A. O. Smith (AOS) 10-Q28 Oct 222022 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2022	Oct. 26, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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	Q3
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		25,905,876
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		126,869,651

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net sales		$ 874.2	$ 914.6	$ 2,817.8	$ 2,543.4
Cost of products sold		569.2	574.3	1,836.8	1,593.1
Gross profit		305	340.3	981	950.3
Selling, general and administrative expenses		155.5	177.6	502	517.2
Interest expense		2.4	1	6	2.9
Other expense (income), net		2.4	(4.7)	6.4	(13.6)
Earnings before provision for income taxes		144.7	166.4	466.6	443.8
Provision for income taxes		34.9	34.8	110.8	96.3
Net Earnings		$ 109.8	$ 131.6	$ 355.8	$ 347.5
Net Earnings Per Share of Common Stock (in USD per share)	[1]	$ 0.71	$ 0.83	$ 2.29	$ 2.17
Diluted Net Earnings Per Share of Common Stock (in USD per share)	[1]	0.71	0.82	2.27	2.15
Dividends Per Share of Common Stock (in USD per share)		$ 0.28	$ 0.26	$ 0.84	$ 0.78

[1]Earnings per share amounts are calculated discretely and, therefore, may not add up to the total due to rounding.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net earnings	$ 109.8	$ 131.6	$ 355.8	$ 347.5
Other comprehensive (loss) earnings
Foreign currency translation adjustments	(28.9)	(2.4)	(52.9)	1.1
Unrealized gains (losses) on cash flow derivative instruments, less related income tax (provision) benefit of $(1.1) and $(1.6) in 2022, $(0.1) and $0.2 in 2021	3.5	0.4	5	(0.7)
Adjustment to pension liability, less related income tax provision of $(1.3) and $(3.8) in 2022, $(1.2) and $(3.8) in 2021	3.7	3.9	11.2	11.5
Comprehensive Earnings	$ 88.1	$ 133.5	$ 319.1	$ 359.4

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Income tax benefit on cash flow derivative instruments	$ (1.1)	$ (0.1)	$ (1.6)	$ 0.2
Income tax provision on adjustment to pension liability	$ (1.3)	$ (1.2)	$ (3.8)	$ (3.8)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 358.8	$ 443.3
Marketable securities	58.3	188.1
Receivables	564.2	634.4
Inventories	525.6	447.7
Other current assets	62.7	39.1
Total Current Assets	1,569.6	1,752.6
Property, plant and equipment	1,339.3	1,343.2
Less accumulated depreciation	(755.7)	(736.5)
Net property, plant and equipment	583.6	606.7
Goodwill	619.3	627.8
Other intangibles	349.8	364.8
Operating lease assets	31.3	32.5
Other assets	78.3	90
Total Assets	3,231.9	3,474.4
Current Liabilities
Trade payables	595.6	745.9
Accrued payroll and benefits	71	113.4
Accrued liabilities	163.8	181.8
Product warranties	63.7	70.9
Debt due within one year	6.8	6.8
Total Current Liabilities	900.9	1,118.8
Long-term debt	281	189.9
Product warranties	113.5	113.5
Long-term operating lease liabilities	23.5	22.3
Other liabilities	165.2	197.7
Total Liabilities	1,484.1	1,642.2
Stockholders’ Equity
Capital in excess of par value	554.9	545.2
Retained earnings	3,051.1	2,826.6
Accumulated other comprehensive loss	(368.1)	(331.4)
Treasury stock at cost	(1,785.1)	(1,503.4)
Total Stockholders’ Equity	1,747.8	1,832.2
Total Liabilities and Stockholders’ Equity	3,231.9	3,474.4
Class A Common Stock
Stockholders’ Equity
Common Stock, value	130.3	130.5
Common Stock
Stockholders’ Equity
Common Stock, value	$ 164.7	$ 164.7

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Class A Common Stock
Common Stock, par value (in USD per share)	$ 5	$ 5
Common Stock, shares authorized (in shares)	27,000,000	27,000,000
Common Stock, shares issued (in shares)	26,050,642	26,104,441
Common Stock
Common Stock, par value (in USD per share)	$ 1	$ 1
Common Stock, shares authorized (in shares)	240,000,000	240,000,000
Common Stock, shares issued (in shares)	164,656,952	164,603,153

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating Activities
Net earnings	$ 355.8	$ 347.5
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization	56.5	58
Stock based compensation expense	10.4	10.3
Net changes in operating assets and liabilities:
Current assets and liabilities	(212.6)	(20.8)
Noncurrent assets and liabilities	4.6	(18.2)
Cash Provided by Operating Activities	214.7	376.8
Investing Activities
Capital expenditures	(50.9)	(45.3)
Acquisitions of businesses	(8)	(9)
Investments in marketable securities	(35.3)	(160.1)
Net proceeds from sale of marketable securities	152.5	79.1
Cash Provided by (Used in) Investing Activities	58.3	(135.3)
Financing Activities
Long-term debt incurred	94.6
Long-term debt (repaid)		(6.8)
Common stock repurchases	(282)	(212)
Net (payments) proceeds from stock option activity	(1.6)	15.7
Dividends paid	(131.1)	(125.4)
Cash Used in Financing Activities	(320.1)	(328.5)
Effect of exchange rate changes on cash and cash equivalents	(37.4)	0
Net decrease in cash and cash equivalents	(84.5)	(87)
Cash and cash equivalents - beginning of period	443.3	573.1
Cash and Cash Equivalents - End of Period	$ 358.8	$ 486.1

CONDENSED CONSOLIDATED STATEM_5

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, 2020		$ 130.8	$ 164.6	$ 520.4	$ 2,509.6		$ (1,155.9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class A Common Stock		(0.2)	0.1	0.2
Issuance of share units				(5.6)
Vesting of share units				(1.9)			1.9
Stock based compensation expense				9.3
Exercise of stock options				7.5			8
Stock incentives and directors’ compensation				6.6			0.3
Net earnings	$ 347.5				347.5
Dividends on stock					(125.4)
Shares repurchased							(212)
Balance at end of period at Sep. 30, 2021	1,896.5	130.6	164.7	536.5	2,731.7	$ (309.3)	(1,357.7)
Balance at the beginning of period at Jun. 30, 2021		130.6	164.7	535	2,641.6		(1,344.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class A Common Stock		0	0	0
Issuance of share units				(0.2)
Vesting of share units				(0.1)			0.1
Stock based compensation expense				1
Exercise of stock options				0.5			0.4
Stock incentives and directors’ compensation				0.3			0.1
Net earnings	131.6				131.6
Dividends on stock					(41.5)
Shares repurchased							(13.9)
Balance at end of period at Sep. 30, 2021	1,896.5	130.6	164.7	536.5	2,731.7	(309.3)	(1,357.7)
Balance at the beginning of period at Dec. 31, 2021	1,832.2	130.5	164.7	545.2	2,826.6		(1,503.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class A Common Stock		(0.2)	0	0.2
Issuance of share units				(6)
Vesting of share units				(2.4)			2.4
Stock based compensation expense				10.1
Exercise of stock options				0.8			(2.4)
Stock incentives and directors’ compensation				7			0.3
Net earnings	355.8				355.8
Dividends on stock					(131.3)
Shares repurchased							(282)
Balance at end of period at Sep. 30, 2022	1,747.8	130.3	164.7	554.9	3,051.1	(368.1)	(1,785.1)
Balance at the beginning of period at Jun. 30, 2022		130.5	164.7	553.1	2,984.6		(1,694)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class A Common Stock		(0.2)	0	0.2
Issuance of share units				0
Vesting of share units				0			0
Stock based compensation expense				1.2
Exercise of stock options				0.4			0.5
Stock incentives and directors’ compensation				0			0
Net earnings	109.8				109.8
Dividends on stock					(43.3)
Shares repurchased							(91.6)
Balance at end of period at Sep. 30, 2022	$ 1,747.8	$ 130.3	$ 164.7	$ 554.9	$ 3,051.1	$ (368.1)	$ (1,785.1)

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2022
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 and nine months ended September 30, 2022 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, 2021 filed with the SEC on February 11, 2022. Recent Accounting Pronouncement In November 2021, the Financial Accounting Standards Board (FASB) amended ASC 832, Government Assistance (issued under Accounting Standards Update (ASU) 2021-10, "Disclosures by Business Entities about Government Assistance"). This amendment requires disclosures that are expected to increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The Company adopted the amendment on January 1, 2022, and the adoption of ASU 2021-10 is not expected to materially impact its annual disclosures, consolidated balance sheets, statements of earnings or statements of cash flows.

Revenue Recognition

Revenue Recognition	9 Months Ended
Revenue Recognition	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	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 $103.8 million and $155.2 million at September 30, 2022 and December 31, 2021, respectively. Customer deposit liabilities are short term in nature, recognized into revenue within one year of receipt, and recorded in Trade payables within the condensed consolidated balance sheets. 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 $10.1 million at September 30, 2022 and $9.5 million at December 31, 2021. 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 1,100 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 and point-of-use carbon and reverse osmosis products. Typical applications for the Company’s water treatment products include residences, restaurants, hotels and offices. The Company sells water treatment products through its retail and wholesale distribution channels, similar to water heater products and related parts. The Company’s water treatment products are also sold through independent water quality dealers as well as directly to consumers including through internet sales channels. A portion of the Company’s sales of water treatment products in the North America segment is comprised of replacement filters. The following table disaggregates the Company’s net sales by segment. As described above, the Company’s North America segment sales are further disaggregated by major product line. In addition, the Company’s Rest of World segment sales are disaggregated by China and all other Rest of World: (dollars in millions) Three Months Ended Nine Months Ended 2022 2021 2022 2021 North America Water heaters and related parts $ 525.6 $ 549.0 $ 1,755.3 $ 1,504.8 Boilers and related parts 75.5 59.6 203.4 161.6 Water treatment products and related parts 51.8 49.6 168.4 148.3 Total North America 652.9 658.2 2,127.1 1,814.7 Rest of World China $ 194.3 $ 228.8 $ 624.1 $ 666.8 All other Rest of World 35.9 34.3 92.0 81.8 Total Rest of World 230.2 263.1 716.1 748.6 Inter-segment sales (8.9) (6.7) (25.4) (19.9) Total Net Sales $ 874.2 $ 914.6 $ 2,817.8 $ 2,543.4

Acquisitions

Acquisitions	9 Months Ended
Acquisitions	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions On October 19, 2021, the Company acquired 100 percent of the shares and related assets of Giant Factories, Inc. (Giant), a Canada-based manufacturer of residential and commercial water heaters for $198.6 million, net of cash acquired. The Company paid $2.5 million of the purchase price in the second quarter of 2022 as a result of final working capital adjustments. The Company incurred acquisition costs of approximately $1.3 million in 2021. Under the Giant purchase agreement, approximately $8 million of the purchase price was set aside as an escrow to satisfy any potential obligations of the former owners of Giant, should they arise. The allocation of the purchase price to goodwill decreased by $2.3 million in the second quarter of 2022 due to the net impact of a measurement period adjustment, primarily related to income tax matters, partially offset by the final working capital adjustment. The purchase price allocation remains preliminary and subject to final valuation adjustments that will be completed within the one year period following the acquisition date. The addition of Giant increased the Company's North America market penetration, created additional capacity and enhanced the Company's distribution capabilities. Giant is included in the North America segment. The following table summarizes the preliminary allocation of fair value of the assets acquired and liabilities assumed at the date of acquisition. Of the $53.8 million of acquired identifiable intangible assets, $43.9 million was assigned to trademarks that are not subject to amortization and $9.2 million was assigned to customer relationships which are amortized over 22 years, and the remaining $0.7 million was assigned to non-compete agreements which are amortized over five years. The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill. The following table summarizes the estimated fair values of Giant's assets acquired and liabilities assumed at the date of acquisition: October 19, 2021 (dollars in millions) Current assets, net of cash acquired $ 60.1 Property, plant and equipment 55.8 Intangible assets 53.8 Goodwill 77.6 Total assets acquired 247.3 Current liabilities (39.2) Long Term liabilities (9.5) Net assets acquired $ 198.6 During the second quarter of 2022, the Company acquired a privately-held water treatment company. The Company paid an aggregate cash purchase price of $5.5 million, net of cash acquired. The addition of the company acquired expands the Company's water treatment platform and is included in the North America segment for reporting purposes. As required under ASC 805 Business Combinations , results of operations have been included in the Company’s consolidated financial statements from the date of their acquisition. During the third quarter of 2022, the Company incurred $4.3 million of expenses and related income tax benefit of $1.1 million associated with a terminated acquisition. These expenses were related to the due diligence of a prospective acquisition target and recorded within selling, general and administrative expenses in the condensed consolidated statement of operations.

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2022
Leases [Abstract]
Leases	Leases The Company’s lease portfolio consists of operating leases for buildings and equipment, such as forklifts and copiers, primarily in the United States and China. The Company defines a lease as a contract that gives the Company the right to control the use of a physical asset for a stated term. The Company pays the lessor for that right, with a series of payments defined in the contract and a corresponding right of use operating lease asset and liability are recorded. The Company has elected not to record leases with an initial term of 12 months or less on its condensed consolidated balance sheet. To determine balance sheet amounts, required legal payments are discounted using the Company’s incremental borrowing rate as of the inception of the lease. The incremental borrowing rate is the rate of interest that the Company would incur if it were to borrow, on a collateralized basis, an amount equal to the value of the leased item over a similar term, in a similar economic environment. Variable lease components not based on an index or rate are excluded from the measurement of the lease asset and liability and expensed as incurred for all asset classes. Certain leases include one or more options to renew or terminate. Renewal terms can extend the lease term from one Company’s discretion and when it is determined to be reasonably certain to renew or terminate, the option is reflected in the measurement of lease asset and liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants or material subleases. Cash flows associated with leases are materially consistent with the expense recorded in the condensed consolidated statement of earnings. Supplemental balance sheet information related to leases is as follows: (dollars in millions) September 30, December 31, 2021 Liabilities Short term: Accrued liabilities $ 9.4 $ 11.7 Long term: Operating lease liabilities 23.5 22.3 Total operating lease liabilities $ 32.9 $ 34.0 Less: Rent incentives and deferrals (1.6) (1.5) Assets Operating lease assets $ 31.3 $ 32.5 Lease Term and Discount Rate September 30, 2022 Weighted-average remaining lease term 6.4 years Weighted-average discount rate 3.07 % The components of lease expense were as follows: (dollars in millions) Three months ended Lease Expense Classification 2022 (1) 2021 (2) Operating lease expense Cost of products sold $ 0.7 $ 0.9 Selling, general and administrative expenses 4.1 4.2 (1) 2022 includes short-term and variable lease expenses of $0.5 million and $0.8 million, respectively. (2) 2021 includes short-term and variable lease expenses of $0.6 million and $0.6 million, respectively. (dollars in millions) Nine Months Ended Lease Expense Classification 2022 (1) 2021 (2) Operating lease expense Cost of products sold $ 2.7 $ 2.9 Selling, general and administrative expenses 12.4 12.3 (1) 2022 includes short-term and variable lease expenses of $1.6 million and $2.5 million, respectively. (2) 2021 includes short-term and variable lease expenses of $1.6 million and $1.8 million, respectively. Maturities of lease liabilities were as follows: (dollars in millions) September 30, 2022 $ 2.6 2023 9.3 2024 7.7 2025 5.1 2026 3.2 After 2026 9.3 Total lease payments 37.2 Less: Imputed interest (4.3) Present value of operating lease liabilities $ 32.9

Inventories

Inventories	9 Months Ended
Inventories	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories The following table presents the components of the Company’s inventory balances: (dollars in millions) September 30, December 31, 2021 Finished products $ 188.0 $ 190.2 Work in process 49.9 42.0 Raw materials 360.8 286.3 Inventories, at FIFO cost 598.7 518.5 LIFO reserve (73.1) (70.8) Inventories, at LIFO cost $ 525.6 $ 447.7

Product Warranties

Product Warranties	9 Months Ended
Product Warranties	Sep. 30, 2022
Guarantees and Product Warranties [Abstract]
Product Warranties	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 increase in the reserve for product warranties as of September 30, 2022 compared to September 30, 2021 was primarily due to increased steel prices and the acquisition of Giant. Refer to Note 3, "Acquisitions", for additional information regarding the acquisition of Giant. The following table presents the Company’s warranty liability activity: (dollars in millions) Three Months Ended 2022 2021 Balance at July 1, $ 180.0 $ 144.9 Expense 14.0 18.5 Claims settled (16.8) (11.9) Balance at September 30, $ 177.2 $ 151.5 (dollars in millions) Nine Months Ended 2022 2021 Balance at January 1, $ 184.4 $ 142.3 Expense 42.6 46.4 Claims settled (49.8) (37.2) Balance at September 30, $ 177.2 $ 151.5

Debt

Debt	9 Months Ended
Debt	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	DebtIn 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 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 September 30, 2022. 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 September 30, 2022.

Earnings per Share of Common St

Earnings per Share of Common Stock	9 Months Ended
Earnings per Share of Common Stock	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings per Share of Common Stock	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 Nine Months Ended 2022 2021 2022 2021 Denominator for basic earnings per share - weighted average shares 154,197,072 159,188,790 155,625,624 160,310,548 Effect of dilutive stock options and share units 877,790 1,439,558 1,037,520 1,396,538 Denominator for diluted earnings per share 155,074,862 160,628,348 156,663,144 161,707,086

Stock Based Compensation

Stock Based Compensation	9 Months Ended
Stock Based Compensation	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock Based Compensation	Stock Based Compensation The Company adopted the A. O. Smith Combined Incentive Compensation Plan (the Incentive Plan) effective January 1, 2007. The Incentive Plan was most recently 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 options or share units at September 30, 2022 was 7,134,900. 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 September 30, 2022 and 2021 was $1.4 million and $1.4 million, respectively. Total stock based compensation expense recognized in the nine months ended September 30, 2022 and 2021 was $10.4 million and $10.3 million, respectively. Stock Options The stock options granted in the nine months ended September 30, 2022 and 2021 have three year pro rata vesting from the date of grant. Stock options are issued at exercise prices equal to the fair value of the Company’s Common Stock on the date of grant. For active employees, all options granted in 2022 and 2021 expire ten years after the date of grant. The Company’s stock options are expensed ratably over the three year vesting period; however, included in the stock option expense for the nine months ended September 30, 2022 and 2021 was expense associated with the accelerated vesting of stock option awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period. Stock based compensation expense attributable to stock options in the three months ended September 30, 2022 and 2021 was $0.5 million and $0.5 million, respectively. Stock based compensation expense attributable to stock options in the nine months ended September 30, 2022 and 2021 was $5.0 million and $4.6 million, respectively. Changes in options, all of which relate to the Company’s Common Stock, were as follows for the nine months ended September 30, 2022: Weighted- Number of Average Aggregate Outstanding at January 1, 2022 $ 47.73 2,252,498 Granted 74.11 322,460 Exercised 38.31 (45,751) Forfeited 61.09 (17,383) Outstanding at September 30, 2022 51.19 2,511,824 7 years $ 9.9 Exercisable at September 30, 2022 46.89 1,703,369 6 years $ 8.4 The weighted-average fair value per option at the date of grant during the nine months ended September 30, 2022 and 2021 using the Black-Scholes option-pricing model was $17.57 and $14.03, respectively. Assumptions were as follows: Nine Months Ended 2022 2021 Expected life (years) 5.7 5.8 Risk-free interest rate 1.9 % 1.2 % Dividend yield 1.5 % 1.6 % Expected volatility 26.8 % 27.4 % The expected lives of options for purposes of these models are based on historical exercise behavior. The risk-free interest rates for purposes of these models are based on the U.S. Treasury yield curve in effect on the date of grant for the respective expected lives of the option. The expected dividend yields for purposes of these models are based on the dividends paid in the preceding four quarters divided by the grant date market value of the Common Stock. The expected volatility for purposes of these models are based on the historical volatility of the Common Stock. Restricted Stock and Share Units Participants may also be awarded shares of restricted stock or share units under the Incentive Plan. Share units vest three years after the date of grant. The Company granted 94,604 and 104,223 share units under the Incentive Plan in the nine months ended September 30, 2022 and 2021, respectively. The share units were valued at $6.9 million and $6.4 million at the date of issuance in 2022 and 2021, 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 and nine months ended September 30, 2022 and 2021 was expense associated with accelerated vesting of restricted stock and share unit awards for certain employees who either are retirement eligible or will become retirement eligible during the vesting period. Stock based compensation expense attributable to share units of $1.0 million and $0.9 million was recognized in the three months ended September 30, 2022 and 2021, respectively. Stock based compensation expense attributable to share units of $5.5 million and $5.7 million was recognized in the nine months ended September 30, 2022 and 2021, 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 nine months ended September 30, 2022: Number of Units Weighted-Average Issued and unvested at January 1, 2022 421,138 $ 47.28 Granted 94,604 73.41 Vested (126,631) 49.49 Forfeited (8,439) 56.31 Issued and unvested at September 30, 2022 380,672 52.92

Pensions

Pensions	9 Months Ended
Pensions	Sep. 30, 2022
Retirement Benefits [Abstract]
Pensions	Pensions The following table presents the components of the Company’s net pension expense (income): (dollars in millions) Three Months Ended Nine Months Ended 2022 2021 2022 2021 Service cost $ 0.4 $ 0.4 $ 1.1 $ 1.2 Interest cost 3.6 3.5 10.9 10.7 Expected return on plan assets (5.4) (11.9) (16.1) (35.9) Amortization of unrecognized loss 5.1 5.2 15.3 15.6 Amortization of prior service cost (0.1) (0.1) (0.3) (0.3) Defined benefit plan expense (income) $ 3.6 $ (2.9) $ 10.9 $ (8.7) 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 (income) are reflected in other expense (income). The Company was not required to and did not make a contribution to its U.S. pension plan in 2021. The Company is not required to make a contribution in 2022.

Segment Results

Segment Results	9 Months Ended
Segment Results	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Results	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 Nine Months Ended 2022 2021 2022 2021 Net sales North America $ 652.9 $ 658.2 $ 2,127.1 $ 1,814.7 Rest of World 230.2 263.1 716.1 748.6 Inter-segment (8.9) (6.7) (25.4) (19.9) $ 874.2 $ 914.6 $ 2,817.8 $ 2,543.4 Segment earnings North America (1)(2) $ 141.8 $ 151.8 $ 453.5 $ 423.9 Rest of World 21.8 26.8 64.7 60.9 Inter-segment — (0.1) (0.1) (0.1) 163.6 178.5 518.1 484.7 Corporate expense (3)(4) (16.5) (11.1) (45.5) (38.0) Interest expense (2.4) (1.0) (6.0) (2.9) Earnings before income taxes 144.7 166.4 466.6 443.8 Provision for income taxes 34.9 34.8 110.8 96.3 Net earnings $ 109.8 $ 131.6 $ 355.8 $ 347.5 (1) includes pension expense (income) of: $ 2.6 $ (2.6) $ 7.8 $ (7.8) (2) includes legal judgment income of: (11.5) — (11.5) — (3) includes terminated acquisition-related expenses of: 4.3 — 4.3 — (4) includes pension expense (income) of: 0.4 (0.6) 1.1 (1.7)

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements 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. The following table presents assets (liabilities) measured at fair value on a recurring basis (dollars in millions): Fair Value Measurement Using September 30, December 31, 2021 Quoted prices in active markets for identical assets (Level 1) $ 58.3 $ 188.1 Significant other observable inputs (Level 2) 7.9 (0.7) 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 nine months ended September 30, 2022.

Derivative Instruments

Derivative Instruments	9 Months Ended
Derivative Instruments	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	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 include the British pound, Canadian dollar, Euro and Mexican peso. Gains and losses on these instruments are recorded in accumulated other comprehensive loss, net of tax, until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to the consolidated statement of earnings. The assessment of effectiveness for forward contracts is based on changes in the forward rates. These hedges have been determined to be effective. The majority of the amounts in accumulated other comprehensive loss for cash flow hedges are expected to be reclassified into earnings within one year. The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts that are designated as cash flow hedges: (dollars in millions) September 30, 2022 December 31, 2021 Buy Sell Buy Sell Canadian dollar $ — $ 111.2 $ — $ 113.4 Euro 29.7 — 24.2 — Mexican peso 12.5 — 23.8 — Total $ 42.2 $ 111.2 $ 48.0 $ 113.4 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 zero and $1.4 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 and nine months ended September 30, 2022, respectively. The Company recognized zero and $(0.1) million of after-tax losses associated with hedges of a net investment in non-U.S. subsidiaries in currency translation adjustment in other comprehensive loss in both the three and nine months ended September 30, 2021, respectively. The contractual amount of the Company's foreign currency forward contracts that are designated as net investment hedges is zero as of September 30, 2022. The following tables present the impact of derivative contracts on the Company’s financial statements. Fair value of derivatives designated as hedging instruments under ASC 815: (dollars in millions) Balance Sheet Location September 30, December 31, Foreign currency contracts Other current assets $ 10.4 $ 1.7 Accrued liabilities (2.9) (1.6) Total derivatives designated as hedging instruments $ 7.5 $ 0.1 The effect of cash flow hedges on the condensed consolidated statement of earnings: Three Months Ended September 30 (dollars in millions): Derivatives in ASC 815 cash flow hedging relationships Amount of gain recognized in other Location of gain Amount of gain 2022 2021 2022 2021 Foreign currency contracts $ 5.7 $ 0.6 Cost of products sold $ 1.0 $ 0.2 Nine Months Ended September 30 (dollars in millions): Derivatives in ASC 815 cash flow hedging relationships Amount of gain (loss) recognized in other Location of gain (loss) Amount of gain (loss) 2022 2021 2022 2021 Foreign currency contracts $ 8.5 $ (1.9) Cost of products sold $ 1.8 $ (0.9) 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 an asset of $0.4 million as of September 30, 2022. The fair value of the foreign exchange contracts was a liability of $0.8 million as of December 31, 2021 and 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) September 30, 2022 December 31, 2021 Buy Sell Buy Sell Canadian dollar $ — $ 96.2 $ — $ 125.6 The amounts recognized within the consolidated statements of earnings related to the Company's foreign exchange contracts are set forth below. Three Months Ended September 30 (dollars in millions): Derivatives not designated as hedging instruments: Location of loss within the consolidated statements of earnings 2022 2021 Foreign exchange contracts Other expense (income) - net $ 0.4 $ — Nine Months Ended September 30 (dollars in millions): Derivatives not designated as hedging instruments: Location of loss within the consolidated statements of earnings 2022 2021 Foreign exchange contracts Other expense (income) - net $ 1.5 $ —

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective income tax rate for the three and nine months ended September 30, 2022 was 24.1 percent and 23.7 percent, respectively. The Company estimates that its annual effective income tax rate for the full year 2022 will be between approximately 23.5 and 24.0 percent. The effective income tax rate for the three and nine months ended September 30, 2021 was 20.9 percent and 21.7 percent, respectively. The change in the effective income tax rate for the three and nine months ended September 30, 2022 compared to the effective income tax rate for the three and nine months ended September 30, 2021 was primarily due to a non-recurring favorable tax impact recorded in 2021 of $4.2 million related to amending a previously filed tax return and a change in geographical earnings mix. As of September 30, 2022, the Company had $14.3 million of unrecognized tax benefits of which $0.5 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 for 2017-2022 are subject to audit. The Company is subject to state and local income tax audits for tax years 2008-2022. The Company is subject to non-U.S. income tax examinations for years 2015-2022.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2022
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 product plus costs incurred in the process, less related distributor rebates. Before considering any reduction of distributor rebate accruals of $1.4 million and $3.9 million as of September 30, 2022 and December 31, 2021, respectively, and from the resale of the related inventory, the gross amount the Company would be obligated to repurchase, which would be contingent on the default of all of the outstanding loans, was approximately $2.4 million as of September 30, 2022 and $7.2 million as of December 31, 2021. The Company’s reserves for estimated losses under repurchase arrangements were immaterial as of September 30, 2022 and December 31, 2021. On September 28, 2022, the Company received a cash judgment of $11.5 million from a competitor of our North America segment related to its infringement of one of the Company’s patents. The terms of the judgment resulted in pre-tax income of $11.5 million that is recorded as an offset to selling, general and administrative expenses and a related tax expense of $2.9 million.

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Loss by Component	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Changes in Accumulated Other Comprehensive Loss by Component	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 2022 2021 Cumulative foreign currency translation Balance at beginning of period $ (68.7) $ (44.6) Other comprehensive loss before reclassifications (28.9) (2.4) Balance at end of period (97.6) (47.0) Unrealized net gain (loss) on cash flow derivatives Balance at beginning of period 2.1 (0.5) Other comprehensive gain before reclassifications 4.3 0.5 Realized gains on derivatives reclassified to cost of products sold (net of income tax provision of $0.2 and $0.1 in 2022 and 2021, respectively) (0.8) (0.1) Balance at end of period 5.6 (0.1) Pension liability Balance at beginning of period (279.8) (266.1) Amounts reclassified from accumulated other comprehensive loss: (1) 3.7 3.9 Balance at end of period (276.1) (262.2) Accumulated other comprehensive loss, end of period $ (368.1) $ (309.3) (1) Amortization of pension items: Actuarial losses $ 5.1 (2) $ 5.2 (2) Prior year service cost (0.1) (2) (0.1) (2) 5.0 5.1 Income tax benefit (1.3) (1.2) Reclassification net of income tax benefit $ 3.7 $ 3.9 (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 - Pensions for additional details. Changes to accumulated other comprehensive loss by component are as follows: (dollars in millions) Nine Months Ended 2022 2021 Cumulative foreign currency translation Balance at beginning of period $ (44.7) $ (48.1) Other comprehensive (loss) income before reclassifications (52.9) 1.1 Balance at end of period (97.6) (47.0) Unrealized net gain (loss) on cash flow derivatives Balance at beginning of period 0.6 0.6 Other comprehensive gain (loss) before reclassifications 6.4 (1.4) Realized (gains) losses on derivatives reclassified to cost of products sold (net of income tax provision (benefit) of $0.4 and $(0.2) in 2022 and 2021, respectively) (1.4) 0.7 Balance at end of period 5.6 (0.1) Pension liability Balance at beginning of period (287.3) (273.7) Amounts reclassified from accumulated other comprehensive loss: (1) 11.2 11.5 Balance at end of period (276.1) (262.2) Accumulated other comprehensive loss, end of period $ (368.1) $ (309.3) (1) Amortization of pension items: Actuarial losses $ 15.3 (2) $ 15.6 (2) Prior year service cost (0.3) (2) (0.3) (2) 15.0 15.3 Income tax benefit (3.8) (3.8) Reclassification net of income tax benefit $ 11.2 $ 11.5 (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 - Pensions for additional details.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncement	Recent Accounting Pronouncement In November 2021, the Financial Accounting Standards Board (FASB) amended ASC 832, Government Assistance (issued under Accounting Standards Update (ASU) 2021-10, "Disclosures by Business Entities about Government Assistance"). This amendment requires disclosures that are expected to increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The Company adopted the amendment on January 1, 2022, and the adoption of ASU 2021-10 is not expected to materially impact its annual disclosures, consolidated balance sheets, statements of earnings or statements of cash flows.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
Revenue Recognition (Tables)	Sep. 30, 2022
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 Nine Months Ended 2022 2021 2022 2021 North America Water heaters and related parts $ 525.6 $ 549.0 $ 1,755.3 $ 1,504.8 Boilers and related parts 75.5 59.6 203.4 161.6 Water treatment products and related parts 51.8 49.6 168.4 148.3 Total North America 652.9 658.2 2,127.1 1,814.7 Rest of World China $ 194.3 $ 228.8 $ 624.1 $ 666.8 All other Rest of World 35.9 34.3 92.0 81.8 Total Rest of World 230.2 263.1 716.1 748.6 Inter-segment sales (8.9) (6.7) (25.4) (19.9) Total Net Sales $ 874.2 $ 914.6 $ 2,817.8 $ 2,543.4

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
Acquisitions (Tables)	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Summary of the Allocation of the Fair Value of the Assets Acquired and Liabilities Assumed at the Date of Acquisition	The following table summarizes the estimated fair values of Giant's assets acquired and liabilities assumed at the date of acquisition: October 19, 2021 (dollars in millions) Current assets, net of cash acquired $ 60.1 Property, plant and equipment 55.8 Intangible assets 53.8 Goodwill 77.6 Total assets acquired 247.3 Current liabilities (39.2) Long Term liabilities (9.5) Net assets acquired $ 198.6

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2022
Leases [Abstract]
Schedule of Supplemental Balance Sheet Related to Leases	Supplemental balance sheet information related to leases is as follows: (dollars in millions) September 30, December 31, 2021 Liabilities Short term: Accrued liabilities $ 9.4 $ 11.7 Long term: Operating lease liabilities 23.5 22.3 Total operating lease liabilities $ 32.9 $ 34.0 Less: Rent incentives and deferrals (1.6) (1.5) Assets Operating lease assets $ 31.3 $ 32.5 Lease Term and Discount Rate September 30, 2022 Weighted-average remaining lease term 6.4 years Weighted-average discount rate 3.07 %
Schedule of Components of Lease Expense	The components of lease expense were as follows: (dollars in millions) Three months ended Lease Expense Classification 2022 (1) 2021 (2) Operating lease expense Cost of products sold $ 0.7 $ 0.9 Selling, general and administrative expenses 4.1 4.2 (1) 2022 includes short-term and variable lease expenses of $0.5 million and $0.8 million, respectively. (2) 2021 includes short-term and variable lease expenses of $0.6 million and $0.6 million, respectively. (dollars in millions) Nine Months Ended Lease Expense Classification 2022 (1) 2021 (2) Operating lease expense Cost of products sold $ 2.7 $ 2.9 Selling, general and administrative expenses 12.4 12.3 (1) 2022 includes short-term and variable lease expenses of $1.6 million and $2.5 million, respectively. (2) 2021 includes short-term and variable lease expenses of $1.6 million and $1.8 million, respectively.
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities were as follows: (dollars in millions) September 30, 2022 $ 2.6 2023 9.3 2024 7.7 2025 5.1 2026 3.2 After 2026 9.3 Total lease payments 37.2 Less: Imputed interest (4.3) Present value of operating lease liabilities $ 32.9

Inventories (Tables)

Inventories (Tables)	9 Months Ended
Inventories (Tables)	Sep. 30, 2022
Inventory Disclosure [Abstract]
Schedule of Inventories	The following table presents the components of the Company’s inventory balances: (dollars in millions) September 30, December 31, 2021 Finished products $ 188.0 $ 190.2 Work in process 49.9 42.0 Raw materials 360.8 286.3 Inventories, at FIFO cost 598.7 518.5 LIFO reserve (73.1) (70.8) Inventories, at LIFO cost $ 525.6 $ 447.7

Product Warranties (Tables)

Product Warranties (Tables)	9 Months Ended
Product Warranties (Tables)	Sep. 30, 2022
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 2022 2021 Balance at July 1, $ 180.0 $ 144.9 Expense 14.0 18.5 Claims settled (16.8) (11.9) Balance at September 30, $ 177.2 $ 151.5 (dollars in millions) Nine Months Ended 2022 2021 Balance at January 1, $ 184.4 $ 142.3 Expense 42.6 46.4 Claims settled (49.8) (37.2) Balance at September 30, $ 177.2 $ 151.5

Earnings per Share of Common _2

Earnings per Share of Common Stock (Tables)	9 Months Ended
Earnings per Share of Common Stock (Tables)	Sep. 30, 2022
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 Nine Months Ended 2022 2021 2022 2021 Denominator for basic earnings per share - weighted average shares 154,197,072 159,188,790 155,625,624 160,310,548 Effect of dilutive stock options and share units 877,790 1,439,558 1,037,520 1,396,538 Denominator for diluted earnings per share 155,074,862 160,628,348 156,663,144 161,707,086

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
Stock Based Compensation (Tables)	Sep. 30, 2022
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 nine months ended September 30, 2022: Weighted- Number of Average Aggregate Outstanding at January 1, 2022 $ 47.73 2,252,498 Granted 74.11 322,460 Exercised 38.31 (45,751) Forfeited 61.09 (17,383) Outstanding at September 30, 2022 51.19 2,511,824 7 years $ 9.9 Exercisable at September 30, 2022 46.89 1,703,369 6 years $ 8.4
Schedule of Assumptions	Assumptions were as follows: Nine Months Ended 2022 2021 Expected life (years) 5.7 5.8 Risk-free interest rate 1.9 % 1.2 % Dividend yield 1.5 % 1.6 % Expected volatility 26.8 % 27.4 %
Schedule of Share Unit Activity	A summary of share unit activity under the Incentive Plan is as follows for the nine months ended September 30, 2022: Number of Units Weighted-Average Issued and unvested at January 1, 2022 421,138 $ 47.28 Granted 94,604 73.41 Vested (126,631) 49.49 Forfeited (8,439) 56.31 Issued and unvested at September 30, 2022 380,672 52.92

Pensions (Tables)

Pensions (Tables)	9 Months Ended
Pensions (Tables)	Sep. 30, 2022
Retirement Benefits [Abstract]
Schedule of Components of Net Pension Expense (Income)	The following table presents the components of the Company’s net pension expense (income): (dollars in millions) Three Months Ended Nine Months Ended 2022 2021 2022 2021 Service cost $ 0.4 $ 0.4 $ 1.1 $ 1.2 Interest cost 3.6 3.5 10.9 10.7 Expected return on plan assets (5.4) (11.9) (16.1) (35.9) Amortization of unrecognized loss 5.1 5.2 15.3 15.6 Amortization of prior service cost (0.1) (0.1) (0.3) (0.3) Defined benefit plan expense (income) $ 3.6 $ (2.9) $ 10.9 $ (8.7)

Segment Results (Tables)

Segment Results (Tables)	9 Months Ended
Segment Results (Tables)	Sep. 30, 2022
Segment Reporting [Abstract]
Schedule of Segment Results	The following table presents the Company’s segment results: (dollars in millions) Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net sales North America $ 652.9 $ 658.2 $ 2,127.1 $ 1,814.7 Rest of World 230.2 263.1 716.1 748.6 Inter-segment (8.9) (6.7) (25.4) (19.9) $ 874.2 $ 914.6 $ 2,817.8 $ 2,543.4 Segment earnings North America (1)(2) $ 141.8 $ 151.8 $ 453.5 $ 423.9 Rest of World 21.8 26.8 64.7 60.9 Inter-segment — (0.1) (0.1) (0.1) 163.6 178.5 518.1 484.7 Corporate expense (3)(4) (16.5) (11.1) (45.5) (38.0) Interest expense (2.4) (1.0) (6.0) (2.9) Earnings before income taxes 144.7 166.4 466.6 443.8 Provision for income taxes 34.9 34.8 110.8 96.3 Net earnings $ 109.8 $ 131.6 $ 355.8 $ 347.5 (1) includes pension expense (income) of: $ 2.6 $ (2.6) $ 7.8 $ (7.8) (2) includes legal judgment income of: (11.5) — (11.5) — (3) includes terminated acquisition-related expenses of: 4.3 — 4.3 — (4) includes pension expense (income) of: 0.4 (0.6) 1.1 (1.7)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Assets (Liabilities) Measured at Fair Value on a Recurring Basis	The following table presents assets (liabilities) measured at fair value on a recurring basis (dollars in millions): Fair Value Measurement Using September 30, December 31, 2021 Quoted prices in active markets for identical assets (Level 1) $ 58.3 $ 188.1 Significant other observable inputs (Level 2) 7.9 (0.7)

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
Derivative Instruments (Tables)	Sep. 30, 2022
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 that are designated as cash flow hedges: (dollars in millions) September 30, 2022 December 31, 2021 Buy Sell Buy Sell Canadian dollar $ — $ 111.2 $ — $ 113.4 Euro 29.7 — 24.2 — Mexican peso 12.5 — 23.8 — Total $ 42.2 $ 111.2 $ 48.0 $ 113.4 The following table summarizes the contractual amounts of the Company's foreign exchange contracts that are designated as balance sheet hedges: (dollars in millions) September 30, 2022 December 31, 2021 Buy Sell Buy Sell Canadian dollar $ — $ 96.2 $ — $ 125.6
Schedule of Impact of Derivative Contracts on the Company's Financial Statements	The following tables present the impact of derivative contracts on the Company’s financial statements. Fair value of derivatives designated as hedging instruments under ASC 815: (dollars in millions) Balance Sheet Location September 30, December 31, Foreign currency contracts Other current assets $ 10.4 $ 1.7 Accrued liabilities (2.9) (1.6) Total derivatives designated as hedging instruments $ 7.5 $ 0.1
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 September 30 (dollars in millions): Derivatives in ASC 815 cash flow hedging relationships Amount of gain recognized in other Location of gain Amount of gain 2022 2021 2022 2021 Foreign currency contracts $ 5.7 $ 0.6 Cost of products sold $ 1.0 $ 0.2 Nine Months Ended September 30 (dollars in millions): Derivatives in ASC 815 cash flow hedging relationships Amount of gain (loss) recognized in other Location of gain (loss) Amount of gain (loss) 2022 2021 2022 2021 Foreign currency contracts $ 8.5 $ (1.9) Cost of products sold $ 1.8 $ (0.9) The amounts recognized within the consolidated statements of earnings related to the Company's foreign exchange contracts are set forth below. Three Months Ended September 30 (dollars in millions): Derivatives not designated as hedging instruments: Location of loss within the consolidated statements of earnings 2022 2021 Foreign exchange contracts Other expense (income) - net $ 0.4 $ — Nine Months Ended September 30 (dollars in millions): Derivatives not designated as hedging instruments: Location of loss within the consolidated statements of earnings 2022 2021 Foreign exchange contracts Other expense (income) - net $ 1.5 $ —

Changes in Accumulated Other _2

Changes in Accumulated Other Comprehensive Loss by Component (Tables)	9 Months Ended
	Sep. 30, 2022
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 2022 2021 Cumulative foreign currency translation Balance at beginning of period $ (68.7) $ (44.6) Other comprehensive loss before reclassifications (28.9) (2.4) Balance at end of period (97.6) (47.0) Unrealized net gain (loss) on cash flow derivatives Balance at beginning of period 2.1 (0.5) Other comprehensive gain before reclassifications 4.3 0.5 Realized gains on derivatives reclassified to cost of products sold (net of income tax provision of $0.2 and $0.1 in 2022 and 2021, respectively) (0.8) (0.1) Balance at end of period 5.6 (0.1) Pension liability Balance at beginning of period (279.8) (266.1) Amounts reclassified from accumulated other comprehensive loss: (1) 3.7 3.9 Balance at end of period (276.1) (262.2) Accumulated other comprehensive loss, end of period $ (368.1) $ (309.3) (1) Amortization of pension items: Actuarial losses $ 5.1 (2) $ 5.2 (2) Prior year service cost (0.1) (2) (0.1) (2) 5.0 5.1 Income tax benefit (1.3) (1.2) Reclassification net of income tax benefit $ 3.7 $ 3.9 (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 - Pensions for additional details. Changes to accumulated other comprehensive loss by component are as follows: (dollars in millions) Nine Months Ended 2022 2021 Cumulative foreign currency translation Balance at beginning of period $ (44.7) $ (48.1) Other comprehensive (loss) income before reclassifications (52.9) 1.1 Balance at end of period (97.6) (47.0) Unrealized net gain (loss) on cash flow derivatives Balance at beginning of period 0.6 0.6 Other comprehensive gain (loss) before reclassifications 6.4 (1.4) Realized (gains) losses on derivatives reclassified to cost of products sold (net of income tax provision (benefit) of $0.4 and $(0.2) in 2022 and 2021, respectively) (1.4) 0.7 Balance at end of period 5.6 (0.1) Pension liability Balance at beginning of period (287.3) (273.7) Amounts reclassified from accumulated other comprehensive loss: (1) 11.2 11.5 Balance at end of period (276.1) (262.2) Accumulated other comprehensive loss, end of period $ (368.1) $ (309.3) (1) Amortization of pension items: Actuarial losses $ 15.3 (2) $ 15.6 (2) Prior year service cost (0.3) (2) (0.3) (2) 15.0 15.3 Income tax benefit (3.8) (3.8) Reclassification net of income tax benefit $ 11.2 $ 11.5 (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 - Pensions for additional details.

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) $ in Millions	9 Months Ended
Revenue Recognition - Narrative (Details) $ in Millions	Sep. 30, 2022 USD ($) distributor segment	Dec. 31, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Customer deposits liability	$ 103.8	$ 155.2
Allowance for credit losses	$ 10.1	$ 9.5
Number of reporting segments \| segment	2
Water Heaters \| North America
Disaggregation of Revenue [Line Items]
Number of wholesale distributors (more than) \| distributor	1,100
Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms	90 days

Revenue Recognition - Segment S

Revenue Recognition - Segment Sales Disaggregated by Major Product Line (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 874.2	$ 914.6	$ 2,817.8	$ 2,543.4
Operating Segments \| North America
Disaggregation of Revenue [Line Items]
Net sales	652.9	658.2	2,127.1	1,814.7
Operating Segments \| Rest of World
Disaggregation of Revenue [Line Items]
Net sales	230.2	263.1	716.1	748.6
Operating Segments \| Rest of World \| China
Disaggregation of Revenue [Line Items]
Net sales	194.3	228.8	624.1	666.8
Operating Segments \| Rest of World \| All other Rest of World
Disaggregation of Revenue [Line Items]
Net sales	35.9	34.3	92	81.8
Operating Segments \| Water heaters and related parts \| North America
Disaggregation of Revenue [Line Items]
Net sales	525.6	549	1,755.3	1,504.8
Operating Segments \| Boilers and related parts \| North America
Disaggregation of Revenue [Line Items]
Net sales	75.5	59.6	203.4	161.6
Operating Segments \| Water treatment products and related parts \| North America
Disaggregation of Revenue [Line Items]
Net sales	51.8	49.6	168.4	148.3
Inter-segment
Disaggregation of Revenue [Line Items]
Net sales	$ (8.9)	$ (6.7)	$ (25.4)	$ (19.9)

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
Acquisitions - Narrative (Details) - USD ($) $ in Millions	Oct. 19, 2021	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition [Line Items]
Aggregate cash purchase price, net of cash acquired				$ 8	$ 9
Giant Factories, Inc.
Business Acquisition [Line Items]
Percentage of interest acquired	100%
Aggregate cash purchase price, net of cash acquired	$ 198.6
Additional payments to acquire businesses			$ 2.5
Transaction costs	1.3
Escrow to satisfy any potential obligations to the former owners	8
Decrease to goodwill due to net impact of measurement period adjustment		$ 2.3
Acquired intangible assets	53.8
Giant Factories, Inc. \| Customer relationships
Business Acquisition [Line Items]
Acquired intangible assets subject to amortization	$ 9.2
Acquired intangible assets, amortization period, in years	22 years
Giant Factories, Inc. \| Non-compete agreements
Business Acquisition [Line Items]
Acquired intangible assets subject to amortization	$ 0.7
Acquired intangible assets, amortization period, in years	5 years
Giant Factories, Inc. \| Trademarks
Business Acquisition [Line Items]
Acquired intangible assets not subject to amortization	$ 43.9
Privately-Held Water Treatment Company
Business Acquisition [Line Items]
Aggregate cash purchase price, net of cash acquired			$ 5.5
Terminated Acquisition
Business Acquisition [Line Items]
Expenses associated with terminated acquisition		4.3
Income tax benefit associated with terminated acquisition		$ 1.1

Acquisitions - Summary of Alloc

Acquisitions - Summary of Allocation of Fair Value of Assets Acquired and Liabilities Assumed at Date of Acquisition (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Oct. 19, 2021
Business Acquisition [Line Items]
Goodwill	$ 619.3	$ 627.8
Giant Factories, Inc.
Business Acquisition [Line Items]
Current assets, net of cash acquired			$ 60.1
Property, plant and equipment			55.8
Intangible assets			53.8
Goodwill			77.6
Total assets acquired			247.3
Current liabilities			(39.2)
Long Term liabilities			(9.5)
Net assets acquired			$ 198.6

Leases - Narrative (Details)

Leases - Narrative (Details)	9 Months Ended
Leases - Narrative (Details)	Sep. 30, 2022
Lessee, Lease, Description [Line Items]
Operating lease termination period	1 year
Minimum
Lessee, Lease, Description [Line Items]
Operating lease renewal term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease renewal term	5 years

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Liabilities
Current operating lease liability, statement of financial position [Extensible List]	Accrued liabilities	Accrued liabilities
Short term: Accrued liabilities	$ 9.4	$ 11.7
Long term: Operating lease liabilities	23.5	22.3
Total operating lease liabilities	32.9	34
Less: Rent incentives and deferrals	(1.6)	(1.5)
Assets
Operating lease assets	$ 31.3	$ 32.5
Lease Term and Discount Rate
Weighted-average remaining lease term	6 years 4 months 24 days
Weighted-average discount rate	3.07%

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lessee, Lease, Description [Line Items]
Short-term lease expenses	$ 0.5	$ 0.6	$ 1.6	$ 1.6
Variable lease expenses	0.8	0.6	2.5	1.8
Cost of products sold
Lessee, Lease, Description [Line Items]
Operating lease expense	0.7	0.9	2.7	2.9
Selling, general and administrative expenses
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 4.1	$ 4.2	$ 12.4	$ 12.3

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
2022	$ 2.6
2023	9.3
2024	7.7
2025	5.1
2026	3.2
After 2026	9.3
Total lease payments	37.2
Less: Imputed interest	(4.3)
Present value of operating lease liabilities	$ 32.9	$ 34

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished products	$ 188	$ 190.2
Work in process	49.9	42
Raw materials	360.8	286.3
Inventories, at FIFO cost	598.7	518.5
LIFO reserve	(73.1)	(70.8)
Inventories	$ 525.6	$ 447.7

Product Warranties (Details)

Product Warranties (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Product Warranties (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of year	$ 180	$ 144.9	$ 184.4	$ 142.3
Expense	14	18.5	42.6	46.4
Claims settled	(16.8)	(11.9)	(49.8)	(37.2)
Balance at end of year	$ 177.2	$ 151.5	$ 177.2	$ 151.5

Debt (Details)

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

Earnings per Share of Common _3

Earnings per Share of Common Stock (Details) - shares	3 Months Ended		9 Months Ended
Earnings per Share of Common Stock (Details) - shares	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Denominator for basic earnings per share - weighted average shares (in shares)	154,197,072	159,188,790	155,625,624	160,310,548
Effect of dilutive stock options and share units (in shares)	877,790	1,439,558	1,037,520	1,396,538
Denominator for diluted earnings per share (in shares)	155,074,862	160,628,348	156,663,144	161,707,086

Stock Based Compensation - Narr

Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 1.4	$ 1.4	$ 10.4	$ 10.3
Weighted-average fair value per option at the date of grant (in USD per share)			$ 17.57	$ 14.03
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	0.5	0.5	$ 5	$ 4.6
Award vesting period			3 years	3 years
Award expiration period			10 years	10 years
Restricted Stock and Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			3 years
Number of units granted (in shares)			94,604	104,223
Value of units share units granted			$ 6.9	$ 6.4
Share based compensation expense attributable to share units	$ 1	$ 0.9	$ 5.5	$ 5.7
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)	7,134,900		7,134,900

Stock Based Compensation - Chan

Stock Based Compensation - Changes in Options (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Weighted- Avg. Per Share Exercise Price
Beginning balance (in USD per share) \| $ / shares	$ 47.73
Granted (in USD per share) \| $ / shares	74.11
Exercised (in USD per share) \| $ / shares	38.31
Forfeited (in USD per share) \| $ / shares	61.09
Ending balance (in USD per share) \| $ / shares	$ 51.19
Number of Options
Beginning balance (in shares) \| shares	2,252,498
Granted (in shares) \| shares	322,460
Exercised (in shares) \| shares	(45,751)
Forfeited (in shares) \| shares	(17,383)
Ending balance (in shares) \| shares	2,511,824
Stock option activity, additional disclosures
Outstanding, Average Remaining Contractual Life	7 years
Outstanding, Aggregate Intrinsic Value \| $	$ 9.9
Exercisable, Weighted-Avg. Per Share Exercise Price (in USD per share) \| $ / shares	$ 46.89
Exercisable, Number of Options (in shares) \| shares	1,703,369
Exercisable, Average Remaining Contractual Life	6 years
Exercisable, Aggregate Intrinsic Value \| $	$ 8.4

Stock Based Compensation - Sche

Stock Based Compensation - Schedule of Weighted-average Fair Value per Option at Date of Grant (Details) - Employee Stock Option	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	5 years 8 months 12 days	5 years 9 months 18 days
Risk-free interest rate	1.90%	1.20%
Dividend yield	1.50%	1.60%
Expected volatility	26.80%	27.40%

Stock Based Compensation - Summ

Stock Based Compensation - Summary of Share Unit Activity Under Plan (Details) - Restricted Stock and Share Units - $ / shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Number of Units
Beginning balance (in shares)	421,138
Granted (in shares)	94,604	104,223
Vested (in shares)	(126,631)
Forfeited (in shares)	(8,439)
Ending balance (in shares)	380,672
Weighted-Average Grant Date Value
Beginning balance (in USD per share)	$ 47.28
Granted (in USD per share)	73.41
Vested (in USD per share)	49.49
Forfeited (in USD per share)	56.31
Ending balance (in USD per share)	$ 52.92

Pensions - Components of Net Pe

Pensions - Components of Net Pension Income (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0.4	$ 0.4	$ 1.1	$ 1.2
Interest cost	3.6	3.5	10.9	10.7
Expected return on plan assets	(5.4)	(11.9)	(16.1)	(35.9)
Amortization of unrecognized loss	5.1	5.2	15.3	15.6
Amortization of prior service cost	(0.1)	(0.1)	(0.3)	(0.3)
Defined benefit plan expense (income)	$ 3.6	$ (2.9)	$ 10.9	$ (8.7)

Pensions - Narrative (Details)

Pensions - Narrative (Details) - Pension Plan - USD ($)	3 Months Ended	12 Months Ended
Pensions - Narrative (Details) - Pension Plan - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Employer contributions		$ 0
Expected current year employer contributions			$ 0
Defined Benefit Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Percentage of the pension plan liability (over)		95%
Defined Benefit Pension Plan \| Forecast
Defined Benefit Plan Disclosure [Line Items]
Pension expenses accelerated	$ 445,000,000

Segment Results (Details)

Segment Results (Details) $ in Millions		3 Months Ended		9 Months Ended
Segment Results (Details) $ in Millions	Sep. 28, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
Segment Reporting [Abstract]
Number of reporting segments \| segment				2
Segment Reporting Information [Line Items]
Net sales		$ 874.2	$ 914.6	$ 2,817.8	$ 2,543.4
Segment earnings		163.6	178.5	518.1	484.7
Corporate expense		(2.4)	4.7	(6.4)	13.6
Interest expense		(2.4)	(1)	(6)	(2.9)
Earnings before income taxes		144.7	166.4	466.6	443.8
Provision for income taxes		34.9	34.8	110.8	96.3
Net Earnings		109.8	131.6	355.8	347.5
Settlement income	$ (11.5)
Terminated Acquisition
Segment Reporting Information [Line Items]
Expenses associated with terminated acquisition		4.3
Pension Plan
Segment Reporting Information [Line Items]
Pension expense (income)		3.6	(2.9)	10.9	(8.7)
Inter-segment
Segment Reporting Information [Line Items]
Net sales		(8.9)	(6.7)	(25.4)	(19.9)
Segment earnings		0	(0.1)	(0.1)	(0.1)
Corporate
Segment Reporting Information [Line Items]
Corporate expense		(16.5)	(11.1)	(45.5)	(38)
Corporate \| Terminated Acquisition
Segment Reporting Information [Line Items]
Expenses associated with terminated acquisition		4.3	0	4.3	0
Corporate \| Pension Plan
Segment Reporting Information [Line Items]
Pension expense (income)		0.4	(0.6)	1.1	(1.7)
North America
Segment Reporting Information [Line Items]
Settlement income		(11.5)	0	(11.5)	0
North America \| Pension Plan
Segment Reporting Information [Line Items]
Pension expense (income)		2.6	(2.6)	7.8	(7.8)
North America \| Operating Segments
Segment Reporting Information [Line Items]
Net sales		652.9	658.2	2,127.1	1,814.7
Segment earnings		141.8	151.8	453.5	423.9
Rest of World \| Operating Segments
Segment Reporting Information [Line Items]
Net sales		230.2	263.1	716.1	748.6
Segment earnings		$ 21.8	$ 26.8	$ 64.7	$ 60.9

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
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	$ 58.3	$ 188.1
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	$ 7.9	$ (0.7)

Derivative Instruments - Schedu

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	Sep. 30, 2022	Dec. 31, 2021
Buy
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	$ 42.2	$ 48
Buy \| Euro
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	29.7	24.2
Buy \| Mexican peso
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	12.5	23.8
Sell
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	111.2	113.4
Sell \| Canadian dollar
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	$ 111.2	$ 113.4

Derivative Instruments - Narrat

Derivative Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Trading Activity, Gains and Losses, Net [Line Items]
After-tax gains (losses) associated with currency translation adjustment in other comprehensive income	$ (28.9)	$ (2.4)	$ (52.9)	$ 1.1
Designated as hedging instrument \| Foreign currency contracts \| Other current assets
Trading Activity, Gains and Losses, Net [Line Items]
Fair value of derivative instruments, assets	10.4		10.4		$ 1.7
Designated as hedging instrument \| Foreign currency contracts \| Accrued liabilities
Trading Activity, Gains and Losses, Net [Line Items]
Derivative liability	2.9		2.9		1.6
Not Designated as Hedging Instrument \| Foreign currency contracts \| Other current assets
Trading Activity, Gains and Losses, Net [Line Items]
Fair value of derivative instruments, assets	0.4		0.4
Not Designated as Hedging Instrument \| Foreign currency contracts \| Accrued liabilities
Trading Activity, Gains and Losses, Net [Line Items]
Derivative liability					$ 0.8
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	0	$ 0	1.4	$ (0.1)
Contractual amounts	$ 0		$ 0

Derivative Instruments - Impact

Derivative Instruments - Impact of Derivative Contracts on Company's Financial Statements (Details) - Designated as hedging instrument - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Total derivatives designated as hedging instruments	$ 7.5	$ 0.1
Foreign currency contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, assets	10.4	1.7
Foreign currency contracts \| Accrued liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative instruments, liabilities	$ (2.9)	$ (1.6)

Derivative Instruments - Sche_2

Derivative Instruments - Schedule of Effect of Cash Flow Hedges on Consolidated Statement of Earnings (Details) - Foreign currency contracts - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative [Line Items]
Amount of gain (loss) recognized in other comprehensive loss on derivatives	$ 5.7	$ 0.6	$ 8.5	$ (1.9)
Cost of products sold
Derivative [Line Items]
Amount of gain reclassified from accumulated other comprehensive loss into earnings	$ 1	$ 0.2	$ 1.8	$ (0.9)

Derivative Instruments - Summar

Derivative Instruments - Summary of Contractual Amounts for Balance Sheet Hedges (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Canadian dollar \| Foreign currency contracts \| Fair Value Hedging \| Designated as hedging instrument \| Sell
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contractual amounts	$ 96.2	$ 125.6

Derivative Instruments - Effect

Derivative Instruments - Effect of Foreign Exchange Contracts on the Statement of Earnings (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Foreign currency contracts \| Other expense (income) - net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative loss	$ 0.4	$ 0	$ 1.5	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022
Income Tax Contingency [Line Items]
Effective tax rate	24.10%	20.90%	23.70%	21.70%
Favorable tax impact related to amending a previously filed tax return		$ 4.2		$ 4.2
Unrecognized tax benefits	$ 14.3		$ 14.3
Unrecognized tax benefits that would affect the effective tax rate, if recognized	$ 0.5		$ 0.5
Forecast \| Minimum
Income Tax Contingency [Line Items]
Effective tax rate					23.50%
Forecast \| Maximum
Income Tax Contingency [Line Items]
Effective tax rate					24%

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Sep. 28, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Commitments and Contingencies [Line Items]
Distributor rebate accruals		$ 1.4		$ 1.4		$ 3.9
Cash judgment	$ 11.5
Pre-tax gain on settlement agreement	11.5
Tax expense on settlement agreement	$ 2.9
North America
Commitments and Contingencies [Line Items]
Pre-tax gain on settlement agreement		11.5	$ 0	11.5	$ 0
Repurchase of inventory
Commitments and Contingencies [Line Items]
Other commitment		$ 2.4		$ 2.4		$ 7.2

Changes in Accumulated Other _3

Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of period			$ 1,832.2
Balance at end of period	$ 1,747.8	$ 1,896.5	1,747.8	$ 1,896.5
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at end of period	(368.1)	(309.3)	(368.1)	(309.3)
Cumulative foreign currency translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of period	(68.7)	(44.6)	(44.7)	(48.1)
Other comprehensive gain (loss) before reclassifications	(28.9)	(2.4)	(52.9)	1.1
Balance at end of period	(97.6)	(47)	(97.6)	(47)
Unrealized net gain (loss) on cash flow derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of period	2.1	(0.5)	0.6	0.6
Other comprehensive gain (loss) before reclassifications	4.3	0.5	6.4	(1.4)
Reclassifications, net of tax	(0.8)	(0.1)	(1.4)	0.7
Balance at end of period	5.6	(0.1)	5.6	(0.1)
Income tax provision (benefit)	0.2	0.1	0.4	(0.2)
Pension liability
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of period	(279.8)	(266.1)	(287.3)	(273.7)
Reclassifications, net of tax	3.7	3.9	11.2	11.5
Balance at end of period	(276.1)	(262.2)	(276.1)	(262.2)
Reclassification, before income tax benefit	5	5.1	15	15.3
Income tax provision (benefit)	(1.3)	(1.2)	(3.8)	(3.8)
Actuarial losses
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification, before income tax benefit	5.1	5.2	15.3	15.6
Prior year service cost
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification, before income tax benefit	$ (0.1)	$ (0.1)	$ (0.3)	$ (0.3)