Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 26, 2020 | Oct. 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 26, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-07283 | |
Entity Registrant Name | REGAL BELOIT CORP | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0875718 | |
Entity Address, Address Line One | 200 State Street | |
Entity Address, City or Town | Beloit | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53511 | |
City Area Code | 608 | |
Local Phone Number | 364-8800 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | RBC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,595,282 | |
Entity Central Index Key | 0000082811 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --01-02 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Income Statement [Abstract] | ||||
Net Sales | $ 758.2 | $ 772.3 | $ 2,126.5 | $ 2,499.8 |
Cost of Sales | 536.6 | 570.4 | 1,531.3 | 1,829.3 |
Gross Profit | 221.6 | 201.9 | 595.2 | 670.5 |
Operating Expenses | 131.6 | 128.9 | 385.1 | 416.3 |
Gain (Loss) on Divestiture of Businesses | 0 | 0.2 | (0.1) | (45.2) |
Asset Impairments | 0 | 0 | 4.3 | 10 |
Total Operating Expenses | 131.6 | 129.1 | 389.3 | 381.1 |
Income from Operations | 90 | 72.8 | 205.9 | 289.4 |
Other (Income) Expenses, net | (1.1) | 0.1 | (3.3) | 0.4 |
Interest Expense | 9 | 13.5 | 31.2 | 40.5 |
Interest Income | 1.3 | 1.5 | 3.8 | 4 |
Income before Taxes | 83.4 | 60.7 | 181.8 | 252.5 |
Provision for Income Taxes | 17.1 | 9.9 | 39.5 | 47.5 |
Net Income | 66.3 | 50.8 | 142.3 | 205 |
Less: Net Income Attributable to Noncontrolling Interests | 1.3 | 1.1 | 3.4 | 2.8 |
Net Income Attributable to Regal Beloit Corporation | $ 65 | $ 49.7 | $ 138.9 | $ 202.2 |
Earnings Per Share Attributable to Regal Beloit Corporation: | ||||
Basic (in dollars per share) | $ 1.60 | $ 1.20 | $ 3.42 | $ 4.78 |
Assuming Dilution (in dollars per share) | $ 1.60 | $ 1.19 | $ 3.41 | $ 4.75 |
Weighted Average Number of Shares Outstanding: | ||||
Basic (in shares) | 40.6 | 41.5 | 40.6 | 42.3 |
Assuming Dilution (in shares) | 40.8 | 41.7 | 40.7 | 42.6 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 66.3 | $ 50.8 | $ 142.3 | $ 205 |
Other Comprehensive Income (Loss) Net of Tax: | ||||
Foreign Currency Translation Adjustments | 36.7 | (38.5) | (2.8) | (31.7) |
Reclassification of Foreign Currency Translation Adjustments included in Net Income, Net of $0.0 Million Tax Effects for the Three Months and Nine Months Ended September 26, 2020 and September 28, 2019, Respectively | 0 | 0 | 0 | 1.6 |
Hedging Activities: | ||||
Increase (Decrease) in Fair Value of Hedging Activities, Net of Tax Effects of $1.9 Million and $(1.6) Million for the Three Months Ended September 26, 2020 and September 28, 2019 and $(3.9) Million and $1.4 Million for the Nine Months Ended September 26, 2020 and September 28, 2019, Respectively | 6 | (4.9) | (12.3) | 4.4 |
Reclassification of Losses (Gains) included in Net Income, Net of Tax Effects of $2.0 Million and $(1.0) Million for the Three Months Ended September 26, 2020 and September 28, 2019 and $1.9 Million and $(1.0) Million for the Nine Months Ended September 26, 2020 and September 28, 2019, Respectively | 6.2 | (3.2) | 5.8 | (3.2) |
Pension and Post Retirement Plans: | ||||
Reclassification Adjustments for Pension and Post Retirement Benefits included in Net Income, Net of Tax Effects of $0.0 Million and $0.1 Million for the Three Months Ended September 26, 2020 and September 28, 2019 and $0.1 Million and $0.3 Million for the Nine Months Ended September 26, 2020 and September 28, 2019, Respectively | 0.1 | 0.4 | 0.3 | 1.3 |
Other Comprehensive Income (Loss) | 49 | (46.2) | (9) | (27.6) |
Comprehensive Income | 115.3 | 4.6 | 133.3 | 177.4 |
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 2.2 | (0.1) | 3.5 | 1.6 |
Comprehensive Income Attributable to Regal Beloit Corporation | $ 113.1 | $ 4.7 | $ 129.8 | $ 175.8 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Reclassification of foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Increase in fair value of hedging activities, tax effects | 1.9 | (1.6) | (3.9) | 1.4 |
Reclassification of losses (gains) included in net income, tax effects | 2 | (1) | 1.9 | (1) |
Reclassification adjustments for pension and post retirement benefits included in net income, tax effects | $ 0 | $ 0.1 | $ 0.1 | $ 0.3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Current Assets: | ||
Cash and Cash Equivalents | $ 487.5 | $ 331.4 |
Trade Receivables, Less Allowances of $15.6 Million in 2020 and $9.7 Million in 2019 | 472.5 | 461.4 |
Inventories | 677.2 | 678.4 |
Prepaid Expenses and Other Current Assets | 110.4 | 133.7 |
Assets Held for Sale | 5 | 2.8 |
Total Current Assets | 1,752.6 | 1,607.7 |
Net Property, Plant, and Equipment | 549.4 | 605 |
Operating Lease Assets | 74.7 | 71 |
Goodwill | 1,508.4 | 1,501.3 |
Intangible Assets, Net of Amortization | 535.4 | 567.2 |
Deferred Income Tax Benefits | 43.9 | 58.4 |
Other Noncurrent Assets | 15 | 20.1 |
Total Assets | 4,479.4 | 4,430.7 |
Current Liabilities: | ||
Accounts Payable | 363.8 | 337 |
Dividends Payable | 12.2 | 12.2 |
Current Hedging Obligations | 8 | 3.4 |
Accrued Compensation and Employee Benefits | 82.1 | 67.3 |
Other Accrued Expenses | 112.4 | 118.4 |
Current Operating Lease Liabilities | 21.7 | 21.6 |
Current Maturities of Long-Term Debt | 230.6 | 0.6 |
Total Current Liabilities | 830.8 | 560.5 |
Long-Term Debt | 840.2 | 1,136.9 |
Deferred Income Taxes | 177.6 | 171.9 |
Noncurrent Hedging Obligations | 2.3 | 1.2 |
Pension and Other Post Retirement Benefits | 74.1 | 80.8 |
Noncurrent Operating Lease Liabilities | 55.5 | 51 |
Other Noncurrent Liabilities | 47 | 48 |
Contingencies (see Note 13) | ||
Regal Beloit Corporation Shareholders' Equity: | ||
Common Stock, $0.01 par value, 100.0 Million Shares Authorized, 40.6 Million and 40.8 Million Shares Issued and Outstanding for 2020 and 2019, Respectively | 0.4 | 0.4 |
Additional Paid-In Capital | 695.9 | 701.8 |
Retained Earnings | 1,972.5 | 1,886.7 |
Accumulated Other Comprehensive Loss | (246.9) | (237.8) |
Total Regal Beloit Corporation Shareholders' Equity | 2,421.9 | 2,351.1 |
Noncontrolling Interests | 30 | 29.3 |
Total Equity | 2,451.9 | 2,380.4 |
Total Liabilities and Equity | $ 4,479.4 | $ 4,430.7 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 15.6 | $ 9.7 |
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) | 40,600,000 | 40,800,000 |
Common stock, shares outstanding (in shares) | 40,600,000 | 40,800,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock $0.01 Par Value | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of ASU 2016-13 | $ 2,338.5 | $ 0.4 | $ 783.6 | $ 1,777.9 | $ (251.4) | $ 28 | |
Beginning Balance at Dec. 29, 2018 | 2,338.5 | 0.4 | 783.6 | 1,777.9 | (251.4) | 28 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 205 | 202.2 | 2.8 | ||||
Other Comprehensive Income (Loss) | (27.6) | (26.4) | (1.2) | ||||
Dividends Declared | (36.9) | (36.9) | |||||
Stock Options Exercised | (8) | (8) | |||||
Stock Repurchase | (150.1) | (77.8) | (72.3) | ||||
Share-Based Compensation | 10 | 10 | |||||
Adoption of ASU 2016-13 | 2,338.5 | 0.4 | 707.8 | 1,777.9 | (251.4) | 27.8 | |
Dividends Declared to Noncontrolling Interests | (1.8) | (1.8) | |||||
Ending Balance at Sep. 28, 2019 | 2,329.1 | 0.4 | 707.8 | 1,870.9 | (277.8) | 27.8 | |
Beginning Balance at Dec. 29, 2018 | $ 2,338.5 | 0.4 | 783.6 | 1,777.9 | (251.4) | 28 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of ASU 2016-13 | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Adoption of ASU 2016-13 | $ 2,338.5 | $ (2.7) | 0.4 | 783.6 | 1,777.9 | (251.4) | 28 |
Ending Balance at Dec. 28, 2019 | 2,380.4 | (2.7) | 0.4 | 701.8 | 1,886.7 | (237.8) | 29.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of ASU 2016-13 | 2,430.4 | 0.4 | 750.7 | 1,882.7 | (232.8) | 29.4 | |
Beginning Balance at Jun. 29, 2019 | 2,430.4 | 0.4 | 750.7 | 1,882.7 | (232.8) | 29.4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 50.8 | 49.7 | 1.1 | ||||
Other Comprehensive Income (Loss) | (46.2) | (45) | (1.2) | ||||
Dividends Declared | (12.3) | (12.3) | |||||
Stock Options Exercised | (0.5) | (0.5) | |||||
Stock Repurchase | (94.2) | (45) | (49.2) | ||||
Share-Based Compensation | 2.6 | 2.6 | |||||
Adoption of ASU 2016-13 | 2,329.1 | 0.4 | 707.8 | 1,870.9 | (232.8) | 27.8 | |
Dividends Declared to Noncontrolling Interests | (1.5) | (1.5) | |||||
Ending Balance at Sep. 28, 2019 | 2,329.1 | 0.4 | 707.8 | 1,870.9 | (277.8) | 27.8 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of ASU 2016-13 | 2,329.1 | 0.4 | 707.8 | 1,870.9 | (277.8) | 27.8 | |
Adoption of ASU 2016-13 | 2,380.4 | (2.7) | 0.4 | 701.8 | 1,886.7 | (237.8) | 29.3 |
Beginning Balance at Dec. 28, 2019 | 2,380.4 | (2.7) | 0.4 | 701.8 | 1,886.7 | (237.8) | 29.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 142.3 | 138.9 | 3.4 | ||||
Other Comprehensive Income (Loss) | (9) | (9.1) | 0.1 | ||||
Dividends Declared | (36.5) | (36.5) | |||||
Stock Options Exercised | (3) | (3) | |||||
Stock Repurchase | (25) | (11.1) | (13.9) | ||||
Share-Based Compensation | $ 8.2 | 8.2 | |||||
Adoption of ASU 2016-13 | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Adoption of ASU 2016-13 | $ 2,380.4 | $ (2.7) | 0.4 | 701.8 | 1,886.7 | (246.9) | 30 |
Dividends Declared to Noncontrolling Interests | (2.8) | (2.8) | |||||
Ending Balance at Sep. 26, 2020 | 2,451.9 | 0.4 | 695.9 | 1,972.5 | (246.9) | 30 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of ASU 2016-13 | 2,347 | 0.4 | 694 | 1,919.7 | (295) | 27.9 | |
Beginning Balance at Jun. 27, 2020 | 2,347 | 0.4 | 694 | 1,919.7 | (295) | 27.9 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 66.3 | 65 | 1.3 | ||||
Other Comprehensive Income (Loss) | 49 | 48.1 | 0.9 | ||||
Dividends Declared | (12.2) | (12.2) | |||||
Stock Options Exercised | (0.8) | (0.8) | |||||
Share-Based Compensation | 2.7 | 2.7 | |||||
Adoption of ASU 2016-13 | 2,347 | 0.4 | 695.9 | 1,972.5 | (246.9) | 30 | |
Dividends Declared to Noncontrolling Interests | (0.1) | (0.1) | |||||
Ending Balance at Sep. 26, 2020 | 2,451.9 | 0.4 | 695.9 | 1,972.5 | (246.9) | 30 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of ASU 2016-13 | $ 2,451.9 | $ 0.4 | $ 695.9 | $ 1,972.5 | $ (246.9) | $ 30 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared, per share (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.88 |
Adoption of ASU 2016-13 | us-gaap:AccountingStandardsUpdate201613Member |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 142.3 | $ 205 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities (Net of Acquisitions and Divestitures): | ||
Depreciation and Amortization | 98.8 | 100.4 |
Asset Impairments | 4.3 | 10 |
Noncash Lease Expense | 18.3 | 20.5 |
Loss on Sale or Disposition of Assets, Net | 2.7 | 1.7 |
Share-Based Compensation Expense | 8.2 | 10 |
Gain on Divestiture of Businesses | (0.1) | (45.2) |
Change in Operating Assets and Liabilities | 35.4 | (31.2) |
Net Cash Provided by Operating Activities | 309.9 | 271.2 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to Property, Plant and Equipment | (29.7) | (77.3) |
Proceeds from Divestiture of Businesses | 0.3 | 159.6 |
Proceeds from Sale of Assets | 7.6 | 1.7 |
Net Cash (Used in) Provided by Investing Activities | (21.8) | 84 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings Under Revolving Credit Facility | 898.1 | 894.3 |
Repayments Under Revolving Credit Facility | (915.8) | (977.4) |
Proceeds from Short-Term Borrowings | 2.3 | 27.5 |
Repayments of Short-Term Borrowings | (2.3) | (27.5) |
Proceeds from Long-Term Borrowings | 0.1 | 0 |
Repayments of Long-Term Borrowings | (50.2) | (24.2) |
Dividends Paid to Shareholders | (36.5) | (36.6) |
Shares Surrendered for Taxes | (3.3) | (8) |
Proceeds from the Exercise of Stock Options | 0.2 | 0 |
Repurchase of Common Stock | (25) | (150.1) |
Distributions to Noncontrolling Interests | (2.8) | (1.8) |
Net Cash Used in Financing Activities | (135.2) | (303.8) |
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 3.2 | (7) |
Net Increase in Cash and Cash Equivalents | 156.1 | 44.4 |
Cash and Cash Equivalents at Beginning of Period | 331.4 | 248.6 |
Cash and Cash Equivalents at End of Period | 487.5 | 293 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 36.2 | 44.4 |
Income taxes | $ 20.4 | $ 31.9 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 26, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying (a) Condensed Consolidated Balance Sheet of Regal Beloit Corporation (the “Company”) as of December 28, 2019, which has been derived from audited Consolidated Financial Statements, and (b) unaudited interim Condensed Consolidated Financial Statements as of September 26, 2020 and for the three and nine months ended September 26, 2020 and September 28, 2019, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Consolidated Financial Statements and the Notes thereto included in the Company’s 2019 Annual Report on Form 10-K filed on February 26, 2020. In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made. Except as otherwise discussed, such adjustments consist of only those of a normal recurring nature. Operating results for the three and nine months ended September 26, 2020 are not necessarily indicative of the results that may be expected for the entire fiscal year ending January 2, 2021. The Condensed Consolidated Financial Statements have been prepared in accordance with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Condensed 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; retirement benefits; 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. The Company operates on a 52/53 week fiscal year ending on the Saturday closest to December 31. Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20). The ASU addresses modifications to the disclosure requirements for Defined Benefit Plans. Under ASU 2018-14 the disclosure requirements that can be removed are amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, amount and timing of plan assets expected to be returned to the employer, and the effects of a one-percentage-point change in assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic benefit costs and benefit obligations for postretirement health care benefits. Additional disclosures are required for the weighted -average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation for significant gains and losses related to the changes in the benefit obligation for the period. If a defined benefit pension plan has a projected benefit obligation greater than plan assets the projected benefit obligation and fair value of plan assets should be disclosed. This additional disclosure is also required when comparing the accumulated benefit obligation to plan assets. This ASU becomes effective for fiscal years ending after December 15, 2020 on a retrospective basis for all years presented. Early adoption is permitted. The Company is evaluating the effect of adopting this new accounting guidance, but does not anticipate a material impact on the financial statement disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes . The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, and clarifies and amends existing guidance to improve consistent application. This ASU becomes effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance. Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU provides optional transition guidance, for a limited time, to companies that have contracts, hedging relationships or other transactions that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate which is expected to be discontinued because of reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. In the second quarter, the Company adopted this standard prospectively and is applying those expedients that allow the Company to continue to assert that LIBOR-based interest remains probable, despite the sunset of LIBOR at the end of 2021 with no impact on the Company's Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU focuses on updates around disclosures of Level 3 fair value measurements and it presents modifications to current disclosure requirements. The additional requirements under this ASU include disclosure for the changes in unrealized gains and losses included in other comprehensive income ("OCI") held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs. The ASU is also eliminating the disclosure requirement for the amount and reason for transfers between Level 1 and Level 2 fair value measurement, valuation processes for Level 3 measurements, and policy for timing of transfers between levels of the fair value hierarchy. In addition, the ASU modifies the disclosure requirements for investments that are valued based on net asset value. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods therein. The ASU requires prospective application for only the most recent interim or annual period presented in the year of adoption for changes in unrealized gains and losses included in OCI, the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, and the narrative description of measurement uncertainty. The Company adopted the standard as of December 29, 2019, the beginning of fiscal 2020, with no material impact on the Company's Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13 Financial Instruments Credit Losses (Topic 326) . The focus of this ASU is to require businesses to adjust their allowance for lifetime expected credit losses rather than incurred losses. It is believed that the change will result in more timely recognition of such losses. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods therein. The Company adopted the standard as of December 29, 2019, the beginning of fiscal 2020, under the modified retrospective approach. The Company recorded a $3.4 million increase in the allowance for credit losses and a $2.7 million net decrease to retained earnings as of December 29, 2019 for the cumulative effect of adopting ASU 2016-13. |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 9 Months Ended |
Sep. 26, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
OTHER FINANCIAL INFORMATION | OTHER FINANCIAL INFORMATION Inventories The following table presents approximate percentage distribution between major classes of inventories: September 26, 2020 December 28, 2019 Raw Material and Work in Process 49% 48% Finished Goods and Purchased Parts 51% 52% Inventories are stated at cost, which is not in excess of market. Cost for approximately 54% of the Company's inventory at September 26, 2020, and 53% at December 28, 2019 was determined using the last-in, first-out ("LIFO") method. Property, Plant, and Equipment The following table presents property, plant, and equipment by major classification (dollars in millions): Useful Life in Years September 26, 2020 December 28, 2019 Land and Improvements $ 75.3 $ 80.3 Buildings and Improvements 3 - 50 285.0 305.2 Machinery and Equipment 3 - 15 969.6 988.2 Property, Plant and Equipment 1,329.9 1,373.7 Less: Accumulated Depreciation (780.5) (768.7) Net Property, Plant and Equipment $ 549.4 $ 605.0 For the nine months ended September 26, 2020, the Company recognized $4.3 million of asset impairments related to the transfer of assets to held for sale. For the nine months ended September 28, 2019, the Company recognized $5.1 million of asset impairments related to the transfer of assets to held for sale. 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. 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 customers. The Company reports in four operating segments: Commercial Systems, 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 four 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 system/solutions. Product: The nature of products varies from segment to segment but across all segments, individual products are not integrated and represent separate performance obligations. Customized system/solutions: The Company provides customized system/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 Condensed 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 tables presents the Company’s revenues disaggregated by geographical region (in millions): Three Months Ended September 26, 2020 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 156.9 $ 71.1 $ 210.7 $ 133.5 $ 572.2 Asia 35.4 35.7 9.7 7.4 88.2 Europe 8.0 6.4 7.7 20.1 42.2 Rest-of-World 18.2 25.6 5.9 5.9 55.6 Total $ 218.5 $ 138.8 $ 234.0 $ 166.9 $ 758.2 September 28, 2019 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 151.4 $ 78.8 $ 204.4 $ 146.3 $ 580.9 Asia 27.4 42.7 7.4 7.1 84.6 Europe 32.1 11.8 9.3 22.8 76.0 Rest-of-World 3.9 10.5 9.8 6.6 30.8 Total $ 214.8 $ 143.8 $ 230.9 $ 182.8 $ 772.3 Nine Months Ended September 26, 2020 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 412.8 $ 213.2 $ 554.1 $ 417.6 $ 1,597.7 Asia 87.7 109.1 19.3 19.8 235.9 Europe 62.0 34.3 22.8 66.2 185.3 Rest-of-World 31.3 32.4 26.1 17.8 107.6 Total $ 593.8 $ 389.0 $ 622.3 $ 521.4 $ 2,126.5 September 28, 2019 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 503.5 $ 238.0 $ 671.1 $ 485.8 $ 1,898.4 Asia 82.4 126.8 28.6 21.7 259.5 Europe 101.8 39.2 31.5 70.0 242.5 Rest-of-World 15.6 33.4 30.9 19.5 99.4 Total $ 703.3 $ 437.4 $ 762.1 $ 597.0 $ 2,499.8 |
HELD FOR SALE, DIVESTITURES AND
HELD FOR SALE, DIVESTITURES AND ACQUISITIONS | 9 Months Ended |
Sep. 26, 2020 | |
Business Combinations [Abstract] | |
HELD FOR SALE, DIVESTITURES AND ACQUISITIONS | HELD FOR SALE, DIVESTITURES AND ACQUISITIONS Assets Held for Sale The balances that were classified as Assets Held for Sale as of September 26, 2020 and December 28, 2019 were $5.0 million and $2.8 million, respectively, as the Company has both the intent and ability to sell these assets. 2019 Divestitures Regal Drive Technologies On January 7, 2019, the Company sold its Regal Drive Technologies business and received proceeds of $0.3 million in the first quarter of 2020 and $119.9 million in 2019. Regal Drive Technologies was included in the Company's Commercial Systems segment. The Company recognized a gain on sale of $0.1 million in the first quarter of 2020 and $41.0 million in 2019 in the Condensed Consolidated Statements of Income. Velvet Drive On April 1, 2019, the Company sold its Velvet Drive business and received proceeds of $8.9 million. This business was included in the Company's Power Transmissions Solutions segment. The Company recognized a loss on sale of $0.5 million in the Condensed Consolidated Statements of Income. CapCom On April 1, 2019, the Company sold its CapCom business and received proceeds of $9.9 million. This business was included in the Company's Climate Solutions segment. The Company recognized a gain on sale of $6.0 million in the Condensed Consolidated Statements of Income. Vapor Recovery On July 1, 2019, the Company sold its Vapor Recovery business and received proceeds of $19.2 million. The business was included in the Company's Commercial Systems segment. The Company recognized a loss on sale of $1.9 million in the Condensed Consolidated Statements of Income. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 26, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustments, hedging activities and pension and post retirement benefit adjustments are included in Accumulated Other Comprehensive Income (Loss) ("AOCI") a component of Total Equity. The following tables present changes in AOCI by component for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended September 26, 2020 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ (10.7) $ (30.5) $ (253.8) $ (295.0) Other Comprehensive Income (Loss) before Reclassifications 7.9 (0.1) 35.9 43.7 Tax Impact (1.9) — — (1.9) Amounts Reclassified from Accumulated Other Comprehensive Income 8.2 0.1 — 8.3 Tax Impact (2.0) — — (2.0) Net Current Period Other Comprehensive Income 12.2 — 35.9 48.1 Ending Balance $ 1.5 $ (30.5) $ (217.9) $ (246.9) September 28, 2019 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ 3.9 $ (37.5) $ (199.2) $ (232.8) Other Comprehensive Income (Loss) before Reclassifications (6.5) 0.1 (37.4) (43.8) Tax Impact 1.6 — — 1.6 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (4.2) 0.5 — (3.7) Tax Impact 1.0 (0.1) — 0.9 Net Current Period Other Comprehensive Income (Loss) (8.1) 0.5 (37.4) (45.0) Ending Balance $ (4.2) $ (37.0) $ (236.6) $ (277.8) Nine Months Ended September 26, 2020 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ 8.0 $ (31.0) $ (214.8) $ (237.8) Other Comprehensive Income (Loss) before Reclassifications (16.2) 0.2 (3.1) (19.1) Tax Impact 3.9 — — 3.9 Amounts Reclassified from Accumulated Other Comprehensive Income 7.7 0.4 — 8.1 Tax Impact (1.9) (0.1) — (2.0) Net Current Period Other Comprehensive Income (Loss) (6.5) 0.5 (3.1) (9.1) Ending Balance $ 1.5 $ (30.5) $ (217.9) $ (246.9) September 28, 2019 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning balance $ (5.4) $ (38.2) $ (207.8) $ (251.4) Other Comprehensive Income (Loss) before Reclassifications 5.8 (0.1) (30.4) (24.7) Tax Impact (1.4) — — (1.4) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (4.2) 1.6 1.6 (1.0) Tax Impact 1.0 (0.3) — 0.7 Net Current Period Other Comprehensive Income (Loss) 1.2 1.2 (28.8) (26.4) Ending Balance $ (4.2) $ (37.0) $ (236.6) $ (277.8) The Condensed Consolidated Statements of Income line items affected by the hedging activities reclassified from AOCI in the tables above are disclosed in Note 14. The reclassification amounts for pension and post retirement benefit adjustments in the tables above are part of net periodic benefit costs recorded in Other (Income) Expenses, net (see also Note 8). |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill As required, the Company performs an annual impairment test of goodwill as of the end of the October fiscal month or more frequently if events or circumstances change that would more likely than not reduce the fair value of its reporting units below their carrying value. In the fourth quarter 2019, in conjunction with the Company's annual goodwill impairment test, the Company concluded that the excess fair value over carrying value for the global industrial motors, commercial air moving and power switch reporting units were less than 10 percent. In the third quarter 2020, the Company performed an interim impairment analysis for the global industrial motors reporting unit triggered by events primarily driven by the economic uncertainty caused by COVID-19. The excess fair value over carrying value continues to be less than 10 percent for the global industrial motors reporting unit. The Company developed assumptions for the potential impact of COVID-19 given the uncertainty related to supply and demand disruptions on operating results for the global industrial motors reporting unit. While the Company is committed to the strategic actions necessary to realize the long-term forecasted revenues and EBITDA margins a worsening economic outlook could result in future impairment charges. A lack of recovery or further deterioration in market conditions, a sustained trend of weaker than expected financial performance or a lack of recovery or further decline in the Company's market capitalization, among other factors, as a result of the COVID-19 pandemic could result in an impairment charge in future periods which could have a material adverse effect on the Company's financial statements. The global industrial motors reporting unit had goodwill of $123.8 million as of September 26, 2020. The following table presents changes to goodwill during the nine months ended September 26, 2020 (in millions): Total Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Balance as of December 28, 2019 $ 1,501.3 $ 426.6 $ 170.8 $ 331.2 $ 572.7 Translation Adjustments 7.1 (0.6) 1.3 (1.2) 7.6 Balance as of September 26, 2020 $ 1,508.4 $ 426.0 $ 172.1 $ 330.0 $ 580.3 Cumulative Goodwill Impairment Charges $ 285.2 $ 183.2 $ 61.6 $ 17.2 $ 23.2 Intangible Assets The following table presents intangible assets (in millions): September 26, 2020 December 28, 2019 Weighted Average Amortization Period (Years) Gross Value Accumulated Amortization Gross Value Accumulated Amortization Amortizable Intangible Assets: Customer Relationships 17 $ 698.5 $ 334.4 $ 692.1 $ 302.4 Technology 14 144.7 105.4 144.0 99.0 Trademarks 14 36.5 26.6 35.9 25.0 Patent and Engineering Drawings 5 16.6 16.6 16.6 16.6 896.3 483.0 888.6 443.0 Non-Amortizable Trade Name 122.1 — 121.6 — $ 1,018.4 $ 483.0 $ 1,010.2 $ 443.0 Intangible Assets, Net of Amortization $ 535.4 $ 567.2 Amortization expense recorded for the three and nine months ended September 26, 2020 was $11.9 million and $36.3 million, respectively. Amortization expense recorded for the three and nine months ended September 28, 2019 was $12.6 million and $38.0 million, respectively. Amortization expense for fiscal year 2020 is estimated to be $48.0 million. There was no impairment of intangible assets during the three and nine months ended September 26, 2020. For the nine months ended September 28, 2019, the Company recognized $4.9 million of customer relationships intangible asset impairments related to the transfer of assets to held for sale. The following table presents future estimated annual amortization for intangible assets (in millions): Year Estimated Amortization 2021 $ 43.0 2022 41.2 2023 41.2 2024 40.6 2025 38.5 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 26, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company is comprised of four operating segments: Commercial Systems, Industrial Systems, Climate Solutions and Power Transmission Solutions. Commercial Systems segment produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, fans, and blowers for commercial applications. These products serve markets including commercial building ventilation and HVAC, pool and spa, irrigation, dewatering, agriculture, and general commercial equipment. Industrial Systems segment produces integral motors, generators, alternators and switchgear for industrial applications, along with aftermarket parts and kits to support such products. These products serve markets including agriculture, marine, mining, oil and gas, food and beverage, data centers, healthcare, prime and standby power, and general industrial equipment. Climate Solutions segment produces small motors, electronic variable speed controls and air moving solutions serving markets including residential and light commercial HVAC, water heaters and commercial refrigeration. Power Transmission Solutions segment produces, 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 the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended September 26, 2020 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Eliminations Total External Sales $ 218.5 $ 138.8 $ 234.0 $ 166.9 $ — $ 758.2 Intersegment Sales 14.5 7.4 4.6 0.6 (27.1) — Total Sales 233.0 146.2 238.6 167.5 (27.1) 758.2 Gross Profit 61.4 31.2 69.1 59.9 — 221.6 Operating Expenses 36.1 24.6 29.9 41.0 — 131.6 Total Operating Expenses 36.1 24.6 29.9 41.0 — 131.6 Income from Operations 25.3 6.6 39.2 18.9 — 90.0 Depreciation and Amortization 7.9 6.0 5.0 14.0 — 32.9 Capital Expenditures 3.2 1.7 1.8 2.6 — 9.3 September 28, 2019 External Sales $ 214.8 $ 143.8 $ 230.9 $ 182.8 $ — $ 772.3 Intersegment Sales 10.8 8.0 4.2 1.2 (24.2) — Total Sales 225.6 151.8 235.1 184.0 (24.2) 772.3 Gross Profit 53.5 23.7 64.2 60.5 — 201.9 Operating Expenses 36.8 26.0 26.5 39.6 — 128.9 Loss on Divestitures 0.1 — 0.1 — — 0.2 Total Operating Expenses 36.9 26.0 26.6 39.6 — 129.1 Income (Loss) from Operations 16.6 (2.3) 37.6 20.9 — 72.8 Depreciation and Amortization 8.3 6.5 5.1 14.0 — 33.9 Capital Expenditures 6.8 4.2 6.8 3.3 — 21.1 Nine Months Ended September 26, 2020 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Eliminations Total External Sales $ 593.8 $ 389.0 $ 622.3 $ 521.4 $ — $ 2,126.5 Intersegment Sales 43.2 23.2 13.0 1.9 (81.3) — Total Sales 637.0 412.2 635.3 523.3 (81.3) 2,126.5 Gross Profit 154.5 78.7 175.9 186.1 — 595.2 Operating Expenses 107.8 69.2 85.9 122.2 — 385.1 Gain on Divestiture of Businesses (0.1) — — — — (0.1) Asset Impairments 2.8 0.2 1.3 — — 4.3 Total Operating Expenses 110.5 69.4 87.2 122.2 — 389.3 Income from Operations 44.0 9.3 88.7 63.9 — 205.9 Depreciation and Amortization 24.5 17.9 14.7 41.7 — 98.8 Capital Expenditures 8.5 6.0 8.0 7.2 — 29.7 September 28, 2019 External Sales $ 703.3 $ 437.4 $ 762.1 $ 597.0 $ — $ 2,499.8 Intersegment Sales 34.7 27.8 13.1 3.3 (78.9) — Total Sales 738.0 465.2 775.2 600.3 (78.9) 2,499.8 Gross Profit 184.3 75.3 209.7 201.2 — 670.5 Operating Expenses 121.8 82.2 86.2 126.1 — 416.3 (Gain) Loss on Divestiture of Businesses (39.4) 0.1 (6.0) 0.1 — (45.2) Asset Impairments 6.7 0.9 1.3 1.1 — 10.0 Total Operating Expenses 89.1 83.2 81.5 127.3 — 381.1 Income (Loss) from Operations 95.2 (7.9) 128.2 73.9 — 289.4 Depreciation and Amortization 26.1 18.2 14.5 41.6 — 100.4 Capital Expenditures 24.2 18.1 19.4 15.6 — 77.3 The following table presents identifiable assets information attributable to the Company's operating segments as of September 26, 2020 and December 28, 2019 (in millions): Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total Identifiable Assets as of September 26, 2020 $ 1,258.2 $ 826.1 $ 876.4 $ 1,518.7 $ 4,479.4 Identifiable Assets as of December 28, 2019 $ 1,198.5 $ 802.8 $ 878.3 $ 1,551.1 $ 4,430.7 |
DEBT AND BANK CREDIT FACILITIES
DEBT AND BANK CREDIT FACILITIES | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
DEBT AND BANK CREDIT FACILITIES | DEBT AND BANK CREDIT FACILITIES The following table presents the Company’s indebtedness as of September 26, 2020 and December 28, 2019 (in millions): September 26, 2020 December 28, 2019 Term Facility $ 670.0 $ 720.0 Senior Notes 400.0 400.0 Multicurrency Revolving Facility — 17.7 Other 4.3 4.5 Less: Debt Issuance Costs (3.5) (4.7) Total 1,070.8 1,137.5 Less: Current Maturities 230.6 0.6 Long-Term Debt $ 840.2 $ 1,136.9 Credit Agreement On August 27, 2018 the Company entered 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 prior borrowings. 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 year of the Term Facility, unless previously prepaid. The weighted average interest rate on the Term Facility for the three months ended September 26, 2020 and September 28, 2019 was 1.5% and 3.6%, respectively. The weighted average interest rate on the Term Facility for the nine months ended September 26, 2020 and September 28, 2019 was 2.1% and 3.8%, respectively. The Credit Agreement requires that the Company prepay the loans under the Term Facility with 100% of the net cash proceeds received from specified asset sales and borrowed money indebtedness, subject to certain exceptions. At September 26, 2020, the Company had no borrowings under the Multicurrency Revolving Facility, $0.2 million of standby letters of credit issued under the facility, and $499.8 million of available borrowing capacity. For the three months ended September 26, 2020 and September 28, 2019 under the Multicurrency Revolving Facility, the average daily balance in borrowings was $51.4 million and $127.1 million, respectively, and weighted average interest rate of 1.5% and 3.6%, respectively. For the nine months ended September 26, 2020 and September 28, 2019 under the Multicurrency Revolving Facility, the average daily balance in borrowings was $189.7 million and $91.3 million, respectively, and the weighted average interest rate of 2.1% and 3.7%, 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 At September 26, 2020, the Company had $400.0 million of 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 The following table presents details on the Notes at September 26, 2020 (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 $ 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 September 26, 2020. Other Notes Payable At September 26, 2020, other notes payable of approximately $4.3 million were outstanding with a weighted average interest rate of 4.9%. At December 28, 2019, other notes payable of approximately $4.5 million were outstanding with a weighted average rate of 5.0%. Other Disclosures Based on rates for instruments with comparable maturities and credit quality, which are classified as Level 2 inputs (see also Note 15), the approximate fair value of the Company's total debt was $1,087.3 million and $1,162.1 million as of September 26, 2020 and December 28, 2019, respectively. |
RETIREMENT AND POST RETIREMENT
RETIREMENT AND POST RETIREMENT HEALTH CARE PLANS | 9 Months Ended |
Sep. 26, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
RETIREMENT AND POST RETIREMENT HEALTH CARE PLANS | RETIREMENT AND POST RETIREMENT HEALTH CARE PLANS The following table presents the Company’s net periodic benefit cost (income) components (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Service Cost $ 0.4 $ 1.5 $ 1.5 $ 4.6 Interest Cost 2.1 2.8 6.2 8.2 Expected Return on Plan Assets (3.3) (3.2) (9.9) (9.4) Amortization of Prior Service Cost and Net Actuarial Loss 0.1 0.5 0.4 1.6 Net Periodic Benefit Cost (Income) $ (0.7) $ 1.6 $ (1.8) $ 5.0 The service cost component is included in Cost of Sales and Operating Expenses. All other components of net periodic benefit costs are included in Other (Income) Expenses, net on the Company's Condensed Consolidated Statements of Income. The estimated net actuarial loss and prior (income) service cost for post retirement plans that will be amortized from AOCI into net periodic benefit cost (income) during the 2020 fiscal year are $1.2 million and $(0.6) million, respectively. |
LEASES
LEASES | 9 Months Ended |
Sep. 26, 2020 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain manufacturing facilities, warehouses/distribution centers, office space, machinery, equipment, IT assets, and vehicles. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, it is considered to be or contain a lease. Right-of-use ("ROU") assets and lease liabilities are recognized at lease commencement date based on the present value of the future lease payments over the expected lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rate is calculated based upon the sovereign treasury rate for the currency in which the lease liability is denominated when the Company takes possession of the leased asset, adjusted for various factors, such as term and internal credit spread. The ROU asset also includes any lease payments made and excludes lease incentive and initial direct costs incurred. Leases entered into may include one or more options to renew. The renewal terms can extend the lease term from one The depreciable life of leased assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Some of the Company's lease agreements include rental payments adjusted periodically for inflation or are based on an index rate. These increases are reflected as variable lease payments and are included in the measurement of the ROU asset and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating leases are included in the following asset and liability accounts on the Company's Condensed Consolidated Balance Sheet: Operating Lease Assets, Current Operating Lease Liabilities, and Noncurrent Operating Lease Liabilities. ROU assets and liabilities arising from finance leases are included in the following asset and liability accounts on the Company's Condensed Consolidated Balance Sheet: Net Property, Plant and Equipment, Current Maturities of Long-Term Debt, and Long-Term Debt. Short-term and variable lease expenses were immaterial. The components of lease expense were as follows (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Operating Lease Cost $ 7.5 $ 7.8 $ 22.8 $ 24.9 Finance Lease Cost: Amortization of ROU Assets 0.1 0.1 0.2 0.2 Interest on Lease Liabilities — — 0.1 0.2 Total Lease Expense $ 7.6 7.9 $ 23.1 $ 25.3 Maturity of lease liabilities as of September 26, 2020 were as follows (in millions): Operating Leases Finance Leases Total Remainder of 2020 $ 7.4 $ 0.1 $ 7.5 2021 25.2 0.5 25.7 2022 18.4 0.6 19.0 2023 12.2 0.6 12.8 2024 8.2 0.6 8.8 Thereafter 23.1 1.9 25.0 Total Lease Payments $ 94.5 $ 4.3 $ 98.8 Less: Interest (17.3) (0.8) (18.1) Present Value of Lease Liabilities $ 77.2 $ 3.5 $ 80.7 Other information related to leases was as follows (in millions): Nine Months Ended Supplemental Cash Flows Information September 26, 2020 September 28, 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating Cash Flows Used For Operating Leases $ 21.8 $ 24.9 Operating Cash Flows Used For Finance Leases 0.1 0.2 Financing Cash Flows Used For Finance Leases 0.2 0.2 Leased Assets Obtained in Exchange for New Operating Lease Liabilities 21.3 10.6 Weighted Average Remaining Lease Term Operating Leases 5.2 years 4.6 years Finance Leases 7.5 years 8.5 years Weighted Average Discount Rate Operating Leases 8.2 % 8.3 % Finance Leases 5.9 % 5.9 % The Company had no operating or finance leases that had not yet commenced nor entered into during the quarter. |
Leases | LEASES The Company leases certain manufacturing facilities, warehouses/distribution centers, office space, machinery, equipment, IT assets, and vehicles. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, it is considered to be or contain a lease. Right-of-use ("ROU") assets and lease liabilities are recognized at lease commencement date based on the present value of the future lease payments over the expected lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rate is calculated based upon the sovereign treasury rate for the currency in which the lease liability is denominated when the Company takes possession of the leased asset, adjusted for various factors, such as term and internal credit spread. The ROU asset also includes any lease payments made and excludes lease incentive and initial direct costs incurred. Leases entered into may include one or more options to renew. The renewal terms can extend the lease term from one The depreciable life of leased assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Some of the Company's lease agreements include rental payments adjusted periodically for inflation or are based on an index rate. These increases are reflected as variable lease payments and are included in the measurement of the ROU asset and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating leases are included in the following asset and liability accounts on the Company's Condensed Consolidated Balance Sheet: Operating Lease Assets, Current Operating Lease Liabilities, and Noncurrent Operating Lease Liabilities. ROU assets and liabilities arising from finance leases are included in the following asset and liability accounts on the Company's Condensed Consolidated Balance Sheet: Net Property, Plant and Equipment, Current Maturities of Long-Term Debt, and Long-Term Debt. Short-term and variable lease expenses were immaterial. The components of lease expense were as follows (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Operating Lease Cost $ 7.5 $ 7.8 $ 22.8 $ 24.9 Finance Lease Cost: Amortization of ROU Assets 0.1 0.1 0.2 0.2 Interest on Lease Liabilities — — 0.1 0.2 Total Lease Expense $ 7.6 7.9 $ 23.1 $ 25.3 Maturity of lease liabilities as of September 26, 2020 were as follows (in millions): Operating Leases Finance Leases Total Remainder of 2020 $ 7.4 $ 0.1 $ 7.5 2021 25.2 0.5 25.7 2022 18.4 0.6 19.0 2023 12.2 0.6 12.8 2024 8.2 0.6 8.8 Thereafter 23.1 1.9 25.0 Total Lease Payments $ 94.5 $ 4.3 $ 98.8 Less: Interest (17.3) (0.8) (18.1) Present Value of Lease Liabilities $ 77.2 $ 3.5 $ 80.7 Other information related to leases was as follows (in millions): Nine Months Ended Supplemental Cash Flows Information September 26, 2020 September 28, 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating Cash Flows Used For Operating Leases $ 21.8 $ 24.9 Operating Cash Flows Used For Finance Leases 0.1 0.2 Financing Cash Flows Used For Finance Leases 0.2 0.2 Leased Assets Obtained in Exchange for New Operating Lease Liabilities 21.3 10.6 Weighted Average Remaining Lease Term Operating Leases 5.2 years 4.6 years Finance Leases 7.5 years 8.5 years Weighted Average Discount Rate Operating Leases 8.2 % 8.3 % Finance Leases 5.9 % 5.9 % The Company had no operating or finance leases that had not yet commenced nor entered into during the quarter. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 26, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Repurchase of Common Stock At a meeting of the Board of Directors on July 24, 2018, the Company's Board of Directors approved the extinguishment of the existing 3.0 million share repurchase program that was approved in November 2013 and replaced it with an authorization to purchase up to $250.0 million of shares. At a meeting of the Board of Directors on October 25, 2019, the July 2018 repurchase authorization was extinguished and replaced with an authorization to purchase up to $250.0 million of shares. For the three and nine months ended September 26, 2020 , the Company repurchased and retired zero and 315,072 shares, respectively, of its common stock. For the nine months ended September 26, 2020, the common stock had an average cost of $79.38 per share for a total cost of $25.0 million. For the three months ended September 28, 2019, the Company repurchased and retired 1,282,037 shares of its common stock at an average cost of $73.43 for a total cost of $94.2 million. For the nine months ended September 28, 2019 , the Company repurchased and retired 2,013,782 shares of its common stock at an average cost of $74.52 per share and a total cost of $150.1 million under the July 2018 program. As of September 26, 2020 , there was approximately $210.0 million in common stock available for repurchase under the October 2019 program . The Company announced it had suspended the share repurchase program starting in the first quarter of 2020. The Company has re-instated the share purchase program starting in the fourth quarter of 2020. The existing share repurchase program remains authorized by the Company's Board of Directors. Share-Based Compensation The majority of the Company’s annual share-based incentive awards had historically been granted in the second fiscal quarter. Beginning in fiscal 2020, the Company moved its granting of share-based incentive awards to the first fiscal quarter. The Company recognized approximately $2.7 million and $2.6 million in share-based compensation expense for the three months ended September 26, 2020 and September 28, 2019, respectively. Share-based compensation expense was $8.2 million and $10.0 million for the nine months ended September 26, 2020 and September 28, 2019, respectively. The total income tax benefit recognized in the Condensed Consolidated Statements of Income for share-based compensation expense was $0.6 million and $0.5 million for the three months ended September 26, 2020 and September 28, 2019, respectively. The total income tax benefit recognized in the Condensed Consolidated Statements of Income for share-based compensation expense was $1.7 million and $2.1 million for the nine months ended September 26, 2020 and September 28, 2019, 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. As of September 26, 2020, total unrecognized compensation cost related to share-based compensation awards was approximately $20.8 million, net of estimated forfeitures, which the Company expects to recognize over a weighted average period of approximately 2.0 years. Approximately 1.8 million shares were available for future grant under the 2018 Equity Incentive Plan at September 26, 2020. 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. Shares granted prior to fiscal 2020 generally vest over five years on the anniversary date while shares granted in fiscal 2020 generally vest over three years on the anniversary date of the grant date. Generally all grants 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 the nine months ended September 26, 2020 and September 28, 2019, expired and canceled shares were immaterial. The following table presents share-based compensation activity for the nine months ended September 26, 2020 and September 28, 2019 (in millions): September 26, 2020 September 28, 2019 Total Intrinsic Value of Share-Based Incentive Awards Exercised $ 5.7 $ 5.1 Cash Received from Stock Option Exercises 0.2 — Income Tax Benefit from the Exercise of SARs 0.4 (0.1) Total Fair Value of Share-Based Incentive Awards Vested 1.8 5.4 The following table presents assumptions used in the Company's Black-Scholes valuation related to grants of SARs: 2020 2019 Per share weighted average fair value of grants $ 21.23 $ 20.84 Risk-free interest rate 1.5 % 2.4 % Expected life (years) 7.0 7.0 Expected volatility 25.2 % 25.0 % Expected dividend yield 1.4 % 1.5 % The average risk-free interest rate is based on the US Treasury security rate 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. The following table presents a summary of share-based incentive plan grant activity for the nine months ended September 26, 2020. Number of Shares Under SARs Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of December 28, 2019 817,790 $ 73.34 6.0 $ 9.9 Granted 181,177 88.25 Exercised (299,816) 69.29 Forfeited (92,352) 76.99 Expired (3,308) 67.38 Outstanding as of September 26, 2020 603,491 $ 79.00 4.5 $ 5.7 Exercisable as of September 26, 2020 197,612 $ 70.73 4.5 $ 4.4 Compensation expense recognized related to SARs was $2.2 million for the nine months ended September 26, 2020. As of September 26, 2020, there was $6.5 million of unrecognized compensation cost related to non-vested SARs that is expected to be recognized as a charge to earnings over a weighted average period of 2.7 years. The number of SARs expected to vest is materially consistent with those outstanding and not yet exercisable. Restricted Stock Awards and Restricted Stock Units Restricted stock awards ("RSA") and restricted stock units ("RSU") consist of shares or the rights to shares of the Company's stock. The awards are restricted such that they are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer. As defined in the individual grant agreements, acceleration of vesting may occur under a change in control, death or disability. The following table presents a summary of RSA award activity for the nine months ended September 26, 2020: Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (Years) Unvested RSAs as of December 28, 2019 15,571 $ 80.41 0.4 Granted 16,280 70.05 Vested (15,148) 80.29 Unvested RSAs as of September 26, 2020 16,703 $ 70.42 0.6 RSAs vest on the first anniversary of the grant date, provided the holder of the shares is continuously employed by or in the service of the Company until the vesting date. Compensation expense recognized related to the RSAs was $0.9 million for the nine months ended September 26, 2020. As of September 26, 2020, there was $0.7 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 0.6 years. The following table presents a summary of RSU award activity for the nine months ended September 26, 2020: Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (Years) Unvested RSUs as of December 28, 2019 175,025 $ 78.19 1.9 Granted 66,815 85.68 Vested (49,259) 80.20 Forfeited (27,288) 78.11 Unvested RSUs as of September 26, 2020 165,293 $ 80.63 1.9 RSUs granted prior to fiscal 2020 vest on the third anniversary of the grant date while RSUs granted in fiscal 2020 vest one third each year on the anniversary of the grant date, provided the holder of the RSUs is continuously employed by the Company until the vesting date. Compensation expense recognized related to the RSUs was $3.5 million for the nine months ended September 26, 2020. As of September 26, 2020, there was $8.2 million of unrecognized compensation cost related to non-vested RSUs that is expected to be recognized as a charge to earnings over a weighted average period of 1.9 years. Performance Share Units Performance share units ("PSU") 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 3 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 award agreements, acceleration of vesting may occur under a change in control, death or disability. There are no voting rights associated with PSUs until vesting occurs and a share of stock is issued. Some of the PSU awards are valued using a Monte Carlo simulation method as of the grant date while others are valued using the closing market price as of the grant date depending on the performance criteria for the award. The assumptions used in the Company's Monte Carlo simulation were as follows: 2020 2019 Risk-free interest rate 1.4 % 2.3 % Expected life (years) 3.0 3.0 Expected volatility 24.0 % 25.0 % Expected dividend yield 1.4 % 1.5 % The following table presents a summary of PSU activity for the nine months ended September 26, 2020: Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (Years) Unvested PSUs as of December 28, 2019 90,565 $ 86.35 1.9 Granted 42,677 99.74 Vested (7,545) 95.33 Forfeited (30,987) 86.59 Unvested PSUs as of September 26, 2020 94,710 $ 91.59 2.0 Compensation expense for awards granted is recognized based on the grant issuance 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 $1.6 million for the nine months ended September 26, 2020. Total unrecognized compensation expense for all PSUs granted as of September 26, 2020 is estimated to be $5.4 million which is expected to be recognized as a charge to earnings over a weighted average period of 2.0 years. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rate for the three months ended September 26, 2020 was 20.5% versus 16.3% for the three months ended September 28, 2019. The effective tax rate for the nine months ended September 26, 2020 was 21.7% versus 18.8% for the nine months ended September 28, 2019. The change in the effective tax rate for the three and nine months ended September 26, 2020 was primarily driven by the 2019 expiration of the China incentives awarded to the Company for research and development efforts and the mix of earnings. The Company has applied for the renewal of the China tax incentives and will record the benefit if approval is granted. As of September 26, 2020 and December 28, 2019, the Company had approximately $6.9 million of unrecognized tax benefits, 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. The Company had approximately $2.7 million and $2.3 million of accrued interest as of September 26, 2020 and December 28, 2019, respectively. 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 2014, and the Company is no longer subject to non-US income tax examinations by tax authorities for years prior to 2012. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Diluted earnings per share is calculated 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. The amount of the anti-dilutive shares were 0.3 million and 0.5 million for the three months ended September 26, 2020 and September 28, 2019, respectively. The amount of the anti-dilutive shares were 0.4 million and 0.4 million for the nine months ended September 26, 2020 and September 28, 2019, respectively. The following table reconciles the basic and diluted shares used in earnings per share calculations for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Denominator for Basic Earnings Per Share 40.6 41.5 40.6 42.3 Effect of Dilutive Securities 0.2 0.2 0.1 0.3 Denominator for Diluted Earnings Per Share 40.8 41.7 40.7 42.6 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 26, 2020 | |
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, its results of operations or its cash flows. The Company recognizes the cost associated with its standard warranty on its products at the time of sale. The amount recognized is based on historical experience. The following table presents a reconciliation of the changes in accrued warranty costs for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Beginning Balance $ 15.7 $ 16.4 $ 15.1 $ 14.8 Less: Payments (3.7) (4.3) (10.6) (9.0) Provisions 4.4 4.4 11.9 11.1 Held for Sale — — — (0.4) Ending Balance $ 16.4 $ 16.5 $ 16.4 $ 16.5 These liabilities are included in Other Accrued Expenses and Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheet. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 26, 2020 | |
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 Condensed 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 September 26, 2020 or September 28, 2019. 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 the same line within the Condensed Consolidated Statement of Income as the earnings effect of the hedged item in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or changes in market value of derivatives not designated as hedges are recognized in current earnings. At September 26, 2020, the Company had $(0.5) 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. At December 28, 2019, the Company had $1.3 million, net of tax, of derivative gains on closed hedge instruments in AOCI that was subsequently realized in earnings when the hedged items impacted earnings. As of September 26, 2020, the Company had the following currency forward contracts outstanding (with maturities extending through June 2022) to hedge forecasted foreign currency cash flows (in millions): Notional Amount (in US Dollars) Chinese Renminbi $ 55.6 Mexican Peso 110.8 Euro 148.6 Indian Rupee 32.2 Canadian Dollar 2.4 Australian Dollar 16.7 British Pound 17.9 Thai Baht 6.2 As of September 26, 2020, the Company had the following commodity forward contracts outstanding (with maturities extending through December 2021) to hedge forecasted purchases of commodities (notional amounts expressed in terms of the dollar value of the hedged item (in millions)): Notional Amount Copper $ 38.9 Aluminum 3.2 As of September 26, 2020, 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. The Company entered into two receive variable/pay-fixed forward starting non-amortizing interest rate swaps in June 2020, with a total notional amount of $250.0 million. These swaps become effective July 2021 and will expire in July 2025. The following table presents the fair values of derivative instruments as of September 26, 2020 and December 28, 2019 (in millions): September 26, 2020 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Current Hedging Obligations Noncurrent Hedging Obligations Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ — $ 1.2 $ 2.0 Currency Contracts 9.7 1.0 6.8 0.3 Commodity Contracts 6.8 — — — Not Designated as Hedging Instruments: Currency Contracts 0.1 — — — Total Derivatives $ 16.6 $ 1.0 $ 8.0 $ 2.3 December 28, 2019 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Current Hedging Obligations Noncurrent Hedging Obligations Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ — $ — $ 1.0 Currency Contracts 8.8 10.3 3.0 0.2 Commodity Contracts 2.6 0.1 0.2 — Not Designated as Hedging Instruments: Currency Contracts 0.1 — 0.1 — Commodity Contracts — — 0.1 — Total Derivatives $ 11.5 $ 10.4 $ 3.4 $ 1.2 The following table presents the effect of derivative instruments on the Condensed Consolidated Statements of Income and Condensed Consolidated Statement of Comprehensive Income (pre-tax) (in millions): Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended September 26, 2020 September 28, 2019 Commodity Forwards Currency Forwards Interest Rate Swaps Total Commodity Forwards Currency Forwards Interest Rate Swaps Total Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 5.8 $ 2.4 $ (0.3) $ 7.9 $ (3.9) $ (3.2) $ 0.6 $ (6.5) Amounts Reclassified from Other Comprehensive Income (Loss): Gain recognized in Net Sales — — — — — 0.1 — 0.1 Gain (Loss) Recognized in Cost of Sales (0.4) (4.9) — (5.3) (1.8) 2.0 — 0.2 Gain (Loss) Recognized in Operating Expenses — (3.1) — (3.1) — 3.2 — 3.2 Gain Recognized in Interest Expense — — 0.2 0.2 — — 0.7 0.7 Nine Months Ended September 26, 2020 September 28, 2019 Commodity Forwards Currency Forwards Interest Rate Swaps Total Commodity Forwards Currency Forwards Interest Rate Swaps Total Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 5.1 $ (19.9) $ (1.4) $ (16.2) $ (3.3) $ 8.5 $ 0.6 $ 5.8 Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — — — — — 0.3 — 0.3 Gain (Loss) Recognized in Cost of Sales (2.4) (2.1) — (4.5) (5.4) 3.8 — (1.6) Gain (Loss) Recognized in Operating Expenses — (4.0) — (4.0) — 3.6 — 3.6 Gain Recognized in Interest Expense — — 0.8 0.8 — — 1.9 1.9 Derivatives Not Designated as Cash Flow Hedging Instruments (in millions): Three Months Ended September 26, 2020 September 28, 2019 Commodity Forwards Currency Forwards Commodity Forwards Currency Forwards Gain recognized in Cost of Sales $ 0.1 $ — $ — $ — Gain (Loss) recognized in Operating Expenses $ — $ (2.4) $ — $ 0.6 Nine Months Ended September 26, 2020 September 28, 2019 Commodity Forwards Currency Forwards Commodity Forwards Currency Forwards Gain recognized in Cost of Sales $ 0.1 $ 0.1 $ — Gain (Loss) recognized in Operating Expenses $ — $ (3.7) $ — $ 0.1 The net AOCI hedging component balance of a $1.5 million gain at September 26, 2020 includes $4.0 million of net current deferred gain expected to be realized in the next twelve months. The gain/loss reclassified from AOCI into earnings on such derivatives will be recognized in the same period in which the related item affects earnings. 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 Condensed Consolidated Balance Sheets on a gross basis for the periods ended September 26, 2020 and December 28, 2019. The following table presents the derivative assets and derivative liabilities presented on a net basis under enforceable master netting agreements (in millions): September 26, 2020 Gross Amounts as Presented in the Condensed 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 $ 9.8 $ (3.5) $ 6.3 Derivative Commodity Contracts 6.8 — 6.8 Other Noncurrent Assets: Derivative Currency Contracts 1.0 (0.1) 0.9 Current Hedging Obligations: Derivative Currency Contracts 6.8 (3.5) 3.3 Noncurrent Hedging Obligations: Derivative Currency Contracts 0.3 (0.1) 0.2 December 28, 2019 Gross Amounts as Presented in the Condensed 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 $ 8.9 $ (2.5) $ 6.4 Derivative Commodity Contracts 2.6 (0.3) 2.3 Other Noncurrent Assets: Derivative Currency Contracts 10.3 (0.1) 10.2 Derivative Commodity Contracts 0.1 — 0.1 Current Hedging Obligations: Derivative Currency Contracts 3.1 (2.5) 0.6 Derivative Commodity Contracts 0.3 (0.3) — Noncurrent Hedging Obligations: Derivative Currency Contracts 0.2 (0.1) 0.1 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 26, 2020 | |
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 fair values of cash equivalents and short-term deposits approximate their carrying values as of September 26, 2020 and December 28, 2019, due to the short period of time to maturity and are classified using Level 1 inputs. The fair values of trade receivables and accounts payable approximate the carrying values due to the short period of time to maturity. See Note 7 for disclosure of the approximate fair value of the Company's debt at September 26, 2020 and December 28, 2019. 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 September 26, 2020 and December 28, 2019 (in millions): September 26, 2020 December 28, 2019 Classification Assets: Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 9.8 $ 8.9 Level 2 Derivative Commodity Contracts 6.8 2.6 Level 2 Other Noncurrent Assets: Assets Held in Rabbi Trust 6.2 6.1 Level 1 Derivative Currency Contracts 1.0 10.3 Level 2 Derivative Commodity Contracts — 0.1 Level 2 Liabilities: Current Hedging Obligations: Interest Rate Swap 1.2 — Level 2 Derivative Currency Contracts 6.8 3.1 Level 2 Derivative Commodity Contracts — 0.3 Level 2 Noncurrent Hedging Obligations: Interest Rate Swap 2.0 1.0 Level 2 Derivative Currency Contracts 0.3 0.2 Level 2 Level 1 fair value measurements for assets held in a Rabbi Trust are unadjusted quoted prices. |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 9 Months Ended |
Sep. 26, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES The Company incurred restructuring and restructuring-related costs on projects during fiscal 2020 and 2019. 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 table presents a reconciliation of provisions and payments for the restructuring projects for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Beginning Balance $ 2.9 $ 0.7 $ 0.9 $ 0.2 Provision 5.8 7.3 18.7 13.2 Less: Payments 7.7 8.0 18.6 13.4 Ending Balance $ 1.0 $ — $ 1.0 $ — The following table presents a reconciliation of restructuring and restructuring-related costs for restructuring projects for the three and nine months ended September 26, 2020 and September 28, 2019, respectively (in millions): Three Months Ended September 26, 2020 September 28, 2019 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ 1.5 $ 0.5 $ 2.0 $ 2.5 $ 2.4 $ 4.9 Facility Related Costs 2.5 1.6 4.1 1.9 0.5 2.4 Other Expenses — (0.3) (0.3) — — — Total Restructuring Costs $ 4.0 $ 1.8 $ 5.8 $ 4.4 $ 2.9 $ 7.3 Nine Months Ended September 26, 2020 September 28, 2019 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ 4.4 $ 3.5 $ 7.9 $ 2.9 $ 3.9 $ 6.8 Facility Related Costs 8.4 2.4 10.8 3.2 3.2 6.4 Other Expenses 0.3 (0.3) — — — — Total Restructuring Costs $ 13.1 $ 5.6 $ 18.7 $ 6.1 $ 7.1 $ 13.2 The following table presents the allocation of restructuring and restructuring-related costs by segment for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Restructuring Costs - Three Months Ended Total Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions September 26, 2020 $ 5.8 $ 0.7 $ 2.3 $ 0.8 $ 2.0 September 28, 2019 $ 7.3 $ 2.5 $ 3.1 $ 0.8 $ 0.9 Restructuring Costs - Nine Months Ended Total Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions September 26, 2020 $ 18.7 $ 4.8 $ 5.2 $ 3.2 $ 5.5 September 28, 2019 $ 13.2 $ 4.8 $ 5.5 $ 1.5 $ 1.4 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 26, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTThe Company has evaluated subsequent events since September 26, 2020, the date of these financial statements, and is not aware of any events to disclose. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 26, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20). The ASU addresses modifications to the disclosure requirements for Defined Benefit Plans. Under ASU 2018-14 the disclosure requirements that can be removed are amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, amount and timing of plan assets expected to be returned to the employer, and the effects of a one-percentage-point change in assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic benefit costs and benefit obligations for postretirement health care benefits. Additional disclosures are required for the weighted -average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation for significant gains and losses related to the changes in the benefit obligation for the period. If a defined benefit pension plan has a projected benefit obligation greater than plan assets the projected benefit obligation and fair value of plan assets should be disclosed. This additional disclosure is also required when comparing the accumulated benefit obligation to plan assets. This ASU becomes effective for fiscal years ending after December 15, 2020 on a retrospective basis for all years presented. Early adoption is permitted. The Company is evaluating the effect of adopting this new accounting guidance, but does not anticipate a material impact on the financial statement disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes . The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, and clarifies and amends existing guidance to improve consistent application. This ASU becomes effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance. Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU provides optional transition guidance, for a limited time, to companies that have contracts, hedging relationships or other transactions that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate which is expected to be discontinued because of reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. In the second quarter, the Company adopted this standard prospectively and is applying those expedients that allow the Company to continue to assert that LIBOR-based interest remains probable, despite the sunset of LIBOR at the end of 2021 with no impact on the Company's Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU focuses on updates around disclosures of Level 3 fair value measurements and it presents modifications to current disclosure requirements. The additional requirements under this ASU include disclosure for the changes in unrealized gains and losses included in other comprehensive income ("OCI") held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs. The ASU is also eliminating the disclosure requirement for the amount and reason for transfers between Level 1 and Level 2 fair value measurement, valuation processes for Level 3 measurements, and policy for timing of transfers between levels of the fair value hierarchy. In addition, the ASU modifies the disclosure requirements for investments that are valued based on net asset value. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods therein. The ASU requires prospective application for only the most recent interim or annual period presented in the year of adoption for changes in unrealized gains and losses included in OCI, the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, and the narrative description of measurement uncertainty. The Company adopted the standard as of December 29, 2019, the beginning of fiscal 2020, with no material impact on the Company's Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13 Financial Instruments Credit Losses (Topic 326) . The focus of this ASU is to require businesses to adjust their allowance for lifetime expected credit losses rather than incurred losses. It is believed that the change will result in more timely recognition of such losses. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods therein. The Company adopted the standard as of December 29, 2019, the beginning of fiscal 2020, under the modified retrospective approach. The Company recorded a $3.4 million increase in the allowance for credit losses and a $2.7 million net decrease to retained earnings as of December 29, 2019 for the cumulative effect of adopting ASU 2016-13. |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Percentage Distribution between Major Classes of Inventory | The following table presents approximate percentage distribution between major classes of inventories: September 26, 2020 December 28, 2019 Raw Material and Work in Process 49% 48% Finished Goods and Purchased Parts 51% 52% |
Property, Plant, and Equipment by Major Classification | The following table presents property, plant, and equipment by major classification (dollars in millions): Useful Life in Years September 26, 2020 December 28, 2019 Land and Improvements $ 75.3 $ 80.3 Buildings and Improvements 3 - 50 285.0 305.2 Machinery and Equipment 3 - 15 969.6 988.2 Property, Plant and Equipment 1,329.9 1,373.7 Less: Accumulated Depreciation (780.5) (768.7) Net Property, Plant and Equipment $ 549.4 $ 605.0 |
Disaggregation of Revenue | The following tables presents the Company’s revenues disaggregated by geographical region (in millions): Three Months Ended September 26, 2020 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 156.9 $ 71.1 $ 210.7 $ 133.5 $ 572.2 Asia 35.4 35.7 9.7 7.4 88.2 Europe 8.0 6.4 7.7 20.1 42.2 Rest-of-World 18.2 25.6 5.9 5.9 55.6 Total $ 218.5 $ 138.8 $ 234.0 $ 166.9 $ 758.2 September 28, 2019 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 151.4 $ 78.8 $ 204.4 $ 146.3 $ 580.9 Asia 27.4 42.7 7.4 7.1 84.6 Europe 32.1 11.8 9.3 22.8 76.0 Rest-of-World 3.9 10.5 9.8 6.6 30.8 Total $ 214.8 $ 143.8 $ 230.9 $ 182.8 $ 772.3 Nine Months Ended September 26, 2020 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 412.8 $ 213.2 $ 554.1 $ 417.6 $ 1,597.7 Asia 87.7 109.1 19.3 19.8 235.9 Europe 62.0 34.3 22.8 66.2 185.3 Rest-of-World 31.3 32.4 26.1 17.8 107.6 Total $ 593.8 $ 389.0 $ 622.3 $ 521.4 $ 2,126.5 September 28, 2019 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total North America $ 503.5 $ 238.0 $ 671.1 $ 485.8 $ 1,898.4 Asia 82.4 126.8 28.6 21.7 259.5 Europe 101.8 39.2 31.5 70.0 242.5 Rest-of-World 15.6 33.4 30.9 19.5 99.4 Total $ 703.3 $ 437.4 $ 762.1 $ 597.0 $ 2,499.8 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Equity [Abstract] | |
Changes In Accumulated Other Comprehensive Loss By Component, Net Of Tax | The following tables present changes in AOCI by component for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended September 26, 2020 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ (10.7) $ (30.5) $ (253.8) $ (295.0) Other Comprehensive Income (Loss) before Reclassifications 7.9 (0.1) 35.9 43.7 Tax Impact (1.9) — — (1.9) Amounts Reclassified from Accumulated Other Comprehensive Income 8.2 0.1 — 8.3 Tax Impact (2.0) — — (2.0) Net Current Period Other Comprehensive Income 12.2 — 35.9 48.1 Ending Balance $ 1.5 $ (30.5) $ (217.9) $ (246.9) September 28, 2019 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ 3.9 $ (37.5) $ (199.2) $ (232.8) Other Comprehensive Income (Loss) before Reclassifications (6.5) 0.1 (37.4) (43.8) Tax Impact 1.6 — — 1.6 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (4.2) 0.5 — (3.7) Tax Impact 1.0 (0.1) — 0.9 Net Current Period Other Comprehensive Income (Loss) (8.1) 0.5 (37.4) (45.0) Ending Balance $ (4.2) $ (37.0) $ (236.6) $ (277.8) Nine Months Ended September 26, 2020 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ 8.0 $ (31.0) $ (214.8) $ (237.8) Other Comprehensive Income (Loss) before Reclassifications (16.2) 0.2 (3.1) (19.1) Tax Impact 3.9 — — 3.9 Amounts Reclassified from Accumulated Other Comprehensive Income 7.7 0.4 — 8.1 Tax Impact (1.9) (0.1) — (2.0) Net Current Period Other Comprehensive Income (Loss) (6.5) 0.5 (3.1) (9.1) Ending Balance $ 1.5 $ (30.5) $ (217.9) $ (246.9) September 28, 2019 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning balance $ (5.4) $ (38.2) $ (207.8) $ (251.4) Other Comprehensive Income (Loss) before Reclassifications 5.8 (0.1) (30.4) (24.7) Tax Impact (1.4) — — (1.4) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (4.2) 1.6 1.6 (1.0) Tax Impact 1.0 (0.3) — 0.7 Net Current Period Other Comprehensive Income (Loss) 1.2 1.2 (28.8) (26.4) Ending Balance $ (4.2) $ (37.0) $ (236.6) $ (277.8) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents changes to goodwill during the nine months ended September 26, 2020 (in millions): Total Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Balance as of December 28, 2019 $ 1,501.3 $ 426.6 $ 170.8 $ 331.2 $ 572.7 Translation Adjustments 7.1 (0.6) 1.3 (1.2) 7.6 Balance as of September 26, 2020 $ 1,508.4 $ 426.0 $ 172.1 $ 330.0 $ 580.3 Cumulative Goodwill Impairment Charges $ 285.2 $ 183.2 $ 61.6 $ 17.2 $ 23.2 |
Schedule of Finite-Lived Intangible Assets | The following table presents intangible assets (in millions): September 26, 2020 December 28, 2019 Weighted Average Amortization Period (Years) Gross Value Accumulated Amortization Gross Value Accumulated Amortization Amortizable Intangible Assets: Customer Relationships 17 $ 698.5 $ 334.4 $ 692.1 $ 302.4 Technology 14 144.7 105.4 144.0 99.0 Trademarks 14 36.5 26.6 35.9 25.0 Patent and Engineering Drawings 5 16.6 16.6 16.6 16.6 896.3 483.0 888.6 443.0 Non-Amortizable Trade Name 122.1 — 121.6 — $ 1,018.4 $ 483.0 $ 1,010.2 $ 443.0 Intangible Assets, Net of Amortization $ 535.4 $ 567.2 |
Schedule of Indefinite-Lived Intangible Assets | The following table presents intangible assets (in millions): September 26, 2020 December 28, 2019 Weighted Average Amortization Period (Years) Gross Value Accumulated Amortization Gross Value Accumulated Amortization Amortizable Intangible Assets: Customer Relationships 17 $ 698.5 $ 334.4 $ 692.1 $ 302.4 Technology 14 144.7 105.4 144.0 99.0 Trademarks 14 36.5 26.6 35.9 25.0 Patent and Engineering Drawings 5 16.6 16.6 16.6 16.6 896.3 483.0 888.6 443.0 Non-Amortizable Trade Name 122.1 — 121.6 — $ 1,018.4 $ 483.0 $ 1,010.2 $ 443.0 Intangible Assets, Net of Amortization $ 535.4 $ 567.2 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents future estimated annual amortization for intangible assets (in millions): Year Estimated Amortization 2021 $ 43.0 2022 41.2 2023 41.2 2024 40.6 2025 38.5 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Segment Reporting [Abstract] | |
Schedule Of Reportable Segments | The following sets forth certain financial information attributable to the Company's operating segments for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended September 26, 2020 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Eliminations Total External Sales $ 218.5 $ 138.8 $ 234.0 $ 166.9 $ — $ 758.2 Intersegment Sales 14.5 7.4 4.6 0.6 (27.1) — Total Sales 233.0 146.2 238.6 167.5 (27.1) 758.2 Gross Profit 61.4 31.2 69.1 59.9 — 221.6 Operating Expenses 36.1 24.6 29.9 41.0 — 131.6 Total Operating Expenses 36.1 24.6 29.9 41.0 — 131.6 Income from Operations 25.3 6.6 39.2 18.9 — 90.0 Depreciation and Amortization 7.9 6.0 5.0 14.0 — 32.9 Capital Expenditures 3.2 1.7 1.8 2.6 — 9.3 September 28, 2019 External Sales $ 214.8 $ 143.8 $ 230.9 $ 182.8 $ — $ 772.3 Intersegment Sales 10.8 8.0 4.2 1.2 (24.2) — Total Sales 225.6 151.8 235.1 184.0 (24.2) 772.3 Gross Profit 53.5 23.7 64.2 60.5 — 201.9 Operating Expenses 36.8 26.0 26.5 39.6 — 128.9 Loss on Divestitures 0.1 — 0.1 — — 0.2 Total Operating Expenses 36.9 26.0 26.6 39.6 — 129.1 Income (Loss) from Operations 16.6 (2.3) 37.6 20.9 — 72.8 Depreciation and Amortization 8.3 6.5 5.1 14.0 — 33.9 Capital Expenditures 6.8 4.2 6.8 3.3 — 21.1 Nine Months Ended September 26, 2020 Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Eliminations Total External Sales $ 593.8 $ 389.0 $ 622.3 $ 521.4 $ — $ 2,126.5 Intersegment Sales 43.2 23.2 13.0 1.9 (81.3) — Total Sales 637.0 412.2 635.3 523.3 (81.3) 2,126.5 Gross Profit 154.5 78.7 175.9 186.1 — 595.2 Operating Expenses 107.8 69.2 85.9 122.2 — 385.1 Gain on Divestiture of Businesses (0.1) — — — — (0.1) Asset Impairments 2.8 0.2 1.3 — — 4.3 Total Operating Expenses 110.5 69.4 87.2 122.2 — 389.3 Income from Operations 44.0 9.3 88.7 63.9 — 205.9 Depreciation and Amortization 24.5 17.9 14.7 41.7 — 98.8 Capital Expenditures 8.5 6.0 8.0 7.2 — 29.7 September 28, 2019 External Sales $ 703.3 $ 437.4 $ 762.1 $ 597.0 $ — $ 2,499.8 Intersegment Sales 34.7 27.8 13.1 3.3 (78.9) — Total Sales 738.0 465.2 775.2 600.3 (78.9) 2,499.8 Gross Profit 184.3 75.3 209.7 201.2 — 670.5 Operating Expenses 121.8 82.2 86.2 126.1 — 416.3 (Gain) Loss on Divestiture of Businesses (39.4) 0.1 (6.0) 0.1 — (45.2) Asset Impairments 6.7 0.9 1.3 1.1 — 10.0 Total Operating Expenses 89.1 83.2 81.5 127.3 — 381.1 Income (Loss) from Operations 95.2 (7.9) 128.2 73.9 — 289.4 Depreciation and Amortization 26.1 18.2 14.5 41.6 — 100.4 Capital Expenditures 24.2 18.1 19.4 15.6 — 77.3 |
Reconciliation of Segment Assets | The following table presents identifiable assets information attributable to the Company's operating segments as of September 26, 2020 and December 28, 2019 (in millions): Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions Total Identifiable Assets as of September 26, 2020 $ 1,258.2 $ 826.1 $ 876.4 $ 1,518.7 $ 4,479.4 Identifiable Assets as of December 28, 2019 $ 1,198.5 $ 802.8 $ 878.3 $ 1,551.1 $ 4,430.7 |
DEBT AND BANK CREDIT FACILITI_2
DEBT AND BANK CREDIT FACILITIES (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Schedule Of Indebtedness | The following table presents the Company’s indebtedness as of September 26, 2020 and December 28, 2019 (in millions): September 26, 2020 December 28, 2019 Term Facility $ 670.0 $ 720.0 Senior Notes 400.0 400.0 Multicurrency Revolving Facility — 17.7 Other 4.3 4.5 Less: Debt Issuance Costs (3.5) (4.7) Total 1,070.8 1,137.5 Less: Current Maturities 230.6 0.6 Long-Term Debt $ 840.2 $ 1,136.9 |
Details On The Senior Notes | The following table presents details on the Notes at September 26, 2020 (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 $ 400.0 |
RETIREMENT AND POST RETIREMEN_2
RETIREMENT AND POST RETIREMENT HEALTH CARE PLANS (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of Net Periodic Defined Benefit Pension Cost | The following table presents the Company’s net periodic benefit cost (income) components (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Service Cost $ 0.4 $ 1.5 $ 1.5 $ 4.6 Interest Cost 2.1 2.8 6.2 8.2 Expected Return on Plan Assets (3.3) (3.2) (9.9) (9.4) Amortization of Prior Service Cost and Net Actuarial Loss 0.1 0.5 0.4 1.6 Net Periodic Benefit Cost (Income) $ (0.7) $ 1.6 $ (1.8) $ 5.0 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Leases [Abstract] | |
Lease Costs | The components of lease expense were as follows (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Operating Lease Cost $ 7.5 $ 7.8 $ 22.8 $ 24.9 Finance Lease Cost: Amortization of ROU Assets 0.1 0.1 0.2 0.2 Interest on Lease Liabilities — — 0.1 0.2 Total Lease Expense $ 7.6 7.9 $ 23.1 $ 25.3 Other information related to leases was as follows (in millions): Nine Months Ended Supplemental Cash Flows Information September 26, 2020 September 28, 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating Cash Flows Used For Operating Leases $ 21.8 $ 24.9 Operating Cash Flows Used For Finance Leases 0.1 0.2 Financing Cash Flows Used For Finance Leases 0.2 0.2 Leased Assets Obtained in Exchange for New Operating Lease Liabilities 21.3 10.6 Weighted Average Remaining Lease Term Operating Leases 5.2 years 4.6 years Finance Leases 7.5 years 8.5 years Weighted Average Discount Rate Operating Leases 8.2 % 8.3 % Finance Leases 5.9 % 5.9 % |
Finance Lease Maturities | Maturity of lease liabilities as of September 26, 2020 were as follows (in millions): Operating Leases Finance Leases Total Remainder of 2020 $ 7.4 $ 0.1 $ 7.5 2021 25.2 0.5 25.7 2022 18.4 0.6 19.0 2023 12.2 0.6 12.8 2024 8.2 0.6 8.8 Thereafter 23.1 1.9 25.0 Total Lease Payments $ 94.5 $ 4.3 $ 98.8 Less: Interest (17.3) (0.8) (18.1) Present Value of Lease Liabilities $ 77.2 $ 3.5 $ 80.7 |
Operating Lease Maturities | Maturity of lease liabilities as of September 26, 2020 were as follows (in millions): Operating Leases Finance Leases Total Remainder of 2020 $ 7.4 $ 0.1 $ 7.5 2021 25.2 0.5 25.7 2022 18.4 0.6 19.0 2023 12.2 0.6 12.8 2024 8.2 0.6 8.8 Thereafter 23.1 1.9 25.0 Total Lease Payments $ 94.5 $ 4.3 $ 98.8 Less: Interest (17.3) (0.8) (18.1) Present Value of Lease Liabilities $ 77.2 $ 3.5 $ 80.7 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-Based Compensation Activity | The following table presents share-based compensation activity for the nine months ended September 26, 2020 and September 28, 2019 (in millions): September 26, 2020 September 28, 2019 Total Intrinsic Value of Share-Based Incentive Awards Exercised $ 5.7 $ 5.1 Cash Received from Stock Option Exercises 0.2 — Income Tax Benefit from the Exercise of SARs 0.4 (0.1) Total Fair Value of Share-Based Incentive Awards Vested 1.8 5.4 |
Schedule of Share-based Payment Award, Valuation Assumptions | The following table presents assumptions used in the Company's Black-Scholes valuation related to grants of SARs: 2020 2019 Per share weighted average fair value of grants $ 21.23 $ 20.84 Risk-free interest rate 1.5 % 2.4 % Expected life (years) 7.0 7.0 Expected volatility 25.2 % 25.0 % Expected dividend yield 1.4 % 1.5 % The assumptions used in the Company's Monte Carlo simulation were as follows: 2020 2019 Risk-free interest rate 1.4 % 2.3 % Expected life (years) 3.0 3.0 Expected volatility 24.0 % 25.0 % Expected dividend yield 1.4 % 1.5 % |
Summary of Share-Based Incentive Plan Grant Activity For SAR's | The following table presents a summary of share-based incentive plan grant activity for the nine months ended September 26, 2020. Number of Shares Under SARs Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of December 28, 2019 817,790 $ 73.34 6.0 $ 9.9 Granted 181,177 88.25 Exercised (299,816) 69.29 Forfeited (92,352) 76.99 Expired (3,308) 67.38 Outstanding as of September 26, 2020 603,491 $ 79.00 4.5 $ 5.7 Exercisable as of September 26, 2020 197,612 $ 70.73 4.5 $ 4.4 |
Summary of RSA Award Activity | The following table presents a summary of RSA award activity for the nine months ended September 26, 2020: Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (Years) Unvested RSAs as of December 28, 2019 15,571 $ 80.41 0.4 Granted 16,280 70.05 Vested (15,148) 80.29 Unvested RSAs as of September 26, 2020 16,703 $ 70.42 0.6 |
Summary of RSU Award Activity | The following table presents a summary of RSU award activity for the nine months ended September 26, 2020: Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (Years) Unvested RSUs as of December 28, 2019 175,025 $ 78.19 1.9 Granted 66,815 85.68 Vested (49,259) 80.20 Forfeited (27,288) 78.11 Unvested RSUs as of September 26, 2020 165,293 $ 80.63 1.9 |
Summary of PSU Award Activity | The following table presents a summary of PSU activity for the nine months ended September 26, 2020: Shares Weighted Average Fair Value at Grant Date Weighted Average Remaining Contractual Term (Years) Unvested PSUs as of December 28, 2019 90,565 $ 86.35 1.9 Granted 42,677 99.74 Vested (7,545) 95.33 Forfeited (30,987) 86.59 Unvested PSUs as of September 26, 2020 94,710 $ 91.59 2.0 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
Schedule Of Reconciliation Of Basic And Diluted Shares Used in EPS | The following table reconciles the basic and diluted shares used in earnings per share calculations for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Denominator for Basic Earnings Per Share 40.6 41.5 40.6 42.3 Effect of Dilutive Securities 0.2 0.2 0.1 0.3 Denominator for Diluted Earnings Per Share 40.8 41.7 40.7 42.6 |
CONTINGENCIES (Tables)
CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Accrued Warranty Costs | The following table presents a reconciliation of the changes in accrued warranty costs for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Beginning Balance $ 15.7 $ 16.4 $ 15.1 $ 14.8 Less: Payments (3.7) (4.3) (10.6) (9.0) Provisions 4.4 4.4 11.9 11.1 Held for Sale — — — (0.4) Ending Balance $ 16.4 $ 16.5 $ 16.4 $ 16.5 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Forward Contracts | As of September 26, 2020, the Company had the following currency forward contracts outstanding (with maturities extending through June 2022) to hedge forecasted foreign currency cash flows (in millions): Notional Amount (in US Dollars) Chinese Renminbi $ 55.6 Mexican Peso 110.8 Euro 148.6 Indian Rupee 32.2 Canadian Dollar 2.4 Australian Dollar 16.7 British Pound 17.9 Thai Baht 6.2 As of September 26, 2020, the Company had the following commodity forward contracts outstanding (with maturities extending through December 2021) to hedge forecasted purchases of commodities (notional amounts expressed in terms of the dollar value of the hedged item (in millions)): Notional Amount Copper $ 38.9 Aluminum 3.2 |
Schedule of Fair Values of Derivative Instruments | The following table presents the fair values of derivative instruments as of September 26, 2020 and December 28, 2019 (in millions): September 26, 2020 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Current Hedging Obligations Noncurrent Hedging Obligations Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ — $ 1.2 $ 2.0 Currency Contracts 9.7 1.0 6.8 0.3 Commodity Contracts 6.8 — — — Not Designated as Hedging Instruments: Currency Contracts 0.1 — — — Total Derivatives $ 16.6 $ 1.0 $ 8.0 $ 2.3 December 28, 2019 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Current Hedging Obligations Noncurrent Hedging Obligations Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ — $ — $ 1.0 Currency Contracts 8.8 10.3 3.0 0.2 Commodity Contracts 2.6 0.1 0.2 — Not Designated as Hedging Instruments: Currency Contracts 0.1 — 0.1 — Commodity Contracts — — 0.1 — Total Derivatives $ 11.5 $ 10.4 $ 3.4 $ 1.2 |
Schedule of Cash Flow Hedging Instruments | The following table presents the effect of derivative instruments on the Condensed Consolidated Statements of Income and Condensed Consolidated Statement of Comprehensive Income (pre-tax) (in millions): Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended September 26, 2020 September 28, 2019 Commodity Forwards Currency Forwards Interest Rate Swaps Total Commodity Forwards Currency Forwards Interest Rate Swaps Total Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 5.8 $ 2.4 $ (0.3) $ 7.9 $ (3.9) $ (3.2) $ 0.6 $ (6.5) Amounts Reclassified from Other Comprehensive Income (Loss): Gain recognized in Net Sales — — — — — 0.1 — 0.1 Gain (Loss) Recognized in Cost of Sales (0.4) (4.9) — (5.3) (1.8) 2.0 — 0.2 Gain (Loss) Recognized in Operating Expenses — (3.1) — (3.1) — 3.2 — 3.2 Gain Recognized in Interest Expense — — 0.2 0.2 — — 0.7 0.7 Nine Months Ended September 26, 2020 September 28, 2019 Commodity Forwards Currency Forwards Interest Rate Swaps Total Commodity Forwards Currency Forwards Interest Rate Swaps Total Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 5.1 $ (19.9) $ (1.4) $ (16.2) $ (3.3) $ 8.5 $ 0.6 $ 5.8 Amounts Reclassified from Other Comprehensive Income (Loss): Gain Recognized in Net Sales — — — — — 0.3 — 0.3 Gain (Loss) Recognized in Cost of Sales (2.4) (2.1) — (4.5) (5.4) 3.8 — (1.6) Gain (Loss) Recognized in Operating Expenses — (4.0) — (4.0) — 3.6 — 3.6 Gain Recognized in Interest Expense — — 0.8 0.8 — — 1.9 1.9 Derivatives Not Designated as Cash Flow Hedging Instruments (in millions): Three Months Ended September 26, 2020 September 28, 2019 Commodity Forwards Currency Forwards Commodity Forwards Currency Forwards Gain recognized in Cost of Sales $ 0.1 $ — $ — $ — Gain (Loss) recognized in Operating Expenses $ — $ (2.4) $ — $ 0.6 Nine Months Ended September 26, 2020 September 28, 2019 Commodity Forwards Currency Forwards Commodity Forwards Currency Forwards Gain recognized in Cost of Sales $ 0.1 $ 0.1 $ — Gain (Loss) recognized in Operating Expenses $ — $ (3.7) $ — $ 0.1 |
Schedule of Derivatives Under Enforceable Master Netting Agreements | The following table presents the derivative assets and derivative liabilities presented on a net basis under enforceable master netting agreements (in millions): September 26, 2020 Gross Amounts as Presented in the Condensed 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 $ 9.8 $ (3.5) $ 6.3 Derivative Commodity Contracts 6.8 — 6.8 Other Noncurrent Assets: Derivative Currency Contracts 1.0 (0.1) 0.9 Current Hedging Obligations: Derivative Currency Contracts 6.8 (3.5) 3.3 Noncurrent Hedging Obligations: Derivative Currency Contracts 0.3 (0.1) 0.2 December 28, 2019 Gross Amounts as Presented in the Condensed 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 $ 8.9 $ (2.5) $ 6.4 Derivative Commodity Contracts 2.6 (0.3) 2.3 Other Noncurrent Assets: Derivative Currency Contracts 10.3 (0.1) 10.2 Derivative Commodity Contracts 0.1 — 0.1 Current Hedging Obligations: Derivative Currency Contracts 3.1 (2.5) 0.6 Derivative Commodity Contracts 0.3 (0.3) — Noncurrent Hedging Obligations: Derivative Currency Contracts 0.2 (0.1) 0.1 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
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 September 26, 2020 and December 28, 2019 (in millions): September 26, 2020 December 28, 2019 Classification Assets: Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 9.8 $ 8.9 Level 2 Derivative Commodity Contracts 6.8 2.6 Level 2 Other Noncurrent Assets: Assets Held in Rabbi Trust 6.2 6.1 Level 1 Derivative Currency Contracts 1.0 10.3 Level 2 Derivative Commodity Contracts — 0.1 Level 2 Liabilities: Current Hedging Obligations: Interest Rate Swap 1.2 — Level 2 Derivative Currency Contracts 6.8 3.1 Level 2 Derivative Commodity Contracts — 0.3 Level 2 Noncurrent Hedging Obligations: Interest Rate Swap 2.0 1.0 Level 2 Derivative Currency Contracts 0.3 0.2 Level 2 |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule Of Restructuring Reserve | The following table presents a reconciliation of provisions and payments for the restructuring projects for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Three Months Ended Nine Months Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Beginning Balance $ 2.9 $ 0.7 $ 0.9 $ 0.2 Provision 5.8 7.3 18.7 13.2 Less: Payments 7.7 8.0 18.6 13.4 Ending Balance $ 1.0 $ — $ 1.0 $ — |
Reconciliation Of Expenses By Type | The following table presents a reconciliation of restructuring and restructuring-related costs for restructuring projects for the three and nine months ended September 26, 2020 and September 28, 2019, respectively (in millions): Three Months Ended September 26, 2020 September 28, 2019 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ 1.5 $ 0.5 $ 2.0 $ 2.5 $ 2.4 $ 4.9 Facility Related Costs 2.5 1.6 4.1 1.9 0.5 2.4 Other Expenses — (0.3) (0.3) — — — Total Restructuring Costs $ 4.0 $ 1.8 $ 5.8 $ 4.4 $ 2.9 $ 7.3 Nine Months Ended September 26, 2020 September 28, 2019 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ 4.4 $ 3.5 $ 7.9 $ 2.9 $ 3.9 $ 6.8 Facility Related Costs 8.4 2.4 10.8 3.2 3.2 6.4 Other Expenses 0.3 (0.3) — — — — Total Restructuring Costs $ 13.1 $ 5.6 $ 18.7 $ 6.1 $ 7.1 $ 13.2 The following table presents the allocation of restructuring and restructuring-related costs by segment for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions): Restructuring Costs - Three Months Ended Total Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions September 26, 2020 $ 5.8 $ 0.7 $ 2.3 $ 0.8 $ 2.0 September 28, 2019 $ 7.3 $ 2.5 $ 3.1 $ 0.8 $ 0.9 Restructuring Costs - Nine Months Ended Total Commercial Systems Industrial Systems Climate Solutions Power Transmission Solutions September 26, 2020 $ 18.7 $ 4.8 $ 5.2 $ 3.2 $ 5.5 September 28, 2019 $ 13.2 $ 4.8 $ 5.5 $ 1.5 $ 1.4 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||
Sep. 26, 2020 | Dec. 28, 2019 | Jun. 27, 2020 | Dec. 29, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Dec. 29, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for doubtful accounts receivable | $ 15.6 | $ 9.7 | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 2,451.9 | $ 2,380.4 | $ 2,347 | $ 2,329.1 | $ 2,430.4 | $ 2,338.5 | |
Adoption of ASU 2016-13 | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 1,972.5 | $ 1,886.7 | $ 1,919.7 | $ 1,870.9 | $ 1,882.7 | $ 1,777.9 | |
Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for doubtful accounts receivable | $ 3.4 | ||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (2.7) | ||||||
Adjustment | Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (2.7) |
OTHER FINANCIAL INFORMATION (Pe
OTHER FINANCIAL INFORMATION (Percentage Distribution Between Major Classes of Inventory) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 26, 2020 | Dec. 28, 2019 | |
Inventory [Line Items] | ||
Percentage of inventory cost using the LIFO method | 54.00% | 53.00% |
Inventory Concentration Risk | Inventories | Raw Material and Work in Process | ||
Inventory [Line Items] | ||
Percentage of total Inventory | 49.00% | 48.00% |
Inventory Concentration Risk | Inventories | Finished Goods and Purchased Parts | ||
Inventory [Line Items] | ||
Percentage of total Inventory | 51.00% | 52.00% |
OTHER FINANCIAL INFORMATION (Pr
OTHER FINANCIAL INFORMATION (Property, Plant, And Equipment By Major Classification) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | $ 1,329.9 | $ 1,329.9 | $ 1,373.7 | ||
Less: Accumulated Depreciation | (780.5) | (780.5) | (768.7) | ||
Net Property, Plant and Equipment | 549.4 | 549.4 | 605 | ||
Asset Impairments | 0 | $ 0 | 4.3 | $ 10 | |
Impairment charge on transfer of assets to held for sale | $ 5.1 | ||||
Land and Improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | 75.3 | 75.3 | 80.3 | ||
Buildings and Improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | 285 | $ 285 | 305.2 | ||
Buildings and Improvements | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 3 years | ||||
Buildings and Improvements | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 50 years | ||||
Machinery and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | $ 969.6 | $ 969.6 | $ 988.2 | ||
Machinery and Equipment | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 3 years | ||||
Machinery and Equipment | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 15 years |
OTHER FINANCIAL INFORMATION (Na
OTHER FINANCIAL INFORMATION (Narrative) (Details) | 9 Months Ended |
Sep. 26, 2020segment | |
Balance Sheet Related Disclosures [Abstract] | |
Number of operating segments | 4 |
OTHER FINANCIAL INFORMATION (Di
OTHER FINANCIAL INFORMATION (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 758.2 | $ 772.3 | $ 2,126.5 | $ 2,499.8 |
Commercial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 218.5 | 214.8 | 593.8 | 703.3 |
Industrial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 138.8 | 143.8 | 389 | 437.4 |
Climate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 234 | 230.9 | 622.3 | 762.1 |
Power Transmission Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 166.9 | 182.8 | 521.4 | 597 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 572.2 | 580.9 | 1,597.7 | 1,898.4 |
North America | Commercial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 156.9 | 151.4 | 412.8 | 503.5 |
North America | Industrial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 71.1 | 78.8 | 213.2 | 238 |
North America | Climate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 210.7 | 204.4 | 554.1 | 671.1 |
North America | Power Transmission Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 133.5 | 146.3 | 417.6 | 485.8 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 88.2 | 84.6 | 235.9 | 259.5 |
Asia | Commercial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 35.4 | 27.4 | 87.7 | 82.4 |
Asia | Industrial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 35.7 | 42.7 | 109.1 | 126.8 |
Asia | Climate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 9.7 | 7.4 | 19.3 | 28.6 |
Asia | Power Transmission Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 7.4 | 7.1 | 19.8 | 21.7 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 42.2 | 76 | 185.3 | 242.5 |
Europe | Commercial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 8 | 32.1 | 62 | 101.8 |
Europe | Industrial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 6.4 | 11.8 | 34.3 | 39.2 |
Europe | Climate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 7.7 | 9.3 | 22.8 | 31.5 |
Europe | Power Transmission Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 20.1 | 22.8 | 66.2 | 70 |
Rest-of-World | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 55.6 | 30.8 | 107.6 | 99.4 |
Rest-of-World | Commercial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 18.2 | 3.9 | 31.3 | 15.6 |
Rest-of-World | Industrial Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 25.6 | 10.5 | 32.4 | 33.4 |
Rest-of-World | Climate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 5.9 | 9.8 | 26.1 | 30.9 |
Rest-of-World | Power Transmission Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 5.9 | $ 6.6 | $ 17.8 | $ 19.5 |
HELD FOR SALE, DIVESTITURES A_2
HELD FOR SALE, DIVESTITURES AND ACQUISITIONS (Assets Held For Sale) (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Business Combinations [Abstract] | ||
Assets Held for Sale | $ 5 | $ 2.8 |
HELD FOR SALE, DIVESTITURES A_3
HELD FOR SALE, DIVESTITURES AND ACQUISITIONS (Divestitures) (Details) - USD ($) $ in Millions | Jul. 01, 2019 | Apr. 01, 2019 | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Mar. 30, 2019 | Sep. 26, 2020 | Sep. 28, 2019 |
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of businesses | $ 0.3 | $ 159.6 | ||||||
Gain (loss) on divestiture of businesses | $ 0 | $ (0.2) | $ 0.1 | $ 45.2 | ||||
Regal Drive Technologies | Disposed of by sale | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of businesses | $ 0.3 | $ 119.9 | ||||||
Gain (loss) on divestiture of businesses | $ 0.1 | $ 41 | ||||||
Velvet Drive | Disposed of by sale | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of businesses | $ 8.9 | |||||||
Gain (loss) on divestiture of businesses | (0.5) | |||||||
CapCom | Disposed of by sale | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of businesses | 9.9 | |||||||
Gain (loss) on divestiture of businesses | $ 6 | |||||||
Vapor Recovery | Disposed of by sale | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of businesses | $ 19.2 | |||||||
Gain (loss) on divestiture of businesses | $ (1.9) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 2,347 | $ 2,430.4 | $ 2,380.4 | $ 2,338.5 |
Other Comprehensive Income (Loss) before Reclassifications | 43.7 | (43.8) | (19.1) | (24.7) |
Tax Impact | (1.9) | 1.6 | 3.9 | (1.4) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 8.3 | (3.7) | 8.1 | (1) |
Tax Impact | (2) | 0.9 | (2) | 0.7 |
Net Current Period Other Comprehensive Income (Loss) | 48.1 | (45) | (9.1) | (26.4) |
Ending Balance | 2,451.9 | 2,329.1 | 2,451.9 | 2,329.1 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (295) | (232.8) | (237.8) | (251.4) |
Ending Balance | (246.9) | (277.8) | (246.9) | (277.8) |
Hedging Activities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (10.7) | 3.9 | 8 | (5.4) |
Other Comprehensive Income (Loss) before Reclassifications | 7.9 | (6.5) | (16.2) | 5.8 |
Tax Impact | (1.9) | 1.6 | 3.9 | (1.4) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 8.2 | (4.2) | 7.7 | (4.2) |
Tax Impact | (2) | 1 | (1.9) | 1 |
Net Current Period Other Comprehensive Income (Loss) | 12.2 | (8.1) | (6.5) | 1.2 |
Ending Balance | 1.5 | (4.2) | 1.5 | (4.2) |
Pension and Post Retirement Benefit Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (30.5) | (37.5) | (31) | (38.2) |
Other Comprehensive Income (Loss) before Reclassifications | (0.1) | 0.1 | 0.2 | (0.1) |
Tax Impact | 0 | 0 | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 0.1 | 0.5 | 0.4 | 1.6 |
Tax Impact | 0 | (0.1) | (0.1) | (0.3) |
Net Current Period Other Comprehensive Income (Loss) | 0 | 0.5 | 0.5 | 1.2 |
Ending Balance | (30.5) | (37) | (30.5) | (37) |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (253.8) | (199.2) | (214.8) | (207.8) |
Other Comprehensive Income (Loss) before Reclassifications | 35.9 | (37.4) | (3.1) | (30.4) |
Tax Impact | 0 | 0 | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | 1.6 |
Tax Impact | 0 | 0 | 0 | 0 |
Net Current Period Other Comprehensive Income (Loss) | 35.9 | (37.4) | (3.1) | (28.8) |
Ending Balance | $ (217.9) | $ (236.6) | $ (217.9) | $ (236.6) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Jun. 27, 2020 | Dec. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Percentage of excess fair value over carrying value, less than | 10.00% | 10.00% | ||||
Goodwill | $ 1,508,400,000 | $ 1,508,400,000 | $ 1,501,300,000 | |||
Amortization of intangible assets | 11,900,000 | $ 12,600,000 | 36,300,000 | $ 38,000,000 | ||
Estimated amortization expense remainder of year | 48,000,000 | 48,000,000 | ||||
Impairment of intangible assets | 0 | 0 | ||||
Customer Relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of intangible assets | $ 4,900,000 | |||||
Global Industrial Motors | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 123,800,000 | $ 123,800,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Changes To Goodwill) (Details) $ in Millions | 9 Months Ended |
Sep. 26, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,501.3 |
Translation Adjustments | 7.1 |
Ending balance | 1,508.4 |
Cumulative Goodwill Impairment Charges | 285.2 |
Commercial Systems | |
Goodwill [Roll Forward] | |
Beginning balance | 426.6 |
Translation Adjustments | (0.6) |
Ending balance | 426 |
Cumulative Goodwill Impairment Charges | 183.2 |
Industrial Systems | |
Goodwill [Roll Forward] | |
Beginning balance | 170.8 |
Translation Adjustments | 1.3 |
Ending balance | 172.1 |
Cumulative Goodwill Impairment Charges | 61.6 |
Climate Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 331.2 |
Translation Adjustments | (1.2) |
Ending balance | 330 |
Cumulative Goodwill Impairment Charges | 17.2 |
Power Transmission Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 572.7 |
Translation Adjustments | 7.6 |
Ending balance | 580.3 |
Cumulative Goodwill Impairment Charges | $ 23.2 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Dec. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Value | $ 896.3 | $ 888.6 |
Accumulated Amortization | 483 | 443 |
Gross Value | 122.1 | 121.6 |
Intangible Assets | 1,018.4 | 1,010.2 |
Intangible Assets, Net of Amortization | $ 535.4 | 567.2 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 17 years | |
Gross Value | $ 698.5 | 692.1 |
Accumulated Amortization | $ 334.4 | 302.4 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 14 years | |
Gross Value | $ 144.7 | 144 |
Accumulated Amortization | $ 105.4 | 99 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 14 years | |
Gross Value | $ 36.5 | 35.9 |
Accumulated Amortization | $ 26.6 | 25 |
Patent and Engineering Drawings | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 5 years | |
Gross Value | $ 16.6 | 16.6 |
Accumulated Amortization | $ 16.6 | $ 16.6 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Estimated Amortization) (Details) $ in Millions | Sep. 26, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Amortization, 2021 | $ 43 |
Estimated Amortization, 2022 | 41.2 |
Estimated Amortization, 2023 | 41.2 |
Estimated Amortization, 2024 | 40.6 |
Estimated Amortization, 2025 | $ 38.5 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Sep. 26, 2020USD ($)segment | Sep. 28, 2019USD ($) | Dec. 28, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 4 | ||||
Total Sales | $ 758.2 | $ 772.3 | $ 2,126.5 | $ 2,499.8 | |
Gross Profit | 221.6 | 201.9 | 595.2 | 670.5 | |
Operating Expenses | 131.6 | 128.9 | 385.1 | 416.3 | |
(Gain) Loss on Divestiture of Businesses | 0 | 0.2 | (0.1) | (45.2) | |
Asset Impairments | 0 | 0 | 4.3 | 10 | |
Total Operating Expenses | 131.6 | 129.1 | 389.3 | 381.1 | |
Income from Operations | 90 | 72.8 | 205.9 | 289.4 | |
Depreciation and Amortization | 32.9 | 33.9 | 98.8 | 100.4 | |
Capital Expenditures | 9.3 | 21.1 | 29.7 | 77.3 | |
Assets | 4,479.4 | 4,479.4 | $ 4,430.7 | ||
Commercial Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 218.5 | 214.8 | 593.8 | 703.3 | |
Assets | 1,258.2 | 1,258.2 | 1,198.5 | ||
Industrial Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 138.8 | 143.8 | 389 | 437.4 | |
Assets | 826.1 | 826.1 | 802.8 | ||
Climate Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 234 | 230.9 | 622.3 | 762.1 | |
Assets | 876.4 | 876.4 | 878.3 | ||
Power Transmission Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 166.9 | 182.8 | 521.4 | 597 | |
Assets | 1,518.7 | 1,518.7 | $ 1,551.1 | ||
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 27.1 | 24.2 | 81.3 | 78.9 | |
Intersegment Eliminations | Commercial Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | (14.5) | (10.8) | (43.2) | (34.7) | |
Intersegment Eliminations | Industrial Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | (7.4) | (8) | (23.2) | (27.8) | |
Intersegment Eliminations | Climate Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | (4.6) | (4.2) | (13) | (13.1) | |
Intersegment Eliminations | Power Transmission Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | (0.6) | (1.2) | (1.9) | (3.3) | |
Operating Segments | Commercial Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 233 | 225.6 | 637 | 738 | |
Gross Profit | 61.4 | 53.5 | 154.5 | 184.3 | |
Operating Expenses | 36.1 | 36.8 | 107.8 | 121.8 | |
(Gain) Loss on Divestiture of Businesses | 0.1 | (0.1) | (39.4) | ||
Asset Impairments | 2.8 | 6.7 | |||
Total Operating Expenses | 36.1 | 36.9 | 110.5 | 89.1 | |
Income from Operations | 25.3 | 16.6 | 44 | 95.2 | |
Depreciation and Amortization | 7.9 | 8.3 | 24.5 | 26.1 | |
Capital Expenditures | 3.2 | 6.8 | 8.5 | 24.2 | |
Operating Segments | Industrial Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 146.2 | 151.8 | 412.2 | 465.2 | |
Gross Profit | 31.2 | 23.7 | 78.7 | 75.3 | |
Operating Expenses | 24.6 | 26 | 69.2 | 82.2 | |
(Gain) Loss on Divestiture of Businesses | 0 | 0 | 0.1 | ||
Asset Impairments | 0.2 | 0.9 | |||
Total Operating Expenses | 24.6 | 26 | 69.4 | 83.2 | |
Income from Operations | 6.6 | (2.3) | 9.3 | (7.9) | |
Depreciation and Amortization | 6 | 6.5 | 17.9 | 18.2 | |
Capital Expenditures | 1.7 | 4.2 | 6 | 18.1 | |
Operating Segments | Climate Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 238.6 | 235.1 | 635.3 | 775.2 | |
Gross Profit | 69.1 | 64.2 | 175.9 | 209.7 | |
Operating Expenses | 29.9 | 26.5 | 85.9 | 86.2 | |
(Gain) Loss on Divestiture of Businesses | 0.1 | 0 | (6) | ||
Asset Impairments | 1.3 | 1.3 | |||
Total Operating Expenses | 29.9 | 26.6 | 87.2 | 81.5 | |
Income from Operations | 39.2 | 37.6 | 88.7 | 128.2 | |
Depreciation and Amortization | 5 | 5.1 | 14.7 | 14.5 | |
Capital Expenditures | 1.8 | 6.8 | 8 | 19.4 | |
Operating Segments | Power Transmission Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Total Sales | 167.5 | 184 | 523.3 | 600.3 | |
Gross Profit | 59.9 | 60.5 | 186.1 | 201.2 | |
Operating Expenses | 41 | 39.6 | 122.2 | 126.1 | |
(Gain) Loss on Divestiture of Businesses | 0 | 0 | 0.1 | ||
Asset Impairments | 0 | 1.1 | |||
Total Operating Expenses | 41 | 39.6 | 122.2 | 127.3 | |
Income from Operations | 18.9 | 20.9 | 63.9 | 73.9 | |
Depreciation and Amortization | 14 | 14 | 41.7 | 41.6 | |
Capital Expenditures | $ 2.6 | $ 3.3 | $ 7.2 | $ 15.6 |
DEBT AND BANK CREDIT FACILITI_3
DEBT AND BANK CREDIT FACILITIES (Schedule Of Indebtedness) (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Debt Instrument [Line Items] | ||
Less: Debt Issuance Costs | $ (3.5) | $ (4.7) |
Total | 1,070.8 | 1,137.5 |
Less: Current Maturities | 230.6 | 0.6 |
Long-Term Debt | 840.2 | 1,136.9 |
Term Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 670 | 720 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 400 | 400 |
Multicurrency Revolving Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 17.7 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 4.3 | $ 4.5 |
DEBT AND BANK CREDIT FACILITI_4
DEBT AND BANK CREDIT FACILITIES (Narrative) (Details) | Aug. 27, 2018USD ($) | Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Sep. 26, 2020USD ($)tranche | Sep. 28, 2019USD ($) | Dec. 28, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,070,800,000 | $ 1,070,800,000 | $ 1,137,500,000 | |||
Fair value of debt | 1,087,300,000 | 1,087,300,000 | 1,162,100,000 | |||
Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Principal amount | $ 900,000,000 | |||||
Amortization rate per annum | 5.00% | |||||
Amortization rate, after two years | 7.50% | |||||
Amortization rate, last two years | 10.00% | |||||
Percent of certain cash proceeds received for required prepayment | 100.00% | |||||
Long-term debt, gross | 670,000,000 | 670,000,000 | 720,000,000 | |||
Multicurrency Revolving Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Long-term debt, gross | 0 | 0 | 17,700,000 | |||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 400,000,000 | 400,000,000 | 400,000,000 | |||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 4,300,000 | $ 4,300,000 | $ 4,500,000 | |||
Weighted average interest rate | 4.90% | 4.90% | 5.00% | |||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 50,000,000 | |||||
Multicurrency Revolving Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 500,000,000 | |||||
Multicurrency Revolving Facility | Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Available borrowing capacity | $ 499,800,000 | $ 499,800,000 | ||||
Multicurrency Revolving Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings under line of credit | 0 | 0 | ||||
Multicurrency Revolving Facility | Letter of Credit | Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings under line of credit | 200,000 | 200,000 | ||||
2011 Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 400,000,000 | $ 400,000,000 | ||||
Number of tranches in private placement | tranche | 5 | |||||
2011 Notes | Minimum | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 10 years | |||||
2011 Notes | Maximum | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 12 years | |||||
Emerson Electric Co. | Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate, over time | 1.50% | 3.60% | 2.10% | 3.80% | ||
Emerson Electric Co. | Multicurrency Revolving Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate, over time | 1.50% | 3.60% | 2.10% | 3.70% | ||
Average daily balance | $ 51,400,000 | $ 127,100,000 | $ 189,700,000 | $ 91,300,000 |
DEBT AND BANK CREDIT FACILITI_5
DEBT AND BANK CREDIT FACILITIES (Details On The Senior Notes) (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Fixed Rate Series 2011A, Maturing 2021 | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percent) | 4.80% | |
Fixed Rate Series 2011A, Maturing 2021 | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percent) | 5.00% | |
Fixed Rate Series 2011A, Maturing 2023 | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percent) | 4.90% | |
Fixed Rate Series 2011A, Maturing 2023 | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percent) | 5.10% | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 400 | $ 400 |
Senior Notes | Fixed Rate Series 2011A, Maturing 2021 | ||
Debt Instrument [Line Items] | ||
Principal | 230 | |
Senior Notes | Fixed Rate Series 2011A, Maturing 2023 | ||
Debt Instrument [Line Items] | ||
Principal | $ 170 |
RETIREMENT AND POST RETIREMEN_3
RETIREMENT AND POST RETIREMENT HEALTH CARE PLANS (Schedule Of Net Periodic Defined Benefit Pension Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||||
Service Cost | $ 0.4 | $ 1.5 | $ 1.5 | $ 4.6 |
Interest Cost | 2.1 | 2.8 | 6.2 | 8.2 |
Expected Return on Plan Assets | (3.3) | (3.2) | (9.9) | (9.4) |
Amortization of Prior Service Cost and Net Actuarial Loss | 0.1 | 0.5 | 0.4 | 1.6 |
Net Periodic Benefit Cost (Income) | $ (0.7) | $ 1.6 | $ (1.8) | $ 5 |
RETIREMENT AND POST RETIREMEN_4
RETIREMENT AND POST RETIREMENT HEALTH CARE PLANS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||||
Estimated net actuarial loss to be amortized from accumulated other comprehensive loss | $ 1.2 | $ 1.2 | |||
Estimated prior service cost to be amortized from accumulated other comprehensive loss | (0.6) | (0.6) | |||
Contribution to defined benefit pension plans | 1.3 | $ 4.1 | 3.6 | $ 9 | $ 10.8 |
Expected total contribution to defined benefit pension plans | $ 5.6 | $ 5.6 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 9 Months Ended |
Sep. 26, 2020option | |
Lessee, Lease, Description [Line Items] | |
Number of options to renew | 1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, renewal term | 25 years |
LEASES (Lease Cost) (Details)
LEASES (Lease Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Leases [Abstract] | ||||
Operating Lease Cost | $ 7.5 | $ 7.8 | $ 22.8 | $ 24.9 |
Finance Lease Cost: | ||||
Amortization of ROU Assets | 0.1 | 0.1 | 0.2 | 0.2 |
Interest on Lease Liabilities | 0 | 0 | 0.1 | 0.2 |
Total Lease Expense | $ 7.6 | $ 7.9 | $ 23.1 | $ 25.3 |
LEASES (Lease Maturities) (Deta
LEASES (Lease Maturities) (Details) $ in Millions | Sep. 26, 2020USD ($) |
Operating Leases | |
Remainder of 2020 | $ 7.4 |
2021 | 25.2 |
2022 | 18.4 |
2023 | 12.2 |
2024 | 8.2 |
Thereafter | 23.1 |
Total Lease Payments | 94.5 |
Less: Interest | (17.3) |
Present Value of Lease Liabilities | 77.2 |
Finance Leases | |
Remainder of 2020 | 0.1 |
2021 | 0.5 |
2022 | 0.6 |
2023 | 0.6 |
2024 | 0.6 |
Thereafter | 1.9 |
Total Lease Payments | 4.3 |
Less: Interest | (0.8) |
Present Value of Lease Liabilities | 3.5 |
Total | |
Remainder of 2020 | 7.5 |
2021 | 25.7 |
2022 | 19 |
2023 | 12.8 |
2024 | 8.8 |
Thereafter | 25 |
Total Lease Payments | 98.8 |
Less: Interest | (18.1) |
Present Value of Lease Liabilities | $ 80.7 |
LEASES (Supplemental Informatio
LEASES (Supplemental Information) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Leases [Abstract] | ||
Operating Cash Flows Used For Operating Leases | $ 21.8 | $ 24.9 |
Operating Cash Flows Used For Finance Leases | 0.1 | 0.2 |
Financing Cash Flows Used For Finance Leases | 0.2 | 0.2 |
Leased Assets Obtained in Exchange for New Operating Lease Liabilities | $ 21.3 | $ 10.6 |
Weighted Average Remaining Lease Term | ||
Operating Leases | 5 years 2 months 12 days | 4 years 7 months 6 days |
Finance Leases | 7 years 6 months | 8 years 6 months |
Weighted Average Discount Rate | ||
Operating Leases | 8.20% | 8.30% |
Finance Leases | 5.90% | 5.90% |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Oct. 25, 2019 | Jul. 24, 2018 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 250,000,000 | $ 250,000,000 | $ 3,000,000 | ||||
Stock repurchased and retired (in shares) | 0 | 1,282,037 | 315,072 | 2,013,782 | |||
Shares repurchased (in dollars per share) | $ 79.38 | $ 73.43 | $ 74.52 | ||||
Stock repurchased and retired | $ 25,000,000 | $ 94,200,000 | $ 150,100,000 | ||||
Remaining shares to be repurchased (in shares) | 210,000,000 | 210,000,000 | |||||
Compensation expense | $ 2,700,000 | 2,600,000 | $ 8,200,000 | 10,000,000 | |||
Excess income tax benefit recognized related to share-based compensation | 600,000 | $ 500,000 | 1,700,000 | $ 2,100,000 | |||
Unrecognized compensation cost | $ 20,800,000 | $ 20,800,000 | |||||
Weighted average period of recognition | 2 years | ||||||
Number of shares available for grant | 1,800,000 | 1,800,000 | |||||
SARs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 2,200,000 | ||||||
Weighted average period of recognition | 2 years 8 months 12 days | ||||||
Award expiration period | 10 years | ||||||
Compensation expense not yet recognized | $ 6,500,000 | $ 6,500,000 | |||||
Restricted Stock Awards (RSAs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 900,000 | ||||||
Weighted average period of recognition | 7 months 6 days | ||||||
Compensation expense not yet recognized | 700,000 | $ 700,000 | |||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 3,500,000 | ||||||
Weighted average period of recognition | 1 year 10 months 24 days | ||||||
Compensation expense not yet recognized | 8,200,000 | $ 8,200,000 | |||||
Performance Share Units (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 1,600,000 | ||||||
Weighted average period of recognition | 2 years | ||||||
Award vesting period | 3 years | ||||||
Compensation expense not yet recognized | $ 5,400,000 | $ 5,400,000 | |||||
Performance period | 3 years | ||||||
Minimum | Performance Share Units (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance target percentage, payout | 0.00% | ||||||
Maximum | Performance Share Units (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance target percentage, payout | 200.00% | ||||||
Shares granted prior to fiscal 2020 | SARs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 5 years | ||||||
Shares granted in fiscal 2020 | SARs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule Of Share-Based Compensation Activity) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Stockholders' Equity Note [Abstract] | ||
Total Intrinsic Value of Share-Based Incentive Awards Exercised | $ 5.7 | $ 5.1 |
Cash Received from Stock Option Exercises | 0.2 | 0 |
Income Tax Benefit from the Exercise of SARs | 0.4 | (0.1) |
Total Fair Value of Share-Based Incentive Awards Vested | $ 1.8 | $ 5.4 |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule Of Assumptions Used In Black-Scholes Valuation For Options and SAR's) (Details) - SARs - $ / shares | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Per share weighted average fair value of grants (in dollars per share) | $ 21.23 | $ 20.84 |
Risk-free interest rate | 1.50% | 2.40% |
Expected life (years) | 7 years | 7 years |
Expected volatility | 25.20% | 25.00% |
Expected dividend yield | 1.40% | 1.50% |
SHAREHOLDERS' EQUITY (Summary O
SHAREHOLDERS' EQUITY (Summary Of Share-Based Incentive Plan Grant Activity For Options and SAR's) (Details) - SARs - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 26, 2020 | Dec. 28, 2019 | |
Shares | ||
Outstanding (in shares) | 817,790 | |
Granted (in shares) | 181,177 | |
Exercised (in shares) | (299,816) | |
Forfeited (in shares) | (92,352) | |
Expired (in shares) | (3,308) | |
Outstanding (in shares) | 603,491 | 817,790 |
Exercisable (in shares) | 197,612 | |
Weighted Average Exercise Price | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 73.34 | |
Granted, weighted average exercise price (in dollars per share) | 88.25 | |
Exercised, weighted average exercise price (in dollars per share) | 69.29 | |
Forfeited, weighted average exercise price (in dollars per share) | 76.99 | |
Expired, weighted average exercise price (in dollars per share) | 67.38 | |
Outstanding, weighted average exercise price (in dollars per share) | 79 | $ 73.34 |
Exercisable, weighted average exercise price (in dollars per share) | $ 70.73 | |
Outstanding, weighted average remaining contractual term | 4 years 6 months | 6 years |
Exercisable, weighted average remaining contractual term | 4 years 6 months | |
Outstanding, aggregate intrinsic value | $ 5.7 | $ 9.9 |
Exercisable, aggregate intrinsic value | $ 4.4 |
SHAREHOLDERS' EQUITY (Summary_2
SHAREHOLDERS' EQUITY (Summary Of RSA Award Activity) (Details) - Restricted Stock Awards (RSAs) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 26, 2020 | Dec. 28, 2019 | |
Shares | ||
Unvested (in shares) | 15,571 | |
Granted (in shares) | 16,280 | |
Vested (in shares) | (15,148) | |
Unvested (in shares) | 16,703 | 15,571 |
Weighted Average Fair Value at Grant Date | ||
Unvested, weighted average fair value at grant date (in dollars per share) | $ 80.41 | |
Granted, weighted average fair value at grant date (in dollars per share) | 70.05 | |
Vested, weighted average fair value at grant date (in dollars per share) | 80.29 | |
Unvested, weighted average fair value at grant date (in dollars per share) | $ 70.42 | $ 80.41 |
Unvested, weighted average remaining contractual term | 7 months 6 days | 4 months 24 days |
SHAREHOLDERS' EQUITY (Summary_3
SHAREHOLDERS' EQUITY (Summary Of RSU Award Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 26, 2020 | Dec. 28, 2019 | |
Shares | ||
Unvested (in shares) | 175,025 | |
Granted (in shares) | 66,815 | |
Vested (in shares) | (49,259) | |
Forfeited (in shares) | (27,288) | |
Unvested (in shares) | 165,293 | 175,025 |
Weighted Average Fair Value at Grant Date | ||
Unvested, weighted average fair value at grant date (in dollars per share) | $ 78.19 | |
Granted, weighted average fair value at grant date (in dollars per share) | 85.68 | |
Vested, weighted average fair value at grant date (in dollars per share) | 80.20 | |
Forfeited, weighted average fair value at grant date (in dollars per share) | 78.11 | |
Unvested, weighted average fair value at grant date (in dollars per share) | $ 80.63 | $ 78.19 |
Unvested, weighted average remaining contractual term | 1 year 10 months 24 days | 1 year 10 months 24 days |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule Of Assumptions Used In Monte Carlo Simulation For Performance Share Units) (Details) - Performance Share Units (PSUs) | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.40% | 2.30% |
Expected life (years) | 3 years | 3 years |
Expected volatility | 24.00% | 25.00% |
Expected dividend yield | 1.40% | 1.50% |
SHAREHOLDERS' EQUITY (Summary_4
SHAREHOLDERS' EQUITY (Summary Of PSU Award Activity) (Details) - Performance Share Units (PSUs) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 26, 2020 | Dec. 28, 2019 | |
Shares | ||
Unvested (in shares) | 90,565 | |
Granted (in shares) | 42,677 | |
Vested (in shares) | (7,545) | |
Forfeited (in shares) | (30,987) | |
Unvested (in shares) | 94,710 | 90,565 |
Weighted Average Fair Value at Grant Date | ||
Unvested, weighted average fair value at grant date (in dollars per share) | $ 86.35 | |
Granted, weighted average fair value at grant date (in dollars per share) | 99.74 | |
Vested, weighted average fair value at grant date (in dollars per share) | 95.33 | |
Forfeited, weighted average fair value at grant date (in dollars per share) | 86.59 | |
Unvested, weighted average fair value at grant date (in dollars per share) | $ 91.59 | $ 86.35 |
Unvested, weighted average remaining contractual term | 2 years | 1 year 10 months 24 days |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 20.50% | 16.30% | 21.70% | 18.80% | |
Unrecognized tax benefits | $ 6.9 | $ 6.9 | $ 6.9 | ||
Accrued interest | $ 2.7 | $ 2.7 | $ 2.3 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from the calculation of the effect of dilutive securities (in shares) | 0.3 | 0.5 | 0.4 | 0.4 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Denominator for Basic Earnings Per Share (in shares) | 40.6 | 41.5 | 40.6 | 42.3 |
Effect of Dilutive Securities (in shares) | 0.2 | 0.2 | 0.1 | 0.3 |
Denominator for Diluted Earnings Per Share (in shares) | 40.8 | 41.7 | 40.7 | 42.6 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Sep. 26, 2020USD ($)subsidiary | Sep. 28, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of subsidiaries involved in litigation | subsidiary | 1 | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning Balance | $ 15.7 | $ 16.4 | $ 15.1 | $ 14.8 |
Less: Payments | (3.7) | (4.3) | (10.6) | (9) |
Provisions | 4.4 | 4.4 | 11.9 | 11.1 |
Held for Sale | 0 | 0 | 0 | (0.4) |
Ending Balance | $ 16.4 | $ 16.5 | $ 16.4 | $ 16.5 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 26, 2020USD ($)derivative_instrument | Dec. 28, 2019USD ($) | |
Derivative [Line Items] | ||
Derivative gains, net of tax | $ (500,000) | $ 1,300,000 |
Net AOCI hedging component | 1,500,000 | |
Net current deferred losses expected to be realized in the next twelve months | 4,000,000 | |
Receive-variable/pay-fixed interest rate swap | ||
Derivative [Line Items] | ||
Notional amount of instrument | 88,400,000 | |
Foreign currency swap | ||
Derivative [Line Items] | ||
Notional amount of instrument | $ 250,000,000 | |
Number of derivative instruments | derivative_instrument | 2 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Notional Amounts Of Forward Contracts) (Details) $ in Millions | Sep. 26, 2020USD ($) |
Currency Contracts | Chinese Renminbi | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | $ 55.6 |
Currency Contracts | Mexican Peso | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | 110.8 |
Currency Contracts | Euro | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | 148.6 |
Currency Contracts | Indian Rupee | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | 32.2 |
Currency Contracts | Canadian Dollar | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | 2.4 |
Currency Contracts | Australian Dollar | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | 16.7 |
Currency Contracts | British Pound | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | 17.9 |
Currency Contracts | Thai Baht | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | 6.2 |
Commodity Contracts | Copper | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | 38.9 |
Commodity Contracts | Aluminum | |
Derivative [Line Items] | |
Notional Amount (in US Dollars) | $ 3.2 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Fair Values Of Derivative Instruments) (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Derivative asset | $ 16.6 | $ 11.5 |
Prepaid Expenses and Other Current Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 9.8 | 8.9 |
Prepaid Expenses and Other Current Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 6.8 | 2.6 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative asset | 1 | 10.4 |
Other Noncurrent Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 1 | 10.3 |
Other Noncurrent Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 0.1 | |
Current Hedging Obligations | ||
Derivative [Line Items] | ||
Derivative liability | 8 | 3.4 |
Current Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 6.8 | 3.1 |
Current Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 0.3 | |
Noncurrent Hedging Obligations | ||
Derivative [Line Items] | ||
Derivative liability | 2.3 | 1.2 |
Noncurrent Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 0.3 | 0.2 |
Designated as Hedging Instruments: | Prepaid Expenses and Other Current Assets | Interest Rate Swap Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 0 |
Designated as Hedging Instruments: | Prepaid Expenses and Other Current Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 9.7 | 8.8 |
Designated as Hedging Instruments: | Prepaid Expenses and Other Current Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 6.8 | 2.6 |
Designated as Hedging Instruments: | Other Noncurrent Assets | Interest Rate Swap Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 0 |
Designated as Hedging Instruments: | Other Noncurrent Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 1 | 10.3 |
Designated as Hedging Instruments: | Other Noncurrent Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 0.1 |
Designated as Hedging Instruments: | Current Hedging Obligations | Interest Rate Swap Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 1.2 | 0 |
Designated as Hedging Instruments: | Current Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 6.8 | 3 |
Designated as Hedging Instruments: | Current Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 0 | 0.2 |
Designated as Hedging Instruments: | Noncurrent Hedging Obligations | Interest Rate Swap Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 2 | 1 |
Designated as Hedging Instruments: | Noncurrent Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 0.3 | 0.2 |
Designated as Hedging Instruments: | Noncurrent Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 0 | 0 |
Not Designated as Hedging Instruments: | Prepaid Expenses and Other Current Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 0.1 | 0.1 |
Not Designated as Hedging Instruments: | Prepaid Expenses and Other Current Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative asset | 0 | |
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 | |
Not Designated as Hedging Instruments: | Current Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 0 | 0.1 |
Not Designated as Hedging Instruments: | Current Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative liability | 0.1 | |
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 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Cash Flow Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Derivative [Line Items] | |||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ (0.5) | $ 1.3 | |||
Cash Flow Hedging | Designated as Hedging Instruments: | |||||
Derivative [Line Items] | |||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ 7.9 | $ (6.5) | (16.2) | $ 5.8 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Net sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0.1 | 0 | 0.3 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Cost of Sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | (5.3) | 0.2 | (4.5) | (1.6) | |
Cash Flow Hedging | Designated as Hedging Instruments: | Operating expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | (3.1) | 3.2 | (4) | 3.6 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0.2 | 0.7 | 0.8 | 1.9 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Commodity Forwards | |||||
Derivative [Line Items] | |||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 5.8 | (3.9) | 5.1 | (3.3) | |
Cash Flow Hedging | Designated as Hedging Instruments: | Commodity Forwards | Net sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Commodity Forwards | Cost of Sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | (0.4) | (1.8) | (2.4) | (5.4) | |
Cash Flow Hedging | Designated as Hedging Instruments: | Commodity Forwards | Operating expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Commodity Forwards | Interest expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Currency Forwards | |||||
Derivative [Line Items] | |||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 2.4 | (3.2) | (19.9) | 8.5 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Currency Forwards | Net sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0.1 | 0 | 0.3 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Currency Forwards | Cost of Sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | (4.9) | 2 | (2.1) | 3.8 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Currency Forwards | Operating expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | (3.1) | 3.2 | (4) | 3.6 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Currency Forwards | Interest expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Rate Swaps | |||||
Derivative [Line Items] | |||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | (0.3) | 0.6 | (1.4) | 0.6 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Rate Swaps | Net sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Rate Swaps | Cost of Sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Rate Swaps | Operating expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Rate Swaps | Interest expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0.2 | 0.7 | 0.8 | 1.9 | |
Cash Flow Hedging | Not Designated as Hedging Instruments: | Commodity Forwards | Cost of Sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0.1 | 0 | 0.1 | 0.1 | |
Cash Flow Hedging | Not Designated as Hedging Instruments: | Commodity Forwards | Operating expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Not Designated as Hedging Instruments: | Currency Forwards | Cost of Sales | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | 0 | 0 | 0 | ||
Cash Flow Hedging | Not Designated as Hedging Instruments: | Currency Forwards | Operating expense | |||||
Derivative [Line Items] | |||||
Amounts Reclassified from Other Comprehensive Income (Loss): | $ (2.4) | $ 0.6 | $ (3.7) | $ 0.1 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Derivatives Under Enforceable Master Netting Agreements) (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | $ 16.6 | $ 11.5 |
Prepaid Expenses and Other Current Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 9.8 | 8.9 |
Derivative Asset, Derivative Contract Amounts Subject to Right of Offset | (3.5) | (2.5) |
Derivative Asset, Derivative Contracts as Presented on a Net Basis | 6.3 | 6.4 |
Prepaid Expenses and Other Current Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 6.8 | 2.6 |
Derivative Asset, Derivative Contract Amounts Subject to Right of Offset | 0 | (0.3) |
Derivative Asset, Derivative Contracts as Presented on a Net Basis | 6.8 | 2.3 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 1 | 10.4 |
Other Noncurrent Assets | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 1 | 10.3 |
Derivative Asset, Derivative Contract Amounts Subject to Right of Offset | (0.1) | (0.1) |
Derivative Asset, Derivative Contracts as Presented on a Net Basis | 0.9 | 10.2 |
Other Noncurrent Assets | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 0.1 | |
Derivative Asset, Derivative Contract Amounts Subject to Right of Offset | 0 | |
Derivative Asset, Derivative Contracts as Presented on a Net Basis | 0.1 | |
Current Hedging Obligations | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 8 | 3.4 |
Current Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 6.8 | 3.1 |
Derivative Liability, Derivative Contract Amounts Subject to Right of Offset | (3.5) | (2.5) |
Derivative Liability, Derivative Contracts as Presented on a Net Basis | 3.3 | 0.6 |
Current Hedging Obligations | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 0.3 | |
Derivative Liability, Derivative Contract Amounts Subject to Right of Offset | (0.3) | |
Derivative Liability, Derivative Contracts as Presented on a Net Basis | 0 | |
Noncurrent Hedging Obligations | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 2.3 | 1.2 |
Noncurrent Hedging Obligations | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts as Presented in the Condensed Consolidated Balance Sheet | 0.3 | 0.2 |
Derivative Liability, Derivative Contract Amounts Subject to Right of Offset | (0.1) | (0.1) |
Derivative Liability, Derivative Contracts as Presented on a Net Basis | $ 0.2 | $ 0.1 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Prepaid Expenses and Other Current Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | $ 16.6 | $ 11.5 |
Prepaid Expenses and Other Current Assets | Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 9.8 | 8.9 |
Prepaid Expenses and Other Current Assets | Derivative Commodity Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 6.8 | 2.6 |
Other Noncurrent Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 1 | 10.4 |
Other Noncurrent Assets | Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 1 | 10.3 |
Other Noncurrent Assets | Derivative Commodity Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0.1 |
Other Noncurrent Assets | Assets Held in Rabbi Trust | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 6.2 | 6.1 |
Current Hedging Obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 8 | 3.4 |
Current Hedging Obligations | Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 6.8 | 3.1 |
Current Hedging Obligations | Derivative Commodity Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0 | 0.3 |
Current Hedging Obligations | Interest Rate Swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 1.2 | 0 |
Noncurrent Hedging Obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 2.3 | 1.2 |
Noncurrent Hedging Obligations | Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.3 | 0.2 |
Noncurrent Hedging Obligations | Interest Rate Swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | $ 2 | $ 1 |
RESTRUCTURING ACTIVITIES (Sched
RESTRUCTURING ACTIVITIES (Schedule Of Restructuring Reserve) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 2.9 | $ 0.7 | $ 0.9 | $ 0.2 |
Provision | 5.8 | 7.3 | 18.7 | 13.2 |
Less: Payments | 7.7 | 8 | 18.6 | 13.4 |
Ending Balance | $ 1 | $ 0 | $ 1 | $ 0 |
RESTRUCTURING ACTIVITIES (Recon
RESTRUCTURING ACTIVITIES (Reconciliation Of Expenses By Type) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 5.8 | $ 7.3 | $ 18.7 | $ 13.2 |
Total restructuring and restructuring-related costs | 5.8 | 7.3 | 18.7 | 13.2 |
Commercial Systems | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and restructuring-related costs | 0.7 | 2.5 | 4.8 | 4.8 |
Industrial Systems | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and restructuring-related costs | 2.3 | 3.1 | 5.2 | 5.5 |
Climate Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and restructuring-related costs | 0.8 | 0.8 | 3.2 | 1.5 |
Power Transmission Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and restructuring-related costs | 2 | 0.9 | 5.5 | 1.4 |
Employee Termination Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 2 | 4.9 | 7.9 | 6.8 |
Facility Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 4.1 | 2.4 | 10.8 | 6.4 |
Other Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | (0.3) | 0 | 0 | 0 |
Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 4 | 4.4 | 13.1 | 6.1 |
Cost of Sales | Employee Termination Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 1.5 | 2.5 | 4.4 | 2.9 |
Cost of Sales | Facility Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 2.5 | 1.9 | 8.4 | 3.2 |
Cost of Sales | Other Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 0 | 0 | 0.3 | 0 |
Operating Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 1.8 | 2.9 | 5.6 | 7.1 |
Operating Expenses | Employee Termination Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 0.5 | 2.4 | 3.5 | 3.9 |
Operating Expenses | Facility Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 1.6 | 0.5 | 2.4 | 3.2 |
Operating Expenses | Other Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ (0.3) | $ 0 | $ (0.3) | $ 0 |
RESTRUCTURING ACTIVITIES (Narra
RESTRUCTURING ACTIVITIES (Narrative) (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 26, 2020 |
Restructuring Cost and Reserve [Line Items] | ||
Expected future restructuring charges | $ 8.9 | |
Forecast | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected future restructuring charges | $ 25 | |
Employee Termination Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected future restructuring charges | 3.2 | |
Facility and other related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected future restructuring charges | $ 5.7 |