0001193125-20-046736 | 10-K | XBRL Viewer

Selling, general and administrative expenses

$ 2,992.7

$ 3,187.9

$ 2,996.7

Cost of products sold

1,812.0

1,882.4

1,764.3

Gross profit

1,180.7

1,305.5

1,232.4

715.6

753.8

722.8

Restructuring and impairment expenses

0.0

6.7

0.0

Interest expense

11.0

8.4

10.1

Other income - net

(18.0)

(21.2)

(21.3)

Earnings before provision for income taxes

472.1

557.8

520.8

Provision for income taxes

^[1]

102.1

113.6

224.3

Net Earnings

$ 370.0

$ 444.2

$ 296.5

Net Earnings Per Share of Common Stock

$ 2.24

$ 2.60

$ 1.72

Diluted Net Earnings Per Share of Common Stock

$ 2.22

$ 2.58

$ 1.70

[1]	In 2017, the Company recorded a one-time charge of $81.8 million associated with U.S. Tax Reform, primarily related to the repatriation of undistributed foreign earnings. For additional information, see Note 15 “Income Taxes.”

CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net Earnings	$ 370.0	$ 444.2	$ 296.5
Other comprehensive earnings (loss)
Foreign currency translation adjustments	(1.3)	(38.4)	52.7
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of ($0.3) in 2019, ($0.1) in 2018 and $0.7 in 2017	0.9	0.2	(1.1)
Change in pension liability less related income tax (provision) benefit of $(1.0) in 2019, $4.3 in 2018 and $(7.5) in 2017	2.9	(13.1)	12.1
Comprehensive Earnings	$ 372.5	$ 392.9	$ 360.2

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit	$ 0.3	$ 0.1	$ 0.7
Change in pension liability less related income tax (provision) benefit	$ (1.0)	$ 4.3	$ (7.5)

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Activities
Net earnings	$ 370.0	$ 444.2	$ 296.5
Adjustments to reconcile earnings to cash provided by (used in) operating activities:
Depreciation and amortization	78.3	71.9	70.1
U.S. Tax Reform income tax expense		0.0	81.8
Stock based compensation expense	13.3	10.1	9.9
Net changes in operating assets and liabilities, net of acquisitions:
Current assets and liabilities	32.6	(40.0)	(127.8)
Noncurrent assets and liabilities	(38.0)	(37.3)	(4.1)
Cash Provided by Operating Activities	456.2	448.9	326.4
Investing Activities
Acquisitions of businesses	(107.0)		(43.1)
Investments in marketable securities	(272.7)	(523.4)	(583.5)
Proceeds from sales of marketable securities	478.0	595.9	562.7
Capital expenditures	(64.4)	(85.2)	(94.2)
Cash Provided by (Used in) Investing Activities	33.9	(12.7)	(158.1)
Financing Activities
Long-term debt incurred (repaid)	62.6	(189.0)	86.5
Common stock repurchases	(287.7)	(202.6)	(139.1)
Net (payments) proceeds from stock option activity	(0.5)	0.9	(0.9)
Payment of contingent consideration	(1.0)	(2.3)	(1.7)
Dividends paid	(149.2)	(130.1)	(96.9)
Cash Used in Financing Activities	(375.8)	(523.1)	(152.1)
Net increase (decrease) in cash and cash equivalents	114.3	(86.9)	16.2
Cash and cash equivalents-beginning of year	259.7	346.6	330.4
Cash and Cash Equivalents-End of Year	$ 374.0	$ 259.7	$ 346.6

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Class A	Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Balance at Dec. 31, 2016		$ 131.6	$ 164.4	$ 477.6	$ 1,589.1	$ (363.2)	$ (488.1)
Conversion of Class A Common Stock		(0.4)	0.1	0.3
Foreign currency translation adjustments	$ 52.7					52.7
Net earnings	296.5				296.5
Issuance of share units				(4.9)
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of ($0.1) in 2018, $0.7 in 2017 and $0.6 in 2016	(1.1)					(1.1)
Cash dividends on stock					(96.9)
Vesting of share units				(2.9)			2.9
Change in pension liability less related income tax benefit (provision) of $4.3 in 2018, $(7.5) in 2017 and $5.7 in 2016	12.1					12.1
Stock based compensation expense				9.2
Exercises of stock options				1.4			(2.4)
Stock incentives and directors' compensation				5.8			0.2
Shares repurchased	(139.1)						(139.1)
Balance at Dec. 31, 2017	1,644.9	131.2	164.5	486.5	1,788.7	(299.5)	(626.5)
Conversion of Class A Common Stock		(0.2)	0.0	0.2
Foreign currency translation adjustments	(38.4)					(38.4)
Net earnings	444.2				444.2
Issuance of share units				(6.0)
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of ($0.1) in 2018, $0.7 in 2017 and $0.6 in 2016	0.2					0.2
Cash dividends on stock					(130.1)
Vesting of share units				(2.4)			2.5
Change in pension liability less related income tax benefit (provision) of $4.3 in 2018, $(7.5) in 2017 and $5.7 in 2016	(13.1)					(13.1)
Stock based compensation expense				10.1
Exercises of stock options				1.4			(0.7)
Stock incentives and directors' compensation				6.9			0.1
Shares repurchased	(202.6)						(202.6)
Balance at Dec. 31, 2018	1,717.0	131.0	164.5	496.7	2,102.8	(350.8)	(827.2)
Conversion of Class A Common Stock		(0.1)	0.0	0.1
Foreign currency translation adjustments	(1.3)					(1.3)
Net earnings	370.0				370.0
Issuance of share units				(6.2)
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of ($0.1) in 2018, $0.7 in 2017 and $0.6 in 2016	0.9					0.9
Cash dividends on stock					(149.4)
Vesting of share units				(2.2)			2.2
Change in pension liability less related income tax benefit (provision) of $4.3 in 2018, $(7.5) in 2017 and $5.7 in 2016	2.9					2.9
Stock based compensation expense				12.9
Exercises of stock options				0.7			(0.2)
Stock incentives and directors' compensation				7.0			0.2
Shares repurchased	(287.7)						(287.7)
Balance at Dec. 31, 2019	$ 1,666.8	$ 130.9	$ 164.5	$ 509.0	$ 2,323.4	$ (348.3)	$ (1,112.7)

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Unrealized net (loss) gain on cash flow derivative instruments, related income tax benefit (provision)	$ (0.3)	$ (0.1)	$ (0.7)
Change in pension liability, related income tax (provision) benefit	(1.0)	4.3	(7.5)
Accumulated Other Comprehensive Loss
Unrealized net (loss) gain on cash flow derivative instruments, related income tax benefit (provision)	0.3	0.1	0.7
Change in pension liability, related income tax (provision) benefit	$ 1.0	$ 4.3	$ 7.5
Treasury Stock
Exercise of stock options, shares surrendered as proceeds and to pay taxes	87,918	54,180	160,856

Organization and Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Organization and Significant Accounting Policies

1. Organization and Significant Accounting Policies

Organization.

A. O. Smith Corporation (A. O. Smith or 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 and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. The Rest of World segment also manufactures and markets

in-home

air purification products in China.

Consolidation.

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of intercompany transactions.

Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements and notes. Actual results could differ from those estimates.

Fair value of financial instruments.

The carrying amounts of cash, cash equivalents, marketable securities, receivables, floating rate debt and trade payables approximated fair value as of December 31, 2019 and 2018, due to the short maturities or frequent rate resets of these instruments. The fair value of term notes with insurance companies was approximately

122.1

million as of December 31, 2019 compared with the carrying

amount of

120.0

million

for the same date. The fair value of term notes with insurance companies was approximately $120.0 million as of December 31, 2018 which approximated the carrying value.

Foreign currency translation

For all subsidiaries outside the U.S., with the exception of its Barbados, Hong Kong and Mexican companies and its

non-operating

companies in the Netherlands, the Company uses the local currency as the functional currency. For those operations using a functional currency other than the U.S. dollar, assets and liabilities were translated into U.S. dollars at

year-end

exchange rates, and revenues and expenses were translated at weighted-average exchange rates. The resulting translation adjustments were recorded as a separate component of stockholders’ equity. The Barbados, Hong Kong, Mexican and Netherlands companies use the U.S. dollar as the functional currency. Gains and losses from foreign currency transactions were included in net earnings and were not significant in 2019, 2018, or 2017.

Cash and cash equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Marketable securities

The Company considers all highly liquid investments with maturities greater than 90 days when purchased to be marketable securities. At December 31, 2019, the Company’s marketable securities consisted of bank time deposits with original maturities ranging from 180 days to 12 months and were primarily located at investment grade rated banks in China.

Inventory valuation.

Inventories are carried at lower of cost and net realizable value. Cost is determined on the

last-in,

first-out

(LIFO) method for a majority of the Company’s domestic inventories, which comprised 61 percent and 64 percent of the Company’s total inventory at December 31, 2019 and 2018, respectively. Inventories of foreign subsidiaries, the remaining domestic inventories and supplies were determined using the

first-in,

first-out

(FIFO) method.

Property, plant and equipment.

Property, plant and equipment are stated at cost. Depreciation is computed primarily by the

straight-line

method. The estimated service lives used to compute depreciation are generally 25 to 50 years for buildings, three to 20 years for equipment and three to 15 years for software. Maintenance and repair costs are expensed as incurred.

Goodwill and other intangibles.

Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment on an annual basis. Separable intangible assets, primarily comprised of customer relationships, that are not deemed to have an indefinite life are amortized on a straight-line basis over their estimated useful lives which range from five to 25 years.

Impairment of long-lived and amortizable intangible assets.

Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected

undiscounted

cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. Such analyses necessarily involve significant judgment.

Product warranties.

The Company’s products carry warranties that generally range from one to ten years and are based on terms that are consistent with the market.

The Company records a liability for the expected cost of warranty-related claims at the time of sale and is estimated based on the warranty period, product type and loss experience using actual historical failure rates and estimated costs of product replacement. The variables used in the calculation of the provision are reviewed by the Company at least annually. At times, warranty issues may arise which are beyond the scope of the Company’s historical experience. The Company provides for any such warranty issues as they become known and estimable. The allocation of the warranty liability between current and long-term is based on expected warranty claims to be paid in the next year as determined by historical product failure rates.

The following table presents the Company’s product warranty liability activity in 2019 and 2018:


Years ended December 31 (dollars in millions)	2019			2018
Balance at beginning of year	$	139.4		$	141.2
Expense		44.3			40.7
Claims settled		(49.4	)		(42.5	)

Balance at end of year	$	134.3		$	139.4

Derivative instruments.

The Company utilizes certain derivative instruments to enhance its ability to manage currency as well as raw materials price risk. The Company does not enter into contracts for speculative purposes. The fair values of all derivatives are recorded in the consolidated balance sheets. The change in a derivative’s fair value is recorded each period in current earnings or accumulated other comprehensive loss (AOCL), depending on whether the derivative is designated as part of a hedge transaction and if so, the type of hedge transaction. See Note 14, “Derivative Instruments” of the notes to consolidated financial statements for disclosure of the Company’s derivative instruments and hedging activities.

Fair Value Measurements.

Accounting Standards Codification

(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.

Assets measured at fair value on a recurring basis are as follows (dollars in millions):


Fair Value Measurement Using	December 31, 2019		December 31, 2018
Quoted prices in active markets for identical assets (Level 1)	$	177.4	$	385.3
Significant other observable inputs (Level 2)		6.9		7.5

There were no changes in the valuation techniques used to measure fair values on a recurring basis.

Revenue recognition.

, “Revenue Recognition” for disclosure of the Company’s revenue recognition activities.

Advertising.

The majority of advertising costs are charged to operations as incurred and amounted to $110.7 million, $132.1 million and $126.9 million during 2019, 2018 and 2017, respectively. Included in total advertising costs are expenses associated with store displays for water heater, water treatment and air purification products in China that are amortized over 12 to 36 months which totaled $28.5 million, $38.7 million and $43.0 million during 2019, 2018 and 2017, respectively.

Research and development.

Research and development costs are charged to operations as incurred and amounted to $87.9 million, $94.0 million and $86.4 million during 2019, 2018 and 2017, respectively.

Environmental costs.

The Company accrues for costs associated with environmental obligations when such costs are probable and reasonably estimable. Costs of estimated future expenditures are not discounted to their present value. Recoveries of environmental costs from other parties are recorded as assets when their receipt is considered probable. The accruals are adjusted as facts and circumstances change.

Stock-based compensation.

Compensation cost is recognized using the straight-line method over the vesting period of the award and forfeitures are recognized as they occur. In accordance with amended ASC 718, the Company recognized $2.3 million, $2.4 million, and $11.6 million of discrete income tax benefits on settled stock based compensation awards during 2019, 2018, and 2017 respectively.

Income taxes.

The provision for income taxes is computed using the asset and liability method, in accordance with ASC 740

Income Taxes

, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled and are classified as noncurrent in the consolidated balance sheet. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon settlement.

Earnings per share of common stock.

The Company is not required to use the

two-class

method of calculating earnings per share since its Class A Common Stock and Common Stock have equal dividend rights. 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:


	2019		2018		2017
Denominator for basic earnings per share - weighted-average shares outstanding		165,450,441		170,589,345		172,666,056
Effect of dilutive stock options, restricted stock and share units		1,260,456		1,604,695		1,939,133

Denominator for diluted earnings per share		166,710,897		172,194,040		174,605,189

Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (FASB) amended Accounting Standards Codification (ASC) 740,

Income Taxes

(issued under Accounting Standards Update (ASU) 2019-12, “Simplifying the Accounting for Income Taxes”). This amendment removes certain exceptions to the general principles of ASC 740, and clarifies and amends existing guidance to improve consistent application. The amendment requires adoption on January 1, 2021, with early adoption permitted. The Company is currently evaluating the impact ASU 2019-12 will have on its consolidated financial statements.

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 June 2016, the FASB issued ASC 326,

Financial Instruments – Credit Losses

(issued under ASU

2016-13)

which modifies the measurement of expected credit losses on certain financial instruments. ASU

2016-13

requires adoption on January 1, 2020. The adoption of ASU

2016-13

will not 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 classified as operating leases. The Company applied the modified retrospective transition method and elected the transition option to use the effective date of January 1, 2019, as the date of the initial application. The Company elected the package of practical expedients as well as a separate practical expedient not to separate lease and

non-lease

components. The Company did not elect the hindsight practical expedient. The adoption of ASU

2016-02

did not have a material impact on the Company’s consolidated balance sheets, statements of earnings or statements of cash flows. Refer to Note 4, Leases, for additional information.

Revenue Recognition

12 Months Ended

Dec. 31, 2019

Revenue Recognition Disclosure [Text Block]

2. Revenue Recognition

Substantially all of the Company’s sales are from contracts with customers for the purchase of its products. Contracts and customer purchase orders are used to determine the existence of a sales contract. Shipping documents are used to verify shipment. For substantially all of its products, the Company transfers control of products to the customer at the point in time when title and risk are passed to the customer, which generally occurs upon shipment of the product. Each unit sold is considered an independent, unbundled performance obligation. The Company’s sales arrangements do not include other performance obligations that are material in the context of the contract. The nature, timing and amount of revenue for a respective performance obligation are consistent for each customer. The Company measures the sales transaction price based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Sales and value added taxes are excluded from the measurement of transaction price. The Company’s payment terms for the majority of its customers are 30 to 90 days from shipment.

Additionally, certain customers in China pay the Company prior to the shipment of products resulting in a customer deposits liability of $49.6 million and $47.0 million at December 31, 2019 and December 31, 2018, respectively. The Company assesses collectability of customer receivables based on the creditworthiness of a customer as determined by credit checks and analysis, as well as the customer’s payment history. The Company’s allowance for doubtful accounts was $6.7 million and $6.4 million at December 31, 2019 and December 31, 2018, respectively.

Rebates and incentives are based on pricing agreements and are tied to sales volume. The amount of revenue is reduced for variable consideration related to customer rebates which are calculated using expected values and are based on program specific factors such as expected rebate percentages based on expected volumes. In situations where the customer has the right to return eligible products, the Company reduces revenue for its estimates of expected product returns, which are primarily based on an analysis of historical experience. Changes in such accruals may be required if actual sales volume differs from estimated sales volume or if future returns differ from historical experience. Shipping and handling costs billed to customers are included in net

sales and the related costs are included in cost of products sold and are activities performed to fulfill the promise to transfer products.

Disaggregation of Net Sales

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 and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. The Rest of World segment also manufactures and markets

in-home

air purification products in China.

As each segment manufactures and markets products in its respective region of the world, the Company has determined that geography is the primary factor in reporting its sales. The Company further disaggregates its North America segment sales by major product line as each of North America’s major product lines is sold through distinct distribution channels and these product lines may be impacted differently by certain economic factors. Within the Rest of World segment, particularly in China and India, the Company’s major customers purchase across the Company’s product lines, utilizing the same distribution channel regardless of product type. In addition, the impact of economic factors is unlikely to be differentiated by product line in the Rest of World segment.

The North America segment major product lines are defined as the following:

Water heaters

The Company’s water heaters are open water heating systems that heat potable water. Typical applications for water heaters include residences, restaurants, hotels and motels, office buildings, laundries, car washes and small businesses. The Company sells residential and commercial water heater products and related parts through its wholesale distribution channel, which includes more than 1,300 independent wholesale plumbing distributors. The Company also sells residential water heaters and related parts through retail and maintenance, repair and operations (MRO) channels. A significant portion of the Company’s water heater sales in the North America segment is derived from the replacement of existing products.

Boilers

The Company’s boilers are closed loop water heating systems used primarily for space heating or hydronic heating. The Company’s boilers are primarily used in applications in commercial settings for hospitals, schools, hotels and other large commercial buildings while residential boilers are used in homes, apartments and condominiums. The Company’s boiler distribution channel is comprised primarily of manufacturer representative firms, with the remainder of our boilers distributed through wholesale channels. The Company’s boiler sales in the North America segment are derived from a combination of replacement of existing products and new construction.

Water treatment

products

The Company’s water treatment products range from

point-of-entry

water softeners, solutions for problem well water, and whole-home water filtration products to

on-the-go

filtration bottles and

point-of-use

carbon and reverse osmosis products. Typical applications for the Company’s water treatment products include residences, restaurants, hotels and offices. The Company sells water treatment products through its wholesale and retail distribution channels, similar to water heater products and related parts. The Company’s water treatment products are also sold through independent water quality dealers as well as directly to consumers including through internet sales channels. A portion of the Company’s sales of water treatment products in the North America segment is comprised of replacement filters.

The following table disaggregates the Company’s net sales by segment. As described above, the Company’s North America segment sales are further disaggregated by major product line. In addition, the Company’s Rest of World segment sales are disaggregated by China and all other Rest of World.


Years ending December 31 (dollars in millions)	2019			2018			2017
North America
Water heaters and related parts	$	1,742.6		$	1,757.0		$	1,663.0
Boilers and related parts		199.5			200.4			183.3
Water treatment products (1)		141.4			87.3			58.5

Total North America		2,083.5			2,044.7			1,904.8
Rest of World
China	$	827.2		$	1,070.4		$	1,029.4
All other Rest of World		108.6			103.2			86.9

Total Rest of World		935.8			1,173.6			1,116.3
Inter-segment sales		(26.6	)		(30.4	)		(24.4	)

Total Net Sales	$	2,992.7		$	3,187.9		$	2,996.7

(1)	Includes the results of Water-Right and Hague Quality Water International (Hague) from the date of acquisition of April 8, 2019 and September 5, 2017, respectively.

Acquisitions

12 Months Ended

Dec. 31, 2019

Acquisitions

3. Acquisitions

On April 8, 2019, the Company acquired 100 percent of the shares of Water-Right, Inc. and its affiliated entities (Water-Right), a Wisconsin-based water treatment company. With the addition of Water-Right, the Company grew its North America water treatment platform. Water-Right is included in the Company’s North America segment for reporting purposes.

The Company paid an aggregate cash purchase price of $107.0 million, net of cash acquired. In addition, the Company established a $4.0 million escrow to satisfy any potential obligations of the former owners of Water-Right, should they arise.

The following table summarizes the preliminary estimate of the fair value of the assets acquired and liabilities assumed at the date of acquisition of Water-Right 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.

Significant assumptions used to estimate the fair value of intangible assets acquired include discount rates and certain assumptions that form the basis of the forecasted results, including revenue growth rates, attrition rates and royalty rates.

The preliminary $60.4 million of acquired identifiable intangible assets was comprised of the following: $40.2 million of customer relationships being amortized over 20 years, $19.0 million of trademarks not subject to amortization, and $1.2 million of

non-compete

agreements being amortized over 7.5 years.


April 8, 2019 (dollars in millions)
Current assets, net of cash acquired	$	9.7
Property, plant and equipment		8.6
Intangible assets		60.4
Goodwill		31.0

Total assets acquired		109.7
Current liabilities		(2.7	)

Net assets acquired	$	107.0

As required under ASC 805

Business Combinations

, Water-Right’s

results of operations have been included in the Company’s consolidated financial statements from April 8, 2019, the date of acquisition. Revenues and

pre-tax

earnings associated with Water-Right included in the consolidated statement of earnings for the

year

ended

December 31, 2019 totaled $44.3 million and $7.1 million, respectively, which included $7.5 million of operating earnings less $0.4 million of acquisition-related costs incurred by the Company resulting from the acquisition.

On September 5, 2017, the Company acquired

100

percent of the shares of 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. 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 $0.2 million.

As of the acquisition date, the Company estimated the fair value of the holdback liability and additional contingent consideration at $1.5 million and $2.0 million, respectively. During 2018, the Company finalized the amount of acquisition date working capital, which resulted in a $1.3 million payment to the former owners of Hague related to the aforementioned holdback. The Company also paid $2.0 million of contingent payments associated with the amount by which sales of products manufactured by Hague increase over the

two-year

period ending June 30, 2019.

The following table summarizes the allocation of fair value of the assets acquired and liabilities assumed at the date of acquisition of Hague for purposes of allocating the purchase price.

The $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		22.2

Total assets acquired		49.7
Current liabilities		(5.6	)
Long-term liabilities		(1.0	)

Total liabilities assumed		(6.6	)

Net assets acquired	$	43.1

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

4. Leases

The Company’s lease portfolio consists of operating leases for buildings and equipment, such as forklifts and copiers, primarily in the United States and China. The Company defines a lease as a contract that gives the Company the right to control the use of a physical asset for a stated term. The Company pays the lessor for that right, with a series of payments defined in the contract and a corresponding right of use operating lease asset and liability are recorded. The Company has elected not to record leases with an initial term of 12 months or less on its condensed consolidated balance sheet. To determine balance sheet amounts, required legal payments are discounted using the Company’s incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would incur if it were to borrow, on a collateralized basis, an amount equal to the value of the leased item over a similar term, in a similar economic environment. Variable lease components not based on an index or rate are excluded from the measurement of the lease asset and liability and expensed as incurred for all asset classes.

Certain leases include one or more options to renew or terminate. Renewal terms can extend the lease term from one to five years and options to terminate can be effective within one year. The exercise of lease renewal or termination is at the Company’s discretion and when it is determined to be reasonably certain to renew or terminate, the option is reflected in the measurement of lease asset and liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants or material subleases. Cash flows associated with leases are materially consistent with the expense recorded in the condensed consolidated statement of earnings.

Supplemental balance sheet information related to leases is as follows:


(dollars in millions)
	December 31, 2019
Liabilities
Short term: Accrued liabilities	$	12.0
Long term: Operating lease liabilities		38.7

Total operating lease liabilities	$	50.7
Less: Rent incentives and deferrals		(3.8	)

Assets
Operating lease assets	$	46.9

Lease Term and Discount Rate	December 31, 2019
Weighted-average remaining lease term		10 years
Weighted-average discount rate		3.93%

The components of lease expense were as follows:

(1)	Includes short-term lease expense of $2.0 million for the twelve months ended December 31, 2019. Includes variable lease cost of $2.1 million for the twelve months ended December 31, 2019.

Rent expense, including payments under operating leases, was $24.0 million and $23.9 million in 2018 and 2017 respectively.

Maturities of lease liabilities were as follows:


(dollars in millions)
	December 31, 2019
2020	$	14.0
2021		10.5
2022		9.0
2023		4.9
2024		3.7
After 2024		22.8

Total lease payments		64.9
Less: imputed interest		(14.2	)

Present value of operating lease liabilities	$	50.7

Restructuring and Impairment Expenses

12 Months Ended

Dec. 31, 2019

Restructuring and Impairment Expenses

5. Restructuring and Impairment Expenses

On March 21, 2018, the Company announced a move of manufacturing operations from its Renton, Washington facility to other U.S. facilities. The Company recognized $6.7 million of restructuring and impairment expenses, comprised of $4.0 million of severance and compensation related costs, lease exit costs of $2.1 million and impairment charges related to long-lived assets totaling $0.6 million, as well as a corresponding $1.7 million tax benefit related to the charges. As of December 31, 2019, the consolidation of the Renton facility to other U.S. facilities was complete.

The following table presents an analysis of the Company’s restructuring reserve for the years ended December 31, 2019 and 2018:


(dollars in millions)
	Severance Costs			Lease Exit Costs			Fixed Assets Impairment			Total
Balance at January 1, 2018	$	—		$	—		$	—		$	—
Restructuring expense recognized		4.0			2.1			0.6			6.7
Cash payments and disposals		(3.8	)		(0.8	)		(0.6	)		(5.2	)

Balance at December 31, 2018		0.2			1.3			—			1.5
Cash payments and disposals		(0.2	)		(0.8	)		—			(1.0	)

Balance at December 31, 2019	$	—		$	0.5		$	—		$	0.5

Statement of Cash Flows

12 Months Ended

Dec. 31, 2019

Statement of Cash Flows

6. Statement of Cash Flows

Supplemental cash flow information is as follows:


Years ended December 31 (dollars in millions)	2019			2018			2017
Net change in current assets and liabilities, net of acquisitions:
Receivables	$	62.4		$	(54.6	)	$	(75.8	)
Inventories		6.3			(7.7	)		(37.5	)
Other current assets		(4.8	)		10.0			(9.0	)
Trade payables		(35.4	)		8.8			(5.1	)
Accrued liabilities, including payroll and benefits		14.2			(3.5	)		12.2
Income taxes		(10.1	)		7.0			(12.6	)

	$	32.6		$	(40.0	)	$	(127.8	)

Inventories

12 Months Ended

Dec. 31, 2019

Inventories

7. Inventories


December 31 (dollars in millions)	2019			2018
Finished products	$	136.8		$	137.6
Work in process		21.7			23.3
Raw materials		168.3			174.4

Inventories, at FIFO cost		326.8			335.3
LIFO reserve		(23.8	)		(30.6	)

	$	303.0		$	304.7

The Company recognized

after-tax

LIFO income of

(

0.7

)

million, $(0.4) million and $(0.3) million in 2019, 2018 and 2017, respectively.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment

8. Property, Plant and Equipment


December 31 (dollars in millions)	2019		2018
Land	$	11.6	$	11.2
Buildings		334.1		323.3
Equipment		686.9		643.8
Software		124.3		118.5

		1,156.9		1,096.8
Less accumulated depreciation and amortization		611.5		556.8

	$	545.4	$	540.0

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Other Intangible Assets

9. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill during the years ended December 31, 2019 and 2018 consisted of the following:


(dollars in millions)	North America			Rest of World			Total
Balance at December 31, 2017	$	457.2		$	59.5		$	516.7
Currency translation adjustment		(3.3	)		(0.4	)		(3.7	)

Balance at December 31, 2018		453.9			59.1			513.0
Acquisition		31.0			—			31.0
Currency translation adjustment		2.0			—			2.0

Balance at December 31, 2019	$	486.9		$	59.1		$	546.0

The carrying amount of other intangible assets consisted of the following:


	2019							2018
December 31 (dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Amortizable intangible assets:
Patents	$	3.7	$	(3.5	)	$	0.2	$	3.7	$	(3.3	)	$	0.4
Customer lists		278.0		(123.6	)		154.4		236.8		(108.2	)		128.6

Total amortizable intangible assets		281.7		(127.1	)		154.6		240.5		(111.5	)		129.0
Indefinite-lived intangible assets:
Trade names		183.8		—			183.8		164.1		—			164.1

Total intangible assets	$	465.5	$	(127.1	)	$	338.4	$	404.6	$	(111.5	)	$	293.1

Amortization expenses of other intangible assets of $15.8 million, $14.3 million, and $13.7 million were recorded in 2019, 2018 and 2017, respectively. In the future, excluding the impact of any future acquisitions, the Company expects amortization expense of approximately $15.7 million annually and the intangible assets will be amortized over a weighted-average period of 13 years.

The Company concluded that no goodwill impairment existed at the time of the annual impairment tests which were performed in the fourth quarters of 2019, 2018 and 2017. No impairments of other intangible assets were recorded in 2019, 2018 and 2017.

Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

10. Debt


December 31 (dollars in millions)	2019		2018
Bank credit lines, average year-end interest rates of 2.4% for 2019 and 3.4% for 2018	$	4.7	$	17.1
Revolving credit agreement borrowings, average year-end interest rates of 2.8% for 2019 and 3.5% for 2018		85.0		10.0
Commercial paper, average year-end interest rates of 2.2% for 2019 and 2.7% for 2018		74.3		74.3
Term notes with insurance companies, expiring 2029-2034, average year-end interest rates of 3.3% for 2019 and 3.3% for 2018		120.0		120.0

		284.0		221.4
Less long-term debt due within one year		6.8		—

Long-term debt	$	277.2	$	221.4

In December 2016, the Company completed 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 the Company’s bank credit lines and commercial paper borrowings are supported by the revolving credit agreement. As a result of the long-term nature of this facility, the commercial paper and credit line borrowings are classified as long-term debt at December 31, 2019 and 2018. At its option, the Company either maintains cash balances or pays fees for bank credit and services.

Scheduled maturities of

long-term

debt within each of the five years subsequent to December 31, 2019 are as follows:


Years ending December 31 (dollars in millions)	Amount
2020	$	6.8
2021		170.8
2022		6.8
2023		10.0
2024		10.0

Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Stockholders' Equity

11. Stockholders’ Equity

The Company’s authorized capital consists of three million shares of Preferred Stock $1 par value, 27 million shares of Class A Common Stock $5 par value, and 240 million shares of Common Stock $1 par value. The Common Stock has equal dividend rights with Class A Common Stock and is entitled, as a class, to elect

one-third

of the Board of Directors and has 1/10th vote per share on all other matters. Class A Common Stock is convertible to Common Stock on a one for one basis.

There were 10,442 shares during 2019, 48,232 shares during 2018 and 73,792 shares during 2017, of Class A Common Stock converted into Common Stock. Regular dividends paid on the A. O. Smith Corporation Class A Common Stock and Common Stock amounted to $0.90, $0.76 and $0.56 per share in 2019, 2018 and 2017, respectively.

In June 2019, our Board of Directors approved adding 3 million shares of Common Stock to an existing discretionary share repurchase authority. Under the share repurchase program, the Company may purchase the Common Stock through a combination of Rule

10b5-1

automatic trading plan and discretionary purchases in accordance with applicable securities laws. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, as well as working capital requirements, general business conditions and other factors, including alternative investment opportunities. The stock repurchase authorization remains effective until terminated by the Company’s Board of Directors which may occur at any time, subject to the parameters of any Rule

10b5-1

automatic trading plan that the Company may then have in effect. In 2019, the Company repurchased 6,113,038 shares at an average price of $47.06 per share and at a total cost of $287.7 million. As of December 31, 2019, there were 2,962,215 shares remaining on the existing repurchase authorization. In 2018, the Company repurchased 3,797,800 shares at a cost of $202.6 million. In 2017, the Company repurchased 2,533,350 shares at a cost of $139.1 million.

At December 31, 2019, a total of 130,380 and 28,205,806 shares of Class A Common Stock and Common Stock, respectively, were held as treasury stock. At December 31, 2018, a total of 130,380 and 22,418,066 shares of Class A Common Stock and Common Stock, respectively, were held as treasury stock.

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


	Years ended December 31,
	2019			201 8
Cumulative foreign currency translation
Balance at beginning of period	$	(64.9	)	$	(26.5	)
Other comprehensive gain (loss) before reclassifications		(1.3	)		(38.4	)

Balance at end of period		(66.2	)		(64.9	)

Unrealized net (loss) gain on cash flow derivatives
Balance at beginning of period		(0.7	)		(0.9	)
Other comprehensive (loss) gain before reclassifications		(0.3	)		0.6
Realized losses (gains) on derivatives reclassified to cost of products sold (net of tax (benefit) provision of ($0.5) and $0.2 in 2019 and 2018, respectively) (1)		1.2			(0.4	)

Balance at end of period		0.2			(0.7	)

Pension liability
Balance at beginning of period		(285.2	)		(272.1	)
Other comprehensive (loss) gain before reclassifications		(9.5	)		(27.0	)
Amounts reclassified from accumulated other comprehensive loss (1)		12.4			13.9

Balance at end of period		(282.3	)		(285.2	)

Total accumulated other comprehensive loss, end of period	$	(348.3)		$	(350.8)

(1)	Amounts reclassified from accumulated other comprehensive loss:

Realized loss (gains) on derivatives reclassified to cost of products sold		1.7			(0.6	)
Tax (benefit) provision		(0.5	)		0.2

Reclassification net of tax	$	1.2		$	(0.4	)

Amortization of pension items:
Actuarial losses	$	16.8	(2)	$	19.0	(2)
Prior year service cost		(0.5	) (2)		(0.5	) (2)

		16.3			18.5
Tax benefit		(3.9	)		(4.6	)

Reclassification net of tax	$	12.4		$	13.9

(2)	These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 13 “Pensions and Other Post-retirement Benefits” for additional details.

Stock Based Compensation

12 Months Ended

Dec. 31, 2019

Stock Based Compensation

12. 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 December 31, 2019, was 1,855,560. Upon stock option exercise or share unit vesting, shares are issued from treasury stock.

Total stock based compensation expense recognized in 2019, 2018 and 2017 was $13.3 million, $10.1 million and $9.9 million, respectively.

Stock Options

The stock options granted in 2019, 2018 and 2017 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 2019, 2018 and 2017 expire ten years after the date of grant. The Company’s stock options are expensed ratably over the three year vesting period. Included in stock option expense for 2019, 2018 and 2017 was $6.4 million, $4.4 million and $4.7 million, respectively. Included in the stock option expense recognized in 2019, 2018 and 2017 is 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.

Changes in options, all of which relate to the Company’s Common Stock, were as follows:


Years Ended December 31	2019					2018					2017
	Number of Options			Weighted Avg. Per Share Exercise Price		Number of Options			Weighted Avg. Per Share Exercise Price		Number of Options			Weighted Avg. Per Share Exercise Price
Number of shares under options:
Outstanding at beginning of year		2,432,689			33.05		2,263,126			27.73		2,664,333			21.69
Granted		557,045			49.49		373,220			61.62		358,150			50.16
Exercised (1)		(249,840	)		18.55		(176,302	)		22.93		(752,603	)		16.93
Forfeited		(11,544	)		54.02		(27,355	)		47.95		(6,754	)		37.46

Outstanding at end of year (2)		2,728,350			37.64		2,432,689			33.05		2,263,126			27.73

Exercisable at end of year (3)		1,820,743			30.07		1,665,184			24.52		1,387,259			20.48

(1)	The total intrinsic value of options exercised in 2019, 2018 and 2017 was $7.7 million, $6.8 million and $29.1 million, respectively.

(2)	The weighted average remaining contractual life of options outstanding was 7 years at December 31, 2019, December 31, 2018, and December 31, 2017. The aggregate intrinsic value of options outstanding at December 31, 2019 was $34.2 million.

(3)	The weighted average remaining contractual life of options exercisable was 6 years at December 31, 2019, December 31, 2018 and, December 31, 2017. The aggregate intrinsic value of options exercisable at December 31, 2019 was $34.2 million.


	Number of Options			Weighted Avg. Per Share Exercise Price
Nonvested options at beginning of year		767,505			51.55
Granted		557,045			49.49
Vested		(408,648	)		45.87
Forfeited		(8,295	)		53.88

Nonvested options at end of year		907,607			52.82

The weighted-average fair value per option at the date of grant during 2019, 2018 and 2017, using the Black-Scholes option-pricing model, was $10.83, $14.80 and $13.04, respectively. Assumptions were as follows:


	2019			2018			2017
Expected life (years)		5.5			5.7			5.7
Risk-free interest rate		2.7	%		2.9	%		2.4	%
Dividend yield		1.6	%		1.0	%		1.0	%
Expected volatility		22.8	%		22.1	%		26.5	%

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)

In 2015, certain

non-U.S.-based

employees were granted SARs. Each SAR award granted 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 had 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 2019, 2018 or 2017. As of December 31, 2019, there were 14,880 SARs outstanding and exercisable. In 2018, there were 16,170 SARs outstanding and exercisable. In 2017, there were 23,660 SARs outstanding and 15,774 were exercisable. Stock based compensation expense attributable to SARS was minimal in 2019, 2018 and 2017.

Restricted Stock and Share Units

Participants may also be awarded shares of restricted stock or share units under the Plan. Share units vest three years after the date of grant. The Company granted 140,102, 106,581 and 107,853 share units under the plan in 2019, 2018 and 2017, respectively.

The share units were valued at $6.9 million, $6.6 million and $5.4 million at the date of issuance in 2019, 2018 and 2017, respectively, based on the price of the Company’s Common Stock at the date of grant. The shares units are recognized as compensation expense ratably over the three-year vesting period; however, included in share unit expense was expense associated with the accelerated vesting of share unit awards for certain employees who are retirement eligible or will become retirement eligible during the vesting period. Stock based compensation expense of $6.9 million, $5.7 million and $5.2 million was recognized in 2019, 2018 and 2017, respectively. Certain

non-U.S.-based

employees receive the cash value of the share price at the vesting date in lieu of shares. Unvested cash-settled awards are remeasured at each reporting period.

A summary of share unit activity under the plan is as follows:


	Number of Units			Weighted-Average Grant Date Value
Issued and unvested at January 1, 2019		379,601		$	42.93
Granted		140,102			49.44
Vested		(147,642	)		31.35
Forfeited		(5,959	)		55.48

Issued and unvested at December 31, 2019		366,102			49.92

Pension and Other Post-retirement Benefits

12 Months Ended

Dec. 31, 2019

Pension and Other Post-retirement Benefits

13. Pension and Other Post-retirement Benefits

The Company provides retirement benefits for all U.S. employees including benefits for employees of previously owned businesses which were earned up to the date of sale. The Company also has two foreign pension plans, neither of which is material to the Company’s financial position.

The Company has a defined contribution plan which matches 100 percent of the first one percent of contributions made by participating employees and matches 50 percent of the next five percent of employee contributions. The Company also has defined contribution plans for certain hourly employees which provide for matching Company contributions.

The Company also has a defined benefit plan for salaried employees and its

non-union

hourly workforce. In 2009, the Company announced U.S. employees hired after January 1, 2010, would not participate in the defined benefit plan, and benefit accruals for the majority of current salaried and hourly employees sunset on December 31, 2014. An additional Company contribution is made to the defined contribution plan in lieu of benefits earned in a defined benefit plan. The Company also has defined benefit and contribution plans for certain union hourly employees.

The Company has unfunded defined-benefit post-retirement plans covering certain hourly and salaried employees that provide medical and life insurance benefits from retirement to age 65. Certain hourly employees retiring after January 1, 1996, are subject to a maximum annual benefit and salaried employees hired after December 31, 1993, are not eligible for post-retirement medical benefits.

Obligations and Funded Status

Pension and Post-retirement Disclosure Information under ASC 715,

Compensation – Retirement Benefits

(ASC 715)

The following tables present the changes in benefit obligations, plan assets and funded status for domestic pension and post-retirement plans and the components of net periodic benefit costs.


	Pension Benefits						Post-retirement Benefits
Years ended December 31 (dollars in millions)	2019			2018			2019			2018
Accumulated benefit obligation (ABO) at December 31	$	868.7		$	833.0			N/A			N/A
Change in projected benefit obligations (PBO)
PBO at beginning of year	$	(833.8	)	$	(922.7	)	$	(7.0	)	$	(7.6	)
Service cost		(1.6	)		(2.0	)		(0.1	)		(0.2	)
Interest cost		(31.6	)		(28.9	)		(0.3	)		(0.3	)
Participant contributions		—			—			(0.1	)		(0.1	)
Actuarial (loss) gain including assumption changes		(98.6	)		61.2			(1.2	)		0.6
Benefits paid		96.3			58.6			0.7			0.6

PBO at end of year	$	(869.3	)	$	(833.8	)	$	(8.0	)	$	(7.0	)

Change in fair value of plan assets
Plan assets at beginning of year	$	777.5		$	874.8		$	—		$	—
Actual return on plan assets		143.4			(39.3	)		—			—
Contribution by the Company		7.8			0.6			0.5			0.5
Participant contributions		—			—			0.1			0.1
Benefits paid		(96.3	)		(58.6	)		(0.6	)		(0.6	)

Plan assets at end of year	$	832.4		$	777.5		$	—		$	—

Funded status	$	(36.9	)	$	(56.3	)	$	(8.0	)	$	(7.0	)
Amount recognized in the balance sheet
Current liabilities	$	(9.3	)	$	(7.1	)	$	(0.5	)	$	(0.5	)
Non-current liabilities		(27.6	)		(49.2	)		(7.5	)		(6.5	)

Net pension liability at end of year	$	(36.9	)*	$	(56.3	)*	$	(8.0	)	$	(7.0	)

Amounts recognized in accumulated other comprehensive loss before tax
Net actuarial loss (gain)	$	463.1		$	468.9		$	(0.2	)	$	(1.4	)
Prior service cost		0.5			—			(1.8	)		(2.2	)

Total recognized in accumulated other comprehensive loss	$	463.6		$	468.9		$	(2.0	)	$	(3.6	)

*	In addition, the Company has a liability for a foreign pension plan of $0.2 million at December 31, 2019 and 2018.


	Pension Benefits									Post-retirement Benefits
Years ended December 31 (dollars in millions)	2019			2018			2017			2019			2018			2017
Net periodic benefit cost
Service cost	$	1.6		$	2.0		$	1.8		$	0.1		$	0.1		$	0.1
Interest cost		31.6			28.9			30.0			0.3			0.3			0.3
Expected return on plan assets		(57.3	)		(58.1	)		(58.4	)		—			—			—
Amortization of unrecognized:
Net actuarial loss (gain)		16.8			19.0			17.9			—			—			(0.1	)
Prior service cost		(0.5	)		(0.5	)		(0.4	)		(0.4	)		(0.4	)		(0.4	)

Defined-benefit plan income		(7.8	)		(8.7	)		(9.1	)	$	—		$	—		$	(0.1	)

Curtailment and other one-time charges		1.6			—			—
Various U.S. defined contribution plans cost		13.3			12.2			12.0

	$	7.1		$	3.5		$	2.9

Other changes in plan assets and projected benefit obligation recognized in other comprehensive loss
Net actuarial loss (gain)	$	12.6		$	36.1		$	(3.8	)	$	1.2		$	(0.6	)	$	1.1
Amortization of net actuarial (loss) gain		(18.4	)		(19.0	)		(17.9	)		—			—			0.1
Amortization of prior service cost		0.5			0.5			0.5			0.4			0.4			0.4

Total recognized in other comprehensive loss		(5.3	)		17.6			(21.2	)		1.6			(0.2	)		1.6

Total recognized in net periodic (benefit) cost and other comprehensive loss	$	(11.5	)	$	8.9		$	(30.3	)	$	1.6		$	(0.2	)	$	1.5

The estimated net actuarial loss and prior service cost for the pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2020 are $19.8 million and $(0.5) million, respectively. The estimated net actuarial loss and prior year service cost for the post-retirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2020 are $

million and $(0.3) million, respectively. As permitted under ASC 715, the amortization of any prior service cost was previously determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plan.

The 2019 and 2018 after tax adjustments for additional minimum pension liability resulted in other comprehensive gain (loss) of $2.9 million and ($13.1) million, respectively.

Actuarial assumptions used to determine benefit obligations at December 31 are as follows:


	Pension Benefits						Post-retirement Benefits
	2019			2018			2019			2018
Discount rate		3.18	%		4.32	%		3.40	%		4.46	%

Actuarial assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows:


	Pension Benefits									Post-retirement Benefits
Years ended December 31	2019			2018			2017			2019			2018			2017
Discount rate		4.32	%		3.65	%		4.15	%		4.45	%		3.79	%		4.40	%
Expected long-term return on plan assets		7.15	%		7.15	%		7.50	%		n/a			n/a			n/a
Rate of compensation increase		4.00	%		4.00	%		4.00	%		4.00	%		4.00	%		4.00	%

Assumptions

In developing the expected long-term rate of return on plan assets assumption, the Company evaluated its pension plan’s target and actual asset allocation and expected long-term rates of return of equity and bond indices. The Company also considered its pension plan’s historical

ten-year

and

25-year

compounded annualized returns of 9.2 percent and 9.3 percent, respectively.

Assumed health care cost trend rates

Assumed health care cost trend rates as of December 31 are as follows:


	2019			2018
Health care cost trend rate assumed for next year		7.70	%		6.00	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		5.00	%		5.00	%
Year that the rate reaches the ultimate trend rate		2029			2021

one-percentage-point

change in the assumed health care cost trend rates would not result in a material impact on the Company’s consolidated financial statements.

Plan Assets

The Company’s pension plan weighted asset allocations as of December 31 by asset category are as follows:


Asset Category	2019			2018
Equity securities		42	%		40	%
Debt securities		47			48
Real estate		10			10
Private equity		1			2

		100	%		100	%

The following tables present the fair value measurement of the Company’s plan assets as of December 31, 2019 and 2018 (dollars in millions):


				December 31, 2019
Asset Category	Total			Quoted Prices in Active Markets for Identical Contracts (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Non- observable Inputs (Level 3)
Short-term investments	$	14.6		$	2.8	$	11.8		$	—
Equity securities
Common stocks		127.0			127.0		—			—
Commingled equity funds		113.4			—		113.4			—
Fixed income securities
U.S. treasury securities		49.8			49.8		—			—
Other fixed income securities		225.1			—		225.1			—
Commingled fixed income funds		114.0			—		114.0			—
Options		(10.8	)		—		(10.8	)		—
Other types of investments
Mutual funds		104.9			—		104.9			—
Real estate funds		82.3			—		—			82.3
Private equity		8.6			—		—			8.6

Total fair value of plan asset investments	$	828.9		$	179.6	$	558.4		$	90.9

Non-investment plan assets		3.4

Total plan assets	$	832.3


			December 31, 2018
Asset Category	Total		Quoted Prices in Active Markets for Identical Contracts (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Non- observable Inputs (Level 3)
Short-term investments	$	14.4	$	—	$	14.4	$	—
Equity securities
Common stocks		125.6		125.6		—		—
Commingled equity funds		104.3		—		104.3		—
Fixed income securities
U.S. treasury securities		86.0		86.0		—		—
Other fixed income securities		185.8		—		185.8		—
Commingled fixed income funds		92.0		—		92.0		—
Other types of investments
Mutual funds		73.6		—		73.6		—
Real estate funds		80.4		—		—		80.4
Private equity		13.2		—		—		13.2

Total fair value of plan asset investments	$	775.3	$	211.6	$	470.1	$	93.6

Non-investment plan assets		2.2

Total plan assets	$	777.5

The short-term investments included in the Company’s plan assets consist of cash and cash equivalents. The fair value of the remaining categories of the Company’s plan assets are valued as follows: equity securities are valued using the closing stock price on a national securities exchange, which reflects the last reported sales price on the last business day of the year; fixed income securities are valued using institutional bond quotes, which are based on various market and industry inputs; mutual funds and real estate funds are valued using the net asset value of the fund, which is based on the fair value of the underlying securities; and private equity investments are valued at the estimated fair value at the previous quarter end, which is based on the proportionate share of the underlying portfolio investments.

The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level 3) as of December 31, 2019 and 2018 (dollars in millions):


	Real estate funds		Private equity			Total
Balance at December 31, 2017	$	77.8	$	20.9		$	98.7
Actual return (loss) on plan assets:
Relating to assets still held at the reporting date		2.6		(0.3	)		2.3
Relating to assets sold during the period		—		(0.8	)		(0.8	)
Purchases, sales and settlements		—		(6.6	)		(6.6	)

Balance at December 31, 2018		80.4		13.2			93.6
Actual return (loss) on plan assets:
Relating to assets still held at the reporting date		1.9		—			1.9
Relating to assets sold during the period		—		(1.4	)		(1.4	)
Purchases, sales and settlements		—		(3.2	)		(3.2	)

Balance at December 31, 2019	$	82.3	$	8.6		$	90.9

The Company’s investment policies employ an approach whereby a diversified blend of equity and bond investments is used to maximize the long-term return of plan assets for a prudent level of risk. Equity investments are diversified across domestic and

non-domestic

stocks, as well as growth, value, and small to large capitalizations. Bond investments include corporate and government issues, with short-,

mid-

and long-term maturities, with a focus on investment grade when purchased. The Company’s target allocation to equity managers is between 30 to 60 percent with the remainder allocated primarily to bonds, real estate, private equity managers and cash. Investment and market risks are measured and monitored on an ongoing basis through regular investment portfolio reviews, annual liability measurements and periodic asset/liability studies.

The Company’s actual asset allocations are in line with target allocations. The Company regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate.

There was no Company stock included in plan assets at December 31, 2019.

Cash Flows

The Company was not required to and did not make any contributions in 2019.

The Company is not required to make a contribution in 2020.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:


Years ending December 31 (dollars in millions)	Pension Benefits		Post-retirement Benefits
2020	$	66.8	$	0.5
2021		57.7		0.5
2022		57.1		0.5
2023		56.2		0.5
2024		55.4		0.5
2025 – 2029		270.9		2.3

Derivative Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments

14. Derivative Instruments

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.

Cash Flow Hedges

With the exception of its net investment hedges, 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), gains or losses on the derivative instrument are reported as a component of other comprehensive loss, net of tax, and are 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.

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. Principal 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 that are designated as cash flow hedges:


December 31 (dollars in millions)	2019				2018
	Buy		Sell		Buy		Sell
British pound	$	—	$	1.3	$	—	$	1.0
Canadian dollar		—		49.7		—		—
Euro		36.0		—		32.0		—
Mexican peso		18.6		—		27.8		—

Total	$	54.6	$	51.0	$	59.8	$	1.0

Commodity Futures Contracts

In addition to entering into supply arrangements in the normal course of business, the Company also enters into futures contracts to fix the cost of certain raw material purchases, principally steel, with the objective of minimizing changes in cost due to market price fluctuations. The hedging strategy for achieving this objective is to purchase steel futures contracts on the New York Metals Exchange (NYMEX) and copper futures contracts on the open market of the London Metals Exchange (LME) or over the counter contracts based on the LME.

With NYMEX, the Company is required to make cash deposits on unrealized losses on steel derivative contracts.

Net Investment Hedges

The Company enters into certain foreign currency forward contracts to hedge the exposure to a portion of the Company’s net investments in certain

non-U.S.

subsidiaries against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. For the derivative instruments that are designated and qualify as net investment hedges, gains and losses are reported in other comprehensive loss where they offset gains and losses recorded on the Company’s net investments in its

non-U.S.

subsidiaries. These hedges are determined to be effective. The Company recognized $

and $7.4 million of

after-tax

gains associated with hedges of a net investment in

non-U.S.

subsidiaries in currency translation adjustment in other comprehensive income in 2019 and 2018, respectively. The contractual amount of the Company’s foreign currency forward contracts that are designated as net investment hedges is $100.0 million as of December 31, 2019.

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:


		Fair Value
December 31 (dollars in millions)	Balance Sheet Location	2019			2018
Foreign currency contracts	Other current assets	$	8.4		$	3.9
	Other non-current assets		—			5.1
	Accrued liabilities		(1.5	)		(0.6	)
Commodities contracts	Accrued liabilities		—			(0.9	)

Total derivatives designated as hedging instruments		$	6.9		$	7.5

The effect of cash flow hedges on the condensed consolidated statement of earnings:

Years ended December 31 (dollars in millions)



Derivatives in ASC 815 cash flow hedging relationships	Amount of gain (loss) recognized in other comprehensive loss on derivative s						Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings	Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings
	2019			2018				2019			2018
Foreign currency contracts	$	0.2		$	1.8		Cost of products sold	$	(0.2	)	$	0.3
Commodities contracts		(0.5	)		(1.1	)	Cost of products sold		(1.5	)		0.3

	$	(0.3	)	$	0.7			$	(1.7	)	$	0.6

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes

15. Income Taxes

The components of the provision (benefit) for income taxes consisted of the following:


Years ended December 31 (dollars in millions)	2019			2018			2017
Current:
Federal	$	66.4		$	60.1		$	148.0
State		14.8			15.6			9.4
International		19.9			38.6			43.8
Deferred:
Federal		0.4			(1.7	)		23.5
State		1.8			1.5			5.8
International		(1.2	)		(0.5	)		(6.2	)

	$	102.1		$	113.6		$	224.3

The provision for income taxes differs from the U.S. federal statutory rate due to the following items:


Years ended December 31	2019			2018			2017
Provision at U.S. federal statutory rate		21.0	%		21.0	%		35.0	%
State taxes, net of federal benefit		2.8			2.4			1.9
International income tax rate differential—China		(1.3	)		(2.3	)		(6.5	)
International income tax rate differential—other		0.4			1.1			0.1
U.S. manufacturing credit		—			—			(1.4	)
Research tax credits		(0.4	)		(0.5	)		(0.3	)
Excess tax benefit on stock compensation		(0.5	)		(0.4	)		(2.2	)
Other		(0.4	)		(0.9	)		0.8

		21.6	%		20.4	%		27.4	%
U.S. Tax Cuts & Jobs Act (U.S. Tax Reform)		—			—			15.7

		21.6	%		20.4	%		43.1	%

U.S. Tax Reform was enacted on December 22, 2017 and significantly changed U.S. corporate income tax laws. Among other things, U.S. Tax Reform reduced the U.S. corporate income tax rate to 21 percent commencing on January 1, 2018, implemented a territorial tax system and levied a

one-time

mandatory tax on undistributed earnings of foreign subsidiaries of U.S. companies.

As a result of U.S. Tax Reform, the Company recorded income tax expense of $81.8 million in the fourth quarter of 2017. The income tax expense resulting from U.S. Tax Reform was included in the provision for income taxes on the Company’s consolidated statement of earnings and consisted of two components: $83.5 million of income tax expense related to the

one-time

mandatory tax on undistributed foreign earnings and a $1.7 million income tax benefit resulting from the remeasurement of the Company’s U.S. deferred tax assets and liabilities based on the lower U.S. corporate income tax rate. As permitted under the SEC Staff Accounting Bulletin 118, the amounts recorded during 2017 were subject to revisions in 2018.

The Company completed its accounting for the income tax effects of U.S. Tax Reform as of December 31, 2018 and determined that there was no material adjustment necessary to the provisional amounts it recorded in 2017.

As allowed under ASU

2018-02

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

, the Company has elected not to reclassify the income tax effects of U.S. Tax Reform from accumulated other comprehensive losses to retained earnings.

Components of earnings before income taxes were as follows:


Years ended December 31 (dollars in millions)	2019		2018		2017
U.S.	$	400.3	$	376.0	$	329.9
International		71.8		181.8		190.9

	$	472.1	$	557.8	$	520.8

Total income taxes paid by the Company amounted to $116.6 million, $116.4 million, and $131.1 million in 2019, 2018 and 2017, respectively.

As of December 31, 2019, the Company has $20.8 million accrued for its estimate of withholding taxes due upon repatriation of undistributed foreign earnings it considers to be not permanently reinvested. As of December 31, 2019, $548.6 million of cash and cash equivalents and marketable securities were held by its foreign subsidiaries.

The tax effects of temporary differences of assets and liabilities between income tax and financial reporting are as follows:


December 31 (dollars in millions)
	2019					2018
	Assets			Liabilities		Assets			Liabilities
Employee benefits	$	27.3		$	—	$	32.5		$	—
Product liability and warranties		39.7			—		42.5			—
Inventories		—			0.3		—			0.6
Accounts receivable		16.3			—		18.3			—
Property, plant and equipment		—			34.9		—			36.3
Intangibles		—			61.3		—			57.3
Environmental liabilities		1.9			—		2.1			—
Undistributed foreign earnings		—			20.8		—			28.9
Tax loss and credit carryovers		15.2			—		17.5			—
All other		7.7			—		4.0			—
Valuation allowance		(11.9	)		—		(13.1	)		—

	$	96.2		$	117.3	$	103.8		$	123.1

Net liability				$	21.1				$	19.3

The Company believes it is more likely than not that it will realize its deferred tax assets through the reduction of future taxable income. The Company considered historical operating results in determining the probability of the realization of the deferred tax assets.

A reconciliation of the beginning and ending amounts of tax loss carryovers, credit carryovers and valuation allowances is as follows:


December 31 (dollars in millions)
	Net Operating Losses and Tax Credits						Valuation Allowances
	2019			2018			2019			2018
Beginning balance	$	17.5		$	19.8		$	13.1		$	15.0
Reductions		(2.3	)		(2.3	)		(1.2	)		(1.9	)

Ending balance	$	15.2		$	17.5		$	11.9		$	13.1

The Company has foreign net operating loss carryovers that expire in 2020 through 2027 and state and local net operating loss carryovers that expire between 2029 and 2030.

A reconciliation of the beginning and ending amount of unrecognized benefits is as follows:


(Dollars in millions)	2019		2018
Balance at January 1	$	8.3	$	6.2
Additions for tax positions of prior years		1.4		2.1

Balance at December 31	$	9.7	$	8.3

The amount of unrecognized tax benefits that, if recognized, would affect the effective income tax rate is $0.8 million. The Company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. At December 31, 2019, there was an immaterial amount of interest and penalties accrued. The Company anticipates that there will not be a material decrease in the total amount of unrecognized tax benefits in 2020. The Company’s U.S. federal income tax returns and its U.S. state and local income tax returns are subject to audit for the years 2016-2019 and 2002-2019, respectively. The Company is subject to

non-U.S.

income tax audits for the years 2013-2019.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies

16. Commitments and Contingencies

Environmental Contingencies

The Company is a potentially responsible party in judicial and administrative proceedings seeking to clean up sites which have been environmentally impacted. In each case, the Company has established reserves, insurance proceeds and/or a potential recovery from third parties. The Company believes any environmental claims will not have a material effect on its financial position or results of operations.

Product Liability and Other Matters

The Company is subject to various claims and pending lawsuits for product liability and other matters arising out of the conduct of the Company’s business. With respect to product liability claims, the Company has self-insured a portion of its product liability loss exposure for many years. The Company has established reserves and has insurance coverage, which it believes are adequate to cover incurred claims. For the years ended December 31, 2019 and 2018, the Company had $125 million of product liability insurance for individual losses in excess of $7.5 million. The Company periodically reevaluates its exposure on claims and lawsuits and makes adjustments to its reserves as appropriate. The Company believes, based on current knowledge, consultation with counsel, adequate reserves and insurance coverage that the outcome of such claims and lawsuits will not have a material adverse effect on the Company’s financial position, results of operations or cash flows.

Inventory Repurchase Arrangements

The Company maintains a commercial relationship with a supply-chain service provider (the Provider) in connection with the Company’s business in China. In this capacity, the Provider offers order-entry, warehousing and logistics support. The Provider also offers asset-backed financing to certain of the Company’s distributors in China to facilitate their working capital needs. To facilitate its financing support business, the Provider has collateralized lending facilities in place with multiple Chinese banks under which the Company has agreed to repurchase inventory if both requested by the banks and certain defined conditions are met, primarily related to the aging of the distributors’ notes.

The Provider is required to indemnify the Company for any losses the Company would incur in the event of an inventory repurchase under these arrangements. Potential losses under the repurchase arrangements represent the difference between the repurchase price and net proceeds from the resale of product plus costs incurred in the process, less related distributor rebates.

Before considering any reduction of distributor rebate accruals of $14.1 and $25.1 million as of December 31, 2019 and December 31, 2018, respectively, and from the resale of the related inventory, the gross amount the Company would be obligated to repurchase, which would be contingent on the default of all of the outstanding loans, was approximately $23.1 million and $75.8 million as of December 31, 2019 and December 31, 2018, respectively. The Company’s reserves for estimated losses under repurchase arrangements were immaterial as of December 31, 2019 and December 31, 2018.

Operations by Segment

12 Months Ended

Dec. 31, 2019

Operations by Segment

17. 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 and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. Our Rest of World segment also manufactures and markets

in-home

air purification products in China.

The accounting policies of the reportable segments are the same as those described in the “Summary of Significant Accounting Policies” outlined in Note 1. Segment earnings, defined by the Company as earnings before interest, taxes, general corporate and corporate research and development expenses, were used to measure the performance of the segments.


	Net Sales									Earnings
Years ended December 31 (dollars in millions)	2019			2018			2017			2019			2018			2017
North America (1)	$	2,083.5		$	2,044.7		$	1,904.8		$	488.9		$	464.1		$	428.6
Rest of World		935.8			1,173.6			1,116.3			40.2			149.3			149.3
Inter-segment		(26.6	)		(30.4	)		(24.4	)		—			—			—

Total segments – sales, segment earnings	$	2,992.7		$	3,187.9		$	2,996.7		$	529.1		$	613.4		$	577.9

Corporate expenses											(46.0	)		(47.2	)		(47.0	)
Interest expense											(11.0	)		(8.4	)		(10.1	)

Earnings before income taxes											472.1			557.8			520.8
Provision for income taxes (2)											(102.1	)		(113.6	)		(224.3	)

Net earnings										$	370.0		$	444.2		$	296.5

(1)	In 2018, the Company recognized $6.7 million of restructuring and impairment expenses in connection with the move of manufacturing operations from our Renton, Washington facility to other U.S. facilities. For additional information, see Note 5 “Restructuring and Impairment Expenses.”

(2)	In 2017, the Company recorded a one-time charge of $81.8 million associated with U.S. Tax Reform, primarily related to the repatriation of undistributed foreign earnings. For additional information, see Note 15 “Income Taxes.”

In 2019, sales to the North America segment’s two largest customers were $421.1 million and $378.9 million

which represented 14 percent and

percent

of the Company’s net sales, respectively. In

2018

, sales to the North America segment’s two largest customers were $

425.3

million and $

355.6

million which represented

percent and

percent of the Company’s net sales, respectively. In

2017

, sales to the North America segment’s two largest customers were $

361.4

million and $

335.2

million which represented

percent and

percent of the Company’s net sales, respectively.

Assets, depreciation and capital expenditures by segment


	Total Assets (December 31)						Depreciation and Amortization (Years Ended December 31)						Capital Expenditures (Years Ended December 31)
(dollars in millions)	2019		2018		2017		2019		2018		2017		2019		2018		2017
North America	$	1,742.8	$	1,653.6	$	1,592.6	$	49.3	$	45.5	$	45.1	$	47.6	$	45.8	$	38.5
Rest of World		709.1		721.6		741.4		27.9		25.2		23.8		15.9		32.3		55.2
Corporate		606.1		696.3		863.4		1.1		1.2		1.2		0.9		7.1		0.5

Total	$	3,058.0	$	3,071.5	$	3,197.4	$	78.3	$	71.9	$	70.1	$	64.4	$	85.2	$	94.2

The majority of corporate assets consist of cash, cash equivalents, marketable securities and deferred income taxes.

Net sales and long-lived assets by geographic location

The following data by geographic area includes net sales based on product shipment destination and long-lived assets based on physical location. Long-lived assets include net property, plant and equipment, operating lease assets and other long-term assets.


	Long-lived Assets (December 31)							Net Sales (Years Ended December 31)
(dollars in millions)	2019		2018		2017			2019		2018		2017
United States	$	360.2	$	327.3	$	303.0	United States	$	1,868.7	$	1,820.8	$	1,698.1
China		266.7		252.6		250.8	China		825.4		1,071.2		1,034.9
Canada		4.2		3.1		3.2	Canada		168.5		175.0		163.7
Other Foreign		42.1		42.9		47.1	Other Foreign		130.1		120.9		100.0

Total	$	673.2	$	625.9	$	604.1	Total	$	2,992.7	$	3,187.9	$	2,996.7

Quarterly Results of Operations

12 Months Ended

Dec. 31, 2019

Quarterly Results of Operations

18. Quarterly Results of Operations (Unaudited)


(dollars in millions, except per share amounts)
	1st Quarter				2nd Quarter				3rd Quarter				4th Quarter
	2019		2018		2019		2018		2019		2018		2019		2018
Net sales	$	748.2	$	788.0	$	765.4	$	833.3	$	728.2	$	754.1	$	750.9	$	812.5
Gross profit		292.8		321.5		308.7		341.0		284.2		306.0		295.0		337.0
Net earnings		89.3		98.8		102.1		114.5		87.3		104.6		91.3		126.3
Basic earnings per share		0.53		0.58		0.61		0.67		0.53		0.61		0.56		0.75
Diluted earnings per share		0.53		0.57		0.61		0.66		0.53		0.61		0.56		0.74
Common dividends declared		0.22		0.18		0.22		0.18		0.22		0.18		0.24		0.22

Net earnings per share are computed separately for each period, and therefore, the sum of such quarterly per share amounts may differ from the total for the year.

In the first quarter of 2018, the Company recorded $6.7 million of restructuring and impairment expenses associated with a move of manufacturing operations from its Renton, Washington facility to other U.S. facilities. These charges reduced

after-tax

earnings by $5.0 million or $0.03 per share.

Subsequent Event

12 Months Ended

Dec. 31, 2019

Subsequent Events

19. Subsequent Event

In January 2020, an outbreak of a novel coronavirus

(COVID-19)

surfaced in Wuhan, China. The outbreak caused the Chinese government to require businesses to close and to restrict certain travel within the country. In cooperation with the government authorities, the Company’s operations in China extended their Chinese New Year holiday shut down by approximately one to two weeks. As of the date of this filing, the Company has resumed operations, but at below normal levels. The majority of the stores where the Company’s products are sold have temporarily closed and most of the stores that remain open are operating with reduced hours and are experiencing significant declines in customer traffic. In addition, as a significant portion of the Company’s products in China require installation by a professional, actions taken to contain the spread of the virus have, in certain cases, limited access for installation. The duration and intensity of the impact of the coronavirus and resulting disruption to the Company’s operations is uncertain. While our global supply chains are currently not affected, it is unknown whether or how they may be affected if such an epidemic persists for an extended period. While not yet quantifiable, the Company expects this situation will have a material adverse impact to its operating results in the first quarter of 2020 and continues to assess the financial impact for the remainder of the

year.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2019

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

A. O. SMITH CORPORATION

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

(Dollars in millions)

Years ended December 31, 2019, 2018 and 2017


Description	Balance at Beginning of Year		Charged to Costs and Expenses		Acquisition of Businesses		Deductions			Balance at End of Year
2019:
Valuation allowance for trade and notes receivable	$	6.4	$	0.3	$	—	$	(0.1	)	$	6.6
Valuation allowance for deferred tax assets		13.1		—		—		(1.2	)		11.9
2018:
Valuation allowance for trade and notes receivable	$	5.3	$	1.5	$	—	$	(0.4	)	$	6.4
Valuation allowance for deferred tax assets		15.0		—		—		(1.9	)		13.1
2017:
Valuation allowance for trade and notes receivable	$	6.3	$	—	$	0.2	$	(1.2	)	$	5.3
Valuation allowance for deferred tax assets		13.1		1.9		—		—			15.0

Organization and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Organization

Organization.

in-home

air purification products in China.

Consolidation

Consolidation.

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of intercompany transactions.

Use of estimates

Fair value of financial instruments

Fair value of financial instruments.

122.1

million as of December 31, 2019 compared with the carrying

amount of

120.0

million

for the same date. The fair value of term notes with insurance companies was approximately $120.0 million as of December 31, 2018 which approximated the carrying value.

Foreign currency translation

For all subsidiaries outside the U.S., with the exception of its Barbados, Hong Kong and Mexican companies and its

non-operating

year-end

Cash and cash equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Marketable securities

Inventory valuation

Inventory valuation.

Inventories are carried at lower of cost and net realizable value. Cost is determined on the

last-in,

first-out

first-in,

first-out

(FIFO) method.

Property, plant and equipment

Property, plant and equipment.

Property, plant and equipment are stated at cost. Depreciation is computed primarily by the

straight-line

Goodwill and other intangibles

Goodwill and other intangibles.

Product warranties

Product warranties.

The Company’s products carry warranties that generally range from one to ten years and are based on terms that are consistent with the market.

The following table presents the Company’s product warranty liability activity in 2019 and 2018:


Years ended December 31 (dollars in millions)	2019			2018
Balance at beginning of year	$	139.4		$	141.2
Expense		44.3			40.7
Claims settled		(49.4	)		(42.5	)

Balance at end of year	$	134.3		$	139.4

Derivative instruments

Derivative instruments.

Fair Value Measurements

Fair Value Measurements.

Accounting Standards Codification

(ASC) 820

Fair Value Measurements

Assets measured at fair value on a recurring basis are as follows (dollars in millions):


Fair Value Measurement Using	December 31, 2019		December 31, 2018
Quoted prices in active markets for identical assets (Level 1)	$	177.4	$	385.3
Significant other observable inputs (Level 2)		6.9		7.5

There were no changes in the valuation techniques used to measure fair values on a recurring basis.

Revenue recognition

Revenue recognition.

, “Revenue Recognition” for disclosure of the Company’s revenue recognition activities.

Advertising

Advertising.

Research and development

Research and development.

Research and development costs are charged to operations as incurred and amounted to $87.9 million, $94.0 million and $86.4 million during 2019, 2018 and 2017, respectively.

Environmental costs

Environmental costs.

Stock-based compensation

Stock-based compensation.

Income taxes

Income taxes.

The provision for income taxes is computed using the asset and liability method, in accordance with ASC 740

Income Taxes

Earnings per share of common stock

Earnings per share of common stock.

The Company is not required to use the

two-class


	2019		2018		2017
Denominator for basic earnings per share - weighted-average shares outstanding		165,450,441		170,589,345		172,666,056
Effect of dilutive stock options, restricted stock and share units		1,260,456		1,604,695		1,939,133

Denominator for diluted earnings per share		166,710,897		172,194,040		174,605,189

Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (FASB) amended Accounting Standards Codification (ASC) 740,

Income Taxes

In January 2017, the FASB amended ASC 350,

Intangibles – Goodwill and Other

(issued under ASU

2017-04,

2017-04

will have a material impact on its consolidated balance sheets, statements of earnings or statements of cash flows.

In June 2016, the FASB issued ASC 326,

Financial Instruments – Credit Losses

(issued under ASU

2016-13)

which modifies the measurement of expected credit losses on certain financial instruments. ASU

2016-13

requires adoption on January 1, 2020. The adoption of ASU

2016-13

will not 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).

non-lease

components. The Company did not elect the hindsight practical expedient. The adoption of ASU

2016-02

did not have a material impact on the Company’s consolidated balance sheets, statements of earnings or statements of cash flows. Refer to Note 4, Leases, for additional information.

Organization and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Product Warranty Liability Activity

The following table presents the Company’s product warranty liability activity in 2019 and 2018:


Years ended December 31 (dollars in millions)	2019			2018
Balance at beginning of year	$	139.4		$	141.2
Expense		44.3			40.7
Claims settled		(49.4	)		(42.5	)

Balance at end of year	$	134.3		$	139.4

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are as follows (dollars in millions):


Fair Value Measurement Using	December 31, 2019		December 31, 2018
Quoted prices in active markets for identical assets (Level 1)	$	177.4	$	385.3
Significant other observable inputs (Level 2)		6.9		7.5

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:


	2019		2018		2017
Denominator for basic earnings per share - weighted-average shares outstanding		165,450,441		170,589,345		172,666,056
Effect of dilutive stock options, restricted stock and share units		1,260,456		1,604,695		1,939,133

Denominator for diluted earnings per share		166,710,897		172,194,040		174,605,189

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Revenue Recognition [Abstract]

Segment Sales Disaggregated by Major Product Line


Years ending December 31 (dollars in millions)	2019			2018			2017
North America
Water heaters and related parts	$	1,742.6		$	1,757.0		$	1,663.0
Boilers and related parts		199.5			200.4			183.3
Water treatment products (1)		141.4			87.3			58.5

Total North America		2,083.5			2,044.7			1,904.8
Rest of World
China	$	827.2		$	1,070.4		$	1,029.4
All other Rest of World		108.6			103.2			86.9

Total Rest of World		935.8			1,173.6			1,116.3
Inter-segment sales		(26.6	)		(30.4	)		(24.4	)

Total Net Sales	$	2,992.7		$	3,187.9		$	2,996.7

(1)	Includes the results of Water-Right and Hague Quality Water International (Hague) from the date of acquisition of April 8, 2019 and September 5, 2017, respectively.

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2019

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

non-compete

agreements being amortized over 7.5 years.


April 8, 2019 (dollars in millions)
Current assets, net of cash acquired	$	9.7
Property, plant and equipment		8.6
Intangible assets		60.4
Goodwill		31.0

Total assets acquired		109.7
Current liabilities		(2.7	)

Net assets acquired	$	107.0

Water-Right, Inc

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

The following table summarizes the allocation of fair value of the assets acquired and liabilities assumed at the date of acquisition of Hague for purposes of allocating the purchase price.

The $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		22.2

Total assets acquired		49.7
Current liabilities		(5.6	)
Long-term liabilities		(1.0	)

Total liabilities assumed		(6.6	)

Net assets acquired	$	43.1

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule Of Supplemental Balance Sheet Information Related To Leases [Table Text Block]

Supplemental balance sheet information related to leases is as follows:


(dollars in millions)
	December 31, 2019
Liabilities
Short term: Accrued liabilities	$	12.0
Long term: Operating lease liabilities		38.7

Total operating lease liabilities	$	50.7
Less: Rent incentives and deferrals		(3.8	)

Assets
Operating lease assets	$	46.9

Lease Term and Discount Rate	December 31, 2019
Weighted-average remaining lease term		10 years
Weighted-average discount rate		3.93%

Lease, Cost [Table Text Block]

The components of lease expense were as follows:

(1)	Includes short-term lease expense of $2.0 million for the twelve months ended December 31, 2019. Includes variable lease cost of $2.1 million for the twelve months ended December 31, 2019.

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Maturities of lease liabilities were as follows:


(dollars in millions)
	December 31, 2019
2020	$	14.0
2021		10.5
2022		9.0
2023		4.9
2024		3.7
After 2024		22.8

Total lease payments		64.9
Less: imputed interest		(14.2	)

Present value of operating lease liabilities	$	50.7

Restructuring and Impairment Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Analysis of Company's Restructuring Reserve

The following table presents an analysis of the Company’s restructuring reserve for the years ended December 31, 2019 and 2018:


(dollars in millions)
	Severance Costs			Lease Exit Costs			Fixed Assets Impairment			Total
Balance at January 1, 2018	$	—		$	—		$	—		$	—
Restructuring expense recognized		4.0			2.1			0.6			6.7
Cash payments and disposals		(3.8	)		(0.8	)		(0.6	)		(5.2	)

Balance at December 31, 2018		0.2			1.3			—			1.5
Cash payments and disposals		(0.2	)		(0.8	)		—			(1.0	)

Balance at December 31, 2019	$	—		$	0.5		$	—		$	0.5

Statement of Cash Flows (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Supplemental Cash Flow Information

Supplemental cash flow information is as follows:


Years ended December 31 (dollars in millions)	2019			2018			2017
Net change in current assets and liabilities, net of acquisitions:
Receivables	$	62.4		$	(54.6	)	$	(75.8	)
Inventories		6.3			(7.7	)		(37.5	)
Other current assets		(4.8	)		10.0			(9.0	)
Trade payables		(35.4	)		8.8			(5.1	)
Accrued liabilities, including payroll and benefits		14.2			(3.5	)		12.2
Income taxes		(10.1	)		7.0			(12.6	)

	$	32.6		$	(40.0	)	$	(127.8	)

Inventories (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Inventories


December 31 (dollars in millions)	2019			2018
Finished products	$	136.8		$	137.6
Work in process		21.7			23.3
Raw materials		168.3			174.4

Inventories, at FIFO cost		326.8			335.3
LIFO reserve		(23.8	)		(30.6	)

	$	303.0		$	304.7

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Property Plant and Equipment


December 31 (dollars in millions)	2019		2018
Land	$	11.6	$	11.2
Buildings		334.1		323.3
Equipment		686.9		643.8
Software		124.3		118.5

		1,156.9		1,096.8
Less accumulated depreciation and amortization		611.5		556.8

	$	545.4	$	540.0

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill during the years ended December 31, 2019 and 2018 consisted of the following:


(dollars in millions)	North America			Rest of World			Total
Balance at December 31, 2017	$	457.2		$	59.5		$	516.7
Currency translation adjustment		(3.3	)		(0.4	)		(3.7	)

Balance at December 31, 2018		453.9			59.1			513.0
Acquisition		31.0			—			31.0
Currency translation adjustment		2.0			—			2.0

Balance at December 31, 2019	$	486.9		$	59.1		$	546.0

Schedule of Carrying Amount of Other Intangible Assets

The carrying amount of other intangible assets consisted of the following:


	2019							2018
December 31 (dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Amortizable intangible assets:
Patents	$	3.7	$	(3.5	)	$	0.2	$	3.7	$	(3.3	)	$	0.4
Customer lists		278.0		(123.6	)		154.4		236.8		(108.2	)		128.6

Total amortizable intangible assets		281.7		(127.1	)		154.6		240.5		(111.5	)		129.0
Indefinite-lived intangible assets:
Trade names		183.8		—			183.8		164.1		—			164.1

Total intangible assets	$	465.5	$	(127.1	)	$	338.4	$	404.6	$	(111.5	)	$	293.1

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Debt


December 31 (dollars in millions)	2019		2018
Bank credit lines, average year-end interest rates of 2.4% for 2019 and 3.4% for 2018	$	4.7	$	17.1
Revolving credit agreement borrowings, average year-end interest rates of 2.8% for 2019 and 3.5% for 2018		85.0		10.0
Commercial paper, average year-end interest rates of 2.2% for 2019 and 2.7% for 2018		74.3		74.3
Term notes with insurance companies, expiring 2029-2034, average year-end interest rates of 3.3% for 2019 and 3.3% for 2018		120.0		120.0

		284.0		221.4
Less long-term debt due within one year		6.8		—

Long-term debt	$	277.2	$	221.4

Schedule of Maturities of Long Term Debt

Scheduled maturities of

long-term

debt within each of the five years subsequent to December 31, 2019 are as follows:


Years ending December 31 (dollars in millions)	Amount
2020	$	6.8
2021		170.8
2022		6.8
2023		10.0
2024		10.0

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Changes in Accumulated Other Comprehensive Loss by Component

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


	Years ended December 31,
	2019			201 8
Cumulative foreign currency translation
Balance at beginning of period	$	(64.9	)	$	(26.5	)
Other comprehensive gain (loss) before reclassifications		(1.3	)		(38.4	)

Balance at end of period		(66.2	)		(64.9	)

Unrealized net (loss) gain on cash flow derivatives
Balance at beginning of period		(0.7	)		(0.9	)
Other comprehensive (loss) gain before reclassifications		(0.3	)		0.6
Realized losses (gains) on derivatives reclassified to cost of products sold (net of tax (benefit) provision of ($0.5) and $0.2 in 2019 and 2018, respectively) (1)		1.2			(0.4	)

Balance at end of period		0.2			(0.7	)

Pension liability
Balance at beginning of period		(285.2	)		(272.1	)
Other comprehensive (loss) gain before reclassifications		(9.5	)		(27.0	)
Amounts reclassified from accumulated other comprehensive loss (1)		12.4			13.9

Balance at end of period		(282.3	)		(285.2	)

Total accumulated other comprehensive loss, end of period	$	(348.3)		$	(350.8)

(1)	Amounts reclassified from accumulated other comprehensive loss:

Realized loss (gains) on derivatives reclassified to cost of products sold		1.7			(0.6	)
Tax (benefit) provision		(0.5	)		0.2

Reclassification net of tax	$	1.2		$	(0.4	)

Amortization of pension items:
Actuarial losses	$	16.8	(2)	$	19.0	(2)
Prior year service cost		(0.5	) (2)		(0.5	) (2)

		16.3			18.5
Tax benefit		(3.9	)		(4.6	)

Reclassification net of tax	$	12.4		$	13.9

(2)	These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 13 “Pensions and Other Post-retirement Benefits” for additional details.

Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Changes in Option Shares

Changes in options, all of which relate to the Company’s Common Stock, were as follows:


Years Ended December 31	2019					2018					2017
	Number of Options			Weighted Avg. Per Share Exercise Price		Number of Options			Weighted Avg. Per Share Exercise Price		Number of Options			Weighted Avg. Per Share Exercise Price
Number of shares under options:
Outstanding at beginning of year		2,432,689			33.05		2,263,126			27.73		2,664,333			21.69
Granted		557,045			49.49		373,220			61.62		358,150			50.16
Exercised (1)		(249,840	)		18.55		(176,302	)		22.93		(752,603	)		16.93
Forfeited		(11,544	)		54.02		(27,355	)		47.95		(6,754	)		37.46

Outstanding at end of year (2)		2,728,350			37.64		2,432,689			33.05		2,263,126			27.73

Exercisable at end of year (3)		1,820,743			30.07		1,665,184			24.52		1,387,259			20.48

(1)	The total intrinsic value of options exercised in 2019, 2018 and 2017 was $7.7 million, $6.8 million and $29.1 million, respectively.

(2)	The weighted average remaining contractual life of options outstanding was 7 years at December 31, 2019, December 31, 2018, and December 31, 2017. The aggregate intrinsic value of options outstanding at December 31, 2019 was $34.2 million.

(3)	The weighted average remaining contractual life of options exercisable was 6 years at December 31, 2019, December 31, 2018 and, December 31, 2017. The aggregate intrinsic value of options exercisable at December 31, 2019 was $34.2 million.

Share-based Compensation, Performance Shares Award Nonvested Activity


	Number of Options			Weighted Avg. Per Share Exercise Price
Nonvested options at beginning of year		767,505			51.55
Granted		557,045			49.49
Vested		(408,648	)		45.87
Forfeited		(8,295	)		53.88

Nonvested options at end of year		907,607			52.82

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


	2019			2018			2017
Expected life (years)		5.5			5.7			5.7
Risk-free interest rate		2.7	%		2.9	%		2.4	%
Dividend yield		1.6	%		1.0	%		1.0	%
Expected volatility		22.8	%		22.1	%		26.5	%

Schedule of Share Unit Activity Under Plan

A summary of share unit activity under the plan is as follows:


	Number of Units			Weighted-Average Grant Date Value
Issued and unvested at January 1, 2019		379,601		$	42.93
Granted		140,102			49.44
Vested		(147,642	)		31.35
Forfeited		(5,959	)		55.48

Issued and unvested at December 31, 2019		366,102			49.92

Pension and Other Post-retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Changes in Benefit Obligation, Plan Assets and Funded Status of Defined Benefit Pension and Post Retirement Benefit Plans

The following tables present the changes in benefit obligations, plan assets and funded status for domestic pension and post-retirement plans and the components of net periodic benefit costs.


	Pension Benefits						Post-retirement Benefits
Years ended December 31 (dollars in millions)	2019			2018			2019			2018
Accumulated benefit obligation (ABO) at December 31	$	868.7		$	833.0			N/A			N/A
Change in projected benefit obligations (PBO)
PBO at beginning of year	$	(833.8	)	$	(922.7	)	$	(7.0	)	$	(7.6	)
Service cost		(1.6	)		(2.0	)		(0.1	)		(0.2	)
Interest cost		(31.6	)		(28.9	)		(0.3	)		(0.3	)
Participant contributions		—			—			(0.1	)		(0.1	)
Actuarial (loss) gain including assumption changes		(98.6	)		61.2			(1.2	)		0.6
Benefits paid		96.3			58.6			0.7			0.6

PBO at end of year	$	(869.3	)	$	(833.8	)	$	(8.0	)	$	(7.0	)

Change in fair value of plan assets
Plan assets at beginning of year	$	777.5		$	874.8		$	—		$	—
Actual return on plan assets		143.4			(39.3	)		—			—
Contribution by the Company		7.8			0.6			0.5			0.5
Participant contributions		—			—			0.1			0.1
Benefits paid		(96.3	)		(58.6	)		(0.6	)		(0.6	)

Plan assets at end of year	$	832.4		$	777.5		$	—		$	—

Funded status	$	(36.9	)	$	(56.3	)	$	(8.0	)	$	(7.0	)
Amount recognized in the balance sheet
Current liabilities	$	(9.3	)	$	(7.1	)	$	(0.5	)	$	(0.5	)
Non-current liabilities		(27.6	)		(49.2	)		(7.5	)		(6.5	)

Net pension liability at end of year	$	(36.9	)*	$	(56.3	)*	$	(8.0	)	$	(7.0	)

Amounts recognized in accumulated other comprehensive loss before tax
Net actuarial loss (gain)	$	463.1		$	468.9		$	(0.2	)	$	(1.4	)
Prior service cost		0.5			—			(1.8	)		(2.2	)

Total recognized in accumulated other comprehensive loss	$	463.6		$	468.9		$	(2.0	)	$	(3.6	)

*	In addition, the Company has a liability for a foreign pension plan of $0.2 million at December 31, 2019 and 2018.

Schedule of Net Periodic Benefit Cost


	Pension Benefits									Post-retirement Benefits
Years ended December 31 (dollars in millions)	2019			2018			2017			2019			2018			2017
Net periodic benefit cost
Service cost	$	1.6		$	2.0		$	1.8		$	0.1		$	0.1		$	0.1
Interest cost		31.6			28.9			30.0			0.3			0.3			0.3
Expected return on plan assets		(57.3	)		(58.1	)		(58.4	)		—			—			—
Amortization of unrecognized:
Net actuarial loss (gain)		16.8			19.0			17.9			—			—			(0.1	)
Prior service cost		(0.5	)		(0.5	)		(0.4	)		(0.4	)		(0.4	)		(0.4	)

Defined-benefit plan income		(7.8	)		(8.7	)		(9.1	)	$	—		$	—		$	(0.1	)

Curtailment and other one-time charges		1.6			—			—
Various U.S. defined contribution plans cost		13.3			12.2			12.0

	$	7.1		$	3.5		$	2.9

Other changes in plan assets and projected benefit obligation recognized in other comprehensive loss
Net actuarial loss (gain)	$	12.6		$	36.1		$	(3.8	)	$	1.2		$	(0.6	)	$	1.1
Amortization of net actuarial (loss) gain		(18.4	)		(19.0	)		(17.9	)		—			—			0.1
Amortization of prior service cost		0.5			0.5			0.5			0.4			0.4			0.4

Total recognized in other comprehensive loss		(5.3	)		17.6			(21.2	)		1.6			(0.2	)		1.6

Total recognized in net periodic (benefit) cost and other comprehensive loss	$	(11.5	)	$	8.9		$	(30.3	)	$	1.6		$	(0.2	)	$	1.5

Schedule of Actuarial Assumptions Used To Determine Benefit Obligations

Actuarial assumptions used to determine benefit obligations at December 31 are as follows:


	Pension Benefits						Post-retirement Benefits
	2019			2018			2019			2018
Discount rate		3.18	%		4.32	%		3.40	%		4.46	%

Schedule of Actuarial Assumptions Used To Determine Net Periodic Benefit Cost

Actuarial assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows:


	Pension Benefits									Post-retirement Benefits
Years ended December 31	2019			2018			2017			2019			2018			2017
Discount rate		4.32	%		3.65	%		4.15	%		4.45	%		3.79	%		4.40	%
Expected long-term return on plan assets		7.15	%		7.15	%		7.50	%		n/a			n/a			n/a
Rate of compensation increase		4.00	%		4.00	%		4.00	%		4.00	%		4.00	%		4.00	%

Schedule of Health Care Cost Trend Rates

Assumed health care cost trend rates as of December 31 are as follows:


	2019			2018
Health care cost trend rate assumed for next year		7.70	%		6.00	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		5.00	%		5.00	%
Year that the rate reaches the ultimate trend rate		2029			2021

Schedule of Weighted Asset Allocations by Asset Category

The Company’s pension plan weighted asset allocations as of December 31 by asset category are as follows:


Asset Category	2019			2018
Equity securities		42	%		40	%
Debt securities		47			48
Real estate		10			10
Private equity		1			2

		100	%		100	%

Schedule of Fair Value Measurement of Plan Assets

The following tables present the fair value measurement of the Company’s plan assets as of December 31, 2019 and 2018 (dollars in millions):


				December 31, 2019
Asset Category	Total			Quoted Prices in Active Markets for Identical Contracts (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Non- observable Inputs (Level 3)
Short-term investments	$	14.6		$	2.8	$	11.8		$	—
Equity securities
Common stocks		127.0			127.0		—			—
Commingled equity funds		113.4			—		113.4			—
Fixed income securities
U.S. treasury securities		49.8			49.8		—			—
Other fixed income securities		225.1			—		225.1			—
Commingled fixed income funds		114.0			—		114.0			—
Options		(10.8	)		—		(10.8	)		—
Other types of investments
Mutual funds		104.9			—		104.9			—
Real estate funds		82.3			—		—			82.3
Private equity		8.6			—		—			8.6

Total fair value of plan asset investments	$	828.9		$	179.6	$	558.4		$	90.9

Non-investment plan assets		3.4

Total plan assets	$	832.3


			December 31, 2018
Asset Category	Total		Quoted Prices in Active Markets for Identical Contracts (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Non- observable Inputs (Level 3)
Short-term investments	$	14.4	$	—	$	14.4	$	—
Equity securities
Common stocks		125.6		125.6		—		—
Commingled equity funds		104.3		—		104.3		—
Fixed income securities
U.S. treasury securities		86.0		86.0		—		—
Other fixed income securities		185.8		—		185.8		—
Commingled fixed income funds		92.0		—		92.0		—
Other types of investments
Mutual funds		73.6		—		73.6		—
Real estate funds		80.4		—		—		80.4
Private equity		13.2		—		—		13.2

Total fair value of plan asset investments	$	775.3	$	211.6	$	470.1	$	93.6

Non-investment plan assets		2.2

Total plan assets	$	777.5

Schedule of Reconciliation of Fair Value Measurements Using Significant Unobservable Inputs

The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level 3) as of December 31, 2019 and 2018 (dollars in millions):


	Real estate funds		Private equity			Total
Balance at December 31, 2017	$	77.8	$	20.9		$	98.7
Actual return (loss) on plan assets:
Relating to assets still held at the reporting date		2.6		(0.3	)		2.3
Relating to assets sold during the period		—		(0.8	)		(0.8	)
Purchases, sales and settlements		—		(6.6	)		(6.6	)

Balance at December 31, 2018		80.4		13.2			93.6
Actual return (loss) on plan assets:
Relating to assets still held at the reporting date		1.9		—			1.9
Relating to assets sold during the period		—		(1.4	)		(1.4	)
Purchases, sales and settlements		—		(3.2	)		(3.2	)

Balance at December 31, 2019	$	82.3	$	8.6		$	90.9

Schedule of Estimated Future Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:


Years ending December 31 (dollars in millions)	Pension Benefits		Post-retirement Benefits
2020	$	66.8	$	0.5
2021		57.7		0.5
2022		57.1		0.5
2023		56.2		0.5
2024		55.4		0.5
2025 – 2029		270.9		2.3

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2019

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 that are designated as cash flow hedges:


December 31 (dollars in millions)	2019				2018
	Buy		Sell		Buy		Sell
British pound	$	—	$	1.3	$	—	$	1.0
Canadian dollar		—		49.7		—		—
Euro		36.0		—		32.0		—
Mexican peso		18.6		—		27.8		—

Total	$	54.6	$	51.0	$	59.8	$	1.0

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:


		Fair Value
December 31 (dollars in millions)	Balance Sheet Location	2019			2018
Foreign currency contracts	Other current assets	$	8.4		$	3.9
	Other non-current assets		—			5.1
	Accrued liabilities		(1.5	)		(0.6	)
Commodities contracts	Accrued liabilities		—			(0.9	)

Total derivatives designated as hedging instruments		$	6.9		$	7.5

Schedule of effect of cash flow hedges on the condensed consolidated statement of earnings

The effect of cash flow hedges on the condensed consolidated statement of earnings:

Years ended December 31 (dollars in millions)



Derivatives in ASC 815 cash flow hedging relationships	Amount of gain (loss) recognized in other comprehensive loss on derivative s						Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings	Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings
	2019			2018				2019			2018
Foreign currency contracts	$	0.2		$	1.8		Cost of products sold	$	(0.2	)	$	0.3
Commodities contracts		(0.5	)		(1.1	)	Cost of products sold		(1.5	)		0.3

	$	(0.3	)	$	0.7			$	(1.7	)	$	0.6

Designated as Hedging Instrument

Schedule of effect of cash flow hedges on the condensed consolidated statement of earnings

The effect of cash flow hedges on the condensed consolidated statement of earnings:

Years ended December 31 (dollars in millions)



Derivatives in ASC 815 cash flow hedging relationships	Amount of gain (loss) recognized in other comprehensive loss on derivative s						Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings	Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings
	2019			2018				2019			2018
Foreign currency contracts	$	0.2		$	1.8		Cost of products sold	$	(0.2	)	$	0.3
Commodities contracts		(0.5	)		(1.1	)	Cost of products sold		(1.5	)		0.3

	$	(0.3	)	$	0.7			$	(1.7	)	$	0.6

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of Provision for Income Taxes

The components of the provision (benefit) for income taxes consisted of the following:


Years ended December 31 (dollars in millions)	2019			2018			2017
Current:
Federal	$	66.4		$	60.1		$	148.0
State		14.8			15.6			9.4
International		19.9			38.6			43.8
Deferred:
Federal		0.4			(1.7	)		23.5
State		1.8			1.5			5.8
International		(1.2	)		(0.5	)		(6.2	)

	$	102.1		$	113.6		$	224.3

Difference Between Provision for Income Taxes and U.S. Federal Statutory Rate

The provision for income taxes differs from the U.S. federal statutory rate due to the following items:


Years ended December 31	2019			2018			2017
Provision at U.S. federal statutory rate		21.0	%		21.0	%		35.0	%
State taxes, net of federal benefit		2.8			2.4			1.9
International income tax rate differential—China		(1.3	)		(2.3	)		(6.5	)
International income tax rate differential—other		0.4			1.1			0.1
U.S. manufacturing credit		—			—			(1.4	)
Research tax credits		(0.4	)		(0.5	)		(0.3	)
Excess tax benefit on stock compensation		(0.5	)		(0.4	)		(2.2	)
Other		(0.4	)		(0.9	)		0.8

		21.6	%		20.4	%		27.4	%
U.S. Tax Cuts & Jobs Act (U.S. Tax Reform)		—			—			15.7

		21.6	%		20.4	%		43.1	%

Components of Earnings Before Income Taxes

Components of earnings before income taxes were as follows:


Years ended December 31 (dollars in millions)	2019		2018		2017
U.S.	$	400.3	$	376.0	$	329.9
International		71.8		181.8		190.9

	$	472.1	$	557.8	$	520.8

Tax Effects of Temporary Differences of Assets and Liabilities

The tax effects of temporary differences of assets and liabilities between income tax and financial reporting are as follows:


December 31 (dollars in millions)
	2019					2018
	Assets			Liabilities		Assets			Liabilities
Employee benefits	$	27.3		$	—	$	32.5		$	—
Product liability and warranties		39.7			—		42.5			—
Inventories		—			0.3		—			0.6
Accounts receivable		16.3			—		18.3			—
Property, plant and equipment		—			34.9		—			36.3
Intangibles		—			61.3		—			57.3
Environmental liabilities		1.9			—		2.1			—
Undistributed foreign earnings		—			20.8		—			28.9
Tax loss and credit carryovers		15.2			—		17.5			—
All other		7.7			—		4.0			—
Valuation allowance		(11.9	)		—		(13.1	)		—

	$	96.2		$	117.3	$	103.8		$	123.1

Net liability				$	21.1				$	19.3

Reconciliation of Tax Loss Carryovers, Credit Carryovers and Valuation Allowances

A reconciliation of the beginning and ending amounts of tax loss carryovers, credit carryovers and valuation allowances is as follows:


December 31 (dollars in millions)
	Net Operating Losses and Tax Credits						Valuation Allowances
	2019			2018			2019			2018
Beginning balance	$	17.5		$	19.8		$	13.1		$	15.0
Reductions		(2.3	)		(2.3	)		(1.2	)		(1.9	)

Ending balance	$	15.2		$	17.5		$	11.9		$	13.1

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized benefits is as follows:


(Dollars in millions)	2019		2018
Balance at January 1	$	8.3	$	6.2
Additions for tax positions of prior years		1.4		2.1

Balance at December 31	$	9.7	$	8.3

Operations by Segment (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Segment Earnings

Segment earnings, defined by the Company as earnings before interest, taxes, general corporate and corporate research and development expenses, were used to measure the performance of the segments.


	Net Sales									Earnings
Years ended December 31 (dollars in millions)	2019			2018			2017			2019			2018			2017
North America (1)	$	2,083.5		$	2,044.7		$	1,904.8		$	488.9		$	464.1		$	428.6
Rest of World		935.8			1,173.6			1,116.3			40.2			149.3			149.3
Inter-segment		(26.6	)		(30.4	)		(24.4	)		—			—			—

Total segments – sales, segment earnings	$	2,992.7		$	3,187.9		$	2,996.7		$	529.1		$	613.4		$	577.9

Corporate expenses											(46.0	)		(47.2	)		(47.0	)
Interest expense											(11.0	)		(8.4	)		(10.1	)

Earnings before income taxes											472.1			557.8			520.8
Provision for income taxes (2)											(102.1	)		(113.6	)		(224.3	)

Net earnings										$	370.0		$	444.2		$	296.5

(1)	In 2018, the Company recognized $6.7 million of restructuring and impairment expenses in connection with the move of manufacturing operations from our Renton, Washington facility to other U.S. facilities. For additional information, see Note 5 “Restructuring and Impairment Expenses.”

(2)	In 2017, the Company recorded a one-time charge of $81.8 million associated with U.S. Tax Reform, primarily related to the repatriation of undistributed foreign earnings. For additional information, see Note 15 “Income Taxes.”

Schedule of Assets, Depreciation And Capital Expenditure By Segment

Assets, depreciation and capital expenditures by segment


	Total Assets (December 31)						Depreciation and Amortization (Years Ended December 31)						Capital Expenditures (Years Ended December 31)
(dollars in millions)	2019		2018		2017		2019		2018		2017		2019		2018		2017
North America	$	1,742.8	$	1,653.6	$	1,592.6	$	49.3	$	45.5	$	45.1	$	47.6	$	45.8	$	38.5
Rest of World		709.1		721.6		741.4		27.9		25.2		23.8		15.9		32.3		55.2
Corporate		606.1		696.3		863.4		1.1		1.2		1.2		0.9		7.1		0.5

Total	$	3,058.0	$	3,071.5	$	3,197.4	$	78.3	$	71.9	$	70.1	$	64.4	$	85.2	$	94.2

Schedule of Net Sales and Long-Lived Assets by Geographic Location


	Long-lived Assets (December 31)							Net Sales (Years Ended December 31)
(dollars in millions)	2019		2018		2017			2019		2018		2017
United States	$	360.2	$	327.3	$	303.0	United States	$	1,868.7	$	1,820.8	$	1,698.1
China		266.7		252.6		250.8	China		825.4		1,071.2		1,034.9
Canada		4.2		3.1		3.2	Canada		168.5		175.0		163.7
Other Foreign		42.1		42.9		47.1	Other Foreign		130.1		120.9		100.0

Total	$	673.2	$	625.9	$	604.1	Total	$	2,992.7	$	3,187.9	$	2,996.7

Quarterly Results of Operations (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Quarterly Results of Operations


(dollars in millions, except per share amounts)
	1st Quarter				2nd Quarter				3rd Quarter				4th Quarter
	2019		2018		2019		2018		2019		2018		2019		2018
Net sales	$	748.2	$	788.0	$	765.4	$	833.3	$	728.2	$	754.1	$	750.9	$	812.5
Gross profit		292.8		321.5		308.7		341.0		284.2		306.0		295.0		337.0
Net earnings		89.3		98.8		102.1		114.5		87.3		104.6		91.3		126.3
Basic earnings per share		0.53		0.58		0.61		0.67		0.53		0.61		0.56		0.75
Diluted earnings per share		0.53		0.57		0.61		0.66		0.53		0.61		0.56		0.74
Common dividends declared		0.22		0.18		0.22		0.18		0.22		0.18		0.24		0.22

Organization and Significant Accounting Policies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) Segment	Dec. 31, 2018 USD ($) Segment	Dec. 31, 2017 USD ($)
Organization And Summary Of Significant Accounting Policies [Line Items]
Number of reporting segments \| Segment	2	2
Fair value of term notes	$ 122.1	$ 120.0
Carrying amount of term notes	$ 120.0	$ 120.0
Percentage of (LIFO) inventory	61.00%	64.00%
Advertising costs charged to operations	$ 110.7	$ 132.1	$ 126.9
Amortization of total advertising costs	28.5	38.7	43.0
Research and development costs	87.9	94.0	86.4
Excess tax deductions recognized as financing cash flows	$ 2.3	$ 2.4	$ 11.6
Minimum percentage of amount likely to be realized upon ultimate settlement to recognize tax benefits	50.00%
Minimum
Organization And Summary Of Significant Accounting Policies [Line Items]
Marketable securities, Maturity period	180 days
Product warranty period	1 year
Amortization of total advertising costs, months	12 months
Minimum \| Customer Relationships
Organization And Summary Of Significant Accounting Policies [Line Items]
Intangible assets estimated useful lives	5 years
Minimum \| Buildings
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated service lives used to compute depreciation	25 years
Minimum \| Equipment
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated service lives used to compute depreciation	3 years
Minimum \| Software
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated service lives used to compute depreciation	3 years
Maximum
Organization And Summary Of Significant Accounting Policies [Line Items]
Marketable securities, Maturity period	12 months
Product warranty period	10 years
Amortization of total advertising costs, months	36 months
Maximum \| Customer Relationships
Organization And Summary Of Significant Accounting Policies [Line Items]
Intangible assets estimated useful lives	25 years
Maximum \| Buildings
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated service lives used to compute depreciation	50 years
Maximum \| Equipment
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated service lives used to compute depreciation	20 years
Maximum \| Software
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated service lives used to compute depreciation	15 years

Company's Warranty Liability Activity (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Product Warranties
Balance at beginning of year	$ 139.4	$ 141.2
Expense	44.3	40.7
Claims settled	(49.4)	(42.5)
Balance at end of year	$ 134.3	$ 139.4

Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
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	$ 177.4	$ 385.3
Significant other observable inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities measured at fair value on recurring basis	$ 6.9	$ 7.5

Schedule of Computation of Basic and Diluted Weighted-Average Shares Used in Earnings per Share Calculations (Detail) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings per Share of Common Stock
Denominator for basic earnings per share - weighted-average shares outstanding	165,450,441	170,589,345	172,666,056
Effect of dilutive stock options, restricted stock and share units	1,260,456	1,604,695	1,939,133
Denominator for diluted earnings per share	166,710,897	172,194,040	174,605,189

Revenue Recognition - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) Segment Distributor	Dec. 31, 2018 USD ($) Segment
Customer deposits liability	$ 49.6	$ 47.0
Allowance for doubtful accounts	$ 6.7	$ 6.4
Number of reporting segments \| Segment	2	2
Water Heaters \| North America
Number of wholesale distributors \| Distributor	1,300

Segment Sales Disaggregated by Major Product Line (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 750.9

$ 728.2

$ 765.4

$ 748.2

$ 812.5

$ 754.1

$ 833.3

$ 788.0

$ 2,992.7

$ 3,187.9

$ 2,996.7

China

825.4

1,071.2

1,034.9

Inter-segment

Operating Segments [Member] | North America

(26.6)

(30.4)

(24.4)

Operating Segments [Member] | North America | Water Heaters And Related Parts [Member]

^[1]

2,083.5

2,044.7

1,904.8

Operating Segments [Member] | North America | Boilers And Related Parts [Member]

1,742.6

1,757.0

1,663.0

Operating Segments [Member] | North America | Water Treatment Products [Member]

199.5

200.4

183.3

Operating Segments [Member] | Rest of World [Member]

^[2]

141.4

87.3

58.5

Operating Segments [Member] | Rest of World [Member] | China

935.8

1,173.6

1,116.3

Operating Segments [Member] | Rest of World [Member] | All Other Rest Of World [Member]

827.2

1,070.4

1,029.4

Cost of products sold [Member]

$ 108.6

$ 103.2

$ 86.9

[1]	In 2018, the Company recognized $6.7 million of restructuring and impairment expenses in connection with the move of manufacturing operations from our Renton, Washington facility to other U.S. facilities. For additional information, see Note 5 “Restructuring and Impairment Expenses.”
[2]	Includes the results of Water-Right and Hague Quality Water International (Hague) from the date of acquisition of April 8, 2019 and September 5, 2017, respectively.

Acquisitions - Additional Information (Detail) - USD ($) $ in Millions			12 Months Ended
	Apr. 08, 2019	Sep. 05, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Aggregate cash purchase price, net of cash acquired			$ 107.0		$ 43.1
Acquired intangible assets, amortization period, in years			13 years
Payment for Contingent Consideration Liability, Financing Activities			$ 1.0	$ 2.3	1.7
Water-Right, Inc
Business Acquisition [Line Items]
Percentage of ownership interest acquired	100.00%
Aggregate cash purchase price, net of cash acquired	$ 107.0
Acquisition-related costs			0.4
Acquired intangible assets	60.4
Revenues associated with Water-Right			44.3
pre-tax earnings associated with Water-Right			$ 7.5
Effective Date Of Acquisition			Apr. 08, 2019
operating earnings associated with Water-Right			$ 7.1
Water-Right, Inc \| Escrow Deposit [Member]
Business Acquisition [Line Items]
consideration to former owners			4.0
Water-Right, Inc \| Noncompete agreements
Business Acquisition [Line Items]
Acquired intangible assets, subject to amortization	$ 1.2
Acquired intangible assets, amortization period, in years	7 years 6 months
Water-Right, Inc \| Customer relationships
Business Acquisition [Line Items]
Acquired intangible assets, not subject to amortization	$ 19.0
Acquired intangible assets, subject to amortization	$ 40.2
Acquired intangible assets, amortization period, in years	20 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	1.5	2.0	$ 2.0
Acquisition-related costs			0.2
Acquired intangible assets		12.8
Payment for Contingent Consideration Liability, Financing Activities				$ 1.3
Estimated Fair Value Business Combination Contingent Consideration Liability			$ 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

Schedule of Preliminary Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Apr. 08, 2019	Dec. 31, 2018	Dec. 31, 2017	Sep. 05, 2017
Business Acquisition [Line Items]
Goodwill	$ 546.0		$ 513.0	$ 516.7
Hague
Business Acquisition [Line Items]
Current assets, net of cash acquired					$ 7.8
Property, plant and equipment					6.9
Intangible assets					12.8
Goodwill					22.2
Total assets acquired					49.7
Current liabilities					(5.6)
Long-term liabilities					(1.0)
Total liabilities assumed					(6.6)
Net assets acquired					$ 43.1
Water-Right, Inc
Business Acquisition [Line Items]
Current assets, net of cash acquired		$ 9.7
Property, plant and equipment		8.6
Intangible assets		60.4
Goodwill		31.0
Total assets acquired		109.7
Current liabilities		(2.7)
Net assets acquired		$ 107.0

Leases - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating lease termination option	options to terminate can be effective within one year
Rent expense, including payments under operating leases		$ 24.0	$ 23.9
Minimum [Member]
Operating lease term of extension	1 year
Maximum [Member]
Operating lease term of extension	5 years

Leases supplemental balance sheet (Detail) $ in Millions	12 Months Ended
Leases supplemental balance sheet (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Liabilities
Short term: Accrued liabilities	$ 12.0
Long term: Operating lease liabilities	38.7
Total Operating Lease Liabilities	50.7
Less:Rent incentives and deferrals	(3.8)
Assets
Operating lease assets	$ 46.9
Lease Term and Discount Rate
Weighted-average remaining lease term	10 years
Weighted-average discount rate	3.93%

Leases - Components of lease expense (Detail)
$ in Millions

12 Months Ended

Dec. 31, 2019

USD ($)

Short term lease expense

$ 2.0

Variable lease expenses

2.1

Operating lease expense

3.0

^[1]

Selling, general and administrative expenses [Member]

Operating lease expense

$ 17.6

[1]	Includes short-term lease expense of $2.0 million for the twelve months ended December 31, 2019. Includes variable lease cost of $2.1 million for the twelve months ended December 31, 2019.

Maturities of lease liabilities (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 14.0
2021	10.5
2022	9.0
2023	4.9
2024	3.7
After 2024	22.8
Total lease payments	64.9
Less: imputed interest	(14.2)
Present value of operating lease liabilities	$ 50.7

Restructuring and Impairment Expenses - Additional Information (Detail) - USD ($)
$ in Millions

12 Months Ended

Mar. 21, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Restructuring Costs and Asset Impairment Charges

$ 6.7

$ 0.0

$ 6.7

$ 0.0

Severance Costs

4.0

Lease exit cost

2.1

Impairment of long-lived assets

0.6

Tax benefit related to the charges

^[1]

$ 102.1

$ 113.6

$ 224.3

Restructuring and Impairment Charges

Tax benefit related to the charges

$ 1.7

[1]	In 2017, the Company recorded a one-time charge of $81.8 million associated with U.S. Tax Reform, primarily related to the repatriation of undistributed foreign earnings. For additional information, see Note 15 “Income Taxes.”

Schedule of Analysis of Company's Restructuring Reserve (Detail) - USD ($) $ in Millions		12 Months Ended
	Mar. 21, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Beginning balance		$ 1.5	$ 0.0
Restructuring expense recognized	$ 6.7	0.0	6.7	$ 0.0
Cash payments and disposals		(1.0)	(5.2)
Ending balance		0.5	1.5	0.0
Severance Costs
Beginning balance		0.2	0.0
Restructuring expense recognized			4.0
Cash payments and disposals		(0.2)	(3.8)
Ending balance		0.0	0.2	0.0
Lease Exit Costs
Beginning balance		1.3	0.0
Restructuring expense recognized			2.1
Cash payments and disposals		(0.8)	(0.8)
Ending balance		0.5	1.3	$ 0.0
Fixed Assets Impairment
Beginning balance		0.0
Restructuring expense recognized			0.6
Cash payments and disposals		0.0	(0.6)
Ending balance		$ 0.0	$ 0.0

Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net change in current assets and liabilities, net of acquisitions:
Receivables	$ 62.4	$ (54.6)	$ (75.8)
Inventories	6.3	(7.7)	(37.5)
Other current assets	(4.8)	10.0	(9.0)
Trade payables	(35.4)	8.8	(5.1)
Accrued liabilities, including payroll and benefits	14.2	(3.5)	12.2
Income taxes	(10.1)	7.0	(12.6)
Current assets and liabilities	$ 32.6	$ (40.0)	$ (127.8)

Schedule of Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Inventories
Finished products	$ 136.8	$ 137.6
Work in process	21.7	23.3
Raw materials	168.3	174.4
Inventories, at FIFO cost	326.8	335.3
LIFO reserve	(23.8)	(30.6)
Net inventory	$ 303.0	$ 304.7

Inventories - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Inventories [Line Items]
After-tax LIFO income	$ 0.7	$ 0.4	$ 0.3

Property, Plant and Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,156.9	$ 1,096.8
Less accumulated depreciation and amortization	611.5	556.8
Net property, plant and equipment	545.4	540.0
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	11.6	11.2
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	334.1	323.3
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	686.9	643.8
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 124.3	$ 118.5

Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Line Items]
Beginning balance	$ 513.0	$ 516.7
Acquisitions	31.0
Currency translation adjustment	2.0	(3.7)
Ending balance	546.0	513.0
North America
Goodwill [Line Items]
Beginning balance	453.9	457.2
Acquisitions	31.0
Currency translation adjustment	2.0	(3.3)
Ending balance	486.9	453.9
Rest of World
Goodwill [Line Items]
Beginning balance	59.1	59.5
Currency translation adjustment		(0.4)
Ending balance	$ 59.1	$ 59.1

Schedule of Carrying Amount of Other Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount, Amortizable intangible assets	$ 281.7	$ 240.5
Gross Carrying Amount, Total intangible assets	465.5	404.6
Accumulated Amortization, Amortizable intangible assets	(127.1)	(111.5)
Net, Amortizable intangible assets	154.6	129.0
Net, Total intangible assets	338.4	293.1
Trade Names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount, indefinite-lived intangible assets	183.8	164.1
Net, Indefinite-lived intangible assets	183.8	164.1
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount, Amortizable intangible assets	3.7	3.7
Accumulated Amortization, Amortizable intangible assets	(3.5)	(3.3)
Net, Amortizable intangible assets	0.2	0.4
Customer Lists
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount, Amortizable intangible assets	278.0	236.8
Accumulated Amortization, Amortizable intangible assets	(123.6)	(108.2)
Net, Amortizable intangible assets	$ 154.4	$ 128.6

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill And Other Intangibles [Line Items]
Amortization expenses of other intangible assets	$ 15,800,000	$ 14,300,000	$ 13,700,000
Amortization of intangible assets, weighted average period, years	13 years
Annual impairment of goodwill	$ 0	0	0
Intangible asset impairment charge	0	$ 0	$ 0
Annually
Goodwill And Other Intangibles [Line Items]
Amortization expenses of other intangible assets	$ 15,700,000

Schedule of Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt	$ 284.0	$ 221.4
Less long-term debt due within one year	6.8
Long-term debt	277.2	221.4
Revolving Credit Agreement Borrowings
Debt Instrument [Line Items]
Debt	85.0	10.0
Bank Credit Lines
Debt Instrument [Line Items]
Debt	4.7	17.1
Commercial Paper
Debt Instrument [Line Items]
Debt	74.3	74.3
Term Notes With Insurance Companies
Debt Instrument [Line Items]
Debt	$ 120.0	$ 120.0

Schedule of Debt (Parenthetical) (Detail)	12 Months Ended
Schedule of Debt (Parenthetical) (Detail)	Dec. 31, 2019	Dec. 31, 2018
Bank Credit Lines
Debt Instrument [Line Items]
Line of credit facility, average year-end interest rate	2.40%	3.40%
Commercial Paper
Debt Instrument [Line Items]
Line of credit facility, average year-end interest rate	2.20%	2.70%
Term Notes With Insurance Companies
Debt Instrument [Line Items]
Line of credit facility, average year-end interest rate	3.30%	3.30%
Debt instrument maturity	2029	2034
Revolving Credit Agreement Borrowings
Debt Instrument [Line Items]
Line of credit facility, average year-end interest rate	2.80%	3.50%

Debt - Additional Information (Detail) $ in Millions	12 Months Ended
Debt - Additional Information (Detail) $ in Millions	Dec. 31, 2016 USD ($) Banks
Debt Instrument [Line Items]
Multi-currency revolving credit agreement	$ 500
Number of banks involved in multi-year multi-currency revolving credit agreement \| Banks	9
Revolving credit facility, expiration date	Dec. 15, 2021
Multi-currency revolving credit agreement, maximum amount	$ 700

Schedule of Maturities of Long Term Debt (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Debt And Lease Commitments [Abstract]
2020	$ 6.8
2021	170.8
2022	6.8
2023	10.0
2024	$ 10.0

Stock Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total stock based compensation cost recognized

$ 13.3

$ 10.1

$ 9.9

Stock option compensation expense recognized

$ 6.4

$ 4.4

$ 4.7

Weighted-average fair value per option at the date of grant

$ 10.83

$ 14.80

$ 13.04

Number of Options, outstanding

2,728,350

^[1]

2,432,689

^[1]

2,263,126

^[1]

2,664,333

Number of options, exercisable at end of period

^[2]

1,820,743

1,665,184

1,387,259

intrinsic value of options exercised

$ 7.7

$ 6.8

$ 29.1

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term

7 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value

$ 34.2

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term

6 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value

$ 34.2

Employee Stock Option

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting period

3 years

Stock Appreciation Rights (SARs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting period

3 years

Number of Options, outstanding

14,880

16,170

23,660

Number of options, exercisable at end of period

15,774

Restricted Stock And Share Units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of Units - Granted

140,102

106,581

107,853

Value of share units at the date of issuance

$ 6.9

$ 6.6

$ 5.4

Share based compensation expense attributable to share units

$ 6.9

$ 5.7

$ 5.2

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

1,855,560

[1]	The weighted average remaining contractual life of options outstanding was 7 years at December 31, 2019, December 31, 2018, and December 31, 2017. The aggregate intrinsic value of options outstanding at December 31, 2019 was $34.2 million.
[2]	The weighted average remaining contractual life of options exercisable was 6 years at December 31, 2019, December 31, 2018 and, December 31, 2017. The aggregate intrinsic value of options exercisable at December 31, 2019 was $34.2 million.

Changes in Option Awards All of Which Related to Common Stock (Detail) - $ / shares

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted-Avg. Per Share Exercise Price, beginning period

$ 33.05

^[1]

$ 27.73

^[1]

$ 21.69

Weighted-Avg. Per Share Exercise Price - Granted

49.49

61.62

50.16

Weighted-Avg. Per Share Exercise Price - Exercised

^[2]

18.55

22.93

16.93

Weighted-Avg. Per Share Exercise Price - Forfeited

54.02

47.95

37.46

Weighted-Avg. Per Share Exercise Price, ending period

^[1]

37.64

33.05

27.73

Weighted-Average Per Share Exercise Price, Exercisable

^[3]

$ 30.07

$ 24.52

$ 20.48

Number of Options Outstanding, Beginning Balance

2,432,689

^[1]

2,263,126

^[1]

2,664,333

Number of Options, Granted

557,045

373,220

358,150

Number of Options, Exercised

^[2]

(249,840)

(176,302)

(752,603)

Number of Options, Forfeited

(11,544)

(27,355)

(6,754)

Number of Options Outstanding, Ending Balance

^[1]

2,728,350

2,432,689

2,263,126

Number of Options, Exercisable at End of Period

^[3]

1,820,743

1,665,184

1,387,259

[1]	The weighted average remaining contractual life of options outstanding was 7 years at December 31, 2019, December 31, 2018, and December 31, 2017. The aggregate intrinsic value of options outstanding at December 31, 2019 was $34.2 million.
[2]	The total intrinsic value of options exercised in 2019, 2018 and 2017 was $7.7 million, $6.8 million and $29.1 million, respectively.
[3]	The weighted average remaining contractual life of options exercisable was 6 years at December 31, 2019, December 31, 2018 and, December 31, 2017. The aggregate intrinsic value of options exercisable at December 31, 2019 was $34.2 million.

Nonvested Stock Options (Detail) - $ / shares	12 Months Ended
Nonvested Stock Options (Detail) - $ / shares	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Nonvested options at beginning of year (Shares)	767,505
Granted (Shares)	557,045	373,220	358,150
Vested (Shares)	(408,648)
Forfeited (Shares)	(8,295)
Nonvested options at end of year (Shares)	907,607	767,505
Nonvested options at beginning of year (Weighted Avg. Exercise Price)	$ 51.55
Granted (Weighted Avg. Exercise Price)	49.49	$ 61.62	$ 50.16
Vested (Weighted Avg. Exercise Price)	45.87
Forfeited (Weighted Avg. Exercise Price)	53.88
Nonvested options at end of year (Weighted Avg. Exercise Price)	$ 52.82	$ 51.55

Schedule of Weighted-Average Fair Value per Option at Date of Grant (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Based Compensation [Abstract]
Expected life (years)	5 years 6 months	5 years 8 months 12 days	5 years 8 months 12 days
Risk-free interest rate	2.70%	2.90%	2.40%
Dividend yield	1.60%	1.00%	1.00%
Expected volatility	22.80%	22.10%	26.50%

Summary of Share Unit Activity Under Plan (Detail) - Restricted Stock And Share Units - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Units Issued and unvested, Beginning of Period	379,601
Number of Units - Granted	140,102	106,581	107,853
Number of Units - Vested	(147,642)
Number of Units - Forfeited/cancelled	(5,959)
Number of Units Issued and unvested, End of Period	366,102	379,601
Weighted-Average Grant Date Value, Beginning of Period	$ 42.93
Weighted-Average Grant Date Value - Granted	49.44
Weighted-Average Grant Date Value - Vested	31.35
Weighted-Average Grant Date Value - Forfeited/cancelled	55.48
Weighted-Average Grant Date Value, End of Period	$ 49.92	$ 42.93

Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Trading Activity, Gains and Losses, Net [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	$ (1.3)	$ (38.4)	$ 52.7
Net Investment Hedging [Member] \| Non-US [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	0.0	$ 7.4
Derivative, Notional Amount	$ 100.0
Commodity Futures Contracts
Trading Activity, Gains and Losses, Net [Line Items]
Reclassification period for effective portion of contract, in years	1 year

Schedule of Summary by Currency of Foreign Currency Forward Contracts (Detail) - Foreign currency forward contracts - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Buy
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	$ 54.6	$ 59.8
Buy \| Euro
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	36.0	32.0
Buy \| Mexican peso
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	18.6	27.8
Sell
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	51.0	1.0
Sell \| British pound
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	1.3	$ 1.0
Sell \| Canadian dollar
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts of foreign currency forward contracts	$ 49.7

Impact of Derivative Contracts on Company's Financial Statements (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, total	$ 6.9	$ 7.5
Designated as Hedging Instrument \| Foreign Currency Contracts \| Other Current Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, assets	8.4	3.9
Designated as Hedging Instrument \| Foreign Currency Contracts \| Accrued Liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, liabilities	(1.5)	(0.6)
Designated as Hedging Instrument \| Foreign Currency Contracts \| Other Noncurrent Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, assets		5.1
Designated as Hedging Instrument \| Commodities Contracts \| Accrued Liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, assets
Fair value of derivative instruments, liabilities		$ (0.9)

Schedule of Effect of Derivatives Instruments on Consolidated Statement of Earnings (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Amount of gain (loss) recognized in other comprehensive loss on derivatives	$ (0.3)	$ 0.7
Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings	(1.7)	0.6
Foreign Currency Contracts
Derivative [Line Items]
Amount of gain (loss) recognized in other comprehensive loss on derivatives	0.2	1.8
Foreign Currency Contracts \| Cost Of Products Sold
Derivative [Line Items]
Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings	(0.2)	0.3
Commodities Contracts
Derivative [Line Items]
Amount of gain (loss) recognized in other comprehensive loss on derivatives	(0.5)	(1.1)
Commodities Contracts \| Cost Of Products Sold
Derivative [Line Items]
Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings	$ (1.5)	$ 0.3

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Contingency [Line Items]
Corporate income tax rate			21.00%	21.00%	35.00%
Provisional Income tax expense	$ 6.7	$ 81.8		$ 0.0	$ 81.8
Income tax expense related to one time mandatory tax		83.5
Income tax expense due to tax rate reform		$ 1.7
Total taxes paid			$ 116.6	$ 116.4	$ 131.1
Cash and cash equivalents and marketable securities were held by foreign subsidiaries			548.6
Unrecognized tax benefits that would affect the effective tax rate, if recognized			0.8
Anticipated decrease in unrecognized tax benefits			$ 0.0
State and local \| Earliest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination			2002
State and local \| Latest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination			2019
Non-U.S. \| Earliest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination			2013
Non-U.S. \| Latest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination			2019
U.S. federal \| Earliest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination			2016
U.S. federal \| Latest Tax Year
Income Tax Contingency [Line Items]
Income tax examinations, years under examination			2019
Discontinued Operations
Income Tax Contingency [Line Items]
Additional income tax accrual			$ 20.8

Stockholders Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2019
Stockholders Equity [Line Items]
Preferred stock, shares authorized	3,000,000
Preferred stock, par value	$ 1
Dividends paid	$ 0.90	$ 0.76	$ 0.56
Stock repurchase program number of shares authorized to repurchase				3,000,000
Shares repurchased	6,113,038	3,797,800	2,533,350
Shares repurchased, price per share	$ 47.06
Shares repurchased, value	$ 287.7	$ 202.6	$ 139.1
Remaining authorization stock repurchase	2,962,215
Common Class A
Stockholders Equity [Line Items]
Common Stock, shares authorized	27,000,000
Common stock, par value	$ 5
Shares converted into Common Stock	10,442	48,232	73,792
Treasury stock, number of shares held	130,380	130,380
Common Stock
Stockholders Equity [Line Items]
Common Stock, shares authorized	240,000,000
Common stock, par value	$ 1
Treasury stock, number of shares held	28,205,806	22,418,066

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Accumulated Other Comprehensive Income (Loss) [Line Items]

$ 1,717.0

$ 1,644.9

Cumulative foreign currency translation

1,666.8

1,717.0

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive gain (loss) before reclassifications

(64.9)

(26.5)

(1.3)

(38.4)

Unrealized net gain on cash flow derivatives

(66.2)

(64.9)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive gain (loss) before reclassifications

(0.7)

(0.9)

(0.3)

0.6

Realized losses (gains) on derivatives reclassified to cost of products sold (net of tax (benefit) provision of ($0.5) and $0.2 in 2019 and 2018, respectively)

^[1]

1.2

(0.4)

Accumulated Other Comprehensive Income (Loss) [Line Items]

0.2

(0.7)

Pension liability

Other comprehensive gain (loss) before reclassifications

(285.2)

(272.1)

(9.5)

(27.0)

Amounts reclassified from accumulated other comprehensive loss

^[1]

12.4

13.9

Accumulated Other Comprehensive Loss

(282.3)

(285.2)

Accumulated Other Comprehensive Income (Loss) [Line Items]

(350.8)

(299.5)

Unrealized net gain on cash flow derivatives

$ (348.3)

$ (350.8)

[1]

Amounts reclassified from accumulated other comprehensive loss: Realized loss (gains) on derivatives reclassified to cost of products sold 1.7 (0.6 ) Tax (benefit) provision (0.5) 0.2 Reclassification net of tax $ 1.2 $ (0.4 ) Amortization of pension items: Actuarial losses $ 16.8 (2) $ 19.0 (2) Prior year service cost (0.5 )(2) (0.5 )(2) 16.3 18.5 Tax benefit (3.9) (4.6 ) Reclassification net of tax $ 12.4 $ 13.9

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Accumulated Other Comprehensive Income (Loss) [Line Items]

Realized loss (gains) on derivatives reclassified to cost of products sold

$ 1.7

$ (0.6)

Tax (benefit) provision

(0.5)

0.2

Reclassification net of tax

1.2

(0.4)

Pension liability

Accumulated Other Comprehensive Income (Loss) [Line Items]

Reclassification, before income tax benefit

16.3

18.5

Tax (benefit) provision

(3.9)

(4.6)

Reclassification net of tax

^[1]

12.4

13.9

Actuarial losses

Accumulated Other Comprehensive Income (Loss) [Line Items]

Reclassification, before income tax benefit

^[2]

16.8

19.0

Prior year service cost

Accumulated Other Comprehensive Income (Loss) [Line Items]

Reclassification, before income tax benefit

^[2]

$ (0.5)

[1]

[2]

These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. See Note 13 “Pensions and Other Post-retirement Benefits” for additional details.

Pensions and Other Post-retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Percentage match of the first one percent of contributions made by participating employees	100.00%
Percentage Match Of The Next Five Percent Of Contributions Made By Participating Employees	50.00%
Medical and life insurance maximum participant coverage age, in years	65 years
Other comprehensive gain(loss) as a result of after tax adjustments for additional minimum pension liability	$ 2.9	$ 13.1
Minimum
Defined Benefit Plan Disclosure [Line Items]
Target allocation to equity managers	30.00%
Maximum
Defined Benefit Plan Disclosure [Line Items]
Target allocation to equity managers		60.00%
Ten Year Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Number of historical years for which compounded annualized returns is considered	10 years
Compounded annualized return of pension plan	9.20%
Twenty Five Year Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Compounded annualized return of pension plan	9.30%
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Estimated net actuarial gain that will be amortized from accumulated other comprehensive loss into net periodic benefit cost	$ 19.8
Estimated net prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost	(0.5)
Post-Retirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Estimated net actuarial gain that will be amortized from accumulated other comprehensive loss into net periodic benefit cost	0.0
Estimated net prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost	$ (0.3)

Schedule of Changes in Benefit Obligations, Plan Assets and Funded Status of Defined Benefit Pension and Post-Retirement Benefit Plans (Detail) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Change in fair value of plan assets

Plan assets at beginning of year

$ 775.3

Plan assets at end of year

828.9

$ 775.3

Net pension liability at end of year

(0.2)

Pension Plans, Defined Benefit

Defined Benefit Plan Disclosure [Line Items]

Accumulated benefit obligation (ABO) at December 31

868.7

833.0

Change in projected benefit obligations (PBO)

PBO at beginning of year

(833.8)

(922.7)

Service cost

(1.6)

(2.0)

$ (1.8)

Interest cost

(31.6)

(28.9)

(30.0)

Actuarial (loss) gain including assumption changes

(98.6)

61.2

Plan assets at beginning of year

96.3

58.6

PBO at end of year

(869.3)

(833.8)

(922.7)

Change in fair value of plan assets

777.5

874.8

Actual return on plan assets

143.4

(39.3)

Contribution by the company

7.8

0.6

Plan assets at end of year

(96.3)

(58.6)

832.4

777.5

874.8

Funded status

(36.9)

(56.3)

Current liabilities

(9.3)

(7.1)

Non-current liabilities

(27.6)

(49.2)

Net pension liability at end of year

^[1]

(36.9)

(56.3)

Net actuarial loss (gain)

463.1

468.9

Prior service cost

0.5

Total recognized in accumulated other comprehensive loss

463.6

468.9

Post-Retirement Benefits

Change in projected benefit obligations (PBO)

PBO at beginning of year

(7.0)

(7.6)

Service cost

(0.1)

(0.2)

(0.1)

Interest cost

(0.3)

Participant contributions

(0.1)

Actuarial (loss) gain including assumption changes

(1.2)

0.6

Contribution by the company

0.7

0.6

PBO at end of year

(8.0)

(7.0)

$ (7.6)

Change in fair value of plan assets

0.5

Participant contributions

0.1

Net pension liability at end of year

(0.6)

Funded status

(8.0)

(7.0)

Current liabilities

(0.5)

Non-current liabilities

(7.5)

(6.5)

(8.0)

(7.0)

Net actuarial loss (gain)

(0.2)

(1.4)

Prior service cost

(1.8)

(2.2)

Total recognized in accumulated other comprehensive loss

$ (2.0)

$ (3.6)

[1]	In addition, the Company has a liability for a foreign pension plan of $0.2 million at December 31, 2019 and 2018.

Schedule of Changes in Benefit Obligations, Plan Assets and Funded Status of Defined Benefit Pension and Post-Retirement Benefit Plans (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Liability on foreign pension plan	$ 0.2	$ 0.2

Components of Company's Net Pension Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension and Other Postretirement Benefits Disclosure [Line Items]
Total recognized in other comprehensive loss	$ (2.9)	$ 13.1	$ (12.1)
Pension Plans, Defined Benefit
Pension and Other Postretirement Benefits Disclosure [Line Items]
Service cost	1.6	2.0	1.8
Interest cost	31.6	28.9	30.0
Expected return on plan assets	(57.3)	(58.1)	(58.4)
Net actuarial loss (gain)	16.8	19.0	17.9
Prior service cost	(0.5)	(0.5)	(0.4)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	(7.8)	(8.7)	(9.1)
Curtailment and other one-time charges	1.6	0.0	0.0
Various U.S. defined contribution plans cost	13.3	12.2	12.0
Defined Benefit Plan And Defined Contribution Plan Periodic Benefit Cost, Total	7.1	3.5	2.9
Other changes in plan assets and projected benefit obligation recognized in other comprehensive loss Net actuarial (gain) loss	12.6	36.1	(3.8)
Amortization of net actuarial (loss) gain	(18.4)	(19.0)	(17.9)
Amortization of prior service cost	0.5	0.5	0.5
Total recognized in other comprehensive loss	(5.3)	17.6	(21.2)
Total recognized in net periodic (benefit) cost and other comprehensive loss	(11.5)	8.9	(30.3)
Post-Retirement Benefits
Pension and Other Postretirement Benefits Disclosure [Line Items]
Service cost	0.1	0.2	0.1
Interest cost	0.3	0.3	0.3
Expected return on plan assets	0.0	0.0	0.0
Net actuarial loss (gain)	0.0	0.0	(0.1)
Prior service cost	(0.4)	(0.4)	(0.4)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	0.0	0.0	(0.1)
Other changes in plan assets and projected benefit obligation recognized in other comprehensive loss Net actuarial (gain) loss	1.2	(0.6)	1.1
Amortization of net actuarial (loss) gain	0.0	0.0	0.1
Amortization of prior service cost	0.4	0.4	0.4
Total recognized in other comprehensive loss	1.6	(0.2)	1.6
Total recognized in net periodic (benefit) cost and other comprehensive loss	$ 1.6	$ (0.2)	$ 1.5

Actuarial Assumptions Used to Determine Benefit Obligations (Detail)	Dec. 31, 2019	Dec. 31, 2018
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.18%	4.32%
Post-Retirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.40%	4.46%

Assumptions Used to Determine Net Periodic Benefit Cost (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.32%	3.65%	4.15%
Expected long-term return on plan assets	7.15%	7.15%	7.50%
Rate of compensation increase	4.00%	4.00%	4.00%
Post-Retirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.45%	3.79%	4.40%
Rate of compensation increase	4.00%	4.00%	4.00%

Health Care Cost Trend Rates (Detail)	12 Months Ended
Health Care Cost Trend Rates (Detail)	Dec. 31, 2019	Dec. 31, 2018
Pension And Other Post-Retirement Benefits
Health care cost trend rate assumed for next year	7.70%	6.00%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.00%	5.00%
Year that the rate reaches the ultimate trend rate	2029	2021

Weighted Asset Allocations by Asset Category (Detail)	Dec. 31, 2019	Dec. 31, 2018
Pension And Other Post-Retirement Benefits
Average Assets Allocation	100.00%	100.00%
Equity Securities
Pension And Other Post-Retirement Benefits
Average Assets Allocation	42.00%	40.00%
Debt Securities
Pension And Other Post-Retirement Benefits
Average Assets Allocation	47.00%	48.00%
Real estate
Pension And Other Post-Retirement Benefits
Average Assets Allocation	10.00%	10.00%
Private equity
Pension And Other Post-Retirement Benefits
Average Assets Allocation	1.00%	2.00%

Fair Value Measurement of Plan Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	$ 828.9	$ 775.3
Non-investment plan assets	3.4	2.2
Total plan assets	832.3	777.5
Short-term Investments
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	14.6	14.4
Equity Securities \| Commingled Equity Funds
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	113.4	104.3
Equity Securities \| Common Stock
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	127.0	125.6
Fixed Income Securities \| Option [Member]
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	(10.8)
Fixed Income Securities \| Other Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	225.1	185.8
Fixed Income Securities \| Commingled Fixed Income Funds
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	114.0	92.0
Fixed Income Securities \| US Treasury Securities
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	49.8	86.0
Other Investments \| Private equity
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	8.6	13.2
Other Investments \| Mutual Fund
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	104.9	73.6
Other Investments \| Real estate funds
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	82.3	80.4
Quoted Prices In Active Markets For Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	179.6	211.6
Quoted Prices In Active Markets For Identical Assets (Level 1) \| Short-term Investments
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	2.8
Quoted Prices In Active Markets For Identical Assets (Level 1) \| Equity Securities \| Common Stock
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	127.0	125.6
Quoted Prices In Active Markets For Identical Assets (Level 1) \| Fixed Income Securities \| US Treasury Securities
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	49.8	86.0
Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	558.4	470.1
Significant Other Observable Inputs (Level 2) \| Short-term Investments
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	11.8	14.4
Significant Other Observable Inputs (Level 2) \| Equity Securities \| Commingled Equity Funds
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	113.4	104.3
Significant Other Observable Inputs (Level 2) \| Fixed Income Securities \| Option [Member]
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	(10.8)
Significant Other Observable Inputs (Level 2) \| Fixed Income Securities \| Other Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	225.1	185.8
Significant Other Observable Inputs (Level 2) \| Fixed Income Securities \| Commingled Fixed Income Funds
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	114.0	92.0
Significant Other Observable Inputs (Level 2) \| Other Investments \| Mutual Fund
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	104.9	73.6
Significant Non-observable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	90.9	93.6	$ 98.7
Significant Non-observable Inputs (Level 3) \| Real estate funds
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	82.3	80.4	$ 77.8
Significant Non-observable Inputs (Level 3) \| Other Investments \| Private equity
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	8.6	13.2
Significant Non-observable Inputs (Level 3) \| Other Investments \| Real estate funds
Defined Benefit Plan Disclosure [Line Items]
Total fair value of plan asset investments	$ 82.3	$ 80.4

Reconciliation of Fair Value Measurements Using Significant Unobservable Inputs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Plan assets at beginning of year	$ 775.3
Plan assets at end of year	828.9	$ 775.3
Significant Non-observable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Plan assets at beginning of year	93.6	98.7
Relating to assets still held at the reporting date	1.9	2.3
Relating to assets sold during the period	(1.4)	(0.8)
Purchases, sales and settlements	(3.2)	(6.6)
Plan assets at end of year	90.9	93.6
Real estate funds \| Significant Non-observable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Plan assets at beginning of year	80.4	77.8
Relating to assets still held at the reporting date	1.9	2.6
Plan assets at end of year	82.3	80.4
Private equity \| Significant Non-observable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Plan assets at beginning of year	13.2	20.9
Relating to assets still held at the reporting date		(0.3)
Relating to assets sold during the period	(1.4)	(0.8)
Purchases, sales and settlements	(3.2)	(6.6)
Plan assets at end of year	$ 8.6	$ 13.2

Estimated Future Payments (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
2020	$ 66.8
2021	57.7
2022	57.1
2023	56.2
2024	55.4
2025 - 2029	270.9
Post-Retirement Benefits
Defined Benefit Plan Disclosure [Line Items]
2020	0.5
2021	0.5
2022	0.5
2023	0.5
2024	0.5
2025 - 2029	$ 2.3

Components of Provision for Income Taxes (Detail) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Income Taxes

Current, Federal

$ 66.4

$ 60.1

$ 148.0

Current, State

14.8

15.6

9.4

Current, International

19.9

38.6

43.8

Deferred, Federal

0.4

(1.7)

23.5

Deferred, State

1.8

1.5

5.8

Deferred, International

(1.2)

(0.5)

(6.2)

Provision for income taxes

^[1]

$ 102.1

$ 113.6

$ 224.3

[1]	In 2017, the Company recorded a one-time charge of $81.8 million associated with U.S. Tax Reform, primarily related to the repatriation of undistributed foreign earnings. For additional information, see Note 15 “Income Taxes.”

Difference Between Provision For Income Taxes And U.S. Federal Statutory Rate (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Provision at U.S. federal statutory rate	21.00%	21.00%	35.00%
State taxes, net of federal benefit	2.80%	2.40%	1.90%
U.S. manufacturing credit			(1.40%)
Research tax credits	(0.40%)	(0.50%)	(0.30%)
Excess tax benefit on stock compensation	(0.50%)	(0.40%)	(2.20%)
Other	(0.40%)	(0.90%)	0.80%
Effective Income Tax Rate Continuing Operations Excluding Change in Tax Rate, Total	21.60%	20.40%	27.40%
U.S. Tax Cuts & Jobs Act (U.S. Tax Reform)			15.70%
Effective Income Tax Rate Reconciliation, Percent, Total	21.60%	20.40%	43.10%
State Administration of Taxation, China
Income Taxes
International income tax rate differential	(1.30%)	(2.30%)	(6.50%)
Other
Income Taxes
International income tax rate differential	0.40%	1.10%	0.10%

Components of Earning Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule of Income Before Income Tax [Line Items]
U.S.	$ 400.3	$ 376.0	$ 329.9
International	71.8	181.8	190.9
Earnings before provision for income taxes	$ 472.1	$ 557.8	$ 520.8

Tax Effects of Temporary Differences of Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Component Of Net Income Tax Assets And Liabilities [Line Items]
Employee benefits, Assets	$ 27.3	$ 32.5
Product liability and warranties, Assets	39.7	42.5
Inventories, Assets
Accounts receivable, Assets	16.3	18.3
Property, plant and equipment, Assets
Intangibles, Assets
Environmental, Assets	1.9	2.1
Undistributed foreign earnings, Assets
Tax loss and credit carryovers, Assets	15.2	17.5
All other, Assets	7.7	4.0
Valuation allowance, Assets	(11.9)	(13.1)
Assets	96.2	103.8
Employee benefits, Liabilities
Product liability and warranties, Liabilities
Inventories, Liabilities	0.3	0.6
Accounts receivable, Liabilities
Property, plant and equipment, Liabilities	34.9	36.3
Intangibles, Liabilities	61.3	57.3
Environmental, Liabilities
Undistributed foreign earnings, Liabilities	20.8	28.9
Tax loss and credit carryovers, Liabilities
All other, Liabilities
Valuation allowance, Liabilities
All other, Liabilities	117.3	123.1
Net liability	$ 21.1	$ 19.3

Reconciliation of Tax Loss Carryovers, Credit Carryovers and Valuation Allowances (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Net Operating Losses and Tax Credits, Beginning balance	$ 17.5	$ 19.8
Net Operating Losses and Tax Credits, Reductions	(2.3)	(2.3)
Net Operating Losses and Tax Credits, Ending balance	15.2	17.5	$ 19.8
Balance at Beginning of Year	13.1
Balance at End of Year	11.9	13.1
Valuation Allowance For Deferred Tax Assets
Income Taxes
Balance at Beginning of Year	13.1	15.0
Valuation Allowances, Reductions	(1.2)	(1.9)	0.0
Balance at End of Year	$ 11.9	$ 13.1	$ 15.0

Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Balance at January 1	$ 8.3	$ 6.2
Additions for tax positions of prior years	1.4	2.1
Balance at December 31	$ 9.7	$ 8.3

Commitment and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies [Line Items]
Product liability insurance for individual losses in excess of accrual amount	$ 125,000,000	$ 125,000,000
Amounts in excess to be covered by third party insurance	7,500,000	7,500,000
Distributor Rebate Accruals	14,100,000	25,100,000
Repurchase Of Inventory [Member]
Commitments and Contingencies [Line Items]
Default In outstanding loans	$ 23,100,000	$ 75,800,000

Schedule of Segment Earnings (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Earnings before provision for income taxes

$ 750.9

$ 728.2

$ 765.4

$ 748.2

$ 812.5

$ 754.1

$ 833.3

$ 788.0

$ 2,992.7

$ 3,187.9

$ 2,996.7

Segment earnings

529.1

613.4

577.9

Other income (expense)

18.0

21.2

21.3

Interest expense

(11.0)

(8.4)

(10.1)

472.1

557.8

520.8

Provision for income taxes

^[1]

(102.1)

(113.6)

(224.3)

Net earnings

$ 91.3

$ 87.3

$ 102.1

$ 89.3

$ 126.3

$ 104.6

$ 114.5

$ 98.8

370.0

444.2

296.5

Inter-segment

(26.6)

(30.4)

(24.4)

Corporate

North America | Operating Segments

Other income (expense)

(46.0)

(47.2)

(47.0)

Rest of World | Operating Segments

^[2]

2,083.5

2,044.7

1,904.8

Segment earnings

^[2]

488.9

464.1

428.6