QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Large Accelerated Filer ☐
|
|
||
Non-accelerated Filer ☐
|
Smaller reporting company
|
||
Emerging growth company
|
PART I. FINANCIAL INFORMATION
|
|||
|
|||
|
1
|
||
|
|||
|
24
|
||
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|||
|
35
|
||
|
|||
|
35
|
||
|
|||
PART II. OTHER INFORMATION
|
|||
|
|||
|
36
|
||
|
|||
|
36
|
||
|
|||
|
37
|
||
|
|||
38
|
Three months ended
December 31,
|
Nine months ended
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net sales
|
$
|
|
$
|
|
$ | $ | ||||||||||
Cost of sales
|
|
|
||||||||||||||
Gross profit
|
|
|
||||||||||||||
Selling, general and administrative expenses
|
|
|
||||||||||||||
Restructuring expenses
|
|
|
||||||||||||||
Gain on sale of assets |
( |
) | ( |
) | ||||||||||||
Operating income
|
|
|
||||||||||||||
Interest expense
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Other expense – net |
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Earnings before income taxes
|
|
|
||||||||||||||
Provision for income taxes
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Net earnings
|
|
|
||||||||||||||
Net earnings attributable to noncontrolling interest |
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Net earnings attributable to Modine
|
$
|
|
$
|
|
$ | $ | ||||||||||
Net earnings per share attributable to Modine shareholders:
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$ | $ | ||||||||||
Diluted
|
$
|
|
$
|
|
$ | $ | ||||||||||
Weighted-average shares outstanding:
|
||||||||||||||||
Basic
|
|
|
||||||||||||||
Diluted
|
|
|
Three months ended
December 31,
|
Nine months ended
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net earnings
|
$
|
|
$
|
|
$ | $ | ||||||||||
Other comprehensive income (loss), net of income taxes:
|
||||||||||||||||
Foreign currency translation
|
|
|
( |
) | ||||||||||||
Defined benefit
plans, net of income taxes of $
|
|
|
||||||||||||||
Cash flow hedges,
net of income taxes of $
|
|
|
( |
) | ( |
) | ||||||||||
Total other comprehensive income (loss)
|
|
|
( |
) | ||||||||||||
Comprehensive income (loss)
|
|
|
||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interest
|
(
|
)
|
(
|
)
|
( |
) | ||||||||||
Comprehensive income (loss) attributable to Modine
|
$
|
|
$
|
|
$ | $ |
December 31, 2023
|
March 31, 2023
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Trade accounts receivable – net
|
|
|
||||||
Inventories
|
|
|
||||||
Other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Property, plant and equipment – net
|
|
|
||||||
Intangible assets – net
|
|
|
||||||
Goodwill
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Other noncurrent assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Short-term debt
|
$
|
|
$
|
|
||||
Long-term debt – current portion
|
|
|
||||||
Accounts payable
|
|
|
||||||
Accrued compensation and employee benefits
|
|
|
||||||
Other current liabilities
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Long-term debt
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Pensions
|
|
|
||||||
Other noncurrent liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Commitments and contingencies (see Note 18)
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock, $
|
|
|
||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Treasury stock, at cost,
|
(
|
)
|
(
|
)
|
||||
Total Modine shareholders’ equity
|
|
|
||||||
Noncontrolling interest
|
|
|
||||||
Total equity
|
|
|
||||||
Total liabilities and equity
|
$
|
|
$
|
|
Nine months ended December 31,
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
|
$
|
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Gain on sale of assets
|
( |
) | ||||||
Stock-based compensation expense
|
|
|
||||||
Deferred income taxes
|
|
(
|
)
|
|||||
Other – net
|
|
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Trade accounts receivable
|
|
|
||||||
Inventories
|
(
|
)
|
(
|
)
|
||||
Accounts payable
|
(
|
)
|
(
|
)
|
||||
Other assets and liabilities
|
|
(
|
)
|
|||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Expenditures for property, plant and equipment
|
(
|
)
|
(
|
)
|
||||
Payments for business acquisition |
( |
) | ||||||
Proceeds from (payments for) disposition of assets |
( |
) | ||||||
Other – net
|
(
|
)
|
(
|
)
|
||||
Net cash used for investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Borrowings of debt
|
|
|
||||||
Repayments of debt
|
(
|
)
|
(
|
)
|
||||
Borrowings (repayments) on bank overdraft facilities – net
|
(
|
)
|
|
|||||
Purchases of treasury stock under share repurchase program
|
(
|
)
|
(
|
)
|
||||
Dividend paid to noncontrolling interest
|
(
|
)
|
(
|
)
|
||||
Other – net
|
(
|
)
|
|
|||||
Net cash (used for) provided by financing activities |
(
|
)
|
|
|||||
Effect of exchange rate changes on cash
|
|
(
|
)
|
|||||
Net increase in cash, cash equivalents, and restricted cash |
|
|
||||||
Cash, cash equivalents and restricted cash – beginning of period |
|
|
||||||
Cash, cash equivalents and restricted cash – end of period |
$
|
|
$
|
|
Common stock
|
Additional
paid-in
|
Retained
|
Accumulated
other
comprehensive
|
Treasury stock, at
|
Non-
controlling
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
capital
|
earnings
|
loss
|
cost
|
interest
|
Total
|
|||||||||||||||||||||||||
Balance, March 31, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||
Net earnings
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive loss
|
-
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||||
Stock options and awards
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||||
Stock-based compensation expense
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Dividend paid to noncontrolling interest
|
- | ( |
) | ( |
) | |||||||||||||||||||||||||||
Balance, June 30, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||
Net earnings
|
-
|
|||||||||||||||||||||||||||||||
Other comprehensive loss
|
-
|
( |
) | ( |
) | |||||||||||||||||||||||||||
Stock options and awards
|
||||||||||||||||||||||||||||||||
Purchase of treasury stock
|
- | ( |
) | ( |
) | |||||||||||||||||||||||||||
Stock-based compensation expense
|
-
|
|||||||||||||||||||||||||||||||
Balance, September 30, 2023
|
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | |||||||||||||||||||||
Net earnings
|
-
|
|||||||||||||||||||||||||||||||
Other comprehensive income
|
-
|
|||||||||||||||||||||||||||||||
Stock options and awards
|
||||||||||||||||||||||||||||||||
Purchase of treasury stock
|
- | ( |
) | ( |
) | |||||||||||||||||||||||||||
Stock-based compensation expense
|
-
|
|||||||||||||||||||||||||||||||
Balance, December 31, 2023
|
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ |
Common stock
|
Additional
paid-in
|
Retained
|
Accumulated
other
comprehensive
|
Treasury stock, at
|
Non-
controlling
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
capital
|
earnings
|
loss
|
cost
|
interest
|
Total
|
|||||||||||||||||||||||||
Balance, March 31, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||
Net earnings
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive loss
|
-
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||||
Stock options and awards
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||||
Stock-based compensation expense
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Dividend paid to noncontrolling interest
|
- | ( |
) | ( |
) | |||||||||||||||||||||||||||
Balance, June 30, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||||||
Net earnings (loss)
|
-
|
( |
) | |||||||||||||||||||||||||||||
Other comprehensive loss
|
-
|
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock options and awards
|
||||||||||||||||||||||||||||||||
Purchase of treasury stock
|
- | ( |
) | ( |
) | |||||||||||||||||||||||||||
Stock-based compensation expense
|
-
|
|||||||||||||||||||||||||||||||
Balance, September 30, 2022
|
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | |||||||||||||||||||||
Net earnings
|
-
|
|||||||||||||||||||||||||||||||
Other comprehensive income
|
-
|
|||||||||||||||||||||||||||||||
Stock options and awards
|
||||||||||||||||||||||||||||||||
Purchase of treasury stock
|
- | ( |
) | ( |
) | |||||||||||||||||||||||||||
Stock-based compensation expense
|
-
|
|||||||||||||||||||||||||||||||
Balance, December 31, 2022
|
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ |
Trade accounts receivable
|
$
|
|
||
Inventories
|
|
|||
Property, plant and equipment and other assets
|
|
|||
Intangible assets
|
|
|||
Goodwill
|
|
|||
Accounts payable and other liabilities
|
(
|
)
|
||
Purchase price
|
$
|
|
Three months ended December 31, 2023
|
Three months ended December 31, 2022
|
|||||||||||||||||||||||
Climate
Solutions
|
Performance
Technologies
|
Segment
Total
|
Climate
Solutions
|
Performance
Technologies
|
Segment
Total
|
|||||||||||||||||||
Product groups:
|
||||||||||||||||||||||||
Heat transfer
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
HVAC & refrigeration
|
||||||||||||||||||||||||
Data center cooling
|
|
|
|
|
|
|
||||||||||||||||||
Air-cooled
|
|
|
|
|
|
|
||||||||||||||||||
Liquid-cooled
|
|
|
|
|
|
|
||||||||||||||||||
Advanced solutions
|
|
|
|
|
|
|
||||||||||||||||||
Inter-segment sales
|
|
|
|
|
|
|
||||||||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Geographic location:
|
||||||||||||||||||||||||
Americas
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Europe
|
|
|
|
|
|
|
||||||||||||||||||
Asia
|
|
|
|
|
|
|
||||||||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Timing of revenue recognition:
|
||||||||||||||||||||||||
Products transferred at a point in time
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Products transferred over time
|
|
|
|
|
|
|
||||||||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Nine
months ended December 31, 2023
|
Nine months ended December 31, 2022
|
|||||||||||||||||||||||
Climate
Solutions
|
Performance
Technologies
|
Segment
Total
|
Climate
Solutions
|
Performance
Technologies
|
Segment
Total
|
|||||||||||||||||||
Product groups:
|
||||||||||||||||||||||||
Heat transfer
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
HVAC & refrigeration
|
|
|
|
|
|
|
||||||||||||||||||
Data center cooling
|
|
|
|
|
|
|
||||||||||||||||||
Air-cooled
|
|
|
|
|
|
|
||||||||||||||||||
Liquid-cooled
|
|
|
|
|
|
|
||||||||||||||||||
Advanced solutions
|
|
|
|
|
|
|
||||||||||||||||||
Inter-segment sales
|
|
|
|
|
|
|
||||||||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Geographic location:
|
||||||||||||||||||||||||
Americas
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Europe
|
|
|
|
|
|
|
||||||||||||||||||
Asia
|
|
|
|
|
|
|
||||||||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Timing of revenue recognition:
|
||||||||||||||||||||||||
Products transferred at a point in time
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Products transferred over time
|
|
|
|
|
|
|
||||||||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
December 31, 2023
|
March 31, 2023
|
||||||
Contract assets
|
$
|
|
$
|
|
||||
Contract liabilities
|
|
|
•
|
Level 1 – Quoted prices for identical instruments in active markets.
|
•
|
Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant
inputs are observable in active markets.
|
•
|
Level 3 – Model-derived valuations in which one or more significant inputs are not observable.
|
Three months ended December 31, | Nine months ended December 31, | |||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization of unrecognized net loss
|
|
|
|
|
||||||||||||
Net periodic benefit cost
|
$
|
|
$
|
|
$
|
|
$
|
|
Nine months ended December 31, | ||||||||||||||||
2023 | 2022 | |||||||||||||||
Fair Value | Fair Value | |||||||||||||||
Shares
|
Per Award
|
Shares |
Per Award
|
|||||||||||||
Performance stock awards
|
|
$
|
|
|||||||||||||
Restricted stock awards
|
|
$
|
|
$ | ||||||||||||
Stock options | $ |
Unrecognized
Compensation
Expense
|
Weighted-Average
Remaining Service
Period in Years
|
|||||||
Performance stock awards | $ | |||||||
Restricted stock awards
|
|
|
||||||
Stock options
|
|
|
||||||
Total
|
$
|
|
|
Three months ended December 31, | Nine months ended December 31, | |||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Employee severance and related benefits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other restructuring and repositioning expenses
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Three months ended December 31,
|
||||||||
2023
|
2022
|
|||||||
Beginning balance
|
$
|
|
$
|
|
||||
Additions
|
|
|
||||||
Payments
|
(
|
)
|
(
|
)
|
||||
Effect of exchange rate changes
|
|
|
||||||
Ending balance
|
$
|
|
$
|
|
Nine months ended December 31, | ||||||||
2023 |
2022 |
|||||||
Beginning balance | $ | $ | ||||||
Additions | ||||||||
Payments | ( |
) | ( |
) | ||||
Disposition of businesses (a) |
( |
) | ||||||
Effect of exchange rate changes | ( |
) | ||||||
Ending balance | $ | $ |
(a) |
|
Three months ended December 31, | Nine months ended December 31, | |||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Interest income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Foreign currency transactions (a)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net periodic benefit cost (b)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total expense – net
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|
(a) |
|
|
(b) |
|
Three months ended December 31,
|
Nine months ended December 31, | |||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net earnings attributable to Modine
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted-average shares outstanding – basic
|
|
|
|
|
||||||||||||
Effect of dilutive securities
|
|
|
|
|
||||||||||||
Weighted-average shares outstanding – diluted
|
|
|
|
|
||||||||||||
Earnings per share:
|
||||||||||||||||
Net earnings per share – basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net earnings per share – diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
March 31, 2023
|
|||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Restricted cash
|
|
|
||||||
Total cash, cash equivalents and restricted cash
|
$
|
|
$
|
|
|
December 31, 2023
|
March 31, 2023
|
||||||
Raw materials
|
$
|
|
$
|
|
||||
Work in process
|
|
|
||||||
Finished goods
|
|
|
||||||
Total inventories
|
$
|
|
$
|
|
December 31, 2023
|
March 31, 2023
|
|||||||
Land
|
$
|
|
$
|
|
||||
Buildings and improvements (
|
|
|
||||||
Machinery and equipment (
|
|
|
||||||
Office equipment (
|
|
|
||||||
Construction in progress
|
|
|
||||||
|
|
|||||||
Less: accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
Net property, plant and equipment
|
$
|
|
$
|
|
Climate
Solutions
|
Performance
Technologies
|
Total
|
||||||||||
Goodwill, March 31, 2023
|
$
|
|
$
|
|
$
|
|
||||||
Acquisition (disposition) (a)
|
|
(
|
)
|
|
||||||||
Effect of exchange rate changes
|
|
|
|
|||||||||
Goodwill, December 31, 2023
|
$
|
|
$
|
|
$
|
|
|
(a) | |
December 31, 2023
|
March 31, 2023
|
|||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated |
Intangible |
Carrying |
Accumulated |
Intangible |
|||||||||||||||||||
Value
|
Amortization
|
Assets
|
Value
|
Amortization
|
Assets
|
|||||||||||||||||||
Customer relationships
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Trade names
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||
Acquired technology
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||
Total intangible assets
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Three months ended December 31,
|
||||||||
2023
|
2022
|
|||||||
Beginning balance
|
$
|
|
$
|
|
||||
Warranties recorded at time of sale
|
|
|
||||||
Adjustments to pre-existing warranties
|
(
|
)
|
(
|
)
|
||||
Settlements
|
(
|
)
|
(
|
)
|
||||
Effect of exchange rate changes
|
|
|
||||||
Ending balance
|
$
|
|
$
|
|
Nine months ended December 31,
|
||||||||
2023
|
2022
|
|||||||
Beginning balance
|
$
|
|
$
|
|
||||
Warranties recorded at time of sale
|
|
|
||||||
Adjustments to pre-existing warranties
|
|
(
|
)
|
|||||
Settlements
|
(
|
)
|
(
|
)
|
||||
Disposition of businesses (a) |
( |
) | ||||||
Effect of exchange rate changes
|
|
(
|
)
|
|||||
Ending balance
|
$
|
|
$
|
|
(a)
|
|
Balance Sheet Location
|
December 31, 2023
|
March 31, 2023
|
||||||||
Lease Assets
|
||||||||||
Operating lease ROU assets
|
|
$
|
|
$
|
|
|||||
Finance lease ROU assets (a)
|
|
|
|
|||||||
Lease Liabilities
|
||||||||||
Operating lease liabilities
|
|
$
|
|
$
|
|
|||||
Operating lease liabilities
|
|
|
|
|||||||
Finance lease liabilities
|
|
|
|
|||||||
Finance lease liabilities
|
|
|
|
(a) |
|
Three months ended December 31, |
Nine months ended December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Operating lease
expense (a)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Finance lease
expense:
|
||||||||||||||||
Depreciation of
ROU assets
|
|
|
|
|
||||||||||||
Interest on
lease liabilities
|
|
|
||||||||||||||
Total lease
expense
|
$
|
|
$
|
|
$
|
|
$
|
|
(a)
|
|
|
Fiscal year
of maturity
|
December 31, 2023
|
March 31, 2023
|
||||||
Term loans
|
|
$
|
|
$
|
|
||||
|
|
|
|
||||||
|
|
|
|
||||||
Other (a)
|
|
|
|||||||
|
|
||||||||
Less: current portion
|
(
|
)
|
(
|
)
|
|||||
Less: unamortized debt issuance costs
|
(
|
)
|
(
|
)
|
|||||
Total long-term debt
|
$
|
|
$
|
|
|
(a) |
|
Fiscal Year
|
||||
Remainder of 2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
2029 & beyond
|
|
|||
Total
|
$
|
|
Three months ended December 31, 2023
|
Nine months ended December 31, 2023
|
|||||||||||||||||||||||||||||||
Foreign
Currency
Translation
|
Defined
Benefit
Plans
|
Cash
Flow
Hedges
|
Total
|
Foreign
Currency
Translation
|
Defined
Benefit
Plans
|
Cash
Flow
Hedges
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) | ||||||||||
Other comprehensive income (loss) before reclassifications
|
|
|
|
|
||||||||||||||||||||||||||||
Reclassifications:
|
||||||||||||||||||||||||||||||||
Amortization of unrecognized net loss (a)
|
-
|
|
-
|
|
- | - | ||||||||||||||||||||||||||
Unrecognized net pension
gain in disposed businesses (b)
|
- | ( |
) | - | ( |
) | - | ( |
) | - | ( |
) | ||||||||||||||||||||
Realized losses (gains) – net (c)
|
-
|
-
|
|
|
- | - | ( |
) | ( |
) | ||||||||||||||||||||||
Income taxes
|
(
|
)
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||||||||||||||||
Total other comprehensive income (loss)
|
|
|
|
|
( |
) | ||||||||||||||||||||||||||
Ending balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) |
Three months ended December 31, 2022
|
Nine months ended December 31, 2022
|
|||||||||||||||||||||||||||||||
Foreign
Currency
Translation
|
Defined
Benefit
Plans
|
Cash
Flow
Hedges
|
Total
|
Foreign
Currency
Translation
|
Defined
Benefit
Plans
|
Cash
Flow
Hedges
|
Total
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) | ||||||||||
Other comprehensive income (loss) before reclassifications
|
|
|
|
|
( |
) | ( |
) | ||||||||||||||||||||||||
Reclassifications:
|
||||||||||||||||||||||||||||||||
Amortization of unrecognized net loss (a)
|
-
|
|
-
|
|
- | - | ||||||||||||||||||||||||||
Realized losses – net (c)
|
- | - | - | - | ||||||||||||||||||||||||||||
Income taxes
|
|
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||||||||||||||||
Total other comprehensive income (loss)
|
|
|
|
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Ending balance
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) |
(a) |
|
(b) |
|
(c) |
|
Three months ended December 31,
|
||||||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||||||
External
Sales
|
Inter-segment
Sales
|
Total
|
External
Sales
|
Inter-segment
Sales
|
Total
|
|||||||||||||||||||
Net sales:
|
||||||||||||||||||||||||
Climate Solutions |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Performance Technologies |
||||||||||||||||||||||||
Segment total
|
|
|
|
|
|
|
||||||||||||||||||
Corporate and eliminations
|
-
|
(
|
)
|
(
|
)
|
-
|
(
|
)
|
(
|
)
|
||||||||||||||
Net sales
|
$
|
|
$
|
-
|
$
|
|
$
|
|
$
|
-
|
$
|
|
Nine months ended December 31,
|
||||||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||||||
External
Sales
|
Inter-segment
Sales
|
Total
|
External
Sales
|
Inter-segment
Sales
|
Total
|
|||||||||||||||||||
Net sales:
|
||||||||||||||||||||||||
Climate Solutions
|
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Performance Technologies
|
||||||||||||||||||||||||
Segment total
|
|
|
|
|
|
|
||||||||||||||||||
Corporate and eliminations
|
-
|
(
|
)
|
(
|
)
|
-
|
(
|
)
|
(
|
)
|
||||||||||||||
Net sales
|
$
|
|
$
|
-
|
$
|
|
$
|
|
$
|
-
|
$
|
|
Three months ended December 31,
|
|
Nine months ended December 31, | ||||||||||||||||||||||||||
2023
|
|
2022
|
|
2023
|
|
2022
|
||||||||||||||||||||||
$’s | % of sales | $’s | % of sales | $’s
|
% of sales | $’s
|
% of sales |
|||||||||||||||||||||
Gross profit:
|
||||||||||||||||||||||||||||
Climate Solutions | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||
Performance Technologies
|
% | % | % | % | ||||||||||||||||||||||||
Segment total
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||
Corporate and eliminations
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||||||||||||||||||
Gross profit
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
Three months ended December 31,
|
Nine months ended December 31, | |||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Operating income:
|
||||||||||||||||
Climate Solutions | $ | $ | $ | $ | ||||||||||||
Performance Technologies | ||||||||||||||||
Segment total
|
|
|
|
|
||||||||||||
Corporate and eliminations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Operating income
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
March 31, 2023
|
|||||||
Assets:
|
||||||||
Climate Solutions | $ | $ | ||||||
Performance Technologies | ||||||||
Other (a) |
||||||||
Total assets
|
$
|
|
$
|
|
(a)
|
|
Three months ended December 31, 2023
|
Nine months ended December 31, 2023
|
|||||||||||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||||||||||||||||
(in millions)
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
||||||||||||||||||||||||
Net sales
|
$
|
561.4
|
100.0
|
%
|
$
|
560.0
|
100.0
|
%
|
$
|
1,804.3
|
100.0
|
%
|
$
|
1,679.8
|
100.0
|
%
|
||||||||||||||||
Cost of sales
|
434.1
|
77.3
|
%
|
462.4
|
82.6
|
%
|
1,414.0
|
78.4
|
%
|
1,402.6
|
83.5
|
%
|
||||||||||||||||||||
Gross profit
|
127.3
|
22.7
|
%
|
97.6
|
17.4
|
%
|
390.3
|
21.6
|
%
|
277.2
|
16.5
|
%
|
||||||||||||||||||||
Selling, general and administrative expenses
|
68.0
|
12.1
|
%
|
58.0
|
10.3
|
%
|
198.3
|
11.0
|
%
|
173.1
|
10.3
|
%
|
||||||||||||||||||||
Restructuring expenses
|
1.6
|
0.3
|
%
|
0.1
|
-
|
2.1
|
0.1
|
%
|
2.2
|
0.1
|
%
|
|||||||||||||||||||||
Gain on sale of assets
|
(4.0
|
)
|
-0.7
|
%
|
-
|
-
|
(4.0
|
)
|
-0.2
|
%
|
-
|
-
|
||||||||||||||||||||
Operating income
|
61.7
|
11.0
|
%
|
39.5
|
7.1
|
%
|
193.9
|
10.7
|
%
|
101.9
|
6.1
|
%
|
||||||||||||||||||||
Interest expense
|
(5.8
|
)
|
-1.0
|
%
|
(5.9
|
)
|
-1.1
|
%
|
(17.8
|
)
|
-0.9
|
%
|
(14.7
|
)
|
-0.9
|
%
|
||||||||||||||||
Other expense – net
|
(0.5
|
)
|
-0.1
|
%
|
(0.4
|
)
|
-0.1
|
%
|
(1.0
|
)
|
-0.1
|
%
|
(4.1
|
)
|
-0.2
|
%
|
||||||||||||||||
Earnings before income taxes
|
55.4
|
9.9
|
%
|
33.2
|
5.9
|
%
|
175.1
|
9.7
|
%
|
83.1
|
4.9
|
%
|
||||||||||||||||||||
Provision for income taxes
|
(10.3
|
)
|
-1.8
|
%
|
(8.5
|
)
|
-1.5
|
%
|
(37.8
|
)
|
-2.1
|
%
|
(19.8
|
)
|
-1.2
|
%
|
||||||||||||||||
Net earnings
|
$
|
45.1
|
8.0
|
%
|
$
|
24.7
|
4.4
|
%
|
$
|
137.3
|
7.6
|
%
|
$
|
63.3
|
3.8
|
%
|
Climate Solutions
|
||||||||||||||||||||||||||||||||
Three months ended December 31, 2023
|
Nine months ended December 31, 2023
|
|||||||||||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||||||||||||||||
(in millions)
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
||||||||||||||||||||||||
Net sales
|
$
|
242.5
|
100.0
|
%
|
$
|
248.6
|
100.0
|
%
|
$
|
790.1
|
100.0
|
%
|
$
|
748.9
|
100.0
|
%
|
||||||||||||||||
Cost of sales
|
176.4
|
72.7
|
%
|
193.8
|
78.0
|
%
|
583.2
|
73.8
|
%
|
586.4
|
78.3
|
%
|
||||||||||||||||||||
Gross profit
|
66.1
|
27.3
|
%
|
54.8
|
22.0
|
%
|
206.9
|
26.2
|
%
|
162.5
|
21.7
|
%
|
||||||||||||||||||||
Selling, general and administrative expenses
|
25.9
|
10.7
|
%
|
24.6
|
9.9
|
%
|
77.5
|
9.8
|
%
|
72.3
|
9.7
|
%
|
||||||||||||||||||||
Restructuring expenses
|
1.4
|
0.6
|
%
|
-
|
-
|
1.7
|
0.2
|
%
|
0.3
|
-
|
||||||||||||||||||||||
Operating income
|
$
|
38.8
|
16.0
|
%
|
$
|
30.2
|
12.2
|
%
|
$
|
127.7
|
16.2
|
%
|
$
|
89.9
|
12.0
|
%
|
Performance Technologies
|
||||||||||||||||||||||||||||||||
Three months ended December 31, 2023
|
Nine months ended December 31, 2023
|
|||||||||||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||||||||||||||||
(in millions)
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
||||||||||||||||||||||||
Net sales
|
$
|
323.0
|
100.0
|
%
|
$
|
317.8
|
100.0
|
%
|
$
|
1,033.6
|
100.0
|
%
|
$
|
952.1
|
100.0
|
%
|
||||||||||||||||
Cost of sales
|
262.0
|
81.1
|
%
|
274.8
|
86.5
|
%
|
851.2
|
82.4
|
%
|
836.9
|
87.9
|
%
|
||||||||||||||||||||
Gross profit
|
61.0
|
18.9
|
%
|
43.0
|
13.5
|
%
|
182.4
|
17.6
|
%
|
115.2
|
12.1
|
%
|
||||||||||||||||||||
Selling, general and administrative expenses
|
29.6
|
9.2
|
%
|
25.5
|
8.0
|
%
|
85.2
|
8.2
|
%
|
72.2
|
7.6
|
%
|
||||||||||||||||||||
Restructuring expenses
|
0.2
|
-
|
0.1
|
-
|
0.4
|
-
|
1.9
|
0.2
|
%
|
|||||||||||||||||||||||
Operating income
|
$
|
31.2
|
9.7
|
%
|
$
|
17.4
|
5.5
|
%
|
$
|
96.8
|
9.4
|
%
|
$
|
41.1
|
4.3
|
%
|
• |
The impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to inflation, energy costs, supply chain challenges, tariffs, sanctions and other trade issues or
cross-border trade restrictions (and any potential resulting trade war), and military conflicts, including the current conflicts in Ukraine and in the Middle East and the recent attacks on shipping vessels in the Red Sea;
|
• |
The impact of other economic, social and political conditions, changes, challenges and unrest, particularly in the geographic, product and financial markets where we and our customers operate and compete, including foreign currency
exchange rate fluctuations; increases in interest rates; recession and recovery therefrom; and the general uncertainties about the impact of regulatory and/or policy changes, including those related to tax and trade that have been or may be
implemented in the U.S. or abroad;
|
• |
The impact of potential price increases associated with raw materials, including aluminum, copper, steel and stainless steel (nickel), and other purchased component inventory including, but not limited to, increases in the underlying
material cost based upon the London Metal Exchange and related premiums or fabrication costs. These prices may be impacted by a variety of factors, including changes in trade laws and tariffs, the behavior of our suppliers and significant
fluctuations in demand. This risk includes our ability to successfully manage our exposure and our ability to adjust product pricing in response to price increases, including through our quotation process or through contract provisions for
prospective price adjustments, as well as the inherent lag in timing of such contract provisions;
|
• |
Our ability to be at the forefront of technological advances in order to differentiate ourselves from our competitors and provide innovative products and services to our customers, and the impacts of any changes in or the adoption rate of
technologies that we expect to drive sales growth, including those related to data center cooling and electric vehicles;
|
• |
Our ability to mitigate increases in labor costs and labor shortages;
|
• |
The impact of public health threats, such as COVID-19, on the national and global economy, our business, suppliers (and the supply chain), customers, and employees; and
|
• |
The impact of legislation, regulations, and government incentive programs, including those addressing climate change, on demand for our products and the markets we serve, including our ability to take advantage of opportunities to supply
alternative new technologies to meet environmental and/or energy standards and objectives.
|
• |
The impact of problems, including logistic and transportation challenges, associated with suppliers meeting our quantity, quality, price and timing demands, and the overall health of our suppliers, including their ability and willingness
to supply our volume demands if their production capacity becomes constrained;
|
• |
The overall health of and pricing pressure from our customers in light of economic and market-specific factors and the potential impact on us from any deterioration in the stability or performance of any of our major customers, including
any lingering impacts associated with the now settled United Auto Workers union strikes;
|
• |
Our ability to maintain current customer relationships and compete effectively for new business, including our ability to achieve profit margins acceptable to us by offsetting or otherwise addressing any cost increases associated with
supply chain challenges and inflationary market conditions;
|
• |
The impact of product or manufacturing difficulties or operating inefficiencies, including any product or program launches, product transfer challenges and warranty claims;
|
• |
The impact of delays or modifications initiated by major customers with respect to product or program launches, product applications or requirements;
|
• |
Our ability to consistently structure our operations in order to develop and maintain a competitive cost base with appropriately skilled and stable labor, while also positioning ourselves geographically, so that we can continue to support
our customers with the technical expertise and market-leading products they demand and expect from Modine;
|
• |
Our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses while also completing restructuring
activities and realizing the anticipated benefits thereof;
|
• |
Costs and other effects of the investigation and remediation of environmental contamination; including when related to the actions or inactions of others and/or facilities over which we have no control;
|
• |
Our ability to recruit and maintain talent, including personnel in managerial, leadership, operational and administrative functions;
|
• |
Our ability to protect our proprietary information and intellectual property from theft or attack by internal or external sources;
|
• |
The impact of a substantial disruption or material breach of our information technology systems, and any related delays, problems or costs;
|
• |
Increasingly complex and restrictive laws and regulations and the costs associated with compliance therewith, including state and federal labor regulations, laws and regulations associated with being a U.S. public company, and other laws
and regulations present in various jurisdictions in which we operate;
|
• |
Increasing emphasis by customers, investors, and employees on environmental, social and corporate governance matters may impose additional costs on us, adversely affect our reputation or expose us to new risks;
|
• |
Work stoppages or interference at our facilities or those of our major customers and/or suppliers;
|
• |
The constant and increasing pressures associated with healthcare and associated insurance costs; and
|
• |
Costs and other effects of litigation, claims, or other obligations, including those that may be asserted against us in connection with divested businesses.
|
• |
Our ability to successfully realize anticipated benefits, including improved profit margins and cash flow, from strategic initiatives and our continued application of 80/20 principles across our businesses;
|
• |
Our ability to accelerate growth by identifying and executing on organic growth opportunities and acquisitions, and to efficiently and successfully integrate acquired businesses; and
|
• |
The potential impacts from actions by activist shareholders, including disruption of our business and related costs.
|
• |
Our ability to fund our global liquidity requirements efficiently for our current operations and meet our long-term commitments in the event of disruption in or tightening of the credit markets or extended recessionary conditions in the
global economy;
|
• |
The impact of increases in interest rates in relation to our variable-rate debt obligations;
|
• |
The impact of changes in federal, state or local taxes that could have the effect of increasing our income tax expense;
|
• |
Our ability to comply with the financial covenants in our credit agreements, including our leverage ratio (net debt divided by Adjusted EBITDA, as defined in our credit agreements) and our interest coverage ratio (Adjusted EBITDA divided
by interest expense, as defined in our credit agreements);
|
• |
The potential unfavorable impact of foreign currency exchange rate fluctuations on our financial results; and
|
• |
Our ability to effectively realize the benefits of deferred tax assets in various jurisdictions in which we operate.
|
Period
|
Total Number of
Shares Purchased
|
Average
Price Paid
Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Maximum Number (or
Approximate Dollar
Value) of Shares
that May Yet Be Purchased
Under the Plans or Programs (a)
|
October 1 – October 31, 2023
|
56,558 (b)
|
$43.27
|
_______
|
$36,370,398
|
November 1 – November 30, 2023
|
100,000 (c)
|
$43.07
|
100,000
|
$32,063,074
|
December 1 – December 31, 2023
|
9,683 (b)
|
$54.24
|
_______
|
$32,063,074
|
Total
|
166,241
|
$43.79
|
100,000
|
(a) |
Effective November 5, 2022, the Company’s Board of Directors authorized the Company to repurchase up to $50.0 million of Modine common stock at such times and prices that it deems to be appropriate. This authorization expires in November
2024.
|
(b) |
Includes shares delivered back to the Company by employees and/or directors to satisfy tax withholding obligations that arise upon the vesting of stock awards. The Company, pursuant to its equity compensation plans, gives participants the
opportunity to turn back to the Company the number of shares from the award sufficient to satisfy tax withholding obligations that arise upon the termination of restrictions. These shares are held as treasury shares.
|
(c) |
Includes shares acquired pursuant to the repurchase program described in (a) above.
|
(a)
|
Exhibits:
|
Exhibit No.
|
Description
|
Incorporated Herein By
Reference To
|
Filed
Herewith
|
Rule 13a-14(a)/15d-14(a) Certification of Neil D. Brinker, President and Chief Executive Officer.
|
X
|
||
Rule 13a-14(a)/15d-14(a) Certification of Michael B. Lucareli, Executive Vice President, Chief Financial Officer.
|
X
|
||
Section 1350 Certification of Neil D. Brinker, President and Chief Executive Officer.
|
X
|
||
Section 1350 Certification of Michael B. Lucareli, Executive Vice President, Chief Financial Officer.
|
X
|
||
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
X
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema.
|
X
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
X
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
X
|
|
10.1.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
X
|
|
10.1.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
X
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
X
|
MODINE MANUFACTURING COMPANY
|
||
(Registrant)
|
||
By:
|
/s/ Michael B. Lucareli | |
Michael B. Lucareli, Executive Vice President, Chief Financial Officer*
|
||
Date: January 31, 2024
|
1. |
I have reviewed this quarterly report on Form 10-Q of Modine Manufacturing Company for the quarter ended December 31, 2023;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c. |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
|
d. |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors
(or persons performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report
financial information; and
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
January 31, 2024 | |
/s/ Neil D. Brinker
|
||
Neil D. Brinker
|
||
President and Chief Executive Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Modine Manufacturing Company for the quarter ended December 31, 2023;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c. |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
|
d. |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth
fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit
committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s
ability to record, process, summarize and report financial information; and
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
January 31, 2024
|
|
/s/ Michael B. Lucareli
|
||
Michael B. Lucareli
|
||
Executive Vice President, Chief Financial Officer
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
January 31, 2024 | |
/s/ Neil D. Brinker
|
||
Neil D. Brinker
|
||
President and Chief Executive Officer
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
January 31, 2024
|
|
/s/ Michael B. Lucareli
|
||
Michael B. Lucareli
|
||
Executive Vice President, Chief Financial Officer
|
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | $ 561.4 | $ 560.0 | $ 1,804.3 | $ 1,679.8 |
Cost of sales | 434.1 | 462.4 | 1,414.0 | 1,402.6 |
Gross profit | 127.3 | 97.6 | 390.3 | 277.2 |
Selling, general and administrative expenses | 68.0 | 58.0 | 198.3 | 173.1 |
Restructuring expenses | 1.6 | 0.1 | 2.1 | 2.2 |
Gain on sale of assets | (4.0) | 0.0 | (4.0) | 0.0 |
Operating income | 61.7 | 39.5 | 193.9 | 101.9 |
Interest expense | (5.8) | (5.9) | (17.8) | (14.7) |
Other expense - net | (0.5) | (0.4) | (1.0) | (4.1) |
Earnings before income taxes | 55.4 | 33.2 | 175.1 | 83.1 |
Provision for income taxes | (10.3) | (8.5) | (37.8) | (19.8) |
Net earnings | 45.1 | 24.7 | 137.3 | 63.3 |
Net earnings attributable to noncontrolling interest | (0.7) | (0.2) | (1.6) | (0.1) |
Net earnings attributable to Modine | $ 44.4 | $ 24.5 | $ 135.7 | $ 63.2 |
Net earnings per share attributable to Modine shareholders: | ||||
Basic (in dollars per share) | $ 0.85 | $ 0.47 | $ 2.59 | $ 1.21 |
Diluted (in dollars per share) | $ 0.83 | $ 0.46 | $ 2.55 | $ 1.2 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 52.3 | 52.3 | 52.4 | 52.2 |
Diluted (in shares) | 53.2 | 52.9 | 53.2 | 52.7 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net earnings | $ 45.1 | $ 24.7 | $ 137.3 | $ 63.3 |
Other comprehensive income (loss), net of income taxes: | ||||
Foreign currency translation | 19.4 | 23.1 | 5.9 | (24.7) |
Defined benefit plans, net of income taxes of $0.3, $0, $0.8 and $0 million | 0.1 | 1.3 | 1.7 | 4.0 |
Cash flow hedges, net of income taxes of $0.2, $0.2, ($0.1) and $0.2 million | 0.5 | 1.5 | (0.4) | (0.1) |
Total other comprehensive income (loss) | 20.0 | 25.9 | 7.2 | (20.8) |
Comprehensive income (loss) | 65.1 | 50.6 | 144.5 | 42.5 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.8) | (0.8) | (1.5) | 0.2 |
Comprehensive income (loss) attributable to Modine | $ 64.3 | $ 49.8 | $ 143.0 | $ 42.7 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Other comprehensive income (loss): | ||||
Defined benefit plans, tax | $ 0.3 | $ 0.0 | $ 0.8 | $ 0.0 |
Cash flow hedges, tax | $ 0.2 | $ 0.2 | $ (0.1) | $ 0.2 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions |
Dec. 31, 2023 |
Mar. 31, 2023 |
---|---|---|
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Preferred stock, shares authorized (in shares) | 16.0 | 16.0 |
Preferred stock, shares issued (in shares) | 0.0 | 0.0 |
Common stock, par value (in dollars per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 80.0 | 80.0 |
Common stock, shares issued (in shares) | 55.9 | 55.4 |
Treasury stock at cost (in shares) | 3.7 | 3.3 |
General |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
General [Abstract] | |
General |
Note 1: General
The accompanying unaudited condensed consolidated financial statements of Modine Manufacturing Company (“Modine” or the “Company”) were prepared in conformity with accounting principles generally accepted in the United States
(“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial
position, results of operations and cash flows required by GAAP for complete financial statements. The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results
for the interim periods. Results for the first nine months of fiscal 2024 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the consolidated financial
statements and related notes in Modine’s Annual Report on Form 10-K for the year ended March 31, 2023.
New
accounting guidance
Supplier
finance programs
In September 2022, the Financial Accounting Standards Board (“FASB”) issued new guidance regarding disclosure of supplier finance programs including the key terms, outstanding obligations, and where such obligations are
presented within the financial statements. In addition, beginning for fiscal 2025, a roll forward of obligations under such programs will be required annually. The new guidance does not impact the recognition, measurement or financial statement
presentation of supplier finance program obligations. The Company adopted this guidance as of April 1, 2023.
The Company facilitates a voluntary supplier finance program through a financial institution that allows certain suppliers in the U.S. and Europe to request early
payment for invoices, at a discount, from the financial institution. The Company or the financial institution may terminate the supplier finance program upon 90 days’ notice. The Company’s obligations to its suppliers, including amounts due and payment terms, are consistent, irrespective of whether a supplier participates in the program. The
Company is not party to the arrangements between the participating suppliers and the financial institution. Under this program, the Company confirms the validity of supplier invoices to the financial institution and remits payments to it based on
the original payment terms, which typically range from 60 to 120 days. The outstanding obligations under this program, included within December 31, 2023 and March 31, 2023, respectively.
in the consolidated balance sheets, totaled $16.1 million and $21.2 million at
Segment reporting disclosures
In November 2023, the FASB issued new disclosure guidance for
reportable segments. The new guidance will require disclosure of significant segment expenses, which are expenses that are (i) significant to the segment, (ii) regularly provided to the chief operating decision maker (“CODM”) and (iii) included in
the reported measure of segment profit or loss. In addition, the new guidance will require companies to disclose the title and position of their CODM and expand interim disclosures to include the majority of the annual segment disclosures. The
definition of and method for determining reportable segments is unchanged. The new disclosure requirements will become effective for the Company’s fiscal 2025 annual financial statements. The Company is currently evaluating potential impacts of the new disclosure requirements, but does not expect the
guidance will have a material impact on its consolidated financial statements.
|
Acquisitions and Dispositions |
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions [Abstract] | ||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions |
Note 2: Acquisitions and Dispositions
Acquisition of Napps Technology Corporation
On July 1, 2023, the Company acquired substantially all of the net operating assets of Napps Technology
Corporation (“Napps”) for consideration totaling $5.8 million. The Company paid $4.8 million during the second quarter of fiscal 2024 and, based upon the terms of the agreement, expects to pay the remaining $1.0 million to the seller one year after closing.
Napps is a Texas-based manufacturer of air- and water-cooled chillers, condensing units and heat
pumps. This acquisition expands the Company’s indoor air quality product portfolio and supports its growth strategy and mission of improving indoor air quality. Napps has historical annual sales of approximately $5.0 million. Since the date of the acquisition, the Company has reported the financial results of the Napps business within the Climate Solutions segment.
For the December 31, 2023 condensed consolidated financial statements, the Company has allocated the
purchase price to the identifiable tangible and intangible assets acquired and the liabilities assumed based upon their estimated fair values as of the acquisition date. The Company engaged a third-party valuation specialist to assist in determining
the fair value of the acquired intangible assets. The valuation analysis considered the expected future cash flows of the acquired business. The Company recorded $2.9 million of intangible assets, including customer relationship and acquired technology assets. The Company is amortizing the acquired intangible assets using a weighted-average life of approximately ten years. The Company allocated the excess of the purchase price over the net assets recognized to goodwill in the amount of $1.0 million, which is deductible for income tax purposes.
The Company’s allocation of the purchase price for its acquisition of Napps was as follows:
Disposition of two coatings facilities
On September 19, 2023, the Company sold two coatings facilities, located in California and Florida, to Protecall, LLC. These facilities provide aftermarket application services, in which HVAC units are sprayed with an
anti-corrosion protective coating. The Company’s other coatings businesses continue to own and license its spray-applied coatings used in aftermarket applications and are strategically pursuing growth through product licensing arrangements. Prior to
the disposition, the Company reported the financial results of these businesses within the Performance Technologies segment. In fiscal 2023, the net sales of these two businesses totaled $6.4 million. As a result of this transaction, the Company wrote-off $0.7 million of goodwill attributable to the disposed businesses and recorded a gain on sale of less than $0.1 million during the second quarter of fiscal 2024.
Disposition of three Germany automotive businesses
On October 31, 2023, the Company sold three automotive businesses based in Germany (the “disposal group”) to affiliates of Regent, L.P. The Company expects that the sale of these businesses, which produce air- and
liquid-cooled products for internal combustion diesel and gasoline engines for the European automotive market, will support its strategic prioritization of resources towards higher-margin technologies. The Company determined the disposal group did not
qualify as a discontinued operation for reporting purposes under U.S. GAAP. As part of its evaluation, the Company considered anticipated future sales in Europe to automotive and other vehicular customers with similar product offerings and using
similar heat-transfer technology within the Performance Technologies segment.
The net transaction price
for the sale of the disposal group was less than $1.0 million. As a result of the sale, the Company recorded a $4.0 million gain on sale during the third quarter of fiscal 2024, primarily driven by the net liability position of the disposal group at the time of
sale. In addition, the gain on sale includes the write-off of $0.6 million of net actuarial gains related to the disposal group’s pension
plans. The Company reported the $4.0 million gain on the gain on sale of assets line within the consolidated statement of operations.
Prior to the disposition, the Company reported the financial results of the disposal
group within its Performance Technologies segment. Net sales of the disposal group included within the Company’s consolidated statements of operations for the first nine months of fiscal 2024 and 2023 totaled $54.2 million and $54.8 million,
respectively.
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Revenue Recognition |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition |
Note 3: Revenue Recognition
Disaggregation
of revenue
The tables below present revenue for each of the Company’s operating segments. Each
segment’s revenue is disaggregated by product group, by geographic location and based upon the timing of revenue recognition.
Beginning in fiscal 2024 and in connection with the Company’s strategic transformation and continued application of 80/20
principles across its businesses, the Company refined its reporting of disaggregated revenue within the Climate Solutions segment to be more consistent with how the segment has aligned its teams around three market-based verticals: i) heat transfer
products; ii) HVAC & refrigeration; and iii) data center cooling. For the refined fiscal 2024 presentation, the Company reports revenue based upon the respective product lines and related customer relationships managed by each market-based
vertical team. The disaggregated revenue information presented in the tables below for fiscal 2023 has been recast to be comparable with the fiscal 2024 presentation.
Contract balances
Contract assets and contract liabilities from contracts with customers were as follows:
Contract assets,
included within other current assets in the consolidated balance sheets, primarily consist of capitalized costs related to customer-owned tooling contracts, wherein the customer has guaranteed reimbursement, and assets recorded for revenue
recognized over time, which represent the Company’s rights to consideration for work completed but not yet billed. The $4.6 million
decrease in contract assets during the first nine months of fiscal 2024 primarily resulted from a decrease in contract assets for revenue recognized over time.
Contract liabilities,
included within other current liabilities in the consolidated balance sheets, consist of customer deposits and other payments received in advance of satisfying performance obligations under customer
contracts, including contracts for data center cooling products and customer-owned tooling. The $57.7 million increase in contract
liabilities during the first nine months of fiscal 2024 primarily resulted from payments received in advance of the Company’s satisfaction of performance obligations, largely associated with contracts with long inventory lead times.
|
Fair Value Measurements |
9 Months Ended | ||||||
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Dec. 31, 2023 | |||||||
Fair Value Measurements [Abstract] | |||||||
Fair Value Measurements |
Note 4: Fair Value Measurements
Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or
liability in an orderly transaction between market participants. Fair value measurements are classified under the following hierarchy:
When available, the Company uses quoted market prices to determine fair value and classifies such measurements as Level 1. In some cases, where market prices are not
available, the Company uses observable market-based inputs to calculate fair value, in which case the measurements are classified as Level 2. If quoted or observable market prices are not available, the Company determines fair value based upon
valuation models that use, where possible, market-based data such as interest rates, yield curves or currency rates. These measurements are classified as Level 3.
The carrying values of cash, cash equivalents, restricted cash, short-term investments, trade accounts receivable, accounts payable, and short-term debt approximate fair
value due to the short-term nature of these instruments. The fair value of the Company’s long-term debt is disclosed in Note 17.
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Pensions |
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions |
Note 5: Pensions
Pension cost included the following components:
The Company’s funding policy is to contribute annually, at a minimum, the amount
necessary on an actuarial basis to provide for benefits in accordance with applicable laws and regulations. In connection with funding relief provisions within the American Rescue Plan Act of 2021, the Company did not make cash contributions to its U.S. pension plans during the first nine months of fiscal 2024. The Company expects to contribute $0.9 million to its U.S. pension plans during the fourth quarter of fiscal 2024.
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Stock-Based Compensation |
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Stock-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
Note 6: Stock-Based Compensation
The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive plan (“LTIP”) for officers and other executives that authorizes grants of
stock awards, stock options, and performance-based awards for retention and performance, (2) a discretionary equity program for other management and key employees, and (3) stock awards for non-employee directors.
The Company calculates compensation expense based upon the fair value of the awards at the time of grant and subsequently recognizes expense ratably over the respective
vesting periods of the stock-based awards. The Company recognized stock-based compensation expense of $3.1 million and $1.5 million for the three months ended December 31, 2023 and 2022, respectively. The Company recognized stock-based compensation expense of $7.7
million and $5.0 million for the nine months ended December 31, 2023 and 2022, respectively.
During the first nine months of fiscal 2024, the Company granted performance-based stock awards and
restricted stock awards. The performance metrics for the performance-based stock awards are based upon a target three-year average cash flow return on invested capital and a target three-year average growth in consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”) at the end of the performance period ending March 31, 2026.
During the first nine months of fiscal 2023, the Company granted restricted stock awards, stock options,
and performance cash awards.
The weighted-average fair value of stock-based compensation awards granted during the nine months ended December 31, 2023 and 2022 were as follows:
As of December 31, 2023, unrecognized
compensation expense related to non-vested stock-based compensation awards, which will be recognized as expense over the remaining service periods, was as follows:
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Restructuring Activities |
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Restructuring Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Activities |
Note 7: Restructuring Activities
During the first nine months of fiscal 2024, restructuring and repositioning expenses
primarily consisted of equipment transfer costs and severance expenses in the Climate Solutions and Performance Technologies segments. These restructuring activities are part of the Company’s transformational initiatives supported by 80/20
principles and include product line transfers intended to achieve production efficiency improvements in its manufacturing facilities and targeted headcount reductions in Europe and Asia.
During the first nine months of fiscal 2023, restructuring and repositioning expenses
primarily consisted of severance expenses related to targeted headcount reductions in Europe within the Performance Technologies segment. In addition, the Company incurred equipment transfer costs and closure costs related to a previously-leased
facility in the Performance Technologies and Climate Solutions segments, respectively.
Restructuring and repositioning expenses were as follows:
Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs.
The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows:
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Other Income and Expense |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expense |
Note 8: Other Income and Expense
Other income and expense consisted of the following:
|
Income Taxes |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes |
Note 9: Income Taxes
The
Company’s effective tax rate for the three months ended December 31, 2023 and 2022 was 18.6 percent and 25.6 percent, respectively. The Company’s effective tax rate for the nine months ended December 31, 2023 and 2022 was 21.6 percent and 23.8 percent,
respectively. The effective tax rates for fiscal 2024 are lower than the prior year, primarily due to changes in the mix and amount of foreign and U.S. earnings. The effective tax rates for the fiscal 2024 periods were also favorably impacted by a
$3.1 million tax benefit related to the sale of three automotive businesses based in Germany during the third quarter. See Note 2 for additional information regarding the sale. In addition, the effective tax rate for the first nine months
of fiscal 2024 was favorably impacted by the release of a $1.8 million unrecognized tax benefit during the second quarter, due to a lapse
in statute of limitations.
The Company records valuation allowances against its net deferred tax assets to the extent it determines it is more likely than not that
such assets will not be realized in the future. Each quarter, the Company evaluates the probability that its deferred tax assets will be realized and determines whether valuation allowances or adjustments thereto are needed. This
determination involves judgment and the use of significant estimates and assumptions, including expectations of future taxable income and tax planning strategies. In addition, the Company considers the duration of statutory carryforward
periods and historical financial results.
At December 31, 2023, valuation allowances against deferred tax assets in the U.S. and in certain foreign jurisdictions totaled $38.4 million and $16.3 million, respectively. The Company will maintain the valuation allowances in each applicable tax jurisdiction until it determines it is more likely than not
the deferred tax assets will be realized, thereby eliminating the need for a valuation allowance. Future events or circumstances, such as lower taxable income or unfavorable changes in the financial outlook of the Company’s operations in the
U.S. and certain foreign jurisdictions, could necessitate the establishment of further valuation allowances.
Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its
estimated annual effective tax rate. Under this methodology, the Company applies its estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company records the tax impacts
of certain significant, unusual or infrequently occurring items in the period in which they occur. In addition, the Company excludes the impact of operations anticipated to generate net operating losses for the full fiscal year from the
overall effective tax rate calculation and instead records them discretely based upon year-to-date results. The Company does not anticipate a significant change in unrecognized tax benefits during the remainder of fiscal 2024.
|
Earnings Per Share |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
Note 10: Earnings
Per Share
The components of basic and diluted earnings per share were as follows:
There were no anti-dilutive securities that impacted the calculation of diluted earnings per share for the three and nine months ended December 31, 2023.
For the three and nine
months ended December 31, 2022, the calculation of diluted earnings per share excluded 0.1 million and 0.6 million stock options, respectively, because they were anti-dilutive. In addition, the calculation for the three and nine months ended December 31,
2022 excluded less than 0.1 million and 0.2
million restricted stock awards, respectively, because they were anti-dilutive.
|
Cash, Cash Equivalents and Restricted Cash |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash [Abstract] | |||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash |
Note 11: Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash consisted of the following:
Restricted cash, which is reported within other current assets and other noncurrent assets in the consolidated balance sheets, consists primarily of deposits for
contractual guarantees or commitments required for rents, import and export duties, and commercial agreements.
|
Inventories |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventories [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Note 12: Inventories
Inventories consisted of the following:
|
Property, Plant and Equipment |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
Note 13: Property, Plant and Equipment
Property, plant and equipment, including depreciable lives, consisted of the following:
|
Goodwill and Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets |
Note 14: Goodwill and Intangible Assets
The following table presents a roll forward
of the carrying value of goodwill from March 31, 2023 to December 31, 2023.
Intangible assets consisted of the following:
During the second quarter of fiscal
2024, the Company recorded customer relationship and acquired technology intangible assets totaling $2.9 million related to the Napps
acquisition. See Note 2 for additional information.
The Company recorded amortization expense of $2.1 million and $2.0 million for the three months ended December 31, 2023 and 2022, respectively. The Company recorded amortization expense of $6.1
million and $6.0 million for the nine months ended December 31, 2023 and 2022, respectively. The Company estimates that it will record
approximately $2.0 million of amortization expense during the remainder of fiscal 2024. The Company estimates that it will record
approximately $8.0 million of annual amortization expense in fiscal 2025 through 2028 and
approximately $7.0 million in fiscal 2029.
|
Product Warranties |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties |
Note 15: Product Warranties
Changes in accrued warranty costs were as follows:
|
Leases |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
Note 16: Leases
Lease assets and liabilities
The following table provides a summary of leases recorded on the consolidated balance
sheets.
Components of lease expense
The components of lease expense were as follows:
|
Indebtedness |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness |
Note 17: Indebtedness
Long-term debt consisted of the following:
Long-term debt, including the current portion of long-term debt, matures as
follows:
The Company maintains a credit agreement
with a syndicate of banks that provides for a multi-currency $275.0 million revolving credit facility and U.S. dollar- and
euro-denominated term loan facilities maturing in October 2027. In addition, the credit agreement provides for shorter-duration swingline loans. Borrowings under the revolving credit, swingline and term loan facilities bear interest at a variable
rate, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below. At December 31, 2023, the weighted-average interest rate for the term loans was 6.5 percent.
Based upon the terms of the credit agreement, the Company classifies borrowings under its revolving credit and swingline facilities as long-term and short-term debt,
respectively, on its consolidated balance sheets. At December 31, 2023 and March 31,2023, the Company had no outstanding borrowings under either its revolving credit or
swingline facilities. As of December 31, 2023, domestic letters of credit totaled $5.6 million and, as a result, available borrowing
capacity under the Company’s revolving credit facility was $269.4 million.
The Company also maintains credit agreements for its foreign subsidiaries. The
outstanding short-term borrowings related to these foreign credit agreements totaled $3.7 million at March 31, 2023. There were no short-term borrowings related to these agreements at December 31, 2023.
Indebtedness under the Company’s credit agreement and Senior Note agreements is secured by liens on substantially all domestic assets. These agreements also require
compliance with various covenants that may limit the Company’s ability to incur additional indebtedness; grant liens; make investments, loans, or guarantees; engage in certain transactions with affiliates; and make restricted payments including
dividends. In addition, the agreements may require prepayment in the event of certain asset sales.
Financial covenants within its credit agreements include a leverage ratio covenant, which requires the Company to limit its consolidated indebtedness, less a portion of its
cash balances, both as defined by the credit agreements, to no more than
times consolidated net earnings before
interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA.”) The Company must also maintain a ratio of Adjusted EBITDA of at least three times consolidated interest expense. As of December 31, 2023, the Company was in compliance with its debt covenants.The Company estimates the fair value of long-term debt using discounted future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. As of December 31, 2023
and March 31, 2023, the carrying value of the Company’s long-term debt approximated fair value, with the exception of the Senior Notes, which had an aggregate fair value of $119.0 million and $125.9 million, respectively. The fair value
of the Company’s long-term debt is categorized as Level 2 within the fair value hierarchy. Refer to Note 4 for the definition of a Level 2 fair value measurement.
|
Risks, Uncertainties, Contingencies and Litigation |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
Risks, Uncertainties, Contingencies and Litigation [Abstract] | |
Risks, Uncertainties, Contingencies and Litigation |
Note 18: Risks, Uncertainties, Contingencies and Litigation
Environmental
The Company has recorded environmental investigation and remediation accruals related to manufacturing facilities in the U.S., one of which the Company currently owns and operates, and at its
former manufacturing facility in the Netherlands. These accruals primarily relate to soil and groundwater contamination at facilities where past operations followed practices and procedures that were considered acceptable under then-existing
regulations, or where the Company is a successor to the obligations of prior owners, and current laws and regulations require investigative and/or remedial work to ensure sufficient environmental compliance. In instances where a range of loss
can be reasonably estimated for a probable environmental liability, but no amount within the range is a better estimate than any other amount, the Company accrues the minimum of the range. The Company’s accruals for environmental matters totaled
$18.3 million and $17.6
million as of December 31, 2023 and March 31, 2023, respectively. During the third quarter of fiscal 2024, the Company increased its remediation accrual related to a former manufacturing facility in the U.S. by $1.0 million. As additional information becomes available regarding environmental matters, the Company will re-assess the liabilities and revise the
estimated accruals, if necessary. While it is possible that the ultimate environmental remediation costs may be in excess of amounts accrued, the Company believes, based upon currently available information, that the ultimate outcome of these
matters, individually and in the aggregate, will not have a material adverse effect on its financial position. However, these matters are subject to inherent uncertainties, and unfavorable outcomes could occur, including significant monetary
damages.
Other litigation
In the normal course of business, the Company and its subsidiaries are named as defendants in various lawsuits and enforcement proceedings by private parties, governmental
agencies and/or others in which claims are asserted against Modine. The Company believes that any additional loss in excess of amounts already accrued would not have a material effect on the Company’s consolidated balance sheet, results of
operations, and cash flows. In addition, management expects that the liabilities which may ultimately result from such lawsuits or proceedings, if any, would not have a material adverse effect on the Company’s financial position.
|
Accumulated Other Comprehensive Loss |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss |
Note 19: Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss were as follows:
|
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
Note 20: Segment Information
The following is a summary of net sales, gross profit and operating income by segment:
The following is a summary of segment assets, comprised entirely of trade
accounts receivable and inventories, and other assets:
|
Subsequent Events |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events |
Note 21: Subsequent Events
Purchase of TMGcore, Inc. intellectual property In January 2024, the Company purchased intellectual property and other specific assets from TMGcore, Inc., a specialist in single- and two-phase liquid immersion cooling technology for data centers. The Company expects to utilize the liquid cooling immersion technology to support its growth strategy of expanding its global data center product offerings. The initial purchase price of the assets was $12.0 million. Additional contingent consideration may be payable to the seller in fiscal 2029. The amount of any additional consideration is dependent upon future financial metrics associated with the acquired technology. At this time, the Company cannot estimate the amount or range of additional consideration that may be payable to the seller in fiscal 2029. Technical service center restructuring In January 2024, the Company approved a plan to close a technical service center in Europe. The objective of this restructuring initiative is to optimize the Company’s utilization of its technical service center capacity and realign its cost structure in light of the recent sale of three automotive businesses in Germany. The Company is targeting to complete the closure during the first half of fiscal 2025. At this time, the Company has not determined the full restructuring plan, however, the Company preliminarily estimates that closure costs will total approximately $8.0 million to $12.0 million. This estimate is subject to change as management completes the restructuring plan. The Company anticipates that severance expenses associated with this restructuring initiative will be recorded during the fourth quarter of fiscal 2024. |
Insider Trading Arrangements |
3 Months Ended |
---|---|
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General (Policies) |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
General [Abstract] | |
Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements of Modine Manufacturing Company (“Modine” or the “Company”) were prepared in conformity with accounting principles generally accepted in the United States
(“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial
position, results of operations and cash flows required by GAAP for complete financial statements. The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results
for the interim periods. Results for the first nine months of fiscal 2024 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the consolidated financial
statements and related notes in Modine’s Annual Report on Form 10-K for the year ended March 31, 2023.
|
New Accounting Guidance |
New
accounting guidance
Supplier
finance programs
In September 2022, the Financial Accounting Standards Board (“FASB”) issued new guidance regarding disclosure of supplier finance programs including the key terms, outstanding obligations, and where such obligations are
presented within the financial statements. In addition, beginning for fiscal 2025, a roll forward of obligations under such programs will be required annually. The new guidance does not impact the recognition, measurement or financial statement
presentation of supplier finance program obligations. The Company adopted this guidance as of April 1, 2023.
The Company facilitates a voluntary supplier finance program through a financial institution that allows certain suppliers in the U.S. and Europe to request early
payment for invoices, at a discount, from the financial institution. The Company or the financial institution may terminate the supplier finance program upon 90 days’ notice. The Company’s obligations to its suppliers, including amounts due and payment terms, are consistent, irrespective of whether a supplier participates in the program. The
Company is not party to the arrangements between the participating suppliers and the financial institution. Under this program, the Company confirms the validity of supplier invoices to the financial institution and remits payments to it based on
the original payment terms, which typically range from 60 to 120 days. The outstanding obligations under this program, included within December 31, 2023 and March 31, 2023, respectively.
in the consolidated balance sheets, totaled $16.1 million and $21.2 million at
Segment reporting disclosures
In November 2023, the FASB issued new disclosure guidance for
reportable segments. The new guidance will require disclosure of significant segment expenses, which are expenses that are (i) significant to the segment, (ii) regularly provided to the chief operating decision maker (“CODM”) and (iii) included in
the reported measure of segment profit or loss. In addition, the new guidance will require companies to disclose the title and position of their CODM and expand interim disclosures to include the majority of the annual segment disclosures. The
definition of and method for determining reportable segments is unchanged. The new disclosure requirements will become effective for the Company’s fiscal 2025 annual financial statements. The Company is currently evaluating potential impacts of the new disclosure requirements, but does not expect the
guidance will have a material impact on its consolidated financial statements.
|
Acquisitions and Dispositions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions [Abstract] | ||||||||||||||||||||||||||||||||||||
Allocation of Purchase Price for Acquisition of Napps |
The Company’s allocation of the purchase price for its acquisition of Napps was as follows:
|
Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue |
The tables below present revenue for each of the Company’s operating segments. Each
segment’s revenue is disaggregated by product group, by geographic location and based upon the timing of revenue recognition.
Beginning in fiscal 2024 and in connection with the Company’s strategic transformation and continued application of 80/20
principles across its businesses, the Company refined its reporting of disaggregated revenue within the Climate Solutions segment to be more consistent with how the segment has aligned its teams around three market-based verticals: i) heat transfer
products; ii) HVAC & refrigeration; and iii) data center cooling. For the refined fiscal 2024 presentation, the Company reports revenue based upon the respective product lines and related customer relationships managed by each market-based
vertical team. The disaggregated revenue information presented in the tables below for fiscal 2023 has been recast to be comparable with the fiscal 2024 presentation.
|
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Contract Assets and Contract Liabilities from Contracts with Customers |
Contract assets and contract liabilities from contracts with customers were as follows:
|
Pensions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Cost |
Pension cost included the following components:
|
Stock-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Stock-Based Compensation Awards |
The weighted-average fair value of stock-based compensation awards granted during the nine months ended December 31, 2023 and 2022 were as follows:
|
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Unrecognized Compensation Expense Related to Non-Vested Stock-Based Compensation Awards |
As of December 31, 2023, unrecognized
compensation expense related to non-vested stock-based compensation awards, which will be recognized as expense over the remaining service periods, was as follows:
|
Restructuring Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Repositioning Expenses |
Restructuring and repositioning expenses were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accrued Severance |
The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows:
|
Other Income and Expense (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expense |
Other income and expense consisted of the following:
|
Earnings Per Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share |
The components of basic and diluted earnings per share were as follows:
|
Cash, Cash Equivalents and Restricted Cash (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash [Abstract] | |||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash |
Cash, cash equivalents and restricted cash consisted of the following:
|
Inventories (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventories [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Inventories consisted of the following:
|
Property, Plant and Equipment (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
Property, plant and equipment, including depreciable lives, consisted of the following:
|
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill |
The following table presents a roll forward
of the carrying value of goodwill from March 31, 2023 to December 31, 2023.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets |
Intangible assets consisted of the following:
|
Product Warranties (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accrued Warranty Costs |
Changes in accrued warranty costs were as follows:
|
Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases Recorded on Consolidated Balance Sheets |
The following table provides a summary of leases recorded on the consolidated balance
sheets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense |
The components of lease expense were as follows:
|
Indebtedness (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
Long-term debt consisted of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Long-Term Debt |
Long-term debt, including the current portion of long-term debt, matures as
follows:
|
Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss |
Changes in accumulated other comprehensive loss were as follows:
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales, Gross Profit, Operating Income and Assets by Segment |
The following is a summary of net sales, gross profit and operating income by segment:
The following is a summary of segment assets, comprised entirely of trade
accounts receivable and inventories, and other assets:
|
General (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Mar. 31, 2023 |
|
Supplier Finance Program [Abstract] | ||
Notice period to terminate supplier finance program | 90 days | |
Outstanding obligation under supplier finance program | $ 16.1 | $ 21.2 |
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Minimum [Member] | ||
Supplier Finance Program [Abstract] | ||
Payment period for supplier finance program | 60 days | |
Maximum [Member] | ||
Supplier Finance Program [Abstract] | ||
Payment period for supplier finance program | 120 days |
Acquisitions and Dispositions, Acquisition of Napps Technology Corporation (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2022 |
Mar. 31, 2023 |
|
Acquisition of Napps Technology Corporation [Abstract] | |||||
Payment for business acquisition | $ 4.8 | $ 0.0 | |||
Allocation of Purchase Price [Abstract] | |||||
Goodwill | 166.7 | $ 165.6 | |||
Napps [Member] | |||||
Acquisition of Napps Technology Corporation [Abstract] | |||||
Payment for business acquisition | $ 4.8 | ||||
Remaining payable for business acquisition | $ 1.0 | ||||
Historical annual sales | $ 5.0 | ||||
Weighted-average life of acquired intangible assets | 10 years | ||||
Goodwill deductible for income tax purposes | $ 1.0 | ||||
Allocation of Purchase Price [Abstract] | |||||
Trade accounts receivable | 1.2 | ||||
Inventories | 1.3 | ||||
Property, plant and equipment and other assets | 0.1 | ||||
Intangible assets | 2.9 | ||||
Goodwill | 1.0 | ||||
Accounts payable and other liabilities | (0.7) | ||||
Purchase price | $ 5.8 |
Acquisitions and Dispositions, Disposition of Two Coatings Facilities (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 19, 2023
Facility
|
Sep. 30, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
|
Disposition of Two Coatings Facilities [Abstract] | |||
Number of coatings facilities sold | Facility | 2 | ||
Two Coatings Facilities [Member] | |||
Disposition of Two Coatings Facilities [Abstract] | |||
Net sales of disposed businesses | $ 6.4 | ||
Goodwill attributable to disposed businesses written off | $ 0.7 | ||
Two Coatings Facilities [Member] | Maximum [Member] | |||
Disposition of Two Coatings Facilities [Abstract] | |||
Gain on sale of disposed businesses | $ 0.1 |
Acquisitions and Dispositions, Germany Automotive Businesses Held for Sale (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 31, 2023
USD ($)
Business
|
Dec. 31, 2023
USD ($)
Business
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Disposition of Germany Automotive Businesses [Abstract] | |||||
Number of automotive businesses sold | Business | 3 | 3 | |||
Gain on sale of assets | $ 4.0 | $ 0.0 | $ 4.0 | $ 0.0 | |
Three Germany Automotive Businesses [Member] | |||||
Disposition of Germany Automotive Businesses [Abstract] | |||||
Gain on sale of assets | $ 4.0 | 4.0 | |||
Write-off of net actuarial gains | 0.6 | ||||
Net sales of disposal group | $ 54.2 | $ 54.8 | |||
Three Germany Automotive Businesses [Member] | Maximum [Member] | |||||
Disposition of Germany Automotive Businesses [Abstract] | |||||
Net transaction price for sale of disposal group | $ 1.0 |
Pensions (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|||
Net Periodic Benefit Cost [Abstract] | ||||||
Net periodic benefit cost | [1] | $ 0.8 | $ 0.4 | $ 2.5 | $ 1.4 | |
Pension [Member] | ||||||
Net Periodic Benefit Cost [Abstract] | ||||||
Service cost | 0.0 | 0.1 | 0.1 | 0.2 | ||
Interest cost | 2.3 | 2.0 | 7.1 | 6.0 | ||
Expected return on plan assets | (2.5) | (2.9) | (7.7) | (8.7) | ||
Amortization of unrecognized net loss | 1.1 | 1.4 | 3.4 | 4.3 | ||
Net periodic benefit cost | 0.9 | $ 0.6 | 2.9 | $ 1.8 | ||
Pension [Member] | U.S Plans [Member] | ||||||
Employer Contributions [Abstract] | ||||||
Cash contributions by employer | 0.0 | |||||
Expected contribution in fourth quarter of fiscal 2024 | $ 0.9 | $ 0.9 | ||||
|
Restructuring Activities (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Oct. 31, 2023
Business
|
Dec. 31, 2023
USD ($)
Business
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|||
Restructuring and Repositioning Expenses [Abstract] | |||||||
Employee severance and related benefits | $ 0.7 | $ 0.0 | $ 0.8 | $ 1.4 | |||
Other restructuring and repositioning expenses | 0.9 | 0.1 | 1.3 | 0.8 | |||
Total | 1.6 | 0.1 | 2.1 | 2.2 | |||
Changes in Accrued Severance [Roll Forward] | |||||||
Beginning balance | 3.2 | 12.9 | 10.6 | 20.2 | |||
Additions | 0.7 | 0.0 | 0.8 | 1.4 | |||
Payments | (1.0) | (1.9) | (5.9) | (8.6) | |||
Disposition of businesses | [1] | (2.5) | 0.0 | ||||
Effect of exchange rate changes | 0.1 | 1.2 | 0.0 | (0.8) | |||
Ending balance | $ 3.0 | $ 12.2 | $ 3.0 | $ 12.2 | |||
Number of automotive businesses sold | Business | 3 | 3 | |||||
|
Other Income and Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|||||
Other Income and Expense [Abstract] | ||||||||
Interest income | $ 1.4 | $ 0.3 | $ 3.1 | $ 0.7 | ||||
Foreign currency transactions | [1] | (1.1) | (0.3) | (1.6) | (3.4) | |||
Net periodic benefit cost | [2] | (0.8) | (0.4) | (2.5) | (1.4) | |||
Total expense - net | $ (0.5) | $ (0.4) | $ (1.0) | $ (4.1) | ||||
|
Income Taxes (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Oct. 31, 2023
Business
|
Dec. 31, 2023
USD ($)
Business
|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022 |
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022 |
|
Income Taxes [Abstract] | ||||||
Effective income tax rate | 18.60% | 25.60% | 21.60% | 23.80% | ||
Income tax benefit related to sale of automotive businesses | $ (3.1) | |||||
Income tax benefit related to release of unrecognized tax benefit due to lapse in statute of limitations | $ (1.8) | |||||
Income Taxes [Abstract] | ||||||
Number of automotive businesses sold | Business | 3 | 3 | ||||
U.S. [Member] | ||||||
Income Taxes [Abstract] | ||||||
Valuation allowance | $ 38.4 | $ 38.4 | ||||
Foreign Jurisdictions [Member] | ||||||
Income Taxes [Abstract] | ||||||
Valuation allowance | $ 16.3 | $ 16.3 |
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|---|
Cash, Cash Equivalents and Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 149.7 | $ 67.1 | ||
Restricted cash | 1.5 | 0.1 | ||
Total cash, cash equivalents and restricted cash | $ 151.2 | $ 67.2 | $ 82.4 | $ 45.4 |
Inventories (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Mar. 31, 2023 |
---|---|---|
Inventories [Abstract] | ||
Raw materials | $ 207.7 | $ 218.3 |
Work in process | 55.4 | 49.9 |
Finished goods | 78.2 | 56.7 |
Total inventories | $ 341.3 | $ 324.9 |
Product Warranties (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Oct. 31, 2023
Business
|
Dec. 31, 2023
USD ($)
Business
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|||
Accrued Warranty Costs [Roll Forward] | |||||||
Beginning balance | $ 10.3 | $ 6.2 | $ 6.9 | $ 6.3 | |||
Warranties recorded at time of sale | 1.6 | 0.9 | 4.7 | 4.2 | |||
Adjustments to pre-existing warranties | (0.4) | (0.3) | 2.7 | (0.8) | |||
Settlements | (1.4) | (1.4) | (3.9) | (3.8) | |||
Disposition of businesses | [1] | (0.2) | 0.0 | ||||
Effect of exchange rate changes | 0.3 | 0.3 | 0.2 | (0.2) | |||
Ending balance | $ 10.4 | $ 5.7 | $ 10.4 | $ 5.7 | |||
Number of automotive businesses sold | Business | 3 | 3 | |||||
|
Leases (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2023 |
|||||
Lease Assets and Liabilities [Abstract] | |||||||||
Operating lease ROU assets | $ 71.6 | $ 71.6 | $ 59.1 | ||||||
Operating lease ROU assets, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets | Other noncurrent assets | ||||||
Finance lease ROU assets | [1] | $ 6.8 | $ 6.8 | $ 7.1 | |||||
Finance lease ROU assets, Statement of Financial Position [Extensible List] | Property, plant and equipment - net | Property, plant and equipment - net | Property, plant and equipment - net | ||||||
Operating lease liabilities, current | $ 13.0 | $ 13.0 | $ 11.8 | ||||||
Operating lease liabilities, current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | Other current liabilities | ||||||
Operating lease liabilities, noncurrent | $ 59.8 | $ 59.8 | $ 48.9 | ||||||
Operating lease liabilities, noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | Other noncurrent liabilities | Other noncurrent liabilities | ||||||
Finance lease liabilities, current | $ 0.4 | $ 0.4 | $ 0.4 | ||||||
Finance lease liabilities, current, Statement of Financial Position [Extensible List] | Long-term debt - current portion | Long-term debt - current portion | Long-term debt - current portion | ||||||
Finance lease liabilities, noncurrent | $ 2.0 | $ 2.0 | $ 2.3 | ||||||
Finance lease liabilities, noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt | Long-term debt | ||||||
Accumulated amortization | $ 3.6 | $ 3.6 | $ 3.2 | ||||||
Components of Lease Expense [Abstract] | |||||||||
Operating lease expense | [2] | 6.1 | $ 5.2 | 17.6 | $ 16.0 | ||||
Depreciation of ROU assets | 0.1 | 0.1 | 0.4 | 0.4 | |||||
Interest on lease liabilities | 0.0 | 0.0 | 0.1 | 0.1 | |||||
Total lease expense | 6.2 | 5.3 | 18.1 | 16.5 | |||||
Short-term lease expense | $ 1.4 | $ 1.4 | $ 4.3 | $ 4.2 | |||||
|
Indebtedness (Details) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
|||
Long-Term Debt [Abstract] | ||||
Long-term debt | $ 335.6 | $ 351.7 | ||
Less: current portion | (19.7) | (19.7) | ||
Less: unamortized debt issuance costs | (2.4) | (2.7) | ||
Total long-term debt | 313.5 | 329.3 | ||
Maturities of Long-Term Debt [Abstract] | ||||
Remainder of 2024 | 2.8 | |||
2025 | 19.7 | |||
2026 | 44.8 | |||
2027 | 44.8 | |||
2028 | 198.0 | |||
2029 & beyond | 25.5 | |||
Long-term debt | 335.6 | 351.7 | ||
Indebtedness [Abstract] | ||||
Short-term debt | $ 0.0 | 3.7 | ||
Maximum [Member] | ||||
Indebtedness [Abstract] | ||||
Leverage ratio | 3.25 | |||
Minimum [Member] | ||||
Indebtedness [Abstract] | ||||
Interest coverage ratio | 3 | |||
Level 2 [Member] | ||||
Indebtedness [Abstract] | ||||
Fair value of long-term debt | $ 119.0 | 125.9 | ||
Credit Agreement [Member] | ||||
Indebtedness [Abstract] | ||||
Letters of credit outstanding | 5.6 | |||
Term Loans [Member] | ||||
Long-Term Debt [Abstract] | ||||
Long-term debt | $ 208.2 | 215.7 | ||
Fiscal year of maturity | 2028 | |||
Maturities of Long-Term Debt [Abstract] | ||||
Long-term debt | $ 208.2 | 215.7 | ||
Indebtedness [Abstract] | ||||
Weighted-average interest rate for variable rate borrowings | 6.50% | |||
Revolving Credit Facility [Member] | ||||
Long-Term Debt [Abstract] | ||||
Long-term debt | $ 0.0 | 0.0 | ||
Maturities of Long-Term Debt [Abstract] | ||||
Long-term debt | 0.0 | 0.0 | ||
Indebtedness [Abstract] | ||||
Maximum borrowing capacity | 275.0 | |||
Available borrowing capacity | 269.4 | |||
Swingline Loans [Member] | ||||
Indebtedness [Abstract] | ||||
Short-term debt | 0.0 | 0.0 | ||
5.9% Senior Notes [Member] | ||||
Long-Term Debt [Abstract] | ||||
Long-term debt | $ 100.0 | 100.0 | ||
Interest rate percentage | 5.90% | |||
Fiscal year of maturity | 2029 | |||
Maturities of Long-Term Debt [Abstract] | ||||
Long-term debt | $ 100.0 | 100.0 | ||
5.8% Senior Notes [Member] | ||||
Long-Term Debt [Abstract] | ||||
Long-term debt | $ 25.0 | 33.3 | ||
Interest rate percentage | 5.80% | |||
Fiscal year of maturity | 2027 | |||
Maturities of Long-Term Debt [Abstract] | ||||
Long-term debt | $ 25.0 | 33.3 | ||
Other [Member] | ||||
Long-Term Debt [Abstract] | ||||
Long-term debt | [1] | 2.4 | 2.7 | |
Maturities of Long-Term Debt [Abstract] | ||||
Long-term debt | [1] | 2.4 | 2.7 | |
Foreign Credit Agreements [Member] | ||||
Indebtedness [Abstract] | ||||
Short-term debt | $ 0.0 | $ 3.7 | ||
|
Risks, Uncertainties, Contingencies and Litigation (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Mar. 31, 2023 |
|
Environmental loss contingencies [Abstract] | ||
Reserves for environmental matters | $ 18.3 | $ 17.6 |
Increase in remediation accrual related to former manufacturing facility | $ 1.0 |
Accumulated Other Comprehensive Loss (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2023
Business
|
Dec. 31, 2023
USD ($)
Business
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | |||||||||||
Beginning balance | $ 592.8 | ||||||||||
Other comprehensive income (loss) before reclassifications | $ 19.9 | $ 23.8 | 6.2 | $ (24.3) | |||||||
Income taxes | (0.5) | (0.2) | (0.7) | (0.2) | |||||||
Total other comprehensive income (loss) | 19.9 | 25.3 | 7.3 | (20.5) | |||||||
Ending balance | $ 727.4 | 727.4 | |||||||||
Number of automotive businesses sold | Business | 3 | 3 | |||||||||
Accumulated Other Comprehensive Loss [Member] | |||||||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | |||||||||||
Beginning balance | $ (173.7) | (195.3) | (161.1) | (149.5) | |||||||
Ending balance | (153.8) | (170.0) | (153.8) | (170.0) | |||||||
Foreign Currency Translation [Member] | |||||||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | |||||||||||
Beginning balance | (70.8) | (86.0) | (57.5) | (39.1) | |||||||
Other comprehensive income (loss) before reclassifications | 19.3 | 22.5 | 6.0 | (24.4) | |||||||
Income taxes | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Total other comprehensive income (loss) | 19.3 | 22.5 | 6.0 | (24.4) | |||||||
Ending balance | (51.5) | (63.5) | (51.5) | (63.5) | |||||||
Defined Benefit Plans [Member] | |||||||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | |||||||||||
Beginning balance | (102.8) | (108.4) | (104.4) | (111.1) | |||||||
Other comprehensive income (loss) before reclassifications | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Reclassification from accumulated other comprehensive income (loss) | [1] | 1.0 | 1.3 | 3.1 | 4.0 | ||||||
Unrecognized net pension gain in disposed businesses | [2] | (0.6) | (0.6) | ||||||||
Income taxes | (0.3) | 0.0 | (0.8) | 0.0 | |||||||
Total other comprehensive income (loss) | 0.1 | 1.3 | 1.7 | 4.0 | |||||||
Ending balance | (102.7) | (107.1) | (102.7) | (107.1) | |||||||
Cash Flow Hedges [Member] | |||||||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | |||||||||||
Beginning balance | (0.1) | (0.9) | 0.8 | 0.7 | |||||||
Other comprehensive income (loss) before reclassifications | 0.6 | 1.3 | 0.2 | 0.1 | |||||||
Reclassification from accumulated other comprehensive income (loss) | [3] | 0.1 | 0.4 | (0.7) | 0.0 | ||||||
Income taxes | (0.2) | (0.2) | 0.1 | (0.2) | |||||||
Total other comprehensive income (loss) | 0.5 | 1.5 | (0.4) | (0.1) | |||||||
Ending balance | $ 0.4 | $ 0.6 | $ 0.4 | $ 0.6 | |||||||
|
Segment Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2023 |
|||
Segment Information [Abstract] | |||||||
Net sales | $ 561.4 | $ 560.0 | $ 1,804.3 | $ 1,679.8 | |||
Gross profit | $ 127.3 | $ 97.6 | $ 390.3 | $ 277.2 | |||
Gross profit (% of sales) | 22.70% | 17.40% | 21.60% | 16.50% | |||
Operating income | $ 61.7 | $ 39.5 | $ 193.9 | $ 101.9 | |||
Total assets | 1,651.4 | 1,651.4 | $ 1,565.9 | ||||
Climate Solutions [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 242.5 | 248.6 | 790.1 | 748.6 | |||
Performance Technologies [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 318.9 | 311.4 | 1,014.2 | 931.2 | |||
Other [Member] | |||||||
Segment Information [Abstract] | |||||||
Total assets | [1] | 945.7 | 945.7 | 843.0 | |||
Operating Segments [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 565.5 | 566.4 | 1,823.7 | 1,701.0 | |||
Gross profit | $ 127.1 | $ 97.8 | $ 389.3 | $ 277.7 | |||
Gross profit (% of sales) | 22.50% | 17.30% | 21.30% | 16.30% | |||
Operating income | $ 70.0 | $ 47.6 | $ 224.5 | $ 131.0 | |||
Operating Segments [Member] | Segment Total [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 565.5 | 566.4 | 1,823.7 | 1,701.0 | |||
Operating Segments [Member] | Climate Solutions [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 242.5 | 248.6 | 790.1 | 748.9 | |||
Gross profit | $ 66.1 | $ 54.8 | $ 206.9 | $ 162.5 | |||
Gross profit (% of sales) | 27.30% | 22.00% | 26.20% | 21.70% | |||
Operating income | $ 38.8 | $ 30.2 | $ 127.7 | $ 89.9 | |||
Total assets | 348.0 | 348.0 | 334.8 | ||||
Operating Segments [Member] | Performance Technologies [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 323.0 | 317.8 | 1,033.6 | 952.1 | |||
Gross profit | $ 61.0 | $ 43.0 | $ 182.4 | $ 115.2 | |||
Gross profit (% of sales) | 18.90% | 13.50% | 17.60% | 12.10% | |||
Operating income | $ 31.2 | $ 17.4 | $ 96.8 | $ 41.1 | |||
Total assets | 357.7 | 357.7 | $ 388.1 | ||||
Inter-segment Sales [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 4.1 | 6.4 | 19.4 | 21.2 | |||
Inter-segment Sales [Member] | Climate Solutions [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 0.0 | 0.0 | 0.0 | 0.3 | |||
Inter-segment Sales [Member] | Performance Technologies [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | 4.1 | 6.4 | 19.4 | 20.9 | |||
Corporate and Eliminations [Member] | |||||||
Segment Information [Abstract] | |||||||
Net sales | (4.1) | (6.4) | (19.4) | (21.2) | |||
Gross profit | $ 0.2 | $ (0.2) | $ 1.0 | $ (0.5) | |||
Gross profit (% of sales) | 0.00% | 0.00% | 0.00% | 0.00% | |||
Operating income | $ (8.3) | $ (8.1) | $ (30.6) | $ (29.1) | |||
|
Subsequent Events (Details) $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Oct. 31, 2023
Business
|
Jan. 31, 2024
USD ($)
|
Dec. 31, 2023
Business
|
|
Technical Service Center Restructuring [Abstract] | |||
Number of automotive businesses sold | Business | 3 | 3 | |
Forecast [Member] | Minimum [Member] | |||
Technical Service Center Restructuring [Abstract] | |||
Closure costs | $ 8.0 | ||
Forecast [Member] | Maximum [Member] | |||
Technical Service Center Restructuring [Abstract] | |||
Closure costs | 12.0 | ||
Subsequent Event [Member] | TMGcore, Inc. [Member] | |||
Purchase of Intellectual Property Asset [Abstract] | |||
Purchase price of assets | $ 12.0 |
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