(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to . |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | Emerging growth company |
Page No. | ||||||||
February 29, 2024 | August 31, 2023 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less reserve for doubtful accounts of $ | |||||||||||
Inventories | |||||||||||
Prepayments and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant, and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred income taxes | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Current operating lease liabilities | |||||||||||
Accrued compensation | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term operating lease liabilities | |||||||||||
Accrued pension liabilities | |||||||||||
Deferred income taxes | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (see Commitments and Contingencies footnote) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost, of | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of products sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, distribution, and administrative expenses | |||||||||||||||||||||||
Special charges | |||||||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Other expense: | |||||||||||||||||||||||
Interest (income) expense, net | ( | ||||||||||||||||||||||
Miscellaneous expense (income), net | ( | ||||||||||||||||||||||
Total other expense | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share(1): | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Basic weighted average number of shares outstanding | |||||||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted weighted average number of shares outstanding | |||||||||||||||||||||||
Dividends declared per share | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss) items: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||
Defined benefit plans, net of tax | |||||||||||||||||||||||
Other comprehensive income (loss) items, net of tax | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Six Months Ended | |||||||||||
February 29, 2024 | February 28, 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash flows from operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based payment expense | |||||||||||
Loss on disposal of property, plant, and equipment | |||||||||||
Asset impairment | |||||||||||
Loss on sale of a business | |||||||||||
Changes in operating assets and liabilities, net of acquisitions and divestitures: | |||||||||||
Accounts receivable | |||||||||||
Inventories | ( | ||||||||||
Prepayments and other current assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Other operating activities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant, and equipment | ( | ( | |||||||||
Other investing activities | ( | ||||||||||
Net cash used for investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Repayments on credit facility, net of borrowings | ( | ||||||||||
Repurchases of common stock | ( | ( | |||||||||
Proceeds from stock option exercises and other | |||||||||||
Payments of taxes withheld on net settlement of equity awards | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net cash used for financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net change in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Income taxes paid during the period | $ | $ | |||||||||
Interest paid during the period | $ | $ |
February 29, 2024 | August 31, 2023 | |||||||||||||
Assets recorded at fair value: | ||||||||||||||
Cash and cash equivalents | Level 1 | $ | $ | |||||||||||
Other financial instruments | Level 2 | |||||||||||||
Assets in fair value hierarchy | ||||||||||||||
Other investments(1) | ||||||||||||||
Total assets at fair value | $ | $ |
February 29, 2024 | August 31, 2023 | ||||||||||
Raw materials, supplies, and work in process (1) | $ | $ | |||||||||
Finished goods | |||||||||||
Inventories excluding reserves | |||||||||||
Less: Reserves | ( | ( | |||||||||
Total inventories | $ | $ |
February 29, 2024 | August 31, 2023 | ||||||||||
Land | $ | $ | |||||||||
Buildings and leasehold improvements | |||||||||||
Machinery and equipment | |||||||||||
Total property, plant, and equipment, at cost | |||||||||||
Less: Accumulated depreciation and amortization | ( | ( | |||||||||
Property, plant, and equipment, net | $ | $ |
ABL | ISG | Total | |||||||||||||||
Balance at August 31, 2023 | $ | $ | $ | ||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||
Balance at February 29, 2024 | $ | $ | $ | ||||||||||||||
ABL | ISG | Total | |||||||||||||||
Balance at August 31, 2022 | $ | $ | $ | ||||||||||||||
Derecognitions for divestitures | ( | ( | |||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||
Balance at February 28, 2023 | $ | $ | $ | ||||||||||||||
February 29, 2024 | August 31, 2023 | ||||||||||
Customer incentive programs(1) | $ | $ | |||||||||
Refunds to customers(1) | |||||||||||
Deferred revenues(1) | |||||||||||
Sales commissions | |||||||||||
Freight costs | |||||||||||
Warranty and recall costs(2) | |||||||||||
Tax-related items(3) | |||||||||||
Interest on long-term debt(4) | |||||||||||
Other | |||||||||||
Total other current liabilities | $ | $ |
Six Months Ended | |||||||||||
February 29, 2024 | February 28, 2023 | ||||||||||
Beginning balance | $ | $ | |||||||||
Warranty and recall costs | |||||||||||
Payments and other deductions | ( | ( | |||||||||
Ending balance | $ | $ |
Common Stock Outstanding | |||||||||||||||||||||||||||||||||||||||||
Shares(1) | Amount | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock, at cost | Total | |||||||||||||||||||||||||||||||||||
Balance, August 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based payment amortization, issuances, and cancellations | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Employee stock purchase plan issuances | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends of $ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance, November 30, 2023 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based payment amortization, issuances, and cancellations | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Employee stock purchase plan issuances | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends of $ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance, February 29, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Common Stock Outstanding | |||||||||||||||||||||||||||||||||||||||||
Shares(1) | Amount | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock, at cost | Total | |||||||||||||||||||||||||||||||||||
Balance, August 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based payment amortization, issuances, and cancellations | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Employee stock purchase plan issuances | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends of $ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance, November 30, 2022 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based payment amortization, issuances, and cancellations | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Employee stock purchase plan issuances | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends of $ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance, February 28, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
February 29, 2024 | August 31, 2023 | ||||||||||
Current deferred revenues | $ | $ | |||||||||
Non-current deferred revenues |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||||||||||||
ABL: | |||||||||||||||||||||||
Independent sales network | $ | $ | $ | $ | |||||||||||||||||||
Direct sales network | |||||||||||||||||||||||
Retail sales | |||||||||||||||||||||||
Corporate accounts | |||||||||||||||||||||||
OEM and other | |||||||||||||||||||||||
Total ABL | |||||||||||||||||||||||
ISG | |||||||||||||||||||||||
Eliminations | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||||||||||||
Share-based payment expense | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||
Recognized actuarial loss | |||||||||||||||||||||||
Net periodic pension cost | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||||||||||||
Interest (income) expense, net: | |||||||||||||||||||||||
Interest expense | $ | $ | $ | $ | |||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Interest (income) expense, net | ( | ||||||||||||||||||||||
Miscellaneous expense (income), net: | |||||||||||||||||||||||
Non-service components of net periodic pension cost | |||||||||||||||||||||||
Foreign currency transaction losses (gains) | ( | ( | |||||||||||||||||||||
Loss on sale of business | |||||||||||||||||||||||
Other items | ( | ( | ( | ( | |||||||||||||||||||
Miscellaneous expense (income), net | ( | ||||||||||||||||||||||
Other expense, net | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Common stock equivalents | |||||||||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||||||||
Basic earnings per share(1) | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share(1) | $ | $ | $ | $ |
Foreign Currency Items | Defined Benefit Pension Plans | Accumulated Other Comprehensive Loss Items | |||||||||||||||
Balance at August 31, 2023 | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive loss before reclassifications | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (1) | |||||||||||||||||
Net current period other comprehensive (loss) income | ( | ( | |||||||||||||||
Balance at February 29, 2024 | $ | ( | $ | ( | $ | ( |
Foreign Currency Items | Defined Benefit Pension Plans | Accumulated Other Comprehensive Loss Items | |||||||||||||||
Balance at August 31, 2022 | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive loss before reclassifications | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (1) | |||||||||||||||||
Net current period other comprehensive (loss) income | ( | ( | |||||||||||||||
Balance at February 28, 2023 | $ | ( | $ | ( | $ | ( |
Three Months Ended | |||||||||||||||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | ||||||||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||||||||||||||||||||
Prior service cost | ( | ||||||||||||||||||||||||||||||||||
Actuarial losses | ( | ( | |||||||||||||||||||||||||||||||||
Total defined benefit pension plans, net | ( | ( | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | $ | ( | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | ||||||||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||||||||||||||||||||
Prior service cost | ( | ||||||||||||||||||||||||||||||||||
Actuarial losses | ( | ( | |||||||||||||||||||||||||||||||||
Total defined benefit pension plans, net | ( | ( | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | $ | ( | $ | ( | $ | $ | ( | $ | ( |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
ABL | $ | $ | $ | $ | |||||||||||||||||||
ISG | |||||||||||||||||||||||
Eliminations(1) | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Operating profit: | |||||||||||||||||||||||
ABL | $ | $ | $ | $ | |||||||||||||||||||
ISG | |||||||||||||||||||||||
Unallocated corporate amounts | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||||||||||||
Operating profit - ABL | $ | $ | $ | $ | |||||||||||||||||||
Operating profit - ISG | |||||||||||||||||||||||
Unallocated corporate amounts | ( | ( | ( | ( | |||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Interest (income) expense, net | ( | ||||||||||||||||||||||
Miscellaneous expense (income), net | ( | ||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ | |||||||||||||||||||
Summarized Balance Sheet Information | February 29, 2024 | August 31, 2023 | ||||||||||||
Current assets | $ | 1,180.1 | $ | 995.7 | ||||||||||
Amounts due from non-guarantor affiliates | 321.4 | 326.4 | ||||||||||||
Non-current assets | 1,373.4 | 1,377.9 | ||||||||||||
Current liabilities | 468.3 | 464.2 | ||||||||||||
Non-current liabilities | 786.0 | 785.4 |
Summarized Income Statement Information | Six Months Ended February 29, 2024 | |||||||
Net sales | $ | 1,521.8 | ||||||
Gross profit | 679.2 | |||||||
Net income | 189.2 |
Three Months Ended | |||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | Increase (Decrease) | Percent Change | ||||||||||||||||||||
Net sales | $ | 905.9 | $ | 943.6 | $ | (37.7) | (4.0) | % | |||||||||||||||
Cost of products sold | 493.5 | 536.9 | (43.4) | (8.1) | % | ||||||||||||||||||
Gross profit | 412.4 | 406.7 | 5.7 | 1.4 | % | ||||||||||||||||||
Percent of net sales | 45.5 | % | 43.1 | % | 240 | bps | |||||||||||||||||
Selling, distribution, and administrative expenses | 294.3 | 295.2 | (0.9) | (0.3) | % | ||||||||||||||||||
Operating profit | 118.1 | 111.5 | 6.6 | 5.9 | % | ||||||||||||||||||
Percent of net sales | 13.0 | % | 11.8 | % | 120 | bps | |||||||||||||||||
Other expense: | |||||||||||||||||||||||
Interest (income) expense, net | (0.1) | 5.7 | (5.8) | (101.8) | % | ||||||||||||||||||
Miscellaneous expense (income), net | 0.6 | (3.7) | 4.3 | NM | |||||||||||||||||||
Total other expense | 0.5 | 2.0 | (1.5) | (75.0) | % | ||||||||||||||||||
Income before income taxes | 117.6 | 109.5 | 8.1 | 7.4 | % | ||||||||||||||||||
Percent of net sales | 13.0 | % | 11.6 | % | 140 | bps | |||||||||||||||||
Income tax expense | 28.4 | 26.3 | 2.1 | 8.0 | % | ||||||||||||||||||
Effective tax rate | 24.1 | % | 24.0 | % | |||||||||||||||||||
Net income | $ | 89.2 | $ | 83.2 | $ | 6.0 | 7.2 | % | |||||||||||||||
Diluted earnings per share | $ | 2.84 | $ | 2.57 | $ | 0.27 | 10.5 | % | |||||||||||||||
NM - not meaningful |
Three Months Ended | ||||||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | Increase (Decrease) | Percent Change | |||||||||||||||||||||||
ABL: | ||||||||||||||||||||||||||
Net sales | $ | 843.5 | $ | 890.8 | $ | (47.3) | (5.3) | % | ||||||||||||||||||
Operating profit | 126.0 | 123.6 | 2.4 | 1.9 | % | |||||||||||||||||||||
Operating profit margin | 14.9 | % | 13.9 | % | 100 | bps | ||||||||||||||||||||
ISG: | ||||||||||||||||||||||||||
Net sales | $ | 68.1 | $ | 58.2 | $ | 9.9 | 17.0 | % | ||||||||||||||||||
Operating profit | 9.1 | 6.3 | 2.8 | 44.4 | % | |||||||||||||||||||||
Operating profit margin | 13.4 | % | 10.8 | % | 260 | bps | ||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | Increase (Decrease) | Percent Change | ||||||||||||||||||||
Net sales | $ | 1,840.6 | $ | 1,941.5 | $ | (100.9) | (5.2) | % | |||||||||||||||
Cost of products sold | 999.8 | 1,118.3 | (118.5) | (10.6) | % | ||||||||||||||||||
Gross profit | 840.8 | 823.2 | 17.6 | 2.1 | % | ||||||||||||||||||
Percent of net sales | 45.7 | % | 42.4 | % | 330 | bps | |||||||||||||||||
Selling, distribution, and administrative expenses | 589.8 | 595.9 | (6.1) | (1.0) | % | ||||||||||||||||||
Special charges | — | 6.9 | (6.9) | NM | |||||||||||||||||||
Operating profit | 251.0 | 220.4 | 30.6 | 13.9 | % | ||||||||||||||||||
Percent of net sales | 13.6 | % | 11.4 | % | 220 | bps | |||||||||||||||||
Other expense: | |||||||||||||||||||||||
Interest expense, net | 0.8 | 12.3 | (11.5) | (93.5) | % | ||||||||||||||||||
Miscellaneous expense, net | 1.7 | 5.4 | (3.7) | NM | |||||||||||||||||||
Total other expense | 2.5 | 17.7 | (15.2) | (85.9) | % | ||||||||||||||||||
Income before income taxes | 248.5 | 202.7 | 45.8 | 22.6 | % | ||||||||||||||||||
Percent of net sales | 13.5 | % | 10.4 | % | 310 | bps | |||||||||||||||||
Income tax expense | 58.7 | 44.6 | 14.1 | 31.6 | % | ||||||||||||||||||
Effective tax rate | 23.6 | % | 22.0 | % | |||||||||||||||||||
Net income | $ | 189.8 | $ | 158.1 | $ | 31.7 | 20.1 | % | |||||||||||||||
Diluted earnings per share | $ | 6.05 | $ | 4.86 | $ | 1.19 | 24.5 | % | |||||||||||||||
NM - not meaningful |
Six Months Ended | ||||||||||||||||||||||||||
February 29, 2024 | February 28, 2023 | Increase (Decrease) | Percent Change | |||||||||||||||||||||||
ABL: | ||||||||||||||||||||||||||
Net sales | $ | 1,719.9 | $ | 1,837.9 | $ | (118.0) | (6.4) | % | ||||||||||||||||||
Operating profit | 269.8 | 241.7 | 28.1 | 11.6 | % | |||||||||||||||||||||
Operating profit margin | 15.7 | % | 13.2 | % | 250 | bps | ||||||||||||||||||||
ISG: | ||||||||||||||||||||||||||
Net sales | $ | 132.3 | $ | 115.0 | $ | 17.3 | 15.0 | % | ||||||||||||||||||
Operating profit | 14.4 | 14.0 | 0.4 | 2.9 | % | |||||||||||||||||||||
Operating profit margin | 10.9 | % | 12.2 | % | (130) | bps |
Purchases of Equity Securities | |||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares that May Yet Be Purchased Under the Plans | |||||||||||||||||||
12/1/2023 through 12/31/2023 | 53,277 | $ | 188.27 | 53,277 | 3,886,429 | ||||||||||||||||||
1/1/2024 through 1/31/2024 | 10,539 | $ | 236.86 | 10,539 | 3,875,890 | ||||||||||||||||||
2/1/2024 through 2/29/2024 | 20,730 | $ | 243.50 | 20,730 | 3,855,160 | ||||||||||||||||||
Total | 84,546 | $ | 207.87 | 84,546 | 3,855,160 | ||||||||||||||||||
EXHIBIT 3 | (a) | Reference is made to Exhibit 3.1 of registrant’s Form 8-K as filed with the Commission on January 26, 2024, which is incorporated herein by reference. | ||||||||||||
(b) | Reference is made to Exhibit 3.2 of registrant’s Form 8-K as filed with the Commission on January 26, 2024, which is incorporated herein by reference. | |||||||||||||
(c) | Reference is made to Exhibit 3.4 of registrant’s Form 8-K as filed with the Commission on January 26, 2024, which is incorporated herein by reference. | |||||||||||||
EXHIBIT 22 | Reference is made to Exhibit 22 of registrant's Form 10-K as filed with the Commission on October 26, 2023, which is incorporated herein by reference. | |||||||||||||
EXHIBIT 31 | (a) | Filed with the Commission as part of this Form 10-Q. | ||||||||||||
(b) | Filed with the Commission as part of this Form 10-Q. | |||||||||||||
EXHIBIT 32 | (a) | Filed with the Commission as part of this Form 10-Q. | ||||||||||||
(b) | Filed with the Commission as part of this Form 10-Q. | |||||||||||||
EXHIBIT 101 | .INS | XBRL Instance Document | The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||
.SCH | XBRL Taxonomy Extension Schema Document. | Filed with the Commission as part of this Form 10-Q. | ||||||||||||
.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | Filed with the Commission as part of this Form 10-Q. | ||||||||||||
.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | Filed with the Commission as part of this Form 10-Q. | ||||||||||||
.LAB | XBRL Taxonomy Extension Label Linkbase Document. | Filed with the Commission as part of this Form 10-Q. | ||||||||||||
.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | Filed with the Commission as part of this Form 10-Q. | ||||||||||||
EXHIBIT 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | Filed with the Commission as part of this Form 10-Q |
Date: | April 3, 2024 | By: | /S/ NEIL M. ASHE | |||||||||||
NEIL M. ASHE CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER |
Date: | April 3, 2024 | By: | /S/ KAREN J. HOLCOM | |||||||||||
KAREN J. HOLCOM SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER (Principal Financial and Accounting Officer) |
/s/ Neil M. Ashe | ||||||||||||||
Neil M. Ashe | ||||||||||||||
Chairman, President and Chief Executive Officer |
/s/ Karen J. Holcom | ||||||||
Karen J. Holcom | ||||||||
Senior Vice President and Chief Financial Officer |
/s/ Neil M. Ashe | ||||||||
Neil M. Ashe | ||||||||
Chairman, President and Chief Executive Officer | ||||||||
April 3, 2024 |
/s/ Karen J. Holcom | ||||||||
Karen J. Holcom | ||||||||
Senior Vice President and Chief Financial Officer | ||||||||
April 3, 2024 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Feb. 29, 2024 |
Aug. 31, 2023 |
---|---|---|
Current assets: | ||
Allowance for doubtful accounts | $ 1.2 | $ 1.3 |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000.0 | 50,000,000.0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000.0 | 500,000,000.0 |
Common stock, shares issued (in shares) | 54,600,000 | 54,400,000 |
Treasury stock, shares (in shares) | 23,700,000 | 23,400,000 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|||
Income Statement [Abstract] | ||||||
Net sales | $ 905.9 | $ 943.6 | $ 1,840.6 | $ 1,941.5 | ||
Cost of products sold | 493.5 | 536.9 | 999.8 | 1,118.3 | ||
Gross profit | 412.4 | 406.7 | 840.8 | 823.2 | ||
Selling, distribution, and administrative expenses | 294.3 | 295.2 | 589.8 | 595.9 | ||
Special charges | 0.0 | 0.0 | 0.0 | 6.9 | ||
Operating profit | 118.1 | 111.5 | 251.0 | 220.4 | ||
Other expense: | ||||||
Interest (income) expense, net | (0.1) | 5.7 | 0.8 | 12.3 | ||
Miscellaneous expense (income), net | 0.6 | (3.7) | 1.7 | 5.4 | ||
Total other expense | 0.5 | 2.0 | 2.5 | 17.7 | ||
Income before income taxes | 117.6 | 109.5 | 248.5 | 202.7 | ||
Income tax expense | 28.4 | 26.3 | 58.7 | 44.6 | ||
Net income | $ 89.2 | $ 83.2 | $ 189.8 | $ 158.1 | ||
Earnings per share | ||||||
Basic earnings per share (in dollars per share) | [1] | $ 2.89 | $ 2.60 | $ 6.13 | $ 4.91 | |
Basic weighted average number of shares outstanding (in shares) | [1] | 30,864 | 32,048 | 30,940 | 32,178 | |
Diluted earnings per share (in dollars per share) | [1] | $ 2.84 | $ 2.57 | $ 6.05 | $ 4.86 | |
Diluted weighted average number of shares outstanding (in shares) | [1] | 31,399 | 32,386 | 31,388 | 32,545 | |
Dividends declared per share (in dollars per share) | [1] | $ 0.15 | $ 0.13 | $ 0.28 | $ 0.26 | |
Comprehensive income: | ||||||
Net income | $ 89.2 | $ 83.2 | $ 189.8 | $ 158.1 | ||
Other comprehensive income (loss) items: | ||||||
Foreign currency translation adjustments | 0.7 | (1.1) | (1.4) | (2.6) | ||
Defined benefit plans, net of tax | 0.7 | 1.0 | 1.3 | 2.1 | ||
Other comprehensive income (loss) items, net of tax | 1.4 | (0.1) | (0.1) | (0.5) | ||
Comprehensive income | $ 90.6 | $ 83.1 | $ 189.7 | $ 157.6 | ||
|
Description of Business and Basis of Presentation |
6 Months Ended |
---|---|
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Acuity Brands, Inc. (referred to herein as “we,” “our,” “us,” the “Company,” or similar references) is a market-leading industrial technology company. We use technology to solve problems in spaces and light. Through our two business segments, Acuity Brands Lighting and Lighting Controls (“ABL”) and the Intelligent Spaces Group (“ISG”), we design, manufacture, and bring to market products and services that make a valuable difference in people's lives. We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management systems, and location-aware applications. ABL Segment Our ABL strategy is to increase product vitality, improve service levels, use technology to improve and differentiate both our products and our services, and drive productivity. ABL's portfolio of lighting solutions includes commercial, architectural, and specialty lighting in addition to lighting controls and components that can be combined to create integrated lighting controls systems. We offer devices such as luminaires that predominantly utilize light emitting diode (“LED”) technology designed to optimize energy efficiency and comfort for various indoor and outdoor applications. ABL's portfolio of products includes but is not limited to the following brands: A-LightTM, AculuxTM, American Electric Lighting®, CycloneTM, Dark to Light®, eldoLED®, Eureka®, Gotham®, Healthcare Lighting®, Holophane®, Hydrel®, IndyTM, IOTA®, Juno®, Lithonia Lighting®, Luminaire LEDTM, Luminis®, Mark Architectural LightingTM, nLight®, OPTOTRONIC®, Peerless®, RELOC® Wiring Solutions, and Sensor Switch®. Principal customers of ABL include electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturer (“OEM”) customers, digital retailers, lighting showrooms, and energy service companies. ABL's customers are located in North America and select international markets that serve new construction, renovation and retrofit, and maintenance and repair applications. ABL's lighting and lighting controls solutions are sold primarily through a network of independent sales agencies that cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, directly to large corporate accounts, and directly to OEM customers. Products are delivered directly from our manufacturing facilities or through a network of distribution centers, regional warehouses, and commercial warehouses using both common carriers and an internally-managed truck fleet. We market ABL's product portfolio and service capabilities to customers and/or end users in multiple channels through a broad spectrum of marketing and promotional methods, including direct customer contact, trade shows, on-site training, print and digital advertising in industry publications, product brochures, and other literature, as well as through digital marketing and social media. ABL operates training and education facilities in several locations throughout North America and Europe designed to enhance the lighting knowledge of customers and industry professionals. ISG Segment Our ISG strategy is to make spaces smarter, safer, and greener by connecting the edge to the cloud. ISG offers building management solutions and building management software. ISG's building management solutions include products for controlling heating, ventilation, air conditioning (“HVAC”), lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems. ISG's intelligent building software enhances the occupant experience, improves building system management, and automates labor intensive tasks while delivering operational energy efficiency and cost reductions. Through a connected and converged building system architecture, ISG's software delivers different applications, allows clients to upgrade over time with natural refresh cycles, and deploys new capabilities. Customers of ISG primarily include system integrators as well as retail stores, airports, and enterprise campuses throughout North America and select international locations. ISG products and solutions are marketed under multiple brand names, including but not limited, to Atrius®, Distech Controls®, and KE2 Therm Solutions®. Basis of Presentation We have prepared the Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) to present the financial position, results of operations, and cash flows of Acuity Brands, Inc. and its wholly-owned subsidiaries. These unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly our consolidated financial position as of February 29, 2024, our consolidated comprehensive income for the three and six months ended February 29, 2024 and February 28, 2023, and our consolidated cash flows for the six months ended February 29, 2024 and February 28, 2023. Certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. However, we believe that the disclosures included herein are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited consolidated financial statements as of and for the three years in the period ended August 31, 2023 and notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on October 26, 2023 (File No. 001-16583) (“Form 10-K”). Our business exhibits some seasonality, with net sales being affected by weather and seasonal demand on construction and installation programs, particularly during the winter months, as well as the annual budget cycles of major customers. Historically, with certain exceptions, we have experienced our highest sales in the last two quarters of each fiscal year due to these factors.
|
Significant Accounting Policies |
6 Months Ended |
---|---|
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Reclassifications We may reclassify certain prior period amounts to conform to the current year presentation. No material reclassifications occurred during the current period.
|
Acquisitions and Divestitures |
6 Months Ended |
---|---|
Feb. 29, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Arize Assets On January 19, 2024, we acquired certain assets related to Arize® horticulture lighting products from Current Lighting Solutions, LLC. The assets have been included in ABL's financial results since the date of acquisition and did not have a material impact to our consolidated financial condition, results of operations, or cash flows. KE2 Therm On May 15, 2023, using cash on hand, we acquired all of the equity interests of KE2 Therm Solutions, Inc. (“KE2 Therm”). KE2 Therm develops and provides intelligent refrigeration control solutions that deliver the precision of digital controls to promote safety, efficiency, and reliability, while delivering cost savings to the customer. This acquisition is intended to expand ISG's technology and controls product portfolio and reach new customers. We accounted for the acquisition of KE2 Therm in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). Acquired assets and liabilities were recorded at their estimated acquisition-date fair values. Acquisition-related costs were expensed as incurred and were not material to our financial statements. The aggregate purchase price of this acquisition reflects preliminary goodwill within the ISG segment of $15.0 million at February 29, 2024, which is not expected to be deductible for tax purposes. The goodwill is primarily comprised of expected benefits related to expanding ISG's technology and controls product portfolio as well as the trained workforce acquired with these businesses and expected synergies from combining the operations of KE2 Therm with our operations. We additionally recorded preliminary gross intangible assets of $18.0 million as of February 29, 2024, which reflect estimates for definite-lived intangibles with a preliminary estimated weighted average useful life of approximately 15 years. Amounts recorded for acquired assets and liabilities are deemed to be provisional until disclosed otherwise as we continue to gather information related to the identification and valuation of acquired assets and liabilities including, but not limited to, intangible assets and tax-related items. There were no measurement period adjustments during the first six months of fiscal 2024. The operating results of KE2 Therm have been included in our financial statements since the date of acquisition and are not material to our consolidated financial condition, results of operations, or cash flows. Divestitures There were no divestitures during the first six months of fiscal 2024. The following discussion relates to fiscal year 2023 activities. We sold our Sunoptics prismatic skylights business in November 2022. We transferred assets with a total carrying value of $15.1 million, which primarily consisted of intangibles with definite lives, inventories, and allocated goodwill from the ABL segment. During the first quarter of fiscal 2023, we recognized a pre-tax loss on this sale of $11.2 million within Miscellaneous expense (income), net on the Consolidated Statements of Comprehensive Income. Additionally, we recorded impairment charges for certain retained assets as well as associate severance and other costs related to this sale. These items are included within Special charges on the Consolidated Statements of Comprehensive Income. See the Special Charges footnote of the Notes to Consolidated Financial Statements for further details.
|
New Accounting Pronouncements |
6 Months Ended |
---|---|
Feb. 29, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Yet to Be Adopted Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, or our fiscal 2026. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) In November 2023, the FASB issued ASU 2023-07, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023 or our fiscal 2025. Interim disclosures are required for periods within fiscal years beginning after December 15, 2024, or our fiscal 2026. Retrospective application is required for all prior periods presented, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable.
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements We determine fair value measurements based on the assumptions a market participant would use in pricing an asset or liability. ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a three-level hierarchy that distinguishes between market participant assumptions based on (i) unadjusted quoted prices for identical assets or liabilities in an active market (Level 1), (ii) quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (Level 2), and (iii) prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (Level 3). We utilize valuation methodologies to determine the fair values of our financial assets and liabilities in conformity with the concepts of “exit price” and the fair value hierarchy as prescribed in ASC 820. All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values. There were no material changes to the valuation methods or assumptions used to determine fair values during the current period. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. We may from time to time be required to remeasure the carrying value of certain assets and liabilities to fair value on a nonrecurring basis. Such adjustments typically arise if we determine that certain of our assets are impaired. Financial Instruments Recorded at Fair Value The following table summarizes balances and the fair value hierarchy level of our financial instruments recorded at fair value on a recurring basis as of the dates presented (in millions):
____________________________________ (1) Includes strategic investments in privately-held entities over which we do not exercise significant influence or control and without readily determinable fair values. Amounts are recorded at cost less any impairment adjusted for observable price changes, if any. Disclosures of Fair Value of Financial Instruments Disclosures of fair value information about financial instruments, for which it is practicable to estimate that value, are required each reporting period in addition to any financial instruments carried at fair value on a recurring basis as prescribed by ASC Topic 825, Financial Instruments (“ASC 825”). In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Fair value for our outstanding debt obligations is estimated based on discounted future cash flows using rates currently available for debt of similar terms and maturity (Level 2). Our senior unsecured public notes are carried at the outstanding balance, net of unamortized bond discount and deferred costs, as of the end of the reporting period. The estimated fair value of our senior unsecured public notes was $410.7 million and $401.4 million as of February 29, 2024 and August 31, 2023, respectively. We had no short-term borrowings outstanding under our revolving credit facility as of February 29, 2024 and August 31, 2023. Such borrowings, if any, are variable-rate instruments that reset on a frequent short-term basis; therefore, we estimate that any outstanding carrying values of these instruments, which are equal to their face amounts, approximate their fair values. See Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for further details on our outstanding borrowings. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to us. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating our management of liquidity and other risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above.
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Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories include materials, direct labor, inbound freight, customs, duties, tariffs, and related manufacturing overhead. Inventories are stated on a first-in, first-out basis at the lower of cost and net realizable value and consist of the following as of the dates presented (in millions):
_______________________________________ (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, we do not believe the segregation of raw materials and work in process is meaningful information. We review inventory quantities on hand and record a provision for excess and obsolete inventory primarily based on estimated future demand and current market conditions. A significant change in customer demand and/or market conditions could render certain inventory obsolete and could have a material adverse impact on our operating results in the period the change occurs.
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Property, Plant, and Equipment |
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment consist of the following as of the dates presented (in millions):
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Through multiple acquisitions, we acquired definite-lived intangible assets consisting primarily of customer relationships, patented technology, distribution networks, and trademarks and trade names associated with specific products, which are amortized over their estimated useful lives. Indefinite-lived intangible assets consist of trade names that are expected to generate cash flows indefinitely. We recorded amortization expense for definite-lived intangible assets of $10.0 million and $9.3 million during the three months ended February 29, 2024 and February 28, 2023, respectively, and $19.9 million and $22.9 million during the six months ended February 29, 2024 and February 28, 2023, respectively. The following table summarizes the changes in the carrying amount of goodwill by segment during the periods presented (in millions):
Further discussion of goodwill and intangible assets is included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K.
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Other Current Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of the following as of the dates presented (in millions):
____________________________________ (1) Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K for additional information. (2) Refer to the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements for additional information. (3) Includes accruals for income, property, sales and use, and value-added taxes. (4) Refer to the Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for additional information.
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Debt and Lines of Credit |
6 Months Ended |
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Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Lines of Credit | Debt and Lines of Credit Long-term Debt On November 10, 2020, Acuity Brands Lighting, Inc., a wholly-owned operating subsidiary of Acuity Brands, Inc., issued $500.0 million aggregate principal amount of 2.150% senior unsecured notes due December 15, 2030 (the “Unsecured Notes”) at a price equal to 99.737% of their face value. Interest on the Unsecured Notes is paid semi-annually in arrears on June 15 and December 15 of each year. At issuance we recorded $4.8 million of deferred issuance costs related to the Unsecured Notes as a direct deduction from the face amount of the Unsecured Notes. These issuance costs are amortized over the 10-year term of the Unsecured Notes. The Unsecured Notes are fully and unconditionally guaranteed on a senior unsecured basis by Acuity Brands, Inc. and ABL IP Holding LLC, a wholly-owned subsidiary of Acuity Brands, Inc. Lines of Credit On June 30, 2022, we entered into a credit agreement (the “Credit Agreement”) with a syndicate of banks that provides us with a $600.0 million five-year unsecured revolving credit facility (the “Revolving Credit Facility”) with the ability to request an additional $400.0 million of borrowing capacity. We had no short-term borrowings outstanding under the Revolving Credit Facility at February 29, 2024 and August 31, 2023. We were in compliance with all financial covenants under the Credit Agreement as of the periods presented. At February 29, 2024, we had additional borrowing capacity under the Credit Agreement of $596.2 million under the most restrictive covenant in effect at the time, which represents the full amount of the Revolving Credit Facility less outstanding letters of credit of $3.8 million issued under the Revolving Credit Facility, primarily for securing collateral requirements under our casualty insurance premiums. None of our existing debt instruments include provisions that would require an acceleration of repayments based solely on changes in our credit ratings. Borrowings and repayments on our Revolving Credit Facility with terms of three months or less are reported on a net basis on our Consolidated Statements of Cash Flows.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, we are subject to the effects of certain contractual stipulations, events, transactions, and laws and regulations that may, at times, require the recognition of liabilities, such as those related to self-insurance estimated liabilities and claims, legal and contractual issues, environmental laws and regulations, guarantees, and indemnities. We establish estimated liabilities when the associated costs related to uncertainties or guarantees become probable and can be reasonably estimated. For the period ended February 29, 2024, no material changes have occurred in our estimated liabilities for self-insurance, litigation, environmental matters, guarantees and indemnities, or relevant events and circumstances, from those disclosed in the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements within our Form 10-K other than the items discussed below. Product Warranty and Recall Costs Our products generally have a standard warranty term of five years that assure our products comply with agreed upon specifications. We record an accrual for the estimated amount of future warranty costs in accordance with ASC Topic 450, Contingencies (“ASC 450”) when the related revenue is recognized. Estimated future warranty and recall costs are primarily based on historical experience of identified warranty and recall claims. Estimated costs related to product warranty and recall costs outside of our historical experience, which could include significant product recalls or formal campaigns soliciting repair or return of a product, are accrued when they are deemed to be probable and can be reasonably estimated. Any estimated or actual loss recoveries that offset our costs and payments are reflected as assets and included within Other current assets or Other long-term assets based on the timing of receipt of recovery. Recoveries are recorded net of allowances for credit losses. There can be no assurance that future warranty or recall costs will not exceed historical amounts, new technology products may not generate unexpected costs, and/or loss recoveries will not be fully collectible. If actual future warranty or recall costs exceed historical amounts or recoveries are no longer collectible, adjustments to our accruals and/or receivables may be warranted, which could have a material adverse impact on our results of operations and cash flows. Estimated liabilities for product warranty and recall costs are included in Other current liabilities or Other long-term liabilities on the Consolidated Balance Sheets based upon when we expect to settle the incurred warranty. The following table summarizes changes in the estimated liabilities for product warranty and recall costs during the periods presented (in millions):
Data Security Incidents On December 14, 2022, a former associate filed a putative class action complaint against the Company in the United States District Court for the Northern District of Georgia on behalf of all persons whose personal information was compromised as a result of data security incidents we experienced in October 2020 and/or December 2021. On January 25, 2023, a second putative class action complaint was filed in the same venue by two other former associates. Both complaints contained similar allegations and claimed that the Company failed to exercise reasonable caution in securing and safeguarding associate information. On that basis, the complaints asserted claims for negligence, breach of contract, breach of implied contract, unjust enrichment, breach of fiduciary duty, invasion of privacy, and breach of confidence. The plaintiffs sought class certification, monetary damages, certain injunctive relief regarding our data-security measures, additional credit-monitoring services, other equitable relief (including disgorgement), attorneys’ fees, costs, and pre- and post-judgment interest. On December 1, 2023, the parties reached a proposed settlement and release of all claims in the class action and executed a Settlement Agreement and Release, which is pending approval from the State Court of Fulton County, Georgia. The impact of the settlement is not material. We have received inquiries from, and it is also possible that investigations or other actions may be taken by, state and/or federal agencies regarding the data security incidents and related data privacy matters. For these reasons, we are currently unable to reasonably estimate the possible losses or a range of possible losses resulting from the matters described above. We have insurance, subject to certain terms and conditions, for these types of matters. Litigation We are subject to various other legal claims arising in the normal course of business, including patent infringement, employment matters, and product liability claims. Based on information currently available, it is the opinion of management that the ultimate resolution of pending and threatened legal proceedings will not have a material adverse effect on our financial condition, results of operations, or cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of any such matters, if unfavorable, could have a material adverse effect on our financial condition, results of operations, or cash flows in future periods. We establish estimated liabilities for legal claims when associated costs become probable and can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher than the amounts accrued for such claims. However, we cannot make a meaningful estimate of actual costs to be incurred that could possibly be higher or lower than the accrued amounts.
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Changes in Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Stockholders' Equity | Changes in Stockholders' Equity The following tables summarize changes in the components of stockholders' equity for the periods presented (in millions):
(1) Share activity and balances above are calculated using rounded numbers.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition We recognize revenue when we transfer control of goods and services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for goods and services and is recognized net of allowances for rebates, sales incentives, product returns, and discounts to customers. We allocate the expected consideration to be collected to each distinct performance obligation identified in a sale based on its standalone selling price. Sales and use taxes collected on behalf of governmental authorities are excluded from revenues. Further details regarding revenue recognition are included within the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Contract Balances Our rights related to collections from customers are unconditional and are reflected within Accounts receivable on the Consolidated Balance Sheets at net realizable value. Further details regarding our method for developing our estimate of expected credit losses over the contractual term of our receivables are included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. We do not have any other significant contract assets. Contract liabilities arise when we receive cash or an unconditional right to collect cash prior to the transfer of control of goods or services. The amount of transaction price from contracts with customers allocated to our contract liabilities consists of the following as of the dates presented (in millions):
Current deferred revenues primarily consist of professional service and service-type warranty fees collected prior to performing the related service as well as software licenses and are included within Other current liabilities on the Consolidated Balance Sheets. These services are expected to be performed within one year. Revenue recognized from beginning balances of contract liabilities during the six months ended February 29, 2024 totaled $6.9 million. Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets. Unsatisfied performance obligations that do not represent contract liabilities are expected to be satisfied within one year from February 29, 2024 and consist primarily of orders for physical goods that have not yet been shipped. Disaggregated Revenues Our ABL segment's lighting and lighting controls are sold primarily through independent sales agents who cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, directly to large corporate accounts, and through other distribution methods, including directly to OEM customers. ISG sells predominantly to system integrators. The following table shows revenue from contracts with customers by sales channel and reconciles to our segment information for the periods presented (in millions):
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Share-based Payments |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments | Share-based Payments We account for share-based payments through the measurement and recognition of compensation expense for share-based payment awards made to employees and directors over the related requisite service period, including restricted stock, performance stock units, and stock options (all part of our equity incentive plan), as well as stock units representing certain deferrals into our director deferred compensation plan or our supplemental deferred savings plan. The following table presents share-based payment expense for the periods presented (in millions):
We recognized excess tax benefits of $1.5 million and $1.7 million related to share-based payment awards during the six months ended February 29, 2024 and February 28, 2023, respectively. Further details regarding our share-based payments are included within the Share-based Payments footnote of the Notes to Consolidated Financial Statements within our Form 10-K.
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Pension Plans |
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Pension Plans | Pension Plans We have several pension plans, both qualified and non-qualified, covering certain hourly and salaried employees. Benefits paid under these plans are based generally on employees’ years of service and/or compensation during the final years of employment. We make at least the minimum annual contributions to the plans to the extent indicated by actuarial valuations and statutory requirements. Plan assets are invested primarily in fixed income and equity securities. Service cost of net periodic pension cost is allocated between Cost of products sold and Selling, distribution, and administrative expenses in the Consolidated Statements of Comprehensive Income based on the nature of the employee's services. All other components of net periodic pension cost are included within Miscellaneous expense, net in the Consolidated Statements of Comprehensive Income. Net periodic pension cost included the following components before tax for the periods presented (in millions):
Further details regarding our pension plans are included within the Pension and Defined Contribution Plans footnote of the Notes to Consolidated Financial Statements within our Form 10-K.
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Special Charges |
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Feb. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Special Charges | Special Charges We recognized no special charges during the first six months of fiscal 2024. During the first quarter of fiscal 2023, we recognized $6.9 million within Special charges on the Consolidated Statements of Comprehensive Income primarily for impairments of operating lease right-of-use assets for $4.3 million associated with our previously owned Sunoptics prismatic skylights business that were not transferred in connection with the sale. We additionally recognized associate severance and other costs totaling $2.6 million primarily in connection with the Sunoptics divestiture.
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Other Expense |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Expense | Other Expense The following table summarizes the components of other expense (income), net for the periods presented (in millions):
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed similarly but reflects the potential dilution that would occur if dilutive options were exercised, all unvested share-based payment awards were vested, and other distributions related to deferred stock agreements were incurred. Common stock equivalents are calculated using the treasury stock method. The dilutive effects of share-based payment awards subject to market and/or performance conditions that were not met during the period are excluded from the computation of diluted earnings per share. The following table calculates basic earnings per common share and diluted earnings per common share for the periods presented (in millions, except per share data):
(1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding. Stock options, performance stock awards, and restricted stock awards that were excluded from the diluted earnings per share calculation as the effect of inclusion would have been antidilutive for three and six months ended February 29, 2024 and February 28, 2023 were immaterial. Further discussion of our share-based payment awards is included within the Common Stock and Related Matters and Share-based Payments footnotes of the Notes to Consolidated Financial Statements within our Form 10-K.
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Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income Comprehensive income represents a measure of all changes in equity that result from recognized transactions and other economic events other than transactions with owners in their capacity as owners. Comprehensive income includes our net income as well as other comprehensive income (loss) items, which are comprised of foreign currency translation and pension adjustments. The following table presents the changes in each component of accumulated other comprehensive income (loss) net of tax during the periods presented (in millions):
(1) The before tax amounts of the defined benefit pension plan items are included in net periodic pension cost. See the Pension and Defined Contribution Plans footnote of the Notes to Consolidated Financial Statements for additional details. The following table summarizes the tax expense or benefit allocated to each component of other comprehensive loss for the periods presented (in millions):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We report our financial results of operations in two reportable segments, ABL and ISG, consistent with how our chief operating decision maker currently evaluates operating results, assesses performance, and allocates resources within the Company. The accounting policies of our reportable segments are the same as those described in the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Corporate expenses that are primarily administrative in function and benefit the Company on an entity-wide basis are not allocated to segments. These include expenses related to governance, policy setting, compliance, and certain other shared services functions. Additionally, net interest expense, net miscellaneous expense, and income tax expense are not allocated to segments. We recorded no special charges during the three and six months ended February 29, 2024. Special charges during the six months ended February 28, 2023 of $6.9 million pertained to the ABL segment. The following table presents financial information by operating segment for the periods presented (in millions):
____________________________ (1) These amounts represent intersegment sales. Profit on these sales eliminates within gross profit on a consolidated basis. The following table reconciles operating profit by segment to income before income taxes for the periods presented (in millions):
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
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Feb. 29, 2024 |
Nov. 30, 2023 |
Feb. 28, 2023 |
Nov. 30, 2022 |
Feb. 29, 2024 |
Feb. 28, 2023 |
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Pay vs Performance Disclosure | ||||||
Net income | $ 89.2 | $ 100.6 | $ 83.2 | $ 74.9 | $ 189.8 | $ 158.1 |
Insider Trading Arrangements |
3 Months Ended |
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Feb. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Policies (Policies) |
6 Months Ended |
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Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
ABL Segment and ISG Segment | ABL Segment Our ABL strategy is to increase product vitality, improve service levels, use technology to improve and differentiate both our products and our services, and drive productivity. ABL's portfolio of lighting solutions includes commercial, architectural, and specialty lighting in addition to lighting controls and components that can be combined to create integrated lighting controls systems. We offer devices such as luminaires that predominantly utilize light emitting diode (“LED”) technology designed to optimize energy efficiency and comfort for various indoor and outdoor applications. ABL's portfolio of products includes but is not limited to the following brands: A-LightTM, AculuxTM, American Electric Lighting®, CycloneTM, Dark to Light®, eldoLED®, Eureka®, Gotham®, Healthcare Lighting®, Holophane®, Hydrel®, IndyTM, IOTA®, Juno®, Lithonia Lighting®, Luminaire LEDTM, Luminis®, Mark Architectural LightingTM, nLight®, OPTOTRONIC®, Peerless®, RELOC® Wiring Solutions, and Sensor Switch®. Principal customers of ABL include electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturer (“OEM”) customers, digital retailers, lighting showrooms, and energy service companies. ABL's customers are located in North America and select international markets that serve new construction, renovation and retrofit, and maintenance and repair applications. ABL's lighting and lighting controls solutions are sold primarily through a network of independent sales agencies that cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, directly to large corporate accounts, and directly to OEM customers. Products are delivered directly from our manufacturing facilities or through a network of distribution centers, regional warehouses, and commercial warehouses using both common carriers and an internally-managed truck fleet. We market ABL's product portfolio and service capabilities to customers and/or end users in multiple channels through a broad spectrum of marketing and promotional methods, including direct customer contact, trade shows, on-site training, print and digital advertising in industry publications, product brochures, and other literature, as well as through digital marketing and social media. ABL operates training and education facilities in several locations throughout North America and Europe designed to enhance the lighting knowledge of customers and industry professionals. ISG Segment Our ISG strategy is to make spaces smarter, safer, and greener by connecting the edge to the cloud. ISG offers building management solutions and building management software. ISG's building management solutions include products for controlling heating, ventilation, air conditioning (“HVAC”), lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems. ISG's intelligent building software enhances the occupant experience, improves building system management, and automates labor intensive tasks while delivering operational energy efficiency and cost reductions. Through a connected and converged building system architecture, ISG's software delivers different applications, allows clients to upgrade over time with natural refresh cycles, and deploys new capabilities. Customers of ISG primarily include system integrators as well as retail stores, airports, and enterprise campuses throughout North America and select international locations. ISG products and solutions are marketed under multiple brand names, including but not limited, to Atrius®, Distech Controls®, and KE2 Therm Solutions®.
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Basis of Presentation | Basis of Presentation We have prepared the Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) to present the financial position, results of operations, and cash flows of Acuity Brands, Inc. and its wholly-owned subsidiaries. These unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly our consolidated financial position as of February 29, 2024, our consolidated comprehensive income for the three and six months ended February 29, 2024 and February 28, 2023, and our consolidated cash flows for the six months ended February 29, 2024 and February 28, 2023. Certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. However, we believe that the disclosures included herein are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited consolidated financial statements as of and for the three years in the period ended August 31, 2023 and notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on October 26, 2023 (File No. 001-16583) (“Form 10-K”). Our business exhibits some seasonality, with net sales being affected by weather and seasonal demand on construction and installation programs, particularly during the winter months, as well as the annual budget cycles of major customers. Historically, with certain exceptions, we have experienced our highest sales in the last two quarters of each fiscal year due to these factors.
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Use of Estimates | Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.
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Reclassifications | Reclassifications We may reclassify certain prior period amounts to conform to the current year presentation. No material reclassifications occurred during the current period.
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New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Yet to Be Adopted Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, or our fiscal 2026. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) In November 2023, the FASB issued ASU 2023-07, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023 or our fiscal 2025. Interim disclosures are required for periods within fiscal years beginning after December 15, 2024, or our fiscal 2026. Retrospective application is required for all prior periods presented, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable.
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Fair Value Measurement | We utilize valuation methodologies to determine the fair values of our financial assets and liabilities in conformity with the concepts of “exit price” and the fair value hierarchy as prescribed in ASC 820. All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values. There were no material changes to the valuation methods or assumptions used to determine fair values during the current period. |
Fair Value Transfers | No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. We may from time to time be required to remeasure the carrying value of certain assets and liabilities to fair value on a nonrecurring basis. Such adjustments typically arise if we determine that certain of our assets are impaired. |
Revenue Recognition | We recognize revenue when we transfer control of goods and services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for goods and services and is recognized net of allowances for rebates, sales incentives, product returns, and discounts to customers. We allocate the expected consideration to be collected to each distinct performance obligation identified in a sale based on its standalone selling price. Sales and use taxes collected on behalf of governmental authorities are excluded from revenues. Further details regarding revenue recognition are included within the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Contract Balances Our rights related to collections from customers are unconditional and are reflected within Accounts receivable on the Consolidated Balance Sheets at net realizable value. Further details regarding our method for developing our estimate of expected credit losses over the contractual term of our receivables are included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. We do not have any other significant contract assets. Contract liabilities arise when we receive cash or an unconditional right to collect cash prior to the transfer of control of goods or services. Current deferred revenues primarily consist of professional service and service-type warranty fees collected prior to performing the related service as well as software licenses and are included within Other current liabilities on the Consolidated Balance Sheets. These services are expected to be performed within one year. Revenue recognized from beginning balances of contract liabilities during the six months ended February 29, 2024 totaled $6.9 million. Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets. February 29, 2024 and consist primarily of orders for physical goods that have not yet been shipped.Disaggregated Revenues Our ABL segment's lighting and lighting controls are sold primarily through independent sales agents who cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, directly to large corporate accounts, and through other distribution methods, including directly to OEM customers. ISG sells predominantly to system integrators.
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Fair Value Measurements (Tables) |
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | The following table summarizes balances and the fair value hierarchy level of our financial instruments recorded at fair value on a recurring basis as of the dates presented (in millions):
____________________________________ (1) Includes strategic investments in privately-held entities over which we do not exercise significant influence or control and without readily determinable fair values. Amounts are recorded at cost less any impairment adjusted for observable price changes, if any.
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Inventories (Tables) |
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of Inventory | Inventories include materials, direct labor, inbound freight, customs, duties, tariffs, and related manufacturing overhead. Inventories are stated on a first-in, first-out basis at the lower of cost and net realizable value and consist of the following as of the dates presented (in millions):
_______________________________________ (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, we do not believe the segregation of raw materials and work in process is meaningful information.
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Property, Plant, and Equipment (Tables) |
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant, and equipment consist of the following as of the dates presented (in millions):
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Goodwill and Intangible Assets (Tables) |
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill by segment during the periods presented (in millions):
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Other Current Liabilities (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Liabilities | Other current liabilities consist of the following as of the dates presented (in millions):
____________________________________ (1) Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K for additional information. (2) Refer to the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements for additional information. (3) Includes accruals for income, property, sales and use, and value-added taxes. (4) Refer to the Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for additional information.
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Commitments and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | The following table summarizes changes in the estimated liabilities for product warranty and recall costs during the periods presented (in millions):
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Changes in Stockholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Stockholders' Equity | The following tables summarize changes in the components of stockholders' equity for the periods presented (in millions):
(1) Share activity and balances above are calculated using rounded numbers.
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contract Balances | The amount of transaction price from contracts with customers allocated to our contract liabilities consists of the following as of the dates presented (in millions):
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Schedule of Disaggregated Revenues | The following table shows revenue from contracts with customers by sales channel and reconciles to our segment information for the periods presented (in millions):
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Share-based Payments (Tables) |
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Schedule of Components of Share-Based Payment Expense | The following table presents share-based payment expense for the periods presented (in millions):
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Pension Plans (Tables) |
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Pension Cost | Net periodic pension cost included the following components before tax for the periods presented (in millions):
|
Other Expense (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Expenses | The following table summarizes the components of other expense (income), net for the periods presented (in millions):
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table calculates basic earnings per common share and diluted earnings per common share for the periods presented (in millions, except per share data):
(1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding.
|
Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss) net of tax during the periods presented (in millions):
(1) The before tax amounts of the defined benefit pension plan items are included in net periodic pension cost. See the Pension and Defined Contribution Plans footnote of the Notes to Consolidated Financial Statements for additional details.
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Schedule of Tax Expense or Benefit Allocated to Each Component of Other Comprehensive Loss | The following table summarizes the tax expense or benefit allocated to each component of other comprehensive loss for the periods presented (in millions):
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table presents financial information by operating segment for the periods presented (in millions):
____________________________ (1) These amounts represent intersegment sales. Profit on these sales eliminates within gross profit on a consolidated basis.
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Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles operating profit by segment to income before income taxes for the periods presented (in millions):
|
Description of Business and Basis of Presentation (Details) |
6 Months Ended |
---|---|
Feb. 29, 2024
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Fair Value Measurements - Schedule of Carrying Value and Estimated Fair Value of Financial Instruments (Details) - Fair value measured on recurring basis - USD ($) $ in Millions |
Feb. 29, 2024 |
Aug. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 586.7 | $ 405.5 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 578.9 | 397.9 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other financial instruments | 0.6 | 0.4 |
Level 1,2 and 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets in fair value hierarchy | 579.5 | 398.3 |
Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 7.2 | $ 7.2 |
Fair Value Measurements - Narrative (Details) - USD ($) |
Feb. 29, 2024 |
Aug. 31, 2023 |
---|---|---|
Line of Credit | Credit facility | Revolving Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term borrowings outstanding | $ 0 | $ 0 |
Approximate fair value of short term borrowings | 0 | 0 |
Estimate of Fair Value Measurement | Unsecured debt | 2.150% Senior Unsecured Notes Due December 2030 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying and estimated fair values of financial instruments | $ 410,700,000 | $ 401,400,000 |
Inventories (Details) - USD ($) $ in Millions |
Feb. 29, 2024 |
Aug. 31, 2023 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw materials, supplies, and work in process | $ 228.1 | $ 214.0 |
Finished goods | 179.6 | 180.3 |
Inventories excluding reserves | 407.7 | 394.3 |
Less: Reserves | (31.9) | (25.8) |
Total inventories | $ 375.8 | $ 368.5 |
Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Millions |
Feb. 29, 2024 |
Aug. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment, at cost | $ 981.2 | $ 961.8 |
Less: Accumulated depreciation and amortization | (685.2) | (664.2) |
Property, plant, and equipment, net | 296.0 | 297.6 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment, at cost | 23.0 | 23.0 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment, at cost | 214.7 | 210.9 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment, at cost | $ 743.5 | $ 727.9 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 10.0 | $ 9.3 | $ 19.9 | $ 22.9 |
Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
|
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,097.9 | $ 1,084.3 |
Derecognitions for divestitures | (0.7) | |
Foreign currency translation adjustments | (0.8) | (3.3) |
Goodwill, ending balance | 1,097.1 | 1,080.3 |
ABL | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,014.4 | 1,014.2 |
Derecognitions for divestitures | (0.7) | |
Foreign currency translation adjustments | (0.6) | (1.2) |
Goodwill, ending balance | 1,013.8 | 1,012.3 |
ISG | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 83.5 | 70.1 |
Derecognitions for divestitures | 0.0 | |
Foreign currency translation adjustments | (0.2) | (2.1) |
Goodwill, ending balance | $ 83.3 | $ 68.0 |
Other Current Liabilities (Details) - USD ($) $ in Millions |
Feb. 29, 2024 |
Aug. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Customer incentive programs | $ 19.8 | $ 31.6 |
Refunds to customers | 24.8 | 25.6 |
Deferred revenues | 16.2 | 14.1 |
Sales commissions | 28.0 | 35.7 |
Freight costs | 11.2 | 15.0 |
Warranty and recall costs | 31.4 | 22.8 |
Tax-related items | 5.7 | 9.2 |
Interest on long-term debt | 2.3 | 2.3 |
Other | 32.6 | 30.4 |
Total other current liabilities | $ 172.0 | $ 186.7 |
Debt and Lines of Credit (Details) - USD ($) |
Jun. 30, 2022 |
Nov. 10, 2020 |
Feb. 29, 2024 |
Aug. 31, 2023 |
---|---|---|---|---|
Unsecured debt | 2.150% Senior Unsecured Notes Due December 2030 | Acuity Brands Lighting, Inc. | ||||
Line of Credit Facility [Abstract] | ||||
Aggregate principal amount | $ 500,000,000 | |||
Interest rate (as percent) | 2.15% | |||
Debt issuance price as a percentage of face value (as percent) | 99.737% | |||
Deferred issuance costs | $ 4,800,000 | |||
Term of instrument | 10 years | |||
Line of Credit | Revolving Credit Facility | Credit facility | ||||
Line of Credit Facility [Abstract] | ||||
Term of instrument | 5 years | |||
Executed revolving credit facility | $ 600,000,000 | |||
Line of credit facility, additional borrowing capacity | $ 400,000,000 | |||
Short-term borrowings outstanding | $ 0 | $ 0 | ||
Additional borrowing capacity under revolving credit facility | 596,200,000 | |||
Letters of Credit | Revolving Credit Facility | Credit facility | ||||
Line of Credit Facility [Abstract] | ||||
Outstanding letters of credit | $ 3,800,000 |
Commitments and Contingencies (Details) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jan. 25, 2023
former_associate
|
Feb. 29, 2024
USD ($)
|
Feb. 28, 2023
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | |||
Standard warranty term (in years) | 5 years | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $ 31.6 | $ 27.3 | |
Warranty and recall costs | 28.7 | 19.1 | |
Payments and other deductions | (20.2) | (18.4) | |
Ending balance | $ 40.1 | $ 28.0 | |
Data Security Incidents | |||
Loss Contingencies [Line Items] | |||
Number of former associates that filed a class action lawsuit | former_associate | 2 |
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Millions |
Feb. 29, 2024 |
Aug. 31, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Current deferred revenues | $ 16.2 | $ 14.1 |
Non-current deferred revenues | $ 44.1 | $ 47.6 |
Revenue Recognition - Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Feb. 29, 2024
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Timing of revenue recognition | Current deferred revenues primarily consist of professional service and service-type warranty fees collected prior to performing the related service as well as software licenses and are included within Other current liabilities on the Consolidated Balance Sheets. These services are expected to be performed within one year. Revenue recognized from beginning balances of contract liabilities during the six months ended February 29, 2024 totaled $6.9 million.Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets. |
Revenue recognized from beginning balances of contract liabilities | $ 6.9 |
Share-based Payments - Schedule of Components of Share-Based Payment Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Share-based payment expense | $ 12.0 | $ 11.3 | $ 23.1 | $ 22.0 |
Share-based Payments - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||
Excess tax benefits recognized related to share-based awards | $ 1.5 | $ 1.7 |
Pension Plans (Details) - Pension Plan - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 1.2 | $ 1.2 | $ 2.3 | $ 2.3 |
Interest cost | 2.4 | 2.3 | 4.9 | 4.5 |
Expected return on plan assets | (2.2) | (2.4) | (4.4) | (4.8) |
Amortization of prior service cost | 0.0 | 0.6 | 0.0 | 1.3 |
Recognized actuarial loss | 0.8 | 0.7 | 1.6 | 1.5 |
Net periodic pension cost | $ 2.2 | $ 2.4 | $ 4.4 | $ 4.8 |
Special Charges (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
Nov. 30, 2022 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Special charges | $ 0.0 | $ 0.0 | $ 6.9 | $ 0.0 | $ 6.9 |
Operating lease, impairment loss | 4.3 | ||||
Employee Severance and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Special charges | $ 2.6 |
Other Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|
Interest (income) expense, net: | ||||
Interest expense | $ 6.5 | $ 7.6 | $ 12.9 | $ 15.5 |
Interest income | (6.6) | (1.9) | (12.1) | (3.2) |
Interest (income) expense, net | (0.1) | 5.7 | 0.8 | 12.3 |
Miscellaneous expense (income), net: | ||||
Non-service components of net periodic pension cost | 1.0 | 1.2 | 2.1 | 2.5 |
Foreign currency transaction losses (gains) | 0.2 | (3.8) | 0.8 | (6.5) |
Loss on sale of a business | 0.0 | 0.0 | 0.0 | 11.2 |
Other items | (0.6) | (1.1) | (1.2) | (1.8) |
Miscellaneous expense (income), net | 0.6 | (3.7) | 1.7 | 5.4 |
Total other expense | $ 0.5 | $ 2.0 | $ 2.5 | $ 17.7 |
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Feb. 29, 2024 |
Nov. 30, 2023 |
Feb. 28, 2023 |
Nov. 30, 2022 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|||
Earnings Per Share [Abstract] | ||||||||
Net income | $ 89.2 | $ 100.6 | $ 83.2 | $ 74.9 | $ 189.8 | $ 158.1 | ||
Basic weighted average shares outstanding (in shares) | [1] | 30,864 | 32,048 | 30,940 | 32,178 | |||
Common stock equivalents (in shares) | 535 | 338 | 448 | 367 | ||||
Diluted weighted average shares outstanding (in shares) | [1] | 31,399 | 32,386 | 31,388 | 32,545 | |||
Basic earnings per share (in dollars per share) | [1] | $ 2.89 | $ 2.60 | $ 6.13 | $ 4.91 | |||
Diluted earnings per share (in dollars per share) | [1] | $ 2.84 | $ 2.57 | $ 6.05 | $ 4.86 | |||
|
Segment Information - Schedule of Operating Segment (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Feb. 29, 2024
USD ($)
|
Feb. 28, 2023
USD ($)
|
Nov. 30, 2022
USD ($)
|
Feb. 29, 2024
USD ($)
segment
|
Feb. 28, 2023
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Special charges | $ 0.0 | $ 0.0 | $ 6.9 | $ 0.0 | $ 6.9 |
Net sales | 905.9 | 943.6 | 1,840.6 | 1,941.5 | |
Operating profit: | 118.1 | 111.5 | 251.0 | 220.4 | |
Operating Segments | ABL | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 843.5 | 890.8 | 1,719.9 | 1,837.9 | |
Operating profit: | 126.0 | 123.6 | 269.8 | 241.7 | |
Operating Segments | ISG | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 68.1 | 58.2 | 132.3 | 115.0 | |
Operating profit: | 9.1 | 6.3 | 14.4 | 14.0 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (5.7) | (5.4) | (11.6) | (11.4) | |
Unallocated corporate amounts | |||||
Segment Reporting Information [Line Items] | |||||
Operating profit: | $ (17.0) | $ (18.4) | $ (33.2) | $ (35.3) |
Segment Reporting - Schedule of Income Before Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|
Segment Reporting Information [Line Items] | ||||
Operating profit | $ 118.1 | $ 111.5 | $ 251.0 | $ 220.4 |
Interest (income) expense, net | (0.1) | 5.7 | 0.8 | 12.3 |
Miscellaneous expense (income), net | 0.6 | (3.7) | 1.7 | 5.4 |
Income before income taxes | 117.6 | 109.5 | 248.5 | 202.7 |
Operating Segments | ABL | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 126.0 | 123.6 | 269.8 | 241.7 |
Operating Segments | ISG | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 9.1 | 6.3 | 14.4 | 14.0 |
Unallocated corporate amounts | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | $ (17.0) | $ (18.4) | $ (33.2) | $ (35.3) |
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