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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net earnings	$ 147.6	$ 126.9
Other comprehensive earnings (loss)
Foreign currency translation adjustments	(4.8)	2.5
Unrealized gains (losses) on cash flow derivative instruments, less related income tax (provision) benefit of $(0.3) in 2024, and $0.0 in 2023	1.0	(0.1)
Adjustment to pension liability, less related income tax provision of $0.0 in 2024, and $0.0 in 2023	0.1	0.0
Comprehensive Earnings	$ 143.9	$ 129.3

- Definition

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

+ References

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+ Details

Debt	3 Months Ended
Debt	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt In 2021, the Company renewed and amended its $500 million multi-year multi-currency revolving credit agreement with a new expiration date of April 1, 2026. The facility has an accordion provision that allows it to be increased up to $850 million if certain conditions (including lender approval) are satisfied. Borrowings under the Company's bank credit lines and commercial paper borrowings are supported by a $500 million revolving credit agreement. As a result of the long-term nature of this facility, the Company’s commercial paper and credit line borrowings are classified as long-term debt at March 31, 2024. At its option, the Company either maintains cash balances or pays fees for bank credit and services. The facility requires the Company to maintain two financial covenants, a leverage ratio test and an interest coverage test. The Company was in compliance with the covenants as of March 31, 2024.

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2024
Income Tax Contingency [Line Items]
Effective tax rate	23.40%	25.90%
Unrecognized tax benefits	$ 17.2
Unrecognized tax benefits that would affect the effective tax rate, if recognized	$ 3.5
Disposal Group, Held-for-sale, Not Discontinued Operations
Income Tax Contingency [Line Items]
Impairment expense		$ 15.6
Forecast \| Minimum
Income Tax Contingency [Line Items]
Effective tax rate			24.00%
Forecast \| Maximum
Income Tax Contingency [Line Items]
Effective tax rate			24.50%

Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

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


Fair Value Measurement Using	Balance Sheet Location	March 31, 2024		December 31, 2023
Quoted prices in active markets for identical assets (Level 1)	Marketable Securities	$	51.5	$	23.5
Significant other observable inputs (Level 2)	Other current assets / (Accrued liabilities)	3.1		(4.1)

Items measured at fair value were comprised of the Company’s marketable securities (Level 1) and derivative instruments (Level 2). There were no changes in the Company's valuation techniques used to measure fair values on a recurring basis during the three months ended March 31, 2024.

- Definition

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

+ References + Details

Derivative Instruments - Schedule of Effect of Cash Flow Hedges on Consolidated Statement of Earnings (Details) - Foreign Exchange Contract - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative [Line Items]
Amount of gain recognized in other comprehensive loss on derivatives	$ 1.8	$ 1.7
Cost of products sold
Derivative [Line Items]
Amount of gain reclassified from accumulated other comprehensive loss into earnings	$ 0.6	$ 1.9

Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of period	$ 1,844.4
Balance at end of period	1,881.8	$ 1,790.2
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at end of period	(87.9)	(80.0)
Cumulative foreign currency translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of period	(80.3)	(84.1)
Other comprehensive gain (loss) before reclassifications	(4.8)	2.5
Balance at end of period	(85.1)	(81.6)
Unrealized net gain on cash flow derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of period	0.7	4.9
Other comprehensive gain (loss) before reclassifications	1.4	1.3
Reclassifications, net of tax	(0.4)	(1.4)
Balance at end of period	1.7	4.8
Income tax provision (benefit)	0.1	0.5
Pension liability
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of period	(4.6)	(3.2)
Reclassifications, net of tax	0.1	0.0
Balance at end of period	(4.5)	(3.2)
Actuarial losses
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification, before income tax benefit	$ 0.1	$ 0.0

Inventories (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories

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


(dollars in millions)	March 31, 2024		December 31, 2023
Finished products	$	196.8	$	177.7
Work in process	44.2		44.2
Raw materials	325.6		322.6
Inventories, at FIFO cost	566.6		544.5
LIFO reserve	(44.3)		(47.1)
Inventories, at LIFO cost	$	522.3	$	497.4

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets (Liabilities) Measured at Fair Value on a Recurring Basis

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


Fair Value Measurement Using	Balance Sheet Location	March 31, 2024		December 31, 2023
Quoted prices in active markets for identical assets (Level 1)	Marketable Securities	$	51.5	$	23.5
Significant other observable inputs (Level 2)	Other current assets / (Accrued liabilities)	3.1		(4.1)

Pensions (Tables)

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

Schedule of Components of Net Pension Expense (Income)

The following table presents the components of the Company’s net pension expense:


(dollars in millions)	Three Months Ended March 31,
	2024		2023
Service cost	$	0.3	$	0.3
Interest cost	0.3		0.3
Expected return on plan assets	(0.3)		(0.3)
Amortization of unrecognized loss	0.1		—

Total pension expense	$	0.4	$	0.3

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished products	$ 196.8	$ 177.7
Work in process	44.2	44.2
Raw materials	325.6	322.6
Inventories, at FIFO cost	566.6	544.5
LIFO reserve	(44.3)	(47.1)
Inventories, at LIFO cost	$ 522.3	$ 497.4

Segment Results

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Results

The Company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. The following table presents the Company’s segment results:


(dollars in millions)	Three Months Ended March 31,
	2024		2023
Net sales
North America	$	766.3	$	752.7
Rest of World	226.9		219.1
Inter-segment	(14.4)		(5.4)
	$	978.8	$	966.4
Segment earnings
North America	$	198.7	$	188.6
Rest of World(1)	17.2		5.3
Inter-segment earnings elimination	(0.3)		—
	215.6		193.9
Corporate expense(2)	(21.9)		(18.6)
Interest expense	(1.0)		(4.0)
Earnings before income taxes	192.7		171.3
Provision for income taxes	45.1		44.4
Net earnings	$	147.6	$	126.9

Additional Information




(1) Adjustments: Rest of World
includes impairment expense of:	$	—	$	12.5
(2) Adjustments: Corporate expense


includes impairment expense of:	$	—	$	3.1

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Income tax benefit on cash flow derivative instruments	$ (0.3)	$ 0.0
Income tax provision on adjustment to pension liability	$ 0.0	$ 0.0

Product Warranties (Details) - USD ($) $ in Millions	3 Months Ended
Product Warranties (Details) - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of year	$ 188.1	$ 182.5
Expense	19.7	18.4
Claims settled	(22.8)	(19.7)
Balance at end of year	$ 185.0	$ 181.2

Derivative Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Trading Activity, Gains and Losses, Net [Line Items]
After-tax gains (losses) associated with currency translation adjustment in other comprehensive income	$ (4.8)	$ 2.5
Commodity Futures Contracts
Trading Activity, Gains and Losses, Net [Line Items]
Reclassification period for effective portion of contract, in years	1 year
Designated as Hedging Instrument \| Foreign Exchange Contract \| Other Current Assets
Trading Activity, Gains and Losses, Net [Line Items]
Fair value of derivative instruments, assets	$ 2.3		$ 0.9
Not Designated as Hedging Instrument \| Foreign Exchange Contract \| Accrued Liabilities
Trading Activity, Gains and Losses, Net [Line Items]
Fair value of derivative instruments, liability	0.3		0.8
Net Investment Hedges \| Designated as Hedging Instrument \| Foreign currency forward contracts \| Other Current Assets
Trading Activity, Gains and Losses, Net [Line Items]
Fair value of derivative instruments, assets	1.1
Net Investment Hedges \| Designated as Hedging Instrument \| Foreign currency forward contracts \| Accrued Liabilities
Trading Activity, Gains and Losses, Net [Line Items]
Fair value of derivative instruments, liability			$ 4.2
Net Investment Hedges \| Non-U.S. \| Designated as Hedging Instrument \| Foreign currency forward contracts
Trading Activity, Gains and Losses, Net [Line Items]
After-tax gains (losses) associated with currency translation adjustment in other comprehensive income	4.0	$ 0.5
Contractual amounts	$ 204.0

Earnings per Share of Common Stock

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings per Share of Common Stock

The numerator for the calculation of basic and diluted earnings per share is net earnings. The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations:


	Three Months Ended March 31,
	2024	2023
Denominator for basic earnings per share - weighted average shares	147,178,955	150,897,302
Effect of dilutive stock options and share units	1,118,526	1,003,545
Denominator for diluted earnings per share	148,297,481	151,900,847

Revenue Recognition - Narrative (Details) $ in Millions	3 Months Ended
Revenue Recognition - Narrative (Details) $ in Millions	Mar. 31, 2024 USD ($) segment distributor	Dec. 31, 2023 USD ($)
Disaggregation of Revenue [Line Items]
Customer deposits liability	$ 62.9	$ 59.7
Allowance for credit losses	$ 11.4	$ 10.1
Number of reporting segments \| segment	2
Water Heaters \| North America
Disaggregation of Revenue [Line Items]
Number of wholesale distributors (more than) \| distributor	900
Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms	90 days

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating Activities
Net earnings	$ 147.6	$ 126.9
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization	19.6	19.2
Stock based compensation expense	8.3	7.0
Deferred income taxes	2.9	0.0
Non-cash impairment	0.0	15.6
Net changes in operating assets and liabilities:
Current assets and liabilities	(73.7)	(50.6)
Noncurrent assets and liabilities	1.9	1.8
Cash Provided by Operating Activities	106.6	119.9
Investing Activities
Capital expenditures	(22.0)	(10.7)
Acquisition of business	(21.1)	0.0
Investments in marketable securities	(48.1)	(14.7)
Net proceeds from sale of marketable securities	20.0	15.6
Cash Used in Investing Activities	(71.2)	(9.8)
Financing Activities
Long-term debt repaid	(6.8)	(3.7)
Common stock repurchases	(74.5)	(53.1)
Net proceeds from stock option activity	8.0	4.7
Dividends paid	(47.3)	(45.4)
Cash Used in Financing Activities	(120.6)	(97.5)
Effect of exchange rate changes on cash and cash equivalents	(3.1)	2.4
Net (decrease) increase in cash and cash equivalents	(88.3)	15.0
Cash and cash equivalents - beginning of period	339.9	391.2
Cash and Cash Equivalents - End of Period	$ 251.6	$ 406.2

Stock Based Compensation - Schedule of Performance Stock Unit Activity (Details) - Performance Shares - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Number of Units
Beginning balance (in shares)	34,758
Granted (in shares)	28,390	24,580
Performance adjustments (in shares)	1,550
Ending balance (in shares)	64,698
Weighted-Average Grant Date Value
Beginning balance (in USD per share)	$ 67.14
Granted (in USD per share)	82.04
Performance adjustments (in USD per share)	67.14
Ending balance (in USD per share)	$ 73.68

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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 the product plus costs incurred in the process, less related distributor rebates. The Company’s reserves for estimated losses under these repurchase arrangements were immaterial as of March 31, 2024 and December 31, 2023.

Earnings per Share of Common Stock (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Weighted Average Shares Used in EPS Calculations

The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations:


	Three Months Ended March 31,
	2024	2023
Denominator for basic earnings per share - weighted average shares	147,178,955	150,897,302
Effect of dilutive stock options and share units	1,118,526	1,003,545
Denominator for diluted earnings per share	148,297,481	151,900,847

Derivative Instruments

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 all of its hedging instruments as 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 from time to time 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 majority of the amounts in accumulated other comprehensive loss for cash flow hedges are expected to be reclassified into earnings within one year. The combined fair value of the foreign currency forward contracts was an asset balance of $2.3 million as of March 31, 2024 which was recorded in Other current assets within the consolidated balance sheet. The combined fair value of the foreign currency forward contracts was an asset balance of $0.9 million as of December 31, 2023 which was recorded in Other current assets within the consolidated balance sheet.

The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts as of the dates indicated that were designated as cash flow hedges:


(dollars in millions)	March 31, 2024				December 31, 2023
	Buy		Sell		Buy		Sell

Canadian dollar	$	—	$	60.3	$	—	$	80.5
Euro	25.1		—		24.1		—
Mexican peso	16.1		—		14.2		—
Total	$	41.2	$	60.3	$	38.3	$	80.5

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 $4.0 million and $0.5 million of after-tax gains associated with hedges of net investments in non-U.S. subsidiaries in currency translation adjustment in other comprehensive loss in the three months ended March 31, 2024 and March 31, 2023, respectively. The contractual amount of the Company's foreign currency forward contracts that are designated as net investment hedges was $204.0 million as of March 31, 2024. The combined fair value of the net investment hedges was an asset balance of $1.1 million as of March 31, 2024 which was recorded in Other current assets within the consolidated balance sheet. The combined fair value of the net investment hedges was a liability balance of $(4.2) million as of December 31, 2023 which was recorded in Accrued liabilities within the consolidated balance sheet.

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

Three Months Ended March 31 (dollars in millions):


Derivatives in ASC 815 cash flow hedging relationships	Amount of gain recognized in other comprehensive loss on derivatives				Location of gain reclassified from accumulated other comprehensive loss into earnings	Amount of gain reclassified from accumulated other comprehensive loss into earnings
	2024		2023			2024		2023
Foreign currency contracts	$	1.8	$	1.7	Cost of products sold	$	0.6	$	1.9

Balance Sheet Hedges

Foreign Exchange Contracts

The Company periodically enters into foreign exchange contracts to mitigate the foreign currency volatility relative to certain intercompany loans. These foreign exchange contracts did not qualify for hedge accounting in accordance with ASC 815 and as such were marked to market through earnings. The fair value of the foreign exchange contracts was a liability balance of $(0.3) million as of March 31, 2024 which was recorded in Accrued liabilities within the consolidated balance sheet. The fair value of the foreign exchange contracts was a liability balance of $(0.8) million as of December 31, 2023 which was recorded in Accrued liabilities within the consolidated balance sheet.

The following table summarizes the contractual amounts of the Company's foreign exchange contracts that are designated as balance sheet hedges:


(dollars in millions)	March 31, 2024				December 31, 2023
	Buy		Sell		Buy		Sell
Canadian dollar	$	—	$	30.4	$	44.1	$	—
Chinese yuan	202.2		—		206.8		—
Total	$	202.2	$	30.4	$	250.9	$	—

The amounts recognized within the consolidated statements of earnings related to the Company's foreign exchange contracts are set forth below.

Three Months Ended March 31 (dollars in millions):


Derivatives not designated as hedging instruments:	Location within the consolidated statements of earnings	2024		2023
Foreign exchange contracts	Other income - net	$	4.0	$	(0.1)

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the full year. It is suggested the accompanying condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 13, 2024. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) amended Accounting Standards Codification (ASC) 740, Income Taxes (issued under Accounting Standards Update (ASU) 2023-09, “Improvements to Income Tax Disclosures”). This ASU requires added disclosures related to the tax rate reconciliation and income taxes paid and includes other amendments intended to improve effectiveness and comparability. The amendment is effective for the Company beginning with its 2025 annual disclosures with early adoption permitted and should be applied on a prospective basis. The Company is currently evaluating the impact the adoption of ASU 2023-09 will have on its annual disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.” The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for the Company beginning with its 2024 annual disclosures and interim periods beginning in 2025, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact the adoption of ASU 2023-07 will have on its annual and interim disclosures.

Stock Based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

The Company adopted the A. O. Smith Combined Incentive Compensation Plan (the Incentive Plan) effective January 1, 2007, and the Incentive Plan was reapproved by stockholders on April 15, 2020. The Incentive 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 share units at March 31, 2024 was 2,293,586. Upon stock option exercise or share unit

vesting, shares are issued from treasury stock. Total stock based compensation expense recognized in the three months ended March 31, 2024 and 2023 was $8.3 million and $7.0 million, respectively.

Stock Options

Beginning in 2023, the Company no longer grants stock options. Stock options previously granted have a three year pro rata vesting from the date of grant. Stock options were 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 expire ten years after the date of grant. The Company’s stock options are expensed ratably over the three year vesting period. Stock based compensation expense attributable to stock options in the three months ended March 31, 2024 and 2023 was $0.2 million and $0.3 million, respectively.

Changes in options, all of which relate to the Company’s Common Stock, were as follows for the three months ended March 31, 2024:


	Weighted- Avg. Per Share Exercise Price		Number of Options	Average Remaining Contractual Life	Aggregate Intrinsic Value (dollars in millions)
Outstanding at January 1, 2024	$	52.93	1,872,553

Exercised	44.72		(242,687)
Forfeited	74.27		(1,167)
Outstanding at March 31, 2024	54.14		1,628,699	6 years	$	57.5
Exercisable at March 31, 2024	52.77		1,523,932	6 years	$	55.9

Share Units

Participants in the Incentive Plan may be awarded share units. Share units vest three years after the date of grant. The Company granted 189,792 and 165,686 share units under the Incentive Plan in the three months ended March 31, 2024 and 2023, respectively.

The share units were valued at $15.6 million and $11.1 million at the date of issuance in 2024 and 2023, respectively, based on the price of the Company’s Common Stock at the date of grant. The share units are recognized as compensation expense ratably over the three-year vesting period; however, included in share unit expense in the three months ended March 31, 2024 and 2023 was expense associated with 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 attributable to share units of $7.8 million and $6.6 million was recognized in the three months ended March 31, 2024 and 2023, 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 Incentive Plan is as follows for the three months ended March 31, 2024:


	Number of Units	Weighted-Average Grant Date Value
Issued and unvested at January 1, 2024	381,189	$	63.33
Granted	189,792	82.22
Vested	(92,582)	60.78
Forfeited	(776)	68.16
Issued and unvested at March 31, 2024	477,623	71.16

Performance Stock Units

Beginning in 2023, certain executives may be awarded performance stock units under the Incentive Plan. Performance stock units vest over three years following the date of the grant. Performance stock units vest under a set of measurement criteria which are based upon achievement of certain Environmental, Social, and Governance targets. Potential payouts range from zero to 150% of the target awards and changes from target amounts are reflected as performance adjustments. The Company granted 28,390 and 24,580 performance stock units under the Incentive Plan in the three months ended March 31, 2024 and 2023, respectively.

The performance stock units were valued at $2.3 million and $1.7 million at the date of issuance in 2024 and 2023, respectively, based on the price of the Company’s Common Stock at the date of grant. The performance stock units are recognized as compensation expense ratably over the three-year vesting period. Stock based compensation expense attributable to performance stock units of $0.3 million and $0.1 million was recognized in the three months ended March 31, 2024 and 2023, respectively. Certain non-U.S.-based executives 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 performance stock unit activity under the Incentive Plan is as follows for the three months ended March 31, 2024:


	Number of Units	Weighted-Average Grant Date Value
Issued and unvested at January 1, 2024	34,758	$	67.14
Granted	28,390	82.04


Performance adjustments	1,550	67.14
Issued and unvested at March 31, 2024	64,698	73.68

Changes in Accumulated Other Comprehensive Loss by Component

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Changes in Accumulated Other Comprehensive Loss by Component

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


(dollars in millions)	Three Months Ended March 31,
	2024		2023
Cumulative foreign currency translation
Balance at beginning of period	$	(80.3)	$	(84.1)
Other comprehensive loss before reclassifications	(4.8)		2.5
Balance at end of period	(85.1)		(81.6)
Unrealized net gain on cash flow derivatives
Balance at beginning of period	0.7		4.9
Other comprehensive gain before reclassifications	1.4		1.3
Realized gains on derivatives reclassified to cost of products sold (net of income tax provision of $0.1 and $0.5 in 2024 and 2023, respectively)	(0.4)		(1.4)
Balance at end of period	1.7		4.8
Pension liability
Balance at beginning of period	(4.6)		(3.2)

Amounts reclassified from accumulated other comprehensive loss:(1)	0.1		—
Balance at end of period	(4.5)		(3.2)
Accumulated other comprehensive loss, end of period	$	(87.9)	$	(80.0)

(1) Amortization of pension items:
Actuarial losses	$	0.1	$	—	(2)



Reclassification net of income tax benefit	$	0.1	$	—

(2)These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 9 - Pensions for additional details.

Derivative Instruments - Summary of Contractual Amounts for Balance Sheet Hedges (Details) - Foreign Exchange Contract - Fair Value Hedging - Designated as Hedging Instrument - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Buy
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts	$ 202.2	$ 250.9
Sell
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts	30.4	0.0
Canadian dollar \| Buy
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts	0.0	44.1
Canadian dollar \| Sell
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts	30.4	0.0
Chinese yuan \| Buy
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts	202.2	206.8
Chinese yuan \| Sell
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts	$ 0.0	$ 0.0

Inventories

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventories

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


(dollars in millions)	March 31, 2024		December 31, 2023
Finished products	$	196.8	$	177.7
Work in process	44.2		44.2
Raw materials	325.6		322.6
Inventories, at FIFO cost	566.6		544.5
LIFO reserve	(44.3)		(47.1)
Inventories, at LIFO cost	$	522.3	$	497.4

Stock Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 31, 2023 USD ($) shares	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 8.3	$ 7.0
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 0.2	$ 0.3
Award vesting period			3 years
Award expiration period			10 years
Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Number of units granted (in shares) \| shares	189,792	165,686
Value of units share units granted	$ 15.6	$ 11.1
Share based compensation expense attributable to share units	$ 7.8	6.6
Price on date of grant (in dollars per share) \| $ / shares	$ 82.22
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 0.3	$ 0.1
Award vesting period	3 years
Number of units granted (in shares) \| shares	28,390	24,580
Value of units share units granted	$ 2.3	$ 1.7
Price on date of grant (in dollars per share) \| $ / shares	$ 82.04
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential payouts range	0
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential payouts range	1.50
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 or share units (in shares) \| shares	2,293,586

Derivative Instruments - Effect of Foreign Exchange Contracts on the Statement of Earnings (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Foreign Exchange Contract \| Other income - net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative (income) expense	$ 4.0	$ (0.1)

Revenue Recognition - Segment Sales Disaggregated by Major Product Line (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Net sales	$ 978.8	$ 966.4
Operating Segments \| North America
Disaggregation of Revenue [Line Items]
Net sales	766.3	752.7
Operating Segments \| Rest of World
Disaggregation of Revenue [Line Items]
Net sales	226.9	219.1
Operating Segments \| Rest of World \| China
Disaggregation of Revenue [Line Items]
Net sales	200.6	190.2
Operating Segments \| Rest of World \| All other Rest of World
Disaggregation of Revenue [Line Items]
Net sales	26.3	28.9
Operating Segments \| Water heaters and related parts \| North America
Disaggregation of Revenue [Line Items]
Net sales	648.3	637.3
Operating Segments \| Boilers and related parts \| North America
Disaggregation of Revenue [Line Items]
Net sales	58.7	58.4
Operating Segments \| Water treatment products and related parts \| North America
Disaggregation of Revenue [Line Items]
Net sales	59.3	57.0
Inter-segment
Disaggregation of Revenue [Line Items]
Net sales	$ (14.4)	$ (5.4)

Stock Based Compensation - Summary of Share Unit Activity Under Plan (Details) - Share Units - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Number of Units
Beginning balance (in shares)	381,189
Granted (in shares)	189,792	165,686
Vested (in shares)	(92,582)
Forfeited (in shares)	(776)
Ending balance (in shares)	477,623
Weighted-Average Grant Date Value
Beginning balance (in USD per share)	$ 63.33
Granted (in USD per share)	82.22
Vested (in USD per share)	60.78
Forfeited (in USD per share)	68.16
Ending balance (in USD per share)	$ 71.16

Product Warranties (Tables)

3 Months Ended

Mar. 31, 2024

Guarantees and Product Warranties [Abstract]

Schedule of Warranty Liability Activity

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


(dollars in millions)	Three Months Ended March 31,
	2024		2023
Balance at January 1,	$	188.1	$	182.5
Expense	19.7		18.4
Claims settled	(22.8)		(19.7)
Balance at March 31,	$	185.0	$	181.2

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net earnings	$ 147.6	$ 126.9

- Definition

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

+ References

+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective income tax rate for the three months ended March 31, 2024 was 23.4 percent. The Company estimates that its annual effective income tax rate for the full year 2024 will be approximately between 24 and 24.5 percent. The effective income tax rate for the three months ended March 31, 2023 was 25.9 percent. The change in the effective income tax rate for the three months ended March 31, 2024 compared to the effective income tax rate for the three months ended March 31, 2023 was primarily due to a $15.6 million impairment expense recorded in the prior year period with no associated tax benefit. Refer to Note 3 - Acquisition and Dispositions for additional information regarding the impairment expense. As of March 31, 2024, the Company had $17.2 million of unrecognized tax benefits of which $3.5 million would affect its effective income tax rate if recognized. The Company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company’s U.S. federal income tax returns and its U.S. state and local income tax returns are subject to audit for the years 2017-2024 and 2007-2024, respectively. The Company is subject to examinations in foreign tax jurisdictions for the years 2018-2024.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Product Warranties

3 Months Ended

Mar. 31, 2024

Guarantees and Product Warranties [Abstract]

Product Warranties

The Company offers warranties on the sales of certain of its products with terms that are consistent with the market and records an accrual for the estimated future claims. The following table presents the Company’s warranty liability activity:


(dollars in millions)	Three Months Ended March 31,
	2024		2023
Balance at January 1,	$	188.1	$	182.5
Expense	19.7		18.4
Claims settled	(22.8)		(19.7)
Balance at March 31,	$	185.0	$	181.2

Debt (Details) $ in Millions	Dec. 31, 2021 USD ($) covenant
Debt Disclosure [Abstract]
Multi-currency revolving credit agreement, maximum borrowing capacity	$ 500
Accordion feature, higher borrowing capacity option	$ 850
Number of required financial covenants \| covenant	2

Segment Results (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Results

The following table presents the Company’s segment results:


(dollars in millions)	Three Months Ended March 31,
	2024		2023
Net sales
North America	$	766.3	$	752.7
Rest of World	226.9		219.1
Inter-segment	(14.4)		(5.4)
	$	978.8	$	966.4
Segment earnings
North America	$	198.7	$	188.6
Rest of World(1)	17.2		5.3
Inter-segment earnings elimination	(0.3)		—
	215.6		193.9
Corporate expense(2)	(21.9)		(18.6)
Interest expense	(1.0)		(4.0)
Earnings before income taxes	192.7		171.3
Provision for income taxes	45.1		44.4
Net earnings	$	147.6	$	126.9

Additional Information




(1) Adjustments: Rest of World
includes impairment expense of:	$	—	$	12.5
(2) Adjustments: Corporate expense


includes impairment expense of:	$	—	$	3.1

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Stock Class A Common Stock	Common Stock Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Balance at the beginning of period at Dec. 31, 2022		$ 130.2	$ 164.7	$ 555.9	$ 2,885.0		$ (1,905.7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class A Common Stock		0.0	0.0
Issuance of share units				(10.1)
Vesting of share units				(3.1)			3.1
Stock based compensation expense				6.8
Exercise of stock options				4.7			0.2
Issuance of share based compensation				10.1
Net earnings	$ 126.9				126.9
Dividends on stock					(45.4)
Shares repurchased							(53.1)
Excise tax on repurchases of common stock							0.0
Balance at end of period at Mar. 31, 2023	1,790.2	130.2	164.7	564.3	2,966.5	$ (80.0)	(1,955.5)
Balance at the beginning of period at Dec. 31, 2023	1,844.4	130.1	164.7	578.2	3,258.1		(2,202.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class A Common Stock		0.0	0.0
Issuance of share units				(14.6)
Vesting of share units				(1.8)			1.8
Stock based compensation expense				7.7
Exercise of stock options				5.4			2.7
Issuance of share based compensation				14.6
Net earnings	147.6				147.6
Dividends on stock					(47.1)
Shares repurchased							(74.5)
Excise tax on repurchases of common stock							(0.7)
Balance at end of period at Mar. 31, 2024	$ 1,881.8	$ 130.1	$ 164.7	$ 589.5	$ 3,358.6	$ (87.9)	$ (2,273.2)

Acquisition and Dispositions	3 Months Ended
Acquisition and Dispositions	Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
Acquisition and Dispositions	Acquisition and Dispositions Acquisition During the first quarter of 2024, the Company acquired a privately-held water treatment company. The Company paid an aggregate cash purchase price of $21.1 million, net of cash acquired. The Company also agreed to make contingent payments based on the amount by which sales of products increase over the next three years. The addition of the acquired company expands the Company's water treatment footprint in North America. The acquired company is included in the North America segment. As required under ASC 805 Business Combinations, results of operations have been included in the Company’s consolidated financial statements from the date of acquisition. Dispositions During the second quarter of 2024, the Company exited its operations in Vietnam. The restructuring expense associated with the exit was recorded in the fourth quarter of 2023 and did not have a material impact on the Company's consolidated financial statements. During the second quarter of 2023, the Company sold its business in Turkey (disposal group), which was included in the Company's Rest of World segment, for an amount that approximated the carrying value of the net assets. During the first quarter of 2023, the Company determined that the disposal group met the criteria to be classified as held for sale and that the fair value of the disposal group, less cost to sell, was lower than its carrying amount. As a result, in the first quarter of 2023, the Company recorded an impairment expense of $15.6 million, of which $12.5 million was recorded in the Rest of World segment, and $3.1 million was recorded in Corporate Expense. The impairment was recorded as a net reduction of $4.5 million to the assets and liabilities and $11.1 million for the anticipated liquidation of the cumulative foreign currency translation adjustment associated with the disposal group. The remaining carrying value of the disposal group as of March 31, 2023, was $0.6 million and classified as held for sale.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2024	Dec. 31, 2023
Class A Common Stock
Common Stock, shares issued (in shares)	26,017,732	26,023,132
Common Stock
Common Stock, shares issued (in shares)	164,689,862	164,684,460

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) amended Accounting Standards Codification (ASC) 740, Income Taxes (issued under Accounting Standards Update (ASU) 2023-09, “Improvements to Income Tax Disclosures”). This ASU requires added disclosures related to the tax rate reconciliation and income taxes paid and includes other amendments intended to improve effectiveness and comparability. The amendment is effective for the Company beginning with its 2025 annual disclosures with early adoption permitted and should be applied on a prospective basis. The Company is currently evaluating the impact the adoption of ASU 2023-09 will have on its annual disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.” The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for the Company beginning with its 2024 annual disclosures and interim periods beginning in 2025, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact the adoption of ASU 2023-07 will have on its annual and interim disclosures.

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Net Sales Disaggregated by Segment and Major Product Line

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:


(dollars in millions)	Three Months Ended March 31,
	2024		2023
North America
Water heaters and related parts	$	648.3	$	637.3
Boilers and related parts	58.7		58.4
Water treatment products and related parts	59.3		57.0
Total North America	766.3		752.7
Rest of World
China	$	200.6	$	190.2
All other Rest of World	26.3		28.9
Total Rest of World	226.9		219.1
Inter-segment sales	(14.4)		(5.4)
Total Net Sales	$	978.8	$	966.4

Changes in Accumulated Other Comprehensive Loss by Component (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Changes to Accumulated Other Comprehensive Loss by Component

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


(dollars in millions)	Three Months Ended March 31,
	2024		2023
Cumulative foreign currency translation
Balance at beginning of period	$	(80.3)	$	(84.1)
Other comprehensive loss before reclassifications	(4.8)		2.5
Balance at end of period	(85.1)		(81.6)
Unrealized net gain on cash flow derivatives
Balance at beginning of period	0.7		4.9
Other comprehensive gain before reclassifications	1.4		1.3
Realized gains on derivatives reclassified to cost of products sold (net of income tax provision of $0.1 and $0.5 in 2024 and 2023, respectively)	(0.4)		(1.4)
Balance at end of period	1.7		4.8
Pension liability
Balance at beginning of period	(4.6)		(3.2)

Amounts reclassified from accumulated other comprehensive loss:(1)	0.1		—
Balance at end of period	(4.5)		(3.2)
Accumulated other comprehensive loss, end of period	$	(87.9)	$	(80.0)

(1) Amortization of pension items:
Actuarial losses	$	0.1	$	—	(2)



Reclassification net of income tax benefit	$	0.1	$	—

(2)These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 9 - Pensions for additional details.

Acquisition and Dispositions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Impaired Long-Lived Assets Held and Used [Line Items]
Aggregate cash purchase price, net of cash acquired	$ 21.1	$ 0.0
Impairment expense	0.0	15.6
Privately-Held Water Treatment Company
Impaired Long-Lived Assets Held and Used [Line Items]
Aggregate cash purchase price, net of cash acquired	$ 21.1
Contingent payment term	3 years
Disposal Group, Held-for-sale, Not Discontinued Operations
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense		15.6
Carrying value of disposal group		0.6
Impairment Recorded as Net Reduction to Assets and Liabilities \| Disposal Group, Held-for-sale, Not Discontinued Operations
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense		4.5
Impairment Recorded for Anticipated Liquidation of Cumulative Foreign Currency Translation Adjustment Recorded in Accrued Liabilities \| Disposal Group, Held-for-sale, Not Discontinued Operations
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense		11.1
Corporate
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense	$ 0.0	3.1
Corporate \| Disposal Group, Held-for-sale, Not Discontinued Operations
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense		3.1
Rest of World \| Operating Segments
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense	$ 0.0	12.5
Rest of World \| Operating Segments \| Disposal Group, Held-for-sale, Not Discontinued Operations
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense		$ 12.5

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current Assets
Cash and cash equivalents	$ 251.6	$ 339.9
Marketable securities	51.5	23.5
Receivables	584.6	596.0
Inventories	522.3	497.4
Other current assets	51.5	43.5
Total Current Assets	1,461.5	1,500.3
Property, plant and equipment	1,429.9	1,418.6
Less accumulated depreciation	(830.9)	(821.1)
Net property, plant and equipment	599.0	597.5
Goodwill	651.5	633.4
Other intangibles	333.5	336.7
Operating lease assets	35.7	37.3
Other assets	101.0	108.7
Total Assets	3,182.2	3,213.9
Current Liabilities
Trade payables	557.7	600.4
Accrued payroll and benefits	54.3	92.2
Accrued liabilities	197.1	177.4
Product warranties	64.3	65.3
Debt due within one year	10.0	10.0
Total Current Liabilities	883.4	945.3
Long-term debt	109.7	117.3
Product warranties	120.7	122.8
Long-term operating lease liabilities	26.4	27.9
Other liabilities	160.2	156.2
Total Liabilities	1,300.4	1,369.5
Stockholders’ Equity
Capital in excess of par value	589.5	578.2
Retained earnings	3,358.6	3,258.1
Accumulated other comprehensive loss	(87.9)	(84.2)
Treasury stock at cost	(2,273.2)	(2,202.5)
Total Stockholders’ Equity	1,881.8	1,844.4
Total Liabilities and Stockholders’ Equity	3,182.2	3,213.9
Class A Common Stock
Stockholders’ Equity
Common Stock, value	130.1	130.1
Common Stock
Stockholders’ Equity
Common Stock, value	$ 164.7	$ 164.7

Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Changes in Options

Changes in options, all of which relate to the Company’s Common Stock, were as follows for the three months ended March 31, 2024:


	Weighted- Avg. Per Share Exercise Price		Number of Options	Average Remaining Contractual Life	Aggregate Intrinsic Value (dollars in millions)
Outstanding at January 1, 2024	$	52.93	1,872,553

Exercised	44.72		(242,687)
Forfeited	74.27		(1,167)
Outstanding at March 31, 2024	54.14		1,628,699	6 years	$	57.5
Exercisable at March 31, 2024	52.77		1,523,932	6 years	$	55.9

Schedule of Share Unit Activity

A summary of share unit activity under the Incentive Plan is as follows for the three months ended March 31, 2024:


	Number of Units	Weighted-Average Grant Date Value
Issued and unvested at January 1, 2024	381,189	$	63.33
Granted	189,792	82.22
Vested	(92,582)	60.78
Forfeited	(776)	68.16
Issued and unvested at March 31, 2024	477,623	71.16

Schedule of Stock Unit Activity

A summary of performance stock unit activity under the Incentive Plan is as follows for the three months ended March 31, 2024:


	Number of Units	Weighted-Average Grant Date Value
Issued and unvested at January 1, 2024	34,758	$	67.14
Granted	28,390	82.04


Performance adjustments	1,550	67.14
Issued and unvested at March 31, 2024	64,698	73.68

Pensions

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

Pensions

The following table presents the components of the Company’s net pension expense:


(dollars in millions)	Three Months Ended March 31,
	2024		2023
Service cost	$	0.3	$	0.3
Interest cost	0.3		0.3
Expected return on plan assets	(0.3)		(0.3)
Amortization of unrecognized loss	0.1		—

Total pension expense	$	0.4	$	0.3

The service cost component of net periodic benefit cost is presented within cost of products sold and selling, general and administrative expenses within the condensed consolidated statements of earnings while the other components of pension expense are reflected in other (income) expense, net. The Company was not required to and did not make a contribution to its U.S. pension plan in 2023. The Company is not required to make a contribution in 2024.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Earnings per Share of Common Stock (Details) - shares	3 Months Ended
Earnings per Share of Common Stock (Details) - shares	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Denominator for basic earnings per share - weighted average shares (in shares)	147,178,955	150,897,302
Effect of dilutive stock options and share units (in shares)	1,118,526	1,003,545
Denominator for diluted earnings per share (in shares)	148,297,481	151,900,847

Revenue Recognition

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

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 the 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 $62.9 million and $59.7 million at March 31, 2024 and December 31, 2023, respectively. Customer deposit liabilities are short term in nature, recognized into revenue within one year of receipt. The Company assesses the 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. In determining the allowance for credit losses, the Company also considers various factors including the aging of customer accounts and historical write-offs. In addition, the Company monitors other risk factors including forward-looking information when establishing adequate allowances for credit losses, which reflects the current estimate of credit losses expected to be incurred over the life of the receivables. The Company’s allowance for credit losses was $11.4 million and $10.1 million at March 31, 2024 and December 31, 2023, 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, heat pump and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world.

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 channels 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's 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, 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 900 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 its 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, 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 retail and wholesale distribution channels, similar to water heaters. The Company’s water treatment products are also sold through independent water quality dealers as well as directly to consumers including through e-commerce sales channels. A portion of the Company’s sales of water treatment products in the North America segment is comprised of replacement filters.


(dollars in millions)	Three Months Ended March 31,
	2024		2023
North America
Water heaters and related parts	$	648.3	$	637.3
Boilers and related parts	58.7		58.4
Water treatment products and related parts	59.3		57.0
Total North America	766.3		752.7
Rest of World
China	$	200.6	$	190.2
All other Rest of World	26.3		28.9
Total Rest of World	226.9		219.1
Inter-segment sales	(14.4)		(5.4)
Total Net Sales	$	978.8	$	966.4

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2024	Apr. 24, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	1-475
Entity Registrant Name	A. O. Smith Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	39-0619790
Entity Address, Address Line One	11270 West Park Place
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53224-9508
City Area Code	414
Local Phone Number	359-4000
Title of 12(b) Security	Common Stock (par value $1.00 per share)
Trading Symbol	AOS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Entity Central Index Key	0000091142
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		25,886,364
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		120,783,753

Pensions - Narrative (Details) - Pension Plan - USD ($)	12 Months Ended
Pensions - Narrative (Details) - Pension Plan - USD ($)	Dec. 31, 2023	Mar. 31, 2024
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	$ 0
Expected current year employer contributions		$ 0

Segment Results (Details) $ in Millions	3 Months Ended
Segment Results (Details) $ in Millions	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)
Segment Reporting [Abstract]
Number of reporting segments \| segment	2
Segment Reporting Information [Line Items]
Net sales	$ 978.8	$ 966.4
Segment earnings	215.6	193.9
Corporate expense	1.2	4.0
Interest expense	(1.0)	(4.0)
Earnings before income taxes	192.7	171.3
Provision for income taxes	45.1	44.4
Net Earnings	147.6	126.9
Impairment expense	0.0	15.6
Inter-segment
Segment Reporting Information [Line Items]
Net sales	(14.4)	(5.4)
Segment earnings	(0.3)	0.0
Corporate
Segment Reporting Information [Line Items]
Corporate expense	(21.9)	(18.6)
Impairment expense	0.0	3.1
North America \| Operating Segments
Segment Reporting Information [Line Items]
Net sales	766.3	752.7
Segment earnings	198.7	188.6
Rest of World \| Operating Segments
Segment Reporting Information [Line Items]
Net sales	226.9	219.1
Segment earnings	17.2	5.3
Impairment expense	$ 0.0	$ 12.5

Derivative Instruments - Schedule of Summary by Currency of Foreign Currency Forward Contracts (Details) - Foreign currency forward contracts - Designated as Hedging Instrument - Cash flow hedging - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Buy
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	$ 41.2	$ 38.3
Buy \| Canadian dollar
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	0.0	0.0
Buy \| Euro
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	25.1	24.1
Buy \| Mexican peso
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	16.1	14.2
Sell
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	60.3	80.5
Sell \| Canadian dollar
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	60.3	80.5
Sell \| Euro
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	0.0	0.0
Sell \| Mexican peso
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	$ 0.0	$ 0.0

Pensions - Components of Net Pension Income (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0.3	$ 0.3
Interest cost	0.3	0.3
Expected return on plan assets	(0.3)	(0.3)
Amortization of unrecognized loss	0.1	0.0
Total pension expense	$ 0.4	$ 0.3

Stock Based Compensation - Changes in Options (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Weighted- Avg. Per Share Exercise Price
Beginning balance (in USD per share) \| $ / shares	$ 52.93
Exercised (in USD per share) \| $ / shares	44.72
Forfeited (in USD per share) \| $ / shares	74.27
Ending balance (in USD per share) \| $ / shares	$ 54.14
Number of Options
Beginning balance (in shares) \| shares	1,872,553
Exercised (in shares) \| shares	(242,687)
Forfeited (in shares) \| shares	(1,167)
Ending balance (in shares) \| shares	1,628,699
Stock option activity, additional disclosures
Outstanding, Average Remaining Contractual Life	6 years
Outstanding, Aggregate Intrinsic Value \| $	$ 57.5
Exercisable, Weighted-Avg. Per Share Exercise Price (in USD per share) \| $ / shares	$ 52.77
Exercisable, Number of Options (in shares) \| shares	1,523,932
Exercisable, Average Remaining Contractual Life	6 years
Exercisable, Aggregate Intrinsic Value \| $	$ 55.9

Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Contractual Amounts for Derivative Contracts

The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts as of the dates indicated that were designated as cash flow hedges:


(dollars in millions)	March 31, 2024				December 31, 2023
	Buy		Sell		Buy		Sell

Canadian dollar	$	—	$	60.3	$	—	$	80.5
Euro	25.1		—		24.1		—
Mexican peso	16.1		—		14.2		—
Total	$	41.2	$	60.3	$	38.3	$	80.5

The following table summarizes the contractual amounts of the Company's foreign exchange contracts that are designated as balance sheet hedges:


(dollars in millions)	March 31, 2024				December 31, 2023
	Buy		Sell		Buy		Sell
Canadian dollar	$	—	$	30.4	$	44.1	$	—
Chinese yuan	202.2		—		206.8		—
Total	$	202.2	$	30.4	$	250.9	$	—

Schedule of Effect of Derivatives on the Statement of Earnings

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

Three Months Ended March 31 (dollars in millions):


Derivatives in ASC 815 cash flow hedging relationships	Amount of gain recognized in other comprehensive loss on derivatives				Location of gain reclassified from accumulated other comprehensive loss into earnings	Amount of gain reclassified from accumulated other comprehensive loss into earnings
	2024		2023			2024		2023
Foreign currency contracts	$	1.8	$	1.7	Cost of products sold	$	0.6	$	1.9

The amounts recognized within the consolidated statements of earnings related to the Company's foreign exchange contracts are set forth below.

Three Months Ended March 31 (dollars in millions):


Derivatives not designated as hedging instruments:	Location within the consolidated statements of earnings	2024		2023
Foreign exchange contracts	Other income - net	$	4.0	$	(0.1)

Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets (liabilities) measured at fair value	$ 51.5	$ 23.5
Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets (liabilities) measured at fair value	$ 3.1	$ (4.1)

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net sales	$ 978.8	$ 966.4
Cost of products sold	594.1	592.3
Gross profit	384.7	374.1
Selling, general and administrative expenses	192.2	187.2
Impairment expense	0.0	15.6
Interest expense	1.0	4.0
Other income, net	(1.2)	(4.0)
Earnings before provision for income taxes	192.7	171.3
Provision for income taxes	45.1	44.4
Net Earnings	$ 147.6	$ 126.9
Basic Net Earnings Per Share of Common Stock (in USD per share)	$ 1.00	$ 0.84
Diluted Net Earnings Per Share of Common Stock (in USD per share)	1.00	0.84
Dividends Per Share of Common Stock (in USD per share)	$ 0.32	$ 0.30