QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification number) |
(Address of principal executive offices) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Page | ||||||||
PART I FINANCIAL INFORMATION | ||||||||
ITEM 1. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
PART II OTHER INFORMATION | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | ||||||||
ITEM 6. | ||||||||
Three months ended | Six months ended | ||||||||||||||||
In millions, except per-share data | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||
Cost of goods sold | |||||||||||||||||
Gross profit | |||||||||||||||||
Selling, general and administrative | |||||||||||||||||
Research and development | |||||||||||||||||
Operating income | |||||||||||||||||
Net interest expense | |||||||||||||||||
Other expense | |||||||||||||||||
Income before income taxes | |||||||||||||||||
Provision for income taxes | |||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||
Comprehensive income, net of tax | |||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||
Changes in cumulative translation adjustment | ( | ( | |||||||||||||||
Changes in market value of derivative financial instruments, net of tax | ( | ( | |||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||
Earnings per ordinary share | |||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||
Weighted average ordinary shares outstanding | |||||||||||||||||
Basic | |||||||||||||||||
Diluted | |||||||||||||||||
Cash dividends paid per ordinary share | $ | $ | $ | $ | |||||||||||||
June 30, 2022 | December 31, 2021 | |||||||
In millions, except per-share data | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts and notes receivable, net of allowances of $ | ||||||||
Inventories | ||||||||
Other current assets | ||||||||
Total current assets | ||||||||
Property, plant and equipment, net | ||||||||
Other assets | ||||||||
Goodwill | ||||||||
Intangibles, net | ||||||||
Other non-current assets | ||||||||
Total other assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt and short-term borrowings | $ | $ | ||||||
Accounts payable | ||||||||
Employee compensation and benefits | ||||||||
Other current liabilities | ||||||||
Total current liabilities | ||||||||
Other liabilities | ||||||||
Long-term debt | ||||||||
Pension and other post-retirement compensation and benefits | ||||||||
Deferred tax liabilities | ||||||||
Other non-current liabilities | ||||||||
Total liabilities | ||||||||
Equity | ||||||||
Ordinary shares $ | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss | ( | ( | ||||||
Total equity | ||||||||
Total liabilities and equity | $ | $ |
Six months ended | ||||||||
In millions | June 30, 2022 | June 30, 2021 | ||||||
Operating activities | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||||||||
Depreciation | ||||||||
Amortization | ||||||||
Deferred income taxes | ( | ( | ||||||
Share-based compensation | ||||||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
Accounts and notes receivable | ( | ( | ||||||
Inventories | ( | ( | ||||||
Other current assets | ( | ( | ||||||
Accounts payable | ||||||||
Employee compensation and benefits | ( | |||||||
Other current liabilities | ( | |||||||
Other non-current assets and liabilities | ||||||||
Net cash provided by (used for) operating activities | ||||||||
Investing activities | ||||||||
Capital expenditures | ( | ( | ||||||
Proceeds from sale of property and equipment | ||||||||
Acquisitions, net of cash acquired | ( | ( | ||||||
Net cash provided by (used for) investing activities | ( | ( | ||||||
Financing activities | ||||||||
Net receipts of revolving long-term debt | ||||||||
Repayments of long-term debt | ( | ( | ||||||
Dividends paid | ( | ( | ||||||
Shares issued to employees, net of shares withheld | ( | |||||||
Repurchases of ordinary shares | ( | ( | ||||||
Net cash provided by (used for) financing activities | ( | |||||||
Effect of exchange rate changes on cash and cash equivalents | ( | |||||||
Change in cash and cash equivalents | ( | |||||||
Cash and cash equivalents, beginning of period | ||||||||
Cash and cash equivalents, end of period | $ | $ |
In millions | Ordinary shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Total | |||||||||||||||
Number | Amount | |||||||||||||||||||
Balance - December 31, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||
Net income | — | — | — | — | ||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ( | ( | ||||||||||||||
Dividends declared | — | — | — | ( | — | ( | ||||||||||||||
Share repurchases | ( | ( | — | — | ( | |||||||||||||||
Exercise of options, net of shares tendered for payment | — | — | — | |||||||||||||||||
Issuance of restricted shares, net of cancellations | — | — | — | — | ||||||||||||||||
Shares surrendered by employees to pay taxes | ( | — | ( | — | — | ( | ||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||
Balance - March 31, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||
Net income | — | — | — | — | ||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ( | ( | ||||||||||||||
Dividends declared | — | — | — | ( | — | ( | ||||||||||||||
Exercise of options, net of shares tendered for payment | — | — | — | |||||||||||||||||
Issuance of restricted shares, net of cancellations | — | — | — | — | — | |||||||||||||||
Shares surrendered by employees to pay taxes | — | ( | — | — | ( | |||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||
Balance - June 30, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||
In millions | Ordinary shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Total | |||||||||||||||
Number | Amount | |||||||||||||||||||
Balance - December 31, 2020 | $ | $ | $ | $ | ( | $ | ||||||||||||||
Net income | — | — | — | — | ||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ||||||||||||||||
Dividends declared | — | — | — | ( | — | ( | ||||||||||||||
Share repurchases | ( | — | ( | — | — | ( | ||||||||||||||
Exercise of options, net of shares tendered for payment | — | — | — | |||||||||||||||||
Issuance of restricted shares, net of cancellations | — | — | — | — | ||||||||||||||||
Shares surrendered by employees to pay taxes | ( | — | ( | — | — | ( | ||||||||||||||
Share-based compensation | — | — | ( | — | — | ( | ||||||||||||||
Balance - March 31, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||
Net income | — | — | — | — | ||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ( | ( | ||||||||||||||
Dividends declared | — | — | — | ( | — | ( | ||||||||||||||
Exercise of options, net of shares tendered for payment | — | — | — | |||||||||||||||||
Shares surrendered by employees to pay taxes | — | — | ( | — | — | ( | ||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||
Balance - June 30, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||
In millions | Enclosures | Electrical & Fastening Solutions | Thermal Management | Total | ||||||||||
U.S. and Canada | $ | $ | $ | $ | ||||||||||
Developed Europe (1) | ||||||||||||||
Developing (2) | ||||||||||||||
Other Developed (3) | ||||||||||||||
Total | $ | $ | $ | $ |
Six months ended June 30, 2022 | ||||||||||||||
In millions | Enclosures | Electrical & Fastening Solutions | Thermal Management | Total | ||||||||||
U.S. and Canada | $ | $ | $ | $ | ||||||||||
Developed Europe (1) | ||||||||||||||
Developing (2) | ||||||||||||||
Other Developed (3) | ||||||||||||||
Total | $ | $ | $ | $ |
Three months ended June 30, 2021 | ||||||||||||||
In millions | Enclosures | Electrical & Fastening Solutions | Thermal Management | Total | ||||||||||
U.S. and Canada | $ | $ | $ | $ | ||||||||||
Developed Europe (1) | ||||||||||||||
Developing (2) | ||||||||||||||
Other Developed (3) | ||||||||||||||
Total | $ | $ | $ | $ |
Six months ended June 30, 2021 | ||||||||||||||
In millions | Enclosures | Electrical & Fastening Solutions | Thermal Management | Total | ||||||||||
U.S. and Canada | $ | $ | $ | $ | ||||||||||
Developed Europe (1) | ||||||||||||||
Developing (2) | ||||||||||||||
Other Developed (3) | ||||||||||||||
Total | $ | $ | $ | $ |
(1) Developed Europe includes Western Europe and Eastern Europe included in European Union. | ||||||||||||||
(2) Developing includes China, Eastern Europe not included in European Union, Latin America, Middle East and Southeast Asia. | ||||||||||||||
(3) Other Developed includes Australia and Japan. |
Three months ended June 30, 2022 | ||||||||||||||
In millions | Enclosures | Electrical & Fastening Solutions | Thermal Management | Total | ||||||||||
Industrial | $ | $ | $ | $ | ||||||||||
Commercial & Residential | ||||||||||||||
Infrastructure | ||||||||||||||
Energy | ||||||||||||||
Total | $ | $ | $ | $ | ||||||||||
Six months ended June 30, 2022 | ||||||||||||||
In millions | Enclosures | Electrical & Fastening Solutions | Thermal Management | Total | ||||||||||
Industrial | $ | $ | $ | $ | ||||||||||
Commercial & Residential | ||||||||||||||
Infrastructure | ||||||||||||||
Energy | ||||||||||||||
Total | $ | $ | $ | $ |
Three months ended June 30, 2021 | ||||||||||||||
In millions | Enclosures | Electrical & Fastening Solutions | Thermal Management | Total | ||||||||||
Industrial | $ | $ | $ | $ | ||||||||||
Commercial & Residential | ||||||||||||||
Infrastructure | ||||||||||||||
Energy | ||||||||||||||
Total | $ | $ | $ | $ | ||||||||||
Six months ended June 30, 2021 | ||||||||||||||
In millions | Enclosures | Electrical & Fastening Solutions | Thermal Management | Total | ||||||||||
Industrial | $ | $ | $ | $ | ||||||||||
Commercial & Residential | ||||||||||||||
Infrastructure | ||||||||||||||
Energy | ||||||||||||||
Total | $ | $ | $ | $ |
In millions | June 30, 2022 | December 31, 2021 | $ Change | % Change | ||||||||||
Contract assets | $ | $ | $ | % | ||||||||||
Contract liabilities | % | |||||||||||||
Net contract assets | $ | $ | $ | % |
Three months ended | Six months ended | ||||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Severance and related costs | $ | $ | $ | $ | |||||||||||||
Other | |||||||||||||||||
Total restructuring costs | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Enclosures | $ | $ | $ | $ | |||||||||||||
Electrical & Fastening Solutions | |||||||||||||||||
Thermal Management | |||||||||||||||||
Other | |||||||||||||||||
Total | $ | $ | $ | $ |
Six months ended | ||||||||
In millions | June 30, 2022 | June 30, 2021 | ||||||
Beginning balance | $ | $ | ||||||
Costs incurred | ||||||||
Cash payments and other | ( | ( | ||||||
Ending balance | $ | $ |
Three months ended | Six months ended | ||||||||||||||||
In millions, except per-share data | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||
Weighted average ordinary shares outstanding | |||||||||||||||||
Basic | |||||||||||||||||
Dilutive impact of stock options, restricted stock units and performance share units | |||||||||||||||||
Diluted | |||||||||||||||||
Earnings per ordinary share | |||||||||||||||||
Basic earnings per ordinary share | $ | $ | $ | $ | |||||||||||||
Diluted earnings per ordinary share | $ | $ | $ | $ | |||||||||||||
Anti-dilutive stock options excluded from the calculation of diluted earnings per share |
In millions | December 31, 2021 | Acquisitions/ divestitures | Foreign currency translation/other | June 30, 2022 | ||||||||||
Enclosures | $ | $ | $ | ( | $ | |||||||||
Electrical & Fastening Solutions | ||||||||||||||
Thermal Management | ( | |||||||||||||
Total goodwill | $ | $ | $ | ( | $ |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
In millions | Cost | Accumulated amortization | Net | Cost | Accumulated amortization | Net | |||||||||||||||||
Definite-life intangibles | |||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||
Proprietary technology and patents | ( | ( | |||||||||||||||||||||
Total definite-life intangibles | ( | ( | |||||||||||||||||||||
Indefinite-life intangibles | |||||||||||||||||||||||
Trade names | — | — | |||||||||||||||||||||
Total intangibles | $ | $ | ( | $ | $ | $ | ( | $ |
Q3-Q4 | ||||||||||||||||||||
In millions | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | ||||||||||||||
Estimated amortization expense | $ | $ | $ | $ | $ | $ |
In millions | June 30, 2022 | December 31, 2021 | ||||||
Inventories | ||||||||
Raw materials and supplies | $ | $ | ||||||
Work-in-process | ||||||||
Finished goods | ||||||||
Total inventories | $ | $ | ||||||
Other current assets | ||||||||
Contract assets | $ | $ | ||||||
Prepaid expenses | ||||||||
Prepaid income taxes | ||||||||
Cross currency swap assets | ||||||||
Other current assets | ||||||||
Total other current assets | $ | $ | ||||||
Property, plant and equipment, net | ||||||||
Land and land improvements | $ | $ | ||||||
Buildings and leasehold improvements | ||||||||
Machinery and equipment | ||||||||
Construction in progress | ||||||||
Total property, plant and equipment | ||||||||
Accumulated depreciation and amortization | ||||||||
Total property, plant and equipment, net | $ | $ | ||||||
Other non-current assets | ||||||||
Deferred compensation plan assets | $ | $ | ||||||
Lease right-of-use assets | ||||||||
Deferred tax assets | ||||||||
Other non-current assets | ||||||||
Total other non-current assets | $ | $ | ||||||
Other current liabilities | ||||||||
Dividends payable | $ | $ | ||||||
Accrued rebates | ||||||||
Contract liabilities | ||||||||
Accrued taxes payable | ||||||||
Current lease liabilities | ||||||||
Other current liabilities | ||||||||
Total other current liabilities | $ | $ | ||||||
Other non-current liabilities | ||||||||
Income taxes payable | $ | $ | ||||||
Deferred compensation plan liabilities | ||||||||
Non-current lease liabilities | ||||||||
Other non-current liabilities | ||||||||
Total other non-current liabilities | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||||||||
In millions | Recorded Amount | Fair Value | Recorded Amount | Fair Value | |||||||||||||
Variable rate debt | $ | $ | $ | $ | |||||||||||||
Fixed rate debt | |||||||||||||||||
Total debt | $ | $ | $ | $ |
Recurring fair value measurements | June 30, 2022 | ||||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||||
Cross currency swap assets | $ | $ | $ | $ | $ | ||||||||||||
Foreign currency contract liabilities | ( | ( | |||||||||||||||
Foreign currency contract assets | |||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||
Total recurring fair value measurements | $ | $ | $ | $ | $ | ||||||||||||
Recurring fair value measurements | December 31, 2021 | ||||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||||
Cross currency swap liabilities | $ | $ | ( | $ | $ | $ | ( | ||||||||||
Cross currency swap assets | |||||||||||||||||
Foreign currency contract liabilities | ( | ( | |||||||||||||||
Foreign currency contract assets | |||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||
Total recurring fair value measurements | $ | $ | $ | $ | $ |
In millions | Average interest rate at June 30, 2022 | Maturity Year | June 30, 2022 | December 31, 2021 | ||||||||||
Revolving credit facility | 2026 | $ | $ | |||||||||||
Senior notes - fixed rate | 2031 | |||||||||||||
Senior notes - fixed rate | 2028 | |||||||||||||
Term loan facility | 2026 | |||||||||||||
Unamortized debt issuance costs and discounts | N/A | N/A | ( | ( | ||||||||||
Total debt | ||||||||||||||
Less: Current maturities and short-term borrowings | ( | ( | ||||||||||||
Long-term debt | $ | $ | ||||||||||||
Q3-Q4 | ||||||||||||||||||||||||||
In millions | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | ||||||||||||||||||
Contractual debt obligation maturities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Net sales | |||||||||||||||||
Enclosures | $ | $ | $ | $ | |||||||||||||
Electrical & Fastening Solutions | |||||||||||||||||
Thermal Management | |||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||
Segment income (loss) | |||||||||||||||||
Enclosures | $ | $ | $ | $ | |||||||||||||
Electrical & Fastening Solutions | |||||||||||||||||
Thermal Management | |||||||||||||||||
Other | ( | ( | ( | ( | |||||||||||||
Total | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Segment income | $ | $ | $ | $ | |||||||||||||
Intangible amortization | ( | ( | ( | ( | |||||||||||||
Restructuring and other | ( | ( | ( | ( | |||||||||||||
Acquisition transaction and integration costs | ( | ( | ( | ( | |||||||||||||
Net interest expense | ( | ( | ( | ( | |||||||||||||
Other expense | ( | ( | ( | ( | |||||||||||||
Income before income taxes | $ | $ | $ | $ | |||||||||||||
Three months ended | ||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | $ change | % / point change | ||||||||||
Net sales | $ | 727.5 | $ | 601.3 | $ | 126.2 | 21.0 | % | ||||||
Cost of goods sold | 459.7 | 366.1 | 93.6 | 25.6 | % | |||||||||
Gross profit | 267.8 | 235.2 | 32.6 | 13.9 | % | |||||||||
% of net sales | 36.8 | % | 39.1 | % | (2.3 | pts) | ||||||||
Selling, general and administrative | 148.5 | 135.2 | 13.3 | 9.8 | % | |||||||||
% of net sales | 20.4 | % | 22.5 | % | (2.1 | pts) | ||||||||
Research and development | 14.6 | 11.7 | 2.9 | 24.8 | % | |||||||||
% of net sales | 2.0 | % | 1.9 | % | 0.1 | pts | ||||||||
Operating income | 104.7 | 88.3 | 16.4 | 18.6 | % | |||||||||
% of net sales | 14.4 | % | 14.7 | % | (0.3 | pts) | ||||||||
Net interest expense | 7.5 | 8.1 | (0.6) | N.M. | ||||||||||
Other expense | 1.2 | 0.6 | 0.6 | N.M. | ||||||||||
Income before income taxes | 96.0 | 79.6 | 16.4 | 20.6 | % | |||||||||
Provision for income taxes | 16.1 | 13.4 | 2.7 | 20.1 | % | |||||||||
Effective tax rate | 16.8 | % | 16.8 | % | — | pts | ||||||||
Net income | 79.9 | 66.2 | 13.7 | 20.7 | % | |||||||||
Six months ended | ||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | $ change | % / point change | ||||||||||
Net sales | $ | 1,422.2 | $ | 1,150.2 | $ | 272.0 | 23.6 | % | ||||||
Cost of goods sold | 907.1 | 706.0 | 201.1 | 28.5 | % | |||||||||
Gross profit | 515.1 | 444.2 | 70.9 | 16.0 | % | |||||||||
% of net sales | 36.2 | % | 38.6 | % | (2.4 | pts) | ||||||||
Selling, general and administrative | 290.5 | 252.4 | 38.1 | 15.1 | % | |||||||||
% of net sales | 20.4 | % | 21.9 | % | (1.5 | pts) | ||||||||
Research and development | 29.8 | 23.1 | 6.7 | 29.0 | % | |||||||||
% of net sales | 2.1 | % | 2.0 | % | 0.1 | pts | ||||||||
Operating income | 194.8 | 168.7 | 26.1 | 15.5 | % | |||||||||
% of net sales | 13.7 | % | 14.7 | % | (1.0 | pts) | ||||||||
Net interest expense | 14.7 | 16.2 | (1.5) | N.M. | ||||||||||
Other expense | 1.8 | 1.2 | 0.6 | N.M. | ||||||||||
Income before income taxes | 178.3 | 151.3 | 27.0 | 17.8 | % | |||||||||
Provision for income taxes | 30.6 | 19.7 | 10.9 | 55.3 | % | |||||||||
Effective tax rate | 17.2 | % | 13.0 | % | 4.2 | pts | ||||||||
Net income | 147.7 | 131.6 | 16.1 | 12.2 | % |
Three months ended June 30, 2022 | Six months ended June 30, 2022 | |||||||
over the prior year period | over the prior year period | |||||||
Volume | 8.7 | % | 10.8 | % | ||||
Price | 12.3 | 11.9 | ||||||
Organic growth | 21.0 | 22.7 | ||||||
Acquisition | 3.8 | 4.1 | ||||||
Currency | (3.8) | (3.2) | ||||||
Total | 21.0 | % | 23.6 | % |
Three months ended | Six months ended | ||||||||||||||||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | % / point change | June 30, 2022 | June 30, 2021 | % / point change | |||||||||||||||||||||||
Net sales | $ | $ | 26.8 | % | $ | $ | 28.2 | % | |||||||||||||||||||||
Segment income | 14.5 | % | 9.1 | % | |||||||||||||||||||||||||
% of net sales | 16.2 | % | 17.9 | % | (1.7 | pts) | 15.1 | % | 17.8 | % | (2.7 | pts) |
Three months ended June 30, 2022 | Six months ended June 30, 2022 | |||||||
over the prior year period | over the prior year period | |||||||
Volume | 13.7 | % | 13.2 | % | ||||
Price | 9.2 | 9.9 | ||||||
Organic growth | 22.9 | 23.1 | ||||||
Acquisition | 7.7 | 8.2 | ||||||
Currency | (3.8) | (3.1) | ||||||
Total | 26.8 | % | 28.2 | % |
Three months ended June 30, 2022 | Six months ended June 30, 2022 | |||||||
over the prior year period | over the prior year period | |||||||
Growth/acquisition | 5.1 | pts | 3.8 | pts | ||||
Price | 7.0 | 7.4 | ||||||
Currency | 0.4 | 0.3 | ||||||
Net productivity | (14.2) | (14.2) | ||||||
Total | (1.7 | pts) | (2.7 | pts) | ||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | % / point change | June 30, 2022 | June 30, 2021 | % / point change | |||||||||||||||||||||||
Net sales | $ | 200.9 | $ | 169.2 | 18.7 | % | $ | 388.5 | $ | 317.1 | 22.5 | % | |||||||||||||||||
Segment income | 58.8 | 48.9 | 20.3 | % | 105.9 | 88.1 | 20.2 | % | |||||||||||||||||||||
% of net sales | 29.3 | % | 28.9 | % | 0.4 | pts | 27.3 | % | 27.8 | % | (0.5 | pts) | |||||||||||||||||
Three months ended June 30, 2022 | Six months ended June 30, 2022 | |||||||
over the prior year period | over the prior year period | |||||||
Volume | (1.1 | %) | 3.9 | % | ||||
Price | 23.0 | 21.3 | ||||||
Organic growth | 21.9 | 25.2 | ||||||
Currency | (3.2) | (2.7) | ||||||
Total | 18.7 | % | 22.5 | % |
Three months ended June 30, 2022 | Six months ended June 30, 2022 | |||||||
over the prior year period | over the prior year period | |||||||
Growth/acquisition | 1.4 | pts | 3.0 | pts | ||||
Price | 13.3 | 12.7 | ||||||
Currency | 0.1 | — | ||||||
Net productivity | (14.4) | (16.2) | ||||||
Total | 0.4 | pts | (0.5 | pts) |
Three months ended | Six months ended | ||||||||||||||||||||||||||||
In millions | June 30, 2022 | June 30, 2021 | % / point change | June 30, 2022 | June 30, 2021 | % / point change | |||||||||||||||||||||||
Net sales | $ | 145.8 | $ | 131.7 | 10.7 | % | $ | 293.5 | $ | 255.7 | 14.8 | % | |||||||||||||||||
Segment income | 28.3 | 24.9 | 13.7 | % | 60.7 | 45.9 | 32.2 | % | |||||||||||||||||||||
% of net sales | 19.4 | % | 18.9 | % | 0.5 | pts | 20.7 | % | 18.0 | % | 2.7 | pts |
Three months ended June 30, 2022 | Six months ended June 30, 2022 | |||||||
over the prior year period | over the prior year period | |||||||
Volume | 10.1 | % | 14.0 | % | ||||
Price | 5.3 | 4.6 | ||||||
Organic growth | 15.4 | 18.6 | ||||||
Currency | (4.7) | (3.8) | ||||||
Total | 10.7 | % | 14.8 | % |
Three months ended June 30, 2022 | Six months ended June 30, 2022 | |||||||
over the prior year period | over the prior year period | |||||||
Growth | 2.4 | pts | 4.0 | pts | ||||
Price | 4.1 | 3.6 | ||||||
Currency | (0.1) | (0.1) | ||||||
Net productivity | (5.9) | (4.8) | ||||||
Total | 0.5 | pts | 2.7 | pts |
Six months ended | ||||||||
In millions | June 30, 2022 | June 30, 2021 | ||||||
Net cash provided by (used for) operating activities | $ | 63.9 | $ | 143.3 | ||||
Capital expenditures | (20.8) | (17.9) | ||||||
Proceeds from sale of property and equipment | 2.0 | 0.1 | ||||||
Free cash flow | $ | 45.1 | $ | 125.5 | ||||
(a) | (b) | (c) | (d) | |||||||||||
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Dollar value of shares that may yet be purchased under the plans or programs | ||||||||||
April 1 - April 30, 2022 | — | $ | — | — | $ | 200,000,036 | ||||||||
May 1 - May 28, 2022 | 6,835 | 34.47 | — | 200,000,036 | ||||||||||
May 29 - June 30, 2022 | 3,011 | 32.03 | — | 200,000,036 | ||||||||||
Total | 9,846 | — |
Guarantors and Subsidiary Issuers of Guaranteed Securities (Incorporated by reference to Exhibit 22 in the Annual Report on Form 10-K of nVent Electric plc filed with the Commission on February 25, 2022 (File No. 001-38265)). | ||||||||
Certification of Chief Executive Officer. | ||||||||
Certification of Chief Financial Officer. | ||||||||
Certification of Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
101 | The following materials from nVent Electric plc's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 are filed herewith, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2022 and 2021, (ii) the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, (iii) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021, (iv) the Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2022 and 2021, and (v) Notes to Condensed Consolidated Financial Statements. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
nVent Electric plc | ||||||||
Registrant | ||||||||
By | /s/ Sara E. Zawoyski | |||||||
Sara E. Zawoyski | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
By | /s/ Randolph A. Wacker | |||||||
Randolph A. Wacker | ||||||||
Senior Vice President, Chief Accounting Officer and Treasurer |
Date: | July 29, 2022 | /s/ Beth A. Wozniak | ||||||
Beth A. Wozniak | ||||||||
Chief Executive Officer |
Date: | July 29, 2022 | /s/ Sara E. Zawoyski | ||||||
Sara E. Zawoyski | ||||||||
Executive Vice President and Chief Financial Officer |
Date: | July 29, 2022 | /s/ Beth A. Wozniak | ||||||
Beth A. Wozniak | ||||||||
Chief Executive Officer |
Date: | July 29, 2022 | /s/ Sara E. Zawoyski | ||||||
Sara E. Zawoyski | ||||||||
Executive Vice President and Chief Financial Officer |
Condensed Consolidated and Combined Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Statement [Abstract] | ||||
Net sales | $ 727.5 | $ 601.3 | $ 1,422.2 | $ 1,150.2 |
Cost of goods sold | 459.7 | 366.1 | 907.1 | 706.0 |
Gross profit | 267.8 | 235.2 | 515.1 | 444.2 |
Selling, general and administrative | 148.5 | 135.2 | 290.5 | 252.4 |
Research and development | 14.6 | 11.7 | 29.8 | 23.1 |
Operating income | 104.7 | 88.3 | 194.8 | 168.7 |
Net interest expense | 7.5 | 8.1 | 14.7 | 16.2 |
Other expense | 1.2 | 0.6 | 1.8 | 1.2 |
Income before income taxes | 96.0 | 79.6 | 178.3 | 151.3 |
Provision for income taxes | 16.1 | 13.4 | 30.6 | 19.7 |
Net income | 79.9 | 66.2 | 147.7 | 131.6 |
Comprehensive income, net of tax | ||||
Net income | 79.9 | 66.2 | 147.7 | 131.6 |
Changes in cumulative translation adjustment | (9.0) | 3.8 | (6.0) | 6.8 |
Changes in market value of derivative financial instruments, net of tax | 3.5 | (10.3) | (0.2) | 9.0 |
Comprehensive income | $ 74.4 | $ 59.7 | $ 141.5 | $ 147.4 |
Earnings per ordinary share | ||||
Basic pro forma earnings per ordinary share (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.89 | $ 0.78 |
Diluted pro forma earnings per ordinary share (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.88 | $ 0.78 |
Weighted average ordinary shares outstanding | ||||
Basic (shares) | 166.4 | 167.9 | 166.3 | 167.8 |
Diluted (shares) | 168.2 | 169.6 | 168.2 | 169.2 |
Cash dividends paid per ordinary share (in usd per share) | $ 0.175 | $ 0.175 | $ 0.35 | $ 0.35 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowances | $ 9.3 | $ 6.7 |
Ordinary shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares authorized (in shares) | 400,000,000.0 | 400,000,000.0 |
Ordinary shares issued (in shares) | 166,500,000 | 166,100,000 |
Supplemental Balance Sheet Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure Supplemental Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information
|
Basis of Presentation and Responsibility for Interim Financial Statements |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Responsibility for Interim Financial Statements | Basis of Presentation and Responsibility for Interim Financial Statements Business nVent Electric plc ("nVent," "we," "us," "our" or the "Company") is a leading global provider of electrical connection and protection solutions. The Company is comprised of three reporting segments: Enclosures, Electrical & Fastening Solutions and Thermal Management. The Company was incorporated in Ireland on May 30, 2017. Although our jurisdiction of organization is Ireland, we manage our affairs so that we are centrally managed and controlled in the United Kingdom (the "U.K.") and have tax residency in the U.K. Basis of presentation The accompanying unaudited condensed consolidated financial statements of nVent have been prepared following the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America ("GAAP") can be condensed or omitted. We are responsible for the unaudited condensed consolidated financial statements included in this document. The financial statements include all normal recurring adjustments that are considered necessary for the fair presentation of our financial position and operating results. As these are condensed financial statements, one should also read our consolidated and combined financial statements and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2021. Revenues, expenses, cash flows, assets and liabilities can and do vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be indicative of those for a full year. In March 2020, the World Health Organization declared novel coronavirus 2019 (“COVID-19”) a pandemic. The effects of the COVID-19 pandemic have had and may continue to have an unfavorable impact on our business. The broader implication of COVID-19 on our results of operations and overall financial performance remains uncertain. We may experience changes in customer demand or constrained supply that could materially adversely impact our business, financial condition, results of operations and overall financial performance in future periods.
|
Revenue |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 and vertical for each of our segments, as we believe these best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographic net sales information, based on geographic destination of the sale, was as follows:
Vertical net sales information was as follows:
Contract balances Contract assets and liabilities consisted of the following:
The $5.7 million increase in net contract assets from December 31, 2021 to June 30, 2022 was primarily the result of the timing of milestone payments. The majority of our contract liabilities at December 31, 2021 were recognized in revenue during the six months ended June 30, 2022. There were no material impairment losses recognized on our contract assets for the three and six months ended June 30, 2022 and 2021. Remaining performance obligations We have elected the practical expedient to disclose only the value of remaining performance obligations for contracts with an original expected length of one year or more. On June 30, 2022, we had $40.3 million of remaining performance obligations on contracts with an original expected duration of one year or more. We expect to recognize the majority of our remaining performance obligations on these contracts within the next 12 to 18 months.
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Restructuring |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring During the six months ended June 30, 2022 and the year ended December 31, 2021, we initiated and continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business. Restructuring related costs included in Selling, general and administrative expense in the Condensed Consolidated Statements of Income and Comprehensive Income included costs for severance and other restructuring costs as follows:
Other restructuring costs primarily consist of asset impairment and various contract termination costs. Restructuring costs by reportable segment were as follows:
Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per ShareBasic and diluted earnings per share were calculated as follows:
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Acquisitions |
6 Months Ended |
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Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On April 1, 2021, we acquired substantially all of the assets of Vynckier Enclosure Systems, Inc. ("Vynckier") for approximately $27.0 million in cash. Vynckier is a U.S. based manufacturer of high-quality non-metallic enclosures that we market as part of the nVent HOFFMAN product line within our Enclosures segment. The excess purchase price over tangible net assets and identified intangible assets acquired has been allocated to goodwill in the amount of $13.5 million, substantially all of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $6.1 million of definite-lived customer relationships with an estimated useful life of 11 years. On June 30, 2021, we acquired CIS Global LLC ("CIS Global") for approximately $202.4 million in cash. The CIS Global business is a leading provider of intelligent rack power distribution and server slides products, and operates within our Enclosures segment. The purchase price was funded primarily through borrowings under our Revolving Credit Facility (as defined in Note 9). The excess purchase price over tangible net assets and identified intangible assets acquired has been allocated to goodwill in the amount of $83.5 million, of which $50.0 million is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $78.0 million of definite-lived customer relationships with an estimated useful life of 16 years and $24.5 million of developed technology with an estimated useful life of 9 years to 12 years. The pro forma impact of these acquisitions is not material individually or in the aggregate.
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Goodwill and Other Identifiable Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets The changes in the carrying amount of goodwill by reportable segment were as follows:
Identifiable intangible assets consisted of the following:
Identifiable intangible asset amortization expense was $17.7 million and $16.0 million for the three months ended June 30, 2022 and 2021, respectively, and $35.5 million and $31.9 million for the six months ended June 30, 2022 and 2021, respectively. Estimated future amortization expense for identifiable intangible assets during the remainder of 2022 and the next five years is as follows:
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Derivatives and Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Financial Instruments | Derivatives and Financial Instruments Derivative financial instruments We are exposed to market risk related to changes in foreign currency exchange rates. To manage the volatility related to this exposure, we periodically enter into a variety of derivative financial instruments. Our objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. The derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality. Foreign currency contracts We conduct business in various locations throughout the world and are subject to market risk due to changes in the value of foreign currencies. We manage our economic and transaction exposure to certain market-based risks through the use of derivative instruments. These derivative instruments primarily consist of forward foreign currency contracts used to mitigate foreign currency exposure for certain foreign currency assets and liabilities. Our objective in holding these derivatives is to reduce the volatility in net earnings and cash flows associated with changes in foreign currency rates. The majority of our foreign currency contracts have an original maturity date of less than one year. These foreign currency contracts are not designated as hedging instruments; accordingly, changes in the fair value are recorded in current period earnings. At June 30, 2022 and December 31, 2021, we had outstanding foreign currency derivative contracts with gross notional U.S. dollar equivalent amounts of $163.1 million and $180.1 million, respectively. The impact of these contracts on the Condensed Consolidated Statements of Income and Comprehensive Income was not material for any period presented. Cross currency swaps At June 30, 2022 and December 31, 2021, we had outstanding cross currency swap agreements with a combined notional amount of $342.1 million and $369.1 million, respectively. The agreements are accounted for as either cash flow hedges, to hedge foreign currency fluctuations on certain intercompany debt, or as net investment hedges, to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. At June 30, 2022 and December 31, 2021, we had deferred foreign currency gains of $16.3 million and $16.7 million, respectively, in Accumulated other comprehensive loss associated with our cross currency swap activity. Interest rate swaps We are also exposed to interest rate risk fluctuations in connection with the planned issuance of long-term debt. To manage the volatility related to this exposure, we may use forward starting interest rate swaps to fix a portion of the interest cost associated with anticipated future financings. In 2020, we entered into a forward starting interest rate swap to hedge the variability of cash flows attributable to changes in the benchmark swap interest rate (London Inter-Bank Offer Rate) associated with the anticipated refinancing of the 2023 Notes (as defined below). The interest rate swap contract had a notional amount of $200.0 million, and was settled in the fourth quarter of 2021 in conjunction with the issuance of the 2031 Notes (as defined below). Accordingly, cash flows of $9.6 million relating to the settlement of interest rate swaps hedging the forecasted issuance of debt have been reflected as a component of financing cash flows. The resulting gain from the settlement is deferred to Accumulated other comprehensive loss, and is being reclassified to interest expense over the term of the 2031 Notes (underlying debt). This reclassification of the deferred gain impacts the interest expense recognized on the underlying debt that was hedged, and is therefore reflected as a component of operating cash flows in periods subsequent to settlement. Fair value of financial instruments The following methods were used to estimate the fair values of each class of financial instruments: •short-term financial instruments (cash and cash equivalents, accounts and notes receivable, accounts and notes payable and variable-rate debt) — recorded amount approximates fair value because of the short maturity period; •long-term fixed-rate debt, including current maturities — fair value is based on market quotes available for issuance of debt with similar terms, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; •foreign currency contract and interest rate swap agreements — fair values are determined through the use of models that consider various assumptions, including time value, yield curves, as well as other relevant economic measures, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; and •deferred compensation plan assets (mutual funds, common/collective trusts and cash equivalents for payment of certain non-qualified benefits for retired, terminated and active employees) — fair value of mutual funds and cash equivalents are based on quoted market prices in active markets that are classified as Level 1 in the valuation hierarchy defined by the accounting guidance; fair value of common/collective trusts are valued at net asset value ("NAV"), which is based on the fair value of underlying securities owned by the fund divided by the number of shares outstanding. The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows:
Financial assets and liabilities measured at fair value on a recurring basis were as follows:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt and the average interest rates on debt outstanding were as follows:
Senior notes In March 2018, nVent Finance S.à r.l. (“nVent Finance” or "Subsidiary Issuer"), a 100-percent owned subsidiary of nVent, issued $300.0 million aggregate principal amount of 3.950% senior notes due 2023 (the "2023 Notes") and $500.0 million aggregate principal amount of 4.550% senior notes due 2028 (the "2028 Notes"). In November 2021, nVent Finance issued $300.0 million aggregate principal amount of 2.750% senior notes due 2031 (the "2031 Notes" and, collectively with the 2028 Notes, the "Notes"). In December 2021, nVent Finance redeemed the $300.0 million aggregate principal amount of the 2023 Notes. Interest on the 2028 Notes is payable semi-annually in arrears on April 15 and October 15 of each year, and interest on the 2031 Notes is payable semi-annually in arrears on May 15 and November 15 of each year. The Notes are fully and unconditionally guaranteed as to payment by nVent (the "Parent Company Guarantor"). There are no subsidiaries that guarantee the Notes. The Parent Company Guarantor is a holding company that has no independent assets or operations unrelated to its investments in consolidated subsidiaries. The Subsidiary Issuer is a holding company that has no independent assets or operations unrelated to its investments in consolidated subsidiaries and the issuance of the Notes and other external debt. The Parent Company Guarantor’s principal source of cash flow, including cash flow to make payments on the Notes pursuant to the guarantees, is dividends from its subsidiaries. The Subsidiary Issuer’s principal source of cash flow is interest income from its subsidiaries. None of the subsidiaries of the Parent Company Guarantor or the Subsidiary Issuer is under any direct obligation to pay or otherwise fund amounts due on the Notes or the guarantees, whether in the form of dividends, distributions, loans or other payments. In addition, there may be statutory and regulatory limitations on the payment of dividends from certain subsidiaries of the Parent Company Guarantor or the Subsidiary Issuer. If such subsidiaries are unable to transfer funds to the Parent Company Guarantor or the Subsidiary Issuer and sufficient cash or liquidity is not otherwise available, the Parent Company Guarantor or the Subsidiary Issuer may not be able to make principal and interest payments on their outstanding debt, including the Notes or the guarantees. The Notes constitute general unsecured senior obligations of the Subsidiary Issuer and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. The guarantees of the Notes by the Parent Company Guarantor constitute general unsecured obligations of the Parent Company Guarantor and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. Subject to certain qualifications and exceptions, the indenture pursuant to which the Notes were issued contains covenants that, among other things, restrict nVent’s, nVent Finance’s and certain subsidiaries’ ability to merge or consolidate with another person, create liens or engage in sale and lease-back transactions. There are no significant restrictions on the ability of nVent to obtain funds from its subsidiaries by dividend or loan. None of the assets of nVent or its subsidiaries represents restricted net assets pursuant to the guidelines established by the Securities and Exchange Commission. Senior credit facilities In March 2018, the Company and its subsidiaries nVent Finance and Hoffman Schroff Holdings, Inc. entered into a credit agreement with a syndicate of banks providing for a five-year $200.0 million senior unsecured term loan facility and a five-year $600.0 million senior unsecured revolving credit facility. In September 2021, the Company and its subsidiaries nVent Finance and Hoffman Schroff Holdings, Inc. entered into an amended and restated credit agreement (the "Credit Agreement") with a syndicate of banks providing for a five-year $300.0 million senior unsecured term loan facility (the "Term Loan Facility") and a five-year $600.0 million senior unsecured revolving credit facility (the "Revolving Credit Facility" and, together with the Term Loan Facility, the "Senior Credit Facilities"), which amended and restated the March 2018 credit agreement. Borrowings under the Term Loan Facility are permitted on a delayed draw basis during the first year of the five-year term of the Term Loan Facility, and borrowings under the Revolving Credit Facility are permitted from time to time during the full five-year term of the Revolving Credit Facility. nVent Finance has the option to request to increase the Revolving Credit Facility in an aggregate amount of up to $300.0 million, subject to customary conditions, including the commitment of the participating lenders. Borrowings under the Senior Credit Facilities bear interest at a rate equal to an adjusted base rate, London Interbank Offered Rate (“LIBOR”), Euro Interbank Offer Rate (“EURIBOR”) or Sterling Overnight Index Average (“SONIA”), plus, in each case, an applicable margin. The applicable margin will be based on, at nVent Finance’s election, the Company's leverage level or public credit rating. As of June 30, 2022, the borrowing capacity under the Term Loan Facility on a delayed draw basis was $200.0 million, and the borrowing capacity under the Revolving Credit Facility was $442.1 million. Our debt agreements contain certain financial covenants, the most restrictive of which are in the Senior Credit Facilities, including that we may not permit (i) the ratio of our consolidated debt (net of our consolidated unrestricted cash in excess of $5.0 million but not to exceed $250.0 million) to our consolidated net income (excluding, among other things, non-cash gains and losses) before interest, taxes, depreciation, amortization and non-cash share-based compensation expense ("EBITDA") on the last day of any period of four consecutive fiscal quarters (each a "testing period") to exceed 3.75 to 1.00 (or, at nVent Finance's election and subject to certain conditions, 4.25 to 1.00 for four testing periods in connection with certain material acquisitions) and (ii) the ratio of our EBITDA to our consolidated interest expense for the same period to be less than 3.00 to 1.00. In addition, subject to certain qualifications and exceptions, the Senior Credit Facilities also contain covenants that, among other things, restrict our ability to create liens, merge or consolidate with another person, make acquisitions and incur subsidiary debt. As of June 30, 2022, we were in compliance with all financial covenants in our debt agreements, and there is no material uncertainty about our ongoing ability to meet those covenants. Debt outstanding, excluding unamortized issuance costs and discounts, at June 30, 2022 matures on a calendar year basis as follows:
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Income Taxes |
6 Months Ended |
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Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate for the six months ended June 30, 2022 was 17.2%, compared to 13.0% for the six months ended June 30, 2021. The liability for uncertain tax positions was $13.4 million and $15.6 million at June 30, 2022 and December 31, 2021, respectively. We record penalties and interest related to unrecognized tax benefits in Provision for income taxes and Net interest expense, respectively, on the Condensed Consolidated Statements of Income and Comprehensive Income, which is consistent with our past practices. In the six months ended June 30, 2021, we recorded a $5.2 million discrete tax benefit related to a foreign subsidiary.
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Shareholders' Equity |
6 Months Ended |
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Jun. 30, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share repurchases On July 23, 2018, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $500.0 million (the "2018 Authorization"). On February 19, 2019, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $380.0 million (the "2019 Authorization"). The 2018 Authorization and 2019 Authorization expired on July 23, 2021. On May 14, 2021, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $300.0 million (the "2021 Authorization"). The 2021 Authorization began on July 23, 2021 upon expiration of the 2018 Authorization and the 2019 Authorization, and expires on July 22, 2024. During the six months ended June 30, 2022, we repurchased 0.1 million of our ordinary shares for $3.9 million under the 2021 Authorization. During the six months ended June 30, 2021, we repurchased 0.9 million of our ordinary shares for $20.0 million under the 2018 Authorization. As of June 30, 2022 and December 31, 2021, outstanding share repurchases recorded in Other current liabilities were zero and $4.6 million, respectively. As of June 30, 2022, we have $200.0 million available for share repurchases under the 2021 Authorization. Dividends payable On May 13, 2022, the Board of Directors declared a quarterly cash dividend of $0.175 per ordinary share payable on August 5, 2022, to shareholders of record at the close of business on July 22, 2022. The balance of dividends payable included in Other current liabilities on our Condensed Consolidated Balance Sheets was $30.2 million and $30.5 million at June 30, 2022 and December 31, 2021, respectively.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We evaluate performance based on net sales and segment income and use a variety of ratios to measure performance of our reporting segments. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Segment income represents operating income exclusive of intangible amortization, acquisition related expenses, costs of restructuring activities, impairments and other unusual non-operating items. Financial information by reportable segment is as follows:
The following table presents a reconciliation of segment income to income before income taxes:
|
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranties and guarantees In connection with the disposition of our businesses or product lines, we may agree to indemnify purchasers for various potential liabilities relating to the sold business, such as pre-closing tax, product liability, warranty, environmental, or other obligations. The subject matter, amounts and duration of any such indemnification obligations vary for each type of liability indemnified and may vary widely from transaction to transaction. Generally, the maximum obligation under such indemnifications is not explicitly stated and as a result, the overall amount of these obligations cannot be reasonably estimated. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. We recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. We provide service and warranty policies on our products. Liability under service and warranty policies is based upon a review of historical warranty and service claim experience. Adjustments are made to accruals as claim data and historical experience warrant. Our liability for service and product warranties as of June 30, 2022 and December 31, 2021 was not material. Stand-by letters of credit, bank guarantees and bonds In the ordinary course of business, we are required to commit to bonds, letters of credit and bank guarantees that require payments to our customers for any non-performance. The outstanding face value of these instruments fluctuates with the value of our projects in process and in our backlog. In addition, we issue financial stand-by letters of credit primarily to secure our performance to third parties under self-insurance programs. As of June 30, 2022 and December 31, 2021, the outstanding value of bonds, letters of credit and bank guarantees totaled $38.5 million and $38.2 million, respectively.
|
Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Category | Geographic net sales information, based on geographic destination of the sale, was as follows:
Vertical net sales information was as follows:
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Contract assets and liabilities | Contract assets and liabilities consisted of the following:
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Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Related Costs | Restructuring related costs included in Selling, general and administrative expense in the Condensed Consolidated Statements of Income and Comprehensive Income included costs for severance and other restructuring costs as follows:
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Restructuring Costs By Segment | Restructuring costs by reportable segment were as follows:
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Restructuring Accrual Activity Recorded on Consolidated Balance Sheets | Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows:
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows:
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Goodwill and Other Identifiable Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segment were as follows:
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Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets consisted of the following:
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Schedule of Indefinite-Lived Intangible Assets | Identifiable intangible assets consisted of the following:
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Estimated Future Amortization Expense for Identifiable Intangible Assets | Estimated future amortization expense for identifiable intangible assets during the remainder of 2022 and the next five years is as follows:
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Supplemental Balance Sheet Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Supplemental Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information |
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Derivatives and Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Amounts and Estimated Fair Values of Long-term Debt and Derivative Financial Instruments | The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows:
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Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis were as follows:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Average Interest Rates on Debt Outstanding | Debt and the average interest rates on debt outstanding were as follows:
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Debt Outstanding Matures on Calendar Year Basis | Debt outstanding, excluding unamortized issuance costs and discounts, at June 30, 2022 matures on a calendar year basis as follows:
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information by Reportable Segment | Financial information by reportable segment is as follows:
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Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents a reconciliation of segment income to income before income taxes:
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Basis of Presentation and Responsibility for Interim Financial Statements - Separation from Pentair (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022
segment
| |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 57.4 | $ 48.9 |
Contract liabilities | 20.6 | 17.8 |
Net contract assets | 36.8 | $ 31.1 |
$ Change | ||
Contract assets | 8.5 | |
Contract liabilities | 2.8 | |
Net contract assets | $ (5.7) | |
% Change | ||
Contract assets | 17.40% | |
Contract liabilities | 15.70% | |
Net contract assets | 18.30% |
Revenue - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2022 |
|
Revenue from Contract with Customer [Abstract] | ||
Net contract assets (liabilities) | $ 5,700,000 | |
Impairment losses on contract assets | $ 0 | $ 0 |
Revenue - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 40.3 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period | 12 months |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period | 18 months |
Restructuring - Costs Included in Selling, General & Administrative Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 2.3 | $ 4.3 | $ 4.3 | $ 5.1 |
Severance and related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1.7 | 2.5 | 3.7 | 2.7 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0.6 | $ 1.8 | $ 0.6 | $ 2.4 |
Restructuring - Costs by Reportable Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring costs | $ 2.3 | $ 4.3 | $ 4.3 | $ 5.1 |
Enclosures | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring costs | 2.1 | 2.2 | 2.3 | 3.2 |
Thermal Management | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring costs | 0.0 | 0.4 | 0.0 | 0.6 |
Electrical & Fastening Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring costs | 0.1 | 1.1 | 0.1 | 1.3 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring costs | $ 0.1 | $ 0.6 | $ 1.9 | $ 0.0 |
Restructuring - Accrual Activity (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 2.4 | $ 6.6 |
Costs incurred | 3.7 | 2.7 |
Cash payments and other | (3.8) | (5.4) |
Ending balance | $ 2.3 | $ 3.9 |
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Earnings Per Share [Abstract] | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 79.9 | $ 67.8 | $ 66.2 | $ 65.4 | $ 147.7 | $ 131.6 |
Weighted average common shares outstanding | ||||||
Basic (shares) | 166.4 | 167.9 | 166.3 | 167.8 | ||
Dilutive impact of stock options, restricted stock units and performance share units | 1.8 | 1.7 | 1.9 | 1.4 | ||
Diluted (shares) | 168.2 | 169.6 | 168.2 | 169.2 | ||
Earnings per ordinary share | ||||||
Basic pro forma earnings per ordinary share (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.89 | $ 0.78 | ||
Diluted pro forma earnings per ordinary share (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.88 | $ 0.78 | ||
Anti-dilutive stock options excluded from the calculation of diluted earnings per share | 0.7 | 0.8 | 0.5 | 1.0 |
Goodwill and Other Identifiable Intangible Assets - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 17.7 | $ 16.0 | $ 35.5 | $ 31.9 |
Goodwill and Other Identifiable Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning Balance | $ 2,186.7 |
Acquisitions/divestitures | 0.2 |
Foreign currency translation/other | (8.3) |
Ending Balance | 2,178.6 |
Enclosures | |
Goodwill [Roll Forward] | |
Beginning Balance | 420.4 |
Acquisitions/divestitures | 0.2 |
Foreign currency translation/other | (8.0) |
Ending Balance | 412.6 |
Electrical & Fastening Solutions | |
Goodwill [Roll Forward] | |
Beginning Balance | 714.3 |
Acquisitions/divestitures | 0.0 |
Foreign currency translation/other | (0.3) |
Ending Balance | 1,052.0 |
Thermal Management | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,052.0 |
Acquisitions/divestitures | 0.0 |
Foreign currency translation/other | 0.0 |
Ending Balance | $ 714.0 |
Goodwill and Other Identifiable Intangible Assets - Definite-life Intangible Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 1,330.9 | $ 1,336.2 |
Accumulated amortization | (500.2) | (465.5) |
Net | 830.7 | 870.7 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 1,290.7 | 1,295.4 |
Accumulated amortization | (486.8) | (454.0) |
Net | 803.9 | 841.4 |
Proprietary technology and patents | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 40.2 | 40.8 |
Accumulated amortization | (13.4) | (11.5) |
Net | $ 26.8 | $ 29.3 |
Goodwill and Other Identifiable Intangible Assets - Indefinite-life Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortization | $ 17.7 | $ 16.0 | $ 35.5 | $ 31.9 | |
Cost | 1,604.0 | 1,604.0 | $ 1,609.3 | ||
Accumulated amortization | (500.2) | (500.2) | (465.5) | ||
Net | 1,103.8 | 1,103.8 | 1,143.8 | ||
Trade names | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Indefinite-life intangibles | $ 273.1 | $ 273.1 | $ 273.1 |
Goodwill and Other Identifiable Intangible Assets - Estimated Future Amortization Expense for Identifiable Intangible Assets (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Q3-Q4 2022 | $ 35.4 |
2023 | 70.5 |
2024 | 69.9 |
2025 | 69.9 |
2026 | 69.9 |
2027 | $ 69.9 |
Derivatives and Financial Instruments - Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivative [Line Items] | ||
Derivative instruments in hedges, net | $ 16.3 | $ 16.7 |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | 163.1 | 180.1 |
Currency Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | 342.1 | 369.1 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 200.0 | |
AOCI, Derivative Qualifying as Hedge, Excluded Component, after Tax | $ 9.6 |
Derivatives and Financial Instruments - Recorded Amounts and Estimated Fair Values (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivative [Line Items] | ||
Total | $ 1,054.2 | |
Recorded Amount | ||
Derivative [Line Items] | ||
Variable rate debt | 254.2 | $ 205.5 |
Fixed rate debt | 800.0 | 800.0 |
Total | 1,054.2 | 1,005.5 |
Fair Value | ||
Derivative [Line Items] | ||
Variable rate debt | 254.2 | 205.5 |
Fixed rate debt | 745.0 | 866.8 |
Total | $ 999.2 | $ 1,072.3 |
Debt - Senior Notes (Details) - USD ($) |
Jun. 30, 2022 |
Jun. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 1,054,200,000 | |||
Senior Notes [Member] | senior notes three point | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | 300,000,000 | |||
Average interest rate | 3.95% | |||
Senior Notes [Member] | Senior Notes, Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | 500,000,000 | |||
Average interest rate | 4.55% | 4.55% | ||
Long-term Debt, Gross | 500,000,000.0 | $ 500,000,000.0 | ||
Senior Notes [Member] | Senior Notes, Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | 300,000,000 | |||
Average interest rate | 2.75% | 2.75% | ||
Long-term Debt, Gross | $ 300,000,000 | $ 300,000,000.0 |
Debt - Schedule of Contracutal Debt Maturities (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Q3-Q4 2022 | $ 2.5 |
2023 | 5.0 |
2024 | 5.6 |
2025 | 7.5 |
2026 | 233.6 |
2027 | 0.0 |
Thereafter | 800.0 |
Total | $ 1,054.2 |
Income Taxes (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Income Tax Examination [Line Items] | |||
Effective income tax rate | 17.20% | 13.00% | |
Total gross liability for unrecognized tax benefits | $ 13.4 | $ 15.6 | |
Foreign Tax Authority | |||
Income Tax Examination [Line Items] | |||
Discrete tax benefit | $ 5.2 |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
May 13, 2022 |
Dec. 31, 2021 |
May 14, 2021 |
Feb. 19, 2019 |
Jul. 23, 2018 |
|
Equity [Abstract] | |||||||||
Repurchase of shares of our common stock up to a maximum aggregate value | $ 300,000,000 | $ 380,000,000 | $ 500,000,000 | ||||||
Stock Repurchased During Period, Shares | 0.1 | 0.9 | |||||||
Stock Repurchased During Period, Value | $ (3,900,000) | $ (20,000,000.0) | $ (3,900,000) | $ (20,000,000) | |||||
Outstanding share repurchases | 0 | $ 4,600,000 | |||||||
Remaining authorized repurchase amount | 200,000,000 | ||||||||
Dividends payable (in dollars per share) | $ 0.175 | ||||||||
Dividends payable | $ 30,200,000 | $ 30,500,000 |
Segment Information - Financial Information by Reportable Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 727.5 | $ 601.3 | $ 1,422.2 | $ 1,150.2 |
Segment income | 104.7 | 88.3 | 194.8 | 168.7 |
Enclosures | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 380.8 | 300.4 | 740.2 | 577.4 |
Segment income | 61.5 | 53.7 | 111.8 | 102.5 |
Electrical & Fastening Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 200.9 | 169.2 | 388.5 | 317.1 |
Segment income | 58.8 | 48.9 | 105.9 | 88.1 |
Thermal Management | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 145.8 | 131.7 | 293.5 | 255.7 |
Segment income | 28.3 | 24.9 | 60.7 | 45.9 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment income | (23.4) | (17.3) | (43.0) | (29.2) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment income | $ 125.2 | $ 110.2 | $ 235.4 | $ 207.3 |
Commitments and Contingencies (Details) - USD ($) |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for services and product warranties | $ 0 | $ 0 |
Stand-by Letters of Credit, Bank Guarantees and Bonds | ||
Guarantor Obligations [Line Items] | ||
Obligations outstanding | $ 38,500,000 | $ 38,200,000 |
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