Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 13, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AOS | ||
Entity Registrant Name | SMITH A O CORP | ||
Entity Central Index Key | 91,142 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 26,180,295 | ||
Entity Public Float | $ 47,734,692 | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 147,065,441 | ||
Entity Public Float | $ 6,369,599,814 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 330.4 | $ 323.6 |
Marketable securities | 424.2 | 321.6 |
Receivables | 518.7 | 501.4 |
Inventories | 251.1 | 222.9 |
Other current assets | 37.6 | 33.8 |
Total Current Assets | 1,562 | 1,403.3 |
Net property, plant and equipment | 461.9 | 442.7 |
Goodwill | 491.5 | 420.9 |
Other intangibles | 308.3 | 291 |
Other assets | 67.3 | 71.3 |
Total Assets | 2,891 | 2,629.2 |
Liabilities | ||
Trade payables | 528.6 | 424.9 |
Accrued payroll and benefits | 84.3 | 81.5 |
Accrued liabilities | 101 | 90.2 |
Product warranties | 44.5 | 43.7 |
Long-term debt due within one year | 7.2 | 12.9 |
Total Current Liabilities | 765.6 | 653.2 |
Long-term debt | 316.4 | 236.1 |
Product warranties | 96.4 | 95.6 |
Pension liabilities | 109 | 134.2 |
Other liabilities | 88.3 | 67.8 |
Total Liabilities | 1,375.7 | 1,186.9 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred Stock | ||
Common Stock Value | 164.4 | 164.4 |
Capital in excess of par value | 477.6 | 469.3 |
Retained earnings | 1,593 | 1,350.7 |
Accumulated other comprehensive loss | (363.2) | (313.4) |
Treasury stock at cost | (488.1) | (360.5) |
Total Stockholders' Equity | 1,515.3 | 1,442.3 |
Total Liabilities and Stockholders' Equity | 2,891 | 2,629.2 |
Common Class A | ||
Stockholders' Equity | ||
Common Stock Value | 131.6 | 131.8 |
Total Stockholders' Equity | $ 131.6 | $ 131.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common Stock, shares issued | 164,394,241 | 164,334,196 |
Common Class A | ||
Common Stock, shares issued | 26,313,351 | 26,373,396 |
CONSOLIDATED STATEMENT OF EARNI
CONSOLIDATED STATEMENT OF EARNINGS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Continuing Operations | |||
Net sales | $ 2,685.9 | $ 2,536.5 | $ 2,356 |
Cost of products sold | 1,566.6 | 1,526.7 | 1,496.7 |
Gross profit | 1,119.3 | 1,009.8 | 859.3 |
Selling, general and administrative expenses | 658.9 | 610.7 | 572.1 |
Interest expense | 7.3 | 7.4 | 5.7 |
Other income - net | (9.4) | (10.8) | (5.2) |
Earnings before income taxes | 462.5 | 402.5 | 286.7 |
Provision for income taxes | 136 | 119.6 | 78.9 |
Net Earnings | $ 326.5 | $ 282.9 | $ 207.8 |
Net Earnings Per Share of Common Stock | $ 1.87 | $ 1.59 | $ 1.15 |
Diluted Net Earnings Per Share of Common Stock | $ 1.85 | $ 1.58 | $ 1.14 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net earnings | $ 326.5 | $ 282.9 | $ 207.8 |
Other comprehensive (loss) earnings | |||
Foreign currency translation adjustments | (39.8) | (42.7) | (16.6) |
Unrealized net (loss) gain on cash flow derivative instruments, less related income tax benefit (provision) of $0.6 in 2016, $(0.2) in 2015 and $0.1 in 2014 | (1) | 0.3 | (0.1) |
Change in pension liability less related income tax benefit (provision) of $5.7 in 2016, $(0.5) in 2015 and $(1.0) in 2014 | (9) | 1 | 3.8 |
Comprehensive Earnings | $ 276.7 | $ 241.5 | $ 194.9 |
CONSOLIDATED STATEMENT OF COMP6
CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unrealized net (loss) gain on cash flow derivative instruments, related income tax benefit (provision) | $ 0.6 | $ (0.2) | $ 0.1 |
Change in pension liability, related income tax benefit (provision) | $ 5.7 | $ (0.5) | $ (1) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | |||
Net earnings | $ 326.5 | $ 282.9 | $ 207.8 |
Adjustments to reconcile earnings from continuing operations to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 65.1 | 63 | 59.8 |
Pension (income) expense | (6.9) | 0.1 | 28.6 |
Stock based compensation expense | 9.4 | 8.8 | 10.8 |
Net changes in operating assets and liabilities, net of acquisitions: | |||
Current assets and liabilities | 68.8 | 16.8 | (37.6) |
Noncurrent assets and liabilities | (15.1) | (18.7) | (3.6) |
Cash Provided by Operating Activities - continuing operations | 447.8 | 352.9 | 265.8 |
Cash Used in Operating Activities - discontinued operations | (1.2) | (1.2) | (1.8) |
Cash Provided by Operating Activities | 446.6 | 351.7 | 264 |
Investing Activities | |||
Acquisitions of businesses | (90.8) | ||
Investments in marketable securities | (563.8) | (428.8) | (321.9) |
Proceeds from sales of marketable securities | 435.1 | 315.4 | 202 |
Capital expenditures | (80.7) | (72.7) | (86.1) |
Cash Used in Investing Activities | (300.2) | (186.1) | (206) |
Financing Activities | |||
Long-term term debt incurred (repaid) | 31.8 | 61.7 | (13.9) |
Long-term debt incurred (repaid) | 42.3 | (33.6) | 48.1 |
Common stock repurchases | (135.2) | (128.1) | (103.8) |
Net proceeds from stock option activity | 5.7 | 6.4 | 4.7 |
Dividends paid | (84.2) | (67.8) | (54.4) |
Cash Used in Financing Activities | (139.6) | (161.4) | (119.3) |
Net increase (decrease) in cash and cash equivalents | 6.8 | 4.2 | (61.3) |
Cash and cash equivalents-beginning of year | 323.6 | 319.4 | 380.7 |
Cash and Cash Equivalents-End of Year | $ 330.4 | $ 323.6 | $ 319.4 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Class A | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance at Dec. 31, 2013 | $ 132.8 | $ 164.2 | $ 441.2 | $ 982.2 | $ (259.1) | $ (132.6) | |
Conversion of Class A Common Stock | (0.6) | 0.6 | |||||
Foreign currency translation adjustments | $ (16.6) | (16.6) | |||||
Net earnings | 207.8 | 207.8 | |||||
Issuance of share units | (5.1) | ||||||
Unrealized net (loss) gain on cash flow derivative instruments, less related income tax benefit (provision) of $0.6 in 2016, $(0.2) in 2015 and $0.1 in 2014 | (0.1) | (0.1) | |||||
Cash dividends on stock | (54.5) | ||||||
Vesting of share units | (3.1) | 3.1 | |||||
Change in pension liability less related income tax benefit (provision) of $5.7 in 2016, $(0.5) in 2015 and $(1.0) in 2014 | 3.8 | 3.8 | |||||
Stock based compensation expense | 10.3 | ||||||
Exercise of stock options | (0.3) | 2.6 | |||||
Tax benefit from exercises of stock options and vesting of share units | 2.4 | ||||||
Stock incentives and directors' compensation | 5.9 | 0.2 | |||||
Shares repurchased | (103.8) | (103.8) | |||||
Balance at Dec. 31, 2014 | 1,381.3 | 132.2 | 164.2 | 451.9 | 1,135.5 | (272) | (230.5) |
Conversion of Class A Common Stock | (0.4) | 0.2 | 0.2 | ||||
Foreign currency translation adjustments | (42.7) | (42.7) | |||||
Net earnings | 282.9 | 282.9 | |||||
Issuance of share units | (4.2) | ||||||
Unrealized net (loss) gain on cash flow derivative instruments, less related income tax benefit (provision) of $0.6 in 2016, $(0.2) in 2015 and $0.1 in 2014 | 0.3 | 0.3 | |||||
Cash dividends on stock | (67.7) | ||||||
Vesting of share units | (3.2) | 3.2 | |||||
Change in pension liability less related income tax benefit (provision) of $5.7 in 2016, $(0.5) in 2015 and $(1.0) in 2014 | 1 | 1 | |||||
Stock based compensation expense | 8.1 | ||||||
Exercise of stock options | 1.1 | (5.2) | |||||
Tax benefit from exercises of stock options and vesting of share units | 10.4 | ||||||
Stock incentives and directors' compensation | 5 | 0.1 | |||||
Shares repurchased | (128.1) | (128.1) | |||||
Balance at Dec. 31, 2015 | 1,442.3 | 131.8 | 164.4 | 469.3 | 1,350.7 | (313.4) | (360.5) |
Conversion of Class A Common Stock | (0.2) | 0.2 | |||||
Foreign currency translation adjustments | (39.8) | (39.8) | |||||
Net earnings | 326.5 | 326.5 | |||||
Issuance of share units | (4.6) | ||||||
Unrealized net (loss) gain on cash flow derivative instruments, less related income tax benefit (provision) of $0.6 in 2016, $(0.2) in 2015 and $0.1 in 2014 | (1) | (1) | |||||
Cash dividends on stock | (84.2) | ||||||
Vesting of share units | (2) | 3.4 | |||||
Change in pension liability less related income tax benefit (provision) of $5.7 in 2016, $(0.5) in 2015 and $(1.0) in 2014 | (9) | (9) | |||||
Stock based compensation expense | 8.8 | ||||||
Exercise of stock options | 0.3 | 4 | |||||
Stock incentives and directors' compensation | 5.6 | 0.2 | |||||
Shares repurchased | (135.2) | (135.2) | |||||
Balance at Dec. 31, 2016 | $ 1,515.3 | $ 131.6 | $ 164.4 | $ 477.6 | $ 1,593 | $ (363.2) | $ (488.1) |
CONSOLIDATED STATEMENT OF STOC9
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unrealized net (loss) gain on cash flow derivative instruments, related income tax benefit (provision) | $ 0.6 | $ (0.2) | $ 0.1 |
Change in pension liability, related income tax benefit(provision) | 5.7 | (0.5) | (1) |
Accumulated Other Comprehensive Loss | |||
Unrealized net (loss) gain on cash flow derivative instruments, related income tax benefit (provision) | 0.6 | (0.2) | 0.1 |
Change in pension liability, related income tax benefit(provision) | $ 5.7 | $ (0.5) | $ (1) |
Treasury Stock | |||
Exercise of stock options, shares surrendered as proceeds and to pay taxes | 54,019 | 418,754 | 11,692 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Significant Accounting Policies | 1. Organization and Significant Accounting Policies Organization. non-condensing in-home Consolidation. Except when otherwise indicated, amounts reflected in the financial statements or the notes thereto relate to the Company’s continuing operations. On August 22, 2011, the Company sold its Electrical Products business (EPC). Due to the sale, EPC related items have been reflected as discontinued operations in the consolidated statement of cash flows for all periods presented. Use of estimates Fair value of financial instruments. Foreign currency translation. non-operating year-end non-operating Cash and cash equivalents Marketable securities Inventory valuation. last-in, first-out first-in, first-out Property, plant and equipment. straight-line Goodwill and other intangibles. Impairment of long-lived and amortizable intangible assets. Product warranties. The following table presents the Company’s product warranty liability activity in 2016 and 2015: Years ended December 31 (dollars in millions) 2016 2015 Balance at beginning of year $ 139.3 $ 136.2 Expense 43.2 50.3 Claims settled (41.6 ) (47.2 ) Balance at end of year $ 140.9 $ 139.3 Derivative instruments. Fair Value Measurements. ( Fair Value Measurements Assets and liabilities measured at fair value are based on the market approach which are prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Assets measured at fair value on a recurring basis are as follows (dollars in millions): Fair Value Measurement Using December 31, 2016 December 31, 2015 Quoted prices in active markets for identical assets (Level 1) $ 424.5 $ 323.9 Significant other observable inputs (Level 2) — (0.3 ) Total assets measured at fair value $ 424.5 $ 323.6 There were no changes in the valuation techniques used to measure fair values on a recurring basis. Revenue recognition. Contracts and customer purchase orders are used to determine the existence of a sales arrangement. Shipping documents are used to verify shipment. The Company assesses whether the selling price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. The Company assesses collectability based on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. The allowance for doubtful accounts was $6.3 million and $6.0 million at December 31, 2016 and 2015, respectively. Reserves for customer returns for defective product are based on historical experience with similar types of sales. Accruals for rebates and incentives are based on pricing agreements and are tied to sales volume. Changes in such accruals may be required if future returns differ from historical experience or if actual sales volume differs from estimated sales volume. Rebates and incentives are recognized as a reduction of sales. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold. Advertising. Research and development. Environmental costs. Stock-based compensation. Compensation – Stock Compensation Income taxes. Income Taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon settlement. Earnings per share of common stock. two-class 2016 2015 2014 Denominator for basic earnings per share - weighted-average shares outstanding 174,712,683 177,622,280 180,587,008 Effect of dilutive stock options, restricted stock and share units 2,112,597 1,386,900 1,386,954 Denominator for diluted earnings per share 176,825,280 179,009,180 181,973,962 On April 11, 2016, the Company’s stockholders approved a proposal to increase the Company’s authorized shares of Common Stock and on September 7, 2016, the Company’s Board of Directors declared a two-for-one Reclassifications. Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (FASB) amended ASC 740, Income Taxes 2016-16). In August 2016, the FASB amended ASC 230, Statement of Cash Flows 2016-15, 2016-15 In March 2016, the FASB amended ASC 718, Compensation - Stock Compensation 2016-09). The amendment also required that cash paid by an employer to a taxing authority when shares are directly withheld for employee income tax withholding purposes be classified as financing activities in the consolidated statement of cash flows. As required, the Company applied this guidance retrospectively in the presentation of the consolidated statement of cash flows for the period beginning January 1, 2014 and, as a result, reclassified $7.3 million and $0.1 million of cash used by operating activities to cash used by financing activities for the years ended December 31, 2015 and 2014, respectively. In February 2016, the FASB amended ASC 842, Leases 2016-02). 2016-02 In November 2015, the FASB amended ASC 740, Income Taxes 2015-17). 2015-17 non-current non-current In July 2015, the FASB amended ASC 330, Inventory 2015-11, first-in, first-out 2015-11 2015-11 In May 2014, the FASB issued ASC 606-10, Revenue from Contracts with Customers 2014-09). 606-10 606-10 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions | 2. Acquisitions On August 8, 2016, the Company acquired 100 percent of the shares of Aquasana, Inc. (Aquasana), a Texas-based water treatment company. With the addition of Aquasana, the Company entered the U.S. water treatment market. Aquasana is included in the Company’s North America segment for reporting purposes. The Company paid an aggregate cash purchase price of $85.1 million, net of $1.9 million of cash acquired. In addition, the Company incurred acquisition-related costs of approximately $1.2 million and recorded contingent consideration of $1.9 million, the fair value of the contingent payment due to the former owners of Aquasana if certain performance targets are met. The following table summarizes the preliminary allocation of fair value of the assets acquired and liabilities assumed at the date of acquisition. The Company is awaiting final valuations to support the acquired intangible assets as well as finalizing the accounting for acquired accrued liabilities. The $30.0 million of acquired intangible assets was comprised of $21.5 million of trade names that are not subject to amortization, $8.3 million of customer lists which will be amortized over ten years and $0.2 million of patents which will be amortized over five years. August 8, 2016 (dollars in millions) Current assets, net of cash acquired $ 7.3 Property, plant and equipment 2.7 Intangible assets 30.0 Goodwill 60.4 Total assets acquired 100.4 Current liabilities (7.1 ) Long-term liabilities (8.2 ) Total liabilities assumed (15.3 ) Net assets acquired $ 85.1 The acquisition was accounted for using the purchase method of accounting, and accordingly, the results of operations have been included in the Company’s financial statements from August 8, 2016, the date of acquisition. Revenues and pre-tax On August 26, 2016, the Company acquired certain assets, primarily inventory, and assumed a lease of a small electric water heater manufacturer serving the North America market. The Company paid $5.7 million for the assets. Under the purchase agreement, the Company agreed to make additional contingent payments for the acquired assets if certain conditions are met over the next ten years. As of December 31, 2016, the Company estimated the fair value of the contingent payments at $5.2 million and a liability for the contingent consideration was accrued. |
Statement of Cash Flows
Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2016 | |
Statement of Cash Flows | 3. Statement of Cash Flows Supplemental cash flow information is as follows: Years ended December 31 (dollars in millions) 2016 2015 2014 Net change in current assets and liabilities, net of acquisitions: Receivables $ (15.1 ) $ (25.9 ) $ (16.8 ) Inventories (23.4 ) (14.7 ) (14.9 ) Other current assets (3.2 ) (4.6 ) (7.7 ) Trade payables 101.5 31.0 6.9 Accrued liabilities, including payroll and benefits 6.3 19.8 2.6 Income taxes payable 2.7 11.2 (7.7 ) $ 68.8 $ 16.8 $ (37.6 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventories | 4. Inventories December 31 (dollars in millions) 2016 2015 Finished products $ 114.1 $ 85.7 Work in process 13.0 13.4 Raw materials 142.4 139.6 Inventories, at FIFO cost 269.5 238.7 LIFO reserve (18.4 ) (15.8 ) $ 251.1 $ 222.9 The Company recognized after-tax |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment | 5. Property, Plant and Equipment December 31 (dollars in millions) 2016 2015 Land $ 11.0 $ 10.8 Buildings 286.4 237.9 Equipment 533.7 530.9 Software 101.4 87.2 932.5 866.8 Less accumulated depreciation and amortization 470.6 424.1 $ 461.9 $ 442.7 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill during the years ended December 31, 2016 and 2015 consisted of the following: (dollars in millions) North America Rest of World Total Balance at December 31, 2014 $ 368.5 $ 60.3 $ 428.8 Currency translation adjustment (7.5 ) (0.4 ) (7.9 ) Balance at December 31, 2015 361.0 59.9 420.9 Acquisitions 70.0 — 70.0 Currency translation adjustment 1.2 (0.6 ) 0.6 Balance at December 31, 2016 $ 432.2 $ 59.3 $ 491.5 The carrying amount of other intangible assets consisted of the following: 2016 2015 December 31 (dollars in millions) Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Patents $ 3.7 $ (2.2 ) $ 1.5 $ 3.2 $ (1.9 ) $ 1.3 Customer lists 224.0 (80.3 ) 143.7 231.6 (83.1 ) 148.5 Total amortizable intangible assets 227.7 (82.5 ) 145.2 234.8 (85.0 ) 149.8 Indefinite-lived intangible assets: Trade names 163.1 — 163.1 141.2 — 141.2 Total intangible assets $ 390.8 $ (82.5 ) $ 308.3 $ 367.0 $ (85.0 ) $ 291.0 Amortization expenses of other intangible assets of $13.4 million, $14.2 million, and $14.3 million were recorded in 2016, 2015 and 2014, respectively. In the future, excluding the impact of any future acquisitions, the Company expects amortization expense of approximately $13.8 million annually and the intangible assets will be amortized over a weighted average period of 13 years. The Company concluded that no goodwill impairment existed at the time of the annual impairment tests which were performed in the fourth quarters of 2016, 2015 and 2014. No impairments of other intangible assets were recorded in 2016, 2015 and 2014. |
Debt and Lease Commitments
Debt and Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Debt and Lease Commitments | 7. Debt and Lease Commitments December 31 (dollars in millions) 2016 2015 Bank credit lines, average year-end $ 23.6 $ 10.2 Revolving credit agreement borrowings, average year-end 80.0 80.0 Commercial paper, average year-end 85.6 56.8 Term notes with insurance companies, expiring through 2034, average year-end 125.5 89.0 Canadian term notes with insurance companies, expiring through 2018, average year-end 8.9 13.0 323.6 249.0 Less long-term debt due within one year 7.2 12.9 Long-term debt $ 316.4 $ 236.1 In December 2016, the Company completed a $500 million multi-year multi-currency revolving credit agreement with a group of nine banks, which expires on December 15, 2021. The facility has an accordion provision which allows it to be increased up to $700 million if certain conditions (including lender approval) are satisfied. Borrowings under the Company’s bank credit lines and commercial paper borrowings are supported by the revolving credit agreement. As a result of the long-term nature of this facility, the commercial paper and credit line borrowings are classified as long-term debt at December 31, 2016 and 2015. At its option, the Company either maintains cash balances or pays fees for bank credit and services. On November 28, 2016, the Company issued $45 million in term notes in two tranches to two insurance companies. Principal payments commence in 2023 and the notes mature in 2029 and 2034. The notes have interest rates of 2.87 percent and 3.10 percent. Proceeds of the notes were used to pay down borrowings under the Company’s revolving credit facility. On January 15, 2015, the Company issued $75 million in term notes to an insurance company. Principle payments commence in 2020 and the notes mature in 2030. The notes have an interest rate of 3.52 percent. Proceeds of the notes were used to pay down borrowings under the Company’s revolving credit facility. Scheduled maturities of long-term Years ending December 31 (dollars in millions) Amount 2017 $ 7.2 2018 7.2 2019 — 2020 6.8 2021 196.1 Future minimum payments under non-cancelable Years ending December 31 (dollars in millions) Amount 2017 $ 19.5 2018 4.5 2019 3.4 2020 2.3 2021 1.9 Thereafter 5.8 Rent expense, including payments under operating leases, was $29.8 million, $28.8 million and $24.3 million in 2016, 2015 and 2014, respectively. Interest paid by the Company was $7.2 million, $6.4 million and $5.8 million in 2016, 2015 and 2014, respectively. The Company capitalized interest expense of $0.2 million, $0.2 million and $0.4 million in 2016, 2015 and 2014, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity | 8. Stockholders’ Equity The Company’s authorized capital consists of three million shares of Preferred Stock $1 par value, 27 million shares of Class A Common Stock $5 par value, and 240 million shares of Common Stock $1 par value. The Common Stock has equal dividend rights with Class A Common Stock and is entitled, as a class, to elect one-third There were 60,045 shares during 2016, 67,544 shares during 2015 and 136,092 shares during 2014, of Class A Common Stock converted into Common Stock. Regular dividends paid on the A. O. Smith Corporation Class A Common Stock and Common Stock amounted to $0.48, $0.38 and $0.30 per share in 2016, 2015 and 2014, respectively. The Company completed a two-for-one In 2014, the Company’s Board of Directors authorized the purchase of an additional 7,000,000 shares of the Company’s Common Stock. In 2015, the Company’s Board of Directors authorized the purchase of an additional 4,000,000 shares of the Company’s Common Stock. In 2016, the Company’s Board of Directors authorized the purchase of an additional 3,000,000 shares of the Company’s Common Stock. Under the share repurchase program, the Company’s Common Stock may be purchased through a combination of a Rule 10b5-1 10b5-1 At December 31, 2016, a total of 130,380 and 17,135,628 shares of Class A Common Stock and Common Stock, respectively, were held as treasury stock. At December 31, 2015, a total of 130,380 and 14,680,346 shares of Class A Common Stock and Common Stock, respectively, were held as treasury stock. Accumulated other comprehensive loss is as follows: December 31 (dollars in millions) 2016 2015 Cumulative foreign currency translation adjustments $ (79.2 ) $ (39.4 ) Unrealized net gain on cash flow derivative instruments less related income tax provision of $(0.1) in 2016 and $(0.8) in 2015 0.2 1.2 Pension liability less related income tax benefit of $183.4 in 2016 and $177.7 in 2015 (284.2 ) (275.2 ) $ (363.2 ) $ (313.4 ) Changes to accumulated other comprehensive loss by component are as follows: Year ended 2016 2015 Cumulative foreign currency translation Balance at beginning of period $ (39.4 ) $ 3.3 Other comprehensive loss before reclassifications (39.8 ) (42.7 ) Balance at end of period (79.2 ) (39.4 ) Unrealized net gain on cash flow derivatives Balance at beginning of period 1.2 0.9 Other comprehensive earnings before reclassifications (0.9 ) 3.7 Realized gains on derivatives reclassified to cost of products sold (net of tax provision of $0.1 and $2.3 in 2016 and 2015, respectively) (1) (0.1 ) (3.4 ) Balance at end of period 0.2 1.2 Pension liability Balance at beginning of period (275.2 ) (276.2 ) Other comprehensive loss before reclassifications (18.8 ) (9.6 ) Amounts reclassified from accumulated other comprehensive loss (1) 9.8 10.6 Balance at end of period (284.2 ) (275.2 ) Total accumulated other comprehensive loss, end of period $ (363.2 ) $ (313.4 ) (1) Realized gains on derivatives reclassified to cost of products sold (0.2 ) (5.7 ) Tax provision 0.1 2.3 Reclassification net of tax $ (0.1 ) $ (3.4 ) Amortization of pension items: Actuarial losses $ 17.5 (2) $ 19.0 (2) Prior year service cost (1.5 ) (2) (1.4 ) (2) 16.0 17.6 Tax benefit (6.2 ) (7.0 ) Reclassification net of tax $ 9.8 $ 10.6 (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 10 - Pensions and Other Post-retirement Benefits for additional details |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock Based Compensation | 9. Stock Based Compensation The Company adopted the A. O. Smith Combined Incentive Compensation Plan (the “Plan”) effective January 1, 2007. The Plan was reapproved by stockholders on April 16, 2012. The Plan is a continuation of the A. O. Smith Combined Executive Incentive Compensation Plan which was originally approved by shareholders in 2002. The number of shares available for granting of options or share units at December 31, 2016, was 3,275,459. Upon stock option exercise or share unit vesting, shares are issued from treasury stock. Total stock based compensation expense recognized in 2016, 2015 and 2014 was $9.4 million, $8.8 million and $10.8 million, respectively. Stock options The stock options granted in 2016, 2015 and 2014 have three year pro rata vesting from the dates of grant. Stock options are issued at exercise prices equal to the fair value of Common Stock on the date of grant. For active employees, all options granted in 2016, 2015 and 2014 expire ten years after date of grant. Stock option compensation recognized in 2016, 2015 and 2014 was $4.5 million, $4.0 million and $4.9 million, respectively. Included in the stock option expense recognized in 2016, 2015 and 2014 is expense associated with the accelerated vesting of stock option awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period. Changes in option shares, all of which are Common Stock, were as follows: Weighted-Avg. (dollars in millions) Years Ended December 31 2016 2015 2014 Outstanding at beginning of year $ 18.03 2,653,558 3,154,006 2,881,246 Granted 2016—$31.49 to $46.93 per share 553,370 2015—$23.24 to $25.34 per share 484,990 2014—$17.46 to $26.47 per share 597,500 Exercised 2016—$4.75 to $30.77 per share (531,933 ) $ 7.5 2015—$4.10 to $17.46 per share (978,208 ) 10.2 2014—$4.10 to $11.50 per share (316,502 ) 2.6 Forfeited 2016—$23.24 to $46.93 per share (10,662 ) 2015—$17.46 to $23.24 per share (7,230 ) 2014—$11.50 to $17.46 per share (8,238 ) Outstanding at end of year (2016—$4.75 to $46.93 per share) 21.69 2,664,333 2,653,558 3,154,006 Exercisable at end of year 16.12 1,602,651 1,544,186 1,865,278 The aggregate intrinsic value for the outstanding and exercisable options as of December 31, 2016 is $68.5 million and $50.1 million, respectively. The average remaining contractual life for outstanding and exercisable options is seven years and six years, respectively. The following table summarizes weighted-average information by range of exercise prices for stock options outstanding and exercisable at December 31, 2016: Range of Exercise Prices Options Weighted- Options Weighted- Weighted- $ 4.75 to $11.50 683,434 $ 8.31 683,434 $ 8.31 4 years $17.46 to $25.34 954,074 20.76 759,014 20.12 7 years $26.47 to $46.93 1,026,825 31.36 160,203 30.52 9 years 2,664,333 1,602,651 The weighted-average fair value per option at the date of grant during 2016, 2015 and 2014, using the Black-Scholes option-pricing model, was $8.03, $8.59 and $8.28, respectively. Assumptions were as follows: 2016 2015 2014 Expected life (years) 5.8 5.9 6.0 Risk-free interest rate 1.7 % 2.0 % 2.7 % Dividend yield 1.3 % 1.0 % 1.1 % Expected volatility 27.7 % 29.3 % 36.6 % The expected life of options for purposes of these models is based on historical exercise behaviors. The risk free interest rates for purposes of these models are based on the U.S. Treasury yield curve in effect on the date of grant for the respective expected lives of the option. The expected dividend yields for purposes of these models are based on the dividends paid on Common Stock. The expected volatility for purposes of these models is based on the historical volatility of the Common Stock. Stock Appreciations Rights (SARs) Certain non-U.S.-based Restricted stock and share units Participants may also be awarded shares of restricted stock or share units under the Plan. The Company granted 160,465, 152,192 and 221,382 share units under the plan in 2016, 2015 and 2014, respectively. The share units were valued at $5.2 million, $4.7 million and $5.1 million at the date of issuance in 2016, 2015 and 2014, respectively, and will be recognized as compensation expense ratably over the three-year vesting period; however, included in share based compensation is expense associated with the accelerated vesting of share unit awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period. Compensation expense of $4.9 million, $4.8 million and $5.9 million was recognized in 2016, 2015 and 2014, respectively. Certain non-U.S.-based A summary of share unit activity under the plan is as follows: Number of Units Weighted-Average Outstanding at January 1, 2016 658,326 $ 22.15 Granted 160,465 32.21 Vested (268,306 ) 17.39 Forfeited/cancelled (6,430 ) 31.81 Outstanding at December 31, 2016 544,055 27.35 Total compensation expense for share units not yet recognized is $2.3 million at December 31, 2016. The weighted average period over which the expense is expected to be recognized is 14 months. |
Pension and Other Post-retireme
Pension and Other Post-retirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Pension and Other Post-retirement Benefits | 10. Pension and Other Post-retirement Benefits The Company provides retirement benefits for all U.S. employees including benefits for employees of previously owned businesses which were earned up to the date of sale. The Company also has two foreign pension plans, neither of which is material to the Company’s financial position. The Company has a defined contribution plan which matches 100 percent of the first one percent of contributions made by participating employees and matches 50 percent of the next five percent of employee contributions. The Company also has defined contribution plans for certain hourly employees which provide for matching Company contributions. The Company also has a defined benefit plan for salaried employees and its non-union The Company has unfunded defined-benefit post-retirement plans covering certain hourly and salaried employees that provide medical and life insurance benefits from retirement to age 65. Certain hourly employees retiring after January 1, 1996, are subject to a maximum annual benefit and salaried employees hired after December 31, 1993, are not eligible for post-retirement medical benefits. As of December 31, 2015, the Company changed the method used to estimate the service and interest components of net periodic benefit cost for its pension plan and its post-retirement benefit plan. This change compared to the previous method resulted in a $7.1 million decrease in the service and interest components for pension cost in 2016. Historically, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. The Company has elected to utilize an approach that discounts the individual expected cash flows underlying the service cost and interest cost using the applicable spot rates derived from the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. This change was made to provide a more precise measurement of service and interest costs by improving the correlation between the projected benefit cash flows to the corresponding spot yield curve rates. This change did not affect the measurement of the total benefit obligations but reduced the service and interest cost for the pension plan. The Company accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and accordingly accounted for it prospectively beginning January 1, 2016. Obligations and Funded Status Pension and Post-Retirement Disclosure Information under ASC 715 The following tables present the changes in benefit obligations, plan assets and funded status for domestic pension and post-retirement plans and the components of net periodic benefit costs. Pension Benefits Post-retirement Benefits Years ended December 31 (dollars in millions) 2016 2015 2016 2015 Accumulated benefit obligation (ABO) at December 31 $ 894.3 $ 889.4 N/A N/A Change in projected benefit obligations (PBO) PBO at beginning of year $ (892.9 ) $ (956.7 ) $ (6.6 ) $ (10.4 ) Service cost (1.8 ) (1.9 ) (0.1 ) (0.1 ) Interest cost (30.6 ) (37.6 ) (0.2 ) (0.3 ) Participant contributions — — — (0.2 ) Plan amendments (0.7 ) (2.5 ) — 3.7 Actuarial (loss) gain including assumption changes (31.0 ) 45.6 (0.2 ) — Benefits paid 61.2 60.2 0.5 0.7 PBO at end of year $ (895.8 ) $ (892.9 ) $ (6.6 ) $ (6.6 ) Change in fair value of plan assets Plan assets at beginning of year $ 759.0 $ 823.9 $ — $ — Actual return on plan assets 57.0 (5.3 ) — — Contribution by the company 32.2 0.5 0.5 0.5 Participant contributions — — — 0.2 Benefits paid (61.2 ) (60.1 ) (0.5 ) (0.7 ) Plan assets at end of year $ 787.0 $ 759.0 $ — $ — Funded status $ (108.8 ) $ (133.9 ) $ (6.6 ) $ (6.6 ) Amount recognized in the balance sheet Current liabilities $ (0.5 ) $ (1.8 ) $ (0.4 ) $ (0.4 ) Non-current (108.3 ) (132.1 ) (6.2 ) (6.2 ) Net pension liability at end of year $ (108.8 )* $ (133.9 )* $ (6.6 ) $ (6.6 ) Amounts recognized in accumulated other comprehensive loss before tax Net actuarial loss (gain) $ 473.5 $ 461.3 $ (2.0 ) $ (2.4 ) Prior service cost (0.9 ) (2.6 ) (2.9 ) (3.3 ) Total recognized in accumulated other comprehensive loss $ 472.6 $ 458.7 $ (4.9 ) $ (5.7 ) * In addition, the Company has a liability for a foreign pension plan of $0.2 million and $0.3 million at December 31, 2016 and 2015, respectively. Pension Benefits Post-retirement Benefits Years ended December 31 (dollars in millions) 2016 2015 2014 2016 2015 2014 Net periodic benefit cost Service cost $ 1.8 $ 1.9 $ 7.9 $ 0.1 $ 0.1 $ 0.1 Interest cost 30.6 37.6 44.7 0.2 0.3 0.5 Expected return on plan assets (55.9 ) (57.5 ) (60.3 ) — — — Amortization of unrecognized: Net actuarial loss (gain) 17.7 19.1 35.1 (0.2 ) (0.1 ) (0.4 ) Prior service cost (1.1 ) (1.0 ) (1.0 ) (0.4 ) (0.4 ) — Curtailment and other one-time — — 2.2 — — — Defined-benefit plan (income) cost (6.9 ) 0.1 28.6 $ (0.3 ) $ (0.1 ) $ 0.2 Various U.S. defined contribution plans cost 11.6 10.8 6.1 $ 4.7 $ 10.9 $ 34.7 Other changes in plan assets and projected benefit obligation recognized in other comprehensive loss Net actuarial loss $ 29.9 $ 17.2 $ 33.4 $ 0.2 $ — $ — Amortization of net actuarial (loss) gain (17.7 ) (19.1 ) (37.3 ) 0.2 0.1 0.3 Prior service cost 0.6 2.5 — — (3.7 ) — Amortization of prior service cost 1.1 1.0 1.0 0.4 0.4 — Total recognized in other comprehensive loss 13.9 1.6 (2.9 ) 0.8 (3.2 ) 0.3 Total recognized in net periodic cost (benefit) and other comprehensive loss $ 7.0 $ 1.7 $ 25.7 $ 0.5 $ (3.3 ) $ 0.5 The estimated net actuarial loss and prior service cost for the pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2017 are $17.8 million and $(0.4) million, respectively. The estimated net actuarial loss and prior year service cost for the post-retirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2017 are $0.1 million and $(0.4) million, respectively. As permitted under ASC 715, the amortization of any prior service cost was previously determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plan. Beginning in 2015 the amortization occurs over the average remaining life expectancy of participants expected to receive benefits under the plan as permitted under ASC 715. The 2016 and 2015 after tax adjustments for additional minimum pension liability resulted in other comprehensive (loss) gain of $(9.0) million and $1.0 million, respectively. Actuarial assumptions used to determine benefit obligations at December 31 are as follows: Pension Benefits Post-retirement Benefits 2016 2015 2016 2015 Discount rate 4.15 % 4.40 % 4.33 % 4.55 % Average salary increases 4.00 % 4.00 % 4.00 % 4.00 % Actuarial assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows: Pension Benefits Post-retirement Benefits Years ended December 31 2016 2015 2014 2016 2015 2014 Discount rate 4.40 % 4.05 % 4.85 % 4.55 % 4.00 % 4.70 % Expected long-term return on plan assets 7.50 % 7.75 % 7.75 % n/a n/a n/a Rate of compensation increase 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Assumptions In developing the expected long-term rate of return on plan assets assumption, the Company evaluated its pension plan’s target and actual asset allocation and expected long-term rates of return of equity and bond indices. The Company also considered its pension plan’s historical ten-year 25-year Assumed health care cost trend rates Assumed health care cost trend rates as of December 31 are as follows: 2016 2015 Health care cost trend rate assumed for next year 6.50 % 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2021 2021 A one-percentage-point Plan Assets The Company’s pension plan weighted asset allocations as of December 31 by asset category are as follows: Asset Category 2016 2015 Equity securities 48 % 47 % Debt securities 37 39 Real estate 10 9 Private equity 4 5 Other 1 — 100 % 100 % The following tables present the fair value measurement of the Company’s plan assets as of December 31, 2016 and 2015 (dollars in millions): December 31, 2016 Asset Category Total Quoted Prices in Significant Other Significant Non- Short-term investments $ 28.7 $ 1.1 $ 7.9 $ 19.7 Equity securities Common stocks 254.0 254.0 — — Commingled equity funds 105.6 — 105.6 — Fixed income securities U.S. treasury securities 97.6 97.6 — — Other fixed income securities 102.6 — 102.6 — Commingled fixed income funds 90.3 — 90.3 — Other types of investments Mutual funds 4.5 — 4.5 — Real estate funds 74.3 — — 74.3 Private equity 28.0 — — 28.0 Total fair value of plan asset investments $ 785.6 $ 352.7 $ 310.9 $ 122.0 Non-investment 1.4 Total plan assets $ 787.0 December 31, 2015 Asset Category Total Quoted Prices in Significant Other Significant Non- Short-term investments $ 13.8 $ 1.4 $ — $ 12.4 Equity securities Common stocks 238.6 238.6 — — Commingled equity funds 109.6 — 109.6 — Fixed income securities U.S. treasury securities 114.3 114.3 — — Other fixed income securities 91.6 — 91.6 — Commingled fixed income funds 84.1 — 84.1 — Other types of investments Real estate funds 70.9 — — 70.9 Private equity 34.3 — — 34.3 Total fair value of plan asset investments $ 757.2 $ 354.3 $ 285.3 $ 117.6 Non-investment 1.8 Total plan assets $ 759.0 The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level 3) as of December 31, 2016 and 2015 (dollars in millions): Short term Real Private Total Balance at December 31, 2014 $ 20.7 $ 64.1 $ 34.8 $ 119.6 Actual return (loss) on plan assets: Relating to assets still held at the reporting date — 6.8 (0.1 ) 6.7 Relating to assets sold during the period — — 7.8 7.8 Purchases, sales and settlements (8.3 ) — (8.2 ) (16.5 ) Balance at December 31, 2015 12.4 70.9 34.3 117.6 Actual return (loss) on plan assets: Relating to assets still held at the reporting date — 3.4 (5.5 ) (2.1 ) Relating to assets sold during the period — — 9.3 9.3 Purchases, sales and settlements 7.3 — (10.1 ) (2.8 ) Balance at December 31, 2016 $ 19.7 $ 74.3 $ 28.0 $ 122.0 The Company’s investment policies employ an approach whereby a diversified blend of equity and bond investments is used to maximize the long–term return of plan assets for a prudent level of risk. Equity investments are diversified across domestic and non–domestic stocks, as well as growth, value, and small to large capitalizations. Bond investments include corporate and government issues, with short–, mid– and long–term maturities, with a focus on investment grade when purchased. The Company’s target allocation to equity managers is between 45 to 55 percent with the remainder allocated primarily to bonds, real estate, private equity managers and cash. Investment and market risks are measured and monitored on an ongoing basis through regular investment portfolio reviews, annual liability measurements and periodic asset/liability studies. The Company’s actual asset allocations are in line with target allocations. The Company regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate. There was no Company stock included in plan assets at December 31, 2016. Cash Flows The Company was not required to make a contribution in 2016 but elected to make a $30 million voluntary contribution. The Company is not required to make a contribution in 2017. Estimated Future Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Years ending December 31 (dollars in millions) Pension Benefits Post-retirement 2017 $ 60.2 $ 0.4 2018 67.6 0.4 2019 60.1 0.4 2020 66.4 0.4 2021 59.2 0.4 2022 – 2026 284.4 2.1 |
Derivative instruments
Derivative instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative instruments | 11. Derivative instruments ASC 815 Derivatives and Hedging The Company designates that all of its hedging instruments are cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive loss, net of tax, and is reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The amount by which the cumulative change in the value of the hedge more than offsets the cumulative change in the value of the hedged item (i.e., the ineffective portion) is recorded in earnings, net of tax, in the period the ineffectiveness occurs. The Company utilizes certain derivative instruments to enhance its ability to manage currency exposure as well as raw materials price risk. Derivative instruments are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The Company does not enter into contracts for speculative purposes. The contracts are executed with major financial institutions with no credit loss anticipated for failure of the counterparties to perform. Foreign Currency Forward Contracts The Company is exposed to foreign currency exchange risk as a result of transactions in currencies other than the functional currency of certain subsidiaries. The Company utilizes foreign currency forward purchase and sale contracts to manage the volatility associated with foreign currency purchases, sales and certain intercompany transactions in the normal course of business. Principal currencies for which the Company utilizes foreign currency forward contracts include the British pound, Canadian dollar, Euro and Mexican peso. Gains and losses on these instruments are recorded in accumulated other comprehensive loss, net of tax, until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to the consolidated statement of earnings. The assessment of effectiveness for forward contracts is based on changes in the forward rates. These hedges have been determined to be effective. The amounts in accumulated other comprehensive loss for cash flow hedges will be reclassified into earnings no later than December 31, 2018. The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts: December 31 (dollars in millions) 2016 2015 Buy Sell Buy Sell British pound $ — $ 1.2 $ — $ 0.9 Canadian dollar — 56.9 — 43.2 Euro 25.4 1.8 21.3 1.7 Mexican peso 16.9 — 12.7 — Total $ 42.3 $ 59.9 $ 34.0 $ 45.8 Commodity Futures Contracts In addition to entering into supply arrangements in the normal course of business, the Company also enters into futures contracts to fix the cost of certain raw material purchases, principally copper and steel, with the objective of minimizing changes in cost due to market price fluctuations. The hedging strategy for achieving this objective is to purchase commodities futures contracts on the open market of the London Metals Exchange (LME) or over the counter contracts based on the LME for copper. Steel futures contracts are purchased on the New York Metals Exchange (NYMEX). With NYMEX, the Company is required to make cash deposits on unrealized losses on steel derivative contracts. The after-tax after-tax The impact of derivative contracts on the Company’s financial statements is as follows: Fair value of derivative instruments designated as hedging instruments under ASC 815: Fair Value December 31 (dollars in millions) Balance Sheet Location 2016 2015 Foreign currency contracts Other current assets $ 1.9 $ 3.6 Accrued liabilities (2.0 ) (1.3 ) Commodities contracts Other current assets 0.8 — Accrued liabilities (0.3 ) (0.3 ) Total derivatives designated as hedging instruments $ 0.4 $ 2.0 The effect of derivative instruments on the consolidated statement of earnings is as follows. Year ended December 31 (dollars in millions) Derivatives in ASC 815 cash flow hedging relationships Amount of gain Location of gain loss into earnings Amount of gain Location of gain portion) Amount of gain 2016 2015 2016 2015 2016 2015 Foreign currency contracts $ (3.8 ) $ 6.9 Cost of products sold $ (1.4 ) $ 6.2 N/A $ — $ — Commodities contracts 2.4 (0.7 ) Cost of products sold 1.6 (0.5 ) Cost of products sold — — $ (1.4 ) $ 6.2 $ 0.2 $ 5.7 $ — $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | 12. Income Taxes The components of the provision (benefit) for income taxes consisted of the following: Years ended December 31 (dollars in millions) 2016 2015 2014 Current: Federal $ 71.6 $ 82.9 $ 48.7 State 14.5 13.9 10.4 International 34.9 23.6 22.4 Deferred: Federal 11.0 (4.2 ) (5.2 ) State 5.2 2.2 (0.2 ) International (1.2 ) 1.2 2.8 $ 136.0 $ 119.6 $ 78.9 The provision for income taxes differs from the U.S. federal statutory rate due to the following items: Years ended December 31 2016 2015 2014 Provision at U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.8 2.6 2.3 International income tax rate differential - China (6.2 ) (6.8 ) (8.2 ) International income tax rate differential - other 0.3 0.2 0.4 U.S. manufacturing credit (1.5 ) (1.3 ) (2.1 ) Research tax credits (0.3 ) (0.3 ) (0.4 ) Excess tax benefit on stock compensation (1.1 ) — — Other 0.4 0.3 0.5 29.4 % 29.7 % 27.5 % Components of earnings before income taxes were as follows: Years ended December 31 (dollars in millions) 2016 2015 2014 U.S. $ 300.9 $ 255.7 $ 150.6 International 161.6 146.8 136.1 $ 462.5 $ 402.5 $ 286.7 Total income taxes paid by the Company amounted to $117.4 million, $97.5 million, and $88.9 million in 2016, 2015 and 2014, respectively. As of December 31, 2016, the Company has $42.3 million accrued for its estimate of the tax costs due upon repatriation of undistributed foreign earnings it considers to be not permanently reinvested. At December 31, 2016, the Company had undistributed foreign earnings of $982.2 million, of which $828.2 million are considered permanently reinvested. No U.S. income tax provision or foreign withholding tax provisions have been made on foreign earnings that remain permanently reinvested. The Company considers permanently reinvested earnings outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and its specific plans for reinvestment of foreign subsidiary earnings. In addition, no provision or benefit for U.S. income taxes has been made on foreign currency translation gains or losses. As of December 31, 2016, $751.7 million of cash and cash equivalents and marketable securities were held by our foreign subsidiaries. The tax effects of temporary differences of assets and liabilities between income tax and financial reporting are as follows: December 31 (dollars in millions) 2016 2015 Assets Liabilities Assets Liabilities Employee benefits $ 67.5 $ — $ 75.0 $ — Product liability and warranties 67.1 — 66.8 — Inventories — 3.4 — 4.4 Accounts receivable 14.9 — 13.0 — Property, plant and equipment — 34.3 — 36.9 Intangibles — 77.4 — 54.3 Environmental liabilities 2.9 — 2.7 — Undistributed foreign earnings — 42.3 — 47.9 Tax loss and credit carryovers 18.2 — 14.6 — All other 4.3 — 3.4 — Valuation allowance (13.1 ) — (11.0 ) — $ 161.8 $ 157.4 $ 164.5 $ 143.5 Net asset $ 4.4 $ 21.0 In November 2015, the FASB amended ASC 740, Income Taxes 2015-17). non-current 2015-17 non-current non-current The Company believes it is more likely than not that it will realize its deferred tax assets through the reduction of future taxable income. Significant factors the Company considered in determining the probability of the realization of the deferred tax assets include historical operating results and expected future earnings. A reconciliation of the beginning and ending amounts of tax loss carryovers, credit carryovers and valuation allowances is as follows: December 31 (dollars in millions) Net Operating Losses and Tax Credits Valuation Allowances 2016 2015 2016 2015 Beginning balance $ 14.6 $ 14.9 $ 11.0 $ 9.8 Additions 3.7 1.4 2.1 1.4 Reductions (0.1 ) (1.7 ) — (0.2 ) Ending balance $ 18.2 $ 14.6 $ 13.1 $ 11.0 The Company has foreign net operating loss carryovers that expire in 2017 through 2024 and state and local net operating loss carryovers that expire between 2017 and 2033. A reconciliation of the beginning and ending amount of unrecognized benefits is as follows: (Dollars in millions) 2016 2015 Balance at January 1 $ 2.6 $ 1.2 Additions for tax positions of prior years 1.6 1.4 Balance at December 31 $ 4.2 $ 2.6 The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $0.6 million. The Company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. At December 31, 2016, there was an immaterial amount of interest and penalties accrued. It is anticipated there will be no decrease in the total amount of unrecognized tax benefits in 2017. The Company’s U.S. federal income tax returns for 2014-2016 are subject to audit. The Company is subject to state and local income tax audits for tax years 2001-2016. The Company is subject to non-U.S. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | 13. Commitments and Contingencies The Company is a potentially responsible party in judicial and administrative proceedings seeking to clean up sites which have been environmentally impacted. In each case the Company has established reserves, insurance proceeds and/or a potential recovery from third parties. The Company believes any environmental claims will not have a material effect on its financial position or results of operations. The Company is subject to various claims and pending lawsuits for product liability and other matters arising out of the conduct of the Company’s business. With respect to product liability claims, the Company has self-insured a portion of its product liability loss exposure for many years. The Company has established reserves and has insurance coverage, which it believes are adequate to cover incurred claims. For the years ended December 31, 2016 and 2015, the Company had $125 million of product liability insurance for individual losses in excess of $7.5 million. The Company periodically reevaluates its exposure on claims and lawsuits and makes adjustments to its reserves as appropriate. The Company believes, based on current knowledge, consultation with counsel, adequate reserves and insurance coverage that the outcome of such claims and lawsuits will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Operations by Segment
Operations by Segment | 12 Months Ended |
Dec. 31, 2016 | |
Operations by Segment | 14. Operations by Segment The Company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas, gas tankless and electric water heaters as well as water treatment products. Both segments primarily manufacture and market in their respective regions of the world. The North America segment also manufactures and globally markets specialty commercial water heating equipment, condensing and non-condensing in-home The accounting policies of the reportable segments are the same as those described in the “Summary of Significant Accounting Policies” outlined in Note 1. Operating earnings, defined by the Company as earnings before interest, taxes, general corporate and corporate research and development expenses, were used to measure the performance of the segments. Net Sales Earnings Years ended December 31 (dollars in millions) 2016 2015 2014 2016 2015 2014 North America $ 1,743.2 $ 1,703.0 $ 1,621.7 $ 385.9 $ 339.9 $ 238.7 Rest of World 965.6 866.1 768.3 129.1 113.0 106.7 Inter-segment (22.9 ) (32.6 ) (34.0 ) — — (0.1 ) Total segments – sales, operating earnings $ 2,685.9 $ 2,536.5 $ 2,356.0 $ 515.0 $ 452.9 $ 345.3 Corporate expenses (45.2 ) (43.0 ) (52.9 ) Interest expense (7.3 ) (7.4 ) (5.7 ) Earnings before income taxes 462.5 402.5 286.7 Provision for income taxes (136.0 ) (119.6 ) (78.9 ) Earnings from continuing operations $ 326.5 $ 282.9 $ 207.8 In 2016, sales to the North America segment’s two largest customers were $311.5 million and $280.8 million which represented 12 percent and 11 percent of the Company’s net sales, respectively. In 2015, sales to the North America segment’s two largest customers were $301.7 million and $287.0 million which represented 12 percent and 11 percent of the Company’s net sales, respectively. In 2014, sales to the North America segment’s two largest customers were $296.5 million and $237.2 million which represented 13 percent and ten percent of the Company’s net sales, respectively. Assets, depreciation and capital expenditures by segment Total Assets Depreciation and Capital (dollars in millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 North America $ 1,515.9 $ 1,381.1 $ 1,358.5 $ 42.9 $ 41.9 $ 37.8 $ 45.9 $ 43.5 $ 59.4 Rest of World 584.3 544.2 523.8 21.0 19.8 20.0 34.3 28.4 26.5 Corporate 790.8 703.9 615.8 1.2 1.3 2.0 0.5 0.8 0.2 Total $ 2,891.0 $ 2,629.2 $ 2,498.1 $ 65.1 $ 63.0 $ 59.8 $ 80.7 $ 72.7 $ 86.1 The majority of corporate assets consist of cash, cash equivalents, marketable securities and deferred income taxes. Net sales and long-lived assets by geographic location The following data by geographic area includes net sales based on product shipment destination and long-lived assets based on physical location. Long-lived assets include net property, plant and equipment and other long-term assets. Long-lived Assets Net Sales (dollars in millions) 2016 2015 2014 2016 2015 2014 United States $ 292.4 $ 297.8 $ 285.4 United States $ 1,570.7 $ 1,531.4 $ 1,447.9 China 184.3 157.3 144.0 China 887.1 787.1 691.8 Canada 3.1 2.7 3.5 Canada 138.7 129.9 128.8 Other Foreign 48.4 55.2 58.3 Other Foreign 89.4 88.1 87.5 Total $ 528.2 $ 513.0 $ 491.2 Total $ 2,685.9 $ 2,536.5 $ 2,356.0 |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations | 15. Quarterly Results of Operations (Unaudited) (dollars in millions, except per share amounts) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2016 2015 2016 2015 2016 2015 2016 2015 Net sales $ 636.9 $ 618.5 $ 667.0 $ 653.5 $ 683.9 $ 625.1 $ 698.1 $ 639.4 Gross profit 262.7 229.2 283.7 262.4 283.3 255.6 289.6 262.6 Net earnings 73.5 58.4 87.1 71.1 83.2 73.6 82.7 79.8 Basic earnings per share 0.42 0.33 0.50 0.40 0.48 0.42 0.48 0.45 Diluted earnings per share 0.41 0.32 0.49 0.40 0.47 0.41 0.47 0.45 Common dividends declared 0.12 0.095 0.12 0.095 0.12 0.095 0.12 0.095 Net earnings per share are computed separately for each period, and therefore, the sum of such quarterly per share amounts may differ from the total for the year. |
Organization and Significant 25
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization | Organization. non-condensing in-home |
Consolidation | Consolidation. Except when otherwise indicated, amounts reflected in the financial statements or the notes thereto relate to the Company’s continuing operations. On August 22, 2011, the Company sold its Electrical Products business (EPC). Due to the sale, EPC related items have been reflected as discontinued operations in the consolidated statement of cash flows for all periods presented. |
Use of Estimates | Use of estimates |
Fair value of financial instruments | Fair value of financial instruments. |
Foreign Currency Translation | Foreign currency translation. non-operating year-end non-operating |
Cash and Cash Equivalents | Cash and cash equivalents |
Marketable securities | Marketable securities |
Inventory Valuation | Inventory valuation. last-in, first-out first-in, first-out |
Property, Plant and Equipment | Property, plant and equipment. straight-line |
Goodwill and Other Intangibles | Goodwill and other intangibles. |
Impairment of Long-Lived and Amortizable Intangible Assets | Impairment of long-lived and amortizable intangible assets. |
Product Warranties | Product warranties. The following table presents the Company’s product warranty liability activity in 2016 and 2015: Years ended December 31 (dollars in millions) 2016 2015 Balance at beginning of year $ 139.3 $ 136.2 Expense 43.2 50.3 Claims settled (41.6 ) (47.2 ) Balance at end of year $ 140.9 $ 139.3 |
Derivative instruments | Derivative instruments. |
Fair Value Measurements | Fair Value Measurements. ( Fair Value Measurements Assets and liabilities measured at fair value are based on the market approach which are prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Assets measured at fair value on a recurring basis are as follows (dollars in millions): Fair Value Measurement Using December 31, 2016 December 31, 2015 Quoted prices in active markets for identical assets (Level 1) $ 424.5 $ 323.9 Significant other observable inputs (Level 2) — (0.3 ) Total assets measured at fair value $ 424.5 $ 323.6 There were no changes in the valuation techniques used to measure fair values on a recurring basis. |
Revenue recognition | Revenue recognition. Contracts and customer purchase orders are used to determine the existence of a sales arrangement. Shipping documents are used to verify shipment. The Company assesses whether the selling price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. The Company assesses collectability based on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. The allowance for doubtful accounts was $6.3 million and $6.0 million at December 31, 2016 and 2015, respectively. Reserves for customer returns for defective product are based on historical experience with similar types of sales. Accruals for rebates and incentives are based on pricing agreements and are tied to sales volume. Changes in such accruals may be required if future returns differ from historical experience or if actual sales volume differs from estimated sales volume. Rebates and incentives are recognized as a reduction of sales. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold. |
Advertising | Advertising. |
Research and Development | Research and development. |
Environmental Costs | Environmental costs. |
Stock-based compensation | Stock-based compensation. Compensation – Stock Compensation |
Income taxes | Income taxes. Income Taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon settlement. |
Earnings Per Share of Common Stock | Earnings per share of common stock. two-class 2016 2015 2014 Denominator for basic earnings per share - weighted-average shares outstanding 174,712,683 177,622,280 180,587,008 Effect of dilutive stock options, restricted stock and share units 2,112,597 1,386,900 1,386,954 Denominator for diluted earnings per share 176,825,280 179,009,180 181,973,962 On April 11, 2016, the Company’s stockholders approved a proposal to increase the Company’s authorized shares of Common Stock and on September 7, 2016, the Company’s Board of Directors declared a two-for-one |
Reclassifications | Reclassifications. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (FASB) amended ASC 740, Income Taxes 2016-16). In August 2016, the FASB amended ASC 230, Statement of Cash Flows 2016-15, 2016-15 In March 2016, the FASB amended ASC 718, Compensation - Stock Compensation 2016-09). The amendment also required that cash paid by an employer to a taxing authority when shares are directly withheld for employee income tax withholding purposes be classified as financing activities in the consolidated statement of cash flows. As required, the Company applied this guidance retrospectively in the presentation of the consolidated statement of cash flows for the period beginning January 1, 2014 and, as a result, reclassified $7.3 million and $0.1 million of cash used by operating activities to cash used by financing activities for the years ended December 31, 2015 and 2014, respectively. In February 2016, the FASB amended ASC 842, Leases 2016-02). 2016-02 In November 2015, the FASB amended ASC 740, Income Taxes 2015-17). 2015-17 non-current non-current In July 2015, the FASB amended ASC 330, Inventory 2015-11, first-in, first-out 2015-11 2015-11 In May 2014, the FASB issued ASC 606-10, Revenue from Contracts with Customers 2014-09). 606-10 606-10 |
Organization and Significant 26
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Product Warranty Liability Activity | The following table presents the Company’s product warranty liability activity in 2016 and 2015: Years ended December 31 (dollars in millions) 2016 2015 Balance at beginning of year $ 139.3 $ 136.2 Expense 43.2 50.3 Claims settled (41.6 ) (47.2 ) Balance at end of year $ 140.9 $ 139.3 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are as follows (dollars in millions): Fair Value Measurement Using December 31, 2016 December 31, 2015 Quoted prices in active markets for identical assets (Level 1) $ 424.5 $ 323.9 Significant other observable inputs (Level 2) — (0.3 ) Total assets measured at fair value $ 424.5 $ 323.6 |
Schedule of Computation of Basic and Diluted Weighted Average Shares Used in EPS Calculations | The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations: 2016 2015 2014 Denominator for basic earnings per share - weighted-average shares outstanding 174,712,683 177,622,280 180,587,008 Effect of dilutive stock options, restricted stock and share units 2,112,597 1,386,900 1,386,954 Denominator for diluted earnings per share 176,825,280 179,009,180 181,973,962 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Preliminary Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition | The following table summarizes the preliminary allocation of fair value of the assets acquired and liabilities assumed at the date of acquisition. The Company is awaiting final valuations to support the acquired intangible assets as well as finalizing the accounting for acquired accrued liabilities. The $30.0 million of acquired intangible assets was comprised of $21.5 million of trade names that are not subject to amortization, $8.3 million of customer lists which will be amortized over ten years and $0.2 million of patents which will be amortized over five years. August 8, 2016 (dollars in millions) Current assets, net of cash acquired $ 7.3 Property, plant and equipment 2.7 Intangible assets 30.0 Goodwill 60.4 Total assets acquired 100.4 Current liabilities (7.1 ) Long-term liabilities (8.2 ) Total liabilities assumed (15.3 ) Net assets acquired $ 85.1 |
Statement of Cash Flows (Tables
Statement of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information is as follows: Years ended December 31 (dollars in millions) 2016 2015 2014 Net change in current assets and liabilities, net of acquisitions: Receivables $ (15.1 ) $ (25.9 ) $ (16.8 ) Inventories (23.4 ) (14.7 ) (14.9 ) Other current assets (3.2 ) (4.6 ) (7.7 ) Trade payables 101.5 31.0 6.9 Accrued liabilities, including payroll and benefits 6.3 19.8 2.6 Income taxes payable 2.7 11.2 (7.7 ) $ 68.8 $ 16.8 $ (37.6 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Inventories | December 31 (dollars in millions) 2016 2015 Finished products $ 114.1 $ 85.7 Work in process 13.0 13.4 Raw materials 142.4 139.6 Inventories, at FIFO cost 269.5 238.7 LIFO reserve (18.4 ) (15.8 ) $ 251.1 $ 222.9 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Property Plant and Equipment | December 31 (dollars in millions) 2016 2015 Land $ 11.0 $ 10.8 Buildings 286.4 237.9 Equipment 533.7 530.9 Software 101.4 87.2 932.5 866.8 Less accumulated depreciation and amortization 470.6 424.1 $ 461.9 $ 442.7 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill during the years ended December 31, 2016 and 2015 consisted of the following: (dollars in millions) North America Rest of World Total Balance at December 31, 2014 $ 368.5 $ 60.3 $ 428.8 Currency translation adjustment (7.5 ) (0.4 ) (7.9 ) Balance at December 31, 2015 361.0 59.9 420.9 Acquisitions 70.0 — 70.0 Currency translation adjustment 1.2 (0.6 ) 0.6 Balance at December 31, 2016 $ 432.2 $ 59.3 $ 491.5 |
Schedule of Carrying Amount of Other Intangible Assets | The carrying amount of other intangible assets consisted of the following: 2016 2015 December 31 (dollars in millions) Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Patents $ 3.7 $ (2.2 ) $ 1.5 $ 3.2 $ (1.9 ) $ 1.3 Customer lists 224.0 (80.3 ) 143.7 231.6 (83.1 ) 148.5 Total amortizable intangible assets 227.7 (82.5 ) 145.2 234.8 (85.0 ) 149.8 Indefinite-lived intangible assets: Trade names 163.1 — 163.1 141.2 — 141.2 Total intangible assets $ 390.8 $ (82.5 ) $ 308.3 $ 367.0 $ (85.0 ) $ 291.0 |
Debt and Lease Commitments (Tab
Debt and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Debt and Lease Commitments | December 31 (dollars in millions) 2016 2015 Bank credit lines, average year-end $ 23.6 $ 10.2 Revolving credit agreement borrowings, average year-end 80.0 80.0 Commercial paper, average year-end 85.6 56.8 Term notes with insurance companies, expiring through 2034, average year-end 125.5 89.0 Canadian term notes with insurance companies, expiring through 2018, average year-end 8.9 13.0 323.6 249.0 Less long-term debt due within one year 7.2 12.9 Long-term debt $ 316.4 $ 236.1 |
Schedule of Maturities of Long Term Debt | Scheduled maturities of long-term Years ending December 31 (dollars in millions) Amount 2017 $ 7.2 2018 7.2 2019 — 2020 6.8 2021 196.1 |
Schedule of Future Minimum Payments Under Non Cancelable Operating Leases | Future minimum payments under non-cancelable Years ending December 31 (dollars in millions) Amount 2017 $ 19.5 2018 4.5 2019 3.4 2020 2.3 2021 1.9 Thereafter 5.8 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss is as follows: December 31 (dollars in millions) 2016 2015 Cumulative foreign currency translation adjustments $ (79.2 ) $ (39.4 ) Unrealized net gain on cash flow derivative instruments less related income tax provision of $(0.1) in 2016 and $(0.8) in 2015 0.2 1.2 Pension liability less related income tax benefit of $183.4 in 2016 and $177.7 in 2015 (284.2 ) (275.2 ) $ (363.2 ) $ (313.4 ) |
Changes in Accumulated Other Comprehensive Loss by Component | Changes to accumulated other comprehensive loss by component are as follows: Year ended 2016 2015 Cumulative foreign currency translation Balance at beginning of period $ (39.4 ) $ 3.3 Other comprehensive loss before reclassifications (39.8 ) (42.7 ) Balance at end of period (79.2 ) (39.4 ) Unrealized net gain on cash flow derivatives Balance at beginning of period 1.2 0.9 Other comprehensive earnings before reclassifications (0.9 ) 3.7 Realized gains on derivatives reclassified to cost of products sold (net of tax provision of $0.1 and $2.3 in 2016 and 2015, respectively) (1) (0.1 ) (3.4 ) Balance at end of period 0.2 1.2 Pension liability Balance at beginning of period (275.2 ) (276.2 ) Other comprehensive loss before reclassifications (18.8 ) (9.6 ) Amounts reclassified from accumulated other comprehensive loss (1) 9.8 10.6 Balance at end of period (284.2 ) (275.2 ) Total accumulated other comprehensive loss, end of period $ (363.2 ) $ (313.4 ) (1) Realized gains on derivatives reclassified to cost of products sold (0.2 ) (5.7 ) Tax provision 0.1 2.3 Reclassification net of tax $ (0.1 ) $ (3.4 ) Amortization of pension items: Actuarial losses $ 17.5 (2) $ 19.0 (2) Prior year service cost (1.5 ) (2) (1.4 ) (2) 16.0 17.6 Tax benefit (6.2 ) (7.0 ) Reclassification net of tax $ 9.8 $ 10.6 (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 10 - Pensions and Other Post-retirement Benefits for additional details |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Changes in Option Shares | Changes in option shares, all of which are Common Stock, were as follows: Weighted-Avg. (dollars in millions) Years Ended December 31 2016 2015 2014 Outstanding at beginning of year $ 18.03 2,653,558 3,154,006 2,881,246 Granted 2016—$31.49 to $46.93 per share 553,370 2015—$23.24 to $25.34 per share 484,990 2014—$17.46 to $26.47 per share 597,500 Exercised 2016—$4.75 to $30.77 per share (531,933 ) $ 7.5 2015—$4.10 to $17.46 per share (978,208 ) 10.2 2014—$4.10 to $11.50 per share (316,502 ) 2.6 Forfeited 2016—$23.24 to $46.93 per share (10,662 ) 2015—$17.46 to $23.24 per share (7,230 ) 2014—$11.50 to $17.46 per share (8,238 ) Outstanding at end of year (2016—$4.75 to $46.93 per share) 21.69 2,664,333 2,653,558 3,154,006 Exercisable at end of year 16.12 1,602,651 1,544,186 1,865,278 |
Schedule of Weighted Average Information by Range of Exercise Prices for Stock Options Outstanding and Exercisable | The following table summarizes weighted-average information by range of exercise prices for stock options outstanding and exercisable at December 31, 2016: Range of Exercise Prices Options Weighted- Options Weighted- Weighted- $ 4.75 to $11.50 683,434 $ 8.31 683,434 $ 8.31 4 years $17.46 to $25.34 954,074 20.76 759,014 20.12 7 years $26.47 to $46.93 1,026,825 31.36 160,203 30.52 9 years 2,664,333 1,602,651 |
Schedule of Weighted Average Fair Value per Option at Date of Grant | The weighted-average fair value per option at the date of grant during 2016, 2015 and 2014, using the Black-Scholes option-pricing model, was $8.03, $8.59 and $8.28, respectively. Assumptions were as follows: 2016 2015 2014 Expected life (years) 5.8 5.9 6.0 Risk-free interest rate 1.7 % 2.0 % 2.7 % Dividend yield 1.3 % 1.0 % 1.1 % Expected volatility 27.7 % 29.3 % 36.6 % |
Schedule of Share Unit Activity Under Plan | A summary of share unit activity under the plan is as follows: Number of Units Weighted-Average Outstanding at January 1, 2016 658,326 $ 22.15 Granted 160,465 32.21 Vested (268,306 ) 17.39 Forfeited/cancelled (6,430 ) 31.81 Outstanding at December 31, 2016 544,055 27.35 |
Pension and Other Post-retire35
Pension and Other Post-retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Changes in Benefit Obligation, Plan Assets and Funded Status of Defined Benefit Pension and Post Retirement Benefit Plans | The following tables present the changes in benefit obligations, plan assets and funded status for domestic pension and post-retirement plans and the components of net periodic benefit costs. Pension Benefits Post-retirement Benefits Years ended December 31 (dollars in millions) 2016 2015 2016 2015 Accumulated benefit obligation (ABO) at December 31 $ 894.3 $ 889.4 N/A N/A Change in projected benefit obligations (PBO) PBO at beginning of year $ (892.9 ) $ (956.7 ) $ (6.6 ) $ (10.4 ) Service cost (1.8 ) (1.9 ) (0.1 ) (0.1 ) Interest cost (30.6 ) (37.6 ) (0.2 ) (0.3 ) Participant contributions — — — (0.2 ) Plan amendments (0.7 ) (2.5 ) — 3.7 Actuarial (loss) gain including assumption changes (31.0 ) 45.6 (0.2 ) — Benefits paid 61.2 60.2 0.5 0.7 PBO at end of year $ (895.8 ) $ (892.9 ) $ (6.6 ) $ (6.6 ) Change in fair value of plan assets Plan assets at beginning of year $ 759.0 $ 823.9 $ — $ — Actual return on plan assets 57.0 (5.3 ) — — Contribution by the company 32.2 0.5 0.5 0.5 Participant contributions — — — 0.2 Benefits paid (61.2 ) (60.1 ) (0.5 ) (0.7 ) Plan assets at end of year $ 787.0 $ 759.0 $ — $ — Funded status $ (108.8 ) $ (133.9 ) $ (6.6 ) $ (6.6 ) Amount recognized in the balance sheet Current liabilities $ (0.5 ) $ (1.8 ) $ (0.4 ) $ (0.4 ) Non-current (108.3 ) (132.1 ) (6.2 ) (6.2 ) Net pension liability at end of year $ (108.8 )* $ (133.9 )* $ (6.6 ) $ (6.6 ) Amounts recognized in accumulated other comprehensive loss before tax Net actuarial loss (gain) $ 473.5 $ 461.3 $ (2.0 ) $ (2.4 ) Prior service cost (0.9 ) (2.6 ) (2.9 ) (3.3 ) Total recognized in accumulated other comprehensive loss $ 472.6 $ 458.7 $ (4.9 ) $ (5.7 ) * In addition, the Company has a liability for a foreign pension plan of $0.2 million and $0.3 million at December 31, 2016 and 2015, respectively. |
Schedule of Net Periodic Benefit Cost | Pension Benefits Post-retirement Benefits Years ended December 31 (dollars in millions) 2016 2015 2014 2016 2015 2014 Net periodic benefit cost Service cost $ 1.8 $ 1.9 $ 7.9 $ 0.1 $ 0.1 $ 0.1 Interest cost 30.6 37.6 44.7 0.2 0.3 0.5 Expected return on plan assets (55.9 ) (57.5 ) (60.3 ) — — — Amortization of unrecognized: Net actuarial loss (gain) 17.7 19.1 35.1 (0.2 ) (0.1 ) (0.4 ) Prior service cost (1.1 ) (1.0 ) (1.0 ) (0.4 ) (0.4 ) — Curtailment and other one-time — — 2.2 — — — Defined-benefit plan (income) cost (6.9 ) 0.1 28.6 $ (0.3 ) $ (0.1 ) $ 0.2 Various U.S. defined contribution plans cost 11.6 10.8 6.1 $ 4.7 $ 10.9 $ 34.7 Other changes in plan assets and projected benefit obligation recognized in other comprehensive loss Net actuarial loss $ 29.9 $ 17.2 $ 33.4 $ 0.2 $ — $ — Amortization of net actuarial (loss) gain (17.7 ) (19.1 ) (37.3 ) 0.2 0.1 0.3 Prior service cost 0.6 2.5 — — (3.7 ) — Amortization of prior service cost 1.1 1.0 1.0 0.4 0.4 — Total recognized in other comprehensive loss 13.9 1.6 (2.9 ) 0.8 (3.2 ) 0.3 Total recognized in net periodic cost (benefit) and other comprehensive loss $ 7.0 $ 1.7 $ 25.7 $ 0.5 $ (3.3 ) $ 0.5 |
Schedule of Actuarial Assumptions Used To Determine Benefit Obligations | Actuarial assumptions used to determine benefit obligations at December 31 are as follows: Pension Benefits Post-retirement Benefits 2016 2015 2016 2015 Discount rate 4.15 % 4.40 % 4.33 % 4.55 % Average salary increases 4.00 % 4.00 % 4.00 % 4.00 % |
Schedule of Actuarial Assumptions Used To Determine Net Periodic Benefit Cost | Actuarial assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows: Pension Benefits Post-retirement Benefits Years ended December 31 2016 2015 2014 2016 2015 2014 Discount rate 4.40 % 4.05 % 4.85 % 4.55 % 4.00 % 4.70 % Expected long-term return on plan assets 7.50 % 7.75 % 7.75 % n/a n/a n/a Rate of compensation increase 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % |
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates as of December 31 are as follows: 2016 2015 Health care cost trend rate assumed for next year 6.50 % 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2021 2021 |
Schedule of Weighted Asset Allocations by Asset Category | The Company’s pension plan weighted asset allocations as of December 31 by asset category are as follows: Asset Category 2016 2015 Equity securities 48 % 47 % Debt securities 37 39 Real estate 10 9 Private equity 4 5 Other 1 — 100 % 100 % |
Schedule of Fair Value Measurement of Plan Assets | The following tables present the fair value measurement of the Company’s plan assets as of December 31, 2016 and 2015 (dollars in millions): December 31, 2016 Asset Category Total Quoted Prices in Significant Other Significant Non- Short-term investments $ 28.7 $ 1.1 $ 7.9 $ 19.7 Equity securities Common stocks 254.0 254.0 — — Commingled equity funds 105.6 — 105.6 — Fixed income securities U.S. treasury securities 97.6 97.6 — — Other fixed income securities 102.6 — 102.6 — Commingled fixed income funds 90.3 — 90.3 — Other types of investments Mutual funds 4.5 — 4.5 — Real estate funds 74.3 — — 74.3 Private equity 28.0 — — 28.0 Total fair value of plan asset investments $ 785.6 $ 352.7 $ 310.9 $ 122.0 Non-investment 1.4 Total plan assets $ 787.0 December 31, 2015 Asset Category Total Quoted Prices in Significant Other Significant Non- Short-term investments $ 13.8 $ 1.4 $ — $ 12.4 Equity securities Common stocks 238.6 238.6 — — Commingled equity funds 109.6 — 109.6 — Fixed income securities U.S. treasury securities 114.3 114.3 — — Other fixed income securities 91.6 — 91.6 — Commingled fixed income funds 84.1 — 84.1 — Other types of investments Real estate funds 70.9 — — 70.9 Private equity 34.3 — — 34.3 Total fair value of plan asset investments $ 757.2 $ 354.3 $ 285.3 $ 117.6 Non-investment 1.8 Total plan assets $ 759.0 |
Schedule of Reconciliation of Fair Value Measurements Using Significant Unobservable Inputs | The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level 3) as of December 31, 2016 and 2015 (dollars in millions): Short term Real Private Total Balance at December 31, 2014 $ 20.7 $ 64.1 $ 34.8 $ 119.6 Actual return (loss) on plan assets: Relating to assets still held at the reporting date — 6.8 (0.1 ) 6.7 Relating to assets sold during the period — — 7.8 7.8 Purchases, sales and settlements (8.3 ) — (8.2 ) (16.5 ) Balance at December 31, 2015 12.4 70.9 34.3 117.6 Actual return (loss) on plan assets: Relating to assets still held at the reporting date — 3.4 (5.5 ) (2.1 ) Relating to assets sold during the period — — 9.3 9.3 Purchases, sales and settlements 7.3 — (10.1 ) (2.8 ) Balance at December 31, 2016 $ 19.7 $ 74.3 $ 28.0 $ 122.0 |
Schedule of Estimated Future Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Years ending December 31 (dollars in millions) Pension Benefits Post-retirement 2017 $ 60.2 $ 0.4 2018 67.6 0.4 2019 60.1 0.4 2020 66.4 0.4 2021 59.2 0.4 2022 – 2026 284.4 2.1 |
Derivative instruments (Tables)
Derivative instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Effect of Derivative Instruments on Consolidated Statement of Earnings | The effect of derivative instruments on the consolidated statement of earnings is as follows. Year ended December 31 (dollars in millions) Derivatives in ASC 815 cash flow hedging relationships Amount of gain Location of gain loss into earnings Amount of gain Location of gain portion) Amount of gain 2016 2015 2016 2015 2016 2015 Foreign currency contracts $ (3.8 ) $ 6.9 Cost of products sold $ (1.4 ) $ 6.2 N/A $ — $ — Commodities contracts 2.4 (0.7 ) Cost of products sold 1.6 (0.5 ) Cost of products sold — — $ (1.4 ) $ 6.2 $ 0.2 $ 5.7 $ — $ — |
Designated as Hedging Instrument | |
Schedule of Summary by Currency of Foreign Currency Forward Contracts | The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts: December 31 (dollars in millions) 2016 2015 Buy Sell Buy Sell British pound $ — $ 1.2 $ — $ 0.9 Canadian dollar — 56.9 — 43.2 Euro 25.4 1.8 21.3 1.7 Mexican peso 16.9 — 12.7 — Total $ 42.3 $ 59.9 $ 34.0 $ 45.8 |
Schedule of Impact of Cash Flow Hedges on Company's Financial Statements | The impact of derivative contracts on the Company’s financial statements is as follows: Fair value of derivative instruments designated as hedging instruments under ASC 815: Fair Value December 31 (dollars in millions) Balance Sheet Location 2016 2015 Foreign currency contracts Other current assets $ 1.9 $ 3.6 Accrued liabilities (2.0 ) (1.3 ) Commodities contracts Other current assets 0.8 — Accrued liabilities (0.3 ) (0.3 ) Total derivatives designated as hedging instruments $ 0.4 $ 2.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Provision for Income Taxes | The components of the provision (benefit) for income taxes consisted of the following: Years ended December 31 (dollars in millions) 2016 2015 2014 Current: Federal $ 71.6 $ 82.9 $ 48.7 State 14.5 13.9 10.4 International 34.9 23.6 22.4 Deferred: Federal 11.0 (4.2 ) (5.2 ) State 5.2 2.2 (0.2 ) International (1.2 ) 1.2 2.8 $ 136.0 $ 119.6 $ 78.9 |
Difference Between Provision for Income Taxes and U.S. Federal Statutory Rate | The provision for income taxes differs from the U.S. federal statutory rate due to the following items: Years ended December 31 2016 2015 2014 Provision at U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.8 2.6 2.3 International income tax rate differential - China (6.2 ) (6.8 ) (8.2 ) International income tax rate differential - other 0.3 0.2 0.4 U.S. manufacturing credit (1.5 ) (1.3 ) (2.1 ) Research tax credits (0.3 ) (0.3 ) (0.4 ) Excess tax benefit on stock compensation (1.1 ) — — Other 0.4 0.3 0.5 29.4 % 29.7 % 27.5 % |
Components of Earnings Before Income Taxes | Components of earnings before income taxes were as follows: Years ended December 31 (dollars in millions) 2016 2015 2014 U.S. $ 300.9 $ 255.7 $ 150.6 International 161.6 146.8 136.1 $ 462.5 $ 402.5 $ 286.7 |
Tax Effects of Temporary Differences of Assets and Liabilities | The tax effects of temporary differences of assets and liabilities between income tax and financial reporting are as follows: December 31 (dollars in millions) 2016 2015 Assets Liabilities Assets Liabilities Employee benefits $ 67.5 $ — $ 75.0 $ — Product liability and warranties 67.1 — 66.8 — Inventories — 3.4 — 4.4 Accounts receivable 14.9 — 13.0 — Property, plant and equipment — 34.3 — 36.9 Intangibles — 77.4 — 54.3 Environmental liabilities 2.9 — 2.7 — Undistributed foreign earnings — 42.3 — 47.9 Tax loss and credit carryovers 18.2 — 14.6 — All other 4.3 — 3.4 — Valuation allowance (13.1 ) — (11.0 ) — $ 161.8 $ 157.4 $ 164.5 $ 143.5 Net asset $ 4.4 $ 21.0 |
Reconciliation of Tax Loss Carryovers, Credit Carryovers and Valuation Allowances | A reconciliation of the beginning and ending amounts of tax loss carryovers, credit carryovers and valuation allowances is as follows: December 31 (dollars in millions) Net Operating Losses and Tax Credits Valuation Allowances 2016 2015 2016 2015 Beginning balance $ 14.6 $ 14.9 $ 11.0 $ 9.8 Additions 3.7 1.4 2.1 1.4 Reductions (0.1 ) (1.7 ) — (0.2 ) Ending balance $ 18.2 $ 14.6 $ 13.1 $ 11.0 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized benefits is as follows: (Dollars in millions) 2016 2015 Balance at January 1 $ 2.6 $ 1.2 Additions for tax positions of prior years 1.6 1.4 Balance at December 31 $ 4.2 $ 2.6 |
Operations by Segment (Tables)
Operations by Segment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Operating Earnings | Operating earnings, defined by the Company as earnings before interest, taxes, general corporate and corporate research and development expenses, were used to measure the performance of the segments. Net Sales Earnings Years ended December 31 (dollars in millions) 2016 2015 2014 2016 2015 2014 North America $ 1,743.2 $ 1,703.0 $ 1,621.7 $ 385.9 $ 339.9 $ 238.7 Rest of World 965.6 866.1 768.3 129.1 113.0 106.7 Inter-segment (22.9 ) (32.6 ) (34.0 ) — — (0.1 ) Total segments – sales, operating earnings $ 2,685.9 $ 2,536.5 $ 2,356.0 $ 515.0 $ 452.9 $ 345.3 Corporate expenses (45.2 ) (43.0 ) (52.9 ) Interest expense (7.3 ) (7.4 ) (5.7 ) Earnings before income taxes 462.5 402.5 286.7 Provision for income taxes (136.0 ) (119.6 ) (78.9 ) Earnings from continuing operations $ 326.5 $ 282.9 $ 207.8 |
Schedule of Assets, Depreciation And Capital Expenditure By Segment | Assets, depreciation and capital expenditures by segment Total Assets Depreciation and Capital (dollars in millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 North America $ 1,515.9 $ 1,381.1 $ 1,358.5 $ 42.9 $ 41.9 $ 37.8 $ 45.9 $ 43.5 $ 59.4 Rest of World 584.3 544.2 523.8 21.0 19.8 20.0 34.3 28.4 26.5 Corporate 790.8 703.9 615.8 1.2 1.3 2.0 0.5 0.8 0.2 Total $ 2,891.0 $ 2,629.2 $ 2,498.1 $ 65.1 $ 63.0 $ 59.8 $ 80.7 $ 72.7 $ 86.1 |
Schedule of Net Sales and Long-Lived Assets by Geographic Location | The following data by geographic area includes net sales based on product shipment destination and long-lived assets based on physical location. Long-lived assets include net property, plant and equipment and other long-term assets. Long-lived Assets Net Sales (dollars in millions) 2016 2015 2014 2016 2015 2014 United States $ 292.4 $ 297.8 $ 285.4 United States $ 1,570.7 $ 1,531.4 $ 1,447.9 China 184.3 157.3 144.0 China 887.1 787.1 691.8 Canada 3.1 2.7 3.5 Canada 138.7 129.9 128.8 Other Foreign 48.4 55.2 58.3 Other Foreign 89.4 88.1 87.5 Total $ 528.2 $ 513.0 $ 491.2 Total $ 2,685.9 $ 2,536.5 $ 2,356.0 |
Quarterly Results of Operatio39
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Quarterly Results of Operations | (dollars in millions, except per share amounts) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2016 2015 2016 2015 2016 2015 2016 2015 Net sales $ 636.9 $ 618.5 $ 667.0 $ 653.5 $ 683.9 $ 625.1 $ 698.1 $ 639.4 Gross profit 262.7 229.2 283.7 262.4 283.3 255.6 289.6 262.6 Net earnings 73.5 58.4 87.1 71.1 83.2 73.6 82.7 79.8 Basic earnings per share 0.42 0.33 0.50 0.40 0.48 0.42 0.48 0.45 Diluted earnings per share 0.41 0.32 0.49 0.40 0.47 0.41 0.47 0.45 Common dividends declared 0.12 0.095 0.12 0.095 0.12 0.095 0.12 0.095 |
Organization and Significant 40
Organization and Significant Accounting Policies - Additional Information (Detail) $ in Millions | Oct. 05, 2016 | Sep. 07, 2016 | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of reporting segments | Segment | 2 | ||||
Fair value of term notes | $ 133.1 | $ 104.4 | |||
Carrying amount of term notes | $ 134.4 | $ 102 | |||
Percentage of (LIFO) inventory | 61.00% | 66.00% | |||
Allowance for doubtful accounts | $ 6.3 | $ 6 | |||
Advertising costs charged to operations | 113.9 | 102.2 | $ 94 | ||
Amortization of total advertising costs | 37 | 27.4 | 22.6 | ||
Research and development costs | 80.1 | 73.7 | 67.9 | ||
Excess tax deductions recognized as financing cash flows | $ 5.9 | 10.4 | |||
Minimum percentage of amount likely to be realized upon ultimate settlement to recognize tax benefits | 50.00% | ||||
Stock split ratio | 2 | 2 | |||
Percentage of stock dividend to stock holders | 100.00% | ||||
Dividend payable date | Oct. 5, 2016 | ||||
Dividend date of record | Sep. 21, 2016 | ||||
Recent accounting pronouncement, cash used when shares directly withheld for employee income tax withholding purposes classified as financing activities in statements of cash flows | (7.3) | (0.1) | |||
Recent accounting pronouncement effect on operating activities, cash used when shares directly withheld for employee income tax withholding purposes classified as financing activities in statements of cash flows | 7.3 | $ 0.1 | |||
Accounting Standards Update 2015-17 | Restatement Adjustment | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred income tax assets, non-current | 39.9 | ||||
Deferred income tax assets, current | $ (39.9) | ||||
Minimum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Marketable securities, Maturity period | 180 days | ||||
Product warranty period | 1 year | ||||
Amortization of total advertising costs, months | 12 months | ||||
Minimum | Customer Relationships | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets estimated useful lives | 3 years | ||||
Minimum | Building | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated service lives used to compute depreciation | 25 years | ||||
Minimum | Equipment | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated service lives used to compute depreciation | 3 years | ||||
Minimum | Software Development | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated service lives used to compute depreciation | 3 years | ||||
Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Marketable securities, Maturity period | 12 months | ||||
Product warranty period | 10 years | ||||
Amortization of total advertising costs, months | 24 months | ||||
Maximum | Customer Relationships | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets estimated useful lives | 25 years | ||||
Maximum | Building | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated service lives used to compute depreciation | 50 years | ||||
Maximum | Equipment | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated service lives used to compute depreciation | 20 years | ||||
Maximum | Software Development | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated service lives used to compute depreciation | 15 years |
Company's Warranty Liability Ac
Company's Warranty Liability Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Product Warranties | ||
Balance at beginning of year | $ 139.3 | $ 136.2 |
Expense | 43.2 | 50.3 |
Claims settled | (41.6) | (47.2) |
Balance at end of year | $ 140.9 | $ 139.3 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 424.5 | $ 323.6 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 424.5 | 323.9 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value on recurring basis | $ (0.3) |
Schedule of Computation of Basi
Schedule of Computation of Basic and Diluted Weighted-Average Shares Used in Earnings per Share Calculations (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share Of Common Stock | |||
Denominator for basic earnings per share - weighted-average shares outstanding | 174,712,683 | 177,622,280 | 180,587,008 |
Effect of dilutive stock options, restricted stock and share units | 2,112,597 | 1,386,900 | 1,386,954 |
Denominator for diluted earnings per share | 176,825,280 | 179,009,180 | 181,973,962 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Aug. 26, 2016 | Aug. 08, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||
Aggregate cash purchase price, net of cash acquired | $ 90.8 | |||||
Acquired intangible assets, amortization period, in years | 13 years | |||||
Operating earnings | $ 515 | $ 452.9 | $ 345.3 | |||
Aquasana | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of ownership interest acquired | 100.00% | |||||
Aggregate cash purchase price, net of cash acquired | $ 85.1 | |||||
Cash acquired from business acquisition | 1.9 | |||||
Acquisition-related costs | 1.2 | $ 1.2 | ||||
Contingent consideration | 1.9 | |||||
Acquired intangible assets | 30 | |||||
Revenues | 18.4 | |||||
Pre-tax losses | (0.1) | |||||
Operating earnings | 1.1 | |||||
Aquasana | Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, not subject to amortization | 21.5 | |||||
Aquasana | Customer Lists | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, subject to amortization | $ 8.3 | |||||
Acquired intangible assets, amortization period, in years | 10 years | |||||
Aquasana | Patents | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, subject to amortization | $ 0.2 | |||||
Acquired intangible assets, amortization period, in years | 5 years | |||||
Electric Water Heater Manufacturer | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate cash purchase price, net of cash acquired | $ 5.7 | |||||
Contingent consideration | $ 5.2 | $ 5.2 | ||||
Contingent consideration, conditions measurement period | 10 years |
Summary of Preliminary Allocati
Summary of Preliminary Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Aug. 08, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 491.5 | $ 420.9 | $ 428.8 | |
Aquasana | ||||
Business Acquisition [Line Items] | ||||
Current assets, net of cash acquired | $ 7.3 | |||
Property, plant and equipment | 2.7 | |||
Intangible assets | 30 | |||
Goodwill | 60.4 | |||
Total assets acquired | 100.4 | |||
Current liabilities | (7.1) | |||
Long-term liabilities | (8.2) | |||
Total liabilities assumed | (15.3) | |||
Net assets acquired | $ 85.1 |
Schedule of Supplemental Cash F
Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Cash Flows | |||
Receivables | $ (15.1) | $ (25.9) | $ (16.8) |
Inventories | (23.4) | (14.7) | (14.9) |
Other current assets | (3.2) | (4.6) | (7.7) |
Trade payables | 101.5 | 31 | 6.9 |
Accrued liabilities, including payroll and benefits | 6.3 | 19.8 | 2.6 |
Income taxes payable | 2.7 | 11.2 | (7.7) |
Current assets and liabilities | $ 68.8 | $ 16.8 | $ (37.6) |
Schedule of Inventories (Detail
Schedule of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories | ||
Finished products | $ 114.1 | $ 85.7 |
Work in process | 13 | 13.4 |
Raw materials | 142.4 | 139.6 |
Inventories, at FIFO cost | 269.5 | 238.7 |
LIFO reserve | (18.4) | (15.8) |
Net inventory | $ 251.1 | $ 222.9 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventories [Line Items] | |||
After-tax LIFO expense (income) | $ 0.3 | $ 1.1 | $ (0.1) |
Property, Plant and Equipment49
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 932.5 | $ 866.8 |
Less accumulated depreciation and amortization | 470.6 | 424.1 |
Net property, plant and equipment | 461.9 | 442.7 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11 | 10.8 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 286.4 | 237.9 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 533.7 | 530.9 |
Software Development | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 101.4 | $ 87.2 |
Schedule of Changes in Carrying
Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Beginning balance | $ 420.9 | $ 428.8 |
Acquisitions | 70 | |
Currency translation adjustment | 0.6 | (7.9) |
Ending balance | 491.5 | 420.9 |
North America | ||
Goodwill [Line Items] | ||
Beginning balance | 361 | 368.5 |
Acquisitions | 70 | |
Currency translation adjustment | 1.2 | (7.5) |
Ending balance | 432.2 | 361 |
Rest of World | ||
Goodwill [Line Items] | ||
Beginning balance | 59.9 | 60.3 |
Currency translation adjustment | (0.6) | (0.4) |
Ending balance | $ 59.3 | $ 59.9 |
Schedule of Carrying Amount of
Schedule of Carrying Amount of Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Amortizable intangible assets | $ 227.7 | $ 234.8 |
Gross Carrying Amount, Total intangible assets | 390.8 | 367 |
Accumulated Amortization, Amortizable intangible assets | (82.5) | (85) |
Net, Amortizable intangible assets | 145.2 | 149.8 |
Net, Total intangible assets | 308.3 | 291 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, indefinite-lived intangible assets | 163.1 | 141.2 |
Net, Indefinite-lived intangible assets | 163.1 | 141.2 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Amortizable intangible assets | 3.7 | 3.2 |
Accumulated Amortization, Amortizable intangible assets | (2.2) | (1.9) |
Net, Amortizable intangible assets | 1.5 | 1.3 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Amortizable intangible assets | 224 | 231.6 |
Accumulated Amortization, Amortizable intangible assets | (80.3) | (83.1) |
Net, Amortizable intangible assets | $ 143.7 | $ 148.5 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Other Intangibles [Line Items] | |||
Amortization expenses of other intangible assets | $ 13,400,000 | $ 14,200,000 | $ 14,300,000 |
Amortization of intangible assets, weighted average period, years | 13 years | ||
Annual impairment of goodwill | $ 0 | 0 | 0 |
Intangible asset impairment charge | 0 | $ 0 | $ 0 |
Annually | |||
Goodwill And Other Intangibles [Line Items] | |||
Amortization expenses of other intangible assets | $ 13,800,000 |
Debt and Lease Commitments (Det
Debt and Lease Commitments (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Debt | $ 323.6 | $ 249 |
Less long-term debt due within one year | 7.2 | 12.9 |
Long-term debt | 316.4 | 236.1 |
Revolving Credit Agreement Borrowings | ||
Debt Instrument [Line Items] | ||
Debt | 80 | 80 |
Bank Credit Lines | ||
Debt Instrument [Line Items] | ||
Debt | 23.6 | 10.2 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Debt | 85.6 | 56.8 |
Term Notes With Insurance Companies | ||
Debt Instrument [Line Items] | ||
Debt | 125.5 | 89 |
Canadian Term Notes With Insurance Companies | ||
Debt Instrument [Line Items] | ||
Debt | $ 8.9 | $ 13 |
Debt and Lease Commitments (Par
Debt and Lease Commitments (Parenthetical) (Detail) | Jan. 15, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Bank Credit Lines | |||
Debt Instrument [Line Items] | |||
Line of credit facility, average year-end interest rate | 2.40% | 1.30% | |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Line of credit facility, average year-end interest rate | 1.10% | 1.10% | |
Term Notes With Insurance Companies | |||
Debt Instrument [Line Items] | |||
Line of credit facility, average year-end interest rate | 3.50% | 3.90% | |
Debt instrument maturity | 2,030 | 2,034 | 2,034 |
Canadian Term Notes With Insurance Companies | |||
Debt Instrument [Line Items] | |||
Line of credit facility, average year-end interest rate | 5.30% | 5.30% | |
Debt instrument maturity | 2,018 | 2,018 | |
Revolving Credit Agreement Borrowings | |||
Debt Instrument [Line Items] | |||
Line of credit facility, average year-end interest rate | 1.70% | 1.50% |
Debt and Lease Commitments - Ad
Debt and Lease Commitments - Additional Information (Detail) | Nov. 28, 2016USD ($) | Jan. 15, 2015USD ($) | Dec. 31, 2016USD ($)lender | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Multi-currency revolving credit agreement | $ 500,000,000 | ||||
Number of banks involved in multi-year multi-currency revolving credit agreement | lender | 9 | ||||
Revolving credit facility, expiration date | Dec. 15, 2021 | ||||
Multi-currency revolving credit agreement, maximum amount | $ 700,000,000 | ||||
Future minimum payments under non-cancelable operating leases due, total | 37,400,000 | ||||
Rent expense, including payments under operating leases | 29,800,000 | $ 28,800,000 | $ 24,300,000 | ||
Interest paid | 7,200,000 | 6,400,000 | 5,800,000 | ||
Capitalized interest expense | $ 200,000 | $ 200,000 | $ 400,000 | ||
Term Notes With Insurance Companies | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, issued | $ 75,000,000 | ||||
Debt instrument, principle repayment commencement year | 2,020 | ||||
Debt instrument, maturity year | 2,030 | 2,034 | 2,034 | ||
Debt instrument, interest rate | 3.52% | ||||
November 2016 Term Notes with Insurance Companies | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, issued | $ 45,000,000 | ||||
Debt instrument, number of tranches | 2 | ||||
Debt instrument, principle repayment commencement year | 2,023 | ||||
November 2016 Term Notes with Insurance Companies | Tranche One | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity year | 2,029 | ||||
Debt instrument, interest rate | 2.87% | ||||
November 2016 Term Notes with Insurance Companies | Tranche Two | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity year | 2,034 | ||||
Debt instrument, interest rate | 3.10% |
Schedule of Maturities of Long
Schedule of Maturities of Long Term Debt (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Debt And Lease Commitments [Abstract] | |
2,017 | $ 7.2 |
2,018 | 7.2 |
2,019 | 0 |
2,020 | 6.8 |
2,021 | $ 196.1 |
Schedule of Future Minimum Paym
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Debt And Lease Commitments [Abstract] | |
2,017 | $ 19.5 |
2,018 | 4.5 |
2,019 | 3.4 |
2,020 | 2.3 |
2,021 | 1.9 |
Thereafter | $ 5.8 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Detail) $ / shares in Units, $ in Millions | Oct. 05, 2016 | Sep. 07, 2016 | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares |
Stockholders Equity [Line Items] | |||||
Preferred stock, shares authorized | 3,000,000 | ||||
Preferred stock, par value | $ / shares | $ 1 | ||||
Common Stock, shares authorized | 240,000,000 | ||||
Common stock, par value | $ / shares | $ 1 | ||||
Dividends paid | $ / shares | $ 0.48 | $ 0.38 | $ 0.30 | ||
Stock split ratio | 2 | 2 | |||
Stock repurchase program number of shares authorized to repurchase | 3,000,000 | 4,000,000 | |||
Stock repurchase program additional number of shares authorized | 7,000,000 | ||||
Shares repurchased | 3,273,109 | 3,816,474 | 4,309,566 | ||
Shares repurchased, value | $ | $ 135.2 | $ 128.1 | $ 103.8 | ||
Remaining authorization stock repurchase | 4,906,403 | ||||
Common Class A | |||||
Stockholders Equity [Line Items] | |||||
Common Stock, shares authorized | 27,000,000 | ||||
Common stock, par value | $ / shares | $ 5 | ||||
Shares converted into Common Stock | 60,045 | 67,544 | 136,092 | ||
Treasury stock, number of shares held | 130,380 | 130,380 | |||
Common Stock | |||||
Stockholders Equity [Line Items] | |||||
Treasury stock, number of shares held | 17,135,628 | 14,680,346 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Stockholders' Equity [Abstract] | ||
Cumulative foreign currency translation adjustments | $ (79.2) | $ (39.4) |
Unrealized net gain on cash flow derivative instruments less related income tax provision of $(0.1) in 2016 and $(0.8) in 2015 | 0.2 | 1.2 |
Pension liability less related income tax benefit of $183.4 in 2016 and $177.7 in 2015 | (284.2) | (275.2) |
Accumulated other comprehensive loss | $ (363.2) | $ (313.4) |
Schedule of Accumulated Other60
Schedule of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized net gain on cash flow derivative instruments, related income tax (provision) benefit | $ (0.1) | $ (0.8) |
Pension liability, related income tax benefit | $ 183.4 | $ 177.7 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ 1,442.3 | $ 1,381.3 | |
Balance | 1,515.3 | 1,442.3 | |
Cumulative foreign currency translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (39.4) | 3.3 | |
Other comprehensive (loss) income before reclassifications | (39.8) | (42.7) | |
Balance | (79.2) | (39.4) | |
Unrealized net gain on cash flow derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 1.2 | 0.9 | |
Other comprehensive (loss) income before reclassifications | (0.9) | 3.7 | |
Realized gains on derivatives reclassified to cost of products sold (net of tax provision of $0.1 and $2.3 in 2016 and 2015, respectively) | [1] | (0.1) | (3.4) |
Balance | 0.2 | 1.2 | |
Pension liability | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (275.2) | (276.2) | |
Other comprehensive (loss) income before reclassifications | (18.8) | (9.6) | |
Amounts reclassified from accumulated other comprehensive loss | [1] | 9.8 | 10.6 |
Balance | (284.2) | (275.2) | |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (313.4) | (272) | |
Balance | $ (363.2) | $ (313.4) | |
[1] | Amounts reclassified from accumulated other comprehensive loss: Realized gains on derivatives reclassified to cost of products sold (0.2 ) (5.7 ) Tax provision 0.1 2.3 Reclassification net of tax $ (0.1 ) $ (3.4 ) Amortization of pension items: Actuarial losses $ 17.5 (2) $ 19.0 (2) Prior year service cost (1.5 )(2) (1.4 )(2) 16.0 17.6 Tax benefit (6.2 ) (7.0 ) Reclassification net of tax $ 9.8 $ 10.6 (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 10 - Pensions and Other Post-retirement Benefits for additional details |
Changes in Accumulated Other 62
Changes in Accumulated Other Comprehensive Loss by Component (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cost of products sold | $ 1,566.6 | $ 1,526.7 | $ 1,496.7 | |
Unrealized net gain on cash flow derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Realized gains on derivatives reclassified to cost of products sold, tax provision | 0.1 | 2.3 | ||
Pension liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification, before income tax benefit | 16 | 17.6 | ||
Tax provision (benefit) | (6.2) | (7) | ||
Reclassification net of tax | [1] | (9.8) | (10.6) | |
Actuarial losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification, before income tax benefit | [2] | 17.5 | 19 | |
Prior year service cost | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification, before income tax benefit | [2] | (1.5) | (1.4) | |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized net gain on cash flow derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cost of products sold | (0.2) | (5.7) | ||
Tax provision (benefit) | (0.1) | (2.3) | ||
Reclassification net of tax | $ (0.1) | $ (3.4) | ||
[1] | Amounts reclassified from accumulated other comprehensive loss: Realized gains on derivatives reclassified to cost of products sold (0.2 ) (5.7 ) Tax provision 0.1 2.3 Reclassification net of tax $ (0.1 ) $ (3.4 ) Amortization of pension items: Actuarial losses $ 17.5 (2) $ 19.0 (2) Prior year service cost (1.5 )(2) (1.4 )(2) 16.0 17.6 Tax benefit (6.2 ) (7.0 ) Reclassification net of tax $ 9.8 $ 10.6 (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 10 - Pensions and Other Post-retirement Benefits for additional details | |||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 10 - Pensions and Other Post-retirement Benefits for additional details |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation cost recognized | $ 9.4 | $ 8.8 | $ 10.8 | |
Stock option compensation recognized | 4.5 | $ 4 | $ 4.9 | |
Aggregate intrinsic value for the outstanding options | 68.5 | |||
Aggregate intrinsic value for the exercisable options | $ 50.1 | |||
Average remaining contractual life for outstanding options, in years | 7 years | |||
Average remaining contractual life for exercisable options, in years | 6 years | |||
Weighted-average fair value per option at the date of grant | $ 8.03 | $ 8.59 | $ 8.28 | |
Number of options, exercisable at end of period | 1,602,651 | 1,544,186 | 1,865,278 | |
Number of Options, outstanding | 2,664,333 | 2,653,558 | 3,154,006 | 2,881,246 |
Total compensation expense for share units not yet recognized | $ 2.3 | |||
Weighted average period over which the expense is expected to be recognized, in months | 14 months | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | 3 years | 3 years | |
Award expiration period | 10 years | 10 years | 10 years | |
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Award expiration period | 10 years | |||
Number of Options, granted | 0 | 26,230 | ||
Number of options, exercisable at end of period | 8,320 | 0 | ||
Number of Options, outstanding | 24,940 | |||
Restricted Stock And Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | 3 years | 3 years | |
Number of Units - Granted | 160,465 | 152,192 | 221,382 | |
Value of share units at the date of issuance | $ 5.2 | $ 4.7 | $ 5.1 | |
Share based compensation expense attributable to share units | $ 4.9 | $ 4.8 | $ 5.9 | |
A.O. Smith Combined Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for granting of options, restricted stock or share units | 3,275,459 |
Changes in Option Awards All of
Changes in Option Awards All of Which Related to Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-Avg. Per Share Exercise Price, beginning period | $ 18.03 | ||
Weighted-Avg. Per Share Exercise Price, ending period | 21.69 | $ 18.03 | |
Weighted-Avg. Per Share Exercisable Price, ending period | $ 16.12 | ||
Outstanding, Beginning Balance | 2,653,558 | 3,154,006 | 2,881,246 |
Outstanding, Ending Balance | 2,664,333 | 2,653,558 | 3,154,006 |
Exercisable at End of Period | 1,602,651 | 1,544,186 | 1,865,278 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-Avg. Per Share Exercise Price - Granted | $ 31.49 | $ 23.24 | $ 17.46 |
Weighted-Avg. Per Share Exercise Price - Exercised | 4.75 | 4.10 | 4.10 |
Weighted-Avg. Per Share Exercise Price - Forfeited | 23.24 | 17.46 | 11.50 |
Weighted-Avg. Per Share Exercise Price, ending period | 4.75 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-Avg. Per Share Exercise Price - Granted | 46.93 | 25.34 | 26.47 |
Weighted-Avg. Per Share Exercise Price - Exercised | 30.77 | 17.46 | 11.50 |
Weighted-Avg. Per Share Exercise Price - Forfeited | 46.93 | $ 23.24 | $ 17.46 |
Weighted-Avg. Per Share Exercise Price, ending period | $ 46.93 | ||
Two Thousand Sixteen | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 553,370 | ||
Exercised | (531,933) | ||
Forfeited | (10,662) | ||
Aggregate Intrinsic Value, Exercised at end of Period | $ 7.5 | ||
Two Thousand Fifteen | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 484,990 | ||
Exercised | (978,208) | ||
Forfeited | (7,230) | ||
Aggregate Intrinsic Value, Exercised at end of Period | $ 10.2 | ||
Two Thousand Fourteen | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 597,500 | ||
Exercised | (316,502) | ||
Forfeited | (8,238) | ||
Aggregate Intrinsic Value, Exercised at end of Period | $ 2.6 |
Schedule of Weighted-Average In
Schedule of Weighted-Average Information by Range of Exercise Prices for Stock Options Outstanding and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding at December 31, 2016 | shares | 2,664,333 |
Options Exercisable at December 31, 2016 | shares | 1,602,651 |
$4.75 to $11.50 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, minimum | $ 4.75 |
Range of Exercise Prices, maximum | $ 11.50 |
Options Outstanding at December 31, 2016 | shares | 683,434 |
Options Outstanding, Weighted-Average Exercise Price | $ 8.31 |
Weighted Average Remaining Contractual Life, in Years | 4 years |
Options Exercisable at December 31, 2016 | shares | 683,434 |
Options Exercisable, Weighted-Average Exercise Price | $ 8.31 |
$17.46 to $25.34 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, minimum | 17.46 |
Range of Exercise Prices, maximum | $ 25.34 |
Options Outstanding at December 31, 2016 | shares | 954,074 |
Options Outstanding, Weighted-Average Exercise Price | $ 20.76 |
Weighted Average Remaining Contractual Life, in Years | 7 years |
Options Exercisable at December 31, 2016 | shares | 759,014 |
Options Exercisable, Weighted-Average Exercise Price | $ 20.12 |
$26.47 to $46.93 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, minimum | 26.47 |
Range of Exercise Prices, maximum | $ 46.93 |
Options Outstanding at December 31, 2016 | shares | 1,026,825 |
Options Outstanding, Weighted-Average Exercise Price | $ 31.36 |
Weighted Average Remaining Contractual Life, in Years | 9 years |
Options Exercisable at December 31, 2016 | shares | 160,203 |
Options Exercisable, Weighted-Average Exercise Price | $ 30.52 |
Schedule of Weighted-Average Fa
Schedule of Weighted-Average Fair Value per Option at Date of Grant (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Based Compensation [Abstract] | |||
Expected life (years) | 5 years 9 months 18 days | 5 years 10 months 24 days | 6 years |
Risk-free interest rate | 1.70% | 2.00% | 2.70% |
Dividend yield | 1.30% | 1.00% | 1.10% |
Expected volatility | 27.70% | 29.30% | 36.60% |
Summary of Share Unit Activity
Summary of Share Unit Activity Under Plan (Detail) - Restricted Stock And Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units Issued and unvested, Beginning of Period | 658,326 | ||
Number of Units - Granted | 160,465 | 152,192 | 221,382 |
Number of Units - Vested | (268,306) | ||
Number of Units - Forfeited/cancelled | (6,430) | ||
Number of Units Issued and unvested, End of Period | 544,055 | 658,326 | |
Weighted-Average Grant Date Value, Beginning of Period | $ 22.15 | ||
Weighted-Average Grant Date Value - Granted | 32.21 | ||
Weighted-Average Grant Date Value - Vested | 17.39 | ||
Weighted-Average Grant Date Value - Forfeited/cancelled | 31.81 | ||
Weighted-Average Grant Date Value, End of Period | $ 27.35 | $ 22.15 |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage match of the first one percent of contributions made by participating employees | 100.00% | |
Percentage Match Of The Next Five Percent Of Contributions Made By Participating Employees | 50.00% | |
Medical and life insurance maximum participant coverage age, in years | 65 years | |
Decrease in the service and interest components for pension cost | $ (7.1) | |
Other comprehensive (loss) gain as a result of after tax adjustments for additional minimum pension liability | $ (9) | $ 1 |
Target allocation to equity managers, minimum | 45.00% | |
Target allocation to equity managers maximum | 55.00% | |
Voluntary pension contribution | $ 30 | |
Ten Year Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of historical years for which compounded annualized returns is considered | 10 years | |
Compounded annualized return of pension plan | 5.70% | |
Twenty Five Year Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of historical years for which compounded annualized returns is considered | 25 years | |
Compounded annualized return of pension plan | 9.00% | |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated net actuarial gain that will be amortized from accumulated other comprehensive loss into net periodic benefit cost | $ 17.8 | |
Estimated net prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost | (0.4) | |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated net actuarial gain that will be amortized from accumulated other comprehensive loss into net periodic benefit cost | 0.1 | |
Estimated net prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost | $ (0.4) |
Schedule of Changes in Benefit
Schedule of Changes in Benefit Obligations, Plan Assets and Funded Status of Defined Benefit Pension and Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Change in fair value of plan assets | ||||
Plan assets at beginning of year | $ 757.2 | |||
Plan assets at end of year | 785.6 | $ 757.2 | ||
Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation (ABO) at December 31 | 894.3 | 889.4 | ||
Change in projected benefit obligations (PBO) | ||||
PBO at beginning of year | (892.9) | (956.7) | ||
Service cost | (1.8) | (1.9) | $ (7.9) | |
Interest cost | (30.6) | (37.6) | (44.7) | |
Plan amendments | (0.7) | (2.5) | ||
Actuarial (loss) gain including assumption changes | (31) | 45.6 | ||
Benefits paid | 61.2 | 60.2 | ||
PBO at end of year | (895.8) | (892.9) | (956.7) | |
Change in fair value of plan assets | ||||
Plan assets at beginning of year | 759 | 823.9 | ||
Actual return on plan assets | 57 | (5.3) | ||
Contribution by the company | 32.2 | 0.5 | ||
Benefits paid | (61.2) | (60.1) | ||
Plan assets at end of year | 787 | 759 | 823.9 | |
Funded status | (108.8) | (133.9) | ||
Current liabilities | (0.5) | (1.8) | ||
Non-current liabilities | (108.3) | (132.1) | ||
Net pension liability at end of year | [1] | (108.8) | (133.9) | |
Net actuarial loss (gain) | 473.5 | 461.3 | ||
Prior service cost | (0.9) | (2.6) | ||
Total recognized in accumulated other comprehensive loss | 472.6 | 458.7 | ||
Post-Retirement Benefits | ||||
Change in projected benefit obligations (PBO) | ||||
PBO at beginning of year | (6.6) | (10.4) | ||
Service cost | (0.1) | (0.1) | (0.1) | |
Interest cost | (0.2) | (0.3) | (0.5) | |
Participant contributions | (0.2) | |||
Plan amendments | 3.7 | |||
Actuarial (loss) gain including assumption changes | (0.2) | |||
Benefits paid | 0.5 | 0.7 | ||
PBO at end of year | (6.6) | (6.6) | $ (10.4) | |
Change in fair value of plan assets | ||||
Contribution by the company | 0.5 | 0.5 | ||
Participant contributions | 0.2 | |||
Benefits paid | (0.5) | (0.7) | ||
Funded status | (6.6) | (6.6) | ||
Current liabilities | (0.4) | (0.4) | ||
Non-current liabilities | (6.2) | (6.2) | ||
Net pension liability at end of year | (6.6) | (6.6) | ||
Net actuarial loss (gain) | (2) | (2.4) | ||
Prior service cost | (2.9) | (3.3) | ||
Total recognized in accumulated other comprehensive loss | $ (4.9) | $ (5.7) | ||
[1] | In addition, the Company has a liability for a foreign pension plan of $0.2 million and $0.3 million at December 31, 2016 and 2015, respectively. |
Schedule of Changes in Benefi70
Schedule of Changes in Benefit Obligations, Plan Assets and Funded Status of Defined Benefit Pension and Post-Retirement Benefit Plans (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Liability on foreign pension plan | $ 0.2 | $ 0.3 |
Components of Company's Net Pen
Components of Company's Net Pension Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Total recognized in other comprehensive loss | $ 9 | $ (1) | $ (3.8) |
Pension Plans, Defined Benefit | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Service cost | 1.8 | 1.9 | 7.9 |
Interest cost | 30.6 | 37.6 | 44.7 |
Expected return on plan assets | (55.9) | (57.5) | (60.3) |
Net actuarial loss (gain) | 17.7 | 19.1 | 35.1 |
Prior service cost | (1.1) | (1) | (1) |
Curtailment and other one-time charges | 2.2 | ||
Defined-benefit plan (income) cost | (6.9) | 0.1 | 28.6 |
Various U.S. defined contribution plans cost | 11.6 | 10.8 | 6.1 |
Defined Benefit Plan And Defined Contribution Plan Periodic Benefit Cost, Total | 4.7 | 10.9 | 34.7 |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive loss Net actuarial loss | 29.9 | 17.2 | 33.4 |
Amortization of net actuarial (loss) gain | (17.7) | (19.1) | (37.3) |
Prior service cost | 0.6 | 2.5 | |
Amortization of prior service cost | 1.1 | 1 | 1 |
Total recognized in other comprehensive loss | 13.9 | 1.6 | (2.9) |
Total recognized in net periodic cost (benefit) and other comprehensive loss | 7 | 1.7 | 25.7 |
Post-Retirement Benefits | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 0.2 | 0.3 | 0.5 |
Net actuarial loss (gain) | (0.2) | (0.1) | (0.4) |
Prior service cost | (0.4) | (0.4) | |
Defined-benefit plan (income) cost | (0.3) | (0.1) | 0.2 |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive loss Net actuarial loss | 0.2 | ||
Amortization of net actuarial (loss) gain | 0.2 | 0.1 | 0.3 |
Prior service cost | (3.7) | ||
Amortization of prior service cost | 0.4 | 0.4 | |
Total recognized in other comprehensive loss | 0.8 | (3.2) | 0.3 |
Total recognized in net periodic cost (benefit) and other comprehensive loss | $ 0.5 | $ (3.3) | $ 0.5 |
Actuarial Assumptions Used to D
Actuarial Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.15% | 4.40% |
Average salary increases | 4.00% | 4.00% |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.33% | 4.55% |
Average salary increases | 4.00% | 4.00% |
Assumptions Used to Determine N
Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.40% | 4.05% | 4.85% |
Expected long-term return on plan assets | 7.50% | 7.75% | 7.75% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Post-Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.55% | 4.00% | 4.70% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Health Care Cost Trend Rates (D
Health Care Cost Trend Rates (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension And Other Post-Retirement Benefits | ||
Health care cost trend rate assumed for next year | 6.50% | 6.75% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,021 | 2,021 |
Weighted Asset Allocations by A
Weighted Asset Allocations by Asset Category (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Pension And Other Post-Retirement Benefits | ||
Average Assets Allocation | 100.00% | 100.00% |
Equity Securities | ||
Pension And Other Post-Retirement Benefits | ||
Average Assets Allocation | 48.00% | 47.00% |
Debt Securities | ||
Pension And Other Post-Retirement Benefits | ||
Average Assets Allocation | 37.00% | 39.00% |
Real estate | ||
Pension And Other Post-Retirement Benefits | ||
Average Assets Allocation | 10.00% | 9.00% |
Private equity | ||
Pension And Other Post-Retirement Benefits | ||
Average Assets Allocation | 4.00% | 5.00% |
Other | ||
Pension And Other Post-Retirement Benefits | ||
Average Assets Allocation | 1.00% |
Fair Value Measurement of Plan
Fair Value Measurement of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | $ 785.6 | $ 757.2 | |
Non-investment plan assets | 1.4 | 1.8 | |
Total plan assets | 787 | 759 | |
Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 28.7 | 13.8 | |
Equity Securities | Commingled Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 105.6 | 109.6 | |
Equity Securities | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 254 | 238.6 | |
Fixed Income Securities | Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 102.6 | 91.6 | |
Fixed Income Securities | Commingled Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 90.3 | 84.1 | |
Fixed Income Securities | US Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 97.6 | 114.3 | |
Other Investments | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 28 | 34.3 | |
Other Investments | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 74.3 | 70.9 | |
Other Investments | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 4.5 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 352.7 | 354.3 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 1.1 | 1.4 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Equity Securities | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 254 | 238.6 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Fixed Income Securities | US Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 97.6 | 114.3 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 310.9 | 285.3 | |
Significant Other Observable Inputs (Level 2) | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 7.9 | ||
Significant Other Observable Inputs (Level 2) | Equity Securities | Commingled Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 105.6 | 109.6 | |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 102.6 | 91.6 | |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | Commingled Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 90.3 | 84.1 | |
Significant Other Observable Inputs (Level 2) | Other Investments | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 4.5 | ||
Significant Non-observable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 122 | 117.6 | $ 119.6 |
Significant Non-observable Inputs (Level 3) | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 19.7 | 12.4 | 20.7 |
Significant Non-observable Inputs (Level 3) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 74.3 | 70.9 | $ 64.1 |
Significant Non-observable Inputs (Level 3) | Other Investments | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | 28 | 34.3 | |
Significant Non-observable Inputs (Level 3) | Other Investments | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan asset investments | $ 74.3 | $ 70.9 |
Reconciliation of Fair Value Me
Reconciliation of Fair Value Measurements Using Significant Unobservable Inputs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at beginning of year | $ 757.2 | |
Plan assets at end of year | 785.6 | $ 757.2 |
Significant Non-observable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at beginning of year | 117.6 | 119.6 |
Relating to assets still held at the reporting date | (2.1) | 6.7 |
Relating to assets sold during the period | 9.3 | 7.8 |
Purchases, sales and settlements | (2.8) | (16.5) |
Plan assets at end of year | 122 | 117.6 |
Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at beginning of year | 13.8 | |
Plan assets at end of year | 28.7 | 13.8 |
Short-term Investments | Significant Non-observable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at beginning of year | 12.4 | 20.7 |
Purchases, sales and settlements | 7.3 | (8.3) |
Plan assets at end of year | 19.7 | 12.4 |
Real estate funds | Significant Non-observable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at beginning of year | 70.9 | 64.1 |
Relating to assets still held at the reporting date | 3.4 | 6.8 |
Plan assets at end of year | 74.3 | 70.9 |
Private equity | Significant Non-observable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at beginning of year | 34.3 | 34.8 |
Relating to assets still held at the reporting date | (5.5) | (0.1) |
Relating to assets sold during the period | 9.3 | 7.8 |
Purchases, sales and settlements | (10.1) | (8.2) |
Plan assets at end of year | $ 28 | $ 34.3 |
Estimated Future Payments (Deta
Estimated Future Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 60.2 |
2,018 | 67.6 |
2,019 | 60.1 |
2,020 | 66.4 |
2,021 | 59.2 |
2022 - 2026 | 284.4 |
Post-Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 0.4 |
2,018 | 0.4 |
2,019 | 0.4 |
2,020 | 0.4 |
2,021 | 0.4 |
2022 - 2026 | $ 2.1 |
Schedule of Summary by Currency
Schedule of Summary by Currency of Foreign Currency Forward Contracts (Detail) - Foreign currency forward contracts - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Buy | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contractual amounts of foreign currency forward contracts | $ 42,300,000 | $ 34,000,000 |
Buy | Euro | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contractual amounts of foreign currency forward contracts | 25,400,000 | 21,300,000 |
Buy | Mexican peso | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contractual amounts of foreign currency forward contracts | 16,900,000 | 12,700,000 |
Sell | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contractual amounts of foreign currency forward contracts | 59,900,000 | 45,800,000 |
Sell | British pound | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contractual amounts of foreign currency forward contracts | 1,200,000 | 900,000 |
Sell | Canadian dollar | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contractual amounts of foreign currency forward contracts | 56,900,000 | 43,200,000 |
Sell | Euro | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Contractual amounts of foreign currency forward contracts | $ 1,800,000 | $ 1,700,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Commodity Futures Contracts | |
Trading Activity, Gains and Losses, Net [Line Items] | |
Reclassification period for effective portion of contract, in years | 1 year |
Impact of Derivative Contracts
Impact of Derivative Contracts on Company's Financial Statements (Detail) - Designated as Hedging Instrument - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, total | $ 0.4 | $ 2 |
Foreign Currency Contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 1.9 | 3.6 |
Foreign Currency Contracts | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, liabilities | (2) | (1.3) |
Commodities Contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, assets | 0.8 | |
Commodities Contracts | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments, liabilities | $ (0.3) | $ (0.3) |
Schedule of Effect of Derivativ
Schedule of Effect of Derivative Instruments on Consolidated Statement of Earnings (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Amount of gain/(loss) recognized in other comprehensive loss on derivative (effective portion) | $ (1.4) | $ 6.2 |
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into earnings (effective portion) | 0.2 | 5.7 |
Amount of gain recognized in earnings on a derivative (ineffective portion) | 0 | 0 |
Foreign Currency Contracts | ||
Derivative [Line Items] | ||
Amount of gain/(loss) recognized in other comprehensive loss on derivative (effective portion) | (3.8) | 6.9 |
Amount of gain recognized in earnings on a derivative (ineffective portion) | 0 | 0 |
Foreign Currency Contracts | Cost Of Products Sold | ||
Derivative [Line Items] | ||
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into earnings (effective portion) | (1.4) | 6.2 |
Commodities Contracts | ||
Derivative [Line Items] | ||
Amount of gain/(loss) recognized in other comprehensive loss on derivative (effective portion) | 2.4 | (0.7) |
Commodities Contracts | Cost Of Products Sold | ||
Derivative [Line Items] | ||
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into earnings (effective portion) | 1.6 | (0.5) |
Amount of gain recognized in earnings on a derivative (ineffective portion) | $ 0 | $ 0 |
Components of Provision for Inc
Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
Current, Federal | $ 71.6 | $ 82.9 | $ 48.7 |
Current, State | 14.5 | 13.9 | 10.4 |
Current, International | 34.9 | 23.6 | 22.4 |
Deferred, Federal | 11 | (4.2) | (5.2) |
Deferred, State | 5.2 | 2.2 | (0.2) |
Deferred, International | (1.2) | 1.2 | 2.8 |
Provision for income taxes | $ 136 | $ 119.6 | $ 78.9 |
Difference Between Provision Fo
Difference Between Provision For Income Taxes And U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
Provision at U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 2.80% | 2.60% | 2.30% |
U.S. manufacturing credit | (1.50%) | (1.30%) | (2.10%) |
Research tax credits | (0.30%) | (0.30%) | (0.40%) |
Excess tax benefit on stock compensation | (1.10%) | ||
Other | 0.40% | 0.30% | 0.50% |
Effective Income Tax Rate Reconciliation, Percent, Total | 29.40% | 29.70% | 27.50% |
State Administration of Taxation, China | |||
Income Taxes | |||
International income tax rate differential | (6.20%) | (6.80%) | (8.20%) |
Other | |||
Income Taxes | |||
International income tax rate differential | 0.30% | 0.20% | 0.40% |
Components of Earning Before In
Components of Earning Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
U.S. | $ 300.9 | $ 255.7 | $ 150.6 |
International | 161.6 | 146.8 | 136.1 |
Earnings before income taxes | $ 462.5 | $ 402.5 | $ 286.7 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Total taxes paid | $ 117,400,000 | $ 97,500,000 | $ 88,900,000 |
Undistributed earnings of foreign subsidiaries | 982,200,000 | ||
Undistributed foreign earnings reinvested | 828,200,000 | ||
Cash and cash equivalents and marketable securities were held by foreign subsidiaries | 751,700,000 | ||
Unrecognized tax benefits that would affect the effective tax rate, if recognized | 600,000 | ||
Anticipated decrease in unrecognized tax benefits | $ 0 | ||
State and local | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examinations, years under examination | 2,001 | ||
State and local | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examinations, years under examination | 2,016 | ||
Non-U.S. | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examinations, years under examination | 2,008 | ||
Non-U.S. | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examinations, years under examination | 2,016 | ||
U.S. federal | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examinations, years under examination | 2,014 | ||
U.S. federal | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examinations, years under examination | 2,016 | ||
Accounting Standards Update 2015-17 | Restatement Adjustment | |||
Income Tax Contingency [Line Items] | |||
Deferred income tax assets, non-current | 39,900,000 | ||
Deferred income tax assets, current | $ (39,900,000) | ||
Discontinued Operations | |||
Income Tax Contingency [Line Items] | |||
Additional income tax accrual | $ 42,300,000 |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences of Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes | ||
Employee benefits, Assets | $ 67.5 | $ 75 |
Product liability and warranties, Assets | 67.1 | 66.8 |
Inventories, Assets | 0 | 0 |
Accounts receivable, Assets | 14.9 | 13 |
Property, plant and equipment, Assets | 0 | 0 |
Intangibles, Assets | 0 | 0 |
Environmental, Assets | 2.9 | 2.7 |
Undistributed foreign earnings, Assets | 0 | 0 |
Tax loss and credit carryovers, Assets | 18.2 | 14.6 |
All other, Assets | 4.3 | 3.4 |
Valuation allowance, Assets | (13.1) | (11) |
Assets | 161.8 | 164.5 |
Employee benefits, Liabilities | 0 | 0 |
Product liability and warranties, Liabilities | 0 | 0 |
Inventories, Liabilities | 3.4 | 4.4 |
Accounts receivable, Liabilities | 0 | 0 |
Property, plant and equipment, Liabilities | 34.3 | 36.9 |
Intangibles, Liabilities | 77.4 | 54.3 |
Environmental, Liabilities | 0 | 0 |
Undistributed foreign earnings, Liabilities | 42.3 | 47.9 |
Tax loss and credit carryovers, Liabilities | 0 | 0 |
All other, Liabilities | 0 | 0 |
Valuation allowance, Liabilities | 0 | 0 |
All other, Liabilities | 157.4 | 143.5 |
Net asset | $ 4.4 | $ 21 |
Reconciliation of Tax Loss Carr
Reconciliation of Tax Loss Carryovers, Credit Carryovers and Valuation Allowances (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | ||
Net Operating Losses and Tax Credits, Beginning balance | $ 14.6 | $ 14.9 |
Net Operating Losses and Tax Credits, Additions | 3.7 | 1.4 |
Net Operating Losses and Tax Credits, Reductions | (0.1) | (1.7) |
Net Operating Losses and Tax Credits, Ending balance | 18.2 | 14.6 |
Balance at Beginning of Year | 11 | |
Balance at End of Year | 13.1 | 11 |
Valuation Allowance For Deferred Tax Assets | ||
Income Taxes | ||
Balance at Beginning of Year | 11 | 9.8 |
Valuation Allowances, Additions | 2.1 | 1.4 |
Valuation Allowances, Reductions | (0.2) | |
Balance at End of Year | $ 13.1 | $ 11 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | ||
Balance at January 1 | $ 2.6 | $ 1.2 |
Additions for tax positions of prior years | 1.6 | 1.4 |
Balance at December 31 | $ 4.2 | $ 2.6 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Line Items] | ||
Product liability insurance for individual losses in excess of accrual amount | $ 125,000,000 | $ 125,000,000 |
Amounts in excess to be covered by third party insurance | $ 7,500,000 | $ 7,500,000 |
Operations by Segment - Additio
Operations by Segment - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reporting segments | Segment | 2 | ||||||||||
Sales to a largest customer | $ 698.1 | $ 683.9 | $ 667 | $ 636.9 | $ 639.4 | $ 625.1 | $ 653.5 | $ 618.5 | $ 2,685.9 | $ 2,536.5 | $ 2,356 |
North America | Geographic Concentration Risk | Customer one | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales to a largest customer | 311.5 | 301.7 | 296.5 | ||||||||
North America | Geographic Concentration Risk | Customer Two | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales to a largest customer | $ 280.8 | $ 287 | $ 237.2 | ||||||||
North America | Sales Revenue, Goods, Net | Geographic Concentration Risk | Customer one | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration Risk, Percentage | 12.00% | 12.00% | 13.00% | ||||||||
North America | Sales Revenue, Goods, Net | Geographic Concentration Risk | Customer Two | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration Risk, Percentage | 11.00% | 11.00% | 10.00% |
Schedule of Operating Earnings
Schedule of Operating Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 698.1 | $ 683.9 | $ 667 | $ 636.9 | $ 639.4 | $ 625.1 | $ 653.5 | $ 618.5 | $ 2,685.9 | $ 2,536.5 | $ 2,356 |
Operating earnings | 515 | 452.9 | 345.3 | ||||||||
Other income (expense) | 9.4 | 10.8 | 5.2 | ||||||||
Interest expense | (7.3) | (7.4) | (5.7) | ||||||||
Earnings before income taxes | 462.5 | 402.5 | 286.7 | ||||||||
Provision for income taxes | (136) | (119.6) | (78.9) | ||||||||
Earnings from continuing operations | $ 82.7 | $ 83.2 | $ 87.1 | $ 73.5 | $ 79.8 | $ 73.6 | $ 71.1 | $ 58.4 | 326.5 | 282.9 | 207.8 |
Inter-segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (22.9) | (32.6) | (34) | ||||||||
Operating earnings | (0.1) | ||||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other income (expense) | (45.2) | (43) | (52.9) | ||||||||
North America | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,743.2 | 1,703 | 1,621.7 | ||||||||
Operating earnings | 385.9 | 339.9 | 238.7 | ||||||||
Rest of World | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 965.6 | 866.1 | 768.3 | ||||||||
Operating earnings | $ 129.1 | $ 113 | $ 106.7 |
Assets, Depreciation And Capita
Assets, Depreciation And Capital Expenditure By Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 2,891 | $ 2,629.2 | $ 2,498.1 |
Depreciation and amortization | 65.1 | 63 | 59.8 |
Capital expenditures | 80.7 | 72.7 | 86.1 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 790.8 | 703.9 | 615.8 |
Depreciation and amortization | 1.2 | 1.3 | 2 |
Capital expenditures | 0.5 | 0.8 | 0.2 |
North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,515.9 | 1,381.1 | 1,358.5 |
Depreciation and amortization | 42.9 | 41.9 | 37.8 |
Capital expenditures | 45.9 | 43.5 | 59.4 |
Rest of World | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 584.3 | 544.2 | 523.8 |
Depreciation and amortization | 21 | 19.8 | 20 |
Capital expenditures | $ 34.3 | $ 28.4 | $ 26.5 |
Net Sales and Long-Lived Assets
Net Sales and Long-Lived Assets by Geographic Location (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived Assets | $ 528.2 | $ 513 | $ 528.2 | $ 513 | $ 491.2 | ||||||
Net sales | 698.1 | $ 683.9 | $ 667 | $ 636.9 | 639.4 | $ 625.1 | $ 653.5 | $ 618.5 | 2,685.9 | 2,536.5 | 2,356 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived Assets | 292.4 | 297.8 | 292.4 | 297.8 | 285.4 | ||||||
Net sales | 1,570.7 | 1,531.4 | 1,447.9 | ||||||||
China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived Assets | 184.3 | 157.3 | 184.3 | 157.3 | 144 | ||||||
Net sales | 887.1 | 787.1 | 691.8 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived Assets | 3.1 | 2.7 | 3.1 | 2.7 | 3.5 | ||||||
Net sales | 138.7 | 129.9 | 128.8 | ||||||||
Other Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived Assets | $ 48.4 | $ 55.2 | 48.4 | 55.2 | 58.3 | ||||||
Net sales | $ 89.4 | $ 88.1 | $ 87.5 |
Quarterly Financial Information
Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information [Line Items] | |||||||||||
Net sales | $ 698.1 | $ 683.9 | $ 667 | $ 636.9 | $ 639.4 | $ 625.1 | $ 653.5 | $ 618.5 | $ 2,685.9 | $ 2,536.5 | $ 2,356 |
Gross profit | 289.6 | 283.3 | 283.7 | 262.7 | 262.6 | 255.6 | 262.4 | 229.2 | 1,119.3 | 1,009.8 | 859.3 |
Net earnings | $ 82.7 | $ 83.2 | $ 87.1 | $ 73.5 | $ 79.8 | $ 73.6 | $ 71.1 | $ 58.4 | $ 326.5 | $ 282.9 | $ 207.8 |
Basic earnings per share | $ 0.48 | $ 0.48 | $ 0.50 | $ 0.42 | $ 0.45 | $ 0.42 | $ 0.40 | $ 0.33 | $ 1.87 | $ 1.59 | $ 1.15 |
Diluted earnings per share | 0.47 | 0.47 | 0.49 | 0.41 | 0.45 | 0.41 | 0.40 | 0.32 | $ 1.85 | $ 1.58 | $ 1.14 |
Common dividends declared | $ 0.120 | $ 0.120 | $ 0.120 | $ 0.120 | $ 0.095 | $ 0.095 | $ 0.095 | $ 0.095 |