Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-41545 | |
Entity Registrant Name | MasterBrand, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 88-3479920 | |
Entity Address, Address Line One | 3300 Enterprise Parkway, Suite 300 | |
Entity Address, City or Town | Beachwood | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44122 | |
City Area Code | 877 | |
Local Phone Number | 622-4782 | |
Title of 12(g) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MBC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 127,003,405 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001941365 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Income Statement [Abstract] | ||
NET SALES | $ 638.1 | $ 676.7 |
Cost of products sold | 433.4 | 472.1 |
GROSS PROFIT | 204.7 | 204.6 |
Selling, general and administrative expenses | 137.8 | 135.3 |
Amortization of intangibles | 3.7 | 4 |
Restructuring charges (adjustments) | 0.4 | (0.4) |
OPERATING INCOME | 62.8 | 65.7 |
Interest expense | 14.1 | 17.4 |
Other (income) expense, net | (0.3) | 0.4 |
INCOME BEFORE TAXES | 49 | 47.9 |
Income tax expense | 11.5 | 12.9 |
NET INCOME | $ 37.5 | $ 35 |
Average Number of Shares of Common Stock Outstanding | ||
Basic (in shares) | 127 | 128.2 |
Diluted (in shares) | 130.5 | 129.5 |
Earnings Per Common Share | ||
Basic (in dollars per share) | $ 0.30 | $ 0.27 |
Diluted (in dollars per share) | $ 0.29 | $ 0.27 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 37.5 | $ 35 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | (1.1) | (0.2) |
Unrealized gains on derivatives: | ||
Unrealized holding gains arising during period | 1.8 | 2.6 |
Less: reclassification adjustment for gains included in net income | (0.5) | (2.4) |
Unrealized gains on derivatives | 1.3 | 0.2 |
Other comprehensive income, before tax | 0.2 | 0 |
Income tax expense related to items of other comprehensive income | 0 | 0 |
Other comprehensive income, net of tax | 0.2 | 0 |
COMPREHENSIVE INCOME | $ 37.7 | $ 35 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 153.7 | $ 148.7 |
Accounts receivable, net | 224.4 | 203 |
Inventories | 247.9 | 249.8 |
Other current assets | 76.5 | 75.7 |
TOTAL CURRENT ASSETS | 702.5 | 677.2 |
Property, plant and equipment, net of accumulated depreciation | 353.3 | 356.6 |
Operating lease right-of-use assets, net of accumulated amortization | 59.9 | 60.1 |
Goodwill | 924.3 | 925.1 |
Other intangible assets, net of accumulated amortization | 330.9 | 335.5 |
Other assets | 29.2 | 27.2 |
TOTAL ASSETS | 2,400.1 | 2,381.7 |
Current liabilities | ||
Accounts payable | 163.6 | 151.4 |
Current portion of long-term debt | 26.9 | 17.6 |
Current operating lease liabilities | 16.3 | 16.1 |
Other current liabilities | 133.6 | 164.3 |
TOTAL CURRENT LIABILITIES | 340.4 | 349.4 |
Long-term debt | 681.1 | 690.2 |
Deferred income taxes | 81.9 | 83.6 |
Pension and other postretirement plan liabilities | 8.3 | 7.9 |
Operating lease liabilities | 45.8 | 46.3 |
Other non-current liabilities | 13.6 | 10.5 |
TOTAL LIABILITIES | 1,171.1 | 1,187.9 |
Contingencies and Accrued Losses (Note 13) | ||
Equity | ||
Common stock (par value $0.01 per share; authorized 750.0 million shares; 129.9 million issued and 127.2 million outstanding as of March 31, 2024; 129.1 million issued and 126.8 million outstanding as of December 31, 2023) | 1.3 | 1.3 |
Paid-in capital | 22.1 | 17.8 |
Treasury stock, at cost | (32.9) | (26.1) |
Accumulated other comprehensive loss | (3.5) | (3.7) |
Retained earnings | 1,242 | 1,204.5 |
TOTAL EQUITY | 1,229 | 1,193.8 |
TOTAL LIABILITIES AND EQUITY | $ 2,400.1 | $ 2,381.7 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 750 | 750 |
Common stock issued (in shares) | 129.9 | 129.1 |
Common stock outstanding (in shares) | 127.2 | 126.8 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 26, 2023 | ||
OPERATING ACTIVITIES | |||
Net income | $ 37.5 | $ 35 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 12.2 | 11.3 | |
Amortization of intangibles | 3.7 | 4 | |
Restructuring charges, net of cash payments | (0.8) | (10.4) | |
Amortization of finance fees | 0.5 | 0.5 | |
Stock-based compensation | 4.3 | 4.9 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (21.7) | 14.1 | |
Inventories | 1.6 | 23.3 | |
Other current assets | 1.3 | (2) | |
Accounts payable | 10.2 | (16.9) | |
Accrued expenses and other current liabilities | (29.6) | (14.6) | |
Other items | (0.5) | 12.9 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 18.7 | 62.1 | |
INVESTING ACTIVITIES | |||
Capital expenditures | [1] | (7) | (2.9) |
Proceeds from the disposition of assets | 0 | 0.2 | |
NET CASH USED IN INVESTING ACTIVITIES | (7) | (2.7) | |
FINANCING ACTIVITIES | |||
Issuance of long-term and short-term debt | 0 | 40 | |
Repayments of long-term and short-term debt | 0 | (79.6) | |
Repurchase of common stock | (1.6) | 0 | |
Payments of employee taxes withheld from share-based awards | (4.9) | (2.8) | |
Other items | (0.6) | (0.3) | |
NET CASH USED IN FINANCING ACTIVITIES | (7.1) | (42.7) | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0.4 | (1.5) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 5 | 15.2 | |
Cash and cash equivalents at beginning of period | 148.7 | 101.1 | |
Cash and cash equivalents at end of period | $ 153.7 | $ 116.3 | |
[1] Capital expenditures of $4.1 million and $2.0 million that have not been paid as of March 31, 2024 and March 26, 2023, respectively, were excluded from the condensed consolidated statements of cash flows. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Statement of Cash Flows [Abstract] | ||
Capital expenditures incurred but not yet paid | $ 4.1 | $ 2 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Treasury stock, at cost | Accumulated Other Comprehensive (Loss) Income | Retained Earnings |
Beginning balance, shares (in shares) at Dec. 25, 2022 | 128,000,000 | |||||
Beginning balance at Dec. 25, 2022 | $ 1,009.2 | $ 1.3 | $ 0 | $ (0.1) | $ (14.5) | $ 1,022.5 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||
Net income | 35 | 35 | ||||
Net current period other comprehensive (loss) income | 0 | |||||
Shares issued under compensation plans (in shares) | 500,000 | |||||
Stock-based compensation | 2.2 | 4.9 | (2.7) | |||
Ending balance, shares (in shares) at Mar. 26, 2023 | 128,500,000 | |||||
Ending balance at Mar. 26, 2023 | $ 1,046.4 | $ 1.3 | 4.9 | (2.8) | (14.5) | 1,057.5 |
Beginning balance, shares (in shares) at Dec. 31, 2023 | 126,800,000 | 126,800,000 | ||||
Beginning balance at Dec. 31, 2023 | $ 1,193.8 | $ 1.3 | 17.8 | (26.1) | (3.7) | 1,204.5 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||
Net income | 37.5 | 37.5 | ||||
Net current period other comprehensive (loss) income | 0.2 | 0.2 | ||||
Shares issued under compensation plans (in shares) | 500,000 | |||||
Stock-based compensation | $ (0.6) | 4.3 | (4.9) | |||
Stock repurchased under repurchase program (in shares) | (104,000) | (100,000) | ||||
Stock repurchase program | $ (1.9) | (1.9) | ||||
Ending balance, shares (in shares) at Mar. 31, 2024 | 127,200,000 | 127,200,000 | ||||
Ending balance at Mar. 31, 2024 | $ 1,229 | $ 1.3 | $ 22.1 | $ (32.9) | $ (3.5) | $ 1,242 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Background MasterBrand, Inc. is a leading manufacturer of residential cabinets in North America with a portfolio of leading residential cabinetry products for the kitchen, bathroom and other parts of the home. References to “MasterBrand,” “the Company,” “we,” “our” and “us” refer to MasterBrand, Inc. and its consolidated subsidiaries, unless the context otherwise requires. Basis of Presentation Our consolidated financial statements are based on a 52- or 53-week fiscal year ending on the last Sunday in December in each calendar year. Our fiscal 2024 will consist of 52 weeks ending on December 29, 2024, while our fiscal 2023 consisted of 53 weeks ended on December 31, 2023. The condensed consolidated balance sheet as of March 31, 2024 , as well as the related condensed consolidated statements of income, comprehensive income, cash flows, and equity for the thirteen weeks ended March 31, 2024 and the thirteen weeks ended March 26, 2023 are unaudited. The presentation of these financial statements requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. In the opinion of management, all adjustments necessary for a fair statement of the financial statements have been included. Interim results may not be indicative of results for a full year. The condensed consolidated financial statements and notes are presented pursuant to the rules and regulations of the Securities and Exchange Commission and do not contain certain information included in our audited consolidated financial statements and notes. The 2023 condensed consolidated balance sheet was derived from our audited consolidated financial statements, but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 . Tornado at Jackson, GA Production Facility On January 12, 2023, a tornado hit the Company’s leased Jackson, Georgia production facility, causing damage to the Company’s assets and disrupting certain operations. Insurance, less applicable deductibles, covered the repair or replacement of the Company’s assets that suffered loss or damage, provided business interruption coverage, including lost profits, and reimbursement for other expenses and costs that were incurred relating to the damages and losses suffered. For the thirteen weeks ended March 26, 2023, the Company incurred expenses of $9.4 million solely related to damages caused by the tornado, and no additional expenses were incurred throughout the remainder of fiscal 2023. These expenses included compensation costs that we continued to pay skilled labor at the Jackson facility to enable a timely ramp up of production upon re-opening the facility on March 27, 2023, the first day of our fiscal second quarter of 2023, as well as the write-off of damaged inventory, freight costs to move product to other warehouses and professional fees to secure and maintain the site. During fiscal 2023, we received $7.4 million of insurance proceeds for direct costs caused by the tornado, of which no amounts were received during the thirteen weeks ended March 26, 2023. Both the expenses and insurance recoveries were recorded as a component of cost of products sold in the condensed consolidated statements of income. Upon receipt of the final insurance proceeds in our fourth quarter of fiscal 2023, we considered this claim to be closed. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Issued and Adopted There are no recently issued accounting pronouncements that we have adopted and which have had a material effect on our results of operations, cash flows or financial condition. Accounting Standards Issued, But Not Yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on the condensed consolidated financial statements. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The Company is currently evaluating the impact of adopting this guidance on the condensed consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Our principal performance obligations are the sale of high quality stock, semi-custom and premium cabinetry, as well as vanities, for the kitchen, bath and other parts of the home (collectively, “goods” or “products”). We recognize revenue for the sale of goods based on our assessment of when control transfers to our customers, which generally occurs upon shipment or delivery of the products. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods to our customers. Payment terms on our product sales normally range from 30 to 90 days. Taxes assessed by a governmental authority that we collect are excluded from revenue. The expected costs associated with our contractual warranties are recognized as expense when the products are sold. See Note 13, "Contingencies and Accrued Losses," for further discussion. We record estimates to reduce revenue for customer programs and incentives, which are considered variable consideration, and include price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized in order to determine the amount of consideration the Company will ultimately be entitled to receive. These estimates are based on historical and projected experience for each type of customer. In addition, for certain customer program incentives, we receive an identifiable benefit (goods or services) in exchange for the consideration given and record the associated expenditure in selling, general and administrative expenses. We account for shipping and handling costs that occur after the customer has obtained control of a product as a fulfillment activity (i.e., as an expense) rather than as a promised service (i.e., as a revenue element). These costs are classified within selling, general and administrative expenses. Settlement of our outstanding accounts receivable balances normally occurs within 30 to 90 days of the original sale transaction date. Obligations arise for us from customer rights to return our goods, including among others, product obsolescence, stock rotations, trade-in agreements for newer products and upon termination of a customer contract. We estimate future product returns at the time of sale based on historical experience and record a corresponding refund obligation, which amounted to $1.8 million and $2.1 million as of March 31, 2024 and December 31, 2023, respectively. Refund obligations are classified within other current liabilities in our condensed consolidated balance sheets. Return assets related to the refund obligation are measured at the carrying amount of the goods at the time of sale, less any expected costs to recover the goods and any expected reduction in value. The Company disaggregates revenue from contracts with customers into (i) major sales distribution channels and (ii) total sales to customers by shipping location, as these categories depict the nature, amount, timing and uncertainty of revenues and cash flows that are affected by economic factors. The following table disaggregates our consolidated revenue by major sales distribution channels and by shipping location for the thirteen weeks ended March 31, 2024 and March 26, 2023 . 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Net Sales by Channel (a) Dealers (b) $ 315.0 $ 346.8 Retailers (c) 242.9 258.5 Builders (d) 80.2 71.4 Net sales $ 638.1 $ 676.7 Net Sales by Shipping Location United States $ 608.2 $ 643.4 Canada 25.2 30.2 Mexico 4.7 3.1 Net sales $ 638.1 $ 676.7 a) Net sales by channel presented for the thirteen weeks ended March 26, 2023 have been reclassified to conform with the new format of this table, which is intended to provide a consolidated view of our net sales by channel and shipping location. Prior to our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, net sales by channel was presented for our domestic sales only. b) Represents sales to domestic dealers whose end customers include builders, professional trades and home remodelers, inclusive of sales through our dealers’ respective internet website portals. c) Represents sales to domestic “Do-It-Yourself” retailers, including our two largest customers: 1) Lowe’s and 2) The Home Depot, inclusive of sales through their respective internet website portals. d) Represents sales directly to builders. Practical Expedients Incremental costs of obtaining a contract include only those costs the Company incurs that would not have been incurred if the contract had not been obtained. These costs are required to be recognized as assets and amortized over the period that the related goods or services transfer to the customer. As a practical expedient, we expense as incurred costs to obtain a contract when the expected amortization period is one year or less. These costs are recorded within selling, general and administrative expenses in the accompanying condensed consolidated statements of income. Allowance for Credit Losses Our primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the trade accounts receivable balance to the estimated net realizable value that is expected to be collected. The allowance is based on assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowances for doubtful collection of accounts are included in selling, general and administrative expenses. The following table summarizes the activity for the thirteen weeks ended March 31, 2024 and March 26, 2023: 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Beginning balance $ 4.6 $ 11.6 Bad debt provision — 0.4 Uncollectible accounts written off, net of recoveries (0.9) (3.5) Ending balance $ 3.7 $ 8.5 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the thirteen weeks ended March 31, 2024 and March 26, 2023: 13 Weeks Ended (U.S. Dollars presented in millions, except per share amounts) March 31, 2024 March 26, 2023 Numerator: Numerator for basic and diluted earnings per share - Net income $ 37.5 $ 35.0 Denominator: Denominator for basic earnings per share - weighted average shares outstanding 127.0 128.2 Effect of dilutive securities - stock-based awards 3.5 1.3 Denominator for diluted earnings per share - weighted average shares outstanding 130.5 129.5 Earnings per share: Basic $ 0.30 $ 0.27 Diluted $ 0.29 $ 0.27 Approximately 1.0 million and 2.4 million shares were excluded from the calculation of diluted earnings per share for the thirteen weeks ended March 31, 2024 and March 26, 2023, respectively, because their inclusion would have been anti-dilutive. |
Balance Sheet Information
Balance Sheet Information | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | Balance Sheet Information Supplemental information on our balance sheets is as follows: (U.S. Dollars presented in millions) March 31, 2024 December 31, 2023 Inventories: Raw materials and supplies $ 164.8 $ 175.1 Work in process 24.6 25.1 Finished products 58.5 49.6 Total inventories $ 247.9 $ 249.8 Property, plant and equipment: Land and improvements $ 31.9 $ 31.8 Buildings and improvements to leaseholds 309.7 304.0 Machinery and equipment 558.0 551.9 Construction in progress 32.2 36.6 Property, plant and equipment, gross 931.8 924.3 Less: accumulated depreciation 578.5 567.7 Property, plant and equipment, net of accumulated depreciation $ 353.3 $ 356.6 Other current liabilities: Accrued salaries, wages and other compensation $ 34.4 $ 67.6 Accrued restructuring 0.6 1.4 Accrued income and other taxes 22.0 18.5 Accrued product warranties 11.6 12.9 Other accrued expenses 65.0 63.9 Total other current liabilities $ 133.6 $ 164.3 |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets We had goodwill of $924.3 million and $925.1 million as of March 31, 2024 and December 31, 2023, respectively. The change in the net carrying amount of goodwill was as follows: (U.S. Dollars presented in millions) Total Balance at December 31, 2023 $ 925.1 Q1 2024 translation adjustments (0.8) Balance at March 31, 2024 $ 924.3 The gross carrying value and accumulated amortization by class of intangible assets as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 (U.S. Dollars presented in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 183.3 $ — $ 183.3 $ 184.2 $ — $ 184.2 Amortizable intangible assets Tradenames 10.3 (10.3) — 10.4 (10.4) — Customer and contractual relationships 363.0 (215.4) 147.6 363.6 (212.3) 151.3 Patents/proprietary technology 11.0 (11.0) — 11.0 (11.0) — Total 384.3 (236.7) 147.6 385.0 (233.7) 151.3 Total identifiable intangibles $ 567.6 $ (236.7) $ 330.9 $ 569.2 $ (233.7) $ 335.5 There were no impairments of goodwill or indefinite-lived assets for the thirteen weeks ended March 31, 2024 . The Company tests goodwill and indefinite-lived intangibles for impairment annually in the fourth quarter or more frequently if events or changes in circumstances indicate the asset might be impaired. There were no triggering events requiring an impairment assessment be conducted in the thirteen weeks ended March 31, 2024. However, it is possible that future changes in circumstances would require the Company to record additional non-cash impairment charges. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments We do not enter into financial instruments for trading or speculative purposes. We principally use financial instruments to reduce the impact of changes in foreign currency exchange rates. The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. Derivative financial instruments are recorded at fair value. The counterparties to derivative contracts are major financial institutions. We are subject to credit risk on these contracts equal to the fair value of these instruments. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company. We account for derivative instruments as follows: • Derivative instruments that are designated as cash flow hedges - The changes in the fair value of the derivative instrument are reported in other comprehensive income and are recognized in the condensed consolidated statements of income when the hedged item affects earnings. In all periods presented, the recognized gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized in cost of products sold on the condensed consolidated statements of income. • Derivative instruments that are designated as fair value hedges - The gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized in other expense, net on the condensed consolidated statements of income. • Derivative instruments that are designated as net investment hedges - The changes in fair value of the derivative instrument are recognized in the condensed consolidated statements of income when realized upon sale or upon complete or substantially complete liquidation of the investment in the foreign entity. As of and for the thirteen weeks ended March 31, 2024 and March 26, 2023, we have only entered into foreign currency forward contracts, some of which have been designated as fair value hedges and some of which have been designated as cash flow hedges. We may enter into foreign currency forward contracts to protect against foreign exchange risks associated with certain existing assets and liabilities, forecasted future cash flows, and net investments in foreign subsidiaries. Foreign exchange contracts related to forecasted future cash flows correspond to the periods of the forecasted transactions, which generally do not exceed 12 to 15 months subsequent to the latest balance sheet date. Our primary foreign currency hedge contracts pertain to the Mexican peso and the Canadian dollar. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at March 31, 2024 was $81.8 million, representing a net settlement asset of $3.8 million. Based on foreign exchange rates as of March 31, 2024 , we estimate that the $3.5 million of net derivative gains associated with cash flow hedges and included in accumulated other comprehensive inco me as of March 31, 2024 will be reclassified to earnings within the next twelve months. The fair values of foreign exchange derivative instruments on the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 were: (U.S. Dollars presented in millions) Location March 31, 2024 December 31, 2023 Assets: Foreign exchange contracts Other current assets $ 3.9 $ 3.0 Total assets $ 3.9 $ 3.0 Liabilities: Foreign exchange contracts Other current liabilities $ 0.1 $ 0.1 Total liabilities $ 0.1 $ 0.1 The effects of cash flow hedging financial instruments included within the condensed consolidated statements of comprehensive income for the thirteen weeks ended March 31, 2024 and March 26, 2023 are presented in the table below. When the hedged item affects earnings, amounts are reclassed out of accumulated other comprehensive loss and recognized as a component of cost of products sold. Amount Recognized in Statement of Comprehensive 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Foreign exchange contracts: Unrealized holding gains arising during period $ 1.8 $ 2.6 Less: reclassification adjustment for gains included in net income (0.5) (2.4) Unrealized gains on derivatives $ 1.3 $ 0.2 The effects of fair value hedging financial instruments included in other (income) expense, net on the condensed consolidated statements of income for the thirteen weeks ended March 31, 2024 and March 26, 2023 were: Amount of Gain (Loss) Recognized in Earnings 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Foreign exchange contracts: Hedged items $ 0.1 $ 1.1 Derivatives designated as hedging instruments — (2.5) Net gains (losses) recognized in earnings $ 0.1 $ (1.4) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC requirements for Fair Value Measurements and Disclosures establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect other than quoted prices included in Level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs due to little or no market activity for the asset or liability, such as internally-developed valuation models. We do not have any assets or liabilities measured at fair value on a recurring basis that are Level 3, except for certain assumptions in estimating the fair value of indefinite-lived tradenames, as discussed in Note 8, "Goodwill and Identifiable Intangible Assets," in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 were as follows: Fair Value (U.S. Dollars presented in millions) March 31, 2024 December 31, 2023 Assets: Derivative asset financial instruments (Level 2) $ 3.9 $ 3.0 Deferred compensation program assets (Level 2) 8.9 5.5 Total assets $ 12.8 $ 8.5 Liabilities: Derivative liability financial instruments (Level 2) $ 0.1 $ 0.1 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table provides a summary of the Company’s debt as of March 31, 2024 and December 31, 2023, including the carrying value of the debt less debt issuance costs: March 31, 2024 December 31, 2023 (U.S. Dollars presented in millions) Current Long-term Current Long-term Revolving credit facility due November 2027 $ — $ — $ — $ — Term loan due November 2027 28.1 684.4 18.8 693.7 28.1 684.4 18.8 693.7 Less: Unamortized debt issuance costs (1.2) (3.3) (1.2) (3.5) Total $ 26.9 $ 681.1 $ 17.6 $ 690.2 On November 18, 2022, the Company entered into a 5-year, $1.25 billion credit agreement, consisting of a $750.0 million term loan and a $500.0 million revolving credit facility (the “2022 Credit Agreement”). The 2022 Credit Agreement is secured by certain assets as well as the guarantee of certain of our subsidiaries. The $750.0 million term loan has quarterly required amortization payments that began in March 2023. During the thirteen weeks ended September 24, 2023, the Company made total payments of $28.1 million on the term loan, consisting of a $4.7 million required payment due September 2023, and $23.4 million of required amortization payments due during each of the next three quarters. We did not make any additional term loan payments during the fourth quarter of fiscal 2023 or the first quarter of fiscal 2024, and as of March 31, 2024 we are paid in advance for our next scheduled quarterly payment due during the second quarter of 2024. Total amounts outstanding under the term loan as of both March 31, 2024 and December 31, 2023 were $712.5 million. T he revolving credit facility was paid in full during the third quarter of fiscal 2023. The revolving credit facility did not have an outstanding balance as of March 31, 2024 and December 31, 2023. As of March 31, 2024 , the Company had $477.3 million of availability under its revolving credit facility, which consists of our $500.0 million revolving credit facility less outstanding letters of credit. Interest rates under these facilities are variable based on the Secured Overnight Financing Rate (“SOFR”) at the time of the borrowing and the Company’s net leverage ratio, as measured by net leverage to our consolidated earnings before interest, taxes, depreciation and amortization (“Consolidated EBITDA”). Interest rates can range from SOFR plus 1.85 percent to SOFR plus 2.60 percent. Net leverage is defined as consolidated total indebtedness minus certain cash and cash equivalents. Consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other one-time adjustments. The net leverage ratio may not exceed 3.875 to 1.0 at the initial borrowing through the second fiscal quarter of 2023, adjusting downward in various future quarters before settling at 3.25 to 1.0 in January 2025. As of March 31, 2024 , the net leverage ratio may not exceed 3.5 to 1.0. The Company also is required to maintain a minimum interest coverage ratio, defined as Consolidated EBITDA compared to consolidated interest expense, of 3.0 to 1.0. The Company’s 2022 Credit Agreement contains additional covenants which limit or preclude certain corporate actions based upon the measurement of certain financial covenant metrics. The Company was in compliance with all of its debt covenants as of March 31, 2024 and December 31, 2023 . Interest paid on debt was $14.1 million and $17.4 million for the thirteen weeks ended March 31, 2024 and March 26, 2023, respectively |
Restructuring Charges (Adjustme
Restructuring Charges (Adjustments) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges (Adjustments) | Restructuring Charges (Adjustments) For the thirteen weeks ended March 31, 2024 , we recognized restructuring charges of $0.4 million. For the thirteen weeks ended March 26, 2023, we recognized $0.4 million of adjustments to our restructuring liability. Reconciliation of Restructuring Liability (U.S. Dollars presented in millions) Balance at December 31, 2023 Provision Cash Expenditures (a) Balance at March 31, 2024 Workforce reduction costs $ 1.3 $ 0.1 $ (0.9) $ 0.5 Other 0.1 0.3 (0.3) 0.1 $ 1.4 $ 0.4 $ (1.2) $ 0.6 (U.S. Dollars presented in millions) Balance at December 25, 2022 Provision Cash Expenditures (a) Balance at March 26, 2023 Workforce reduction costs $ 15.3 $ (1.1) $ (9.3) $ 4.9 Other 0.1 0.7 (0.7) 0.1 $ 15.4 $ (0.4) $ (10.0) $ 5.0 (a) Cash expenditures primarily related to severance charges. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rates for the thirteen weeks ended March 31, 2024, and March 26, 2023, were 23.5 percent and 26.9 percent, respectively. The net decrease in the effective tax rate between the periods is primarily due to the mix of earnings in jurisdictions with differing tax rates, the stock compensation windfall benefit for shares which vested, state and local income taxes and deferred tax liability for foreign earnings, partially offset by changes in foreign income inclusions with offsetting foreign tax credits. The difference between our effective income tax rate for the thirteen weeks ended March 31, 2024, and the U.S. statutory rate of 21.0 percent is due to the unfavorable impact of state and local income taxes, foreign income inclusions with offsetting tax credits and nondeductible compensation partially offset by the stock compensation windfall benefit for shares which vested and the mix of earnings in jurisdictions with differing tax rates. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | Pension and Other Postretirement Plans We have a defined benefit pension plan in the United States covering many of the Company’s associates. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. The defined benefit pension plan has been frozen to new participants and benefit accruals were frozen for active participants on or before December 31, 2016. During 2023, the Board of Directors of MasterBrand approved a plan to terminate the defined benefit pension plan. The termination and settlement process, which preserves retirement benefits due to participants but changes the ultimate payor of such benefits, is expected to take up to 24 months to complete, subject to receipt of customary regulatory approvals. During 2024, the Company is offering a lump-sum benefit payout option to certain plan participants. During 2025, we expect to complete the purchase of group annuity contracts that will transfer any remaining pension benefit obligation to an insurance company. The components of net periodic cost (benefit) for pension and other postretirement plans for the thirteen weeks ended March 31, 2024 and March 26, 2023, respectively, are as set forth in the tables below. Service cost is classified as either a component of cost of products sold or within selling, general and administrative expenses in the condensed consolidated statements of income, based on the nature of the job responsibilities of the associates participating in the plans. All other components of net periodic cost (benefit) are classified as other (income) expense, net in the condensed consolidated statements of income. Pension Benefits Postretirement Benefits 13 Weeks Ended 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 March 31, 2024 March 26, 2023 Service cost $ — $ — $ 0.1 $ 0.1 Interest cost 1.3 1.6 0.1 0.1 Expected return on plan assets (1.0) (1.8) — — Net periodic cost (benefit) $ 0.3 $ (0.2) $ 0.2 $ 0.2 |
Contingencies and Accrued Losse
Contingencies and Accrued Losses | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Accrued Losses | Contingencies and Accrued Losses Product Warranties We generally record warranty expense related to contractual warranty terms at the time of sale. We may also provide customer concessions for claims made outside of the contractual warranty terms and those expenses are recorded in the period in which the concession is made. We offer our customers various warranty terms based on the type of product that is sold. Warranty expense is determined based on historic claim experience and the nature of the product category. The following table summarizes activity related to our product warranty liability for the thirteen weeks ended March 31, 2024 and March 26, 2023. 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Reserve balance at the beginning of the period $ 12.9 $ 11.2 Provision for warranties issued 5.4 9.1 Settlements made (in cash or in kind) (6.7) (8.1) Reserve balance at the end of the period $ 11.6 $ 12.2 Litigation The Company is a defendant in lawsuits that are ordinary routine litigation matters incidental to our business and operations. In addition, other matters, including tax assessments, audits, claims and governmental investigations and proceedings covering a wide range of matters are pending against us. It is not possible to predict the outcome of the pending actions, and, as with any such matters, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon the Company’s results of operations, cash flows or financial condition, and where appropriate, these actions are being vigorously contested. Accordingly, the Company believes the likelihood of material loss is remote. However, such matters are subject to inherent uncertainties and unfavorable rulings or other events could occur. The Company regularly undergoes tax audits in various jurisdictions in which our products are sold or manufactured. In the future, such costs or an unfavorable outcome could have a material impact on our condensed consolidated results of operations, cash flows and financial condition. Following an audit for the 2018 tax year, the Mexican tax administration service, the Servicio de Administración Tributaria, (the “SAT”), issued a tax assessment in the amount of approximately $54.9 million to our subsidiary, Woodcrafters Home Products, S. de R.L. de C.V., for allegedly failing to make certain tax payments and to export timely certain merchandise. The Company disputed these findings and the SAT annulled their decision on January 11, 2024. In order to prevent the 2018 tax year from further audit by the SAT, the Company has filed an action to declare this annulment final in the specialized court of trade and customs in Monterrey, Nuevo Leon, Sala Especializada en Materia de Comercio Exterior y Auxiliar – Noreste, Tribunal Federal de Justicia Administrativa. We reserved an immaterial amount related to the 2018 tax year audit as our best estimate of our probable liability as of March 31, 2024 and December 31, 2023. While we cannot predict with certainty the outcome of any future review relating to the 2018 tax year or other open tax years, based on currently known information, we believe our risk of additional loss is remote and not estimable. Environmental We reserve for remediation activities to clean up potential environmental liabilities as required by federal and state laws based on our best estimate of undiscounted future costs, excluding possible insurance recoveries or recoveries from other third parties. There were no material environmental accruals as of March 31, 2024 and December 31, 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss Total accumulated other comprehensive loss consists of net income and other changes in business equity from transactions and other events from sources other than stockholders. It includes currency translation gains and losses, realized gains and losses from derivative instruments designated as cash flow hedges, and defined benefit plan adjustments. The after-tax components of and changes in accumulated other comprehensive loss for the thirteen weeks ended March 31, 2024 and March 26, 2023 were as follows: (U.S. Dollars presented in millions) Foreign Derivative Pension and Other Accumulated Balance at December 31, 2023 $ 4.1 $ 2.2 $ (10.0) $ (3.7) Amounts classified into accumulated other comprehensive (loss) income (1.1) 1.8 — 0.7 Amounts reclassified into earnings — (0.5) — (0.5) Net current period other comprehensive (loss) income (1.1) 1.3 — 0.2 Balance at March 31, 2024 $ 3.0 $ 3.5 $ (10.0) $ (3.5) Balance at December 25, 2022 $ (8.0) $ 2.8 $ (9.3) $ (14.5) Amounts classified into accumulated other comprehensive (loss) income (0.2) 2.6 — 2.4 Amounts reclassified into earnings — (2.4) — (2.4) Net current period other comprehensive (loss) income (0.2) 0.2 — — Balance at March 26, 2023 $ (8.2) $ 3.0 $ (9.3) $ (14.5) The amounts recorded in accumulated other comprehensive loss for the thirteen weeks ended March 31, 2024 and March 26, 2023 were as follows: (U.S. Dollars presented in millions) 13 Weeks Ended Details about Accumulated Other March 31, 2024 March 26, 2023 Foreign currency translation adjustments $ (1.1) $ (0.2) Cash flow hedges Unrealized holding gains arising during period $ 1.8 $ 2.6 Tax expense — — Net of tax $ 1.8 $ 2.6 Total amounts recorded in accumulated other comprehensive loss for the period $ 0.7 $ 2.4 The reclassifications out of accumulated other comprehensive loss for the thirteen weeks ended March 31, 2024 and March 26, 2023 were as follows: (U.S. Dollars presented in millions) 13 Weeks Ended Details about Accumulated Other March 31, 2024 March 26, 2023 Affected Line Item in the Consolidated Statements of Income Cash flow hedges Reclassification adjustment for gains included in net income $ (0.5) $ (2.4) Cost of products sold — — Tax expense $ (0.5) $ (2.4) Net of tax Total reclassifications for the period $ (0.5) $ (2.4) Net of tax |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program On May 9, 2023, we announced our authorization of a stock repurchase program under which we may repurchase up to $50.0 million of MasterBrand common stock over a twenty-four month period at management’s discretion for general corporate purposes. As a result of this authorization, we may repurchase shares from time to time through open market purchases, privately-negotiated transactions, block trades or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and amount of our purchases will depend upon prevailing market conditions, our available capital resources, our financial and operational performance, alternative uses of capital and other factors. We may limit or terminate the repurchase program at any time. During the thirteen weeks ended March 31, 2024, we repurchased 104,000 shares of our common stock under this program. The shares were repurchased at a cost of approximately $1.9 million, or an average of $18.29 per share, during the thirteen weeks ended March 31, 2024. As of March 31, 2024, $26.1 million remained authorized for purchase under our stock repurchase program. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 37.5 | $ 35 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our consolidated financial statements are based on a 52- or 53-week fiscal year ending on the last Sunday in December in each calendar year. Our fiscal 2024 will consist of 52 weeks ending on December 29, 2024, while our fiscal 2023 consisted of 53 weeks ended on December 31, 2023. The condensed consolidated balance sheet as of March 31, 2024 , as well as the related condensed consolidated statements of income, comprehensive income, cash flows, and equity for the thirteen weeks ended March 31, 2024 and the thirteen weeks ended March 26, 2023 are unaudited. The presentation of these financial statements requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. In the opinion of management, all adjustments necessary for a fair statement of the financial statements have been included. Interim results may not be indicative of results for a full year. The condensed consolidated financial statements and notes are presented pursuant to the rules and regulations of the Securities and Exchange Commission and do not contain certain information included in our audited consolidated financial statements and notes. The 2023 condensed consolidated balance sheet was derived from our audited consolidated financial statements, but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 . |
Accounting Standards Issued and Adopted | Accounting Standards Issued and Adopted There are no recently issued accounting pronouncements that we have adopted and which have had a material effect on our results of operations, cash flows or financial condition. Accounting Standards Issued, But Not Yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on the condensed consolidated financial statements. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The Company is currently evaluating the impact of adopting this guidance on the condensed consolidated financial statements. |
Revenue from Contract with Cust
Revenue from Contract with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our consolidated revenue by major sales distribution channels and by shipping location for the thirteen weeks ended March 31, 2024 and March 26, 2023 . 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Net Sales by Channel (a) Dealers (b) $ 315.0 $ 346.8 Retailers (c) 242.9 258.5 Builders (d) 80.2 71.4 Net sales $ 638.1 $ 676.7 Net Sales by Shipping Location United States $ 608.2 $ 643.4 Canada 25.2 30.2 Mexico 4.7 3.1 Net sales $ 638.1 $ 676.7 a) Net sales by channel presented for the thirteen weeks ended March 26, 2023 have been reclassified to conform with the new format of this table, which is intended to provide a consolidated view of our net sales by channel and shipping location. Prior to our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, net sales by channel was presented for our domestic sales only. b) Represents sales to domestic dealers whose end customers include builders, professional trades and home remodelers, inclusive of sales through our dealers’ respective internet website portals. c) Represents sales to domestic “Do-It-Yourself” retailers, including our two largest customers: 1) Lowe’s and 2) The Home Depot, inclusive of sales through their respective internet website portals. d) |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity for the thirteen weeks ended March 31, 2024 and March 26, 2023: 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Beginning balance $ 4.6 $ 11.6 Bad debt provision — 0.4 Uncollectible accounts written off, net of recoveries (0.9) (3.5) Ending balance $ 3.7 $ 8.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the thirteen weeks ended March 31, 2024 and March 26, 2023: 13 Weeks Ended (U.S. Dollars presented in millions, except per share amounts) March 31, 2024 March 26, 2023 Numerator: Numerator for basic and diluted earnings per share - Net income $ 37.5 $ 35.0 Denominator: Denominator for basic earnings per share - weighted average shares outstanding 127.0 128.2 Effect of dilutive securities - stock-based awards 3.5 1.3 Denominator for diluted earnings per share - weighted average shares outstanding 130.5 129.5 Earnings per share: Basic $ 0.30 $ 0.27 Diluted $ 0.29 $ 0.27 |
Balance Sheet Information - (Ta
Balance Sheet Information - (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | Supplemental information on our balance sheets is as follows: (U.S. Dollars presented in millions) March 31, 2024 December 31, 2023 Inventories: Raw materials and supplies $ 164.8 $ 175.1 Work in process 24.6 25.1 Finished products 58.5 49.6 Total inventories $ 247.9 $ 249.8 Property, plant and equipment: Land and improvements $ 31.9 $ 31.8 Buildings and improvements to leaseholds 309.7 304.0 Machinery and equipment 558.0 551.9 Construction in progress 32.2 36.6 Property, plant and equipment, gross 931.8 924.3 Less: accumulated depreciation 578.5 567.7 Property, plant and equipment, net of accumulated depreciation $ 353.3 $ 356.6 Other current liabilities: Accrued salaries, wages and other compensation $ 34.4 $ 67.6 Accrued restructuring 0.6 1.4 Accrued income and other taxes 22.0 18.5 Accrued product warranties 11.6 12.9 Other accrued expenses 65.0 63.9 Total other current liabilities $ 133.6 $ 164.3 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the net carrying amount of goodwill was as follows: (U.S. Dollars presented in millions) Total Balance at December 31, 2023 $ 925.1 Q1 2024 translation adjustments (0.8) Balance at March 31, 2024 $ 924.3 |
Schedule of Finite-Lived Intangible Assets | The gross carrying value and accumulated amortization by class of intangible assets as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 (U.S. Dollars presented in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 183.3 $ — $ 183.3 $ 184.2 $ — $ 184.2 Amortizable intangible assets Tradenames 10.3 (10.3) — 10.4 (10.4) — Customer and contractual relationships 363.0 (215.4) 147.6 363.6 (212.3) 151.3 Patents/proprietary technology 11.0 (11.0) — 11.0 (11.0) — Total 384.3 (236.7) 147.6 385.0 (233.7) 151.3 Total identifiable intangibles $ 567.6 $ (236.7) $ 330.9 $ 569.2 $ (233.7) $ 335.5 |
Schedule of Indefinite-Lived Intangible Assets | The gross carrying value and accumulated amortization by class of intangible assets as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 (U.S. Dollars presented in millions) Gross Accumulated Net Gross Accumulated Net Indefinite-lived tradenames $ 183.3 $ — $ 183.3 $ 184.2 $ — $ 184.2 Amortizable intangible assets Tradenames 10.3 (10.3) — 10.4 (10.4) — Customer and contractual relationships 363.0 (215.4) 147.6 363.6 (212.3) 151.3 Patents/proprietary technology 11.0 (11.0) — 11.0 (11.0) — Total 384.3 (236.7) 147.6 385.0 (233.7) 151.3 Total identifiable intangibles $ 567.6 $ (236.7) $ 330.9 $ 569.2 $ (233.7) $ 335.5 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Values of Foreign Exchange Derivative Instruments on the Consolidated Balance Sheets | The fair values of foreign exchange derivative instruments on the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 were: (U.S. Dollars presented in millions) Location March 31, 2024 December 31, 2023 Assets: Foreign exchange contracts Other current assets $ 3.9 $ 3.0 Total assets $ 3.9 $ 3.0 Liabilities: Foreign exchange contracts Other current liabilities $ 0.1 $ 0.1 Total liabilities $ 0.1 $ 0.1 |
Effects of Derivative Financial Instruments on the Consolidated Statements of Income | Amount Recognized in Statement of Comprehensive 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Foreign exchange contracts: Unrealized holding gains arising during period $ 1.8 $ 2.6 Less: reclassification adjustment for gains included in net income (0.5) (2.4) Unrealized gains on derivatives $ 1.3 $ 0.2 The effects of fair value hedging financial instruments included in other (income) expense, net on the condensed consolidated statements of income for the thirteen weeks ended March 31, 2024 and March 26, 2023 were: Amount of Gain (Loss) Recognized in Earnings 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Foreign exchange contracts: Hedged items $ 0.1 $ 1.1 Derivatives designated as hedging instruments — (2.5) Net gains (losses) recognized in earnings $ 0.1 $ (1.4) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 were as follows: Fair Value (U.S. Dollars presented in millions) March 31, 2024 December 31, 2023 Assets: Derivative asset financial instruments (Level 2) $ 3.9 $ 3.0 Deferred compensation program assets (Level 2) 8.9 5.5 Total assets $ 12.8 $ 8.5 Liabilities: Derivative liability financial instruments (Level 2) $ 0.1 $ 0.1 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table provides a summary of the Company’s debt as of March 31, 2024 and December 31, 2023, including the carrying value of the debt less debt issuance costs: March 31, 2024 December 31, 2023 (U.S. Dollars presented in millions) Current Long-term Current Long-term Revolving credit facility due November 2027 $ — $ — $ — $ — Term loan due November 2027 28.1 684.4 18.8 693.7 28.1 684.4 18.8 693.7 Less: Unamortized debt issuance costs (1.2) (3.3) (1.2) (3.5) Total $ 26.9 $ 681.1 $ 17.6 $ 690.2 |
Restructuring Charges (Adjust_2
Restructuring Charges (Adjustments) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Liabilities | (U.S. Dollars presented in millions) Balance at December 31, 2023 Provision Cash Expenditures (a) Balance at March 31, 2024 Workforce reduction costs $ 1.3 $ 0.1 $ (0.9) $ 0.5 Other 0.1 0.3 (0.3) 0.1 $ 1.4 $ 0.4 $ (1.2) $ 0.6 (U.S. Dollars presented in millions) Balance at December 25, 2022 Provision Cash Expenditures (a) Balance at March 26, 2023 Workforce reduction costs $ 15.3 $ (1.1) $ (9.3) $ 4.9 Other 0.1 0.7 (0.7) 0.1 $ 15.4 $ (0.4) $ (10.0) $ 5.0 (a) Cash expenditures primarily related to severance charges. |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic cost (benefit) for pension and other postretirement plans for the thirteen weeks ended March 31, 2024 and March 26, 2023, respectively, are as set forth in the tables below. Service cost is classified as either a component of cost of products sold or within selling, general and administrative expenses in the condensed consolidated statements of income, based on the nature of the job responsibilities of the associates participating in the plans. All other components of net periodic cost (benefit) are classified as other (income) expense, net in the condensed consolidated statements of income. Pension Benefits Postretirement Benefits 13 Weeks Ended 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 March 31, 2024 March 26, 2023 Service cost $ — $ — $ 0.1 $ 0.1 Interest cost 1.3 1.6 0.1 0.1 Expected return on plan assets (1.0) (1.8) — — Net periodic cost (benefit) $ 0.3 $ (0.2) $ 0.2 $ 0.2 |
Contingencies and Accrued Los_2
Contingencies and Accrued Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table summarizes activity related to our product warranty liability for the thirteen weeks ended March 31, 2024 and March 26, 2023. 13 Weeks Ended (U.S. Dollars presented in millions) March 31, 2024 March 26, 2023 Reserve balance at the beginning of the period $ 12.9 $ 11.2 Provision for warranties issued 5.4 9.1 Settlements made (in cash or in kind) (6.7) (8.1) Reserve balance at the end of the period $ 11.6 $ 12.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The after-tax components of and changes in accumulated other comprehensive loss for the thirteen weeks ended March 31, 2024 and March 26, 2023 were as follows: (U.S. Dollars presented in millions) Foreign Derivative Pension and Other Accumulated Balance at December 31, 2023 $ 4.1 $ 2.2 $ (10.0) $ (3.7) Amounts classified into accumulated other comprehensive (loss) income (1.1) 1.8 — 0.7 Amounts reclassified into earnings — (0.5) — (0.5) Net current period other comprehensive (loss) income (1.1) 1.3 — 0.2 Balance at March 31, 2024 $ 3.0 $ 3.5 $ (10.0) $ (3.5) Balance at December 25, 2022 $ (8.0) $ 2.8 $ (9.3) $ (14.5) Amounts classified into accumulated other comprehensive (loss) income (0.2) 2.6 — 2.4 Amounts reclassified into earnings — (2.4) — (2.4) Net current period other comprehensive (loss) income (0.2) 0.2 — — Balance at March 26, 2023 $ (8.2) $ 3.0 $ (9.3) $ (14.5) |
Reclassification out of Accumulated Other Comprehensive Income | The amounts recorded in accumulated other comprehensive loss for the thirteen weeks ended March 31, 2024 and March 26, 2023 were as follows: (U.S. Dollars presented in millions) 13 Weeks Ended Details about Accumulated Other March 31, 2024 March 26, 2023 Foreign currency translation adjustments $ (1.1) $ (0.2) Cash flow hedges Unrealized holding gains arising during period $ 1.8 $ 2.6 Tax expense — — Net of tax $ 1.8 $ 2.6 Total amounts recorded in accumulated other comprehensive loss for the period $ 0.7 $ 2.4 The reclassifications out of accumulated other comprehensive loss for the thirteen weeks ended March 31, 2024 and March 26, 2023 were as follows: (U.S. Dollars presented in millions) 13 Weeks Ended Details about Accumulated Other March 31, 2024 March 26, 2023 Affected Line Item in the Consolidated Statements of Income Cash flow hedges Reclassification adjustment for gains included in net income $ (0.5) $ (2.4) Cost of products sold — — Tax expense $ (0.5) $ (2.4) Net of tax Total reclassifications for the period $ (0.5) $ (2.4) Net of tax |
Basis of Presentation and Pri_3
Basis of Presentation and Principles of Consolidation (Details) - Tornado - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 26, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Other nonrecurring expense | $ 9.4 | $ 0 | |
Insurance proceeds | $ 0 | $ 7.4 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, estimate refund | $ 1.8 | $ 2.1 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, terms of payment | 30 days | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, terms of payment | 90 days |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 638.1 | $ 676.7 |
Dealer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 315 | 346.8 |
Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 242.9 | 258.5 |
Builders | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 80.2 | 71.4 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 608.2 | 643.4 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 25.2 | 30.2 |
Mexico | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 4.7 | $ 3.1 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Accounts Receivable Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 4.6 | $ 11.6 |
Bad debt provision | 0 | 0.4 |
Uncollectible accounts written off, net of recoveries | (0.9) | (3.5) |
Ending balance | $ 3.7 | $ 8.5 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Disaggregation of Revenue by Channel (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 638.1 | $ 676.7 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 608.2 | 643.4 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 25.2 | 30.2 |
Mexico | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 4.7 | 3.1 |
Dealer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 315 | 346.8 |
Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 242.9 | 258.5 |
Builders | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 80.2 | $ 71.4 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive weighted-average stock awards (in shares) | 1 | 2.4 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Numerator: | ||
Numerator for basic and diluted earnings per share - Net income | $ 37.5 | $ 35 |
Denominator: | ||
Denominator for basic earnings per share - weighted average shares outstanding (in shares) | 127 | 128.2 |
Effect of dilutive securities - stock-based awards (in shares) | 3.5 | 1.3 |
Denominator for diluted earnings per share - weighted average shares outstanding (in shares) | 130.5 | 129.5 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.30 | $ 0.27 |
Diluted (in dollars per share) | $ 0.29 | $ 0.27 |
Balance Sheet Information- Sche
Balance Sheet Information- Schedule of Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventories: | ||
Raw materials and supplies | $ 164.8 | $ 175.1 |
Work in process | 24.6 | 25.1 |
Finished products | 58.5 | 49.6 |
Total inventories | 247.9 | 249.8 |
Property, plant and equipment: | ||
Property, plant and equipment, gross | 931.8 | 924.3 |
Less: accumulated depreciation | 578.5 | 567.7 |
Property, plant and equipment, net of accumulated depreciation | 353.3 | 356.6 |
Other current liabilities: | ||
Accrued salaries, wages and other compensation | 34.4 | 67.6 |
Accrued restructuring | 0.6 | 1.4 |
Accrued income and other taxes | 22 | 18.5 |
Accrued product warranties | 11.6 | 12.9 |
Other accrued expenses | 65 | 63.9 |
Total other current liabilities | 133.6 | 164.3 |
Land and improvements | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 31.9 | 31.8 |
Buildings and improvements to leaseholds | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 309.7 | 304 |
Machinery and equipment | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 558 | 551.9 |
Construction in progress | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | $ 32.2 | $ 36.6 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 24, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 924.3 | $ 925.1 | $ 924.3 |
Impairment of goodwill | 0 | ||
Impairment of intangible assets, indefinite-lived | $ 0 |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Sep. 24, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Currency translation adjustment | $ (0.8) |
Goodwill, ending balance | $ 924.3 |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | $ 384.3 | $ 385 |
Accumulated Amortization | (236.7) | (233.7) |
Net Book Value | 147.6 | 151.3 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Net Book Value | 567.6 | 569.2 |
Accumulated Amortization | (236.7) | (233.7) |
Total identifiable intangibles | 330.9 | 335.5 |
Tradenames | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived tradenames | 183.3 | 184.2 |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | 10.3 | 10.4 |
Accumulated Amortization | (10.3) | (10.4) |
Net Book Value | 0 | 0 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (10.3) | (10.4) |
Customer and contractual relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | 363 | 363.6 |
Accumulated Amortization | (215.4) | (212.3) |
Net Book Value | 147.6 | 151.3 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (215.4) | (212.3) |
Patents/proprietary technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | 11 | 11 |
Accumulated Amortization | (11) | (11) |
Net Book Value | 0 | 0 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (11) | $ (11) |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Derivative [Line Items] | ||
Unrealized holding gains arising during period | $ 1.8 | $ 2.6 |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Unrealized holding gains arising during period | $ 1.8 | $ 2.6 |
Foreign Exchange Contract | Minimum | ||
Derivative [Line Items] | ||
Derivative, term of contract | 12 months | |
Foreign Exchange Contract | Maximum | ||
Derivative [Line Items] | ||
Derivative, term of contract | 15 months | |
Designated as Hedging Instrument | USD to Mexican Peso and Canadian Dollar | ||
Derivative [Line Items] | ||
Notional amount | $ 81.8 | |
Net derivative asset | 3.8 | |
Net gain on derivative | $ 3.5 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Foreign Exchange Derivatives Recorded in the Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 3.9 | $ 3 |
Derivative liability | 0.1 | 0.1 |
Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 3.9 | 3 |
Derivative liability | $ 0.1 | $ 0.1 |
Financial Instruments - Effect
Financial Instruments - Effect of Derivative Instruments on Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized holding gains arising during period | $ 1.8 | $ 2.6 |
Less: reclassification adjustment for gains included in net income | (0.5) | (2.4) |
Unrealized gains on derivatives | 1.3 | 0.2 |
Foreign Exchange Contract | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized holding gains arising during period | 1.8 | 2.6 |
Less: reclassification adjustment for gains included in net income | (0.5) | (2.4) |
Unrealized gains on derivatives | 1.3 | 0.2 |
Hedged items | 0.1 | 1.1 |
Derivatives designated as hedging instruments | 0 | (2.5) |
Net gains (losses) recognized in earnings | $ 0.1 | $ (1.4) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Derivative asset | $ 3.9 | $ 3 |
Liabilities: | ||
Derivative liability | 0.1 | 0.1 |
Fair Value, Recurring | ||
Assets: | ||
Total assets | 12.8 | 8.5 |
Fair Value, Inputs, Level 2 | Fair Value, Recurring | ||
Assets: | ||
Derivative asset | 3.9 | 3 |
Deferred compensation plan assets | 8.9 | 5.5 |
Liabilities: | ||
Derivative liability | $ 0.1 | $ 0.1 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, current maturities, gross | $ 28.1 | $ 18.8 |
Long-term debt, excluding current maturities, gross | 684.4 | 693.7 |
Current debt issuance costs, net | (1.2) | (1.2) |
Noncurrent debt issuance costs, net | (3.3) | (3.5) |
Long-Term Debt, Current Maturities, Total | 26.9 | 17.6 |
Long-Term Debt, Excluding Current Maturities, Total | 681.1 | 690.2 |
Secured Debt | The Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, current maturities, gross | 28.1 | 18.8 |
Long-term debt, excluding current maturities, gross | 684.4 | 693.7 |
Revolving Credit Facility | Line of Credit | The Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, current maturities, gross | 0 | 0 |
Long-term debt, excluding current maturities, gross | $ 0 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) - The Credit Facility $ in Millions | 3 Months Ended | ||
Nov. 18, 2022 USD ($) | Mar. 31, 2024 USD ($) | Mar. 26, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Face amount | $ 1,250 | ||
Maximum net debt to EBITDA ratio | 3.5 | ||
Maximum EBITDA to consolidated interest expense | 3 | ||
Interest expense | $ 14.1 | $ 17.4 | |
Through Second Fiscal Quarter Of 2023 | |||
Debt Instrument [Line Items] | |||
Maximum net debt to EBITDA ratio | 3.875 | ||
January 2025 | |||
Debt Instrument [Line Items] | |||
Maximum net debt to EBITDA ratio | 3.25 | ||
Minimum | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Interest rate spread | 1.85% | ||
Maximum | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Interest rate spread | 2.60% | ||
Secured Debt | |||
Debt Instrument [Line Items] | |||
Face amount | $ 750 | ||
Repayments of secured debt | $ 28.1 | ||
Total amortization payments | 4.7 | ||
Debt instrument, periodic payment, prepayment | 23.4 | ||
Long-term debt, gross | 712.5 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | $ 477.3 | ||
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Face amount | $ 500 |
Restructuring Charges (Adjust_3
Restructuring Charges (Adjustments) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges (adjustments) | $ 0.4 | $ (0.4) |
Restructuring Charges (Adjust_4
Restructuring Charges (Adjustments) - Restructuring Charges Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 1.4 | $ 15.4 |
Restructuring Charges | 0.4 | (0.4) |
Payments for restructuring | (1.2) | (10) |
Ending balance | 0.6 | 5 |
Workforce reduction costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 1.3 | 15.3 |
Restructuring Charges | 0.1 | (1.1) |
Payments for restructuring | (0.9) | (9.3) |
Ending balance | 0.5 | 4.9 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.1 | 0.1 |
Restructuring Charges | 0.3 | 0.7 |
Payments for restructuring | (0.3) | (0.7) |
Ending balance | $ 0.1 | $ 0.1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | 23.50% | 26.90% |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 1.3 | 1.6 |
Expected return on plan assets | (1) | (1.8) |
Net periodic (benefit) cost | 0.3 | (0.2) |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.1 | 0.1 |
Interest cost | 0.1 | 0.1 |
Expected return on plan assets | 0 | 0 |
Net periodic (benefit) cost | $ 0.2 | $ 0.2 |
Contingencies and Accrued Los_3
Contingencies and Accrued Losses - Product Warranty (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Reserve balance at the beginning of the period | $ 12.9 | $ 11.2 |
Provision for warranties issued | 5.4 | 9.1 |
Settlements made (in cash or in kind) | (6.7) | (8.1) |
Reserve balance at the end of the period | $ 11.6 | $ 12.2 |
Contingencies and Accrued Los_4
Contingencies and Accrued Losses - Additional Information (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Mexican Tax Authority | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 54.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,193.8 | $ 1,009.2 |
Amounts classified into accumulated other comprehensive (loss) income | 0.7 | 2.4 |
Amounts reclassified into earnings | (0.5) | (2.4) |
Net current period other comprehensive (loss) income | 0.2 | 0 |
Ending balance | 1,229 | 1,046.4 |
Foreign Currency Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 4.1 | (8) |
Amounts classified into accumulated other comprehensive (loss) income | (1.1) | (0.2) |
Amounts reclassified into earnings | 0 | 0 |
Net current period other comprehensive (loss) income | (1.1) | (0.2) |
Ending balance | 3 | (8.2) |
Derivative Hedging Gain (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 2.2 | 2.8 |
Amounts classified into accumulated other comprehensive (loss) income | 1.8 | 2.6 |
Amounts reclassified into earnings | (0.5) | (2.4) |
Net current period other comprehensive (loss) income | 1.3 | 0.2 |
Ending balance | 3.5 | 3 |
Pension and Other Postretirement Plans Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (10) | (9.3) |
Amounts classified into accumulated other comprehensive (loss) income | 0 | 0 |
Amounts reclassified into earnings | 0 | 0 |
Net current period other comprehensive (loss) income | 0 | 0 |
Ending balance | (10) | (9.3) |
Accumulated Other Comprehensive (Loss) Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (3.7) | (14.5) |
Net current period other comprehensive (loss) income | 0.2 | |
Ending balance | $ (3.5) | $ (14.5) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Amounts Recorded in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (1.1) | $ (0.2) |
Unrealized holding gains arising during period | 1.8 | 2.6 |
Cash flow hedge, gain (loss), reclassification, tax | 0 | 0 |
Cash flow hedge, gain (loss) before reclassification, after tax | 1.8 | 2.6 |
Total amounts recorded in accumulated other comprehensive loss for the period | $ 0.7 | $ 2.4 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Reclassification of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 26, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cost of products sold | $ 433.4 | $ 472.1 |
Income tax expense | 11.5 | 12.9 |
Net income | 37.5 | 35 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net income | (0.5) | (2.4) |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Income tax expense | 0 | 0 |
Net income | (0.5) | (2.4) |
Cost of products sold | Foreign Exchange Contract | Reclassification out of Accumulated Other Comprehensive Income | Derivative Hedging Gain (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cost of products sold | $ (0.5) | $ (2.4) |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 09, 2023 | Mar. 31, 2024 | |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 50 | |
Stock repurchase program, period | 24 months | |
Stock repurchased under repurchase program (in shares) | 104,000 | |
Stock repurchased during period, amount | $ 1.9 | |
Average cost per share (in USD per share) | $ 18.29 | |
Remaining authorized repurchase amount | $ 26.1 |