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Operations by Segment | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Operations by Segment | Operations by Segment The Company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. The Company’s Chief Executive Officer (CEO) is the Chief Operating Decision Maker (CODM). The CODM allocates resources and makes operating decisions based on the financial information presented by the two reporting segments. The measures regularly reviewed by our CODM include segment sales, earnings, and segment margin. Segment earnings, defined by the Company as earnings before interest expense, taxes, corporate expense, and corporate research and development expenses, were used to measure the performance of the segments. Our CODM uses these financial measures to evaluate and allocate capital and company resources as critical determinants of segment performance. The accounting policies of the reportable segments are the same as those described in the “Summary of Significant Accounting Policies” outlined in Note 1 - Organization and Significant Accounting Policies.
| December 31, 2024
(dollars in millions) | North America |  | Rest of World |  | Inter-segment Elimination |  | Total Segments |  | Less: Corporate Expenses |  | Total
Sales from external customers | $ | 2,928.1 |  |  | $ | 890.0 |  |  | $ | — |  |  | $ | 3,818.1 |  |  | $ | — |  |  | $ | 3,818.1 |
Inter-segment sales | 22.0 |  |  | 28.6 |  |  | — |  |  | 50.6 |  |  | — |  |  | 50.6 |
| 2,950.1 |  |  | 918.6 |  |  | — |  |  | 3,868.7 |  |  | — |  |  | 3,868.7 |
Elimination of Inter-segment sales | (22.0) |  |  | (28.6) |  |  | — |  |  | (50.6) |  |  | — |  |  | (50.6) |
Net Sales | 2,928.1 |  |  | 890.0 |  |  | — |  |  | 3,818.1 |  |  | — |  |  | 3,818.1 |
Cost of products sold | 1,780.1 |  |  | 581.9 |  |  | — |  |  | 2,362.0 |  |  | — |  |  | 2,362.0 |
Gross Profit | 1,148.0 |  |  | 308.1 |  |  | — |  |  | 1,456.1 |  |  | — |  |  | 1,456.1 |
Inter-segment Profit | — |  |  | 0.4 |  |  | (0.4) |  |  | — |  |  | — |  |  | — |
Selling, general and administrative expenses | 433.2 |  |  | 235.0 |  |  | — |  |  | 668.2 |  |  | 71.1 |  |  | 739.3 |
Restructuring and impairment expense | 6.3 |  |  | 11.3 |  |  | — |  |  | 17.6 |  |  | — |  |  | 17.6 |
Other expense (income), net(1) | 1.0 |  |  | (2.3) |  |  | — |  |  | (1.3) |  |  | (7.2) |  |  | (8.5) |
Earnings | $ | 707.5 |  |  | $ | 64.5 |  |  | $ | (0.4) |  |  | $ | 771.6 |  |  | $ | (63.9) |  |  | $ | 707.7 |
Interest expense |  |  |  |  |  |  |  |  |  |  | (6.7) |
Earning before provision for income taxes |  |  |  |  |  |  |  |  |  |  | $ | 701.0 |
(1)Other expense (income), net consist primarily of interest income that is located within Corporate Expenses.
| December 31, 2023
(dollars in millions) | North America |  | Rest of World |  | Inter-segment Elimination |  | Total Segments |  | Less: Corporate Expenses |  | Total
Sales from external customers | $ | 2,904.3 |  |  | $ | 948.5 |  |  | $ | — |  |  | $ | 3,852.8 |  |  | $ | — |  |  | $ | 3,852.8 |
Inter-segment sales | 18.6 |  |  | 8.4 |  |  | — |  |  | 27.0 |  |  | — |  |  | 27.0 |
| 2,922.9 |  |  | 956.9 |  |  | — |  |  | 3,879.8 |  |  | — |  |  | 3,879.8 |
Elimination of Inter-segment sales | (18.6) |  |  | (8.4) |  |  | — |  |  | (27.0) |  |  | — |  |  | (27.0) |
Net Sales | 2,904.3 |  |  | 948.5 |  |  | — |  |  | 3,852.8 |  |  | — |  |  | 3,852.8 |
Cost of products sold | 1,761.1 |  |  | 607.0 |  |  | — |  |  | 2,368.1 |  |  | (0.1) |  |  | 2,368.0 |
Gross Profit | 1,143.2 |  |  | 341.5 |  |  | — |  |  | 1,484.7 |  |  | 0.1 |  |  | 1,484.8 |
Inter-segment Profit | — |  |  | 0.5 |  |  | (0.5) |  |  | — |  |  | — |  |  | — |
Selling, general and administrative expenses | 411.6 |  |  | 243.0 |  |  | — |  |  | 654.6 |  |  | 72.8 |  |  | 727.4 |
Restructuring and impairment expense | — |  |  | 15.7 |  |  | — |  |  | 15.7 |  |  | 3.1 |  |  | 18.8 |
Other expense (income), net(2) | 4.9 |  |  | (0.1) |  |  | — |  |  | 4.8 |  |  | (11.7) |  |  | (6.9) |
Earnings | $ | 726.7 |  |  | $ | 83.4 |  |  | $ | (0.5) |  |  | $ | 809.6 |  |  | $ | (64.1) |  |  | $ | 745.5 |
Interest expense |  |  |  |  |  |  |  |  |  |  | (12.0) |
Earnings before provision for income taxes |  |  |  |  |  |  |  |  |  |  | $ | 733.5 |
(2)Other expense (income), net consist primarily of interest income that is located within Corporate Expenses.
| December 31, 2022
(dollars in millions) | North America |  | Rest of World |  | Inter-segment Elimination |  | Total Segments |  | Less: Corporate Expenses |  | Total
Sales from external customers | $ | 2,792.4 |  |  | $ | 961.5 |  |  | $ | — |  |  | $ | 3,753.9 |  |  | $ | — |  |  | $ | 3,753.9 |
Inter-segment sales | 26.7 |  |  | 4.3 |  |  | — |  |  | 31.0 |  |  | — |  |  | 31.0 |
| 2,819.1 |  |  | 965.8 |  |  | — |  |  | 3,784.9 |  |  | — |  |  | 3,784.9 |
Elimination of Inter-segment sales | (26.7) |  |  | (4.3) |  |  | — |  |  | (31.0) |  |  | — |  |  | (31.0) |
Net Sales | 2,792.4 |  |  | 961.5 |  |  | — |  |  | 3,753.9 |  |  | — |  |  | 3,753.9 |
Cost of products sold | 1,813.9 |  |  | 610.6 |  |  | — |  |  | 2,424.5 |  |  | (0.2) |  |  | 2,424.3 |
Gross Profit | 978.5 |  |  | 350.9 |  |  | — |  |  | 1,329.4 |  |  | 0.2 |  |  | 1,329.6 |
Inter-segment Profit | 0.3 |  |  | — |  |  | (0.3) |  |  | — |  |  | — |  |  | — |
Selling, general and administrative expenses | 356.2 |  |  | 252.0 |  |  | — |  |  | 608.2 |  |  | 62.7 |  |  | 670.9 |
Other expense (income), net(3) | 356.6 |  |  | 2.6 |  |  | — |  |  | 359.2 |  |  | 66.4 |  |  | 425.6 |
Earnings | $ | 266.0 |  |  | $ | 96.3 |  |  | $ | (0.3) |  |  | $ | 362.0 |  |  | $ | (128.9) |  |  | $ | 233.1 |
Interest expense |  |  |  |  |  |  |  |  |  |  | (9.4) |
Earnings before provision for income taxes |  |  |  |  |  |  |  |  |  |  | $ | 223.7 |
(3)Other expense (income), net consist primarily of a pre-tax pension settlement expense of $346.8 million in the North America segment and $70.5 million within Corporate expenses. In 2024, sales to the Company's North America segment’s two largest customers were $586.6 million and $495.8 million which represented 15 percent and 13 percent of the Company’s net sales, respectively. In 2023, sales to the Company's North America segment’s two largest customers were $604.5 million and $509.0 million which represented 16 percent and 13 percent of the Company’s net sales, respectively. In 2022, sales to the Company's North America segment’s two largest customers were $596.4 million and $414.2 million which represented 16 percent and 11 percent of the Company’s net sales, respectively. Assets, depreciation and capital expenditures by segment
| Total Assets (December 31) |  | Depreciation and Amortization (Years Ended December 31) |  | Capital Expenditures (Years Ended December 31)
(dollars in millions) | 2024 |  | 2023 |  | 2022 |  | 2024 |  | 2023 |  | 2022 |  | 2024 |  | 2023 |  | 2022
North America | $ | 2,315.2 |  |  | $ | 2,297.4 |  |  | $ | 2,230.3 |  |  | $ | 60.4 |  |  | $ | 58.6 |  |  | $ | 55.7 |  |  | $ | 100.3 |  |  | $ | 58.4 |  |  | $ | 48.6 |
Rest of World | 592.1 |  |  | 475.0 |  |  | 597.7 |  |  | 17.0 |  |  | 18.3 |  |  | 20.5 |  |  | 7.6 |  |  | 11.0 |  |  | 10.9 |
Total Segments | 2,907.3 |  |  | 2,772.4 |  |  | 2,828.0 |  |  | 77.4 |  |  | 76.9 |  |  | 76.2 |  |  | 107.9 |  |  | 69.4 |  |  | 59.5 |
Corporate | 332.7 |  |  | 441.5 |  |  | 504.3 |  |  | 1.4 |  |  | 1.4 |  |  | 0.7 |  |  | 0.1 |  |  | 3.2 |  |  | 10.8 |
Total | $ | 3,240.0 |  |  | $ | 3,213.9 |  |  | $ | 3,332.3 |  |  | $ | 78.8 |  |  | $ | 78.3 |  |  | $ | 76.9 |  |  | $ | 108.0 |  |  | $ | 72.6 |  |  | $ | 70.3 |
(1)The majority of corporate assets consist of cash, cash equivalents, marketable securities, and deferred income taxes. Net sales and long-lived assets by geographic location The following data by geographic area includes net sales based on product shipment destination and long-lived assets based on physical location. Long-lived assets include net property, plant and equipment, operating lease assets and other long-term assets.
| Long-lived Assets (December 31) |  |  | Net Sales (Years Ended December 31)
(dollars in millions) | 2024 |  | 2023 |  | 2022 |  |  | 2024 |  | 2023 |  | 2022
United States | $ | 441.4 |  |  | $ | 422.6 |  |  | $ | 409.8 |  |  | United States | $ | 2,573.7 |  |  | $ | 2,547.1 |  |  | $ | 2,430.0 |
China | 193.8 |  |  | 210.6 |  |  | 225.2 |  |  | China | 760.0 |  |  | 827.4 |  |  | 826.6 |
Canada | 54.0 |  |  | 58.1 |  |  | 54.7 |  |  | Canada | 331.2 |  |  | 335.3 |  |  | 341.6 |
Other Foreign | 75.1 |  |  | 52.1 |  |  | 41.3 |  |  | Other Foreign | 153.2 |  |  | 143.0 |  |  | 155.7 |
Total | $ | 764.3 |  |  | $ | 743.4 |  |  | $ | 731.0 |  |  | Total | $ | 3,818.1 |  |  | $ | 3,852.8 |  |  | $ | 3,753.9 |

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- 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 Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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