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Income Statement

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions 12 Months Ended
Year t Year t-1 Year t-2 % of year t % of year t-1 % of year t-2
Income Statement
Net Sales $ 3,493.1 $ 3,394.8 $ 3,297.6 100.00% 100.00% 100.00%
Cost of sales 1,902.5 1,883 1,844.7 54.46% 55.47% 55.94%
Gross Profit 1,590.6 1,511.8 1,452.9 45.54% 44.53% 44.06%
Marketing expenses 427.2 417.5 416.9 12.23% 12.30% 12.64%
Selling, general and administrative expenses 439.2 420.1 394.8 12.57% 12.37% 11.97%
Income from Operations 724.2 674.2 641.2 20.73% 19.86% 19.44%
Equity in earnings (losses) of affiliates 9.2 (5.8) 11.6 0.26% -0.17% 0.35%
Investment earnings 1.7 1.5 2.3 0.05% 0.04% 0.07%
Other income (expense), net (1.5) (4) (2.8) -0.04% -0.12% -0.08%
Interest expense (27.7) (30.5) (27.4) -0.79% -0.90% -0.83%
Income before Income Taxes 705.9 635.4 624.9 20.21% 18.72% 18.95%
Income taxes 246.9 225 211 7.07% 6.63% 6.40%
Net Income $ 459 $ 410.4 $ 413.9 13.14% 12.09% 12.55%
Weighted average shares outstanding - Basic 257.6 262.2 270.2 7.37% 7.72% 8.19%
Weighted average shares outstanding - Diluted 262.1 267.2 275 7.50% 7.87% 8.34%
Net income per share - Basic $ 1.78 $ 1.57 [1],[2] $ 1.53 0.05% 0.05% 0.05%
Net income per share - Diluted 1.75 1.54 [1],[2] 1.51 0.05% 0.05% 0.05%
Cash dividends per share $ 0.71 $ 0.67 $ 0.62 0.02% 0.02% 0.02%
[1] The second quarter Income from Operations includes an $8.9 pre-tax charge or $0.03 per share to terminate an international defined benefit pension plan.
[2] The second quarter Net Income includes a $17.0 or $0.06 per share impairment charge.
Beacon Roofing Supply, INC.
Consolidataed Balance Sheets
(In thousands, except share and per share amount )
2017 2016 2015 % of 2017 % of 2016 % of 2015
Net sales 4,376,670 4,127,109 2,515,169 100.00% 100.00% 100.00%
Cost of products sold 3,300,731 3,114,040 1,919,804 75.42% 75.45% 76.33%
Gross profit 1,075,939 1,013,069 595,365 24.58% 24.55% 23.67%
Operating expense 859,843 808,085 478,284 19.65% 19.58% 19.02%
Income from operations 216,096 204,984 117,081 4.94% 4.97% 4.65%
Interest expense, financing costs, and other 52,751 58,452 11,037 1.21% 1.42% 0.44%
Income before provision for income taxes 163,345 146,532 106,044 3.73% 3.55% 4.22%
Provision for income taxes 62,481 56,615 43,767 1.43% 1.37% 1.74%
Net income 100,864 89,917 62,277 2.30% 2.18% 2.48%
Weighted-average common stock outstanding:
Basic 60,315,648 59,424,372 49,578,130 1378.12% 1439.85% 1971.16%
Diluted 61,344,263 60,418,067 50,173,478 1401.62% 1463.93% 1994.84%
Net income per share
Basic 1.67 1.51 1.26 0.00% 0.00% 0.00%
Diluted 1.64 1.49 1.24 0.00% 0.00% 0.00%
Other comprehensive income (loss):
Foreign currency translation adjustment 3,706 1,024 (14,003) 0.08% 0.02% -0.56%
Unrealized loss due to change in fair value of derivatives, net of tax (138) 0.00% 0.00% -0.01%
Total other comprehensive income (loss) 3,706 1,024 (14,141) 0.08% 0.02% -0.56%
Comprehensive income 104,570 90,941 48,136 2.39% 2.20% 1.91%

Balance Sheet

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions Year t Year t-1 Year t-2 % of year t % of year t-1 % of year t-2
Current Assets
Cash and cash equivalents $ 187.8 $ 330 $423 4.31% 7.75% 9.70%
Accounts receivable, less allowances of $2.1, $1.0 and $1.9 respectively 287 276.2 322.9 6.59% 6.49% 7.41%
Inventories 258.2 274 245.9 5.93% 6.44% 5.64%
Other current assets 23.8 25.8 26.3 0.55% 0.61% 0.60%
Total Current Assets 756.8 906 1,018.10 17.38% 21.28% 23.36%
Property, Plant and Equipment, Net 588.6 609.6 616.2 13.52% 14.32% 14.14%
Equity Investment in Affiliates 8.5 8.4 24.8 0.20% 0.20% 0.57%
Trade Names and Other Intangibles, Net 1,431.8 1,269.5 1,272.40 32.88% 29.82% 29.19%
Goodwill 1,444.1 1,354.9 1,325 33.17% 31.83% 30.40%
Other Assets 124.3 108.5 102.7 2.85% 2.55% 2.36%
Total Assets 4,354.1 4,256.9 4,359.20 100.00% 100.00% 100.00%
Current Liabilities
Short-term borrowings 426.8 357.2 146.7 9.80% 8.39% 3.37%
Current portion of long-term debt 0.0 0.0 249.9 0.00% 0.00% 5.73%
Accounts payable and accrued expenses 568.9 508.3 507.7 13.07% 11.94% 11.65%
Income taxes payable 6.2 7.2 1 0.14% 0.17% 0.02%
Total Current Liabilities 1,001.9 872.7 905.3 23.01% 20.50% 20.77%
Long-term Debt 693.4 692.8 690 15.93% 16.27% 15.83%
Deferred Income Taxes 512.2 484.8 470.6 11.76% 11.39% 10.80%
Deferred and Other Long-term Liabilities 168.7 183.4 191.4 3.87% 4.31% 4.39%
Total Liabilities 2,376.2 2,233.7 2,257.30 54.57% 52.47% 51.78%
Commitments and Contingencies   
Stockholders' Equity
Preferred Stock, $1.00 par value, Authorized 2,500,000 shares; none issued 0 0 0 0.00% 0.00% 0.00%
Common Stock, $1.00 par value, Authorized 300,000,000 shares; 292,855,100 shares issued in Year t and Year t-1, 146,427,550 in Year t-2 292.8 292.8 146.4 6.72% 6.88% 3.36%
Additional paid-in capital 251.4 230 364.8 5.77% 5.40% 8.37%
Retained earnings 2,926 2,650 2,414.90 67.20% 62.25% 55.40%
Accumulated other comprehensive loss (63.8) (45.9) (34.70) -1.47% -1.08% -0.80%
Common stock in treasury, at cost: 38,892,165 shares in Year t and 32,947,012 shares in Year t-1, 13,075,944 shares in Year t-2 (1,428.5) (1,103.7) (789.50) -32.81% -25.93% -18.11%
Total Stockholders' Equity 1,977.9 2,023.2 2,101.90 45.43% 47.53% 48.22%
Total Liabilities and Stockholders’ Equity $ 4,354.1 $ 4,256.9 $4,359.20 100.00% 100.00% 100.00%
Beacon Roofing Supply, INC.
Consolidataed Balance Sheets
(In thousands, except share and per share amount )
2017 2016 2015 % of 2017 % of 2016 % of 2015
Assets
Current assets:
Cash and cash equivalents 138,250 31,386 45,661 4.01% 1.01% 2.97%
Accounts receivable 704,527 626,965 399,732 20.42% 20.13% 25.97%
Inventories, net 551,924 480,736 320,999 16.00% 15.44% 20.85%
Prepaid expenses and other current assets 209,138 163,103 97,928 6.06% 5.24% 6.36%
Total current assets 1,603,839 1,302,190 864,320 46.49% 41.82% 56.15%
Property and equipment, net 156,129 148,569 90,405 4.53% 4.77% 5.87%
Good will 1,251,986 1,197,565 496,415 36.29% 38.46% 32.25%
Intangibles, net 429,069 464,024 87,055 12.44% 14.90% 5.66%
Other assets, net 8,534 1,511 1,233 0.25% 0.05% 0.08%
Total assets 3,449,557 3,113,859 1,539,428 100.00% 100.00% 100.00%
Liabilities and stockholders' equity
Current liabilities:
Accounts payable 503,697 360,915 244,891 14.60% 11.59% 15.91%
Accrued expenses 261,297 161,113 124,794 7.57% 5.17% 8.11%
Borrowings under revolving lines of credit 11,240 0.00% 0.00% 0.73%
Current portions of long-term debt 14,141 14,811 16,320 0.41% 0.48% 1.06%
Total current liabilities 779,135 536,839 397,245 22.59% 17.24% 25.80%
Borrowings under revolving lines of credit, net 3,205 359,661 0.09% 11.55% 0.00%
Long-term debt, net 721,268 722,929 170,200 20.91% 23.22% 11.06%
Deferred income taxes, net 138,383 135,482 66,500 4.01% 4.35% 4.32%
Long-term obligation under equipment financing and other, net 25,760 35,121 22,367 0.75% 1.13% 1.45%
Total liabilities 1,667,751 1,790,032 656,312 48.35% 57.49% 42.63%
Commitments and contingencies
Stockerholders' equity
Common stock (voting); $0.1 par value; 100,000,000 share authorized; 67,700,858 issued and outstanding as of September 30, 2017 and 59,890,885 issued and outstanding as of September 30, 2016
677 598 497 0.02% 0.02% 0.03%
Undesignated preferred stock; 5,000,000 shares authorized, none issued or outstanding
Additional paid-in capital 1,047,506 694,564 345,934 30.37% 22.31% 22.47%
Retained earnings 748,186 647,322 557,405 21.69% 20.79% 36.21%
Accumulated other comprehensive loss (14,563) (18,657) (20,720) -0.42% -0.60% -1.35%
Total stockholders' equity 1,781,806 1,323,827 883,116 51.65% 42.51% 57.37%
Total liabilities and stockholders' equity 3,449,557 3,113,859 1,539,428 100.00% 100.00% 100.00%

Cash Flow Statement

CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Millions 12 Months Ended
Year t Year t-1 Year t-2 % of year t % of year t-1 % of year t-2
Cash Flow From Operating Activities
Net Income $ 459 $ 410.4 $ 413.9 13.14% 12.09% 12.55%
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense 59.7 58.3 57.1 1.71% 1.72% 1.73%
Amortization expense 47.9 42.7 34.1 1.37% 1.26% 1.03%
Deferred income taxes 24.9 24 12.7 0.71% 0.71% 0.39%
Equity in net earnings of affiliates (9.2) (11.6) (11.6) -0.26% -0.34% -0.35%
Distributions from unconsolidated affiliates 9 12 12.5 0.26% 0.35% 0.38%
Non-cash pension settlement charge 0 8.4 0 0.00% 0.25% 0.00%
Non-cash compensation expense 16 16.1 17 0.46% 0.47% 0.52%
Asset impairment charge and other asset write-offs 5.6 19.2 6.4 0.16% 0.57% 0.19%
Other (1.8) 5.7 3.2 -0.05% 0.17% 0.10%
Change in assets and liabilities:
Accounts receivable (12.7) 33.5 (1.8) -0.36% 0.99% -0.05%
Inventories 19.2 (38.5) 1.8 0.55% -1.13% 0.05%
Other current assets 2.1 (2) (0.6) 0.06% -0.06% -0.02%
Accounts payable and accrued expenses 50.5 21.8 2.4 1.45% 0.64% 0.07%
Income taxes payable 32.8 29.7 17.5 0.94% 0.87% 0.53%
Excess tax benefit on stock options exercised (30) (15.8) (18.5) -0.86% -0.47% -0.56%
Other operating assets and liabilities, net (17.7) (7.8) (5.8) -0.51% -0.23% -0.18%
Net Cash Provided By Operating Activities 655.3 606.1 540.3 18.76% 17.85% 16.38%
Cash Flow From Investing Activities
Additions to property, plant and equipment (49.8) (61.8) (70.5) -1.43% -1.82% -2.14%
Acquisitions (305.3) (74.9) (215.7) -8.74% -2.21% -6.54%
Other 0.5 (4.5) (2.2) 0.01% -0.13% -0.07%
Net Cash Used In Investing Activities (354.6) (141.2) (288.4) -10.15% -4.16% -8.75%
Cash Flow From Financing Activities
Long-term debt borrowings 0 0 299.8 0.00% 0.00% 9.09%
Long-term debt repayments 0 (250) 0 0.00% -7.36% 0.00%
Short-term debt borrowings (repayments) 68.9 211.7 (6.7) 1.97% 6.24% -0.20%
Proceeds from stock options exercised 50.5 28.5 32.7 1.45% 0.84% 0.99%
Excess tax benefit on stock options exercised 30 15.8 18.5 0.86% 0.47% 0.56%
Payment of cash dividends (183) (175.3) (167.5) -5.24% -5.16% -5.08%
Purchase of treasury stock (400) (363.1) (478.8) -11.45% -10.70% -14.52%
Deferred financing costs 0 (1.4) (4.2) 0.00% -0.04% -0.13%
Other (6) (1.2) (0.4) -0.17% -0.04% -0.01%
Net Cash Used In Financing Activities (439.6) (535) (306.6) -12.58% -15.76% -9.30%
Effect of exchange rate changes on cash and cash equivalents (3.3) (22.9) (19.2) -0.09% -0.67% -0.58%
Net Change In Cash and Cash Equivalents (142.2) (93) (73.9) -4.07% -2.74% -2.24%
Cash and Cash Equivalents at Beginning of Period 330 423 496.9 9.45% 12.46% 15.07%
Cash and Cash Equivalents at End of Period 187.8 330 423 5.38% 9.72% 12.83%
Cash paid during the year for:
Interest (net of amounts capitalized) 25.6 29 25.7 0.73% 0.85% 0.78%
Income taxes 188.4 174.8 181.5 5.39% 5.15% 5.50%
Supplemental disclosure of non-cash investing activities:
Property, plant and equipment expenditures included in Accounts Payable $ 3.4 $ 5.3 $ 14.5 0.10% 0.16% 0.44%
Net Sales $ 3,493.1 $ 3,394.8 $ 3,297.6
Beacon Roofing Supply, INC.
Consolidataed Balance Sheets
(In thousands, except share and per share amount )
2017 2016 2015 % of 2017 % of 2016 % of 2015
Operating Activities
Net Income 100,864 89,917 62,277 2.30% 2.18% 2.48%
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense 116,467 100,191 34,862 2.66% 2.43% 1.39%
Stock-based compensation 15,071 17,749 9,936 0.34% 0.43% 0.40%
Certain interest expense and other financing costs 10,497 8,329 (1,450) 0.24% 0.20% -0.06%
Gain on sale of fixed assets (839) (1,882) (1,107) -0.02% -0.05% -0.04%
Deferred income taxes 393 25,200 17,634 0.01% 0.61% 0.70%
Other, net 263 0.00% 0.00% 0.01%
Changes in operating assets and liabilities, net of the effects of businesses aquired
Accounts receivable (60,185) (30,408) (33,251) -1.38% -0.74% -1.32%
Inventories (51,768) 43,489 (9,203) -1.18% 1.05% -0.37%
Prepaid expenses and other assets (44,208) (12,841) (17,119) -1.01% -0.31% -0.68%
Accounts payable and accrued expenses 228,908 (119,096) 46,498 5.23% -2.89% 1.85%
Net cash provided by operating activities 315,200 120,648 109,340 7.20% 2.92% 4.35%
Investing activities
Purchases of property and equipment (39,828) (26,315) (20,802) -0.91% -0.64% -0.83%
Acquisition of businesses, net (129,390) (1,018,188) (85,301) -2.96% -24.67% -3.39%
Proceeds from the sale of assets 2,233 1,882 1,389 0.05% 0.05% 0.06%
Net cash used in investing activities (166,985) (1,042,621) (104,714) -3.82% -25.26% -4.16%
Financing activities
Borrowings under revolving lines of credit 2,464,128 1,892,459 560,634 56.30% 45.85% 22.29%
Repayments under revolving lines of credit (2,833,230) (1,541,532) (566,007) -64.73% -37.35% -22.50%
Borrowings under term loan 490,793 0.00% 11.89% 0.00%
Repayments under term loan (4,500) (230,918) (11,250) -0.10% -5.60% -0.45%
Borrowings under Senior Notes 300,000 0.00% 7.27% 0.00%
Repayments under equipment financing facilities and other (10,034) (4,724) (5,553) -0.23% -0.11% -0.22%
Payment of debt issuance costs (1,669) (28,325) -0.04% -0.69% 0.00%
Proceeds from secondary offering of common stock 345,503 7.89% 0.00% 0.00%
Payment of issuance costs from secondary offering of common stock (14,684) -0.34% 0.00% 0.00%
Proceeds from issuance of common stock related to equity awards 11,341 24,160 7,943 0.26% 0.59% 0.32%
Taxes paid related to net share settlement of equity awards (392) (2) -0.01% -0.00% 0.00%
Excess tax benefit from stock-based compensation 2,937 4,956 1,526 0.07% 0.12% 0.06%
Net cash provided by (used in) financing activities (40,600) (906,867) (12,707) -0.93% -21.97% -0.51%
Effect of exchange rate changes on cash and cash equivalents (751) 831 (730) -0.02% 0.02% -0.03%
Net increase (decrease in cash and cash equivalents 106,864 (14,275) (8,811) 2.44% -0.35% -0.35%
Cash and cash equivalents, beginning of period 31,386 45,661 54,472 0.72% 1.11% 2.17%
Cash and cash equivalents, end of period 138,250 31,386 45,661 3.16% 0.76% 1.82%
Supplemental cash flow information
Cash paid during the period for
Interest 49,067 57,934 8,276 1.12% 1.40% 0.33%
Income taxes, net of tax refunds 56,158 14,425 23,198 1.28% 0.35% 0.92%
Net sales 4,376,670 4,127,109 2,515,169

ratios

Before adjustment After adjustment
Compared firm BRS Compared firm BRS
t t-1 t-2 2017 2016 2015 t t-1 t-2 2017 2016 2015
Gross profit 45.54% 44.53% 44.06% 24.58% 24.55% 23.67%
Net profit margin 13.14% 12.09% 12.55% 2.30% 2.18% 2.48%
ROA 10.54% 9.64% 9.49% 2.92% 2.89% 4.05%
ROE 23.21% 20.28% 19.69% 5.66% 6.79% 7.05%

Notes

Inventories
Inventories Inventories are valued at the lower of cost or market. Approximately 20%, 19% and 19% of the inventory at December 31, Year t, Year t - 1 and Year t-2, respectively was determined utilizing the last-in, first-out (“LIFO”) method. The cost of the remaining inventory was determined using the first-in, first-out (“FIFO”) method. The Company identifies any slow moving, obsolete or excess inventory to determine whether an adjustment is required to establish a new carrying value. The determination of whether inventory items are slow moving, obsolete or in excess of needs requires estimates and assumptions about the future demand for the Company’s products, technological changes, and new product introductions. Estimates as to the future demand used in the valuation of inventory involve judgments regarding the ongoing success of the Company’s products. The Company evaluates its inventory levels and expected usage on a periodic basis and records adjustments as required. Adjustments to reflect inventory at net realizable value were $10.5 at December 31, Year t, and $12.6 at December 31, Year t-1 and 8.3 at December 31, year t - 2.
*The amount of LIFO liquidation in all three years was immaterial Components of Inventories (Details) - USD ($) $ in Millions Year t Year t-1 Year t-2
Inventory, Finished Goods and Work in Process, Net of Reserves
Raw materials and supplies $ 69.8 $ 84.6 $70.80
Work in process 28.8 33.1 25
Finished goods 159.6 156.3 150.1
Total $ 258.2 $ 274 245.9
Inventories - Additional Information (Details) - USD ($) $ in Millions Year t Year t-1 Year t-2
Inventory Disclosure
Inventories valued using LIFO $ 51.8 $ 53.2 $49.30
Excess of FIFO over LIFO amount $ 4.2 $ 3.8 $4.30
Property, Plant and Equipment
Property, Plant and Equipment Property, Plant and Equipment (“PP&E”) are stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives for building and improvements, machinery and equipment, and office equipment range from 9-40, 3-20 and 3-10 years, respectively. Routine repairs and maintenance are expensed when incurred. Leasehold improvements are depreciated over a period no longer than the respective lease term, except where a lease renewal has been determined to be reasonably assured and failure to renew the lease results in a significant penalty to the Company. PP&E are reviewed annually and whenever events or changes in circumstances indicate that possible impairment exists. The Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of Company assets and liabilities. The analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates. The Company conducts annual reviews to identify idle and underutilized equipment, and reviews business plans for possible impairment. Impairment occurs when the carrying value of the asset exceeds the future undiscounted cash flows. When an impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset and an impairment charge is recorded for the difference between the carrying value and the net present value of estimated future cash flows.
Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions Year t Year t-1 Year t-2
Property, Plant and Equipment [Line Items]
Gross PP&E $ 1,165.3 $ 1,145 1,121.60
Less accumulated depreciation and amortization 576.7 535.4 505.4
Net PP&E 588.6 609.6 616.2
Land
Gross PP&E 25.1 25.2 25.5
Building and Building Improvements
Gross PP&E 284.7 277.3 281.7
Machinery and Equipment
Gross PP&E 680.1 665.2 599.3
Software
Gross PP&E 90.4 84.9 86.4
Office equipment and other assets
Gross PP&E 60.8 59.2 57.2
Construction in progress
Gross PP&E $ 24.2 $ 33.2 71.5
Depreciation/Amortization Useful Lives Minimum Maximum
Finite-Lived Intangible Assets 3 years 20 years
Building and building improvements 9 years 40 years
Machinery and Equipment 3 years 20 years
Office Equipment 3 years 10 years
Depreciation and Interest Charges on Property, Plant and Equipment (Details) - USD ($) $ in Millions 12 Months Ended
Year t Year t-1 Year t-2
Property Plant And Equipment
Depreciation and amortization on PP&E $ 59.7 $ 58.3 $ 57.1
Interest charges capitalized (in construction in progress) $ 0.0 $ 0.0 $ 0.7
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] Year t Year t-1 Year t-2
Impairment charge of intangible asset $ 5.6 $ 19.2 $ 6.4
Amortization expense of intangible assets 46 $ 39.9 31.7
Amortizable Intangible Assets (Details) - USD ($) $ in Millions 12 Months Ended
Year t Year t-1 Year t-2
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 897.5 $ 691.1 $ 652.6
Accumulated Amortization (326.2) (281.6) $ (244.8)
Net $ 571.3 409.5 $ 407.8
Software Software The Company capitalizes certain costs of developing computer software. Amortization is recorded using the straight‑line method over the estimated useful life of the software, which is estimated to be no longer than 10 years.
Debt Summary of Short-Term Borrowings and Long-Term Debt (Details) - USD ($) $ in Millions Year t Year t-1 Year t-2
Short-term borrowings
Commercial paper issuances $ 420 $ 354.5 143.3
Various debt due to international banks 6.8 2.7 3.4
Total short-term borrowings 426.8 357.2 146.7
Long-term debt
Debt issuance costs, net (6.5) (8.1) (8.6)
Fair value adjustment related to hedged fixed rate debt instrument 0.2 1.3 (0.9)
Net long-term debt 693.4 692.8 690
Long-term debt
2.875% Senior notes due October 1, 2022 400 400 400
Less: Discount (0.2) (0.3) (0.3)
Long-term debt
2.45% Senior notes due December 15, 2019 300 300 300
Less: Discount $ (0.1) $ (0.1) $ (0.2)
Long term debt with current maturity
3.35% Senior Notes 0 0 250
Less: Discount 0 0 (0.1)
Taxes Components of Income Before Taxes (Details) - USD ($) $ in Millions 12 Months Ended
Year t Year t-1 Year t-2
Income Tax Disclosure [Abstract]
Domestic $ 665 $ 595.6 $ 574.1
Foreign 40.9 39.8 50.8
Income before Income Taxes $ 705.9 $ 635.4 $ 624.9
Schedule of U.S. Federal, State and Foreign Income Taxes (Details) - USD ($) $ in Millions 12 Months Ended
Year t Year t-1 Year t-2
Income Tax Disclosure [Abstract]
U.S. federal $ 183.4 $ 161.4 $ 159
State, Current 27.2 25.5 24.4
Foreign, Current 11.4 14.1 14.9
Current income tax expense (benefit) 222 201 198.3
U.S. federal, Deferred 19.2 22.8 11.5
State, Deferred 4.1 3.3 1.1
Foreign, Deferred 1.6 (2.1) 0.1
Deferred income tax expense (benefit) 24.9 24 12.7
Recorded tax expense $ 246.9 $ 225 $ 211
Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions Year t Year t-1 Year t-2
Income Tax Disclosure [Abstract]
Accounts receivable $ 4.8 $ 4.6 $ 4.6
Deferred compensation 69.7 67.9 63.6
Pension, postretirement and postemployment benefits 7.7 8.7 9.9
Investment in other firm 7.7 7.7 1.2
Other 30.8 24.4 26
Tax credit carryforwards/other tax attributes 12.8 14.4 1.9
International operating loss carryforwards 8 6.2 8
Total gross deferred tax assets 141.5 133.9 115.2
Valuation allowances (20.2) (16.3) (12)
Total deferred tax assets 121.3 117.6 103.2
Goodwill (212.3) (193.5) (174.7)
Trade names and other intangibles (322.9) (312.4) (300.6)
Property, plant and equipment (97.1) (95.6) (97.5)
Total deferred tax liabilities (632.3) (601.5) (572.8)
Net deferred tax liability (511) (483.9) (469.6)
Long term net deferred tax asset 1.2 0.9 1
Long term net deferred tax liability $ (512.2) $ (484.8) $ (470.6)
Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions 12 Months Ended
Year t Year t-1 Year t-2
Income Tax Disclosure [Abstract]
Statutory rate 35.00% 35.00% 35.00%
Tax that would result from use of the federal statutory rate $ 247.1 $ 222.4 $ 218.7
State and local income tax, net of federal effect 20.3 18.7 16.5
Varying tax rates of foreign affiliates (4.1) (2.6) (3.6)
Benefit from domestic manufacturing deduction (14.2) (14.4) (14.3)
Resolution of tax contingencies 0 0 (1.5)
Valuation Allowances 2.9 8.5 0.9
Other (5.1) (7.6) (5.7)
Recorded tax expense $ 246.9 $ 225 $ 211
Effective tax rate 35.00% 35.40% 33.80%
Leases Future Minimum Rental Commitments Under Non-Cancelable Long-Term Operating Leases And Capital Lease (Details) $ in Millions
Operating lease
Year t + 1 $ 18.6
t + 2 16.9
t + 3 14.3
t + 4 10.8
t + 5 7.6
Year t + 6 and thereafter 13.4
Total future minimum lease commitments 81.6
Financing leases
Year t + 1 5.7
t + 2 6
t + 3 6
t + 4 6
t + 5 6
Year t + 6 and thereafter 67.3
Total future minimum lease commitments 97
Total
Year t + 1 24.3
t + 2 22.9
t + 3 20.3
t + 4 16.8
t + 5 13.6
Year t + 6 and thereafter 80.7
Total future minimum lease commitments $ 178.6
Allowance for Doubtful Accounts Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions 12 Months Ended
Year t Year t-1 Year t-2
Allowance for Doubtful Accounts
Beginning Balance $ 1 $ 1.9 $ 0.8
Additions, Charged to Expenses 1.3 0.3 1.5
Additions, Acquired 0 0 0
Deductions, Amounts Written Off (0.3) (1) (0.2)
Foreign Exchange 0.1 (0.2) (0.2)
Ending Balance 2.1 1 1.9
Sales Returns Sales Returns and Allowances
Beginning Balance 11.9 11.9 11.6
Additions, Charged to Expenses 56.7 67.4 58.6
Additions, Acquired 0 0 0
Deductions, Amounts Written Off (56.8) (67.4) (58.1)
Foreign Exchange 0.3 0 (0.2)
Ending Balance $ 12.1 $ 11.9 $ 11.9