WATTS WATER TECHNOLOGIES INC, 10-Q filed on 8/5/2021
Quarterly Report
v3.21.2
Document and Entity Information - shares
6 Months Ended
Jun. 27, 2021
Jul. 25, 2021
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 27, 2021  
Entity File Number 001-11499  
Entity Registrant Name WATTS WATER TECHNOLOGIES INC  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 04-2916536  
Entity Address, Address Line One 815 Chestnut Street  
Entity Address, City or Town North Andover  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 01845  
City Area Code 978  
Local Phone Number 688-1811  
Title of 12(b) Security Class A common stock, par value $0.10 per share  
Trading Symbol WTS  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0000795403  
Amendment Flag false  
Class A    
Entity Common Stock, Shares Outstanding   27,566,371
Class B    
Entity Common Stock, Shares Outstanding   6,074,290
v3.21.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 27, 2021
Dec. 31, 2020
CURRENT ASSETS:    
Cash and cash equivalents $ 240.1 $ 218.9
Trade accounts receivable, less reserve allowances of $11.4 million at June 27, 2021 and $11.1 million at December 31, 2020 256.7 197.6
Raw materials 108.4 79.6
Work in process 20.0 16.1
Finished goods 185.1 167.9
Total Inventories 313.5 263.6
Prepaid expenses and other current assets 33.6 29.4
Total Current Assets 843.9 709.5
PROPERTY, PLANT AND EQUIPMENT    
Property, plant and equipment, at cost 612.2 608.6
Accumulated depreciation (405.2) (396.3)
Property, plant and equipment, net 207.0 212.3
OTHER ASSETS:    
Goodwill 599.1 602.4
Intangible assets, net 133.9 141.8
Deferred income taxes 8.7 4.4
Other, net 62.7 67.8
TOTAL ASSETS 1,855.3 1,738.2
CURRENT LIABILITIES:    
Accounts payable 155.6 110.1
Accrued expenses and other liabilities 172.7 137.4
Accrued compensation and benefits 67.5 65.3
Total Current Liabilities 395.8 312.8
LONG-TERM DEBT, NET OF CURRENT PORTION 191.5 198.2
DEFERRED INCOME TAXES 49.7 51.1
OTHER NONCURRENT LIABILITIES 100.4 106.3
STOCKHOLDERS' EQUITY:    
Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding
Additional paid-in capital 618.1 606.3
Retained earnings 605.6 560.1
Accumulated other comprehensive loss (109.2) (100.0)
Total Stockholders' Equity 1,117.9 1,069.8
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,855.3 1,738.2
Class A    
STOCKHOLDERS' EQUITY:    
Common Stock 2.8 2.8
Class B    
STOCKHOLDERS' EQUITY:    
Common Stock $ 0.6 $ 0.6
v3.21.2
Consolidated Balance Sheets (Parenthetical)
$ in Millions
Jun. 27, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Trade accounts receivable, reserve allowances | $ $ 11.4 $ 11.1
Preferred Stock, par value (in dollars per share) | $ / shares $ 0.10 $ 0.10
Preferred Stock, shares authorized 5,000,000 5,000,000
Preferred Stock, shares issued 0 0
Preferred Stock, shares outstanding 0 0
Class A    
Common Stock, par value (in dollars per share) | $ / shares $ 0.10 $ 0.10
Common Stock, shares authorized 120,000,000 120,000,000
Common Stock, votes per share (Number of votes) 1 1
Common Stock, issued shares 27,577,110 27,478,512
Common Stock, outstanding shares 27,577,110 27,478,512
Class B    
Common Stock, par value (in dollars per share) | $ / shares $ 0.10 $ 0.10
Common Stock, shares authorized 25,000,000 25,000,000
Common Stock, votes per share (Number of votes) 10 10
Common Stock, issued shares 6,074,290 6,144,290
Common Stock, outstanding shares 6,074,290 6,144,290
v3.21.2
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Consolidated Statements of Operations        
Net sales $ 467.0 $ 338.7 $ 880.3 $ 721.3
Cost of goods sold 266.9 203.8 506.5 423.6
GROSS PROFIT 200.1 134.9 373.8 297.7
Selling, general and administrative expenses 130.4 97.6 244.2 212.6
Restructuring 17.0 5.3 17.3 5.3
Other long-lived asset impairment charge   1.0   1.0
OPERATING INCOME 52.7 31.0 112.3 78.8
Other (income) expense:        
Interest income   (0.1)   (0.2)
Interest expense 1.5 4.0 3.5 7.0
Other expense (income), net (0.5) (0.4) (0.8) (0.1)
Total other expense 1.0 3.5 2.7 6.7
INCOME BEFORE INCOME TAXES 51.7 27.5 109.6 72.1
Provision for income taxes 14.2 7.3 30.4 19.9
NET INCOME $ 37.5 $ 20.2 $ 79.2 $ 52.2
Basic EPS        
NET INCOME PER SHARE $ 1.11 $ 0.60 $ 2.34 $ 1.54
Weighted average number of shares 33.8 33.8 33.8 33.9
Diluted EPS        
NET INCOME PER SHARE $ 1.11 $ 0.59 $ 2.34 $ 1.53
Weighted average number of shares 33.9 34.0 33.9 34.0
Dividends declared per share $ 0.26 $ 0.23 $ 0.49 $ 0.46
v3.21.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Consolidated Statements of Comprehensive Income        
Net income $ 37.5 $ 20.2 $ 79.2 $ 52.2
Other comprehensive income (loss) net of tax:        
Foreign currency translation adjustments 5.8 10.0 (8.3) (6.5)
Cash flow hedges (0.8) (0.3) (0.9) (1.2)
Other comprehensive income (loss) 5.0 9.7 (9.2) (7.7)
Comprehensive income $ 42.5 $ 29.9 $ 70.0 $ 44.5
v3.21.2
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Millions
Class A
Common Stock
Class B
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total
Balance at the beginning of the period at Dec. 31, 2019 $ 2.8 $ 0.6 $ 591.5 $ 513.9 $ (130.8) $ 978.0
Balance (in shares) at Dec. 31, 2019 27,586,416 6,279,290        
Increase (Decrease) in Stockholders' Equity            
Net income       52.2   52.2
Other comprehensive income         (7.7) (7.7)
Comprehensive income           44.5
Shares of Class B common stock converted to Class A common stock (in shares) 50,000 (50,000)        
Stock-based compensation     5.4     5.4
Stock repurchase       (21.1)   (21.1)
Stock repurchase (in shares) (253,535)          
Net change in restricted stock and performance stock units     2.0 (7.8)   (5.8)
Net change in restricted and performance stock units (in shares) 78,952          
Common stock dividends       (15.8)   (15.8)
Balance at the end of the period at Jun. 28, 2020 $ 2.8 $ 0.6 598.9 521.4 (138.5) 985.2
Balance (in shares) at Jun. 28, 2020 27,461,833 6,229,290        
Balance at the beginning of the period at Mar. 29, 2020 $ 2.8 $ 0.6 597.1 515.5 (148.2) 967.8
Balance (in shares) at Mar. 29, 2020 27,544,757 6,229,290        
Increase (Decrease) in Stockholders' Equity            
Net income       20.2   20.2
Other comprehensive income         9.7 9.7
Comprehensive income           29.9
Stock-based compensation     1.8     1.8
Stock repurchase       (6.4)   (6.4)
Stock repurchase (in shares) (78,828)          
Net change in restricted stock and performance stock units       (0.1)   (0.1)
Net change in restricted and performance stock units (in shares) (4,096)          
Common stock dividends       (7.8)   (7.8)
Balance at the end of the period at Jun. 28, 2020 $ 2.8 $ 0.6 598.9 521.4 (138.5) 985.2
Balance (in shares) at Jun. 28, 2020 27,461,833 6,229,290        
Increase (Decrease) in Stockholders' Equity            
Change in accounting principle           560.1
Balance at the beginning of the period at Dec. 31, 2020 $ 2.8 $ 0.6 606.3 560.1 (100.0) 1,069.8
Balance (in shares) at Dec. 31, 2020 27,478,512 6,144,290        
Increase (Decrease) in Stockholders' Equity            
Net income       79.2   79.2
Other comprehensive income         (9.2) (9.2)
Comprehensive income           70.0
Shares of Class B common stock converted to Class A common stock (in shares) 70,000 (70,000)        
Shares of Class A common stock issued upon the exercise of stock options (in shares) 112          
Stock-based compensation     9.9     9.9
Stock repurchase       (7.8)   (7.8)
Stock repurchase (in shares) (62,070)          
Net change in restricted stock and performance stock units     1.9 (9.2)   (7.3)
Net change in restricted and performance stock units (in shares) 90,556          
Common stock dividends       (16.7)   (16.7)
Balance at the end of the period at Jun. 27, 2021 $ 2.8 $ 0.6 618.1 605.6 (109.2) 1,117.9
Balance (in shares) at Jun. 27, 2021 27,577,110 6,074,290        
Balance at the beginning of the period at Mar. 28, 2021 $ 2.8 $ 0.6 611.0 581.0 (114.2) 1,081.2
Balance (in shares) at Mar. 28, 2021 27,585,082 6,124,290        
Increase (Decrease) in Stockholders' Equity            
Net income       37.5   37.5
Other comprehensive income         5.0 5.0
Comprehensive income           42.5
Shares of Class B common stock converted to Class A common stock (in shares) 50,000 (50,000)        
Shares of Class A common stock issued upon the exercise of stock options (in shares) 112          
Stock-based compensation     7.1     7.1
Stock repurchase       (4.0)   (4.0)
Stock repurchase (in shares) (30,917)          
Net change in restricted and performance stock units (in shares) (27,167)          
Common stock dividends       (8.9)   (8.9)
Balance at the end of the period at Jun. 27, 2021 $ 2.8 $ 0.6 $ 618.1 $ 605.6 $ (109.2) 1,117.9
Balance (in shares) at Jun. 27, 2021 27,577,110 6,074,290        
Increase (Decrease) in Stockholders' Equity            
Change in accounting principle           $ 605.6
v3.21.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
6 Months Ended
Jun. 27, 2021
Jun. 28, 2020
OPERATING ACTIVITIES    
Net income $ 79.2 $ 52.2
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation 16.0 15.3
Amortization of intangibles 7.3 7.6
Loss on disposal and impairment of property, plant and equipment and other 0.7 1.3
Stock-based compensation 9.9 5.4
Deferred income tax (4.8) 1.9
Changes in operating assets and liabilities, net of effects from business acquisitions and divestitures:    
Accounts receivable (60.8) 9.2
Inventories (52.1) (14.3)
Prepaid expenses and other assets (7.5) (1.3)
Accounts payable, accrued expenses and other liabilities 85.3 (30.0)
Net cash provided by operating activities 73.2 47.3
INVESTING ACTIVITIES    
Additions to property, plant and equipment (13.0) (23.8)
Proceeds from sale of property, plant, and equipment 4.9 1.5
Net cash used in investing activities (8.1) (22.3)
FINANCING ACTIVITIES    
Proceeds from long-term borrowings 35.0 407.5
Payments of long-term debt (40.0) (452.5)
Payments for withholding taxes on vested awards (9.2) (7.8)
Payments for finance leases and other (0.6) (1.0)
Debt issuance costs (2.4) (2.2)
Payments to repurchase common stock (7.8) (21.1)
Dividends (16.7) (15.8)
Net cash used in financing activities (41.7) (92.9)
Effect of exchange rate changes on cash and cash equivalents (2.2) (3.1)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 21.2 (71.0)
Cash and cash equivalents at beginning of year 218.9 219.7
CASH AND CASH EQUIVALENTS AT END OF PERIOD 240.1 148.7
NON CASH INVESTING AND FINANCING ACTIVITIES    
Issuance of stock under management stock purchase plan 0.5 0.7
CASH PAID FOR:    
Interest 3.9 7.2
Income taxes $ 31.1 $ 12.4
v3.21.2
Basis of Presentation
6 Months Ended
Jun. 27, 2021
Basis of Presentation  
Basis of Presentation

1. Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the Watts Water Technologies, Inc. (“the Company”) Consolidated Balance Sheet as of June 27, 2021, the Consolidated Statements of Operations for the second quarters and six months ended June 27, 2021 and June 28, 2020, the Consolidated Statements of Comprehensive Income for the second quarters and six months ended June 27, 2021 and June 28, 2020, the Consolidated Statements of Stockholders’ Equity for the second quarters and six months ended June 27, 2021 and June 28, 2020, and the Consolidated Statements of Cash Flows for the six months ended June 27, 2021 and June 28, 2020.

The consolidated balance sheet at December 31, 2020 has been derived from the audited consolidated financial statements at that date. The accounting policies followed by the Company are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The financial statements included in this report should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021, and may be further impacted by the effects of the Coronavirus Disease 2019 (“COVID-19”) global pandemic.

The Company operates on a 52-week fiscal year ending on December 31, with each quarter, except the fourth quarter, ending on a Sunday.  Any quarterly data contained in this Quarterly Report on Form 10-Q generally reflect the results of operations for a 13-week period.

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The COVID-19 pandemic has created uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 continues to impact the Company’s business, results of operations and financial condition will depend on future developments, which are uncertain and difficult to predict. We are not aware of any specific event or circumstance that would require updates to the Company’s estimates or judgments or require the Company to revise the carrying value of the Company’s assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change as new events occur and additional information is obtained. Actual results could differ from those estimates.

v3.21.2
Accounting Policies
6 Months Ended
Jun. 27, 2021
Accounting Policies  
Accounting Policies

2. Accounting Policies

The significant accounting policies used in preparation of these consolidated financial statements for the second quarter ended June 27, 2021 are consistent with those discussed in Note 2 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Recently Adopted Accounting Standards

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The effective date

for adoption of this ASU is the calendar year beginning January 1, 2021 with early adoption permitted. The Company adopted this standard in the first quarter of 2021, and it did not have a material impact on the Company’s financial statements.

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company adopted this standard in the second quarter of 2021, and it did not have a material impact on the Company’s financial statements.

Shipping and Handling

Shipping and handling costs included in selling, general and administrative expenses amounted to $17.5 million and $12.5. million for the second quarters of 2021 and 2020, respectively, and were $32.9 million and $26.5 million for the first six months of 2021 and 2020, respectfully.

Research and Development

Research and development costs included in selling, general and administrative expenses amounted to $11.0 million and $9.8. million for the second quarters of 2021 and 2020, respectively and were $21.8 million and $21.3 million for the first six months of 2021 and 2020, respectfully.

v3.21.2
Revenue Recognition
6 Months Ended
Jun. 27, 2021
Revenue Recognition  
Revenue Recognition

3. Revenue Recognition

The Company is a leading supplier of products that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial and residential markets of the Americas, Europe, and Asia-Pacific, Middle East, and Africa (“APMEA”). For over 140 years, the Company has designed and produced valve systems that safeguard and regulate water systems, energy efficient heating and hydronic systems, drainage systems and water filtration technology that helps purify and conserve water.

The Company distributes products through four primary distribution channels: wholesale, original equipment manufacturers (OEMs), specialty, and do-it-yourself (DIY). The Company operates in three geographic segments: Americas, Europe, and APMEA. Each of these segments sells similar products, which are comprised of the following principal product lines:

Residential & commercial flow control products—includes products typically sold into plumbing and hot water applications such as backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves and leak detection products.
HVAC & gas products—includes commercial high-efficiency boilers, water heaters and heating solutions, hydronic and electric heating systems for under-floor radiant applications, custom heat and hot water solutions, hydronic pump groups for boiler manufacturers and alternative energy control packages, and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. HVAC is an acronym for heating, ventilation and air conditioning.
Drainage & water re-use products—includes drainage products and engineered rain water harvesting solutions for commercial, industrial, marine and residential applications.
Water quality products—includes point-of-use and point-of-entry water filtration, conditioning and scale prevention systems for commercial, marine and residential applications.

The following table disaggregates revenue, which is presented as net sales in the financial statements, for each reportable segment, by distribution channel and principal product line:

For the second quarter ended June 27, 2021

For the six months ended June 27, 2021

(in millions)

(in millions)

Distribution Channel

Americas

Europe

APMEA

Consolidated

Americas

Europe

APMEA

Consolidated

Wholesale

$

177.3

$

88.5

$

21.4

$

287.2

$

334.7

$

169.5

$

38.0

$

542.2

OEM

24.1

 

47.4

 

1.6

 

73.1

44.6

 

88.4

 

2.6

 

135.6

Specialty

86.1

 

 

0.1

 

86.2

160.2

 

 

0.1

 

160.3

DIY

 

19.6

 

0.9

 

 

20.5

 

40.4

 

1.8

 

 

42.2

Total

$

307.1

$

136.8

$

23.1

$

467.0

$

579.9

$

259.7

$

40.7

$

880.3

For the second quarter ended June 27, 2021

For the six months ended June 27, 2021

(in millions)

(in millions)

Principal Product Line

Americas

Europe

APMEA

Consolidated

Americas

Europe

APMEA

Consolidated

Residential & Commercial Flow Control

$

177.2

$

51.8

$

18.6

$

247.6

$

339.5

$

99.1

$

33.3

$

471.9

HVAC and Gas Products

77.6

 

60.9

 

3.6

 

142.1

143.5

 

115.1

 

5.9

 

264.5

Drainage and Water Re-use Products

25.2

 

22.5

 

0.5

 

48.2

43.8

 

42.7

 

0.9

 

87.4

Water Quality Products

 

27.1

 

1.6

 

0.4

 

29.1

 

53.1

 

2.8

 

0.6

 

56.5

Total

$

307.1

$

136.8

$

23.1

$

467.0

$

579.9

$

259.7

$

40.7

$

880.3

For the second quarter ended June 28, 2020

For the six months ended June 28, 2020

(in millions)

(in millions)

Distribution Channel

Americas

Europe

APMEA

Consolidated

Americas

Europe

APMEA

Consolidated

Wholesale

$

130.8

$

55.1

$

11.2

$

197.1

$

278.1

$

130.2

$

20.5

$

428.8

OEM

16.7

 

32.5

 

0.6

 

49.8

36.2

 

67.1

 

0.8

 

104.1

Specialty

72.0

 

 

1.4

 

73.4

150.5

 

 

1.9

 

152.4

DIY

 

17.9

 

0.5

 

 

18.4

 

35.0

 

1.0

 

 

36.0

Total

$

237.4

$

88.1

$

13.2

$

338.7

$

499.8

$

198.3

$

23.2

$

721.3

For the second quarter ended June 28, 2020

For the six months ended June 28, 2020

(in millions)

(in millions)

Principal Product Line

Americas

Europe

APMEA

Consolidated

Americas

Europe

APMEA

Consolidated

Residential & Commercial Flow Control

$

130.7

$

30.7

$

8.9

$

170.3

$

279.4

$

71.7

$

17.0

$

368.1

HVAC and Gas Products

63.0

 

38.5

 

4.0

 

105.5

130.6

 

82.9

 

5.6

 

219.1

Drainage and Water Re-use Products

19.3

 

18.1

 

 

37.4

37.8

 

42.0

 

0.1

 

79.9

Water Quality Products

 

24.4

 

0.8

 

0.3

 

25.5

 

52.0

 

1.7

 

0.5

 

54.2

Total

$

237.4

$

88.1

$

13.2

$

338.7

$

499.8

$

198.3

$

23.2

$

721.3

The Company generally considers customer purchase orders, which in some cases are governed by master sales agreements, to represent the contract with a customer. The Company’s contracts with customers are generally for products only and typically do not include other performance obligations such as professional services, extended warranties, or other material rights. In situations where sales are to a distributor, the Company has concluded that its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. As the Company’s standard payment terms are less than one year, the Company has elected not to assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e., when the

Company’s performance obligation is satisfied), which typically occurs at shipment from the Company’s manufacturing site or distribution center, or delivery to the customer’s named location. In certain circumstances, revenue from shipments to retail customers is recognized only when the product is consumed by the customer, as based on the terms of the arrangement, transfer of control is not satisfied until that point in time. In determining whether control has transferred, the Company considers if there is a present right to payment, physical possession and legal title, along with risks and rewards of ownership having transferred to the customer. In certain circumstances, the Company manufactures customized product without alternative use for its customers. However, as these arrangements do not entitle the Company a right to payment of cost plus a profit for work completed, the Company has concluded that revenue recognition at the point in time control transfers is appropriate and not over time recognition.

At times, the Company receives orders for products to be delivered over multiple dates that may extend across reporting periods. The Company invoices for each delivery upon shipment and recognizes revenues for each distinct product delivered, assuming transfer of control has occurred. As scheduled delivery dates are within one year, under the optional exemption provided by the guidance, revenues allocated to future shipments of partially completed contracts are not disclosed.

The Company generally provides an assurance warranty that its products will substantially conform to the published specification. The Company’s liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial. The Company does not consider activities related to such warranty, if any, to be a separate performance obligation. For certain of its products, the Company will separately sell extended warranty and service policies to its customers. The Company considers these extended warranties and service policies to be separate performance obligations. These policies typically are for periods ranging from one to three years. Payments received are deferred and recognized over the policy period. For all periods presented, the revenue recognized and the revenue deferred under these policies is not material to the consolidated financial statements.

The timing of revenue recognition, billings and cash collections from the Company’s contracts with customers can vary based on the payment terms and conditions in the customer contracts. In some cases, customers will partially prepay for their goods; in other cases, after appropriate credit evaluations, payment is due in arrears. In addition, there are constraints which cause variability in the ultimate consideration to be recognized. These constraints typically include early payment discounts, volume rebates, rights of return, cooperative advertising, and market development funds. The Company includes these constraints in the estimated transaction price when there is a basis to reasonably estimate the amount of variable consideration. These estimates are based on historical experience, anticipated future performance and the Company’s best judgment at the time. When the timing of the Company’s recognition of revenue is different from the timing of payments made by the customer, the Company recognizes either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Contracts with payment in arrears are recognized as receivables. The opening and closing balances of the Company’s contract assets and contract liabilities are as follows:

Contract

Contract

Contract

Assets

Liabilities - Current

Liabilities - Noncurrent

(in millions)

Balance - January 1, 2021

$

$

13.5

$

2.5

Change in period

1.0

(0.2)

Balance - March 28, 2021

$

$

14.5

$

2.3

Change in period

0.1

Balance - June 27, 2021

$

$

14.5

$

2.4

Balance - January 1, 2020

$

0.4

$

11.5

$

2.9

Change in period

(0.1)

0.2

(0.1)

Balance - March 29, 2020

$

0.3

$

11.7

$

2.8

Change in period

(0.1)

Balance - June 28, 2020

$

0.3

$

11.7

$

2.7

The amount of revenue recognized during the second quarter and six months ended June 27, 2021 that was included in the opening contract liability balance was $4.7 million and $8.5 million, respectively. The amount of revenue recognized during the second quarter and six months ended June 28, 2020 that was included in the opening contract liability balance was $2.5 million and $4.8 million, respectfully. This revenue consists primarily of revenue recognized for shipments of product which had been prepaid as well as the amortization of extended warranty and service policy revenue. The Company did not recognize any material revenue from obligations satisfied in prior periods. There were no impairment losses related to contract assets for the second quarters and six months ended June 27, 2021 and June 28, 2020.

The Company incurs costs to obtain and fulfill a contract; however, the Company has elected to recognize all incremental costs to obtain a contract as an expense when incurred if the amortization period is one year or less. The Company has elected to treat shipping and handling activities performed after the customer has obtained control of the related goods as a fulfillment cost and the related cost is accrued for in conjunction with the recording of revenue for the goods.

v3.21.2
Goodwill & Intangibles
6 Months Ended
Jun. 27, 2021
Goodwill & Intangibles  
Goodwill & Intangibles

4. Goodwill & Intangibles

The Company operates in three geographic segments: Americas, Europe, and APMEA. The changes in the carrying amount of goodwill by geographic segment are as follows:

June 27, 2021

Gross Balance

Accumulated Impairment Losses

Net Goodwill

Acquired

Foreign

Balance

During

Currency

Balance

Balance

Impairment

Balance

January 1,

the

Translation

June 27,

January 1,

Loss During

June 27,

June 27,

    

2021

      

Period

     

and Other

      

2021

      

2021

      

the Period

     

2021

      

2021

(in millions)

Americas

$

482.5

$

0.3

$

482.8

$

(24.5)

$

(24.5)

$

458.3

Europe

 

252.1

 

 

(3.3)

 

248.8

 

(129.7)

 

 

(129.7)

 

119.1

APMEA

 

34.9

 

 

(0.3)

 

34.6

 

(12.9)

 

 

(12.9)

 

21.7

Total

$

769.5

$

(3.3)

$

766.2

$

(167.1)

$

(167.1)

$

599.1

December 31, 2020

Gross Balance

Accumulated Impairment Losses

Net Goodwill

Acquired

Foreign

Balance

During

Currency

Balance

Balance

Impairment

Balance

January 1,

the

Translation

December 31,

January 1,

Loss During

December 31,

December 31,

    

2020

    

Period

    

and Other

    

2020

    

2020

    

the Period

    

2020

    

2020

(in millions)

Americas

$

476.8

$

5.5

$

0.2

$

482.5

$

(24.5)

$

$

(24.5)

$

458.0

Europe

 

241.4

 

 

10.7

 

252.1

 

(129.7)

 

 

(129.7)

 

122.4

APMEA

 

30.0

 

3.9

 

1.0

 

34.9

 

(12.9)

 

 

(12.9)

 

22.0

Total

$

748.2

$

9.4

$

11.9

$

769.5

$

(167.1)

$

$

(167.1)

$

602.4

Goodwill and indefinite-lived intangible assets are tested for impairment at least annually or more frequently if events or circumstances indicate that it is “more likely than not” that they might be impaired, such as from a change in business conditions. The Company performs its annual goodwill and indefinite-lived intangible assets impairment assessment in the fourth quarter of each year. At the most recent annual impairment test which occurred in the fourth quarter of 2020, the Company performed qualitative fair value assessments, including an evaluation of certain key assumptions for all seven of its reporting units. The Company concluded that the fair value of all seven reporting units exceeded their carrying values at that time.

Intangible assets include the following:

June 27, 2021

December 31, 2020

Gross

Net

Gross

Net

Carrying

Accumulated

Carrying

Carrying

Accumulated

Carrying

    

Amount

    

Amortization

    

Amount

    

Amount

    

Amortization

    

Amount

(in millions)

Patents

$

16.1

$

(16.1)

$

$

16.1

$

(16.0)

$

0.1

Customer relationships

 

236.0

 

(170.0)

 

66.0

 

236.2

 

(165.8)

 

70.4

Technology

 

58.0

 

(38.5)

 

19.5

 

58.0

 

(36.4)

 

21.6

Trade names

 

27.0

 

(15.9)

 

11.1

 

27.0

 

(15.1)

 

11.9

Other

 

4.3

 

(3.7)

 

0.6

 

4.3

 

(3.7)

 

0.6

Total amortizable intangibles

 

341.4

 

(244.2)

 

97.2

 

341.6

 

(237.0)

 

104.6

Indefinite-lived intangible assets

 

36.7

 

 

36.7

 

37.2

 

 

37.2

$

378.1

$

(244.2)

$

133.9

$

378.8

$

(237.0)

$

141.8

Aggregate amortization expense for amortized intangible assets for the second quarters ended June 27, 2021 and June 28, 2020 was $3.4 million and $3.8 million, respectfully, and for the first six months of 2021 and 2020 was $7.3 million and $7.6 million, respectively.

v3.21.2
Financial Instruments and Derivative Instruments
6 Months Ended
Jun. 27, 2021
Financial Instruments and Derivative Instruments  
Financial Instruments and Derivative Instruments

5. Financial Instruments and Derivative Instruments

Fair Value

The carrying amounts of cash and cash equivalents, trade receivables and trade payables approximate fair value because of the short maturity of these financial instruments. The fair value of the Company’s borrowings under the Second Amended and Restated Credit Agreement entered into on March 30, 2021 (the “Second Amended Credit Agreement”) approximate their carrying value.

Financial Instruments

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including deferred compensation plan assets and related liabilities, contingent consideration, and derivatives. The fair values of these financial assets and liabilities were determined using the following inputs at June 27, 2021 and December 31, 2020:

Fair Value Measurement at June 27, 2021 Using:

Quoted Prices in Active

Significant Other

Significant

Markets for Identical

Observable

Unobservable

Assets

Inputs

Inputs

    

Total

    

(Level 1)

    

(Level 2)

    

(Level 3)

(in millions)

Assets

Plan asset for deferred compensation(1)

$

2.5

$

2.5

$

$

Interest rate swaps(1)

$

0.1

$

$

0.1

$

Total assets

$

2.6

$

2.5

$

0.1

$

Liabilities

Interest rate swaps(3)

$

0.8

$

$

0.8

$

Plan liability for deferred compensation(2)

$

2.5

$

2.5

$

$

Designated foreign currency hedges(3)

$

0.3

$

$

0.3

$

Contingent consideration(4)

$

3.9

$

$

$

3.9

Total liabilities

$

7.5

$

2.5

$

1.1

$

3.9

Fair Value Measurements at December 31, 2020 Using:

Quoted Prices in Active

Significant Other

Significant

Markets for Identical

Observable

Unobservable

    

Assets

Inputs

 Inputs

Total

    

(Level 1)

    

(Level 2)

    

(Level 3)

(in millions)

Assets

Plan asset for deferred compensation(1)

$

2.5

$

2.5

$

$

Total assets

$

2.5

$

2.5

$

$

Liabilities

Interest rate swaps(3)

$

0.6

0.6

Plan liability for deferred compensation(2)

$

2.5

$

2.5

$

$

Designated foreign currency hedge(3)

$

0.1

$

$

0.1

$

Contingent consideration(4)

$

3.2

$

$

$

3.2

Total liabilities

$

6.4

$

2.5

$

0.7

$

3.2

(1)

Included on the Company’s consolidated balance sheet in other assets (other, net).

(2)

Included on the Company’s consolidated balance sheet in accrued compensation and benefits.

(3)Included on the Company’s consolidated balance sheet in accrued expenses and other liabilities.

(4)Included on the Company’s consolidated balance sheet in other noncurrent liabilities and relates to contingent consideration as part of the acquisition of Australian Valve Group Pty Ltd (“AVG”).

The table below provides a summary of the changes in fair value of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period December 31, 2020 to June 27, 2021.

Total realized and unrealized

Balance

(gains) losses included in:

Balance

December 31,

Net earnings

Comprehensive

June 27,

    

2020

    

Settlements

    

Purchases

    

adjustments

    

income

    

2021

(in millions)

Contingent consideration

$

3.2

$

0.8

$

(0.1)

$

3.9

In connection with the immaterial acquisition of AVG completed during the third quarter of 2020, a contingent liability of $2.8 million was recognized as the estimate of the acquisition date fair value of the contingent consideration. This liability was classified as Level 3 under the fair value hierarchy as it was based on the probability of achievement of future performance metrics as of the date of the acquisition, which was not observable in the market. Failure to meet the performance metrics would reduce this liability to zero, while complete achievement would increase the liability to a maximum contingent consideration of $4.5 million. The liability as of the second quarter ended June 27, 2021 was $3.9 million after increasing the liability by $0.8 million during the quarter due to increased probability of achieving higher performance metrics.

Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase and consist primarily of money market funds, for which the carrying amount is a reasonable estimate of fair value.

The Company uses financial instruments from time to time to enhance its ability to manage risk, including foreign currency and commodity pricing exposures, which exist as part of its ongoing business operations. The use of derivatives exposes the Company to counterparty credit risk for nonperformance and to market risk related to changes in currency exchange rates and commodity prices. The Company manages its exposure to counterparty credit risk through diversification of counterparties. The Company’s counterparties in derivative transactions are substantial commercial banks with significant experience using such derivative instruments. The impact of market risk on the fair value and cash flows of the Company’s derivative instruments is monitored and the Company restricts the use of derivative financial instruments to hedging activities. The Company does not enter into contracts for trading purposes nor does the Company enter into any contracts for speculative purposes. The use of derivative instruments is approved by senior management under written guidelines.

Interest Rate Swaps

On March 30, 2021, the Company entered into the Second Amended Credit Agreement. The Second Amended Credit Agreement amends the Amended Credit Agreement to extend the maturity date of the $800 million senior unsecured revolving credit facility from February 12, 2022 to March 30, 2026. The senior unsecured revolving credit facility under the Second Amended Credit Agreement (the "New Revolving Credit Facility") also includes sublimits of $100 million for letters of credit and $15 million for swing line loans. Borrowings outstanding under the New Revolving Credit Facility will bear interest at a fluctuating rate per annum as further detailed in Note 11.

In order to manage the Company’s exposure to changes in cash flows attributable to fluctuations in LIBOR-indexed interest payments related to the Company’s floating rate debt, the Company entered into an interest rate swap on March 30, 2021. Under the interest rate swap agreement, the Company receives the one-month USD-LIBOR subject to a 0.00% floor and pays a fixed rate of 1.02975% on a notional amount of $100.0 million. The swap matures on March 30, 2026. The Company formally documents the hedge relationships at hedge inception to ensure that its interest rate swaps qualify for hedge accounting. On a quarterly basis, the Company assesses whether the interest rate swap is highly effective in offsetting changes in the cash flow of the hedged item. The Company does not hold or issue interest rate swaps for trading purposes. The swaps are designated as cash flow hedges. For the second quarter and six months ended June 27, 2021 a loss of $0.5 million was recorded in Accumulated Other Comprehensive Loss to recognize the effective portion of the fair value of the interest rate swap that qualifies as a cash flow hedge.

On February 12, 2016, the Company entered into a Credit Agreement (the “Prior Credit Agreement”) pursuant to which it received a funding commitment under a Term Loan of $300 million, and a Revolving Commitment (“Revolver”) of $500 million. For each facility, the Company could choose either an Adjusted LIBOR or Alternative Base Rate (“ABR”). Accordingly, the Company’s earnings and cash flows were exposed to interest rate risk from changes in Adjusted LIBOR. In order to manage the Company’s exposure to changes in cash flows attributable to fluctuations in LIBOR-indexed interest payments related to the Company’s floating rate debt, the Company entered into two interest rate swaps. For each interest rate swap, the Company received the three-month USD-LIBOR subject to a 0.00% floor and paid a fixed rate of 1.31375% on a notional amount of $225.0 million. The swaps were expected to mature on the same date as the Prior Credit Agreement on February 12, 2021, and were designated as cash flow hedges. On April 24, 2020, the Company entered into an Amended and Restated Credit Agreement (the “Amended Credit Agreement”). The Amended Credit Agreement amended and restated the Prior Credit Agreement in its entirety while increasing the amount of revolving credit available from $500 million to $800 million, and extending the maturity by one additional year to February 2022. As part of the Amended Credit Agreement, the LIBOR rate was subject to a 1.00% floor as opposed to a 0.00% floor in the Prior Credit Agreement. The change in the LIBOR floor in the Amended Credit Agreement caused the interest rate swaps to no longer be considered highly effective in offsetting changes in the cash flow of the hedged item, as critical terms of the Amended Credit Agreement no longer matched the hedged item. As a result, the cash flow hedges no longer qualified for hedge accounting as of the date of execution of the Amended Credit Agreement. The Company subsequently began recognizing the mark-to-market fair value adjustments on a monthly basis in the consolidated statement of operations and continued to do so through the expiration date of the swaps, which occurred on February 12, 2021. For the first quarter ended March 28, 2021 an immaterial amount was recorded into interest expense related to the change in mark-to-market fair value adjustments.

Designated Foreign Currency Hedges

The Company’s foreign subsidiaries transact most business, including certain intercompany transactions, in foreign currencies. Such transactions are principally purchases or sales of materials. The Company has exposure to a number of foreign currencies, including the Canadian dollar, the euro, and the Chinese yuan. The Company uses a layering methodology, whereby at the end of each quarter, the Company enters into forward exchange contracts hedging Canadian dollar to U.S. dollar, which hedge approximately 80% to 85% of the forecasted intercompany purchase transactions between one of the Company’s Canadian subsidiaries and the Company’s U.S. operating subsidiaries for the next twelve months. The Company uses a similar layering methodology when entering into forward exchange contracts hedging U.S. dollar to the Chinese yuan, which hedge up to 60% of the forecasted intercompany sales transactions between one of the Company’s Chinese subsidiaries and one of the Company’s U.S. operating subsidiaries for the next twelve months. As of June 27, 2021, all designated foreign exchange hedge contracts were cash flow hedges under ASC 815, Derivatives and Hedging. The Company records the effective portion of the designated foreign currency hedge contracts in other comprehensive income until inventory turns and is sold to a third-party. Once the third-party transaction associated with the hedged forecasted transaction occurs, the effective portion of any related gain or loss on

the designated foreign currency hedge is reclassified into earnings within cost of goods sold. In the event the notional amount of the derivatives exceeds the forecasted intercompany purchases for a given month, the excess hedge position will be attributed to the following month’s forecasted purchases. However, if the following month’s forecasted purchases cannot absorb the excess hedge position from the current month, the effective portion of the hedge recorded in other comprehensive income will be reclassified to earnings.

The notional amounts outstanding as of June 27, 2021 for the Canadian dollar to U.S. dollar contracts and the U.S. dollar to the Chinese yuan contracts were $15.9 million and $7.6 million, respectively. The fair value of the Company’s designated foreign hedge contracts outstanding as of June 27, 2021 was a liability of $0.3 million. As of June 27, 2021, the amount expected to be reclassified into cost of goods sold from other comprehensive income in the next twelve months is a loss of $0.3 million.

v3.21.2
Restructuring and Other Charges, Net
6 Months Ended
Jun. 27, 2021
Restructuring and Other Charges, Net  
Restructuring and Other Charges, Net

6. Restructuring and Other Charges, Net

The Company’s Board of Directors approves all major restructuring programs that may involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, the Company takes additional restructuring actions, including involuntary terminations that are not part of a major program. The Company accounts for these costs in the period in which the liability is incurred. These costs are included in restructuring charges in the Company’s consolidated statements of operations.

A summary of the pre-tax cost by restructuring program is as follows:

Second Quarter Ended

Six Months Ended

   

June 27,

         

June 28,

         

June 27,

         

June 28,

    

2021

         

2020

         

2021

         

2020

(in millions)

Restructuring costs:

2021 France Actions

$

18.0

$

$

18.0

$

Other Actions

 

(1.0)

 

5.3

 

(0.7)

 

5.3

Total restructuring charges

$

17.0

$

5.3

$

17.3

$

5.3

The Company recorded pre-tax restructuring costs in its business segments as follows:

Second Quarter Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

    

2021

2020

2021

2020

(in millions)

Americas

$

(0.7)

$

4.6

$

(0.7)

$

4.6

Europe

 

17.9

 

(0.3)

 

17.9

 

(0.3)

APMEA

 

(0.2)

 

0.9

 

0.1

 

0.9

Corporate

0.1

0.1

Total

$

17.0

$

5.3

$

17.3

$

5.3

2021 France Actions

On June 25, 2021, the Board of Directors approved a restructuring program with respect to the Company’s operating facilities in France, within its Europe operating segment. The restructuring program is expected to include the shutdown of the Company’s manufacturing facility in Méry, France and the consolidation of that facility’s operations primarily into the Company’s facilities in Virey-le-Grand and Hautvillers, France. The program is expected to include pre-tax charges totaling approximately $26.3 million, including costs for severance, relocation, clean-up and certain asset write-downs, and result in the elimination of approximately 80 positions at the Méry, France facility. As a result of the facility consolidations, the net headcount reduction in France is expected to be approximately 50 positions. Total net after-tax charges for this restructuring program are expected to be approximately $19.0 million (including approximately $2.0 million in non-cash charges), with costs being incurred through the second half of 2022, at which time the restructuring program is expected to be completed. The Company expects to spend approximately $1.0 million in capital expenditures to consolidate operations. Annual cash savings, net of tax, are estimated to be approximately $3.0 million, which the Company expects to fully realize by 2023.

The following table summarizes by type, the total expected, incurred and remaining pre-tax restructuring costs for the Company’s restructuring program related to the 2021 France Actions:

    

Facility

Legal and

Asset

exit

    

Severance

     

consultancy

     

write-downs

     

and other

     

Total

(in millions)

Costs incurred — second quarter 2021

 

$

16.9

 

$

0.6

 

$

 

$

0.5

 

$

18.0

Remaining costs to be incurred

4.6

2.2

1.5

8.3

Total expected restructuring costs

 

$

21.5

$

0.6

$

2.2

$

2.0

 

$

26.3

Details of the restructuring reserve activity for the Company’s 2021 France Actions for the period ended June 27, 2021 are as follows:

Facility

Legal and

Asset

exit

    

Severance

    

consultancy

    

write-downs

    

and other

    

Total

(in millions)

Balance at March 28, 2021

$

$

$

$

$

Net pre-tax restructuring charges

16.9

0.6

0.5

18.0

Utilization and foreign currency impact

(0.3)

(0.2)

(0.5)

Balance at June 27, 2021

$

16.6

$

0.4

$

$

0.5

$

17.5

Other Actions

The Company periodically initiates other actions which are not part of a major program. Included in “Other Actions” for the second quarter ended June 28, 2020, were actions taken in the Americas, Europe and APMEA segments and Corporate primarily in response to the COVID-19 pandemic. During the second quarter ended June 27, 2021, total pre-tax charges for the 2020 Other Actions were reduced by approximately $1.0 million due to revised estimates for severance costs, health benefits and outplacement support. This resulted in total expected program restructuring charges of approximately $9.9 million, of which $9.6 million had been expensed through the period ended June 27, 2021. The remaining expected costs relate to facility exit and other exit costs and are expected to be completed in the second half of 2021. The restructuring reserve associated with these actions as of June 27, 2021 was approximately $2.0 million and primarily related to severance benefits.

v3.21.2
Earnings per Share and Stock Repurchase Program
6 Months Ended
Jun. 27, 2021
Earnings per Share and Stock Repurchase Program  
Earnings per Share and Stock Repurchase Program

7. Earnings per Share and Stock Repurchase Program

The following tables set forth the reconciliation of the calculation of earnings per share:

For the Second Quarter Ended June 27, 2021

For the Second Quarter Ended June 28, 2020

 

Income

Shares

Per Share

Income

Shares

Per Share

    

(Numerator)

    

(Denominator)

    

Amount

    

(Numerator)

    

(Denominator)

    

Amount

 

(Amounts in millions, except per share information)

 

Basic EPS:

Net income

$

37.5

33.8

$

1.11

$

20.2

33.8

$

0.60

Effect of dilutive securities:

Common stock equivalents

0.1

 

0.2

(0.01)

Diluted EPS:

Net income

$

37.5

33.9

$

1.11

$

20.2

 

34.0

$

0.59

For the Six Months Ended June 27, 2021

For the Six Months Ended June 28, 2020

Income

Shares

Per Share

Income

Shares

Per Share

    

(Numerator)

      

(Denominator)

      

Amount

     

(Numerator)

      

(Denominator)

      

Amount

(Amounts in millions, except per share information)

Basic EPS:

Net income

$

79.2

33.8

$

2.34

$

52.2

33.9

$

1.54

Effect of dilutive securities:

Common stock equivalents

0.1

 

0.1

(0.01)

Diluted EPS:

Net income

$

79.2

33.9

$

2.34

$

52.2

 

34.0

$

1.53

There were no options to purchase Class A common stock outstanding during the second quarters and six months ended June 27, 2021 or June 28, 2020 that would have been anti-dilutive.

On February 6, 2019, the Company’s Board of Directors authorized the repurchase of up to $150 million of the Company’s Class A common stock, to be purchased from time to time on the open market or in privately negotiated transactions. For the stock repurchase program, the Company entered into Rule 10b5-1 plans, which permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time, subject to the terms of the Rule 10b5-1 plans the Company entered into with respect to the repurchase program. As of June 27, 2021, there was $105.6 million remaining authorized for share repurchases under the $150 million program.

For the second quarters ended June 27, 2021 and June 28, 2020, the Company repurchased 30,917 shares for $4.0 million and 78,828 shares for $6.4 million, respectively. For the first six months of 2021 and 2020, the Company repurchased 62,070 shares for $7.8 million and 253,535 shares for $21.1 million, respectively.

v3.21.2
Stock-Based Compensation
6 Months Ended
Jun. 27, 2021
Stock-Based Compensation  
Stock-Based Compensation

8. Stock-Based Compensation

The Company issued 52,230 and 80,052 shares of restricted stock and deferred stock awards during the first six months of 2021 and 2020, respectively. The Company grants shares of deferred stock awards to key employees and restricted stock awards to non-employee members of the Company’s Board of Directors under the 2004 Stock Incentive Plan. Stock awards to employees typically vest over a three-year period and awards to non-employee members of the Company’s Board of Directors vest immediately.

The Company also grants performance stock units to key employees under the 2004 Stock Incentive Plan. Performance stock units vest in their entirety at the end of a performance period set by the Compensation Committee of the Board of Directors at the time of grant, which is currently three years. Upon vesting, the number of shares of the Company’s Class A common stock awarded to each performance stock unit recipient will be determined based on the Company’s performance relative to certain performance goals set at the time the performance stock units were granted. The performance stock units are amortized to expense over the vesting period, and based on the Company’s performance relative to the performance goals, which may be adjusted with changes to the related expense recorded in the period of adjustment. If the performance goals are not met, no awards are earned and previously recognized compensation expense is reversed. The Company granted 46,774 and 73,106 performance stock units during the first six months of 2021 and 2020, respectively.

Under the Management Stock Purchase Plan (“MSPP”), the Company granted 24,690 and 27,495 of restricted stock units (“RSUs”) during the first six months of 2021 and 2020, respectively. The MSPP allows for the granting of RSUs to key employees. On an annual basis, key employees may elect to receive a portion of their annual incentive compensation in RSUs instead of cash. Participating employees may use up to 50% of their annual incentive bonus to purchase RSUs for a purchase price equal to 80% of the fair market value of the Company’s Class A common stock as of the date of grant.

The fair value of each share issued under the MSPP is estimated on the date of grant, using the Black-Scholes-Merton Model, based on the following weighted average assumptions:

    

2021

    

2020

    

Expected life (years)

3.0

3.0

Expected stock price volatility

 

32.7

%  

24.6

%  

Expected dividend yield

 

0.75

%  

1.1

%  

Risk-free interest rate

 

0.3

%  

0.6

%  

The risk-free interest rate is based upon the U.S. Treasury yield curve at the time of grant for the respective expected life of the RSUs. The expected life (estimated period of time outstanding) of RSUs and volatility were calculated using historical data. The expected dividend yield of stock is the Company’s best estimate of the expected future dividend yield.

The above assumptions were used to determine the weighted average grant-date fair value of the discount on RSUs granted in 2021 and 2020 of $37.12 and $22.36, respectively.

A more detailed description of each of these plans can be found in Note 13 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

v3.21.2
Segment Information
6 Months Ended
Jun. 27, 2021
Segment Information  
Segment Information

9. Segment Information

The Company operates in three geographic segments: Americas, Europe, and APMEA. Each of these segments sells similar products and has separate financial results that are reviewed by the Company’s chief operating decision-maker. Each segment earns revenue and income almost exclusively from the sale of its products. The Company sells its products into various end markets around the world, with sales by region based upon location of the entity recording the sale. See Note 3 for further detail on the product lines sold into by region. All intercompany sales transactions have been eliminated. The accounting policies for each segment are the same as those described in Note 2 above and in Note 2 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The following is a summary of the Company’s significant accounts and balances by segment, reconciled to its consolidated totals:

Second Quarter Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

    

2021

    

2020

    

2021

    

2020

(in millions)

Net sales

    

    

    

    

Americas

$

307.1

$

237.4

$

579.9

$

499.8

Europe

 

136.8

 

88.1

 

259.7

 

198.3

APMEA

 

23.1

 

13.2

 

40.7

 

23.2

Consolidated net sales

$

467.0

$

338.7

$

880.3

$

721.3

Operating income (loss)

Americas

$

55.2

$

29.5

$

103.7

$

72.9

Europe

 

5.4

 

9.2

 

24.9

 

22.9

APMEA

 

4.3

 

0.8

 

6.6

 

0.7

Subtotal reportable segments

 

64.9

 

39.5

 

135.2

 

96.5

Corporate(*)

 

(12.2)

 

(8.5)

 

(22.9)

 

(17.7)

Consolidated operating income

 

52.7

 

31.0

 

112.3

 

78.8

Interest income

 

 

(0.1)

 

 

(0.2)

Interest expense

 

1.5

 

4.0

 

3.5

 

7.0

Other income, net

 

(0.5)

 

(0.4)

 

(0.8)

 

(0.1)

Income before income taxes

$

51.7

$

27.5

$

109.6

$

72.1

Capital expenditures

Americas

$

4.8

$

11.1

$

7.2

$

17.7

Europe

 

2.9

 

3.8

 

5.2

 

6.0

APMEA

 

0.6

 

 

0.6

 

0.1

Consolidated capital expenditures

$

8.3

$

14.9

$

13.0

$

23.8

Depreciation and amortization

Americas

$

7.4

$

7.5

$

15.1

$

14.9

Europe

 

3.0

 

3.5

 

6.3

 

6.9

APMEA

 

1.1

 

0.5

 

1.9

 

1.1

Consolidated depreciation and amortization

$

11.5

$

11.5

$

23.3

$

22.9

Identifiable assets (at end of period)

Americas

$

1,127.2

$

1,079.0

Europe

 

586.7

 

479.7

APMEA

 

141.4

 

89.6

Consolidated identifiable assets

$

1,855.3

$

1,648.3

Property, plant and equipment, net (at end of period)

Americas

$

120.6

$

123.9

Europe

 

81.5

 

77.8

APMEA

 

4.9

 

5.2

Consolidated property, plant and equipment, net

$

207.0

$

206.9

*     Corporate expenses are primarily for administrative compensation expense, compliance costs, professional fees, including corporate-related legal and audit expenses, shareholder services and benefit administration costs.

The above operating segments are presented on a basis consistent with the presentation included in the Company’s December 31, 2020 consolidated financial statements included in its Annual Report on Form 10-K.

The U.S. property, plant and equipment of the Company’s Americas segment was $116.0 million and $120.0 million at June 27, 2021 and June 28, 2020, respectively.

The following includes U.S. net sales of the Company’s Americas segment:

Second Quarter Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

    

2021

    

2020

    

2021

    

2020

(in millions)

U.S. net sales

$

285.0

$

222.6

$

539.4

$

469.3

The following includes intersegment sales for Americas, Europe and APMEA:

Second Quarter Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

    

2021

    

2020

    

2021

    

2020

(in millions)

Intersegment Sales

    

    

    

    

Americas

$

2.5

$

2.9

$

4.9

$

5.5

Europe

 

8.5

 

5.3

 

16.2

 

9.5

APMEA

 

37.1

 

21.0

 

63.4

 

34.5

Intersegment sales

$

48.1

$

29.2

$

84.5

$

49.5

v3.21.2
Accumulated Other Comprehensive Loss
6 Months Ended
Jun. 27, 2021
Accumulated Other Comprehensive Loss  
Accumulated Other Comprehensive Loss

10. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consists of the following:

    

    

    

Accumulated 

Foreign

Other

Currency

Cash Flow

Comprehensive

    

Translation

    

Hedges (1)

    

Loss

(in millions)

Balance December 31, 2020

$

(99.9)

$

(0.1)

$

(100.0)

Change in period

 

(14.1)

 

(0.1)

 

(14.2)

Balance March 28, 2021

$

(114.0)

$

(0.2)

$

(114.2)

Change in period

 

5.8

 

(0.8)

 

5.0

Balance June 27, 2021

$

(108.2)

$

(1.0)

$

(109.2)

Balance December 31, 2019

$

(131.3)

$

0.5

$

(130.8)

Change in period

 

(16.5)

 

(0.9)

 

(17.4)

Balance March 29, 2020

$

(147.8)

$

(0.4)

$

(148.2)

Change in period

 

10.0

 

(0.3)

 

9.7

Balance June 28, 2020

$

(137.8)

$

(0.7)

$

(138.5)

(1)Cash flow hedges include interest rate swaps and designated foreign currency hedges. See Note 5 for further details.
v3.21.2
Debt
6 Months Ended
Jun. 27, 2021
Debt  
Debt

11. Debt

On March 30, 2021, the Company entered into the Second Amended Credit Agreement. The Second Amended Credit Agreement amends the Amended Credit Agreement to extend the maturity date of the $800 million senior unsecured revolving credit facility from February 12, 2022 to March 30, 2026. Among other changes, the Second Amended Credit Agreement increases the Company’s maximum consolidated leverage ratio (including both the base ratio and the ratio permitted during temporary step-ups following certain acquisitions), adjusts certain fees to reflect market conditions and reduces the 1.00% floor on the adjusted LIBOR rate to 0.00%.

The New Revolving Credit Facility also includes sublimits of $100 million for letters of credit and $15 million for swing line loans. As of June 27, 2021, the Company had drawn down $195.0 million on this line of credit and had $14.0 million in letters of credit outstanding, which resulted in $591.0 million of unused and available credit under the New Revolving Credit Facility. Borrowings outstanding bear interest at a fluctuating rate per annum equal to an applicable percentage defined as (i) in the case of Eurocurrency rate loans, the adjusted British Bankers Association LIBOR rate plus an applicable percentage, ranging from 1.075% to 1.325%, determined by reference to the Company's consolidated leverage ratio, or (ii) in the case of alternate base rate loans and swing line loans, interest (which at all times will not be less than 1.00%) at the greatest of (a) the Prime Rate in effect on such day, (b) the FRBNY Rate in effect on such day plus 0.50%

and (c) the adjusted LIBOR rate plus 1.00% for a one month interest period in dollars. The weighted average interest rate on debt outstanding under the New Revolving Credit Facility as of June 27, 2021 was 1.16%. The weighted average interest rate on debt outstanding inclusive of the interest rate swap discussed in Note 5 of the Notes to Consolidated Financial Statements and interest rates under the New Revolving Credit Facility as of June 27, 2021 was 1.65%. As of June 27, 2021, the Company was in compliance with all covenants related to the Second Amended Credit Agreement.

In addition to paying interest under the Second Amended Credit Agreement, the Company is also required to pay certain fees in connection with the New Revolving Credit Facility, including, but not limited to, an unused facility fee and letter of credit fees.

The Second Amended Credit Agreement matures on March 30, 2026, subject to extension under certain circumstances and subject to the terms of the Second Amended Credit Agreement. The Company may repay loans outstanding under the Second Amended Credit Agreement from time to time without premium or penalty, other than customary breakage costs, if any, and subject to the terms of the Second Amended Credit Agreement.

Both the Amended Credit Agreement and the Second Amended Credit Agreement impose various restrictions on the Company and its subsidiaries, including restrictions pertaining to: (i) the incurrence of additional indebtedness, (ii) limitations on liens, (iii) making distributions, dividends and other payments, (iv) mergers, consolidations and acquisitions, (v) dispositions of assets, (vi) certain consolidated leverage ratios and consolidated interest coverage ratios, (vii) transactions with affiliates, (viii) changes to governing documents, and (ix) changes in control.

The Company maintains letters of credit that guarantee its performance or payment to third parties in accordance with specified terms and conditions. Amounts outstanding were $14.0 million as of June 27, 2021. The Company’s letters of credit are primarily associated with insurance coverage. The Company’s letters of credit generally expire within one year of issuance. These instruments may exist or expire without being drawn down. Therefore, they do not necessarily represent future cash flow obligations.

The Amended Credit Agreement amended and restated the Prior Credit Agreement in its entirety while increasing the amount of revolving credit available from $500 million to $800 million and extended the maturity by one additional year to February 2022. The senior unsecured revolving credit facility (the "Revolving Credit Facility") also included sublimits of $100 million for letters of credit and $15 million for swing line loans. The term loan facility under the Prior Credit Agreement was terminated and paid off effective April 24, 2020, with funds from the Revolving Credit Facility. Borrowings outstanding under the Revolving Credit Facility bore interest at a fluctuating rate per annum equal to an applicable percentage defined as (i) in the case of Eurocurrency rate loans, the adjusted British Bankers Association LIBOR rate (which at all times will not be less than 1.00%) plus an applicable percentage, ranging from 1.50% to 2.10%, determined by reference to the Company's consolidated leverage ratio, or (ii) in the case of alternate base rate loans and swing line loans, interest (which at all times will not be less than 2.00%) at the greatest of (a) the Prime Rate in effect on such day, (b) the FRBNY Rate in effect on such day plus 0.50% and (c) the adjusted LIBOR rate plus 1.00% for a one month interest period in dollars. In addition to paying interest under the Amended Credit Agreement, the Company was also required to pay certain fees in connection with the Revolving Credit Facility, including, but not limited to, an unused facility fee and letter of credit fees. The terms of the Amended Credit Agreement are further detailed in Note 11 of the Notes to Consolidated Financial Statements of the Annual Report on Form 10-K for the year ended December 31, 2020.

v3.21.2
Contingencies and Environmental Remediation
6 Months Ended
Jun. 27, 2021
Contingencies and Environmental Remediation  
Contingencies and Environmental Remediation

12. Contingencies and Environmental Remediation

In the ordinary course of business, the Company is involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened, including those involving product liability, environmental matters, and commercial disputes.

Other than the items described below, significant commitments and contingencies at June 27, 2021 are consistent with those discussed in Note 15 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

As of June 27, 2021, the Company estimates that the aggregate amount of reasonably possible loss in excess of the amount accrued for its contingencies is approximately $4.0 million pre-tax. With respect to the estimate of reasonably possible loss, management has estimated the upper end of the range of reasonably possible loss based on (i) the amount of money damages claimed, where applicable, (ii) the allegations and factual development to date, (iii) available defenses based on the allegations, and/or (iv) other potentially liable parties. This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. In the event of an unfavorable outcome in one or more of the matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters, as they are resolved over time, is not likely to have a material adverse effect on the financial condition of the Company, though the outcome could be material to the Company’s operating results for any particular period depending, in part, upon the operating results for such period.

Chemetco, Inc. Superfund Site, Hartford, Illinois

In August 2017, Watts Regulator Co. (a wholly-owned subsidiary of the Company) received a “Notice of Environmental Liability” from the Chemetco Site Group (“Group”) alleging that it is a potentially responsible party for the Chemetco, Inc. Superfund Site in Hartford, Illinois (the “Site”) because it arranged for the disposal or treatment of hazardous substances that were contained in materials sent to the Site and that resulted in the release or threat of release of hazardous substances at the Site. The letter offered Watts Regulator Co. the opportunity to join the Group and participate in the Remedial Investigation and Feasibility Study (“RI/FS”) for a portion of the Site. Watts Regulator Co. joined the Group in September 2017 and was added in March 2018 as a signatory to the Administrative Settlement Agreement and Order on Consent with the United States Environmental Protection Agency (“USEPA”) governing completion of the RI/FS. The Remedial Investigation report has been completed, and the draft Feasibility Study report is due to be submitted to U.S. Environmental Protection Agency (USEPA) near the end of August 2021.  Based on information currently known to it, management believes that Watts Regulator Co.’s share of the costs of the RI/FS is not likely to have a material adverse effect on the financial condition of the Company, or have a material adverse effect on the Company’s operating results for any particular period.  The Company is unable to estimate a range of reasonably possible loss for the above matter in which damages have not been specified because:  (i) the RI/FS for the first portion of the Site has not been completed, and the RI/FS process for the remainder of the Site has not yet been initiated, to determine what remediation plans will be implemented and the costs of such plans; (ii) the total amount of material sent to the Site, and the total number of potentially responsible parties who may or may not agree to fund or perform any remediation, have not been determined; (iii) the share contribution for potentially responsible parties to any remediation has not been determined; and (iv) the number of years required to implement a remediation plan acceptable to USEPA is uncertain.

Income Taxes

In determining its provision for income taxes, the Company makes certain judgments and interpretations with respect to tax laws in jurisdictions in which the Company has business operations. Because of the complex nature of these laws, in the normal course of our business, the Company is subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. The Company recognizes a tax benefit when it is more likely than not that its position will result in a tax deduction or credit. As of June 27, 2021, the Company had gross unrecognized tax benefits of approximately $9.0 million. As a result of recent challenges from a non-U.S. income tax authority, it is reasonably possible that the unrecognized tax benefits associated with this matter could increase by $4.6 million in the next twelve months. The Company also estimates that it is reasonably possible that other matters included in unrecognized tax benefits at June 27, 2021 may decrease by $2.0 million to $2.5 million in the next twelve months as a result of lapse in statutes of limitations and potential settlements.

v3.21.2
Subsequent Events
6 Months Ended
Jun. 27, 2021
Subsequent Events  
Subsequent Events

13. Subsequent Events

On August 2, 2021, the Company declared a quarterly dividend of twenty-six cents ($0.26) per share on each outstanding share of Class A common stock and Class B common stock payable on September 15, 2021 to stockholders of record on September 1, 2021.

v3.21.2
Accounting Policies (Policies)
6 Months Ended
Jun. 27, 2021
Accounting Policies  
Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the Watts Water Technologies, Inc. (“the Company”) Consolidated Balance Sheet as of June 27, 2021, the Consolidated Statements of Operations for the second quarters and six months ended June 27, 2021 and June 28, 2020, the Consolidated Statements of Comprehensive Income for the second quarters and six months ended June 27, 2021 and June 28, 2020, the Consolidated Statements of Stockholders’ Equity for the second quarters and six months ended June 27, 2021 and June 28, 2020, and the Consolidated Statements of Cash Flows for the six months ended June 27, 2021 and June 28, 2020.

The consolidated balance sheet at December 31, 2020 has been derived from the audited consolidated financial statements at that date. The accounting policies followed by the Company are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The financial statements included in this report should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021, and may be further impacted by the effects of the Coronavirus Disease 2019 (“COVID-19”) global pandemic.

The Company operates on a 52-week fiscal year ending on December 31, with each quarter, except the fourth quarter, ending on a Sunday.  Any quarterly data contained in this Quarterly Report on Form 10-Q generally reflect the results of operations for a 13-week period.

Estimates

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The COVID-19 pandemic has created uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 continues to impact the Company’s business, results of operations and financial condition will depend on future developments, which are uncertain and difficult to predict. We are not aware of any specific event or circumstance that would require updates to the Company’s estimates or judgments or require the Company to revise the carrying value of the Company’s assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change as new events occur and additional information is obtained. Actual results could differ from those estimates.

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The effective date

for adoption of this ASU is the calendar year beginning January 1, 2021 with early adoption permitted. The Company adopted this standard in the first quarter of 2021, and it did not have a material impact on the Company’s financial statements.

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company adopted this standard in the second quarter of 2021, and it did not have a material impact on the Company’s financial statements.

Shipping and Handling

Shipping and Handling

Shipping and handling costs included in selling, general and administrative expenses amounted to $17.5 million and $12.5. million for the second quarters of 2021 and 2020, respectively, and were $32.9 million and $26.5 million for the first six months of 2021 and 2020, respectfully.

Research and Development

Research and Development

Research and development costs included in selling, general and administrative expenses amounted to $11.0 million and $9.8. million for the second quarters of 2021 and 2020, respectively and were $21.8 million and $21.3 million for the first six months of 2021 and 2020, respectfully.

v3.21.2
Revenue Recognition (Tables)
6 Months Ended
Jun. 27, 2021
Revenue Recognition  
Schedule of disaggregation of revenue

For the second quarter ended June 27, 2021

For the six months ended June 27, 2021

(in millions)

(in millions)

Distribution Channel

Americas

Europe

APMEA

Consolidated

Americas

Europe

APMEA

Consolidated

Wholesale

$

177.3

$

88.5

$

21.4

$

287.2

$

334.7

$

169.5

$

38.0

$

542.2

OEM

24.1

 

47.4

 

1.6

 

73.1

44.6

 

88.4

 

2.6

 

135.6

Specialty

86.1

 

 

0.1

 

86.2

160.2

 

 

0.1

 

160.3

DIY

 

19.6

 

0.9

 

 

20.5

 

40.4

 

1.8

 

 

42.2

Total

$

307.1

$

136.8

$

23.1

$

467.0

$

579.9

$

259.7

$

40.7

$

880.3

For the second quarter ended June 27, 2021

For the six months ended June 27, 2021

(in millions)

(in millions)

Principal Product Line

Americas

Europe

APMEA

Consolidated

Americas

Europe

APMEA

Consolidated

Residential & Commercial Flow Control

$

177.2

$

51.8

$

18.6

$

247.6

$

339.5

$

99.1

$

33.3

$

471.9

HVAC and Gas Products

77.6

 

60.9

 

3.6

 

142.1

143.5

 

115.1

 

5.9

 

264.5

Drainage and Water Re-use Products

25.2

 

22.5

 

0.5

 

48.2

43.8

 

42.7

 

0.9

 

87.4

Water Quality Products

 

27.1

 

1.6

 

0.4

 

29.1

 

53.1

 

2.8

 

0.6

 

56.5

Total

$

307.1

$

136.8

$

23.1

$

467.0

$

579.9

$

259.7

$

40.7

$

880.3

For the second quarter ended June 28, 2020

For the six months ended June 28, 2020

(in millions)

(in millions)

Distribution Channel

Americas

Europe

APMEA

Consolidated

Americas

Europe

APMEA

Consolidated

Wholesale

$

130.8

$

55.1

$

11.2

$

197.1

$

278.1

$

130.2

$

20.5

$

428.8

OEM

16.7

 

32.5

 

0.6

 

49.8

36.2

 

67.1

 

0.8

 

104.1

Specialty

72.0

 

 

1.4

 

73.4

150.5

 

 

1.9

 

152.4

DIY

 

17.9

 

0.5

 

 

18.4

 

35.0

 

1.0

 

 

36.0

Total

$

237.4

$

88.1

$

13.2

$

338.7

$

499.8

$

198.3

$

23.2

$

721.3

For the second quarter ended June 28, 2020

For the six months ended June 28, 2020

(in millions)

(in millions)

Principal Product Line

Americas

Europe

APMEA

Consolidated

Americas

Europe

APMEA

Consolidated

Residential & Commercial Flow Control

$

130.7

$

30.7

$

8.9

$

170.3

$

279.4

$

71.7

$

17.0

$

368.1

HVAC and Gas Products

63.0

 

38.5

 

4.0

 

105.5

130.6

 

82.9

 

5.6

 

219.1

Drainage and Water Re-use Products

19.3

 

18.1

 

 

37.4

37.8

 

42.0

 

0.1

 

79.9

Water Quality Products

 

24.4

 

0.8

 

0.3

 

25.5

 

52.0

 

1.7

 

0.5

 

54.2

Total

$

237.4

$

88.1

$

13.2

$

338.7

$

499.8

$

198.3

$

23.2

$

721.3

Schedule of contract assets and contract liabilities

Contract

Contract

Contract

Assets

Liabilities - Current

Liabilities - Noncurrent

(in millions)

Balance - January 1, 2021

$

$

13.5

$

2.5

Change in period

1.0

(0.2)

Balance - March 28, 2021

$

$

14.5

$

2.3

Change in period

0.1

Balance - June 27, 2021

$

$

14.5

$

2.4

Balance - January 1, 2020

$

0.4

$

11.5

$

2.9

Change in period

(0.1)

0.2

(0.1)

Balance - March 29, 2020

$

0.3

$

11.7

$

2.8

Change in period

(0.1)

Balance - June 28, 2020

$

0.3

$

11.7

$

2.7

v3.21.2
Goodwill & Intangibles (Tables)
6 Months Ended
Jun. 27, 2021
Goodwill & Intangibles  
Changes in the carrying amount of goodwill by geographic segment

June 27, 2021

Gross Balance

Accumulated Impairment Losses

Net Goodwill

Acquired

Foreign

Balance

During

Currency

Balance

Balance

Impairment

Balance

January 1,

the

Translation

June 27,

January 1,

Loss During

June 27,

June 27,

    

2021

      

Period

     

and Other

      

2021

      

2021

      

the Period

     

2021

      

2021

(in millions)

Americas

$

482.5

$

0.3

$

482.8

$

(24.5)

$

(24.5)

$

458.3

Europe

 

252.1

 

 

(3.3)

 

248.8

 

(129.7)

 

 

(129.7)

 

119.1

APMEA

 

34.9

 

 

(0.3)

 

34.6

 

(12.9)

 

 

(12.9)

 

21.7

Total

$

769.5

$

(3.3)

$

766.2

$

(167.1)

$

(167.1)

$

599.1

December 31, 2020

Gross Balance

Accumulated Impairment Losses

Net Goodwill

Acquired

Foreign

Balance

During

Currency

Balance

Balance

Impairment

Balance

January 1,

the

Translation

December 31,

January 1,

Loss During

December 31,

December 31,

    

2020

    

Period

    

and Other

    

2020

    

2020

    

the Period

    

2020

    

2020

(in millions)

Americas

$

476.8

$

5.5

$

0.2

$

482.5

$

(24.5)

$

$

(24.5)

$

458.0

Europe

 

241.4

 

 

10.7

 

252.1

 

(129.7)

 

 

(129.7)

 

122.4

APMEA

 

30.0

 

3.9

 

1.0

 

34.9

 

(12.9)

 

 

(12.9)

 

22.0

Total

$

748.2

$

9.4

$

11.9

$

769.5

$

(167.1)

$

$

(167.1)

$

602.4

Schedule of Intangible assets

June 27, 2021

December 31, 2020

Gross

Net

Gross

Net

Carrying

Accumulated

Carrying

Carrying

Accumulated

Carrying

    

Amount

    

Amortization

    

Amount

    

Amount

    

Amortization

    

Amount

(in millions)

Patents

$

16.1

$

(16.1)

$

$

16.1

$

(16.0)

$

0.1

Customer relationships

 

236.0

 

(170.0)

 

66.0

 

236.2

 

(165.8)

 

70.4

Technology

 

58.0

 

(38.5)

 

19.5

 

58.0

 

(36.4)

 

21.6

Trade names

 

27.0

 

(15.9)

 

11.1

 

27.0

 

(15.1)

 

11.9

Other

 

4.3

 

(3.7)

 

0.6

 

4.3

 

(3.7)

 

0.6

Total amortizable intangibles

 

341.4

 

(244.2)

 

97.2

 

341.6

 

(237.0)

 

104.6

Indefinite-lived intangible assets

 

36.7

 

 

36.7

 

37.2

 

 

37.2

$

378.1

$

(244.2)

$

133.9

$

378.8

$

(237.0)

$

141.8

v3.21.2
Financial Instruments and Derivative Instruments (Tables)
6 Months Ended
Jun. 27, 2021
Schedule of fair value of financial assets and liabilities

Fair Value Measurement at June 27, 2021 Using:

Quoted Prices in Active

Significant Other

Significant

Markets for Identical

Observable

Unobservable

Assets

Inputs

Inputs

    

Total

    

(Level 1)

    

(Level 2)

    

(Level 3)

(in millions)

Assets

Plan asset for deferred compensation(1)

$

2.5

$

2.5

$

$

Interest rate swaps(1)

$

0.1

$

$

0.1

$

Total assets

$

2.6

$

2.5

$

0.1

$

Liabilities

Interest rate swaps(3)

$

0.8

$

$

0.8

$

Plan liability for deferred compensation(2)

$

2.5

$

2.5

$

$

Designated foreign currency hedges(3)

$

0.3

$

$

0.3

$

Contingent consideration(4)

$

3.9

$

$

$

3.9

Total liabilities

$

7.5

$

2.5

$

1.1

$

3.9

Fair Value Measurements at December 31, 2020 Using:

Quoted Prices in Active

Significant Other

Significant

Markets for Identical

Observable

Unobservable

    

Assets

Inputs

 Inputs

Total

    

(Level 1)

    

(Level 2)

    

(Level 3)

(in millions)

Assets

Plan asset for deferred compensation(1)

$

2.5

$

2.5

$

$

Total assets

$

2.5

$

2.5

$

$

Liabilities

Interest rate swaps(3)

$

0.6

0.6

Plan liability for deferred compensation(2)

$

2.5

$

2.5

$

$

Designated foreign currency hedge(3)

$

0.1

$

$

0.1

$

Contingent consideration(4)

$

3.2

$

$

$

3.2

Total liabilities

$

6.4

$

2.5

$

0.7

$

3.2

(1)

Included on the Company’s consolidated balance sheet in other assets (other, net).

(2)

Included on the Company’s consolidated balance sheet in accrued compensation and benefits.

(3)Included on the Company’s consolidated balance sheet in accrued expenses and other liabilities.

(4)Included on the Company’s consolidated balance sheet in other noncurrent liabilities and relates to contingent consideration as part of the acquisition of Australian Valve Group Pty Ltd (“AVG”).

Significant Unobservable Inputs (Level 3)  
Summary of the changes in fair value of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

Total realized and unrealized

Balance

(gains) losses included in:

Balance

December 31,

Net earnings

Comprehensive

June 27,

    

2020

    

Settlements

    

Purchases

    

adjustments

    

income

    

2021

(in millions)

Contingent consideration

$

3.2

$

0.8

$

(0.1)

$

3.9

v3.21.2
Restructuring and Other Charges, Net (Tables)
6 Months Ended
Jun. 27, 2021
Restructuring and Other Charges, Net  
Summary of the pre-tax cost by restructuring programs

Second Quarter Ended

Six Months Ended

   

June 27,

         

June 28,

         

June 27,

         

June 28,

    

2021

         

2020

         

2021

         

2020

(in millions)

Restructuring costs:

2021 France Actions

$

18.0

$

$

18.0

$

Other Actions

 

(1.0)

 

5.3

 

(0.7)

 

5.3

Total restructuring charges

$

17.0

$

5.3

$

17.3

$

5.3

Summary of recorded pre-tax restructuring costs by business segment

Second Quarter Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

    

2021

2020

2021

2020

(in millions)

Americas

$

(0.7)

$

4.6

$

(0.7)

$

4.6

Europe

 

17.9

 

(0.3)

 

17.9

 

(0.3)

APMEA

 

(0.2)

 

0.9

 

0.1

 

0.9

Corporate

0.1

0.1

Total

$

17.0

$

5.3

$

17.3

$

5.3

Summary of total expected, incurred and remaining pre-tax restructuring costs

    

Facility

Legal and

Asset

exit

    

Severance

     

consultancy

     

write-downs

     

and other

     

Total

(in millions)

Costs incurred — second quarter 2021

 

$

16.9

 

$

0.6

 

$

 

$

0.5

 

$

18.0

Remaining costs to be incurred

4.6

2.2

1.5

8.3

Total expected restructuring costs

 

$

21.5

$

0.6

$

2.2

$

2.0

 

$

26.3

Summary of restructuring reserve activity

Facility

Legal and

Asset

exit

    

Severance

    

consultancy

    

write-downs

    

and other

    

Total

(in millions)

Balance at March 28, 2021

$

$

$

$

$

Net pre-tax restructuring charges

16.9

0.6

0.5

18.0

Utilization and foreign currency impact

(0.3)

(0.2)

(0.5)

Balance at June 27, 2021

$

16.6

$

0.4

$

$

0.5

$

17.5

v3.21.2
Earnings per Share and Stock Repurchase Program (Tables)
6 Months Ended
Jun. 27, 2021
Earnings per Share and Stock Repurchase Program  
Summary of reconciliation of the calculation of earnings per share

For the Second Quarter Ended June 27, 2021

For the Second Quarter Ended June 28, 2020

 

Income

Shares

Per Share

Income

Shares

Per Share

    

(Numerator)

    

(Denominator)

    

Amount

    

(Numerator)

    

(Denominator)

    

Amount

 

(Amounts in millions, except per share information)

 

Basic EPS:

Net income

$

37.5

33.8

$

1.11

$

20.2

33.8

$

0.60

Effect of dilutive securities:

Common stock equivalents

0.1

 

0.2

(0.01)

Diluted EPS:

Net income

$

37.5

33.9

$

1.11

$

20.2

 

34.0

$

0.59

For the Six Months Ended June 27, 2021

For the Six Months Ended June 28, 2020

Income

Shares

Per Share

Income

Shares

Per Share

    

(Numerator)

      

(Denominator)

      

Amount

     

(Numerator)

      

(Denominator)

      

Amount

(Amounts in millions, except per share information)

Basic EPS:

Net income

$

79.2

33.8

$

2.34

$

52.2

33.9

$

1.54

Effect of dilutive securities:

Common stock equivalents

0.1

 

0.1

(0.01)

Diluted EPS:

Net income

$

79.2

33.9

$

2.34

$

52.2

 

34.0

$

1.53

v3.21.2
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 27, 2021
Stock-Based Compensation  
Schedule of stock-based compensation fair value assumptions

    

2021

    

2020

    

Expected life (years)

3.0

3.0

Expected stock price volatility

 

32.7

%  

24.6

%  

Expected dividend yield

 

0.75

%  

1.1

%  

Risk-free interest rate

 

0.3

%  

0.6

%  

v3.21.2
Segment Information (Tables)
6 Months Ended
Jun. 27, 2021
Segment Information  
Summary of the Company's significant accounts and balances by segment, reconciled to the consolidated totals

Second Quarter Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

    

2021

    

2020

    

2021

    

2020

(in millions)

Net sales

    

    

    

    

Americas

$

307.1

$

237.4

$

579.9

$

499.8

Europe

 

136.8

 

88.1

 

259.7

 

198.3

APMEA

 

23.1

 

13.2

 

40.7

 

23.2

Consolidated net sales

$

467.0

$

338.7

$

880.3

$

721.3

Operating income (loss)

Americas

$

55.2

$

29.5

$

103.7

$

72.9

Europe

 

5.4

 

9.2

 

24.9

 

22.9

APMEA

 

4.3

 

0.8

 

6.6

 

0.7

Subtotal reportable segments

 

64.9

 

39.5

 

135.2

 

96.5

Corporate(*)

 

(12.2)

 

(8.5)

 

(22.9)

 

(17.7)

Consolidated operating income

 

52.7

 

31.0

 

112.3

 

78.8

Interest income

 

 

(0.1)

 

 

(0.2)

Interest expense

 

1.5

 

4.0

 

3.5

 

7.0

Other income, net

 

(0.5)

 

(0.4)

 

(0.8)

 

(0.1)

Income before income taxes

$

51.7

$

27.5

$

109.6

$

72.1

Capital expenditures

Americas

$

4.8

$

11.1

$

7.2

$

17.7

Europe

 

2.9

 

3.8

 

5.2

 

6.0

APMEA

 

0.6

 

 

0.6

 

0.1

Consolidated capital expenditures

$

8.3

$

14.9

$

13.0

$

23.8

Depreciation and amortization

Americas

$

7.4

$

7.5

$

15.1

$

14.9

Europe

 

3.0

 

3.5

 

6.3

 

6.9

APMEA

 

1.1

 

0.5

 

1.9

 

1.1

Consolidated depreciation and amortization

$

11.5

$

11.5

$

23.3

$

22.9

Identifiable assets (at end of period)

Americas

$

1,127.2

$

1,079.0

Europe

 

586.7

 

479.7

APMEA

 

141.4

 

89.6

Consolidated identifiable assets

$

1,855.3

$

1,648.3

Property, plant and equipment, net (at end of period)

Americas

$

120.6

$

123.9

Europe

 

81.5

 

77.8

APMEA

 

4.9

 

5.2

Consolidated property, plant and equipment, net

$

207.0

$

206.9

*     Corporate expenses are primarily for administrative compensation expense, compliance costs, professional fees, including corporate-related legal and audit expenses, shareholder services and benefit administration costs.

Schedule of U.S. net sales of the Company's Americas segment

Second Quarter Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

    

2021

    

2020

    

2021

    

2020

(in millions)

U.S. net sales

$

285.0

$

222.6

$

539.4

$

469.3

Schedule of intersegment sales for Americas, EMEA and Asia-Pacific

Second Quarter Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

    

2021

    

2020

    

2021

    

2020

(in millions)

Intersegment Sales

    

    

    

    

Americas

$

2.5

$

2.9

$

4.9

$

5.5

Europe

 

8.5

 

5.3

 

16.2

 

9.5

APMEA

 

37.1

 

21.0

 

63.4

 

34.5

Intersegment sales

$

48.1

$

29.2

$

84.5

$

49.5

v3.21.2
Accumulated Other Comprehensive Loss (Tables)
6 Months Ended
Jun. 27, 2021
Accumulated Other Comprehensive Loss  
Schedule of amounts recognized in accumulated other comprehensive income (loss)

    

    

    

Accumulated 

Foreign

Other

Currency

Cash Flow

Comprehensive

    

Translation

    

Hedges (1)

    

Loss

(in millions)

Balance December 31, 2020

$

(99.9)

$

(0.1)

$

(100.0)

Change in period

 

(14.1)

 

(0.1)

 

(14.2)

Balance March 28, 2021

$

(114.0)

$

(0.2)

$

(114.2)

Change in period

 

5.8

 

(0.8)

 

5.0

Balance June 27, 2021

$

(108.2)

$

(1.0)

$

(109.2)

Balance December 31, 2019

$

(131.3)

$

0.5

$

(130.8)

Change in period

 

(16.5)

 

(0.9)

 

(17.4)

Balance March 29, 2020

$

(147.8)

$

(0.4)

$

(148.2)

Change in period

 

10.0

 

(0.3)

 

9.7

Balance June 28, 2020

$

(137.8)

$

(0.7)

$

(138.5)

(1)Cash flow hedges include interest rate swaps and designated foreign currency hedges. See Note 5 for further details.
v3.21.2
Basis of Presentation (Details)
6 Months Ended
Jun. 27, 2021
Basis of Presentation  
Length of fiscal year 365 days
Length of fiscal quarter 91 days
v3.21.2
Accounting Policies - Shipping and Handling, and Other (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Shipping and Handling        
Shipping and handling $ 17.5 $ 12.5 $ 32.9 $ 26.5
Research and Development        
Research and development costs included in selling, general, and administrative expense $ 11.0 $ 9.8 $ 21.8 $ 21.3
v3.21.2
Revenue Recognition (Details)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
USD ($)
Jun. 28, 2020
USD ($)
Jun. 27, 2021
Jun. 27, 2021
USD ($)
Jun. 27, 2021
item
Jun. 27, 2021
segment
Jun. 28, 2020
USD ($)
Disaggregation of Revenue              
Number of distribution channels | item         4    
Number of geographic segments         3 3  
Revenue $ 467.0 $ 338.7   $ 880.3     $ 721.3
Minimum              
Disaggregation of Revenue              
Period of Business Operations     140 years        
Wholesale              
Disaggregation of Revenue              
Revenue 287.2 197.1   542.2     428.8
OEM              
Disaggregation of Revenue              
Revenue 73.1 49.8   135.6     104.1
Specialty              
Disaggregation of Revenue              
Revenue 86.2 73.4   160.3     152.4
DIY              
Disaggregation of Revenue              
Revenue 20.5 18.4   42.2     36.0
Residential & Commercial Flow Control              
Disaggregation of Revenue              
Revenue 247.6 170.3   471.9     368.1
HVAC & Gas Products              
Disaggregation of Revenue              
Revenue 142.1 105.5   264.5     219.1
Drainage & Water Re-use Products              
Disaggregation of Revenue              
Revenue 48.2 37.4   87.4     79.9
Water Quality Products              
Disaggregation of Revenue              
Revenue 29.1 25.5   56.5     54.2
Americas              
Disaggregation of Revenue              
Revenue 307.1 237.4   579.9     499.8
Americas | Wholesale              
Disaggregation of Revenue              
Revenue 177.3 130.8   334.7     278.1
Americas | OEM              
Disaggregation of Revenue              
Revenue 24.1 16.7   44.6     36.2
Americas | Specialty              
Disaggregation of Revenue              
Revenue 86.1 72.0   160.2     150.5
Americas | DIY              
Disaggregation of Revenue              
Revenue 19.6 17.9   40.4     35.0
Americas | Residential & Commercial Flow Control              
Disaggregation of Revenue              
Revenue 177.2 130.7   339.5     279.4
Americas | HVAC & Gas Products              
Disaggregation of Revenue              
Revenue 77.6 63.0   143.5     130.6
Americas | Drainage & Water Re-use Products              
Disaggregation of Revenue              
Revenue 25.2 19.3   43.8     37.8
Americas | Water Quality Products              
Disaggregation of Revenue              
Revenue 27.1 24.4   53.1     52.0
Europe              
Disaggregation of Revenue              
Revenue 136.8 88.1   259.7     198.3
Europe | Wholesale              
Disaggregation of Revenue              
Revenue 88.5 55.1   169.5     130.2
Europe | OEM              
Disaggregation of Revenue              
Revenue 47.4 32.5   88.4     67.1
Europe | DIY              
Disaggregation of Revenue              
Revenue 0.9 0.5   1.8     1.0
Europe | Residential & Commercial Flow Control              
Disaggregation of Revenue              
Revenue 51.8 30.7   99.1     71.7
Europe | HVAC & Gas Products              
Disaggregation of Revenue              
Revenue 60.9 38.5   115.1     82.9
Europe | Drainage & Water Re-use Products              
Disaggregation of Revenue              
Revenue 22.5 18.1   42.7     42.0
Europe | Water Quality Products              
Disaggregation of Revenue              
Revenue 1.6 0.8   2.8     1.7
APMEA              
Disaggregation of Revenue              
Revenue 23.1 13.2   40.7     23.2
APMEA | Wholesale              
Disaggregation of Revenue              
Revenue 21.4 11.2   38.0     20.5
APMEA | OEM              
Disaggregation of Revenue              
Revenue 1.6 0.6   2.6     0.8
APMEA | Specialty              
Disaggregation of Revenue              
Revenue 0.1 1.4   0.1     1.9
APMEA | Residential & Commercial Flow Control              
Disaggregation of Revenue              
Revenue 18.6 8.9   33.3     17.0
APMEA | HVAC & Gas Products              
Disaggregation of Revenue              
Revenue 3.6 4.0   5.9     5.6
APMEA | Drainage & Water Re-use Products              
Disaggregation of Revenue              
Revenue 0.5     0.9     0.1
APMEA | Water Quality Products              
Disaggregation of Revenue              
Revenue $ 0.4 $ 0.3   $ 0.6     $ 0.5
v3.21.2
Revenue Recognition - Performance obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Jun. 27, 2021
Minimum  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Maximum  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 3 years
v3.21.2
Revenue Recognition - Contract Liabilities (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
Mar. 28, 2021
Jun. 28, 2020
Mar. 29, 2020
Jun. 27, 2021
Jun. 28, 2020
Dec. 31, 2020
Dec. 31, 2019
Contract with Customer, Asset                
Contract Assets     $ 0.3 $ 0.3   $ 0.3   $ 0.4
Change in period       (0.1)        
Contract Liabilities                
Contract Liabilities - Current $ 14.5 $ 14.5 11.7 11.7 $ 14.5 11.7 $ 13.5 11.5
Increase (decrease) - Current Liabilities   1.0   0.2        
Contract Liabilities - Noncurrent 2.4 2.3 2.7 2.8 2.4 2.7 $ 2.5 $ 2.9
Increase (decrease) - Noncurrent Liabilities 0.1 $ (0.2) (0.1) $ (0.1)        
Revenue recognized, contract liability 4.7   2.5   8.5 4.8    
Impairment loss related to Contract Assets $ 0.0   $ 0.0   $ 0.0 $ 0.0    
v3.21.2
Goodwill and Intangibles - Goodwill (Details)
$ in Millions
6 Months Ended 12 Months Ended 15 Months Ended 18 Months Ended
Jun. 27, 2021
USD ($)
Dec. 31, 2020
USD ($)
Mar. 28, 2021
USD ($)
item
Jun. 27, 2021
USD ($)
item
Gross Balance        
Balance at the beginning of the period $ 769.5 $ 748.2 $ 748.2 $ 748.2
Acquired During the Period   9.4    
Foreign Currency Translation and Other (3.3) 11.9    
Balance at the end of the period 766.2 769.5   766.2
Accumulated Impairment Losses        
Balance at the beginning of the period (167.1) (167.1) $ (167.1) (167.1)
Balance at the end of the period (167.1) (167.1)   (167.1)
Net Goodwill 599.1 602.4   $ 599.1
Number of reporting units | item     7 7
Americas        
Gross Balance        
Balance at the beginning of the period 482.5 476.8 $ 476.8 $ 476.8
Acquired During the Period   5.5    
Foreign Currency Translation and Other 0.3 0.2    
Balance at the end of the period 482.8 482.5   482.8
Accumulated Impairment Losses        
Balance at the beginning of the period (24.5) (24.5) (24.5) (24.5)
Balance at the end of the period (24.5) (24.5)   (24.5)
Net Goodwill 458.3 458.0   458.3
Europe        
Gross Balance        
Balance at the beginning of the period 252.1 241.4 241.4 241.4
Foreign Currency Translation and Other (3.3) 10.7    
Balance at the end of the period 248.8 252.1   248.8
Accumulated Impairment Losses        
Balance at the beginning of the period (129.7) (129.7) (129.7) (129.7)
Balance at the end of the period (129.7) (129.7)   (129.7)
Net Goodwill 119.1 122.4   119.1
APMEA        
Gross Balance        
Balance at the beginning of the period 34.9 30.0 30.0 30.0
Acquired During the Period   3.9    
Foreign Currency Translation and Other (0.3) 1.0    
Balance at the end of the period 34.6 34.9   34.6
Accumulated Impairment Losses        
Balance at the beginning of the period (12.9) (12.9) $ (12.9) (12.9)
Balance at the end of the period (12.9) (12.9)   (12.9)
Net Goodwill $ 21.7 $ 22.0   $ 21.7
v3.21.2
Goodwill and Intangibles - Intangibles (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Dec. 31, 2020
Intangible assets subject to amortization          
Gross Carrying Amount $ 341.4   $ 341.4   $ 341.6
Accumulated Amortization (244.2)   (244.2)   (237.0)
Net Carrying Amount 97.2   97.2   104.6
Indefinite-lived intangible assets          
Indefinite-lived intangible assets 36.7   36.7   37.2
Intangible assets          
Gross Carrying Amount 378.1   378.1   378.8
Net Carrying Amount 133.9   133.9   141.8
Aggregate amortization expense for amortized intangible assets 3.4 $ 3.8 7.3 $ 7.6  
Patents          
Intangible assets subject to amortization          
Gross Carrying Amount 16.1   16.1   16.1
Accumulated Amortization (16.1)   (16.1)   (16.0)
Net Carrying Amount         0.1
Customer relationships          
Intangible assets subject to amortization          
Gross Carrying Amount 236.0   236.0   236.2
Accumulated Amortization (170.0)   (170.0)   (165.8)
Net Carrying Amount 66.0   66.0   70.4
Technology          
Intangible assets subject to amortization          
Gross Carrying Amount 58.0   58.0   58.0
Accumulated Amortization (38.5)   (38.5)   (36.4)
Net Carrying Amount 19.5   19.5   21.6
Trade name          
Intangible assets subject to amortization          
Gross Carrying Amount 27.0   27.0   27.0
Accumulated Amortization (15.9)   (15.9)   (15.1)
Net Carrying Amount 11.1   11.1   11.9
Other          
Intangible assets subject to amortization          
Gross Carrying Amount 4.3   4.3   4.3
Accumulated Amortization (3.7)   (3.7)   (3.7)
Net Carrying Amount $ 0.6   $ 0.6   $ 0.6
v3.21.2
Financial Instruments and Derivative Instruments - Fair Value on a Recurring Basis (Details) - Fair value measured on a recurring basis - USD ($)
$ in Millions
Jun. 27, 2021
Dec. 31, 2020
Assets    
Plan assets for deferred compensation $ 2.5 $ 2.5
Total assets 2.6 2.5
Liabilities    
Plan liabilities for deferred compensation 2.5 2.5
Contingent Consideration 3.9 3.2
Total liabilities 7.5 6.4
Interest Rate Swaps    
Assets    
Derivative assets 0.1  
Liabilities    
Derivative liabilities 0.8 0.6
Forward exchange contracts    
Liabilities    
Derivative liabilities 0.3 0.1
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets    
Plan assets for deferred compensation 2.5 2.5
Total assets 2.5 2.5
Liabilities    
Plan liabilities for deferred compensation 2.5 2.5
Total liabilities 2.5 2.5
Significant Other Observable Inputs (Level 2)    
Assets    
Total assets 0.1  
Liabilities    
Total liabilities 1.1 0.7
Significant Other Observable Inputs (Level 2) | Interest Rate Swaps    
Assets    
Derivative assets 0.1  
Liabilities    
Derivative liabilities 0.8 0.6
Significant Other Observable Inputs (Level 2) | Forward exchange contracts    
Liabilities    
Derivative liabilities 0.3 0.1
Significant Unobservable Inputs (Level 3)    
Liabilities    
Contingent Consideration 3.9 3.2
Total liabilities $ 3.9 $ 3.2
v3.21.2
Financial Instruments and Derivative Instruments - Fair Value Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
Jun. 27, 2021
Dec. 31, 2020
Mar. 29, 2020
Significant Unobservable Inputs (Level 3)        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Net earnings adjustments $ 0.8      
Balance at the ending of the period 3.9 $ 3.9    
Significant Unobservable Inputs (Level 3) | Minimum        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Liability recorded at acquisition date fair value 0.0 0.0    
Significant Unobservable Inputs (Level 3) | Maximum        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Liability recorded at acquisition date fair value 4.5 4.5    
Fair value measured on a recurring basis        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Liability recorded at acquisition date fair value 3.9 3.9 $ 3.2  
Fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3)        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Balance at the beginning of the period   3.2    
Net earnings adjustments   0.8    
Comprehensive income   (0.1)    
Balance at the ending of the period 3.9 3.9    
Liability recorded at acquisition date fair value $ 3.9 $ 3.9 $ 3.2  
AVG | Significant Unobservable Inputs (Level 3)        
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Liability recorded at acquisition date fair value       $ 2.8
v3.21.2
Financial Instruments and Derivative Instruments - Interest Rate Swaps and Non-Designated Cash Flow Hedge (Details)
$ in Millions
3 Months Ended 6 Months Ended 12 Months Ended
Feb. 12, 2016
USD ($)
item
Jun. 27, 2021
USD ($)
Jun. 27, 2021
USD ($)
Dec. 31, 2020
Mar. 30, 2021
USD ($)
Mar. 29, 2021
Apr. 24, 2020
USD ($)
Apr. 23, 2020
USD ($)
Derivative instruments                
Percentage of projected intercompany purchases hedged by forward exchange contracts     60.00%          
Period of projected intercompany purchase transactions     12 months 12 months        
Minimum                
Derivative instruments                
Percentage of projected intercompany purchases hedged by forward exchange contracts       80.00%        
Maximum                
Derivative instruments                
Percentage of projected intercompany purchases hedged by forward exchange contracts       85.00%        
LIBOR                
Interest Rate Swaps                
Derivative, floor interest rate         0.00% 1.00%    
Credit Agreement                
Interest Rate Swaps                
Borrowing capacity         $ 100.0   $ 100.0  
Term loan facility | Term Loan due February 2021                
Interest Rate Swaps                
Face amount $ 300.0              
Revolving credit facility                
Interest Rate Swaps                
Amount drawn   $ 195.0 $ 195.0          
Borrowing capacity $ 500.0           800.0 $ 500.0
Swing Line Loans                
Interest Rate Swaps                
Borrowing capacity         $ 15.0   $ 15.0  
Forward exchange contracts | Cash Flow Hedging                
Derivative instruments                
Designated foreign currency hedges   (0.3) $ (0.3)          
Forward exchange contracts | Designated                
Amount of Gain or (Loss) Recognized in Income on Derivatives                
Period of time for expected reclassification     12 months          
Amount expected to be reclassified     $ (0.3)          
Canadian Dollar to US Dollar Contracts                
Interest Rate Swaps                
Derivative notional amount   15.9 15.9          
US Dollar to Chinese Yuan Contracts                
Interest Rate Swaps                
Derivative notional amount   7.6 7.6          
Interest Rate Swaps | Non designated | Cash Flow Hedging | LIBOR                
Interest Rate Swaps                
Derivative, floor interest rate             1.00%  
Interest Rate Swaps | Designated | Cash Flow Hedging                
Interest Rate Swaps                
Number of derivative contracts entered | item 2              
Derivative fixed interest rate 1.31375%       1.02975%      
Derivative notional amount $ 225.0       $ 100.0      
Gain (loss) recognized in Accumulated Other Comprehensive Loss, effective portion   $ (0.5) $ (0.5)          
Interest Rate Swaps | Designated | Cash Flow Hedging | LIBOR                
Interest Rate Swaps                
Derivative, floor interest rate 0.00%       0.00%     0.00%
v3.21.2
Restructuring and Other Charges, Net (Details)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
USD ($)
item
Jun. 28, 2020
USD ($)
Jun. 27, 2021
USD ($)
Jun. 28, 2020
USD ($)
Restructuring        
Restructuring and other charges, net $ 17.0 $ 5.3 $ 17.3 $ 5.3
Corporate        
Restructuring        
Pre-tax restructuring charges, net   0.1   0.1
Americas        
Restructuring        
Pre-tax restructuring charges, net (0.7) 4.6 (0.7) 4.6
Europe        
Restructuring        
Pre-tax restructuring charges, net 17.9 (0.3) 17.9 (0.3)
APMEA        
Restructuring        
Pre-tax restructuring charges, net (0.2) 0.9 0.1 0.9
2021 France Actions        
Restructuring        
Restructuring cost, pre-tax $ 18.0   18.0  
Number of positions eliminated | item 50      
Remaining costs to be incurred $ 8.3   8.3  
Total expected restructuring costs 26.3   26.3  
Total expected restructuring and related costs, after tax 19.0      
Non-cash charges 2.0   2.0  
Expected annual cash savings 3.0      
Restructuring reserve 17.5   17.5  
2021 France Actions | Severance        
Restructuring        
Restructuring cost, pre-tax 16.9      
Remaining costs to be incurred 4.6   4.6  
Total expected restructuring costs 21.5   21.5  
Restructuring reserve 16.6   16.6  
2021 France Actions | Legal and consultancy        
Restructuring        
Restructuring cost, pre-tax 0.6      
Total expected restructuring costs 0.6   0.6  
Restructuring reserve 0.4   0.4  
2021 France Actions | Asset write-downs        
Restructuring        
Remaining costs to be incurred 2.2   2.2  
Total expected restructuring costs 2.2   2.2  
2021 France Actions | Facility exit and other        
Restructuring        
Restructuring cost, pre-tax $ 0.5      
Number of positions eliminated | item 80      
Remaining costs to be incurred $ 1.5   1.5  
Total expected restructuring costs 2.0   2.0  
Restructuring reserve 0.5   0.5  
2021 France Actions | Facilities consolidation        
Restructuring        
Total expected restructuring costs 1.0   1.0  
Other Actions        
Restructuring        
Pre-tax restructuring charges, net (1.0) $ 5.3 (0.7) $ 5.3
Total expected restructuring costs 9.9   9.9  
Pre-tax program to date restructuring and other charges incurred 9.6   9.6  
Restructuring reserve $ 2.0   $ 2.0  
v3.21.2
Restructuring and Other Charges, Net - Pre-tax Restructuring (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Restructuring        
Total restructuring and other charges, net $ 17.0 $ 5.3 $ 17.3 $ 5.3
Net sales 467.0 338.7 880.3 721.3
Corporate        
Restructuring        
Pre-tax restructuring charges, net   0.1   0.1
Europe        
Restructuring        
Pre-tax restructuring charges, net 17.9 (0.3) 17.9 (0.3)
Net sales 136.8 88.1 259.7 198.3
Americas        
Restructuring        
Pre-tax restructuring charges, net (0.7) 4.6 (0.7) 4.6
Net sales 307.1 237.4 579.9 499.8
2021 France Actions        
Restructuring        
Total expected restructuring costs 26.3   26.3  
Non-cash charges 2.0   2.0  
Total expected restructuring and related costs, after tax 19.0      
Restructuring cost, pre-tax 18.0   18.0  
Other Actions        
Restructuring        
Pre-tax restructuring charges, net (1.0) $ 5.3 (0.7) $ 5.3
Total expected restructuring costs $ 9.9   $ 9.9  
v3.21.2
Restructuring and Other Charges, Net (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Summary of total expected, incurred and remaining pre-tax costs        
Restructuring and other charges, net $ 17.0 $ 5.3 $ 17.3 $ 5.3
2021 France Actions        
Summary of total expected, incurred and remaining pre-tax costs        
Remaining costs to be incurred 8.3   8.3  
Total expected restructuring costs 26.3   26.3  
Restructuring reserve        
Restructuring cost, pre-tax 18.0   18.0  
Utilization and foreign currency impact (0.5)      
Balance at the end of the period 17.5   17.5  
2021 France Actions | Severance        
Summary of total expected, incurred and remaining pre-tax costs        
Remaining costs to be incurred 4.6   4.6  
Total expected restructuring costs 21.5   21.5  
Restructuring reserve        
Restructuring cost, pre-tax 16.9      
Utilization and foreign currency impact (0.3)      
Balance at the end of the period 16.6   16.6  
2021 France Actions | Legal and consultancy        
Summary of total expected, incurred and remaining pre-tax costs        
Total expected restructuring costs 0.6   0.6  
Restructuring reserve        
Restructuring cost, pre-tax 0.6      
Utilization and foreign currency impact (0.2)      
Balance at the end of the period 0.4   0.4  
2021 France Actions | Asset write-downs        
Summary of total expected, incurred and remaining pre-tax costs        
Remaining costs to be incurred 2.2   2.2  
Total expected restructuring costs 2.2   2.2  
2021 France Actions | Facility exit and other        
Summary of total expected, incurred and remaining pre-tax costs        
Remaining costs to be incurred 1.5   1.5  
Total expected restructuring costs 2.0   2.0  
Restructuring reserve        
Restructuring cost, pre-tax 0.5      
Balance at the end of the period 0.5   0.5  
Other Actions        
Summary of total expected, incurred and remaining pre-tax costs        
Incurred to Date 9.6   9.6  
Total expected restructuring costs 9.9   9.9  
Increase (decrease) in the expected restructuring and related costs (1.0)      
Restructuring reserve        
Balance at the end of the period $ 2.0   $ 2.0  
v3.21.2
Earnings per Share and Stock Repurchase Program (Details)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
USD ($)
$ / shares
shares
Jun. 28, 2020
USD ($)
$ / shares
shares
Jun. 27, 2021
USD ($)
$ / shares
shares
Jun. 28, 2020
USD ($)
$ / shares
shares
Dec. 31, 2020
Feb. 06, 2019
USD ($)
Net (loss) income            
Net income $ 37.5 $ 20.2 $ 79.2 $ 52.2    
Shares            
Shares (in shares) | shares 33,800,000 33,800,000 33,800,000 33,900,000    
Per Share Amount            
Net income (in dollars per share) | $ / shares $ 1.11 $ 0.60 $ 2.34 $ 1.54    
Dilutive securities, principally common stock options            
Common stock equivalents (in shares) | shares 100,000 200,000 100,000 100,000    
Common stock equivalents (in dollars per share) | $ / shares   $ (0.01)   $ (0.01)    
Net (loss) income            
Net income $ 37.5 $ 20.2 $ 79.2 $ 52.2    
Weighted average number of shares:            
Shares (in shares) | shares 33,900,000 34,000,000.0 33,900,000 34,000,000.0    
Securities not included in the computation of diluted EPS            
Net income (in dollars per share) | $ / shares $ 1.11 $ 0.59 $ 2.34 $ 1.53    
Dilutive securities, principally common stock options            
Options to purchase shares of Class A common stock, anti-dilutive | shares 0 0 0 0    
Shares repurchased            
Number of shares repurchased | shares 30,917 78,828 62,070 253,535    
Stock Repurchased During Period, Value $ 4.0 $ 6.4 $ 7.8 $ 21.1    
Cost of shares repurchased     $ 7.8 $ 21.1    
Class A            
Common Stock            
Common Stock, votes per share (Number of votes) 1   1   1  
Class B            
Common Stock            
Common Stock, votes per share (Number of votes) 10   10   10  
February 6, 2019 | Class A            
Shares repurchased            
Value of shares of the entity's Class A common stock authorized to be repurchased           $ 150.0
Remaining authorized repurchase amount $ 105.6   $ 105.6      
v3.21.2
Stock-Based Compensation (Details) - $ / shares
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Dec. 31, 2020
Second Amended and Restated 2004 Stock Incentive Plan        
Stock-based compensation        
Vesting period   3 years    
Second Amended and Restated 2004 Stock Incentive Plan | Restricted Stock and Deferred Shares        
Stock-based compensation        
Granted (in shares)   52,230 80,052  
Second Amended and Restated 2004 Stock Incentive Plan | Performance stock units        
Stock-based compensation        
Vesting period   3 years    
Granted (in shares) 73,106 46,774    
Management Stock Purchase Plan | Maximum        
Stock-based compensation        
Percentage of annual incentive bonus that may be used to purchase RSU's   50.00%    
Management Stock Purchase Plan | Class A        
Stock-based compensation        
Purchase price as percentage of fair market value of common stock on grant date   80.00%    
Management Stock Purchase Plan | Restricted stock units (RSUs)        
Stock-based compensation        
Granted (in shares)   24,690 27,495  
Fair value assumptions        
Expected life (years)   3 years   3 years
Expected stock price volatility (as a percent)   32.70%   24.60%
Expected dividend yield (as a percent)   0.75%   1.10%
Risk-free interest rate (as a percent)   0.30%   0.60%
Weighted average grant-date fair value (in dollars per share)   $ 37.12 $ 22.36  
v3.21.2
Segment Information (Details)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2021
USD ($)
Jun. 28, 2020
USD ($)
Jun. 27, 2021
USD ($)
Jun. 27, 2021
USD ($)
segment
Jun. 27, 2021
USD ($)
item
Jun. 28, 2020
USD ($)
Dec. 31, 2020
USD ($)
Segment information              
Number of geographic segments       3 3    
Net sales $ 467.0 $ 338.7 $ 880.3     $ 721.3  
Operating income 52.7 31.0 112.3     78.8  
Interest income   (0.1)       (0.2)  
Interest expense 1.5 4.0 3.5     7.0  
Other expense (income), net (0.5) (0.4) (0.8)     (0.1)  
INCOME BEFORE INCOME TAXES 51.7 27.5 109.6     72.1  
Capital expenditures 8.3 14.9 13.0     23.8  
Depreciation and amortization 11.5 11.5 23.3     22.9  
Identifiable assets (at end of period) 1,855.3 1,648.3 1,855.3 $ 1,855.3 $ 1,855.3 1,648.3 $ 1,738.2
Property, plant and equipment, net (at end of period) 207.0 206.9 207.0 207.0 207.0 206.9 $ 212.3
Residential & Commercial Flow Control              
Segment information              
Net sales 247.6 170.3 471.9     368.1  
HVAC & Gas Products              
Segment information              
Net sales 142.1 105.5 264.5     219.1  
Drainage & Water Re-use Products              
Segment information              
Net sales 48.2 37.4 87.4     79.9  
Water Quality Products              
Segment information              
Net sales 29.1 25.5 56.5     54.2  
U.S.              
Segment information              
Net sales 285.0 222.6 539.4     469.3  
Reportable segments              
Segment information              
Operating income 64.9 39.5 135.2     96.5  
Corporate              
Segment information              
Operating income (12.2) (8.5) (22.9)     (17.7)  
Intersegment sales              
Segment information              
Net sales 48.1 29.2 84.5     49.5  
Americas              
Segment information              
Net sales 307.1 237.4 579.9     499.8  
Capital expenditures 4.8 11.1 7.2     17.7  
Depreciation and amortization 7.4 7.5 15.1     14.9  
Identifiable assets (at end of period) 1,127.2 1,079.0 1,127.2 1,127.2 1,127.2 1,079.0  
Property, plant and equipment, net (at end of period) 120.6 123.9 120.6 120.6 120.6 123.9  
Americas | Residential & Commercial Flow Control              
Segment information              
Net sales 177.2 130.7 339.5     279.4  
Americas | HVAC & Gas Products              
Segment information              
Net sales 77.6 63.0 143.5     130.6  
Americas | Drainage & Water Re-use Products              
Segment information              
Net sales 25.2 19.3 43.8     37.8  
Americas | Water Quality Products              
Segment information              
Net sales 27.1 24.4 53.1     52.0  
Americas | U.S.              
Segment information              
Property, plant and equipment, net (at end of period) 116.0 120.0 116.0 116.0 116.0 120.0  
Americas | Reportable segments              
Segment information              
Operating income 55.2 29.5 103.7     72.9  
Americas | Intersegment sales              
Segment information              
Net sales 2.5 2.9 4.9     5.5  
Europe              
Segment information              
Net sales 136.8 88.1 259.7     198.3  
Capital expenditures 2.9 3.8 5.2     6.0  
Depreciation and amortization 3.0 3.5 6.3     6.9  
Identifiable assets (at end of period) 586.7 479.7 586.7 586.7 586.7 479.7  
Property, plant and equipment, net (at end of period) 81.5 77.8 81.5 81.5 81.5 77.8  
Europe | Residential & Commercial Flow Control              
Segment information              
Net sales 51.8 30.7 99.1     71.7  
Europe | HVAC & Gas Products              
Segment information              
Net sales 60.9 38.5 115.1     82.9  
Europe | Drainage & Water Re-use Products              
Segment information              
Net sales 22.5 18.1 42.7     42.0  
Europe | Water Quality Products              
Segment information              
Net sales 1.6 0.8 2.8     1.7  
Europe | Reportable segments              
Segment information              
Operating income 5.4 9.2 24.9     22.9  
Europe | Intersegment sales              
Segment information              
Net sales 8.5 5.3 16.2     9.5  
APMEA              
Segment information              
Net sales 23.1 13.2 40.7     23.2  
Capital expenditures 0.6   0.6     0.1  
Depreciation and amortization 1.1 0.5 1.9     1.1  
Identifiable assets (at end of period) 141.4 89.6 141.4 141.4 141.4 89.6  
Property, plant and equipment, net (at end of period) 4.9 5.2 4.9 $ 4.9 $ 4.9 5.2  
APMEA | Residential & Commercial Flow Control              
Segment information              
Net sales 18.6 8.9 33.3     17.0  
APMEA | HVAC & Gas Products              
Segment information              
Net sales 3.6 4.0 5.9     5.6  
APMEA | Drainage & Water Re-use Products              
Segment information              
Net sales 0.5   0.9     0.1  
APMEA | Water Quality Products              
Segment information              
Net sales 0.4 0.3 0.6     0.5  
APMEA | Reportable segments              
Segment information              
Operating income 4.3 0.8 6.6     0.7  
APMEA | Intersegment sales              
Segment information              
Net sales $ 37.1 $ 21.0 $ 63.4     $ 34.5  
v3.21.2
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
3 Months Ended
Jun. 27, 2021
Mar. 28, 2021
Jun. 28, 2020
Mar. 29, 2020
Changes in accumulated other comprehensive income (loss)        
Balance at the beginning of the period   $ (100.0)    
Balance at the end of the period $ (109.2)      
Foreign Currency Translation        
Changes in accumulated other comprehensive income (loss)        
Balance at the beginning of the period (114.0) (99.9) $ (147.8) $ (131.3)
Change in period 5.8 (14.1) 10.0 (16.5)
Balance at the end of the period (108.2) (114.0) (137.8) (147.8)
Cash Flow Hedge        
Changes in accumulated other comprehensive income (loss)        
Balance at the beginning of the period (0.2) (0.1) (0.4) 0.5
Change in period (0.8) (0.1) (0.3) (0.9)
Balance at the end of the period (1.0) (0.2) (0.7) (0.4)
Accumulated Other Comprehensive Income (Loss)        
Changes in accumulated other comprehensive income (loss)        
Balance at the beginning of the period (114.2) (100.0) (148.2) (130.8)
Change in period 5.0 (14.2) 9.7 (17.4)
Balance at the end of the period $ (109.2) $ (114.2) $ (138.5) $ (148.2)
v3.21.2
Debt - Credit Agreement (Details) - USD ($)
6 Months Ended
Mar. 30, 2021
Apr. 24, 2020
Jun. 27, 2021
Mar. 29, 2021
Apr. 23, 2020
Feb. 12, 2016
Letters of credit            
Credit Agreement            
Term of debt     1 year      
Stand-by letters of credit outstanding     $ 14,000,000.0      
LIBOR            
Credit Agreement            
Floor interest rate 0.00%     1.00%    
Credit Agreement            
Credit Agreement            
Borrowing capacity $ 100,000,000 $ 100,000,000        
Unused and available credit under the credit agreement     591,000,000.0      
Credit Agreement | Letters of credit            
Credit Agreement            
Borrowing capacity $ 100,000,000          
Stand-by letters of credit outstanding     14,000,000.0      
Eurocurrency rate loans | LIBOR            
Credit Agreement            
Minimum base rate (as a percent)   $ 1.00        
Eurocurrency rate loans | LIBOR | Minimum            
Credit Agreement            
Interest rate added to base rate (as a percent) 1.075% 1.50%        
Eurocurrency rate loans | LIBOR | Maximum            
Credit Agreement            
Interest rate added to base rate (as a percent) 1.325% 2.10%        
Base rate loans and swing line loans            
Credit Agreement            
Minimum base rate (as a percent) $ 1.00 $ 2.00        
Base rate loans and swing line loans | LIBOR            
Credit Agreement            
Interest rate (as a percent) 1.00% 1.00%        
Base rate loans and swing line loans | Prime Rate            
Credit Agreement            
Interest rate (as a percent) 0.50% 0.50%        
Revolving credit facility            
Credit Agreement            
Borrowing capacity   $ 800,000,000     $ 500,000,000 $ 500,000,000
Amount drawn     $ 195,000,000.0      
Extension period   1 year        
Weighted average interest rate (as a percent)     1.16%      
Interest rate (as a percent)     1.65%      
Term loan facility | Term Loan due February 2021            
Credit Agreement            
Face amount           $ 300,000,000
Swing Line Loans            
Credit Agreement            
Borrowing capacity $ 15,000,000 $ 15,000,000        
v3.21.2
Contingencies and Environmental Remediation (Details)
$ in Millions
Jun. 27, 2021
USD ($)
Litigation contingencies  
Possible loss $ 4.0
Gross unrecognized tax benefits 9.0
Increase in unrecognized tax benefits, that is reasonably possible 4.6
Minimum  
Litigation contingencies  
Decrease in unrecognized tax benefits, that is reasonably possible 2.0
Maximum  
Litigation contingencies  
Decrease in unrecognized tax benefits, that is reasonably possible $ 2.5
v3.21.2
Subsequent Events (Details) - Subsequent event
Aug. 02, 2021
$ / shares
Class A  
Subsequent events  
Quarterly dividend payable (in dollars per share) $ 0.26
Class B  
Subsequent events  
Quarterly dividend payable (in dollars per share) $ 0.26