☑ | ANNUAL 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 |
39-0482000 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1500 DeKoven Avenue, Racine, Wisconsin | 53403 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.625 par value | MOD | New York Stock Exchange |
Large Accelerated Filer | Accelerated Filer |
Non-accelerated Filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
Incorporated Document | Location in Form 10-K |
Proxy Statement for the Meeting of Shareholders | Part III of Form 10-K (Items 10, 11, 12, 13, 14) |
PART I | |||
ITEM 1. | 1 | ||
ITEM 1A. | |||
11 | |||
ITEM 1B. | |||
18 | |||
ITEM 2. | |||
19 | |||
ITEM 3. | |||
19 | |||
ITEM 4. | |||
19 | |||
PART II | |||
ITEM | |||
21 | |||
ITEM 7. | |||
22 | |||
ITEM 7A. | |||
40 | |||
ITEM 8. | |||
44 | |||
ITEM 9. | |||
87 | |||
ITEM 9A. | |||
87 | |||
ITEM 9B. | |||
PART III | |||
ITEM 10. | |||
88 | |||
ITEM 11. | |||
88 | |||
ITEM 12. | |||
89 | |||
ITEM 13. | |||
89 | |||
ITEM 14. | |||
PART IV | |||
ITEM 15. | 90 | ||
ITEM 16. | |||
Construction architects and contractors; |
- | Wholesalers of heating equipment; |
- | Agricultural, industrial and construction equipment OEMs; |
Commercial and industrial equipment OEMs; |
Fiscal 2019 | Fiscal 2018 | Fiscal 2021 | Fiscal 2020 | |||||||||||||
Commercial HVAC&R | 30 | % | 31 | % | 33 | % | 32 | % | ||||||||
Automotive | 25 | % | 25 | % | 25 | % | 26 | % | ||||||||
Commercial vehicle | 18 | % | 18 | % | 15 | % | 16 | % | ||||||||
Off-highway | 14 | % | 13 | % | 15 | % | 13 | % | ||||||||
Data center cooling | 8 | % | 7 | % | 6 | % | 8 | % | ||||||||
Industrial cooling | 2 | % | 3 | % | 3 | % | 2 | % | ||||||||
Other | 3 | % | 3 | % | 3 | % | 3 | % |
North America | South America | Europe | Asia/Pacific | Middle East/Africa |
United States Mexico | Brazil | Belgium Germany Hungary Italy Netherlands Serbia Spain Sweden United Kingdom | China India South Korea | United Arab Emirates |
Code of Conduct, which is applicable to all Modine directors and employees, including the principal executive officer, the principal financial officer, and the principal accounting officer; |
Corporate Governance Guidelines; |
Audit Committee Charter; |
Corporate Governance and Nominating Committee Charter; and |
Technology Committee Charter. |
A. | MARKET RISKS |
B. | OPERATIONAL RISKS |
C. | STRATEGIC RISKS |
D. | FINANCIAL RISKS |
E. | GENERAL RISKS |
Americas | Europe | Asia | Total | |||||||||||||
BHVAC | 2 | 3 | - | 5 | ||||||||||||
CIS | 9 | 7 | 1 | 17 | ||||||||||||
HDE | 6 | 2 | 4 | 12 | ||||||||||||
Automotive | 1 | 6 | 2 | 9 | ||||||||||||
Total manufacturing facilities | 18 | 18 | 7 | 43 |
Name | Age | Position | |||
Brian J. Agen | Vice President, Human Resources (October 2012 – Present). | ||||
Neil D. Brinker | 45 | President and Chief Executive Officer (December 2020 – Present). Prior to joining Modine, Mr. Brinker served as President and Chief Operating Officer of Advanced Energy Industries, Inc. after serving as its Executive Vice President and Chief Operating Officer. Prior to joining Advanced Energy Industries, Inc, Mr. Brinker served as a Group President at IDEX Corporation. | |||
Vice President, Heavy Duty Equipment (April 2020 – Present); previously Vice President, Vehicular Thermal Solutions and Director – Global Program Management and Quality for the Company. | |||||
Michael B. Lucareli | 52 | Executive Vice President, Chief Financial Officer (May 2021 – Present); previously Vice President, Finance and Chief Financial Officer for the Company. | |||
Matthew J. McBurney | 51 | Vice President, Building HVAC (February 2021 – Present); previously Vice President, Building HVAC and Corporate Strategy, Vice President, Strategic Planning and Development; and Vice President, Commercial and Industrial Solutions Integration for the Company. | |||
Scott A. Miller | 56 | Vice President, Commercial and Industrial Solutions | |||
54 | Vice President, General Counsel, Secretary and Chief | ||||
Vice President, General Counsel and Corporate Secretary | |||||
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) |
January 1 – January 31, 2021 | _______ | _______ | _______ | $50,000,000 |
February 1 – February 28, 2021 | 8,816 (b) | $14.52 | _______ | $50,000,000 |
March 1 – March 31, 2021 | 7,088 (b) | $15.25 | _______ | $50,000,000 |
Total | 15,904 (b) | $14.85 | _______ |
(a) | Effective November 5, 2020, the Board of Directors approved a two-year, $50.0 million share repurchase program, which allows the Company to repurchase Modine common stock through solicited and unsolicited transactions in the open market or in privately-negotiated or other transactions, at such times and prices and upon such other terms as the authorized officers of the Company deem appropriate. |
(b) | Consists of 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. |
Indexed Returns | Indexed Returns | |||||||||||||||||||||||||||||||||||||||||||||||
Initial Investment | Years ended March 31, | Initial Investment | Years ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||
Company / Index | March 31, 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | March 31, 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||||||||
Modine Manufacturing Company | $ | 100 | $ | 91.95 | $ | 75.15 | $ | 83.28 | $ | 144.37 | $ | 94.68 | $ | 100 | $ | 110.81 | $ | 192.10 | $ | 125.98 | $ | 29.52 | $ | 134.15 | ||||||||||||||||||||||||
Russell 2000 Index | 100 | 108.21 | 97.65 | 123.25 | 137.79 | 140.61 | 100 | 126.22 | 141.10 | 143.99 | 109.45 | 213.26 | ||||||||||||||||||||||||||||||||||||
S&P MidCap 400 Industrials Index | 100 | 106.62 | 103.89 | 129.45 | 150.75 | 152.62 | 100 | 124.60 | 145.10 | 146.90 | 119.46 | 224.07 |
Years ended March 31, | ||||||||||||||||||||
(in millions, except per share amounts) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
Net sales | $ | 2,213 | $ | 2,103 | $ | 1,503 | $ | 1,353 | $ | 1,496 | ||||||||||
Operating income | 110 | 92 | 42 | 37 | 54 | |||||||||||||||
Net earnings (loss) | 86 | 24 | 15 | (1 | ) | 23 | ||||||||||||||
Total assets | 1,538 | 1,573 | 1,450 | 921 | 931 | |||||||||||||||
Long-term debt - excluding current portion | 335 | 386 | 406 | 126 | 130 | |||||||||||||||
Net cash provided by operating activities | 103 | 124 | 42 | 72 | 64 | |||||||||||||||
Expenditures for property, plant and equipment | 74 | 71 | 64 | 63 | 58 | |||||||||||||||
Net earnings (loss) per share attributable to Modine shareholders: | ||||||||||||||||||||
Basic | $ | 1.67 | $ | 0.44 | $ | 0.29 | $ | (0.03 | ) | $ | 0.46 | |||||||||
Diluted | 1.65 | 0.43 | 0.29 | (0.03 | ) | 0.45 |
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | $’s | % of sales | $’s | % of sales | $’s | % of sales | _$’s | % of sales | _$’s | % of sales | _$’s | % of sales | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 2,213 | 100.0 | % | $ | 2,103 | 100.0 | % | $ | 1,503 | 100.0 | % | $ | 1,808 | 100.0 | % | $ | 1,976 | 100.0 | % | $ | 2,213 | 100.0 | % | ||||||||||||||||||||||||
Cost of sales | 1,847 | 83.5 | % | 1,747 | 83.0 | % | 1,249 | 83.1 | % | 1,515 | 83.8 | % | 1,668 | 84.4 | % | 1,847 | 83.5 | % | ||||||||||||||||||||||||||||||
Gross profit | 366 | 16.5 | % | 357 | 17.0 | % | 254 | 16.9 | % | 293 | 16.2 | % | 308 | 15.6 | % | 366 | 16.5 | % | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 244 | 11.0 | % | 246 | 11.7 | % | 203 | 13.5 | % | 211 | 11.7 | % | 250 | 12.6 | % | 244 | 11.0 | % | ||||||||||||||||||||||||||||||
Restructuring expenses | 10 | 0.4 | % | 16 | 0.8 | % | 11 | 0.7 | % | 13 | 0.7 | % | 12 | 0.6 | % | 10 | 0.4 | % | ||||||||||||||||||||||||||||||
Impairment charges | - | - | 3 | 0.1 | % | - | - | 167 | 9.2 | % | 9 | 0.4 | % | - | - | |||||||||||||||||||||||||||||||||
Loss (gain) on sale of assets | 2 | 0.1 | % | - | - | (2 | ) | -0.1 | % | |||||||||||||||||||||||||||||||||||||||
Operating income | 110 | 5.0 | % | 92 | 4.4 | % | 42 | 2.8 | % | |||||||||||||||||||||||||||||||||||||||
(Gain) loss on sale of assets | - | - | (1 | ) | - | 2 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||
Operating (loss) income | (98 | ) | -5.4 | % | 38 | 1.9 | % | 110 | 5.0 | % | ||||||||||||||||||||||||||||||||||||||
Interest expense | (25 | ) | -1.1 | % | (26 | ) | -1.2 | % | (17 | ) | -1.1 | % | (19 | ) | -1.1 | % | (23 | ) | -1.1 | % | (25 | ) | -1.1 | % | ||||||||||||||||||||||||
Other expense - net | (4 | ) | -0.2 | % | (3 | ) | -0.2 | % | (4 | ) | -0.3 | % | (2 | ) | -0.1 | % | (5 | ) | -0.2 | % | (4 | ) | -0.2 | % | ||||||||||||||||||||||||
Earnings before income taxes | 81 | 3.7 | % | 63 | 3.0 | % | 21 | 1.4 | % | |||||||||||||||||||||||||||||||||||||||
Benefit (provision) for income taxes | 5 | 0.2 | % | (40 | ) | -1.9 | % | (6 | ) | -0.4 | % | |||||||||||||||||||||||||||||||||||||
Net earnings | $ | 86 | 3.9 | % | $ | 24 | 1.1 | % | $ | 15 | 1.0 | % | ||||||||||||||||||||||||||||||||||||
(Loss) earnings before income taxes | (119 | ) | -6.6 | % | 10 | 0.5 | % | 81 | 3.7 | % | ||||||||||||||||||||||||||||||||||||||
(Provision) benefit for income taxes | (90 | ) | -5.0 | % | (12 | ) | -0.6 | % | 5 | 0.2 | % | |||||||||||||||||||||||||||||||||||||
Net (loss) earnings | $ | (209 | ) | -11.6 | % | $ | (2 | ) | -0.1 | % | $ | 86 | 3.9 | % |
VTS | ||||||||||||||||||||||||||||||||||||||||||||||||
BHVAC | ||||||||||||||||||||||||||||||||||||||||||||||||
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | $’s | % of sales | $’s | % of sales | $’s | % of sales | _$’s | % of sales | _$’s | % of sales | _$’s | % of sales | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,352 | 100.0 | % | $ | 1,296 | 100.0 | % | $ | 1,152 | 100.0 | % | $ | 241 | 100.0 | % | $ | 221 | 100.0 | % | $ | 212 | 100.0 | % | ||||||||||||||||||||||||
Cost of sales | 1,165 | 86.2 | % | 1,095 | 84.5 | % | 970 | 84.2 | % | 158 | 65.5 | % | 150 | 67.7 | % | 149 | 70.1 | % | ||||||||||||||||||||||||||||||
Gross profit | 187 | 13.8 | % | 201 | 15.5 | % | 182 | 15.8 | % | 83 | 34.5 | % | 72 | 32.3 | % | 63 | 29.9 | % | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 113 | 8.3 | % | 110 | 8.4 | % | 106 | 9.2 | % | 36 | 14.9 | % | 35 | 15.8 | % | 35 | 16.4 | % | ||||||||||||||||||||||||||||||
Restructuring expenses | 9 | 0.7 | % | 7 | 0.6 | % | 10 | 0.9 | % | |||||||||||||||||||||||||||||||||||||||
Gain on sale of assets | - | - | - | - | (2 | ) | -0.2 | % | ||||||||||||||||||||||||||||||||||||||||
Loss on sale of assets | - | - | - | - | 2 | 0.8 | % | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 65 | 4.8 | % | $ | 84 | 6.5 | % | $ | 68 | 5.9 | % | $ | 47 | 19.6 | % | $ | 36 | 16.5 | % | $ | 27 | 12.6 | % |
CIS | ||||||||||||||||||||||||
Years ended March 31, | ||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
(in millions) | $’s | % of sales | $’s | % of sales | $’s | % of sales | ||||||||||||||||||
Net sales | $ | 708 | 100.0 | % | $ | 676 | 100.0 | % | $ | 232 | 100.0 | % | ||||||||||||
Cost of sales | 593 | 83.8 | % | 578 | 85.5 | % | 200 | 86.1 | % | |||||||||||||||
Gross profit | 115 | 16.2 | % | 98 | 14.5 | % | 32 | 13.9 | % | |||||||||||||||
Selling, general and administrative expenses | 61 | 8.6 | % | 60 | 8.8 | % | 21 | 9.2 | % | |||||||||||||||
Restructuring expenses | - | - | 8 | 1.2 | % | - | - | |||||||||||||||||
Impairment charges | - | 0.1 | % | 1 | 0.2 | % | - | - | ||||||||||||||||
Operating income | $ | 53 | 7.5 | % | $ | 29 | 4.2 | % | $ | 11 | 4.7 | % |
BHVAC | ||||||||||||||||||||||||
Years ended March 31, | ||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
(in millions) | $’s | % of sales | $’s | % of sales | $’s | % of sales | ||||||||||||||||||
Net sales | $ | 212 | 100.0 | % | $ | 191 | 100.0 | % | $ | 172 | 100.0 | % | ||||||||||||
Cost of sales | 149 | 70.1 | % | 133 | 69.7 | % | 124 | 72.2 | % | |||||||||||||||
Gross profit | 63 | 29.9 | % | 58 | 30.3 | % | 48 | 27.8 | % | |||||||||||||||
Selling, general and administrative expenses | 35 | 16.4 | % | 36 | 18.8 | % | 34 | 19.7 | % | |||||||||||||||
Restructuring expenses | - | - | - | 0.2 | % | 1 | 0.4 | % | ||||||||||||||||
Impairment charge | - | - | 1 | 0.7 | % | - | - | |||||||||||||||||
Loss on sale of assets | 2 | 0.8 | % | - | - | - | - | |||||||||||||||||
Operating income | $ | 27 | 12.6 | % | $ | 20 | 10.6 | % | $ | 13 | 7.7 | % |
CIS | ||||||||||||||||||||||||
Years ended March 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
(in millions) | _$’s | % of sales | _$’s | % of sales | _$’s | % of sales | ||||||||||||||||||
Net sales | $ | 532 | 100.0 | % | $ | 624 | 100.0 | % | $ | 708 | 100.0 | % | ||||||||||||
Cost of sales | 465 | 87.5 | % | 531 | 85.1 | % | 593 | 83.8 | % | |||||||||||||||
Gross profit | 67 | 12.5 | % | 93 | 14.9 | % | 115 | 16.2 | % | |||||||||||||||
Selling, general and administrative expenses | 53 | 10.0 | % | 57 | 9.2 | % | 61 | 8.6 | % | |||||||||||||||
Restructuring expenses | 5 | 1.0 | % | 2 | 0.3 | % | - | - | ||||||||||||||||
Impairment charges | - | - | 1 | 0.1 | % | - | 0.1 | % | ||||||||||||||||
Operating income | $ | 8 | 1.5 | % | $ | 33 | 5.3 | % | $ | 53 | 7.5 | % |
HDE | ||||||||||||||||||||||||
Years ended March 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
(in millions) | _$’s | % of sales | _$’s | % of sales | _$’s | % of sales | ||||||||||||||||||
Net sales | $ | 682 | 100.0 | % | $ | 746 | 100.0 | % | $ | 872 | 100.0 | % | ||||||||||||
Cost of sales | 594 | 87.0 | % | 649 | 87.0 | % | 744 | 85.3 | % | |||||||||||||||
Gross profit | 88 | 13.0 | % | 97 | 13.0 | % | 128 | 14.7 | % | |||||||||||||||
Selling, general and administrative expenses | 49 | 7.1 | % | 56 | 7.4 | % | 62 | 7.1 | % | |||||||||||||||
Restructuring expenses | 3 | 0.4 | % | 3 | 0.4 | % | 1 | 0.1 | % | |||||||||||||||
Operating income | $ | 37 | 5.4 | % | $ | 38 | 5.1 | % | $ | 65 | 7.5 | % |
AUTOMOTIVE | ||||||||||||||||||||||||
Years ended March 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
(in millions) | _$’s | % of sales | _$’s | % of sales | _$’s | % of sales | ||||||||||||||||||
Net sales | $ | 398 | 100.0 | % | $ | 445 | 100.0 | % | $ | 489 | 100.0 | % | ||||||||||||
Cost of sales | 342 | 85.9 | % | 396 | 89.1 | % | 430 | 87.9 | % | |||||||||||||||
Gross profit | 56 | 14.1 | % | 48 | 10.9 | % | 59 | 12.1 | % | |||||||||||||||
Selling, general and administrative expenses | 36 | 9.1 | % | 45 | 10.1 | % | 51 | 10.5 | % | |||||||||||||||
Restructuring expenses | 4 | 1.0 | % | 6 | 1.5 | % | 8 | 1.7 | % | |||||||||||||||
Impairment charges | 167 | 41.9 | % | 8 | 1.8 | % | - | - | ||||||||||||||||
Gain on sale of assets | - | - | (1 | ) | -0.2 | % | - | - | ||||||||||||||||
Operating loss | $ | (151 | ) | -37.9 | % | $ | (10 | ) | -2.3 | % | $ | - | -0.1 | % |
March 31, 2019 | ||||||||||||||||||||
(in millions) | Total | Less than 1 year | 1 - 3 years | 4 - 5 years | More than 5 years | |||||||||||||||
Long-term debt | $ | 377.7 | $ | 48.2 | $ | 287.8 | $ | 16.7 | $ | 25.0 | ||||||||||
Interest associated with long-term debt | 40.9 | 16.0 | 18.3 | 4.1 | 2.5 | |||||||||||||||
Operating lease obligations | 70.4 | 14.2 | 21.5 | 11.8 | 22.9 | |||||||||||||||
Capital expenditure commitments | 23.6 | 23.6 | - | - | - | |||||||||||||||
Other long-term obligations (a) | 13.3 | 1.4 | 2.1 | 2.0 | 7.8 | |||||||||||||||
Total contractual obligations | $ | 525.9 | $ | 103.4 | $ | 329.7 | $ | 34.6 | $ | 58.2 |
• | Our ability to fund our global liquidity requirements efficiently for Modine’s 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; |
• | Cash and investments – We review cash deposits and short-term investments to ensure banks have acceptable credit ratings, and short-term investments are maintained in secured or guaranteed instruments. We consider our holdings in cash and investments to be stable and secure at March 31, 2021; |
• | Trade accounts receivable – Prior to granting credit, we evaluate each customer, taking into consideration the customer’s financial condition, payment experience and credit information. After credit is granted, we actively monitor the customer’s financial condition and applicable business news; |
• | Pension assets – We have retained outside advisors to assist in the management of the assets in our pension plans. In making investment decisions, we utilize an established risk management protocol that focuses on protection of the plan assets against downside risk. We ensure that investments within these plans provide appropriate diversification, the investments are monitored by investment teams, and portfolio managers adhere to the established investment policies. We believe the plan assets are subject to appropriate investment policies and controls; and |
• | Insurance – We monitor our insurance providers to ensure they maintain financial ratings that are acceptable to us. We have not identified any concerns in this regard based upon our reviews. |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. |
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||
Net sales | $ | 2,212.7 | $ | 2,103.1 | $ | 1,503.0 | $ | 1,808.4 | $ | 1,975.5 | $ | 2,212.7 | ||||||||||||
Cost of sales | 1,847.2 | 1,746.6 | 1,248.6 | 1,515.0 | 1,668.0 | 1,847.2 | ||||||||||||||||||
Gross profit | 365.5 | 356.5 | 254.4 | 293.4 | 307.5 | 365.5 | ||||||||||||||||||
Selling, general and administrative expenses | 244.1 | 245.8 | 203.2 | 210.9 | 249.6 | 244.1 | ||||||||||||||||||
Restructuring expenses | 9.6 | 16.0 | 10.9 | 13.4 | 12.2 | 9.6 | ||||||||||||||||||
Impairment charges | 0.4 | 2.5 | - | 166.8 | 8.6 | 0.4 | ||||||||||||||||||
Loss (gain) on sale of assets | 1.7 | - | (2.0 | ) | ||||||||||||||||||||
Operating income | 109.7 | 92.2 | 42.3 | |||||||||||||||||||||
(Gain) loss on sale of assets | 0 | (0.8 | ) | 1.7 | ||||||||||||||||||||
Operating (loss) income | (97.7 | ) | 37.9 | 109.7 | ||||||||||||||||||||
Interest expense | (24.8 | ) | (25.6 | ) | (17.2 | ) | (19.4 | ) | (22.7 | ) | (24.8 | ) | ||||||||||||
Other expense - net | (4.1 | ) | (3.3 | ) | (4.3 | ) | (2.2 | ) | (4.8 | ) | (4.1 | ) | ||||||||||||
Earnings before income taxes | 80.8 | 63.3 | 20.8 | |||||||||||||||||||||
Benefit (provision) for income taxes | 5.1 | (39.5 | ) | (5.9 | ) | |||||||||||||||||||
Net earnings | 85.9 | 23.8 | 14.9 | |||||||||||||||||||||
(Loss) earnings before income taxes | (119.3 | ) | 10.4 | 80.8 | ||||||||||||||||||||
(Provision) benefit for income taxes | (90.2 | ) | (12.4 | ) | 5.1 | |||||||||||||||||||
Net (loss) earnings | (209.5 | ) | (2.0 | ) | 85.9 | |||||||||||||||||||
Net earnings attributable to noncontrolling interest | (1.1 | ) | (1.6 | ) | (0.7 | ) | (1.2 | ) | (0.2 | ) | (1.1 | ) | ||||||||||||
Net earnings attributable to Modine | $ | 84.8 | $ | 22.2 | $ | 14.2 | ||||||||||||||||||
Net (loss) earnings attributable to Modine | $ | (210.7 | ) | $ | (2.2 | ) | $ | 84.8 | ||||||||||||||||
Net earnings per share attributable to Modine shareholders: | ||||||||||||||||||||||||
Net (loss) earnings per share attributable to Modine shareholders: | ||||||||||||||||||||||||
Basic | $ | 1.67 | $ | 0.44 | $ | 0.29 | $ | (4.11 | ) | $ | (0.04 | ) | $ | 1.67 | ||||||||||
Diluted | $ | 1.65 | $ | 0.43 | $ | 0.29 | $ | (4.11 | ) | $ | (0.04 | ) | $ | 1.65 | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||
Basic | 50.5 | 49.9 | 47.8 | 51.3 | 50.8 | 50.5 | ||||||||||||||||||
Diluted | 51.3 | 50.9 | 48.3 | 51.3 | 50.8 | 51.3 |
2019 | 2018 | 2017 | ||||||||||
Net earnings | $ | 85.9 | $ | 23.8 | $ | 14.9 | ||||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation | (37.6 | ) | 41.8 | (10.8 | ) | |||||||
Defined benefit plans, net of income taxes of ($0.3), ($0.2) and $1.7 million | (1.4 | ) | 0.1 | 3.2 | ||||||||
Cash flow hedges, net of income taxes of $0.1, $0.1 and $0 million | 0.4 | 0.1 | - | |||||||||
Total other comprehensive income (loss) | (38.6 | ) | 42.0 | (7.6 | ) | |||||||
Comprehensive income | 47.3 | 65.8 | 7.3 | |||||||||
Comprehensive income attributable to noncontrolling interest | (0.6 | ) | (2.1 | ) | (0.7 | ) | ||||||
Comprehensive income attributable to Modine | $ | 46.7 | $ | 63.7 | $ | 6.6 |
2021 | 2020 | 2019 | ||||||||||
Net (loss) earnings | $ | (209.5 | ) | $ | (2.0 | ) | $ | 85.9 | ||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation | 30.9 | (19.2 | ) | (37.6 | ) | |||||||
Defined benefit plans, net of income taxes of $10.4, ($8.3) and ($0.3) million | 30.1 | (24.6 | ) | (1.4 | ) | |||||||
Cash flow hedges, net of income taxes of $0.6, ($0.5) and $0.1 million | 1.6 | (1.5 | ) | 0.4 | ||||||||
Total other comprehensive income (loss) | 62.6 | (45.3 | ) | (38.6 | ) | |||||||
Comprehensive income (loss) | (146.9 | ) | (47.3 | ) | 47.3 | |||||||
Comprehensive (income) loss attributable to noncontrolling interest | (1.7 | ) | 0.2 | (0.6 | ) | |||||||
Comprehensive income (loss) attributable to Modine | $ | (148.6 | ) | $ | (47.1 | ) | $ | 46.7 |
2019 | 2018 | 2021 | 2020 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 41.7 | $ | 39.3 | $ | 37.8 | $ | 70.9 | ||||||||
Trade accounts receivable – net | 338.6 | 342.4 | 267.9 | 292.5 | ||||||||||||
Inventories | 200.7 | 191.3 | 195.6 | 207.4 | ||||||||||||
Assets held for sale | 107.6 | 0 | ||||||||||||||
Other current assets | 65.8 | 70.1 | 35.9 | 62.5 | ||||||||||||
Total current assets | 646.8 | 643.1 | 644.8 | 633.3 | ||||||||||||
Property, plant and equipment – net | 484.7 | 504.3 | 269.9 | 448.0 | ||||||||||||
Intangible assets – net | 116.2 | 129.9 | 100.6 | 106.3 | ||||||||||||
Goodwill | 168.5 | 173.8 | 170.7 | 166.1 | ||||||||||||
Deferred income taxes | 97.1 | 96.9 | 24.5 | 104.8 | ||||||||||||
Other noncurrent assets | 24.7 | 25.4 | 66.2 | 77.6 | ||||||||||||
Total assets | $ | 1,538.0 | $ | 1,573.4 | $ | 1,276.7 | $ | 1,536.1 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Short-term debt | $ | 66.0 | $ | 53.2 | $ | 1.4 | $ | 14.8 | ||||||||
Long-term debt – current portion | 48.6 | 39.9 | 21.9 | 15.6 | ||||||||||||
Accounts payable | 280.9 | 277.9 | 233.9 | 227.4 | ||||||||||||
Accrued compensation and employee benefits | 81.7 | 97.3 | 66.5 | 65.0 | ||||||||||||
Liabilities held for sale | 103.3 | 0 | ||||||||||||||
Other current liabilities | 39.9 | 47.2 | 42.2 | 49.2 | ||||||||||||
Total current liabilities | 517.1 | 515.5 | 469.2 | 372.0 | ||||||||||||
Long-term debt | 335.1 | 386.3 | 311.2 | 452.0 | ||||||||||||
Deferred income taxes | 8.2 | 9.9 | 5.9 | 8.1 | ||||||||||||
Pensions | 101.7 | 109.6 | 58.6 | 130.9 | ||||||||||||
Other noncurrent liabilities | 34.8 | 53.6 | 75.7 | 79.5 | ||||||||||||
Total liabilities | 996.9 | 1,074.9 | 920.6 | 1,042.5 | ||||||||||||
Commitments and contingencies (see Note 20) | 0 | 0 | ||||||||||||||
Shareholders’ equity: | ||||||||||||||||
Preferred stock, $0.025 par value, authorized 16.0 million shares, issued - none | - | - | ||||||||||||||
Common stock, $0.625 par value, authorized 80.0 million shares, issued 52.8 million and 52.3 million shares | 33.0 | 32.7 | ||||||||||||||
Preferred stock, $0.025 par value, authorized 16.0 million shares, issued - NaN | 0 | 0 | ||||||||||||||
Common stock, $0.625 par value, authorized 80.0 million shares, issued 54.3 million and 53.4 million shares | 33.9 | 33.3 | ||||||||||||||
Additional paid-in capital | 238.6 | 229.9 | 255.0 | 245.1 | ||||||||||||
Retained earnings | 472.1 | 394.9 | 259.2 | 469.9 | ||||||||||||
Accumulated other comprehensive loss | (178.4 | ) | (140.3 | ) | (161.2 | ) | (223.3 | ) | ||||||||
Treasury stock, at cost, 2.1 million and 1.8 million shares | (31.4 | ) | (27.1 | ) | ||||||||||||
Treasury stock, at cost, 2.7 million and 2.5 million shares | (38.2 | ) | (37.1 | ) | ||||||||||||
Total Modine shareholders’ equity | 533.9 | 490.1 | 348.7 | 487.9 | ||||||||||||
Noncontrolling interest | 7.2 | 8.4 | 7.4 | 5.7 | ||||||||||||
Total equity | 541.1 | 498.5 | 356.1 | 493.6 | ||||||||||||
Total liabilities and equity | $ | 1,538.0 | $ | 1,573.4 | $ | 1,276.7 | $ | 1,536.1 |
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net earnings | $ | 85.9 | $ | 23.8 | $ | 14.9 | ||||||||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||||||||||||
Net (loss) earnings | $ | (209.5 | ) | $ | (2.0 | ) | $ | 85.9 | ||||||||||||||||
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 76.9 | 76.7 | 58.3 | 68.6 | 77.1 | 76.9 | ||||||||||||||||||
Loss (gain) on sale of assets | 1.7 | - | (2.0 | ) | ||||||||||||||||||||
Impairment charges | 0.4 | 2.5 | - | 166.8 | 8.6 | 0.4 | ||||||||||||||||||
(Gain) loss on sale of assets | 0 | (0.8 | ) | 1.7 | ||||||||||||||||||||
Stock-based compensation expense | 7.9 | 9.5 | 7.4 | 6.3 | 6.6 | 7.9 | ||||||||||||||||||
Deferred income taxes | (4.4 | ) | 12.1 | (4.6 | ) | 67.9 | 1.0 | (4.4 | ) | |||||||||||||||
Other – net | 5.3 | 9.0 | 3.9 | 6.3 | 5.6 | 5.3 | ||||||||||||||||||
Changes in operating assets and liabilities, excluding acquisition: | ||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Trade accounts receivable | (15.3 | ) | (26.1 | ) | (25.7 | ) | (17.1 | ) | 36.6 | (15.3 | ) | |||||||||||||
Inventories | (22.0 | ) | (12.5 | ) | (3.3 | ) | (5.0 | ) | (12.0 | ) | (22.0 | ) | ||||||||||||
Accounts payable | 16.6 | 25.2 | 19.9 | 44.0 | (37.7 | ) | 16.6 | |||||||||||||||||
Accrued compensation and employee benefits | (10.1 | ) | 16.4 | (6.5 | ) | 15.7 | (15.2 | ) | (10.1 | ) | ||||||||||||||
Other assets | (11.8 | ) | (5.0 | ) | (2.4 | ) | 27.5 | 14.7 | (11.8 | ) | ||||||||||||||
Other liabilities | (27.8 | ) | (7.4 | ) | (18.2 | ) | (21.7 | ) | (24.6 | ) | (27.8 | ) | ||||||||||||
Net cash provided by operating activities | 103.3 | 124.2 | 41.7 | 149.8 | 57.9 | 103.3 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Expenditures for property, plant and equipment | (73.9 | ) | (71.0 | ) | (64.4 | ) | (32.7 | ) | (71.3 | ) | (73.9 | ) | ||||||||||||
Acquisition – net of cash acquired | - | - | (364.2 | ) | ||||||||||||||||||||
Proceeds from dispositions of assets | 0.3 | 0.3 | 5.7 | 0.7 | 6.2 | 0.3 | ||||||||||||||||||
Proceeds from sale of investment in affiliate | 0 | 3.8 | 0 | |||||||||||||||||||||
Proceeds from maturities of short-term investments | 4.9 | 4.8 | 2.2 | 3.4 | 4.1 | 4.9 | ||||||||||||||||||
Purchases of short-term investments | (3.8 | ) | (5.5 | ) | (3.5 | ) | (3.6 | ) | (3.3 | ) | (3.8 | ) | ||||||||||||
Other – net | (0.3 | ) | (0.2 | ) | 2.0 | 0.9 | 0 | (0.3 | ) | |||||||||||||||
Net cash used for investing activities | (72.8 | ) | (71.6 | ) | (422.2 | ) | (31.3 | ) | (60.5 | ) | (72.8 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings of debt | 231.2 | 171.0 | 559.1 | 32.7 | 672.0 | 221.3 | ||||||||||||||||||
Repayments of debt | (251.9 | ) | (222.9 | ) | (202.4 | ) | (183.6 | ) | (630.3 | ) | (241.9 | ) | ||||||||||||
Borrowings on bank overdraft facilities – net | 3.6 | 1.2 | (0.1 | ) | ||||||||||||||||||||
Dividend paid to noncontrolling interest | (1.8 | ) | (0.9 | ) | - | 0 | (1.3 | ) | (1.8 | ) | ||||||||||||||
Purchase of treasury stock under share repurchase program | 0 | (2.4 | ) | (0.6 | ) | |||||||||||||||||||
Financing fees paid | - | - | (8.7 | ) | (0.8 | ) | (2.8 | ) | 0 | |||||||||||||||
Other – net | (3.4 | ) | 2.7 | (0.4 | ) | 3.0 | (3.1 | ) | (2.8 | ) | ||||||||||||||
Net cash (used for) provided by financing activities | (25.9 | ) | (50.1 | ) | 347.6 | (145.1 | ) | 33.3 | (25.9 | ) | ||||||||||||||
Effect of exchange rate changes on cash | (2.7 | ) | 3.0 | (1.7 | ) | 1.4 | (1.6 | ) | (2.7 | ) | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 1.9 | 5.5 | (34.6 | ) | ||||||||||||||||||||
Cash, cash equivalents and restricted cash - beginning of year | 40.3 | 34.8 | 69.4 | |||||||||||||||||||||
Cash, cash equivalents and restricted cash - end of year | $ | 42.2 | $ | 40.3 | $ | 34.8 | ||||||||||||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and cash held for sale | (25.2 | ) | 29.1 | 1.9 | ||||||||||||||||||||
Cash, cash equivalents, restricted cash and cash held for sale - beginning of year | 71.3 | 42.2 | 40.3 | |||||||||||||||||||||
Cash, cash equivalents, restricted cash and cash held for sale - end of year | $ | 46.1 | $ | 71.3 | $ | 42.2 |
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock, at cost | Non-controlling interest | Total | Common stock | Additional paid-in | Retained | Accumulated other | Treasury stock, | Non-controlling | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | capital | earnings | comprehensive loss | at cost | interest | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2016 | 49.0 | $ | 30.6 | $ | 185.6 | $ | 358.2 | $ | (174.2 | ) | $ | (24.0 | ) | $ | 6.5 | $ | 382.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Modine | - | - | - | 14.2 | - | - | - | 14.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | (7.6 | ) | - | - | (7.6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for acquisition of Luvata HTS | 2.2 | 1.4 | 22.9 | - | - | - | - | 24.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options and awards including related tax benefits | 0.6 | 0.4 | 0.5 | - | - | - | - | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (1.4 | ) | - | (1.4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 7.4 | - | - | - | - | 7.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest | - | - | - | - | - | - | 0.7 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2017 | 51.8 | 32.4 | 216.4 | 372.4 | (181.8 | ) | (25.4 | ) | 7.2 | 421.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Modine | - | - | - | 22.2 | - | - | - | 22.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | - | 41.5 | - | 0.5 | 42.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options and awards | 0.5 | 0.3 | 3.9 | - | - | - | - | 4.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (1.7 | ) | - | (1.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of new accounting guidance (Note 1) | - | - | 0.1 | 0.3 | - | - | - | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 9.5 | - | - | - | - | 9.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend paid to noncontrolling interest | - | - | - | - | - | - | (0.9 | ) | (0.9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest | - | - | - | - | - | - | 1.6 | 1.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2018 | 52.3 | 32.7 | 229.9 | 394.9 | (140.3 | ) | (27.1 | ) | 8.4 | 498.5 | 52.3 | $ | 32.7 | $ | 229.9 | $ | 394.9 | $ | (140.3 | ) | $ | (27.1 | ) | $ | 8.4 | $ | 498.5 | |||||||||||||||||||||||||||||||||||||
Adoption of new accounting guidance (Note 1) | - | - | - | (7.6 | ) | - | - | - | (7.6 | ) | - | 0 | 0 | (7.6 | ) | 0 | 0 | 0 | (7.6 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to Modine | - | - | - | 84.8 | - | - | - | 84.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | 0 | 0 | 84.8 | 0 | 0 | 1.1 | 85.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | (38.1 | ) | - | (0.5 | ) | (38.6 | ) | - | 0 | 0 | 0 | (38.1 | ) | 0 | (0.5 | ) | (38.6 | ) | ||||||||||||||||||||||||||||||||||||||||||
Stock options and awards | 0.5 | 0.3 | 0.8 | - | - | - | - | 1.1 | 0.5 | 0.3 | 0.8 | 0 | 0 | 0 | 0 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (4.3 | ) | - | (4.3 | ) | - | 0 | 0 | 0 | 0 | (4.3 | ) | 0 | (4.3 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 7.9 | - | - | - | - | 7.9 | - | 0 | 7.9 | 0 | 0 | 0 | 0 | 7.9 | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividend paid to noncontrolling interest | - | - | - | - | - | - | (1.8 | ) | (1.8 | ) | - | 0 | 0 | 0 | 0 | 0 | (1.8 | ) | (1.8 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest | - | - | - | - | - | - | 1.1 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2019 | 52.8 | $ | 33.0 | $ | 238.6 | $ | 472.1 | $ | (178.4 | ) | $ | (31.4 | ) | $ | 7.2 | $ | 541.1 | 52.8 | 33.0 | 238.6 | 472.1 | (178.4 | ) | (31.4 | ) | 7.2 | 541.1 | |||||||||||||||||||||||||||||||||||||
Net (loss) earnings | - | 0 | 0 | (2.2 | ) | 0 | 0 | 0.2 | (2.0 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | 0 | 0 | 0 | (44.9 | ) | 0 | (0.4 | ) | (45.3 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options and awards | 0.6 | 0.3 | (0.1 | ) | 0 | 0 | 0 | 0 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | 0 | 0 | 0 | 0 | (5.7 | ) | 0 | (5.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | 0 | 6.6 | 0 | 0 | 0 | 0 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend paid to noncontrolling interest | - | 0 | 0 | 0 | 0 | 0 | (1.3 | ) | (1.3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 53.4 | 33.3 | 245.1 | 469.9 | (223.3 | ) | (37.1 | ) | 5.7 | 493.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) earnings | - | 0 | 0 | (210.7 | ) | 0 | 0 | 1.2 | (209.5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | 0 | 0 | 0 | 62.1 | 0 | 0.5 | 62.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options and awards | 0.9 | 0.6 | 3.6 | 0 | 0 | 0 | 0 | 4.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | 0 | 0 | 0 | 0 | (1.1 | ) | 0 | (1.1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | 0 | 6.3 | 0 | 0 | 0 | 0 | 6.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 54.3 | $ | 33.9 | $ | 255.0 | $ | 259.2 | $ | (161.2 | ) | $ | (38.2 | ) | $ | 7.4 | $ | 356.1 |
Note 1: Significant Accounting Policies |
Years ended March 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Interest paid | $ | 22.3 | $ | 23.4 | $ | 15.4 | ||||||
Income taxes paid | 22.2 | 20.1 | 12.7 |
Years ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Interest paid | $ | 17.9 | $ | 21.4 | $ | 22.3 | ||||||
Income taxes paid | 19.7 | 18.8 | 22.2 |
Adjustments Due to New Accounting Guidance | ||||||||||||||||
Balance as of March 31, 2018 | Revenue Recognition | Intra-entity Transfers of Assets | Balance as of April 1, 2018 | |||||||||||||
ASSETS | ||||||||||||||||
Inventories | $ | 191.3 | $ | (2.0 | ) | $ | - | $ | 189.3 | |||||||
Other current assets | 70.1 | 3.0 | (8.3 | ) | 64.8 | |||||||||||
Deferred income taxes | 96.9 | (0.2 | ) | - | 96.7 | |||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Deferred income taxes | $ | 9.9 | $ | 0.1 | $ | - | $ | 10.0 | ||||||||
Retained earnings | 394.9 | 0.7 | (8.3 | ) | 387.3 |
Cash and cash equivalents | $ | 27.4 | ||
Trade accounts receivable | 86.1 | |||
Inventories | 55.0 | |||
Property, plant and equipment | 120.4 | |||
Intangible assets | 130.2 | |||
Goodwill | 151.9 | |||
Other assets | 39.1 | |||
Accounts payable | (73.7 | ) | ||
Accrued compensation and employee benefits | (24.3 | ) | ||
Deferred income taxes | (39.5 | ) | ||
Pensions | (14.3 | ) | ||
Other liabilities | (42.7 | ) | ||
Purchase price | $ | 415.6 |
March 31, 2021 | ||||
ASSETS | ||||
Cash and cash equivalents | $ | 8.0 | ||
Trade accounts receivables - net | 54.4 | |||
Inventories | 24.7 | |||
Other current assets | 12.8 | |||
Property, plant and equipment - net | 164.0 | |||
Other noncurrent assets | 8.8 | |||
Impairment of carrying value | (165.1 | ) | ||
Total assets held for sale | $ | 107.6 | ||
LIABILITIES | ||||
Short-term debt | $ | 5.0 | ||
Accounts payable | 46.3 | |||
Accrued compensation and employee benefits | 15.5 | |||
Other current liabilities | 12.2 | |||
Pensions | 17.8 | |||
Other noncurrent liabilities | 6.5 | |||
Total liabilities held for sale | $ | 103.3 |
Year ended March 31, 2017 | ||||
Net sales | $ | 1,881.6 | ||
Net earnings attributable to Modine | 35.8 | |||
Net earnings per share attributable to Modine shareholders: | ||||
Basic | $ | 0.72 | ||
Diluted | 0.71 |
Note 3: Revenue Recognition |
Year ended March 31, 2019 | Year ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
VTS | CIS | BHVAC | Segment Total | BHVAC | CIS | HDE | Automotive | Segment Total | ||||||||||||||||||||||||||||
Primary end market: | ||||||||||||||||||||||||||||||||||||
Automotive | $ | 542.8 | $ | - | $ | - | $ | 542.8 | ||||||||||||||||||||||||||||
Commercial vehicle | 387.6 | - | - | 387.6 | ||||||||||||||||||||||||||||||||
Off-highway | 314.1 | - | - | 314.1 | ||||||||||||||||||||||||||||||||
Commercial HVAC&R | - | 506.3 | 167.7 | 674.0 | $ | 181.6 | $ | 420.6 | $ | 0 | $ | 0 | $ | 602.2 | ||||||||||||||||||||||
Data center cooling | - | 145.7 | 41.3 | 187.0 | 58.7 | 47.3 | 0 | 0 | 106.0 | |||||||||||||||||||||||||||
Industrial cooling | - | 47.8 | - | 47.8 | 0 | 55.4 | 0 | 0 | 55.4 | |||||||||||||||||||||||||||
Commercial vehicle | 0 | 0 | 250.4 | 14.4 | 264.8 | |||||||||||||||||||||||||||||||
Off-highway | 0 | 0 | 260.7 | 3.4 | 264.1 | |||||||||||||||||||||||||||||||
Automotive and light vehicle | 0 | 0 | 97.9 | 357.8 | 455.7 | |||||||||||||||||||||||||||||||
Other | 107.2 | 7.8 | 3.4 | 118.4 | 0.3 | 8.7 | 73.1 | 22.7 | 104.8 | |||||||||||||||||||||||||||
Net sales | $ | 1,351.7 | $ | 707.6 | $ | 212.4 | $ | 2,271.7 | $ | 240.6 | $ | 532.0 | $ | 682.1 | $ | 398.3 | $ | 1,853.0 | ||||||||||||||||||
Geographic location: | ||||||||||||||||||||||||||||||||||||
Americas | $ | 613.7 | $ | 413.6 | $ | 124.9 | $ | 1,152.2 | $ | 144.2 | $ | 267.7 | $ | 388.2 | $ | 51.0 | $ | 851.1 | ||||||||||||||||||
Europe | 538.2 | 244.8 | 87.5 | 870.5 | 96.4 | 219.8 | 133.2 | 282.0 | 731.4 | |||||||||||||||||||||||||||
Asia | 199.8 | 49.2 | - | 249.0 | 0 | 44.5 | 160.7 | 65.3 | 270.5 | |||||||||||||||||||||||||||
Net sales | $ | 1,351.7 | $ | 707.6 | $ | 212.4 | $ | 2,271.7 | $ | 240.6 | $ | 532.0 | $ | 682.1 | $ | 398.3 | $ | 1,853.0 | ||||||||||||||||||
Timing of revenue recognition: | ||||||||||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 1,308.5 | $ | 571.1 | $ | 212.4 | $ | 2,092.0 | $ | 240.6 | $ | 486.3 | $ | 655.2 | $ | 398.3 | $ | 1,780.4 | ||||||||||||||||||
Products transferred over time | 43.2 | 136.5 | - | 179.7 | 0 | 45.7 | 26.9 | 0 | 72.6 | |||||||||||||||||||||||||||
Net sales | $ | 1,351.7 | $ | 707.6 | $ | 212.4 | $ | 2,271.7 | $ | 240.6 | $ | 532.0 | $ | 682.1 | $ | 398.3 | $ | 1,853.0 |
Year ended March 31, 2020 | ||||||||||||||||||||
BHVAC | CIS | HDE | Automotive | Segment Total | ||||||||||||||||
Primary end market: | ||||||||||||||||||||
Commercial HVAC&R | $ | 176.6 | $ | 463.1 | $ | 0 | $ | 0 | $ | 639.7 | ||||||||||
Data center cooling | 42.7 | 107.5 | 0 | 0 | 150.2 | |||||||||||||||
Industrial cooling | 0 | 43.5 | 0 | 0 | 43.5 | |||||||||||||||
Commercial vehicle | 0 | 0 | 302.1 | 21.6 | 323.7 | |||||||||||||||
Off-highway | 0 | 0 | 240.8 | 13.1 | 253.9 | |||||||||||||||
Automotive and light vehicle | 0 | 0 | 108.4 | 400.4 | 508.8 | |||||||||||||||
Other | 1.8 | 9.8 | 94.6 | 9.8 | 116.0 | |||||||||||||||
Net sales | $ | 221.1 | $ | 623.9 | $ | 745.9 | $ | 444.9 | $ | 2,035.8 | ||||||||||
Geographic location: | ||||||||||||||||||||
Americas | $ | 139.1 | $ | 345.9 | $ | 484.5 | $ | 70.3 | $ | 1,039.8 | ||||||||||
Europe | 82.0 | 232.6 | 141.2 | 321.0 | 776.8 | |||||||||||||||
Asia | 0 | 45.4 | 120.2 | 53.6 | 219.2 | |||||||||||||||
Net sales | $ | 221.1 | $ | 623.9 | $ | 745.9 | $ | 444.9 | $ | 2,035.8 | ||||||||||
Timing of revenue recognition: | ||||||||||||||||||||
Products transferred at a point in time | $ | 221.1 | $ | 518.2 | $ | 715.1 | $ | 444.9 | $ | 1,899.3 | ||||||||||
Products transferred over time | 0 | 105.7 | 30.8 | 0 | 136.5 | |||||||||||||||
Net sales | $ | 221.1 | $ | 623.9 | $ | 745.9 | $ | 444.9 | $ | 2,035.8 |
Year ended March 31, 2019 | ||||||||||||||||||||
BHVAC | CIS | HDE | Automotive | Segment Total | ||||||||||||||||
Primary end market: | ||||||||||||||||||||
Commercial HVAC&R | $ | 167.7 | $ | 506.3 | $ | 0 | $ | 0 | $ | 674.0 | ||||||||||
Data center cooling | 41.3 | 145.7 | 0 | 0 | 187.0 | |||||||||||||||
Industrial cooling | 0 | 47.8 | 0 | 0 | 47.8 | |||||||||||||||
Commercial vehicle | 0 | 0 | 352.6 | 35.0 | 387.6 | |||||||||||||||
Off-highway | 0 | 0 | 298.1 | 16.0 | 314.1 | |||||||||||||||
Automotive and light vehicle | 0 | 0 | 116.7 | 426.1 | 542.8 | |||||||||||||||
Other | 3.4 | 7.8 | 104.9 | 11.8 | 127.9 | |||||||||||||||
Net sales | $ | 212.4 | $ | 707.6 | $ | 872.3 | $ | 488.9 | $ | 2,281.2 | ||||||||||
Geographic location: | ||||||||||||||||||||
Americas | $ | 124.9 | $ | 413.6 | $ | 543.0 | $ | 71.0 | $ | 1,152.5 | ||||||||||
Europe | 87.5 | 244.8 | 177.4 | 369.4 | 879.1 | |||||||||||||||
Asia | 0 | 49.2 | 151.9 | 48.5 | 249.6 | |||||||||||||||
Net sales | $ | 212.4 | $ | 707.6 | $ | 872.3 | $ | 488.9 | $ | 2,281.2 | ||||||||||
Timing of revenue recognition: | ||||||||||||||||||||
Products transferred at a point in time | $ | 212.4 | $ | 571.1 | $ | 829.1 | $ | 488.9 | $ | 2,101.5 | ||||||||||
Products transferred over time | 0 | 136.5 | 43.2 | 0 | 179.7 | |||||||||||||||
Net sales | $ | 212.4 | $ | 707.6 | $ | 872.3 | $ | 488.9 | $ | 2,281.2 |
March 31, 2019 | March 31, 2018 | March 31, 2021 | March 31, 2020 | |||||||||||||
Contract assets | $ | 22.6 | $ | 13.5 | $ | 5.7 | $ | 21.7 | ||||||||
Contract liabilities | 4.0 | 6.8 | 5.6 | 5.6 |
Year ended March 31, 2019 | ||||||||||||
As Reported | Impact of New Accounting Guidance | Results Without Impact of New Accounting Guidance | ||||||||||
Net sales | $ | 2,212.7 | $ | (4.4 | ) | $ | 2,208.3 | |||||
Net earnings attributable to Modine | 84.8 | (2.0 | ) | 82.8 | ||||||||
Net earnings per share attributable to Modine shareholders: | ||||||||||||
Basic | $ | 1.67 | $ | (0.04 | ) | $ | 1.63 | |||||
Diluted | 1.65 | (0.04 | ) | 1.61 |
March 31, 2019 | ||||||||||||
As Reported | Impact of New Accounting Guidance | Balances Without Impact of New Accounting Guidance | ||||||||||
ASSETS | ||||||||||||
Inventories | $ | 200.7 | $ | 3.8 | $ | 204.5 | ||||||
Other current assets | 65.8 | (7.4 | ) | 58.4 | ||||||||
Deferred income taxes | 97.1 | 0.6 | 97.7 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deferred income taxes | $ | 8.2 | $ | (0.3 | ) | $ | 7.9 | |||||
Retained earnings | 472.1 | (2.7 | ) | 469.4 |
Note 4: Fair Value Measurements |
March 31, 2019 | March 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Money market investments | $ | - | $ | 3.9 | $ | 3.9 | $ | 0 | $ | 2.5 | $ | 2.5 | ||||||||||||
Corporate bonds | - | 9.4 | 9.4 | |||||||||||||||||||||
Fixed income securities | 0 | 8.9 | 8.9 | |||||||||||||||||||||
Pooled equity funds | 27.7 | - | 27.7 | 37.3 | 0 | 37.3 | ||||||||||||||||||
U.S. government and agency securities | - | 12.3 | 12.3 | 0 | 14.5 | 14.5 | ||||||||||||||||||
Other | 0.1 | 0.9 | 1.0 | 0.1 | 1.0 | 1.1 | ||||||||||||||||||
Fair value excluding investments measured at net asset value | 27.8 | 26.5 | 54.3 | 37.4 | 26.9 | 64.3 | ||||||||||||||||||
Investments measured at net asset value | 100.8 | 119.0 | ||||||||||||||||||||||
Total fair value | $ | 155.1 | $ | 183.3 |
March 31, 2018 | March 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Money market investments | $ | - | $ | 11.4 | $ | 11.4 | $ | 0 | $ | 2.4 | $ | 2.4 | ||||||||||||
Common stocks | 9.4 | 2.6 | 12.0 | |||||||||||||||||||||
Corporate bonds | - | 9.7 | 9.7 | |||||||||||||||||||||
Fixed income securities | 0 | 8.7 | 8.7 | |||||||||||||||||||||
Pooled equity funds | 64.4 | - | 64.4 | 17.9 | 0 | 17.9 | ||||||||||||||||||
Pooled fixed-income funds | 27.3 | - | 27.3 | |||||||||||||||||||||
U.S. government and agency securities | - | 16.2 | 16.2 | 0 | 13.1 | 13.1 | ||||||||||||||||||
Other | 0.2 | 1.7 | 1.9 | 0.1 | 0.7 | 0.8 | ||||||||||||||||||
Fair value excluding investment measured at net asset value | 101.3 | 41.6 | 142.9 | 18.0 | 24.9 | 42.9 | ||||||||||||||||||
Investment measured at net asset value | 14.8 | |||||||||||||||||||||||
Investments measured at net asset value | 88.2 | |||||||||||||||||||||||
Total fair value | $ | 157.7 | $ | 131.1 |
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||
Fair value of options | $ | 7.81 | $ | 7.30 | $ | 4.60 | $ | 3.46 | $ | 5.56 | $ | 7.81 | ||||||||||||
Expected life of awards in years | 6.3 | 6.4 | 6.4 | 6.1 | 6.3 | 6.3 | ||||||||||||||||||
Risk-free interest rate | 2.8 | % | 1.9 | % | 1.4 | % | 0.4 | % | 2.2 | % | 2.8 | % | ||||||||||||
Expected volatility of the Company’s stock | 39.7 | % | 44.3 | % | 45.5 | % | 54.1 | % | 39.2 | % | 39.7 | % | ||||||||||||
Expected dividend yield on the Company’s stock | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
Shares | Weighted-average exercise price | Weighted-average remaining contractual term (years) | Aggregate intrinsic value | Shares | Weighted-average exercise price | Weighted-average remaining contractual term (years) | Aggregate intrinsic value | |||||||||||||||||||||||||
Outstanding, beginning | 1.2 | $ | 11.16 | 1.4 | $ | 12.49 | ||||||||||||||||||||||||||
Granted | 0.2 | 17.90 | 0.4 | 6.88 | ||||||||||||||||||||||||||||
Exercised | (0.1 | ) | 9.93 | (0.4 | ) | 10.56 | ||||||||||||||||||||||||||
Forfeited or expired | (0.1 | ) | 14.51 | (0.3 | ) | 10.94 | ||||||||||||||||||||||||||
Outstanding, ending | 1.2 | $ | 12.24 | 5.5 | $ | 3.3 | 1.1 | $ | 11.63 | 7.1 | $ | 3.9 | ||||||||||||||||||||
Exercisable, March 31, 2019 | 0.8 | $ | 10.59 | 4.0 | $ | 2.9 | ||||||||||||||||||||||||||
Exercisable, March 31, 2021 | 0.5 | $ | 13.80 | 5.1 | $ | 0.9 |
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||
Intrinsic value of stock options exercised | $ | 0.7 | $ | 4.9 | $ | 0.5 | $ | 1.4 | $ | 0.1 | $ | 0.7 | ||||||||||||
Proceeds from stock options exercised | 1.1 | 4.3 | 0.9 | 4.1 | 0.1 | 1.1 |
Shares | Weighted-average price | Shares | Weighted-average price | |||||||||||||
Non-vested balance, beginning | 0.6 | $ | 12.24 | 0.5 | $ | 14.48 | ||||||||||
Granted | 0.3 | 17.72 | 0.8 | 7.53 | ||||||||||||
Vested | (0.3 | ) | 13.75 | (0.5 | ) | 9.64 | ||||||||||
Forfeited | (0.1 | ) | 15.03 | (0.1 | ) | 13.40 | ||||||||||
Non-vested balance, ending | 0.5 | $ | 14.95 | 0.7 | $ | 10.05 |
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||
Employee severance and related benefits | $ | 8.7 | $ | 13.0 | $ | 5.3 | $ | 11.7 | $ | 10.2 | $ | 8.7 | ||||||||||||
Other restructuring and repositioning expenses | 0.9 | 3.0 | 5.6 | 1.7 | 2.0 | 0.9 | ||||||||||||||||||
Total | $ | 9.6 | $ | 16.0 | $ | 10.9 | $ | 13.4 | $ | 12.2 | $ | 9.6 |
Years ended March 31, | Years ended March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
Beginning balance | $ | 11.0 | $ | 6.5 | $ | 5.0 | $ | 10.0 | ||||||||
Additions | 8.7 | 13.0 | 11.7 | 10.2 | ||||||||||||
Payments | (9.1 | ) | (9.4 | ) | (10.5 | ) | (15.1 | ) | ||||||||
Reclassified as held for sale | (2.5 | ) | 0 | |||||||||||||
Effect of exchange rate changes | (0.6 | ) | 0.9 | 0.3 | (0.1 | ) | ||||||||||
Ending balance | $ | 10.0 | $ | 11.0 | $ | 4.0 | $ | 5.0 |
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||
Equity in earnings of non-consolidated affiliate | $ | 0.7 | $ | 0.2 | $ | 0.1 | ||||||||||||||||||
Interest income | 0.4 | 0.4 | 0.4 | $ | 0.5 | $ | 0.4 | $ | 0.4 | |||||||||||||||
Foreign currency transactions (a) | (2.3 | ) | (0.6 | ) | (1.9 | ) | 0.6 | (2.4 | ) | (2.3 | ) | |||||||||||||
Net periodic benefit cost (b) | (2.9 | ) | (3.3 | ) | (2.9 | ) | (3.3 | ) | (3.0 | ) | (2.9 | ) | ||||||||||||
Equity in earnings of non-consolidated affiliate (c) | 0 | 0.2 | 0.7 | |||||||||||||||||||||
Total other expense - net | $ | (4.1 | ) | $ | (3.3 | ) | $ | (4.3 | ) | $ | (2.2 | ) | $ | (4.8 | ) | $ | (4.1 | ) |
(a) | Foreign currency transactions primarily consist of foreign currency transaction gains and losses on the re-measurement or settlement of foreign currency-denominated assets and liabilities, including intercompany loans and transactions denominated in a foreign currency, along with gains and losses on foreign currency exchange contracts. |
(b) | Net periodic benefit |
(c) | During fiscal 2020, the Company sold its ownership interest in Nikkei Heat Exchanger Company, Ltd. As a result of the sale, the Company recorded a gain of $0.1 million, which is included within the fiscal 2020 amount. See Note 1 for additional information. |
Years ended March 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Components of earnings (loss) before income taxes: | ||||||||||||
United States | $ | 22.4 | $ | 2.5 | $ | (8.6 | ) | |||||
Foreign | 58.4 | 60.8 | 29.4 | |||||||||
Total earnings before income taxes | $ | 80.8 | $ | 63.3 | $ | 20.8 | ||||||
Income tax (benefit) provision: | ||||||||||||
Federal: | ||||||||||||
Current | $ | (20.4 | ) | $ | 11.6 | $ | 0.1 | |||||
Deferred | (4.2 | ) | 23.3 | (3.8 | ) | |||||||
State: | ||||||||||||
Current | 0.7 | (0.3 | ) | 0.3 | ||||||||
Deferred | 1.9 | 2.0 | (0.2 | ) | ||||||||
Foreign: | ||||||||||||
Current | 19.0 | 16.1 | 10.1 | |||||||||
Deferred | (2.1 | ) | (13.2 | ) | (0.6 | ) | ||||||
Total income tax (benefit) provision | $ | (5.1 | ) | $ | 39.5 | $ | 5.9 |
Years ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Components of (loss) earnings before income taxes: | ||||||||||||
United States | $ | (48.7 | ) | $ | (26.1 | ) | $ | 22.4 | ||||
Foreign | (70.6 | ) | 36.5 | 58.4 | ||||||||
Total (loss) earnings before income taxes | $ | (119.3 | ) | $ | 10.4 | $ | 80.8 |
Income tax provision (benefit): | ||||||||||||
Federal: | ||||||||||||
Current | $ | (0.1 | ) | $ | (3.4 | ) | $ | (20.4 | ) | |||
Deferred | 58.3 | (1.7 | ) | (4.2 | ) | |||||||
State: | ||||||||||||
Current | 0.4 | (0.1 | ) | 0.7 | ||||||||
Deferred | 9.2 | (2.3 | ) | 1.9 | ||||||||
Foreign: | ||||||||||||
Current | 22.0 | 14.9 | 19.0 | |||||||||
Deferred | 0.4 | 5.0 | (2.1 | ) | ||||||||
Total income tax provision (benefit) | $ | 90.2 | $ | 12.4 | $ | (5.1 | ) |
Years ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Statutory federal tax | 21.0 | % | 21.0 | % | 21.0 | % | ||||||
State taxes, net of federal benefit | 0.9 | (12.0 | ) | 3.6 | ||||||||
Taxes on non-U.S. earnings and losses | (9.1 | ) | 32.9 | 3.9 | ||||||||
Valuation allowances | (92.9 | ) | 156.9 | 4.0 | ||||||||
Tax credits | 2.2 | (36.7 | ) | (26.1 | ) | |||||||
Compensation | (1.3 | ) | 4.0 | (0.1 | ) | |||||||
Tax rate or law changes | (0.2 | ) | 3.6 | (12.0 | ) | |||||||
Uncertain tax positions, net of settlements | 0.1 | (37.9 | ) | 0.4 | ||||||||
Notional interest deductions | 1.3 | (12.5 | ) | (2.5 | ) | |||||||
Dividends and taxable foreign inclusions | 3.0 | (11.0 | ) | 1.6 | ||||||||
Other | (0.6 | ) | 10.9 | (0.1 | ) | |||||||
Effective tax rate | (75.6 | %) | 119.2 | % | (6.3 | %) |
Years ended March 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Statutory federal tax | 21.0 | % | 31.5 | % | 35.0 | % | ||||||
State taxes, net of federal benefit | 3.6 | 2.9 | (3.3 | ) | ||||||||
Taxes on non-U.S. earnings and losses | 3.9 | (3.8 | ) | (3.5 | ) | |||||||
Valuation allowances | 4.0 | (5.6 | ) | 1.2 | ||||||||
Tax credits | (26.1 | ) | (17.3 | ) | (9.0 | ) | ||||||
Compensation | (0.1 | ) | (0.8 | ) | 2.9 | |||||||
Tax rate or law changes | (12.0 | ) | 60.1 | (2.5 | ) | |||||||
Uncertain tax positions, net of settlements | 0.4 | (0.8 | ) | 5.6 | ||||||||
Notional interest deductions | (2.5 | ) | (3.2 | ) | (8.8 | ) | ||||||
Dividend repatriation | 1.6 | 0.2 | 7.1 | |||||||||
Other | (0.1 | ) | (0.8 | ) | 3.7 | |||||||
Effective tax rate | (6.3 | %) | 62.4 | % | 28.4 | % |
March 31, | March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Accounts receivable | $ | 0.2 | $ | 0.3 | $ | 0.3 | $ | 0.3 | ||||||||
Inventories | 3.4 | 4.1 | 4.5 | 4.5 | ||||||||||||
Plant and equipment | 1.8 | 2.3 | 7.5 | 4.7 | ||||||||||||
Lease liabilities | 14.0 | 15.7 | ||||||||||||||
Pension and employee benefits | 32.7 | 36.0 | 24.0 | 45.1 | ||||||||||||
Net operating and capital losses | 73.5 | 102.5 | 52.7 | 70.2 | ||||||||||||
Credit carryforwards | 60.3 | 36.7 | 51.8 | 56.8 | ||||||||||||
Other, principally accrued liabilities | 10.0 | 9.9 | 8.9 | 8.1 | ||||||||||||
Total gross deferred tax assets | 181.9 | 191.8 | 163.7 | 205.4 | ||||||||||||
Less: valuation allowances | (43.4 | ) | (48.9 | ) | (90.7 | ) | (46.9 | ) | ||||||||
Net deferred tax assets | 138.5 | 142.9 | 73.0 | 158.5 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Plant and equipment | 15.1 | 17.6 | 9.8 | 13.1 | ||||||||||||
Lease assets | 13.8 | 15.6 | ||||||||||||||
Goodwill | 4.8 | 5.2 | 5.1 | 4.8 | ||||||||||||
Intangible assets | 28.8 | 32.4 | 25.1 | 26.4 | ||||||||||||
Other | 0.9 | 0.7 | 0.6 | 1.9 | ||||||||||||
Total gross deferred tax liabilities | 49.6 | 55.9 | 54.4 | 61.8 | ||||||||||||
Net deferred tax assets | $ | 88.9 | $ | 87.0 | $ | 18.6 | $ | 96.7 |
Years ended March 31, | Years ended March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
Beginning balance | $ | 13.6 | $ | 14.2 | $ | 9.7 | $ | 13.8 | ||||||||
Gross increases - tax positions in prior period | 1.6 | 0.8 | 0.1 | 0.3 | ||||||||||||
Gross decreases - tax positions in prior period | (0.2 | ) | (1.2 | ) | (0.6 | ) | (1.0 | ) | ||||||||
Gross increases - due to acquisition | - | 1.4 | ||||||||||||||
Gross increases - tax positions in current period | 1.1 | 0.5 | 0.9 | 1.1 | ||||||||||||
Settlements | (0.1 | ) | (0.3 | ) | 0 | (2.1 | ) | |||||||||
Lapse of statute of limitations | (2.2 | ) | (1.8 | ) | (0.5 | ) | (2.4 | ) | ||||||||
Ending balance | $ | 13.8 | $ | 13.6 | $ | 9.6 | $ | 9.7 |
Germany | Fiscal |
Italy | |
United States | Fiscal |
Note 9: Earnings Per Share |
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||
Basic Earnings Per Share: | ||||||||||||||||||||||||
Net earnings attributable to Modine | $ | 84.8 | $ | 22.2 | $ | 14.2 | ||||||||||||||||||
Net (loss) earnings attributable to Modine | $ | (210.7 | ) | $ | (2.2 | ) | $ | 84.8 | ||||||||||||||||
Less: Undistributed earnings attributable to unvested shares | (0.4 | ) | (0.2 | ) | (0.2 | ) | 0 | 0 | (0.4 | ) | ||||||||||||||
Net earnings available to Modine shareholders | $ | 84.4 | $ | 22.0 | $ | 14.0 | ||||||||||||||||||
Net (loss) earnings available to Modine shareholders | $ | (210.7 | ) | $ | (2.2 | ) | $ | 84.4 | ||||||||||||||||
Weighted-average shares outstanding - basic | 50.5 | 49.9 | 47.8 | 51.3 | 50.8 | 50.5 | ||||||||||||||||||
Net earnings per share - basic | $ | 1.67 | $ | 0.44 | $ | 0.29 | ||||||||||||||||||
Net (loss) earnings per share - basic | $ | (4.11 | ) | $ | (0.04 | ) | $ | 1.67 | ||||||||||||||||
Diluted Earnings Per Share: | ||||||||||||||||||||||||
Net earnings attributable to Modine | $ | 84.8 | $ | 22.2 | $ | 14.2 | ||||||||||||||||||
Net (loss) earnings attributable to Modine | $ | (210.7 | ) | $ | (2.2 | ) | $ | 84.8 | ||||||||||||||||
Less: Undistributed earnings attributable to unvested shares | (0.2 | ) | (0.1 | ) | (0.1 | ) | 0 | 0 | (0.2 | ) | ||||||||||||||
Net earnings available to Modine shareholders | $ | 84.6 | $ | 22.1 | $ | 14.1 | ||||||||||||||||||
Net (loss) earnings available to Modine shareholders | $ | (210.7 | ) | $ | (2.2 | ) | $ | 84.6 | ||||||||||||||||
Weighted-average shares outstanding - basic | 50.5 | 49.9 | 47.8 | 51.3 | 50.8 | 50.5 | ||||||||||||||||||
Effect of dilutive securities | 0.8 | 1.0 | 0.5 | 0 | 0 | 0.8 | ||||||||||||||||||
Weighted-average shares outstanding - diluted | 51.3 | 50.9 | 48.3 | 51.3 | 50.8 | 51.3 | ||||||||||||||||||
Net earnings per share - diluted | $ | 1.65 | $ | 0.43 | $ | 0.29 | ||||||||||||||||||
Net (loss) earnings per share - diluted | $ | (4.11 | ) | $ | (0.04 | ) | $ | 1.65 |
Note 10: Cash, Cash Equivalents and Restricted Cash |
March 31, | March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
Cash and cash equivalents | $ | 41.7 | $ | 39.3 | $ | 37.8 | $ | 70.9 | ||||||||
Restricted cash | 0.5 | 1.0 | 0.1 | 0.4 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 42.2 | $ | 40.3 | ||||||||||||
Cash and restricted cash held for sale | 8.2 | 0 | ||||||||||||||
Total cash, cash equivalents, restricted cash and cash held for sale | $ | 46.1 | $ | 71.3 |
March 31, | March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
Raw materials | $ | 122.8 | $ | 114.4 | $ | 117.1 | $ | 123.6 | ||||||||
Work in process | 32.2 | 34.8 | 38.5 | 34.6 | ||||||||||||
Finished goods | 45.7 | 42.1 | 40.0 | 49.2 | ||||||||||||
Total inventories | $ | 200.7 | $ | 191.3 | $ | 195.6 | $ | 207.4 |
Note 12: Property, Plant and Equipment |
March 31, | March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
Land | $ | 20.7 | $ | 22.6 | $ | 16.4 | $ | 19.7 | ||||||||
Buildings and improvements (10-40 years) | 285.9 | 295.6 | ||||||||||||||
Machinery and equipment (3-15 years) | 848.7 | 840.8 | ||||||||||||||
Office equipment (3-10 years) | 92.0 | 93.0 | ||||||||||||||
Buildings and improvements (10-40 years) | 203.5 | 276.7 | ||||||||||||||
Machinery and equipment (3-15 years) | 623.2 | 870.3 | ||||||||||||||
Office equipment (3-10 years) | 81.3 | 95.2 | ||||||||||||||
Construction in progress | 57.4 | 50.2 | 19.0 | 40.5 | ||||||||||||
1,304.7 | 1,302.2 | 943.4 | 1,302.4 | |||||||||||||
Less: accumulated depreciation | (820.0 | ) | (797.9 | ) | (673.5 | ) | (854.4 | ) | ||||||||
Net property, plant and equipment | $ | 484.7 | $ | 504.3 | $ | 269.9 | $ | 448.0 |
Note 13: Intangible Assets |
March 31, 2019 | March 31, 2018 | March 31, 2021 | March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Intangible Assets | Gross Carrying Value | Accumulated Amortization | Net Intangible Assets | Gross Carrying Value | Accumulated Amortization | Net Intangible Assets | Gross Carrying Value | Accumulated Amortization | Net Intangible Assets | |||||||||||||||||||||||||||||||||||||
Customer relationships | $ | 61.5 | $ | (9.1 | ) | $ | 52.4 | $ | 64.2 | $ | (5.7 | ) | $ | 58.5 | $ | 62.8 | $ | (16.9 | ) | $ | 45.9 | $ | 60.8 | $ | (12.6 | ) | $ | 48.2 | ||||||||||||||||||||
Trade names | 58.9 | (13.5 | ) | 45.4 | 60.6 | (10.8 | ) | 49.8 | 51.5 | (11.4 | ) | 40.1 | 58.3 | (16.2 | ) | 42.1 | ||||||||||||||||||||||||||||||||
Acquired technology | 23.9 | (5.5 | ) | 18.4 | 25.2 | (3.6 | ) | 21.6 | 23.9 | (9.3 | ) | 14.6 | 23.6 | (7.6 | ) | 16.0 | ||||||||||||||||||||||||||||||||
Total intangible assets | $ | 144.3 | $ | (28.1 | ) | $ | 116.2 | $ | 150.0 | $ | (20.1 | ) | $ | 129.9 | $ | 138.2 | $ | (37.6 | ) | $ | 100.6 | $ | 142.7 | $ | (36.4 | ) | $ | 106.3 |
Note 14: Goodwill |
VTS | CIS | BHVAC | Total | BHVAC | CIS | Automotive | Total | |||||||||||||||||||||||||
Balance, March 31, 2017 | $ | 0.5 | $ | 150.9 | $ | 13.7 | $ | 165.1 | ||||||||||||||||||||||||
Acquired goodwill (a) | - | 1.3 | - | 1.3 | ||||||||||||||||||||||||||||
Balance, March 31, 2019 | $ | 14.1 | $ | 153.9 | $ | 0.5 | $ | 168.5 | ||||||||||||||||||||||||
Impairment charge | 0 | 0 | (0.5 | ) | (0.5 | ) | ||||||||||||||||||||||||||
Effect of exchange rate changes | - | 6.1 | 1.3 | 7.4 | (0.6 | ) | (1.3 | ) | 0 | (1.9 | ) | |||||||||||||||||||||
Balance, March 31, 2018 | 0.5 | 158.3 | 15.0 | 173.8 | ||||||||||||||||||||||||||||
Balance, March 31, 2020 | 13.5 | 152.6 | 0 | 166.1 | ||||||||||||||||||||||||||||
Effect of exchange rate changes | - | (4.4 | ) | (0.9 | ) | (5.3 | ) | 1.3 | 3.3 | 0 | 4.6 | |||||||||||||||||||||
Balance, March 31, 2019 | $ | 0.5 | $ | 153.9 | $ | 14.1 | $ | 168.5 | ||||||||||||||||||||||||
Balance, March 31, 2021 | $ | 14.8 | $ | 155.9 | $ | 0 | $ | 170.7 |
Years ended March 31, | Years ended March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
Beginning balance | $ | 9.3 | $ | 10.0 | $ | 7.9 | $ | 9.2 | ||||||||
Warranties recorded at time of sale | 5.5 | 6.7 | 5.5 | 5.3 | ||||||||||||
Adjustments to pre-existing warranties | 2.2 | (0.8 | ) | (0.9 | ) | (1.6 | ) | |||||||||
Adjustments due to acquisition (a) | - | (1.0 | ) | |||||||||||||
Settlements | (7.3 | ) | (6.2 | ) | (5.6 | ) | (4.8 | ) | ||||||||
Reclassified as held for sale | (2.0 | ) | 0 | |||||||||||||
Effect of exchange rate changes | (0.5 | ) | 0.6 | 0.3 | (0.2 | ) | ||||||||||
Ending balance | $ | 9.2 | $ | 9.3 | $ | 5.2 | $ | 7.9 |
Fiscal Year | ||||
2020 | $ | 14.2 | ||
2021 | 12.4 | |||
2022 | 9.1 | |||
2023 | 7.1 | |||
2024 | 4.7 | |||
2025 and beyond | 22.9 | |||
Total | $ | 70.4 |
- | Balance Sheet Location | - | March 31, 2021 | March 31, 2020 | ||||
Lease Assets | ||||||||
Operating lease ROU assets | Other noncurrent assets | $ | 54.1 | $ | 61.4 | |||
Finance lease ROU assets (a) | Property, plant and equipment - net | 8.3 | 8.5 | |||||
Lease Liabilities | ||||||||
Operating lease liabilities | Other current liabilities | $ | 11.2 | $ | 10.9 | |||
Operating lease liabilities | Other noncurrent liabilities | 44.8 | 50.3 | |||||
Finance lease liabilities | Long-term debt - current portion | 0.4 | 0.4 | |||||
Finance lease liabilities | Long-term debt | 3.2 | 3.3 |
Years ended March 31, | ||||||||
2021 | 2020 | |||||||
Operating lease expense (a) | $ | 19.5 | $ | 21.2 | ||||
Finance lease expense: | ||||||||
Depreciation of ROU assets | 0.5 | 0.5 | ||||||
Interest on lease liabilities | 0.2 | 0.2 | ||||||
Total lease expense | $ | 20.2 | $ | 21.9 |
(a) | In fiscal 2021 and 2020, operating lease expense included short-term lease expense of $3.5 million and $4.1 million, respectively. Variable lease expense was not significant. |
Years ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows for operating leases | $ | 14.2 | $ | 14.7 | ||||
Financing cash flows for finance leases | 0.6 | 0.5 | ||||||
ROU assets obtained in exchange for lease liabilities | ||||||||
Operating leases | $ | 9.8 | $ | 9.0 | ||||
Finance leases | 0.1 | 0.2 |
March 31, 2021 | March 31, 2020 | |||||||
Weighted-average remaining lease term: | ||||||||
Operating leases | 6.9 years | 9.3 years | ||||||
Finance leases | 7.8 years | 8.8 years | ||||||
Weighted-average discount rate: | ||||||||
Operating leases | 3.3 | % | 3.5 | % | ||||
Finance leases | 4.7 | % | 4.7 | % |
Fiscal Year | Operating Leases | Finance Leases | ||||||
2022 | $ | 12.8 | $ | 0.6 | ||||
2023 | 10.9 | 0.6 | ||||||
2024 | 8.1 | 0.6 | ||||||
2025 | 6.7 | 0.6 | ||||||
2026 | 6.1 | 0.5 | ||||||
2027 and beyond | 18.5 | 1.4 | ||||||
Total lease payments | 63.1 | 4.3 | ||||||
Less: Interest | (7.1 | ) | (0.7 | ) | ||||
Present value of lease liabilities | $ | 56.0 | $ | 3.6 |
Fiscal year of maturity | March 31, 2019 | March 31, 2018 | ||||||||||
Term loans | 2022 | $ | 238.4 | $ | 267.8 | |||||||
6.8% Senior Notes | 2021 | 85.0 | 101.0 | |||||||||
5.8% Senior Notes | 2027 | 50.0 | 50.0 | |||||||||
Other (a) | - | 14.3 | 12.8 | |||||||||
387.7 | 431.6 | |||||||||||
Less: current portion | (48.6 | ) | (39.9 | ) | ||||||||
Less: unamortized debt issuance costs | (4.0 | ) | (5.4 | ) | ||||||||
Total long-term debt | $ | 335.1 | $ | 386.3 |
io | _ | Fiscal year of maturity | _ March 31, 2021 | March 31, 2020 | ||||
Term loans | _2025_ | $ | $178.9 | $ | $189.4 | |||
Revolving credit facility | 2025 | 4.8 | 127.2 | |||||
5.9% Senior Notes | 2029 | 100.0 | 100.0 | |||||
5.8% Senior Notes | 2027 | 50.0 | 50.0 | |||||
Other (a) | 3.6 | 6.0 | ||||||
337.3 | 472.6 | |||||||
Less: current portion | (21.9) | (15.6) | ||||||
Less: unamortized debt issuance costs | (4.2) | (5.0) | ||||||
Total long-term debt | $ | $311.2 | $ | $452.0 |
(a) | Other long-term debt primarily includesfinance lease obligations and borrowings by foreign |
Fiscal Year | ||||
2020 | $ | 48.6 | ||
2021 | 101.3 | |||
2022 | 187.4 | |||
2023 | 8.8 | |||
2024 | 8.8 | |||
2025 & beyond | 32.8 | |||
Total | $ | 387.7 |
Fiscal Year | ||||
2022 | $ | 21.9 | ||
2023 | 21.9 | |||
2024 | 21.9 | |||
2025 | 153.2 | |||
2026 | 33.8 | |||
2027 and beyond | 84.6 | |||
Total | $ | 337.3 |
Note 18: Pension and Employee Benefit Plans |
Years ended March 31, | Years ended March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 273.6 | $ | 269.8 | $ | 264.7 | $ | 258.8 | ||||||||
Service cost | 0.5 | 0.5 | 0.4 | 0.4 | ||||||||||||
Interest cost | 9.6 | 9.9 | 7.9 | 9.1 | ||||||||||||
Actuarial loss | 1.7 | 4.4 | 2.7 | 15.5 | ||||||||||||
Benefits paid | (22.8 | ) | (16.9 | ) | (17.1 | ) | (18.2 | ) | ||||||||
Curtailment gain (a) | - | (0.3 | ) | |||||||||||||
Curtailment gains (a) | (0.1 | ) | (0.3 | ) | ||||||||||||
Effect of exchange rate changes | (3.8 | ) | 6.2 | 2.1 | (0.6 | ) | ||||||||||
Benefit obligation at end of year | $ | 258.8 | $ | 273.6 | $ | 260.6 | $ | 264.7 | ||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 157.7 | $ | 148.2 | $ | 131.1 | $ | 155.1 | ||||||||
Actual return on plan assets | 6.3 | 10.4 | 47.8 | (11.6 | ) | |||||||||||
Benefits paid | (22.8 | ) | (16.9 | ) | (17.1 | ) | (18.2 | ) | ||||||||
Employer contributions | 13.9 | 16.0 | 21.5 | 5.8 | ||||||||||||
Fair value of plan assets at end of year | $ | 155.1 | $ | 157.7 | $ | 183.3 | $ | 131.1 | ||||||||
Funded status at end of year | $ | (103.7 | ) | $ | (115.9 | ) | $ | (77.3 | ) | $ | (133.6 | ) | ||||
Amounts recognized in the consolidated balance sheets: | ||||||||||||||||
Current liability | $ | (2.0 | ) | $ | (6.3 | ) | $ | (0.9 | ) | $ | (2.7 | ) | ||||
Noncurrent liability | (101.7 | ) | (109.6 | ) | (58.6 | ) | (130.9 | ) | ||||||||
Liabilities held for sale | (17.8 | ) | 0 | |||||||||||||
$ | (103.7 | ) | $ | (115.9 | ) | $ | (77.3 | ) | $ | (133.6 | ) |
(a) |
Years ended March 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Components of net periodic benefit cost: | ||||||||||||
Service cost | $ | 0.5 | $ | 0.5 | $ | 0.6 | ||||||
Interest cost | 9.6 | 9.9 | 9.8 | |||||||||
Expected return on plan assets | (12.3 | ) | (11.9 | ) | (12.3 | ) | ||||||
Amortization of net actuarial loss | 5.6 | 5.6 | 5.6 | |||||||||
Settlements (a) | 0.2 | 0.3 | - | |||||||||
Curtailment gain (a) | - | (0.3 | ) | - | ||||||||
Net periodic benefit cost | $ | 3.6 | $ | 4.1 | $ | 3.7 | ||||||
Other changes in benefit obligation recognized in other comprehensive income (loss): | ||||||||||||
Net actuarial loss | $ | (7.7 | ) | $ | (5.8 | ) | $ | (1.0 | ) | |||
Amortization of net actuarial loss | 5.8 | 5.9 | 5.6 | |||||||||
Total recognized in other comprehensive income (loss) | $ | (1.9 | ) | $ | 0.1 | $ | 4.6 |
Years ended March 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Components of net periodic benefit cost: | ||||||||||||
Service cost | $ | 0.4 | $ | 0.4 | $ | 0.5 | ||||||
Interest cost | 7.9 | 9.1 | 9.6 | |||||||||
Expected return on plan assets | (11.5 | ) | (12.0 | ) | (12.3 | ) | ||||||
Amortization of net actuarial loss | 6.9 | 6.0 | 5.6 | |||||||||
Settlements (a) | 0.2 | 0.2 | 0.2 | |||||||||
Net periodic benefit cost | $ | 3.9 | $ | 3.7 | $ | 3.6 | ||||||
Other changes in benefit obligation recognized in other comprehensive income (loss): | ||||||||||||
Net actuarial gain (loss) | $ | 33.8 | $ | (38.7 | ) | $ | (7.7 | ) | ||||
Amortization of net actuarial loss | 7.1 | 6.2 | 5.8 | |||||||||
Total recognized in other comprehensive income (loss) | $ | 40.9 | $ | (32.5 | ) | $ | (1.9 | ) |
(a) | The settlement charges |
March 31, 2021 | March 31, 2020 | |||||||||||||||
Target allocation | Plan assets | Target allocation | Plan assets | |||||||||||||
Equity securities | 76 | % | 73 | % | 65 | % | 60 | % | ||||||||
Debt securities | 18 | % | 17 | % | 21 | % | 22 | % | ||||||||
Real estate investments | 5 | % | 9 | % | 13 | % | 16 | % | ||||||||
Cash and cash equivalents | 1 | % | 1 | % | 1 | % | 2 | % | ||||||||
100 | % | 100 | % | 100 | % | 100 | % |
March 31, 2019 | March 31, 2018 | |||||||||||||||
Target allocation | Plan assets | Target allocation | Plan assets | |||||||||||||
Equity securities | 65 | % | 66 | % | 60 | % | 58 | % | ||||||||
Debt securities | 21 | % | 19 | % | 38 | % | 38 | % | ||||||||
Real estate investments | 13 | % | 12 | % | - | - | ||||||||||
Cash and cash equivalents | 1 | % | 3 | % | 2 | % | 4 | % | ||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Fiscal Year | Estimated Pension Benefit Payments | Estimated Pension Benefit Payments | ||||||
2020 | $ | 16.0 | ||||||
2021 | 16.0 | |||||||
2022 | 16.4 | $ | 15.2 | |||||
2023 | 16.4 | 15.5 | ||||||
2024 | 16.6 | 15.6 | ||||||
2025-2029 | 82.0 | |||||||
2025 | 15.6 | |||||||
2026 | 15.5 | |||||||
2027-2031 | 74.6 |
Note 19: Derivative Instruments |
Balance Sheet Location | March 31, 2019 | March 31, 2018 | |||||||||||||||||
_ | Balance Sheet Location | March 31, 2021 | March 31, 2020 | ||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||
Commodity derivatives | Other current assets | $ | 0.6 | $ | 0.1 | Other current assets | $ | 0.5 | $ | 0 | |||||||||
Commodity derivatives | Other current liabilities | 0.3 | - | Other current liabilities | 0 | 1.3 | |||||||||||||
Foreign exchange contracts | Other current assets | 0.2 | 0.1 | Other current assets | 0.1 | 0.1 | |||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||
Commodity derivatives | Other current liabilities | $ | - | $ | 0.2 | ||||||||||||||
Foreign exchange contracts | Other current assets | - | 0.2 | Other current liabilities | $ | 0 | $ | 0 | |||||||||||
Foreign exchange contracts | Other current liabilities | 0.5 | 0.6 |
Gain (loss) recognized in other comprehensive income | Statement of Operations | Gain (loss) reclassified from AOCI | Gain (loss) recognized in other comprehensive income | Statement of Operations | Gain (loss) reclassified from AOCI | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | Location | 2019 | 2018 | 2017 | 2021 | 2020 | 2019 | Location | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | (0.3 | ) | $ | 0.2 | $ | - | Cost of sales | $ | (0.4 | ) | $ | - | $ | - | $ | 2.2 | $ | (2.6 | ) | $ | (0.3 | ) | Cost of sales | $ | 0 | $ | (0.8 | ) | $ | (0.4 | ) | ||||||||||||||||||
Foreign exchange contracts | (0.4 | ) | 0.1 | - | Net sales | (0.4 | ) | 0.1 | - | 0 | (0.1 | ) | (0.4 | ) | Net sales | 0 | (0.1 | ) | (0.4 | ) | ||||||||||||||||||||||||||||||
Foreign exchange contracts | 1.0 | - | - | Cost of sales | 0.6 | - | - | (0.1 | ) | 0.2 | 1.0 | Cost of sales | (0.1 | ) | 0.4 | 0.6 | ||||||||||||||||||||||||||||||||||
Total gains (losses) | $ | 0.3 | $ | 0.3 | $ | - | $ | (0.2 | ) | $ | 0.1 | $ | - | $ | 2.1 | $ | (2.5 | ) | $ | 0.3 | $ | (0.1 | ) | $ | (0.5 | ) | $ | (0.2 | ) |
Years ended March 31, | |||||||||||||||||||||||||||
Statement of Operations Location | 2019 | 2018 | 2017 | ||||||||||||||||||||||||
Commodity derivatives | Cost of sales | $ | - | $ | 0.4 | $ | 0.5 | ||||||||||||||||||||
_ | Years ended March 31, | ||||||||||||||||||||||||||
_ | Statement of Operations Location | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Foreign exchange contracts | Net sales | (0.7 | ) | (0.1 | ) | - | Net sales | $ | 0 | $ | (0.1 | ) | $ | (0.7 | ) | ||||||||||||
Foreign exchange contracts | Other income (expense) - net | (0.3 | ) | (0.5 | ) | 1.3 | Other income (expense) - net | 0.6 | (0.1 | ) | (0.3 | ) | |||||||||||||||
Total gains (losses) | $ | (1.0 | ) | $ | (0.2 | ) | $ | 1.8 | $ | 0.6 | $ | (0.2 | ) | $ | (1.0 | ) |
Note 21: Accumulated Other Comprehensive Loss |
Foreign Currency Translation | Defined Benefit Plans | Cash Flow Hedges | Total | |||||||||||||
Balance, March 31, 2018 | $ | (5.5 | ) | $ | (134.9 | ) | $ | 0.1 | $ | (140.3 | ) | |||||
Other comprehensive income (loss) before reclassifications | (37.9 | ) | (7.1 | ) | 0.3 | (44.7 | ) | |||||||||
Reclassifications: | ||||||||||||||||
Amortization of unrecognized net loss (a) | - | 5.4 | - | 5.4 | ||||||||||||
Foreign currency translation losses (b) | 0.8 | - | - | 0.8 | ||||||||||||
Realized losses - net (c) | - | - | 0.2 | 0.2 | ||||||||||||
Income taxes | - | 0.3 | (0.1 | ) | 0.2 | |||||||||||
Total other comprehensive income (loss) | (37.1 | ) | (1.4 | ) | 0.4 | (38.1 | ) | |||||||||
Balance, March 31, 2019 | $ | (42.6 | ) | $ | (136.3 | ) | $ | 0.5 | $ | (178.4 | ) | |||||
Foreign Currency Translation | Defined Benefit Plans | Cash Flow Hedges | Total | |||||||||||||
Balance, March 31, 2017 | $ | (46.8 | ) | $ | (135.0 | ) | $ | - | $ | (181.8 | ) | |||||
Other comprehensive income (loss) before reclassifications | 41.3 | (5.7 | ) | 0.3 | 35.9 | |||||||||||
Reclassifications: | ||||||||||||||||
Amortization of unrecognized net loss (a) | - | 5.6 | - | 5.6 | ||||||||||||
Realized gains - net (c) | - | - | (0.1 | ) | (0.1 | ) | ||||||||||
Income taxes | - | 0.2 | (0.1 | ) | 0.1 | |||||||||||
Total other comprehensive income | 41.3 | 0.1 | 0.1 | 41.5 | ||||||||||||
Balance, March 31, 2018 | $ | (5.5 | ) | $ | (134.9 | ) | $ | 0.1 | $ | (140.3 | ) |
Foreign Currency Translation | Defined Benefit Plans | Cash Flow Hedges | Total | |||||||||||||
Balance, March 31, 2020 | $ | (61.4 | ) | $ | (160.9 | ) | $ | (1.0 | ) | $ | (223.3 | ) | ||||
Other comprehensive income before reclassifications | 30.4 | 33.8 | 2.1 | 66.3 | ||||||||||||
Reclassifications: | ||||||||||||||||
Amortization of unrecognized net loss (a) | 0 | 6.7 | 0 | 6.7 | ||||||||||||
Realized losses - net (b) | 0 | 0 | 0.1 | 0.1 | ||||||||||||
Income taxes | 0 | (10.4 | ) | (0.6 | ) | (11.0 | ) | |||||||||
Total other comprehensive income | 30.4 | 30.1 | 1.6 | 62.1 | ||||||||||||
Balance, March 31, 2021 | $ | (31.0 | ) | $ | (130.8 | ) | $ | 0.6 | $ | (161.2 | ) |
Foreign Currency Translation | Defined Benefit Plans | Cash Flow Hedges | Total | |||||||||||||
Balance, March 31, 2019 | $ | (42.6 | ) | $ | (136.3 | ) | $ | 0.5 | $ | (178.4 | ) | |||||
Other comprehensive loss before reclassifications | (18.2 | ) | (38.7 | ) | (2.5 | ) | (59.4 | ) | ||||||||
Reclassifications: | ||||||||||||||||
Amortization of unrecognized net loss (a) | 0 | 5.8 | 0 | 5.8 | ||||||||||||
Realized losses - net (b) | 0 | 0 | 0.5 | 0.5 | ||||||||||||
Foreign currency translation gains (c) | (0.6 | ) | 0 | 0 | (0.6 | ) | ||||||||||
Income taxes | 0 | �� | 8.3 | 0.5 | 8.8 | |||||||||||
Total other comprehensive loss | (18.8 | ) | (24.6 | ) | (1.5 | ) | (44.9 | ) | ||||||||
Balance, March 31, 2020 | $ | (61.4 | ) | $ | (160.9 | ) | $ | (1.0 | ) | $ | (223.3 | ) |
(a) | Amounts are included in the calculation of net periodic benefit cost for the Company’s defined benefit plans, which include pension and other postretirement plans. See Note 18 for additional information about the Company’s pension plans. |
(b) |
Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. See Note 19 for additional information regarding derivative instruments. |
(c) | As a result of the sale of its investment in NEX during fiscal 2020, the Company wrote off $0.6 million of accumulated foreign currency translation gains. |
Note 22: Segment and Geographic Information |
Year ended March 31, 2019 | Year ended March 31, 2021 | |||||||||||||||||||||||
External Sales | Inter-segment Sales | Total | External Sales | Inter-segment Sales | Total | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
VTS | $ | 1,298.9 | $ | 52.8 | $ | 1,351.7 | ||||||||||||||||||
BHVAC | $ | 240.3 | $ | 0.3 | $ | 240.6 | ||||||||||||||||||
CIS | 704.7 | 2.9 | 707.6 | 528.1 | 3.9 | 532.0 | ||||||||||||||||||
BHVAC | 209.1 | 3.3 | 212.4 | |||||||||||||||||||||
HDE | 648.3 | 33.8 | 682.1 | |||||||||||||||||||||
Automotive | 391.7 | 6.6 | 398.3 | |||||||||||||||||||||
Segment total | 2,212.7 | 59.0 | 2,271.7 | 1,808.4 | 44.6 | 1,853.0 | ||||||||||||||||||
Corporate and eliminations | - | (59.0 | ) | (59.0 | ) | - | (44.6 | ) | (44.6 | ) | ||||||||||||||
Net sales | $ | 2,212.7 | $ | - | $ | 2,212.7 | $ | 1,808.4 | $ | - | $ | 1,808.4 | ||||||||||||
Year ended March 31, 2018 | ||||||||||||||||||||||||
External Sales | Inter-segment Sales | Total | ||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
VTS | $ | 1,239.3 | $ | 56.4 | $ | 1,295.7 | ||||||||||||||||||
CIS | 674.4 | 1.3 | 675.7 | |||||||||||||||||||||
BHVAC | 189.4 | 1.8 | 191.2 | |||||||||||||||||||||
Segment total | 2,103.1 | 59.5 | 2,162.6 | |||||||||||||||||||||
Corporate and eliminations | - | (59.5 | ) | (59.5 | ) | |||||||||||||||||||
Net sales | $ | 2,103.1 | $ | - | $ | 2,103.1 | ||||||||||||||||||
Year ended March 31, 2017 | ||||||||||||||||||||||||
External Sales | Inter-segment Sales | Total | ||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
VTS | $ | 1,099.9 | $ | 52.3 | $ | 1,152.2 | ||||||||||||||||||
CIS | 231.5 | 0.3 | 231.8 | |||||||||||||||||||||
BHVAC | 171.6 | - | 171.6 | |||||||||||||||||||||
Segment total | 1,503.0 | 52.6 | 1,555.6 | |||||||||||||||||||||
Corporate and eliminations | - | (52.6 | ) | (52.6 | ) | |||||||||||||||||||
Net sales | $ | 1,503.0 | $ | - | $ | 1,503.0 |
Year ended March 31, 2020 | ||||||||||||
External Sales | Inter-segment Sales | Total | ||||||||||
Net sales: | ||||||||||||
BHVAC | $ | 219.4 | $ | 1.7 | $ | 221.1 | ||||||
CIS | 620.1 | 3.8 | 623.9 | |||||||||
HDE | 693.8 | 52.1 | 745.9 | |||||||||
Automotive | 442.2 | 2.7 | 444.9 | |||||||||
Segment total | 1,975.5 | 60.3 | 2,035.8 | |||||||||
Corporate and eliminations | - | (60.3 | ) | (60.3 | ) | |||||||
Net sales | $ | 1,975.5 | $ | - | $ | 1,975.5 |
Year ended March 31, 2019 | ||||||||||||
External Sales | Inter-segment Sales | Total | ||||||||||
Net sales: | ||||||||||||
BHVAC | $ | 209.1 | $ | 3.3 | $ | 212.4 | ||||||
CIS | 704.7 | 2.9 | 707.6 | |||||||||
HDE | 811.8 | 60.5 | 872.3 | |||||||||
Automotive | 487.1 | 1.8 | 488.9 | |||||||||
Segment total | 2,212.7 | 68.5 | 2,281.2 | |||||||||
Corporate and eliminations | - | (68.5 | ) | (68.5 | ) | |||||||
Net sales | $ | 2,212.7 | $ | - | $ | 2,212.7 |
Years ended March 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
Gross profit: | _$’s | % of sales | _$’s | % of sales | _$’s | % of sales | ||||||||||||||||||
BHVAC | $ | 83.0 | 34.5 | % | $ | 71.5 | 32.3 | % | $ | 63.4 | 29.9 | % | ||||||||||||
CIS | 66.5 | 12.5 | % | 92.9 | 14.9 | % | 114.9 | 16.2 | % | |||||||||||||||
HDE | 88.4 | 13.0 | % | 96.6 | 13.0 | % | 127.8 | 14.7 | % | |||||||||||||||
Automotive | 56.0 | 14.1 | % | 48.4 | 10.9 | % | 59.0 | 12.1 | % | |||||||||||||||
Segment total | 293.9 | 15.9 | % | 309.4 | 15.2 | % | 365.1 | 16.0 | % | |||||||||||||||
Corporate and eliminations | (0.5 | ) | 0 | (1.9 | ) | 0 | 0.4 | 0 | ||||||||||||||||
Gross profit | $ | 293.4 | 16.2 | % | $ | 307.5 | 15.6 | % | $ | 365.5 | 16.5 | % |
Years ended March 31, | ||||||||||||
Operating income: | 2021 | 2020 | 2019 | |||||||||
BHVAC | $ | 47.2 | $ | 36.4 | $ | 26.9 | ||||||
CIS | 8.2 | 32.9 | 53.4 | |||||||||
HDE | 36.8 | 37.8 | 65.0 | |||||||||
Automotive | (150.9 | ) | (10.0 | ) | (0.4 | ) | ||||||
Segment total | (58.7 | ) | 97.1 | 144.9 | ||||||||
Corporate and eliminations (a) | (39.0 | ) | (59.2 | ) | (35.2 | ) | ||||||
Operating (loss) income | $ | (97.7 | ) | $ | 37.9 | $ | 109.7 |
Years ended March 31, | ||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
Gross profit: | $’s | % of sales | $’s | % of sales | $’s | % of sales | ||||||||||||||||||
VTS | $ | 186.9 | 13.8 | % | $ | 201.0 | 15.5 | % | $ | 182.0 | 15.8 | % | ||||||||||||
CIS | 114.9 | 16.2 | % | 97.8 | 14.5 | % | 32.2 | 13.9 | % | |||||||||||||||
BHVAC | 63.4 | 29.9 | % | 58.0 | 30.3 | % | 47.8 | 27.8 | % | |||||||||||||||
Segment total | 365.2 | 16.1 | % | 356.8 | 16.5 | % | 262.0 | 16.8 | % | |||||||||||||||
Corporate and eliminations (a) | 0.3 | - | (0.3 | ) | - | (7.6 | ) | - | ||||||||||||||||
Gross profit | $ | 365.5 | 16.5 | % | $ | 356.5 | 17.0 | % | $ | 254.4 | 16.9 | % |
Years ended March 31, | ||||||||||||
Operating income: | 2019 | 2018 | 2017 | |||||||||
VTS | $ | 64.8 | $ | 84.2 | $ | 68.4 | ||||||
CIS | 53.4 | 28.5 | 10.9 | |||||||||
BHVAC | 26.9 | 20.3 | 13.2 | |||||||||
Segment total | 145.1 | 133.0 | 92.5 | |||||||||
Corporate and eliminations (a) | (35.4 | ) | (40.8 | ) | (50.2 | ) | ||||||
Operating income | $ | 109.7 | $ | 92.2 | $ | 42.3 |
(a) |
March 31, | March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
VTS | $ | 749.9 | $ | 754.8 | ||||||||||||
BHVAC | $ | 110.8 | $ | 102.3 | ||||||||||||
CIS | 604.2 | 630.2 | 609.2 | 617.7 | ||||||||||||
BHVAC | 89.4 | 88.1 | ||||||||||||||
Corporate and eliminations | 94.5 | 100.3 | ||||||||||||||
HDE | 438.7 | 417.4 | ||||||||||||||
Automotive (a) | 124.2 | 272.5 | ||||||||||||||
Corporate and eliminations (b) | (6.2 | ) | 126.2 | |||||||||||||
Total assets | $ | 1,538.0 | $ | 1,573.4 | $ | 1,276.7 | $ | 1,536.1 |
(a) | During fiscal 2021, the Company recorded impairment charges totaling $166.8 million within the Automotive segment, primarily related to the property, plant and equipment of the liquid- and air-cooled automotive businesses, which are classified as held for sale as of March 31, 2021. See Note 2 for additional information. |
(b) | At March 31, 2021, Corporate assets totaled $17.5 million and were more than offset by eliminations for intercompany balances, including accounts receivable. During fiscal 2021, the Company recorded income tax charges totaling $103.3 million, which established a full valuation allowance on deferred tax assets in the U.S that are recorded at Corporate. See Note 8 for additional information. |
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||
Capital expenditures: | 2019 | 2018 | 2017 | 2021 | 2020 | 2019 | ||||||||||||||||||
VTS | $ | 56.2 | $ | 61.4 | $ | 59.5 | ||||||||||||||||||
BHVAC | $ | 1.5 | $ | 3.1 | $ | 1.3 | ||||||||||||||||||
CIS | 16.4 | 9.0 | 3.4 | 6.1 | 15.0 | 16.4 | ||||||||||||||||||
BHVAC | 1.3 | 0.6 | 1.5 | |||||||||||||||||||||
HDE | 13.5 | 31.5 | 29.4 | |||||||||||||||||||||
Automotive | 11.1 | 19.1 | 24.9 | |||||||||||||||||||||
Corporate | 0.5 | 2.6 | 1.9 | |||||||||||||||||||||
Total capital expenditures | $ | 73.9 | $ | 71.0 | $ | 64.4 | $ | 32.7 | $ | 71.3 | $ | 73.9 |
Years ended March 31, | ||||||||||||
Depreciation and amortization expense: | 2021 | 2020 | 2019 | |||||||||
BHVAC | $ | 3.1 | $ | 3.4 | $ | 3.5 | ||||||
CIS | 25.0 | 24.0 | 23.9 | |||||||||
HDE | 25.5 | 25.4 | 26.3 | |||||||||
Automotive (a) | 13.2 | 22.3 | 21.2 | |||||||||
Corporate | 1.8 | 2.0 | 2.0 | |||||||||
Total depreciation and amortization | $ | 68.6 | $ | 77.1 | $ | 76.9 |
(a) | Upon classifying the liquid- and air-cooled automotive businesses as held for sale, the Company ceased depreciating the long-lived assets within the disposal groups. See Note 2 for additional information. |
Years ended March 31, | ||||||||||||
Depreciation and amortization expense: | 2019 | 2018 | 2017 | |||||||||
VTS | $ | 49.5 | $ | 48.2 | $ | 46.2 | ||||||
CIS | 23.9 | 24.3 | 7.9 | |||||||||
BHVAC | 3.5 | 4.2 | 4.2 | |||||||||
Total depreciation and amortization expense | $ | 76.9 | $ | 76.7 | $ | 58.3 |
Years ended March 31, | Years ended March 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||
United States | $ | 1,032.3 | $ | 911.4 | $ | 657.8 | $ | 765.7 | $ | 941.9 | $ | 1,032.3 | ||||||||||||
China | 217.6 | 168.5 | 172.1 | |||||||||||||||||||||
Italy | 217.3 | 211.5 | 94.4 | 188.6 | 187.4 | 217.3 | ||||||||||||||||||
China | 172.1 | 156.0 | 73.7 | |||||||||||||||||||||
Hungary | 165.6 | 153.9 | 145.6 | 153.7 | 142.4 | 165.6 | ||||||||||||||||||
United Kingdom | 96.4 | 82.0 | 86.6 | |||||||||||||||||||||
Germany | 123.1 | 132.6 | 130.1 | 83.4 | 97.5 | 123.1 | ||||||||||||||||||
Austria | 116.2 | 151.7 | 125.2 | 59.6 | 93.0 | 116.2 | ||||||||||||||||||
Other | 386.1 | 386.0 | 276.2 | 243.4 | 262.8 | 299.5 | ||||||||||||||||||
Net sales | $ | 2,212.7 | $ | 2,103.1 | $ | 1,503.0 | $ | 1,808.4 | $ | 1,975.5 | $ | 2,212.7 |
March 31, | March 31, | |||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||
United States | $ | 117.7 | $ | 121.5 | $ | 80.3 | $ | 114.6 | ||||||||
Mexico | 43.5 | 50.0 | ||||||||||||||
China | 57.6 | 49.6 | 31.3 | 56.8 | ||||||||||||
Mexico | 56.3 | 49.4 | ||||||||||||||
Italy | 30.0 | 49.8 | ||||||||||||||
Hungary | 55.3 | 59.3 | 27.6 | 55.4 | ||||||||||||
Italy | 52.4 | 62.0 | ||||||||||||||
Germany | 1.8 | 27.0 | ||||||||||||||
Austria | 36.9 | 42.8 | 0 | 26.0 | ||||||||||||
Germany | 32.8 | 37.2 | ||||||||||||||
Other | 75.7 | 82.5 | 55.4 | 68.4 | ||||||||||||
Total property, plant and equipment | $ | 484.7 | $ | 504.3 | $ | 269.9 | $ | 448.0 |
(a) | In connection with the pending sales of the liquid- and air-cooled automotive businesses within the Automotive segment, the Company wrote-down the carrying value of the disposal groups’ property, plant and equipment to zero as of March 31, 2021. The assets impaired were located in Hungary, Germany, Austria, China, the U.S., Italy, and the Netherlands. See Note 2 for additional information on the held for sale businesses and impairment charges recorded during fiscal 2021. |
Years ended March 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Commercial HVAC&R | $ | 674.0 | $ | 648.3 | $ | 323.8 | ||||||
Automotive | 542.8 | 526.0 | 461.0 | |||||||||
Commercial vehicle | 387.6 | 381.7 | 382.5 | |||||||||
Off-highway | 314.1 | 271.2 | 202.8 | |||||||||
Data center cooling | 187.0 | 137.6 | 57.1 | |||||||||
Industrial cooling | 47.8 | 67.6 | 18.6 | |||||||||
Other | 59.4 | 70.7 | 57.2 | |||||||||
Net sales | $ | 2,212.7 | $ | 2,103.1 | $ | 1,503.0 |
Fiscal 2019 quarters ended | ||||||||||||||||||||
June | Sept. | Dec. | March | Fiscal 2019 | ||||||||||||||||
Net sales | $ | 566.1 | $ | 548.9 | $ | 541.0 | $ | 556.7 | $ | 2,212.7 | ||||||||||
Gross profit | 94.3 | 87.9 | 91.7 | 91.6 | 365.5 | |||||||||||||||
Net earnings (a) | 22.5 | 38.7 | 18.3 | 6.4 | 85.9 | |||||||||||||||
Net earnings attributable to Modine (a) | 22.0 | 38.5 | 18.0 | 6.3 | 84.8 | |||||||||||||||
Net earnings per share attributable to Modine shareholders: | ||||||||||||||||||||
Basic | $ | 0.43 | $ | 0.76 | $ | 0.36 | $ | 0.12 | $ | 1.67 | ||||||||||
Diluted | 0.43 | 0.75 | 0.35 | 0.12 | 1.65 | |||||||||||||||
Fiscal 2018 quarters ended | ||||||||||||||||||||
June | Sept. | Dec. | March | Fiscal 2018 | ||||||||||||||||
Net sales | $ | 515.5 | $ | 508.3 | $ | 512.7 | $ | 566.6 | $ | 2,103.1 | ||||||||||
Gross profit | 88.5 | 86.1 | 85.4 | 96.5 | 356.5 | |||||||||||||||
Net earnings (loss) (b) | 17.4 | 16.3 | (27.9 | ) | 18.0 | 23.8 | ||||||||||||||
Net earnings (loss) attributable to Modine (b) | 17.0 | 15.9 | (28.3 | ) | 17.6 | 22.2 | ||||||||||||||
Net earnings (loss) per share attributable to Modine shareholders: | ||||||||||||||||||||
Basic | $ | 0.34 | $ | 0.32 | $ | (0.57 | ) | $ | 0.35 | $ | 0.44 | |||||||||
Diluted | 0.34 | 0.31 | (0.57 | ) | 0.34 | 0.43 |
Plan Category | Number of shares to be issued upon exercise of outstanding options, warrants or rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of shares remaining available for future issuance (excluding securities reflected in 1st column) (c) | |||||||||
Equity Compensation Plans approved by security holders | 2,175,851 | 11.63 | 1,739,787 | |||||||||
Equity Compensation Plans not approved by security holders | - | - | - | |||||||||
Total | 2,175,851 | 11.63 | 1,739,787 |
(b) | The weighted average exercise price does not take into account awards of restricted stock units or performance stock which do not have an exercise price. |
(c) | Includes the number of shares remaining available for future issuance under the 2020 Incentive Compensation Plan. |
Page in Form 10-K | ||
1. The consolidated financial statements of Modine Manufacturing Company and its subsidiaries filed under Item 8: | ||
Consolidated Statements of Operations for the years ended March 31, | ||
Consolidated Statements of Comprehensive Income for the years ended March 31, | ||
Consolidated Balance Sheets at March 31, | ||
Consolidated Statements of Cash Flows for the years ended March 31, | ||
Consolidated Statements of Shareholders’ Equity for the years ended March 31, | ||
Notes to Consolidated Financial Statements | ||
Report of Independent Registered Public Accounting Firm | ||
2. Financial Statement Schedules | ||
The following financial statement schedule should be read in conjunction with the consolidated financial statements set forth in Item 8: | ||
Schedule II -- Valuation and Qualifying Accounts for the years ended March 31, 2021, 2020 and 2019 | ||
Schedules other than those listed above are omitted because they are not applicable, not required, or because the required information is included in the consolidated financial statements and the notes thereto. | ||
3. Exhibits and Exhibit Index. | ||
See the Exhibit Index included as the last part of this report, which is incorporated herein by reference. Each management contract and compensatory plan or arrangement required to be filed as an exhibit to this report is identified in the Exhibit Index by an asterisk following its exhibit number. |
Additions | Additions | ||||||||||||||||||||||||||||||||||||
Description | Balance at Beginning of Period | Charged (Benefit) to Costs and Expenses | Charged to Other Accounts | Balance at End of Period | Balance at Beginning of Period | Charged (Benefit) to Costs and Expenses | Charged to Other Accounts | Reclassified as Held for Sale | Balance at End of Period | ||||||||||||||||||||||||||||
2021: Valuation Allowance for Deferred Tax Assets | $ | 46.9 | $ | 86.2 | $ | 2.8 | (a) | $ | (45.2 | ) | $ | 90.7 | |||||||||||||||||||||||||
2020: Valuation Allowance for Deferred Tax Assets | $ | 43.4 | $ | 4.5 | $ | (1.0 | )(a) | $ | 0 | $ | 46.9 | ||||||||||||||||||||||||||
2019: Valuation Allowance for Deferred Tax Assets | $ | 48.9 | $ | (1.6 | ) | $ | (3.9 | ) | (a) | $ | 43.4 | $ | 48.9 | $ | (1.6 | ) | $ | (3.9 | )(a) | $ | 0 | $ | 43.4 | ||||||||||||||
2018: Valuation Allowance for Deferred Tax Assets | $ | 49.6 | $ | (6.7 | ) | $ | 6.0 | (a) | $ | 48.9 | |||||||||||||||||||||||||||
2017: Valuation Allowance for Deferred Tax Assets | $ | 50.8 | $ | (0.3 | ) | $ | (0.9 | ) | (a) | $ | 49.6 |
(a) | Foreign currency translation and other adjustments. |
Exhibit No. | Description | Incorporated Herein By Referenced To | Filed Herewith | ||
Securities and Asset Purchase Agreement, dated as of November 2, 2020, by and between the Company and Dana Incorporated. | Exhibit 2.1 to Registrant’s Current Report on Form 8-K dated November 2, 2020 | ||||
Amended and Restated Articles of Incorporation, as amended. | Exhibit 3.1 to Form 10-K for the fiscal year ended March 31, 2018 | ||||
Bylaws, as amended. | Exhibit 3.1 to Registrant’s Current Report on Form 8-K dated | June 17, 2020 | |||
Form of Stock Certificate of the Registrant. | Exhibit 4(a) to Form 10-K for the fiscal year ended March 31, 2003 (“2003 10-K”) | ||||
Amended and Restated Articles of Incorporation, as amended. | See Exhibit 3.1 hereto. | ||||
Amended and Restated Collateral Agency Intercreditor Agreement (the “Original Intercreditor Agreement”) dated as of August 12, 2010 among the Lenders (as defined therein), the Noteholders (as defined therein) and JPMorgan Chase Bank, N.A. as Collateral Agent. | Exhibit 4.3 to August 12, 2010 8-K | ||||
First Amendment to the Original Intercreditor Agreement, among the Lenders, the Note Holders and JPMorgan as Collateral Agent, pursuant to which the Lenders, the Note Holders and JPMorgan amended the Original Intercreditor Agreement. | Exhibit 4.3 to August 30, 2013 8-K | |||||
Credit Facility Agreement among Modine Holding GmbH, Modine Europe GmbH and Deutsche Bank AG dated as of April 27, 2012. | Exhibit 4.10 to Registrant’s Form 10-K for the fiscal year ended March 31, 2012 | |||||
Description of Registrant’s securities | Exhibit 4.14 to Registrant’s Form 10-K for fiscal year ended March 31, 2020 | |||||
June 28, 2019. | Exhibit 4.1 to Registrant’s Current Report on Form 8-K dated | June 28, 2019 | ||||
Second Amended and Restated Note Purchase and Private Shelf Agreement dated as of | August 6, 2019 | Exhibit | Registrant’s Form 10-Q for the third quarter ended December 31, 2019 | |||
Exhibit 4.2 to Registrant’s | third quarter ended December 31, 2019 | |||||
First Amendment to Fourth Amended and Restated Credit Agreement dated as of May 19, 2020 | Exhibit 4.1 to Registrant’s Current Report on Form 8-K dated May 19, 2020 (“May 19, 2020 8-K”) |
Second Amendment to Second Amended and Restated Note Purchase and Private Shelf Agreement dated as of May 19, 2020 | Exhibit 4.2 to May 19, 2020 8-K | ||||
Amendment No. 2 to Fourth Amended and Restated Credit Agreement dated as of May 18, 2021 | Exhibit 4.1 to Registrant’s Current Report on Form 8-K dated May 18, 2021 (“May 18, 2021 8-K”) | ||||
Third Amendment to Second Amended and Restated Note Purchase and Private Shelf Agreement dated as of May 18, 2021 | Exhibit 4.2 to May 18, 2021 8-K | ||||
Director Emeritus Retirement Plan effective April 1, 1992 (and frozen as of July 1, 2000). | Exhibit 10(a) to Registrant’s Form 10-K for the fiscal year ended March 31, 2002 | ||||
Employment Agreement between the Registrant and Thomas A. Burke dated as of June 15, 2007. | Exhibit 10.3 to Registrant’s Current Report on Form 8-K dated June 15, 2007 | ||||
Form of Amendment No. 1 to Employment Agreement entered into as of July 1, 2008 with Thomas A. Burke. | Exhibit 10.1 to Registrant’s Current Report on Form 8-K dated July 1, 2008 | ||||
Form of Change in Control and Termination Agreement (amended and restated) between the Registrant and officers other than | Neil Brinker. | Exhibit 10(f) to Registrant’s Form 10-K for the fiscal year ended March 31, 2004 | |||
Executive Supplemental Retirement Plan (as amended). | Exhibit 10(f) to Registrant’s Form 10-K for the fiscal year ended March 31, 2000 | ||||
Deferred Compensation Plan (as amended). | Exhibit 10(y) to 2003 10-K | ||||
2008 Incentive Compensation Plan (Amended and Restated effective May 7, 2014). | Exhibit 10.1 to Registrant’s Current Report on Form 8-K dated July 17, 2014 | ||||
Form of Fiscal | Exhibit 10.1 to Registrant’s Form |
2020 8-K”) | |||||
Form of Fiscal | Exhibit | 2020 8-K | |||
Form of Fiscal | Exhibit | 2020 8-K | |||
Form of Fiscal 2021 Restricted Stock Unit Award Agreement. | Exhibit 10.4 to September 30, 2020 8-K | ||||
Amendment No. 1 to Form of Change in Control and Termination Agreement (amended and restated) between the Registrant and Officers other than | Neil Brinker. | Exhibit 10.17 to Registrant’s Form 10-K for the fiscal year ended March 31, 2011 | |||
Supplemental Severance Policy. | Exhibit 10.1 to Registrant’s Current Report on Form 8-K dated October 17, 2011 | ||||
2017 Incentive Compensation Plan. | Exhibit 10.1 to Registrant’s Current Report on Form 8-K dated July 20, 2017 | ||||
Form of Fiscal | Award. | Exhibit | 8-K dated July 23, 2020 (“July 23, 2020 8-K”) | ||
Transition and Separation Agreement between Thomas A. Burke and Modine Manufacturing Company effective as of August 4, 2020. | Exhibit 10.6 to the Registrant’s Form 10-Q for the second quarter ended September 30, 2020 | ||||
[Corrected] Offer Letter dated as of November 10, 2020, by and between the Company and Neil Brinker. | Exhibit 10.1 to the Registrant’s Form 10-Q for the third quarter ended December 31, 2020 (“December 31, 2020 10-Q”) |
Employment Retention Agreement for Scott Wollenberg, dated as of July 26, 2019. | Exhibit 10.5 to the Registrant’s Form 10-Q for the first quarter ended June 30, 2019 | ||||
Form of Make-Whole RSU Award Agreement with Neil Brinker. | Exhibit 10.2 to December 31, 2020 10-Q | ||||
Form of Make-Whole Performance Cash Award Agreement with Neil Brinker. | Exhibit 10.3 to December 31, 2020 10-Q | ||||
2020 Incentive Compensation Plan. | Exhibit 10.1 to July 23, 2020 8-K | ||||
Separation Letter Agreement between the Company and Scott L. Bowser, effective as of March 16, 2021. | X | ||||
Form of Retention Letter, effective August 31, 2020, between the Company and each of Michael B. Lucareli, Scott L. Bowser and Sylvia A. Stein. | Exhibit 10.1 to Registrant’s Current Report on Form 8-K dated August 31, 2020 | ||||
List of subsidiaries of the Registrant. | X | ||||
Consent of independent registered public accounting firm. | X | ||||
Rule 13a-14(a)/15d-14(a) Certification of | X | ||||
Rule 13a-14(a)/15d-14(a) Certification of Michael B. Lucareli, Executive Vice President, | X | ||||
Section 1350 Certification of | X | ||||
Section 1350 Certification of Michael B. Lucareli, Executive Vice President, | X | ||||
101.INS | Instance Document | X | |||
101.SCH | XBRL Taxonomy Extension Schema | X | |||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | |||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | |||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | |||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X | |||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | X |
Date: May | Modine Manufacturing Company | |
By: | /s/ Neil D. Brinker | |
Neil D. Brinker, President | ||
and Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ | Neil D. Brinker |
President, Chief Executive Officer and Director | |
(Principal Executive Officer) | May 27, 2021 |
/s/ Michael B. Lucareli Michael B. Lucareli Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) | May 27, 2021 |
/s/ Marsha C. Williams Marsha C. Williams Chairperson, Board of Directors | May 27, 2021 |
/s/ Eric D. Ashleman Eric D. Ashleman Director | May 27, 2021 |
/s/ David G. Bills David G. Bills Director | May 27, 2021 |
/s/ Charles P. Cooley Charles P. Cooley Director | May 27, 2021 |
/s/ Suresh V. Garimella Suresh V. Garimella Director | May 27, 2021 |
/s/ Larry O. Moore Larry O. Moore Director | May 27, 2021 |
/s/ Christopher W. Patterson Christopher W. Patterson Director | May 27, 2021 |
/s/ Christine Y. Yan | |
Christine Y. Yan Director | May |
27, 2021 |