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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 31, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	AOS
Entity Registrant Name	SMITH A O CORP
Entity Central Index Key	0000091142
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		26,113,827
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		145,815,700

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net sales	$ 749.9	$ 683.9	$ 2,228.1	$ 1,987.8
Cost of products sold	443.2	400.6	1,313.2	1,158.1
Gross profit	306.7	283.3	914.9	829.7
Selling, general and administrative expenses	175.8	164.7	535.2	484.1
Interest expense	2.5	2.1	7.2	5.7
Other income	(3.2)	(1.9)	(7.5)	(6.2)
Earnings before provision for income taxes	131.6	118.4	380.0	346.1
Provision for income taxes	37.9	35.2	106.2	102.3
Net Earnings	$ 93.7	$ 83.2	$ 273.8	$ 243.8
Net Earnings Per Share of Common Stock	$ 0.54	$ 0.48	$ 1.58	$ 1.39
Diluted Net Earnings Per Share of Common Stock	0.54	0.47	1.57	1.38
Dividends Per Share of Common Stock	$ 0.14	$ 0.12	$ 0.42	$ 0.36

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net earnings	$ 93.7	$ 83.2	$ 273.8	$ 243.8
Other comprehensive earnings (loss)
Foreign currency translation adjustments	17.3	(3.5)	38.2	(12.0)
Unrealized net losses on cash flow derivative instruments, less related income tax benefit of $1.0 and $0.7 in 2017, $0.2 and $1.1 in 2016	(1.6)	(0.2)	(1.0)	(1.7)
Adjustment to pension liability, less related income tax provision of $(1.7) and $(2.3) in 2017 and $(1.6) and $(1.5) in 2016	2.6	2.4	3.6	2.3
Comprehensive Earnings	$ 112.0	$ 81.9	$ 314.6	$ 232.4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Unrealized net losses on cash flow derivative instruments, related income tax benefit	$ 1.0	$ 0.2	$ 0.7	$ 1.1
Adjustment to pension liability, related income tax provision	$ (1.7)	$ (1.6)	$ (2.3)	$ (1.5)

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 321.9	$ 330.4
Marketable securities	446.0	424.2
Receivables	587.1	518.7
Inventories	292.1	251.1
Other current assets	51.0	37.6
Total Current Assets	1,698.1	1,562.0
Property, plant and equipment	1,017.4	932.5
Less accumulated depreciation	(515.7)	(470.6)
Net property, plant and equipment	501.7	461.9
Goodwill	516.3	491.5
Other intangibles	312.3	308.3
Other assets	76.2	67.3
Total Assets	3,104.6	2,891.0
Liabilities
Trade payables	500.1	528.6
Accrued payroll and benefits	80.2	84.3
Accrued liabilities	99.7	101.0
Product warranties	44.2	44.5
Debt due within one year	7.5	7.2
Total Current Liabilities	731.7	765.6
Long-term debt	442.2	316.4
Pension liabilities	66.0	109.0
Other liabilities	198.8	184.7
Total Liabilities	1,438.7	1,375.7
Stockholders' Equity
Common Stock, value	164.5	164.4
Capital in excess of par value	485.7	477.6
Retained earnings	1,794.0	1,593.0
Accumulated other comprehensive loss	(322.4)	(363.2)
Treasury stock at cost	(587.1)	(488.1)
Total Stockholders' Equity	1,665.9	1,515.3
Total Liabilities and Stockholders' Equity	3,104.6	2,891.0
Common Class A
Stockholders' Equity
Common Stock, value	$ 131.2	$ 131.6

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	240,000,000	240,000,000
Common Stock, shares issued	164,461,533	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	26,246,059	26,313,351

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating Activities
Net earnings	$ 273.8	$ 243.8
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization	51.9	48.7
Stock based compensation expense	8.5	8.1
Net changes in operating assets and liabilities:
Current assets and liabilities	(154.5)	(23.5)
Noncurrent assets and liabilities	(29.5)	(13.5)
Cash Provided by Operating Activities	150.2	263.6
Investing Activities
Capital expenditures	(66.4)	(58.7)
Acquisitions	(43.1)	(90.5)
Investments in marketable securities	(407.3)	(415.5)
Net proceeds from sale of marketable securities	405.3	318.2
Cash Used in Investing Activities	(111.5)	(246.5)
Financing Activities
Long-term debt incurred	125.8	86.5
Common stock repurchases	(103.3)	(100.2)
Net proceeds from stock option activity	3.1	5.5
Dividends paid	(72.8)	(63.2)
Cash Used In Financing Activities	(47.2)	(71.4)
Net decrease in cash and cash equivalents	(8.5)	(54.3)
Cash and cash equivalents - beginning of period	330.4	323.6
Cash and Cash Equivalents - End of Period	$ 321.9	$ 269.3

Basis of Presentation

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 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 August 2017, the Financial Accounting Standards Board (FASB) amended Accounting Standards Codification (ASC) 815, Derivatives and Hedging (issued under Accounting Standards Update (ASU) 2017-12, “Targeted Improvements to Accounting for Hedging Activities”). Under this amendment, more hedging strategies will be eligible for hedge accounting treatment. ASU 2017-12 also amends the presentation and disclosure requirements regarding derivatives and hedging and changes how companies assess effectiveness. The amendment requires adoption on January 1, 2019 and permits early adoption in any interim or annual period. The Company does not expect that the adoption of ASU 2017-12 will have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

In May 2017, the FASB amended ASC 718, Compensation – Stock Compensation (issued under ASU 2017-09, “Scope of Modification Accounting”). This amendment clarifies when changes to the terms or conditions of share-based payment awards must be accounted for as a modification. Under this amendment, modification accounting must be used if three conditions are met: the fair value changes, the vesting conditions change, or the classification of the award changes due to the changes in terms or conditions. The amendment requires adoption on January 1, 2018 and permits early adoption. The Company does not expect that the adoption of ASU 2017-09 will have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

In March 2017, the FASB amended ASC 715, Compensation – Retirement Benefits (issued under ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”). This amendment changes the way net periodic benefit cost associated with employer-sponsored defined benefit plans is presented in the statement of earnings. Under the amendment, the service cost component of net periodic benefit cost is included in the same lines in the statement of earnings as other employee compensation costs and the other components of net periodic benefit cost must be presented separately outside of income from operations. The amendment requires adoption on January 1, 2018. The Company does not expect the adoption of ASU 2017-07 to have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

In January 2017, the FASB amended ASC 350, Intangibles – Goodwill and Other (issued under ASU 2017-04, “Simplifying the Test for Goodwill Impairment”). This amendment simplifies the test for goodwill impairment by only requiring an entity to perform an annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount that the carrying amount exceeds the reporting unit’s fair value. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendment requires adoption on January 1, 2020. The Company does not expect that the adoption of ASU 2017-04 will have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

In October 2016, the FASB amended ASC 740, Income Taxes (issued under ASU 2016-16). This amendment requires that the income tax consequences of an intra-entity transfer of an asset other than inventory be recognized when the transfer occurs. The amendment requires adoption on January 1, 2018. This amendment is required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. The Company does not expect the adoption of ASU 2016-16 will have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

In August 2016, the FASB amended ASC 230, Statement of Cash Flows (issued under ASU 2016-15, “Clarification of Certain Cash Receipts and Cash Payments”). This amendment clarifies reporting for contingent consideration payments made after a business combination depending on how soon after the acquisition the payments are made. The amendment requires adoption on January 1, 2018 and permits early adoption. The Company does not expect the adoption of ASU 2016-15 will have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

In February 2016, the FASB amended ASC 842, Leases (issued under ASU 2016-02). This amendment requires the recognition of lease assets and lease liabilities on the balance sheet for most leasing arrangements currently classified as operating leases. This amendment requires adoption on January 1, 2019 and permits early adoption. The Company is in the process of determining whether the adoption of ASU 2016-02 will have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

In May 2014, the FASB issued ASC 606-10, Revenue from Contracts with Customers (issued under ASU 2014-09). ASC 2014-09 will replace all existing revenue recognition guidance when effective. In July 2015, the FASB approved a one-year deferral of the effective date resulting in required adoption on January 1, 2018. The Company is completing its review of its customer contracts and its analysis of the impact of the disclosure requirements of ASU 2014-09. The Company does not anticipate that its pattern of revenue recognition will change as a result of the adoption of the new guidance. The Company expects to utilize the full retrospective method of adoption and does not expect the adoption of ASC 2014-09 to have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

Acquisitions

9 Months Ended

Sep. 30, 2017

Acquisitions

2.	Acquisitions

On September 5, 2017, the Company acquired 100 percent of the shares of Hague Quality Water International (Hague), an Ohio-based water softener company. With the addition of Hague, the Company grew its North America water treatment platform. Hague is included in the Company’s North America segment for reporting purposes.

The Company paid an aggregate cash purchase price of $43.1 million, net of $4.1 million of cash acquired. In addition, the Company established a $1.5 million holdback liability to satisfy any potential obligations of the former owners of Hague, should they arise, otherwise the amount will be paid to the former owners of Hague on September 5, 2018. The Company also agreed to make a contingent payment of up to an additional $2.0 million based on the amount by which products manufactured by or branded Hague increase over the two-year period ending June 30, 2019. In addition, the Company incurred acquisition-related costs of approximately $0.1 million. As of the acquisition date and September 30, 2017, the Company estimated the fair value of the holdback liability and additional contingent consideration at $1.5 million and $2.0 million, respectively, and has recorded liabilities for those amounts.

The following table summarizes the preliminary estimate of the fair value of the assets acquired and liabilities assumed at the date of acquisition of Hague for purposes of allocating the purchase price. The Company is in the process of finalizing the fair value estimates; therefore, the allocation of the purchase price is subject to refinement. The preliminary $12.8 million of acquired intangible assets was comprised of $1.1 million of trade names that are not subject to amortization and $11.7 million of customer lists being amortized over 18 years.


September 5, 2017 (dollars in millions)
Current assets, net of cash acquired	$	7.8
Property, plant and equipment		6.9
Intangible assets		12.8
Goodwill		21.3

Total assets acquired		48.8
Current liabilities		(4.7	)
Long-term liabilities		(1.0	)

Total liabilities assumed		(5.7	)

Net assets acquired	$	43.1

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 September 5, 2017, the date of acquisition. Revenues and pre-tax earnings associated with Hague included in the consolidated statement of earnings totaled $2.2 million and $0.6 million, respectively, which included $0.7 million of operating earnings less $0.1 million of acquisition-related costs incurred by the Company resulting from the acquisition.

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 North America 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 a holdback liability to satisfy any potential obligations of the former owners of Aquasana to pay any adjustments to the purchase price. As of the acquisition date, the fair value of the holdback liability was $1.7 million. The Company paid the holdback liability in full to the former owners of Aquasana in the third quarter of 2017.

The following table summarizes the allocation of the fair value of the assets acquired and liabilities assumed at the date of acquisition of Aquasana. 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

9 Months Ended

Sep. 30, 2017

Inventories

3.	Inventories

The following table presents the components of the Company’s inventory balances:


(dollars in millions)
	September 30, 2017			December 31, 2016
Finished products	$	138.4		$	114.1
Work in process		17.9			13.0
Raw materials		154.5			142.4

Inventories, at FIFO cost		310.8			269.5
LIFO reserve		(18.7	)		(18.4	)

Net inventory	$	292.1		$	251.1

Product Warranties

9 Months Ended

Sep. 30, 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)	Three Months Ended September 30,
	2017			2016
Balance at July 1,	$	140.8		$	141.5
Expense		8.1			10.4
Claims settled		(8.4	)		(8.9	)

Balance at September 30,	$	140.5		$	143.0


(dollars in millions)	Nine Months Ended September 30,
	2017			2016
Balance at January 1,	$	140.9		$	139.4
Expense		28.6			34.7
Claims settled		(29.0	)		(31.1	)

Balance at September 30,	$	140.5		$	143.0

Long-Term Debt

9 Months Ended

Sep. 30, 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 September 30, 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 Stock

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Denominator for basic earnings per share – weighted average shares		172,446,529		174,409,789		172,936,255		175,019,605
Effect of dilutive stock options and share units		1,909,214		2,138,589		1,948,557		2,097,444

Denominator for diluted earnings per share		174,355,743		176,548,378		174,884,812		177,117,049

Stock Based Compensation

9 Months Ended

Sep. 30, 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 September 30, 2017 was 2,881,300. 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 September 30, 2017 and 2016 was $1.3 million and $1.2 million, respectively. Total stock based compensation expense recognized in the nine months ended September 30, 2017 and 2016 was $8.5 million and $8.1 million, respectively.

Stock Options

The stock options granted in the nine months ended September 30, 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 and nine months ended September 30, 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 September 30, 2017 and 2016 was $0.6 million and $0.5 million, respectively. Stock based compensation expense attributable to stock options in the nine months ended September 30, 2017 and 2016 was $4.0 million and $3.9 million, respectively.

Changes in option shares, all of which relate to the Company’s Common Stock, were as follows for the nine months ended September 30, 2017:


	Weighted-Avg. Per Share Exercise Price		Number of Options			Average Remaining Contractual Life		Aggregate Intrinsic Value (dollars in millions)
Outstanding at January 1, 2017	$	21.69		2,664,333
Granted		50.16		358,150
Exercised		18.84		(486,021	)
Terminated		36.13		(3,640	)

Outstanding at September 30, 2017		26.24		2,532,822			7 years	$	82.7

Exercisable at September 30, 2017		19.34		1,653,841			6 years	$	65.4

The weighted-average fair value per option at the date of grant during the nine months ended September 30, 2017 and 2016 using the Black-Scholes option-pricing model was $13.04 and $8.03, respectively. Assumptions were as follows:


	Nine Months Ended September 30,
	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	%		27.7	%

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 employees have been granted SARs. Each SAR award grants the employee the right to receive cash equal to the excess of the share price of the Company’s Common Stock on the date that a participant exercises such right over the grant date value of the SAR. SARs granted have three year pro rata vesting from the date of grant. SARs were issued at exercise prices equal to the fair value of the Company’s Common Stock on the date of grant and expire ten years from the date of grant. The fair value and compensation expense related to SARs are measured at each reporting period using the Black-Scholes option-pricing model, using assumptions similar to stock option awards. No SARs were granted in 2017 or 2016. As of September 30, 2017, there were 23,660 SARs outstanding and 15,774 were exercisable. In the nine months ended September 30, 2017, 427 SARs were exercised and 853 SARs were terminated. Stock based compensation expense was minimal in the nine months ended September 30, 2017 and 2016.

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 160,428 share units under the plan in the nine months ended September 30, 2017 and 2016, respectively. The share units were valued at $5.4 million and $5.2 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 and nine months ended September 30, 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 $0.7 million and $0.7 million was recognized in the three months ended September 30, 2017 and 2016, respectively. Stock based compensation expense attributable to share units of $4.5 million and $4.2 million was recognized in the nine months ended September 30, 2017 and 2016. 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 September 30, 2017:


	Number of Units			Weighted-Average Grant Date Value
Issued and unvested at January 1, 2017		544,055		$	27.35
Granted		107,755			50.16
Vested		(213,863	)		23.25
Forfeited		(3,465	)		33.58

Issued and unvested at September 30, 2017		434,482			34.23

Pensions

9 Months Ended

Sep. 30, 2017

Pensions

8.	Pensions

The following table presents the components of the Company’s net pension income.


(dollars in millions)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Service cost	$	0.5		$	0.4		$	1.4		$	1.3
Interest cost		7.6			7.7			22.5			23.0
Expected return on plan assets		(14.8	)		(13.9	)		(43.5	)		(41.5	)
Amortization of unrecognized loss		4.6			4.4			13.4			13.2
Amortization of prior service cost		(0.1	)		(0.3	)		(0.3	)		(0.8	)

Defined benefit plan income	$	(2.2	)	$	(1.7	)	$	(6.5	)	$	(4.8	)

The Company is not required to make a contribution in 2017 but made a voluntary $30 million contribution in the three months ended September 30, 2017. The Company also made a voluntary $30 million contribution to its U.S. pension plan in 2016.

Segment Results

9 Months Ended

Sep. 30, 2017

Segment Results

9.	Segment Results

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, electric water heaters, non-condensing boilers and 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 condensing boilers and water system tanks. The Rest of World segment also manufactures and markets in-home air purification products in China.

The following table presents the Company’s segment results:


(dollars in millions)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net sales
North America	$	486.0		$	450.8		$	1,444.0		$	1,307.5
Rest of World		270.1			240.3			802.4			697.6
Inter-segment sales		(6.2	)		(7.2	)		(18.3	)		(17.3	)

	$	749.9		$	683.9		$	2,228.1		$	1,987.8

Segment earnings
North America	$	110.3		$	100.5		$	323.7		$	296.5
Rest of World		33.8			31.1			98.8			90.9
Inter-segment earnings elimination		(0.1	)		—			(0.3	)		—

		144.0			131.6			422.2			387.4
Corporate expense		9.9			11.1			35.0			35.6
Interest expense		2.5			2.1			7.2			5.7

Earnings before income taxes		131.6			118.4			380.0			346.1
Provision for income taxes		37.9			35.2			106.2			102.3

Net earnings	$	93.7		$	83.2		$	273.8		$	243.8

Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Measurements

10.

Fair Value Measurements

ASC 820, Fair Value Measurements, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

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	September 30, 2017		December 31, 2016
Quoted prices in active markets for identical assets (Level 1)	$	444.4	$	424.5

There were no changes in the Company’s valuation techniques used to measure fair values on a recurring basis during the nine months ended September 30, 2017.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Instruments

9 Months Ended

Sep. 30, 2017

Derivative Instruments

11.

Derivative Instruments

ASC 815, Derivatives and Hedging, as amended, requires that all derivative instruments be recorded on the balance sheet at fair value and establishes criteria for designation and effectiveness of the hedging relationships. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as a part of a hedging relationship and, further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure hedged, as a fair value hedge, a cash flow hedge, or a hedge of a net investment in a foreign operation.

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)
	September 30,
	2017				2016
	Buy		Sell		Buy		Sell
British pound	$	—	$	1.5	$	—	$	0.2
Canadian dollar		—		67.4		—		77.2
Euro		27.9		0.5		6.7		0.5
Mexican peso		19.3		—		13.8		—

Total	$	47.2	$	69.4	$	20.5	$	77.9

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 gains and losses on the effective portion of the copper and steel hedge contracts as of September 30, 2017 were recorded in accumulated other comprehensive loss and will be reclassified into cost of products sold in the period in which the underlying transaction is recorded in earnings. The after-tax gains and losses on the effective portion of the contracts will be reclassified within one year. Contractual amounts of the Company’s commodities futures contracts were immaterial as of September 30, 2017.

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	September 30, 2017			December 31, 2016
Foreign currency contracts	Other current assets	$	0.6		$	1.9
	Accrued liabilities		(2.0	)		(2.0	)
Commodities contracts	Other current assets		0.1			0.8
	Accrued liabilities		—			(0.3	)

Total derivatives designated as hedging instruments		$	(1.3	)	$	0.4

The effect of derivatives designated as hedging instruments on the consolidated statement of earnings is as follows:

Three Months Ended September 30 (dollars in millions):


Derivatives in ASC 815 cash flow hedging relationships	Amount of gain (loss) recognized in OCI on derivative (effective portion)						Location of gain (loss) reclassified from accumulated OCI into earnings (effective portion)		Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion)						Location of gain (loss) recognized in earnings on derivative (ineffective portion)		Amount of gain (loss) recognized in earnings on a derivative (ineffective portion)
	2017			2016					2017			2016					2017		2016
Foreign currency contracts	$	(2.5	)	$	0.8			Cost of products sold	$	(0.3	)	$	(0.3	)		N/A	$	—	$	—
Commodities contracts		—			(1.1	)		Cost of products sold		0.3			0.7			Cost of products sold		—		—

	$	(2.5	)	$	(0.3	)			$	—		$	0.4				$	—	$	—

Nine Months Ended September 30 (dollars in millions):


Derivatives in ASC 815 cash flow hedging relationships	Amount of gain (loss) recognized in OCI on derivative (effective portion)						Location of gain (loss) reclassified from accumulated OCI into earnings (effective portion)		Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion)					Location of gain (loss) recognized in earnings on derivative (ineffective portion)		Amount of gain (loss) recognized in earnings on a derivative (ineffective portion)
	2017			2016					2017		2016					2017		2016
Foreign currency contracts	$	(1.0	)	$	(4.1	)		Cost of products sold	$	0.3	$	(1.1	)		N/A	$	—	$	—
Commodities contracts		0.1			0.7			Cost of products sold		0.4		0.7			Cost of products sold		—		—

	$	(0.9	)	$	(3.4	)			$	0.7	$	(0.4	)			$	—	$	—

Income Taxes

9 Months Ended

Sep. 30, 2017

Income Taxes

12.

Income Taxes

The Company’s effective income tax rates for the three and nine months ended September 30, 2017 were 28.8 percent and 27.9 percent, respectively. The Company estimates that its annual effective income tax rate for the full year 2017 will be approximately 28 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 rates in the three and nine months ended September 30, 2017 compared to prior year periods were primarily due to lower state income taxes.

As of September 30, 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 2015-2016 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. income tax examinations for years 2008-2016.

Changes in Accumulated Other Comprehensive Loss by Component

9 Months Ended

Sep. 30, 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 September 30,
	2017			2016
Cumulative foreign currency translation
Balance at beginning of period	$	(58.3	)	$	(47.9	)
Other comprehensive gain (loss) before reclassifications		17.3			(3.5	)

Balance at end of period		(41.0	)		(51.4	)

Unrealized net gain (loss) on cash flow derivatives
Balance at beginning of period		0.8			(0.3	)
Other comprehensive loss before reclassifications		(1.6	)		—
Realized gains on derivatives reclassified to cost of products sold (net of tax provision of $0.2 in 2016, respectively)		—			(0.2	)

Balance at end of period		(0.8	)		(0.5	)

Pension liability
Balance at beginning of period		(283.2	)		(275.3	)
Other comprehensive loss before reclassifications		(0.1	)		(0.1	)
Amounts reclassified from accumulated other comprehensive loss: ⁽¹⁾		2.7			2.5

Balance at end of period		(280.6	)		(272.9	)

Accumulated other comprehensive loss, end of period	$	(322.4	)	$	(324.8	)

⁽¹⁾Amortization of pension items:
Actuarial losses	$	4.6	⁽²⁾	$	4.4	⁽²⁾
Prior year service cost		(0.1	)⁽²⁾		(0.3	)⁽²⁾

		4.5			4.1
Income tax benefit		(1.8	)		(1.6	)

Reclassification net of income tax benefit	$	2.7		$	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

Changes to accumulated other comprehensive loss by component are as follows:


(dollars in millions)
	Nine Months Ended September 30,
	2017			2016
Cumulative foreign currency translation
Balance at beginning of period	$	(79.2	)	$	(39.4	)
Other comprehensive gain (loss) before reclassifications		38.2			(12.0	)

Balance at end of period		(41.0	)		(51.4	)

Unrealized net gain on cash flow derivatives
Balance at beginning of period		0.2			1.2
Other comprehensive loss before reclassifications		(0.6	)		(1.9	)
Realized (gains) losses on derivatives reclassified to cost of products sold (net of tax provision (benefit) of $0.3 and $(0.2) in 2017 and 2016, respectively)		(0.4	)		0.2

Balance at end of period		(0.8	)		(0.5	)

Pension liability
Balance at beginning of period		(284.2	)		(275.2	)
Other comprehensive gain before reclassifications		(4.3	)		(5.3	)
Amounts reclassified from accumulated other comprehensive loss: ⁽¹⁾		7.9			7.6

Balance at end of period		(280.6	)		(272.9	)

Accumulated other comprehensive loss, end of period	$	(322.4	)	$	(324.8	)

⁽¹⁾Amortization of pension items:
Actuarial losses	$	13.4	⁽²⁾	$	13.2	⁽²⁾
Prior year service cost		(0.3	)⁽²⁾		(0.8	)⁽²⁾

		13.1			12.4
Income tax benefit		(5.2	)		(4.8	)

Reclassification net of income tax benefit	$	7.9		$	7.6

⁽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)

9 Months Ended

Sep. 30, 2017

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Aquasana

Summary of Preliminary Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition


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

Hague

Summary of Preliminary Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition


September 5, 2017 (dollars in millions)
Current assets, net of cash acquired	$	7.8
Property, plant and equipment		6.9
Intangible assets		12.8
Goodwill		21.3

Total assets acquired		48.8
Current liabilities		(4.7	)
Long-term liabilities		(1.0	)

Total liabilities assumed		(5.7	)

Net assets acquired	$	43.1

Inventories (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Inventories

The following table presents the components of the Company’s inventory balances:


(dollars in millions)
	September 30, 2017			December 31, 2016
Finished products	$	138.4		$	114.1
Work in process		17.9			13.0
Raw materials		154.5			142.4

Inventories, at FIFO cost		310.8			269.5
LIFO reserve		(18.7	)		(18.4	)

Net inventory	$	292.1		$	251.1

Product Warranties (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Product Warranty Liability Activity

The following table presents the Company’s warranty liability activity.


(dollars in millions)	Three Months Ended September 30,
	2017			2016
Balance at July 1,	$	140.8		$	141.5
Expense		8.1			10.4
Claims settled		(8.4	)		(8.9	)

Balance at September 30,	$	140.5		$	143.0


(dollars in millions)	Nine Months Ended September 30,
	2017			2016
Balance at January 1,	$	140.9		$	139.4
Expense		28.6			34.7
Claims settled		(29.0	)		(31.1	)

Balance at September 30,	$	140.5		$	143.0

Earnings per Share of Common Stock (Tables)

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Denominator for basic earnings per share – weighted average shares		172,446,529		174,409,789		172,936,255		175,019,605
Effect of dilutive stock options and share units		1,909,214		2,138,589		1,948,557		2,097,444

Denominator for diluted earnings per share		174,355,743		176,548,378		174,884,812		177,117,049

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 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 nine months ended September 30, 2017:


	Weighted-Avg. Per Share Exercise Price		Number of Options			Average Remaining Contractual Life		Aggregate Intrinsic Value (dollars in millions)
Outstanding at January 1, 2017	$	21.69		2,664,333
Granted		50.16		358,150
Exercised		18.84		(486,021	)
Terminated		36.13		(3,640	)

Outstanding at September 30, 2017		26.24		2,532,822			7 years	$	82.7

Exercisable at September 30, 2017		19.34		1,653,841			6 years	$	65.4

Schedule of Weighted Average Fair Value per Option at Date of Grant


	Nine Months Ended September 30,
	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	%		27.7	%

Schedule of Share Unit Activity Under Plan

A summary of share unit activity under the plan is as follows for the three months ended September 30, 2017:


	Number of Units			Weighted-Average Grant Date Value
Issued and unvested at January 1, 2017		544,055		$	27.35
Granted		107,755			50.16
Vested		(213,863	)		23.25
Forfeited		(3,465	)		33.58

Issued and unvested at September 30, 2017		434,482			34.23

Pensions (Tables)

9 Months Ended

Sep. 30, 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 September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Service cost	$	0.5		$	0.4		$	1.4		$	1.3
Interest cost		7.6			7.7			22.5			23.0
Expected return on plan assets		(14.8	)		(13.9	)		(43.5	)		(41.5	)
Amortization of unrecognized loss		4.6			4.4			13.4			13.2
Amortization of prior service cost		(0.1	)		(0.3	)		(0.3	)		(0.8	)

Defined benefit plan income	$	(2.2	)	$	(1.7	)	$	(6.5	)	$	(4.8	)

Segment Results (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Segment Earnings

The following table presents the Company’s segment results:


(dollars in millions)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net sales
North America	$	486.0		$	450.8		$	1,444.0		$	1,307.5
Rest of World		270.1			240.3			802.4			697.6
Inter-segment sales		(6.2	)		(7.2	)		(18.3	)		(17.3	)

	$	749.9		$	683.9		$	2,228.1		$	1,987.8

Segment earnings
North America	$	110.3		$	100.5		$	323.7		$	296.5
Rest of World		33.8			31.1			98.8			90.9
Inter-segment earnings elimination		(0.1	)		—			(0.3	)		—

		144.0			131.6			422.2			387.4
Corporate expense		9.9			11.1			35.0			35.6
Interest expense		2.5			2.1			7.2			5.7

Earnings before income taxes		131.6			118.4			380.0			346.1
Provision for income taxes		37.9			35.2			106.2			102.3

Net earnings	$	93.7		$	83.2		$	273.8		$	243.8

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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	September 30, 2017		December 31, 2016
Quoted prices in active markets for identical assets (Level 1)	$	444.4	$	424.5

Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2017

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	September 30, 2017			December 31, 2016
Foreign currency contracts	Other current assets	$	0.6		$	1.9
	Accrued liabilities		(2.0	)		(2.0	)
Commodities contracts	Other current assets		0.1			0.8
	Accrued liabilities		—			(0.3	)

Total derivatives designated as hedging instruments		$	(1.3	)	$	0.4

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)
	September 30,
	2017				2016
	Buy		Sell		Buy		Sell
British pound	$	—	$	1.5	$	—	$	0.2
Canadian dollar		—		67.4		—		77.2
Euro		27.9		0.5		6.7		0.5
Mexican peso		19.3		—		13.8		—

Total	$	47.2	$	69.4	$	20.5	$	77.9

Schedule of Effect of Derivatives Instruments on Condensed Consolidated Statement of Earnings

The effect of derivatives designated as hedging instruments on the consolidated statement of earnings is as follows:

Three Months Ended September 30 (dollars in millions):


Derivatives in ASC 815 cash flow hedging relationships	Amount of gain (loss) recognized in OCI on derivative (effective portion)						Location of gain (loss) reclassified from accumulated OCI into earnings (effective portion)		Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion)						Location of gain (loss) recognized in earnings on derivative (ineffective portion)		Amount of gain (loss) recognized in earnings on a derivative (ineffective portion)
	2017			2016					2017			2016					2017		2016
Foreign currency contracts	$	(2.5	)	$	0.8			Cost of products sold	$	(0.3	)	$	(0.3	)		N/A	$	—	$	—
Commodities contracts		—			(1.1	)		Cost of products sold		0.3			0.7			Cost of products sold		—		—

	$	(2.5	)	$	(0.3	)			$	—		$	0.4				$	—	$	—

Nine Months Ended September 30 (dollars in millions):


Derivatives in ASC 815 cash flow hedging relationships	Amount of gain (loss) recognized in OCI on derivative (effective portion)						Location of gain (loss) reclassified from accumulated OCI into earnings (effective portion)		Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion)					Location of gain (loss) recognized in earnings on derivative (ineffective portion)		Amount of gain (loss) recognized in earnings on a derivative (ineffective portion)
	2017			2016					2017		2016					2017		2016
Foreign currency contracts	$	(1.0	)	$	(4.1	)		Cost of products sold	$	0.3	$	(1.1	)		N/A	$	—	$	—
Commodities contracts		0.1			0.7			Cost of products sold		0.4		0.7			Cost of products sold		—		—

	$	(0.9	)	$	(3.4	)			$	0.7	$	(0.4	)			$	—	$	—

Changes in Accumulated Other Comprehensive Loss by Component (Tables)

9 Months Ended

Sep. 30, 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 September 30,
	2017			2016
Cumulative foreign currency translation
Balance at beginning of period	$	(58.3	)	$	(47.9	)
Other comprehensive gain (loss) before reclassifications		17.3			(3.5	)

Balance at end of period		(41.0	)		(51.4	)

Unrealized net gain (loss) on cash flow derivatives
Balance at beginning of period		0.8			(0.3	)
Other comprehensive loss before reclassifications		(1.6	)		—
Realized gains on derivatives reclassified to cost of products sold (net of tax provision of $0.2 in 2016, respectively)		—			(0.2	)

Balance at end of period		(0.8	)		(0.5	)

Pension liability
Balance at beginning of period		(283.2	)		(275.3	)
Other comprehensive loss before reclassifications		(0.1	)		(0.1	)
Amounts reclassified from accumulated other comprehensive loss: ⁽¹⁾		2.7			2.5

Balance at end of period		(280.6	)		(272.9	)

Accumulated other comprehensive loss, end of period	$	(322.4	)	$	(324.8	)

⁽¹⁾Amortization of pension items:
Actuarial losses	$	4.6	⁽²⁾	$	4.4	⁽²⁾
Prior year service cost		(0.1	)⁽²⁾		(0.3	)⁽²⁾

		4.5			4.1
Income tax benefit		(1.8	)		(1.6	)

Reclassification net of income tax benefit	$	2.7		$	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

Changes to accumulated other comprehensive loss by component are as follows:


(dollars in millions)
	Nine Months Ended September 30,
	2017			2016
Cumulative foreign currency translation
Balance at beginning of period	$	(79.2	)	$	(39.4	)
Other comprehensive gain (loss) before reclassifications		38.2			(12.0	)

Balance at end of period		(41.0	)		(51.4	)

Unrealized net gain on cash flow derivatives
Balance at beginning of period		0.2			1.2
Other comprehensive loss before reclassifications		(0.6	)		(1.9	)
Realized (gains) losses on derivatives reclassified to cost of products sold (net of tax provision (benefit) of $0.3 and $(0.2) in 2017 and 2016, respectively)		(0.4	)		0.2

Balance at end of period		(0.8	)		(0.5	)

Pension liability
Balance at beginning of period		(284.2	)		(275.2	)
Other comprehensive gain before reclassifications		(4.3	)		(5.3	)
Amounts reclassified from accumulated other comprehensive loss: ⁽¹⁾		7.9			7.6

Balance at end of period		(280.6	)		(272.9	)

Accumulated other comprehensive loss, end of period	$	(322.4	)	$	(324.8	)

⁽¹⁾Amortization of pension items:
Actuarial losses	$	13.4	⁽²⁾	$	13.2	⁽²⁾
Prior year service cost		(0.3	)⁽²⁾		(0.8	)⁽²⁾

		13.1			12.4
Income tax benefit		(5.2	)		(4.8	)

Reclassification net of income tax benefit	$	7.9		$	7.6

⁽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 Information (Detail) - USD ($) $ in Millions			3 Months Ended		9 Months Ended
	Sep. 05, 2017	Aug. 08, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Acquisition [Line Items]
Aggregate cash purchase price, net of cash acquired					$ 43.1	$ 90.5
Operating earnings			$ 144.0	$ 131.6	422.2	$ 387.4
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
Contingent consideration and holdback		1.7
Acquisition-related costs		1.2
Acquired intangible assets		30.0
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
Hague
Business Acquisition [Line Items]
Percentage of ownership interest acquired	100.00%
Aggregate cash purchase price, net of cash acquired	$ 43.1
Cash acquired from business acquisition	4.1
Contingent consideration and holdback	$ 1.5		$ 2.0		$ 2.0
Contingent consideration, conditions measurement period	2 years
Acquisition-related costs	$ 0.1
Acquired intangible assets	12.8
Revenues	2.2
Pre tax earnings	0.6
Operating earnings	0.7
Hague \| Maximum
Business Acquisition [Line Items]
Contingent consideration and holdback	2.0
Hague \| Trade Names
Business Acquisition [Line Items]
Acquired intangible assets, not subject to amortization	1.1
Hague \| Customer Lists
Business Acquisition [Line Items]
Acquired intangible assets, subject to amortization	$ 11.7
Acquired intangible assets, amortization period, in years	18 years

Summary of Preliminary Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 05, 2017	Dec. 31, 2016	Aug. 08, 2016
Business Acquisition [Line Items]
Goodwill	$ 516.3		$ 491.5
Aquasana
Business Acquisition [Line Items]
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
Hague
Business Acquisition [Line Items]
Current assets, net of cash acquired		$ 7.8
Property, plant and equipment		6.9
Intangible assets		12.8
Goodwill		21.3
Total assets acquired		48.8
Current liabilities		(4.7)
Long-term liabilities		(1.0)
Total liabilities assumed		(5.7)
Net assets acquired		$ 43.1

Schedule of Inventories (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Inventories
Finished products	$ 138.4	$ 114.1
Work in process	17.9	13.0
Raw materials	154.5	142.4
Inventories, at FIFO cost	310.8	269.5
LIFO reserve	(18.7)	(18.4)
Net inventory	$ 292.1	$ 251.1

Company's Warranty Liability Activity (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Product Warranties
Balance at beginning of year	$ 140.8	$ 141.5	$ 140.9	$ 139.4
Expense	8.1	10.4	28.6	34.7
Claims settled	(8.4)	(8.9)	(29.0)	(31.1)
Balance at end of year	$ 140.5	$ 143.0	$ 140.5	$ 143.0

Long-Term Debt - Additional Information (Detail)		9 Months Ended
Long-Term Debt - Additional Information (Detail)	Nov. 28, 2016 USD ($)	Sep. 30, 2017 USD ($) 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	2023
Debt instrument, maturity year	2029
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	2028
Debt instrument, maturity year	2034
Debt instrument, interest rate	3.10%

Schedule of Computation of Basic and Diluted Weighted-Average Shares Used in Earnings per Share Calculations (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share Of Common Stock
Denominator for basic earnings per share - weighted average shares	172,446,529	174,409,789	172,936,255	175,019,605
Effect of dilutive stock options and share units	1,909,214	2,138,589	1,948,557	2,097,444
Denominator for diluted earnings per share	174,355,743	176,548,378	174,884,812	177,117,049

Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation cost recognized	$ 1.3	$ 1.2	$ 8.5	$ 8.1
Stock option compensation recognized	$ 0.6	0.5	$ 4.0	$ 3.9
Weighted-average fair value per option at the date of grant			$ 13.04	$ 8.03
Number of Options, outstanding	2,532,822		2,532,822		2,664,333
Number of options, exercisable at end of period	1,653,841		1,653,841
Number of options, exercised			486,021
Number of options, terminated			3,640
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		23,660
Number of options, exercisable at end of period	15,774		15,774
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	160,428
Value of share units at the date of issuance			$ 5.4	$ 5.2
Share based compensation expense attributable to share units	$ 0.7	$ 0.7	$ 4.5	$ 4.2
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	2,881,300		2,881,300

Changes in Option Awards All of Which Related to Common Stock (Detail) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares
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	18.84
Weighted-Average Per Share Exercise Price - Terminated \| $ / shares	36.13
Weighted-Average Per Share Exercise Price, ending period \| $ / shares	26.24
Weighted-Average Per Share Exercise Price, Exercisable \| $ / shares	$ 19.34
Number of Options Outstanding, Beginning Balance \| shares	2,664,333
Number of Options, Granted \| shares	358,150
Number of Options, Exercised \| shares	(486,021)
Number of options, Terminated \| shares	(3,640)
Number of Options Outstanding, Ending Balance \| shares	2,532,822
Number of options, exercisable at end of period \| shares	1,653,841
Average Remaining Contractual Life, Outstanding at End of Period, Years	7 years
Average Remaining Contractual Life, Exercisable at End of Period, Years	6 years
Aggregate Intrinsic Value, Outstanding at End of Period \| $	$ 82.7
Aggregate Intrinsic Value, Exercisable at End of Period \| $	$ 65.4

Schedule of Weighted-Average Fair Value per Option at Date of Grant (Detail)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 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%	27.70%

Summary of Share Unit Activity Under Plan (Detail) - Restricted Stock And Share Units - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 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	160,428
Number of Units - Vested	(213,863)
Number of Units - Forfeited	(3,465)
Number of Units Issued and unvested, End of Period	434,482
Weighted-Average Grant Date Value, Beginning of Period	$ 27.35
Weighted-Average Grant Date Value - Granted	50.16
Weighted-Average Grant Date Value - Vested	23.25
Weighted-Average Grant Date Value - Forfeited	33.58
Weighted-Average Grant Date Value, End of Period	$ 34.23

Components of Company's Net Pension Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pensions [Abstract]
Service cost	$ 0.5	$ 0.4	$ 1.4	$ 1.3
Interest cost	7.6	7.7	22.5	23.0
Expected return on plan assets	(14.8)	(13.9)	(43.5)	(41.5)
Amortization of unrecognized loss	4.6	4.4	13.4	13.2
Amortization of prior service cost	(0.1)	(0.3)	(0.3)	(0.8)
Defined benefit plan income	$ (2.2)	$ (1.7)	$ (6.5)	$ (4.8)

Pensions - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Pension and Other Postretirement Benefits Disclosure [Line Items]
Voluntary pension contribution	$ 30	$ 30

Operations by Segment - Additional Information (Detail)	9 Months Ended
Operations by Segment - Additional Information (Detail)	Sep. 30, 2017 Segment
Segment Reporting Information [Line Items]
Number of reporting segments	2

Schedule of Operating Earnings (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net sales	$ 749.9	$ 683.9	$ 2,228.1	$ 1,987.8
Segment earnings	144.0	131.6	422.2	387.4
Other income (expense)	3.2	1.9	7.5	6.2
Interest expense	2.5	2.1	7.2	5.7
Earnings before provision for income taxes	131.6	118.4	380.0	346.1
Provision for income taxes	37.9	35.2	106.2	102.3
Net earnings	93.7	83.2	273.8	243.8
Inter-segment
Segment Reporting Information [Line Items]
Net sales	(6.2)	(7.2)	(18.3)	(17.3)
Segment earnings	(0.1)		(0.3)
Corporate
Segment Reporting Information [Line Items]
Other income (expense)	9.9	11.1	35.0	35.6
North America \| Operating Segments
Segment Reporting Information [Line Items]
Net sales	486.0	450.8	1,444.0	1,307.5
Segment earnings	110.3	100.5	323.7	296.5
Rest of World \| Operating Segments
Segment Reporting Information [Line Items]
Net sales	270.1	240.3	802.4	697.6
Segment earnings	$ 33.8	$ 31.1	$ 98.8	$ 90.9

Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Sep. 30, 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	$ 444.4	$ 424.5

Schedule of Summary by Currency of Foreign Currency Forward Contracts (Detail) - Foreign currency forward contracts - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Buy
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	$ 47,200,000	$ 20,500,000
Buy \| Euro
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	27,900,000	6,700,000
Buy \| Mexican peso
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	19,300,000	13,800,000
Sell
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	69,400,000	77,900,000
Sell \| British pound
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	1,500,000	200,000
Sell \| Canadian dollar
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	67,400,000	77,200,000
Sell \| Euro
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	$ 500,000	$ 500,000

Derivative Instruments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 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 on Company's Financial Statements (Detail) - Designated as Hedging Instrument - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, total	$ (1.3)	$ 0.4
Foreign Currency Contracts \| Other Current Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, assets	0.6	1.9
Foreign Currency Contracts \| Accrued Liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, liabilities	(2.0)	(2.0)
Commodities Contracts \| Other Current Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, assets	$ 0.1	0.8
Commodities Contracts \| Accrued Liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, liabilities		$ (0.3)

Schedule of Effect of Derivatives Instruments on Condensed Consolidated Statement of Earnings (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative [Line Items]
Amount of gain (loss) recognized in OCI on derivative (effective portion)	$ (2.5)	$ (0.3)	$ (0.9)	$ (3.4)
Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion)		0.4	0.7	(0.4)
Amount of gain (loss) recognized in earnings on a derivative (ineffective portion)	0.0	0.0	0.0	0.0
Foreign Currency Contracts
Derivative [Line Items]
Amount of gain (loss) recognized in OCI on derivative (effective portion)	(2.5)	0.8	(1.0)	(4.1)
Amount of gain (loss) recognized in earnings on a derivative (ineffective portion)	0.0	0.0	0.0	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)	(0.3)	0.3	(1.1)
Commodities Contracts
Derivative [Line Items]
Amount of gain (loss) recognized in OCI on derivative (effective portion)		(1.1)	0.1	0.7
Commodities Contracts \| Cost Of Products Sold
Derivative [Line Items]
Amount of gain (loss) reclassified from accumulated OCI into earnings (effective portion)	0.3	0.7	0.4	0.7
Amount of gain (loss) recognized in earnings on a derivative (ineffective portion)	$ 0.0	$ 0.0	$ 0.0	$ 0.0

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Income Tax Contingency [Line Items]
Effective tax rates	28.80%	27.90%		29.40%
Unrecognized tax benefits	$ 4.2	$ 4.2
Unrecognized tax benefits that would affect the effective tax rate, if recognized	$ 0.6	$ 0.6
Scenario, Forecast
Income Tax Contingency [Line Items]
Effective tax rates			28.00%
Earliest Tax Year \| U.S. federal
Income Tax Contingency [Line Items]
Income tax examinations, years under examination		2015
Latest Tax Year \| U.S. federal
Income Tax Contingency [Line Items]
Income tax examinations, years under examination		2016
State and local \| Earliest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination		2001
State and local \| Latest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination		2016
Non-U.S. \| Earliest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination		2008
Non-U.S. \| Latest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination		2016

Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2017

Sep. 30, 2016

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance

$ 1,515.3

Ending balance

$ 1,665.9

1,665.9

Cumulative foreign currency translation

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance

(58.3)

$ (47.9)

(79.2)

$ (39.4)

Other comprehensive gain (loss) before reclassifications

17.3

(3.5)

38.2

(12.0)

Ending balance

(41.0)

(51.4)

(41.0)

(51.4)

Unrealized net gain (loss) on cash flow derivatives

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance

0.8

(0.3)

0.2

1.2

Other comprehensive gain (loss) before reclassifications

(1.6)

(0.6)

(1.9)

Realized (gains) losses on derivatives reclassified to cost of products sold (net of tax provision (benefit)

(0.2)

(0.4)

0.2

Ending balance

(0.8)

(0.5)

(0.8)

(0.5)

Pension liability

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance

(283.2)

(275.3)

(284.2)

(275.2)

Other comprehensive gain (loss) before reclassifications

(0.1)

(4.3)

(5.3)

Amounts reclassified from accumulated other comprehensive loss

2.7

^[1]

2.5

^[1]

7.9

^[2]

7.6

^[2]

Ending balance

(280.6)

(272.9)

(280.6)

(272.9)

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Income (Loss) [Line Items]

Ending balance

$ (322.4)

$ (324.8)

$ (322.4)

$ (324.8)

[1]	Amortization of pension items: Actuarial losses $ 4.6 (2) $ 4.4 (2) Prior year service cost (0.1 )(2) (0.3 )(2) 4.5 4.1 Income tax benefit (1.8 ) (1.6 ) Reclassification net of income tax benefit $ 2.7 $ 2.5
[2]	Amortization of pension items: Actuarial losses $ 13.4 (2) $ 13.2 (2) Prior year service cost (0.3 )(2) (0.8 )(2) 13.1 12.4 Income tax benefit (5.2 ) (4.8 ) Reclassification net of income tax benefit $ 7.9 $ 7.6

Changes in Accumulated Other Comprehensive Loss by Component (Parenthetical) (Detail) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2017

Sep. 30, 2016

Unrealized net gain (loss) on cash flow derivatives

Accumulated Other Comprehensive Income (Loss) [Line Items]

Realized (gains) losses on derivatives reclassified to cost of products sold, tax provision

$ 0.2

$ 0.3

$ (0.2)

Pension liability

Accumulated Other Comprehensive Income (Loss) [Line Items]

Reclassification, before income tax benefit

$ 4.5

4.1

13.1

12.4

Income tax benefit

(1.8)

(1.6)

(5.2)

(4.8)

Reclassification net of income tax benefit

2.7

^[1]

2.5

^[1]

7.9

^[2]

7.6

^[2]

Actuarial losses

Accumulated Other Comprehensive Income (Loss) [Line Items]

Reclassification, before income tax benefit

^[3]

4.6

4.4

13.4

13.2

Prior year service cost

Accumulated Other Comprehensive Income (Loss) [Line Items]

Reclassification, before income tax benefit

^[3]

$ (0.1)

$ (0.3)

$ (0.8)

[1]	Amortization of pension items: Actuarial losses $ 4.6 (2) $ 4.4 (2) Prior year service cost (0.1 )(2) (0.3 )(2) 4.5 4.1 Income tax benefit (1.8 ) (1.6 ) Reclassification net of income tax benefit $ 2.7 $ 2.5
[2]	Amortization of pension items: Actuarial losses $ 13.4 (2) $ 13.2 (2) Prior year service cost (0.3 )(2) (0.8 )(2) 13.1 12.4 Income tax benefit (5.2 ) (4.8 ) Reclassification net of income tax benefit $ 7.9 $ 7.6
[3]	These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 8-Pensions for additional details