Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 29, 2023 | Jan. 26, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 29, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-09249 | ||
Entity Registrant Name | Graco Inc. | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0285640 | ||
Entity Address, Address Line One | 88 - 11th Avenue N.E. | ||
Entity Address, City or Town | Minneapolis, | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55413 | ||
City Area Code | (612) | ||
Local Phone Number | 623-6000 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | GGG | ||
Security Exchange Name | NYSE | ||
Entity Well Known Seasoned Issuer | Yes | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14,591,862,608 | ||
Entity Common Stock, Shares Outstanding | 168,178,661 | ||
Documents Incorporated by Reference [Text Block] | Portions of the Company’s definitive Proxy Statement for its Annual Meeting of Shareholders to be held on April 26, 2024, are incorporated by reference into Part III, as specifically set forth in said Part III. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000042888 | ||
Current Fiscal Year End Date | --12-29 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 29, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Minneapolis, Minnesota |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net Sales | $ 2,195,606 | $ 2,143,521 | $ 1,987,608 |
Cost of products sold | 1,034,585 | 1,086,082 | 953,659 |
Gross Profit | 1,161,021 | 1,057,439 | 1,033,949 |
Product development | 82,822 | 80,008 | 79,651 |
Selling, marketing and distribution | 260,712 | 250,948 | 271,526 |
General and administrative | 171,444 | 153,783 | 151,449 |
Contingent consideration | (8,600) | 0 | 0 |
Impairment | 7,800 | 0 | 0 |
Operating Earnings | 646,843 | 572,700 | 531,323 |
Interest expense | 5,191 | 9,897 | 10,215 |
Other (income) expense, net | 32,850 | (2,921) | 12,643 |
Earnings Before Income Taxes | 608,802 | 565,724 | 508,465 |
Income taxes | 102,291 | 105,079 | 68,599 |
Net Earnings | $ 506,511 | $ 460,645 | $ 439,866 |
Basic Net Earnings per Common Share (in dollars per share) | $ 3.01 | $ 2.73 | $ 2.59 |
Diluted Net Earnings per Common Share (in dollars per share) | $ 2.94 | $ 2.66 | $ 2.52 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings | $ 506,511 | $ 460,645 | $ 439,866 |
Components of other comprehensive income (loss) | |||
Cumulative translation adjustment | 25,661 | (9,582) | (10,026) |
Pension and postretirement medical liability adjustment | 11,426 | 25,630 | 68,669 |
Income taxes - pension and postretirement medical liability | (2,704) | (5,257) | (14,647) |
Other comprehensive income | 34,383 | 10,791 | 43,996 |
Comprehensive Income | $ 540,894 | $ 471,436 | $ 483,862 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 537,951 | $ 339,196 |
Accounts receivable, less allowances of $5,300 and $7,000 | 354,439 | 346,010 |
Inventories | 438,349 | 476,790 |
Other current assets | 35,070 | 43,624 |
Total current assets | 1,365,809 | 1,205,620 |
Property, Plant and Equipment, net | 741,713 | 607,609 |
Goodwill | 370,228 | 368,171 |
Other Intangible Assets, net | 126,258 | 137,507 |
Operating Lease Assets | 18,768 | 29,785 |
Deferred Income Taxes | 61,381 | 57,090 |
Other Assets | 37,850 | 33,118 |
Total Assets | 2,722,007 | 2,438,900 |
Current Liabilities | ||
Notes payable to banks | 30,036 | 20,974 |
Trade accounts payable | 72,214 | 84,218 |
Salaries and incentives | 64,802 | 63,969 |
Dividends payable | 42,789 | 39,963 |
Other current liabilities | 185,359 | 190,793 |
Total current liabilities | 395,200 | 399,917 |
Long-term Debt | 0 | 75,000 |
Retirement Benefits and Deferred Compensation | 80,347 | 61,672 |
Operating Lease Liabilities | 11,785 | 21,057 |
Deferred Income Taxes | 8,215 | 9,443 |
Other Non-current Liabilities | 2,235 | 12,159 |
Commitments and Contingencies (Note K) | ||
Shareholders’ Equity | ||
Common stock, $1 par value; 291,000,000 shares authorized; 167,946,063 and 167,702,130 shares outstanding in 2023 and 2022 | 167,946 | 167,702 |
Additional paid-in-capital | 863,336 | 784,477 |
Retained earnings | 1,227,938 | 976,851 |
Accumulated other comprehensive income (loss) | (34,995) | (69,378) |
Total shareholders’ equity | 2,224,225 | 1,859,652 |
Total Liabilities and Shareholders’ Equity | $ 2,722,007 | $ 2,438,900 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances | $ 5,300 | $ 7,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock authorized (in shares) | 291,000,000 | 291,000,000 |
Common stock outstanding (in shares) | 167,946,063 | 167,702,130 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities | |||
Net Earnings | $ 506,511 | $ 460,645 | $ 439,866 |
Adjustments to reconcile net earnings to net cash provided by operating activities | |||
Depreciation and amortization | 74,321 | 65,997 | 59,325 |
Deferred income taxes | (8,502) | (9,997) | (46,572) |
Share-based compensation | 30,229 | 24,695 | 24,931 |
Pension settlement loss | 42,129 | 0 | 12,018 |
Contingent consideration | (8,600) | 0 | 0 |
Impairment | 7,800 | 0 | 0 |
Change in | |||
Accounts receivable | (3,245) | (29,944) | (13,801) |
Inventories | 42,716 | (95,691) | (97,780) |
Trade accounts payable | (12,348) | 4,195 | 12,397 |
Salaries and incentives | (2,158) | (18,442) | 29,089 |
Retirement benefits and deferred compensation | (13,661) | (18,674) | (10,799) |
Other accrued liabilities | (5,269) | (4,191) | 51,342 |
Other | 1,094 | (1,199) | (3,120) |
Net cash provided by operating activities | 651,017 | 377,394 | 456,896 |
Cash Flows From Investing Activities | |||
Property, plant and equipment additions | (184,775) | (201,161) | (133,566) |
Acquisition of businesses, net of cash acquired | 0 | (25,296) | (19,386) |
Other | (499) | (362) | (347) |
Net cash used in investing activities | (185,274) | (226,819) | (153,299) |
Cash Flows From Financing Activities | |||
Borrowings on short-term lines of credit, net | 9,725 | (18,252) | 20,497 |
Payments on long-term debt | (75,000) | (75,000) | (70) |
Payments of debt issuance costs | (1,025) | 0 | (1,422) |
Common stock issued | 60,182 | 35,619 | 50,963 |
Common stock repurchased | (102,344) | (233,426) | 0 |
Taxes paid related to net share settlement of equity awards | (1,225) | (1,219) | 0 |
Cash dividends paid | (158,323) | (142,125) | (127,110) |
Net cash used in financing activities | (268,010) | (434,403) | (57,142) |
Effect of exchange rate changes on cash | 1,022 | (1,278) | (1,062) |
Net increase (decrease) in cash and cash equivalents | 198,755 | (285,106) | 245,393 |
Cash and Cash Equivalents | |||
Beginning of year | 339,196 | 624,302 | 378,909 |
End of year | $ 537,951 | $ 339,196 | $ 624,302 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 25, 2020 | $ 1,283,904 | $ 168,568 | $ 671,206 | $ 568,295 | $ (124,165) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 53,300 | 1,740 | 51,560 | ||
Stock compensation cost | 21,859 | 21,859 | |||
Restricted stock canceled (issued) | (2,337) | (2,337) | |||
Net earnings | 439,866 | 439,866 | |||
Dividends declared | (131,245) | (131,245) | |||
Other comprehensive income (loss) | 43,996 | 43,996 | |||
Ending balance at Dec. 31, 2021 | 1,709,343 | 170,308 | 742,288 | 876,916 | (80,169) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 34,400 | 946 | 33,454 | ||
Shares repurchased | (233,426) | (3,552) | (15,481) | (214,393) | |
Stock compensation cost | 24,216 | 24,216 | |||
Net earnings | 460,645 | 460,645 | |||
Dividends declared | (146,317) | (146,317) | |||
Other comprehensive income (loss) | 10,791 | 10,791 | |||
Ending balance at Dec. 30, 2022 | 1,859,652 | 167,702 | 784,477 | 976,851 | (69,378) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued | 58,957 | 1,666 | 57,291 | ||
Shares repurchased | (102,344) | (1,422) | (6,650) | (94,272) | |
Stock compensation cost | 28,218 | 28,218 | |||
Net earnings | 506,511 | 506,511 | |||
Dividends declared | (161,152) | (161,152) | |||
Other comprehensive income (loss) | 34,383 | 34,383 | |||
Ending balance at Dec. 29, 2023 | $ 2,224,225 | $ 167,946 | $ 863,336 | $ 1,227,938 | $ (34,995) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 0.9600 | $ 0.8650 | $ 0.7725 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Significant Accounting Policies Fiscal Year . The fiscal year of Graco Inc. and Subsidiaries (the Company) is 52 or 53 weeks, ending on the last Friday in December. The year ended December 31, 2021 was a 53-week year whereas the years ended December 29, 2023 and December 30, 2022 were 52-week years. Basis of Statement Presentation . The consolidated financial statements include the accounts of the parent company and its subsidiaries after elimination of intercompany balances and transactions. As of December 29, 2023, all subsidiaries are 100 percent controlled by the Company. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation. Foreign Currency Translation . The functional currency of certain subsidiaries is the local currency. Accordingly, adjustments resulting from the translation of those subsidiaries’ financial statements into U.S. dollars are charged or credited to accumulated other comprehensive income (loss). The U.S. dollar is the functional currency for all other foreign subsidiaries. Accordingly, gains and losses from the translation of foreign currency balances and transactions of those subsidiaries are included in other expense, net. Accounting Estimates . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value Measurements. The three levels of inputs in the fair value measurement hierarchy are as follows: Level 1 – based on quoted prices in active markets for identical assets Level 2 – based on significant observable inputs Level 3 – based on significant unobservable inputs Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands): Level 2023 2022 Assets Cash surrender value of life insurance 2 $ 22,255 $ 19,192 Liabilities Contingent consideration 3 $ 1,375 $ 14,914 Deferred compensation 2 6,445 5,842 Forward exchange contracts 2 422 520 Total liabilities at fair value $ 8,242 $ 21,276 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. The Company’s policy and accounting for forward exchange contracts are described below, in Derivative Instruments and Hedging Activities. Contingent consideration liability represents the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of certain acquired businesses based on future revenues. Disclosures related to other fair value measurements are included below in Impairment of Long-Lived Assets, in Note F (Debt) and in Note J (Retirement Benefits). Cash Equivalents . All highly liquid investments with a maturity of three months or less at the date of purchase are considered to be cash equivalents. Accounts Receivable. Accounts receivable includes trade receivables of $343 million in 2023 and $334 million in 2022. Other receivables totaled $11 million in 2023 and $12 million in 2022. Allowance for Credit Losses. Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Following is a summary of activity in the allowance for credit losses (in thousands): 2023 2022 2021 Balance, beginning $ 6,130 $ 3,254 $ 3,745 Additions (reversals) charged to costs and expenses 1,125 3,567 (27) Deductions from reserves (1) (2,711) (633) (676) Other additions (deductions) (2) 111 (58) 212 Balance, ending $ 4,655 $ 6,130 $ 3,254 (1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (2) Includes effects of foreign currency translation. Inventory Valuation . Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) cost method is used for valuing most U.S. inventories. Inventories of foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method. Other Current Assets. Amounts included in other current assets were (in thousands): 2023 2022 Prepaid income taxes $ 14,546 $ 18,702 Prepaid expenses and other 20,524 24,922 Total $ 35,070 $ 43,624 Impairment of Long-Lived Assets. The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment annually in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In the third quarter of 2023, the Company recognized a goodwill impairment related to the reorganization of a business acquired in 2020 that is not material to the consolidated financial statements. We completed our annual impairment test of all long-lived assets in the fourth quarter of 2023. No additional impairment charges were recorded as a result of that review. There were no impairment charges in 2022 or 2021. Property, Plant and Equipment . For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years Goodwill and Other Intangible Assets. Goodwill has been assigned to reporting units. Changes in the carrying amounts of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, January 1, 2022 $ 137,155 $ 141,304 $ 77,796 $ 356,255 Additions, adjustments from business acquisitions — 16,994 — 16,994 Foreign currency translation (2,384) (1,932) (762) (5,078) Balance, December 30, 2022 134,771 156,366 77,034 368,171 Additions, adjustments from business acquisitions — — — — Impairment — (7,800) — (7,800) Foreign currency translation 8,361 988 508 9,857 Balance, December 29, 2023 $ 143,132 $ 149,554 $ 77,542 $ 370,228 Components of other intangible assets, net were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of December 29, 2023 Cost $ 191,417 $ 14,174 $ 1,300 $ 62,633 $ 269,524 Accumulated amortization (128,248) (8,547) (561) — (137,356) Foreign currency translation (7,591) (344) — 2,025 (5,910) Book value $ 55,578 $ 5,283 $ 739 $ 64,658 $ 126,258 Weighted average life in years 13 9 6 N/A As of December 30, 2022 Cost $ 202,103 $ 26,374 $ 1,300 $ 62,633 $ 292,410 Accumulated amortization (123,603) (18,027) (330) — (141,960) Foreign currency translation (10,060) (894) — (1,989) (12,943) Book value $ 68,440 $ 7,453 $ 970 $ 60,644 $ 137,507 Weighted average life in years 13 10 6 N/A Amortization of intangibles was $17.6 million in 2023, $18.9 million in 2022 and $17.9 million in 2021. Estimated future annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2024 2025 2026 2027 2028 Thereafter Estimated Amortization Expense $ 16,929 $ 16,459 $ 9,247 $ 6,423 $ 4,258 $ 8,284 In 2022 and 2021 the Company completed acquisitions that were not material to the consolidated financial statements. Other Assets. Components of other assets were (in thousands): 2023 2022 Cash surrender value of life insurance $ 22,255 $ 19,192 Capitalized software 2,602 2,189 Equity method investment 9,661 8,767 Deposits and other 3,332 2,970 Total $ 37,850 $ 33,118 The Company has entered into contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans. These insurance contracts are used to fund the non-qualified pension and deferred compensation arrangements. The insurance contracts are held in a trust and are available to general creditors in the event of the Company’s insolvency. Changes in cash surrender value are recorded in other expense, net. The cash surrender value increased $3.1 million in 2023, decreased $4.0 million in 2022 and increased $3.3 million in 2021. Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. Other Current Liabilities. Components of other current liabilities were (in thousands): 2023 2022 Accrued self-insurance retentions $ 8,654 $ 9,338 Accrued warranty and service liabilities 15,408 14,674 Accrued trade promotions 14,312 13,799 Payable for employee stock purchases 16,639 16,497 Customer advances and deferred revenue 51,578 50,747 Income taxes payable 9,837 15,987 Tax payable, other 12,289 9,614 Operating lease liabilities, current 8,242 9,555 Right of return refund liability 17,826 18,449 Other 30,574 32,133 Total $ 185,359 $ 190,793 Self-Insurance. The Company is self-insured for certain losses and costs relating to product liability, workers’ compensation, and employee medical benefit claims. The Company has stop-loss coverage in order to limit its exposure to significant claims. Accrued self-insurance retentions are based on claims filed, estimates of claims incurred but not reported, and other actuarial assumptions. Self-insured reserves totaled $8.7 million as of December 29, 2023 and $9.3 million as of December 30, 2022. Product Warranties. 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): 2023 2022 Balance, beginning of year $ 14,674 $ 14,463 Assumed in business acquisition — 38 Charged to expense 11,128 8,946 Margin on parts sales reversed 3,875 3,292 Reductions for claims settled (14,269) (12,065) Balance, end of year $ 15,408 $ 14,674 Revenue Recognition . Revenue is recognized at a single point in time upon the satisfaction of performance obligations, which occurs when control of the good or service transfers to the customer. This is generally on the date of shipment for product sales; however certain sales have terms requiring recognition when the goods are received by the customer. In cases where there are specific customer acceptance provisions, revenue is recognized at the later of customer acceptance or shipment (subject to shipping terms). Payment terms are established based on the type of product, distributor capabilities and competitive market conditions, and do not exceed one year. Standalone selling prices are determined based on the prices charged to customers for all material performance obligations. Variable consideration is accounted for as a price adjustment (sales adjustment). Following are examples of variable consideration that affect the Company’s reported revenue. Early payment discounts are provided to certain customers and within certain regions. Rights of return are typically contractually limited and amounts are estimable. The Company records a refund liability and establishes a recovery asset for the value of product expected to be returned at the time revenue is recognized. This includes promotions when, from time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. Provisions for sales returns are recorded as a reduction of net sales, and provisions for warranty claims are recorded in selling, marketing and distribution expenses. Historically, sales returns have been approximately 3 percent of sales. Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include rebates based on annual purchases and sales growth, coupons and reimbursement for competitive products. Payment of incentives may take the form of cash, trade credit, promotional merchandise or free product. Rebates are accrued based on the program rates and progress toward the probability weighted estimate of annual sales amount and sales growth. Additional promotions include cooperative advertising arrangements. Under cooperative advertising arrangements, the Company reimburses the distributor for a portion of its advertising costs related to the Company’s products. Estimated costs are accrued at the time of sale and classified as selling, marketing and distribution expense. The estimated costs related to coupon programs are accrued at the time of sale and classified as selling, marketing and distribution expense or cost of products sold, depending on the type of incentive offered. The considerations payable to customers are deemed as broad based and are not recorded against net sales. Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold. Amounts billed to customers for shipping and handling are included in net sales. Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. The balance in the deferred revenue and customer advances was $51.6 million as of December 29, 2023 and $50.7 million as of December 30, 2022. Net sales for 2023 included $49.6 million that was in deferred revenue and customer advances as of December 30, 2022. Net sales for 2022 included $60.4 million that was in deferred revenue and customer advances as of December 31, 2021. Shipping and handling activities that occur after control of the related good transfers are accounted for as fulfillment activities instead of assessing such activities as performance obligations. Sales taxes related to revenue producing transactions collected from the customer for a governmental authority are excluded from the transaction price. Revenue standard requirements are applied to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Promised goods or services are not assessed as performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes goods or services that are immaterial in the context of the contract is recognized before those immaterial goods or services are transferred to the customer, then the related costs to transfer those goods or services are accrued. Incremental costs of obtaining a contract are generally expensed when incurred because the amortization period would be less than one year. Such costs primarily relate to sales commissions and are recorded in selling, marketing and distribution expense. Earnings Per Common Share . Basic net earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the year. Diluted net earnings per share is computed after giving effect to the exercise of all dilutive outstanding option grants. Comprehensive Income. Comprehensive income is a measure of all changes in shareholders’ equity except those resulting from investments by and distributions to owners, and includes such items as net earnings, certain foreign currency translation items, changes in the value of qualifying hedges and pension liability adjustments. Derivative Instruments and Hedging Activities . The Company accounts for all derivatives, including those embedded in other contracts, as either assets or liabilities and measures those financial instruments at fair value. The accounting for changes in the fair value of derivatives depends on their intended use and designation. As part of its risk management program, the Company may periodically use forward exchange contracts to manage known market exposures. Terms of derivative instruments are structured to match the terms of the risk being managed and are generally held to maturity. The Company does not hold or issue derivative financial instruments for trading purposes. All other contracts that contain provisions meeting the definition of a derivative also meet the requirements of, and have been designated as, normal purchases or sales. The Company’s policy is to not enter into contracts with terms that cannot be designated as normal purchases or sales. The Company periodically evaluates its monetary asset and liability positions denominated in foreign currencies. The Company enters into forward contracts or options, or borrows in various currencies, in order to hedge its net monetary positions. These instruments are recorded at fair value and the gains and losses are included in other expense, net. The notional amounts of contracts outstanding as of December 29, 2023, totaled $62 million. The Company believes it uses strong financial counterparties in these transactions and that the resulting credit risk under these hedging strategies is not significant. The Company uses significant other observable inputs (level 2 in the fair value hierarchy) to value the derivative instruments used to hedge net monetary positions, including reference to market prices and financial models that incorporate relevant market assumptions. Net derivative assets are reported on the balance sheet in accounts receivable and net derivative liabilities are reported as other current liabilities. The fair market value of such instruments follows (in thousands): 2023 2022 Foreign Currency Contracts Assets $ 26 $ 157 Liabilities (448) (677) Net Assets (Liabilities) $ (422) $ (520) |
Segment Information
Segment Information | 12 Months Ended |
Dec. 29, 2023 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information | Segment Information The Company has five operating segments which are aggregated into three reportable segments: Contractor, Industrial and Process. Beginning with the first quarter of 2022, our high performance coatings and foam product offerings previously included within the Applied Fluid Technologies division of the Industrial segment were realigned and are now managed under the Contractor segment. This change aligns the types of products offered and markets served within the segments. Prior year segment information has been restated to conform to the current organizational structure. The Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture to walls and ceilings, insulation to building walls and other items, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors. The Industrial segment includes our Industrial and Powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, coatings, sealants, adhesives and other fluids. Markets served include automotive and vehicle assembly and components production, including Electro or e-mobility, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries. The Process segment includes our Process and Lubrication divisions. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids. Markets served include food and beverage, dairy, oil and natural gas, pharmaceutical, cosmetics, electronics, semiconductor fabrication, wastewater, mining, fast oil change facilities, service garages, fleet service centers, automobile dealerships and industrial lubrication applications. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The cost of manufacturing for each segment is based on product cost, and expenses are based on actual costs incurred along with cost allocations of shared and centralized functions based on activities performed, sales or space utilization. Depreciation expense is charged to the manufacturing or operating cost center that utilizes the asset, and is then allocated to segments on the same basis as other expenses within that cost center. Reportable segments are defined by product. Segments are responsible for development, manufacturing, marketing and sales of their products. This allows for focused marketing and efficient product development. The segments share common purchasing, certain manufacturing, distribution and administration functions. Segment information follows (in thousands): 2023 2022 2021 Net Sales Contractor $ 985,675 $ 999,060 $ 987,606 Industrial 662,785 649,347 602,376 Process 547,146 495,114 397,626 Total $ 2,195,606 $ 2,143,521 $ 1,987,608 Operating Earnings Contractor $ 285,394 $ 249,833 $ 266,204 Industrial 234,054 231,298 199,856 Process 165,273 122,344 91,037 Unallocated corporate (expense) (38,678) (30,775) (25,774) Contingent consideration 8,600 — — Impairment (7,800) — — Total $ 646,843 $ 572,700 $ 531,323 Assets Contractor $ 712,224 $ 752,729 Industrial 640,487 578,302 Process 554,753 564,539 Unallocated corporate 814,543 543,330 Total $ 2,722,007 $ 2,438,900 Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses and asset impairments. Unallocated corporate (expense) includes such items as stock compensation, certain acquisition transaction costs, bad debt expense, charitable contributions and certain facility expenses. Unallocated assets include cash, allowances and valuation reserves, deferred income taxes, certain capital and other assets. Geographic information follows (in thousands): 2023 2022 2021 Net Sales (based on customer location) United States $ 1,161,607 $ 1,116,012 $ 1,004,318 Other countries 1,033,999 1,027,509 983,290 Total $ 2,195,606 $ 2,143,521 $ 1,987,608 Long-lived Assets United States $ 622,430 $ 532,401 Other countries 119,283 75,208 Total $ 741,713 $ 607,609 Sales to Major Customers. |
Inventories
Inventories | 12 Months Ended |
Dec. 29, 2023 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major components of inventories were as follows (in thousands): 2023 2022 Finished products and components $ 221,847 $ 222,326 Products and components in various stages of completion 131,906 138,957 Raw materials and purchased components 202,294 248,636 Subtotal 556,047 609,919 Reduction to LIFO cost (117,698) (133,129) Total $ 438,349 $ 476,790 Inventories valued under the LIFO method were $211.4 million in 2023 and $253.6 million in 2022. All other inventory was valued on the FIFO method. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment were as follows (in thousands): 2023 2022 Land and improvements $ 70,382 $ 65,066 Buildings and improvements 500,373 376,115 Manufacturing equipment 441,824 439,109 Office, warehouse and automotive equipment 61,594 59,988 Additions in progress 132,609 126,198 Total property, plant and equipment 1,206,782 1,066,476 Accumulated depreciation (465,069) (458,867) Net property, plant and equipment $ 741,713 $ 607,609 Depreciation expense was $55.0 million in 2023, $46.0 million in 2022 and $40.0 million in 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings before income tax expense consist of (in thousands): 2023 2022 2021 Domestic $ 450,806 $ 401,405 $ 370,903 Foreign 157,996 164,319 137,562 Total $ 608,802 $ 565,724 $ 508,465 Income tax expense consists of (in thousands): 2023 2022 2021 Current Federal $ 79,732 $ 70,976 $ 77,703 State and local 7,282 5,948 7,493 Foreign 23,779 38,152 29,975 Current income tax expense 110,793 115,076 115,171 Deferred Domestic (6,919) (8,733) (42,413) Foreign (1,583) (1,264) (4,159) Deferred income tax expense (benefit) (8,502) (9,997) (46,572) Total $ 102,291 $ 105,079 $ 68,599 Income taxes paid were $111.3 million in 2023, $112.3 million in 2022 and $111.8 million in 2021. A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: 2023 2022 2021 Statutory tax rate 21 % 21 % 21 % Tax effect of international operations (1) 1 (1) State taxes, net of federal effect 1 1 1 U.S. general business tax credits (1) (1) (1) Stock compensation excess tax benefit (1) (1) (2) Foreign Derived Intangible Income (FDII) (2) (2) (5) Effective tax rate 17 % 19 % 13 % Deferred income taxes are provided for temporary differences between the financial reporting and the tax basis of assets and liabilities. The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands): 2023 2022 Inventory valuations $ 1,005 $ 678 Accrued self-insurance retentions 1,390 1,626 Accrued warranty and service liabilities 2,290 2,279 Vacation accruals 3,450 3,409 Customer allowances 4,137 4,143 Excess of tax over book depreciation and amortization (44,197) (42,322) Pension benefit obligation 10,063 6,375 Postretirement medical benefit obligation 5,039 5,072 Stock compensation 12,686 12,390 Deferred compensation 2,205 2,283 Deferred revenue 2,024 2,160 Research and development 23,324 11,370 Prepayments from foreign subsidiaries 27,301 36,070 Other 2,449 2,114 Net deferred tax assets $ 53,166 $ 47,647 Total deferred tax assets were $61.4 million and $57.1 million, and total deferred tax liabilities were $8.2 million and $9.4 million on December 29, 2023 and December 30, 2022, respectively. The difference between the deferred income tax provision and the change in net deferred income taxes is due to the changes in other comprehensive income (loss) items. The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2017. The Company continues to assert that it will indefinitely reinvest earnings of foreign subsidiaries to support expansion of its international business. No additional income or withholding taxes have been provided for any remaining undistributed foreign earnings, as these amounts continue to be indefinitely reinvested in foreign operations. As of December 29, 2023, the amount of cash held outside the U.S. was not significant to the Company’s liquidity and was available to fund investments abroad. The Company records penalties and accrued interest related to uncertain tax positions in income tax expense. Total reserves for uncertain tax positions were not material. |
Debt
Debt | 12 Months Ended |
Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of debt follows (dollars in thousands): Average Interest Rate as of December 29, 2023 Maturity 2023 2022 Private placement unsecured fixed-rate notes Series D 5.35% July 2023 — 75,000 Unsecured revolving credit facility N/A December 2026 — — Unsecured revolving credit facility - offshore renminbi denominated 3.79% N/A 28,099 14,327 Notes payable to banks —% 2024 1,937 6,647 Total debt $ 30,036 $ 95,974 The estimated fair value of the fixed interest rate Series D private placement debt was $75 million on December 30, 2022. This debt was repaid in July of 2023. 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. On May 23, 2023 and June 8, 2023, the Company executed amendments to its amended and restated credit agreement that amended, superseded and restated in its entirety the Company's existing credit agreement with U.S. Bank National Association, as administrative agent and a lender, and the other lenders that are parties thereto. The first amendment removed references to LIBOR for calculating rates and replaced them with SOFR and its equivalent benchmark rates such as EURIBOR, TIBOR and RFR loans. The second amendment increased, from $500 million to $750 million, the amount of availability under an unsecured revolving credit facility, as well as increased, from $200 million to $375 million, the maximum amount of outstanding loans in currencies other than U.S. dollars. The amendment also increased, from $250 million to $375 million, the amount by which the size of the credit facility may be increased upon exercise of an accordion feature. The accordion feature may be exercised by means of an increase in the revolving commitments or the addition of term loans. In addition, the second amendment increased the applicable margin percentages used for purposes of calculating the interest rates applicable to base rate loans and non-base rate loans (e.g., SOFR, EURIBOR, TIBOR and RFR loans). Under the amendment, the applicable margin percentages for base rate loans (which ranged from 0.000% to 0.750% under the prior credit agreement) range from 0.125% to 0.875%, and the applicable margin percentages for non-base rate loans (which ranged from 1.000% to 1.750% under the prior credit agreement) range from 1.125% to 1.875%. Borrowings under the amended and restated credit agreement may be denominated in U.S. dollars or certain other currencies. In addition to paying interest on the outstanding loans, the Company is required to pay a facility fee on the unused amount of the loan commitments at a rate per annum ranging from 0.125% to 0.25%, depending on the Company’s cash flow leverage ratio. The amended and restated credit agreement contains customary representations, warranties, covenants and events of default, including but not limited to covenants restricting the Company’s and its subsidiaries’ ability to (i) merge or consolidate with another entity, (ii) sell, transfer, lease or convey their assets, (iii) make any material change in the nature of the core business of the Company, (iv) make certain investments, or (v) incur secured indebtedness. The amended and restated credit agreement also requires the Company to maintain a cash flow leverage ratio of not more than 3.50 to 1.00 (unless a significant acquisition has been consummated, in which case, not more than 4.00 to 1.00 during the four fiscal quarter period beginning with the quarter in which such acquisition occurs) and an interest coverage ratio of not less than 3.00 to 1.00 (unless a significant acquisition has been consummated, in which case, not less than 2.50 to 1.00 during the four fiscal quarter period beginning with the quarter in which such acquisition occurs). A change in control of the Company will constitute an event of default under the amended and restated credit agreement. The Company maintains a revolving credit agreement with a sole lender that provides up to $50 million of committed credit, available for general corporate purposes, working capital needs, share repurchases and acquisitions. Under the terms of the agreement, loans may be denominated in U.S. dollars or Chinese renminbi (offshore). Loans denominated in U.S. dollars bear interest, at the Company’s option, at either a base rate or a HIBOR-based rate. Loans denominated in Chinese renminbi (offshore) bear interest at a HIBOR-based rate based on the Chinese offshore rate. Other terms of this revolving credit agreement are substantially similar to those of the Company’s amended and restated credit agreement that expires in March 2026. On December 16, 2022, the Company entered into an amendment to its master note agreement that extends the period in which the Company may issue, and affiliates of the lender may purchase, the Company’s senior notes from January 29, 2023 to December 16, 2027. The amendment also increases the maximum aggregate principal amount of senior notes the Company may issue under the master note agreement from $200 million to $250 million, although the maximum aggregate amount of senior notes bearing interest at a floating rate that may be outstanding at any one time will continue to be $100 million. The amendment also extends the maturity and average life of each senior note bearing interest at a fixed rate that may be issued under the master note agreement from no more than 12 years after the date of issuance to no more than 15 years after the date of issuance, and includes customary provisions for the replacement of LIBOR with SOFR and customary benchmark replacement provisions with respect to senior notes bearing interest at a floating rate. All other material items of the master note agreement remain unchanged. Under the terms of the master note agreement, the Company is required to maintain certain financial ratios as to cash flow leverage and interest coverage similar to the requirements of its other debt agreements. On December 29, 2023, the Company had $842 million in lines of credit, including the $800 million in committed credit facilities described above and $42 million with foreign banks. The unused portion of committed credit lines was $775 million as of December 29, 2023. In addition, the Company has unused, uncommitted lines of credit with foreign banks totaling $24 million. Borrowing rates under these credit lines vary with the prime rate, rates on domestic certificates of deposit and other benchmark rates (e.g. SOFR, EURIBOR, HIBOR, TIBOR and RFR). The Company pays facility fees at an annual rate of up to 0.15% on certain of these lines. No compensating balances are required. Various debt agreements require the Company to maintain certain financial ratios as to cash flow leverage and interest coverage. The Company is in compliance with all financial covenants of its debt agreements as of December 29, 2023. Annual maturities of debt are as follows (in thousands): 2024 2025 2026 2027 2028 Thereafter Maturities of debt $ 30,036 $ — $ — $ — $ — $ — Interest paid on debt was $5.7 million in 2023, $10.0 million in 2022 and $9.8 million in 2021. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity At December 29, 2023, the Company had 22,549 authorized, but unissued, cumulative preferred shares, $100 par value. The Company also has authorized, but not issued, a separate class of 3 million shares of preferred stock, $1 par value. Changes in components of accumulated other comprehensive income (loss), net of tax were (in thousands): Pension and Cumulative Total Balance, December 26, 2020 $ (114,129) $ (10,036) $ (124,165) Other comprehensive income (loss) before reclassifications 34,953 (10,026) 24,927 Amounts reclassified from accumulated other comprehensive income 19,069 — 19,069 Balance, December 31, 2021 (60,107) (20,062) (80,169) Other comprehensive income (loss) before reclassifications 16,083 (9,582) 6,501 Amounts reclassified from accumulated other comprehensive income 4,290 — 4,290 Balance, December 30, 2022 (39,734) (29,644) (69,378) Other comprehensive income (loss) before reclassifications (28,162) 25,661 (2,501) Amounts reclassified from accumulated other comprehensive income 36,884 — 36,884 Balance, December 29, 2023 $ (31,012) $ (3,983) $ (34,995) Amounts related to pension and postretirement medical adjustments are classified to non-service components of pension cost that are included within other non-operating expenses Note J |
Share-Based Awards, Purchase Pl
Share-Based Awards, Purchase Plans and Compensation Cost | 12 Months Ended |
Dec. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Awards, Purchase Plans and Compensation Cost | Share-Based Awards, Purchase Plans and Compensation Cost Stock Option and Award Plan. The Company has a stock incentive plan under which it grants stock options and share awards to directors, officers and other employees. Option price is the market price on the date of grant. Options become exercisable at such time, generally over 3 years or 4 years, and in such installments as set by the Company, and expire 10 years from the date of grant. Restricted share awards have been made to certain key employees under the plan. The market value of restricted stock at the date of grant is charged to operations over the vesting period. Compensation cost related to restricted shares is not significant. The Company has a stock appreciation plan that provides for payments of cash to eligible foreign employees based on the change in the market price of the Company’s common stock over a period of time. Compensation cost related to the stock appreciation plan was expense of $2.0 million in 2023, a benefit of $0.2 million in 2022 and expense of $3.1 million in 2021. Individual nonemployee directors of the Company may elect to receive, either currently or deferred, all or part of their retainer in the form of shares of the Company’s common stock instead of cash. Under this arrangement, the Company issued 11,150 shares in 2023, 12,055 shares in 2022 and 12,070 shares in 2021. The expense related to this arrangement is not significant. Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices): Option Weighted Average Options Weighted Average Outstanding, December 26, 2020 10,208 $ 35.02 6,553 $ 28.02 Granted 843 72.22 Exercised (1,309) 24.91 Canceled (167) 55.59 Outstanding, December 31, 2021 9,575 39.31 7,296 33.75 Granted 1,381 71.03 Exercised (645) 25.58 Canceled (46) 49.42 Outstanding, December 30, 2022 10,265 44.40 7,793 37.22 Granted 1,114 71.45 Exercised (1,354) 30.77 Canceled (121) 62.75 Outstanding, December 29, 2023 9,904 $ 49.09 7,274 $ 41.46 The following table summarizes information for options outstanding and exercisable at December 29, 2023 (in thousands, except exercise prices and contractual term amounts): Options Outstanding Options Exercisable Range of Options Weighted Average Weighted Average Options Weighted Average $ 20-35 3,107 3.2 $ 26.85 3,107 $ 26.85 $ 35-50 2,392 5.8 44.75 2,365 44.75 $ 50-65 1,231 7.1 55.96 1,084 55.92 $ 65-80 3,174 9.4 71.48 718 71.94 $ 20-80 9,904 6.3 $ 49.09 7,274 $ 41.46 The aggregate intrinsic value of exercisable option shares was $329.6 million as of December 29, 2023, with a weighted average contractual term of 4.2 years. There were approximately 9.9 million vested share options and share options expected to vest as of December 29, 2023, with an aggregate intrinsic value of $373.2 million, a weighted average exercise price of $49.09 and a weighted average contractual term of 6.3 years. Information related to options exercised follows (in thousands): 2023 2022 2021 Cash received $ 40,708 $ 15,739 $ 32,610 Aggregate intrinsic value 61,624 28,193 65,319 Tax benefit realized 12,605 6,020 13,329 Employee Stock Purchase Plan. Under the Company’s Employee Stock Purchase Plan, the purchase price of the shares is the lesser of 85 percent of the fair market value on the first day or the last day of the plan year. Under this plan, the Company issued 322,764 shares in 2023, 316,250 shares in 2022 and 415,995 shares in 2021. Authorized Shares. In April 2019, shareholders of the Company approved the Graco Inc. 2019 Stock Incentive Plan. The Plan provides for issuance of up to 10 million shares of Graco common stock. Shares authorized for issuance under the stock option and purchase plans are shown below (in thousands): Total Shares Available for Future Issuance as of December 29, 2023 Stock Incentive Plan (2019) 10,000 4,743 Employee Stock Purchase Plan (2006) 21,000 11,423 Total 31,000 16,166 Amounts available for future issuance exclude outstanding options. Options outstanding as of December 29, 2023, include options granted under two plans that were replaced by subsequent plans. No shares are available for future grants under those plans. Share-based Compensation. The Company recognized share-based compensation cost as follows (in thousands): 2023 2022 2021 Share-based compensation $ 30,229 $ 24,695 $ 24,931 Tax benefit 3,177 2,319 1,705 Share-based compensation, net of tax $ 27,052 $ 22,376 $ 23,226 As of December 29, 2023, there was $17.3 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of approximately 2.3 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: 2023 2022 2021 Expected life in years 6.7 6.4 7.5 Interest rate 4.0 % 2.7 % 0.9 % Volatility 26.3 % 26.2 % 25.2 % Dividend yield 1.3 % 1.2 % 1.0 % Weighted average fair value per share $ 21.76 $ 19.10 $ 17.87 Expected life is estimated based on vesting terms and exercise and termination history. Interest rate is based on the U.S. Treasury rate on zero-coupon issues with a remaining term equal to the expected life of the option. Expected volatility is based on historical volatility over a period commensurate with the expected life of options. The fair value of employees’ purchase rights under the Employee Stock Purchase 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: 2023 2022 2021 Expected life in years 1.0 1.0 1.0 Interest rate 5.1 % 0.9 % 0.1 % Volatility 26.4 % 20.5 % 40.1 % Dividend yield 1.4 % 1.2 % 1.1 % Weighted average fair value per share $ 18.04 $ 16.01 $ 21.50 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 29, 2023 | |
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): 2023 2022 2021 Net earnings available to common shareholders $ 506,511 $ 460,645 $ 439,866 Weighted average shares outstanding for basic earnings per share 168,442 168,952 169,635 Dilutive effect of stock options computed based on the treasury stock method using the average market price 3,757 3,941 4,891 Weighted average shares outstanding for diluted earnings per share 172,199 172,893 174,526 Basic earnings per share $ 3.01 $ 2.73 $ 2.59 Diluted earnings per share $ 2.94 $ 2.66 $ 2.52 Anti-dilutive stock options excluded from computations of diluted earnings per share totaled 2.0 million shares in 2023, 2.2 million shares in 2022 and 0.4 million 2021. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 29, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company has a defined contribution plan, under Section 401(k) of the Internal Revenue Code, which provides retirement benefits to most U.S. employees. For all employees who choose to participate, the Company matches employee contributions at a 100 percent rate, up to 3 percent of the employee’s compensation. For employees not covered by a defined benefit plan, the Company contributed an amount equal to 2 percent of the employee’s compensation. Employer contributions totaled $11.5 million in 2023, $11.0 million in 2022 and $10.0 million in 2021. The Company’s postretirement medical plan provides certain medical benefits for retired U.S. employees. Employees hired before January 1, 2005, are eligible for these benefits upon retirement and fulfillment of other eligibility requirements as specified by the plan. The Company has both funded and unfunded noncontributory defined benefit pension plans that together cover most U.S. employees hired before January 1, 2006, certain directors and some of the employees of the Company’s non-U.S. subsidiaries. In December of 2023, the Company entered into an agreement under which approximately $147 million of pension obligations of its U.S. funded defined benefit pension plan were transferred to an insurance company. Under the agreement, the Company purchased a group annuity contract for approximately 651 plan participants that provides for an irrevocable commitment to make annuity payments to the affected participants. The payment obligation and administration thereof for the affected participants was transferred from the pension plans to the insurance company. The transfer did not change the amount of the monthly pension benefits received by the affected participants. This arrangement is part of the Company’s effort to reduce the overall size and volatility of its pension plan obligations. The purchase of the group annuity contract was funded through existing plan assets. The Company recognized a non-cash pension settlement loss of approximately $42 million as a result of the transaction. This charge represents the acceleration of deferred charges currently accrued in accumulated other comprehensive income (loss). For U.S. plans, benefits are based on years of service and the highest 5 consecutive years’ earnings in the 10 years preceding retirement. Plans are funded annually in amounts consistent with minimum funding levels and maximum tax deduction limits, although the Company may make additional voluntary contributions from time to time to improve the funded status of its plans. Investment policies and strategies of the U.S. funded pension plan are based on participant demographics. As the plan covers active participants and retirees with higher benefit amounts, investments are based on a long-term view of economic growth and weighted toward equity securities. The primary goal of the plan’s investments is to ensure that the plan’s liabilities are met over time. In developing strategic asset allocation guidelines, an emphasis is placed on the long-term characteristics of individual asset classes, and the benefits of diversification among multiple asset classes. The plan invests primarily in domestic and international equities, fixed income securities, which include treasuries, highly-rated corporate bonds and high-yield bonds and real estate. Strategic target allocations for plan assets are 52 percent equity securities, 32 percent fixed income securities and 16 percent real estate and alternative investments. Plan assets are held in a trust for the benefit of plan participants and are invested in various commingled funds, most of which are sponsored by the trustee. The fair values for commingled equity, fixed-income and real estate investments are measured using net asset values, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per share market value. Certain trustee-sponsored funds allow redemptions monthly or quarterly, with 10 days or 60 days advance notice, while most of the funds allow redemptions daily. The plan had unfunded commitments to make additional investments in certain funds totaling $2.3 million as of December 29, 2023 and December 30, 2022. The Company maintains a defined contribution plan covering employees of a Swiss subsidiary, funded by Company and employee contributions. Responsibility for pension coverage under Swiss law has been transferred to a Swiss insurance company. Plan assets are invested in an insurance contract that guarantees a federally mandated annual rate of return. The value of the plan assets is effectively the value of the insurance contract. The performance of the underlying assets held by the insurance company has no direct impact on the surrender value of the insurance contract. The insurance backed assets have no active market and are classified as level 3 in the fair value hierarchy. Assets of all plans by category and fair value measurement level were as follows (in thousands): Level December 29, 2023 December 30, 2022 Cash and cash equivalents 1 $ 1,425 $ 351 Insurance contract 3 36,151 32,163 Investments categorized in fair value hierarchy 37,576 32,514 Equity U.S. Large Cap N/A 40,726 74,838 U.S. Small/Mid Cap N/A — 5,191 International N/A 17,554 37,862 Total equity 58,280 117,891 Fixed income N/A 49,595 93,262 Real estate and other N/A 15,400 37,508 Investments measured at net asset value 123,275 248,661 Total $ 160,851 $ 281,175 The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands): 2023 2022 Balance, beginning of year $ 32,163 $ 30,926 Purchases 2,593 2,431 Redemptions (2,833) (669) Unrealized gains (losses) 4,228 (525) Balance, end of year $ 36,151 $ 32,163 The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 29, 2023, and December 30, 2022, and a statement of the funded status as of the same dates (in thousands): Pension Benefits Postretirement Medical Benefits 2023 2022 2023 2022 Change in benefit obligation Obligation, beginning of year $ 315,807 $ 418,051 $ 22,930 $ 32,122 Service cost 5,729 8,242 348 516 Interest cost 16,535 10,996 1,165 839 Actuarial (gain) loss 32,763 (110,467) (237) (9,044) Benefit payments (12,103) (9,122) (1,552) (1,503) Plan amendments (250) (267) — Settlements (149,212) — — — Exchange rate changes 4,306 (1,626) — — Obligation, end of year $ 213,575 $ 315,807 $ 22,654 $ 22,930 Change in plan assets Fair value, beginning of year $ 281,175 $ 347,900 $ — $ — Actual return on assets 14,504 (80,078) — — Employer contributions 23,066 22,756 1,552 1,503 Benefit payments (12,103) (9,122) (1,552) (1,503) Settlements (149,212) — — — Exchange rate changes 3,421 (281) — — Fair value, end of year $ 160,851 $ 281,175 $ — $ — Unfunded status $ (52,724) $ (34,632) $ (22,654) $ (22,930) Amounts recognized in consolidated balance sheets Non-current assets $ 215 $ 5,398 $ — $ — Current liabilities 1,749 1,860 1,745 1,763 Non-current liabilities 51,190 38,170 20,909 21,167 Net $ 52,724 $ 34,632 $ 22,654 $ 22,930 Changes in discount rates used to value pension obligations were the main drivers of actuarial losses in 2023 and gains in 2022. In 2023 and 2022, the Company made a $20 million voluntary contribution each year to one of its U.S. qualified defined benefit plans. The accumulated benefit obligation as of year-end for all defined benefit pension plans was $186 million for 2023 and $297 million for 2022. Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): 2023 2022 Projected benefit obligation $ 89,206 $ 72,190 Accumulated benefit obligation 81,701 69,395 Fair value of plan assets 36,150 32,164 The components of net periodic benefit cost for the plans for 2023, 2022 and 2021 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2023 2022 2021 2023 2022 2021 Service cost-benefits earned during the period $ 5,729 $ 8,242 $ 9,355 $ 348 $ 516 $ 670 Interest cost on projected benefit obligation 16,535 10,996 11,409 1,165 839 832 Expected return on assets (19,141) (19,754) (20,767) — — — Amortization of prior service cost 36 84 246 — — — Amortization of net loss 5,999 4,701 9,248 (133) 345 1,002 Settlement loss 42,169 — 12,285 — — — Cost of pension plans which are not significant and have not adopted ASC 715 368 284 368 N/A N/A N/A Net periodic benefit cost $ 51,695 $ 4,553 $ 22,144 $ 1,380 $ 1,700 $ 2,504 Net periodic benefit cost is disaggregated between service cost presented as operating expense and other components of pension cost presented as non-operating expense. Other components of pension cost and changes in cash surrender value of insurance contracts intended to fund certain non-qualified pension and deferred compensation arrangements included in non-operating expenses totaled $44 million in 2023, $1 million in 2022 and $12 million in 2021. Amounts recognized in other comprehensive income (loss) in 2023 and 2022 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2023 2022 2023 2022 Net (loss) gain arising during the period $ (37,132) $ 11,189 $ 237 $ 9,044 Amortization of net loss (gain) 5,999 4,701 (133) 345 Prior service credit (cost) arising during the period 250 267 — — Settlement loss 42,169 — — — Amortization of prior service (credit) cost 36 84 — — Total $ 11,322 $ 16,241 $ 104 $ 9,389 Amounts included in accumulated other comprehensive income (loss) as of December 29, 2023 and December 30, 2022, that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2023 2022 2023 2022 Prior service cost $ 2,163 $ 1,668 $ — $ — Net gain (loss) (44,195) (55,084) 1,995 1,891 Net gain (loss) before income taxes (42,032) (53,416) 1,995 1,891 Income taxes 9,464 12,207 (439) (416) Net $ (32,568) $ (41,209) $ 1,556 $ 1,475 Assumptions used to determine the Company’s benefit obligations are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2023 2022 2023 2022 U.S. Plans Discount rate 5.3 % 5.6 % 5.3 % 5.6 % Rate of compensation increase 2.7 % 2.7 % N/A N/A Non-U.S. Plans Discount rate 2.1 % 2.4 % N/A N/A Rate of compensation increase 1.7 % 1.8 % N/A N/A Assumptions used to determine the Company’s net periodic benefit cost are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2023 2022 2021 2023 2022 2021 U.S. Plans Discount rate 5.6 % 3.0 % 2.6 % 5.6 % 2.9 % 2.6 % Rate of compensation increase 2.7 % 2.7 % 2.7 % N/A N/A N/A Expected return on assets 7.6 % 6.3 % 6.3 % N/A N/A N/A Non-U.S. Plans Discount rate 0.4 % 0.4 % 0.4 % N/A N/A N/A Rate of compensation increase 1.3 % 1.3 % 1.3 % N/A N/A N/A Expected return on assets 1.6 % 1.0 % 1.0 % N/A N/A N/A Several sources of information are considered in determining the expected rate of return assumption, including the allocation of plan assets, the input of actuaries and professional investment advisers, and historical long-term returns. In setting the return assumption, the Company recognizes that historical returns are not always indicative of future returns and also considers the long-term nature of its pension obligations. The Company’s U.S. retirement medical plan limits the annual cost increase that will be paid by the Company to 3 percent. In measuring the accumulated postretirement benefit obligation (APBO), the annual trend rate for health care costs was assumed to be 8.2 percent for 2024, decreasing each year to a constant rate of 4.5 percent for 2038 and thereafter, subject to the plan’s annual increase limitation. The Company expects to contribute $1.7 million to its unfunded pension plans and $1.7 million to the postretirement medical plan in 2024. The Company will not be required to make contributions to the funded pension plan under minimum funding requirements for 2024. Estimated future benefit payments are as follows (in thousands): Pension Postretirement 2024 $ 7,165 $ 1,745 2025 6,455 1,717 2026 9,455 1,689 2027 11,380 1,697 2028 11,270 1,670 Years 2029-2033 67,316 7,974 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Liabilities and Assets The Company owns most of the assets used in its operations, but leases certain buildings and land, vehicles, office equipment and other rental assets. The Company determines if an arrangement is a lease at inception. All of the Company’s current lease arrangements are classified as operating leases. The Company historically has not entered into financing leases. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments. Supplemental information related to the Company's lease activities is as follows (in thousands): 2023 2022 Operating lease expense $ 11,688 $ 12,307 Operating lease payments 11,903 11,886 Non-cash additions to operating lease assets 6,141 8,859 Additional information related to operating leases is as follows: 2023 2022 Weighted average remaining lease term (years) 3.1 3.0 Weighted average discount rate 5.13 % 3.00 % Variable lease costs and short term lease costs were not significant for the twelve months ended December 29, 2023 and December 30, 2022. As of December 29, 2023, future maturities of operating lease liabilities were as follows (in thousands): 2024 $ 8,242 2025 7,339 2026 3,552 2027 1,240 2028 612 Thereafter 616 Total lease payments $ 21,601 Present value adjustment (1,574) Operating lease liabilities $ 20,027 Other Commitments. The Company is committed to pay suppliers under the terms of open purchase orders issued in the normal course of business totaling approximately $156 million at December 29, 2023. The Company also has commitments with certain suppliers to purchase minimum quantities, and under the terms of certain agreements, the Company is committed for certain portions of the supplier’s inventory. The Company does not purchase, or commit to purchase, quantities in excess of normal usage or amounts that cannot be used within one year. The Company estimates that the maximum commitment amount under such agreements does not exceed $56 million. The Company enters into contracts with vendors to receive services. Commitments under these service contracts with non-cancelable terms of more than one year totaled $10 million in 2024, $5 million in 2025, $2 million in 2026 and $1 million thereafter. In addition, the Company could be obligated to perform under standby letters of credit totaling $11 million at December 29, 2023. The Company has also guaranteed the debt of its subsidiaries for up to $5 million. All debt of subsidiaries is reflected in the consolidated balance sheets. Contingencies. The Company is party to various legal proceedings arising in the normal course of business. The Company is actively pursuing and defending these matters and has recorded an estimate of the probable costs where appropriate. Management does not expect that resolution of these matters will have a material adverse effect on the Company, although the ultimate outcome cannot be determined based on available information. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Earnings | $ 506,511 | $ 460,645 | $ 439,866 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 29, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | The fiscal year of Graco Inc. and Subsidiaries (the Company) is 52 or 53 weeks, ending on the last Friday in December. The year ended December 31, 2021 was a 53-week year whereas the years ended December 29, 2023 and December 30, 2022 were 52-week years. |
Basis of Statement Presentation | The consolidated financial statements include the accounts of the parent company and its subsidiaries after elimination of intercompany balances and transactions. As of December 29, 2023, all subsidiaries are 100 percent controlled by the Company. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation. |
Foreign Currency Translation | The functional currency of certain subsidiaries is the local currency. Accordingly, adjustments resulting from the translation of those subsidiaries’ financial statements into U.S. dollars are charged or credited to accumulated other comprehensive income (loss). The U.S. dollar is the functional currency for all other foreign subsidiaries. Accordingly, gains and losses from the translation of foreign currency balances and transactions of those subsidiaries are included in other expense, net. |
Accounting Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Measurements | The three levels of inputs in the fair value measurement hierarchy are as follows: Level 1 – based on quoted prices in active markets for identical assets Level 2 – based on significant observable inputs Level 3 – based on significant unobservable inputs 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. The Company’s policy and accounting for forward exchange contracts are described below, in Derivative Instruments and Hedging Activities. Contingent consideration liability represents the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of certain acquired businesses based on future revenues. Disclosures related to other fair value measurements are included below in Impairment of Long-Lived Assets, in Note F (Debt) and in Note J (Retirement Benefits). |
Cash Equivalents | All highly liquid investments with a maturity of three months or less at the date of purchase are considered to be cash equivalents. |
Allowance for Credit Losses | Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. |
Inventory Valuation | Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) cost method is used for valuing most U.S. inventories. Inventories of foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method. |
Impairment or Long-Lived Assets | The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment annually in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Property, Plant and Equipment | For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years |
Goodwill and Other Intangible Assets | Goodwill has been assigned to reporting units. |
Other Assets, Insurance Contracts | The Company has entered into contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans. These insurance contracts are used to fund the non-qualified pension and deferred compensation arrangements. The insurance contracts are held in a trust and are available to general creditors in the event of the Company’s insolvency. Changes in cash surrender value are recorded in other expense, net. |
Other Assets, Capitalized Software | Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation. |
Self Insurance | The Company is self-insured for certain losses and costs relating to product liability, workers’ compensation, and employee medical benefit claims. The Company has stop-loss coverage in order to limit its exposure to significant claims. Accrued self-insurance retentions are based on claims filed, estimates of claims incurred but not reported, and other actuarial assumptions. Self-insured reserves totaled $8.7 million as of December 29, 2023 and $9.3 million as of December 30, 2022. |
Product Warranties | 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. |
Revenue Recognition | Revenue is recognized at a single point in time upon the satisfaction of performance obligations, which occurs when control of the good or service transfers to the customer. This is generally on the date of shipment for product sales; however certain sales have terms requiring recognition when the goods are received by the customer. In cases where there are specific customer acceptance provisions, revenue is recognized at the later of customer acceptance or shipment (subject to shipping terms). Payment terms are established based on the type of product, distributor capabilities and competitive market conditions, and do not exceed one year. Standalone selling prices are determined based on the prices charged to customers for all material performance obligations. Variable consideration is accounted for as a price adjustment (sales adjustment). Following are examples of variable consideration that affect the Company’s reported revenue. Early payment discounts are provided to certain customers and within certain regions. Rights of return are typically contractually limited and amounts are estimable. The Company records a refund liability and establishes a recovery asset for the value of product expected to be returned at the time revenue is recognized. This includes promotions when, from time to time, the Company may promote the sale of new products by agreeing to accept returns of superseded products. Provisions for sales returns are recorded as a reduction of net sales, and provisions for warranty claims are recorded in selling, marketing and distribution expenses. Historically, sales returns have been approximately 3 percent of sales. Trade promotions are offered to distributors and end users through various programs, generally with terms of one year or less. Such promotions include rebates based on annual purchases and sales growth, coupons and reimbursement for competitive products. Payment of incentives may take the form of cash, trade credit, promotional merchandise or free product. Rebates are accrued based on the program rates and progress toward the probability weighted estimate of annual sales amount and sales growth. Additional promotions include cooperative advertising arrangements. Under cooperative advertising arrangements, the Company reimburses the distributor for a portion of its advertising costs related to the Company’s products. Estimated costs are accrued at the time of sale and classified as selling, marketing and distribution expense. The estimated costs related to coupon programs are accrued at the time of sale and classified as selling, marketing and distribution expense or cost of products sold, depending on the type of incentive offered. The considerations payable to customers are deemed as broad based and are not recorded against net sales. Shipping and handling costs incurred for the delivery of goods to customers are included in cost of goods sold. Amounts billed to customers for shipping and handling are included in net sales. Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. The balance in the deferred revenue and customer advances was $51.6 million as of December 29, 2023 and $50.7 million as of December 30, 2022. Net sales for 2023 included $49.6 million that was in deferred revenue and customer advances as of December 30, 2022. Net sales for 2022 included $60.4 million that was in deferred revenue and customer advances as of December 31, 2021. Shipping and handling activities that occur after control of the related good transfers are accounted for as fulfillment activities instead of assessing such activities as performance obligations. Sales taxes related to revenue producing transactions collected from the customer for a governmental authority are excluded from the transaction price. Revenue standard requirements are applied to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Promised goods or services are not assessed as performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes goods or services that are immaterial in the context of the contract is recognized before those immaterial goods or services are transferred to the customer, then the related costs to transfer those goods or services are accrued. |
Earnings Per Common Share | Basic net earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the year. Diluted net earnings per share is computed after giving effect to the exercise of all dilutive outstanding option grants. |
Comprehensive Income | Comprehensive income is a measure of all changes in shareholders’ equity except those resulting from investments by and distributions to owners, and includes such items as net earnings, certain foreign currency translation items, changes in the value of qualifying hedges and pension liability adjustments. |
Derivative Instruments and Hedging Activities | The Company accounts for all derivatives, including those embedded in other contracts, as either assets or liabilities and measures those financial instruments at fair value. The accounting for changes in the fair value of derivatives depends on their intended use and designation. As part of its risk management program, the Company may periodically use forward exchange contracts to manage known market exposures. Terms of derivative instruments are structured to match the terms of the risk being managed and are generally held to maturity. The Company does not hold or issue derivative financial instruments for trading purposes. All other contracts that contain provisions meeting the definition of a derivative also meet the requirements of, and have been designated as, normal purchases or sales. The Company’s policy is to not enter into contracts with terms that cannot be designated as normal purchases or sales. The Company periodically evaluates its monetary asset and liability positions denominated in foreign currencies. The Company enters into forward contracts or options, or borrows in various currencies, in order to hedge its net monetary positions. These instruments are recorded at fair value and the gains and losses are included in other expense, net. The notional amounts of contracts outstanding as of December 29, 2023, totaled $62 million. The Company believes it uses strong financial counterparties in these transactions and that the resulting credit risk under these hedging strategies is not significant. |
Segment Information | The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The cost of manufacturing for each segment is based on product cost, and expenses are based on actual costs incurred along with cost allocations of shared and centralized functions based on activities performed, sales or space utilization. Depreciation expense is charged to the manufacturing or operating cost center that utilizes the asset, and is then allocated to segments on the same basis as other expenses within that cost center. Reportable segments are defined by product. Segments are responsible for development, manufacturing, marketing and sales of their products. This allows for focused marketing and efficient product development. The segments share common purchasing, certain manufacturing, distribution and administration functions. |
Operating Lease Liabilities and Assets | Operating Lease Liabilities and Assets The Company owns most of the assets used in its operations, but leases certain buildings and land, vehicles, office equipment and other rental assets. The Company determines if an arrangement is a lease at inception. All of the Company’s current lease arrangements are classified as operating leases. The Company historically has not entered into financing leases. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
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 2023 2022 Assets Cash surrender value of life insurance 2 $ 22,255 $ 19,192 Liabilities Contingent consideration 3 $ 1,375 $ 14,914 Deferred compensation 2 6,445 5,842 Forward exchange contracts 2 422 520 Total liabilities at fair value $ 8,242 $ 21,276 |
Accounts Receivable, Allowance for Credit Loss | Following is a summary of activity in the allowance for credit losses (in thousands): 2023 2022 2021 Balance, beginning $ 6,130 $ 3,254 $ 3,745 Additions (reversals) charged to costs and expenses 1,125 3,567 (27) Deductions from reserves (1) (2,711) (633) (676) Other additions (deductions) (2) 111 (58) 212 Balance, ending $ 4,655 $ 6,130 $ 3,254 (1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (2) Includes effects of foreign currency translation. |
Other Current Assets | Amounts included in other current assets were (in thousands): 2023 2022 Prepaid income taxes $ 14,546 $ 18,702 Prepaid expenses and other 20,524 24,922 Total $ 35,070 $ 43,624 |
Property, Plant and Equipment | For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years Property, plant and equipment were as follows (in thousands): 2023 2022 Land and improvements $ 70,382 $ 65,066 Buildings and improvements 500,373 376,115 Manufacturing equipment 441,824 439,109 Office, warehouse and automotive equipment 61,594 59,988 Additions in progress 132,609 126,198 Total property, plant and equipment 1,206,782 1,066,476 Accumulated depreciation (465,069) (458,867) Net property, plant and equipment $ 741,713 $ 607,609 |
Schedule of Goodwill | Changes in the carrying amounts of goodwill for each reportable segment were (in thousands): Industrial Process Contractor Total Balance, January 1, 2022 $ 137,155 $ 141,304 $ 77,796 $ 356,255 Additions, adjustments from business acquisitions — 16,994 — 16,994 Foreign currency translation (2,384) (1,932) (762) (5,078) Balance, December 30, 2022 134,771 156,366 77,034 368,171 Additions, adjustments from business acquisitions — — — — Impairment — (7,800) — (7,800) Foreign currency translation 8,361 988 508 9,857 Balance, December 29, 2023 $ 143,132 $ 149,554 $ 77,542 $ 370,228 |
Intangible Assets | Components of other intangible assets, net were (dollars in thousands): Finite Life Indefinite Life Customer Patents and Trademarks, Trade Total As of December 29, 2023 Cost $ 191,417 $ 14,174 $ 1,300 $ 62,633 $ 269,524 Accumulated amortization (128,248) (8,547) (561) — (137,356) Foreign currency translation (7,591) (344) — 2,025 (5,910) Book value $ 55,578 $ 5,283 $ 739 $ 64,658 $ 126,258 Weighted average life in years 13 9 6 N/A As of December 30, 2022 Cost $ 202,103 $ 26,374 $ 1,300 $ 62,633 $ 292,410 Accumulated amortization (123,603) (18,027) (330) — (141,960) Foreign currency translation (10,060) (894) — (1,989) (12,943) Book value $ 68,440 $ 7,453 $ 970 $ 60,644 $ 137,507 Weighted average life in years 13 10 6 N/A |
Future Amortization Expense | Estimated future annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands): 2024 2025 2026 2027 2028 Thereafter Estimated Amortization Expense $ 16,929 $ 16,459 $ 9,247 $ 6,423 $ 4,258 $ 8,284 |
Components of Other Assets | Components of other assets were (in thousands): 2023 2022 Cash surrender value of life insurance $ 22,255 $ 19,192 Capitalized software 2,602 2,189 Equity method investment 9,661 8,767 Deposits and other 3,332 2,970 Total $ 37,850 $ 33,118 |
Components of Other Current Liabilities | Components of other current liabilities were (in thousands): 2023 2022 Accrued self-insurance retentions $ 8,654 $ 9,338 Accrued warranty and service liabilities 15,408 14,674 Accrued trade promotions 14,312 13,799 Payable for employee stock purchases 16,639 16,497 Customer advances and deferred revenue 51,578 50,747 Income taxes payable 9,837 15,987 Tax payable, other 12,289 9,614 Operating lease liabilities, current 8,242 9,555 Right of return refund liability 17,826 18,449 Other 30,574 32,133 Total $ 185,359 $ 190,793 |
Accrued Warranty Liability Activity | Following is a summary of activity in accrued warranty and service liabilities (in thousands): 2023 2022 Balance, beginning of year $ 14,674 $ 14,463 Assumed in business acquisition — 38 Charged to expense 11,128 8,946 Margin on parts sales reversed 3,875 3,292 Reductions for claims settled (14,269) (12,065) Balance, end of year $ 15,408 $ 14,674 |
Fair Market Value and Classification of Derivative Instruments | The fair market value of such instruments follows (in thousands): 2023 2022 Foreign Currency Contracts Assets $ 26 $ 157 Liabilities (448) (677) Net Assets (Liabilities) $ (422) $ (520) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Information - Operations and Assets | Segment information follows (in thousands): 2023 2022 2021 Net Sales Contractor $ 985,675 $ 999,060 $ 987,606 Industrial 662,785 649,347 602,376 Process 547,146 495,114 397,626 Total $ 2,195,606 $ 2,143,521 $ 1,987,608 Operating Earnings Contractor $ 285,394 $ 249,833 $ 266,204 Industrial 234,054 231,298 199,856 Process 165,273 122,344 91,037 Unallocated corporate (expense) (38,678) (30,775) (25,774) Contingent consideration 8,600 — — Impairment (7,800) — — Total $ 646,843 $ 572,700 $ 531,323 Assets Contractor $ 712,224 $ 752,729 Industrial 640,487 578,302 Process 554,753 564,539 Unallocated corporate 814,543 543,330 Total $ 2,722,007 $ 2,438,900 |
Segment Reporting Information - Geographic | Geographic information follows (in thousands): 2023 2022 2021 Net Sales (based on customer location) United States $ 1,161,607 $ 1,116,012 $ 1,004,318 Other countries 1,033,999 1,027,509 983,290 Total $ 2,195,606 $ 2,143,521 $ 1,987,608 Long-lived Assets United States $ 622,430 $ 532,401 Other countries 119,283 75,208 Total $ 741,713 $ 607,609 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Inventory, Net [Abstract] | |
Components of Inventories | Major components of inventories were as follows (in thousands): 2023 2022 Finished products and components $ 221,847 $ 222,326 Products and components in various stages of completion 131,906 138,957 Raw materials and purchased components 202,294 248,636 Subtotal 556,047 609,919 Reduction to LIFO cost (117,698) (133,129) Total $ 438,349 $ 476,790 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows: Buildings and improvements 10 to 30 years Leasehold improvements lesser of 5 to 10 years or life of lease Manufacturing equipment lesser of 5 to 10 years or life of equipment Office, warehouse and automotive equipment 3 to 10 years Property, plant and equipment were as follows (in thousands): 2023 2022 Land and improvements $ 70,382 $ 65,066 Buildings and improvements 500,373 376,115 Manufacturing equipment 441,824 439,109 Office, warehouse and automotive equipment 61,594 59,988 Additions in progress 132,609 126,198 Total property, plant and equipment 1,206,782 1,066,476 Accumulated depreciation (465,069) (458,867) Net property, plant and equipment $ 741,713 $ 607,609 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Tax Expense | Earnings before income tax expense consist of (in thousands): 2023 2022 2021 Domestic $ 450,806 $ 401,405 $ 370,903 Foreign 157,996 164,319 137,562 Total $ 608,802 $ 565,724 $ 508,465 |
Components of Income Tax Expense | Income tax expense consists of (in thousands): 2023 2022 2021 Current Federal $ 79,732 $ 70,976 $ 77,703 State and local 7,282 5,948 7,493 Foreign 23,779 38,152 29,975 Current income tax expense 110,793 115,076 115,171 Deferred Domestic (6,919) (8,733) (42,413) Foreign (1,583) (1,264) (4,159) Deferred income tax expense (benefit) (8,502) (9,997) (46,572) Total $ 102,291 $ 105,079 $ 68,599 |
Federal Tax Rate Reconciliation | A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows: 2023 2022 2021 Statutory tax rate 21 % 21 % 21 % Tax effect of international operations (1) 1 (1) State taxes, net of federal effect 1 1 1 U.S. general business tax credits (1) (1) (1) Stock compensation excess tax benefit (1) (1) (2) Foreign Derived Intangible Income (FDII) (2) (2) (5) Effective tax rate 17 % 19 % 13 % |
Deferred Income Taxes | The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands): 2023 2022 Inventory valuations $ 1,005 $ 678 Accrued self-insurance retentions 1,390 1,626 Accrued warranty and service liabilities 2,290 2,279 Vacation accruals 3,450 3,409 Customer allowances 4,137 4,143 Excess of tax over book depreciation and amortization (44,197) (42,322) Pension benefit obligation 10,063 6,375 Postretirement medical benefit obligation 5,039 5,072 Stock compensation 12,686 12,390 Deferred compensation 2,205 2,283 Deferred revenue 2,024 2,160 Research and development 23,324 11,370 Prepayments from foreign subsidiaries 27,301 36,070 Other 2,449 2,114 Net deferred tax assets $ 53,166 $ 47,647 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of debt follows (dollars in thousands): Average Interest Rate as of December 29, 2023 Maturity 2023 2022 Private placement unsecured fixed-rate notes Series D 5.35% July 2023 — 75,000 Unsecured revolving credit facility N/A December 2026 — — Unsecured revolving credit facility - offshore renminbi denominated 3.79% N/A 28,099 14,327 Notes payable to banks —% 2024 1,937 6,647 Total debt $ 30,036 $ 95,974 |
Annual Maturities of Debt | Annual maturities of debt are as follows (in thousands): 2024 2025 2026 2027 2028 Thereafter Maturities of debt $ 30,036 $ — $ — $ — $ — $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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 Cumulative Total Balance, December 26, 2020 $ (114,129) $ (10,036) $ (124,165) Other comprehensive income (loss) before reclassifications 34,953 (10,026) 24,927 Amounts reclassified from accumulated other comprehensive income 19,069 — 19,069 Balance, December 31, 2021 (60,107) (20,062) (80,169) Other comprehensive income (loss) before reclassifications 16,083 (9,582) 6,501 Amounts reclassified from accumulated other comprehensive income 4,290 — 4,290 Balance, December 30, 2022 (39,734) (29,644) (69,378) Other comprehensive income (loss) before reclassifications (28,162) 25,661 (2,501) Amounts reclassified from accumulated other comprehensive income 36,884 — 36,884 Balance, December 29, 2023 $ (31,012) $ (3,983) $ (34,995) |
Share-Based Awards, Purchase _2
Share-Based Awards, Purchase Plans and Compensation Cost (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Share-Based Payment Arrangement [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 Weighted Average Options Weighted Average Outstanding, December 26, 2020 10,208 $ 35.02 6,553 $ 28.02 Granted 843 72.22 Exercised (1,309) 24.91 Canceled (167) 55.59 Outstanding, December 31, 2021 9,575 39.31 7,296 33.75 Granted 1,381 71.03 Exercised (645) 25.58 Canceled (46) 49.42 Outstanding, December 30, 2022 10,265 44.40 7,793 37.22 Granted 1,114 71.45 Exercised (1,354) 30.77 Canceled (121) 62.75 Outstanding, December 29, 2023 9,904 $ 49.09 7,274 $ 41.46 |
Options Outstanding and Exercisable | The following table summarizes information for options outstanding and exercisable at December 29, 2023 (in thousands, except exercise prices and contractual term amounts): Options Outstanding Options Exercisable Range of Options Weighted Average Weighted Average Options Weighted Average $ 20-35 3,107 3.2 $ 26.85 3,107 $ 26.85 $ 35-50 2,392 5.8 44.75 2,365 44.75 $ 50-65 1,231 7.1 55.96 1,084 55.92 $ 65-80 3,174 9.4 71.48 718 71.94 $ 20-80 9,904 6.3 $ 49.09 7,274 $ 41.46 |
Cash Proceeds Received and Tax Benefit from Share-based Payment Awards [Table Text Block] | Information related to options exercised follows (in thousands): 2023 2022 2021 Cash received $ 40,708 $ 15,739 $ 32,610 Aggregate intrinsic value 61,624 28,193 65,319 Tax benefit realized 12,605 6,020 13,329 |
Share Based Payment Award Stock Options Authorized | Shares authorized for issuance under the stock option and purchase plans are shown below (in thousands): Total Shares Available for Future Issuance as of December 29, 2023 Stock Incentive Plan (2019) 10,000 4,743 Employee Stock Purchase Plan (2006) 21,000 11,423 Total 31,000 16,166 |
Share-based compensation cost | The Company recognized share-based compensation cost as follows (in thousands): 2023 2022 2021 Share-based compensation $ 30,229 $ 24,695 $ 24,931 Tax benefit 3,177 2,319 1,705 Share-based compensation, net of tax $ 27,052 $ 22,376 $ 23,226 |
Options - Valuation Assumptions | 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: 2023 2022 2021 Expected life in years 6.7 6.4 7.5 Interest rate 4.0 % 2.7 % 0.9 % Volatility 26.3 % 26.2 % 25.2 % Dividend yield 1.3 % 1.2 % 1.0 % Weighted average fair value per share $ 21.76 $ 19.10 $ 17.87 |
Employee Stock Purchase Plan - Valuation Assumptions | 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: 2023 2022 2021 Expected life in years 1.0 1.0 1.0 Interest rate 5.1 % 0.9 % 0.1 % Volatility 26.4 % 20.5 % 40.1 % Dividend yield 1.4 % 1.2 % 1.1 % Weighted average fair value per share $ 18.04 $ 16.01 $ 21.50 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
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): 2023 2022 2021 Net earnings available to common shareholders $ 506,511 $ 460,645 $ 439,866 Weighted average shares outstanding for basic earnings per share 168,442 168,952 169,635 Dilutive effect of stock options computed based on the treasury stock method using the average market price 3,757 3,941 4,891 Weighted average shares outstanding for diluted earnings per share 172,199 172,893 174,526 Basic earnings per share $ 3.01 $ 2.73 $ 2.59 Diluted earnings per share $ 2.94 $ 2.66 $ 2.52 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Retirement Benefits [Abstract] | |
Plan assets by category and fair value measurement level | Assets of all plans by category and fair value measurement level were as follows (in thousands): Level December 29, 2023 December 30, 2022 Cash and cash equivalents 1 $ 1,425 $ 351 Insurance contract 3 36,151 32,163 Investments categorized in fair value hierarchy 37,576 32,514 Equity U.S. Large Cap N/A 40,726 74,838 U.S. Small/Mid Cap N/A — 5,191 International N/A 17,554 37,862 Total equity 58,280 117,891 Fixed income N/A 49,595 93,262 Real estate and other N/A 15,400 37,508 Investments measured at net asset value 123,275 248,661 Total $ 160,851 $ 281,175 |
Level 3 plan assets activity | The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands): 2023 2022 Balance, beginning of year $ 32,163 $ 30,926 Purchases 2,593 2,431 Redemptions (2,833) (669) Unrealized gains (losses) 4,228 (525) Balance, end of year $ 36,151 $ 32,163 |
Funded status of plans | The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 29, 2023, and December 30, 2022, and a statement of the funded status as of the same dates (in thousands): Pension Benefits Postretirement Medical Benefits 2023 2022 2023 2022 Change in benefit obligation Obligation, beginning of year $ 315,807 $ 418,051 $ 22,930 $ 32,122 Service cost 5,729 8,242 348 516 Interest cost 16,535 10,996 1,165 839 Actuarial (gain) loss 32,763 (110,467) (237) (9,044) Benefit payments (12,103) (9,122) (1,552) (1,503) Plan amendments (250) (267) — Settlements (149,212) — — — Exchange rate changes 4,306 (1,626) — — Obligation, end of year $ 213,575 $ 315,807 $ 22,654 $ 22,930 Change in plan assets Fair value, beginning of year $ 281,175 $ 347,900 $ — $ — Actual return on assets 14,504 (80,078) — — Employer contributions 23,066 22,756 1,552 1,503 Benefit payments (12,103) (9,122) (1,552) (1,503) Settlements (149,212) — — — Exchange rate changes 3,421 (281) — — Fair value, end of year $ 160,851 $ 281,175 $ — $ — Unfunded status $ (52,724) $ (34,632) $ (22,654) $ (22,930) |
Amounts recognized in balance sheets | Amounts recognized in consolidated balance sheets Non-current assets $ 215 $ 5,398 $ — $ — Current liabilities 1,749 1,860 1,745 1,763 Non-current liabilities 51,190 38,170 20,909 21,167 Net $ 52,724 $ 34,632 $ 22,654 $ 22,930 |
Accumulated benefit obligation in excess of plan assets | Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands): 2023 2022 Projected benefit obligation $ 89,206 $ 72,190 Accumulated benefit obligation 81,701 69,395 Fair value of plan assets 36,150 32,164 |
Components of net periodic benefit cost | The components of net periodic benefit cost for the plans for 2023, 2022 and 2021 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2023 2022 2021 2023 2022 2021 Service cost-benefits earned during the period $ 5,729 $ 8,242 $ 9,355 $ 348 $ 516 $ 670 Interest cost on projected benefit obligation 16,535 10,996 11,409 1,165 839 832 Expected return on assets (19,141) (19,754) (20,767) — — — Amortization of prior service cost 36 84 246 — — — Amortization of net loss 5,999 4,701 9,248 (133) 345 1,002 Settlement loss 42,169 — 12,285 — — — Cost of pension plans which are not significant and have not adopted ASC 715 368 284 368 N/A N/A N/A Net periodic benefit cost $ 51,695 $ 4,553 $ 22,144 $ 1,380 $ 1,700 $ 2,504 |
Amounts recognized in other comprehensive (income) loss | Amounts recognized in other comprehensive income (loss) in 2023 and 2022 were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2023 2022 2023 2022 Net (loss) gain arising during the period $ (37,132) $ 11,189 $ 237 $ 9,044 Amortization of net loss (gain) 5,999 4,701 (133) 345 Prior service credit (cost) arising during the period 250 267 — — Settlement loss 42,169 — — — Amortization of prior service (credit) cost 36 84 — — Total $ 11,322 $ 16,241 $ 104 $ 9,389 |
Amounts included in accumulated other comprehensive (income) loss | Amounts included in accumulated other comprehensive income (loss) as of December 29, 2023 and December 30, 2022, that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands): Pension Benefits Postretirement Medical Benefits 2023 2022 2023 2022 Prior service cost $ 2,163 $ 1,668 $ — $ — Net gain (loss) (44,195) (55,084) 1,995 1,891 Net gain (loss) before income taxes (42,032) (53,416) 1,995 1,891 Income taxes 9,464 12,207 (439) (416) Net $ (32,568) $ (41,209) $ 1,556 $ 1,475 |
Assumptions used to determine obligations and cost | Assumptions used to determine the Company’s benefit obligations are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2023 2022 2023 2022 U.S. Plans Discount rate 5.3 % 5.6 % 5.3 % 5.6 % Rate of compensation increase 2.7 % 2.7 % N/A N/A Non-U.S. Plans Discount rate 2.1 % 2.4 % N/A N/A Rate of compensation increase 1.7 % 1.8 % N/A N/A Assumptions used to determine the Company’s net periodic benefit cost are shown below: Pension Benefits Postretirement Medical Benefits Weighted average assumptions 2023 2022 2021 2023 2022 2021 U.S. Plans Discount rate 5.6 % 3.0 % 2.6 % 5.6 % 2.9 % 2.6 % Rate of compensation increase 2.7 % 2.7 % 2.7 % N/A N/A N/A Expected return on assets 7.6 % 6.3 % 6.3 % N/A N/A N/A Non-U.S. Plans Discount rate 0.4 % 0.4 % 0.4 % N/A N/A N/A Rate of compensation increase 1.3 % 1.3 % 1.3 % N/A N/A N/A Expected return on assets 1.6 % 1.0 % 1.0 % N/A N/A N/A |
Estimated future benefit payments | Estimated future benefit payments are as follows (in thousands): Pension Postretirement 2024 $ 7,165 $ 1,745 2025 6,455 1,717 2026 9,455 1,689 2027 11,380 1,697 2028 11,270 1,670 Years 2029-2033 67,316 7,974 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supplemental Lease Information | Supplemental information related to the Company's lease activities is as follows (in thousands): 2023 2022 Operating lease expense $ 11,688 $ 12,307 Operating lease payments 11,903 11,886 Non-cash additions to operating lease assets 6,141 8,859 |
Additional Information, Operating Lease, Disclosure | Additional information related to operating leases is as follows: 2023 2022 Weighted average remaining lease term (years) 3.1 3.0 Weighted average discount rate 5.13 % 3.00 % |
Lessee, Operating Lease, Liability, Maturity | As of December 29, 2023, future maturities of operating lease liabilities were as follows (in thousands): 2024 $ 8,242 2025 7,339 2026 3,552 2027 1,240 2028 612 Thereafter 616 Total lease payments $ 21,601 Present value adjustment (1,574) Operating lease liabilities $ 20,027 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Other Details | |||
Write-downs of long-lived assets | $ 0 | ||
Amortization of intangible assets | 17,600,000 | $ 18,900,000 | $ 17,900,000 |
Cash surrender value of life insurance change | 3,100,000 | 4,000,000 | $ 3,300,000 |
Self insured reserves | $ 8,700,000 | 9,300,000 | |
Sales Returns Percentage Of Sales | 3% | ||
Contract with Customer, Liability | $ 51,600,000 | 50,700,000 | |
Contract with Customer, Liability, Revenue Recognized | 49,600,000 | 60,400,000 | |
Derivative, Notional Amount | $ 62,000,000 | ||
Minimum | |||
Other Details | |||
Capitalized software estimated useful life | 2 years | ||
Maximum | |||
Other Details | |||
Capitalized software estimated useful life | 5 years | ||
Trade Accounts Receivable | |||
Other Details | |||
Accounts receivable | $ 343,000,000 | 334,000,000 | |
Other Receivables | |||
Other Details | |||
Accounts receivable | $ 11,000,000 | $ 12,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Liabilities [Abstract] | ||
Total liabilities at fair value | $ 8,242 | $ 21,276 |
Level 2 | ||
ASSETS | ||
Cash surrender value of life insurance | 22,255 | 19,192 |
Liabilities [Abstract] | ||
Deferred Compensation | 6,445 | 5,842 |
Forward exchange contracts | 422 | 520 |
Level 3 | ||
Liabilities [Abstract] | ||
Contingent consideration | $ 1,375 | $ 14,914 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Allowance for Credit Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning | $ 6,130 | $ 3,254 | $ 3,745 |
Additions (reversals) charged to costs and expenses | 1,125 | 3,567 | (27) |
Deductions from reserves | (2,711) | (633) | (676) |
Other additions (deductions) | 111 | (58) | 212 |
Balance, ending | $ 4,655 | $ 6,130 | $ 3,254 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Accounting Policies [Abstract] | ||
Prepaid income taxes | $ 14,546 | $ 18,702 |
Prepaid expenses and other | 20,524 | 24,922 |
Other current assets | $ 35,070 | $ 43,624 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | Dec. 29, 2023 |
Minimum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Minimum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Minimum | Manufacturing equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Minimum | Office, warehouse and automotive equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Maximum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Maximum | Manufacturing equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Maximum | Office, warehouse and automotive equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Goodwill by Reporting Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Goodwill Roll Forward | ||
Beginning balance | $ 368,171 | $ 356,255 |
Additions, adjustments from business acquisitions | 0 | 16,994 |
Goodwill, Impairment Loss | (7,800) | |
Foreign currency translation | 9,857 | (5,078) |
Ending balance | 370,228 | 368,171 |
Industrial | ||
Goodwill Roll Forward | ||
Beginning balance | 134,771 | 137,155 |
Additions, adjustments from business acquisitions | 0 | 0 |
Goodwill, Impairment Loss | 0 | |
Foreign currency translation | 8,361 | (2,384) |
Ending balance | 143,132 | 134,771 |
Process | ||
Goodwill Roll Forward | ||
Beginning balance | 156,366 | 141,304 |
Additions, adjustments from business acquisitions | 0 | 16,994 |
Goodwill, Impairment Loss | (7,800) | |
Foreign currency translation | 988 | (1,932) |
Ending balance | 149,554 | 156,366 |
Contractor | ||
Goodwill Roll Forward | ||
Beginning balance | 77,034 | 77,796 |
Additions, adjustments from business acquisitions | 0 | 0 |
Goodwill, Impairment Loss | 0 | |
Foreign currency translation | 508 | (762) |
Ending balance | $ 77,542 | $ 77,034 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total Other Intangible Assets, Gross | $ 269,524 | $ 292,410 |
Total Other Intangible Assets, Accumulated Amortization | (137,356) | (141,960) |
Total Other Intangible Assets, Foreign Currency Translation | (5,910) | (12,943) |
Total Other Intangible Assets, Net | 126,258 | 137,507 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2024 | 16,929 | |
2025 | 16,459 | |
2026 | 9,247 | |
2027 | 6,423 | |
2028 | 4,258 | |
Thereafter | 8,284 | |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Trade Names | 62,633 | 62,633 |
Indefinite Lived Intangible Assets, Foreign Currency Translation | 2,025 | (1,989) |
Indefinite Lived Intangible Assets, Net | 64,658 | 60,644 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets, Gross | 191,417 | 202,103 |
Finite Lived Intangible Assets, Accumulated Amortization | (128,248) | (123,603) |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (7,591) | (10,060) |
Finite Lived Intangible Assets, Net | $ 55,578 | $ 68,440 |
Finite Lived Intangible Assets, Weighted Average Useful Life | 13 years | 13 years |
Patents and Proprietary Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets, Gross | $ 14,174 | $ 26,374 |
Finite Lived Intangible Assets, Accumulated Amortization | (8,547) | (18,027) |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (344) | (894) |
Finite Lived Intangible Assets, Net | $ 5,283 | $ 7,453 |
Finite Lived Intangible Assets, Weighted Average Useful Life | 9 years | 10 years |
Trademarks, Trade Names and Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets, Gross | $ 1,300 | $ 1,300 |
Finite Lived Intangible Assets, Accumulated Amortization | (561) | (330) |
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0 | 0 |
Finite Lived Intangible Assets, Net | $ 739 | $ 970 |
Finite Lived Intangible Assets, Weighted Average Useful Life | 6 years | 6 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Components of Other Assets) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Accounting Policies [Abstract] | ||
Cash surrender value of life insurance | $ 22,255 | $ 19,192 |
Capitalized software | 2,602 | 2,189 |
Equity method investment | 9,661 | 8,767 |
Deposits and other | 3,332 | 2,970 |
Total | $ 37,850 | $ 33,118 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Components of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 |
Other Current Liabilities | |||
Accrued self-insurance retentions | $ 8,654 | $ 9,338 | |
Accrued warranty and service liabilities | 15,408 | 14,674 | $ 14,463 |
Accrued trade promotions | 14,312 | 13,799 | |
Payable for employee stock purchases | 16,639 | 16,497 | |
Customer Advances and Deferred Revenue | 51,578 | 50,747 | |
Income taxes payable | 9,837 | 15,987 | |
Tax payable, other | $ 12,289 | $ 9,614 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total | |
Operating lease liabilities, current | $ 8,242 | $ 9,555 | |
Right of return refund liability | 17,826 | 18,449 | |
Other | 30,574 | 32,133 | |
Total | $ 185,359 | $ 190,793 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Accrued Warranty Liability Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Accrued warranty and service liabilities | ||
Balance, beginning of year | $ 14,674 | $ 14,463 |
Assumed in business acquisition | 0 | 38 |
Charged to expense | 11,128 | 8,946 |
Margin on parts sales reversed | 3,875 | 3,292 |
Reductions for claims settled | (14,269) | (12,065) |
Balance, end of year | $ 15,408 | $ 14,674 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Fair Market Value and Classification of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Accounting Policies [Abstract] | ||
Foreign Currency Fair Value Hedge Asset at Fair Value | $ 26 | $ 157 |
Foreign Currency Fair Value Hedge Liability at Fair Value | (448) | (677) |
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | $ (422) | $ (520) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information | |||
Number of operating segments | 5 | ||
Number of reportable segments | 3 | ||
Major Customer | Sales | Customer Concentration Risk | |||
Segment Reporting Information | |||
Concentration Risk, Percentage | 10% | 10% | 10% |
Segment Information (Operations
Segment Information (Operations and Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information | |||
Net Sales | $ 2,195,606 | $ 2,143,521 | $ 1,987,608 |
Operating Earnings | 646,843 | 572,700 | 531,323 |
Contingent consideration | 8,600 | 0 | 0 |
Impairment | (7,800) | 0 | 0 |
Assets | 2,722,007 | 2,438,900 | |
Operating Segments | Contractor | |||
Segment Reporting Information | |||
Net Sales | 985,675 | 999,060 | 987,606 |
Operating Earnings | 285,394 | 249,833 | 266,204 |
Assets | 712,224 | 752,729 | |
Operating Segments | Industrial | |||
Segment Reporting Information | |||
Net Sales | 662,785 | 649,347 | 602,376 |
Operating Earnings | 234,054 | 231,298 | 199,856 |
Assets | 640,487 | 578,302 | |
Operating Segments | Process | |||
Segment Reporting Information | |||
Net Sales | 547,146 | 495,114 | 397,626 |
Operating Earnings | 165,273 | 122,344 | 91,037 |
Assets | 554,753 | 564,539 | |
Unallocated Corporate | |||
Segment Reporting Information | |||
Operating Earnings | (38,678) | (30,775) | (25,774) |
Contingent consideration | 8,600 | 0 | $ 0 |
Assets | $ 814,543 | $ 543,330 |
Segment Information (Geographic
Segment Information (Geographic Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Geographic Information | |||
Net Sales | $ 2,195,606 | $ 2,143,521 | $ 1,987,608 |
Long-lived Assets | 741,713 | 607,609 | |
United States | |||
Geographic Information | |||
Net Sales | 1,161,607 | 1,116,012 | 1,004,318 |
Long-lived Assets | 622,430 | 532,401 | |
Other countries | |||
Geographic Information | |||
Net Sales | 1,033,999 | 1,027,509 | $ 983,290 |
Long-lived Assets | $ 119,283 | $ 75,208 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Inventory, Net [Abstract] | ||
Finished products and components | $ 221,847 | $ 222,326 |
Products and components in various stages of completion | 131,906 | 138,957 |
Raw materials and purchased components | 202,294 | 248,636 |
Inventory gross total | 556,047 | 609,919 |
Reduction to LIFO cost | (117,698) | (133,129) |
Total | $ 438,349 | $ 476,790 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Dec. 30, 2022 |
Inventory, Net [Abstract] | ||
LIFO Inventory Amount | $ 211.4 | $ 253.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment (PPE By Type) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,206,782 | $ 1,066,476 |
Accumulated depreciation | (465,069) | (458,867) |
Net property, plant and equipment | 741,713 | 607,609 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 70,382 | 65,066 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 500,373 | 376,115 |
Manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 441,824 | 439,109 |
Office, warehouse and automotive equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 61,594 | 59,988 |
Additions in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 132,609 | $ 126,198 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation Expense | $ 55 | $ 46 | $ 40 |
Income Taxes (Income before Inc
Income Taxes (Income before Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 450,806 | $ 401,405 | $ 370,903 |
Foreign | 157,996 | 164,319 | 137,562 |
Earnings Before Income Taxes | $ 608,802 | $ 565,724 | $ 508,465 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Current Income Tax Expense (Benefit) [Abstract] | |||
Federal | $ 79,732 | $ 70,976 | $ 77,703 |
State and local | 7,282 | 5,948 | 7,493 |
Foreign | 23,779 | 38,152 | 29,975 |
Total Current | 110,793 | 115,076 | 115,171 |
Deferred Income Tax Expense (Benefit) [Abstract] | |||
Domestic | (6,919) | (8,733) | (42,413) |
Foreign | (1,583) | (1,264) | (4,159) |
Total Deferred | (8,502) | (9,997) | (46,572) |
Total Income Tax Expense | $ 102,291 | $ 105,079 | $ 68,599 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income taxes paid | $ 111.3 | $ 112.3 | $ 111.8 |
Deferred tax assets | 61.4 | 57.1 | |
Deferred tax liabilities | $ 8.2 | $ 9.4 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Federal income tax rate reconciliation | |||
Statutory tax rate | 21% | 21% | 21% |
Tax effect of international operations | (1.00%) | 1% | (1.00%) |
State taxes, net of federal effect | 1% | 1% | 1% |
U.S. general business tax credits | (1.00%) | (1.00%) | (1.00%) |
Stock compensation excess tax benefit | (1.00%) | (1.00%) | (2.00%) |
Foreign Derived Intangible Income | (2.00%) | (2.00%) | (5.00%) |
Effective tax rate | 17% | 19% | 13% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Deferred Tax Assets, Net [Abstract] | ||
Inventory valuations | $ 1,005 | $ 678 |
Accrued self-insurance retentions | 1,390 | 1,626 |
Accrued warranty and service liabilities | 2,290 | 2,279 |
Vacation accruals | 3,450 | 3,409 |
Customer allowances | 4,137 | 4,143 |
Excess of tax over book depreciation and amortization | (44,197) | (42,322) |
Pension benefit obligation | 10,063 | 6,375 |
Postretirement medical benefit obligation | 5,039 | 5,072 |
Stock compensation | 12,686 | 12,390 |
Deferred compensation | 2,205 | 2,283 |
Deferred revenue | 2,024 | 2,160 |
Deferred Tax Assets, in Process Research and Development | 23,324 | 11,370 |
Prepayments from foreign subsidiaries | 27,301 | 36,070 |
Other | 2,449 | 2,114 |
Net deferred tax assets | $ 53,166 | $ 47,647 |
Debt (Schedule of Debt Instrume
Debt (Schedule of Debt Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Debt Instrument [Line Items] | ||
Total debt, including current portion | $ 30,036 | $ 95,974 |
Series D maturing July 2026 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 5.35% | |
Debt Instrument, Maturity Date, Description | July 2023 | |
Total debt, including current portion | $ 0 | 75,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Maturity Date, Description | December 2026 | |
Total debt, including current portion | $ 0 | 0 |
Chinese Renminbi Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.79% | |
Total debt, including current portion | $ 28,099 | 14,327 |
Notes payable to banks maturing 2023 | ||
Debt Instrument [Line Items] | ||
Average interest rate | 0% | |
Debt Instrument, Maturity Date, Description | 2024 | |
Total debt, including current portion | $ 1,937 | $ 6,647 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||||||
Jun. 08, 2023 | Jun. 07, 2023 | Dec. 16, 2022 | Dec. 15, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||||
Estimated fair value of debt | $ 75,000,000 | ||||||
Maximum borrowing amount - credit facility | $ 842,000,000 | ||||||
Interest paid | 5,700,000 | $ 10,000,000 | $ 9,800,000 | ||||
Committed Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused portion of credit facility | 775,000,000 | ||||||
Shelf Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing amount - credit facility | $ 250,000,000 | $ 200,000,000 | |||||
Floating Rate Principal Maximum | $ 100,000,000 | ||||||
Line of Credit Facility, Expiration Period | 15 years | 12 years | |||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Chinese Renminbi Facility Maximum Borrowing Capacity | $ 50,000,000 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing amount - credit facility | $ 750,000,000 | $ 500,000,000 | |||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 375,000,000 | 200,000,000 | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 375,000,000 | $ 250,000,000 | |||||
Revolving Credit Facility | Committed Facility | Line of Credit | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.125% | 0% | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Minimum | Cash flow leverage ratio no acquisition | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Covenant Compliance | 1.00 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Minimum | Cash flow leverage ratio with acquisitions | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Covenant Compliance | 1.00 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Minimum | Interest coverage ratio no acquisitions | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Covenant Compliance | 1.00 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Minimum | Interest coverage ratio with acquisitions | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Covenant Compliance | 1.00 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.125% | 1% | |||||
Revolving Credit Facility | Committed Facility | Line of Credit | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.875% | 0.75% | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Maximum | Cash flow leverage ratio no acquisition | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Covenant Compliance | 3.50 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Maximum | Cash flow leverage ratio with acquisitions | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Covenant Compliance | 4.00 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Maximum | Interest coverage ratio no acquisitions | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Covenant Compliance | 3.00 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Maximum | Interest coverage ratio with acquisitions | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Covenant Compliance | 2.50 | ||||||
Revolving Credit Facility | Committed Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.875% | 1.75% | |||||
Domestic Line of Credit | Committed Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing amount - credit facility | $ 800,000,000 | ||||||
Foreign Line of Credit | Committed Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing amount - credit facility | 42,000,000 | ||||||
Foreign Line of Credit | Uncommitted Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused portion of credit facility | $ 24,000,000 | ||||||
Foreign Line of Credit | Uncommitted Facility | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Loan commitment fee percentage | 0.15% |
Debt (Annual Maturities of Debt
Debt (Annual Maturities of Debt) (Details) $ in Thousands | Dec. 29, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 30,036 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | $ 0 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 29, 2023 | Dec. 31, 2021 | |
Class of Stock | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Pension settlement losses | $ 42 | $ 12 |
Cumulative Preferred Stock | ||
Class of Stock | ||
Preferred stock authorized (in shares) | 22,549 | |
Preferred stock par value (in dollars per share) | $ 100 | |
Preferred Stock | ||
Class of Stock | ||
Preferred stock authorized (in shares) | 3,000,000 | |
Preferred stock par value (in dollars per share) | $ 1 |
Shareholders' Equity (AOCI and
Shareholders' Equity (AOCI and Reclassification) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,859,652 | $ 1,709,343 | $ 1,283,904 |
Ending balance | 2,224,225 | 1,859,652 | 1,709,343 |
Pension and Postretirement Medical | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (39,734) | (60,107) | (114,129) |
Other comprehensive income (loss) before reclassifications | (28,162) | 16,083 | 34,953 |
Amounts reclassified from accumulated other comprehensive income | 36,884 | 4,290 | 19,069 |
Ending balance | (31,012) | (39,734) | (60,107) |
Cumulative Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (29,644) | (20,062) | (10,036) |
Other comprehensive income (loss) before reclassifications | 25,661 | (9,582) | (10,026) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Ending balance | (3,983) | (29,644) | (20,062) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (69,378) | (80,169) | (124,165) |
Other comprehensive income (loss) before reclassifications | (2,501) | 6,501 | 24,927 |
Amounts reclassified from accumulated other comprehensive income | 36,884 | 4,290 | 19,069 |
Ending balance | $ (34,995) | $ (69,378) | $ (80,169) |
Share-Based Awards, Purchase _3
Share-Based Awards, Purchase Plans and Compensation Cost (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 29, 2023 USD ($) plan $ / shares shares | Dec. 30, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Apr. 30, 2019 shares | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award expiration period | 10 years | |||
Stock Appreciation Plan Expense | $ | $ 2 | $ (0.2) | $ 3.1 | |
Intrinsic value of exercisable option shares | $ | $ 329.6 | |||
Document Period End Date | Dec. 29, 2023 | |||
Exercisable option weighted average contractual term | 4 years 2 months 12 days | |||
Share options vested and expected to vest | 9,900,000 | |||
Aggregate intrinsic value of share options vested and expected to vest | $ | $ 373.2 | |||
Weighted average exercise price of share options vested and expected to vest (per share) | $ / shares | $ 49.09 | |||
Weighted average contractual term of share options vested and expected to vest | 6 years 3 months 18 days | |||
Employee stock purchase plan shares granted | 322,764 | 316,250 | 415,995 | |
Total shares authorized | 31,000,000 | |||
Available for future issuance | 16,166,000 | |||
Unrecognized compensation cost related to unvested options | $ | $ 17.3 | |||
Weighted average recognition period for unvested options | 2 years 3 months 18 days | |||
Stock Incentive Plan (2019) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total shares authorized | 10,000,000 | 10,000,000 | ||
Available for future issuance | 4,743,000 | |||
Employee Stock Purchase Plan (2006) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share purchase price as percentage of fair value | 85% | |||
Total shares authorized | 21,000,000 | |||
Available for future issuance | 11,423,000 | |||
Stock purchase plan discount percentage | 15% | |||
Previous Share-Based Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of plans replaced by subsequent plans | plan | 2 | |||
Available for future issuance | 0 | |||
Director | Stock Incentive Plan (2019) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares issued under the plan | 11,150 | 12,055 | 12,070 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award vesting period | 3 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award vesting period | 4 years |
Share-Based Awards, Purchase _4
Share-Based Awards, Purchase Plans and Compensation Cost (Option Activity and Outstanding) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | Dec. 25, 2020 | |
Options, Outstanding [Roll Forward] | ||||
Beginning (in shares) | 10,265 | 9,575 | 10,208 | |
Granted (in shares) | 1,114 | 1,381 | 843 | |
Exercised (in shares) | (1,354) | (645) | (1,309) | |
Canceled (in shares) | (121) | (46) | (167) | |
Ending (in shares) | 9,904 | 10,265 | 9,575 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning (dollars per share) | $ 44.40 | $ 39.31 | $ 35.02 | |
Granted (dollars per share) | 71.45 | 71.03 | 72.22 | |
Exercised (dollars per share) | 30.77 | 25.58 | 24.91 | |
Canceled (dollars per share) | 62.75 | 49.42 | 55.59 | |
Outstanding, ending (dollars per share) | $ 49.09 | $ 44.40 | $ 39.31 | |
Options, exercisable (in shares) | 7,274 | 7,793 | 7,296 | 6,553 |
Weighted average exercise price of exercisable options (dollars per share) | $ 41.46 | $ 37.22 | $ 33.75 | $ 28.02 |
Share-Based Awards, Purchase _5
Share-Based Awards, Purchase Plans and Compensation Cost (Options Outstanding and Exercisable By Price) (Details) shares in Thousands | 12 Months Ended |
Dec. 29, 2023 $ / shares shares | |
$10 - $30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | $ 20 |
Upper range exercise price | $ 35 |
Options Outstanding | shares | 3,107 |
Weighted Average Remaining Contractual Term in Years | 3 years 2 months 12 days |
Weighted Average Exercise Price | $ 26.85 |
Options Exercisable | shares | 3,107 |
Weighted Average Exercise Price | $ 26.85 |
$30 - $45 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 35 |
Upper range exercise price | $ 50 |
Options Outstanding | shares | 2,392 |
Weighted Average Remaining Contractual Term in Years | 5 years 9 months 18 days |
Weighted Average Exercise Price | $ 44.75 |
Options Exercisable | shares | 2,365 |
Weighted Average Exercise Price | $ 44.75 |
$45 - $60 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 50 |
Upper range exercise price | $ 65 |
Options Outstanding | shares | 1,231 |
Weighted Average Remaining Contractual Term in Years | 7 years 1 month 6 days |
Weighted Average Exercise Price | $ 55.96 |
Options Exercisable | shares | 1,084 |
Weighted Average Exercise Price | $ 55.92 |
$60 - $75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 65 |
Upper range exercise price | $ 80 |
Options Outstanding | shares | 3,174 |
Weighted Average Remaining Contractual Term in Years | 9 years 4 months 24 days |
Weighted Average Exercise Price | $ 71.48 |
Options Exercisable | shares | 718 |
Weighted Average Exercise Price | $ 71.94 |
$10 - $75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Lower range exercise price | 20 |
Upper range exercise price | $ 80 |
Options Outstanding | shares | 9,904 |
Weighted Average Remaining Contractual Term in Years | 6 years 3 months 18 days |
Weighted Average Exercise Price | $ 49.09 |
Options Exercisable | shares | 7,274 |
Weighted Average Exercise Price | $ 41.46 |
Share-Based Awards, Purchase _6
Share-Based Awards, Purchase Plans and Compensation Cost (Options Exercised) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Cash received | $ 40,708 | $ 15,739 | $ 32,610 |
Aggregate intrinsic value | 61,624 | 28,193 | 65,319 |
Tax benefit realized | $ 12,605 | $ 6,020 | $ 13,329 |
Share-Based Awards, Purchase _7
Share-Based Awards, Purchase Plans and Compensation Cost (Authorized Shares) (Details) - shares | Dec. 29, 2023 | Apr. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Total shares authorized | 31,000,000 | |
Available for future issuance | 16,166,000 | |
Stock Incentive Plan (2019) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Total shares authorized | 10,000,000 | 10,000,000 |
Available for future issuance | 4,743,000 | |
Employee Stock Purchase Plan (2006) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Total shares authorized | 21,000,000 | |
Available for future issuance | 11,423,000 |
Share-Based Awards, Purchase _8
Share-Based Awards, Purchase Plans and Compensation Cost (Share Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Share-based compensation | $ 30,229 | $ 24,695 | $ 24,931 |
Tax benefit | 3,177 | 2,319 | 1,705 |
Share-based compensation, net of tax | $ 27,052 | $ 22,376 | $ 23,226 |
Share-Based Awards, Purchase _9
Share-Based Awards, Purchase Plans and Compensation Cost (Valuation Assumptions Options) (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life in years | 6 years 8 months 12 days | 6 years 4 months 24 days | 7 years 6 months |
Interest rate | 4% | 2.70% | 0.90% |
Volatility | 26.30% | 26.20% | 25.20% |
Dividend yield | 1.30% | 1.20% | 1% |
Weighted average fair value per share | $ 21.76 | $ 19.10 | $ 17.87 |
Share-Based Awards, Purchase_10
Share-Based Awards, Purchase Plans and Compensation Cost (Valuation Assumptions ESPP) (Details) - Employee Stock - $ / shares | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life in years | 1 year | 1 year | 1 year |
Interest rate | 5.10% | 0.90% | 0.10% |
Volatility | 26.40% | 20.50% | 40.10% |
Dividend yield | 1.40% | 1.20% | 1.10% |
Weighted average fair value per share | $ 18.04 | $ 16.01 | $ 21.50 |
Earnings per Share (Schedule Of
Earnings per Share (Schedule Of Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net earnings available to common shareholders | $ 506,511 | $ 460,645 | $ 439,866 |
Weighted average shares outstanding for basic earnings per share (in shares) | 168,442 | 168,952 | 169,635 |
Dilutive effect of stock options computed based on the treasury stock method using the average market price (in shares) | 3,757 | 3,941 | 4,891 |
Weighted average shares outstanding for diluted earnings per share (in shares) | 172,199 | 172,893 | 174,526 |
Basic earnings per share (in dollars per share) | $ 3.01 | $ 2.73 | $ 2.59 |
Diluted earnings per share (in dollars per share) | $ 2.94 | $ 2.66 | $ 2.52 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 | 2.2 | 0.4 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 USD ($) | Dec. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3% | ||
Company contribution rate for employees not covered by DBP | 2% | ||
Company contributions to 401K | $ 11,500 | $ 11,000 | $ 10,000 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 147,000 | ||
Pension Plan Participants Transfered | 651 | ||
Pension settlement losses | $ 42,000 | 12,000 | |
Highest earnings years | 5 years | ||
Years preceding retirement | 10 years | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 20,000 | 20,000 | |
Accumulated benefit obligation for all defined benefit plans | 186,000 | 297,000 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 44,000 | 1,000 | 12,000 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 149,212 | 0 | |
Pension settlement losses | $ (42,169) | 0 | (12,285) |
Investments at Net Asset Value, Redemption Frequency | daily | ||
Investments at Net Asset Value, Unfunded Commitments | $ 2,300 | 2,300 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 23,066 | 22,756 | |
Expected company contributions to retirement plans next year | $ 1,700 | ||
Pension Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments at Net Asset Value, Redemption Notice Period | 10 days | ||
Pension Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments at Net Asset Value, Redemption Notice Period | 60 days | ||
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | 0 | |
Pension settlement losses | 0 | 0 | $ 0 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1,552 | $ 1,503 | |
Retirement medical plan limit on annual increase in company cost | 3% | ||
Health care cost trend rate assumed for next year | 8.20% | ||
Ultimate health care cost trend rate | 4.50% | ||
Year that rate reaches ultimate trend rate | 2038 | ||
Expected company contributions to retirement plans next year | $ 1,700 | ||
Equity | Pension Plan - Blue Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 52% | ||
Fixed income | Pension Plan - Blue Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 32% | ||
Real estate and other | Pension Plan - Blue Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 16% |
Retirement Benefits (Plan Asset
Retirement Benefits (Plan Assets by Category and Fair Value Measurement Level) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | $ 160,851 | $ 281,175 | $ 347,900 |
Investments categorized in fair value hierarchy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 37,576 | 32,514 | |
Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 123,275 | 248,661 | |
Cash and cash equivalents | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 1,425 | 351 | |
Insurance contract | Level 3 | Fair Value, Nonrecurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 36,151 | 32,163 | |
Equity | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 58,280 | 117,891 | |
U.S. Large Cap | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 40,726 | 74,838 | |
U.S. Small/Mid Cap | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 0 | 5,191 | |
International | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 17,554 | 37,862 | |
Fixed income | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | 49,595 | 93,262 | |
Real estate and other | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value, plan assets | $ 15,400 | $ 37,508 |
Retirement Benefits Retirement
Retirement Benefits Retirement Benefits (Level 3 Asset Rollforward) (Details) - Fair Value, Recurring - Pension Benefits - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of year | $ 32,163 | $ 30,926 |
Purchases | 2,593 | 2,431 |
Redemptions | (2,833) | (669) |
Unrealized gains (losses) | 4,228 | (525) |
Balance, end of year | $ 36,151 | $ 32,163 |
Retirement Benefits (Funded Sta
Retirement Benefits (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Change in benefit obligation | |||
Settlements | $ (147,000) | ||
Change in plan assets | |||
Employer contributions | 20,000 | $ 20,000 | |
Pension Benefits | |||
Change in benefit obligation | |||
Obligation, beginning of year | 315,807 | 418,051 | |
Service cost | 5,729 | 8,242 | $ 9,355 |
Interest cost | 16,535 | 10,996 | 11,409 |
Actuarial loss (gain) | 32,763 | (110,467) | |
Benefit payments | (12,103) | (9,122) | |
Plan amendments | (250) | (267) | |
Settlements | (149,212) | 0 | |
Exchange rate changes | 4,306 | (1,626) | |
Obligation, end of year | 213,575 | 315,807 | 418,051 |
Change in plan assets | |||
Fair value, beginning of year | 281,175 | 347,900 | |
Actual return on assets | 14,504 | (80,078) | |
Employer contributions | 23,066 | 22,756 | |
Benefit payments | (12,103) | (9,122) | |
Settlements | (149,212) | 0 | |
Exchange rate changes | 3,421 | (281) | |
Fair value, end of year | 160,851 | 281,175 | 347,900 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (52,724) | (34,632) | |
Postretirement Medical Benefits | |||
Change in benefit obligation | |||
Obligation, beginning of year | 22,930 | 32,122 | |
Service cost | 348 | 516 | 670 |
Interest cost | 1,165 | 839 | 832 |
Actuarial loss (gain) | (237) | (9,044) | |
Benefit payments | (1,552) | (1,503) | |
Plan amendments | 0 | ||
Settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Obligation, end of year | 22,654 | 22,930 | 32,122 |
Change in plan assets | |||
Fair value, beginning of year | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Employer contributions | 1,552 | 1,503 | |
Benefit payments | (1,552) | (1,503) | |
Settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Fair value, end of year | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (22,654) | $ (22,930) |
Retirement Benefits (Amounts Re
Retirement Benefits (Amounts Recognized in Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Amounts recognized in consolidated balance sheets | ||
Non-current liabilities | $ 80,347 | $ 61,672 |
Pension Benefits | ||
Amounts recognized in consolidated balance sheets | ||
Non-current assets | 215 | 5,398 |
Current liabilities | 1,749 | 1,860 |
Non-current liabilities | 51,190 | 38,170 |
Net | 52,724 | 34,632 |
Postretirement Medical Benefits | ||
Amounts recognized in consolidated balance sheets | ||
Non-current assets | 0 | 0 |
Current liabilities | 1,745 | 1,763 |
Non-current liabilities | 20,909 | 21,167 |
Net | $ 22,654 | $ 22,930 |
Retirement Benefits (Accumulate
Retirement Benefits (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Information for plans with accumulated benefit obligation in excess of plan assets | ||
Projected benefit obligation | $ 89,206 | $ 72,190 |
Accumulated benefit obligation | 81,701 | 69,395 |
Fair value of plan assets | $ 36,150 | $ 32,164 |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Components of net periodic benefit cost | |||
Settlement loss (gain) | $ (42,000) | $ (12,000) | |
Pension Benefits | |||
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | 5,729 | $ 8,242 | 9,355 |
Interest cost on projected benefit obligation | 16,535 | 10,996 | 11,409 |
Expected return on assets | (19,141) | (19,754) | (20,767) |
Amortization of prior service cost (credit) | 36 | 84 | 246 |
Amortization of net loss (gain) | 5,999 | 4,701 | 9,248 |
Settlement loss (gain) | 42,169 | 0 | 12,285 |
Cost of pension plans which are not significant and have not adopted ASC 715 | 368 | 284 | 368 |
Net periodic benefit cost | 51,695 | 4,553 | 22,144 |
Postretirement Medical Benefits | |||
Components of net periodic benefit cost | |||
Service cost-benefits earned during the period | 348 | 516 | 670 |
Interest cost on projected benefit obligation | 1,165 | 839 | 832 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of net loss (gain) | (133) | 345 | 1,002 |
Settlement loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost | $ 1,380 | $ 1,700 | $ 2,504 |
Retirement Benefits (Amounts _2
Retirement Benefits (Amounts recognized in other comprehensive (income) loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Pension Benefits | ||
Amounts recognized in other comprehensive (income) loss | ||
Net gain (loss) arising during the period | $ (37,132) | $ 11,189 |
Amortization of net (gain) loss | 5,999 | 4,701 |
Prior service credit (cost) arising during the period | 250 | 267 |
Settlement (gain) loss | 42,169 | 0 |
Amortization of prior service (credit) cost | 36 | 84 |
Total | 11,322 | 16,241 |
Postretirement Medical Benefits | ||
Amounts recognized in other comprehensive (income) loss | ||
Net gain (loss) arising during the period | 237 | 9,044 |
Amortization of net (gain) loss | (133) | 345 |
Prior service credit (cost) arising during the period | 0 | 0 |
Settlement (gain) loss | 0 | 0 |
Amortization of prior service (credit) cost | 0 | 0 |
Total | $ 104 | $ 9,389 |
Retirement Benefits (Amounts in
Retirement Benefits (Amounts included in accumulated other comprehensive (income) loss) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Pension Benefits | ||
Amounts recognized in accumulated ther comprehensive income | ||
Prior service cost | $ 2,163 | $ 1,668 |
Net gain (loss) | (44,195) | (55,084) |
Net before income taxes | (42,032) | (53,416) |
Income taxes | 9,464 | 12,207 |
Net | (32,568) | (41,209) |
Postretirement Medical Benefits | ||
Amounts recognized in accumulated ther comprehensive income | ||
Prior service cost | 0 | 0 |
Net gain (loss) | 1,995 | 1,891 |
Net before income taxes | 1,995 | 1,891 |
Income taxes | (439) | (416) |
Net | $ 1,556 | $ 1,475 |
Retirement Benefits (Assumption
Retirement Benefits (Assumptions used to determine obligations and cost) (Details) | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Pension Benefits | U.S. Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.30% | 5.60% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.70% | 2.70% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 5.60% | 3% | 2.60% |
Rate of compensation increase | 2.70% | 2.70% | 2.70% |
Expected return on assets | 7.60% | 6.30% | 6.30% |
Pension Benefits | Non-U.S. Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.10% | 2.40% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 1.70% | 1.80% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 0.40% | 0.40% | 0.40% |
Rate of compensation increase | 1.30% | 1.30% | 1.30% |
Expected return on assets | 1.60% | 1% | 1% |
Postretirement Medical Benefits | U.S. Plans | |||
Assumptions used to determine net period benefit obligation | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.30% | 5.60% | |
Assumptions used to determine net periodic benefit cost | |||
Discount rate | 5.60% | 2.90% | 2.60% |
Retirement Benefits (Estimated
Retirement Benefits (Estimated future benefit payments) (Details) $ in Thousands | Dec. 29, 2023 USD ($) |
Pension Benefits | |
Estimated future benefit payments | |
2024 | $ 7,165 |
2025 | 6,455 |
2026 | 9,455 |
2027 | 11,380 |
2028 | 11,270 |
Years 2029-2033 | 67,316 |
Postretirement Medical Benefits | |
Estimated future benefit payments | |
2024 | 1,745 |
2025 | 1,717 |
2026 | 1,689 |
2027 | 1,697 |
2028 | 1,670 |
Years 2029-2033 | $ 7,974 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease expense | $ 11,688 | $ 12,307 |
Operating lease payments | 11,903 | 11,886 |
Non-cash additions to operating lease assets | $ 6,141 | $ 8,859 |
Weighted average remaining lease term (years) | 3 years 1 month 6 days | 3 years |
Weighted average discount rate | 5.13% | 3% |
Future Maturities of Operating Lease Liabilities | ||
2024 | $ 8,242 | |
2025 | 7,339 | |
2026 | 3,552 | |
2027 | 1,240 | |
2028 | 612 | |
Thereafter | 616 | |
Total lease payments | 21,601 | |
Present value adjustment | (1,574) | |
Operating lease liabilities | $ 20,027 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Millions | Dec. 29, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Open purchase order commitments | $ 156 |
Maximum purchase quantities and supplier inventory commitments | 56 |
Contractual Obligation, Due in 2024 | 10 |
Contractual Obligation, Due in 2025 | 5 |
Contractual Obligation, Due in 2026 | 2 |
Contractual Obligation, Due Thereafter | 1 |
Standby letters of credit commitments | 11 |
Guarantees of subsidiary debt | $ 5 |