COVER
COVER - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 10, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 0-362 | ||
Entity Registrant Name | FRANKLIN ELECTRIC CO., INC. | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-0827455 | ||
Entity Address, Address Line One | 9255 Coverdale Road | ||
Entity Address, City or Town | Fort Wayne, | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 46809 | ||
City Area Code | 260 | ||
Local Phone Number | 824-2900 | ||
Title of 12(b) Security | Common Stock, $0.10 par value | ||
Trading Symbol | FELE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,727,659,914 | ||
Entity Common Stock, Shares Outstanding | 46,481,113 | ||
Documents Incorporated by Reference | A portion of the Proxy Statement for the Annual Meeting of Shareholders to be held on May 6, 2022 (Part III). | ||
Entity Central Index Key | 0000038725 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | Chicago, Illinois |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 1,661,865 | $ 1,247,331 | $ 1,314,578 |
Cost of sales | 1,085,776 | 814,192 | 886,475 |
Gross profit | 576,089 | 433,139 | 428,103 |
Selling, general, and administrative expenses | 386,275 | 300,122 | 298,451 |
Restructuring expense | 621 | 2,506 | 2,519 |
Operating income | 189,193 | 130,511 | 127,133 |
Interest expense | (5,196) | (4,627) | (8,245) |
Other income/(expense), net | 7,978 | (795) | (412) |
Foreign exchange income/(expense) | (2,269) | (1,392) | (1,641) |
Income before income taxes | 189,706 | 123,697 | 116,835 |
Income tax expense | 34,731 | 22,540 | 20,836 |
Net income | 154,975 | 101,157 | 95,999 |
Less: Net loss/(income) attributable to noncontrolling interests | (1,115) | (697) | (516) |
Net income attributable to Franklin Electric Co., Inc. | $ 153,860 | $ 100,460 | $ 95,483 |
Income per share: | |||
Basic | $ 3.29 | $ 2.16 | $ 2.04 |
Diluted | $ 3.25 | $ 2.14 | $ 2.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 154,975 | $ 101,157 | $ 95,999 |
Other comprehensive income/(loss), before tax: | |||
Foreign currency translation adjustments | (27,534) | (11,868) | (5,659) |
Employee benefit plan activity: | |||
Net gain/(loss) arising during period | 288 | (7,398) | (5,006) |
Amortization arising during period | 4,760 | 3,709 | 2,913 |
Other comprehensive income/(loss) | (22,486) | (15,557) | (7,752) |
Income tax benefit/(expense) related to items of other comprehensive loss | (1,458) | 1,112 | 589 |
Other comprehensive income/(loss), net of tax | (23,944) | (14,445) | (7,163) |
Comprehensive income | 131,031 | 86,712 | 88,836 |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 981 | 813 | 544 |
Comprehensive income attributable to Franklin Electric Co., Inc. | $ 130,050 | $ 85,899 | $ 88,292 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 40,536 | $ 130,787 |
Receivables, less allowances of $3,975 and $3,999, respectively | 196,173 | 159,827 |
Inventories: | ||
Raw material | 166,918 | 87,226 |
Work-in-process | 24,725 | 20,565 |
Finished goods | 258,332 | 193,141 |
Total inventories | 449,975 | 300,932 |
Other current assets | 37,963 | 27,708 |
Total current assets | 724,647 | 619,254 |
Property, plant, and equipment, at cost: | ||
Land and buildings | 154,544 | 152,323 |
Machinery and equipment | 296,078 | 287,840 |
Furniture and fixtures | 44,324 | 47,890 |
Other | 40,231 | 33,193 |
Property, plant, and equipment, gross | 535,177 | 521,246 |
Less: Allowance for depreciation | (324,523) | (312,225) |
Property, plant, and equipment, net | 210,654 | 209,021 |
Right-of-Use Asset, net | 48,379 | 31,954 |
Deferred income taxes | 7,675 | 8,824 |
Intangible assets, net | 249,691 | 133,782 |
Goodwill | 329,630 | 266,737 |
Other assets | 4,489 | 2,735 |
Total assets | 1,575,165 | 1,272,307 |
Current liabilities: | ||
Accounts payable | 164,758 | 95,903 |
Accrued expenses and other current liabilities | 115,408 | 89,048 |
Current lease liability | 15,320 | 11,090 |
Income taxes | 2,547 | 5,112 |
Current maturities of long-term debt and short-term borrowings | 97,981 | 2,551 |
Total current liabilities | 396,014 | 203,704 |
Long-term debt | 90,535 | 91,966 |
Long-term lease liability | 32,937 | 20,866 |
Income taxes payable non-current | 11,610 | 11,965 |
Deferred income taxes | 28,162 | 25,671 |
Employee benefit plans | 40,696 | 44,443 |
Other long-term liabilities | 26,568 | 23,988 |
Commitments and contingencies (see Note 16) | 0 | 0 |
Redeemable noncontrolling interest | (19) | (245) |
Shareholders’ equity: | ||
Common stock (65,000 shares authorized, $0.10 par value) outstanding (46,483 and 46,222, respectively) | 4,648 | 4,622 |
Additional capital | 310,617 | 283,420 |
Retained earnings | 859,817 | 764,562 |
Accumulated other comprehensive loss | (228,581) | (204,771) |
Total shareholders’ equity | 946,501 | 847,833 |
Noncontrolling interest | 2,161 | 2,116 |
Total equity | 948,662 | 849,949 |
Total liabilities and equity | $ 1,575,165 | $ 1,272,307 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Allowance for doubtful accounts | $ 3,975 | $ 3,999 |
Shareholders’ equity: | ||
Common Stock, Shares Authorized | 65,000,000 | 65,000,000 |
Common shares, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common shares, outstanding | 46,483,000 | 46,222,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 154,975 | $ 101,157 | $ 95,999 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 44,572 | 36,488 | 36,977 |
Non-cash lease expense | 13,808 | 11,699 | 11,699 |
Share-based compensation | 11,731 | 10,066 | 8,957 |
Deferred income taxes | 126 | (4,268) | (2,566) |
(Gain)/Loss on disposals of plant and equipment | (269) | 1,241 | 891 |
Gain from bargain purchase of business | (6,482) | 0 | 0 |
Foreign exchange (income)/expense | 2,269 | 1,392 | 1,641 |
Changes in assets and liabilities, net of acquisitions: | |||
Receivables | (31,925) | 22,053 | 1,076 |
Inventory | (123,076) | 13,144 | 17,228 |
Accounts payable and accrued expenses | 89,038 | 20,519 | 6,770 |
Operating leases | 13,808 | 11,698 | 11,698 |
Income taxes | (2,241) | 2,507 | 6,449 |
Employee benefit plans | 1,245 | 604 | (1,443) |
Other, net | (10,200) | 6,950 | 5,696 |
Net cash flows from operating activities | 129,763 | 211,854 | 177,676 |
Cash flows from investing activities: | |||
Additions to property, plant, and equipment | (30,116) | (22,856) | (21,855) |
Proceeds from sale of property, plant, and equipment | 979 | 34 | 866 |
Cash paid for acquisitions, net of cash acquired | (235,701) | (55,915) | (20,827) |
Other, net | 33 | (74) | 10 |
Net cash flows from investing activities | (264,805) | (78,811) | (41,806) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 321,299 | 117,758 | 264,389 |
Repayment of debt | (226,583) | (138,831) | (355,332) |
Proceeds from issuance of common stock | 15,524 | 3,721 | 3,194 |
Purchases of common stock | (25,949) | (19,553) | (10,741) |
Dividends paid | (33,398) | (29,675) | (27,671) |
Purchase of redeemable noncontrolling shares | 0 | 0 | (487) |
Net cash flows from financing activities | 50,893 | (66,580) | (126,648) |
Effect of exchange rate changes on cash | (6,102) | (81) | (3,990) |
Net change in cash and equivalents | (90,251) | 66,382 | 5,232 |
Cash and equivalents at beginning of period | 130,787 | 64,405 | 59,173 |
Cash and equivalents at end of period | 40,536 | 130,787 | 64,405 |
Cash paid for income taxes, net of refunds | 37,387 | 23,869 | 16,949 |
Cash paid for interest | 5,192 | 4,695 | 8,388 |
Non-cash items: | |||
Additions to property, plant, and equipment, not yet paid | 1,454 | 1,059 | 1,509 |
Right-of-Use Assets obtained in exchange for new operating lease liabilities | 19,627 | 15,421 | 4,922 |
Payable to sellers of acquired entities | $ 4,000 | $ 0 | $ 845 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Noncontrolling Interest |
Minimum pension liability tax (expense)/benefit | $ 589 | |||||
Dividends per common share (in dollars per share) | $ 0.5800 | |||||
Balance at Dec. 31, 2018 | $ 4,632 | $ 257,535 | $ 654,724 | (183,019) | $ 1,955 | |
Balance (in shares) at Dec. 31, 2018 | 46,326,000 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income | 95,483 | 842 | ||||
Currency translation adjustment | (5,687) | (31) | ||||
Minimum pension liability adjustment, net of tax (expense)/benefit of ($1,458), $1,112, and $589, for 2021, 2020, and 2019, respectively | 1,504 | |||||
Dividends on common stock ($0.7000, $0.6200, and $0.5800 per share for the years of 2021, 2020, and 2019, respectively) | (27,029) | |||||
Noncontrolling Dividend | 642 | |||||
Common stock issued | $ 15 | 3,179 | ||||
Stock Issued During Period, Shares, New Issues | 152,000 | |||||
Share based compensation | $ 15 | 8,942 | ||||
Share-based compensation (in shares) | 146,000 | |||||
Common stock repurchased | $ (6,600) | $ (23) | (10,718) | |||
Common stock repurchased (in shares) | (150,778) | (233,000) | ||||
Balance (in shares) at Dec. 31, 2019 | 46,391,000 | |||||
Balance at Dec. 31, 2019 | $ 4,639 | 269,656 | $ 712,460 | (190,210) | 2,124 | |
Temporary equity, beginning balance at Dec. 31, 2018 | $ 518 | |||||
Increase (Decrease) in Redeemable Noncontrolling Interest | ||||||
Net income | (326) | |||||
Currency translation adjustment | 59 | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (487) | |||||
Temporary equity, ending balance at Dec. 31, 2019 | (236) | |||||
Minimum pension liability tax (expense)/benefit | 1,112 | |||||
Dividends per common share (in dollars per share) | $ 0.6200 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income | $ 100,460 | 718 | ||||
Currency translation adjustment | (11,984) | 104 | ||||
Minimum pension liability adjustment, net of tax (expense)/benefit of ($1,458), $1,112, and $589, for 2021, 2020, and 2019, respectively | 2,577 | |||||
Dividends on common stock ($0.7000, $0.6200, and $0.5800 per share for the years of 2021, 2020, and 2019, respectively) | (28,845) | |||||
Noncontrolling Dividend | 830 | |||||
Common stock issued | $ 12 | 3,709 | ||||
Stock Issued During Period, Shares, New Issues | 121,000 | |||||
Share based compensation | $ 11 | 10,055 | ||||
Share-based compensation (in shares) | 112,000 | |||||
Common stock repurchased | $ (15,200) | $ (40) | (19,513) | |||
Common stock repurchased (in shares) | (322,147) | (402,000) | ||||
Balance (in shares) at Dec. 31, 2020 | 46,222,000 | 46,222,000 | ||||
Balance at Dec. 31, 2020 | $ 849,949 | $ 4,622 | 283,420 | $ 764,562 | (204,771) | 2,116 |
Increase (Decrease) in Redeemable Noncontrolling Interest | ||||||
Net income | (21) | |||||
Currency translation adjustment | 12 | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | |||||
Temporary equity, ending balance at Dec. 31, 2020 | (245) | |||||
Minimum pension liability tax (expense)/benefit | 1,458 | |||||
Dividends per common share (in dollars per share) | $ 0.7000 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income | $ 153,860 | 899 | ||||
Currency translation adjustment | (27,400) | (144) | ||||
Minimum pension liability adjustment, net of tax (expense)/benefit of ($1,458), $1,112, and $589, for 2021, 2020, and 2019, respectively | (3,590) | |||||
Dividends on common stock ($0.7000, $0.6200, and $0.5800 per share for the years of 2021, 2020, and 2019, respectively) | (32,688) | |||||
Noncontrolling Dividend | 710 | |||||
Common stock issued | $ 44 | 15,480 | ||||
Stock Issued During Period, Shares, New Issues | 440,000 | |||||
Share based compensation | $ 14 | 11,717 | ||||
Share-based compensation (in shares) | 140,000 | |||||
Common stock repurchased | $ (15,300) | $ (32) | (25,917) | |||
Common stock repurchased (in shares) | (192,509) | (319,000) | ||||
Balance (in shares) at Dec. 31, 2021 | 46,483,000 | 46,483,000 | ||||
Balance at Dec. 31, 2021 | $ 948,662 | $ 4,648 | $ 310,617 | $ 859,817 | $ (228,581) | $ 2,161 |
Increase (Decrease) in Redeemable Noncontrolling Interest | ||||||
Net income | 216 | |||||
Currency translation adjustment | 10 | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | |||||
Temporary equity, ending balance at Dec. 31, 2021 | $ (19) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Company --“Franklin Electric” or the “Company” shall refer to Franklin Electric Co., Inc. and its consolidated subsidiaries. Fiscal Year --The financial statements and accompanying notes are as of and for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, and referred to as 2021, 2020, and 2019, respectively. Principles of Consolidation --The consolidated financial statements include the accounts of Franklin Electric Co., Inc. and its consolidated subsidiaries. All intercompany transactions have been eliminated. Business Combinations --The Company allocates the purchase price of its acquisitions to the assets acquired, liabilities assumed, and noncontrolling interests based upon their respective fair values at the acquisition date. The Company utilizes management estimates and inputs from an independent third-party valuation firm to assist in determining these fair values. The excess of the acquisition price over estimated fair values is recorded as goodwill. Goodwill is adjusted for any changes to acquisition date fair value amounts made within the measurement period. Any estimated fair values in excess of the acquisition price represents a bargain purchase gain and is recorded in "Accrued expenses and other current liabilities" line on the consolidated balance sheet until the determination of fair values is completed. Once the fair value determination is completed, the bargain purchase gain is recognized on the consolidated statements of income in the "Other income/(expense), net" line. Acquisition-related transaction costs are recognized separately from the business combination and expensed as incurred. Revenue Recognition --Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The promise in a contract to transfer goods or services to a customer represents a performance obligation. The Company typically sells its products to customers by purchase order and does not have any additional performance obligations included in contracts to customers other than the shipment of the products. Therefore, the Company allocates the transaction price based on a single performance obligation. The Company typically ships products FOB shipping at which point control of the products passes to the customers. The Company considers the performance obligation satisfied and recognizes revenue at a point in time, the time of shipment. The Company’s products may include routine assurance-type warranties which do not qualify as separate performance obligations. In the event that significant post-shipment obligations were to exist for the Company’s products, revenue recognition would be deferred until the performance obligations were satisfied. The Company records net sales revenues after discounts at the time of sale based on specific discount programs in effect, related historical data, and experience. Shipping and Handling Costs -- Shipping and handling costs are considered activities required to fulfill the Company’s promise to transfer goods, and do not qualify as a separate performance obligation. Shipping and handling costs are recorded as a component of cost of sales. Research and Development Expense --The Company’s research and development activities are charged to expense in the period incurred. The Company incurred expenses of approximately $17.3 million in 2021, $21.7 million in 2020, and $20.8 million in 2019 related to research and development. Cash and Cash Equivalents --The Company considers cash on hand, demand deposits, and highly liquid investments with an original maturity date of three months or less to be cash and cash equivalents. Fair Value of Financial Instruments --Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures , provides guidance for defining, measuring, and disclosing fair value within an established framework and hierarchy. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs and to minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value within the hierarchy are as follows: Level 1 – Quoted prices for identical assets and liabilities in active markets; Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Accounts Receivable, Earned Discounts, and Allowance for Uncollectible Accounts --Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers, net of earned discounts and estimated allowances for uncollectible accounts. Earned discounts are based on specific customer agreement terms. In determining allowances for uncollectible accounts, historical collection experience, current trends, aging of accounts receivable, and periodic credit evaluations of customers’ financial condition are reviewed. Inventories --Inventories are stated at the lower of cost or market. The majority of the cost of domestic and foreign inventories is determined using the FIFO method with a portion of inventory costs determined using the average cost method. The Company reviews its inventories for excess or obsolete products or components based on an analysis of historical usage and management’s evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. Property, Plant, and Equipment --Property, plant, and equipment are stated at historical cost. The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use, which are included in property, plant, and equipment. Depreciation of plant and equipment is calculated on a straight line basis over the following estimated useful lives: Land improvement and buildings 10 - 40 years Machinery and equipment 5 - 10 years Software 3 - 7 years Furniture and fixtures 3 - 7 years Maintenance, repairs, and renewals of a minor nature are expensed as incurred. Betterments and major renewals which extend the useful lives or add to the productive capacity of buildings, improvements, and equipment are capitalized. The Company reviews its property, plant, and equipment for impairment at the asset group level whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If an indicator is present, the Company compares carrying values to undiscounted future cash flows; if the undiscounted future cash flows are less than the carrying value, an impairment would be recognized for the difference between the fair value and the carrying value. The Company’s depreciation expense was $30.2 million, $27.1 million, and $27.6 million in 2021, 2020, and 2019, respectively. Leases-- The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement and determines whether it is an operating or financing lease. Operating and financing leases result in the Company recording a right-of-use ("ROU") asset, current lease liability, and long term lease liability on its balance sheet. The Company has elected to not present leases with an initial term of 12 months or less on the balance sheet. The ROU assets and liabilities are initially recognized based on the present value of lease payments over the lease term. Initial direct costs and lease incentives are not material when measuring the ROU asset present value. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. In determining the present value, the Company utilizes interest rates from lease agreements unless the lease agreement does not provide a readily determinable rate. In these instances, the Company utilizes its incremental borrowing rate based on the Company’s borrowing information available at inception. A portion of the Company’s leases include renewal options. The Company excludes these renewal options in the expected lease term unless the Company is reasonably certain that the option will be exercised. In addition, the Company has elected not to separate non-lease components from lease components. Goodwill and Other Intangible Assets --Goodwill is tested at the reporting unit level, which the Company has determined to be the Global Water Systems, Fueling Systems, and Distribution units. In assessing the recoverability of goodwill, the Company determines the fair value of its reporting units by utilizing a combination of both the income and market valuation approaches. The income approach estimates fair value based upon future revenue, expenses, and cash flows discounted to present value. The market valuation approach estimates fair value using market multipliers of various financial measures compared to a set of comparable public companies. The fair value calculated for each reporting unit is considered a Level 3 measurement within the fair value hierarchy. An indication of impairment exists if the carrying value of the reporting unit is higher than its fair value, as determined by the above approach. The Company will test goodwill for impairment more frequently if warranted by triggering events that indicate potential impairment. The Company completed its annual goodwill impairment test during the fourth quarter, using balances as of October 1. The Company also tests indefinite lived intangible assets, primarily trade names, for impairment on an annual basis during the fourth quarter of each year, using balances as of October 1, or more frequently as warranted by triggering events that indicate potential impairment. In assessing the recoverability of the trade names, the Company determines the fair value using an income approach. The income approach estimates fair value based upon future revenue and estimated royalty rates. The fair value calculated for indefinite lived intangible assets is considered a Level 3 measurement within the fair value hierarchy. An indication of impairment exists if the carrying value of the trade names is higher than the fair value. The Company would record an impairment charge for the difference. Amortization is recorded and calculated for definite lived intangible assets on a basis that reflects cash flows over the estimated useful lives. The weighted average number of years over which each intangible class is amortized is as follows: Customer relationships 13 - 20 years Patents 17 years Technology 15 years Trade names 5 - 20 years Other 5 - 8 years Definite lived intangible assets are evaluated for impairment whenever a triggering event, including a significant change in the use of the asset or unexpected change in financial condition, occurs that indicates the carrying value may be impaired. The Company tests for impairment by comparing the carrying value of the definite lived intangible asset to the undiscounted future cash flows. An indication of impairment exists if the carrying value of the definite lived intangible asset is higher than the fair value. The Company would record an impairment charge for the difference. Warranty Obligations --The Company provides warranties on most of its products. The warranty terms vary but are generally 2 years to 5 years from date of manufacture or 1 year to 5 years from date of installation. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. The Company actively studies trends of warranty claims and takes actions to improve product quality and minimize warranty claims. The Company believes that the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. Income Taxes --Income taxes are accounted for in accordance with FASB ASC Topic 740, Income Taxes . Under this guidance, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities and net operating loss and credit carry forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company records a liability for uncertain tax positions by establishing a recognition threshold and measurement attribute for recognition and measurement of a tax position taken or expected to be taken in a tax return. Defined Benefit Plans --The Company makes its determination for pension, post retirement, and post employment benefit plans liabilities based on management estimates and consultation with actuaries. The Company incorporates estimates and assumptions of future plan service costs, future interest costs on projected benefit obligations, rates of compensation increases, employee turnover rates, anticipated mortality rates, expected investment returns on plan assets, asset allocation assumptions of plan assets, and other factors. Earnings Per Common Share --Basic and diluted earnings per share are computed and disclosed in accordance with FASB ASC Topic 260, Earnings Per Share . The Company utilizes the two-class method to compute earnings available to common shareholders. Under the two-class method, earnings are adjusted by accretion amounts to redeemable noncontrolling interests recorded at redemption value. The adjustments represent dividend distributions, in substance, to the noncontrolling interest holder as the holders have contractual rights to receive an amount upon redemption other than the fair value of the applicable shares. As a result, earnings are adjusted to reflect this in substance distribution that is different from other common shareholders. In addition, the Company allocates net earnings to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. Translation of Foreign Currency Financial Statements --All assets and liabilities of foreign subsidiaries in functional currency other than the U.S. dollar are translated at year end exchange rates with the exception of the non-monetary assets and liabilities in countries with highly inflationary economies, which are translated at historical exchange rates. All revenue and expense accounts are translated at average rates in effect during the respective period with the exception of expenses related to the non-monetary assets and liabilities, which are translated at historical exchange rates. Adjustments for translating longer term foreign currency assets and liabilities in U.S. dollars are included as a component of other comprehensive income except for hyperinflation accounting adjustments. Transaction gains and losses that arise from shorter term exchange rate fluctuations and hyperinflation accounting adjustments are included in the “Foreign exchange income/(expense)” line within the Company’s consolidated statements of income, as incurred. Significant Estimates --The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make significant 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 expenses during the reporting periods. Significant estimates and assumptions by management affect inventory valuation, warranty, trade names and goodwill, income taxes, and pension and employee benefit obligations. Although the Company regularly assesses these estimates, actual results could materially differ. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In August 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services— Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants . This update amends certain SEC disclosure guidance that is included in the accounting standards codification to reflect the SEC’s recent issuance of rules intended to modernize and streamline disclosure requirements, including updates to business acquisition and disposition significance tests used, the significance thresholds for proforma statement disclosures, the number of preceding years of financial statements required for disclosure as well as other provisions in the SEC releases. The Company adopted the SEC’s guidance on January 1, 2021, the effective date of the release, relating to the amendments to financial disclosures about acquired and disposed businesses, and it did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying U.S. generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate ("LIBOR") and other reference rates which are expected to be discontinued due to reference rate reform. ASU 2020-04 is effective on a prospective basis between March 12, 2020 and December 31, 2022. The Company adopted the standard effective January 1, 2021, and it did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is expected to reduce cost and complexity related to accounting for income taxes. ASU 2019-12 eliminates the need for the Company to analyze whether certain exceptions apply and improves financial statement preparers' application of income tax-related guidance. ASU 2019-12 is effective for interim and annual periods beginning after December 15, 2020 with early adoption permitted. Amendments related to franchise taxes that are partially based on income should be applied on either a retrospective or modified retrospective basis. All other amendments should be applied on a prospective basis. The Company adopted the standard effective January 1, 2021, and it did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. Accounting Standards Issued But Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . ASU 2020-06 reduces the number of accounting models for various convertible instruments and reduces form-over-substance-based accounting conclusions for the derivatives scope exception for contracts in an entity’s own equity. The FASB also updated Earnings Per Share (“EPS”) guidance under Topic 260 by requiring an entity to consider the potential effect of share settlement in the diluted EPS calculation for instruments that may be settled in cash or shares as well as other amendments. ASU 2020-06 is effective for interim and annual periods beginning after December 15, 2021 with early adoption permitted but no earlier than fiscal years beginning after December 15, 2020. The guidance should be adopted at the beginning of a fiscal year. ASU 2020-06 should be applied on either a retrospective or modified retrospective basis. The Company is planning to adopt on January 1, 2022, but does not expect the ASU to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . ASU 2021-08 requires entities to recognize and measure contracts on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers , as if it had originated the contracts. This will improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022 with early adoption permitted. ASU 2021-08 should be applied on a prospective basis to business combinations that occur after the effective date. The Company is still determining the date of adoption for this ASU, but does not anticipate the adoption to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS 2021 During the fourth quarter ended December 31, 2021, the Company acquired 100 percent of the ownership interests of B&R Industries, Inc. ("B&R"), a water treatment equipment provider located in Mesa, Arizona, for a cash purchase price of $16.2 million after purchase price adjustments based on the level of working capital acquired. B&R will be included as part of the Water Systems segment of the Company. The Company also acquired, in a separate transaction, 100 percent of the ownership interests of Blake Group Holdings, Inc. ("Blake"), a professional groundwater distributor operating in the northeast United States for a cash purchase price of $28.6 million after purchase price adjustments based on the level of working capital acquired. Blake will be included as part of the Distribution segment of the Company. The fair value of the assets acquired and liabilities assumed for both acquisitions is preliminary as of December 31, 2021. During the third quarter ended September 30, 2021, the Company acquired 100 percent of the ownership interests of Minetuff Dewatering Pumps Australia Pty Ltd ("Minetuff") for a cash purchase price of $13.7 million after purchase price adjustments based on the level of working capital acquired. Minetuff manufactures and sells submersible pumps, spare parts, and accessories to the mining industry and will expand the Company’s existing product offerings and channel access in the Water Systems segment. The fair value of the assets acquired and liabilities assumed for the acquisition is preliminary as of December 31, 2021. During the second quarter ended June 30, 2021, the Company acquired, in separate transactions, 100 percent of the ownership interests of Puronics, Inc. and its wholly owned subsidiaries ("Puronics"), headquartered in Livermore, California, and 100 percent of the ownership interests of New Aqua, LLC ("New Aqua") and its wholly owned subsidiaries, headquartered in Indianapolis, Indiana. Both Puronics and New Aqua are water treatment equipment providers and are included as a part of the Water Systems segment of the Company. In a separate transaction during the second quarter ended June 30, 2021, the Company acquired all of the assets of Power Integrity Services, LLC, a North Carolina-based company, which is included in the Fueling Systems segment of the Company. In another separate transaction during the second quarter ended June 30, 2021, the Company acquired all of the assets of Atlantic Turbine Pump, LLC, a Georgia-based company, which is included in the Distribution segment of the Company. As of December 31, 2021, the Company has recorded estimated fair values that exceed the acquisition price by $0.4 million, representing a bargain purchase gain due to favorable market conditions within the "Other income/(expense), net" line in the consolidated statements of income for the year ended December 31, 2021. The combined, all-cash purchase price for all acquisitions in the second quarter was $185.5 million after purchase price adjustments based on the level of working capital acquired. The fair value of the assets acquired and liabilities assumed for all acquisitions are preliminary as of December 31, 2021. The identifiable intangible assets recognized in the separate transactions in 2021, were $131.9 million and consist primarily of customer relationships and trade names from New Aqua of $93.7 million. The intangible assets will be amortized using the straight-line method over 12 - 20 years. The goodwill of $65.9 million resulting from the acquisitions in 2021 consists primarily of expanded geographical presence and product channel expansion. Goodwill deductible for tax purposes is $62.1 million from the acquisitions in 2021. Goodwill was recorded in the Water Systems, Fueling Systems, and Distribution segments (see Note 6 - Goodwill and Other Intangible Assets). The preliminary purchase price assigned to the major identifiable assets and liabilities for all acquisitions in 2021 on an aggregated basis is as follows: (In millions) Assets: Inventory $ 34.70 Intangible assets 131.9 Goodwill 65.9 Other assets 38.5 Total assets 271.0 Liabilities 26.6 Less: Bargain purchase gain 0.4 Total consideration paid $ 244.0 For all acquisitions in 2021, aggregated annual revenue for the full year 2020 was $191.3 million, which would be incremental to the Company's revenue had the acquisitions occurred on the first day of 2020. Since acquisition in 2021, aggregate revenue was $72.5 million. The Company has not presented separate results of operations since closing or combined pro forma financial information of the Company and the acquired interest since the beginning of 2020, as the results of operations for all acquisitions is immaterial to the Company's consolidated financials. 2020 During the fourth quarter ended December 31, 2020, the Company acquired 100 percent of the ownership interests of Gicon Pumps & Equipment, Inc., a professional groundwater distributor operating seven locations in the state of Texas for a purchase price of $28.1 million after working capital adjustments. The fair value of the assets acquired and liabilities assumed exceeded the purchase price by $6.1 million, representing a bargain purchase gain. This gain was attributable to favorable market conditions and is recorded within the "Other income/(expense), net" line in the consolidated statements of income for the year ended December 31, 2021. In a separate transaction during the fourth quarter ended December 31, 2020, the Company acquired 100 percent of the ownership interests in Waterite Inc. and its affiliate Waterite America Inc., headquartered in Winnipeg, Manitoba, Canada, for a purchase price of $21.9 million after working capital adjustments. The fair value of the assets acquired and liabilities assumed for both acquisitions were considered final as of December 31, 2021. In addition, the Company has not presented separate results of operations since closing or combined pro forma financial information of the Company and the acquired interest since the beginning of 2020, as the results of operations for both acquisitions is immaterial to the Company's consolidated financials. During the first quarter ended March 31, 2020, the Company acquired all of the assets of a company that manufactures line shaft turbines and other adjacent product lines for a purchase price of $5.9 million after working capital adjustments. The fair value of the assets acquired and liabilities assumed were considered final as of March 31, 2021. In addition, the Company has not presented separate results of operations since closing or combined pro forma financial information of the Company and the acquired interest since the beginning of 2020, as the results of operations for this acquisition is immaterial. The identifiable intangible assets recognized in the separate transactions in 2020 were $14.9 million, and consist primarily of customer relationships, which will be amortized utilizing the straight-line method over 15 years. The goodwill of $10.2 million resulting from the separate acquisitions in 2020 consists primarily of the benefits of complementary product offerings and expanded geographical presence. Goodwill was recorded in the Water segment (see Note 6 - Goodwill and Other Intangible Assets), and only a portion ($1.4 million) is expected to be deductible for tax purposes. 2019 During the third quarter ended September 30, 2019, the Company acquired 100 percent of the ownership interests of First Sales, LLC, an Indiana manufacturer of water treatment and filtration equipment for the residential and commercial markets, which are sold through some of the same channels as other Company products in the Water Systems segment, for a purchase price of approximately $15.5 million after working capital adjustments. Goodwill resulting from the acquisition consists primarily of complementary product offerings. The Company has not presented separate results of operations since closing or combined pro forma financial information of the Company and the acquired interest since the beginning of 2019, as the results of operations for this acquisition is immaterial to the Company's consolidated financials. The fair value of the assets acquired and liabilities assumed were considered final as of September 30, 2020. During the second quarter ended June 30, 2019, the Company acquired the remaining interest in Pluga Pumps and Motors Private Limited, India, increasing the Company's ownership to 100 percent. The redemption of this interest was immaterial. During the first quarter ended March 31, 2019, the Company acquired 100 percent of the ownership interests of Mt. Pleasant, Michigan-based Milan Supply Company ("Milan Supply"), for a purchase price of approximately $6.1 million after working capital adjustments. Milan Supply is a professional groundwater distributor operating six locations in the State of Michigan. Milan Supply is part of the Company’s Distribution Segment, which is a collection of professional groundwater equipment distributors. The Company has not presented separate results of operations since closing or combined pro forma financial information of the Company and the acquired interest since the beginning of 2019, as the results of operations for this acquisition is immaterial to the Company's consolidated financials. The fair value of the assets acquired and the liabilities assumed for the acquisition were considered final as of March 31, 2020. Transaction costs for all acquisition related activity were expensed as incurred under the guidance of FASB ASC Topic 805, Business Combinations. Transaction costs are included in selling, general, and administrative expense in the Company’s consolidated statements of income were $0.9 million, $0.0 million, and $0.2 million for the years ended 2021, 2020, and 2019, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As of December 31, 2021 and December 31, 2020, the assets measured at fair value on a recurring basis were as set forth in the table below: December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 5.3 $ 5.3 $ — $ — Share swap transaction $ 0.6 $ 0.6 $ — $ — December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 20.2 $ 20.2 $ — $ — The Company’s Level 1 cash equivalents assets are generally comprised of foreign bank guaranteed certificates of deposit and short term deposits. The share swap transaction is further described in Note 5 - Financial Instruments. The Company has no assets measured on a recurring basis classified as Level 2 or Level 3 excluding the recurring fair value measurements in the Company's pension and other retirement plans as discussed in Note 7 - Employee Benefit Plans. Total debt, including current maturities, have carrying amounts of $188.5 million at December 31, 2021 and $94.6 million at December 31, 2020. The estimated fair value of all debt was $196.1 million and $107.3 million at December 31, 2021 and December 31, 2020, respectively. In the absence of quoted prices in active markets, considerable judgment is required in developing estimates of fair value. Estimates are not necessarily indicative of the amounts the Company could realize in a current market transaction. In determining the fair value of its debt, the Company uses estimates based on rates currently |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTSThe Company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is adjusted for changes in the Company’s stock price at the end of each reporting period. The Company has entered into share swap transaction agreements (“the swap”) to mitigate the Company’s exposure to these fluctuations in the Company’s stock price. The swap has not been designated as a hedge for accounting purposes and is cancellable with 30 days written notice by either party. As of December 31, 2021, the swap has a notional value based on 210,000 shares. For the years ended December 31, 2021, December 31, 2020, and December 31, 2019, the swap resulted in gains of $6.2 million, $3.2 million, and $3.4 million, respectively. Gains resulting from the swap were primarily offset by gains on the fair value of the deferred compensation stock liability. All gains and expenses related to the swap are recorded in the Company’s consolidated statements of income within the “Selling, general, and administrative expenses” line. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The carrying amounts of the Company’s intangible assets are as follows: (In millions) 2021 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangibles: Customer relationships 255.1 (88.8) 165.1 (78.5) Patents $ 7.3 $ (7.3) $ 7.5 $ (7.3) Technology 7.5 (7.3) 7.5 (7.2) Trade names 42.1 (1.5) 3.4 (0.2) Other 2.8 (2.7) 2.9 (2.8) Total $ 314.8 $ (107.6) $ 186.4 $ (96.0) Unamortizing intangibles: Trade names 42.5 — 43.4 — Total intangibles $ 357.3 $ (107.6) $ 229.8 $ (96.0) Amortization expense related to intangible assets for fiscal years 2021, 2020, and 2019, was $14.4 million, $9.4 million, and $9.4 million, respectively. Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2022 2023 2024 2025 2026 $ 17.0 $ 17.0 $ 16.9 $ 16.1 $ 15.1 The change in the carrying amount of goodwill by reportable segment for 2021 and 2020, is as follows: (In millions) Water Systems Fueling Systems Distribution Consolidated Balance as of December 31, 2019 $ 151.0 $ 67.6 $ 37.5 $ 256.1 Acquisitions 10.3 — — 10.3 Foreign currency translation 0.2 0.1 — 0.3 Balance as of December 31, 2020 $ 161.5 $ 67.7 $ 37.5 $ 266.7 Acquisitions 55.4 3.0 7.5 65.9 Adjustments to prior year acquisitions (0.1) — — (0.1) Foreign currency translation (2.9) — — (2.9) Balance as of December 31, 2021 $ 213.9 $ 70.7 45.0 $ 329.6 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Plans - As of December 31, 2021, the Company maintained two domestic pension plans and three German pension plans. The Company used a December 31, 2021 measurement date for these plans. One of the Company’s domestic pension plans covers one active management employee, while the other domestic plan covers all eligible employees. Both domestic plans were frozen as of December 31, 2011. The two domestic and three German plans collectively comprise the ‘Pension Benefits’ disclosure caption. Other Benefits - The Company’s other post-retirement benefit plan provides health and life insurance to domestic employees hired prior to 1992. The Company effectively capped its cost for those benefits through plan amendments made in 1992, freezing Company contributions for insurance benefits at 1991 levels for current and future beneficiaries with actuarially reduced benefits for employees who retire before age 65. The disclosures surrounding this plan are reflected in the “Other Benefits” caption. The following table sets forth aggregated information related to the Company’s pension benefits and other postretirement benefits, including changes in the benefit obligations, changes in plan assets, funded status, amounts recognized in the balance sheet, amounts recognized in accumulated other comprehensive income, and actuarial assumptions that the Company considered in its determination of benefit obligations and plan costs. Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for the Company’s pension plans, and accumulated postretirement benefit obligations (APBO) for the Company’s other benefit plans. (In millions) Pension Benefits Other Benefits 2021 2020 2021 2020 Accumulated benefit obligation, end of year $ 171.6 $ 185.4 $ 7.7 $ 8.5 Change in benefit obligation: Benefit obligation, beginning of year $ 188.9 $ 180.9 $ 8.5 $ 8.3 Service cost 0.7 0.7 — — Interest cost 2.7 4.3 0.1 0.2 Actuarial (gain)/loss (4.3) 12.8 (0.1) 0.8 Settlements paid — (0.6) — — Benefits paid (10.9) (11.4) (0.8) (0.8) Foreign currency exchange (1.9) 2.2 — — Benefit obligation, end of year $ 175.2 $ 188.9 $ 7.7 $ 8.5 Change in plan assets: Fair value of assets, beginning of year $ 153.3 $ 151.2 $ — $ — Actual return on plan assets 1.3 13.0 — — Company contributions 0.5 0.5 0.8 0.8 Settlements paid — (0.4) — — Benefits paid (10.9) (11.4) (0.8) (0.8) Foreign currency exchange (0.3) 0.4 — — Plan assets, end of year $ 143.9 $ 153.3 $ — $ — Funded status $ (31.3) $ (35.6) $ (7.7) $ (8.5) Amounts recognized in balance sheet: Non current assets $ 1.6 $ — $ — $ — Current liabilities (0.5) (0.5) (0.7) (0.8) Non current liabilities (32.4) (35.1) (7.0) (7.7) Net liability, end of year $ (31.3) $ (35.6) $ (7.7) $ (8.5) Amount recognized in accumulated other comprehensive income/(loss): Prior service cost $ — $ — $ — $ — Net actuarial loss 47.8 50.9 0.6 0.9 Settlement 0.6 0.8 — — Total recognized in accumulated other comprehensive income/(loss) $ 48.4 $ 51.7 $ 0.6 $ 0.9 As of December 31, 2021, the pension benefits' aggregate accumulated benefit obligation and benefit obligation in excess of plan assets was $33.9 million and $37.5 million. The aggregate fair value of plan assets related to the accumulated benefit obligation and benefit obligation was $4.6 million. The following table sets forth other changes in plan assets and benefit obligation recognized in other comprehensive income for 2021 and 2020: (In millions) Pension Benefits Other Benefits 2021 2020 2021 2020 Net actuarial (gain)/loss $ (0.1) $ 6.6 $ (0.2) $ 0.8 Amortization of: Net actuarial gain (3.7) (3.1) (0.2) (0.1) Prior service credit — — — — Settlement recognition (0.6) (0.8) — — Deferred tax asset 1.4 (0.9) 0.1 (0.1) Foreign currency exchange (0.3) 0.2 — — Total recognized in other comprehensive income $ (3.3) $ 2.0 $ (0.3) $ 0.6 Weighted-average assumptions used to determine domestic benefit obligations: Pension Benefits Other Benefits 2021 2020 2021 2020 Discount rate 2.68 % 2.31 % 2.57 % 2.12 % Rate of increase in future compensation — % * — % * 2.00 - 9.00% (Graded) 2.00 - 9.00% (Graded) *No rate of increases in future compensation were used in the assumptions for 2021 and 2020, as the cash balance component of the domestic Pension Plan was frozen and the other domestic Pension Plan components do not base benefits on compensation. The weighted-average interest crediting rate of the cash balance component of the domestic Pension Plan was 4.5% for 2021, 2020, and 2019 and is based on the approximate 30-year Treasury rate as of November of the prior year with a minimum of 4.5%. Assumptions used to determine domestic periodic benefit cost: Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Discount rate 2.41 % 3.17 % 4.31 % 2.12 % 2.99 % 4.18 % Rate of increase in future compensation — % * — % * — % * 2.00 - 9.00% (Graded) 2.00 - 9.00% (Graded) 3.00 - 8.00% (Graded) Expected long-term rate of return on plan assets 4.00 % 4.90 % 5.75 % — % — % — % *No rate of increases in future compensation were used in the assumptions for 2021, 2020, and 2019, as the cash balance component of the domestic Pension Plan was frozen and the other domestic Pension Plan components do not base benefits on compensation.. For the fiscal year ended December 31, 2021, the Company used the PRI-2012 aggregate mortality table, and then projected forward from 2012 using Scale MP-2020 released by the Society of Actuaries during 2020 to estimate future mortality rates based upon current data. For the fiscal year ended December 31, 2020, the Company used the PRI-2012 aggregate mortality table, and then projected forward from 2012 using Scale MP-2019 released by the Society of Actuaries during 2019 to estimate future mortality rates based upon current data. The following table sets forth the aggregated net periodic benefit cost for all defined benefit plans for 2021, 2020, and 2019: (In millions) Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Service cost $ 0.7 $ 0.7 $ 0.7 $ — $ — $ — Interest cost 2.7 4.3 5.8 0.1 0.2 0.3 Expected return on assets (5.5) (6.8) (8.1) — — — Amortization of: Transition obligation — — — — — — Settlement cost — — — — — — Prior service cost — — — — — — Actuarial loss 4.3 3.7 2.6 0.2 0.1 0.1 Settlement cost — — — — — — Net periodic benefit cost $ 2.2 $ 1.9 $ 1.0 $ 0.3 $ 0.3 $ 0.4 The largest contributor to the net actuarial losses affecting the benefit obligation for the defined benefit pension plans is due to a decrease in the discount rate. The Company consults with a third party investment manager for the assets of the funded domestic defined benefit plan. The plan assets are currently invested primarily in pooled funds, where each fund in turn is composed of mutual funds that have at least daily net asset valuations. Thus, the Company’s funded domestic defined benefit plan assets are invested in a “fund of funds” approach. The Company’s Board has delegated oversight and guidance to an appointed Employee Benefits Committee. The Committee has the tasks of reviewing plan performance and asset allocation, ensuring plan compliance with applicable laws, establishing plan policies, procedures, and controls, monitoring expenses, and other related activities. The plan’s investment policies and strategies focus on the ability to fund benefit obligations as they come due. Considerations include the plan’s current funded level, plan design, benefit payment assumptions, funding regulations, impact of potentially volatile business results on the Company’s ability to make certain levels of contributions, and interest rate and asset return volatility among other considerations. The Company currently attempts to maintain plan funded status at approximately 80 percent or greater pursuant to the Pension Protection Act of 2007. Given the plan’s current funded status, the Company’s cash on hand, cash historically generated from business operations, and cash available under committed credit facilities, the Company sees ample liquidity to achieve this goal. Risk management and continuous monitoring requirements are met through monthly investment portfolio reports, quarterly Employee Benefits Committee meetings, annual valuations, asset/liability studies, and the annual assumption process focusing primarily on the return on asset assumption and the discount rate assumption. As of December 31, 2021 and December 31, 2020, funds were invested in equity, fixed income, and other investments as follows: Target Percentage Plan Asset Allocation at Year-End Asset Category at Year-End 2021 2021 2020 Equity securities 18 % 18 % 17 % Fixed income securities 78 % 78 % 79 % Other 4 % 4 % 4 % Total 100 % 100 % 100 % The Company does not see any particular concentration of risk within the plans, nor any plan assets that pose difficulties for fair value assessment. The Company currently has no allocation to potentially illiquid or potentially difficult to value assets such as hedge funds, venture capital, private equity, and real estate. The Company works with actuaries and consultants in making its determination of the asset rate of return assumption and also the discount rate assumption. Asset class assumptions are set using a combination of empirical and forward-looking analysis for long-term rate of return on plan assets. A variety of models are applied for filtering historical data and isolating the fundamental characteristics of asset classes. These models provide empirical return estimates for each asset class, which are then reviewed and combined with a qualitative assessment of long-term relationships between asset classes before a return estimate is finalized. This provides an additional means for correcting for the effect of unrealistic or unsustainable short-term valuations or trends, opting instead for return levels and behavior that are more likely to prevail over long periods. With that, the Company has assumed an expected long-term rate of return on plan assets of 4.50 percent for the 2022 net periodic benefit cost, up from 4.00 percent in the prior year. This increase in the assumed long-term rate of return is primarily due to higher expected returns on the plan's fixed income assets. The Company uses the Aon Hewitt AA Above Median curve to determine the discount rate. All cash flow obligations under the plan are matched to bonds in the Aon Hewitt universe of liquid, high-quality, non-callable / non-putable corporate bonds with outliers removed. From that matching exercise, a discount rate is determined. The Company’s German pension plans are funded by insurance contract policies whereby the insurance company guarantees a fixed minimum return. Due to tax legislation, individual pension benefits can only be financed using direct insurance policies up to certain maximums. These maximum amounts in respect of each member are paid into such an arrangement on a yearly basis. The Company designated all equity and most domestic fixed income plan assets as Level 1, as they are mutual funds with prices that are readily available. The U.S. Treasury securities and German plan assets are designated as Level 2 inputs. The fair value of the German plan assets are measured by the reserve that is supervised by the German Federal Financial Supervisory Authority. The U.S. Treasury securities are administered by the United States government. The fair values of the Company’s pension plan assets for 2021 and 2020 by asset category are as follows: (In millions) 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Equity International equity mutual funds $ 26.7 $ 26.7 $ — $ — Fixed income U.S. treasury and government agency securities 18.4 — 18.4 — Fixed income mutual funds 93.4 93.4 — — Other Insurance contracts 4.7 — 4.7 — Cash and equivalents 0.7 0.7 — — Total $ 143.9 $ 120.8 $ 23.1 $ — (In millions) 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Equity International equity mutual funds $ 26.1 $ 26.1 $ — $ — Fixed income U.S. treasury and government agency securities 16.8 — 16.8 — Fixed income mutual funds 104.8 104.8 — — Other Insurance contracts 4.8 — 4.8 — Cash and equivalents 0.8 0.8 — — Total $ 153.3 $ 131.7 $ 21.6 $ — The Company estimates total contributions to the plans of about $0.9 million in 2022. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in accordance with the following schedule: (In millions) Pension Benefits Other Benefits 2022 $ 10.8 $ 0.7 2023 $ 10.4 $ 0.7 2024 $ 17.5 $ 0.7 2025 $ 13.5 $ 0.6 2026 $ 9.8 $ 0.6 Years 2027 through 2031 $ 46.0 $ 2.5 Defined Contribution Plans - The Company maintained two defined contribution plans during 2021, 2020, and 2019. The Company’s cash contributions are allocated to participant’s accounts based on investment elections. The following table sets forth Company contributions to the defined contribution plans: (In millions) 2021 2020 2019 Company contributions to the plans $ 8.9 $ 7.3 $ 7.4 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of: (In millions) 2021 2020 Salaries, wages, and commissions $ 62.3 $ 36.4 Product warranty costs 10.5 9.7 Insurance 2.3 2.4 Employee benefits 11.9 9.8 Other 28.4 30.7 $ 115.4 $ 89.0 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before income taxes consisted of the following: (In millions) 2021 2020 2019 Domestic $ 113.1 $ 74.1 $ 55.5 Foreign 76.6 49.6 61.3 $ 189.7 $ 123.7 $ 116.8 The income tax provision/(benefit) from continuing operations consisted of the following: (In millions) 2021 2020 2019 Current: Federal $ 15.9 $ 11.9 $ 6.9 Foreign 15.7 12.3 15.1 State 3.0 2.6 1.4 Total current 34.6 26.8 23.4 Deferred: Federal (0.7) (0.2) (0.6) Foreign (0.1) (4.0) (2.5) State 0.9 (0.1) 0.5 Total deferred $ 0.1 $ (4.3) $ (2.6) $ 34.7 $ 22.5 $ 20.8 A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows: 2021 2020 2019 U.S. Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.7 1.5 1.1 Foreign operations 0.2 0.3 (1.0) R&D tax credits (0.5) (0.7) (0.8) Uncertain tax position adjustments 0.2 0.1 (0.6) Valuation allowance on state and foreign deferred tax (0.6) 1.7 0.4 Share-based compensation (2.3) (0.8) (0.8) Realized foreign currency loss — (4.0) (0.4) Other items (0.6) 0.7 0.3 Foreign Derived Intangible Income (1.9) (2.6) (2.0) Nondeductible officers compensation 1.1 1.0 0.6 Effective tax rate 18.3 % 18.2 % 17.8 % The effective tax rate continues to be lower than the statutory rate of 21 percent primarily due to the recognition of the U.S. foreign-derived intangible income (FDII) provisions, certain incentives, and discrete events. The Company recorded discrete excess tax benefits from share-based compensation of $5 million in the twelve-month period ended December 31, 2021 pursuant to ASU 2016-09. ASU 2016-09 can add variability to the Company’s provision for income taxes, mainly due to the timing of stock option exercises, vesting of restricted stock, and the stock price. During the twelve-month period ended December 31, 2020, the Company realized a foreign currency translation loss on the second quarter settlement of a discrete intercompany loan that was long-term-investment in nature resulting in a tax benefit of $5.0 million. The Company also recorded net $0.9 million of expense for valuation allowances on deferred tax assets in foreign jurisdictions to recognize only the portion of the deferred tax assets that are more likely than not to be realized. Significant components of the Company’s deferred tax assets and liabilities were as follows: (In millions) 2021 2020 Deferred tax assets: Accrued expenses and reserves $ 13.5 $ 13.0 Compensation and employee benefits 19.2 19.8 Net operating losses, tax credit carryforwards, and other 17.0 20.7 Lease liability 12.2 8.0 Valuation allowance on state and foreign deferred tax (6.5) (8.3) Total deferred tax assets 55.4 53.2 Deferred tax liabilities: Accelerated depreciation on fixed assets 12.0 12.1 Amortization of intangibles 51.2 49.4 Right-of-use asset, net 12.2 8.0 Other items 0.5 0.5 Total deferred tax liabilities 75.9 70.0 Net deferred tax liabilities $ (20.5) $ (16.8) The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss for certain state and foreign income tax purposes incurred over the 3-year period ended December 31, 2021. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, as of December 31, 2021, a valuation allowance of $6.5 million has been recorded to recognize only the portion of the deferred tax assets that are more likely than not to be realized. The Company has foreign income tax net operating loss (“NOL”) and credit carryforwards of $11.0 million and state income tax NOL and credit carryforwards of $6.0 million, which will expire on various dates as follows: (In millions) 2022-2024 $ 1.2 2025-2029 3.5 2030-2034 1.3 2035-2039 0.8 Unlimited 10.2 $ 17.0 The Company believes that it is more likely than not that the benefit from certain foreign NOL carryforwards as well as certain state credit carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $4.8 million on the deferred tax assets related to these foreign NOL carryforwards and a valuation allowance of $1.7 million on the deferred tax assets related to these state credit carryforwards. As of December 31, 2021, the Company has accumulated undistributed earnings generated by our foreign subsidiaries of approximately $415.8 million. Any taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of our foreign investments would generally be limited to foreign and state taxes. The Company intends, however, to indefinitely reinvest these earnings and expects future U.S. cash generation to be sufficient to meet future U.S. cash needs. The Company, therefore, has not recorded a deferred tax liability of $6.4 million. As of the beginning of fiscal year 2021, the Company had gross unrecognized tax benefits of $0.6 million, excluding accrued interest and penalties. The unrecognized tax benefits increased due to uncertain tax positions identified in the current year based on evaluations made during 2021. The Company had gross unrecognized tax benefits, excluding accrued interest and penalties, of $0.9 million as of December 31, 2021. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2021, 2020, and 2019 (excluding interest and penalties) is as follows: (In millions) 2021 2020 2019 Beginning balance $ 0.6 $ 0.4 $ 1.1 Additions for tax positions of the current year 0.3 0.6 — Additions for tax positions of prior years — — — Reductions for tax positions of prior years — — (0.4) Statute expirations — (0.4) (0.3) Settlements — — — Ending balance $ 0.9 $ 0.6 $ 0.4 If recognized, each annual effective tax rate would be affected by the net unrecognized tax benefits of $0.9 million, $0.6 million, and $0.4 million as of year-end 2021, 2020, and 2019, respectively. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company has accrued interest and penalties as of December 31, 2021, December 31, 2020, and December 31, 2019 of approximately $0.1 million, less than $0.1 million, and $0.1 million, respectively. The Company is subject to taxation in the United States and various state and foreign jurisdictions. With few exceptions, as of December 31, 2021, the Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2018 and is no longer subject to foreign or state income tax examinations by tax authorities for years before 2016. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following: (In millions) 2021 2020 New York Life Agreement $ 75.0 $ 75.0 Credit Agreement 96.6 — Tax increment financing debt 16.5 17.6 Financing leases — 0.1 Foreign subsidiary debt 0.5 1.8 Other 0.1 0.2 Less: unamortized debt issuance costs (0.2) (0.1) 188.5 94.6 Less current maturities (98.0) (2.6) Long-term debt $ 90.5 $ 92.0 Debt outstanding at December 31, 2021, excluding unamortized debt issuance costs, matures as follows: (In millions) Total 2022 2023 2024 2025 2026 Thereafter Debt $ 188.7 $ 98.0 $ 1.3 $ 1.4 $ 76.4 $ 1.5 $ 10.1 New York Life Agreement On May 27, 2015, the Company entered into an uncommitted and unsecured private shelf agreement with NYL Investors LLC, an affiliate of New York Life, and each of the undersigned holders of Notes (the “New York Life Agreement”) for $150.0 million maximum aggregate principal borrowing capacity. On October 28, 2016, the Company entered into the First Amendment to the Note Purchase and Private Shelf Agreement. The Amendment was intended to make the covenants within the New York Life Agreement consistent with the covenants that were modified in the Third Amended and Restated Credit Agreement (the “Credit Agreement”). On September 26, 2018 the Company entered into the Second Amendment to the Note Purchase and Private Shelf Agreement which increased the aggregate borrowing capacity to $200.0 million and authorized the issuance of $75.0 million of fixed rate senior noted due September 26, 2025. These senior notes bear an interest rate of 4.04 percent with interest-only payments due semi-annually. The proceeds from the issuance of the notes were used to pay off existing variable rate indebtedness with New York Life. On July 30, 2021, the New York Life agreement was renewed and expires on July 30, 2024. As of December 31, 2021, there was $125.0 million of remaining borrowing capacity under the New York Life Agreement. Project Bonds On December 31, 2012, the Company, Allen County, Indiana and certain institutional investors entered into a Bond Purchase and Loan Agreement. Under the agreement, Allen County, Indiana issued a series of Project Bonds entitled “Taxable Economic Development Bonds, Series 2012 (Franklin Electric Co., Inc. Project).” The aggregate principal amount of the Project Bonds that were issued, authenticated, and are now outstanding thereunder was limited to $25.0 million. The Company then borrowed the proceeds under the Project Bonds through the issuance of Project Notes to finance the cost of acquisition, construction, installation and equipping of the new Global Corporate Headquarters and Engineering Center. These Project Notes (“Tax increment financing debt”) bear interest at 3.6 percent per annum. Interest and principal balance of the Project Notes are due and payable by the Company directly to the institutional investors in aggregate semi-annual installments commencing on July 10, 2013, and concluding on January 10, 2033. The use of the proceeds from the Project Notes was limited to assist the financing of the new Global Corporate Headquarters and Engineering Center. On May 5, 2015, the Company entered into Amendment No. 1 to the Bond Purchase and Loan Agreement. This amendment provided for debt repayment guarantees from certain Company subsidiaries and waived certain non-financial covenants related to subsidiary guarantees. Prudential Agreement On April 9, 2007, the Company entered into the Amended and Restated Note Purchase and Private Shelf Agreement (the “Prudential Agreement”) in the amount of $175.0 million. Under the Prudential Agreement, the Company issued notes in an aggregate principal amount of $110.0 million on April 30, 2007 (the “B-1 Notes”) and $40.0 million on September 7, 2007 (the “B-2 Notes”). The B-1 Notes and B-2 Notes bear a coupon of 5.79 percent and had at issuance an average life of 10 years with a final maturity in 2019. On July 22, 2010, the Company entered into Amendment No. 3 to the Prudential Agreement to increase its borrowing capacity by $25.0 million. On December 14, 2011, the Company entered into Amendment No. 4 to the Second Amended and Restated Note Purchase and Private Shelf Agreement to redefine the debt to EBITDA ratio covenant in order to be equivalent to that under the Agreement. On December 31, 2012, the Company and Prudential Insurance Company of America entered into an amendment to the Second Amended and Restated Note Purchase and Private Shelf Agreement to extend the effective date to December 31, 2015. On May 5, 2015, the Company entered into Amendment No. 6 to the Second Amended and Restated Note Purchase and Private Shelf Agreement. This amendment provided for debt repayment guarantees from certain Company subsidiaries and waived certain non-financial covenants related to subsidiary guarantees. On May 28, 2015, the Company entered into a Third Amended and Restated Note Purchase and Private Shelf Agreement with Prudential to increase the total borrowing capacity from $200.0 million to $250.0 million. On October 28, 2016, the Company entered into Amendment No. 1 to the Third Amended and Restated Note Purchase and Private Shelf Agreement. This amendment was intended to make the covenants within the Prudential Agreement consistent with the covenants that were modified in the Credit Agreement (below). On July 30, 2021, the Company entered into the Fourth Amended and Restated Note Purchase and Private Shelf Agreement, which reduced the borrowing capacity to $150.0 million and expires on July 30, 2024. As of December 31, 2021, the Company has $150.0 million borrowing capacity available under the Prudential Agreement. Credit Agreement On May 13, 2021, the Company entered into the Fourth Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement extended the maturity date of the Company’s previous credit agreement to May 13, 2026 and decreased the commitment amount from $300.0 million to $250.0 million. The Credit Agreement provides that the Borrowers may request an increase in the aggregate commitments by up to $125.0 million (not to exceed a total commitment of $375.0 million) subject to the conditions contained therein. All of the Company’s present and future material domestic subsidiaries unconditionally guaranty all of the Borrowers’ obligations under and in connection with the Credit Agreement. Additionally, the Company unconditionally guaranties all of the obligations of Franklin Electric B.V. under the Credit Agreement. Under the Credit Agreement, the Borrowers are required to pay certain fees, including a facility fee of 0.100% to 0.275% (depending on the Company’s leverage ratio) of the aggregate commitment, payable quarterly in arrears. Borrowings may be made either at (i) a Eurocurrency rate based on LIBOR plus an applicable margin of 0.85% to 1.88% (depending on the Company’s leverage ratio) or (ii) an alternative base rate as defined in the Credit Agreement. As of December 31, 2021, the Company had $96.6 million outstanding borrowings, $4.1 million in letters of credit outstanding, and $149.3 million of available capacity under the Credit Agreement. As of December 31, 2020, the Company had no outstanding borrowings, $4.1 million in letters of credit outstanding, and $295.9 million of available capacity under the Credit Agreement. The Company also has lines of credit for certain subsidiaries with various expiration dates. The aggregate maximum borrowing capacity of these overdraft lines of credits is $20.7 million. As of December 31, 2021, there were no outstanding borrowings and $20.7 million of available capacity under these lines of credit. Covenants |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Authorized Shares The Company has the authority to issue 65,000,000, $.10 par value shares. Share Repurchases During 2021, 2020, and 2019, pursuant to a stock repurchase program authorized by the Company’s Board of Directors, the Company repurchased and retired the following amounts and number of shares: (In millions, except share amounts) 2021 2020 2019 Repurchases $ 15.3 $ 15.2 $ 6.6 Shares 192,509 322,147 150,778 The Company retired shares in the amount of 126,332, 79,663, and 82,601 in 2021, 2020, and 2019, respectively, that were received from employees as payment for the exercise price of their stock options and taxes owed upon the exercise of their stock options and release of their restricted awards. The Company also retired shares in the amount of 2,511, 22,438, and 5,345, in 2021, 2020, and 2019, respectively that had been previously granted as stock awards to employees but were forfeited upon not meeting the required restriction criteria or termination. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Changes in accumulated other comprehensive income/(loss), net of tax, by component are summarized below: (In millions) Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments (2) Total Balance, December 31, 2018 $ (134.5) $ (48.5) $ (183.0) Other comprehensive income/(loss) before reclassifications (5.7) — (5.7) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — (1.5) (1.5) Net other comprehensive income/(loss) (5.7) (1.5) (7.2) Balance, December 31, 2019 $ (140.2) $ (50.0) $ (190.2) Other comprehensive income/(loss) before reclassifications (12.0) — (12.0) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — (2.6) (2.6) Net other comprehensive income/(loss) (12.0) (2.6) (14.6) Balance, December 31, 2020 $ (152.2) $ (52.6) $ (204.8) Other comprehensive income/(loss) before reclassifications (27.4) — (27.4) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 3.6 3.6 Net other comprehensive income/(loss) (27.4) 3.6 (23.8) Balance, December 31, 2021 $ (179.6) $ (49.0) $ (228.6) (1) This accumulated other comprehensive income/(loss) component is included in the computation of net periodic pension cost (refer to Note 7 - Employee Benefit Plans for additional details) and is included in the “Selling, general, and administrative expenses” line of the Company’s consolidated statements of income. (2) Net of tax (benefit)/expense of $1.5 million, $(1.1) million and $(0.6) million for 2021, 2020, and 2019, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREThe Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table sets forth the computation of basic and diluted earnings per share: (In millions, except per share amounts) 2021 2020 2019 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 153.9 $ 100.5 $ 95.5 Less: Earnings allocated to participating securities 0.9 0.7 0.7 Net income available to common shareholders $ 153.0 $ 99.8 $ 94.8 Denominator: Basic weighted average common shares outstanding 46.4 46.2 46.4 Effect of dilutive securities: Non-participating employee stock options and performance awards 0.6 0.5 0.4 Diluted weighted average common shares outstanding 47.0 46.7 46.8 Basic earnings per share $ 3.29 $ 2.16 $ 2.04 Diluted earnings per share $ 3.25 $ 2.14 $ 2.03 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Franklin Electric Co., Inc. 2017 Stock Plan (the “2017 Stock Plan”) is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, stock unit awards, and stock appreciation rights (“SARs”) to key employees and non-employee directors. The number of shares that may be issued under the Plan is 1,400,000. Stock options and SARs reduce the number of available shares by one share for each share subject to the option or SAR, and stock awards and stock unit awards settled in shares reduce the number of available shares by 1.5 shares for every one share delivered. The Company also maintains the Franklin Electric Co., Inc. 2012 Stock Plan (the “2012 Stock Plan”), which is a share-based compensation plan that provides for discretionary grants of stock options, stock awards and stock unit awards to key employees and non-employee directors. The 2012 Stock Plan authorized 2,400,000 shares for issuance as follows: 2012 Stock Plan Authorized Shares Stock Options 1,680,000 Stock/Stock Unit Awards 720,000 The Company also maintains the Amended and Restated Franklin Electric Co., Inc. Stock Plan (the “2009 Stock Plan”) which, as amended in 2009, provided for discretionary grants of stock options and stock awards. The 2009 Stock Plan authorized 4,400,000 shares for issuance as follows: 2009 Stock Plan Authorized Shares Stock Options 3,200,000 Stock Awards 1,200,000 All options in the 2009 Stock Plan have been awarded and no additional awards are granted out of the plan. The Company currently issues new shares from its common stock balance to satisfy option exercises and the settlement of stock awards and stock unit awards made under the outstanding stock plans. The total share-based compensation expense recognized in 2021, 2020, and 2019 was $11.7 million, $10.1 million, and $8.9 million, respectively. Stock Options: Under the above plans, the exercise price of each option equals the market price of the Company’s common stock on the date of grant, and the options expire 10 years after the date of the grant. Options granted to employees in 2019 and after vest at 33 percent a year and become fully vested and fully exercisable after 3 years. Options granted prior to 2019 vest at 25 percent a year and become fully vested and fully exercisable after 4 years. Vesting is accelerated upon death or disability. Subject to the terms of the plans, in general, the aggregate option exercise price and any applicable tax withholding may be satisfied in cash or its equivalent, by the plan participant’s delivery of shares of the Company’s common stock having a fair market value at the time of exercise equal to the aggregate option exercise price and/or the applicable tax withholding or by having shares otherwise subject to the award withheld by the Company or via cashless exercise through a broker-dealer. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model with a single approach and amortized using a straight-line attribution method over the option’s vesting period. Options granted to retirement eligible employees are immediately expensed. The Company uses historical data to estimate the expected volatility of its stock, the weighted average expected life, the period of time options granted are expected to be outstanding, and its dividend yield. The risk-free rates for periods within the contractual life of the option are based on the U.S. Treasury yield curve in effect at the time of the grant. The table below provides the weighted average grant-date fair values and key assumptions used for the Black-Scholes model to determine the fair value of options granted during 2021, 2020, and 2019: 2021 2020 2019 Risk-free interest rate 0.66 % 1.39 % 2.53 % Dividend yield 0.96 % 1.04 % 1.05 % Volatility factor 34.98 % 29.45 % 29.38 % Expected term 5.5 years 5.5 years 5.5 years Weighted average grant-date fair value of options $ 21.70 $ 15.63 $ 15.61 A summary of the Company’s outstanding stock option activity and related information is as follows: (Shares in thousands) Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Outstanding at beginning of 2021 1,331 $ 41.90 Granted 152 73.14 Exercised (440) 35.33 Forfeited — — Outstanding at end of 2021 1,043 $ 49.21 5.87 years $ 47,323 Expected to vest after applying forfeiture rate 1,042 $ 49.17 5.87 years $ 47,277 Vested and exercisable at end of period 707 $ 43.22 4.80 years $ 36,306 (In millions) 2021 2020 2019 Intrinsic value of options exercised $ 20.7 $ 3.3 $ 4.6 Cash received from the exercise of options 15.5 3.7 3.2 Fair value of shares vested 3.9 2.9 2.6 Tax benefit of options exercised 5.1 0.8 1.1 As of December 31, 2021, there was $0.9 million of total unrecognized compensation cost related to non-vested stock options granted under the stock plans. That cost is expected to be recognized over a weighted-average period of 1.28 years. Stock/Stock Unit Awards: Under the 2009 Stock Plan, non-employee directors and employees may be granted stock awards. Under the 2012 Stock Plan and the 2017 Stock Plan, non-employee directors and employees may be granted stock awards and stock units. Stock awards to non-employee directors are generally fully vested when made. Stock/stock unit awards to employees cliff vest over 3 or 4 years (subject to accelerated vesting of a pro rata portion in the case of retirement, death or disability) and may be contingent on the attainment of certain performance goals. Dividends are paid to the recipient prior to vesting, except that dividends on performance-based stock awards under the 2012 Stock Plan and the 2017 Stock Plan will be paid only to the extent the performance goals are met. Stock/stock unit awards granted to retirement eligible employees are expensed over the vesting period. Compensation cost for the performance stock/stock unit awards is accrued based on the probable outcome of specified performance conditions. A summary of the Company’s restricted stock/stock unit award activity and related information is as follows: (Shares in thousands) Restricted Stock/Stock Unit Awards Weighted-Average Grant- Non-vested at beginning of 2021 403 $ 49.34 Awarded 104 74.23 Vested (138) 44.39 Forfeited (21) 58.27 Non-vested at end of 2021 348 $ 58.20 The weighted-average grant date fair value of restricted stock/stock unit awards granted in 2021, 2020, and 2019, is $74.23, $59.28, and $51.47, respectively. As of December 31, 2021, there was $7.8 million of total unrecognized compensation cost related to non-vested stock/stock unit awards granted under the stock plans. That cost is expected to be recognized over a weighted-average period of 0.96 years. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION The Company’s business consists of the Water Systems, Distribution, and Fueling Systems reportable segments, based on the principal end market served. The Company includes unallocated corporate expenses and intercompany eliminations in an “Intersegment Eliminations/Other” segment that together with the Water Systems, Distribution, and Fueling Systems segments, represent the Company. The Water Systems segment designs, manufactures and sells motors, pumps, electronic controls, water treatment systems and related parts and equipment primarily for use in submersible water or other fluid system applications. The Fueling Systems segment designs, manufactures and sells pumps, electronic controls and related parts and equipment primarily for use in submersible fueling system applications. The Fueling Systems segment integrates and sells motors and electronic controls produced by the Water Systems segment. The Company reports these product transfers between Water and Fueling as inventory transfers since a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Distribution segment sells to and provides presale support and specifications to the installing contractors. The Distribution segment sells products produced by the Water Systems segment. The Company reports intersegment transfers from Water Systems to Distribution as intersegment revenue at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water System and Distribution segments. Segment operating income is a key financial performance measure. Operating income by segment is based on net sales less identifiable operating expenses and allocations and includes profits recorded on sales to other segments of the Company. The accounting policies of the Company’s reportable segments are the same as those described in Note 1 - Summary of Significant Accounting Policies. Performance is evaluated based on the sales and operating income of the segments and a variety of ratios to measure performance. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Financial information by reportable business segment is included in the following summary: Net Sales (In millions) 2021 2020 2019 Water Systems External sales United States & Canada $ 460.8 $ 327.6 $ 367.6 Latin America 139.5 118.5 124.2 Europe, Middle East & Africa 189.8 156.8 155.6 Asia Pacific 85.1 70.9 81.8 Intersegment sales United States & Canada 88.4 60.9 52.3 Total sales 963.6 734.7 781.5 Distribution External sales United States & Canada 497.6 328.4 291.8 Intersegment sales — — — Total sales 497.6 328.4 291.8 Fueling Systems External sales United States & Canada 198.5 158.2 173.5 All other 90.6 86.9 120.1 Intersegment sales — — — Total Sales 289.1 245.1 293.6 Intersegment Eliminations/Other (88.4) (60.9) (52.3) Consolidated $ 1,661.9 $ 1,247.3 $ 1,314.6 Operating income (loss) 2021 2020 2019 Water Systems $ 139.1 $ 114.4 $ 103.0 Distribution 35.9 11.5 3.6 Fueling Systems 79.5 63.4 75.8 Intersegment Eliminations/Other (65.3) (58.8) (55.3) Consolidated $ 189.2 $ 130.5 $ 127.1 Total assets Depreciation 2021 2020 2019 2021 2020 2019 Water Systems $ 894.4 $ 645.9 $ 658.3 $ 19.8 $ 18.7 $ 19.0 Distribution 363.0 249.0 180.2 4.4 2.6 2.8 Fueling Systems 273.6 268.9 283.8 2.2 2.1 2.1 Other 44.2 108.5 72.4 3.8 3.7 3.7 Consolidated $ 1,575.2 $ 1,272.3 $ 1,194.7 $ 30.2 $ 27.1 $ 27.6 Amortization Capital expenditures 2021 2020 2019 2021 2020 2019 Water Systems $ 11.9 $ 6.9 $ 6.9 $ 19.4 $ 16.9 $ 15.1 Distribution 0.7 0.6 0.5 6.5 3.5 3.9 Fueling Systems 1.8 1.8 1.9 3.0 2.0 1.9 Other — 0.1 0.1 1.2 0.5 1.2 Consolidated $ 14.4 $ 9.4 $ 9.4 $ 30.1 $ 22.9 $ 22.1 Cash and property, plant and equipment are the major asset groups in “Other” of total assets for the fiscal years ended December 31, 2021, December 31, 2020 and December 31, 2019. Financial information by geographic region is as follows: Net sales Long-lived assets (In millions) 2021 2020 2019 2021 2020 2019 United States $ 1,075.7 $ 760.6 $ 776.6 $ 604.5 $ 405.9 $ 394.7 Foreign 586.2 486.7 538.0 238.4 238.3 223.4 Consolidated $ 1,661.9 $ 1,247.3 $ 1,314.6 $ 842.9 $ 644.2 $ 618.1 Net sales are attributed to geographic regions based upon the ship to location of the customer. Long-lived assets are attributed to geographic regions based upon the country of domicile. The Company offers a large array of products and systems to multiple markets and customers. Product sales information is tracked regionally and products are categorized differently between regions based on local needs and reporting requirements. However, net sales by segment are representative of the Company’s sales by major product category. The Company sells its products through various distribution channels including wholesale and retail distributors, specialty distributors, industrial and petroleum equipment distributors, as well as major oil and utility companies and original equipment manufacturers. No single customer accounted for more than 10 percent of the Company’s consolidated sales in 2021, 2020, or 2019. No single customer accounted for more than 10 percent of the Company’s gross accounts receivable in 2021 or 2020. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESIn 2011, the Company became aware of a review of alleged issues with certain underground piping connections installed in filling stations in France owned by the French Subsidiary of Exxon Mobile, Esso S.A.F. A French court ordered that a designated, subject-matter expert review 103 filling stations to determine what, if any, damages are present and the cause of those damages. The Company has participated in this investigation since 2011, along with several other third parties including equipment installers, engineering design firms who designed and provided specifications for the stations, and contract manufacturers of some of the installed equipment. The subject-matter expert has issued their preliminary report, which indicates that total damages incurred by Esso amounted to approximately 12 million euro. It is the Company’s position that its products were not the cause of any alleged damage. The Company has retained experts to demonstrate that its products did not cause the damage, and in January 2021, submitted its response to the expert’s preliminary report for each station. The expert's response to the Company's report is due to the Court in June 2022. The Company cannot predict the ultimate outcome of this matter. Any exposure related to this matter is neither probable nor estimable at this time. If payments result from a resolution of this matter, depending on the amount, they could have a material effect on the Company’s financial position, results of operations, or cash flows. The Company is defending other various claims and legal actions which have arisen in the ordinary course of business. In the opinion of management, based on current knowledge of the facts and after discussion with counsel, these claims and legal actions can be defended or resolved without a material effect on the Company’s financial position, results of operations, and net cash flows. At December 31, 2021, the Company had $13.2 million of commitments primarily for capital expenditures and the purchase of raw materials to be used in production. The changes in the carrying amount of the warranty accrual, as recorded in the “Accrued expenses and other current liabilities” line of the Company’s consolidated balance sheets for 2021 and 2020, are as follows: (In millions) 2021 2020 Beginning balance $ 9.7 $ 9.1 Accruals related to product warranties 9.7 9.4 Additions related to acquisitions 0.1 0.6 Reductions for payments made (9.0) (9.4) Ending balance $ 10.5 $ 9.7 The Company maintains certain warehouses, distribution centers, office space, and equipment operating leases. The Company also has lease agreements that are classified as financing. However, these financing leases are immaterial to the Company. The components of the Company's operating lease portfolio as of 2021, 2020, and 2019 are as follows: Lease Cost (In millions): 2021 2020 2019 Operating lease cost $ 13.6 $ 11.4 $ 11.7 Short-term lease cost 0.6 0.4 0.5 Other Information: Weighted-average remaining lease term 4.2 years 3.9 years Weighted-average discount rate 3.9 % 3.7 % As of December 31, 2021, the Company has approximately $1.1 million of additional ROU assets related to lease that have not yet commenced, but create future lease obligations. The future minimum rental payments for non-cancellable operating leases as of December 31, 2021, are as follows: (In millions) Total 2022 2023 2024 2025 2026 Thereafter Undiscounted future minimum rental payments $ 52.4 $ 16.4 $ 12.3 $ 8.3 $ 5.3 $ 3.9 $ 6.2 Less: Imputed Interest 4.1 Present value of lease liabilities $ 48.3 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (In millions) Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions (a) Balance at End of Period 2021 Allowance for doubtful accounts $ 4.0 $ (0.3) $ 0.1 $ 0.4 $ 4.0 Allowance for deferred taxes 8.3 0.6 2.4 — 6.5 2020 Allowance for doubtful accounts $ 3.7 $ 0.2 $ 1.0 $ 1.1 $ 4.0 Allowance for deferred taxes 6.4 1.9 — — 8.3 2019 Allowance for doubtful accounts $ 4.4 $ 0.1 $ 0.9 $ 0.1 $ 3.7 Allowance for deferred taxes 6.8 — 0.4 — 6.4 (a) Charges for which allowances were created. (b) Primarily related to acquisitions |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year --The financial statements and accompanying notes are as of and for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, and referred to as 2021, 2020, and 2019, respectively. |
Principles of Consolidation | Principles of Consolidation --The consolidated financial statements include the accounts of Franklin Electric Co., Inc. and its consolidated subsidiaries. All intercompany transactions have been eliminated. |
Business Combinations | Business Combinations --The Company allocates the purchase price of its acquisitions to the assets acquired, liabilities assumed, and noncontrolling interests based upon their respective fair values at the acquisition date. The Company utilizes management estimates and inputs from an independent third-party valuation firm to assist in determining these fair values. The excess of the acquisition price over estimated fair values is recorded as goodwill. Goodwill is adjusted for any changes to acquisition date fair value amounts made within the measurement period. Any estimated fair values in excess of the acquisition price represents a bargain purchase gain and is recorded in "Accrued expenses and other current liabilities" line on the consolidated balance sheet until the determination of fair values is completed. Once the fair value determination is completed, the bargain purchase gain is recognized on the consolidated statements of income in the "Other income/(expense), net" line. Acquisition-related transaction costs are recognized separately from the business combination and expensed as incurred. |
Revenue Recognition | Revenue Recognition --Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The promise in a contract to transfer goods or services to a customer represents a performance obligation. The Company typically sells its products to customers by purchase order and does not have any additional performance obligations included in contracts to customers other than the shipment of the products. Therefore, the Company allocates the transaction price based on a single performance obligation. The Company typically ships products FOB shipping at which point control of the products passes to the customers. The Company considers the performance obligation satisfied and recognizes revenue at a point in time, the time of shipment. The Company’s products may include routine assurance-type warranties which do not qualify as separate performance obligations. In the event that significant post-shipment obligations were to exist for the Company’s products, revenue recognition would be deferred until the performance obligations were satisfied. The Company records net sales revenues after discounts at the time of sale based on specific discount programs in effect, related historical data, and experience. |
Shipping and Handling Costs | Shipping and Handling Costs -- Shipping and handling costs are considered activities required to fulfill the Company’s promise to transfer goods, and do not qualify as a separate performance obligation. Shipping and handling costs are recorded as a component of cost of sales. |
Research and Development Expense | Research and Development Expense --The Company’s research and development activities are charged to expense in the period incurred. The Company incurred expenses of approximately $17.3 million in 2021, $21.7 million in 2020, and $20.8 million in 2019 related to research and development. |
Cash and Cash Equivalents | Cash and Cash Equivalents --The Company considers cash on hand, demand deposits, and highly liquid investments with an original maturity date of three months or less to be cash and cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments --Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures , provides guidance for defining, measuring, and disclosing fair value within an established framework and hierarchy. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs and to minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value within the hierarchy are as follows: Level 1 – Quoted prices for identical assets and liabilities in active markets; Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Accounts Receivable, Earned Discounts, and Allowance for Uncollectible Accounts | Accounts Receivable, Earned Discounts, and Allowance for Uncollectible Accounts--Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers, net of earned discounts and estimated allowances for uncollectible accounts. Earned discounts are based on specific customer agreement terms. In determining allowances for uncollectible accounts, historical collection experience, current trends, aging of accounts receivable, and periodic credit evaluations of customers’ financial condition are reviewed. |
Inventories | Inventories--Inventories are stated at the lower of cost or market. The majority of the cost of domestic and foreign inventories is determined using the FIFO method with a portion of inventory costs determined using the average cost method. The Company reviews its inventories for excess or obsolete products or components based on an analysis of historical usage and management’s evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. |
Property, Plant, and Equipment | Property, Plant, and Equipment --Property, plant, and equipment are stated at historical cost. The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use, which are included in property, plant, and equipment. Depreciation of plant and equipment is calculated on a straight line basis over the following estimated useful lives: Land improvement and buildings 10 - 40 years Machinery and equipment 5 - 10 years Software 3 - 7 years Furniture and fixtures 3 - 7 years Maintenance, repairs, and renewals of a minor nature are expensed as incurred. Betterments and major renewals which extend the useful lives or add to the productive capacity of buildings, improvements, and equipment are capitalized. The Company reviews its property, plant, and equipment for impairment at the asset group level whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If an indicator is present, the Company compares carrying values to undiscounted future cash flows; if the undiscounted future cash flows are less than the carrying value, an impairment would be recognized for the difference between the fair value and the carrying value. The Company’s depreciation expense was $30.2 million, $27.1 million, and $27.6 million in 2021, 2020, and 2019, respectively. |
Leases | Leases-- The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement and determines whether it is an operating or financing lease. Operating and financing leases result in the Company recording a right-of-use ("ROU") asset, current lease liability, and long term lease liability on its balance sheet. The Company has elected to not present leases with an initial term of 12 months or less on the balance sheet. The ROU assets and liabilities are initially recognized based on the present value of lease payments over the lease term. Initial direct costs and lease incentives are not material when measuring the ROU asset present value. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. In determining the present value, the Company utilizes interest rates from lease agreements unless the lease agreement does not provide a readily determinable rate. In these instances, the Company utilizes its incremental borrowing rate based on the Company’s borrowing information available at inception. A portion of the Company’s leases include renewal options. The Company excludes these renewal options in the expected lease term unless the Company is reasonably certain that the option will be exercised. In addition, the Company has elected not to separate non-lease components from lease components. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets --Goodwill is tested at the reporting unit level, which the Company has determined to be the Global Water Systems, Fueling Systems, and Distribution units. In assessing the recoverability of goodwill, the Company determines the fair value of its reporting units by utilizing a combination of both the income and market valuation approaches. The income approach estimates fair value based upon future revenue, expenses, and cash flows discounted to present value. The market valuation approach estimates fair value using market multipliers of various financial measures compared to a set of comparable public companies. The fair value calculated for each reporting unit is considered a Level 3 measurement within the fair value hierarchy. An indication of impairment exists if the carrying value of the reporting unit is higher than its fair value, as determined by the above approach. The Company will test goodwill for impairment more frequently if warranted by triggering events that indicate potential impairment. The Company completed its annual goodwill impairment test during the fourth quarter, using balances as of October 1. The Company also tests indefinite lived intangible assets, primarily trade names, for impairment on an annual basis during the fourth quarter of each year, using balances as of October 1, or more frequently as warranted by triggering events that indicate potential impairment. In assessing the recoverability of the trade names, the Company determines the fair value using an income approach. The income approach estimates fair value based upon future revenue and estimated royalty rates. The fair value calculated for indefinite lived intangible assets is considered a Level 3 measurement within the fair value hierarchy. An indication of impairment exists if the carrying value of the trade names is higher than the fair value. The Company would record an impairment charge for the difference. Amortization is recorded and calculated for definite lived intangible assets on a basis that reflects cash flows over the estimated useful lives. The weighted average number of years over which each intangible class is amortized is as follows: Customer relationships 13 - 20 years Patents 17 years Technology 15 years Trade names 5 - 20 years Other 5 - 8 years |
Warranty Obligations | Warranty Obligations --The Company provides warranties on most of its products. The warranty terms vary but are generally 2 years to 5 years from date of manufacture or 1 year to 5 years from date of installation. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. The Company actively studies trends of warranty claims and takes actions to improve product quality and minimize warranty claims. The Company believes that the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. |
Warranty Obligations | Warranty Obligations --The Company provides warranties on most of its products. The warranty terms vary but are generally 2 years to 5 years from date of manufacture or 1 year to 5 years from date of installation. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. The Company actively studies trends of warranty claims and takes actions to improve product quality and minimize warranty claims. The Company believes that the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. |
Income Taxes | Income Taxes --Income taxes are accounted for in accordance with FASB ASC Topic 740, Income Taxes . Under this guidance, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities and net operating loss and credit carry forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company records a liability for uncertain tax positions by establishing a recognition threshold and measurement attribute for recognition and measurement of a tax position taken or expected to be taken in a tax return. |
Defined Benefit Plans | Defined Benefit Plans --The Company makes its determination for pension, post retirement, and post employment benefit plans liabilities based on management estimates and consultation with actuaries. The Company incorporates estimates and assumptions of future plan service costs, future interest costs on projected benefit obligations, rates of compensation increases, employee turnover rates, anticipated mortality rates, expected investment returns on plan assets, asset allocation assumptions of plan assets, and other factors. |
Earnings Per Common Share | Earnings Per Common Share --Basic and diluted earnings per share are computed and disclosed in accordance with FASB ASC Topic 260, Earnings Per Share . The Company utilizes the two-class method to compute earnings available to common shareholders. Under the two-class method, earnings are adjusted by accretion amounts to redeemable noncontrolling interests recorded at redemption value. The adjustments represent dividend distributions, in substance, to the noncontrolling interest |
Translation of Foreign Currency Financial Statements | Translation of Foreign Currency Financial Statements --All assets and liabilities of foreign subsidiaries in functional currency other than the U.S. dollar are translated at year end exchange rates with the exception of the non-monetary assets and liabilities in countries with highly inflationary economies, which are translated at historical exchange rates. All revenue and expense accounts are translated at average rates in effect during the respective period with the exception of expenses related to the non-monetary assets and liabilities, which are translated at historical exchange rates. Adjustments for translating longer term foreign currency assets and liabilities in U.S. dollars are included as a component of other comprehensive income except for hyperinflation accounting adjustments. Transaction gains and losses that arise from shorter term exchange rate fluctuations and hyperinflation accounting adjustments are included in the “Foreign exchange income/(expense)” line within the Company’s consolidated statements of income, as incurred. |
Significant Estimates | Significant Estimates --The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make significant 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 expenses during the reporting periods. Significant estimates and assumptions by management affect inventory valuation, warranty, trade names and goodwill, income taxes, and pension and employee benefit obligations. Although the Company regularly assesses these estimates, actual results could materially differ. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. |
ACCOUNTING PRONOUNCEMENTS (Poli
ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In August 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services— Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants . This update amends certain SEC disclosure guidance that is included in the accounting standards codification to reflect the SEC’s recent issuance of rules intended to modernize and streamline disclosure requirements, including updates to business acquisition and disposition significance tests used, the significance thresholds for proforma statement disclosures, the number of preceding years of financial statements required for disclosure as well as other provisions in the SEC releases. The Company adopted the SEC’s guidance on January 1, 2021, the effective date of the release, relating to the amendments to financial disclosures about acquired and disposed businesses, and it did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying U.S. generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate ("LIBOR") and other reference rates which are expected to be discontinued due to reference rate reform. ASU 2020-04 is effective on a prospective basis between March 12, 2020 and December 31, 2022. The Company adopted the standard effective January 1, 2021, and it did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is expected to reduce cost and complexity related to accounting for income taxes. ASU 2019-12 eliminates the need for the Company to analyze whether certain exceptions apply and improves financial statement preparers' application of income tax-related guidance. ASU 2019-12 is effective for interim and annual periods beginning after December 15, 2020 with early adoption permitted. Amendments related to franchise taxes that are partially based on income should be applied on either a retrospective or modified retrospective basis. All other amendments should be applied on a prospective basis. The Company adopted the standard effective January 1, 2021, and it did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. Accounting Standards Issued But Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . ASU 2020-06 reduces the number of accounting models for various convertible instruments and reduces form-over-substance-based accounting conclusions for the derivatives scope exception for contracts in an entity’s own equity. The FASB also updated Earnings Per Share (“EPS”) guidance under Topic 260 by requiring an entity to consider the potential effect of share settlement in the diluted EPS calculation for instruments that may be settled in cash or shares as well as other amendments. ASU 2020-06 is effective for interim and annual periods beginning after December 15, 2021 with early adoption permitted but no earlier than fiscal years beginning after December 15, 2020. The guidance should be adopted at the beginning of a fiscal year. ASU 2020-06 should be applied on either a retrospective or modified retrospective basis. The Company is planning to adopt on January 1, 2022, but does not expect the ASU to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . ASU 2021-08 requires entities to recognize and measure contracts on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers , as if it had originated the contracts. This will improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022 with early adoption permitted. ASU 2021-08 should be applied on a prospective basis to business combinations that occur after the effective date. The Company is still determining the date of adoption for this ASU, but does not anticipate the adoption to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant, and Equipment, Useful Life | Depreciation of plant and equipment is calculated on a straight line basis over the following estimated useful lives: Land improvement and buildings 10 - 40 years Machinery and equipment 5 - 10 years Software 3 - 7 years Furniture and fixtures 3 - 7 years |
Schedule Of Finite Lived Intangible Assets, Useful Life | The weighted average number of years over which each intangible class is amortized is as follows: Customer relationships 13 - 20 years Patents 17 years Technology 15 years Trade names 5 - 20 years Other 5 - 8 years |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The preliminary purchase price assigned to the major identifiable assets and liabilities for all acquisitions in 2021 on an aggregated basis is as follows: (In millions) Assets: Inventory $ 34.70 Intangible assets 131.9 Goodwill 65.9 Other assets 38.5 Total assets 271.0 Liabilities 26.6 Less: Bargain purchase gain 0.4 Total consideration paid $ 244.0 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | As of December 31, 2021 and December 31, 2020, the assets measured at fair value on a recurring basis were as set forth in the table below: December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 5.3 $ 5.3 $ — $ — Share swap transaction $ 0.6 $ 0.6 $ — $ — December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 20.2 $ 20.2 $ — $ — |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The carrying amounts of the Company’s intangible assets are as follows: (In millions) 2021 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangibles: Customer relationships 255.1 (88.8) 165.1 (78.5) Patents $ 7.3 $ (7.3) $ 7.5 $ (7.3) Technology 7.5 (7.3) 7.5 (7.2) Trade names 42.1 (1.5) 3.4 (0.2) Other 2.8 (2.7) 2.9 (2.8) Total $ 314.8 $ (107.6) $ 186.4 $ (96.0) Unamortizing intangibles: Trade names 42.5 — 43.4 — Total intangibles $ 357.3 $ (107.6) $ 229.8 $ (96.0) |
Schedule of Finite-Lived Intangible Assets | The carrying amounts of the Company’s intangible assets are as follows: (In millions) 2021 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangibles: Customer relationships 255.1 (88.8) 165.1 (78.5) Patents $ 7.3 $ (7.3) $ 7.5 $ (7.3) Technology 7.5 (7.3) 7.5 (7.2) Trade names 42.1 (1.5) 3.4 (0.2) Other 2.8 (2.7) 2.9 (2.8) Total $ 314.8 $ (107.6) $ 186.4 $ (96.0) Unamortizing intangibles: Trade names 42.5 — 43.4 — Total intangibles $ 357.3 $ (107.6) $ 229.8 $ (96.0) |
Schedule of Amortization Expense | Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2022 2023 2024 2025 2026 $ 17.0 $ 17.0 $ 16.9 $ 16.1 $ 15.1 |
Schedule of Change in the Carrying Amount of Goodwill by Reporting Segment | The change in the carrying amount of goodwill by reportable segment for 2021 and 2020, is as follows: (In millions) Water Systems Fueling Systems Distribution Consolidated Balance as of December 31, 2019 $ 151.0 $ 67.6 $ 37.5 $ 256.1 Acquisitions 10.3 — — 10.3 Foreign currency translation 0.2 0.1 — 0.3 Balance as of December 31, 2020 $ 161.5 $ 67.7 $ 37.5 $ 266.7 Acquisitions 55.4 3.0 7.5 65.9 Adjustments to prior year acquisitions (0.1) — — (0.1) Foreign currency translation (2.9) — — (2.9) Balance as of December 31, 2021 $ 213.9 $ 70.7 45.0 $ 329.6 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plan Information | The following table sets forth aggregated information related to the Company’s pension benefits and other postretirement benefits, including changes in the benefit obligations, changes in plan assets, funded status, amounts recognized in the balance sheet, amounts recognized in accumulated other comprehensive income, and actuarial assumptions that the Company considered in its determination of benefit obligations and plan costs. Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for the Company’s pension plans, and accumulated postretirement benefit obligations (APBO) for the Company’s other benefit plans. (In millions) Pension Benefits Other Benefits 2021 2020 2021 2020 Accumulated benefit obligation, end of year $ 171.6 $ 185.4 $ 7.7 $ 8.5 Change in benefit obligation: Benefit obligation, beginning of year $ 188.9 $ 180.9 $ 8.5 $ 8.3 Service cost 0.7 0.7 — — Interest cost 2.7 4.3 0.1 0.2 Actuarial (gain)/loss (4.3) 12.8 (0.1) 0.8 Settlements paid — (0.6) — — Benefits paid (10.9) (11.4) (0.8) (0.8) Foreign currency exchange (1.9) 2.2 — — Benefit obligation, end of year $ 175.2 $ 188.9 $ 7.7 $ 8.5 Change in plan assets: Fair value of assets, beginning of year $ 153.3 $ 151.2 $ — $ — Actual return on plan assets 1.3 13.0 — — Company contributions 0.5 0.5 0.8 0.8 Settlements paid — (0.4) — — Benefits paid (10.9) (11.4) (0.8) (0.8) Foreign currency exchange (0.3) 0.4 — — Plan assets, end of year $ 143.9 $ 153.3 $ — $ — Funded status $ (31.3) $ (35.6) $ (7.7) $ (8.5) Amounts recognized in balance sheet: Non current assets $ 1.6 $ — $ — $ — Current liabilities (0.5) (0.5) (0.7) (0.8) Non current liabilities (32.4) (35.1) (7.0) (7.7) Net liability, end of year $ (31.3) $ (35.6) $ (7.7) $ (8.5) Amount recognized in accumulated other comprehensive income/(loss): Prior service cost $ — $ — $ — $ — Net actuarial loss 47.8 50.9 0.6 0.9 Settlement 0.6 0.8 — — Total recognized in accumulated other comprehensive income/(loss) $ 48.4 $ 51.7 $ 0.6 $ 0.9 As of December 31, 2021, the pension benefits' aggregate accumulated benefit obligation and benefit obligation in excess of plan assets was $33.9 million and $37.5 million. The aggregate fair value of plan assets related to the accumulated benefit obligation and benefit obligation was $4.6 million. |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following table sets forth other changes in plan assets and benefit obligation recognized in other comprehensive income for 2021 and 2020: (In millions) Pension Benefits Other Benefits 2021 2020 2021 2020 Net actuarial (gain)/loss $ (0.1) $ 6.6 $ (0.2) $ 0.8 Amortization of: Net actuarial gain (3.7) (3.1) (0.2) (0.1) Prior service credit — — — — Settlement recognition (0.6) (0.8) — — Deferred tax asset 1.4 (0.9) 0.1 (0.1) Foreign currency exchange (0.3) 0.2 — — Total recognized in other comprehensive income $ (3.3) $ 2.0 $ (0.3) $ 0.6 |
Weighted-Average Assumptions | Weighted-average assumptions used to determine domestic benefit obligations: Pension Benefits Other Benefits 2021 2020 2021 2020 Discount rate 2.68 % 2.31 % 2.57 % 2.12 % Rate of increase in future compensation — % * — % * 2.00 - 9.00% (Graded) 2.00 - 9.00% (Graded) *No rate of increases in future compensation were used in the assumptions for 2021 and 2020, as the cash balance component of the domestic Pension Plan was frozen and the other domestic Pension Plan components do not base benefits on compensation. The weighted-average interest crediting rate of the cash balance component of the domestic Pension Plan was 4.5% for 2021, 2020, and 2019 and is based on the approximate 30-year Treasury rate as of November of the prior year with a minimum of 4.5%. Assumptions used to determine domestic periodic benefit cost: Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Discount rate 2.41 % 3.17 % 4.31 % 2.12 % 2.99 % 4.18 % Rate of increase in future compensation — % * — % * — % * 2.00 - 9.00% (Graded) 2.00 - 9.00% (Graded) 3.00 - 8.00% (Graded) Expected long-term rate of return on plan assets 4.00 % 4.90 % 5.75 % — % — % — % *No rate of increases in future compensation were used in the assumptions for 2021, 2020, and 2019, as the cash balance component of the domestic Pension Plan was frozen and the other domestic Pension Plan components do not base benefits on compensation.. |
Schedule of Aggregated Net Periodic Benefit Cost and Other Benefit Cost | The following table sets forth the aggregated net periodic benefit cost for all defined benefit plans for 2021, 2020, and 2019: (In millions) Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Service cost $ 0.7 $ 0.7 $ 0.7 $ — $ — $ — Interest cost 2.7 4.3 5.8 0.1 0.2 0.3 Expected return on assets (5.5) (6.8) (8.1) — — — Amortization of: Transition obligation — — — — — — Settlement cost — — — — — — Prior service cost — — — — — — Actuarial loss 4.3 3.7 2.6 0.2 0.1 0.1 Settlement cost — — — — — — Net periodic benefit cost $ 2.2 $ 1.9 $ 1.0 $ 0.3 $ 0.3 $ 0.4 |
Schedule of Allocation of Plan Assets | As of December 31, 2021 and December 31, 2020, funds were invested in equity, fixed income, and other investments as follows: Target Percentage Plan Asset Allocation at Year-End Asset Category at Year-End 2021 2021 2020 Equity securities 18 % 18 % 17 % Fixed income securities 78 % 78 % 79 % Other 4 % 4 % 4 % Total 100 % 100 % 100 % The Company does not see any particular concentration of risk within the plans, nor any plan assets that pose difficulties for fair value assessment. The Company currently has no allocation to potentially illiquid or potentially difficult to value assets such as hedge funds, venture capital, private equity, and real estate. The Company works with actuaries and consultants in making its determination of the asset rate of return assumption and also the discount rate assumption. Asset class assumptions are set using a combination of empirical and forward-looking analysis for long-term rate of return on plan assets. A variety of models are applied for filtering historical data and isolating the fundamental characteristics of asset classes. These models provide empirical return estimates for each asset class, which are then reviewed and combined with a qualitative assessment of long-term relationships between asset classes before a return estimate is finalized. This provides an additional means for correcting for the effect of unrealistic or unsustainable short-term valuations or trends, opting instead for return levels and behavior that are more likely to prevail over long periods. With that, the Company has assumed an expected long-term rate of return on plan assets of 4.50 percent for the 2022 net periodic benefit cost, up from 4.00 percent in the prior year. This increase in the assumed long-term rate of return is primarily due to higher expected returns on the plan's fixed income assets. The Company uses the Aon Hewitt AA Above Median curve to determine the discount rate. All cash flow obligations under the plan are matched to bonds in the Aon Hewitt universe of liquid, high-quality, non-callable / non-putable corporate bonds with outliers removed. From that matching exercise, a discount rate is determined. The Company’s German pension plans are funded by insurance contract policies whereby the insurance company guarantees a fixed minimum return. Due to tax legislation, individual pension benefits can only be financed using direct insurance policies up to certain maximums. These maximum amounts in respect of each member are paid into such an arrangement on a yearly basis. The Company designated all equity and most domestic fixed income plan assets as Level 1, as they are mutual funds with prices that are readily available. The U.S. Treasury securities and German plan assets are designated as Level 2 inputs. The fair value of the German plan assets are measured by the reserve that is supervised by the German Federal Financial Supervisory Authority. The U.S. Treasury securities are administered by the United States government. The fair values of the Company’s pension plan assets for 2021 and 2020 by asset category are as follows: (In millions) 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Equity International equity mutual funds $ 26.7 $ 26.7 $ — $ — Fixed income U.S. treasury and government agency securities 18.4 — 18.4 — Fixed income mutual funds 93.4 93.4 — — Other Insurance contracts 4.7 — 4.7 — Cash and equivalents 0.7 0.7 — — Total $ 143.9 $ 120.8 $ 23.1 $ — (In millions) 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Equity International equity mutual funds $ 26.1 $ 26.1 $ — $ — Fixed income U.S. treasury and government agency securities 16.8 — 16.8 — Fixed income mutual funds 104.8 104.8 — — Other Insurance contracts 4.8 — 4.8 — Cash and equivalents 0.8 0.8 — — Total $ 153.3 $ 131.7 $ 21.6 $ — |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in accordance with the following schedule: (In millions) Pension Benefits Other Benefits 2022 $ 10.8 $ 0.7 2023 $ 10.4 $ 0.7 2024 $ 17.5 $ 0.7 2025 $ 13.5 $ 0.6 2026 $ 9.8 $ 0.6 Years 2027 through 2031 $ 46.0 $ 2.5 |
Schedule of Company Contributions to Defined Contribution Plans | The following table sets forth Company contributions to the defined contribution plans: (In millions) 2021 2020 2019 Company contributions to the plans $ 8.9 $ 7.3 $ 7.4 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses and other current liabilities consist of: (In millions) 2021 2020 Salaries, wages, and commissions $ 62.3 $ 36.4 Product warranty costs 10.5 9.7 Insurance 2.3 2.4 Employee benefits 11.9 9.8 Other 28.4 30.7 $ 115.4 $ 89.0 |
INCOME TAXES INCOME TAXES (Tabl
INCOME TAXES INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes consisted of the following: (In millions) 2021 2020 2019 Domestic $ 113.1 $ 74.1 $ 55.5 Foreign 76.6 49.6 61.3 $ 189.7 $ 123.7 $ 116.8 |
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision/(benefit) from continuing operations consisted of the following: (In millions) 2021 2020 2019 Current: Federal $ 15.9 $ 11.9 $ 6.9 Foreign 15.7 12.3 15.1 State 3.0 2.6 1.4 Total current 34.6 26.8 23.4 Deferred: Federal (0.7) (0.2) (0.6) Foreign (0.1) (4.0) (2.5) State 0.9 (0.1) 0.5 Total deferred $ 0.1 $ (4.3) $ (2.6) $ 34.7 $ 22.5 $ 20.8 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows: 2021 2020 2019 U.S. Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.7 1.5 1.1 Foreign operations 0.2 0.3 (1.0) R&D tax credits (0.5) (0.7) (0.8) Uncertain tax position adjustments 0.2 0.1 (0.6) Valuation allowance on state and foreign deferred tax (0.6) 1.7 0.4 Share-based compensation (2.3) (0.8) (0.8) Realized foreign currency loss — (4.0) (0.4) Other items (0.6) 0.7 0.3 Foreign Derived Intangible Income (1.9) (2.6) (2.0) Nondeductible officers compensation 1.1 1.0 0.6 Effective tax rate 18.3 % 18.2 % 17.8 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows: (In millions) 2021 2020 Deferred tax assets: Accrued expenses and reserves $ 13.5 $ 13.0 Compensation and employee benefits 19.2 19.8 Net operating losses, tax credit carryforwards, and other 17.0 20.7 Lease liability 12.2 8.0 Valuation allowance on state and foreign deferred tax (6.5) (8.3) Total deferred tax assets 55.4 53.2 Deferred tax liabilities: Accelerated depreciation on fixed assets 12.0 12.1 Amortization of intangibles 51.2 49.4 Right-of-use asset, net 12.2 8.0 Other items 0.5 0.5 Total deferred tax liabilities 75.9 70.0 Net deferred tax liabilities $ (20.5) $ (16.8) |
Summary of Operating Loss Carryforwards | The Company has foreign income tax net operating loss (“NOL”) and credit carryforwards of $11.0 million and state income tax NOL and credit carryforwards of $6.0 million, which will expire on various dates as follows: (In millions) 2022-2024 $ 1.2 2025-2029 3.5 2030-2034 1.3 2035-2039 0.8 Unlimited 10.2 $ 17.0 |
Schedule of Unrecognized Tax Benefits Rollforward | As of the beginning of fiscal year 2021, the Company had gross unrecognized tax benefits of $0.6 million, excluding accrued interest and penalties. The unrecognized tax benefits increased due to uncertain tax positions identified in the current year based on evaluations made during 2021. The Company had gross unrecognized tax benefits, excluding accrued interest and penalties, of $0.9 million as of December 31, 2021. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2021, 2020, and 2019 (excluding interest and penalties) is as follows: (In millions) 2021 2020 2019 Beginning balance $ 0.6 $ 0.4 $ 1.1 Additions for tax positions of the current year 0.3 0.6 — Additions for tax positions of prior years — — — Reductions for tax positions of prior years — — (0.4) Statute expirations — (0.4) (0.3) Settlements — — — Ending balance $ 0.9 $ 0.6 $ 0.4 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | (In millions) 2021 2020 New York Life Agreement $ 75.0 $ 75.0 Credit Agreement 96.6 — Tax increment financing debt 16.5 17.6 Financing leases — 0.1 Foreign subsidiary debt 0.5 1.8 Other 0.1 0.2 Less: unamortized debt issuance costs (0.2) (0.1) 188.5 94.6 Less current maturities (98.0) (2.6) Long-term debt $ 90.5 $ 92.0 |
Schedule of Long-term Debt Payments | Debt outstanding at December 31, 2021, excluding unamortized debt issuance costs, matures as follows: (In millions) Total 2022 2023 2024 2025 2026 Thereafter Debt $ 188.7 $ 98.0 $ 1.3 $ 1.4 $ 76.4 $ 1.5 $ 10.1 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shares Repurchased and Retired During Year | During 2021, 2020, and 2019, pursuant to a stock repurchase program authorized by the Company’s Board of Directors, the Company repurchased and retired the following amounts and number of shares: (In millions, except share amounts) 2021 2020 2019 Repurchases $ 15.3 $ 15.2 $ 6.6 Shares 192,509 322,147 150,778 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | Changes in accumulated other comprehensive income/(loss), net of tax, by component are summarized below: (In millions) Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments (2) Total Balance, December 31, 2018 $ (134.5) $ (48.5) $ (183.0) Other comprehensive income/(loss) before reclassifications (5.7) — (5.7) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — (1.5) (1.5) Net other comprehensive income/(loss) (5.7) (1.5) (7.2) Balance, December 31, 2019 $ (140.2) $ (50.0) $ (190.2) Other comprehensive income/(loss) before reclassifications (12.0) — (12.0) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — (2.6) (2.6) Net other comprehensive income/(loss) (12.0) (2.6) (14.6) Balance, December 31, 2020 $ (152.2) $ (52.6) $ (204.8) Other comprehensive income/(loss) before reclassifications (27.4) — (27.4) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 3.6 3.6 Net other comprehensive income/(loss) (27.4) 3.6 (23.8) Balance, December 31, 2021 $ (179.6) $ (49.0) $ (228.6) (1) This accumulated other comprehensive income/(loss) component is included in the computation of net periodic pension cost (refer to Note 7 - Employee Benefit Plans for additional details) and is included in the “Selling, general, and administrative expenses” line of the Company’s consolidated statements of income. (2) Net of tax (benefit)/expense of $1.5 million, $(1.1) million and $(0.6) million for 2021, 2020, and 2019, respectively. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: (In millions, except per share amounts) 2021 2020 2019 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 153.9 $ 100.5 $ 95.5 Less: Earnings allocated to participating securities 0.9 0.7 0.7 Net income available to common shareholders $ 153.0 $ 99.8 $ 94.8 Denominator: Basic weighted average common shares outstanding 46.4 46.2 46.4 Effect of dilutive securities: Non-participating employee stock options and performance awards 0.6 0.5 0.4 Diluted weighted average common shares outstanding 47.0 46.7 46.8 Basic earnings per share $ 3.29 $ 2.16 $ 2.04 Diluted earnings per share $ 3.25 $ 2.14 $ 2.03 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Authorized Number of Shares | The 2012 Stock Plan authorized 2,400,000 shares for issuance as follows: 2012 Stock Plan Authorized Shares Stock Options 1,680,000 Stock/Stock Unit Awards 720,000 The Company also maintains the Amended and Restated Franklin Electric Co., Inc. Stock Plan (the “2009 Stock Plan”) which, as amended in 2009, provided for discretionary grants of stock options and stock awards. The 2009 Stock Plan authorized 4,400,000 shares for issuance as follows: 2009 Stock Plan Authorized Shares Stock Options 3,200,000 Stock Awards 1,200,000 |
Schedule of Assumptions Used to Determine the Fair Value of Options Granted | The table below provides the weighted average grant-date fair values and key assumptions used for the Black-Scholes model to determine the fair value of options granted during 2021, 2020, and 2019: 2021 2020 2019 Risk-free interest rate 0.66 % 1.39 % 2.53 % Dividend yield 0.96 % 1.04 % 1.05 % Volatility factor 34.98 % 29.45 % 29.38 % Expected term 5.5 years 5.5 years 5.5 years Weighted average grant-date fair value of options $ 21.70 $ 15.63 $ 15.61 |
Schedule of Stock Option Plans Activity | A summary of the Company’s outstanding stock option activity and related information is as follows: (Shares in thousands) Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Outstanding at beginning of 2021 1,331 $ 41.90 Granted 152 73.14 Exercised (440) 35.33 Forfeited — — Outstanding at end of 2021 1,043 $ 49.21 5.87 years $ 47,323 Expected to vest after applying forfeiture rate 1,042 $ 49.17 5.87 years $ 47,277 Vested and exercisable at end of period 707 $ 43.22 4.80 years $ 36,306 (In millions) 2021 2020 2019 Intrinsic value of options exercised $ 20.7 $ 3.3 $ 4.6 Cash received from the exercise of options 15.5 3.7 3.2 Fair value of shares vested 3.9 2.9 2.6 Tax benefit of options exercised 5.1 0.8 1.1 |
Schedule of Restricted Stock/Stock Unit Award Activity | A summary of the Company’s restricted stock/stock unit award activity and related information is as follows: (Shares in thousands) Restricted Stock/Stock Unit Awards Weighted-Average Grant- Non-vested at beginning of 2021 403 $ 49.34 Awarded 104 74.23 Vested (138) 44.39 Forfeited (21) 58.27 Non-vested at end of 2021 348 $ 58.20 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Business Segment | Financial information by reportable business segment is included in the following summary: Net Sales (In millions) 2021 2020 2019 Water Systems External sales United States & Canada $ 460.8 $ 327.6 $ 367.6 Latin America 139.5 118.5 124.2 Europe, Middle East & Africa 189.8 156.8 155.6 Asia Pacific 85.1 70.9 81.8 Intersegment sales United States & Canada 88.4 60.9 52.3 Total sales 963.6 734.7 781.5 Distribution External sales United States & Canada 497.6 328.4 291.8 Intersegment sales — — — Total sales 497.6 328.4 291.8 Fueling Systems External sales United States & Canada 198.5 158.2 173.5 All other 90.6 86.9 120.1 Intersegment sales — — — Total Sales 289.1 245.1 293.6 Intersegment Eliminations/Other (88.4) (60.9) (52.3) Consolidated $ 1,661.9 $ 1,247.3 $ 1,314.6 Operating income (loss) 2021 2020 2019 Water Systems $ 139.1 $ 114.4 $ 103.0 Distribution 35.9 11.5 3.6 Fueling Systems 79.5 63.4 75.8 Intersegment Eliminations/Other (65.3) (58.8) (55.3) Consolidated $ 189.2 $ 130.5 $ 127.1 Total assets Depreciation 2021 2020 2019 2021 2020 2019 Water Systems $ 894.4 $ 645.9 $ 658.3 $ 19.8 $ 18.7 $ 19.0 Distribution 363.0 249.0 180.2 4.4 2.6 2.8 Fueling Systems 273.6 268.9 283.8 2.2 2.1 2.1 Other 44.2 108.5 72.4 3.8 3.7 3.7 Consolidated $ 1,575.2 $ 1,272.3 $ 1,194.7 $ 30.2 $ 27.1 $ 27.6 Amortization Capital expenditures 2021 2020 2019 2021 2020 2019 Water Systems $ 11.9 $ 6.9 $ 6.9 $ 19.4 $ 16.9 $ 15.1 Distribution 0.7 0.6 0.5 6.5 3.5 3.9 Fueling Systems 1.8 1.8 1.9 3.0 2.0 1.9 Other — 0.1 0.1 1.2 0.5 1.2 Consolidated $ 14.4 $ 9.4 $ 9.4 $ 30.1 $ 22.9 $ 22.1 |
Schedule of Financial Information by Geographic Region | Financial information by geographic region is as follows: Net sales Long-lived assets (In millions) 2021 2020 2019 2021 2020 2019 United States $ 1,075.7 $ 760.6 $ 776.6 $ 604.5 $ 405.9 $ 394.7 Foreign 586.2 486.7 538.0 238.4 238.3 223.4 Consolidated $ 1,661.9 $ 1,247.3 $ 1,314.6 $ 842.9 $ 644.2 $ 618.1 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of the Warranty Accrual | The changes in the carrying amount of the warranty accrual, as recorded in the “Accrued expenses and other current liabilities” line of the Company’s consolidated balance sheets for 2021 and 2020, are as follows: (In millions) 2021 2020 Beginning balance $ 9.7 $ 9.1 Accruals related to product warranties 9.7 9.4 Additions related to acquisitions 0.1 0.6 Reductions for payments made (9.0) (9.4) Ending balance $ 10.5 $ 9.7 |
Lease, Cost | The components of the Company's operating lease portfolio as of 2021, 2020, and 2019 are as follows: Lease Cost (In millions): 2021 2020 2019 Operating lease cost $ 13.6 $ 11.4 $ 11.7 Short-term lease cost 0.6 0.4 0.5 Other Information: Weighted-average remaining lease term 4.2 years 3.9 years Weighted-average discount rate 3.9 % 3.7 % |
Lessee, Operating Lease, Liability, Maturity | The future minimum rental payments for non-cancellable operating leases as of December 31, 2021, are as follows: (In millions) Total 2022 2023 2024 2025 2026 Thereafter Undiscounted future minimum rental payments $ 52.4 $ 16.4 $ 12.3 $ 8.3 $ 5.3 $ 3.9 $ 6.2 Less: Imputed Interest 4.1 Present value of lease liabilities $ 48.3 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies | |||
Research and development expense | $ 17.3 | $ 21.7 | $ 20.8 |
Minimum | |||
Accounting Policies | |||
Standard warranty obligation, term | 2 years | ||
Standard installation warranty obligation, term | 1 year | ||
Maximum | |||
Accounting Policies | |||
Standard warranty obligation, term | 5 years | ||
Standard installation warranty obligation, term | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant & Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | |||
Depreciation | $ 30.2 | $ 27.1 | $ 27.6 |
Land Improvements and Buildings | Minimum | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, useful life | 10 years | ||
Land Improvements and Buildings | Maximum | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, useful life | 40 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, useful life | 5 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, useful life | 10 years | ||
Software | Minimum | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, useful life | 3 years | ||
Software | Maximum | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, useful life | 7 years | ||
Furniture and Fixtures | Minimum | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, useful life | 3 years | ||
Furniture and Fixtures | Maximum | |||
Property, Plant and Equipment | |||
Property, plant, and equipment, useful life | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Intangibles) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Customer relationships | Minimum | |
Intangible Assets | |
Finite-lived intangible asset, useful life | 13 years |
Customer relationships | Maximum | |
Intangible Assets | |
Finite-lived intangible asset, useful life | 20 years |
Patents | |
Intangible Assets | |
Finite-lived intangible asset, useful life | 17 years |
Technology | |
Intangible Assets | |
Finite-lived intangible asset, useful life | 15 years |
Trade names | Minimum | |
Intangible Assets | |
Finite-lived intangible asset, useful life | 5 years |
Trade names | Maximum | |
Intangible Assets | |
Finite-lived intangible asset, useful life | 20 years |
Other | Minimum | |
Intangible Assets | |
Finite-lived intangible asset, useful life | 5 years |
Other | Maximum | |
Intangible Assets | |
Finite-lived intangible asset, useful life | 8 years |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Business Acquisition | |||||||||||
Bargain Purchase Gain | $ 6,482 | $ 0 | $ 0 | ||||||||
Goodwill | $ 329,630 | $ 266,737 | 329,630 | 266,737 | 256,100 | ||||||
Business combination, acquisition related costs | $ 900 | 0 | $ 200 | ||||||||
B&R Industries, Inc | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | 100.00% | |||||||||
Business combination consideration transferred | $ 16,200 | ||||||||||
Blake Group Holdings, Inc. | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | 100.00% | |||||||||
Business combination consideration transferred | $ 28,600 | ||||||||||
Minetuff Dewatering Pumps Australia Pty Ltd | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | ||||||||||
Business combination consideration transferred | $ 13,700 | ||||||||||
Puronics, Inc. | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | ||||||||||
New Aqua, LLC | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | ||||||||||
Intangible assets | $ 93,700 | ||||||||||
Atlantic Turbine Pump, LLC | |||||||||||
Business Acquisition | |||||||||||
Bargain Purchase Gain | 400 | ||||||||||
Series of Individually Immaterial Business Acquisitions | |||||||||||
Business Acquisition | |||||||||||
Business combination consideration transferred | $ 185,500 | ||||||||||
Bargain Purchase Gain | $ 400 | ||||||||||
Intangible assets | 131,900 | 14,900 | 131,900 | $ 14,900 | |||||||
Acquired finite-lived Intangible asset, weighted average useful life (in years) | 15 years | ||||||||||
Goodwill | 65,900 | 10,200 | 65,900 | $ 10,200 | |||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 62,100 | $ 1,400 | 62,100 | $ 1,400 | |||||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 191,300 | ||||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 72,500 | ||||||||||
Gicon Pumps & Equipment, Inc. | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | 100.00% | |||||||||
Business combination consideration transferred | $ 28,100 | ||||||||||
Bargain Purchase Gain | $ 6,100 | ||||||||||
Waterite, Inc. and Waterite America, Inc. | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | 100.00% | |||||||||
Business combination consideration transferred | $ 21,900 | ||||||||||
Company | |||||||||||
Business Acquisition | |||||||||||
Business combination consideration transferred | $ 5,900 | ||||||||||
First Sales, LLC | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | ||||||||||
Business combination consideration transferred | $ 15,500 | ||||||||||
Pluga Pumps and Motors Private Limited | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | ||||||||||
Milan Supply Company | |||||||||||
Business Acquisition | |||||||||||
Business combination percentage of voting interests acquired | 100.00% | ||||||||||
Business combination consideration transferred | $ 6,100 | ||||||||||
Minimum | Series of Individually Immaterial Business Acquisitions | |||||||||||
Business Acquisition | |||||||||||
Acquired finite-lived Intangible asset, weighted average useful life (in years) | 12 years | ||||||||||
Maximum | Series of Individually Immaterial Business Acquisitions | |||||||||||
Business Acquisition | |||||||||||
Acquired finite-lived Intangible asset, weighted average useful life (in years) | 20 years |
ACQUISITIONS (Assets Acquired a
ACQUISITIONS (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition | |||
Goodwill | $ 329,630 | $ 266,737 | $ 256,100 |
Bargain Purchase Gain | 6,482 | 0 | $ 0 |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Inventory | 34,700 | ||
Intangible assets | 131,900 | 14,900 | |
Goodwill | 65,900 | $ 10,200 | |
Other assets | 38,500 | ||
Total assets | 271,000 | ||
Liabilities | 26,600 | ||
Bargain Purchase Gain | 400 | ||
Total consideration paid | $ 244,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Total debt, carrying value | $ 188.5 | $ 94.6 |
Recurring Basis | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 5.3 | 20.2 |
Equity Securities, FV-NI | 0.6 | |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 5.3 | 20.2 |
Equity Securities, FV-NI | 0.6 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Equity Securities, FV-NI | 0 | |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Equity Securities, FV-NI | 0 | |
Carrying value | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Total debt, carrying value | 188.5 | 94.6 |
Fair value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Total debt, fair value | $ 196.1 | $ 107.3 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - Share Swap Transaction Agreement - Not Designated as Hedging Instrument $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Derivative | |||
Derivative cancellable written notice term | 30 days | ||
Derivative, Nonmonetary Notional Amount | shares | 210,000 | ||
Selling, General and Administrative Expenses | |||
Derivative | |||
Gain on derivative | $ | $ 6.2 | $ 3.2 | $ 3.4 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible Assets | ||
Gross Carrying Amount, amortized intangibles | $ 314.8 | $ 186.4 |
Accumulated Amortization | (107.6) | (96) |
Gross carrying amount, total intangibles | 357.3 | 229.8 |
Trade names | ||
Intangible Assets | ||
Gross Carrying Amount, unamortized intangibles | 42.5 | 43.4 |
Customer relationships | ||
Intangible Assets | ||
Gross Carrying Amount, amortized intangibles | 255.1 | 165.1 |
Accumulated Amortization | (88.8) | (78.5) |
Patents | ||
Intangible Assets | ||
Gross Carrying Amount, amortized intangibles | 7.3 | 7.5 |
Accumulated Amortization | (7.3) | (7.3) |
Technology | ||
Intangible Assets | ||
Gross Carrying Amount, amortized intangibles | 7.5 | 7.5 |
Accumulated Amortization | (7.3) | (7.2) |
Trade names | ||
Intangible Assets | ||
Gross Carrying Amount, amortized intangibles | 42.1 | 3.4 |
Accumulated Amortization | (1.5) | (0.2) |
Other | ||
Intangible Assets | ||
Gross Carrying Amount, amortized intangibles | 2.8 | 2.9 |
Accumulated Amortization | $ (2.7) | $ (2.8) |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Future Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense, intangible assets | $ 14.4 | $ 9.4 | $ 9.4 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2022 | 17 | ||
2023 | 17 | ||
2024 | 16.9 | ||
2025 | 16.1 | ||
2026 | $ 15.1 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | ||
Goodwill, beginning balance | $ 266,737 | $ 256,100 |
Acquisitions | 65,900 | 10,300 |
Adjustments to prior year acquisitions | (100) | |
Foreign currency translation | (2,900) | 300 |
Goodwill, ending balance | 329,630 | 266,737 |
Water Systems | ||
Goodwill | ||
Goodwill, beginning balance | 161,500 | 151,000 |
Acquisitions | 55,400 | 10,300 |
Adjustments to prior year acquisitions | (100) | |
Foreign currency translation | (2,900) | 200 |
Goodwill, ending balance | 213,900 | 161,500 |
Fueling Systems | ||
Goodwill | ||
Goodwill, beginning balance | 67,700 | 67,600 |
Acquisitions | 3,000 | 0 |
Adjustments to prior year acquisitions | 0 | |
Foreign currency translation | 0 | 100 |
Goodwill, ending balance | 70,700 | 67,700 |
Distribution | ||
Goodwill | ||
Goodwill, beginning balance | 37,500 | 37,500 |
Acquisitions | 7,500 | 0 |
Adjustments to prior year acquisitions | 0 | |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | $ 45,000 | $ 37,500 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Pension_Plan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Amounts recognized in balance sheet: | |||
Non current liabilities | $ (40,696) | $ (44,443) | |
United States | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Number of pension plans | Pension_Plan | 2 | ||
Foreign | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Number of pension plans | Pension_Plan | 3 | ||
Pension Benefits | |||
Net Periodic Benefit Cost and Other Benefit Cost | |||
Accumulated benefit obligation, end of year | $ 171,600 | 185,400 | |
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligation, beginning of year | 188,900 | 180,900 | |
Service cost | 700 | 700 | $ 700 |
Interest cost | 2,700 | 4,300 | 5,800 |
Actuarial (gain)/loss | (4,300) | 12,800 | |
Settlements paid | 0 | (600) | |
Benefits paid | 10,900 | 11,400 | |
Foreign currency exchange | (1,900) | 2,200 | |
Benefit obligation, end of year | 175,200 | 188,900 | 180,900 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of assets, beginning of year | 153,300 | 151,200 | |
Actual return on plan assets | 1,300 | 13,000 | |
Company contributions | 500 | 500 | |
Settlements paid | 0 | (400) | |
Benefits paid | 10,900 | 11,400 | |
Foreign currency exchange | (300) | 400 | |
Plan assets, end of year | 143,900 | 153,300 | 151,200 |
Funded status | (31,300) | (35,600) | |
Amounts recognized in balance sheet: | |||
Non current assets | 1,600 | 0 | |
Current liabilities | (500) | (500) | |
Non current liabilities | (32,400) | (35,100) | |
Net liability, end of year | (31,300) | (35,600) | |
Amount recognized in accumulated other comprehensive income/(loss): | |||
Prior service cost | 0 | 0 | |
Net actuarial loss | 47,800 | 50,900 | |
Settlement | 600 | 800 | |
Total recognized in accumulated other comprehensive income/(loss) | 48,400 | 51,700 | |
Accumulated benefit obligation in excess of plan assets, aggregate | 33,900 | ||
Projected benefit obligation in excess of plan assets, aggregate | 37,500 | ||
Plan assets related to accumulated benefit obligation and benefit obligation, aggregate | 4,600 | ||
Other Benefits | |||
Net Periodic Benefit Cost and Other Benefit Cost | |||
Accumulated benefit obligation, end of year | 7,700 | 8,500 | |
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligation, beginning of year | 8,500 | 8,300 | |
Service cost | 0 | 0 | 0 |
Interest cost | 100 | 200 | 300 |
Actuarial (gain)/loss | (100) | 800 | |
Settlements paid | 0 | 0 | |
Benefits paid | 800 | 800 | |
Foreign currency exchange | 0 | 0 | |
Benefit obligation, end of year | $ 7,700 | 8,500 | 8,300 |
Actuarially reduced benefits for employees who retire before defined age | 65 years | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of assets, beginning of year | $ 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 800 | 800 | |
Settlements paid | 0 | 0 | |
Benefits paid | 800 | 800 | |
Foreign currency exchange | 0 | 0 | |
Plan assets, end of year | 0 | 0 | $ 0 |
Funded status | (7,700) | (8,500) | |
Amounts recognized in balance sheet: | |||
Non current assets | 0 | 0 | |
Current liabilities | (700) | (800) | |
Non current liabilities | (7,000) | (7,700) | |
Net liability, end of year | (7,700) | (8,500) | |
Amount recognized in accumulated other comprehensive income/(loss): | |||
Prior service cost | 0 | 0 | |
Net actuarial loss | 600 | 900 | |
Settlement | 0 | 0 | |
Total recognized in accumulated other comprehensive income/(loss) | $ 600 | $ 900 |
EMPLOYEE BENEFIT PLANS (Other C
EMPLOYEE BENEFIT PLANS (Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Net actuarial (gain)/loss | $ (0.1) | $ 6.6 |
Amortization of: | ||
Amortization arising during period | (3.7) | (3.1) |
Prior service credit | 0 | 0 |
Settlement recognition | (0.6) | (0.8) |
Deferred tax asset | 1.4 | (0.9) |
Foreign currency exchange | (0.3) | 0.2 |
Total recognized in other comprehensive income | (3.3) | 2 |
Other Benefits | ||
Defined Benefit Plan Disclosure | ||
Net actuarial (gain)/loss | (0.2) | 0.8 |
Amortization of: | ||
Amortization arising during period | (0.2) | (0.1) |
Prior service credit | 0 | 0 |
Settlement recognition | 0 | 0 |
Deferred tax asset | 0.1 | (0.1) |
Foreign currency exchange | 0 | 0 |
Total recognized in other comprehensive income | $ (0.3) | $ 0.6 |
EMPLOYEE BENEFIT PLANS (Assumpt
EMPLOYEE BENEFIT PLANS (Assumptions Used to Determine Domestic Benefit Obligations and Domestic Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 4.50% | 4.50% | 4.50% |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Expected long-term rate of return on plan assets | 4.50% | 4.00% | |
Pension Benefits | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Discount rate | 2.68% | 2.31% | |
Rate of increase in future compensation | 0.00% | 0.00% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 2.41% | 3.17% | 4.31% |
Rate of increase in future compensation | 0.00% | 0.00% | 0.00% |
Expected long-term rate of return on plan assets | 4.00% | 4.90% | 5.75% |
Other Benefits | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Discount rate | 2.57% | 2.12% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 2.12% | 2.99% | 4.18% |
Expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Other Benefits | Minimum | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Rate of increase in future compensation | 2.00% | 2.00% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Rate of increase in future compensation | 2.00% | 2.00% | 3.00% |
Other Benefits | Maximum | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Rate of increase in future compensation | 9.00% | 9.00% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Rate of increase in future compensation | 9.00% | 9.00% | 8.00% |
EMPLOYEE BENEFIT PLANS (Net Per
EMPLOYEE BENEFIT PLANS (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Periodic Benefit Cost | |||
Attempted plan funded status, minimum, percentage | 80.00% | ||
Pension Benefits | |||
Net Periodic Benefit Cost | |||
Service cost | $ 0.7 | $ 0.7 | $ 0.7 |
Interest cost | 2.7 | 4.3 | 5.8 |
Expected return on assets | (5.5) | (6.8) | (8.1) |
Transition obligation | 0 | 0 | 0 |
Settlement cost | 0 | 0 | 0 |
Prior service cost | 0 | 0 | 0 |
Actuarial loss | 4.3 | 3.7 | 2.6 |
Settlement cost | 0 | 0 | 0 |
Net periodic benefit cost | 2.2 | 1.9 | 1 |
Other Benefits | |||
Net Periodic Benefit Cost | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.1 | 0.2 | 0.3 |
Expected return on assets | 0 | 0 | 0 |
Transition obligation | 0 | 0 | 0 |
Settlement cost | 0 | 0 | 0 |
Prior service cost | 0 | 0 | 0 |
Actuarial loss | 0.2 | 0.1 | 0.1 |
Settlement cost | 0 | 0 | 0 |
Net periodic benefit cost | $ 0.3 | $ 0.3 | $ 0.4 |
EMPLOYEE BENEFIT PLANS (Funds I
EMPLOYEE BENEFIT PLANS (Funds Invested in Equity, Fixed income, and Other Investments and Fair Values of Pension Plan Assets by Asset Category) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure | |||
Target plan asset allocations | 100.00% | ||
Plan asset allocations | 100.00% | 100.00% | |
Equity securities | |||
Defined Benefit Plan Disclosure | |||
Target plan asset allocations | 18.00% | ||
Plan asset allocations | 18.00% | 17.00% | |
Fixed income securities | |||
Defined Benefit Plan Disclosure | |||
Target plan asset allocations | 78.00% | ||
Plan asset allocations | 78.00% | 79.00% | |
Other | |||
Defined Benefit Plan Disclosure | |||
Target plan asset allocations | 4.00% | ||
Plan asset allocations | 4.00% | 4.00% | |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 143.9 | $ 153.3 | $ 151.2 |
Pension Benefits | International equity mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 26.7 | 26.1 | |
Pension Benefits | U.S. treasury and government agency securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 18.4 | 16.8 | |
Pension Benefits | Fixed income mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 93.4 | 104.8 | |
Pension Benefits | Insurance contracts | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 4.7 | 4.8 | |
Pension Benefits | Cash and equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0.7 | 0.8 | |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 120.8 | 131.7 | |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | International equity mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 26.7 | 26.1 | |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasury and government agency securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 93.4 | 104.8 | |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | Insurance contracts | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0.7 | 0.8 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 23.1 | 21.6 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | International equity mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | U.S. treasury and government agency securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 18.4 | 16.8 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | Fixed income mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | Insurance contracts | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 4.7 | 4.8 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | Cash and equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | International equity mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | U.S. treasury and government agency securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Fixed income mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Insurance contracts | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Cash and equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Expecte
EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure | |
Estimated future employer contributions in next fiscal year | $ 0.9 |
Pension Benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments | |
2022 | 10.8 |
2023 | 10.4 |
2024 | 17.5 |
2025 | 13.5 |
2026 | 9.8 |
Years 2027 through 2031 | 46 |
Other Benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments | |
2022 | 0.7 |
2023 | 0.7 |
2024 | 0.7 |
2025 | 0.6 |
2026 | 0.6 |
Years 2027 through 2031 | $ 2.5 |
EMPLOYEE BENEFIT PLANS (Defined
EMPLOYEE BENEFIT PLANS (Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Company contributions to the plans | $ 8.9 | $ 7.3 | $ 7.4 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Salaries, wages, and commissions | $ 62,300 | $ 36,400 |
Product warranty costs | 10,500 | 9,700 |
Insurance | 2,300 | 2,400 |
Employee benefits | 11,900 | 9,800 |
Other | 28,400 | 30,700 |
Accrued expenses and other current liabilities | $ 115,408 | $ 89,048 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% |
Income Tax Expense (Benefit) - Share-based Compensation | $ 5 | ||
Adjustment for Long-term Intercompany Transactions, Tax Expense (Benefit) | $ 5 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 0.9 | ||
Valuation allowance | 6.5 | 8.3 | |
Deferred taxes on the excess of the financial reporting over the tax basis in our investments in foreign subsidiaries that are essentially permanent in duration | 415.8 | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 6.4 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | 0.9 | 0.6 | $ 0.4 |
Reserve for interest and penalties | 0.1 | $ 0.1 | $ 0.1 |
Foreign NOL carryforwards | |||
Income Tax Contingency | |||
Valuation allowance | 4.8 | ||
State NOL carryforwards | |||
Income Tax Contingency | |||
Valuation allowance | $ 1.7 |
INCOME TAXES (Income Before Inc
INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income before income taxes | |||
Domestic | $ 113,100 | $ 74,100 | $ 55,500 |
Foreign | 76,600 | 49,600 | 61,300 |
Income before income taxes | $ 189,706 | $ 123,697 | $ 116,835 |
INCOME TAXES (Income tax provis
INCOME TAXES (Income tax provisions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 15,900 | $ 11,900 | $ 6,900 |
Foreign | 15,700 | 12,300 | 15,100 |
State | 3,000 | 2,600 | 1,400 |
Total current | 34,600 | 26,800 | 23,400 |
Deferred: | |||
Federal | (700) | (200) | (600) |
Foreign | (100) | (4,000) | (2,500) |
State | 900 | (100) | 500 |
Total deferred | 126 | (4,268) | (2,566) |
Current payable and deferred - Income tax provisions | $ 34,731 | $ 22,540 | $ 20,836 |
INCOME TAXES (Effective tax rat
INCOME TAXES (Effective tax rate reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 1.70% | 1.50% | 1.10% |
Foreign operations | 0.20% | 0.30% | (1.00%) |
R&D tax credits | (0.50%) | (0.70%) | (0.80%) |
Uncertain tax position adjustments | 0.20% | 0.10% | (0.60%) |
Valuation allowance on state and foreign deferred tax | (0.60%) | 1.70% | 0.40% |
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Percent | (2.30%) | (0.80%) | (0.80%) |
Realized foreign currency loss impact on effective tax rate | 0.00% | (4.00%) | (0.40%) |
Other items | (0.60%) | 0.70% | 0.30% |
Deduction for Foreign Derived Intangible Income | (1.90%) | (2.60%) | (2.00%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | 1.10% | 1.00% | 0.60% |
Effective tax rate | 18.30% | 18.20% | 17.80% |
INCOME TAXES (Deferred tax asse
INCOME TAXES (Deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accrued expenses and reserves | $ 13.5 | $ 13 |
Compensation and employee benefits | 19.2 | 19.8 |
Net operating losses, tax credit carryforwards, and other | 17 | 20.7 |
Lease liability | 12.2 | 8 |
Valuation allowance on state and foreign deferred tax | (6.5) | (8.3) |
Total deferred tax assets | 55.4 | 53.2 |
Deferred tax liabilities: | ||
Accelerated depreciation on fixed assets | 12 | 12.1 |
Amortization of intangibles | 51.2 | 49.4 |
Right-of-use asset, net | 12.2 | 8 |
Other items | 0.5 | 0.5 |
Total deferred tax liabilities | 75.9 | 70 |
Net deferred tax liabilities | $ (20.5) | $ (16.8) |
INCOME TAXES (Summary of operat
INCOME TAXES (Summary of operating loss carryforwards) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Summary of Operating Loss Carryforwards [Abstract] | |
Deferred tax assets, operating loss carryforwards, foreign | $ 11 |
Deferred tax assets, operating loss carryforwards, state and local | 6 |
Deferred tax assets, operating loss carryforwards, subject to expiration, years 2021-2024 | 1.2 |
Deferred tax assets, operating loss carryforwards, subject to expiration, years 2025-2029 | 3.5 |
Deferred tax assets, operating loss carryforwards, subject to expiration, years 2030-2034 | 1.3 |
Deferred Tax Assets, Operating Loss Carryforward, Subject to Expiration, Years 2035-2039 | 0.8 |
Deferred tax assets, operating loss carryforwards, subject to expiration, unlimited | 10.2 |
Deferred tax assets, operating loss carryforwards | $ 17 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of the beginning and ending amount of gross unrecognized tax benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ||||
Unrecognized Tax Benefits | $ 0.9 | $ 0.6 | $ 0.4 | $ 1.1 |
Additions for tax positions of the current year | 0.3 | 0.6 | 0 | |
Additions for tax positions of prior years | 0 | 0 | 0 | |
Reductions for tax positions of prior years | 0 | 0 | 0.4 | |
Statute expirations | 0 | 0.4 | 0.3 | |
Settlements | $ 0 | $ 0 | $ 0 |
DEBT (Schedule of Debt) (Detail
DEBT (Schedule of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument | ||
Long-term debt | $ 188,700 | |
Financing leases | 0 | |
Less: unamortized debt issuance costs | (200) | $ (100) |
Total debt and capital leases | 188,500 | 94,600 |
Less current maturities | (97,981) | (2,551) |
Long-term debt | 90,535 | 91,966 |
Other Current Liabilities | ||
Debt Instrument | ||
Financing leases | 100 | |
Tax increment financing debt | ||
Debt Instrument | ||
Long-term debt | 16,500 | 17,600 |
Foreign subsidiary debt | ||
Debt Instrument | ||
Long-term debt | 500 | 1,800 |
Other | ||
Debt Instrument | ||
Long-term debt | 100 | 200 |
Credit Agreement | ||
Debt Instrument | ||
Long-term debt | 96,600 | 0 |
New York Life Agreement | ||
Debt Instrument | ||
Long-term debt | $ 75,000 | $ 75,000 |
DEBT (Debt Payments Expected to
DEBT (Debt Payments Expected to be Paid) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Long-term Debt, by Maturity | |
Debt | $ 188.7 |
2022 | 98 |
2023 | 1.3 |
2024 | 1.4 |
2025 | 76.4 |
2026 | 1.5 |
Thereafter | $ 10.1 |
DEBT (Details)
DEBT (Details) $ in Millions | May 13, 2021USD ($) | Jul. 22, 2010USD ($) | Apr. 30, 2007USD ($) | Dec. 31, 2021USD ($) | Jul. 30, 2021USD ($) | May 12, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 26, 2018USD ($) | May 28, 2015USD ($) | May 27, 2015USD ($) | Dec. 31, 2012USD ($) | Apr. 09, 2007USD ($) |
Line of Credit Facility | ||||||||||||
Cross default trigger, minimum | $ 10 | |||||||||||
Minimum | ||||||||||||
Line of Credit Facility | ||||||||||||
Debt instrument covenant total leverage ratio | 1 | |||||||||||
Debt instrument covenant total interest ratio | 1 | |||||||||||
Maximum | ||||||||||||
Line of Credit Facility | ||||||||||||
Debt instrument covenant total leverage ratio | 3.50 | |||||||||||
Debt instrument covenant total interest ratio | 3 | |||||||||||
Tax increment financing debt | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount of debt | $ 25 | |||||||||||
Debt instrument, interest rate | 3.60% | |||||||||||
Bank Overdrafts [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Total borrowing capacity of facility | $ 20.7 | |||||||||||
Remaining borrowing capacity | 20.7 | |||||||||||
Credit Agreement | ||||||||||||
Debt Instrument | ||||||||||||
Total borrowing capacity of facility | $ 375 | |||||||||||
Remaining borrowing capacity | 149.3 | $ 295.9 | ||||||||||
Line of Credit Facility | ||||||||||||
Current borrowing capacity | 250 | $ 300 | ||||||||||
Increase request amount available | $ 125 | |||||||||||
Outstanding borrowings | 96.6 | 0 | ||||||||||
Letters of credit outstanding | 4.1 | $ 4.1 | ||||||||||
Credit Agreement | Minimum | ||||||||||||
Line of Credit Facility | ||||||||||||
Facility fee (as a percentage) | 0.10% | |||||||||||
Credit Agreement | Maximum | ||||||||||||
Line of Credit Facility | ||||||||||||
Facility fee (as a percentage) | 0.275% | |||||||||||
Credit Agreement | LIBOR | Minimum | ||||||||||||
Debt Instrument | ||||||||||||
Debt instrument basis spread on variable rate | 0.85% | |||||||||||
Credit Agreement | LIBOR | Maximum | ||||||||||||
Debt Instrument | ||||||||||||
Debt instrument basis spread on variable rate | 1.88% | |||||||||||
New York Life Agreement | ||||||||||||
Debt Instrument | ||||||||||||
Total borrowing capacity of facility | $ 200 | $ 150 | ||||||||||
Remaining borrowing capacity | 125 | |||||||||||
New York Life Agreement | Senior Notes | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount of debt | $ 75 | |||||||||||
Prudential Agreement, fixed interest rate | 4.04% | |||||||||||
Prudential | ||||||||||||
Debt Instrument | ||||||||||||
Total borrowing capacity of facility | $ 150 | $ 250 | $ 200 | $ 175 | ||||||||
Remaining borrowing capacity | $ 150 | |||||||||||
Debt instrument, increase, additional borrowings | $ 25 | |||||||||||
Prudential | Notes Payable to Bank | B-1 Notes | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount of debt | $ 110 | |||||||||||
Prudential Agreement, fixed interest rate | 5.79% | |||||||||||
Debt instrument, term | 10 years | |||||||||||
Prudential | Notes Payable to Bank | B-2 Notes | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount of debt | $ 40 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Common shares, authorized | 65,000,000 | 65,000,000 | |
Common shares, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Stock repurchased and retired during period, value | $ 15.3 | $ 15.2 | $ 6.6 |
Stock repurchased and retired during period, shares | 192,509 | 322,147 | 150,778 |
Stock Options | |||
Share-based Compensation | |||
Shares retired that were received by employees as payment for the exercise price of their stock options and taxes owed upon exercise of their stock options and release of their restricted awards (in shares) | 126,332 | 79,663 | 82,601 |
Stock Awards | |||
Share-based Compensation | |||
Shares forfeited during period | 2,511 | 22,438 | 5,345 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance | $ 849,949 | ||
Other comprehensive income/(loss), net of tax | (23,944) | $ (14,445) | $ (7,163) |
Balance | 948,662 | 849,949 | |
Tax (benefit)/expense | 1,500 | (1,100) | (600) |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance | (152,200) | (140,200) | (134,500) |
Other comprehensive income/(loss) before reclassifications | (27,400) | (12,000) | (5,700) |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 0 | 0 |
Other comprehensive income/(loss), net of tax | (27,400) | (12,000) | (5,700) |
Balance | (179,600) | (152,200) | (140,200) |
Pension and Post-Retirement Plan Benefit Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance | (52,600) | (50,000) | (48,500) |
Other comprehensive income/(loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income/(loss) | 3,600 | (2,600) | (1,500) |
Other comprehensive income/(loss), net of tax | 3,600 | (2,600) | (1,500) |
Balance | (49,000) | (52,600) | (50,000) |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Balance | (204,800) | (190,200) | (183,000) |
Other comprehensive income/(loss) before reclassifications | (27,400) | (12,000) | (5,700) |
Amounts reclassified from accumulated other comprehensive income/(loss) | 3,600 | (2,600) | (1,500) |
Other comprehensive income/(loss), net of tax | (23,800) | (14,600) | (7,200) |
Balance | $ (228,600) | $ (204,800) | $ (190,200) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income attributable to Franklin Electric Co., Inc. | $ 153,860 | $ 100,460 | $ 95,483 |
Less: Earnings allocated to participating securities | 900 | 700 | 700 |
Net income available to common shareholders | $ 153,000 | $ 99,800 | $ 94,800 |
Denominator: | |||
Basic weighted average common shares outstanding (in shares) | 46.4 | 46.2 | 46.4 |
Effect of dilutive securities: | |||
Non-participating employee stock options and performance awards (in shares) | 0.6 | 0.5 | 0.4 |
Diluted weighted average common shares outstanding (in shares) | 47 | 46.7 | 46.8 |
Basic | $ 3.29 | $ 2.16 | $ 2.04 |
Diluted | $ 3.25 | $ 2.14 | $ 2.03 |
Anti-dilutive stock options (in shares) | 0.1 | 0.2 | 0.2 |
SHARE-BASED COMPENSATION (Share
SHARE-BASED COMPENSATION (Shares Authorized) (Details) | Dec. 31, 2021shares |
2017 Stock Plan | |
Share-based Compensation | |
Number of shares authorized | 1,400,000 |
Share Based Compensation Arrangement By Share Based Payment Award Award Number Of Shares Non Fungible Share Basis | 1 |
Share Based Compensation Arrangement By Share Based Payment Award Award Number Of Shares Fungible Share Basis | 1.5 |
2012 Stock Plan | |
Share-based Compensation | |
Number of shares authorized | 2,400,000 |
2012 Stock Plan | Stock Options | |
Share-based Compensation | |
Number of shares authorized | 1,680,000 |
2012 Stock Plan | Stock and Stock Unit Awards | |
Share-based Compensation | |
Number of shares authorized | 720,000 |
2009 Stock Plan | |
Share-based Compensation | |
Number of shares authorized | 4,400,000 |
2009 Stock Plan | Stock Options | |
Share-based Compensation | |
Number of shares authorized | 3,200,000 |
2009 Stock Plan | Stock Awards | |
Share-based Compensation | |
Number of shares authorized | 1,200,000 |
SHARE-BASED COMPENSATION (Narra
SHARE-BASED COMPENSATION (Narrative Other Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Allocated share-based compensation expense | $ 11.7 | $ 10.1 | $ 8.9 |
SHARE-BASED COMPENSATION (Valua
SHARE-BASED COMPENSATION (Valuation Assumptions Used) (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 0.66% | 1.39% | 2.53% |
Dividend yield | 0.96% | 1.04% | 1.05% |
Volatility factor | 34.98% | 29.45% | 29.38% |
Expected term | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Weighted average grant-date fair value of options (in dollars per share) | $ 21.70 | $ 15.63 | $ 15.61 |
SHARE-BASED COMPENSATION (Stock
SHARE-BASED COMPENSATION (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Share-based Compensation | ||
Option expiration term | 10 years | |
Options granted to vesting employees vesting per year (as a percent) | 33.00% | 25.00% |
Option vesting period | 3 years | 4 years |
Stock Option Plans Activity and Related Information, Shares | ||
Outstanding beginning of period, shares | 1,331 | |
Granted, shares | 152 | |
Exercised, shares | (440) | |
Forfeited, shares | 0 | |
Outstanding end of period, shares | 1,043 | |
Expected to vest after applying forfeiture rate, shares | 1,042 | |
Vested and exercisable end of period, shares | 707 | |
Stock Option Plans Activity and Related Information, Weighted Average Exercise Price | ||
Outstanding beginning of period, weighted-average exercise price (in dollars per share) | $ 41.90 | |
Granted, weighted-average exercise price (in dollars per share) | 73.14 | |
Exercised, weighted-average exercise price (in dollars per share) | 35.33 | |
Forfeited, weighted-average exercise price (in dollars per share) | 0 | |
Outstanding end of period, weighted-average exercise price (in dollars per share) | 49.21 | |
Expected to vest after applying forfeiture rate, weighted-average exercise price (in dollars per share) | 49.17 | |
Vested and exercisable end of period, weighted-average exercise price (in dollars per share) | $ 43.22 | |
Summary of Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||
Outstanding end of period, weighted-average remaining contractual term | 5 years 10 months 13 days | |
Outstanding end of period, aggregate intrinsic value | $ 47,323 | |
Expected to vest after applying forfeiture rate, weighted-average remaining contractual term | 5 years 10 months 13 days | |
Expected to vest after applying forfeiture rate, aggregate intrinsic value | $ 47,277 | |
Vested and exercisable end of period, weighted-average remaining contractual term | 4 years 9 months 18 days | |
Vested and exercisable end of period, aggregate intrinsic value | $ 36,306 |
SHARE-BASED COMPENSATION (Addit
SHARE-BASED COMPENSATION (Additional Stock Option Information) (Details) - Stock Options - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation | |||
Intrinsic value of options exercised | $ 20.7 | $ 3.3 | $ 4.6 |
Cash received from the exercise of options | 15.5 | 3.7 | 3.2 |
Fair value of shares vested | 3.9 | 2.9 | 2.6 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 5.1 | $ 0.8 | $ 1.1 |
Unrecognized compensation cost related to nonvested share-based compensation | $ 0.9 | ||
Unrecognized compensation cost, recognized over a weighted-average period | 1 year 3 months 10 days |
SHARE-BASED COMPENSATION (Sto_2
SHARE-BASED COMPENSATION (Stock/Stock Unit Award Activity) (Details) - Stock and Stock Unit Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock/Stock Unit Award Activity and Related Information, Shares | |||
Non-vested at beginning of period, shares | 403 | ||
Awarded, shares | 104 | ||
Vested, shares | (138) | ||
Forfeited, shares | (21) | ||
Non-vested at end of period, shares | 348 | 403 | |
Stock/Stock Unit Award Activity and Related Information, Weighted Average Grant Date Fair Value | |||
Non-vested at beginning of period, weighted-average grant date fair value (in dollars per share) | $ 49.34 | ||
Awarded, weighted-average grant date fair value (in dollars per share) | 74.23 | $ 59.28 | $ 51.47 |
Vested, weighted-average grant date fair value (in dollars per share) | 44.39 | ||
Forfeited, weighted-average grant date fair value (in dollars per share) | 58.27 | ||
Non-vested at the end of period, weighted-average grant date fair value (in dollars per share) | $ 58.20 | $ 49.34 | |
Unrecognized compensation cost related to nonvested share-based compensation | $ 7.8 | ||
Unrecognized compensation cost, recognized over a weighted-average period | 11 months 15 days | ||
Minimum | |||
Share-based Compensation | |||
Cliff vesting term | 3 years | ||
Maximum | |||
Share-based Compensation | |||
Cliff vesting term | 4 years |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information | |||
Net sales | $ 1,661,865 | $ 1,247,331 | $ 1,314,578 |
Operating income (loss) | 189,193 | 130,511 | 127,133 |
Total assets | 1,575,165 | 1,272,307 | 1,194,700 |
Depreciation | 30,200 | 27,100 | 27,600 |
Amortization | 14,400 | 9,400 | 9,400 |
Capital Expenditures Incurred In Year, Paid And Not Paid | 30,100 | 22,900 | 22,100 |
Long-lived assets | 842,900 | 644,200 | 618,100 |
United States | |||
Segment Reporting Information | |||
Net sales | 1,075,700 | 760,600 | 776,600 |
Long-lived assets | 604,500 | 405,900 | 394,700 |
Foreign | |||
Segment Reporting Information | |||
Net sales | 586,200 | 486,700 | 538,000 |
Long-lived assets | 238,400 | 238,300 | 223,400 |
Operating Segments | Water Systems | |||
Segment Reporting Information | |||
Net sales | 963,600 | 734,700 | 781,500 |
Operating income (loss) | 139,100 | 114,400 | 103,000 |
Total assets | 894,400 | 645,900 | 658,300 |
Depreciation | 19,800 | 18,700 | 19,000 |
Amortization | 11,900 | 6,900 | 6,900 |
Capital Expenditures Incurred In Year, Paid And Not Paid | 19,400 | 16,900 | 15,100 |
Operating Segments | Distribution | |||
Segment Reporting Information | |||
Net sales | 497,600 | 328,400 | 291,800 |
Operating income (loss) | 35,900 | 11,500 | 3,600 |
Total assets | 363,000 | 249,000 | 180,200 |
Depreciation | 4,400 | 2,600 | 2,800 |
Amortization | 700 | 600 | 500 |
Capital Expenditures Incurred In Year, Paid And Not Paid | 6,500 | 3,500 | 3,900 |
Operating Segments | Fueling Systems | |||
Segment Reporting Information | |||
Net sales | 289,100 | 245,100 | 293,600 |
Operating income (loss) | 79,500 | 63,400 | 75,800 |
Total assets | 273,600 | 268,900 | 283,800 |
Depreciation | 2,200 | 2,100 | 2,100 |
Amortization | 1,800 | 1,800 | 1,900 |
Capital Expenditures Incurred In Year, Paid And Not Paid | 3,000 | 2,000 | 1,900 |
Operating Segments | United States & Canada | Water Systems | |||
Segment Reporting Information | |||
Net sales | 460,800 | 327,600 | 367,600 |
Operating Segments | United States & Canada | Distribution | |||
Segment Reporting Information | |||
Net sales | 497,600 | 328,400 | 291,800 |
Operating Segments | United States & Canada | Fueling Systems | |||
Segment Reporting Information | |||
Net sales | 198,500 | 158,200 | 173,500 |
Operating Segments | Latin America | Water Systems | |||
Segment Reporting Information | |||
Net sales | 139,500 | 118,500 | 124,200 |
Operating Segments | EMEA | Water Systems | |||
Segment Reporting Information | |||
Net sales | 189,800 | 156,800 | 155,600 |
Operating Segments | Asia Pacific | Water Systems | |||
Segment Reporting Information | |||
Net sales | 85,100 | 70,900 | 81,800 |
Operating Segments | Other | Fueling Systems | |||
Segment Reporting Information | |||
Net sales | 90,600 | 86,900 | 120,100 |
Intersegment Sales | Water Systems | |||
Segment Reporting Information | |||
Net sales | 88,400 | 60,900 | 52,300 |
Intersegment Sales | Distribution | |||
Segment Reporting Information | |||
Net sales | 0 | 0 | 0 |
Intersegment Sales | Fueling Systems | |||
Segment Reporting Information | |||
Net sales | 0 | 0 | 0 |
Intersegment Eliminations/Other | |||
Segment Reporting Information | |||
Net sales | (88,400) | (60,900) | (52,300) |
Operating income (loss) | (65,300) | (58,800) | (55,300) |
Intersegment Eliminations/Other | Intersegment Eliminations/Other | |||
Segment Reporting Information | |||
Total assets | 44,200 | 108,500 | 72,400 |
Depreciation | 3,800 | 3,700 | 3,700 |
Amortization | 0 | 100 | 100 |
Capital Expenditures Incurred In Year, Paid And Not Paid | $ 1,200 | $ 500 | $ 1,200 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Commitments | ||||
Purchase obligations | $ 13.2 | |||
Changes in the Carrying Amount of the Warranty Accrual | ||||
Beginning balance | 9.7 | $ 9.1 | ||
Accruals related to product warranties | 9.7 | 9.4 | ||
Additions related to acquisitions | 0.1 | 0.6 | ||
Reductions for payments made | 9 | 9.4 | ||
Ending balance | 10.5 | 9.7 | $ 9.1 | |
Operating Leases | ||||
Operating Lease, Cost | 13.6 | 11.4 | 11.7 | |
Short-term Lease, Cost | $ 0.6 | $ 0.4 | $ 0.5 | |
Weighted-average remaining lease term | 4 years 2 months 12 days | 3 years 10 months 24 days | ||
Weighted-average discount rate | 3.90% | 3.70% | ||
Lessee, Operating Lease, Lease Not Yet Commenced, ROU Asset | $ 1.1 | |||
Total Operating Lease Liability Due | 52.4 | |||
Imputed Interest | 4.1 | |||
Present value of lease liabilities | 48.3 | |||
2022 | 16.4 | |||
2023 | 12.3 | |||
2024 | 8.3 | |||
2025 | 5.3 | |||
2026 | 3.9 | |||
Thereafter | $ 6.2 | |||
Esso S.A.F. | Pending Litigation | Damages from Product Defects | ||||
Loss Contingencies | ||||
Loss Contingency, Damages Sought, Value | € | € 12 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | $ 4 | $ 3.7 | $ 4.4 |
Additions Charged to Costs and Expenses | (0.3) | 0.2 | 0.1 |
Deductions | 0.1 | 1 | 0.9 |
Other | 0.4 | 1.1 | 0.1 |
Balance at End of Period | 4 | 4 | 3.7 |
Allowance for deferred taxes | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | 8.3 | 6.4 | 6.8 |
Additions Charged to Costs and Expenses | 0.6 | 1.9 | 0 |
Deductions | 2.4 | 0 | 0.4 |
Other | 0 | 0 | 0 |
Balance at End of Period | $ 6.5 | $ 8.3 | $ 6.4 |