(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Page | |||||
PART I — FINANCIAL INFORMATION | |||||
Thermon Group Holdings, Inc. and its Consolidated Subsidiaries | |||||
PART II — OTHER INFORMATION | |||||
EX-10.1 | |||||
EX-31.1 | |||||
EX-31.2 | |||||
EX-32.1 | |||||
EX-32.2 | |||||
December 31, 2020 | March 31, 2020 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowances of $1,095 and $834 as of December 31, 2020 and March 31, 2020, respectively | |||||||||||
Inventories, net | |||||||||||
Contract assets | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Income tax receivable | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net of depreciation and amortization of $53,821 and $43,550 as of December 31, 2020 and March 31, 2020, respectively | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deferred income taxes | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Current portion of long-term debt | |||||||||||
Contract liabilities | |||||||||||
Lease liabilities | |||||||||||
Income taxes payable | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current maturities and deferred debt issuance costs and debt discounts of $3,719 and $4,447 as of December 31, 2020 and March 31, 2020, respectively | |||||||||||
Deferred income taxes | |||||||||||
Non-current lease liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Commitments and contingencies (Note 11) | |||||||||||
Equity | |||||||||||
Common stock: $.001 par value; 150,000,000 authorized; 33,186,218 and 32,916,818 shares issued and outstanding at December 31, 2020 and March 31, 2020, respectively | |||||||||||
Preferred stock: $.001 par value; 10,000,000 authorized; no shares issued and outstanding | |||||||||||
Additional paid in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | ||||||||||||||||||||
Sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Marketing, general and administrative and engineering | |||||||||||||||||||||||
Amortization of intangible assets | |||||||||||||||||||||||
Restructuring and other charges/(income) | |||||||||||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||
Other income/(expenses): | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income/(expense) | ( | ( | |||||||||||||||||||||
Income (loss) before provision for income taxes | |||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) attributable to non-controlling interests | ( | ||||||||||||||||||||||
Net income (loss) available to Thermon Group Holdings, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||
Net income (loss) available to Thermon Group Holdings, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||||||||
Other miscellaneous income/(loss) | ( | ( | |||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Net income (loss) per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | |||||||||||||||||||||||
Weighted-average shares used in computing net income per common share: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Common Stock Outstanding | Common Stock | Additional Paid-in Capital | Retained Earnings (Loss) | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||
Balances at March 31, 2020 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Issuance of common stock in exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to employees | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to executive officers | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to directors | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Repurchase of employee stock units on vesting | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Net loss available to Thermon Group Holdings, Inc. | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Issuance of common stock in exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to employees | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to executive officers | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to directors | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Repurchase of employee stock units on vesting | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Net income available to Thermon Group Holdings, Inc. | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Balances at September 30, 2020 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Issuance of common stock in exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to employees | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to directors | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Repurchase of employee stock units on vesting | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Net income available to Thermon Group Holdings, Inc. | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other | — | — | 8 | — | (160) | (152) | |||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | $ | $ | $ | ( | $ |
Common Stock Outstanding | Common Stock | Additional Paid-in Capital | Retained Earnings | Non-controlling Interests | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2019 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to employees | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to executive officers | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to directors | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of employee stock units on vesting | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Net income available to Thermon Group Holdings, Inc. | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Remeasurement of non-controlling interest | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Loss attributable to non-controlling interests | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2019 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to employees | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to executive officers | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to directors | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of employee stock units on vesting | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Net income available to Thermon Group Holdings, Inc. | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Purchase of shares from non-controlling interests | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Remeasurement of non-controlling interest | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||
Income attributable to non-controlling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2019 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to employees | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock as deferred compensation to directors | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of employee stock units on vesting | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Net income available to Thermon Group Holdings, Inc. | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | $ | $ | $ | $ | $ | ( | $ |
Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | ||||||||||
Operating activities | |||||||||||
Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of deferred debt issuance costs | |||||||||||
Stock compensation expense | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Release of reserve for uncertain tax positions, net | ( | ||||||||||
Loss on long-term cross currency swap | |||||||||||
Remeasurement gain on intercompany balances | ( | ( | |||||||||
Loss on sale of business, net of cash surrendered | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Inventories | ( | ||||||||||
Contract assets | ( | ||||||||||
Other current and non-current assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Accrued liabilities and non-current liabilities | ( | ( | |||||||||
Income taxes payable and receivable | ( | ||||||||||
Net cash provided by operating activities | $ | $ | |||||||||
Investing activities | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Sale of rental equipment | |||||||||||
Proceeds from sale of property, plant and equipment | |||||||||||
Net cash used in investing activities | $ | ( | $ | ( | |||||||
Financing activities | |||||||||||
Proceeds from revolving credit facility | |||||||||||
Payments on long-term debt and revolving credit facility | ( | ( | |||||||||
Purchase of shares from non-controlling interests | ( | ||||||||||
Proceeds from exercise of stock options | |||||||||||
Repurchase of employee stock units on vesting | ( | ( | |||||||||
Payments on finance leases | ( | ( | |||||||||
Net cash used in financing activities | $ | ( | $ | ( | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | |||||||||||
Change in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash included in prepaid expenses and other current assets | |||||||||||
Restricted cash included in other long-term assets | |||||||||||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ | $ |
December 31, 2020 | March 31, 2020 | ||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | Valuation Technique | |||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Outstanding principal amount of senior secured credit facility | $ | $ | $ | $ | Level 2 - Market Approach | ||||||||||||||||||||||||
Notional amount of foreign currency forward contracts by currency | |||||||||||
December 31, 2020 | March 31, 2020 | ||||||||||
Russian Ruble | $ | $ | |||||||||
Euro | |||||||||||
Canadian Dollar | |||||||||||
South Korean Won | |||||||||||
Mexican Peso | |||||||||||
Australian Dollar | |||||||||||
Great Britain Pound | |||||||||||
Total notional amounts | $ | $ |
December 31, 2020 | March 31, 2020 | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||
Foreign currency forward contracts | $ | $ | $ | $ |
Lease Term and Discount Rate | December 31, 2020 | March 31, 2020 | ||||||||||||
Weighted average remaining lease term: | ||||||||||||||
Operating | ||||||||||||||
Finance | ||||||||||||||
Weighted average discount rate: | ||||||||||||||
Operating | % | % | ||||||||||||
Finance | % | % |
Assets | Classification | December 31, 2020 | March 31, 2020 | |||||||||||||||||
Operating | Operating lease right-of-use assets | $ | $ | |||||||||||||||||
Finance | Property, plant and equipment | |||||||||||||||||||
Total right-of-use assets | $ | $ | ||||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating | Lease liabilities | $ | $ | |||||||||||||||||
Finance | Lease liabilities | |||||||||||||||||||
Non-current | ||||||||||||||||||||
Operating | Non-current lease liabilities | |||||||||||||||||||
Finance | Non-current lease liabilities | |||||||||||||||||||
Total lease liabilities | $ | $ |
Lease expense | Classification | Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | |||||||||||||||||||||||||||
Operating lease expense | Marketing, general and administrative and engineering | $ | $ | $ | $ | |||||||||||||||||||||||||||
Finance lease expense: | ||||||||||||||||||||||||||||||||
Amortization of ROU assets | Marketing, general and administrative and engineering | |||||||||||||||||||||||||||||||
Interest expense on finance lease liabilities | Interest expense | |||||||||||||||||||||||||||||||
Short-term lease expense | Marketing, general and administrative and engineering | |||||||||||||||||||||||||||||||
Net lease expense | $ | $ | $ | $ |
Cash paid for amounts included in the measurement of lease liabilities | Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | ||||||||||||
Operating cash used for operating leases | $ | $ | ||||||||||||
Operating cash flows used for finance leases | ||||||||||||||
Financing cash flows used for finance leases | ||||||||||||||
Future Lease Payments | Operating Leases | Finance Leases | ||||||||||||
Twelve months ending December 31, | ||||||||||||||
2021 | $ | $ | ||||||||||||
2022 | ||||||||||||||
2023 | ||||||||||||||
2024 | ||||||||||||||
2025 | ||||||||||||||
Thereafter | ||||||||||||||
Total lease payments | $ | $ | ||||||||||||
Less imputed interest | ( | ( | ||||||||||||
Total lease liability | $ | $ |
Three Months Ended December 31, 2020 | Nine Months Ended December 31, 2020 | |||||||||||||
United States and Latin America | $ | $ | ||||||||||||
Canada | ||||||||||||||
Europe, Middle East and Africa | ||||||||||||||
Asia-Pacific | ||||||||||||||
$ | $ |
Nine Months Ended December 31, 2020 | ||||||||
Beginning balance | $ | |||||||
Costs incurred | ||||||||
Less cash payments | ( | |||||||
Ending balance | $ |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | ||||||||||||||||||||
Basic net income (loss) per common share | |||||||||||||||||||||||
Net income (loss) available to Thermon Group Holdings, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Basic net income (loss) per common share | $ | $ | $ | $ |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | |||||||||||||||||||||||
Diluted net income (loss) per common share | ||||||||||||||||||||||||||
Net income (loss) available to Thermon Group Holdings, Inc. | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average common shares outstanding | ||||||||||||||||||||||||||
Common share equivalents: | ||||||||||||||||||||||||||
Stock options | ||||||||||||||||||||||||||
Restricted and performance stock units | ||||||||||||||||||||||||||
Weighted average shares outstanding – dilutive (1) | ||||||||||||||||||||||||||
Diluted net income (loss) per common share | $ | $ | $ | $ |
December 31, 2020 | March 31, 2020 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Valuation reserves | ( | ( | |||||||||
Inventories, net | $ | $ |
United States and Latin America | Canada | Europe, Middle East and Africa | Asia-Pacific | Total | |||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Foreign currency translation impact | |||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | $ | $ | $ | $ |
Gross Carrying Amount at December 31, 2020 | Accumulated Amortization | Net Carrying Amount at December 31, 2020 | Gross Carrying Amount at March 31, 2020 | Accumulated Amortization | Net Carrying Amount at March 31, 2020 | |||||||||||||||||||||||||||||||||
Products | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Trademarks | ||||||||||||||||||||||||||||||||||||||
Developed technology | ||||||||||||||||||||||||||||||||||||||
Customer relationships | ||||||||||||||||||||||||||||||||||||||
Certifications | — | — | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
December 31, 2020 | March 31, 2020 | ||||||||||
Accrued employee compensation and related expenses | $ | $ | |||||||||
Accrued interest | |||||||||||
Customer prepayments | |||||||||||
Warranty reserves | |||||||||||
Professional fees | |||||||||||
Sales taxes payable | |||||||||||
Other | |||||||||||
Total accrued current liabilities | $ | $ |
December 31, 2020 | March 31, 2020 | ||||||||||
Variable Rate Term Loan, due October 2024, net of deferred debt issuance costs and debt discounts of $3,719 and $4,447 as of December 31, 2020 and March 31, 2020, respectively | $ | $ | |||||||||
Less current portion | ( | ( | |||||||||
Total long-term debt | $ | $ |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Revenues recognized at point in time | Revenues recognized over time | Total | Revenues recognized at point in time | Revenues recognized over time | Total | |||||||||||||||||||||||||||||||||
United States and Latin America | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||||||||||||||
Europe, Middle East and Africa | ||||||||||||||||||||||||||||||||||||||
Asia-Pacific | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ |
Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Revenues recognized at point in time | Revenues recognized over time | Total | Revenues recognized at point in time | Revenues recognized over time | Total | |||||||||||||||||||||||||||||||||
United States and Latin America | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||||||||||||||
Europe, Middle East and Africa | ||||||||||||||||||||||||||||||||||||||
Asia-Pacific | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | ||||||||||||||||||||
Sales to External Customers: | |||||||||||||||||||||||
United States and Latin America | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
Europe, Middle East and Africa | |||||||||||||||||||||||
Asia-Pacific | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Inter-Segment Sales: | |||||||||||||||||||||||
United States and Latin America | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
Europe, Middle East and Africa | |||||||||||||||||||||||
Asia-Pacific | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Depreciation Expense: | |||||||||||||||||||||||
United States and Latin America | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
Europe, Middle East and Africa | |||||||||||||||||||||||
Asia-Pacific | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Amortization Expense: | |||||||||||||||||||||||
United States and Latin America | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
Europe, Middle East and Africa | |||||||||||||||||||||||
Asia-Pacific | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Income (Loss) from Operations: | |||||||||||||||||||||||
United States and Latin America | $ | $ | $ | ( | $ | ||||||||||||||||||
Canada | |||||||||||||||||||||||
Europe, Middle East and Africa | |||||||||||||||||||||||
Asia-Pacific | |||||||||||||||||||||||
Unallocated: | |||||||||||||||||||||||
Stock compensation | ( | ( | ( | ( | |||||||||||||||||||
Public company costs | ( | ( | ( | ( | |||||||||||||||||||
$ | $ | $ | $ |
December 31, 2020 | March 31, 2020 | ||||||||||
Property, Plant and Equipment, Net: | |||||||||||
United States and Latin America | $ | $ | |||||||||
Canada | |||||||||||
Europe, Middle East and Africa | |||||||||||
Asia-Pacific | |||||||||||
$ | $ | ||||||||||
Total Assets: | |||||||||||
United States and Latin America | $ | $ | |||||||||
Canada | |||||||||||
Europe, Middle East and Africa | |||||||||||
Asia-Pacific | |||||||||||
$ | $ |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | |||||||||||||||||||||||
Capital Expenditures: | ||||||||||||||||||||||||||
United States and Latin America | $ | $ | $ | $ | ||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||
Europe, Middle East and Africa | ||||||||||||||||||||||||||
Asia-Pacific | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended December 31,* | Nine months ended December 31,* | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Greenfield | 38 | % | 38 | % | 38 | % | 44 | % | |||||||||||||||
MRO/UE | 62 | % | 62 | % | 62 | % | 56 | % |
Three Months Ended December 31, | Increase/(Decrease) | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||
Consolidated Statements of Operations Data: | |||||||||||||||||||||||
Sales | $ | 79,604 | $ | 100,468 | $ | (20,864) | (21) | % | |||||||||||||||
Cost of sales | 42,644 | 56,988 | (14,344) | (25) | % | ||||||||||||||||||
Gross profit | $ | 36,960 | $ | 43,480 | $ | (6,520) | (15) | % | |||||||||||||||
Gross margin % | 46.4 | % | 43.3 | % | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Marketing, general and administrative and engineering | $ | 20,452 | $ | 25,226 | $ | (4,774) | (19) | % | |||||||||||||||
Stock compensation expense | 430 | 1,328 | (898) | (68) | % | ||||||||||||||||||
Amortization of intangible assets | 2,135 | 4,460 | (2,325) | (52) | % | ||||||||||||||||||
Restructuring and other charges/(income) | 3,783 | — | 3,783 | — | % | ||||||||||||||||||
Income (loss) from operations | $ | 10,160 | $ | 12,466 | $ | (2,306) | (18) | % | |||||||||||||||
Interest expense, net: | |||||||||||||||||||||||
Interest income | $ | 16 | $ | 57 | $ | (41) | (72) | % | |||||||||||||||
Interest expense | (2,192) | (2,891) | 699 | (24) | % | ||||||||||||||||||
Amortization of debt costs | (257) | (704) | 447 | (63) | % | ||||||||||||||||||
Interest expense, net | $ | (2,433) | $ | (3,538) | $ | 1,105 | (31) | % | |||||||||||||||
Other income/(expense) | 874 | (62) | 936 | (1,510) | % | ||||||||||||||||||
Income before provision for income taxes | $ | 8,601 | $ | 8,866 | $ | (265) | (3) | % | |||||||||||||||
Income tax expense (benefit) | 2,426 | 2,344 | 82 | 3 | % | ||||||||||||||||||
Net income (loss) | $ | 6,175 | $ | 6,522 | $ | (347) | (5) | % | |||||||||||||||
Income attributable to non-controlling interests(1) | — | — | — | — | % | ||||||||||||||||||
Net income available to Thermon Group Holdings, Inc. | $ | 6,175 | $ | 6,522 | $ | (347) | (5) | % |
Nine Months Ended December 31, | Increase/(Decrease) | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||
Consolidated Statements of Operations Data: | |||||||||||||||||||||||
Sales | $ | 202,858 | $ | 295,115 | $ | (92,257) | (31) | % | |||||||||||||||
Cost of sales | 112,848 | 169,061 | (56,213) | (33) | % | ||||||||||||||||||
Gross profit | $ | 90,010 | $ | 126,054 | $ | (36,044) | (29) | % | |||||||||||||||
Gross margin % | 44.4 | % | 42.7 | % | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Marketing, general and administrative and engineering | $ | 64,681 | $ | 78,732 | $ | (14,051) | (18) | % | |||||||||||||||
Stock compensation expense | 2,921 | 3,670 | (749) | (20) | % | ||||||||||||||||||
Amortization of intangible assets | 7,265 | 13,354 | (6,089) | (46) | % | ||||||||||||||||||
Restructuring and other charges/(income) | 8,692 | — | 8,692 | — | % | ||||||||||||||||||
Income (loss) from operations | $ | 6,451 | $ | 30,298 | $ | (23,847) | (79) | % | |||||||||||||||
Interest expense, net: | |||||||||||||||||||||||
Interest income | $ | 58 | $ | 173 | $ | (115) | (66) | % | |||||||||||||||
Interest expense | (6,689) | (9,742) | 3,053 | (31) | % | ||||||||||||||||||
Amortization of debt costs | (773) | (1,574) | 801 | (51) | % | ||||||||||||||||||
Interest expense, net | $ | (7,404) | $ | (11,143) | $ | 3,739 | (34) | % | |||||||||||||||
Other income/(expense) | 2,188 | (1) | 2,189 | (218,900) | % | ||||||||||||||||||
Income (loss) before provision for income taxes | $ | 1,235 | $ | 19,154 | $ | (17,919) | (94) | % | |||||||||||||||
Income tax expense (benefit) | (693) | 4,250 | (4,943) | (116) | % | ||||||||||||||||||
Net income (loss) | $ | 1,928 | $ | 14,904 | $ | (12,976) | (87) | % | |||||||||||||||
Loss attributable to non-controlling interests (1) | — | (2) | 2 | (100) | % | ||||||||||||||||||
Net income (loss) available to Thermon Group Holdings, Inc. | $ | 1,928 | $ | 14,906 | $ | (12,978) | (87) | % |
Payment due by period | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
TOTAL | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years | ||||||||||||||||||||||||||||
Variable rate term loan(1) | $ | 169,125 | $ | 2,500 | $ | 5,000 | $ | 161,625 | $ | — | ||||||||||||||||||||||
Interest payments on variable rate term loan(2) | 30,817 | 8,225 | 16,083 | 6,509 | — | |||||||||||||||||||||||||||
Operating lease obligations(3) | 19,056 | 4,375 | 6,006 | 3,717 | 4,958 | |||||||||||||||||||||||||||
Information technology services agreements(4) | 2,003 | 1,107 | 896 | — | — | |||||||||||||||||||||||||||
Total | $ | 221,001 | $ | 16,207 | $ | 27,985 | $ | 171,851 | $ | 4,958 |
Exhibit Number | Description | ||||||||||
10.1 | |||||||||||
31.1 | |||||||||||
31.2 | |||||||||||
32.1 | |||||||||||
32.2 | |||||||||||
101 | Interactive Data Files formatted in Inline eXtensible Business Reporting Language (iXBRL) pursuant to Rule 405 of Regulation S-T: (i) the cover page, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Operations and Comprehensive Income, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements* | ||||||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)* |
THERMON GROUP HOLDINGS, INC. (registrant) | |||||||||||
Date: February 4, 2021 | By: | /s/ Jay Peterson | |||||||||
Name: | Jay Peterson | ||||||||||
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |
Date: February 4, 2021 | ||||||||
By: | /s/ Bruce Thames | |||||||
Name: | Bruce Thames | |||||||
Title: | President and Chief Executive Officer |
Date: February 4, 2021 | ||||||||
By: | /s/ Jay Peterson | |||||||
Name: | Jay Peterson | |||||||
Title: | Chief Financial Officer |
Date: February 4, 2021 | ||||||||
By: | /s/ Bruce Thames | |||||||
Name: | Bruce Thames | |||||||
Title: | President and Chief Executive Officer |
Date: February 4, 2021 | ||||||||
By: | /s/Jay Peterson | |||||||
Name: | Jay Peterson | |||||||
Title: | Chief Financial Officer |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Depreciation and amortization | $ 53,821 | $ 43,550 |
Debt issuance costs, net | $ 3,719 | $ 4,447 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 33,186,218 | 32,916,818 |
Common stock, shares outstanding | 33,186,218 | 32,916,818 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Thermon Holding Corp. | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,095 | $ 834 |
Basis of Presentation and Accounting Policy Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Accounting Policy Information | Basis of Presentation and Accounting Policy Information Thermon Group Holdings, Inc. and its direct and indirect subsidiaries are referred to collectively as “we,” “our,” or the “Company” herein. We are a provider of highly engineered industrial process heating solutions for process industries. Our core thermal solutions product - also referred to as heat tracing - provides an external heat source to pipes, vessels and instruments for the purposes of freeze protection, temperature and flow maintenance, environmental monitoring, and surface snow and ice melting. In addition to our heat tracing products, we also provide (i) industrial process heating solutions focused on advanced heating and filtration solutions for industrial and hazardous area applications, which are sold under our Thermon Heating Solutions (or “THS”) brand, and (ii) temporary power products that are designed to provide a safe and efficient means of supplying temporary electrical power distribution and lighting at energy infrastructure facilities for new construction and during maintenance and turnaround projects at operating facilities, which are sold under our Thermon Power Solutions (or “TPS”) brand. As a manufacturer, we offer a full suite of products (such as heating units, heating cables, tubing bundles and control systems) and services (such as design optimization, engineering, installation and maintenance services) required to deliver comprehensive solutions to complex projects. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2020, ("fiscal 2020"). In our opinion, the accompanying consolidated financial statements reflect all adjustments considered necessary to present fairly our financial position at December 31, 2020 and March 31, 2020, and the results of our operations for the three and nine months ended December 31, 2020 and 2019. Impact of the COVID-19 Pandemic The recent COVID-19 pandemic and the measures being taken to address and limit the spread of the virus have adversely affected the economies and financial markets of many countries, resulting in an economic downturn that has negatively impacted, and may continue to negatively impact, global demand for our products and services. We may experience a decline in the demand of our products and services that could materially and negatively impact our business, financial condition, results of operation and overall financial performance in future periods. On April 11, 2020, the Canadian government officially enacted the Canadian Emergency Wage Subsidy (the “CEWS”) for the purposes of assisting employers in financial hardship due to the COVID-19 pandemic and of reducing potential lay-offs of employees. The CEWS, which was made retroactive to March 15, 2020, generally provides “eligible entities” with a wage subsidy of up to 75% of “eligible remuneration” paid to an eligible employee per week, limited to a certain weekly maximum. On September 23, 2020, the Canadian government announced that the CEWS program would be extended through the summer of 2021 and announced certain modifications to the subsidy calculation. Our Canadian operations have benefited from such wage subsidies and have received distributions from the Canadian government during the nine months period ended December 31, 2020. During the three and nine months ended December 31, 2020, we recorded subsidies in the amount of $979 and $5,928, respectively, for which we qualify, as an offset or reduction to the related underlying expenses and assets, accordingly. Use of Estimates Generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. While our management has based their assumptions and estimates on the facts and circumstances existing at December 31, 2020, actual results could differ from those estimates and affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and the corresponding revenues and expenses as of the date of the financial statements. The operating results for the three and nine months ended December 31, 2020 are not necessarily indicative of the results that may be achieved for the fiscal year ending March 31, 2021 ("fiscal 2021"). Restricted Cash and Cash Equivalents The Company maintains restricted cash related to certain letter of credit guarantees and performance bonds securing performance obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash included in prepaid expenses and other current assets and restricted cash included in other long-term assets reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows.
Amounts shown in restricted cash included in prepaid expenses and other current assets and other long-term assets represent those required to be set aside by a contractual agreement, which contain cash deposits pledged as collateral on performance bonds and letters of credit. Amounts shown in restricted cash in other long-term assets represent such agreements that require a commitment term longer than one year. Recent Accounting Pronouncements Financial Instruments- In June 2016, the FASB issued Accounting Standards Update 2016-13 Financial Instruments -Credit Losses (“ASC Topic 326”), which amends the guidance on the impairment of financial instruments. The standard adds an impairment model, referred to as current expected credit loss, which is based on expected losses rather than incurred losses. The standard applies to most debt instruments, trade receivables, lease receivables, reinsurance receivables, financial guarantees and loan commitments. Under the guidance, companies are required to disclose credit quality indicators disaggregated by year of origination for a five-year period. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We adopted this standard effective April 1, 2020, and such adoption did not have a material impact on our consolidated financial statements. Intangibles- In January 2017, the FASB issued Accounting Standards Update 2017-04 Intangibles - Goodwill and other (“ASC Topic 350”), which amends and simplifies the accounting for goodwill impairment by eliminating step 2 of the goodwill impairment test. Under the amended guidance, goodwill impairment will be measured as the excess of the reporting unit’s carrying value over its fair value, not to exceed the carrying amount of goodwill for that reporting unit. The changes are effective for annual and interim periods beginning after December 15, 2019, and amendments should be applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. We adopted this standard effective April 1, 2020, and such adoption did not have a material impact on our consolidated financial statements. Reference Rate Reform - In March 2020, the FASB issued Accounting Standards Update 2020-04 - Reference Rate Reform ("ASC Topic 848"). The update is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. As of December 31, 2020, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief, if necessary, as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. Income Taxes - In December 2019, the FASB issued Accounting Standards Update 2019-12 Income Taxes ("ASC Topic 740"): Simplifying the Accounting for Income Taxes." This ASU amends ASC 740 to add, remove, and clarify disclosure requirements related to income taxes. The new standard is effective for fiscal years beginning after December 15, 2020. We are still evaluating the impact of this new standard.
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Fair Value Measurements |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair Value We measure fair value based on authoritative accounting guidance, which defines fair value, establishes a framework for measuring fair value and expands on required disclosures regarding fair value measurements. Inputs are referred to as assumptions that market participants would use in pricing the asset or liability. The uses of inputs in the valuation process are categorized into a three-level fair value hierarchy. •Level 1 — uses quoted prices in active markets for identical assets or liabilities we have the ability to access. •Level 2 — uses observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. •Level 3 — uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Financial assets and liabilities with carrying amounts approximating fair value include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities. The carrying amount of these financial assets and liabilities approximates fair value because of their short maturities. At December 31, 2020 and March 31, 2020, no assets or liabilities were valued using Level 3 criteria. Information about our long-term debt that is not measured at fair value is as follows:
At December 31, 2020 and March 31, 2020, the fair value of our long-term debt is based on market quotes available for issuance of debt with similar terms. As the quoted price is only available for similar financial assets, the Company concluded the pricing is indirectly observable through dealers and has been classified as Level 2. The Company believes the decline in fair value as of March 31, 2020 is temporary and attributable to the COVID-19 pandemic. Cross Currency Swap The Company has entered into a long-term cross currency swap to hedge the currency rate fluctuations related to a $42,958 intercompany receivable at December 31, 2020 from our wholly-owned Canadian subsidiary, Thermon Canada Inc., maturing on October 30, 2022. Periodic principal payments are to be settled twice annually with interest payments settled quarterly through the cross currency derivative contract. We do not designate the cross currency swap as a cash flow hedge under ASC Topic 815, Derivatives and Hedging ("ASC 815"). We recorded $1,869 and $5,319 of unrealized mark-to-market losses on the cross currency swap, which is reported as "Other income and expense" in the condensed consolidated statement of operations and comprehensive income for the three and nine months ended December 31, 2020, respectively. Cross currency swap contracts are measured on a recurring basis at fair value and are classified as Level 2 measurements. Hedge (liabilities) assets in the amount of ($786) and $4,011 were included in "Other non-current liabilities" and"Other long-term assets," respectively, in the condensed consolidated balance sheet as of December 31, 2020 and March 31, 2020, respectively. For the nine months ended December 31, 2020, the loss on the long-term cross currency swap derivative contract was offset by unrealized gain on the intercompany note of $5,806 for a net gain of $487. Deferred Compensation Plan The Company provides a non-qualified deferred compensation plan for certain highly compensated employees where payroll contributions are made by the employees on a pre-tax basis. Included in “Other long-term assets” in the condensed consolidated balance sheet at December 31, 2020 and March 31, 2020 were $4,814 and $2,849, respectively, of deferred compensation plan assets held by the Company. Deferred compensation plan assets (mutual funds) are measured at fair value on a recurring basis based on quoted market prices in active markets (Level 1). The Company has a corresponding liability to participants of $4,812 and $2,886 included in “Other long-term liabilities” in the condensed consolidated balance sheet at December 31, 2020 and March 31, 2020, respectively. Deferred compensation expense (income) included in "Marketing, general and administrative and engineering" were $599 and $(228) for the three months ended December 31, 2020 and 2019, respectively, and $1,380 and $139 for the nine months ended December 31, 2020 and 2019, respectively. Expenses and income from our deferred compensation plan were offset by unrealized gains and losses for the deferred compensation plan included in "Other income and expense" on our condensed consolidated statements of operations and comprehensive income. Our unrealized gains on investments were $651 and $21 for the three months ended December 31, 2020 and 2019, respectively, and $1,419 and $116 for the nine months ended December 31, 2020 and 2019, respectively. Trade Related Foreign Currency Forward Contracts We transact business in various foreign currencies and have established a program that primarily utilizes foreign currency forward contracts to offset the risk associated with the effects of certain foreign currency exposures. Under this program, increases or decreases in our foreign currency exposures are offset by gains or losses on the forward contracts to mitigate foreign currency transaction gains or losses. These foreign currency exposures arise from intercompany transactions as well as third party accounts receivable or payable that are denominated in foreign currencies. Our forward contracts generally have terms of 30 days. We do not use forward contracts for trading purposes or designate these forward contracts as hedging instruments pursuant to ASC 815. We adjust the carrying amount of all contracts to their fair value at the end of each reporting period and unrealized gains and losses are included in "Other income and expense" on our condensed consolidated statements of operations and comprehensive income. These gains and losses are designed to offset gains and losses resulting from settlement of receivables or payables by our foreign operations which are settled in currency other than the local transactional currency. The fair value is determined by quoted prices from active foreign currency markets (Level 2). Fair value amounts for such forward contracts on our condensed consolidated balance sheets are either classified as accounts receivable, net or accrued liabilities depending on whether the forward contract is in a gain (accounts receivable, net) or loss (accrued liabilities) position. Our ultimate realized gain or loss with respect to currency fluctuations will depend on the currency exchange rates and other factors in effect as the contracts mature. As of December 31, 2020 and March 31, 2020, the notional amounts of forward contracts were as follows:
The following table represents the fair value of our foreign currency forward contracts:
Foreign currency gains or losses related to our forward contracts in the accompanying condensed consolidated statements of operations and comprehensive income were losses of $388 and gains of $132 in the three months ended December 31, 2020 and 2019, respectively, and losses of $437 and $109 for the nine months ended December 31, 2020 and 2019, respectively. Gains and losses from our forward contracts were offset by transaction gains or losses incurred with the settlement of transactions denominated in foreign currencies. For the three months ended December 31, 2020 and 2019, our net foreign currency transactions were gains of $109 and losses of $206, respectively. Likewise, we observed gains of $85 and losses of $84 for the nine months ended December 31, 2020 and 2019, respectively.
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Restructuring and other charges (income) |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other charges (income) | Restructuring and other charges/(income) During the nine months ended December 31, 2020, we enacted certain restructuring initiatives to align our current cost structure with the present decline in demand for our products and services primarily due to COVID-19 and depressed oil prices. Moreover, the Company eliminated approximately 66 and 262 positions (both hourly and salaried positions) during the three and nine months ended December 31, 2020, respectively, and incurred $997 and $5,858 in one-time severance costs during the three and nine months ended December 31, 2020, respectively, which were recorded to restructuring and other charges/(income) in our condensed consolidated statements of operations and comprehensive income. In addition, we incurred $429 in lease impairment costs primarily related to one of our Canadian facilities that was substantially vacated by December 31, 2020, as the Company executed efforts to optimize its global manufacturing footprint. We also exercised the early termination option for one of our existing leases in Canada, which resulted in the remeasurement of the related right-of-use asset and lease liability and accelerated the lease amortization and expense to align with the cease use date of the facility. We substantially vacated the facility by December 31, 2020. As a result, we recorded an incremental $144 and $191 in lease abandonment charges during the three and nine months ended December 31, 2020, respectively. Both of these lease-related costs were recorded to restructuring and other charges/(income) in our condensed consolidated statements of operations and comprehensive income. Disposal of South Africa Business On December 15, 2020, a Sale of Shares Agreement was entered into between one of our consolidated subsidiaries and an investor consortium (the "TSAPL Purchasers"). As a result of this agreement, 100% of the outstanding common shares of our consolidated subsidiary, Thermon South Africa Proprietary Limited (the "South Africa Business"), were sold to the TSAPL Purchasers, with aggregate proceeds of 2,500 South African Rand (ZAR), or $167, as partial satisfaction of an existing note receivable. In addition, Purchasers committed to settle operational receivables attributable to other Thermon Group Holdings, Inc. subsidiaries that were existing at the time of sale. After evaluating our presence in the region served by the South Africa Business, the Company decided to centralize and consolidate our business structure and streamline our organization. A member of the TSAPL Purchasers was the current general manager of the operations at the time of sale. This sale is accompanied by a distribution agreement whereby the new owners will distribute our products, thus continuing the Company's presence in the region. We believes this is an opportunity to optimize the business while pivoting to a new relationship that will better enable us to serve our customers. As a result of the sale and in accordance with ASC 360-10, we recognized a loss on the sale of a business of $2,214, which included the impact of a currency translation adjustment of $828. This loss was recognized within restructuring and other charges/(income) on the condensed consolidated statements of operations and comprehensive income. The reported loss on sale of stock is not deductible for tax. Prior to the disposal, the South Africa Business's results were reported within the "Europe, Middle East and Africa" segment. Restructuring and other charges/(income) by reportable segment were as follows:
Restructuring activity related to severance activity described above recorded in "Accrued liabilities" on the condensed consolidated balance sheets is summarized as follows for the nine months ended December 31, 2020:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases For discussion regarding the lease abandonment and impairment charges recognized during the quarter, refer to Note 4 Restructuring and other income/(charges). Description of Leases The significant majority of our lease obligations are for real property. We lease numerous facilities relating to our operations, primarily for office, manufacturing and warehouse facilities, as well as both long-term and short-term employee housing. Leases for real property have terms ranging from month-to-month to ten years. We also lease various types of equipment, including vehicles, office equipment (such as copiers and postage machines), heavy warehouse equipment (such as fork lifts), heavy construction equipment (such as cranes), medium and light construction equipment used for customer project needs (such as pipe threading machines) and mobile offices and other general equipment that is normally associated with an office environment. Equipment leases generally have terms ranging from six months to five years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any significant leases that have not yet commenced but that create significant rights and obligations for us. We lease temporary power products under our TPS product brand line to our customers on a short-term basis. Lease contracts associated with such rental of the temporary power products have historically been month-to-month contracts without purchase options. No lease contracts in which the Company was the lessor have had an initial term in excess of one year. As such, lease revenues for temporary power products recognized under ASC Topic 842 in the interim period did not materially differ from leases that would have been recorded under ASC Topic 840. Variable Lease Payments A majority of our lease agreements include fixed rental payments. A small number of our lease agreements include fixed rental payments that are adjusted periodically for changes in the Consumer Price Index (“CPI”). Payments based on an index or rate such as CPI are included in the lease payments based on the commencement date index or rate. Estimated changes to the index or rate during the lease term are not considered in the determination of the lease payments. Options to Extend or Terminate Leases Most of our real property leases include early termination options and/or one or more options to renew, with renewal terms that can extend the lease term for an additional to five years or longer. The exercise of lease termination and renewal options is at our sole discretion. If it is reasonably certain that we will exercise such renewal options, the periods covered by such renewal options are included in the lease term and are recognized as part of our ROU assets and lease liabilities. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Discount Rate The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. A large concentration of the Company's operating lease liabilities are attributed to our North American operations. Many of our Europe, Middle East and Africa (“EMEA”) operations and Asia-Pacific operations borrow funds from the debt facilities maintained by our U.S. operating subsidiary and establish intercompany balances to account for these loans. This practice is due to the more preferential rates available to our U.S. operating subsidiary and/or the ease with which funds can be drawn from the debt facilities already established within the United States. With this in mind, the Company has utilized its U.S. credit facility rate as the worldwide incremental borrowing rate. The Company used incremental borrowing rates as of April 1, 2020 for operating leases that commenced prior to April 1, 2020 to establish the lease liabilities. For operating leases that commenced during the nine months ended December 31, 2020, rates applicable at or close to the time of the inception of the lease were used to establish the new lease's ROU liabilities.
Supplemental balance sheet information related to leases was as follows:
Supplemental statement of operations information related to leases was as follows:
Supplemental statement of cash flows information related to leases was as follows:
Future lease payments under non-cancellable operating leases as of December 31, 2020 were as follows:
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Leases | Leases For discussion regarding the lease abandonment and impairment charges recognized during the quarter, refer to Note 4 Restructuring and other income/(charges). Description of Leases The significant majority of our lease obligations are for real property. We lease numerous facilities relating to our operations, primarily for office, manufacturing and warehouse facilities, as well as both long-term and short-term employee housing. Leases for real property have terms ranging from month-to-month to ten years. We also lease various types of equipment, including vehicles, office equipment (such as copiers and postage machines), heavy warehouse equipment (such as fork lifts), heavy construction equipment (such as cranes), medium and light construction equipment used for customer project needs (such as pipe threading machines) and mobile offices and other general equipment that is normally associated with an office environment. Equipment leases generally have terms ranging from six months to five years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any significant leases that have not yet commenced but that create significant rights and obligations for us. We lease temporary power products under our TPS product brand line to our customers on a short-term basis. Lease contracts associated with such rental of the temporary power products have historically been month-to-month contracts without purchase options. No lease contracts in which the Company was the lessor have had an initial term in excess of one year. As such, lease revenues for temporary power products recognized under ASC Topic 842 in the interim period did not materially differ from leases that would have been recorded under ASC Topic 840. Variable Lease Payments A majority of our lease agreements include fixed rental payments. A small number of our lease agreements include fixed rental payments that are adjusted periodically for changes in the Consumer Price Index (“CPI”). Payments based on an index or rate such as CPI are included in the lease payments based on the commencement date index or rate. Estimated changes to the index or rate during the lease term are not considered in the determination of the lease payments. Options to Extend or Terminate Leases Most of our real property leases include early termination options and/or one or more options to renew, with renewal terms that can extend the lease term for an additional to five years or longer. The exercise of lease termination and renewal options is at our sole discretion. If it is reasonably certain that we will exercise such renewal options, the periods covered by such renewal options are included in the lease term and are recognized as part of our ROU assets and lease liabilities. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Discount Rate The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. A large concentration of the Company's operating lease liabilities are attributed to our North American operations. Many of our Europe, Middle East and Africa (“EMEA”) operations and Asia-Pacific operations borrow funds from the debt facilities maintained by our U.S. operating subsidiary and establish intercompany balances to account for these loans. This practice is due to the more preferential rates available to our U.S. operating subsidiary and/or the ease with which funds can be drawn from the debt facilities already established within the United States. With this in mind, the Company has utilized its U.S. credit facility rate as the worldwide incremental borrowing rate. The Company used incremental borrowing rates as of April 1, 2020 for operating leases that commenced prior to April 1, 2020 to establish the lease liabilities. For operating leases that commenced during the nine months ended December 31, 2020, rates applicable at or close to the time of the inception of the lease were used to establish the new lease's ROU liabilities.
Supplemental balance sheet information related to leases was as follows:
Supplemental statement of operations information related to leases was as follows:
Supplemental statement of cash flows information related to leases was as follows:
Future lease payments under non-cancellable operating leases as of December 31, 2020 were as follows:
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Net Income per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income available to Thermon Group Holdings, Inc. by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income available to Thermon Group Holdings, Inc. by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes options and both restricted and performance stock units, is computed using the treasury stock method. With regard to the performance stock units, we assumed that the associated performance targets will be met at the target level of performance for purposes of calculating diluted net income per common share. The reconciliations of the denominators used to calculate basic and diluted net income (loss) per common share for the three and nine months ended December 31, 2020 and 2019, respectively, are as follows:
(1) For the three months ended December 31, 2020 and 2019, 250,668 and zero equity awards were not included in the calculation of diluted net income per common share, respectively, as they would have had an anti-dilutive effect. For the nine months ended December 31, 2020 and 2019, 246,005 and zero equity awards, respectively, were not included in the calculation of diluted net income per common share, as they would have had an anti-dilutive effect.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consisted of the following:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying amount of goodwill by operating segment as of December 31, 2020 is as follows:
Goodwill is tested for impairment on an annual basis and between annual tests if indicators of potential impairment exist. We perform a qualitative analysis to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If required, we also perform a quantitative analysis using the income approach, based on discounted future cash flows, which are derived from internal forecasts and economic expectations, and the market approach, which is based on market multiples of guideline public companies. The most significant inputs in the Company's quantitative goodwill impairment tests are projected financial information, the weighted average cost of capital and market multiples for similar transactions. Our annual impairment test is performed during the fourth quarter of our fiscal year. During fiscal 2020, revenue from our operations decreased, year over year, by approximately 7% compared to revenues generated in fiscal 2019. Lower crude oil prices, which management attributes to the COVID-19 pandemic, have had a significant adverse impact on customer capital spending, which in turn resulted in a decline in our revenues. We considered the decline in our business during fiscal 2020 to be an indicator of potential asset impairments in our reporting units. During the fourth quarter of fiscal 2020, we performed a goodwill and intangible asset impairment assessment of all of our reporting units utilizing the income approach, based on discounted future cash flows, which were derived from internal forecasts and economic expectations, and the market approach, based on market multiples of guideline public companies. Based on the results of our goodwill impairment assessment, the estimated fair value of the reporting units exceeded the carrying value. As such, there was no impairment of our reporting units' goodwill or intangible assets during fiscal 2020. We continue to monitor our reporting units' goodwill and intangible asset valuations and perform qualitative assessments at each interim reporting period. Changes in estimates and assumptions used to determine whether impairment exists or future declines in actual and forecasted operating results and/or market conditions, especially in energy markets, could indicate a need to reevaluate the fair value of our reporting units and may ultimately result in an impairment to goodwill and/or indefinite-lived intangible assets of our reporting units in future periods. No triggering events were identified during the nine month period ended December 31, 2020 which would indicate that the fair value of any of our reporting units was less than its carrying amount. Our total intangible assets consisted of the following:
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Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities Accrued current liabilities consisted of the following:
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term DebtLong-term debt consisted of the following:
Senior Secured Credit Facility On October 30, 2017, Thermon Group Holdings, Inc., as a credit party and a guarantor, Thermon Holding Corp. (the “US Borrower”) and Thermon Canada Inc. (the “Canadian Borrower”), as borrowers, entered into a credit agreement with several banks and other financial institutions or entities from time to time party thereto (the “Lenders”) and JPMorgan Chase Bank, N.A. as administrative agent (the “Agent”), which agreement provides for a $250,000 seven-year term loan B facility (the “term loan B facility”) made available to the US Borrower and a $60,000 five-year senior secured revolving credit facility made available to the US Borrower and the Canadian Borrower (the “revolving credit facility” and, together with the term loan B facility, the “credit facility”). The proceeds of the term loan B facility were used to (1) pay in full $70,875 principal and interest on a previously issued term loan due April 2019; (2) repay $6,000 in unpaid principal and interest on the US Borrower's revolving line of credit; (3) fund approximately $201,900 CAD of the purchase price of our acquisition (the “CCI acquisition”) of 100% of the equity interests of CCI Thermal Technologies Inc. (“CCI”) and certain related real estate assets for approximately $164,900; and (4) pay certain transaction fees and expenses in connection with the CCI acquisition and the credit facility. Interest rates and fees. The US Borrower will have the option to pay interest on the term loan B facility at a base rate, plus an applicable margin, or at a rate based on LIBOR (subject to a floor of 1.00%), plus an applicable margin. The applicable margin for base rate loans is 275 basis points and the applicable margin for LIBOR loans is 375 basis points. The US Borrower may borrow revolving loans in US dollars and the Canadian Borrower may borrow revolving loans in Canadian dollars. Borrowings under the revolving credit facility (a) made in US dollars will bear interest at a rate equal to a base rate, plus an applicable margin of 225 basis points or at a rate based on LIBOR, plus an applicable margin of 325 basis points, and (b) made in Canadian dollars will bear interest at a rate equal to a Canadian base rate, plus an applicable margin of 225 basis points, or at a rate based on Canadian Dollar Offered Rate, plus an applicable margin of 325 basis points; provided, that since the completion of the fiscal quarter ended March 31, 2018, the applicable margins in each case have been determined based on a leverage-based performance grid, as set forth in the credit agreement. In addition to paying interest on outstanding principal under the revolving credit facility, the US Borrower is required to pay a commitment fee in respect of unutilized revolving commitments of 0.50% per annum based on a leverage-based performance grid. Maturity and repayment. The revolving credit facility terminates on October 28, 2022. The scheduled maturity date of the term loan facility is October 30, 2024. Commencing on April 1, 2018, the term loan B facility began amortizing in equal quarterly installments of 0.25% of the $250,000 term loan B facility, with the payment of the balance at maturity. The US Borrower may voluntarily prepay the principal of the term loan B facility without penalty or premium (subject to breakage fees) at any time in whole or in part. The US Borrower is required to repay the term loan B facility with certain asset sale and insurance proceeds, certain debt proceeds and, commencing with the fiscal year ended March 31, 2019, 50% of excess cash flow (reducing to 25% if the Company’s leverage ratio is less than 4.0 to 1.0 but greater than or equal to 3.5 to 1.0, and reducing to 0% if the Company’s leverage ratio is less than 3.5 to 1.0). As of December 31, 2020, the Company's leverage ratio was less than 3.5 to 1.0. The Company is required to make quarterly principal payments of the term B loan facility of $625 through July 31, 2024. The remaining balance will be due at maturity of the term loan B facility on October 30, 2024. Accordion. The credit facility allows for incremental term loans and incremental revolving commitments in an amount not to exceed $30,000 and an unlimited additional amount that would not cause the consolidated secured leverage ratio to exceed 4.0 to 1.0 (or, if less, the maximum consolidated leverage ratio permitted by the revolving credit facility on such date). At December 31, 2020, we had no outstanding borrowings under our revolving credit facility for the Canadian Borrower line of credit or for the US Borrower line of credit. As of December 31, 2020, we had $56,147 of available borrowing capacity under our revolving credit facility after taking into account the borrowing base, outstanding borrowings and letters of credit outstanding. The variable rate term loan bears interest at the LIBOR rate plus an applicable margin dictated by our leverage ratio (as described above). The interest rate on the variable rate term loan on December 31, 2020 was 4.75%. Guarantees and security. The term loan is guaranteed by Thermon Group Holdings, Inc. and all of its current and future wholly-owned domestic material subsidiaries (the “US Subsidiary Guarantors”), subject to certain exceptions. Obligations of the US Borrower under the revolving credit facility are guaranteed by Thermon Group Holdings, Inc. and the US Subsidiary Guarantors. The obligations of the Canadian Borrower under the revolving credit facility are guaranteed by Thermon Group Holdings, Inc., the US Borrower, the US Subsidiary Guarantors and each of the wholly-owned Canadian material subsidiaries of the Canadian Borrower, subject to certain exceptions. The term loan B facility and the obligations of the US Borrower under the revolving credit facility are secured by a first lien on all of Thermon Group Holdings, Inc.’s assets and the assets of the US Subsidiary Guarantors, including 100% of the capital stock of the US Subsidiary Guarantors and 65% of the capital stock of the first tier material foreign subsidiaries of Thermon Group Holdings, Inc., the US Borrower and the US Subsidiary Guarantors, subject to certain exceptions. The obligations of the Canadian Borrower under the revolving credit facility are secured by a first lien on all of Thermon Group Holdings, Inc.'s assets, the US Subsidiary Guarantors' assets, the Canadian Borrower’s assets and the assets of the material Canadian subsidiaries of the Canadian Borrower, including 100% of the capital stock of the Canadian Borrower’s material Canadian subsidiaries. Financial covenants. The term loan is not subject to any financial covenants. The revolving credit facility requires the Company, on a consolidated basis, to maintain certain financial covenant ratios. The Company must maintain a consolidated leverage ratio of 3.75:1.0 for December 31, 2020 and each fiscal quarter thereafter. On June 18, 2020, our revolving credit lenders agreed to an amendment whereby the debt within the leverage ratio may be reduced by cash in excess of $20,000. In addition, on the last day of any period of four fiscal quarters, the Company must maintain a consolidated fixed charge coverage ratio of not less than 1.25:1.0. As of December 31, 2020, we were in compliance with all financial covenants of the credit facility. Restrictive covenants. The credit agreement governing our facility contains various restrictive covenants that, among other things, restrict or limit our ability to (subject to certain negotiated exceptions): incur additional indebtedness; grant liens; make fundamental changes; sell assets; make restricted payments; enter into sales and leasebacks; make investments; prepay certain indebtedness; enter into transactions with affiliates; and enter into restrictive agreements.
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Related-Party Transactions |
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Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related Party Transactions In connection with the acquisition of Sumac Fabrication Co. Ltd. (“Sumac”), one of Sumac's former principals (the "Minority Shareholder") retained 25% of the ownership of the entities holding the equity acquired in our acquisition of Sumac. During the fiscal year ended March 31, 2017, this individual, together with the two other former principals of Sumac, were paid $5,805 in the aggregate in full satisfaction of the Company's obligations under the $5,905 non-interest bearing performance-based note issued in connection with the Sumac transaction. On April 2, 2018, the Minority Shareholder provided the Company notice that he was exercising his option to sell one-half (12.5%) of his remaining equity interest in the entities holding equity acquired in our acquisition of Sumac business unit to the Company, and such sale was completed and effective as of July 20, 2018. The terms of the April 2015 Sumac purchase agreement prescribed a valuation formula for such a sale based on Sumac's financial results for the 12 months ended March 31, 2018. During the first quarter of the fiscal year ended March 31, 2019, the Company paid $5,665 to purchase the 12.5% non-controlling interest. Similarly, on April 2, 2019, the Minority Shareholder provided the Company notice in order to exercise his option to sell the entirety of his remaining equity interest (12.5% of the entities holding equity acquired in our acquisition of Sumac) to the Company. The terms of the April 2015 Sumac purchase agreement prescribed a valuation formula for such a sale based on Sumac’s financial results for the fiscal year ended March 31, 2019. The Company paid $4,508 to purchase the remaining 12.5% non-controlling interest on August 1, 2019.
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Commitments and Contingencies |
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Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At December 31, 2020, the Company had in place letter of credit guarantees and performance bonds securing certain performance obligations of the Company. These arrangements totaled approximately $9,526. Of this amount, $1,282 is secured by cash deposits at the Company’s financial institutions and an additional $3,853 represents a reduction of the available amount of the Company's short-term and long-term revolving lines of credit. Our Indian subsidiary also has $4,919 in customs bonds outstanding to secure the Company's customs and duties obligations in India. We are involved in various legal and administrative proceedings that arise from time to time in the ordinary course of doing business. Some of these proceedings may result in fines, penalties or judgments being assessed against us, which may adversely affect our financial results. In addition, from time to time, we are involved in various disputes, which may or may not be settled prior to legal proceedings being instituted and which may result in losses in excess of accrued liabilities, if any, relating to such unresolved disputes. Expenses related to litigation and other such proceedings or disputes reduce operating income as period expenses when incurred. As of December 31, 2020, management believes that adequate reserves have been established for any probable and reasonably estimable losses. We do not believe that the outcome of any of these proceedings or disputes would have a significant adverse effect on our financial position, long-term results of operations or cash flows. It is possible, however, that charges related to these matters could be significant to our results of operations or cash flows in any one accounting period. As of December 31, 2020, the Company has accrued $2,930 as estimated additional cost related to the operational execution of a project in our US-LAM segment. In addition to the legal proceeding described above, in January 2020, the Company received service of process in a class action application in the Province of Quebec, Canada related to certain heating elements previously manufactured by CCI prior to the CCI acquisition and incorporated into portable construction heaters sold by certain manufacturers. The Company believes this claim is without merit and intends to vigorously defend itself against the claim. The Company continues to evaluate the facts and circumstances of this claim; however, due to the current uncertainty of the basis for the claim, the Company is unable to establish an amount of an accrual for this claim at this time.
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Stock Compensation Expense |
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Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Expense | Stock Compensation Expense Our board of directors has adopted and the shareholders have approved two stock option award plans. The 2010 Thermon Group Holdings, Inc. Restricted Stock and Stock Option Plan (“2010 Plan”) was approved on July 28, 2010. The 2010 Plan authorized the issuance of 2,767,171 stock options or restricted shares. On April 8, 2011, the board of directors approved the Thermon Group Holdings, Inc. 2011 Long-Term Incentive Plan (“2011 LTIP”). The 2011 LTIP made available 2,893,341 shares of the Company’s common stock that may be awarded to employees, directors or non-employee contractors as compensation in the form of stock options, restricted stock awards or restricted stock units. At the Company’s 2020 annual general meeting of stockholders held on July 22, 2020, the Company’s stockholders approved the Thermon Group Holdings, Inc. 2020 Long-Term Incentive Plan (the “2020 LTIP”), which had previously been approved by the Company’s board of directors, subject to stockholder approval. The 2020 LTIP made available 1,400,000 shares of the Company’s common stock that may be awarded to employees, directors or nonemployee contractors as compensation in the form of stock options, restricted stock awards or restricted stock units. Stock compensation expense for the three months ended December 31, 2020 and 2019, was $430 and $1,328, respectively, and $2,921 and $3,670 for the nine months ended December 31, 2020 and 2019, respectively. At December 31, 2020, there were 142,086 options outstanding. During the nine months ended December 31, 2020, 71,780 options were granted to certain members of senior management. The stock options were valued by using a Black Scholes option pricing model. We arrived at a total fair value for the option awards of $439 by applying a volatility assumption of 41.1%, a risk free rate of 1.22%, expected term of 6.66 years and no expected dividend. The fair value of these options will be expensed on a straight line basis over three years. The right to purchase shares under the options vests in full years from the date of grant. Stock options must be exercised within ten years from date of grant. Stock options were issued with an exercise price that was equal to the market price of our common stock at the grant date. We estimate potential forfeitures of stock grants and adjust compensation cost recorded accordingly. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock compensation expense to be recognized in future periods. During the nine months ended December 31, 2020, 212,673 restricted stock units were issued to our employees with an aggregate grant date fair value as determined by the closing price of our stock on the respective grant dates of $2,912. The awards will be expensed on a straight-line basis over the three-year service period. At each anniversary of the applicable grant dates for the restricted stock units, a proportionate number of stock units will become vested for the employees and the shares will become issued and outstanding. We maintain a plan to issue our directors awards of fully vested common stock every three months for a total award over a 12 month period of approximately $712. The number of shares issued to our directors each period is equal to a pre-determined award value subject to the fair market value of the stock price on the date of grant. During the three and nine months ended December 31, 2020, 14,553 and 41,465 fully vested common shares were granted in the aggregate to our directors, respectively. The aggregate grant date fair value as determined by the closing price of our common stock on the grant date was $166 and $546 for the three and nine months ended December 31, 2020, respectively. The fair value of the awards is expensed on each grant date. During the nine months ended December 31, 2020, a target amount of 49,716 performance stock units were issued to certain members of our senior management that had a total grant date fair value of $1,060. The performance indicator for these performance stock units is based on the market performance of our stock price from the date of grant through March 31, 2023, relative to the market price performance of a pre-determined peer group of companies. Since the performance indicator is market-based, we used a Monte-Carlo valuation model to calculate the probable outcome of the performance measure to arrive at the fair value. The requisite service period required to earn the awards is through March 31, 2023. We will expense the fair value of the performance stock units over the service period on a straight-line basis whether or not the stock price performance condition is met. At the end of the performance period, the performance stock units will be evaluated with the requisite number of shares being issued. The possible number of shares that could be issued ranges from zero to 99,432 in the aggregate. Shares that are not awarded at the measurement date will be forfeited. In addition to the market-based performance stock units issued to certain members of senior management, we also granted these individuals, during the nine months ended December 31, 2020, a target amount of 86,634 performance stock units based on the Company's Adjusted EBITDA performance over three separate one year performance periods beginning with the period ending March 31, 2021 and continuing for subsequent one year periods ending on March 31, 2022 and 2023. The performance goal for these shares has not been determined. As such, the total grant date fair value is indeterminable. However, we have estimated stock compensation expense based on current share price and will adjust for stock compensation expense as the performance goal is determined for the initial measurement period ending March 31, 2021. At each reporting period, we will estimate how many awards senior management may earn and adjust our stock compensation expense accordingly. At the end of each performance period, the performance stock units will be evaluated with the requisite number of shares issued. The possible number of shares that could be issued under such performance stock units ranges from zero to 173,268 in the aggregate. Shares that are not awarded after the end of the measurement period will be forfeited. During the three months ended December 31, 2020, we adjusted our compensation cost to reflect the likelihood of certain performance stock units granted in fiscal 2019 vesting based on Adjusted EBITDA performance. We determined that these awards were not probable to meet the related performance condition; therefore we have recorded income from a reversal of compensation cost of $881.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Disaggregation of Revenue We disaggregate our revenue from contracts with customers by geographic location, revenues recognized at point in time and revenues recognized over time, as we believe these best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregation of revenues from contracts with customers for the three and nine months ended December 31, 2020 and 2019 is as follows:
Performance Obligations At December 31, 2020, revenues associated with our open performance obligations totaled $110,055, representing our combined backlog and deferred revenue. Within this amount, approximately $14,801 will be earned as revenue in excess of one year. We expect to recognize the remaining revenues associated with unsatisfied or partially satisfied performance obligations within 12 months. Contract Assets and Liabilities As of December 31, 2020 and March 31, 2020, contract assets were $11,746 and $10,194, respectively. There were no impairment losses recognized on our contract assets for the nine months ended December 31, 2020 and 2019. As of December 31, 2020 and March 31, 2020, contract liabilities were $3,771 and $4,538, respectively. The majority of contract liabilities at March 31, 2020 were recognized as revenue as of December 31, 2020.
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Income Taxes |
9 Months Ended |
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Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective income tax, after discrete tax events, was a 28.2% benefit against our loss before provision for taxes and 26.4% of tax expense for the three months ended December 31, 2020 and 2019, respectively. During the nine months ended December 31, 2020, the Company recorded discrete tax benefits of $1,854 related to updated Internal Revenue Service rules regarding the United States Global intangible low-taxed income or ("GILTI tax") and related tax planning elections associated with the GILTI tax rule changes. Under the new rules, Thermon was able to reduce previously incurred GILTI tax under the high tax exception rules. Included with this benefit are certain tax elections that resulted in the reduction of previous tax expense. Separately, the loss on the capital stock sale of the South Africa Business, referred to in Note 4, "Restructuring and other charges/(income)", was not deductible for income tax. This resulted in approximately $526 of discrete tax expense during the three and nine months ended December 31, 2020. During the nine months ended December 31, 2019, the Company recorded the impact of a prospective income tax rate reduction in the tax jurisdictions of Alberta, Canada and the Netherlands. The scheduled rate reductions of 4% and 3%, respectively, resulted in a net reduction of deferred tax liabilities of 1,231 reported as a benefit to tax expense. Excluding the impact of the change in GILTI tax rules and other discrete items, the Company estimates that the effective tax rate will be 26.9% for fiscal year 2021. The estimated effective income tax rate represents the weighted average of the estimated tax expense over our global income before tax. As of December 31, 2020, we have established a long-term liability for uncertain tax positions in the amount of $770. As of December 31, 2020, the tax years for the fiscal years ended March 31, 2015 through March 31, 2020 remain open to examination by the major taxing jurisdictions to which we are subject.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We operate in four reportable segments based on four geographic countries or regions in which we operate: (i) United States and Latin America ("US-LAM"), (ii) Canada, (iii) Europe, Middle East and Africa ("EMEA") and (iv) Asia-Pacific ("APAC"). Within our four reportable segments, our core products and services are focused on thermal solutions primarily related to the electrical heat tracing industry. Each of our reportable segments serves a similar class of customers, including engineering, procurement and construction companies, international and regional oil and gas companies, commercial sub-contractors, electrical component distributors and direct sales to existing plant or industrial applications. Profitability within our segments is measured by operating income. Profitability can vary in each of our reportable segments based on the competitive environment within the region, the level of corporate overhead, such as the salaries of our senior executives, and the level of research and development and marketing activities in the region, as well as the mix of products and services. Our THS business line provides advanced industrial heating and filtration solutions for industrial and hazardous area applications that closely align with Thermon's core business and serves similar end markets in North America. As such, we have elected to report operations attributable to our THS products through our US-LAM and Canada reportable segments. Our TPS product line provides temporary power products that differ from our core thermal solutions business. As we anticipate that our full year operating results from TPS will comprise less than 10% of our total sales and operating income, operations attributable to our TPS products have been aggregated in our Canada segment. For purposes of this note, revenue is attributed to individual countries or regions on the basis of the physical location and jurisdiction of organization of the subsidiary that invoices the material and services. Total sales to external customers, inter-segment sales, depreciation expense, amortization expense, income from operations, property, plant and equipment, net and total assets for each of our four reportable segments are as follows:
Capital expenditures for our reportable segments were as follows:
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Basis of Presentation and Accounting Policy Information (Policies) |
9 Months Ended |
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Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates Generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. While our management has based their assumptions and estimates on the facts and circumstances existing at December 31, 2020, actual results could differ from those estimates and affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and the corresponding revenues and expenses as of the date of the financial statements. The operating results for the three and nine months ended December 31, 2020 are not necessarily indicative of the results that may be achieved for the fiscal year ending March 31, 2021 ("fiscal 2021"). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Instruments- In June 2016, the FASB issued Accounting Standards Update 2016-13 Financial Instruments -Credit Losses (“ASC Topic 326”), which amends the guidance on the impairment of financial instruments. The standard adds an impairment model, referred to as current expected credit loss, which is based on expected losses rather than incurred losses. The standard applies to most debt instruments, trade receivables, lease receivables, reinsurance receivables, financial guarantees and loan commitments. Under the guidance, companies are required to disclose credit quality indicators disaggregated by year of origination for a five-year period. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We adopted this standard effective April 1, 2020, and such adoption did not have a material impact on our consolidated financial statements. Intangibles- In January 2017, the FASB issued Accounting Standards Update 2017-04 Intangibles - Goodwill and other (“ASC Topic 350”), which amends and simplifies the accounting for goodwill impairment by eliminating step 2 of the goodwill impairment test. Under the amended guidance, goodwill impairment will be measured as the excess of the reporting unit’s carrying value over its fair value, not to exceed the carrying amount of goodwill for that reporting unit. The changes are effective for annual and interim periods beginning after December 15, 2019, and amendments should be applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. We adopted this standard effective April 1, 2020, and such adoption did not have a material impact on our consolidated financial statements. Reference Rate Reform - In March 2020, the FASB issued Accounting Standards Update 2020-04 - Reference Rate Reform ("ASC Topic 848"). The update is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. As of December 31, 2020, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief, if necessary, as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. Income Taxes - In December 2019, the FASB issued Accounting Standards Update 2019-12 Income Taxes ("ASC Topic 740"): Simplifying the Accounting for Income Taxes." This ASU amends ASC 740 to add, remove, and clarify disclosure requirements related to income taxes. The new standard is effective for fiscal years beginning after December 15, 2020. We are still evaluating the impact of this new standard.
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Basis of Presentation and Accounting Policy Information Table (Tables) |
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash included in prepaid expenses and other current assets and restricted cash included in other long-term assets reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt that is not measured at fair value | Information about our long-term debt that is not measured at fair value is as follows:
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Schedule of notional amounts of forward contracts held in foreign currencies | As of December 31, 2020 and March 31, 2020, the notional amounts of forward contracts were as follows:
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Schedule of fair value of foreign currency forward contracts | The following table represents the fair value of our foreign currency forward contracts:
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Restructuring and other charges (income) (Tables) |
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Restructuring and Related Costs | Restructuring and other charges/(income) by reportable segment were as follows:
Restructuring activity related to severance activity described above recorded in "Accrued liabilities" on the condensed consolidated balance sheets is summarized as follows for the nine months ended December 31, 2020:
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Information |
Supplemental statement of operations information related to leases was as follows:
Supplemental statement of cash flows information related to leases was as follows:
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Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows:
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Future Lease Payments Under Non-Cancellable Operating Leases | Future lease payments under non-cancellable operating leases as of December 31, 2020 were as follows:
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Future Lease Payments Under Finance Leases | Future lease payments under non-cancellable operating leases as of December 31, 2020 were as follows:
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Earnings and Net Income (Loss) per Common Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of the denominators used to calculate basic EPS and diluted EPS | The reconciliations of the denominators used to calculate basic and diluted net income (loss) per common share for the three and nine months ended December 31, 2020 and 2019, respectively, are as follows:
(1) For the three months ended December 31, 2020 and 2019, 250,668 and zero equity awards were not included in the calculation of diluted net income per common share, respectively, as they would have had an anti-dilutive effect. For the nine months ended December 31, 2020 and 2019, 246,005 and zero equity awards, respectively, were not included in the calculation of diluted net income per common share, as they would have had an anti-dilutive effect.
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Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | Inventories consisted of the following:
|
Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amount of goodwill | The carrying amount of goodwill by operating segment as of December 31, 2020 is as follows:
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Schedule of intangible assets | Our total intangible assets consisted of the following:
|
Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued current liabilities | Accrued current liabilities consisted of the following:
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Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Long-term debt consisted of the following:
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenues | Disaggregation of revenues from contracts with customers for the three and nine months ended December 31, 2020 and 2019 is as follows:
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total sales and operating income classified by major geographic area in which the company operates | Total sales to external customers, inter-segment sales, depreciation expense, amortization expense, income from operations, property, plant and equipment, net and total assets for each of our four reportable segments are as follows:
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Capital expenditures by geographic area | Capital expenditures for our reportable segments were as follows:
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Fair Value Measurements (Details) - Loans Payable - Level 2 - Market Approach - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Financial Liabilities, Long-term debt | ||
Long-term debt, Carrying Value | $ 169,125 | $ 176,000 |
Long-term debt, Fair Value | $ 169,125 | $ 150,480 |
Fair Value Measurements Fair Value Measurements - Cross Currency Swaps (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2020 |
Mar. 31, 2020 |
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Fair Value Disclosures [Abstract] | |||
Intercompany receivable | $ 42,958 | $ 42,958 | |
Designated as Hedging Instrument | Cross Currency Swap | |||
Derivative [Line Items] | |||
Gain (loss) on long-term derivative contract | (1,869) | (5,319) | |
Hedge assets | $ 786 | 786 | $ 4,011 |
Unrealized gain (loss) on intercompany note | (5,806) | ||
Derivative, Gain (Loss) on Derivative, Net | $ 487 |
Fair Value Measurements (Deferred compensation plan) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2020 |
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Fair Value Disclosures [Abstract] | |||||
Plan assets | $ 4,814 | $ 4,814 | $ 2,849 | ||
Deferred compensation liability | 4,812 | 4,812 | $ 2,886 | ||
Deferred compensation expense (income) | 599 | $ (228) | 1,380 | $ 139 | |
Unrealized gain (loss) | $ (651) | $ (21) | $ 1,419 | $ (116) |
Fair Value Measurements - Foreign Exchange Contracts by Currency (Details) - Foreign Exchange Forward Contracts - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Derivative [Line Items] | ||
Notional amount | $ 19,900 | $ 9,803 |
Russian Ruble | ||
Derivative [Line Items] | ||
Notional amount | 1,750 | 1,103 |
Euro | ||
Derivative [Line Items] | ||
Notional amount | 0 | 500 |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional amount | 10,000 | 1,500 |
South Korean Won | ||
Derivative [Line Items] | ||
Notional amount | 5,000 | 3,500 |
Mexican Peso | ||
Derivative [Line Items] | ||
Notional amount | 1,750 | 2,000 |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional amount | 900 | 700 |
Great Britain Pound | ||
Derivative [Line Items] | ||
Notional amount | $ 500 | $ 500 |
Fair Value Measurements - Foreign Exchange Contracts (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2020 |
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Maximum term of forward contracts | 30 days | ||||
Transaction gains (losses) denominated in foreign currencies | $ 109 | $ (206) | $ 85 | $ (84) | |
Foreign Exchange Forward Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign exchange contract forwards, assets | 53 | 53 | $ 140 | ||
Foreign exchange contract forwards, liabilities | 4 | 4 | $ 49 | ||
Foreign currency gain (loss) | $ (388) | $ 132 | $ (437) | $ (109) |
Restructuring and other charges (income) - Narrative (Details) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 15, 2020
USD ($)
|
Dec. 15, 2020
ZAR (R)
|
Dec. 31, 2020
USD ($)
positions
|
Dec. 31, 2020
USD ($)
positions
|
Dec. 31, 2019
USD ($)
|
Mar. 31, 2020
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated | positions | 66 | 262 | ||||
Severance costs | $ 997,000 | $ 5,858,000 | ||||
Lease abandonment charges | 144,000 | 191,000 | ||||
Sale of stock, consideration received on transaction | $ 167,000 | R 2,500 | ||||
Loss on disposition of business | (2,045,000) | $ 0 | ||||
Accumulated other comprehensive loss | (35,388,000) | $ (35,388,000) | $ (63,894,000) | |||
Thermon South Africa Proprieary Limited | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Sale of stock, percentage of ownership before transaction | 100.00% | 100.00% | ||||
Loss on disposition of business | $ 2,214,000 | |||||
Accumulated other comprehensive loss | $ 828,000 | |||||
Canada | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Lease abandonment charges | $ 429,000 |
Restructuring and other charges (income) - Restructuring Costs by Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2020 |
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Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 3,783 | $ 8,692 |
United States and Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 959 | 3,373 |
Canada | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 573 | 2,702 |
Europe, Middle East and Africa | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2,251 | 2,607 |
Asia-Pacific | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0 | $ 10 |
Restructuring and other charges (income) - Restructuring Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Restructuring Reserve [Roll Forward] | ||||
Costs incurred | $ 3,783 | $ 0 | $ 8,692 | $ 0 |
Employee Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Costs incurred | 5,858 | |||
Less cash payments | (4,153) | |||
Ending balance | $ 1,705 | $ 1,705 |
Leases - Narrative (Details) |
9 Months Ended |
---|---|
Dec. 31, 2020 | |
Minimum | Land and Building | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 month |
Lease renewal term | 1 year |
Minimum | Equipment | |
Lessee, Lease, Description [Line Items] | |
Lease term | 6 months |
Maximum | Land and Building | |
Lessee, Lease, Description [Line Items] | |
Lease term | 10 years |
Lease renewal term | 5 years |
Maximum | Equipment | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
Leases - Lease Term and Discount Rate (Details) |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Weighted average remaining lease term: | ||
Operating | 6 years 1 month 6 days | 6 years 2 months 12 days |
Finance | 3 years 2 months 12 days | 3 years 4 months 24 days |
Weighted average discount rate: | ||
Operating | 4.81% | 4.82% |
Finance | 6.57% | 6.98% |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Assets | ||
Operating | $ 13,527 | $ 16,637 |
Finance | 478 | 695 |
Total right-of-use assets | 14,005 | 17,332 |
Current | ||
Operating | 2,433 | 3,352 |
Finance | 50 | 201 |
Non-current | ||
Operating | 13,985 | 15,060 |
Finance | 507 | 511 |
Total lease liabilities | $ 16,975 | $ 19,124 |
Leases - Supplemental Statement of Operations Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Finance lease expense: | ||||
Net lease expense | $ 1,154 | $ 1,160 | $ 3,757 | $ 3,794 |
Marketing, general and administrative and engineering | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | 1,070 | 860 | 3,455 | 2,627 |
Finance lease expense: | ||||
Amortization of ROU assets | 66 | 63 | 211 | 189 |
Short-term lease expense | 9 | 225 | 60 | 940 |
Interest expense | ||||
Finance lease expense: | ||||
Interest expense on finance lease liabilities | $ 9 | $ 12 | $ 31 | $ 38 |
Leases - Supplemental Statement Of Cash Flows Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash outflows from operation leases | $ 2,747 | $ 2,083 |
Operating cash flows from operation leases | 31 | 43 |
Financing cash flows from leases | $ 218 | $ 189 |
Leases - Future Minimum Lease Payments (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Operating Leases | |
2021 | $ 4,375 |
2022 | 3,507 |
2023 | 2,499 |
2024 | 2,020 |
2025 | 1,697 |
Thereafter | 4,958 |
Total lease payments | 19,056 |
Less imputed interest | (2,638) |
Total lease liability | 16,418 |
Finance Leases | |
2021 | 212 |
2022 | 162 |
2023 | 142 |
2024 | 84 |
2025 | 0 |
Thereafter | 0 |
Total lease payments | 600 |
Less imputed interest | (43) |
Total lease liability | $ 557 |
Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 38,009 | $ 31,300 |
Work in process | 3,867 | 5,317 |
Finished goods | 34,055 | 25,701 |
Inventories, gross | 75,931 | 62,318 |
Valuation reserves | (1,778) | (2,045) |
Inventories, net | $ 74,153 | $ 60,273 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued employee compensation and related expenses | $ 11,286 | $ 12,542 |
Accrued interest | 692 | 782 |
Customer prepayments | 399 | 357 |
Warranty reserves | 250 | 477 |
Professional fees | 2,004 | 2,086 |
Sales taxes payable | 2,565 | 2,423 |
Other | 4,608 | 5,090 |
Total accrued current liabilities | $ 21,804 | $ 23,757 |
Commitments and Contingencies (Details) $ in Thousands |
9 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Commitments and Contingencies Disclosure [Abstract] | |
Totaled arrangements under letter of credit guarantees and performance bonds securing performance obligations | $ 9,526 |
Guarantee obligations secured by cash deposits | 1,282 |
Guarantee obligations represented by a reduction of the available amount of the company's short term and long term revolving lines of credit | 3,853 |
Indian custom bonds outstanding | 4,919 |
Accrual for additional cost of sales | $ 2,930 |
Revenue - Performance Obligation (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 110,055 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 14,801 |
Remaining performance obligation, period | 1 year |
Revenue - Additional Information (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 11,746 | $ 10,194 |
Contract liabilities | $ 3,771 | $ 4,538 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
|
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 28.20% | 26.40% | ||
Income tax benefit, global intangible low-taxed income | $ 1,854 | |||
Discrete tax expense | $ 526 | 526 | ||
Decrease in deferred tax liabilities | 1,231 | |||
Liability for uncertain tax positions | $ 770 | $ 770 | ||
Scenario, Forecast | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 26.90% |
Segment Information - Capital Expenditures (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 576 | $ 2,862 | $ 4,708 | $ 6,701 |
United States and Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 89 | 2,122 | 3,245 | 4,110 |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 473 | 289 | 1,340 | 1,872 |
Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 10 | 375 | 59 | 527 |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 4 | $ 76 | $ 64 | $ 192 |
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