an agreement to sell its engineered drives and controls systems business included in the Company's Commercial and Industrial Systems segment. This transaction closed in January 2019. Also in January 2019, the Company signed an agreement to sell its capacitors business which had been included in the Company's Climate Solutions segment. This transaction is expected to close in the second quarter of 2019. The assets and liabilities related to these businesses have been reclassified to Assets of Businesses Held for Sale and Liabilities of Businesses Held for Sale on the Company's Consolidated Balance Sheets as of December 29, 2018 . These businesses are being divested as they are considered non-core to the Company's operations. |
Inventories | Inventories are stated at cost, which is not in excess of market. Cost for approximately 54% of the Company's inventory as of December 29, 2018 and 52% as of December 30, 2017 was determined using the last-in, first-out method. If all inventories were valued on the first-in, first-out method, they would have increased by $65.5 million and $46.0 million as of December 29, 2018 and December 30, 2017 , 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. |
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. The Company performed quantitative impairment testing for all reporting units in 2018 . The Company performs the required annual goodwill impairment testing 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 reporting unit fair values for the Company's fiscal 2018 and fiscal 2017 impairment testing exceeded the carrying values by at least 10% for all of its reporting units. 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. On July 31, 2018 , the Company received notification from a customer of its Hermetic Climate business that it would wind down operations. The Hermetic Climate business accounted for sales of $52.6 million and $60.4 million for the fiscal years ended 2018 and 2017 , respectively. As a result of this notification, the Company accelerated its plans to exit this business. The Company will be winding down its operations over the next few months and as a result, the Company recognized exit and exit related charges of $34.9 million during fiscal 2018 . The charges included goodwill impairment of $9.5 million , customer relationship intangible asset impairment of $5.5 million , technology intangible asset impairment of $2.1 million and fixed asset impairment of $1.1 million . In addition to the impairments, the Company took charges on accounts receivable and inventory along with recognizing other expenses related to exiting the business. Intangible Assets Intangible 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. The Company recorded impairments for its customer relationship intangible asset of $5.5 million and technology intangible asset of $2.1 million due to the winding down of the Hermetic Climate business described above. 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 testing 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 fiscal 2018 and fiscal 2017 , the fair value of indefinite lived intangible assets exceeded their respective carrying value. Some of the key considerations used in the Company's 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 of the related business 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 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 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 had an impairment of $1.1 million in long-lived assets in fiscal 2018 due to the winding down of the Hermetic Climate business described above. |
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 fiscal 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 service cost component of the Company's net periodic benefit cost is included in Cost of Sales and Operating Expenses. All other components of net periodic benefit costs are included in Other Expenses, net on the Company's Consolidated Statements of Income. |
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). |
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. |
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. The fair value of pension assets and derivative instruments is determined based on the methods disclosed in Notes 8 and 14. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) , Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU addresses the income tax effects of items in Accumulated Other Comprehensive Loss (“AOCI”) which were originally recognized in other comprehensive income, rather than in income from continuing operations. Specifically, it permits a reclassification from AOCI to Retained Earnings for the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate resulting from the US tax law changes enacted in December 2017. It also requires certain disclosures about these reclassifications. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied either on a prospective basis in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the US federal corporate income tax rate in the US tax law changes are recognized. The Company elected to early adopt this standard as of April 1, 2018. During the second quarter, the Company elected to reclassify the stranded effects from the US tax law changes from AOCI to Retained Earnings on a prospective basis. As a result of the adoption of ASU 2018-02, the Company reclassified $4.6 million from AOCI to Retained Earnings. The adoption did not have a material impact on the Company's Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. The Company plans to adopt this pronouncement for its fiscal year beginning December 30, 2018. The Company is currently evaluating the impact of the pending adoption of this standard on its Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, Stock Compensation - Scope of Modification Accounting. The ASU amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under Accounting Standards Codification ("ASC") 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Prospective application is required. The Company prospectively adopted ASU 2017-09 for its fiscal year beginning on December 31, 2017 and it did not have a material impact on the Company's Consolidated Financial Statements. In February 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The ASU requires companies to present the service cost component of net periodic benefit cost in the same income statement line item as other compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization. Additionally, the ASU requires that companies present the other components of the net periodic benefit cost separately from the line item that includes the service cost and outside of any subtotal of Income from Operations. This ASU is effective for annual periods beginning after December 15, 2017. The amendments in the ASU are to be applied retrospectively for presentation in the Consolidated Statements of Income and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic post retirement benefit. A practical expedient allows the Company to use the amount disclosed for net periodic benefit costs for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company retrospectively adopted the ASU on December 31, 2017. As a result of adopting the ASU, non-service cost related net periodic benefit income of $0.5 million and $0.2 million and non-service cost related net periodic benefit costs of $1.5 million and $2.1 million were reclassified from Cost of Sales and Operating Expenses, respectively, to Other Expenses, net for the fiscal year ended December 30, 2017 and December 31, 2016 , respectively, on the Consolidated Statements of Income to conform to the current year presentation using the practical expedient allowed under this ASU. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new leasing standard establishes a right of use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. 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. In July 2018, the FASB amended its guidance by issuing ASU 2018-11 to provide an additional transition method, allowing a cumulative effect adjustment to the opening balance of retained earnings during the period of adoption. The amendment also allows lessors the option to make a policy election to treat lease and nonlease components as a single lease component under certain conditions. The Company adopted the standard as of December 30, 2018, the beginning of fiscal 2019, under the modified retrospective method in which the Company will record a cumulative effect adjustment. The Company elected the package of practical expedients permitted under the relief package within the new standard, which among other things, allows the Company to carryforward the historical lease accounting of expired or existing leases with respect to lease identification, lease classification and accounting treatment for initial direct costs as of the adoption date. The Company also elected the practical expedient related to lease versus nonlease components, allowing the Company to recognize lease and nonlease components as a single lease. The Company anticipates the adoption of the new standard will result in the recognition of ROU assets and lease liabilities of approximately $85.0 million to $105.0 million based on the present value of the remaining lease payments. As this standard is non-cash in nature, the Company does not believe the standard will have an impact on its cash flows and the impact to the results of operations is still being evaluated. The adoption is not expected to have any impact on its debt-covenant compliance under the current credit agreements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by geographical region for the fiscal year ended December 29, 2018 (in millions): Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 1,173.5 $ 891.9 $ 686.4 $ 2,751.8 Asia 269.6 39.5 24.1 333.2 Europe 177.2 50.5 96.9 324.6 Rest-of-World 161.7 42.9 31.4 236.0 Total $ 1,782.0 $ 1,024.8 $ 838.8 $ 3,645.6 |
Percentage Distribution Between Major Classes of Inventory | The major classes of inventory at year end are as follows: December 29, December 30, Raw Material and Work in Process 45% 47% Finished Goods and Purchased Parts 55% 53% |
Assets and Liabilities of Businesses Held for Sale | The table below presents the balances that were classified as Assets of Businesses Held for Sale and Liabilities of Businesses Held for Sale as of December 29, 2018 (in millions): December 29, 2018 Trade Receivables $ 19.2 Inventories 34.7 Prepaid Expenses and Other Current Assets 5.0 Property, Plant and Equipment 19.9 Intangible Assets 12.0 Goodwill 1.3 Assets of Businesses Held for Sale $ 92.1 Accounts Payable $ 8.1 Accrued Compensation and Employee Benefits 0.5 Other Accrued Expenses 7.3 Other Noncurrent Liabilities 1.1 Liabilities of Businesses Held for Sale $ 17.0 |
Property, Plant and Equipment | Property, plant and equipment by major classification was as follows (in millions): Useful Life (In Years) December 29, 2018 December 30, Land and Improvements $ 82.1 $ 78.2 Buildings and Improvements 3-50 302.8 294.5 Machinery and Equipment 3-15 971.9 986.8 Property, Plant and Equipment 1,356.8 1,359.5 Less: Accumulated Depreciation (741.3 ) (736.5 ) Net Property, Plant and Equipment $ 615.5 $ 623.0 |
Earnings Per Share Reconciliation | The following table reconciles the basic and diluted shares used in earnings per share calculations for the fiscal years ended (in millions): 2018 2017 2016 Denominator for Basic Earnings Per Share 43.6 44.6 44.7 Effect of Dilutive Securities 0.3 0.3 0.3 Denominator for Diluted Earnings Per Share 43.9 44.9 45.0 |
Accumulated Other Comprehensive Loss | The components of the ending balances of AOCI are as follows (in millions): 2018 2017 Foreign Currency Translation Adjustments $ (207.8 ) $ (140.0 ) Hedging Activities, Net of Tax of $(1.7) in 2018 and $5.4 in 2017 (5.4 ) 8.6 Pension and Post Retirement Benefits, Net of Tax of $(11.8) in 2018 and $(18.8) in 2017 (38.2 ) (32.6 ) Total $ (251.4 ) $ (164.0 ) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of assets acquired and liabilities assumed (in millions): As of April 10, 2018 Other Current Assets $ 17.2 Trade Receivables 28.0 Inventories 22.1 Property, Plant and Equipment 44.6 Intangible Assets 37.8 Goodwill 58.7 Other Noncurrent Assets 2.5 Total Assets Acquired $ 210.9 Accounts Payable 16.7 Current Liabilities 14.2 Long-Term Liabilities 10.0 Net Assets Acquired $ 170.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following information presents changes to goodwill during the periods indicated (in millions): Total Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Balance as of December 31, 2016 $ 1,453.2 $ 540.6 $ 341.8 $ 570.8 Translation Adjustments 23.9 8.2 0.6 15.1 Balance as of December 30, 2017 $ 1,477.1 $ 548.8 $ 342.4 $ 585.9 Acquisitions 58.7 58.7 — — Less: Impairment charges (9.5 ) — (9.5 ) — Less: Held for Sale (1.3 ) — (1.3 ) — Translation Adjustments (15.8 ) (8.6 ) (1.0 ) (6.2 ) Balance as of December 29, 2018 $ 1,509.2 $ 598.9 $ 330.6 $ 579.7 Cumulative Goodwill Impairment Charges $ 285.2 $ 244.8 $ 17.2 $ 23.2 |
Schedule of Gross Intangibles | Intangible assets consist of the following (in millions): Weighted Average Amortization Period (Years) December 30, 2017 Acquisition Held for Sale Impairment Charges Translation Adjustments December 29, 2018 Customer Relationships 17 $ 720.9 $ 28.3 $ (18.7 ) $ (10.8 ) $ (10.9 ) $ 708.8 Technology 14 192.3 — (32.2 ) (14.1 ) (1.5 ) 144.5 Trademarks 14 32.8 9.5 (4.0 ) — (1.3 ) 37.0 Patent and Engineering Drawings 5 16.6 — — — — 16.6 Non-Compete Agreements 8 8.5 — (1.1 ) — (0.2 ) 7.2 971.1 37.8 (56.0 ) (24.9 ) (13.9 ) 914.1 Non-Amortizable Trade Names 122.5 — — — (0.6 ) 121.9 Total Gross Intangibles $ 1,093.6 $ 37.8 $ (56.0 ) $ (24.9 ) $ (14.5 ) $ 1,036.0 |
Schedule of Accumulated Amortization | Accumulated amortization on intangible assets consists of the following: December 30, 2017 Amortization Held for Sale Impairment Charges Translation Adjustments December 29, 2018 Customer Relationships $ 249.6 $ 43.5 $ (11.1 ) $ (5.3 ) $ (4.3 ) $ 272.4 Technology 122.8 9.5 (29.1 ) (12.0 ) (1.1 ) 90.1 Trademarks 25.7 1.8 (2.7 ) — (0.6 ) 24.2 Patent and Engineering Drawings 16.6 — — — — 16.6 Non-Compete Agreements 8.4 0.1 (1.1 ) — (0.2 ) 7.2 Total Accumulated Amortization $ 423.1 $ 54.9 $ (44.0 ) $ (17.3 ) $ (6.2 ) $ 410.5 Intangible Assets, Net of Amortization $ 670.5 $ 625.5 |
Schedule of Estimated Amortization | The following table presents estimated future amortization expense (in millions): Estimated Amortization Year 2019 $ 50.9 2020 48.3 2021 43.1 2022 41.5 2023 41.4 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 , fiscal 2017 and fiscal 2016 , respectively (in millions): Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Eliminations Total Fiscal 2018 External Sales $ 1,782.0 $ 1,024.8 $ 838.8 $ — $ 3,645.6 Intersegment Sales 50.9 22.1 24.1 (97.1 ) — Total Sales 1,832.9 1,046.9 862.9 (97.1 ) 3,645.6 Gross Profit 423.4 262.7 278.5 — 964.6 Operating Expenses 296.4 128.9 174.1 — 599.4 Goodwill Impairment — 9.5 — — 9.5 Asset Impairments — 8.7 — — 8.7 Income from Operations 127.0 115.6 104.4 — 347.0 Depreciation and Amortization 67.0 21.0 54.4 — 142.4 Capital Expenditures 41.8 17.7 18.1 — 77.6 Fiscal 2017 External Sales $ 1,604.3 $ 990.6 $ 765.4 $ — $ 3,360.3 Intersegment Sales 66.5 24.9 4.5 (95.9 ) — Total Sales 1,670.8 1,015.5 769.9 (95.9 ) 3,360.3 Gross Profit 376.8 255.4 251.4 — 883.6 Operating Expenses 277.0 113.9 161.6 — 552.5 Income from Operations 99.8 141.5 89.8 — 331.1 Depreciation and Amortization 59.8 22.1 55.3 — 137.2 Capital Expenditures 39.2 13.4 12.6 — 65.2 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 378.7 245.3 241.0 — 865.0 Operating Expenses 275.4 114.5 152.6 — 542.5 Income from Operations 103.3 130.8 88.4 — 322.5 Depreciation and Amortization 74.7 24.4 56.3 — 155.4 Capital Expenditures 36.6 15.0 13.6 — 65.2 The following table presents identifiable assets information attributable to the Company's operating segments as of December 29, 2018 , December 30, 2017 , and December 31, 2016 (in millions): Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Total Identifiable Assets as of December 29, 2018 $ 2,108.0 $ 907.7 $ 1,608.1 $ 4,623.8 Identifiable Assets as of December 30, 2017 1,854.1 909.9 1,624.2 4,388.2 Identifiable Assets as of December 31, 2016 1,872.7 881.8 1,604.0 4,358.5 |
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 2018 and fiscal 2017 , respectively (in millions): Long-lived Assets 2018 2017 United States $ 242.7 $ 263.6 Mexico 139.7 136.3 China 90.2 99.5 Rest of the World 142.9 123.6 Total $ 615.5 $ 623.0 The following sets forth net sales by country in which the Company operates for fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively (in millions): Net Sales 2018 2017 2016 United States $ 2,402.9 $ 2,267.2 $ 2,212.6 Rest of the World 1,242.7 1,093.1 1,011.9 Total $ 3,645.6 $ 3,360.3 $ 3,224.5 |
Debt and Bank Credit Faciliti_2
Debt and Bank Credit Facilities (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule Of Indebtedness | The Company's indebtedness as of December 29, 2018 and December 30, 2017 was as follows (in millions): December 29, December 30, Term Facility $ 810.0 $ — Senior Notes 400.0 500.0 Multicurrency Revolving Facility 98.4 — Prior Term Facility — 621.1 Prior Multicurrency Revolving Facility — 19.7 Other 4.9 5.7 Less: Debt Issuance Costs (6.2 ) (5.4 ) Total 1,307.1 1,141.1 Less: Current Maturities 0.5 101.2 Non-Current Portion $ 1,306.6 $ 1,039.9 |
Details Of The Senior Notes | Details on the Notes as of December 29, 2018 were (in millions): Principal Interest Rate Maturity 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 Total $ 400.0 |
Maturities Of Long-Term Debt | Maturities of long-term debt, excluding debt issuance costs, are as follows (in millions): Year Amount of Maturity 2019 $ 0.5 2020 22.9 2021 286.7 2022 79.2 2023 921.4 Thereafter 2.6 Total $ 1,313.3 |
Retirement and Post Retiremen_2
Retirement and Post Retirement Health Care Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
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 2018 2017 Equity Investments 73% 6.5 - 8.3% 68% 71% Fixed Income 22% 3.7 - 6.1% 27% 24% Other 5% 5.4% 5% 5% Total 100% 7.0% 100% 100% |
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 2018 2017 Obligation at Beginning of Period $ 12.1 $ 13.8 Service Cost 0.1 0.1 Interest Cost 0.4 0.4 Actuarial Gain (2.8 ) (1.3 ) Participant Contributions 0.4 0.5 Less: Benefits Paid 1.0 1.4 Obligation at End of Period $ 9.2 $ 12.1 The following table presents a reconciliation of the funded status of the defined benefit pension plans (in millions): 2018 2017 Change in Projected Benefit Obligation: Obligation at Beginning of Period $ 278.0 $ 256.9 Service Cost 7.3 7.2 Interest Cost 9.3 9.3 Actuarial (Gain) Loss (14.9 ) 16.2 Less: Benefits Paid 13.3 13.2 Foreign Currency Translation (1.3 ) 1.6 Obligation at End of Period $ 265.1 $ 278.0 Change in Fair Value of Plan Assets: Fair Value of Plan Assets at Beginning of Period 185.3 160.3 Actual Return on Plan Assets (8.2 ) 28.7 Employer Contributions 10.9 8.6 Less: Benefits Paid 13.3 13.2 Foreign Currency Translation (0.7 ) 0.9 Fair Value of Plan Assets at End of Period $ 174.0 $ 185.3 Funded Status $ (91.1 ) $ (92.7 ) |
Schedule Of Fair Value Of Plan Assets | Pension assets by type and level are as follows (in millions): December 29, 2018 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 3.9 $ 3.9 $ — $ — Common Stocks: Domestic Equities 22.4 22.4 — — International Equities 13.7 13.7 — — Mutual Funds: US Equity Funds 24.8 24.8 — — International Equity Funds 2.5 2.5 — — Balanced Funds 8.5 8.5 — — Fixed Income Funds 17.3 17.3 — — Other 1.5 1.5 — — Real Estate Fund 10.3 — — 10.3 $ 104.9 $ 94.6 $ — $ 10.3 Investments Measured at Net Asset Value 69.1 Total $ 174.0 December 30, 2017 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 4.4 $ 4.4 $ — $ — Common Stocks: Domestic Equities 27.1 27.1 — — International Equities 14.6 14.6 — — Mutual Funds: US Equity Funds 25.4 25.4 — — International Equity Funds 19.0 19.0 — — Balanced Funds 8.3 8.3 — — Fixed Income Funds 15.1 15.1 — — Other 1.5 1.5 — — Real Estate Fund 9.6 — — 9.6 $ 125.0 $ 115.4 $ — $ 9.6 Investments Measured at Net Asset Value 60.3 Total $ 185.3 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 29, 2018 and December 30, 2017 (in millions): 2018 2017 Common Collective Trust Funds $ 61.7 $ 51.7 Global Emerging Markets Fund Limited Partnership 7.4 8.6 Total $ 69.1 $ 60.3 |
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 29, 2018 and December 30, 2017 (in millions): 2018 2017 Beginning Balance $ 9.6 $ 10.0 Net Purchases (Sales) 0.6 (0.5 ) Net Gains 0.1 0.1 Ending Balance $ 10.3 $ 9.6 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 29, 2018 (in millions): Fair Value Significant Unobservable Inputs $10.3 Exit Capitalization Rate 4.9% to 7.0% Discount Rate 6.6% to 7.8% 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 30, 2017 (in millions): Fair Value Significant Unobservable Inputs $9.6 Exit Capitalization Rate 4.9% to 7.0% Discount Rate 6.6% to 8.0% |
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 Consolidated Balance Sheets as follows (in millions): 2018 2017 Accrued Compensation and Employee Benefits $ 3.4 $ 2.9 Pension and Other Post Retirement Benefits 87.7 89.8 Total $ 91.1 $ 92.7 Amounts Recognized in Accumulated Other Comprehensive Loss Net Actuarial Loss $ 52.3 $ 51.3 Prior Service Cost 1.4 1.0 Total $ 53.7 $ 52.3 The Company recognized the funded status of its post retirement health care plan on the balance sheet as follows (in millions): 2018 2017 Accrued Compensation and Employee Benefits $ 0.7 $ 0.9 Pension and Other Post Retirement Benefits 8.5 11.2 Total $ 9.2 $ 12.1 Amounts Recognized in Accumulated Other Comprehensive Loss Net Actuarial (Gain) Loss $ (3.7 ) $ (0.9 ) |
Schedule Of Weighted-Average Assumptions Used To Determine Projected Benefit Obligation | The following weighted average assumptions were used to determine the projected benefit obligation as of December 29, 2018 and December 30, 2017 , respectively: 2018 2017 Discount Rate 4.4% 3.8% |
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): 2018 2017 Service Cost $ 0.1 $ 0.1 Interest Cost 0.4 0.4 Net Periodic Benefit Cost $ 0.5 $ 0.5 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): 2018 2017 2016 Service Cost $ 7.3 $ 7.2 $ 8.1 Interest Cost 9.3 9.3 9.8 Expected Return on Plan Assets (11.9 ) (11.2 ) (11.9 ) Amortization of Net Actuarial Loss 3.5 2.3 3.1 Amortization of Prior Service Cost 0.2 0.2 0.2 Net Periodic Benefit Cost $ 8.4 $ 7.8 $ 9.3 Change in Obligations Recognized in OCI, Net of Tax Prior Service Cost $ 0.2 $ 0.1 $ 0.1 Net Actuarial Loss 2.7 1.5 2.0 Total Recognized in OCI $ 2.9 $ 1.6 $ 2.1 |
Schedule Of Assumptions Used To Determine Net Periodic Pension Cost | The following assumptions were used to determine the projected benefit obligation as of December 29, 2018 and December 30, 2017 , respectively. 2018 2017 Discount Rate 4.2% 3.5% The following weighted average assumptions were used to determine net periodic pension cost for fiscal years 2018 , 2017 and 2016 , respectively. 2018 2017 2016 Discount Rate 3.8% 4.3% 4.6% Expected Long-Term Rate of Return on Assets 6.9% 7.0% 7.2% |
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 2019 $ 0.7 2020 0.8 2021 0.9 2022 0.9 2023 0.9 2024-2027 3.8 The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): Year Expected Payments 2019 $ 15.4 2020 15.8 2021 16.4 2022 16.5 2023 16.9 2024-2027 88.7 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of share-based compensation activity | The table below presents share-based compensation activity for the fiscal years ended 2018 , 2017 and 2016 (in millions): 2018 2017 2016 Total Intrinsic Value of Share-Based Incentive Awards Exercised $5.2 $4.3 $2.5 Cash Received from Stock Option Exercises — 0.4 0.5 Total Fair Value of Share-Based Incentive Awards Vested 3.9 4.3 4.9 |
Assumptions used in Valuation for Options, SAR's, and Performance Share Units | The weighted average assumptions used in the Company's Black-Scholes valuation related to grants for SARs were as follows: 2018 2017 2016 Per Share Weighted Average Fair Value of Grants $22.73 $23.31 $15.22 Risk-Free Interest Rate 2.9% 2.1% 1.4% Expected Life (Years) 7.0 7.0 7.0 Expected Volatility 27.8% 28.6% 29.6% Expected Dividend Yield 1.4% 1.3% 1.7% The assumptions used in the Company's Monte Carlo simulation related to grants for performance share units were as follows: December 29, December 30, Risk-free interest rate 2.7% 1.6% Expected life (years) 3.0 3.0 Expected volatility 25.0% 24.0% Expected dividend yield 1.4% 1.3% |
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 2018 : Number of Shares Under Options and SARs Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding as of December 30, 2017 1,601,791 $ 66.46 Granted 193,357 77.60 Exercised (249,324) 57.54 Forfeited (5,206) 70.30 Expired (1,250) 54.28 Outstanding as of December 29, 2018 1,539,368 $ 69.31 5.6 $ 16.0 Exercisable as of December 29, 2018 928,987 $ 66.61 3.9 $ 12.0 |
RSA Award Activity | Following is the summary of RSAs activity for fiscal 2018 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested RSAs as of December 30, 2017 13,941 $ 80.70 0.4 Granted 16,490 74.68 Vested (13,941) 80.70 Forfeited (830) 80.25 Unvested RSAs as of December 29, 2018 15,660 $ 74.38 0.4 |
RSU Award Activity | Following is the summary of RSUs activity for fiscal 2018 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested RSUs as of December 30, 2017 260,533 $ 70.81 1.7 Granted 78,140 74.51 Vested (98,636) 76.25 Forfeited (5,213) 69.71 Unvested RSUs as of December 29, 2018 234,824 $ 69.78 1.6 |
PSU Award Activity | Following is the summary of PSUs activity for fiscal 2018 : Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (years) Unvested PSUs as of December 30, 2017 155,116 $ 70.43 2.0 Granted 50,659 83.80 Vested (1,359) 57.43 Forfeited (36,576) 83.55 Unvested PSUs as of December 29, 2018 167,840 $ 71.71 1.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Before Taxes And Noncontrolling Interest | Income before taxes consisted of the following (in millions): 2018 2017 2016 United States $ 121.5 $ 147.4 $ 143.4 Foreign 170.7 129.8 123.0 Total $ 292.2 $ 277.2 $ 266.4 |
Provision For Income Taxes | The provision for income taxes is summarized as follows (in millions): 2018 2017 2016 Current Federal $ 4.5 $ 36.9 $ 23.1 State 0.8 (0.3 ) 3.5 Foreign 37.9 32.2 30.4 $ 43.2 $ 68.8 $ 57.0 Deferred Federal $ 16.6 $ (7.2 ) $ 5.6 State 2.1 2.2 1.8 Foreign (5.5 ) (4.7 ) (7.3 ) 13.2 (9.7 ) 0.1 Total $ 56.4 $ 59.1 $ 57.1 |
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: 2018 2017 2016 Federal Statutory Rate 21.0% 35.0% 35.0% State Income Taxes, Net of Federal Benefit 1.1% 0.3% 1.5% Domestic Production Activities Deduction —% (1.0)% (1.1)% Foreign Rate Differential - China 0.9% (2.1)% (2.0)% Foreign Rate Differential - All Other (1.4)% (4.3)% (6.0)% Research and Development Credit (2.5)% (3.0)% (2.3)% Valuation Allowance (0.3)% (0.6)% —% Tax Cuts and Jobs Act of 2017 (1.3)% (0.4)% —% Tax on Repatriation 1.3% —% —% Adjustments to Tax Accruals and Reserves —% (1.9)% 0.7% Other 0.5% (0.7)% (4.4)% Effective Tax Rate 19.3% 21.3% 21.4% |
Components Of Net Deferred Tax Asset (Liability) | The components of this net deferred tax liability are as follows (in millions): December 29, December 30, Accrued Employee Benefits $ 53.9 $ 53.4 Bad Debt Allowances 2.2 2.3 Warranty Accruals 3.6 3.1 Inventory 14.6 12.9 Accrued Liabilities (8.0 ) (5.3 ) Derivative Instruments 1.8 (4.3 ) Tax Loss Carryforward 13.1 12.9 Valuation Allowance (4.9 ) (5.9 ) Other 14.0 1.2 Deferred Tax Assets 90.3 70.3 Property Related (32.2 ) (26.2 ) Intangible Items (172.2 ) (150.9 ) Deferred Tax Liabilities (204.4 ) (177.1 ) Net Deferred Tax Liability $ (114.1 ) $ (106.8 ) |
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, 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 Gross Increases from Prior Period Tax Positions — Gross Increases from Current Period Tax Positions 2.7 Settlements with Taxing Authorities (5.3 ) Lapse of Statute of Limitations (0.7 ) Unrecognized Tax Benefits, December 30, 2017 $ 6.7 Gross Increases from Prior Period Tax Positions — Gross Increases from Current Period Tax Positions 0.3 Settlements with Taxing Authorities (0.1 ) Lapse of Statute of Limitations (0.4 ) Unrecognized Tax Benefits, December 29, 2018 $ 6.5 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 fiscal 2018 and fiscal 2017 (in millions): December 29, December 30, Beginning Balance $ 16.0 $ 20.3 Less: Payments 20.1 23.5 Provisions 20.2 19.0 Acquisitions 0.3 — Held for Sale (1.4 ) — Translation Adjustments (0.2 ) 0.2 Ending Balance $ 14.8 $ 16.0 |
Leases And Rental Commitments (
Leases And Rental Commitments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 2019 $ 30.8 2020 24.7 2021 19.2 2022 11.7 2023 6.5 Thereafter 16.2 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Notional Amounts Of Forward Contracts | As of December 29, 2018 , the Company had the following commodity forward contracts outstanding (with maturities extending through March 2020 ) to hedge forecasted purchases of commodities (notional amounts expressed in terms of the dollar value of the hedged item (in millions): December 29, 2018 December 30, 2017 Copper $ 95.4 $ 80.8 Aluminum 10.0 7.7 As of December 29, 2018 , the Company had the following currency forward contracts outstanding (with maturities extending through April 2021 ) to hedge forecasted foreign currency cash flows (in millions): December 29, 2018 December 30, 2017 Mexican Peso $ 182.3 $ 137.1 Chinese Renminbi 125.5 214.9 Indian Rupee 44.0 35.8 Euro 225.7 26.4 Canadian Dollar 11.4 47.7 Australian Dollar 13.2 14.9 Thai Baht 6.7 7.5 British Pound 15.3 2.7 |
Schedule Of Fair Values Of Derivative Instruments | Fair values of derivative instruments as of December 29, 2018 and December 30, 2017 were (in millions): December 29, 2018 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Current Hedging Obligations Noncurrent Hedging Obligations Designated as Hedging Instruments: Currency Contracts $ 6.0 $ 7.2 $ 4.3 $ 1.1 Commodity Contracts 0.1 — 6.0 0.1 Not Designated as Hedging Instruments: Currency Contracts 0.6 — 0.7 — Commodity Contracts — — 0.3 — Total Derivatives $ 6.7 $ 7.2 $ 11.3 $ 1.2 December 30, 2017 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Current Hedging Obligations Noncurrent Hedging Obligations Designated as Hedging Instruments: Currency Contracts $ 11.5 $ 2.5 $ 7.9 $ 0.9 Commodity Contracts 10.8 0.7 — — Not Designated as Hedging Instruments: Currency Contracts 4.1 — 0.2 — Commodity Contracts 0.2 — — — Total Derivatives $ 26.6 $ 3.2 $ 8.1 $ 0.9 |
Schedule Of Cash Flow Hedging Instruments | The effect of derivative instruments designated as cash flow hedges on the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income for fiscal years 2018 , 2017 and 2016 were (in millions): Fiscal 2018 Interest Commodity Currency Rate Forwards Forwards Swaps Total Gain (Loss) Recognized in Other Comprehensive Income $ (17.9 ) $ 11.0 $ 1.7 $ (5.2 ) Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — 0.2 — 0.2 Gain Recognized in Cost of Sales 5.0 2.9 — 7.9 Gain Recognized in Operating Expense — 6.1 — 6.1 Gain Recognized in Interest Expense — — 1.6 1.6 Fiscal 2017 Interest Commodity Currency Rate Forwards Forwards Swaps Total Gain Recognized in Other Comprehensive Loss $ 21.7 $ 46.3 $ 0.5 $ 68.5 Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — 0.9 — 0.9 Gain (Loss) Recognized in Cost of Sales 12.2 (22.1 ) — (9.9 ) Loss Recognized in Interest Expense — — (2.8 ) (2.8 ) Fiscal 2016 Interest Commodity Currency Rate Forwards Forwards Swaps Total Gain (Loss) Recognized in Other Comprehensive 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 ) |
Schedule of Derivatives Not Designated as Cash Flow Hedging Instruments | The effect of derivative instruments not designated as cash flow hedges on the Consolidated Statements of Income for fiscal years 2018 , 2017 and 2016 were (in millions): Fiscal 2018 Commodity Forwards Currency Forwards Total Loss Recognized in Cost of Sales $ (0.5 ) $ — $ (0.5 ) Loss Recognized in Operating Expenses — (6.8 ) (6.8 ) Fiscal 2017 Commodity Forwards Currency Forwards Total Loss Recognized in Cost of Sales $ (1.1 ) $ — $ (1.1 ) Gain Recognized in Operating Expenses — 14.3 14.3 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 ) |
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 29, 2018 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 $ 6.6 $ (3.6 ) $ 3.0 Derivative Commodity Contracts 0.1 (0.1 ) — Other Noncurrent Assets: Derivative Currency Contracts 7.2 (0.6 ) 6.6 Current Hedging Obligations: Derivative Currency Contracts 5.0 (3.6 ) 1.4 Derivative Commodity Contracts 6.3 (0.1 ) 6.2 Noncurrent Hedging Obligations: Derivative Currency Contracts 1.1 (0.6 ) 0.5 Derivative Commodity Contracts 0.1 — 0.1 December 30, 2017 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 $ 15.6 $ (5.9 ) $ 9.7 Derivative Commodity Contracts 11.0 — 11.0 Other Noncurrent Assets: Derivative Currency Contracts 2.5 (0.7 ) 1.8 Derivative Commodity Contracts 0.7 — 0.7 Current Hedging Obligations: Derivative Currency Contracts 8.1 (5.9 ) 2.2 Noncurrent Hedging Obligations: Derivative Currency Contracts 0.9 (0.7 ) 0.2 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 and December 30, 2017 , respectively (in millions): December 29, 2018 December 30, 2017 Classification Assets: Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 6.6 $ 15.6 Level 2 Derivative Commodity Contracts 0.1 11.0 Level 2 Other Noncurrent Assets: Assets Held in Rabbi Trust 5.6 5.7 Level 1 Derivative Currency Contracts 7.2 2.5 Level 2 Derivative Commodity Contracts — 0.7 Level 2 Liabilities: Current Hedging Obligations: Derivative Currency Contracts 5.0 8.1 Level 2 Derivative Commodity Contracts 6.3 — Level 2 Noncurrent Hedging Obligations: Derivative Currency Contracts 1.1 0.9 Level 2 Derivative Commodity Contracts 0.1 — Level 2 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 fiscal 2018 and fiscal 2017 (in millions): December 29, December 30, Beginning Balance $ 1.2 $ 0.6 Provision 7.7 14.1 Less: Payments 8.7 13.5 Ending Balance $ 0.2 $ 1.2 |
Schedule of Restructuring and Related Costs | The following is a reconciliation of expenses by type for the restructuring projects in fiscal years 2018 , 2017 and 2016 (in millions): 2018 2017 2016 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ — $ 0.3 $ 0.3 $ 2.6 $ 1.7 $ 4.3 $ 0.5 $ 0.3 $ 0.8 Facility Related Costs 2.3 3.4 5.7 4.3 0.9 5.2 2.9 0.3 3.2 Other Expenses 0.8 0.8 1.6 3.9 — 3.9 0.8 0.9 1.7 Total Restructuring Costs $ 3.1 $ 4.5 $ 7.6 $ 10.8 $ 2.6 $ 13.4 $ 4.2 $ 1.5 $ 5.7 Restructuring-Related Costs: Other Employment Benefit Expenses $ 0.1 $ — $ 0.1 $ 0.7 $ — $ 0.7 $ 0.5 $ 0.6 $ 1.1 Total Restructuring-Related Costs $ 0.1 $ — $ 0.1 $ 0.7 $ — $ 0.7 $ 0.5 $ 0.6 $ 1.1 Total Restructuring and Restructuring-Related Costs $ 3.2 $ 4.5 $ 7.7 $ 11.5 $ 2.6 $ 14.1 $ 4.7 $ 2.1 $ 6.8 The following table shows the allocation of Restructuring Expenses by segment for fiscal years 2018 , 2017 and 2016 (in millions): Total Commercial and Industrial Systems Climate Solutions Power Transmission Solutions Restructuring Expenses - 2018 $ 7.7 $ 5.6 $ 1.8 $ 0.3 Restructuring Expenses - 2017 $ 14.1 $ 10.9 $ 2.5 $ 0.7 Restructuring Expenses - 2016 $ 6.8 $ 2.5 $ 2.6 $ 1.7 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 2017 2018 2017 2018 2017 2018 2017 Net Sales $ 878.8 $ 813.5 $ 959.7 $ 869.2 $ 925.4 $ 856.9 $ 881.7 $ 820.7 Gross Profit 234.9 215.5 247.4 222.8 242.6 226.9 239.7 218.4 Income from Operations 88.2 75.0 99.6 83.2 69.4 94.3 89.8 78.6 Net Income 59.3 47.6 67.3 54.3 52.7 63.6 56.5 52.6 Net Income Attributable to Regal Beloit Corporation 58.4 46.3 65.9 53.0 51.3 62.2 55.6 51.5 Earnings Per Share Attributable to Regal Beloit Corporation (1) Basic 1.32 1.03 1.51 1.19 1.18 1.40 1.29 1.16 Assuming Dilution 1.31 1.02 1.50 1.18 1.17 1.39 1.28 1.15 Weighted Average Number of Shares Outstanding Basic 44.2 44.8 43.8 44.7 43.4 44.4 43.1 44.3 Assuming Dilution 44.5 45.1 44.1 45.1 43.8 44.8 43.4 44.7 Net Sales Commercial and Industrial Systems $ 414.0 $ 381.2 $ 469.0 $ 407.4 $ 462.3 $ 408.0 $ 436.7 $ 407.7 Climate Solutions 259.9 247.7 277.3 270.5 255.4 256.0 232.2 216.4 Power Transmission Solutions 204.9 184.6 213.4 191.3 207.7 192.9 212.8 196.6 Income from Operations Commercial and Industrial Systems 29.1 25.7 30.5 20.6 35.3 29.5 32.1 24.0 Climate Solutions 32.3 31.4 44.0 40.4 6.0 39.1 33.3 30.6 Power Transmission Solutions 26.8 17.9 25.1 22.2 28.1 25.7 24.4 24.0 (1) 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. 29, 2018segment | |
Nature of Operations [Abstract] | |
Number of reported segments | 3 |
Accounting Policies (Disaggrega
Accounting Policies (Disaggregation of Revenue) (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenue | $ 3,645.6 |
North America | |
Disaggregation of Revenue [Line Items] | |
Revenue | 2,751.8 |
Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue | 333.2 |
Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue | 324.6 |
Rest-of-World | |
Disaggregation of Revenue [Line Items] | |
Revenue | 236 |
Commercial and Industrial Systems | |
Disaggregation of Revenue [Line Items] | |
Revenue | 1,782 |
Commercial and Industrial Systems | North America | |
Disaggregation of Revenue [Line Items] | |
Revenue | 1,173.5 |
Commercial and Industrial Systems | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue | 269.6 |
Commercial and Industrial Systems | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue | 177.2 |
Commercial and Industrial Systems | Rest-of-World | |
Disaggregation of Revenue [Line Items] | |
Revenue | 161.7 |
Climate Solutions | |
Disaggregation of Revenue [Line Items] | |
Revenue | 1,024.8 |
Climate Solutions | North America | |
Disaggregation of Revenue [Line Items] | |
Revenue | 891.9 |
Climate Solutions | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue | 39.5 |
Climate Solutions | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue | 50.5 |
Climate Solutions | Rest-of-World | |
Disaggregation of Revenue [Line Items] | |
Revenue | 42.9 |
Power Transmission Solutions | |
Disaggregation of Revenue [Line Items] | |
Revenue | 838.8 |
Power Transmission Solutions | North America | |
Disaggregation of Revenue [Line Items] | |
Revenue | 686.4 |
Power Transmission Solutions | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue | 24.1 |
Power Transmission Solutions | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue | 96.9 |
Power Transmission Solutions | Rest-of-World | |
Disaggregation of Revenue [Line Items] | |
Revenue | $ 31.4 |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Sep. 29, 2018USD ($) | Dec. 29, 2018USD ($)segment | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||||
Number of operating segments (in segment) | segment | 3 | |||||||
Amortization period | 12 months | |||||||
Revenue, performance obligation, description of timing | Due to the short nature of the Company’s contracts, the Company has adopted a practical expedient to not disclose revenue allocated to remaining performance obligations as substantially all of its contracts have original terms of 12 months or less. | |||||||
Research and development costs | $ 29.3 | $ 29.9 | $ 29.5 | |||||
Percentage of fair value in excess of carrying value | 10.00% | |||||||
Net Sales | $ 881.7 | $ 925.4 | $ 959.7 | $ 878.8 | $ 3,645.6 | 3,360.3 | 3,224.5 | |
Business exit costs | 0 | 3.9 | 0 | |||||
Asset Impairments | 8.7 | 0 | 0 | |||||
Power Transmission Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Net Sales | $ 212.8 | $ 207.7 | $ 213.4 | $ 204.9 | 838.8 | 765.4 | 733.6 | |
Hermetic Climate | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Net Sales | 52.6 | 60.4 | ||||||
Hermetic Climate | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Business exit costs | 34.9 | |||||||
Goodwill | Hermetic Climate | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Asset Impairments | 9.5 | |||||||
Customer Relationships | Hermetic Climate | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Asset Impairments | 5.5 | |||||||
Technology | Hermetic Climate | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Asset Impairments | 2.1 | |||||||
Leasehold Improvements | Hermetic Climate | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Asset Impairments | 1.1 | |||||||
Retained Earnings | Accounting Standards Update 2018-02 | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Reclassification from AOCI to Retained Earnings | $ 4.6 | |||||||
Pension and Other Postretirement Plans | Retained Earnings | Accounting Standards Update 2018-02 | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Reclassification from AOCI to Retained Earnings | 6.6 | |||||||
Designated As Hedging Instruments | Retained Earnings | Accounting Standards Update 2018-02 | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Reclassification from AOCI to Retained Earnings | 2 | |||||||
Minimum | Accounting Standards Update 2016-02 | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Right-of-use assets and lease liabilities | 85 | |||||||
Maximum | Accounting Standards Update 2016-02 | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Right-of-use assets and lease liabilities | $ 105 | |||||||
Other Expense | Accounting Standards Update 2017-07 | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Net periodic benefit income | 0.5 | 0.2 | ||||||
Net periodic benefit cost (credit) | $ 1.5 | $ 2.1 |
Accounting Policies (Inventorie
Accounting Policies (Inventories) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Inventory [Line Items] | ||
Raw Material and Work in Process | 45.00% | 47.00% |
Finished Goods and Purchased Parts | 55.00% | 53.00% |
Percentage of LIFO Inventory | 54.00% | 52.00% |
FIFO LIFO valuation difference | $ 65.5 | $ 46 |
Accounting Policies (Assets Hel
Accounting Policies (Assets Held for Sale) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Accounting Policies [Abstract] | ||
Trade Receivables | $ 19.2 | |
Inventories | 34.7 | |
Prepaid Expenses and Other Current Assets | 5 | |
Property, Plant and Equipment | 19.9 | |
Intangible Assets | 12 | |
Goodwill | 1.3 | |
Assets of Businesses Held for Sale | 92.1 | $ 0 |
Accounts Payable | 8.1 | |
Accrued Compensation and Employee Benefits | 0.5 | |
Other Accrued Expenses | 7.3 | |
Other Noncurrent Liabilities | 1.1 | |
Liabilities of Businesses Held for Sale | 17 | $ 0 |
Net Sales from businesses held for sale | 138.9 | |
Income from Operations from businesses held for sale | $ 15.7 |
Accounting Policies (Property,
Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 1,356.8 | $ 1,359.5 |
Less: Accumulated Depreciation | (741.3) | (736.5) |
Net Property, Plant and Equipment | 615.5 | 623 |
Land and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 82.1 | 78.2 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 302.8 | 294.5 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 971.9 | $ 986.8 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Minimum | Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Minimum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 50 years | |
Maximum | Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 50 years | |
Maximum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 15 years |
Accounting Policies (Earnings P
Accounting Policies (Earnings Per Share Reconciliation) (Details) - shares shares in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||||||
Shares excluded from the calculation of the effect of dilutive securities | 0.6 | 0.5 | 1.3 | ||||
Denominator for Basic Earnings Per Share | 43.1 | 43.4 | 43.8 | 44.2 | 43.6 | 44.6 | 44.7 |
Effect of Dilutive Securities | 0.3 | 0.3 | 0.3 | ||||
Denominator for Diluted Earnings Per Share | 43.4 | 43.8 | 44.1 | 44.5 | 43.9 | 44.9 | 45 |
Accounting Policies (Accumulate
Accounting Policies (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign Currency Translation Adjustments | $ (207.8) | $ (140) |
Hedging Activities, Net of Tax of $(1.7) in 2018 and $5.4 in 2017 | (5.4) | 8.6 |
Pension and Post Retirement Benefits, Net of Tax of $(11.8) in 2018 and $(18.8) in 2017 | (38.2) | (32.6) |
Total | (251.4) | (164) |
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 | (1.7) | 5.4 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), tax | $ (11.8) | $ (18.8) |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Narrative) (Details) - USD ($) | Nov. 08, 2018 | Apr. 10, 2018 | Jan. 18, 2016 | Sep. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jun. 01, 2016 |
Business Acquisition [Line Items] | ||||||||
Acquisition-related expenses | $ 1,500,000 | $ 0 | $ 0 | |||||
Additional shares purchased by noncontrolling interest | $ 800,000 | 800,000 | $ 19,600,000 | |||||
Mastergear | Operating Expenses | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Business Acquisition [Line Items] | ||||||||
Gain on disposal | $ 100,000 | $ 11,600,000 | ||||||
Mastergear | Power Transmission Solutions | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration for disposal | $ 25,700,000 | |||||||
Nicotra Gebhardt (NG) | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration transferred | $ 161,500,000 | |||||||
Cash acquired | $ 8,500,000 | |||||||
Israeli Subsidiary | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration transferred | $ 900,000 | |||||||
Elco Group B.V. | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration transferred | $ 19,600,000 | |||||||
Equity interest in acquiree | 55.00% | |||||||
Equity interest in acquiree including subsequent acquisition | 100.00% |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Apr. 10, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,509.2 | $ 1,477.1 | $ 1,453.2 | |
Commercial and Industrial Systems | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 598.9 | $ 548.8 | $ 540.6 | |
Commercial and Industrial Systems | Nicotra Gebhardt (NG) | ||||
Business Acquisition [Line Items] | ||||
Other Current Assets | $ 17.2 | |||
Trade Receivables | 28 | |||
Inventories | 22.1 | |||
Property, Plant and Equipment | 44.6 | |||
Intangible Assets | 37.8 | |||
Goodwill | 58.7 | |||
Other Noncurrent Assets | 2.5 | |||
Total Assets Acquired | 210.9 | |||
Accounts Payable | 16.7 | |||
Current Liabilities | 14.2 | |||
Long-Term Liabilities | 10 | |||
Net Assets Acquired | $ 170 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||||
Asset impairments | $ 8.7 | $ 0 | $ 0 | |
Amortization | 54.9 | $ 55.2 | $ 62 | |
Impairment Charges | 17.3 | |||
Goodwill | Hermetic Climate | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Goodwill [Line Items] | ||||
Asset impairments | 9.5 | |||
Customer Relationships | ||||
Goodwill [Line Items] | ||||
Amortization | 43.5 | |||
Impairment Charges | 5.3 | |||
Customer Relationships | Hermetic Climate | ||||
Goodwill [Line Items] | ||||
Impairment Charges | $ 5.5 | |||
Customer Relationships | Hermetic Climate | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Goodwill [Line Items] | ||||
Asset impairments | 5.5 | |||
Technology | ||||
Goodwill [Line Items] | ||||
Amortization | 9.5 | |||
Impairment Charges | 12 | |||
Technology | Hermetic Climate | ||||
Goodwill [Line Items] | ||||
Impairment Charges | $ 2.1 | |||
Technology | Hermetic Climate | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Goodwill [Line Items] | ||||
Asset impairments | $ 2.1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Changes To Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 1,477.1 | $ 1,453.2 | |
Acquisitions | 58.7 | ||
Less: Impairment charges | (9.5) | 0 | $ 0 |
Less: Held for Sale | (1.3) | ||
Translation Adjustments | (15.8) | 23.9 | |
Goodwill, ending balance | 1,509.2 | 1,477.1 | 1,453.2 |
Cumulative Goodwill Impairment Charges | 285.2 | ||
Commercial and Industrial Systems | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 548.8 | 540.6 | |
Acquisitions | 58.7 | ||
Less: Impairment charges | 0 | ||
Less: Held for Sale | 0 | ||
Translation Adjustments | (8.6) | 8.2 | |
Goodwill, ending balance | 598.9 | 548.8 | 540.6 |
Cumulative Goodwill Impairment Charges | 244.8 | ||
Climate Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 342.4 | 341.8 | |
Acquisitions | 0 | ||
Less: Impairment charges | (9.5) | ||
Less: Held for Sale | (1.3) | ||
Translation Adjustments | (1) | 0.6 | |
Goodwill, ending balance | 330.6 | 342.4 | 341.8 |
Cumulative Goodwill Impairment Charges | 17.2 | ||
Power Transmission Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 585.9 | 570.8 | |
Acquisitions | 0 | ||
Less: Impairment charges | 0 | ||
Less: Held for Sale | 0 | ||
Translation Adjustments | (6.2) | 15.1 | |
Goodwill, ending balance | 579.7 | $ 585.9 | $ 570.8 |
Cumulative Goodwill Impairment Charges | $ 23.2 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Gross Intangibles) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Acquisition | $ 37.8 | |
Held for Sale | (56) | |
Impairment Charges | (24.9) | |
Translation Adjustments | (14.5) | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Total Gross Intangibles | 1,036 | $ 1,093.6 |
Non-Amortizable Trade Names | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Non-amortizable Trade Names, beginning of period | 122.5 | |
Non-amortizable Trade Names, Acquisition | 0 | |
Non-amortizable Trade Names, Held-For-Sale | 0 | |
Non-amortizable Trade Names, Impairment Charges | 0 | |
Non-amortizable Trade Names, Translation Adjustments | (0.6) | |
Non-amortizable Trade Names, end of period | $ 121.9 | |
Customer Relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 17 years | |
Intangible assets, beginning of period | $ 720.9 | |
Acquisition | 28.3 | |
Held for Sale | (18.7) | |
Impairment Charges | (10.8) | |
Translation Adjustments | (10.9) | |
Intangible assets, end of period | $ 708.8 | |
Technology | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 14 years | |
Intangible assets, beginning of period | $ 192.3 | |
Acquisition | 0 | |
Held for Sale | (32.2) | |
Impairment Charges | (14.1) | |
Translation Adjustments | (1.5) | |
Intangible assets, end of period | $ 144.5 | |
Trademarks | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 14 years | |
Intangible assets, beginning of period | $ 32.8 | |
Acquisition | 9.5 | |
Held for Sale | (4) | |
Impairment Charges | 0 | |
Translation Adjustments | (1.3) | |
Intangible assets, end of period | $ 37 | |
Patent and Engineering Drawings | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Weighted Average Amortization Period (Years) | 5 years | |
Intangible assets, beginning of period | $ 16.6 | |
Acquisition | 0 | |
Held for Sale | 0 | |
Impairment Charges | 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) | 8 years | |
Intangible assets, beginning of period | $ 8.5 | |
Acquisition | 0 | |
Held for Sale | (1.1) | |
Impairment Charges | 0 | |
Translation Adjustments | (0.2) | |
Intangible assets, end of period | 7.2 | |
Finite-Lived Intangible Assets | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets, beginning of period | 971.1 | |
Acquisition | 37.8 | |
Held for Sale | (56) | |
Impairment Charges | (24.9) | |
Translation Adjustments | (13.9) | |
Intangible assets, end of period | $ 914.1 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Accumulated Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | $ 423.1 | ||
Amortization | 54.9 | $ 55.2 | $ 62 |
Held for Sale | (44) | ||
Impairment Charges | (17.3) | ||
Translation Adjustments | (6.2) | ||
Accumulated Amortization, Ending balance | 410.5 | 423.1 | |
Intangible Assets, Net of Amortization | 625.5 | 670.5 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 249.6 | ||
Amortization | 43.5 | ||
Held for Sale | (11.1) | ||
Impairment Charges | (5.3) | ||
Translation Adjustments | (4.3) | ||
Accumulated Amortization, Ending balance | 272.4 | 249.6 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 122.8 | ||
Amortization | 9.5 | ||
Held for Sale | (29.1) | ||
Impairment Charges | (12) | ||
Translation Adjustments | (1.1) | ||
Accumulated Amortization, Ending balance | 90.1 | 122.8 | |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 25.7 | ||
Amortization | 1.8 | ||
Held for Sale | (2.7) | ||
Impairment Charges | 0 | ||
Translation Adjustments | (0.6) | ||
Accumulated Amortization, Ending balance | 24.2 | 25.7 | |
Patent and Engineering Drawings | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization Beginning balance | 16.6 | ||
Amortization | 0 | ||
Held for Sale | 0 | ||
Impairment Charges | 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 | 8.4 | ||
Amortization | 0.1 | ||
Held for Sale | (1.1) | ||
Impairment Charges | 0 | ||
Translation Adjustments | (0.2) | ||
Accumulated Amortization, Ending balance | $ 7.2 | $ 8.4 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Schedule of Estimated Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 54.9 | $ 55.2 | $ 62 |
2,019 | 50.9 | ||
2,020 | 48.3 | ||
2,021 | 43.1 | ||
2,022 | 41.5 | ||
2,023 | $ 41.4 |
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. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||
Net Sales | $ 881.7 | $ 925.4 | $ 959.7 | $ 878.8 | $ 3,645.6 | $ 3,360.3 | $ 3,224.5 |
Gross Profit | 239.7 | 242.6 | 247.4 | 234.9 | 964.6 | 883.6 | 865 |
Operating Expenses | 599.4 | 552.5 | 542.5 | ||||
Goodwill Impairment | 9.5 | 0 | 0 | ||||
Asset Impairments | 8.7 | 0 | 0 | ||||
Income from Operations | 89.8 | 69.4 | 99.6 | 88.2 | 347 | 331.1 | 322.5 |
Depreciation and Amortization | 142.4 | 137.2 | 155.4 | ||||
Capital Expenditures | 77.6 | 65.2 | 65.2 | ||||
Commercial and Industrial Systems | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 436.7 | 462.3 | 469 | 414 | 1,782 | 1,604.3 | 1,530.9 |
Goodwill Impairment | 0 | ||||||
Income from Operations | 32.1 | 35.3 | 30.5 | 29.1 | |||
Climate Solutions | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 232.2 | 255.4 | 277.3 | 259.9 | 1,024.8 | 990.6 | 960 |
Goodwill Impairment | 9.5 | ||||||
Income from Operations | 33.3 | 6 | 44 | 32.3 | |||
Power Transmission Solutions | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 212.8 | 207.7 | 213.4 | 204.9 | 838.8 | 765.4 | 733.6 |
Goodwill Impairment | 0 | ||||||
Income from Operations | $ 24.4 | $ 28.1 | $ 25.1 | $ 26.8 | |||
Operating Segments | Commercial and Industrial Systems | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 1,832.9 | 1,670.8 | 1,580.1 | ||||
Gross Profit | 423.4 | 376.8 | 378.7 | ||||
Operating Expenses | 296.4 | 277 | 275.4 | ||||
Goodwill Impairment | 0 | ||||||
Asset Impairments | 0 | ||||||
Income from Operations | 127 | 99.8 | 103.3 | ||||
Depreciation and Amortization | 67 | 59.8 | 74.7 | ||||
Capital Expenditures | 41.8 | 39.2 | 36.6 | ||||
Operating Segments | Climate Solutions | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 1,046.9 | 1,015.5 | 984.1 | ||||
Gross Profit | 262.7 | 255.4 | 245.3 | ||||
Operating Expenses | 128.9 | 113.9 | 114.5 | ||||
Goodwill Impairment | 9.5 | ||||||
Asset Impairments | 8.7 | ||||||
Income from Operations | 115.6 | 141.5 | 130.8 | ||||
Depreciation and Amortization | 21 | 22.1 | 24.4 | ||||
Capital Expenditures | 17.7 | 13.4 | 15 | ||||
Operating Segments | Power Transmission Solutions | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 862.9 | 769.9 | 737.9 | ||||
Gross Profit | 278.5 | 251.4 | 241 | ||||
Operating Expenses | 174.1 | 161.6 | 152.6 | ||||
Goodwill Impairment | 0 | ||||||
Asset Impairments | 0 | ||||||
Income from Operations | 104.4 | 89.8 | 88.4 | ||||
Depreciation and Amortization | 54.4 | 55.3 | 56.3 | ||||
Capital Expenditures | 18.1 | 12.6 | 13.6 | ||||
Intersegment Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | (97.1) | (95.9) | (77.6) | ||||
Intersegment Eliminations | Commercial and Industrial Systems | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 50.9 | 66.5 | 49.2 | ||||
Intersegment Eliminations | Climate Solutions | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 22.1 | 24.9 | 24.1 | ||||
Intersegment Eliminations | Power Transmission Solutions | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | $ 24.1 | $ 4.5 | $ 4.3 |
Segment Information (Schedule_2
Segment Information (Schedule of Identifiable Assets) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Identifiable Assets | $ 4,623.8 | $ 4,388.2 | $ 4,358.5 |
Commercial and Industrial Systems | |||
Segment Reporting Information [Line Items] | |||
Identifiable Assets | 2,108 | 1,854.1 | 1,872.7 |
Climate Solutions | |||
Segment Reporting Information [Line Items] | |||
Identifiable Assets | 907.7 | 909.9 | 881.8 |
Power Transmission Solutions | |||
Segment Reporting Information [Line Items] | |||
Identifiable Assets | $ 1,608.1 | $ 1,624.2 | $ 1,604 |
Segment Information (Schedule_3
Segment Information (Schedule Of Financial Information Attributable To Geographic Regions) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||
Net Sales | $ 881.7 | $ 925.4 | $ 959.7 | $ 878.8 | $ 3,645.6 | $ 3,360.3 | $ 3,224.5 |
Long-Lived Assets | 623 | 615.5 | 623 | ||||
United States | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 2,402.9 | 2,267.2 | 2,212.6 | ||||
Long-Lived Assets | 263.6 | 242.7 | 263.6 | ||||
Mexico | |||||||
Segment Reporting Information [Line Items] | |||||||
Long-Lived Assets | 136.3 | 139.7 | 136.3 | ||||
China | |||||||
Segment Reporting Information [Line Items] | |||||||
Long-Lived Assets | 99.5 | 90.2 | 99.5 | ||||
Rest of the World | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 1,242.7 | 1,093.1 | $ 1,011.9 | ||||
Long-Lived Assets | $ 123.6 | $ 142.9 | $ 123.6 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments (in segment) | 3 | ||
Geographic Concentration Risk | Sales Revenue, Net | United States | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 65.90% | 67.50% | 68.60% |
Debt and Bank Credit Faciliti_3
Debt and Bank Credit Facilities (Schedule Of Indebtedness) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,313.3 | |
Less: Debt Issuance Costs | (6.2) | $ (5.4) |
Long-term debt, Total | 1,307.1 | 1,141.1 |
Less: Current Maturities | 0.5 | 101.2 |
Non-Current Portion | 1,306.6 | 1,039.9 |
Term Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 810 | 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 400 | 500 |
Multicurrency Revolving Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 98.4 | 0 |
Prior Term Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 621.1 |
Prior Multicurrency Revolving Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 19.7 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 4.9 | $ 5.7 |
Debt and Bank Credit Faciliti_4
Debt and Bank Credit Facilities (Narrative) (Details) | Aug. 27, 2018USD ($) | Jan. 30, 2015USD ($) | Dec. 29, 2018USD ($)tranche | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Repayments of long-term borrowings | $ 811,400,000 | $ 277,300,000 | $ 323,800,000 | |||
Long-term Debt, Gross | 1,313,300,000 | |||||
Senior Notes | 400,000,000 | |||||
Long-term Debt | 1,307,100,000 | 1,141,100,000 | ||||
Fair value of debt | $ 1,323,600,000 | $ 1,165,400,000 | ||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 50,000,000 | $ 100,000,000 | ||||
Multicurrency Revolving Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | 5 years | ||||
Principal amount | $ 500,000,000 | $ 500,000,000 | ||||
Notes Payable, Other Payables | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate of other notes payable | 5.00% | 5.70% | ||||
Multicurrency Revolving Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 98,400,000 | $ 0 | ||||
Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | 5 years | ||||
Principal amount | $ 900,000,000 | $ 1,250,000,000 | ||||
Amortization rate per annum | 5.00% | |||||
Amortization rate per annum, after 2 years | 7.50% | |||||
Amortization rate per annum, last 2 years | 10.00% | |||||
Weighted average interest rate | 3.40% | 2.60% | ||||
Percent of certain cash proceeds received for required repayment | 100.00% | |||||
Repayments of long-term borrowings | $ 90,000,000 | $ 177,000,000 | ||||
Long-term Debt, Gross | $ 810,000,000 | $ 0 | ||||
Term Facility | Multicurrency Revolving Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 3.30% | 2.60% | ||||
Available borrowing capacity under the Facility | $ 401,200,000 | |||||
Average balance outstanding under the Facility | 171,500,000 | $ 111,200,000 | ||||
Term Facility | Multicurrency Revolving Facility | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | 400,000 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 400,000,000 | 500,000,000 | ||||
Senior Notes | 400,000,000 | |||||
Senior Notes | 2011 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | $ 400,000,000 | |||||
Number of tranches | tranche | 5 | |||||
Senior Notes | 2011 Notes | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 10 years | |||||
Senior Notes | 2011 Notes | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 12 years | |||||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 4,900,000 | $ 5,700,000 | ||||
Long-term Debt | Senior Notes | 2011 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | $ 400,000,000 |
Debt and Bank Credit Faciliti_5
Debt and Bank Credit Facilities (Details Of The Senior Notes) (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Debt Instrument [Line Items] | |
Senior Notes | $ 400 |
Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes | 400 |
Senior Notes | Fixed Rate Series 2011A Mature In July 2021 | |
Debt Instrument [Line Items] | |
Senior Notes | 230 |
Senior Notes | Fixed Rate Series 2011A Mature In July 2023 | |
Debt Instrument [Line Items] | |
Senior Notes | $ 170 |
Minimum | Senior Notes | Fixed Rate Series 2011A Mature In July 2021 | |
Debt Instrument [Line Items] | |
Stated rate, minimum | 4.80% |
Minimum | Senior Notes | Fixed Rate Series 2011A Mature In July 2023 | |
Debt Instrument [Line Items] | |
Stated rate, minimum | 4.90% |
Maximum | Senior Notes | Fixed Rate Series 2011A Mature In July 2021 | |
Debt Instrument [Line Items] | |
Stated rate, minimum | 5.00% |
Maximum | Senior Notes | Fixed Rate Series 2011A Mature In July 2023 | |
Debt Instrument [Line Items] | |
Stated rate, minimum | 5.10% |
Debt and Bank Credit Faciliti_6
Debt and Bank Credit Facilities (Maturities Of Long-Term Debt) (Details) $ in Millions | Dec. 29, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 0.5 |
2,020 | 22.9 |
2,021 | 286.7 |
2,022 | 79.2 |
2,023 | 921.4 |
Thereafter | 2.6 |
Long-term debt, Total | $ 1,313.3 |
Retirement and Post Retiremen_3
Retirement and Post Retirement Health Care Plans (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 28, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer Contributions | $ 10,900,000 | $ 8,600,000 | ||
Accumulated benefit obligation | $ 244,000,000 | $ 251,700,000 | ||
Defined benefit plan compensation increase assumption | 3.00% | 3.00% | ||
Expected contribution to defined benefit pension plans | $ 10,400,000 | |||
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer Contributions | 10,900,000 | $ 8,600,000 | ||
Future amortization of prior service cost | 300,000 | |||
Amount to be amortized | 2,200,000 | |||
Amortization of prior service cost recognized in OCI | $ 200,000 | $ 200,000 | $ 200,000 | |
Discount Rate | 4.40% | 3.80% | ||
Postretirement Health Coverage | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer Contributions | $ 600,000 | $ 900,000 | ||
Amount to be amortized | 400,000 | |||
Expected contribution to defined benefit pension plans | 700,000 | |||
Amortization of prior service cost recognized in OCI | $ 0 | |||
Discount Rate | 4.20% | 3.50% | ||
Health care cost trend rate, 2025 | 4.50% | |||
Postretirement Health Coverage | Forecast | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate, 2025 | 4.50% | |||
Minimum | Postretirement Health Coverage | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate, next fiscal year | 8.00% | |||
Minimum | Postretirement Health Coverage | Forecast | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate, next fiscal year | 7.60% | |||
Maximum | Postretirement Health Coverage | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate, next fiscal year | 5.40% | |||
Maximum | Postretirement Health Coverage | Forecast | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate, next fiscal year | 5.30% | |||
United States | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer Contributions | $ 10,100,000 | $ 9,300,000 | 8,700,000 | |
International Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer Contributions | $ 11,800,000 | $ 9,400,000 | $ 10,400,000 |
Retirement and Post Retiremen_4
Retirement and Post Retirement Health Care Plans (Schedule Of Defined Benefit Pension Assets Investment) (Details) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
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 | 73.00% | |
Equity investments, Actual Allocation | 68.00% | 71.00% |
Equity Investments | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity investments, Target Return minimum | 0.065 | |
Equity Investments | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity investments, Target Return minimum | 0.083 | |
Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity investments, Target Allocation | 22.00% | |
Fixed income, Target Return minimum | 3.70% | |
Fixed income, Target Return maximum | 6.10% | |
Equity investments, Actual Allocation | 27.00% | 24.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Equity investments, Target Allocation | 5.00% | |
Target Return | 5.40% | |
Equity investments, Actual Allocation | 5.00% | 5.00% |
Retirement and Post Retiremen_5
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. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Change in Fair Value of Plan Assets: | |||
Fair Value of Plan Assets at Beginning of Period | $ 185.3 | ||
Employer Contributions | 10.9 | $ 8.6 | |
Fair Value of Plan Assets at End of Period | 174 | 185.3 | |
International Plan | |||
Change in Fair Value of Plan Assets: | |||
Employer Contributions | 11.8 | 9.4 | $ 10.4 |
Pension Plan | |||
Change in Projected Benefit Obligation: | |||
Obligation at Beginning of Period | 278 | 256.9 | |
Service Cost | 7.3 | 7.2 | 8.1 |
Interest Cost | 9.3 | 9.3 | 9.8 |
Actuarial Gain | (14.9) | 16.2 | |
Less: Benefits Paid | 13.3 | 13.2 | |
Foreign Currency Translation | (1.3) | 1.6 | |
Obligation at End of Period | 265.1 | 278 | 256.9 |
Change in Fair Value of Plan Assets: | |||
Fair Value of Plan Assets at Beginning of Period | 185.3 | 160.3 | |
Actual Return on Plan Assets | (8.2) | 28.7 | |
Employer Contributions | 10.9 | 8.6 | |
Less: Benefits Paid | 13.3 | 13.2 | |
Foreign Currency Translation | (0.7) | 0.9 | |
Fair Value of Plan Assets at End of Period | 174 | 185.3 | 160.3 |
Funded Status | (91.1) | (92.7) | |
Pension Plan | Domestic Plan | |||
Change in Fair Value of Plan Assets: | |||
Funded Status | (82.4) | (83.7) | |
Pension Plan | International Plan | |||
Change in Fair Value of Plan Assets: | |||
Funded Status | (8.7) | (9) | |
Postretirement Health Coverage | |||
Change in Projected Benefit Obligation: | |||
Obligation at Beginning of Period | 12.1 | 13.8 | |
Service Cost | 0.1 | 0.1 | |
Interest Cost | 0.4 | 0.4 | |
Actuarial Gain | 2.8 | 1.3 | |
Participant Contributions | 0.4 | 0.5 | |
Less: Benefits Paid | 1 | 1.4 | |
Obligation at End of Period | 9.2 | 12.1 | $ 13.8 |
Change in Fair Value of Plan Assets: | |||
Employer Contributions | $ 0.6 | $ 0.9 |
Retirement and Post Retiremen_6
Retirement and Post Retirement Health Care Plans (Schedule Of Fair Value Of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 174 | $ 185.3 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 94.6 | 115.4 | |
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 | 10.3 | 9.6 | $ 10 |
Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 69.1 | 60.3 | |
Investments measured at net asset value | 69.1 | 60.3 | |
Net Asset Value | Common Collective Trust Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 61.7 | 51.7 | |
Net Asset Value | Global Emerging Markets Fund Limited Partnership | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 7.4 | 8.6 | |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3.9 | 4.4 | |
Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Cash and Cash Equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Common Stock | Level 1 | Domestic Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 22.4 | 27.1 | |
Common Stock | Level 1 | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 13.7 | 14.6 | |
Common Stock | Level 2 | Domestic Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Common Stock | Level 2 | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Common Stock | Level 3 | Domestic Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Common Stock | Level 3 | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 1 | U.S. Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 24.8 | 25.4 | |
Mutual Funds | Level 1 | Balanced Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8.5 | 19 | |
Mutual Funds | Level 1 | International Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2.5 | 8.3 | |
Mutual Funds | Level 1 | Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 17.3 | 15.1 | |
Mutual Funds | Level 1 | Other Plan Asset Category | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1.5 | 1.5 | |
Mutual Funds | Level 1 | Real Estate Investment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 2 | U.S. Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 2 | Balanced Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 2 | International Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 2 | Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 2 | Other Plan Asset Category | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 2 | Real Estate Investment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 3 | U.S. Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 3 | Balanced Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 3 | International Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 3 | Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 3 | Other Plan Asset Category | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds | Level 3 | Real Estate Investment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 10.3 | 9.6 | |
Estimate of Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 104.9 | 125 | |
Estimate of Fair Value | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3.9 | 4.4 | |
Estimate of Fair Value | Common Stock | Domestic Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 22.4 | 27.1 | |
Estimate of Fair Value | Common Stock | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 13.7 | 14.6 | |
Estimate of Fair Value | Mutual Funds | U.S. Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 24.8 | 25.4 | |
Estimate of Fair Value | Mutual Funds | Balanced Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8.5 | 19 | |
Estimate of Fair Value | Mutual Funds | International Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2.5 | 8.3 | |
Estimate of Fair Value | Mutual Funds | Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 17.3 | 15.1 | |
Estimate of Fair Value | Mutual Funds | Other Plan Asset Category | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1.5 | 1.5 | |
Estimate of Fair Value | Mutual Funds | Real Estate Investment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 10.3 | $ 9.6 |
Retirement and Post Retiremen_7
Retirement and Post Retirement Health Care Plans (Level 3 Plan Assets) (Details) $ in Millions | 12 Months Ended | |
Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Change in Fair Value of Plan Assets: | ||
Fair Value of Plan Assets at Beginning of Period | $ 185.3 | |
Fair Value of Plan Assets at End of Period | 174 | $ 185.3 |
Level 3 | ||
Change in Fair Value of Plan Assets: | ||
Fair Value of Plan Assets at Beginning of Period | 9.6 | 10 |
Net Purchases (Sales) | 0.6 | (0.5) |
Net Gains | 0.1 | 0.1 |
Fair Value of Plan Assets at End of Period | 10.3 | 9.6 |
Real Estate | ||
Change in Fair Value of Plan Assets: | ||
Fair Value | $ 10.3 | $ 9.6 |
Exit Capitalization Rate | Real Estate | Level 3 | Minimum | ||
Change in Fair Value of Plan Assets: | ||
Measurement Input | 0.049 | 0.049 |
Exit Capitalization Rate | Real Estate | Level 3 | Maximum | ||
Change in Fair Value of Plan Assets: | ||
Measurement Input | 0.070 | 0.070 |
Discount Rate | Real Estate | Level 3 | Minimum | ||
Change in Fair Value of Plan Assets: | ||
Measurement Input | 0.066 | 0.066 |
Discount Rate | Real Estate | Level 3 | Maximum | ||
Change in Fair Value of Plan Assets: | ||
Measurement Input | 0.080 | 0.080 |
Retirement and Post Retiremen_8
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. 29, 2018 | Dec. 30, 2017 | |
Pension Plan | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Accrued Compensation and Employee Benefits | $ 3.4 | $ 2.9 |
Pension and Other Post Retirement Benefits | 87.7 | 89.8 |
Pension plan balance sheet total | 91.1 | 92.7 |
Net Actuarial (Gain) Loss | 52.3 | 51.3 |
Prior Service Cost | 1.4 | 1 |
Amounts Recognized in Accumulated Other Comprehensive Loss | 53.7 | 52.3 |
Postretirement Health Coverage | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Accrued Compensation and Employee Benefits | 0.7 | 0.9 |
Pension and Other Post Retirement Benefits | 8.5 | 11.2 |
Pension plan balance sheet total | 9.2 | 12.1 |
Net Actuarial (Gain) Loss | $ 3.7 | $ 0.9 |
Retirement and Post Retiremen_9
Retirement and Post Retirement Health Care Plans (Schedule Of Weighted-Average Assumptions Used To Determine Projected Benefit Obligation) (Details) | Dec. 29, 2018 | Dec. 30, 2017 |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount Rate | 4.40% | 3.80% |
Retirement and Post Retireme_10
Retirement and Post Retirement Health Care Plans (Schedule Of Assumptions Used To Determine Net Periodic Pension Cost) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||
Discount Rate | 3.80% | 4.30% | 4.60% |
Expected Long-Term Rate of Return on Assets | 6.90% | 7.00% | 7.20% |
Retirement and Post Retireme_11
Retirement and Post Retirement Health Care Plans (Schedule of Projected Benefit Obligation Assumptions) (Details) | Dec. 29, 2018 | Dec. 30, 2017 |
Postretirement Health Coverage | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount Rate | 4.20% | 3.50% |
Retirement and Post Retireme_12
Retirement and Post Retirement Health Care Plans (Schedule of Net Periodic Benefit Costs and Benefit Payments Expected Future Service) (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | $ 7,300,000 | $ 7,200,000 | $ 8,100,000 |
Interest Cost | 9,300,000 | 9,300,000 | 9,800,000 |
Expected Return on Plan Assets | (11,900,000) | (11,200,000) | (11,900,000) |
Amortization of Net Actuarial Loss | (3,500,000) | (2,300,000) | (3,100,000) |
Amortization of Prior Service Cost | 200,000 | 200,000 | 200,000 |
Net Periodic Benefit Cost | 8,400,000 | 7,800,000 | 9,300,000 |
Prior Service Cost | 200,000 | 100,000 | 100,000 |
Net Actuarial (Gain) Loss | 2,700,000 | 1,500,000 | 2,000,000 |
Total Recognized in OCI | 2,900,000 | 1,600,000 | $ 2,100,000 |
2,019 | 15,400,000 | ||
2,020 | 15,800,000 | ||
2,021 | 16,400,000 | ||
2,022 | 16,500,000 | ||
2,023 | 16,900,000 | ||
2024-2027 | 88,700,000 | ||
Postretirement Health Coverage | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 100,000 | 100,000 | |
Interest Cost | 400,000 | 400,000 | |
Amortization of Prior Service Cost | 0 | ||
Net Periodic Benefit Cost | 500,000 | $ 500,000 | |
2,019 | 700,000 | ||
2,020 | 800,000 | ||
2,021 | 900,000 | ||
2,022 | 900,000 | ||
2,023 | 900,000 | ||
2024-2027 | $ 3,800,000 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jul. 24, 2018 | Nov. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock acquired and retired (shares) | 1,652,887,000,000 | 576,804,000,000 | |||
Treasury stock acquired (usd per share) | $ 77.31 | $ 78.12 | |||
Stock repurchased (shares) | $ 127,800,000 | $ 45,100,000 | |||
Remaining number of shares authorized to be repurchased (shares) | 196,900,000 | ||||
Share-based compensation expense | $ 16,900,000 | 13,600,000 | $ 13,300,000 | ||
Income tax benefit recognized for share-based compensation | 4,100,000 | 5,200,000 | 5,100,000 | ||
Fair value of shares and options vested | 12,800,000 | $ 11,900,000 | $ 11,300,000 | ||
Unrecognized compensation cost related to share-based compensation | $ 19,500,000 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 1 year 9 months 18 days | ||||
Options and SAR's | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Expiration period | 10 years | ||||
Allocated share-based compensation expense | $ 4,700,000 | ||||
Compensation costs not yet recognized | $ 6,400,000 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 3 years 1 month 6 days | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Allocated share-based compensation expense | $ 1,200,000 | ||||
Compensation costs not yet recognized | $ 400,000 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 4 months 24 days | ||||
Weighted average grant date fair value (in dollars per share) | $ 74.68 | $ 80.70 | $ 57.43 | ||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ 7,800,000 | ||||
Compensation costs not yet recognized | $ 6,800,000 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 1 year 7 months 6 days | ||||
Weighted average grant date fair value (in dollars per share) | $ 74.51 | 80.48 | 57.50 | ||
Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Expiration period | 3 years | ||||
Allocated share-based compensation expense | $ 3,200,000 | ||||
Compensation costs not yet recognized | $ 5,800,000 | ||||
Share-based compensation expected to recognize over a weighted average period, years | 1 year 9 months 18 days | ||||
Weighted average grant date fair value (in dollars per share) | $ 83.80 | $ 90.82 | $ 51.84 | ||
Performance Share Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Potential payout as a percentage of target | 0.00% | ||||
Performance Share Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Potential payout as a percentage of target | 200.00% | ||||
2013 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 3,000,000 | ||||
2018 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 250,000,000 | ||||
2018 Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized shares of common stock (in shares) | 2,100,000 | ||||
Share available for future grant or payment under the various plans (in shares) | 2,600,000 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule Of Share-Based Compensation Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from the Exercise of Stock Options | $ 0 | $ 0.4 | $ 0.5 |
Options and SAR's | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of share-based incentive awards exercised | 5.2 | 4.3 | 2.5 |
Proceeds from the Exercise of Stock Options | 0 | 0.4 | 0.5 |
Total fair value of share-based incentive awards vested | $ 3.9 | $ 4.3 | $ 4.9 |
Shareholders' Equity (Assumptio
Shareholders' Equity (Assumptions Used in Black Scholes valuation for Options and SAR's) (Details) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Options and SAR's | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Per Share Weighted Average Fair Value of Grants (in dollars per share) | $ 22.73 | $ 23.31 | $ 15.22 |
Risk-Free Interest Rate | 2.90% | 2.10% | 1.40% |
Expected Life (Years) | 7 years | 7 years | 7 years |
Expected Volatility | 27.80% | 28.60% | 29.60% |
Expected Dividend Yield | 1.40% | 1.30% | 1.70% |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-Free Interest Rate | 2.70% | 1.60% | |
Expected Life (Years) | 3 years | 3 years | |
Expected Volatility | 25.00% | 24.00% | |
Expected Dividend Yield | 1.40% | 1.30% |
Shareholders' Equity (Schedul_2
Shareholders' Equity (Schedule Of Share-Based Incentive Plan Grant Activity) (Details) - Options and SAR's $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($)$ / sharesshares | |
Shares | |
Shares Outstanding, Beginning Balance (in shares) | shares | 1,601,791 |
Shares, Granted (in shares) | shares | 193,357 |
Shares, Exercised (in shares) | shares | (249,324) |
Shares, Forfeited (in shares) | shares | (5,206) |
Shares, Expired (in shares) | shares | (1,250) |
Shares Outstanding, Ending Balance (in shares) | shares | 1,539,368 |
Shares, Exercisable, Ending Balance (in shares) | shares | 928,987 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted Average Exercise Price. Beginning Balance (in dollars per share) | $ / shares | $ 66.46 |
Weighted Average Exercise Price, Granted (in dollars per share) | $ / shares | 77.60 |
Weighted Average Exercise Price, Exercised (in dollars per share) | $ / shares | 57.54 |
Weighted Average Exercise Price, Forfeited (in dollars per share) | $ / shares | 70.30 |
Weighted Average Exercise Price, Expired (in dollars per share) | $ / shares | 54.28 |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ / shares | 69.31 |
Weighted Average Exercise Price, Exercisable, End of Period (in dollars per share) | $ / shares | $ 66.61 |
Outstanding Weighted Average Remaining Contractual Terms (years) | 5 years 6 months 19 days |
Exercisable Weighted Average Remaining Contractual Term (years) | 3 years 10 months 14 days |
Outstanding Aggregate Intrinsic Value | $ | $ 16 |
Exercisable Aggregate Intrinsic Value | $ | $ 12 |
Shareholders' Equity (Other tha
Shareholders' Equity (Other than Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restricted Stock | |||
Shares | |||
Unvested Shares, Beginning Balance (in shares) | 13,941 | ||
Granted, Shares (in shares) | 16,490 | ||
Vested, Shares (in shares) | (13,941) | ||
Forfeited, Shares (in shares) | (830) | ||
Unvested Shares, Ending Balance (in shares) | 15,660 | 13,941 | |
Weighted Average Fair Value at Grant Date | |||
Beginning Balance (in dollars per share) | $ 80.70 | ||
Granted (in dollars per share) | 74.68 | $ 80.70 | $ 57.43 |
Vested (in dollars per share) | 80.70 | ||
Forfeited (in dollars per share) | 80.25 | ||
Ending Balance (in dollars per share) | $ 74.38 | $ 80.70 | |
Weighted Average Remaining Contractual Term | 4 months 9 days | 4 months 18 days | |
Restricted Stock Units (RSUs) | |||
Shares | |||
Unvested Shares, Beginning Balance (in shares) | 260,533 | ||
Granted, Shares (in shares) | 78,140 | ||
Vested, Shares (in shares) | (98,636) | ||
Forfeited, Shares (in shares) | (5,213) | ||
Unvested Shares, Ending Balance (in shares) | 234,824 | 260,533 | |
Weighted Average Fair Value at Grant Date | |||
Beginning Balance (in dollars per share) | $ 70.81 | ||
Granted (in dollars per share) | 74.51 | $ 80.48 | 57.50 |
Vested (in dollars per share) | 76.25 | ||
Forfeited (in dollars per share) | 69.71 | ||
Ending Balance (in dollars per share) | $ 69.78 | $ 70.81 | |
Weighted Average Remaining Contractual Term | 1 year 6 months 22 days | 1 year 8 months | |
Performance Share Units | |||
Shares | |||
Unvested Shares, Beginning Balance (in shares) | 155,116 | ||
Granted, Shares (in shares) | 50,659 | ||
Vested, Shares (in shares) | (1,359) | ||
Forfeited, Shares (in shares) | (36,576) | ||
Unvested Shares, Ending Balance (in shares) | 167,840 | 155,116 | |
Weighted Average Fair Value at Grant Date | |||
Beginning Balance (in dollars per share) | $ 70.43 | ||
Granted (in dollars per share) | 83.80 | $ 90.82 | $ 51.84 |
Vested (in dollars per share) | 57.43 | ||
Forfeited (in dollars per share) | 83.55 | ||
Ending Balance (in dollars per share) | $ 71.71 | $ 70.43 | |
Weighted Average Remaining Contractual Term | 1 year 9 months 29 days | 1 year 11 months 23 days |
Shareholders' Equity (Assumpt_2
Shareholders' Equity (Assumptions Used in Monte Carlo Valuation for Performance Share Units) (Details) - Performance Share Units | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-Free Interest Rate | 2.70% | 1.60% |
Expected Life (Years) | 3 years | 3 years |
Expected Volatility | 25.00% | 24.00% |
Expected Dividend Yield | 1.40% | 1.30% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Tax act, income tax expense (benefit) impact | $ 1 | ||||
Expected tax liability to be reversed, provisional | 51 | ||||
Deemed repatriation of foreign earnings, tax expense, provisional | 40 | ||||
Foreign earnings not deemed repatriated, tax expense, provisional | 10 | ||||
Remeasurement of deferred tax assets and liabilities | $ 52.7 | ||||
Deemed repatriation of foreign earnings, tax expense | 29.8 | ||||
Foreign earnings not deemed repatriated, tax expense | 13.3 | ||||
Deferred tax liabilities | (106.8) | (114.1) | $ (106.8) | ||
Deferred tax assets, non-current | 28.5 | 34.2 | 28.5 | ||
Deferred tax liabilities | (135.3) | (148.3) | (135.3) | ||
Unrecognized tax benefits | 6.7 | 6.5 | 6.7 | $ 10 | $ 8.3 |
Unrecognized tax benefits, recognized interest expense | 0.2 | (0.2) | 0.2 | ||
Unrecognized tax benefits, accrued interest | 1.7 | 1.9 | 1.7 | $ 1.9 | |
Unrecognized tax benefits including accrued that could change in coming year | 0.4 | ||||
Net operating losses | $ 12.9 | $ 13.1 | $ 12.9 | ||
Tax effected net operating losses, expiration period | 15 years | 15 years | |||
Change in valuation allowance | $ 4.9 | $ 5.9 | |||
Income tax holiday, amount of decrease in provision for income taxes | 4.7 | ||||
Undistributed earnings of foreign subsidiaries | 103.5 | ||||
Deferred tax liability for local withholding taxes, not recorded | $ 15.8 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 121.5 | $ 147.4 | $ 143.4 |
Foreign | 170.7 | 129.8 | 123 |
Income before Taxes | $ 292.2 | $ 277.2 | $ 266.4 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ 4.5 | $ 36.9 | $ 23.1 |
State | 0.8 | (0.3) | 3.5 |
Foreign | 37.9 | 32.2 | 30.4 |
Total | 43.2 | 68.8 | 57 |
Deferred | |||
Federal | 16.6 | (7.2) | 5.6 |
State | 2.1 | 2.2 | 1.8 |
Foreign | (5.5) | (4.7) | (7.3) |
Total | 13.2 | (9.7) | 0.1 |
Total | $ 56.4 | $ 59.1 | $ 57.1 |
Income Taxes (Statutory Tax Rat
Income Taxes (Statutory Tax Rate and Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Federal Statutory Rate | 21.00% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Benefit | 1.10% | 0.30% | 1.50% |
Domestic Production Activities Deduction | (0.00%) | (1.00%) | (1.10%) |
Research and Development Credit | (2.50%) | (3.00%) | (2.30%) |
Valuation Allowance | (0.30%) | (0.60%) | 0.00% |
Tax Cuts and Jobs Act of 2017 | (0.013) | (0.004) | 0 |
Tax on Repatriation | 1.30% | 0.00% | 0.00% |
Adjustments to Tax Accruals and Reserves | 0.00% | (1.90%) | 0.70% |
Other | 0.50% | (0.70%) | (4.40%) |
Effective Tax Rate | 19.30% | 21.30% | 21.40% |
China | |||
Income Taxes [Line Items] | |||
Foreign Rate Differential | 0.90% | (2.10%) | (2.00%) |
All Other Tax Authorities | |||
Income Taxes [Line Items] | |||
Foreign Rate Differential | (1.40%) | (4.30%) | (6.00%) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Asset (Liability)) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Accrued Employee Benefits | $ 53.9 | $ 53.4 |
Bad Debt Allowances | 2.2 | 2.3 |
Warranty Accruals | 3.6 | 3.1 |
Inventory | 14.6 | 12.9 |
Accrued Liabilities | (8) | (5.3) |
Derivative Instruments, Liabilities | (4.3) | |
Derivative Instruments, Assets | 1.8 | |
Tax Loss Carryforward | 13.1 | 12.9 |
Valuation Allowance | (4.9) | (5.9) |
Other | 14 | 1.2 |
Deferred Tax Assets | 90.3 | 70.3 |
Property Related | (32.2) | (26.2) |
Intangible Items | (172.2) | (150.9) |
Deferred Tax Liabilities | (204.4) | (177.1) |
Net Deferred Tax Liability | $ (114.1) | $ (106.8) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits - Beginning of Year | $ 6.7 | $ 10 | $ 8.3 |
Gross Increases from Prior Period Tax Positions | 0 | 0 | 0 |
Gross Increases from Current Period Tax Positions | 0.3 | 2.7 | 2 |
Settlements with Taxing Authorities | (0.1) | (5.3) | 0 |
Lapse of Statute of Limitations | (0.4) | (0.7) | (0.3) |
Unrecognized Tax Benefits - End of Year | $ 6.5 | $ 6.7 | $ 10 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning Balance | $ 16 | $ 20.3 |
Less: Payments | 20.1 | 23.5 |
Provisions | 20.2 | 19 |
Acquisitions | 0.3 | 0 |
Held for Sale | (1.4) | 0 |
Translation Adjustments | (0.2) | 0.2 |
Ending Balance | $ 14.8 | $ 16 |
Leases And Rental Commitments_2
Leases And Rental Commitments (Future Minimum Rental Commitments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Leases, Operating [Abstract] | |||
Rental expenses charged to operations | $ 35.5 | $ 35.1 | $ 31.9 |
2,019 | 30.8 | ||
2,020 | 24.7 | ||
2,021 | 19.2 | ||
2,022 | 11.7 | ||
2,023 | 6.5 | ||
Thereafter | $ 16.2 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative [Line Items] | ||
Derivative losses on closed hedge instruments in AOCI that will be realized in earnings when the hedged items impact earnings | $ (2.1) | $ (2) |
AOCI balance related to hedging activities | (5.4) | |
Net current deferred gains (losses) expected to be realized | (3.2) | |
Receive-Variable/Pay-Fixed Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 88.4 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Notional Amounts) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Mexican Peso | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 182.3 | $ 137.1 |
Chinese Renminbi | ||
Derivative [Line Items] | ||
Notional amount of derivative | 125.5 | 214.9 |
Indian Rupee | ||
Derivative [Line Items] | ||
Notional amount of derivative | 44 | 35.8 |
Euro | ||
Derivative [Line Items] | ||
Notional amount of derivative | 225.7 | 26.4 |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional amount of derivative | 11.4 | 47.7 |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional amount of derivative | 13.2 | 14.9 |
Thai Baht | ||
Derivative [Line Items] | ||
Notional amount of derivative | 6.7 | 7.5 |
British Pound | ||
Derivative [Line Items] | ||
Notional amount of derivative | 15.3 | 2.7 |
Copper | Commodity Forwards | ||
Derivative [Line Items] | ||
Notional amount of derivative | 95.4 | 80.8 |
Aluminum | Commodity Forwards | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 10 | $ 7.7 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule Of Fair Values Of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset | $ 6.7 | $ 26.6 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative Asset | 7.2 | 3.2 |
Current Hedging Obligations | ||
Derivative [Line Items] | ||
Derivative Liability | 11.3 | 8.1 |
Noncurrent Hedging Obligations | ||
Derivative [Line Items] | ||
Derivative Liability | 1.2 | 0.9 |
Designated As Hedging Instruments | Prepaid Expenses and Other Current Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 6 | 11.5 |
Designated As Hedging Instruments | Prepaid Expenses and Other Current Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0.1 | 10.8 |
Designated As Hedging Instruments | Other Noncurrent Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 7.2 | 2.5 |
Designated As Hedging Instruments | Other Noncurrent Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0.7 |
Designated As Hedging Instruments | Current Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Liability | 4.3 | 7.9 |
Designated As Hedging Instruments | Current Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Liability | 6 | 0 |
Designated As Hedging Instruments | Noncurrent Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Liability | 1.1 | 0.9 |
Designated As Hedging Instruments | Noncurrent Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Liability | 0.1 | 0 |
Not Designated As Hedging Instruments | Prepaid Expenses and Other Current Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0.6 | 4.1 |
Not Designated As Hedging Instruments | Prepaid Expenses and Other Current Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0.2 |
Not Designated As Hedging Instruments | Other Noncurrent Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Not Designated As Hedging Instruments | Other Noncurrent Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Not Designated As Hedging Instruments | Current Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Liability | 0.7 | 0.2 |
Not Designated As Hedging Instruments | Current Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Liability | 0.3 | 0 |
Not Designated As Hedging Instruments | Noncurrent Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Liability | 0 | 0 |
Not Designated As Hedging Instruments | Noncurrent Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Liability | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Effect on Income and Comprehensive Income) (Details) - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Designated As Hedging Instruments | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ (5.2) | $ 68.5 | $ (40) |
Designated As Hedging Instruments | Sales Revenue, Net | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0.2 | 0.9 | 0.2 |
Designated As Hedging Instruments | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 7.9 | (9.9) | (45.7) |
Designated As Hedging Instruments | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 6.1 | ||
Designated As Hedging Instruments | Interest Expense | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 1.6 | (2.8) | (4.8) |
Designated As Hedging Instruments | Commodity Forwards | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | (17.9) | 21.7 | 6.4 |
Designated As Hedging Instruments | Commodity Forwards | Sales Revenue, Net | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Designated As Hedging Instruments | Commodity Forwards | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 5 | 12.2 | (13.6) |
Designated As Hedging Instruments | Commodity Forwards | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | ||
Designated As Hedging Instruments | Commodity Forwards | Interest Expense | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Designated As Hedging Instruments | Currency Forwards | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 11 | 46.3 | (46.1) |
Designated As Hedging Instruments | Currency Forwards | Sales Revenue, Net | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0.2 | 0.9 | 0.2 |
Designated As Hedging Instruments | Currency Forwards | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 2.9 | (22.1) | (32.1) |
Designated As Hedging Instruments | Currency Forwards | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 6.1 | ||
Designated As Hedging Instruments | Currency Forwards | Interest Expense | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Designated As Hedging Instruments | Interest Rate Swap Contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 1.7 | 0.5 | (0.3) |
Designated As Hedging Instruments | Interest Rate Swap Contracts | Sales Revenue, Net | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Designated As Hedging Instruments | Interest Rate Swap Contracts | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Designated As Hedging Instruments | Interest Rate Swap Contracts | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | ||
Designated As Hedging Instruments | Interest Rate Swap Contracts | Interest Expense | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 1.6 | (2.8) | (4.8) |
Not Designated As Hedging Instruments | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (0.5) | (1.1) | 2.6 |
Not Designated As Hedging Instruments | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (6.8) | 14.3 | (5.2) |
Not Designated As Hedging Instruments | Commodity Forwards | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | (0.5) | (1.1) | 2.6 |
Not Designated As Hedging Instruments | Commodity Forwards | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Not Designated As Hedging Instruments | Currency Forwards | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Not Designated As Hedging Instruments | Currency Forwards | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts reclassified from Other Comprehensive Income (Loss) | $ (6.8) | $ 14.3 | $ (5.2) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Offsetting) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Currency Forwards | Prepaid Expenses and Other Current Assets | ||
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts as Presented in the Consolidated Balance Sheet | $ 15.6 | |
Derivative Contract Amounts Subject to Right of Offset | $ (3.6) | (5.9) |
Derivative Contracts as Presented on a Net Basis | 3 | 9.7 |
Currency Forwards | Other Noncurrent Assets | ||
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts as Presented in the Consolidated Balance Sheet | 2.5 | |
Derivative Contract Amounts Subject to Right of Offset | (0.6) | (0.7) |
Derivative Contracts as Presented on a Net Basis | 6.6 | 1.8 |
Currency Forwards | Current Hedging Obligations | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts as Presented in the Consolidated Balance Sheet | 8.1 | |
Derivative Contract Amounts Subject to Right of Offset | (3.6) | (5.9) |
Derivative Contracts as Presented on a Net Basis | 1.4 | 2.2 |
Currency Forwards | Noncurrent Hedging Obligations | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts as Presented in the Consolidated Balance Sheet | 0.9 | |
Derivative Contract Amounts Subject to Right of Offset | (0.6) | (0.7) |
Derivative Contracts as Presented on a Net Basis | 0.5 | 0.2 |
Commodity Contracts | Prepaid Expenses and Other Current Assets | ||
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts as Presented in the Consolidated Balance Sheet | 11 | |
Derivative Contract Amounts Subject to Right of Offset | (0.1) | 0 |
Derivative Contracts as Presented on a Net Basis | 0 | 11 |
Commodity Contracts | Other Noncurrent Assets | ||
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts as Presented in the Consolidated Balance Sheet | 0.7 | |
Derivative Contract Amounts Subject to Right of Offset | 0 | |
Derivative Contracts as Presented on a Net Basis | $ 0.7 | |
Commodity Contracts | Current Hedging Obligations | ||
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Contract Amounts Subject to Right of Offset | (0.1) | |
Derivative Contracts as Presented on a Net Basis | 6.2 | |
Commodity Contracts | Noncurrent Hedging Obligations | ||
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Contract Amounts Subject to Right of Offset | 0 | |
Derivative Contracts as Presented on a Net Basis | $ 0.1 |
Fair Value (Schedule of Financi
Fair Value (Schedule of Financial Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Prepaid Expenses and Other Current Assets | Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 6.6 | $ 15.6 |
Prepaid Expenses and Other Current Assets | Derivative Commodity Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0.1 | 11 |
Other Noncurrent Assets | Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 7.2 | 2.5 |
Other Noncurrent Assets | Derivative Commodity Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0.7 |
Other Noncurrent Assets | Assets Held in Rabbi Trust | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 5.6 | 5.7 |
Current Hedging Obligations | Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 5 | 8.1 |
Current Hedging Obligations | Derivative Commodity Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 6.3 | 0 |
Noncurrent Hedging Obligations | Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 1.1 | 0.9 |
Noncurrent Hedging Obligations | Derivative Commodity Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | $ 0.1 | $ 0 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 1.2 | $ 0.6 | |
Provision | 7.7 | 14.1 | $ 6.8 |
Less: Payments | 8.7 | 13.5 | |
Ending Balance | 0.2 | 1.2 | 0.6 |
Restructuring Costs | 7.6 | 13.4 | 5.7 |
Total Restructuring-Related Costs | 0.1 | 0.7 | 1.1 |
Total Restructuring and Restructuring-Related Costs | 7.7 | 14.1 | 6.8 |
Expected future restructuring charges | 2.2 | ||
Commercial and Industrial Systems | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 5.6 | 10.9 | 2.5 |
Total Restructuring and Restructuring-Related Costs | 5.6 | 10.9 | 2.5 |
Climate Solutions | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 1.8 | 2.5 | 2.6 |
Total Restructuring and Restructuring-Related Costs | 1.8 | 2.5 | 2.6 |
Power Transmission Solutions | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0.3 | 0.7 | 1.7 |
Total Restructuring and Restructuring-Related Costs | 0.3 | 0.7 | 1.7 |
Cost of Sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 3.2 | 11.5 | 4.7 |
Restructuring Costs | 3.1 | 10.8 | 4.2 |
Total Restructuring-Related Costs | 0.1 | 0.7 | 0.5 |
Total Restructuring and Restructuring-Related Costs | 3.2 | 11.5 | 4.7 |
Operating Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 4.5 | 2.6 | 2.1 |
Restructuring Costs | 4.5 | 2.6 | 1.5 |
Total Restructuring-Related Costs | 0 | 0 | 0.6 |
Total Restructuring and Restructuring-Related Costs | 4.5 | 2.6 | 2.1 |
Employee Termination Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | 0.3 | 4.3 | 0.8 |
Total Restructuring-Related Costs | 0.1 | 0.7 | 1.1 |
Expected future restructuring charges | 0.8 | ||
Employee Termination Expenses | Cost of Sales | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | 0 | 2.6 | 0.5 |
Total Restructuring-Related Costs | 0.1 | 0.7 | 0.5 |
Employee Termination Expenses | Operating Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | 0.3 | 1.7 | 0.3 |
Total Restructuring-Related Costs | 0 | 0 | 0.6 |
Facility Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | 5.7 | 5.2 | 3.2 |
Expected future restructuring charges | 1.4 | ||
Facility Related Costs | Cost of Sales | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | 2.3 | 4.3 | 2.9 |
Facility Related Costs | Operating Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | 3.4 | 0.9 | 0.3 |
Other Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | 1.6 | 3.9 | 1.7 |
Other Expenses | Cost of Sales | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | 0.8 | 3.9 | 0.8 |
Other Expenses | Operating Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Costs | $ 0.8 | $ 0 | $ 0.9 |
Quarterly Financial Informati_3
Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Interim Period, Costs Not Allocable [Line Items] | |||||||
Net Sales | $ 881.7 | $ 925.4 | $ 959.7 | $ 878.8 | $ 3,645.6 | $ 3,360.3 | $ 3,224.5 |
Gross Profit | 239.7 | 242.6 | 247.4 | 234.9 | 964.6 | 883.6 | 865 |
Income from Operations | 89.8 | 69.4 | 99.6 | 88.2 | 347 | 331.1 | 322.5 |
Net Income | 56.5 | 52.7 | 67.3 | 59.3 | 235.8 | 218.1 | 209.3 |
Net Income Attributable to Regal Beloit Corporation | $ 55.6 | $ 51.3 | $ 65.9 | $ 58.4 | $ 231.2 | $ 213 | $ 203.4 |
Basic (in dollars per shares) | $ 1.29 | $ 1.18 | $ 1.51 | $ 1.32 | $ 5.30 | $ 4.78 | $ 4.55 |
Assuming Dilution (in dollars per share) | $ 1.28 | $ 1.17 | $ 1.50 | $ 1.31 | $ 5.26 | $ 4.74 | $ 4.52 |
Basic (in shares) | 43.1 | 43.4 | 43.8 | 44.2 | 43.6 | 44.6 | 44.7 |
Assuming Dilution (in shares) | 43.4 | 43.8 | 44.1 | 44.5 | 43.9 | 44.9 | 45 |
Goodwill Impairment | $ 9.5 | $ 0 | $ 0 | ||||
Commercial and Industrial Systems | |||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||
Net Sales | $ 436.7 | $ 462.3 | $ 469 | $ 414 | 1,782 | 1,604.3 | 1,530.9 |
Income from Operations | 32.1 | 35.3 | 30.5 | 29.1 | |||
Goodwill Impairment | 0 | ||||||
Climate Solutions | |||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||
Net Sales | 232.2 | 255.4 | 277.3 | 259.9 | 1,024.8 | 990.6 | 960 |
Income from Operations | 33.3 | 6 | 44 | 32.3 | |||
Goodwill Impairment | 9.5 | ||||||
Power Transmission Solutions | |||||||
Interim Period, Costs Not Allocable [Line Items] | |||||||
Net Sales | 212.8 | 207.7 | 213.4 | 204.9 | 838.8 | $ 765.4 | $ 733.6 |
Income from Operations | $ 24.4 | $ 28.1 | $ 25.1 | $ 26.8 | |||
Goodwill Impairment | $ 0 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Allowance For Receivables - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | $ 11.3 | $ 11.5 | $ 11.3 |
Charged to Expenses | 6.9 | 1.3 | 1.6 |
Deductions | (2.1) | (2.8) | (1.2) |
Adjustments | (2.8) | 1.3 | (0.2) |
Balance End of Year | $ 13.3 | $ 11.3 | $ 11.5 |
Uncategorized Items - rbc-20181
Label | Element | Value |
Accounting Standards Update 2018-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,600,000) |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 4,600,000 |