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EQUITY AND LONG-TERM INCENTIVE COMPENSATION
 9 Months Ended
Sep. 28, 2019
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION  
EQUITY AND LONG-TERM INCENTIVE COMPENSATION EQUITY AND LONG-TERM INCENTIVE COMPENSATION
Income Per Share
The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income per share:

 
Three months ended
 
Nine months ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Weighted-average number of common shares used in basic income per share
44.072

 
43.080

 
43.870

 
42.948

Dilutive securities — Employee stock options and restricted stock units
1.104

 
1.824

 
0.991

 
1.700

Weighted-average number of common shares and dilutive securities used in diluted income per share
45.176

 
44.904

 
44.861

 
44.648



The weighted-average number of restricted stock units and stock options excluded from the computation of diluted income per share because the assumed proceeds for these instruments exceed the average market value of the underlying common stock for the related period were 0.369 and 0.909, respectively, for the three months ended September 28, 2019 and 0.373 and 0.961, respectively, for the nine months ended September 28, 2019.

The weighted-average number of restricted stock units and stock options excluded from the computation of diluted income per share because the assumed proceeds for these instruments exceed the average market value of the underlying common stock for the related period were 0.252 and 0.859, respectively, for the three months ended September 29, 2018 and 0.286 and 0.871, respectively, for the nine months ended September 29, 2018.

Long-Term Incentive Compensation

Long-term incentive compensation awards may be granted to certain eligible employees or non-employee directors. A detailed description of the awards granted prior to 2019 is included in our 2018 Annual Report on Form 10-K.
Awards granted on February 21, 2019 to executive officers and other members of senior management were comprised of performance stock units (“PSU’s”), stock options, and time-based restricted stock units (“RSU’s”), while other eligible employees were granted PSU’s and RSU’s. The PSU’s are eligible to vest at the end of a three-year performance period, with performance based on the total return of our stock over the three-year performance period against a peer group within the S&P 600 Capital Goods Index. Stock options and RSU’s vest ratably over the three-year period subsequent to the date of grant.
Effective May 10, 2019, we granted 0.023 RSU’s to our non-employee directors, which vest in their entirety immediately prior to the annual meeting of stockholders in May 2020.

Compensation expense within income from continuing operations related to long-term incentive awards totaled $3.3 and $4.3 for the three months ended September 28, 2019 and September 29, 2018, respectively, and $10.1 and $12.4 for the nine months ended September 28, 2019 and September 29, 2018, respectively. The related tax benefit was $0.8 and $1.1 for the three months ended September 28, 2019 and September 29, 2018, respectively, and $2.5 and $3.2 for the nine months ended September 28, 2019 and September 29, 2018.













Accumulated Other Comprehensive Income

The changes in the components of accumulated other comprehensive income, net of tax, for the three months ended September 28, 2019 were as follows:
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized Losses
on Qualifying Cash
Flow Hedges(1)
 
Pension and
Postretirement
Liability
Adjustment(2)
 
Total
Balance at beginning of period
$
227.2

 
$
(2.7
)
 
$
18.2

 
$
242.7

Other comprehensive loss before reclassifications
(1.8
)
 
(0.6
)
 
—

 
(2.4
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
0.4

 
(0.8
)
 
(0.4
)
Current-period other comprehensive loss
(1.8
)
 
(0.2
)
 
(0.8
)
 
(2.8
)
Balance at end of period
$
225.4

 
$
(2.9
)
 
$
17.4

 
$
239.9

__________________________
(1) 
Net of tax benefit of $1.0 and $0.9 as of September 28, 2019 and June 29, 2019, respectively.
(2) 
Net of tax provision of $5.9 and $6.1 as of September 28, 2019 and June 29, 2019, respectively. The balances as of September 28, 2019 and June 29, 2019 include unamortized prior service credits.
The changes in the components of accumulated other comprehensive income, net of tax, for the nine months ended September 28, 2019 were as follows:
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized Losses
on Qualifying Cash
Flow Hedges(1)
 
Pension and
Postretirement
Liability
Adjustment(2)
 
Total
Balance at beginning of period
$
225.8

 
$
(0.6
)
 
$
19.7

 
$
244.9

Other comprehensive loss before reclassifications
(0.4
)
 
(2.9
)
 
—

 
(3.3
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
0.6

 
(2.3
)
 
(1.7
)
Current-period other comprehensive loss
(0.4
)
 
(2.3
)
 
(2.3
)
 
(5.0
)
Balance at end of period
$
225.4

 
$
(2.9
)
 
$
17.4

 
$
239.9

__________________________
(1) 
Net of tax benefit of $1.0 and $0.2 as of September 28, 2019 and December 31, 2018, respectively.
(2) 
Net of tax provision of $5.9 and $6.6 as of September 28, 2019 and December 31, 2018, respectively. The balances as of September 28, 2019 and December 31, 2018 include unamortized prior service credits.
The changes in the components of accumulated other comprehensive income, net of tax, for the three months ended September 29, 2018 were as follows:
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
 Losses
on Qualifying Cash
Flow Hedges(1)
 
Pension and
Postretirement
Liability
Adjustment(2)
 
Total
Balance at beginning of period
$
229.4

 
$
(0.2
)
 
$
22.3

 
$
251.5

Other comprehensive loss before reclassifications
—

 
(0.4
)
 
—

 
(0.4
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
0.3

 
(0.9
)
 
(0.6
)
Current-period other comprehensive loss
—

 
(0.1
)
 
(0.9
)
 
(1.0
)
Balance at end of period
$
229.4

 
$
(0.3
)
 
$
21.4

 
$
250.5

__________________________
(1) 
Net of tax benefit of $0.1 as of September 29, 2018 and June 30, 2018.
(2) 
Net of tax provision of $7.2 and $7.3 as of September 29, 2018 and June 30, 2018. The balances as of September 29, 2018 and June 30, 2018 include unamortized prior service credits.

The changes in the components of accumulated other comprehensive income, net of tax, for the nine months ended September 29, 2018 were as follows:
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized Gains (Losses)
on Qualifying Cash
Flow Hedges(1)
 
Pension and
Postretirement
Liability
Adjustment(2)
 
Total
Balance at beginning of period
$
230.2

 
$
0.8

 
$
19.1

 
$
250.1

Other comprehensive loss before reclassifications
(0.8
)
 
(1.2
)
 
—

 
(2.0
)
Amounts reclassified from accumulated other comprehensive income:
 
 
 
 
 
 
 
Impact of initial adoption of ASC 606 - See
Note 2
—

 
(0.3
)
 
—

 
(0.3
)
Stranded income tax effects resulting from tax reform - See Note 2
—

 
0.2

 
4.6

 
4.8

Commodity contracts and amortization of prior service credits - See below
—

 
0.2

 
(2.3
)
 
(2.1
)
Current-period other comprehensive income (loss)
(0.8
)
 
(1.1
)
 
2.3

 
0.4

Balance at end of period
$
229.4

 
$
(0.3
)
 
$
21.4

 
$
250.5

__________________________
(1) 
Net of tax (provision) benefit of $0.1 and $(0.5) as of September 29, 2018 and December 31, 2017, respectively.
(2) 
Net of tax provision of $7.2 and $12.5 as of September 29, 2018 and December 31, 2017. The balances as of September 29, 2018 and December 31, 2017 include unamortized prior service credits.
The following summarizes amounts reclassified from each component of accumulated comprehensive income for the three months ended September 28, 2019 and September 29, 2018:
 
Amount Reclassified from AOCI
 
 
 
Three months ended
 
 
 
September 28, 2019
 
September 29, 2018
 
Affected Line Item in the Condensed
Consolidated Statements of Operations
Losses on qualifying cash flow hedges:
 

 
 

 
 
Commodity contracts
$
0.3

 
$
0.4

 
Cost of products sold
Swaps
0.2

 
—

 
Interest expense
Pre-tax
0.5

 
0.4

 
 
Income taxes
(0.1
)
 
(0.1
)
 
 
 
$
0.4

 
$
0.3

 
 
 
 
 
 
 
 
Gains on pension and postretirement items:
 

 
 

 
 
Amortization of unrecognized prior service credits - Pre-tax
$
(1.0
)
 
$
(1.0
)
 
Other income (expense), net
Income taxes
0.2

 
0.1

 
 
 
$
(0.8
)
 
$
(0.9
)
 
 










The following summarizes amounts reclassified from each component of accumulated comprehensive income for the nine months ended September 28, 2019 and September 29, 2018:
 
Amount Reclassified from AOCI
 
 
 
Nine months ended
 
 
 
September 28, 2019
 
September 29, 2018
 
Affected Line Item in the Condensed
Consolidated Statements of Operations
Losses on qualifying cash flow hedges:
 

 
 

 
 
Commodity contracts
$
0.6

 
$
0.2

 
Cost of products sold
Swaps
0.2

 
—

 
Interest expense
Pre-tax
0.8

 
0.2

 
 
Income taxes
(0.2
)
 
—

 
 
 
$
0.6

 
$
0.2

 
 
 
 
 
 
 
 
Gains on pension and postretirement items:
 

 
 

 
 
Amortization of unrecognized prior service credits - Pre-tax
$
(3.0
)
 
$
(3.0
)
 
Other income (expense), net
Income taxes
0.7

 
0.7

 
 
 
$
(2.3
)
 
$
(2.3
)