(State or other jurisdiction of | (I.R.S. Employer | |||||||
incorporation or organization) | 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 |
Item 1. Financial Statements |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other income, net | ( | ( | ( | ( | |||||||||||||||||||
Earnings before income taxes | |||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares – basic | |||||||||||||||||||||||
Weighted average shares – diluted | |||||||||||||||||||||||
Net earnings per share – basic | $ | $ | $ | $ | |||||||||||||||||||
Net earnings per share – diluted | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation (loss) income | ( | ( | ( | ||||||||||||||||||||
Pension liability adjustment, net of deferred taxes of $ | ( | ||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
Gains (losses) on hedging derivatives, net of deferred taxes of $( | ( | ||||||||||||||||||||||
Reclassifications of (gains) losses on hedging derivatives to net earnings, net of taxes of $ | ( | ( | ( | ||||||||||||||||||||
Total derivatives | ( | ||||||||||||||||||||||
Net other comprehensive (loss) income | ( | ( | |||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
April 30, 2022 | July 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowances of $ | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued employee compensation and related taxes | |||||||||||
Income taxes payable | |||||||||||
Dividend payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Non-current income taxes payable | |||||||||||
Deferred income taxes | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Stock-based compensation plans | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Nine Months Ended April 30, | |||||||||||
2022 | 2021 | ||||||||||
Operating Activities | |||||||||||
Net earnings | $ | $ | |||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | ( | ||||||||||
Stock-based compensation expense | |||||||||||
Other, net | |||||||||||
Changes in operating assets and liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Acquisitions, net of cash acquired | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Proceeds from long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Change in short-term borrowings | ( | ||||||||||
Purchase of non-controlling interests | ( | ||||||||||
Purchase of treasury stock | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Tax withholding payments for stock compensation transactions | ( | ( | |||||||||
Exercise of stock options | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental Cash Flow Information | |||||||||||
Income taxes paid | $ | $ | |||||||||
Interest paid | $ | $ | |||||||||
Supplemental Disclosure of Non-Cash Operating and Investing Transactions | |||||||||||
Accrued property, plant and equipment additions | $ | $ | |||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | $ | |||||||||
Transfer of operating lease asset and operating lease liability | $ | $ | ( | ||||||||
Recognized financing lease asset and finance lease liability | $ | $ | |||||||||
Three Months Ended April 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Non- Controlling Interest | Stock-Based Compensation Plans | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||
Balance January 31, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | |||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation and other activity | |||||||||||||||||||||||||||||||||||||||||||||||
Balance April 30, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Balance January 31, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | |||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation and other activity | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance April 30, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ |
Nine months ended April 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Non- Controlling Interest | Stock-Based Compensation Plans | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||
Balance July 31, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation and other activity | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance April 30, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Balance July 31, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Purchase of non-controlling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation and other activity | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance April 30, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
U.S. and Canada | $ | $ | $ | $ | |||||||||||||||||||
Europe, Middle East and Africa (EMEA) | |||||||||||||||||||||||
Asia Pacific | |||||||||||||||||||||||
Latin America | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
April 30, 2022 | July 31, 2021 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished products | |||||||||||
Total inventories, net | $ | $ |
April 30, 2022 | July 31, 2021 | ||||||||||
Land | $ | $ | |||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Computer software | |||||||||||
Construction in progress | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Total property, plant and equipment, net | $ | $ |
Engine Products Segment | Industrial Products Segment | Total | |||||||||||||||
Balance as of July 31, 2021 | $ | $ | $ | ||||||||||||||
Goodwill acquired | |||||||||||||||||
Foreign currency translation | ( | ( | ( | ||||||||||||||
Balance as of April 30, 2022 | $ | $ | $ |
Customer Relationships | Patents, Trademarks and Technology | ||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Total Net Value | Gross Carrying Amount | Accumulated Amortization | Total Net Value | Total | |||||||||||||||||||||||||||||||||||
Balance as of July 31, 2021 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Intangible assets acquired | |||||||||||||||||||||||||||||||||||||||||
Amortization expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance as of April 30, 2022 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Weighted average common shares – basic | |||||||||||||||||||||||
Dilutive impact of stock-based awards | |||||||||||||||||||||||
Weighted average common shares – diluted | |||||||||||||||||||||||
Net earnings per share – basic | $ | $ | $ | $ | |||||||||||||||||||
Net earnings per share – diluted | $ | $ | $ | $ | |||||||||||||||||||
Stock options excluded from net earnings per share calculation |
Foreign Currency Translation Adjustment | Pension Benefits | Derivative Financial Instruments | Total | ||||||||||||||||||||
Balance as of January 31, 2022, net of tax | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive (loss) income before reclassifications and tax | ( | ( | (1) | ( | |||||||||||||||||||
Tax benefit (expense) | ( | ||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | ( | ( | ( | ||||||||||||||||||||
Reclassifications, before tax | (2) | ( | (3) | ||||||||||||||||||||
Tax (expense) benefit | ( | ( | |||||||||||||||||||||
Reclassifications, net of tax | ( | ||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | ||||||||||||||||||||
Balance as of April 30, 2022, net of tax | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Balance as of January 31, 2021, net of tax | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive (loss) income before reclassifications and tax | ( | (1) | |||||||||||||||||||||
Tax expense | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | ( | ||||||||||||||||||||||
Reclassifications, before tax | (2) | (3) | |||||||||||||||||||||
Tax expense | ( | ( | ( | ||||||||||||||||||||
Reclassifications, net of tax | |||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ||||||||||||||||||||||
Balance as of April 30, 2021, net of tax | $ | ( | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation Adjustment | Pension Benefits | Derivative Financial Instruments | Total | ||||||||||||||||||||
Balance as of July 31, 2021, net of tax | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive (loss) income before reclassifications and tax | ( | ( | (1) | ( | |||||||||||||||||||
Tax benefit (expense) | ( | ||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | ( | ( | ( | ||||||||||||||||||||
Reclassifications, before tax | (2) | ( | (3) | ||||||||||||||||||||
Tax expense | ( | ( | |||||||||||||||||||||
Reclassifications, net of tax | ( | ||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | |||||||||||||||||||||
Balance as of April 30, 2022, net of tax | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Balance as of July 31, 2020, net of tax | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassifications and tax | (1) | ( | |||||||||||||||||||||
Tax (expense) benefit | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | ( | ||||||||||||||||||||||
Reclassifications, before tax | (2) | ( | (3) | ||||||||||||||||||||
Tax (expense) benefit | ( | ( | |||||||||||||||||||||
Reclassifications, net of tax | ( | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
Balance as of April 30, 2021, net of tax | $ | ( | $ | ( | $ | ( | $ | ( |
Options | Weighted Average Exercise Price | ||||||||||
Balance outstanding as of July 31, 2021 | $ | ||||||||||
Granted | |||||||||||
Exercised | ( | ||||||||||
Canceled/forfeited | ( | ||||||||||
Balance outstanding as of April 30, 2022 | $ |
Performance Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Balance outstanding as of July 31, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Canceled | ( | |||||||||||||
Balance outstanding as of April 30, 2022 | $ |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on assets | ( | ( | ( | ( | |||||||||||||||||||
Prior service cost amortization | |||||||||||||||||||||||
Actuarial loss amortization | |||||||||||||||||||||||
Settlement charge | |||||||||||||||||||||||
Curtailment charge | |||||||||||||||||||||||
Net periodic pension costs | $ | $ | $ | $ | |||||||||||||||||||
Notional Amounts | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
April 30, | July 31, | April 30, | July 31, | April 30, | July 31, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Net investment hedges | ||||||||||||||||||||||||||||||||||||||
Total designated | ||||||||||||||||||||||||||||||||||||||
Not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | ||||||||||||||||||||||||||||||||||||||
Total not designated | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
April 30, 2022 | July 31, 2021 | |||||||||||||
Contingent liability for standby letters of credit issued under the Company’s revolving credit facility | $ | $ | ||||||||||||
Amounts drawn for letters of credit under the Company’s revolving credit facility | $ | $ |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales | |||||||||||||||||||||||
Engine Products segment | $ | $ | $ | $ | |||||||||||||||||||
Industrial Products segment | |||||||||||||||||||||||
Total Company | $ | $ | $ | $ | |||||||||||||||||||
Earnings before income taxes | |||||||||||||||||||||||
Engine Products segment | $ | $ | $ | $ | |||||||||||||||||||
Industrial Products segment | |||||||||||||||||||||||
Corporate and unallocated | ( | ( | ( | ( | |||||||||||||||||||
Total Company | $ | $ | $ | $ |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Engine Products segment | |||||||||||||||||||||||
Off-Road | $ | $ | $ | $ | |||||||||||||||||||
On-Road | |||||||||||||||||||||||
Aftermarket | |||||||||||||||||||||||
Aerospace and Defense | |||||||||||||||||||||||
Total Engine Products segment | |||||||||||||||||||||||
Industrial Products segment | |||||||||||||||||||||||
Industrial Filtration Solutions | |||||||||||||||||||||||
Gas Turbine Systems | |||||||||||||||||||||||
Special Applications | |||||||||||||||||||||||
Total Industrial Products segment | |||||||||||||||||||||||
Total Company | $ | $ | $ | $ |
Three Months Ended April 30, | |||||||||||||||||||||||
2022 | % of net sales | 2021 | % of net sales | ||||||||||||||||||||
Net sales | $ | 853.2 | $ | 765.0 | |||||||||||||||||||
Cost of sales | 584.2 | 68.5 | % | 507.0 | 66.3 | % | |||||||||||||||||
Gross profit | 269.0 | 31.5 | 258.0 | 33.7 | |||||||||||||||||||
Operating expenses | 158.0 | 18.5 | 148.6 | 19.4 | |||||||||||||||||||
Operating income | 111.0 | 13.0 | 109.4 | 14.3 | |||||||||||||||||||
Interest expense | 3.8 | 0.4 | 3.2 | 0.4 | |||||||||||||||||||
Other income, net | (4.1) | (0.5) | (4.7) | (0.6) | |||||||||||||||||||
Earnings before income taxes | 111.3 | 13.0 | 110.9 | 14.5 | |||||||||||||||||||
Income taxes | 28.3 | 3.3 | 26.5 | 3.5 | |||||||||||||||||||
Net earnings | $ | 83.0 | 9.7 | % | $ | 84.4 | 11.0 | % |
Nine Months Ended April 30, | |||||||||||||||||||||||
2022 | % of net sales | 2021 | % of net sales | ||||||||||||||||||||
Net sales | $ | 2,416.6 | $ | 2,080.8 | |||||||||||||||||||
Cost of sales | 1,640.8 | 67.9 | % | 1,374.8 | 66.1 | % | |||||||||||||||||
Gross profit | 775.8 | 32.1 | 706.0 | 33.9 | |||||||||||||||||||
Operating expenses | 461.6 | 19.1 | 433.3 | 20.8 | |||||||||||||||||||
Operating income | 314.2 | 13.0 | 272.7 | 13.1 | |||||||||||||||||||
Interest expense | 10.8 | 0.4 | 9.9 | 0.5 | |||||||||||||||||||
Other income, net | (6.4) | (0.3) | (4.2) | (0.2) | |||||||||||||||||||
Earnings before income taxes | 309.8 | 12.8 | 267.0 | 12.8 | |||||||||||||||||||
Income taxes | 78.0 | 3.2 | 64.4 | 3.1 | |||||||||||||||||||
Net earnings | $ | 231.8 | 9.6 | % | $ | 202.6 | 9.7 | % |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales | |||||||||||||||||||||||
Engine Products segment | $ | 601.0 | $ | 531.0 | $ | 1,682.3 | $ | 1,429.6 | |||||||||||||||
Industrial Products segment | 252.2 | 234.0 | 734.3 | 651.2 | |||||||||||||||||||
Total Company | $ | 853.2 | $ | 765.0 | $ | 2,416.6 | $ | 2,080.8 | |||||||||||||||
Earnings before income taxes | |||||||||||||||||||||||
Engine Products segment | $ | 89.2 | $ | 84.4 | $ | 226.5 | $ | 206.1 | |||||||||||||||
Industrial Products segment | 38.8 | 37.6 | 114.6 | 90.9 | |||||||||||||||||||
Corporate and unallocated(1) | (16.7) | (11.1) | (31.3) | (30.0) | |||||||||||||||||||
Total Company | $ | 111.3 | $ | 110.9 | $ | 309.8 | $ | 267.0 |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Off-Road | $ | 108.2 | $ | 95.7 | $ | 297.6 | $ | 238.4 | |||||||||||||||
On-Road | 36.1 | 39.7 | 100.7 | 105.0 | |||||||||||||||||||
Aftermarket | 425.4 | 371.4 | 1,198.1 | 1,018.7 | |||||||||||||||||||
Aerospace and Defense | 31.3 | 24.2 | 85.9 | 67.5 | |||||||||||||||||||
Total Engine Products segment | $ | 601.0 | $ | 531.0 | $ | 1,682.3 | $ | 1,429.6 | |||||||||||||||
Engine Products segment earnings before income taxes | $ | 89.2 | $ | 84.4 | $ | 226.5 | $ | 206.1 |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Industrial Filtration Solutions (IFS) | $ | 178.5 | $ | 163.7 | $ | 515.2 | $ | 449.3 | |||||||||||||||
Gas Turbine Systems | 30.5 | 25.5 | 76.7 | 71.9 | |||||||||||||||||||
Special Applications | 43.2 | 44.8 | 142.4 | 130.0 | |||||||||||||||||||
Total Industrial Products segment | $ | 252.2 | $ | 234.0 | $ | 734.3 | $ | 651.2 | |||||||||||||||
Industrial Products segment earnings before income taxes | $ | 38.8 | $ | 37.6 | $ | 114.6 | $ | 90.9 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Still Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
February 1 - February 28, 2022 | 218,994 | $ | 52.52 | 218,994 | 6,274,264 | |||||||||||||||||||||
March 1 - March 31, 2022 | 517,448 | 51.29 | 517,448 | 5,756,816 | ||||||||||||||||||||||
April 1 - April 30, 2022 | — | — | — | 5,756,816 | ||||||||||||||||||||||
Total | 736,442 | $ | 51.65 | 736,442 | 5,756,816 |
101 | The following information from Donaldson Company, Inc. Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2022, as filed with the Securities and Exchange Commission, formatted in inline eXtensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Changes in Stockholders’ Equity and (vi) the Notes to Condensed Consolidated Financial Statements | ||||
104 | The cover page from Donaldson Company Inc.’s Quarterly Report on Form 10-Q for the quarter ended April 30, 2022, formatted in iXBRL (included as Exhibit 101) |
* | Exhibit has previously been filed with the Securities and Exchange Commission and is incorporated herein by reference as an exhibit. | ||||
DONALDSON COMPANY, INC. | ||||||||
(Registrant) |
Date: June 6, 2022 | By: | /s/ Tod E. Carpenter | ||||||
Tod E. Carpenter Chairman, President and Chief Executive Officer (duly authorized officer) | ||||||||
Date: June 6, 2022 | By: | /s/ Scott J. Robinson | ||||||
Scott J. Robinson Senior Vice President and Chief Financial Officer (principal financial officer) | ||||||||
Date: June 6, 2022 | By: | /s/ Andrew J. Cebulla | ||||||
Andrew J. Cebulla Corporate Controller (principal accounting officer) | ||||||||
Date: | June 6, 2022 | /s/ Tod E. Carpenter | ||||||
Tod E. Carpenter Chairman, President and Chief Executive Officer |
Date: | June 6, 2022 | /s/ Scott J. Robinson | ||||||
Scott J. Robinson Senior Vice President and Chief Financial Officer |
Date: | June 6, 2022 | /s/ Tod E. Carpenter | ||||||
Tod E. Carpenter Chairman, President and Chief Executive Officer |
Date: | June 6, 2022 | /s/ Scott J. Robinson | ||||||
Scott J. Robinson Senior Vice President and Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Income Statement [Abstract] | ||||
Net sales | $ 853.2 | $ 765.0 | $ 2,416.6 | $ 2,080.8 |
Cost of sales | 584.2 | 507.0 | 1,640.8 | 1,374.8 |
Gross profit | 269.0 | 258.0 | 775.8 | 706.0 |
Operating expenses | 158.0 | 148.6 | 461.6 | 433.3 |
Operating income | 111.0 | 109.4 | 314.2 | 272.7 |
Interest expense | 3.8 | 3.2 | 10.8 | 9.9 |
Other income, net | (4.1) | (4.7) | (6.4) | (4.2) |
Earnings before income taxes | 111.3 | 110.9 | 309.8 | 267.0 |
Income taxes | 28.3 | 26.5 | 78.0 | 64.4 |
Net earnings | $ 83.0 | $ 84.4 | $ 231.8 | $ 202.6 |
Weighted average shares - basic (in shares) | 123.4 | 126.4 | 123.9 | 126.6 |
Weighted average shares - diluted (in shares) | 124.6 | 128.3 | 125.6 | 128.2 |
Net earnings per share - basic (in usd per share) | $ 0.67 | $ 0.67 | $ 1.87 | $ 1.60 |
Net earnings per share - diluted (in usd per share) | $ 0.67 | $ 0.66 | $ 1.85 | $ 1.58 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 83.0 | $ 84.4 | $ 231.8 | $ 202.6 |
Other comprehensive (loss) income: | ||||
Foreign currency translation (loss) income | (42.8) | (0.2) | (70.4) | 36.3 |
Pension liability adjustment, net of deferred taxes of $0.8, $(5.9), $(0.3) and $(7.6), respectively | (1.8) | 18.5 | 2.2 | 24.6 |
Derivatives: | ||||
Gains (losses) on hedging derivatives, net of deferred taxes of $(0.8), $(0.2), $(1.2) and $0.1, respectively | 2.6 | 1.0 | 4.3 | (0.1) |
Reclassifications of (gains) losses on hedging derivatives to net earnings, net of taxes of $0.1, $(0.1), $0.0 and $0.1, respectively | (0.2) | 0.1 | (0.2) | (0.4) |
Total derivatives | 2.4 | 1.1 | 4.1 | (0.5) |
Net other comprehensive (loss) income | (42.2) | 19.4 | (64.1) | 60.4 |
Comprehensive income | $ 40.8 | $ 103.8 | $ 167.7 | $ 263.0 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Deferred taxes on pension liability | $ 0.8 | $ (5.9) | $ (0.3) | $ (7.6) |
Deferred taxes on hedging derivatives | (0.8) | (0.2) | (1.2) | 0.1 |
Taxes on reclassifications of derivatives to net income | $ 0.1 | $ (0.1) | $ 0.0 | $ 0.1 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Apr. 30, 2022 |
Jul. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 5.7 | $ 7.0 |
Preferred stock, par value (in usd per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 5.00 | $ 5.00 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares issued (in shares) | 151,643,194 | 151,643,194 |
Treasury stock, shares (in shares) | 28,794,251 | 26,620,560 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Non- Controlling Interest |
Stock-Based Compensation Plans |
Accumulated Other Comprehensive Loss |
Treasury Stock |
---|---|---|---|---|---|---|---|---|
Beginning Balance at Jul. 31, 2020 | $ 992.9 | $ 758.2 | $ 0.0 | $ 1,430.0 | $ 5.8 | $ 15.9 | $ (184.0) | $ (1,033.0) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net earnings | 202.6 | 202.6 | ||||||
Other comprehensive (loss) income | 60.4 | 60.4 | ||||||
Treasury stock acquired | (78.7) | (78.7) | ||||||
Dividends declared | (52.9) | (52.9) | ||||||
Purchase of non-controlling interests | (3.7) | 2.2 | (5.9) | |||||
Stock compensation and other activity | 32.8 | 3.2 | (0.6) | 0.1 | (3.8) | 33.9 | ||
Ending Balance at Apr. 30, 2021 | 1,153.4 | 758.2 | 5.4 | 1,579.1 | 0.0 | 12.1 | (123.6) | (1,077.8) |
Beginning Balance at Jan. 31, 2021 | 1,074.4 | 758.2 | 5.1 | 1,494.4 | 0.0 | 13.2 | (143.0) | (1,053.5) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net earnings | 84.4 | 84.4 | ||||||
Other comprehensive (loss) income | 19.4 | 19.4 | ||||||
Treasury stock acquired | (32.4) | (32.4) | ||||||
Dividends declared | 0.1 | 0.1 | ||||||
Stock compensation and other activity | 7.5 | 0.3 | 0.2 | (1.1) | 8.1 | |||
Ending Balance at Apr. 30, 2021 | 1,153.4 | 758.2 | 5.4 | 1,579.1 | 0.0 | 12.1 | (123.6) | (1,077.8) |
Beginning Balance at Jul. 31, 2021 | 1,137.1 | 758.2 | 5.8 | 1,608.4 | 0.0 | 12.8 | (118.2) | (1,129.9) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net earnings | 231.8 | 231.8 | ||||||
Other comprehensive (loss) income | (64.1) | (64.1) | ||||||
Treasury stock acquired | (153.7) | (153.7) | ||||||
Dividends declared | (54.2) | (54.2) | ||||||
Stock compensation and other activity | 26.7 | 7.1 | (0.4) | 4.2 | 15.8 | |||
Ending Balance at Apr. 30, 2022 | 1,123.6 | 758.2 | 12.9 | 1,785.6 | 0.0 | 17.0 | (182.3) | (1,267.8) |
Beginning Balance at Jan. 31, 2022 | 1,116.8 | 758.2 | 12.0 | 1,702.5 | 0.0 | 15.5 | (140.1) | (1,231.3) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net earnings | 83.0 | 83.0 | ||||||
Other comprehensive (loss) income | (42.2) | (42.2) | ||||||
Treasury stock acquired | (38.1) | (38.1) | ||||||
Dividends declared | 0.1 | 0.1 | ||||||
Stock compensation and other activity | 4.0 | 0.9 | 0.0 | 1.5 | 1.6 | |||
Ending Balance at Apr. 30, 2022 | $ 1,123.6 | $ 758.2 | $ 12.9 | $ 1,785.6 | $ 0.0 | $ 17.0 | $ (182.3) | $ (1,267.8) |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares |
9 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends, per share (in usd per share) | $ 0.44 | $ 0.42 |
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Apr. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Donaldson Company, Inc. and its subsidiaries (the Company) have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of earnings, comprehensive income, financial position, cash flows and changes in stockholders’ equity have been included and are of a normal recurring nature. Operating results for the three and nine months ended April 30, 2022 are not necessarily indicative of the results that may be expected for future periods. The year end Condensed Consolidated Balance Sheet information was derived from the Company’s Audited Consolidated Financial Statements but does not include all disclosures required by GAAP. For further information, refer to the Audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s joint ventures are not majority-owned and are accounted for under the equity method. Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Operating Environment Russia and Ukraine Following the Russia and Ukraine conflict, the Company complied with all sanctions, including those from the European Union, Great Britain and the U.S. and ceased direct product shipments into Russia and Belarus. Total revenues associated with customers in these areas are less than 2% of the Company’s net sales in the Condensed Consolidated Statements of Earnings. As of April 30, 2022, the Company has related asset exposure in the form of accounts receivables and inventories of approximately $6.8 million. The Company is monitoring the regional and global ramifications of the events unfolding. Supply Chain Disruptions The Company continues to experience supply chain disruptions, including global logistics and labor challenges and constrained supplies of steel, petrochemical products and filter media. These disruptions have increased the Company’s input costs significantly and extended lead times. The Company has undertaken steps to mitigate these negative impacts, such as increasing prices, evaluating alternative supply chain options, qualifying additional suppliers and strategic raw material purchases. This dynamic impacted results through the third quarter of fiscal 2022 and is expected to continue into fiscal 2023. Inflation In connection with the supply chain disruptions described above, the Company has experienced the effects of inflation related to raw materials and operating expenses, including freight, labor and energy. These inflationary pressures have had an adverse impact on profit margins, particularly in recent months. The Company continues to negotiate price increases with its customers and is working with its suppliers to mitigate these cost increases. Inflation impacted results through the third quarter of fiscal 2022 and is expected to continue into fiscal 2023. New Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the Financial Accounting Standards Board’s (FASB) Accounting Standards Updates (ASUs) issued but not yet adopted. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2024. The Company is currently evaluating the impact the adoption will have on its financial statements.
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Acquisitions |
9 Months Ended |
---|---|
Apr. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Solaris Biotechnology Srl (Solaris) On November 22, 2021, the Company acquired Solaris, headquartered in Porto Mantovano, Italy, with U.S. operations based in Berkeley, California, for cash consideration of approximately €41 million, or $45.7 million, net of cash acquired. Solaris designs and manufactures bioprocessing equipment, including bioreactors, fermenters and tangential flow filtration systems for use in food and beverage, biotechnology and other life sciences markets. Solaris is reported within the Company’s Industrial Filtration Solutions business in the Industrial Products segment. The Company assigned the fair values to the net assets acquired resulting in $27.2 million for goodwill and $20.8 million for intangible assets, none of which are expected to be deductible for tax purposes, as well as a deferred tax liability of $4.4 million. Net working capital was $2.1 million. Net sales of Solaris were immaterial to the Condensed Consolidated Statements of Earnings for the three and nine months ended April 30, 2022. Pearson Arnold Industrial Services (PAIS) On November 1, 2021, the Company acquired PAIS, headquartered in the U.S., for cash consideration of approximately $3.3 million, net of cash acquired. PAIS provides equipment, parts and services for dust, mist and fume collection systems, industrial fans and compressed air systems. PAIS is reported within the Industrial Products segment. The Company assigned the fair values to the net assets acquired resulting in $0.4 million for goodwill and $3.0 million for intangible assets, all of which are expected to be deductible for tax purposes. During the three months ended April 30, 2022, the Company adjusted working capital accounts of PAIS, resulting in a corresponding increase in the value of acquired goodwill of $1.8 million. Net sales of PAIS were immaterial to the Condensed Consolidated Statements of Earnings for the three and nine months ended April 30, 2022. The purchase price allocations for these acquisitions are preliminary pending the outcome of the final valuations of the net assets acquired. Management expects to finalize the purchase accounting for these acquisitions by the first quarter of fiscal 2023. Pro forma financial information for these acquisitions has not been presented because the acquisitions were not material to the Company’s Condensed Consolidated Statements of Earnings. See Note 6 for goodwill and intangible assets acquired.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue The Company recognizes revenue on a wide range of filtration solutions sold to customers in many industries around the globe. Most of the Company’s performance obligations within customer sales contracts are for manufactured filtration systems and replacement parts. The Company also performs limited services and installation. Customer contracts may include multiple performance obligations and the transaction price is allocated to each distinct performance obligation based on its relative standalone selling price. Revenue Disaggregation Net sales, generally disaggregated by location where the customer’s order was placed, were as follows (in millions):
See Note 17 for net sales disaggregated by segment and business unit. Contract Assets and Liabilities The satisfaction of performance obligations and the resulting recognition of revenue typically correspond with billing of the customer. In limited circumstances, the customer may be billed at a time later than when revenue is recognized, resulting in contract assets, which are reported in other current assets on the Condensed Consolidated Balance Sheets. Contract assets were $18.7 million and $14.9 million as of April 30, 2022 and July 31, 2021, respectively. In other limited circumstances, the customer may make a payment at a time earlier than when revenue is recognized and prior to the satisfaction of performance obligations, resulting in contract liabilities, which are reported in other current liabilities on the Condensed Consolidated Balance Sheets. Contract liabilities were $23.3 million and $12.2 million as of April 30, 2022 and July 31, 2021, respectively. The Company will recognize revenue in future periods related to remaining performance obligations for certain open contracts. Generally, these contracts have terms of one year or less. The amount of revenue related to unsatisfied performance obligations in which the original duration of the contract is greater than one year is not significant. None of the Company’s contracts contained a significant financing component. Costs to Obtain or Fulfill a Contract The Company generally does not incur significant incremental costs related to obtaining or fulfilling a contract prior to the start of a project. The Company may incur certain fulfillment costs such as initial design or mobilization costs which are capitalized if they relate directly to the contract, if they are expected to generate resources that will be used to satisfy the Company’s performance obligation under the contract, and if they are expected to be recovered through revenues generated under the contract. Such costs, which are amortized over the life of the respective project, were not material for any period presented.
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Inventories, Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | Inventories, Net The components of inventories, net were as follows (in millions):
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Property, Plant and Equipment, Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net The components of property, plant and equipment, net were as follows (in millions):
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Goodwill and Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company allocates goodwill to reporting units within its Engine Products and Industrial Products segments. There were no dispositions or impairment charges recorded during the three and nine months ended April 30, 2022 and 2021. Goodwill is assessed for impairment annually during the third quarter of the fiscal year, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2022 and did not record any impairment as a result of this assessment. Goodwill by reportable segment was as follows (in millions):
Intangible Assets Preliminary intangible assets recognized from the Solaris acquisition were $20.8 million, of which technology was $17.3 million with a 15 year useful life, trademarks and tradenames were $3.3 million with a 10 year useful life and backlog was $0.2 million with a six month useful life. Preliminary intangible assets recognized from the PAIS acquisition were $3.0 million, all of which were customer relationships with a 20 year useful life. See Note 2 for the acquisitions. Intangible asset classes were as follows (in millions):
Amortization expense was $2.4 million and $6.9 million for the three and nine months ended April 30, 2022, respectively, and was $2.2 million and $6.4 million for the three and nine months ended April 30, 2021, respectively. Amortization expense is included in operating expenses in the Condensed Consolidated Statements of Earnings.
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Long-Term Debt |
9 Months Ended |
---|---|
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of April 30, 2022, there was $407.5 million available on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026. In the third quarter of fiscal 2022, the Company borrowed a net $60.0 million on its unsecured revolving credit facility. The Company entered into an agreement in which the Company would issue and sell two tranches of unsecured senior notes, totaling $150.0 million. The first tranche, issued in August 2021, was a $100.0 million 10 year note due 2031 at a fixed interest rate of 2.50%. The second tranche, issued in November 2021, was a $50.0 million seven year note due 2028 at a fixed interest rate of 2.12%. Certain debt agreements contain financial covenants related to interest coverage and leverage ratios, as well as other non-financial covenants. As of April 30, 2022, the Company was in compliance with all such covenants.
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Income Taxes |
9 Months Ended |
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Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The U.S. Internal Revenue Service has completed examinations of the Company’s U.S. federal income tax returns through 2017. With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before 2016. As of April 30, 2022, gross unrecognized tax benefits were $19.6 million and accrued interest and penalties on these unrecognized tax benefits were $2.1 million. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income taxes in the Condensed Consolidated Statements of Earnings. The Company estimates within the next 12 months it is reasonably possible its uncertain tax positions could decrease by as much as $5.3 million due to lapses in statutes of limitation. The statutes of limitation periods for the Company’s various tax jurisdictions range from two years to 10 years. The Company believes it is remote that any adjustment necessary to the reserve for income taxes over the next 12 months will be material. However, it is possible the ultimate resolution of audits or disputes may result in a material change to the reserve for income taxes, although the quantification of such potential adjustments cannot be made at this time.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares. Diluted net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents relating to stock options and other stock incentive plans. Basic and diluted net earnings per share calculations were as follows (in millions, except per share amounts):
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Shareholders' Equity |
9 Months Ended |
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Apr. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Stockholders’ Equity Share Repurchases The Company’s Board of Directors has authorized the repurchase of up to 13.0 million shares of common stock under the Company’s stock repurchase plan. This repurchase authorization is effective until terminated by the Board of Directors. During the nine months ended April 30, 2022, the Company repurchased 2.5 million shares for $153.7 million. As of April 30, 2022, the Company had remaining authorization to repurchase 5.8 million shares under this plan. Dividends Paid and Declared Dividends paid were 22.0 cents and 66.0 cents per share for the three and nine months ended April 30, 2022, respectively, and were 21.0 cents and 63.0 cents for the three and nine months ended April 30, 2021, respectively. On May 25, 2022, the Company’s Board of Directors declared a cash dividend in the amount of 23.0 cents per common share, payable June 24, 2022, to shareholders of record as of June 9, 2022.
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Accumulated Other Comprehensive Loss |
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Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three months ended April 30, 2022 and 2021 were as follows (in millions):
(1)In fiscal 2022 and 2021, pension settlement accounting was triggered. Remeasurements of the Company’s pension obligations resulted in adjustments to accumulated other comprehensive loss of $7.6 million and $21.4 million in fiscal 2022 and 2021, respectively, on the Condensed Consolidated Balance Sheets, see Note 13. (2)Includes reclassifications of $1.1 million in fiscal 2022 and 2021, and also included net amortization of prior service costs and actuarial losses of $3.9 million and $1.9 million in fiscal 2022 and 2021, respectively, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13. (3)Relates to designated forward foreign currency exchange contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings, see Note 14. Changes in accumulated other comprehensive loss for the nine months ended April 30, 2022 and 2021 were as follows (in millions):
(1)In fiscal 2022 and 2021, pension settlement accounting was triggered. In addition, pension curtailment accounting was triggered in fiscal 2021. Remeasurements of the Company’s pension obligations resulted in adjustments to accumulated other comprehensive loss of $9.3 million and $25.4 million in fiscal 2022 and 2021, respectively, on the Condensed Consolidated Balance Sheets, see Note 13. (2)Includes reclassifications of $2.3 million and $1.9 million in fiscal 2022 and 2021, respectively, and also includes net amortization of prior service costs and actuarial losses of $9.5 million and $4.9 million in fiscal 2022 and 2021, respectively, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13. (3)Relates to designated forward foreign currency exchange contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings, see Note 14.
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards based on the grant date fair value of the award. Stock-based awards consist primarily of non-qualified stock options, performance-based awards, restricted stock awards and restricted stock units. Grants related to restricted stock awards and restricted stock units are immaterial. The Company issues treasury shares for stock options and performance-based awards. Stock Options The exercise price of options granted is equal to the market price of the Company’s common stock at the date of the grant. Options are generally exercisable for up to 10 years from the date of grant and vest in equal increments over three years. Pretax stock-based compensation expense associated with options was $1.4 million and $10.2 million for the three and nine months ended April 30, 2022, respectively, and was $1.8 million and $9.3 million for the three and nine months ended April 30, 2021, respectively. Fair value is calculated using the Black-Scholes option pricing model. The weighted average fair value for options granted during the nine months ended April 30, 2022 and 2021 was $14.24 and $10.23 per share, respectively. Option activity was as follows:
Performance-Based Awards Performance-based awards are payable in common stock and are based on a formula that measures Company performance over a three year period. These awards are settled after three years with payouts ranging from zero to 200% of the target award depending on achievement. Pretax performance-based awards expense was $1.8 million and $5.6 million for the three and nine months ended April 30, 2022, respectively. For the three months ended April 30, 2021, pretax performance-based awards was a reduction in expense of $0.8 million resulting from an adjustment to anticipated performance achievement. For the nine months ended April 30, 2021, pretax performance-based awards expense was $1.2 million. Performance-based awards for non-vested activity were as follows:
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Employee Benefit Plans |
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Employee Benefit Plans | Employee Benefit Plans The Company has defined benefit pension plans for certain hourly and salaried employees. These plans generally provide pension benefits based on years of service and compensation level. Components of net periodic pension costs other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Earnings. Net periodic pension costs for the Company’s pension plans were as follows (in millions):
In the second and third quarters of fiscal 2022, the Company recorded pension settlement charges of $1.2 million and $1.1 million, respectively, as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurements resulted in a decrease in the Company’s net pension assets and a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statement of Comprehensive Income of $1.7 million and $7.6 million in the second and third quarters of fiscal 2022, respectively. See Note 11. In the first quarter of fiscal 2021, the Company recorded a pension curtailment charge of $0.8 million as a result of freezing pension benefits to certain employees. Additionally, in the third quarter of fiscal 2021, the Company recorded a pension settlement charge of $1.1 million as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurements resulted in an increase in the Company’s net pension assets, as well as a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statement of Comprehensive Income of $25.4 million. See Note 11. The Company’s general funding policy is to make at least the minimum required contributions as required by applicable regulations, plus any additional amounts it determines to be appropriate. Future required pension plan contributions may change significantly depending on the actual rate of return on plan assets, discount rates and regulatory requirements.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value measurements of financial instruments are reported in one of three levels based on the lowest level of significant input used. For Level 1, inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities. For Level 2, inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. For Level 3, inputs to the fair value measurement are unobservable inputs or are based on valuation techniques. Short-Term Financial Instruments As of April 30, 2022 and July 31, 2021, the carrying values of cash and cash equivalents, accounts receivable, short-term borrowings and accounts payable approximate fair value because of the short-term nature of these instruments, and are classified as Level 1 in the fair value hierarchy. Long-Term Debt As of April 30, 2022, the estimated fair values of fixed interest rate long-term debt were $395.4 million compared to the carrying values of $425.0 million. As of July 31, 2021, the estimated fair values of fixed interest rate long-term debt were $297.4 million compared to the carrying values of $275.0 million. The fair values are estimated by discounting the projected cash flows using the interest rates at which similar amounts of debt could currently be borrowed. The carrying values of total variable interest rate long-term debt were $184.7 million and $188.3 million as of April 30, 2022 and July 31, 2021, respectively, and approximate their fair values. Long-term debt is classified as Level 2 in the fair value hierarchy. Equity Method Investments The Company holds equity method investments in its joint ventures, which are included in other long-term assets on the Condensed Consolidated Balance Sheets. The aggregate carrying amount of these investments was $25.6 million and $24.2 million as of April 30, 2022 and July 31, 2021, respectively. These equity method investments are measured at fair value on a non-recurring basis. The fair value of the Company’s equity method investments has not been adjusted as there have been no triggering events or changes in circumstance that would have had an adverse impact on the value of these investments. In the event these investments are required to be measured, they would fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value, as the investments are in privately-held entities. Derivative Fair Value Measurements The Company enters into derivative instrument agreements, including forward foreign currency exchange contracts and net investment hedges to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit. The Company does not enter into derivative instrument agreements for trading or speculative purposes. The fair values of the Company’s forward foreign currency exchange contracts and net investment hedges reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price). The fair values are based on inputs other than quoted prices that are observable for the asset or liability and are determined by standard calculations and models that use readily observable market parameters. These inputs include foreign currency exchange rates and interest rates. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and foreign currency exchange rates. The fair values of the Company’s forward foreign currency exchange contracts and net investment hedges are classified as Level 2 in the fair value hierarchy. Forward Foreign Currency Exchange Contracts The Company buys materials from foreign suppliers. Those transactions can be denominated in those suppliers’ local currency. The Company also sells to customers in foreign countries. Those transactions can be denominated in those customers’ local currency. Both of these transaction types can create volatility in the Company’s financial statements. The Company uses forward currency exchange contracts to manage those exposures and fluctuations. These contracts generally mature in 12 months or less, which is consistent with the forecasts of the related purchases and sales. Certain contracts are designated as cash flow hedges, whereas the remaining contracts, most of which are related to certain intercompany transactions, are not designated. Net Investment Hedges The Company uses fixed-to-fixed cross-currency swap agreements to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe. The Company has elected the spot method for designating these contracts as net investment hedges. As of April 30, 2022, the total notional amount of foreign exchange forward contracts designated as net investment hedges was €80 million, or $88.8 million, which includes a hedge for $33.0 million entered into in the third quarter of fiscal 2022. The maturity dates of these derivative instruments designated as net investment hedges range from 2027 to 2029. Fair Value of Derivatives Contracts The fair value of the Company’s derivative contracts, recorded on the Condensed Consolidated Balance Sheets, was as follows (in millions):
Forward foreign currency exchange contract assets were recorded in other current assets on the Condensed Consolidated Balance Sheets. Forward foreign currency exchange contract liabilities were recorded in other current liabilities on the Condensed Consolidated Balance Sheets. The net investment hedges were recorded in other current assets, other long-term assets and other long-term liabilities on the Condensed Consolidated Balance Sheets. Changes in the fair value of the Company’s designated hedges are reported in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets until the related transaction occurs. Designated hedges are recognized as a component of net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings upon occurrence of the related hedged transaction. Hedges which are not designated are recognized in other income, net in the Condensed Consolidated Statements of Earnings. This recognition is timed to coincide with that of the related hedged transactions. Changes in the fair value of these hedges are, likewise, recognized in other income, net in the Condensed Consolidated Statements of Earnings. The Company classifies cash flows from derivatives designated in a qualifying cash flow hedging relationship in the same category as the cash flows from the hedged items. Cash flows from these derivative transactions are recorded in operating activities in the Condensed Consolidated Statements of Cash Flows. Amounts related to forward foreign currency exchange contracts are expected to be reclassified into earnings during the next 12 months based on the timing of inventory purchases and sales. Amounts related to excluded components, such as forward points, are excluded from the assessment of hedge effectiveness of net investment hedges, and are expected to be reclassified into earnings throughout their maturity dates. See Note 11 for additional information on accumulated other comprehensive loss. Credit Risk Related Contingent Features Contract provisions may require the posting of collateral or settlement of the contracts for various reasons, including if the Company’s credit ratings are downgraded below its investment grade credit rating by any of the major credit agencies or for cross default contractual provisions if there is a failure under other financing arrangements related to payment terms or covenants. As of April 30, 2022 and July 31, 2021, no collateral was posted. Counterparty Credit Risk There is risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only enters into contracts with carefully selected financial institutions based on their credit ratings and certain other financial factors.
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Guarantees |
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Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees | Guarantees Letters of Credit The Company has letters of credit which guarantee payment to third parties in the event the Company is in breach of contract terms as detailed in each letter of credit. The outstanding debt contingent liability for standby letters of credit was as follows (in millions):
Advanced Filtration Systems Inc. (AFSI) The Company has an unconsolidated joint venture, AFSI, established by the Company and Caterpillar Inc. (Caterpillar) in 1986. AFSI designs and manufactures high-efficiency fluid filters used in Caterpillar’s machinery worldwide. The Company and Caterpillar equally own the shares of AFSI, and both companies guarantee certain debt and banking services, including credit and debit cards, merchant processing and treasury management services, of the joint venture. The Company accounts for AFSI as an equity method investment. The outstanding debt relating to AFSI, which the Company guarantees half, was $61.1 million and $37.8 million as of April 30, 2022 and July 31, 2021, respectively. AFSI’s $63.0 million revolving credit facility expires July 31, 2024. Earnings from AFSI, which are recorded in other income, net in the Condensed Consolidated Statements of Earnings were $3.2 million and $6.6 million for the three and nine months ended April 30, 2022, respectively, and $2.6 million and $6.4 million for the three and nine months ended April 30, 2021, respectively.
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Commitments and Contingencies |
9 Months Ended |
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Apr. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company records provisions when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and litigation are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the estimated liability in its Condensed Consolidated Financial Statements for claims or litigation is adequate and appropriate for the probable and estimable outcomes. Liabilities recorded were not material to the Company’s financial position, results of operations or liquidity. The Company believes it is remote that the settlement of any of the currently identified claims or litigation will be materially in excess of what is accrued. |
Segment Reporting |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company’s reportable segments are Engine Products and Industrial Products. The Company determines its operating segments consistent with the manner in which it manages its operations and evaluates performance for internal review and decision-making. Corporate and unallocated includes corporate expenses determined to be non-allocable to the segments, such as interest expense, restructuring charges and certain incentive compensation. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and sharing of assets. Therefore, the Company does not represent these segments, if operated independently, would report earnings before income taxes as stated below. Segment details were as follows (in millions):
Net sales by business unit were as follows (in millions):
Concentrations There were no customers that accounted for over 10% of net sales for the three and nine months ended April 30, 2022 or 2021. There were no customers that accounted for over 10% of gross accounts receivable as of April 30, 2022 or as of July 31, 2021.
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Restructuring |
9 Months Ended |
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Apr. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringIn the second quarter of fiscal 2021, the Company initiated activities to further improve its operating and manufacturing cost structure, primarily in EMEA. These activities resulted in restructuring expenses, primarily related to severance, of $14.8 million. Charges of $5.8 million were included in cost of sales and $9.0 million were included in operating expenses in the Condensed Consolidated Statement of Earnings for the year ended July 31, 2021. This initiative is now substantially completed. |
Summary of Significant Accounting Policies (Policies) |
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Apr. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Donaldson Company, Inc. and its subsidiaries (the Company) have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of earnings, comprehensive income, financial position, cash flows and changes in stockholders’ equity have been included and are of a normal recurring nature. Operating results for the three and nine months ended April 30, 2022 are not necessarily indicative of the results that may be expected for future periods. The year end Condensed Consolidated Balance Sheet information was derived from the Company’s Audited Consolidated Financial Statements but does not include all disclosures required by GAAP. For further information, refer to the Audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021.
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Principles of Consolidation | Principles of ConsolidationThe Condensed Consolidated Financial Statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s joint ventures are not majority-owned and are accounted for under the equity method. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Operating Environment Russia and Ukraine Following the Russia and Ukraine conflict, the Company complied with all sanctions, including those from the European Union, Great Britain and the U.S. and ceased direct product shipments into Russia and Belarus. Total revenues associated with customers in these areas are less than 2% of the Company’s net sales in the Condensed Consolidated Statements of Earnings. As of April 30, 2022, the Company has related asset exposure in the form of accounts receivables and inventories of approximately $6.8 million. The Company is monitoring the regional and global ramifications of the events unfolding. Supply Chain Disruptions The Company continues to experience supply chain disruptions, including global logistics and labor challenges and constrained supplies of steel, petrochemical products and filter media. These disruptions have increased the Company’s input costs significantly and extended lead times. The Company has undertaken steps to mitigate these negative impacts, such as increasing prices, evaluating alternative supply chain options, qualifying additional suppliers and strategic raw material purchases. This dynamic impacted results through the third quarter of fiscal 2022 and is expected to continue into fiscal 2023. Inflation In connection with the supply chain disruptions described above, the Company has experienced the effects of inflation related to raw materials and operating expenses, including freight, labor and energy. These inflationary pressures have had an adverse impact on profit margins, particularly in recent months. The Company continues to negotiate price increases with its customers and is working with its suppliers to mitigate these cost increases. Inflation impacted results through the third quarter of fiscal 2022 and is expected to continue into fiscal 2023.
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New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the Financial Accounting Standards Board’s (FASB) Accounting Standards Updates (ASUs) issued but not yet adopted. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2024. The Company is currently evaluating the impact the adoption will have on its financial statements.
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregation of revenue | Net sales, generally disaggregated by location where the customer’s order was placed, were as follows (in millions):
See Note 17 for net sales disaggregated by segment and business unit.
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Inventories, Net (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories | The components of inventories, net were as follows (in millions):
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Property, Plant and Equipment, Net (Tables) |
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Schedule of property, plant and equipment | The components of property, plant and equipment, net were as follows (in millions):
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of goodwill | Goodwill by reportable segment was as follows (in millions):
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Schedule of finite-lived intangible assets | Intangible asset classes were as follows (in millions):
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted net earnings per share | Basic and diluted net earnings per share calculations were as follows (in millions, except per share amounts):
|
Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss for the three months ended April 30, 2022 and 2021 were as follows (in millions):
(1)In fiscal 2022 and 2021, pension settlement accounting was triggered. Remeasurements of the Company’s pension obligations resulted in adjustments to accumulated other comprehensive loss of $7.6 million and $21.4 million in fiscal 2022 and 2021, respectively, on the Condensed Consolidated Balance Sheets, see Note 13. (2)Includes reclassifications of $1.1 million in fiscal 2022 and 2021, and also included net amortization of prior service costs and actuarial losses of $3.9 million and $1.9 million in fiscal 2022 and 2021, respectively, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13. (3)Relates to designated forward foreign currency exchange contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings, see Note 14. Changes in accumulated other comprehensive loss for the nine months ended April 30, 2022 and 2021 were as follows (in millions):
(1)In fiscal 2022 and 2021, pension settlement accounting was triggered. In addition, pension curtailment accounting was triggered in fiscal 2021. Remeasurements of the Company’s pension obligations resulted in adjustments to accumulated other comprehensive loss of $9.3 million and $25.4 million in fiscal 2022 and 2021, respectively, on the Condensed Consolidated Balance Sheets, see Note 13. (2)Includes reclassifications of $2.3 million and $1.9 million in fiscal 2022 and 2021, respectively, and also includes net amortization of prior service costs and actuarial losses of $9.5 million and $4.9 million in fiscal 2022 and 2021, respectively, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13. (3)Relates to designated forward foreign currency exchange contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings, see Note 14.
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Stock-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock option activity | Option activity was as follows:
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Schedule of performance shares activity | Performance-based awards for non-vested activity were as follows:
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Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net periodic pension costs | Net periodic pension costs for the Company’s pension plans were as follows (in millions):
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Fair Value Measurements (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative on the balance sheet | The fair value of the Company’s derivative contracts, recorded on the Condensed Consolidated Balance Sheets, was as follows (in millions):
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Guarantees (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of guarantor obligations | The outstanding debt contingent liability for standby letters of credit was as follows (in millions):
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Segment Reporting (Tables) |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment details | Segment details were as follows (in millions):
Net sales by business unit were as follows (in millions):
|
Summary of Significant Accounting Policies (Details) - Revenue Benchmark - Geographic Concentration Risk - Russia $ in Millions |
9 Months Ended |
---|---|
Apr. 30, 2022
USD ($)
| |
Change in Accounting Estimate [Line Items] | |
Concentration risk (as a percent) | 2.00% |
Accounts receivables and inventory | $ 6.8 |
Acquisitions (Details) € in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Nov. 22, 2021
USD ($)
|
Nov. 22, 2021
EUR (€)
|
Nov. 01, 2021
USD ($)
|
Apr. 30, 2022
USD ($)
|
Apr. 30, 2022
USD ($)
|
Apr. 30, 2021
USD ($)
|
Jul. 31, 2021
USD ($)
|
|
Business Acquisition | |||||||
Acquisitions, net of cash acquired | $ 49.0 | $ 0.0 | |||||
Goodwill | $ 336.6 | 336.6 | $ 322.5 | ||||
Solaris | |||||||
Business Acquisition | |||||||
Acquisitions, net of cash acquired | $ 45.7 | € 41.0 | |||||
Goodwill | 27.2 | ||||||
Finite lived intangible assets acquired in business combination | 20.8 | 20.8 | $ 20.8 | ||||
Deferred tax liability | 4.4 | ||||||
Net working capital | $ 2.1 | ||||||
PAIS | |||||||
Business Acquisition | |||||||
Acquisitions, net of cash acquired | $ 3.3 | ||||||
Goodwill | 0.4 | ||||||
Finite lived intangible assets acquired in business combination | $ 3.0 | ||||||
Goodwill, purchase accounting adjustments | $ 1.8 |
Revenue (Disaggregation of Revenue by Geographical Area) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Disaggregation of Revenue | ||||
Total net sales | $ 853.2 | $ 765.0 | $ 2,416.6 | $ 2,080.8 |
U.S. and Canada | ||||
Disaggregation of Revenue | ||||
Total net sales | 348.8 | 294.6 | 963.6 | 801.8 |
Europe, Middle East and Africa (EMEA) | ||||
Disaggregation of Revenue | ||||
Total net sales | 250.9 | 232.7 | 717.2 | 621.7 |
Asia Pacific | ||||
Disaggregation of Revenue | ||||
Total net sales | 161.6 | 169.0 | 495.6 | 474.5 |
Latin America | ||||
Disaggregation of Revenue | ||||
Total net sales | $ 91.9 | $ 68.7 | $ 240.2 | $ 182.8 |
Revenue (Narrative) (Details) - USD ($) $ in Millions |
Apr. 30, 2022 |
Jul. 31, 2021 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 18.7 | $ 14.9 |
Contract liabilities | $ 23.3 | $ 12.2 |
Inventories, Net (Details) - USD ($) $ in Millions |
Apr. 30, 2022 |
Jul. 31, 2021 |
---|---|---|
Inventory, Net | ||
Raw materials | $ 201.3 | $ 148.1 |
Work in process | 57.1 | 43.2 |
Finished products | 252.3 | 193.2 |
Total inventories, net | $ 510.7 | $ 384.5 |
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions |
Apr. 30, 2022 |
Jul. 31, 2021 |
---|---|---|
Property, Plant and Equipment | ||
Less accumulated depreciation | $ (995.6) | $ (977.0) |
Property, plant and equipment, net | 591.1 | 617.8 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 26.1 | 27.1 |
Buildings | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 401.1 | 410.8 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 959.9 | 972.0 |
Computer software | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 143.4 | 144.3 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 56.2 | $ 40.6 |
Goodwill and Intangible Assets (Reconciliation of Goodwill) (Details) $ in Millions |
9 Months Ended |
---|---|
Apr. 30, 2022
USD ($)
| |
Goodwill | |
Beginning balance | $ 322.5 |
Goodwill acquired | 29.4 |
Foreign currency translation | (15.3) |
Ending balance | 336.6 |
Engine Products Segment | |
Goodwill | |
Beginning balance | 84.7 |
Goodwill acquired | 0.0 |
Foreign currency translation | (0.8) |
Ending balance | 83.9 |
Industrial Products Segment | |
Goodwill | |
Beginning balance | 237.8 |
Goodwill acquired | 29.4 |
Foreign currency translation | (14.5) |
Ending balance | $ 252.7 |
Long-Term Debt (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Nov. 30, 2021 |
Aug. 31, 2021 |
Apr. 30, 2022 |
Apr. 30, 2022 |
Apr. 30, 2021 |
Jul. 31, 2021 |
|
Debt Instrument | ||||||
Proceeds from long-term debt | $ 249,300,000 | $ 0 | ||||
Unsecured Debt | ||||||
Debt Instrument | ||||||
Debt instrument amount | $ 150,000,000 | |||||
2.5% 10 Year Note Due 2031 | Unsecured Debt | ||||||
Debt Instrument | ||||||
Proceeds from long-term debt | $ 100,000,000 | |||||
Debt instrument, term (in years) | 10 years | |||||
Fixed interest rate (as a percent) | 2.50% | |||||
2.12% 7 Year Note Due 2028 | Unsecured Debt | ||||||
Debt Instrument | ||||||
Proceeds from long-term debt | $ 50,000,000 | |||||
Debt instrument, term (in years) | 7 years | |||||
Fixed interest rate (as a percent) | 2.12% | |||||
Unsecured revolving credit facility | Unsecured revolving credit facility | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity | $ 407,500,000 | 407,500,000 | ||||
Maximum borrowing capacity | 500,000,000 | $ 500,000,000 | ||||
Proceeds from lines of credit | $ 60,000,000 |
Income Taxes (Details) $ in Millions |
9 Months Ended |
---|---|
Apr. 30, 2022
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 19.6 |
Accrued interest and penalties on unrecognized tax benefits | 2.1 |
Unrecognized reduction from lapse of statute of limitations | $ 5.3 |
Earnings Per Share (Information Necessary to Calculate Basic and Diluted Net Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Earnings Per Share [Abstract] | ||||
Net earnings | $ 83.0 | $ 84.4 | $ 231.8 | $ 202.6 |
Weighted average common shares outstanding | ||||
Weighted average common shares - basic (in shares) | 123.4 | 126.4 | 123.9 | 126.6 |
Dilutive impact of share-based awards (in shares) | 1.2 | 1.9 | 1.7 | 1.6 |
Weighted average common shares - diluted (in shares) | 124.6 | 128.3 | 125.6 | 128.2 |
Net earnings per share - basic (in usd per share) | $ 0.67 | $ 0.67 | $ 1.87 | $ 1.60 |
Net earnings per share - diluted (in usd per share) | $ 0.67 | $ 0.66 | $ 1.85 | $ 1.58 |
Options excluded from the diluted net earnings per share calculation (in shares) | 1.7 | 0.0 | 1.6 | 0.8 |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
May 25, 2022 |
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Stockholders' Equity Note [Abstract] | |||||
Number of shares authorized to be repurchased (in shares) | 13,000,000 | 13,000,000 | |||
Stock repurchased during the period (in shares) | 2,500,000 | ||||
Stock repurchased during the period | $ 153.7 | $ 78.7 | |||
Shares with remaining authorization for repurchase under stock repurchase plan (in shares) | 5,800,000 | 5,800,000 | |||
Dividends paid per share (in usd per share) | $ 0.22 | $ 0.21 | $ 0.66 | $ 0.63 | |
Schedule of Equity Method Investments [Line Items] | |||||
Dividends, per share (in usd per share) | $ 0.44 | $ 0.42 | |||
Subsequent Event | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Dividends, per share (in usd per share) | $ 0.23 |
Stock-Based Compensation (Summary of Stock Option Activity) (Details) |
9 Months Ended |
---|---|
Apr. 30, 2022
$ / shares
shares
| |
Options | |
Beginning balance (in shares) | shares | 6,444,743 |
Options granted (in shares) | shares | 898,726 |
Options exercised (in shares) | shares | (308,945) |
Options canceled/forfeited (in shares) | shares | (43,560) |
Ending balance (in shares) | shares | 6,990,964 |
Weighted Average Exercise Price | |
Beginning balance (in usd per share) | $ / shares | $ 44.05 |
Granted (in usd per share) | $ / shares | 59.18 |
Exercised (in usd per share) | $ / shares | 37.50 |
Canceled/forfeited (in usd per share) | $ / shares | 53.07 |
Ending balance (in usd per share) | $ / shares | $ 46.23 |
Stock-Based Compensation (Summary of Performance Award Activity) (Details) - Performance Shares |
9 Months Ended |
---|---|
Apr. 30, 2022
$ / shares
shares
| |
Performance Shares | |
Beginning balance (in shares) | shares | 200,567 |
Granted (shares) | shares | 88,400 |
Vested (shares) | shares | 0 |
Canceled/forfeited (shares) | shares | (3,580) |
Ending balance (in shares) | shares | 285,387 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 48.76 |
Granted (in usd per share) | $ / shares | 59.40 |
Vested (in usd per share) | $ / shares | 0 |
Canceled/forfeited (in usd per share) | $ / shares | 53.23 |
Ending balance (in usd per share) | $ / shares | $ 52.00 |
Employee Benefit Plans (Components of Net Periodic Pension Costs) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Net periodic benefit costs | ||||
Service cost | $ 1.8 | $ 2.0 | $ 5.4 | $ 6.1 |
Interest cost | 2.4 | 2.5 | 7.4 | 7.4 |
Expected return on assets | (6.2) | (5.9) | (18.7) | (17.6) |
Prior service cost amortization | 0.1 | 0.1 | 0.2 | 0.4 |
Actuarial loss amortization | 1.8 | 2.1 | 5.4 | 6.2 |
Settlement charge | 1.1 | 1.1 | 2.3 | 1.1 |
Curtailment charge | 0.0 | 0.0 | 0.0 | 0.8 |
Net periodic pension costs | $ 1.0 | $ 1.9 | $ 2.0 | $ 4.4 |
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Apr. 30, 2022 |
Jan. 31, 2022 |
Apr. 30, 2021 |
Oct. 31, 2020 |
Apr. 30, 2022 |
Apr. 30, 2021 |
Jul. 31, 2021 |
|
Defined Benefit Plan, Plan Assets, Allocation | |||||||
Curtailment charge | $ 1.1 | $ 1.2 | $ 1.1 | $ 0.8 | |||
Accumulated other comprehensive loss | (182.3) | $ (182.3) | $ (118.2) | ||||
Other comprehensive (loss) income | (42.2) | 19.4 | $ (64.1) | $ 60.4 | |||
Scenario, Adjustment | |||||||
Defined Benefit Plan, Plan Assets, Allocation | |||||||
Other comprehensive (loss) income | $ 7.6 | $ 1.7 | |||||
Reclassification, Other | |||||||
Defined Benefit Plan, Plan Assets, Allocation | |||||||
Accumulated other comprehensive loss | $ 25.4 | $ 25.4 |
Guarantees (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2022 |
Apr. 30, 2021 |
Jul. 31, 2021 |
|
Guarantor Obligations | |||||
Contingent liability for standby letters of credit issued under the Company’s revolving credit facility | $ 7.5 | $ 7.5 | $ 7.7 | ||
Amounts drawn for letters of credit under the Company’s revolving credit facility | 0.0 | 0.0 | 0.0 | ||
Investment earnings | 3.2 | $ 2.6 | 6.6 | $ 6.4 | |
Revolving credit facility | |||||
Guarantor Obligations | |||||
AFSI outstanding debt (the Company guarantees half) | 63.0 | 63.0 | |||
Advanced Filtration Systems, Inc. | |||||
Guarantor Obligations | |||||
AFSI outstanding debt (the Company guarantees half) | $ 61.1 | $ 61.1 | $ 37.8 |
Restructuring (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Jan. 31, 2021 |
Jul. 31, 2021 |
|
Cost of Sales | ||
Restructuring Cost and Reserve | ||
Restructuring charges | $ 5.8 | |
Operating Expense | ||
Restructuring Cost and Reserve | ||
Restructuring charges | $ 9.0 | |
Employee Severance | ||
Restructuring Cost and Reserve | ||
Restructuring charges | $ 14.8 |
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