Document and Entity Information
| Document and Entity Information - shares | 3 Months Ended | |
| Mar. 31, 2017 | May 02, 2017 | |
| Document Information [Line Items] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Mar. 31, 2017 | |
| Document Fiscal Year Focus | 2,017 | |
| Document Fiscal Period Focus | Q1 | |
| Trading Symbol | AOS | |
| Entity Registrant Name | SMITH A O CORP | |
| Entity Central Index Key | 91,142 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Common Class A | ||
| Document Information [Line Items] | ||
| Entity Common Stock, Shares Outstanding | 26,146,675 | |
| Common Stock | ||
| Document Information [Line Items] | ||
| Entity Common Stock, Shares Outstanding | 146,888,512 |
CONDENSED CONSOLIDATED STATEMEN
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Net sales | $ 740 | $ 636.9 |
| Cost of products sold | 437.7 | 374.2 |
| Gross profit | 302.3 | 262.7 |
| Selling, general and administrative expenses | 182.1 | 159.4 |
| Interest expense | 2.2 | 1.7 |
| Other income | (2.4) | (2) |
| Earnings before income taxes | 120.4 | 103.6 |
| Provision for income taxes | 32.7 | 30.1 |
| Net Earnings | $ 87.7 | $ 73.5 |
| Net Earnings Per Share of Common Stock | $ 0.51 | $ 0.42 |
| Diluted Net Earnings Per Share of Common Stock | 0.50 | 0.41 |
| Dividends Per Share of Common Stock | $ 0.14 | $ 0.12 |
CONDENSED CONSOLIDATED STATEME3
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Net earnings | $ 87.7 | $ 73.5 |
| Other comprehensive earnings (loss) | ||
| Foreign currency translation adjustments | 7.3 | 8.6 |
| Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of ($0.7) in 2017 and $1.2 in 2016 | 1.1 | (2) |
| Adjustment to pension liability, less related income tax provision of $(1.7) in 2017 and $(1.5) in 2016 | 2.6 | 2.5 |
| Comprehensive Earnings | $ 98.7 | $ 82.6 |
CONDENSED CONSOLIDATED STATEME4
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Unrealized net gain (loss) on cash flow derivative instruments, related income tax (provision) benefit | $ (0.7) | $ 1.2 |
| Adjustment to pension liability, related income tax provision | $ (1.7) | $ (1.5) |
CONDENSED CONSOLIDATED BALANCE
| CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
| Assets | ||
| Cash and cash equivalents | $ 293.4 | $ 330.4 |
| Marketable securities | 428.9 | 424.2 |
| Receivables | 584.1 | 518.7 |
| Inventories | 257.1 | 251.1 |
| Other current assets | 42 | 37.6 |
| Total Current Assets | 1,605.5 | 1,562 |
| Property, plant and equipment | 951.6 | 932.5 |
| Less accumulated depreciation | (484) | (470.6) |
| Net property, plant and equipment | 467.6 | 461.9 |
| Goodwill | 491.8 | 491.5 |
| Other intangibles | 305.1 | 308.3 |
| Other assets | 70.2 | 67.3 |
| Total Assets | 2,940.2 | 2,891 |
| Liabilities | ||
| Trade payables | 493.5 | 528.6 |
| Accrued payroll and benefits | 58.2 | 84.3 |
| Accrued liabilities | 116.7 | 101 |
| Product warranties | 44.9 | 44.5 |
| Debt due within one year | 7.2 | 7.2 |
| Total Current Liabilities | 720.5 | 765.6 |
| Long-term debt | 362.2 | 316.4 |
| Pension liabilities | 102.4 | 109 |
| Other liabilities | 188.7 | 184.7 |
| Total Liabilities | 1,373.8 | 1,375.7 |
| Stockholders' Equity | ||
| Common Stock, value | 164.4 | 164.4 |
| Capital in excess of par value | 482.5 | 477.6 |
| Retained earnings | 1,656.4 | 1,593 |
| Accumulated other comprehensive loss | (352.2) | (363.2) |
| Treasury stock at cost | (516.1) | (488.1) |
| Total Stockholders' Equity | 1,566.4 | 1,515.3 |
| Total Liabilities and Stockholders' Equity | 2,940.2 | 2,891 |
| Common Class A | ||
| Stockholders' Equity | ||
| Common Stock, value | $ 131.4 | $ 131.6 |
CONDENSED CONSOLIDATED BALANCE6
| CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
| Common Stock, par value | $ 1 | $ 1 |
| Common Stock, shares authorized | 240,000,000 | 240,000,000 |
| Common Stock, shares issued | 164,430,537 | 164,394,241 |
| Common Class A | ||
| Common Stock, par value | $ 5 | $ 5 |
| Common Stock, shares authorized | 27,000,000 | 27,000,000 |
| Common Stock, shares issued | 26,277,055 | 26,313,351 |
CONDENSED CONSOLIDATED STATEME7
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Operating Activities | ||
| Net earnings | $ 87.7 | $ 73.5 |
| Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
| Depreciation and amortization | 16.9 | 16.2 |
| Stock based compensation expense | 5.9 | 5.1 |
| Net changes in operating assets and liabilities: | ||
| Current assets and liabilities | (119.3) | (69.7) |
| Noncurrent assets and liabilities | (2.7) | 1.4 |
| Cash (Used in) Provided by Operating Activities | (11.5) | 26.5 |
| Investing Activities | ||
| Capital expenditures | (16.8) | (19.4) |
| Investments in marketable securities | (136) | (143.5) |
| Net proceeds from sale of marketable securities | 134.9 | 132.4 |
| Cash Used in Investing Activities | (17.9) | (30.5) |
| Financing Activities | ||
| Long-term debt incurred | 45.7 | 37.4 |
| Common stock repurchases | (30.1) | (30.5) |
| Net proceeds from stock option activity | 1.2 | 0.2 |
| Dividends paid | (24.4) | (21.2) |
| Cash Used In Financing Activities | (7.6) | (14.1) |
| Net decrease in cash and cash equivalents | (37) | (18.1) |
| Cash and cash equivalents - beginning of period | 330.4 | 323.6 |
| Cash and Cash Equivalents - End of Period | $ 293.4 | $ 305.5 |
Basis of Presentation
| Basis of Presentation | 3 Months Ended |
| Mar. 31, 2017 | |
| Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2017 are not necessarily indicative of the results expected for the full year. It is suggested that the accompanying condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on February 17, 2017. Recent Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (FASB) amended Accounting Standards Codification (ASC) 715, Compensation – Retirement Benefits In January 2017, the FASB amended ASC 350, Intangibles – Goodwill and Other In October 2016, the FASB amended ASC 740, Income Taxes In August 2016, the FASB amended ASC 230, Statement of Cash Flows In February 2016, the FASB amended ASC 842, Leases In May 2014, the FASB issued ASC 606-10, Revenue from Contracts with Customers |
Acquisitions
| Acquisitions | 3 Months Ended |
| Mar. 31, 2017 | |
| Acquisitions | 2. Acquisitions On August 8, 2016, the Company acquired 100 percent of the shares of Aquasana, Inc. (Aquasana), a Texas-based water treatment company. With the addition of Aquasana, the Company entered the U.S. water treatment market. Aquasana is included in the Company’s North America segment for reporting purposes. The Company paid an aggregate cash purchase price of $85.1 million, net of $1.9 million of cash acquired. In addition, the Company incurred acquisition-related costs of approximately $1.2 million and recorded contingent consideration and a holdback of $1.7 million, the fair value of the contingent consideration due to the former owners of Aquasana as of the date of the acquisition. As of March 31, 2017, the fair value of the contingent consideration and holdback is valued at $1.7 million. The following table summarizes the allocation of the fair value of the assets acquired and liabilities assumed at the date of acquisition. The $30.0 million of acquired intangible assets was comprised of $21.5 million of trade names that are not subject to amortization, $8.3 million of customer lists being amortized over ten years and $0.2 million of patents being amortized over five years. August 8, 2016 (dollars in millions) Current assets, net of cash acquired $ 7.3 Property, plant and equipment 2.7 Intangible assets 30.0 Goodwill 60.4 Total assets acquired 100.4 Current liabilities (7.1 ) Long-term liabilities (8.2 ) Total liabilities assumed (15.3 ) Net assets acquired $ 85.1 The acquisition was accounted for using the purchase method of accounting, and accordingly, the results of operations have been included in the Company’s consolidated financial statements from August 8, 2016, the date of acquisition. On August 26, 2016, the Company acquired certain assets, primarily inventory, and assumed a lease of a small electric water heater manufacturer serving the North America market. The Company paid a cash purchase price of $5.7 million for the assets. Under the purchase agreement, the Company agreed to make additional contingent payments related to the acquired assets if certain conditions are met over the next ten years. As of the acquisition date and March 31, 2017, the Company estimated the fair value of the contingent payments at $5.2 million and has a liability recorded for the contingent consideration totaling that amount. |
Inventories
| Inventories | 3 Months Ended |
| Mar. 31, 2017 | |
| Inventories | 3. Inventories (dollars in millions) March 31, 2017 December 31, 2016 Finished products $ 116.8 $ 114.1 Work in process 15.8 13.0 Raw materials 142.9 142.4 Inventories, at FIFO cost 275.5 269.5 LIFO reserve (18.4 ) (18.4 ) Net inventory $ 257.1 $ 251.1 |
Product Warranties
| Product Warranties | 3 Months Ended |
| Mar. 31, 2017 | |
| Product Warranties | 4. Product Warranties The Company offers warranties on the sales of certain of its products and records an accrual for the estimated future claims. The following table presents the Company’s warranty liability activity. (dollars in millions) 2017 2016 Balance at January 1 $ 140.9 $ 139.4 Expense 12.4 12.5 Claims settled (10.7 ) (11.3 ) Balance at March 31 $ 142.6 $ 140.6 |
Long-Term Debt
| Long-Term Debt | 3 Months Ended |
| Mar. 31, 2017 | |
| Long-Term Debt | 5. Long-Term Debt The Company has a $500 million multi-year multi-currency revolving credit agreement with a group of nine banks, which expires on December 15, 2021. The facility has an accordion provision which allows it to be increased up to $700 million if certain conditions (including lender approval) are satisfied. Borrowings under bank credit lines and commercial paper borrowings are supported by the $500 million revolving credit agreement. As a result of the long-term nature of this facility, the Company’s commercial paper and credit line borrowings are classified as long-term debt at March 31, 2017. At its option, the Company either maintains cash balances or pays fees for bank credit and services. On November 28, 2016, the Company issued an aggregate of $45 million in term notes in two tranches to two insurance companies. Principal payments commence in 2023 and 2028 and the notes mature in 2029 and 2034, respectively. The notes have interest rates of 2.87 percent and 3.10 percent, respectively. The proceeds received from the issuance of the notes were used to pay down borrowings under the Company’s revolving credit facility. |
Earnings per Share of Common St
| Earnings per Share of Common Stock | 3 Months Ended |
| Mar. 31, 2017 | |
| Earnings per Share of Common Stock | 6. Earnings per Share of Common Stock The numerator for the calculation of basic and diluted earnings per share is net earnings. The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations: Three Months Ended March 31, 2017 2016 Denominator for basic earnings per share - weighted average shares 173,380,076 175,694,006 Effect of dilutive stock options, restricted stock and share units 2,039,843 2,116,716 Denominator for diluted earnings per share 175,419,919 177,810,722 |
Stock Based Compensation
| Stock Based Compensation | 3 Months Ended |
| Mar. 31, 2017 | |
| Stock Based Compensation | 7. Stock Based Compensation The Company adopted the A. O. Smith Combined Incentive Compensation Plan (the “Plan”) effective January 1, 2007. The Plan was reapproved by stockholders on April 16, 2012. The Plan is a continuation of the A. O. Smith Combined Executive Incentive Compensation Plan which was originally approved by stockholders in 2002. The number of shares available for granting of options or share units at March 31, 2017 was 2,902,594. Upon stock option exercise or share unit vesting, shares are issued from treasury stock. Total stock based compensation expense recognized in the three months ended March 31, 2017 and 2016 was $5.9 million and $5.1 million, respectively. Stock Options The stock options granted in the three months ended March 31, 2017 and 2016 have three year pro rata vesting from the date of grant. Stock options are issued at exercise prices equal to the fair value of the Company’s Common Stock on the date of grant. For active employees, all options granted in 2017 and 2016 expire ten years after date of grant. The Company’s stock options are expensed ratably over the three year vesting period; however, included in stock option expense for the three months ended March 31, 2017 and 2016 was expense associated with the accelerated vesting of stock option awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period. Stock based compensation expense attributable to stock options in the three months ended March 31, 2017 and 2016 was $2.9 million and $2.5 million, respectively. Changes in option shares, all of which relate to the Company’s Common Stock, were as follows for the three months ended March 31, 2017: Weighted-Avg. Number of Average Aggregate Outstanding at January 1, 2017 $ 21.69 2,664,333 Granted 50.16 358,150 Exercised 23.32 (222,192 ) Terminated 31.39 (1,360 ) Outstanding at March 31, 2017 25.19 2,798,931 8 years $ 72.7 Exercisable at March 31, 2017 18.68 1,911,832 7 years $ 62.1 The weighted-average fair value per option at the date of grant during the three months ended March 31, 2017 and 2016 using the Black-Scholes option-pricing model was $13.04 and $7.89, respectively. Assumptions were as follows: Three Months Ended March 31, 2017 2016 Expected life (years) 5.7 5.8 Risk-free interest rate 2.4 % 1.7 % Dividend yield 1.0 % 1.3 % Expected volatility 26.5 % 27.8 % The expected lives of options for purposes of these models are based on historical exercise behavior. The risk-free interest rates for purposes of these models are based on the U.S. Treasury yield curve in effect on the date of grant for the respective expected lives of the option. The expected dividend yields for purposes of these models are based on the dividends paid in the preceding four quarters divided by the grant date market value of the Common Stock. The expected volatility for purposes of these models are based on the historical volatility of the Common Stock. Stock Appreciations Rights (SARs) Certain non-U.S.-based Restricted Stock and Share Units Participants may also be awarded shares of restricted stock or share units under the Plan. The Company granted 107,755 and 155,154 share units under the plan in the three months ended March 31, 2017 and 2016, respectively. The share units were valued at $5.4 million and $4.9 million at the date of issuance in 2017 and 2016, respectively, based on the price of the Company’s Common Stock at the date of grant. The share units are recognized as compensation expense ratably over the three-year vesting period; however, included in share unit expense in the three months ended March 31, 2017 and 2016 was expense associated with accelerated vesting of share unit awards for certain employees who either are retirement eligible or will become retirement eligible during the vesting period. Stock based compensation expense attributable to share units of $3.0 million and $2.6 million was recognized in the three months ended March 31, 2017 and 2016, respectively. Certain non-U.S.-based employees receive the cash value of vested shares at the vesting date in lieu of shares. A summary of share unit activity under the plan is as follows for the three months ended March 31, 2017: Number of Units Weighted-Average Issued and unvested at January 1, 2017 544,055 $ 27.35 Granted 107,755 50.16 Vested (213,273 ) 23.24 Forfeited (2,060 ) 31.22 Issued and unvested at March 31, 2017 436,477 34.97 |
Pensions
| Pensions | 3 Months Ended |
| Mar. 31, 2017 | |
| Pensions | 8. Pensions The following table presents the components of the Company’s net pension income. (dollars in millions) Three Months Ended March 31, 2017 2016 Service cost $ 0.4 $ 0.5 Interest cost 7.5 7.6 Expected return on plan assets (14.4 ) (13.8 ) Amortization of unrecognized loss 4.5 4.3 Amortization of prior service cost (0.1 ) (0.3 ) Defined benefit plan income $ (2.1 ) $ (1.7 ) The Company was not required to make a contribution to its U.S. pension plan in 2016 but made a voluntary $30 million contribution. The Company is not required to make a contribution and does not anticipate making a contribution in 2017. |
Operations by Segment
| Operations by Segment | 3 Months Ended |
| Mar. 31, 2017 | |
| Operations by Segment | 9. Operations by Segment The Company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas, gas tankless and electric water heaters as well as water treatment products. Both segments primarily manufacture and market in their respective regions of the world. The North America segment also manufactures and globally markets specialty commercial water heating equipment, condensing and non-condensing in-home The following table presents the Company’s results of operations by segment: (dollars in millions) Three Months Ended March 31, 2017 2016 Net sales North America $ 487.3 $ 423.9 Rest of World 259.5 217.4 Inter-segment sales (6.8 ) (4.4 ) $ 740.0 $ 636.9 Operating earnings North America $ 104.2 $ 91.9 Rest of World 32.5 26.9 Inter-segment earnings elimination (0.1 ) (0.1 ) 136.6 118.7 Corporate expenses (14.0 ) (13.4 ) Interest expense (2.2 ) (1.7 ) Earnings before income taxes 120.4 103.6 Provision for income taxes 32.7 30.1 Net earnings $ 87.7 $ 73.5 |
Fair Value Measurements
| Fair Value Measurements | 3 Months Ended |
| Mar. 31, 2017 | |
| Fair Value Measurements | 10. Fair Value Measurements ASC 820, Fair Value Measurements Assets and liabilities measured at fair value are based on the market approach which are prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The following table presents assets measured at fair value on a recurring basis. (dollars in millions) Fair Value Measurement Using March 31, 2017 December 31, 2016 Quoted prices in active markets for identical assets (Level 1) $ 429.0 $ 424.5 There were no changes in the Company’s valuation techniques used to measure fair values on a recurring basis during the three months ended March 31, 2017. |
Derivative Instruments
| Derivative Instruments | 3 Months Ended |
| Mar. 31, 2017 | |
| Derivative Instruments | 11. Derivative Instruments ASC 815, Derivatives and Hedging The Company designates that all of its hedging instruments are cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive loss, net of tax, and is reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The amount by which the cumulative change in the value of the hedge more than offsets the cumulative change in the value of the hedged item (i.e., the ineffective portion) is recorded in earnings, net of tax, in the period the ineffectiveness occurs. The Company utilizes certain derivative instruments to enhance its ability to manage currency exposure as well as raw materials price risk. Derivative instruments are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The Company does not enter into contracts for speculative purposes. The contracts are executed with major financial institutions with no credit loss anticipated for failure of the counterparties to perform. Foreign Currency Forward Contracts The Company is exposed to foreign currency exchange risk as a result of transactions in currencies other than the functional currency of certain subsidiaries. The Company utilizes foreign currency forward purchase and sale contracts to manage the volatility associated with foreign currency purchases, sales and certain intercompany transactions in the normal course of business. Currencies for which the Company utilizes foreign currency forward contracts include the British pound, Canadian dollar, Euro and Mexican peso. Gains and losses on these instruments are recorded in accumulated other comprehensive loss, net of tax, until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to the consolidated statement of earnings. The assessment of effectiveness for forward contracts is based on changes in the forward rates. These hedges have been determined to be effective. The majority of the amounts in accumulated other comprehensive loss for cash flow hedges are expected to be reclassified into earnings within one year. The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts. (dollars in millions) March 31, 2017 2016 Buy Sell Buy Sell British pound $ — $ 0.9 $ — $ 0.8 Canadian dollar — 58.8 — 84.3 Euro 19.1 1.4 17.6 1.3 Mexican peso 13.7 — 16.2 — Total $ 32.8 $ 61.1 $ 33.8 $ 86.4 Commodity Futures Contracts In addition to entering into supply arrangements in the normal course of business, the Company also entered into futures contracts to fix the cost of certain raw material purchases, principally copper and steel, with the objective of minimizing changes in cost due to market price fluctuations. The Company’s hedging strategy for achieving this objective is to purchase commodities futures contracts on the open market of the London Metals Exchange (LME) or over the counter contracts based on the LME for copper. Steel futures contracts are purchased on the New York Metals Exchange (NYMEX). With NYMEX, the Company is required to make cash deposits on unrealized losses on steel derivative contracts. The after-tax after-tax The following tables present the impact of derivative contracts on the Company’s financial statements. Fair value of derivatives designated as hedging instruments under ASC 815: (dollars in millions) Balance Sheet Location March 31, December 31, Foreign currency contracts Other current assets $ 1.0 $ 1.9 Accrued liabilities — (2.0 ) Commodities contracts Other current assets 1.3 0.8 Accrued liabilities (0.2 ) (0.3 ) Total derivatives designated as hedging instruments $ 2.1 $ 0.4 The effect of derivatives instruments on the condensed consolidated statement of earnings: Three Months Ended March 31 (dollars in millions): Derivatives in ASC 815 cash flow hedging relationships Amount of gain Location of Amount of gain Location of Amount of 2017 2016 2017 2016 2017 2016 Foreign currency contracts $ 1.1 $ (3.8 ) Cost of $ — $ 0.3 N/A $ — $ — Commodities contracts — 1.1 Cost of (0.5 ) 0.3 Cost of — — $ 1.1 $ (2.7 ) $ (0.5 ) $ 0.6 $ — $ — |
Income Taxes
| Income Taxes | 3 Months Ended |
| Mar. 31, 2017 | |
| Income Taxes | 12. Income Taxes The effective income tax rate for the three months ended March 31, 2017 was 27.2 percent compared to 29.0 percent for the three months ended March 31, 2016. The Company estimates that its annual effective income tax rate for the full year 2017 will be approximately 28.75 percent to 29 percent, assuming no material changes to existing tax codes. The full year effective income tax rate in 2016 was 29.4 percent. The lower effective income tax rate for the three months ended March 31, 2017 compared to the anticipated full year 2017 effective income tax rate and the effective income tax rate for the three months ended March 31, 2016 was primarily due to the recognition of larger discrete income tax benefits associated with excess tax benefits on settled stock based compensation awards. The effective income tax rate in the three months ended March 31, 2017 benefitted from a more favorable geographic earnings mix compared to the same period last year. The Company anticipates a more favorable geographic earnings mix for the full year 2017 compared to 2016. As of March 31, 2017, the Company had $4.2 million of unrecognized tax benefits of which $0.6 million would affect its effective income tax rate if recognized. The Company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company’s U.S. federal income tax returns for 2014-2016 are subject to audit. The Company is subject to state and local income tax audits for tax years 2001-2016. The Company is subject to non-U.S. |
Changes in Accumulated Other Co
| Changes in Accumulated Other Comprehensive Loss by Component | 3 Months Ended |
| Mar. 31, 2017 | |
| Changes in Accumulated Other Comprehensive Loss by Component | 13. Changes in Accumulated Other Comprehensive Loss by Component Changes to accumulated other comprehensive loss by component are as follows: (dollars in millions) Three Months Ended March 31, 2017 2016 Cumulative foreign currency translation Balance at beginning of period $ (79.2 ) $ (39.4 ) Other comprehensive income before reclassifications 7.3 8.6 Balance at end of period (71.9 ) (30.8 ) Unrealized net gain on cash flow derivatives Balance at beginning of period 0.2 1.2 Other comprehensive income (loss) before reclassifications 0.8 (1.6 ) Realized gains (losses) on derivatives reclassified to cost of products sold (net of income tax (benefit) provision of ($0.2) and $0.2 in 2017 and 2016, respectively) 0.3 (0.4 ) Balance at end of period 1.3 (0.8 ) Pension liability Balance at beginning of period (284.2 ) (275.2 ) Amounts reclassified from accumulated other comprehensive loss: (1) 2.6 2.5 Balance at end of period (281.6 ) (272.7 ) Accumulated other comprehensive loss, end of period $ (352.2 ) $ (304.3 ) (1) Actuarial losses $ 4.5 (2) $ 4.3 (2) Prior year service cost (0.1 ) (2) (0.3 ) (2) 4.4 4.0 Income tax benefit (1.8 ) (1.5 ) Reclassification net of income tax benefit $ 2.6 $ 2.5 (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 8 - Pensions for additional details |
Basis of Presentation (Policies
| Basis of Presentation (Policies) | 3 Months Ended |
| Mar. 31, 2017 | |
| Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (FASB) amended Accounting Standards Codification (ASC) 715, Compensation – Retirement Benefits In January 2017, the FASB amended ASC 350, Intangibles – Goodwill and Other In October 2016, the FASB amended ASC 740, Income Taxes In August 2016, the FASB amended ASC 230, Statement of Cash Flows In February 2016, the FASB amended ASC 842, Leases In May 2014, the FASB issued ASC 606-10, Revenue from Contracts with Customers |
Acquisitions (Tables)
| Acquisitions (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Summary of Preliminary Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition | The following table summarizes the allocation of the fair value of the assets acquired and liabilities assumed at the date of acquisition. The $30.0 million of acquired intangible assets was comprised of $21.5 million of trade names that are not subject to amortization, $8.3 million of customer lists being amortized over ten years and $0.2 million of patents being amortized over five years. August 8, 2016 (dollars in millions) Current assets, net of cash acquired $ 7.3 Property, plant and equipment 2.7 Intangible assets 30.0 Goodwill 60.4 Total assets acquired 100.4 Current liabilities (7.1 ) Long-term liabilities (8.2 ) Total liabilities assumed (15.3 ) Net assets acquired $ 85.1 |
Inventories (Tables)
| Inventories (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Schedule of Inventories | (dollars in millions) March 31, 2017 December 31, 2016 Finished products $ 116.8 $ 114.1 Work in process 15.8 13.0 Raw materials 142.9 142.4 Inventories, at FIFO cost 275.5 269.5 LIFO reserve (18.4 ) (18.4 ) Net inventory $ 257.1 $ 251.1 |
Product Warranties (Tables)
| Product Warranties (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Schedule of Product Warranty Liability Activity | The following table presents the Company’s warranty liability activity. (dollars in millions) 2017 2016 Balance at January 1 $ 140.9 $ 139.4 Expense 12.4 12.5 Claims settled (10.7 ) (11.3 ) Balance at March 31 $ 142.6 $ 140.6 |
Earnings per Share of Common 25
| Earnings per Share of Common Stock (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Schedule of Computation of Basic and Diluted Weighted Average Shares Used in EPS Calculations | The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations: Three Months Ended March 31, 2017 2016 Denominator for basic earnings per share - weighted average shares 173,380,076 175,694,006 Effect of dilutive stock options, restricted stock and share units 2,039,843 2,116,716 Denominator for diluted earnings per share 175,419,919 177,810,722 |
Stock Based Compensation (Table
| Stock Based Compensation (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Schedule of Changes in Option Shares | Changes in option shares, all of which relate to the Company’s Common Stock, were as follows for the three months ended March 31, 2017: Weighted-Avg. Number of Average Aggregate Outstanding at January 1, 2017 $ 21.69 2,664,333 Granted 50.16 358,150 Exercised 23.32 (222,192 ) Terminated 31.39 (1,360 ) Outstanding at March 31, 2017 25.19 2,798,931 8 years $ 72.7 Exercisable at March 31, 2017 18.68 1,911,832 7 years $ 62.1 |
| Schedule of Weighted Average Fair Value per Option at Date of Grant | The weighted-average fair value per option at the date of grant during the three months ended March 31, 2017 and 2016 using the Black-Scholes option-pricing model was $13.04 and $7.89, respectively. Assumptions were as follows: Three Months Ended March 31, 2017 2016 Expected life (years) 5.7 5.8 Risk-free interest rate 2.4 % 1.7 % Dividend yield 1.0 % 1.3 % Expected volatility 26.5 % 27.8 % |
| Schedule of Share Unit Activity Under Plan | A summary of share unit activity under the plan is as follows for the three months ended March 31, 2017: Number of Units Weighted-Average Issued and unvested at January 1, 2017 544,055 $ 27.35 Granted 107,755 50.16 Vested (213,273 ) 23.24 Forfeited (2,060 ) 31.22 Issued and unvested at March 31, 2017 436,477 34.97 |
Pensions (Tables)
| Pensions (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Schedule of Components of Net Pension Income | The following table presents the components of the Company’s net pension income. (dollars in millions) Three Months Ended March 31, 2017 2016 Service cost $ 0.4 $ 0.5 Interest cost 7.5 7.6 Expected return on plan assets (14.4 ) (13.8 ) Amortization of unrecognized loss 4.5 4.3 Amortization of prior service cost (0.1 ) (0.3 ) Defined benefit plan income $ (2.1 ) $ (1.7 ) |
Operations by Segment (Tables)
| Operations by Segment (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Schedule of Operating Earnings | The following table presents the Company’s results of operations by segment: (dollars in millions) Three Months Ended March 31, 2017 2016 Net sales North America $ 487.3 $ 423.9 Rest of World 259.5 217.4 Inter-segment sales (6.8 ) (4.4 ) $ 740.0 $ 636.9 Operating earnings North America $ 104.2 $ 91.9 Rest of World 32.5 26.9 Inter-segment earnings elimination (0.1 ) (0.1 ) 136.6 118.7 Corporate expenses (14.0 ) (13.4 ) Interest expense (2.2 ) (1.7 ) Earnings before income taxes 120.4 103.6 Provision for income taxes 32.7 30.1 Net earnings $ 87.7 $ 73.5 |
Fair Value Measurements (Tables
| Fair Value Measurements (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Schedule of Assets Measured at Fair Value on Recurring Basis | The following table presents assets measured at fair value on a recurring basis. (dollars in millions) Fair Value Measurement Using March 31, 2017 December 31, 2016 Quoted prices in active markets for identical assets (Level 1) $ 429.0 $ 424.5 |
Derivative Instruments (Tables)
| Derivative Instruments (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Schedule of Effect of Derivatives Instruments on Condensed Consolidated Statement of Earnings | The effect of derivatives instruments on the condensed consolidated statement of earnings: Three Months Ended March 31 (dollars in millions): Derivatives in ASC 815 cash flow hedging relationships Amount of gain Location of Amount of gain Location of Amount of 2017 2016 2017 2016 2017 2016 Foreign currency contracts $ 1.1 $ (3.8 ) Cost of $ — $ 0.3 N/A $ — $ — Commodities contracts — 1.1 Cost of (0.5 ) 0.3 Cost of — — $ 1.1 $ (2.7 ) $ (0.5 ) $ 0.6 $ — $ — |
| Designated as Hedging Instrument | |
| Schedule of Summary by Currency of Foreign Currency Forward Contracts | The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts. (dollars in millions) March 31, 2017 2016 Buy Sell Buy Sell British pound $ — $ 0.9 $ — $ 0.8 Canadian dollar — 58.8 — 84.3 Euro 19.1 1.4 17.6 1.3 Mexican peso 13.7 — 16.2 — Total $ 32.8 $ 61.1 $ 33.8 $ 86.4 |
| Schedule of Impact of Cash Flow Hedges on Company's Financial Statements | The following tables present the impact of derivative contracts on the Company’s financial statements. Fair value of derivatives designated as hedging instruments under ASC 815: (dollars in millions) Balance Sheet Location March 31, December 31, Foreign currency contracts Other current assets $ 1.0 $ 1.9 Accrued liabilities — (2.0 ) Commodities contracts Other current assets 1.3 0.8 Accrued liabilities (0.2 ) (0.3 ) Total derivatives designated as hedging instruments $ 2.1 $ 0.4 |
Changes in Accumulated Other 31
| Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 3 Months Ended |
| Mar. 31, 2017 | |
| Changes to Accumulated Other Comprehensive Loss by Component | Changes to accumulated other comprehensive loss by component are as follows: (dollars in millions) Three Months Ended March 31, 2017 2016 Cumulative foreign currency translation Balance at beginning of period $ (79.2 ) $ (39.4 ) Other comprehensive income before reclassifications 7.3 8.6 Balance at end of period (71.9 ) (30.8 ) Unrealized net gain on cash flow derivatives Balance at beginning of period 0.2 1.2 Other comprehensive income (loss) before reclassifications 0.8 (1.6 ) Realized gains (losses) on derivatives reclassified to cost of products sold (net of income tax (benefit) provision of ($0.2) and $0.2 in 2017 and 2016, respectively) 0.3 (0.4 ) Balance at end of period 1.3 (0.8 ) Pension liability Balance at beginning of period (284.2 ) (275.2 ) Amounts reclassified from accumulated other comprehensive loss: (1) 2.6 2.5 Balance at end of period (281.6 ) (272.7 ) Accumulated other comprehensive loss, end of period $ (352.2 ) $ (304.3 ) (1) Actuarial losses $ 4.5 (2) $ 4.3 (2) Prior year service cost (0.1 ) (2) (0.3 ) (2) 4.4 4.0 Income tax benefit (1.8 ) (1.5 ) Reclassification net of income tax benefit $ 2.6 $ 2.5 (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 8 - Pensions for additional details |
Acquisitions - Additional Infor
| Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Aug. 26, 2016 | Aug. 08, 2016 | Mar. 31, 2017 |
| Aquasana | |||
| Business Acquisition [Line Items] | |||
| Percentage of ownership interest acquired | 100.00% | ||
| Aggregate cash purchase price, net of cash acquired | $ 85.1 | ||
| Cash acquired from business acquisition | 1.9 | ||
| Acquisition-related costs | 1.2 | ||
| Contingent consideration | 1.7 | $ 1.7 | |
| Acquired intangible assets | 30 | ||
| Aquasana | Trade Names | |||
| Business Acquisition [Line Items] | |||
| Acquired intangible assets, not subject to amortization | 21.5 | ||
| Aquasana | Customer Lists | |||
| Business Acquisition [Line Items] | |||
| Acquired intangible assets, subject to amortization | $ 8.3 | ||
| Acquired intangible assets, amortization period, in years | 10 years | ||
| Aquasana | Patents | |||
| Business Acquisition [Line Items] | |||
| Acquired intangible assets, subject to amortization | $ 0.2 | ||
| Acquired intangible assets, amortization period, in years | 5 years | ||
| Electric Water Heater Manufacturer | |||
| Business Acquisition [Line Items] | |||
| Aggregate cash purchase price, net of cash acquired | $ 5.7 | ||
| Contingent consideration | $ 5.2 | ||
| Contingent consideration, conditions measurement period | 10 years |
Summary of Preliminary Allocati
| Summary of Preliminary Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Aug. 08, 2016 |
| Business Acquisition [Line Items] | |||
| Goodwill | $ 491.8 | $ 491.5 | |
| Aquasana | |||
| Business Acquisition [Line Items] | |||
| Current assets, net of cash acquired | $ 7.3 | ||
| Property, plant and equipment | 2.7 | ||
| Intangible assets | 30 | ||
| Goodwill | 60.4 | ||
| Total assets acquired | 100.4 | ||
| Current liabilities | (7.1) | ||
| Long-term liabilities | (8.2) | ||
| Total liabilities assumed | (15.3) | ||
| Net assets acquired | $ 85.1 |
Schedule of Inventories (Detail
| Schedule of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
| Inventories | ||
| Finished products | $ 116.8 | $ 114.1 |
| Work in process | 15.8 | 13 |
| Raw materials | 142.9 | 142.4 |
| Inventories, at FIFO cost | 275.5 | 269.5 |
| LIFO reserve | (18.4) | (18.4) |
| Net inventory | $ 257.1 | $ 251.1 |
Company's Warranty Liability Ac
| Company's Warranty Liability Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Product Warranties | ||
| Balance at beginning of year | $ 140.9 | $ 139.4 |
| Expense | 12.4 | 12.5 |
| Claims settled | (10.7) | (11.3) |
| Balance at end of year | $ 142.6 | $ 140.6 |
Long-Term Debt - Additional Inf
| Long-Term Debt - Additional Information (Detail) | Nov. 28, 2016USD ($) | Mar. 31, 2017USD ($)lender |
| Debt Instrument [Line Items] | ||
| Multi-currency revolving credit agreement | $ 500,000,000 | |
| Number of banks involved in multi-year multi-currency revolving credit agreement | lender | 9 | |
| Revolving credit facility, expiration date | Dec. 15, 2021 | |
| Multi-currency revolving credit agreement, maximum amount | $ 700,000,000 | |
| November 2016 Term Notes with Insurance Companies | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, issued | $ 45,000,000 | |
| Debt instrument, number of tranches | 2 | |
| November 2016 Term Notes with Insurance Companies | Tranche One | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, principle repayment commencement year | 2,023 | |
| Debt instrument, maturity year | 2,029 | |
| Debt instrument, interest rate | 2.87% | |
| November 2016 Term Notes with Insurance Companies | Tranche Two | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, principle repayment commencement year | 2,028 | |
| Debt instrument, maturity year | 2,034 | |
| Debt instrument, interest rate | 3.10% |
Schedule of Computation of Basi
| Schedule of Computation of Basic and Diluted Weighted-Average Shares Used in Earnings per Share Calculations (Detail) - shares | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Earnings Per Share Of Common Stock | ||
| Denominator for basic earnings per share - weighted average shares | 173,380,076 | 175,694,006 |
| Effect of dilutive stock options, restricted stock and share units | 2,039,843 | 2,116,716 |
| Denominator for diluted earnings per share | 175,419,919 | 177,810,722 |
Stock Based Compensation - Addi
| Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
| Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Total stock based compensation cost recognized | $ 5.9 | $ 5.1 | |
| Stock option compensation recognized | $ 2.9 | $ 2.5 | |
| Weighted-average fair value per option at the date of grant | $ 13.04 | $ 7.89 | |
| Number of Options, outstanding | 2,798,931 | 2,664,333 | |
| Number of options, exercisable at end of period | 1,911,832 | ||
| Number of options, exercised | 222,192 | ||
| Number of options, terminated | 1,360 | ||
| Employee Stock Option | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Award vesting period | 3 years | 3 years | |
| Award expiration period | 10 years | 10 years | |
| Stock Appreciation Rights (SARs) | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Award vesting period | 3 years | ||
| Award expiration period | 10 years | ||
| Number of Options, outstanding | 23,660 | ||
| Number of options, exercisable at end of period | 14,818 | ||
| Number of Options, granted | 0 | 0 | |
| Number of options, exercised | 427 | ||
| Number of options, terminated | 853 | ||
| Restricted Stock And Share Units | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Award vesting period | 3 years | 3 years | |
| Number of Units - Granted | 107,755 | 155,154 | |
| Value of share units at the date of issuance | $ 5.4 | $ 4.9 | |
| Share based compensation expense attributable to share units | $ 3 | $ 2.6 | |
| A.O. Smith Combined Compensation Plan | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Number of shares available for granting of options, restricted stock or share units | 2,902,594 | ||
Changes in Option Awards All of
| Changes in Option Awards All of Which Related to Common Stock (Detail) $ / shares in Units, $ in Millions | 3 Months Ended |
| Mar. 31, 2017USD ($)$ / sharesshares | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Weighted-Average Per Share Exercise Price, beginning period | $ / shares | $ 21.69 |
| Weighted-Average Per Share Exercise Price - Granted | $ / shares | 50.16 |
| Weighted-Average Per Share Exercise Price - Exercised | $ / shares | 23.32 |
| Weighted-Average Per Share Exercise Price - Terminated | $ / shares | 31.39 |
| Weighted-Average Per Share Exercise Price, ending period | $ / shares | 25.19 |
| Weighted-Average Per Share Exercise Price, Exercisable | $ / shares | $ 18.68 |
| Number of Options Outstanding, Beginning Balance | shares | 2,664,333 |
| Number of Options, Granted | shares | 358,150 |
| Number of Options, Exercised | shares | (222,192) |
| Number of Options, Terminated | shares | (1,360) |
| Number of Options Outstanding, Ending Balance | shares | 2,798,931 |
| Number of options, exercisable at end of period | shares | 1,911,832 |
| Average Remaining Contractual Life, Outstanding at End of Period, Years | 8 years |
| Average Remaining Contractual Life, Exercisable at End of Period, Years | 7 years |
| Aggregate Intrinsic Value, Outstanding at End of Period | $ | $ 72.7 |
| Aggregate Intrinsic Value, Exercisable at End of Period | $ | $ 62.1 |
Schedule of Weighted-Average Fa
| Schedule of Weighted-Average Fair Value per Option at Date of Grant (Detail) | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Stock Based Compensation [Abstract] | ||
| Expected life (years) | 5 years 8 months 12 days | 5 years 9 months 18 days |
| Risk-free interest rate | 2.40% | 1.70% |
| Dividend yield | 1.00% | 1.30% |
| Expected volatility | 26.50% | 27.80% |
Summary of Share Unit Activity
| Summary of Share Unit Activity Under Plan (Detail) - Restricted Stock And Share Units - $ / shares | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Number of Units Issued and unvested, Beginning of Period | 544,055 | |
| Number of Units - Granted | 107,755 | 155,154 |
| Number of Units - Vested | (213,273) | |
| Number of Units - Forfeited | (2,060) | |
| Number of Units Issued and unvested, End of Period | 436,477 | |
| Weighted-Average Grant Date Value, Beginning of Period | $ 27.35 | |
| Weighted-Average Grant Date Value - Granted | 50.16 | |
| Weighted-Average Grant Date Value - Vested | 23.24 | |
| Weighted-Average Grant Date Value - Forfeited | 31.22 | |
| Weighted-Average Grant Date Value, End of Period | $ 34.97 | |
Components of Company's Net Pen
| Components of Company's Net Pension Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Pensions [Abstract] | ||
| Service cost | $ 0.4 | $ 0.5 |
| Interest cost | 7.5 | 7.6 |
| Expected return on plan assets | (14.4) | (13.8) |
| Amortization of unrecognized loss | 4.5 | 4.3 |
| Amortization of prior service cost | (0.1) | (0.3) |
| Defined benefit plan income | $ (2.1) | $ (1.7) |
Pensions - Additional Informati
| Pensions - Additional Information (Detail) $ in Millions | 3 Months Ended |
| Mar. 31, 2017USD ($) | |
| Pension and Other Postretirement Benefits Disclosure [Line Items] | |
| Voluntary pension contribution | $ 30 |
Operations by Segment - Additio
| Operations by Segment - Additional Information (Detail) | 3 Months Ended |
| Mar. 31, 2017Segment | |
| Segment Reporting Information [Line Items] | |
| Number of reporting segments | 2 |
Schedule of Operating Earnings
| Schedule of Operating Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Segment Reporting Information [Line Items] | ||
| Net sales | $ 740 | $ 636.9 |
| Operating earnings | 136.6 | 118.7 |
| Other income (expense) | 2.4 | 2 |
| Interest expense | (2.2) | (1.7) |
| Earnings before income taxes | 120.4 | 103.6 |
| Provision for income taxes | 32.7 | 30.1 |
| Net earnings | 87.7 | 73.5 |
| Inter-segment | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | (6.8) | (4.4) |
| Operating earnings | (0.1) | (0.1) |
| Corporate | ||
| Segment Reporting Information [Line Items] | ||
| Other income (expense) | (14) | (13.4) |
| North America | Operating Segments | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 487.3 | 423.9 |
| Operating earnings | 104.2 | 91.9 |
| Rest of World | Operating Segments | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 259.5 | 217.4 |
| Operating earnings | $ 32.5 | $ 26.9 |
Assets Measured at Fair Value o
| Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
| Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Assets measured at fair value on recurring basis | $ 429 | $ 424.5 |
Schedule of Summary by Currency
| Schedule of Summary by Currency of Foreign Currency Forward Contracts (Detail) - Foreign currency forward contracts - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
| Buy | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Contractual amounts of foreign currency forward contracts | $ 32,800,000 | $ 33,800,000 |
| Buy | Euro | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Contractual amounts of foreign currency forward contracts | 19,100,000 | 17,600,000 |
| Buy | Mexican peso | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Contractual amounts of foreign currency forward contracts | 13,700,000 | 16,200,000 |
| Sell | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Contractual amounts of foreign currency forward contracts | 61,100,000 | 86,400,000 |
| Sell | British pound | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Contractual amounts of foreign currency forward contracts | 900,000 | 800,000 |
| Sell | Canadian dollar | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Contractual amounts of foreign currency forward contracts | 58,800,000 | 84,300,000 |
| Sell | Euro | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Contractual amounts of foreign currency forward contracts | $ 1,400,000 | $ 1,300,000 |
Derivative Instruments - Additi
| Derivative Instruments - Additional Information (Detail) | 3 Months Ended |
| Mar. 31, 2017 | |
| Commodity Futures Contracts | |
| Trading Activity, Gains and Losses, Net [Line Items] | |
| Reclassification period for effective portion of contract, in years | 1 year |
Impact of Derivative Contracts
| Impact of Derivative Contracts on Company's Financial Statements (Detail) - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
| Derivatives, Fair Value [Line Items] | ||
| Fair value of derivative instruments, total | $ 2.1 | $ 0.4 |
| Foreign Currency Contracts | Other Current Assets | ||
| Derivatives, Fair Value [Line Items] | ||
| Fair value of derivative instruments, assets | 1 | 1.9 |
| Foreign Currency Contracts | Accrued Liabilities | ||
| Derivatives, Fair Value [Line Items] | ||
| Fair value of derivative instruments, liabilities | (2) | |
| Commodities Contracts | Other Current Assets | ||
| Derivatives, Fair Value [Line Items] | ||
| Fair value of derivative instruments, assets | 1.3 | 0.8 |
| Commodities Contracts | Accrued Liabilities | ||
| Derivatives, Fair Value [Line Items] | ||
| Fair value of derivative instruments, liabilities | $ (0.2) | $ (0.3) |
Schedule of Effect of Derivativ
| Schedule of Effect of Derivatives Instruments on Condensed Consolidated Statement of Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Mar. 31, 2017 | Mar. 31, 2016 | |
| Derivative [Line Items] | ||
| Amount of gain (loss) recognized in OCI on derivative (effective portion) | $ 1.1 | $ (2.7) |
| Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion) | (0.5) | 0.6 |
| Amount of gain (loss) recognized in earnings on a derivative (ineffective portion) | 0 | 0 |
| Foreign Currency Contracts | ||
| Derivative [Line Items] | ||
| Amount of gain (loss) recognized in OCI on derivative (effective portion) | 1.1 | (3.8) |
| Amount of gain (loss) recognized in earnings on a derivative (ineffective portion) | 0 | 0 |
| Foreign Currency Contracts | Cost Of Products Sold | ||
| Derivative [Line Items] | ||
| Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion) | 0.3 | |
| Commodities Contracts | ||
| Derivative [Line Items] | ||
| Amount of gain (loss) recognized in OCI on derivative (effective portion) | 1.1 | |
| Commodities Contracts | Cost Of Products Sold | ||
| Derivative [Line Items] | ||
| Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion) | (0.5) | 0.3 |
| Amount of gain (loss) recognized in earnings on a derivative (ineffective portion) | $ 0 | $ 0 |
Income Taxes - Additional Infor
| Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
| Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
| Income Tax Contingency [Line Items] | ||||
| Effective tax rates | 27.20% | 29.00% | 29.40% | |
| Unrecognized tax benefits | $ 4.2 | |||
| Unrecognized tax benefits that would affect the effective tax rate, if recognized | $ 0.6 | |||
| Scenario, Forecast | Minimum | ||||
| Income Tax Contingency [Line Items] | ||||
| Effective tax rates | 28.75% | |||
| Scenario, Forecast | Maximum | ||||
| Income Tax Contingency [Line Items] | ||||
| Effective tax rates | 29.00% | |||
| Earliest Tax Year | U.S. federal | ||||
| Income Tax Contingency [Line Items] | ||||
| Income tax examinations, years under examination | 2,014 | |||
| Latest Tax Year | U.S. federal | ||||
| Income Tax Contingency [Line Items] | ||||
| Income tax examinations, years under examination | 2,016 | |||
| State and local | Earliest Tax Year | ||||
| Income Tax Contingency [Line Items] | ||||
| Income tax examinations, years under examination | 2,001 | |||
| State and local | Latest Tax Year | ||||
| Income Tax Contingency [Line Items] | ||||
| Income tax examinations, years under examination | 2,016 | |||
| Non-U.S. | Earliest Tax Year | ||||
| Income Tax Contingency [Line Items] | ||||
| Income tax examinations, years under examination | 2,008 | |||
| Non-U.S. | Latest Tax Year | ||||
| Income Tax Contingency [Line Items] | ||||
| Income tax examinations, years under examination | 2,016 | |||
Changes in Accumulated Other 52
| Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
| Mar. 31, 2017 | Mar. 31, 2016 | ||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Beginning balance | $ 1,515.3 | ||
| Ending balance | 1,566.4 | ||
| Cumulative foreign currency translation | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Beginning balance | (79.2) | $ (39.4) | |
| Other comprehensive income (loss) before reclassifications | 7.3 | 8.6 | |
| Ending balance | (71.9) | (30.8) | |
| Unrealized net gain on cash flow derivatives | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Beginning balance | 0.2 | 1.2 | |
| Other comprehensive income (loss) before reclassifications | 0.8 | (1.6) | |
| Realized gains (losses) on derivatives reclassified to cost of products sold (net of income tax (benefit) provision of ($0.2) and $0.2 in 2017 and 2016, respectively) | 0.3 | (0.4) | |
| Ending balance | 1.3 | (0.8) | |
| Pension liability | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Beginning balance | (284.2) | (275.2) | |
| Amounts reclassified from accumulated other comprehensive loss | [1] | 2.6 | 2.5 |
| Ending balance | (281.6) | (272.7) | |
| Accumulated Other Comprehensive Loss | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Ending balance | $ (352.2) | $ (304.3) | |
| [1] | Amortization of pension items: Actuarial losses $ 4.5 (2) $ 4.3 (2) Prior year service cost (0.1 )(2) (0.3 )(2) 4.4 4.0 Income tax benefit (1.8 ) (1.5 ) Reclassification net of income tax benefit $ 2.6 $ 2.5 | ||
Changes in Accumulated Other 53
| Changes in Accumulated Other Comprehensive Loss by Component (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
| Mar. 31, 2017 | Mar. 31, 2016 | ||
| Unrealized net gain on cash flow derivatives | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Realized gains on derivatives reclassified to cost of products sold, tax provision | $ 0.2 | $ 0.2 | |
| Pension liability | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Reclassification, before income tax benefit | 4.4 | 4 | |
| Income tax benefit | (1.8) | (1.5) | |
| Reclassification net of income tax benefit | [1] | 2.6 | 2.5 |
| Actuarial losses | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Reclassification, before income tax benefit | [2] | 4.5 | 4.3 |
| Prior year service cost | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Reclassification, before income tax benefit | [2] | $ (0.1) | $ (0.3) |
| [1] | Amortization of pension items: Actuarial losses $ 4.5 (2) $ 4.3 (2) Prior year service cost (0.1 )(2) (0.3 )(2) 4.4 4.0 Income tax benefit (1.8 ) (1.5 ) Reclassification net of income tax benefit $ 2.6 $ 2.5 | ||
| [2] | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 8 - Pensions for additional details | ||