Graco (GGG) 10-Q 26 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 19, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Entity Registrant Name	Graco Inc.
Entity Central Index Key	42,888
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		55,552,000
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	GGG

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Income Statement [Abstract]
Net Sales	$ 340,590	$ 304,912
Cost of products sold	155,317	143,116
Gross Profit	185,273	161,796
Product development	14,499	14,686
Selling, marketing and distribution	54,911	52,701
General and administrative	30,042	33,460
Operating Earnings	85,821	60,949
Interest expense	4,055	4,493
Other expense (income), net	191	(1,146)
Earnings Before Income Taxes	81,575	57,602
Income taxes	20,843	18,050
Net Earnings	$ 60,732	$ 39,552
Basic net earnings (in dollars per share)	$ 1.09	$ 0.71
Diluted net earnings (in dollars per share)	1.05	0.70
Cash dividends declared (in dollars per share)	$ 0.36	$ 0.33

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Statement of Comprehensive Income [Abstract]
Net Earnings	$ 60,732	$ 39,552
Components of other comprehensive income (loss)
Cumulative translation adjustment	6,318	(2,402)
Pension and postretirement medical liability adjustment	2,000	1,473
Income taxes - pension and postretirement medical liability adjustment	(766)	(569)
Other comprehensive income (loss)	7,552	(1,498)
Comprehensive Income	$ 68,284	$ 38,054

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 30, 2016
Current Assets
Cash and cash equivalents	$ 76,568	$ 52,365
Accounts receivable, less allowances of $13,300 and $12,700	244,395	218,365
Inventories	214,946	201,609
Other current assets	20,739	31,023
Total current assets	556,648	503,362
Property, Plant and Equipment
Cost	499,014	489,642
Accumulated depreciation	(307,066)	(300,046)
Property, plant and equipment, net	191,948	189,596
Goodwill	269,328	259,849
Other Intangible Assets, net	182,846	178,336
Deferred Income Taxes	87,175	86,653
Other Assets	25,905	25,313
Total Assets	1,313,850	1,243,109
Current Liabilities
Notes payable to banks	9,380	8,913
Long-term Debt, Current Maturities	75,000	0
Trade accounts payable	43,908	39,988
Salaries and incentives	26,755	37,109
Dividends payable	20,160	20,088
Other current liabilities	78,504	71,887
Total current liabilities	253,707	177,985
Long-term Debt	302,655	305,685
Retirement Benefits and Deferred Compensation	161,562	159,250
Deferred Income Taxes	20,218	17,672
Other Non-current Liabilities	8,697	8,697
Shareholders’ Equity
Common stock	55,538	55,834
Additional paid-in-capital	481,179	453,394
Retained earnings	164,970	206,820
Accumulated other comprehensive income (loss)	(134,676)	(142,228)
Total shareholders’ equity	567,011	573,820
Total Liabilities and Shareholders’ Equity	$ 1,313,850	$ 1,243,109

Consolidated Balance Sheets (U5

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 30, 2016
Statement of Financial Position [Abstract]
Receivables allowances	$ 13,300	$ 12,700

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Cash Flows From Operating Activities
Net Earnings	$ 60,732	$ 39,552
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	11,094	12,010
Deferred income taxes	(864)	(2,688)
Share-based compensation	5,477	6,093
Change in
Accounts receivable	(23,207)	3,100
Inventories	(12,209)	(8,127)
Trade accounts payable	2,806	119
Salaries and incentives	(12,124)	(17,191)
Retirement benefits and deferred compensation	3,715	669
Other accrued liabilities	16,149	(3,233)
Other	(1,345)	(1,426)
Net cash provided by operating activities	50,224	28,878
Cash Flows From Investing Activities
Property, plant and equipment additions	(8,200)	(13,121)
Acquisition of businesses, net of cash acquired	(9,968)	(48,881)
Change in restricted assets	638	876
Other	(62)	320
Net cash provided by (used in) investing activities	(17,592)	(60,806)
Cash Flows From Financing Activities
Borrowings (payments) on short-term lines of credit, net	261	(1,461)
Borrowings on long-term line of credit	191,120	298,709
Payments on long-term line of credit	(119,150)	(233,734)
Common stock issued	30,127	20,111
Common stock repurchased	(90,160)	(48,050)
Cash dividends paid	(20,118)	(18,332)
Net cash provided by (used in) financing activities	(7,920)	17,243
Effect of exchange rate changes on cash	(509)	(1,120)
Net increase (decrease) in cash and cash equivalents	24,203	(15,805)
Cash and Cash Equivalents
Beginning of year	52,365	52,295
End of period	$ 76,568	$ 36,490

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The consolidated balance sheet of Graco Inc. and Subsidiaries (the “Company”) as of March 31, 2017 and the related statements of earnings and comprehensive income for the three months ended March 31, 2017 and March 25, 2016 , and cash flows for the three months ended March 31, 2017 and March 25, 2016 have been prepared by the Company and have not been audited. In the opinion of management, these consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of the Company as of March 31, 2017 , and the results of operations and cash flows for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year.

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended March 31, March 25, Net earnings available to common shareholders $ 60,732 $ 39,552 Weighted average shares outstanding for basic earnings per share 55,768 55,394 Dilutive effect of stock options computed using the treasury stock method and the average market price 1,944 1,315 Weighted average shares outstanding for diluted earnings per share 57,712 56,709 Basic earnings per share $ 1.09 $ 0.71 Diluted earnings per share $ 1.05 $ 0.70 Stock options to purchase 885,000 and 1,909,000 shares were not included in the March 31, 2017 and March 25, 2016 computations of diluted earnings per share, respectively, because they would have been anti-dilutive.

Share-Based Awards

Share-Based Awards	3 Months Ended
	Mar. 31, 2017
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Share-Based Awards	Share-Based Awards Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Shares Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price Outstanding, December 30, 2016 5,535 $ 55.26 3,672 $ 45.40 Granted 539 91.02 Exercised (387 ) 48.38 Canceled (11 ) 77.19 Outstanding, March 31, 2017 5,676 $ 59.09 3,769 $ 48.24 The Company recognized year-to-date share-based compensation of $5.5 million in 2017 and $6.1 million in 2016 . As of March 31, 2017 , there was $21.5 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 2.1 years . The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and results: Three Months Ended March 31, March 25, Expected life in years 7.0 7.0 Interest rate 2.3 % 1.4 % Volatility 26.7 % 30.3 % Dividend yield 1.6 % 1.9 % Weighted average fair value per share $ 23.93 $ 18.89 Under the Company’s Employee Stock Purchase Plan, the Company issued 167,000 shares in 2017 and 170,000 shares in 2016 . The fair value of the employees’ purchase rights under this Plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results: Three Months Ended March 31, March 25, Expected life in years 1.0 1.0 Interest rate 0.9 % 0.7 % Volatility 22.3 % 24.6 % Dividend yield 1.5 % 1.7 % Weighted average fair value per share $ 21.97 $ 19.14

Retirement Benefits

Retirement Benefits	3 Months Ended
	Mar. 31, 2017
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Retirement Benefits	Retirement Benefits The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands): Three Months Ended March 31, March 25, Pension Benefits Service cost $ 2,061 $ 1,997 Interest cost 3,930 4,017 Expected return on assets (4,352 ) (4,637 ) Amortization and other 2,325 2,300 Net periodic benefit cost $ 3,964 $ 3,677 Postretirement Medical Service cost $ 175 $ 150 Interest cost 275 262 Amortization 50 (138 ) Net periodic benefit cost $ 500 $ 274

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity Changes in components of accumulated other comprehensive income (loss), net of tax were (in thousands): Pension and Postretirement Medical Cumulative Translation Adjustment Total Balance, December 25, 2015 $ (69,922 ) $ (34,575 ) $ (104,497 ) Other comprehensive income before reclassifications — (2,402 ) (2,402 ) Amounts reclassified from accumulated other comprehensive income 904 — 904 Balance, March 25, 2016 $ (69,018 ) $ (36,977 ) $ (105,995 ) Balance, December 30, 2016 $ (76,426 ) $ (65,802 ) $ (142,228 ) Other comprehensive income before reclassifications — 6,318 6,318 Amounts reclassified from accumulated other comprehensive income 1,234 — 1,234 Balance, March 31, 2017 $ (75,192 ) $ (59,484 ) $ (134,676 ) Amounts related to pension and postretirement medical adjustments are reclassified to pension cost, which is allocated to cost of products sold and operating expenses based on salaries and wages, approximately as follows (in thousands): Three Months Ended March 31, March 25, Cost of products sold $ 708 $ 528 Product development 298 204 Selling, marketing and distribution 646 486 General and administrative 348 255 Total before tax $ 2,000 $ 1,473 Income tax (benefit) (766 ) (569 ) Total after tax $ 1,234 $ 904 On February 21, 2017, the Company entered into an accelerated share repurchase arrangement (“ASR”) with a financial institution. In exchange for an up-front payment of $90 million , the financial institution delivered 850,000 shares of Company common stock with a fair value of $78 million . The total number of shares ultimately delivered under the ASR will be determined at the end of the purchase period (up to five months, but not less than two months) based on the volume weighted-average price (“VWAP”) of the Company’s common stock during that period. If there were no change in the market price of the Company’s stock during the purchase period, the Company would receive approximately 135,000 additional shares at the end of the purchase period. The Company accounted for the up-front payment as a reduction of shareholders’ equity in the period made. Shares received under the ASR were retired and reflected as a reduction of outstanding shares on the date delivered for purposes of calculating earnings per share. The forward contract aspect of the ASR met all of the applicable criteria for equity classification, and therefore, was accounted for as a derivative indexed to the Company's equity.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information The Company has three reportable segments, Industrial, Process and Contractor. Sales and operating earnings by segment were as follows (in thousands): Three Months Ended March 31, March 25, Net Sales Industrial $ 156,390 $ 147,088 Process 70,029 64,285 Contractor 114,171 93,539 Total $ 340,590 $ 304,912 Operating Earnings Industrial $ 53,735 $ 45,794 Process 13,463 7,277 Contractor 26,019 16,743 Unallocated corporate (expense) (7,396 ) (8,865 ) Total $ 85,821 $ 60,949 Assets by segment were as follows (in thousands): March 31, December 30, Industrial $ 556,290 $ 546,366 Process 324,378 318,444 Contractor 244,759 208,016 Unallocated corporate 188,423 170,283 Total $ 1,313,850 $ 1,243,109 Geographic information follows (in thousands): Three Months Ended March 31, March 25, Net Sales (based on customer location) United States $ 174,854 $ 153,001 Other countries 165,736 151,911 Total $ 340,590 $ 304,912 March 31, December 30, Long-lived Assets United States $ 153,982 $ 151,911 Other countries 37,966 37,685 Total $ 191,948 $ 189,596

Inventories

Inventories	3 Months Ended
	Mar. 31, 2017
Inventory, Net [Abstract]
Inventories	Inventories Major components of inventories were as follows (in thousands): March 31, December 30, Finished products and components $ 113,716 $ 113,643 Products and components in various stages of completion 56,575 50,557 Raw materials and purchased components 92,005 84,631 Subtotal 262,296 248,831 Reduction to LIFO cost (47,350 ) (47,222 ) Total $ 214,946 $ 201,609

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Components of other intangible assets were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of March 31, 2017 Cost $ 174,884 $ 17,921 $ 895 $ 57,853 $ 251,553 Accumulated amortization (44,700 ) (6,538 ) (388 ) — (51,626 ) Foreign currency translation (11,860 ) (899 ) (54 ) (4,268 ) (17,081 ) Book value $ 118,324 $ 10,484 $ 453 $ 53,585 $ 182,846 Weighted average life (years) 13 10 4 N/A As of December 30, 2016 Cost $ 170,284 $ 17,321 $ 895 $ 57,853 $ 246,353 Accumulated amortization (41,599 ) (6,088 ) (337 ) — (48,024 ) Foreign currency translation (13,630 ) (1,055 ) (59 ) (5,249 ) (19,993 ) Book value $ 115,055 $ 10,178 $ 499 $ 52,604 $ 178,336 Weighted average life (years) 13 10 4 N/A Amortization of intangibles for the quarter was $3.6 million in 2017 and $4.8 million in 2016 . Estimated future amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2017 2018 2019 2020 2021 Thereafter Estimated Amortization Expense $ 14,558 $ 14,303 $ 13,974 $ 13,798 $ 13,635 $ 62,595 Changes in the carrying amount of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, December 30, 2016 $ 150,556 $ 96,561 $ 12,732 $ 259,849 Additions from business acquisitions 7,152 — — 7,152 Foreign currency translation 2,066 261 — 2,327 Balance, March 31, 2017 $ 159,774 $ 96,822 $ 12,732 $ 269,328

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 31, 2017
Accrued Liabilities, Current [Abstract]
Other Current Liabilities	Other Current Liabilities Components of other current liabilities were (in thousands): March 31, December 30, Accrued self-insurance retentions $ 7,146 $ 7,105 Accrued warranty and service liabilities 9,303 8,934 Accrued trade promotions 4,774 6,007 Payable for employee stock purchases 1,499 9,328 Customer advances and deferred revenue 15,894 9,400 Income taxes payable 16,491 8,608 Other 23,397 22,505 Total $ 78,504 $ 71,887 The Company manages certain self-insured loss exposures through a wholly-owned captive insurance subsidiary. Cash balances of $8.6 million as of March 31, 2017 and $9.2 million as of December 30, 2016 were restricted to funding of the captive's loss reserves and are included within other current assets on the Company's Consolidated Balance Sheets. A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors including evaluating specific product warranty issues. Following is a summary of activity in accrued warranty and service liabilities (in thousands): Balance, December 30, 2016 $ 8,934 Charged to expense 1,855 Margin on parts sales reversed 708 Reductions for claims settled (2,194 ) Balance, March 31, 2017 $ 9,303

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value	Fair Value Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level March 31, December 30, Assets Cash surrender value of life insurance 2 $ 14,467 $ 13,785 Forward exchange contracts 2 — 571 Total assets at fair value $ 14,467 $ 14,356 Liabilities Contingent consideration 3 $ 4,081 $ 4,081 Deferred compensation 2 3,414 3,265 Forward exchange contracts 2 546 — Total liabilities at fair value $ 8,041 $ 7,346 Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds. Contingent consideration liability represents the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of an acquired business based on future revenues. Long-term notes payable with fixed interest rates have a carrying amount of $300 million and an estimated fair value of $325 million as of March 31, 2017 and $325 million as of December 30, 2016 . The fair value of variable rate borrowings approximates carrying value. The Company uses significant other observable inputs to estimate fair value (level 2 of the fair value hierarchy) based on the present value of future cash flows and rates that would be available for issuance of debt with similar terms and remaining maturities.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	A new accounting standard that changed certain aspects of accounting for share-based payments became effective for the Company in the first quarter of 2017. Excess tax benefits on exercised stock options that were previously credited to equity now reduce the current income tax provision. The change in accounting for excess tax benefits decreased the current income tax provision and increased net earnings for the first quarter by $3.7 million , reduced the effective income tax rate by 4 percentage points , increased the number of diluted average shares outstanding by 0.4 million and increased diluted earnings per share by $0.05 . Under the new standard, excess tax benefits are no longer reclassified out of cash flows from operating activities to financing activities in the Consolidated Statements of Cash Flows. We elected to apply the cash flow presentation requirements retrospectively to all periods presented, which resulted in an increase in previously reported net cash provided by operating activities and a decrease in net cash provided by financing activities of $3.3 million for the quarter ended March 25, 2016 . Also under the new standard, the Company elected to account for share-based grant forfeitures as they occur. The impact of the change in accounting for forfeitures was no t significant, and was reflected in share-based compensation cost in the first quarter.
New Accounting Pronouncements Not yet Adopted	In May 2014, the Financial Accounting Standards Board (FASB) issued a final standard on revenue from contracts with customers. The new standard sets forth a single comprehensive model for recognizing and reporting revenue. The new standard is effective for the Company in its fiscal year 2018 and permits the use of either a retrospective or a modified retrospective transition method. We have established an implementation team and engaged a third-party consultant to assist with our assessment of the impact of the new revenue guidance on our operations, consolidated financial statements and related disclosures. To date, this assessment has included (1) utilizing questionnaires to assist with the identification of our revenue streams, (2) performing sample contract analyses for each revenue stream identified, and (3) assessing the noted differences in recognition and measurement that may result from adopting this new standard. Based on the preliminary results of the evaluation, which is still in process, nothing has come to our attention that would indicate that adoption of the new standard will have a material impact on our consolidated financial statements. However, given our acquisition strategy, there may be additional revenue streams acquired prior to the adoption date. We currently believe the most significant potential changes relate to variable consideration and whether certain contracts' revenues will be recognized over time or at a point in time, although our technical analysis of these potential impacts is still on-going. We also anticipate changes to the consolidated balance sheet related to accounts receivable, contract assets, and contract liabilities. We are in the process of evaluating and designing the necessary changes to our business processes, systems and controls to support recognition and disclosure under the new standard. Further, we are continuing to assess what incremental disaggregated revenue disclosures will be required in our consolidated financial statements, and we continue to evaluate transition methods. In March 2017, the FASB issued a final standard that changes the presentation of net periodic benefit cost related to defined benefit plans. The Company will adopt the standard when it becomes effective in fiscal 2018 and it will be applied retrospectively to all periods presented. Under the new standard, net periodic benefit costs are required to be disaggregated between service costs presented as operating expenses and other components of pension costs presented as non-operating expenses. The Company currently charges service costs to segment operations and includes other components of pension cost in unallocated corporate operating expenses. Under the new standard, unallocated corporate operating expenses will decrease, operating earnings will increase and other expense will increase by the amount of other (non-service) components of pension cost. There will be no impact on reported segment earnings, net earnings or earnings per share.

Recent Accounting Pronounceme18

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	A new accounting standard that changed certain aspects of accounting for share-based payments became effective for the Company in the first quarter of 2017. Excess tax benefits on exercised stock options that were previously credited to equity now reduce the current income tax provision. The change in accounting for excess tax benefits decreased the current income tax provision and increased net earnings for the first quarter by $3.7 million , reduced the effective income tax rate by 4 percentage points , increased the number of diluted average shares outstanding by 0.4 million and increased diluted earnings per share by $0.05 . Under the new standard, excess tax benefits are no longer reclassified out of cash flows from operating activities to financing activities in the Consolidated Statements of Cash Flows. We elected to apply the cash flow presentation requirements retrospectively to all periods presented, which resulted in an increase in previously reported net cash provided by operating activities and a decrease in net cash provided by financing activities of $3.3 million for the quarter ended March 25, 2016 . Also under the new standard, the Company elected to account for share-based grant forfeitures as they occur. The impact of the change in accounting for forfeitures was no t significant, and was reflected in share-based compensation cost in the first quarter. In May 2014, the Financial Accounting Standards Board (FASB) issued a final standard on revenue from contracts with customers. The new standard sets forth a single comprehensive model for recognizing and reporting revenue. The new standard is effective for the Company in its fiscal year 2018 and permits the use of either a retrospective or a modified retrospective transition method. We have established an implementation team and engaged a third-party consultant to assist with our assessment of the impact of the new revenue guidance on our operations, consolidated financial statements and related disclosures. To date, this assessment has included (1) utilizing questionnaires to assist with the identification of our revenue streams, (2) performing sample contract analyses for each revenue stream identified, and (3) assessing the noted differences in recognition and measurement that may result from adopting this new standard. Based on the preliminary results of the evaluation, which is still in process, nothing has come to our attention that would indicate that adoption of the new standard will have a material impact on our consolidated financial statements. However, given our acquisition strategy, there may be additional revenue streams acquired prior to the adoption date. We currently believe the most significant potential changes relate to variable consideration and whether certain contracts' revenues will be recognized over time or at a point in time, although our technical analysis of these potential impacts is still on-going. We also anticipate changes to the consolidated balance sheet related to accounts receivable, contract assets, and contract liabilities. We are in the process of evaluating and designing the necessary changes to our business processes, systems and controls to support recognition and disclosure under the new standard. Further, we are continuing to assess what incremental disaggregated revenue disclosures will be required in our consolidated financial statements, and we continue to evaluate transition methods. In March 2017, the FASB issued a final standard that changes the presentation of net periodic benefit cost related to defined benefit plans. The Company will adopt the standard when it becomes effective in fiscal 2018 and it will be applied retrospectively to all periods presented. Under the new standard, net periodic benefit costs are required to be disaggregated between service costs presented as operating expenses and other components of pension costs presented as non-operating expenses. The Company currently charges service costs to segment operations and includes other components of pension cost in unallocated corporate operating expenses. Under the new standard, unallocated corporate operating expenses will decrease, operating earnings will increase and other expense will increase by the amount of other (non-service) components of pension cost. There will be no impact on reported segment earnings, net earnings or earnings per share.

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended March 31, March 25, Net earnings available to common shareholders $ 60,732 $ 39,552 Weighted average shares outstanding for basic earnings per share 55,768 55,394 Dilutive effect of stock options computed using the treasury stock method and the average market price 1,944 1,315 Weighted average shares outstanding for diluted earnings per share 57,712 56,709 Basic earnings per share $ 1.09 $ 0.71 Diluted earnings per share $ 1.05 $ 0.70

Share-Based Awards (Tables)

Share-Based Awards (Tables)	3 Months Ended
	Mar. 31, 2017
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Options on common shares granted and outstanding	Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Shares Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price Outstanding, December 30, 2016 5,535 $ 55.26 3,672 $ 45.40 Granted 539 91.02 Exercised (387 ) 48.38 Canceled (11 ) 77.19 Outstanding, March 31, 2017 5,676 $ 59.09 3,769 $ 48.24
Black Scholes option pricing inputs	The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and results: Three Months Ended March 31, March 25, Expected life in years 7.0 7.0 Interest rate 2.3 % 1.4 % Volatility 26.7 % 30.3 % Dividend yield 1.6 % 1.9 % Weighted average fair value per share $ 23.93 $ 18.89
Fair value of employee purchase rights	The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results: Three Months Ended March 31, March 25, Expected life in years 1.0 1.0 Interest rate 0.9 % 0.7 % Volatility 22.3 % 24.6 % Dividend yield 1.5 % 1.7 % Weighted average fair value per share $ 21.97 $ 19.14

Retirement Benefits (Tables)

Retirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2017
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Components of net periodic benefit cost	The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands): Three Months Ended March 31, March 25, Pension Benefits Service cost $ 2,061 $ 1,997 Interest cost 3,930 4,017 Expected return on assets (4,352 ) (4,637 ) Amortization and other 2,325 2,300 Net periodic benefit cost $ 3,964 $ 3,677 Postretirement Medical Service cost $ 175 $ 150 Interest cost 275 262 Amortization 50 (138 ) Net periodic benefit cost $ 500 $ 274

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Changes in components of accumulated other comprehensive income (loss)	Changes in components of accumulated other comprehensive income (loss), net of tax were (in thousands): Pension and Postretirement Medical Cumulative Translation Adjustment Total Balance, December 25, 2015 $ (69,922 ) $ (34,575 ) $ (104,497 ) Other comprehensive income before reclassifications — (2,402 ) (2,402 ) Amounts reclassified from accumulated other comprehensive income 904 — 904 Balance, March 25, 2016 $ (69,018 ) $ (36,977 ) $ (105,995 ) Balance, December 30, 2016 $ (76,426 ) $ (65,802 ) $ (142,228 ) Other comprehensive income before reclassifications — 6,318 6,318 Amounts reclassified from accumulated other comprehensive income 1,234 — 1,234 Balance, March 31, 2017 $ (75,192 ) $ (59,484 ) $ (134,676 )
Postretirement medical adjustments reclassified to pension cost	Amounts related to pension and postretirement medical adjustments are reclassified to pension cost, which is allocated to cost of products sold and operating expenses based on salaries and wages, approximately as follows (in thousands): Three Months Ended March 31, March 25, Cost of products sold $ 708 $ 528 Product development 298 204 Selling, marketing and distribution 646 486 General and administrative 348 255 Total before tax $ 2,000 $ 1,473 Income tax (benefit) (766 ) (569 ) Total after tax $ 1,234 $ 904

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Reporting Information - Operations and Assets	Sales and operating earnings by segment were as follows (in thousands): Three Months Ended March 31, March 25, Net Sales Industrial $ 156,390 $ 147,088 Process 70,029 64,285 Contractor 114,171 93,539 Total $ 340,590 $ 304,912 Operating Earnings Industrial $ 53,735 $ 45,794 Process 13,463 7,277 Contractor 26,019 16,743 Unallocated corporate (expense) (7,396 ) (8,865 ) Total $ 85,821 $ 60,949 Assets by segment were as follows (in thousands): March 31, December 30, Industrial $ 556,290 $ 546,366 Process 324,378 318,444 Contractor 244,759 208,016 Unallocated corporate 188,423 170,283 Total $ 1,313,850 $ 1,243,109
Segment Reporting Information - Geographic	Geographic information follows (in thousands): Three Months Ended March 31, March 25, Net Sales (based on customer location) United States $ 174,854 $ 153,001 Other countries 165,736 151,911 Total $ 340,590 $ 304,912 March 31, December 30, Long-lived Assets United States $ 153,982 $ 151,911 Other countries 37,966 37,685 Total $ 191,948 $ 189,596

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory, Net [Abstract]
Components of inventories	Major components of inventories were as follows (in thousands): March 31, December 30, Finished products and components $ 113,716 $ 113,643 Products and components in various stages of completion 56,575 50,557 Raw materials and purchased components 92,005 84,631 Subtotal 262,296 248,831 Reduction to LIFO cost (47,350 ) (47,222 ) Total $ 214,946 $ 201,609

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Other intangible assets	Components of other intangible assets were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of March 31, 2017 Cost $ 174,884 $ 17,921 $ 895 $ 57,853 $ 251,553 Accumulated amortization (44,700 ) (6,538 ) (388 ) — (51,626 ) Foreign currency translation (11,860 ) (899 ) (54 ) (4,268 ) (17,081 ) Book value $ 118,324 $ 10,484 $ 453 $ 53,585 $ 182,846 Weighted average life (years) 13 10 4 N/A As of December 30, 2016 Cost $ 170,284 $ 17,321 $ 895 $ 57,853 $ 246,353 Accumulated amortization (41,599 ) (6,088 ) (337 ) — (48,024 ) Foreign currency translation (13,630 ) (1,055 ) (59 ) (5,249 ) (19,993 ) Book value $ 115,055 $ 10,178 $ 499 $ 52,604 $ 178,336 Weighted average life (years) 13 10 4 N/A
Future Amortization Expense	Estimated future amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2017 2018 2019 2020 2021 Thereafter Estimated Amortization Expense $ 14,558 $ 14,303 $ 13,974 $ 13,798 $ 13,635 $ 62,595
Schedule of goodwill roll forward	Changes in the carrying amount of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, December 30, 2016 $ 150,556 $ 96,561 $ 12,732 $ 259,849 Additions from business acquisitions 7,152 — — 7,152 Foreign currency translation 2,066 261 — 2,327 Balance, March 31, 2017 $ 159,774 $ 96,822 $ 12,732 $ 269,328

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Accrued Liabilities, Current [Abstract]
Components of other current liabilities	Components of other current liabilities were (in thousands): March 31, December 30, Accrued self-insurance retentions $ 7,146 $ 7,105 Accrued warranty and service liabilities 9,303 8,934 Accrued trade promotions 4,774 6,007 Payable for employee stock purchases 1,499 9,328 Customer advances and deferred revenue 15,894 9,400 Income taxes payable 16,491 8,608 Other 23,397 22,505 Total $ 78,504 $ 71,887
Accrued warranty liabilities activity	Following is a summary of activity in accrued warranty and service liabilities (in thousands): Balance, December 30, 2016 $ 8,934 Charged to expense 1,855 Margin on parts sales reversed 708 Reductions for claims settled (2,194 ) Balance, March 31, 2017 $ 9,303

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value	Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level March 31, December 30, Assets Cash surrender value of life insurance 2 $ 14,467 $ 13,785 Forward exchange contracts 2 — 571 Total assets at fair value $ 14,467 $ 14,356 Liabilities Contingent consideration 3 $ 4,081 $ 4,081 Deferred compensation 2 3,414 3,265 Forward exchange contracts 2 546 — Total liabilities at fair value $ 8,041 $ 7,346

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Earnings Per Share [Abstract]
Net earnings available to common shareholders	$ 60,732	$ 39,552
Weighted average shares outstanding for basic earnings per share (in shares)	55,768,000	55,394,000
Dilutive effect of stock options computed using the treasury stock method and the average market price (in shares)	1,944,000	1,315,000
Weighted average shares outstanding for diluted earnings per share (in shares)	57,712,000	56,709,000
Basic net earnings (in dollars per share)	$ 1.09	$ 0.71
Diluted net earnings (in dollars per share)	$ 1.05	$ 0.70
Antidilutive securities excluded from the computation of diluted earnings per share	885,000	1,909,000

Share-Based Awards - Options on

Share-Based Awards - Options on common shares granted and outstanding (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning (in shares)	5,535
Options granted (in shares)	539
Options exercised (in shares)	(387)
Options canceled (in shares)	(11)
Ending (in shares)	5,676
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Beginning (in dollars per share)	$ 55.26
Granted (in dollars per share)	91.02
Exercised (in dollars per share)	48.38
Canceled (in dollars per share)	77.19
Ending (in dollars per share)	$ 59.09
Options exercisable (in shares)	3,769	3,672
Weighted average exercise price of exercisable options (dollars per share)	$ 48.24	$ 45.40

Share-Based Awards - Narrative

Share-Based Awards - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation expense	$ 5.5	$ 6.1
Unrecognized compensation cost	$ 21.5
Weighted average recognition period	2 years 1 month
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock purchase plan discount from market value	15.00%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase plan shares issued	167,000	170,000

Share-Based Awards - Black Scho

Share-Based Awards - Black Scholes option pricing inputs (Details) - Stock Option - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Fair Value Assumptions and Methodology [Abstract]
Expected life in years	7 years	7 years
Interest rate	2.30%	1.40%
Volatility	26.70%	30.30%
Dividend yield	1.60%	1.90%
Weighted average fair value per share (in dollars per share)	$ 23.93	$ 18.89

Share-Based Awards - Fair value

Share-Based Awards - Fair value of employee purchase rights (Details) - Employee Stock Purchase Plan - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life in years	1 year	1 year
Interest rate	0.90%	0.70%
Volatility	22.30%	24.60%
Dividend yield	1.50%	1.70%
Weighted average fair value per share (in dollars per share)	$ 21.97	$ 19.14

Retirement Benefits (Details)

Retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,061	$ 1,997
Interest cost	3,930	4,017
Expected return on assets	(4,352)	(4,637)
Amortization and other	2,325	2,300
Net periodic benefit cost	3,964	3,677
Postretirement Medical
Defined Benefit Plan Disclosure [Line Items]
Service cost	175	150
Interest cost	275	262
Amortization	50	(138)
Net periodic benefit cost	$ 500	$ 274

Shareholders' Equity - Changes

Shareholders' Equity - Changes in components of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (142,228)	$ (104,497)
Other comprehensive income before reclassifications	6,318	(2,402)
Amounts reclassified from accumulated other comprehensive income	1,234	904
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(134,676)	(105,995)
Pension and Postretirement Medical
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax	(76,426)	(69,922)
Other comprehensive income before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income	1,234	904
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(75,192)	(69,018)
Cumulative Translation Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax	(65,802)	(34,575)
Other comprehensive income before reclassifications	6,318	(2,402)
Amounts reclassified from accumulated other comprehensive income	0	0
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (59,484)	$ (36,977)

Shareholders' Equity - Postreti

Shareholders' Equity - Postretirement medical adjustments reclassified to pension cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Reclassification from AOCI
Reclassification after tax	$ 1,234	$ 904
Pension and Postretirement Medical
Reclassification from AOCI
Reclassification before tax	2,000	1,473
Income tax (benefit)	(766)	(569)
Reclassification after tax	1,234	904
Cost of products sold | Pension and Postretirement Medical
Reclassification from AOCI
Reclassification before tax	708	528
Product development | Pension and Postretirement Medical
Reclassification from AOCI
Reclassification before tax	298	204
Selling, marketing and distribution | Pension and Postretirement Medical
Reclassification from AOCI
Reclassification before tax	646	486
General and administrative | Pension and Postretirement Medical
Reclassification from AOCI
Reclassification before tax	$ 348	$ 255

Shareholders' Equity Accelerate

Shareholders' Equity Accelerated Share Repurchase (Details) $ in Millions	Feb. 21, 2017USD ($)shares
Stockholders' Equity Note [Abstract]
ASR Initial Payment | $	$ 90
ASR Initial Shares | shares	850,000
ASR Fair Value Of Initial Shares | $	$ 78
ASR Hypothetical Settlement Shares | shares	135,000

Segment Reporting Information -

Segment Reporting Information - Operations and Assets (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segment	Mar. 25, 2016USD ($)	Dec. 30, 2016USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
Net Sales	$ 340,590	$ 304,912
Operating Earnings	85,821	60,949
Assets	1,313,850		$ 1,243,109
Operating Segments | Industrial
Segment Reporting Information [Line Items]
Net Sales	156,390	147,088
Operating Earnings	53,735	45,794
Assets	556,290		546,366
Operating Segments | Process
Segment Reporting Information [Line Items]
Net Sales	70,029	64,285
Operating Earnings	13,463	7,277
Assets	324,378		318,444
Operating Segments | Contractor
Segment Reporting Information [Line Items]
Net Sales	114,171	93,539
Operating Earnings	26,019	16,743
Assets	244,759		208,016
Unallocated corporate
Segment Reporting Information [Line Items]
Operating Earnings	(7,396)	$ (8,865)
Assets	$ 188,423		$ 170,283

Segment Reporting Information38

Segment Reporting Information - Geographic (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016	Dec. 30, 2016
Geographic Information [Line Items]
Net Sales	$ 340,590	$ 304,912
Long-lived Assets	191,948		$ 189,596
United States
Geographic Information [Line Items]
Net Sales	174,854	153,001
Long-lived Assets	153,982		151,911
Other countries
Geographic Information [Line Items]
Net Sales	165,736	$ 151,911
Long-lived Assets	$ 37,966		$ 37,685

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 30, 2016
Inventory, Net [Abstract]
Finished products and components	$ 113,716	$ 113,643
Products and components in various stages of completion	56,575	50,557
Raw materials and purchased components	92,005	84,631
Inventory gross	262,296	248,831
Reduction to LIFO cost	(47,350)	(47,222)
Total	$ 214,946	$ 201,609

Intangible Assets - Other Intan

Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 30, 2016
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Cost	$ 251,553	$ 246,353
Total Accumulated Amortization	(51,626)	(48,024)
Total Foreign Currency Translation	(17,081)	(19,993)
Total Book Value	182,846	178,336
Trade Names
Indefinite Life
Cost	57,853	57,853
Foreign currency translation	(4,268)	(5,249)
Book value	53,585	52,604
Customer Relationships
Finite Life
Cost	174,884	170,284
Accumulated amortization	(44,700)	(41,599)
Foreign currency translation	(11,860)	(13,630)
Book value	$ 118,324	$ 115,055
Weighted average life (years)	13 years	13 years
Patents and Proprietary Technology
Finite Life
Cost	$ 17,921	$ 17,321
Accumulated amortization	(6,538)	(6,088)
Foreign currency translation	(899)	(1,055)
Book value	$ 10,484	$ 10,178
Weighted average life (years)	10 years	10 years
Trademarks, Trade Names and Other
Finite Life
Cost	$ 895	$ 895
Accumulated amortization	(388)	(337)
Foreign currency translation	(54)	(59)
Book value	$ 453	$ 499
Weighted average life (years)	4 years	4 years

Intangible Assets Future Amorti

Intangible Assets Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2017USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Estimated amortization expense 2017	$ 14,558
Estimated amortization expense 2018	14,303
Estimated amortization expense 2019	13,974
Estimated amortization expense 2020	13,798
Estimated amortization expense 2021	13,635
Estimated amortization expense thereafter	$ 62,595

Intangible Assets - Goodwill Ro

Intangible Assets - Goodwill Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 259,849
Additions from business acquisitions	7,152
Foreign currency translation	2,327
Ending balance	269,328
Industrial
Goodwill [Roll Forward]
Beginning balance	150,556
Additions from business acquisitions	7,152
Foreign currency translation	2,066
Ending balance	159,774
Process
Goodwill [Roll Forward]
Beginning balance	96,561
Additions from business acquisitions	0
Foreign currency translation	261
Ending balance	96,822
Contractor
Goodwill [Roll Forward]
Beginning balance	12,732
Additions from business acquisitions	0
Foreign currency translation	0
Ending balance	$ 12,732

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 3.6	$ 4.8

Other Current Liabilities - Com

Other Current Liabilities - Components of other current liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 30, 2016
Other Current Liabilities Details [Abstract]
Accrued self-insurance retentions	$ 7,146	$ 7,105
Accrued warranty and service liabilities	9,303	8,934
Accrued trade promotions	4,774	6,007
Payable for employee stock purchases	1,499	9,328
Customer advances and deferred revenue	15,894	9,400
Income taxes payable	16,491	8,608
Other	23,397	22,505
Total	$ 78,504	$ 71,887

Other Current Liabilities - Acc

Other Current Liabilities - Accrued warranty liabilities activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Activity In Accrued Warranty And Service Liabilities Abstract
Balance, beginning of year	$ 8,934
Charged to expense	1,855
Margin on parts sales reversed	708
Reductions for claims settled	(2,194)
Balance, end of period	$ 9,303

Other Current Liabilities - Nar

Other Current Liabilities - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 30, 2016
Other Current Assets
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash and cash equivalents	$ 8.6	$ 9.2

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 30, 2016
Assets
Total assets at fair value	$ 14,467	$ 14,356
Liabilities
Total liabilities at fair value	8,041	7,346
Long term debt carrying amount	300,000	300,000
Long term debt fair value	325,000	325,000
Level 2
Assets
Cash surrender value of life insurance	14,467	13,785
Forward exchange contracts	0	571
Liabilities
Deferred compensation	3,414	3,265
Forward exchange contracts	546	0
Level 3
Liabilities
Contingent consideration	$ 4,081	$ 4,081

Recent Accounting Pronounceme48

Recent Accounting Pronouncements New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, shares in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016	Dec. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Earnings	$ 60,732,000	$ 39,552,000
Diluted net earnings (in dollars per share)	$ 1.05	$ 0.70
Net Cash Provided by (Used in) Operating Activities	$ 50,224,000	$ 28,878,000
Net Cash Provided by (Used in) Financing Activities	(7,920,000)	17,243,000
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Earnings	$ 3,700,000
Diluted net earnings (in dollars per share)	$ 0.05
Net Cash Provided by (Used in) Operating Activities		3,300,000
Net Cash Provided by (Used in) Financing Activities		$ (3,300,000)
Effect of Change on Effective Tax Rate	(4.00%)
Effect of Change on Diluted Average Shares Outstanding	0.4
Cumulative Effect of Change on Equity			$ 0