Cover Page
Cover Page - shares | 3 Months Ended | |
Nov. 30, 2019 | Jan. 06, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-16583 | |
Entity Registrant Name | ACUITY BRANDS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 58-2632672 | |
Entity Address, Address Line One | 1170 Peachtree Street, N.E. | |
Entity Address, Address Line Two | Suite 2300 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30309 | |
City Area Code | 404 | |
Local Phone Number | 853-1400 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | AYI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,619,706 | |
Entity Central Index Key | 0001144215 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --08-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Nov. 30, 2019 | Aug. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 266.6 | $ 461 |
Accounts receivable, less reserve for doubtful accounts of $1.1 and $1.0, respectively | 507.7 | 561 |
Inventories | 352.6 | 340.8 |
Prepayments and other current assets | 79.5 | 79 |
Total current assets | 1,206.4 | 1,441.8 |
Property, plant, and equipment, net | 278.4 | 277.3 |
Operating lease right-of-use assets | 60.1 | |
Goodwill | 1,115.5 | 967.3 |
Intangible assets, net | 621.5 | 466 |
Deferred income taxes | 2.3 | 2.3 |
Other long-term assets | 21 | 17.7 |
Total assets | 3,305.2 | 3,172.4 |
Current liabilities: | ||
Accounts payable | 321.7 | 338.8 |
Current maturities of long-term debt | 9.2 | 9.1 |
Current operating lease liabilities | 16.7 | |
Accrued compensation | 50.5 | 73.2 |
Other accrued liabilities | 174.5 | 175 |
Total current liabilities | 572.6 | 596.1 |
Long-term debt | 347.1 | 347.5 |
Long-term operating lease liabilities | 49.4 | |
Accrued pension liabilities | 98.7 | 99.7 |
Deferred income taxes | 122.7 | 92.7 |
Self-insurance reserves | 7.2 | 6.8 |
Other long-term liabilities | 120.2 | 110.7 |
Total liabilities | 1,317.9 | 1,253.5 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized; 53,847,197 and 53,778,155 issued, respectively | 0.5 | 0.5 |
Paid-in capital | 942.8 | 930 |
Retained earnings | 2,347.6 | 2,295.8 |
Accumulated other comprehensive loss | (147.6) | (151.4) |
Treasury stock, at cost — 14,325,197 and 14,325,197 shares, respectively | (1,156) | (1,156) |
Total stockholders’ equity | 1,987.3 | 1,918.9 |
Total liabilities and stockholders’ equity | $ 3,305.2 | $ 3,172.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Nov. 30, 2019 | Aug. 31, 2019 |
Current assets: | ||
Allowance for doubtful accounts | $ 1.1 | $ 1 |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 53,847,197 | 53,778,155 |
Treasury stock, shares (shares) | 14,325,197 | 14,325,197 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 834.7 | $ 932.6 |
Cost of products sold | 478.9 | 565.1 |
Gross profit | 355.8 | 367.5 |
Selling, distribution, and administrative expenses | 265.3 | 250.1 |
Special charges | 6.9 | 1 |
Operating profit | 83.6 | 116.4 |
Other expense: | ||
Interest expense, net | 8.3 | 8.7 |
Miscellaneous expense, net | 1.4 | 1.3 |
Total other expense | 9.7 | 10 |
Income before income taxes | 73.9 | 106.4 |
Income tax expense | 16.9 | 26.8 |
Net income | $ 57 | $ 79.6 |
Earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 1.44 | $ 1.99 |
Basic weighted average number of shares outstanding (in shares) | 39.5 | 40 |
Diluted earnings per share (in dollars per share) | $ 1.44 | $ 1.98 |
Diluted weighted average number of shares outstanding (in shares) | 39.6 | 40.1 |
Dividends declared per share (in dollars per share) | $ 0.13 | $ 0.13 |
Comprehensive income: | ||
Net income | $ 57 | $ 79.6 |
Other comprehensive income (loss) items: | ||
Foreign currency translation adjustments | 1.9 | (8.8) |
Defined benefit plans, net of tax | 1.9 | 2.6 |
Other comprehensive income (loss) items, net of tax | 3.8 | (6.2) |
Comprehensive income | $ 60.8 | $ 73.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 57 | $ 79.6 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 24.2 | 21.3 |
Share-based payment expense | 16.7 | 7.8 |
Loss on sale or disposal of property, plant, and equipment | 0.1 | 0.4 |
Deferred income taxes | 0.4 | (0.1) |
Change in assets and liabilities, net of effect of acquisitions, divestitures, and exchange rate changes: | ||
Accounts receivable | 66.3 | 102 |
Inventories | 4.9 | (9.2) |
Prepayments and other current assets | (3.3) | (14.8) |
Accounts payable | (22.7) | (61.5) |
Other current liabilities | (28.3) | (1.6) |
Other | 14.3 | 7.9 |
Net cash provided by operating activities | 129.6 | 131.8 |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (11.6) | (14) |
Acquisition of businesses, net of cash acquired | (302) | 0 |
Other investing activities | (1.5) | 2.7 |
Net cash used for investing activities | (315.1) | (11.3) |
Cash flows from financing activities: | ||
Borrowings on credit facility | 0 | 55.4 |
Repayments of borrowings on credit facility | 0 | (55.4) |
Repayments of long-term debt | (0.4) | (0.1) |
Repurchases of common stock | 0 | (25) |
Proceeds from stock option exercises and other | 0.2 | 0.1 |
Payments of taxes withheld on net settlement of equity awards | (4.1) | (3.9) |
Dividends paid | (5.2) | (5.2) |
Net cash used for financing activities | (9.5) | (34.1) |
Effect of exchange rate changes on cash and cash equivalents | 0.6 | (0.7) |
Net change in cash and cash equivalents | (194.4) | 85.7 |
Cash and cash equivalents at beginning of period | 461 | 129.1 |
Cash and cash equivalents at end of period | 266.6 | 214.8 |
Supplemental cash flow information: | ||
Income taxes paid during the period | 4.6 | 6.1 |
Interest paid during the period | $ 12.9 | $ 13.5 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Nov. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Acuity Brands, Inc. (“Acuity Brands”) is the parent company of Acuity Brands Lighting, Inc. (“ABL”) and other wholly-owned subsidiaries (Acuity Brands, ABL, and such other subsidiaries are collectively referred to herein as “we,” “our,” “us,” “the Company,” or similar references) and was incorporated in 2001 under the laws of the State of Delaware. We are one of the world’s leading providers of lighting and building management solutions and services for commercial, institutional, industrial, infrastructure, and residential applications throughout North America and select international markets. Our lighting and building management solutions include devices such as luminaires, lighting controls, controls for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications. Additionally, we continue to expand our solutions portfolio, including software and services, to provide a host of other economic benefits resulting from data analytics that enables the Internet of Things (“IoT”), supports the advancement of smart buildings, smart cities, and the smart grid, and allows businesses to develop custom applications to scale their operations. We have one reportable segment serving the North American lighting market and select international markets. We prepared the Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) to present the financial position, results of operations, and cash flows of Acuity Brands and its wholly-owned subsidiaries. These unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly our consolidated financial position as of November 30, 2019 , our consolidated comprehensive income for the three months ended November 30, 2019 and 2018 , and our consolidated cash flows for the three months ended November 30, 2019 and 2018 . Certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. However, we believe that the disclosures included herein are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited consolidated financial statements as of and for the three years ended August 31, 2019 and notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on October 29, 2019 (File No. 001-16583) (“Form 10-K”). The results of operations for the three months ended November 30, 2019 and 2018 are not necessarily indicative of the results to be expected for the full fiscal year due primarily to seasonality, which results in our net sales and net income generally being higher in the second half of our fiscal year, the impact of any acquisitions, and, among other reasons, the continued uncertainty of general economic conditions that may impact our key end markets for the remainder of fiscal 2020 . |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Reclassifications Certain prior-period amounts have been reclassified to conform to the current year presentation. No material reclassifications occurred during the current period. |
Acquisitions
Acquisitions | 3 Months Ended |
Nov. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal 2020 Acquisitions The Luminaires Group On September 17, 2019, using cash on hand and borrowings under available existing credit arrangements, we acquired all of the equity interests of The Luminaires Group (“TLG”), a leading provider of specification-grade luminaires for commercial, institutional, hospitality, and municipal markets, all of which complement our current and dynamic lighting portfolio. TLG’s indoor and outdoor lighting fixtures are marketed to architects, landscape architects, interior designers, and engineers through five niche lighting brands: A-light, Cyclone, Eureka, Luminaire LED, and Luminis. LocusLabs, Inc. On November 25, 2019, using cash on hand, we acquired all of the equity interests of LocusLabs, Inc (“LocusLabs”). The LocusLabs software platform supports navigation applications used on mobile devices, web browsers, and digital displays in airports, event centers, multi-floor office buildings, and campuses. Accounting for Fiscal 2020 Acquisitions Acquisition-related costs were expensed as incurred. Preliminary amounts related to the acquisition accounting for TLG and LocusLabs are reflected on the Consolidated Balance Sheets as of November 30, 2019 . The aggregate purchase price of these acquisitions reflects preliminary total goodwill and identified intangible assets of approximately $147.8 million and $165.0 million , respectively, as of November 30, 2019 . Identified intangible assets consist of indefinite-lived marketing related intangibles as well as definite-lived customer-based and technology-based assets, which have a preliminary weighted average useful life of approximately 13 years . These amounts are deemed to be provisional until disclosed otherwise, as we continue to gather information related to the identification and valuation of intangible and other acquired assets and liabilities. These amounts are expected to change as we finalize the allocations. The operating results of the acquisitions have been included in our consolidated financial statements since the date of acquisition and are not material to our financial condition, results of operations, or cash flows. Fiscal 2019 Acquisitions WhiteOptics, LLC On June 20, 2019, using cash on hand, we acquired all of the equity interests of WhiteOptics, LLC (“WhiteOptics”). WhiteOptics is headquartered in New Castle, Delaware and manufactures advanced optical components used to reflect, diffuse, and control light for light emitting diode (“LED”) lighting used in commercial and institutional applications. The operating results of WhiteOptics have been included in our consolidated financial statements since the date of acquisition and are not material to our financial condition, results of operations, or cash flows. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Adopted in Fiscal 2020 Accounting Standards Codification ( “ ASC ” ) 842 — Leases (“ASC 842”) In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to include most leases on the balance sheet as lease liabilities with an associated right-of-use ("ROU") asset. Since the issuance of ASU 2016-02, the FASB released several amendments to improve and clarify the implementation guidance, as well as to change the allowable adoption methods. These standards have been collectively codified within ASC 842, Leases (“ASC 842”). We adopted ASC 842 using the modified retrospective method and applied the standard to all leases existing as of September 1, 2019. Information for prior years presented has not been restated and continues to reflect the authoritative accounting standards in effect for those periods. We elected the package of transition practical expedients that allows us to carryforward our historical assessments of whether existing contracts contain leases, determinations of lease classification, and treatments of initial direct costs. As of September 1, 2019, we recognized total operating lease liabilities of $64.7 million in our Consolidated Balance Sheets , of which $49.3 million was recorded within Long-term operating lease liabilities and $15.4 million was recorded within Current operating lease liabilities. We additionally derecognized $5.1 million of previously recorded net deferred rent balances and recorded ROU assets of $59.6 million related to our operating leases, which were reflected within Operating lease right-of-use assets in our Consolidated Balance Sheets. Accounting Standards Yet to Be Adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We are currently evaluating the impacts of the the provisions of ASU 2019-12 on our financial condition, results of operations, and cash flows. In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”), which will require customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Capitalized implementation costs will be required to be amortized over the term of the arrangement, beginning when the cloud computing arrangement is ready for its intended use. ASU 2018-15 is effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2019. The standard allows changes to be applied either retrospectively or prospectively. We will adopt the standard as required in fiscal 2021. The provisions of ASU 2018-15 are not expected to have a material effect on our financial condition, results of operations, or cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Since the issuance of ASU 2016-13, the FASB released several amendments to improve and clarify the implementation guidance. The provisions of ASU 2016-13 and the related amendments are effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2019. Entities are required to apply these changes through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We will adopt the amendments as required in fiscal 2021. The provisions of ASU 2016-13 are not expected to have a material effect on our financial condition, results of operations, or cash flows. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We determine fair value measurements based on the assumptions a market participant would use in pricing an asset or liability. ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a three-level hierarchy making a distinction between market participant assumptions based on (i) unadjusted quoted prices for identical assets or liabilities in an active market (Level 1), (ii) quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (Level 2), and (iii) prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (Level 3). Our cash and cash equivalents (Level 1), which are required to be carried at fair value and measured on a recurring basis, were $266.6 million and $461.0 million as of November 30, 2019 and August 31, 2019 , respectively. We utilize valuation methodologies to determine the fair values of our financial assets and liabilities in conformity with the concepts of “exit price” and the fair value hierarchy as prescribed in ASC 820. All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values. There were no material changes to the valuation methods or assumptions used to determine fair values during the current period. We used quoted market prices to determine the fair value of Level 1 assets and liabilities. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. Disclosures of fair value information about financial instruments (whether or not recognized in the balance sheet), for which it is practicable to estimate that value, are required each reporting period in addition to any financial instruments carried at fair value on a recurring basis as prescribed by ASC 825, Financial Instruments (“ASC 825”). In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The carrying values and estimated fair values of certain of our financial instruments (Level 2) were as follows as of the dates presented (in millions): November 30, 2019 August 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Senior unsecured public notes, net of unamortized discount and deferred costs $ 350.0 $ 350.1 $ 349.9 $ 352.7 Industrial revenue bond 4.0 4.0 4.0 4.0 Bank loans 2.3 2.4 2.7 2.9 ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to us. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating our management of liquidity and other risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories include materials, labor, inbound freight, and related manufacturing overhead, are stated at the lower of cost (on a first-in, first-out or average cost basis) and net realizable value, and consist of the following as of the dates presented (in millions): November 30, 2019 August 31, 2019 Raw materials, supplies, and work in process (1) $ 190.6 $ 179.4 Finished goods 186.8 183.7 Inventories excluding reserves 377.4 363.1 Less: Reserves (24.8 ) (22.3 ) Total inventories $ 352.6 $ 340.8 _______________________________________ (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, we do not believe the segregation of raw materials and work in process is meaningful information. |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 3 Months Ended |
Nov. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment consisted of the following as of the dates presented (in millions): November 30, 2019 August 31, 2019 Land $ 22.7 $ 22.6 Buildings and leasehold improvements 193.6 190.7 Machinery and equipment 557.7 544.4 Total property, plant, and equipment, at cost 774.0 757.7 Less: Accumulated depreciation and amortization (495.6 ) (480.4 ) Property, plant, and equipment, net $ 278.4 $ 277.3 |
Leases
Leases | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease property and equipment under operating lease arrangements, most of which relate to distribution centers and manufacturing facilities in the U.S. and Mexico. We include both the contractual term as well as any renewal option that we are reasonably certain to exercise in the determination of our lease terms. For leases with a term of greater than 12 months, we value lease liabilities and the related assets as the present value of the lease payments over the related term. We apply the short-term lease exception to leases with a term of 12 months or less and exclude such leases from our Consolidated Balance Sheets . Payments related to these short-term leases are expensed on a straight-line basis over the lease term and reflected as a component of lease cost within our Consolidated Statements of Comprehensive Income . Lease payments generally consist of fixed amounts, and variable amounts based on a market rate or an index are not material to our consolidated lease cost. We have elected to use the practical expedient present in ASC 842 to not separate lease and non-lease components for all significant underlying asset classes and instead account for them together as a single lease component in the measurement of our lease liabilities. Our leases do not contain significant terms and conditions for variable lease payments. Generally, the rate implicit in our leases is not readily determinable. Therefore, we discount future lease payments using our estimated incremental borrowing rate at lease commencement. We determine this rate based on a credit-adjusted risk-free rate, which approximates a secured rate over the lease term. The weighted average discount rate for operating leases as of November 30, 2019 was 2.2% . The following table presents the future undiscounted payments due on our operating lease liabilities as well as a reconciliation of those payments to our operating lease liabilities recorded as of the period presented (in millions): Fiscal year November 30, 2019 2020 $ 13.8 2021 15.6 2022 10.9 2023 7.8 2024 5.4 Thereafter 16.5 Total undiscounted lease payments 70.0 Less: Discount due to interest (3.9 ) Present value of lease liabilities $ 66.1 The weighted average remaining lease term for our operating leases was six years as of November 30, 2019 . The components of total lease cost were as follows for the period presented (in millions): Three Months Ended November 30, 2019 Operating lease cost $ 4.9 Variable lease cost 0.8 Short-term lease cost 0.3 Total lease cost $ 6.0 Total rent expense recognized during the three months ended November 30, 2018, prior to the adoption of ASC 842, was $5.5 million . Cash paid for operating lease liabilities during the three months ended November 30, 2019 was $4.5 million . ROU assets obtained in exchange for lease liabilities, including those obtained from recent acquisitions, during the three months ended November 30, 2019 were $5.1 million . We do not have material leases that have not yet commenced as of November 30, 2019 that create significant rights and obligations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Nov. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Through multiple acquisitions, we acquired definite-lived intangible assets consisting primarily of trademarks and trade names associated with specific products, distribution networks, patented technology, non-compete agreements, and customer relationships, which are amortized over their estimated useful lives. Indefinite-lived intangible assets consist of trade names that are expected to generate cash flows indefinitely. We recorded amortization expense of $9.6 million and $7.7 million during the three months ended November 30, 2019 and 2018 , respectively. Amortization expense is generally recorded on a straight-line basis and is expected to be approximately $41.3 million in fiscal 2020 , $39.0 million in fiscal 2021 , $38.1 million in fiscal 2022 , $36.9 million in fiscal 2023 , and $36.0 million in fiscal 2024 . The following table summarizes the changes in the carrying amount of goodwill during the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Beginning balance $ 967.3 $ 970.6 Additions from acquired businesses 147.8 — Foreign currency translation adjustments 0.4 (3.7 ) Ending balance $ 1,115.5 $ 966.9 Further discussion of goodwill and other intangible assets is included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. |
Debt and Lines of Credit
Debt and Lines of Credit | 3 Months Ended |
Nov. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Lines of Credit | Debt and Lines of Credit Lines of Credit On June 29, 2018, we entered into a credit agreement (“Credit Agreement”) with a syndicate of banks that provides us with a $400.0 million five -year unsecured revolving credit facility (“Revolving Credit Facility”) and a $400.0 million unsecured delayed draw term loan facility (“Term Loan Facility”). We had no borrowings outstanding under the current Revolving Credit Facility or Term Loan Facility as of November 30, 2019 or August 31, 2019 . Generally, amounts outstanding under the Revolving Credit Facility allow for borrowings to bear interest at either the Eurocurrency Rate or the base rate at our option, plus an applicable margin. Eurocurrency Rate advances can be denominated in a variety of currencies, including U.S. Dollars, and amounts outstanding bear interest at a periodic fixed rate equal to the London Interbank Offered Rate (“LIBOR”) or screen rate for the applicable currency plus an applicable margin. The Eurocurrency applicable margin is based on our leverage ratio, as defined in the Credit Agreement, with such margin ranging from 1.000% to 1.375% . Base rate advances bear interest at an alternate base rate plus an applicable margin. The base rate applicable margin is based on our leverage ratio, as defined in the Credit Agreement, with such margin ranging from 0.000% to 0.375% . The Term Loan Facility allows for borrowings to be drawn over a period ending December 31, 2019, utilizing up to four separate installments, which are U.S. dollar denominated. Borrowings under the Term Loan Facility will amortize in equal quarterly installments of 2.5% per year in year one, 2.5% per year in year two, 5.0% per year in year three, 5.0% per year in year four, and 7.5% per year in year five. Any remaining borrowings under the Term Loan Facility are due and payable in full on June 29, 2023. The Term Loan Facility allows for borrowings to bear interest at either a Eurocurrency Rate or the base rate, at our option, in each case plus an applicable margin. Eurocurrency Rate advances can be denominated in a variety of currencies, including U.S. Dollars, and amounts outstanding bear interest at a periodic fixed rate equal to the LIBOR or screen rate for the applicable currency plus an applicable margin. The Eurocurrency applicable margin is based on our leverage ratio, as defined in the Credit Agreement, with such margin ranging from 0.875% to 1.250% . Base Rate advances bear interest at an alternate base rate plus an applicable margin. The base rate applicable margin is based on our leverage ratio, as defined in the Credit Agreement, with such margin ranging from 0.0% to 0.25% . We are required to pay certain fees in connection with the Credit Agreement, including administrative service fees and annual facility fees. The annual facility fee is payable quarterly, in arrears, and is determined by our leverage ratio as defined in the Credit Agreement. The facility fee ranges from 0.125% to 0.25% of the aggregate $800.0 million commitment of the lenders under the Credit Agreement. The Credit Agreement contains financial covenants, including a minimum interest expense coverage ratio (“Minimum Interest Expense Coverage Ratio”) and a leverage ratio (“Maximum Leverage Ratio”) of total indebtedness to earnings before interest, tax, depreciation, and amortization (“EBITDA”), as such terms are defined in the Credit Agreement. These ratios are computed at the end of each fiscal quarter for the most recent 12-month period. The Credit Agreement generally allows for a Minimum Interest Expense Coverage Ratio of 2.50 and a Maximum Leverage Ratio of 3.50 , subject to certain conditions, as such terms are defined in the Credit Agreement. We were in compliance with all financial covenants under the Credit Agreement as of November 30, 2019 . At November 30, 2019 , we had additional borrowing capacity under the Credit Agreement of $796.2 million under the most restrictive covenant in effect at the time, which represents the full amount of the Revolving Credit Facility and the Term Loan Facility less the outstanding letters of credit of $3.8 million issued under the Revolving Credit Facility. As of November 30, 2019 , we had outstanding letters of credit totaling $8.1 million , primarily for securing collateral requirements under our casualty insurance programs and for providing credit support for our industrial revenue bond, which includes the $3.8 million issued under the Revolving Credit Facility. Borrowings and repayments on our Revolving Credit Facility with terms of three months or less are reported on a net basis on our Consolidated Statements of Cash Flows . Long-term Debt At November 30, 2019 , we had $350.0 million of publicly-traded, senior unsecured notes outstanding at a 6% interest rate that matured in December 2019 (the “Unsecured Notes”). On December 16, 2019, we repaid the Unsecured Notes and accrued interest in full with borrowings under our Term Loan Facility. Because approximately $341.2 million of the borrowings under the Term Loan Facility are due greater than one year from the refinancing date, $341.2 million of the carrying value of the Unsecured Notes is reflected within Long-term debt on the Consolidated Balance Sheets as of November 30, 2019 . We also had $4.0 million of tax-exempt industrial revenue bonds that are scheduled to mature in 2021 and $2.3 million outstanding under fixed-rate bank loans outstanding at November 30, 2019 . Further discussion of our long-term debt is included within the Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Interest Expense, net Interest expense, net , is comprised primarily of interest expense on long-term debt and obligations in connection with non-qualified retirement benefits and Revolving Credit Facility borrowings, partially offset by interest income earned on cash and cash equivalents. The following table summarizes the components of interest expense, net for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Interest expense $ 9.0 $ 9.2 Interest income (0.7 ) (0.5 ) Interest expense, net $ 8.3 $ 8.7 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, we are subject to the effects of certain contractual stipulations, events, transactions, and laws and regulations that may, at times, require the recognition of liabilities, such as those related to self-insurance reserves and claims, legal and contractual issues, environmental laws and regulations, guarantees, and indemnities. We establish reserves when the associated costs related to uncertainties or guarantees become probable and can be reasonably estimated. For the period ended November 30, 2019 , no material changes have occurred in our reserves for self-insurance, litigation, environmental matters, guarantees and indemnities, or relevant events and circumstances, from those disclosed in the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Product Warranty and Recall Costs Our products generally have a standard warranty term of five years that assure our products comply with agreed upon specifications. We record a reserve for the estimated amount of future warranty costs when the related revenue is recognized. Estimated costs related to product recalls based on a formal campaign soliciting repair or return of that product are accrued when they are deemed to be probable and can be reasonably estimated. Estimated future warranty and recall costs are primarily based on historical experience of identified warranty and recall claims. However, there can be no assurance that future warranty or recall costs will not exceed historical amounts or that new technology products may not generate unexpected costs. If actual future warranty or recall costs exceed historical amounts, additional reserves may be required, which could have a material adverse impact on our results of operations and cash flows. Reserves for product warranty and recall costs are included in Other accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. The following table summarizes changes in the reserves for product warranty and recall costs for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Beginning balance $ 11.5 $ 27.3 Warranty and recall costs 7.9 5.4 Payments and other deductions (7.8 ) (5.6 ) Acquired warranty and recall liabilities 0.1 — ASC 606 adjustments (1) — (14.8 ) Ending balance $ 11.7 $ 12.3 ______________________________ (1) Certain service-type warranties accounted for as contingent liabilities prior to the adoption of ASC 606, Revenue from Contracts with Customers (“ASC 606”), are now reflected as contract liabilities effective September 1, 2018. Lighting Science Group Patent Litigation On April 30, 2019 and May 1, 2019, Lighting Science Group Corp. (“LSG”) filed complaints in the International Trade Commission and United States District Court for the District of Delaware, respectively, alleging infringement of eight patents by the Company and others. On May 17, 2019, LSG amended both of its complaints and dropped its claims regarding one of the patents. For the remaining seven patents, LSG’s infringement allegations relate to certain of our LED luminaires and related systems. LSG seeks orders from the International Trade Commission to preclude the importation and sale of the accused products. LSG seeks unspecified monetary damages, costs, and attorneys’ fees in the District of Delaware action. We dispute and have numerous defenses to the allegations, and we intend to vigorously defend against LSG’s claims. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and a request for an exclusion order and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, we currently are unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from these matters. Securities Class Action On January 3, 2018, a shareholder filed a class action complaint in the United States District Court for the District of Delaware against us and certain of our officers on behalf of all persons who purchased or otherwise acquired our stock between June 29, 2016 and April 3, 2017. On February 20, 2018, a different shareholder filed a second class action complaint in the same venue against the same parties on behalf of all persons who purchased or otherwise acquired our stock between October 15, 2015 and April 3, 2017. The cases were transferred on April 30, 2018, to the United States District Court for the Northern District of Georgia and subsequently were consolidated as In re Acuity Brands, Inc. Securities Litigation, Civil Action No. 1:18-cv-02140-MHC (N.D. Ga.). On October 5, 2018, the court-appointed lead plaintiff filed a consolidated amended class action complaint (the “Consolidated Complaint”), which supersedes the initial complaints. The Consolidated Complaint is brought on behalf of all persons who purchased our common stock between October 7, 2015 and April 3, 2017 and alleges that we and certain of our current officers and one former executive violated the federal securities laws by making false or misleading statements and/or omitting to disclose material adverse facts that (i) concealed known trends negatively impacting sales of our products and (ii) overstated our ability to achieve profitable sales growth. The plaintiffs seek class certification, unspecified monetary damages, costs, and attorneys’ fees. We dispute the allegations in the complaints and intend to vigorously defend against the claims. We filed a motion to dismiss the Consolidated Complaint. On August 12, 2019, the court entered an order granting our motion to dismiss in part and dismissing all claims based on 42 of the 47 statements challenged in the Consolidated Complaint but also denying the motion in part and allowing claims based on five challenged statements to proceed to discovery. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, we are currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from the matters described above. We are insured, in excess of a self-retention, for Directors and Officers liability. Trade Compliance Matters In the course of routine reviews of import and export activity, we previously determined that we misclassified and/or inaccurately valued certain international shipments of products. We are conducting a detailed review of this activity to determine the extent of any liabilities and implementing the appropriate remedial measures. At this time, we are unable to determine the likelihood or amount of loss, if any, associated with these shipments. Litigation We are subject to various other legal claims arising in the normal course of business, including patent infringement, employment matters, and product liability claims. Based on information currently available, it is the opinion of management that the ultimate resolution of pending and threatened legal proceedings will not have a material adverse effect on our financial condition, results of operations, or cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of any such matters, if unfavorable, could have a material adverse effect on our financial condition, results of operations, or cash flows in future periods. We establish reserves for legal claims when associated costs become probable and can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher than the amounts reserved for such claims. However, we cannot make a meaningful estimate of actual costs to be incurred that could possibly be higher or lower than the amounts reserved . |
Changes in Stockholders' Equity
Changes in Stockholders' Equity | 3 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Changes in Stockholders' Equity | Changes in Stockholders' Equity The following tables summarize changes in the components of stockholders' equity for the periods presented (in millions): Common Stock Outstanding Shares Amount Paid-in Capital Retained Earnings Accumulated Other Treasury Stock, at cost Total Balance, August 31, 2019 39.5 $ 0.5 $ 930.0 $ 2,295.8 $ (151.4 ) $ (1,156.0 ) $ 1,918.9 Net income — — — 57.0 — — 57.0 Other comprehensive income — — — — 3.8 — 3.8 Share-based payment amortization, issuances, and cancellations — — 12.6 — — — 12.6 Employee stock purchase plan issuances — — 0.2 — — — 0.2 Cash dividends of $0.13 per share paid on common stock — — — (5.2 ) — — (5.2 ) Balance, November 30, 2019 39.5 $ 0.5 $ 942.8 $ 2,347.6 $ (147.6 ) $ (1,156.0 ) $ 1,987.3 Common Stock Outstanding Shares Amount Paid-in Capital Retained Earnings Accumulated Other Treasury Stock, at cost Total Balance, August 31, 2018 40.0 $ 0.5 $ 906.3 $ 1,999.2 $ (114.8 ) $ (1,074.4 ) $ 1,716.8 Net income — — — 79.6 — — 79.6 Other comprehensive loss — — — — (6.2 ) — (6.2 ) ASC 606 adjustments — — — (13.0 ) — — (13.0 ) Share-based payment amortization, issuances, and cancellations 0.1 — 3.8 — — — 3.8 Employee stock purchase plan issuances — — 0.1 — — — 0.1 Cash dividends of $0.13 per share paid on common stock — — — (5.2 ) — — (5.2 ) Repurchases of common stock (0.2 ) — — — — (25.0 ) (25.0 ) Balance, November 30, 2018 39.9 $ 0.5 $ 910.2 $ 2,060.6 $ (121.0 ) $ (1,099.4 ) $ 1,750.9 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize revenue when we transfer control of goods and services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for goods and services and is recognized net of allowances for rebates, sales incentives, product returns, and discounts to customers. Further details regarding revenue recognition are included within the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Contract Balances Our rights related to collections from customers are unconditional and are reflected within Accounts receivable on the Consolidated Balance Sheets . We do not have any other significant contract assets. Contract liabilities arise when we receive cash or an unconditional right to collect cash prior to the transfer of control of goods or services. The amount of transaction price from contracts with customers allocated to our contract liabilities consists of the following as of the periods presented (in millions): November 30, 2019 August 31, 2019 Current deferred revenues $ 7.4 $ 4.7 Non-current deferred revenues 47.7 46.4 Current deferred revenues primarily consist of software licenses as well as professional service and sales-type warranty fees collected prior to performing the related service. Current deferred revenues are included within Other current liabilities on the Consolidated Balance Sheets . These services are expected to be performed within one year. Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets . Revenue recognized from beginning balances of contract liabilities during the three months ended November 30, 2019 totaled $1.6 million . Unsatisfied performance obligations as of November 30, 2019 that do not represent contract liabilities consist primarily of orders for physical goods that have not yet been shipped, which are typically shipped within a few weeks of order receipt. Disaggregated Revenues Our lighting and building management solutions are sold primarily through independent sales agents who cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, and directly to large corporate accounts. The following table shows revenue from contracts with customers by sales channel for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Independent sales network $ 618.0 $ 651.0 Direct sales network 84.3 99.0 Retail sales 53.4 85.2 Corporate accounts 33.5 51.2 Other 45.5 46.2 Total $ 834.7 $ 932.6 |
Share-based Payments
Share-based Payments | 3 Months Ended |
Nov. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payments | Share-based Payments We account for share-based payments through the measurement and recognition of compensation expense for share-based payment awards made to employees and directors over the related requisite service period, including stock options, performance share units, and restricted shares (all part of our equity incentive plan), as well as share units representing certain deferrals into our director deferred compensation plan or our supplemental deferred savings plan. We recognized share-based payment expense of $16.7 million and $7.8 million during the three months ended November 30, 2019 and 2018 , respectively. Further details regarding our stock options, restricted shares, and director compensation award programs and our share-based payments are included within the Share-based Payments footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Equity Plan Updates During the current period, the Board of Directors (the “Board”) approved grants of performance share units to certain executives and key employees. These shares vest over a three-year period and are valued at the closing stock price on the date of grant. The actual number of performance shares earned will be determined at the end of the three-year period based on the level of achievement of established performance thresholds. We recognize compensation expense for these awards proportionately over the requisite service period for each employee when it becomes probable that the performance metric will be satisfied. As of November 30, 2019 , we had approximately 37,000 performance share units outstanding. Additionally, effective for restricted stock and performance share grants awarded in October 2019 and thereafter, the Board reinstated a policy that provides for the continued vesting of stock awards following retirement for all eligible participants who have attained age 60 and have at least 10 years of service with the Company. As such, for awards granted in October 2019 and later, we deem the requisite service period for a participant to be the shorter of either the award's stated vesting period or the time from grant until the participant satisfies the age and service criteria. |
Pension Plans
Pension Plans | 3 Months Ended |
Nov. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans We have several pension plans, both qualified and non-qualified, covering certain hourly and salaried employees. Benefits paid under these plans are based generally on employees’ years of service and/or compensation during the final years of employment. We make at least the minimum annual contributions to the plans to the extent indicated by actuarial valuations and statutory requirements. Plan assets are invested primarily in equity and fixed income securities. Service cost of net periodic pension cost is allocated between Cost of products sold and Selling, distribution, and administrative expenses in the Consolidated Statements of Comprehensive Income based on the nature of the employee's services. All other components of net periodic pension cost are included within Miscellaneous expense, net in the Consolidated Statements of Comprehensive Income . Net periodic pension cost included the following components before tax for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Service cost $ 1.2 $ 0.8 Interest cost 1.8 2.2 Expected return on plan assets (3.1 ) (3.1 ) Amortization of prior service cost 1.0 0.8 Settlement loss — 0.4 Recognized actuarial loss 1.4 1.1 Net periodic pension cost $ 2.3 $ 2.2 Further details regarding our pension plans are included within the Pension and Defined Contribution Plans footnote of the Notes to Consolidated Financial Statements within our Form 10-K. |
Special Charges
Special Charges | 3 Months Ended |
Nov. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Special Charges | Special Charges During fiscal 2020 , we recognized pre-tax special charges of $6.9 million . The fiscal 2020 special charge consisted primarily of severance costs and ROU asset lease impairments related to planned facility closures. Additionally, we recognized charges for relocation costs and ROU lease asset impairment charges associated with the previously announced transfer of activities from planned facility closures. We expect these actions to streamline our business activities and to integrate recent acquisitions will allow us to reduce spending in certain areas while permitting continued investment in future growth initiatives, such as new products, expanded market presence, and technology and innovation. Further details regarding our special charges are included within the Special Charges footnote of the Notes to Consolidated Financial Statements within our Form 10-K. The following table summarizes costs reflected within Special charges on the Consolidated Statements of Comprehensive Income for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Severance and employee-related costs $ 5.1 $ (0.5 ) Other restructuring costs 1.8 1.5 Total special charges $ 6.9 $ 1.0 As of November 30, 2019 , remaining restructuring reserves were $4.8 million and are included in Accrued compensation on the Consolidated Balance Sheets . The changes in the reserves related to these programs during the period presented are summarized as follows (in millions): Fiscal 2020 Actions Fiscal 2019 Actions Fiscal 2018 Actions Total Balance at August 31, 2019 $ — $ 1.3 $ 0.6 1.9 Severance costs 5.1 — — 5.1 Payments made during the period (1.0 ) (0.8 ) (0.4 ) (2.2 ) Balance at November 30, 2019 $ 4.1 $ 0.5 $ 0.2 $ 4.8 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Nov. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings Per Share Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed similarly but reflects the potential dilution that would occur if dilutive options were exercised, all unvested share-based payment awards were vested, and other distributions related to deferred stock agreements were incurred. The following table calculates basic earnings per common share and diluted earnings per common share for the periods presented (in millions, except per share data): Three Months Ended November 30, 2019 November 30, 2018 Net income $ 57.0 $ 79.6 Basic weighted average shares outstanding 39.5 40.0 Common stock equivalents 0.1 0.1 Diluted weighted average shares outstanding 39.6 40.1 Basic earnings per share $ 1.44 $ 1.99 Diluted earnings per share $ 1.44 $ 1.98 The following table presents stock options and restricted stock awards that were excluded from the diluted earnings per share calculation for the periods presented as the effect of inclusion would have been antidilutive: Three Months Ended November 30, 2019 November 30, 2018 Stock options 278,972 212,048 Restricted stock awards 118,036 197,014 Further discussion of our stock options and restricted stock awards is included within the Common Stock and Related Matters and Share-based Payments footnotes of the Notes to Consolidated Financial Statements within our Form 10-K. |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive Income Comprehensive income represents a measure of all changes in equity that result from recognized transactions and other economic events other than transactions with owners in their capacity as owners. Other comprehensive income (loss) items includes foreign currency translation and pension adjustments. The following tables summarize the changes in each component of accumulated other comprehensive loss during the periods presented (in millions): Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items Balance at August 31, 2019 $ (65.4 ) $ (86.0 ) $ (151.4 ) Other comprehensive income before reclassifications 1.9 — 1.9 Amounts reclassified from accumulated other comprehensive loss (1) — 1.9 1.9 Net current period other comprehensive income 1.9 1.9 3.8 Balance at November 30, 2019 $ (63.5 ) $ (84.1 ) $ (147.6 ) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items Balance at August 31, 2018 $ (53.9 ) $ (60.9 ) $ (114.8 ) Other comprehensive (loss) income before reclassifications (8.8 ) 0.9 (7.9 ) Amounts reclassified from accumulated other comprehensive loss (1) — 1.7 1.7 Net current period other comprehensive (loss) income (8.8 ) 2.6 (6.2 ) Balance at November 30, 2018 $ (62.7 ) $ (58.3 ) $ (121.0 ) _______________________________________ (1) The before tax amounts of the defined benefit pension plan items are included in net periodic pension cost. See the Pension and Defined Contribution Plans footnote for additional details. The following table summarizes the tax expense or benefit allocated to each component of other comprehensive loss for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Foreign currency translation adjustments $ 1.9 $ — $ 1.9 $ (8.8 ) $ — $ (8.8 ) Defined benefit pension plans: Actuarial loss — — — 1.3 (0.4 ) 0.9 Amortization of defined benefit pension items: Prior service cost 1.0 (0.2 ) 0.8 0.8 (0.2 ) 0.6 Actuarial losses 1.4 (0.3 ) 1.1 1.1 (0.3 ) 0.8 Settlement losses — — — 0.4 (0.1 ) 0.3 Total defined benefit pension plans, net 2.4 (0.5 ) 1.9 3.6 (1.0 ) 2.6 Other comprehensive income (loss) $ 4.3 $ (0.5 ) $ 3.8 $ (5.2 ) $ (1.0 ) $ (6.2 ) |
Subsequent Event
Subsequent Event | 3 Months Ended |
Nov. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In December 2019, we borrowed the full $400.0 million available under our Term Loan Facility. The proceeds were primarily used to repay the Unsecured Notes, which matured on December 15, 2019, and the related accrued interest in full. See Debt and Lines of Credit footnote for interest rates and repayment terms related the Term Loan Facility. As of the date of this filing, we had additional borrowing capacity under the Credit Agreement of $396.2 million under the most restrictive covenant in effect at that time. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | We prepared the Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) to present the financial position, results of operations, and cash flows of Acuity Brands and its wholly-owned subsidiaries. |
Use of Estimates | Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain prior-period amounts have been reclassified to conform to the current year presentation. No material reclassifications occurred during the current period. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Adopted in Fiscal 2020 Accounting Standards Codification ( “ ASC ” ) 842 — Leases (“ASC 842”) In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to include most leases on the balance sheet as lease liabilities with an associated right-of-use ("ROU") asset. Since the issuance of ASU 2016-02, the FASB released several amendments to improve and clarify the implementation guidance, as well as to change the allowable adoption methods. These standards have been collectively codified within ASC 842, Leases (“ASC 842”). We adopted ASC 842 using the modified retrospective method and applied the standard to all leases existing as of September 1, 2019. Information for prior years presented has not been restated and continues to reflect the authoritative accounting standards in effect for those periods. We elected the package of transition practical expedients that allows us to carryforward our historical assessments of whether existing contracts contain leases, determinations of lease classification, and treatments of initial direct costs. As of September 1, 2019, we recognized total operating lease liabilities of $64.7 million in our Consolidated Balance Sheets , of which $49.3 million was recorded within Long-term operating lease liabilities and $15.4 million was recorded within Current operating lease liabilities. We additionally derecognized $5.1 million of previously recorded net deferred rent balances and recorded ROU assets of $59.6 million related to our operating leases, which were reflected within Operating lease right-of-use assets in our Consolidated Balance Sheets. Accounting Standards Yet to Be Adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We are currently evaluating the impacts of the the provisions of ASU 2019-12 on our financial condition, results of operations, and cash flows. In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”), which will require customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Capitalized implementation costs will be required to be amortized over the term of the arrangement, beginning when the cloud computing arrangement is ready for its intended use. ASU 2018-15 is effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2019. The standard allows changes to be applied either retrospectively or prospectively. We will adopt the standard as required in fiscal 2021. The provisions of ASU 2018-15 are not expected to have a material effect on our financial condition, results of operations, or cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Since the issuance of ASU 2016-13, the FASB released several amendments to improve and clarify the implementation guidance. The provisions of ASU 2016-13 and the related amendments are effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2019. Entities are required to apply these changes through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We will adopt the amendments as required in fiscal 2021. The provisions of ASU 2016-13 are not expected to have a material effect on our financial condition, results of operations, or cash flows. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. |
Fair Value Measurement | We utilize valuation methodologies to determine the fair values of our financial assets and liabilities in conformity with the concepts of “exit price” and the fair value hierarchy as prescribed in ASC 820. All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values. There were no material changes to the valuation methods or assumptions used to determine fair values during the current period. |
Fair Value Transfers | We used quoted market prices to determine the fair value of Level 1 assets and liabilities. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. |
Revenue Recognition | Current deferred revenues primarily consist of software licenses as well as professional service and sales-type warranty fees collected prior to performing the related service. Current deferred revenues are included within Other current liabilities on the Consolidated Balance Sheets . These services are expected to be performed within one year. Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets . Revenue recognized from beginning balances of contract liabilities during the three months ended November 30, 2019 totaled $1.6 million . Unsatisfied performance obligations as of November 30, 2019 that do not represent contract liabilities consist primarily of orders for physical goods that have not yet been shipped, which are typically shipped within a few weeks of order receipt. Disaggregated Revenues We recognize revenue when we transfer control of goods and services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for goods and services and is recognized net of allowances for rebates, sales incentives, product returns, and discounts to customers. Further details regarding revenue recognition are included within the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Contract Balances Our rights related to collections from customers are unconditional and are reflected within Accounts receivable on the Consolidated Balance Sheets . We do not have any other significant contract assets. Contract liabilities arise when we receive cash or an unconditional right to collect cash prior to the transfer of control of goods or services. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | The carrying values and estimated fair values of certain of our financial instruments (Level 2) were as follows as of the dates presented (in millions): November 30, 2019 August 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Senior unsecured public notes, net of unamortized discount and deferred costs $ 350.0 $ 350.1 $ 349.9 $ 352.7 Industrial revenue bond 4.0 4.0 4.0 4.0 Bank loans 2.3 2.4 2.7 2.9 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories include materials, labor, inbound freight, and related manufacturing overhead, are stated at the lower of cost (on a first-in, first-out or average cost basis) and net realizable value, and consist of the following as of the dates presented (in millions): November 30, 2019 August 31, 2019 Raw materials, supplies, and work in process (1) $ 190.6 $ 179.4 Finished goods 186.8 183.7 Inventories excluding reserves 377.4 363.1 Less: Reserves (24.8 ) (22.3 ) Total inventories $ 352.6 $ 340.8 _______________________________________ (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, we do not believe the segregation of raw materials and work in process is meaningful information. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant, and equipment consisted of the following as of the dates presented (in millions): November 30, 2019 August 31, 2019 Land $ 22.7 $ 22.6 Buildings and leasehold improvements 193.6 190.7 Machinery and equipment 557.7 544.4 Total property, plant, and equipment, at cost 774.0 757.7 Less: Accumulated depreciation and amortization (495.6 ) (480.4 ) Property, plant, and equipment, net $ 278.4 $ 277.3 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Undiscounted Future Lease Payments | The following table presents the future undiscounted payments due on our operating lease liabilities as well as a reconciliation of those payments to our operating lease liabilities recorded as of the period presented (in millions): Fiscal year November 30, 2019 2020 $ 13.8 2021 15.6 2022 10.9 2023 7.8 2024 5.4 Thereafter 16.5 Total undiscounted lease payments 70.0 Less: Discount due to interest (3.9 ) Present value of lease liabilities $ 66.1 |
Components of Lease Cost | The components of total lease cost were as follows for the period presented (in millions): Three Months Ended November 30, 2019 Operating lease cost $ 4.9 Variable lease cost 0.8 Short-term lease cost 0.3 Total lease cost $ 6.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill during the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Beginning balance $ 967.3 $ 970.6 Additions from acquired businesses 147.8 — Foreign currency translation adjustments 0.4 (3.7 ) Ending balance $ 1,115.5 $ 966.9 |
Debt and Lines of Credit (Table
Debt and Lines of Credit (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Debt Disclosure [Abstract] | |
Components of Interest Expense, Net | The following table summarizes the components of interest expense, net for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Interest expense $ 9.0 $ 9.2 Interest income (0.7 ) (0.5 ) Interest expense, net $ 8.3 $ 8.7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table summarizes changes in the reserves for product warranty and recall costs for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Beginning balance $ 11.5 $ 27.3 Warranty and recall costs 7.9 5.4 Payments and other deductions (7.8 ) (5.6 ) Acquired warranty and recall liabilities 0.1 — ASC 606 adjustments (1) — (14.8 ) Ending balance $ 11.7 $ 12.3 ______________________________ (1) Certain service-type warranties accounted for as contingent liabilities prior to the adoption of ASC 606, Revenue from Contracts with Customers (“ASC 606”), are now reflected as contract liabilities effective September 1, 2018. |
Changes in Stockholders' Equi_2
Changes in Stockholders' Equity (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Equity | The following tables summarize changes in the components of stockholders' equity for the periods presented (in millions): Common Stock Outstanding Shares Amount Paid-in Capital Retained Earnings Accumulated Other Treasury Stock, at cost Total Balance, August 31, 2019 39.5 $ 0.5 $ 930.0 $ 2,295.8 $ (151.4 ) $ (1,156.0 ) $ 1,918.9 Net income — — — 57.0 — — 57.0 Other comprehensive income — — — — 3.8 — 3.8 Share-based payment amortization, issuances, and cancellations — — 12.6 — — — 12.6 Employee stock purchase plan issuances — — 0.2 — — — 0.2 Cash dividends of $0.13 per share paid on common stock — — — (5.2 ) — — (5.2 ) Balance, November 30, 2019 39.5 $ 0.5 $ 942.8 $ 2,347.6 $ (147.6 ) $ (1,156.0 ) $ 1,987.3 Common Stock Outstanding Shares Amount Paid-in Capital Retained Earnings Accumulated Other Treasury Stock, at cost Total Balance, August 31, 2018 40.0 $ 0.5 $ 906.3 $ 1,999.2 $ (114.8 ) $ (1,074.4 ) $ 1,716.8 Net income — — — 79.6 — — 79.6 Other comprehensive loss — — — — (6.2 ) — (6.2 ) ASC 606 adjustments — — — (13.0 ) — — (13.0 ) Share-based payment amortization, issuances, and cancellations 0.1 — 3.8 — — — 3.8 Employee stock purchase plan issuances — — 0.1 — — — 0.1 Cash dividends of $0.13 per share paid on common stock — — — (5.2 ) — — (5.2 ) Repurchases of common stock (0.2 ) — — — — (25.0 ) (25.0 ) Balance, November 30, 2018 39.9 $ 0.5 $ 910.2 $ 2,060.6 $ (121.0 ) $ (1,099.4 ) $ 1,750.9 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Amount of transaction price from contracts with customers allocated to the Company's contract liabilities | The amount of transaction price from contracts with customers allocated to our contract liabilities consists of the following as of the periods presented (in millions): November 30, 2019 August 31, 2019 Current deferred revenues $ 7.4 $ 4.7 Non-current deferred revenues 47.7 46.4 |
Revenue from contracts with customers by sales channel | The following table shows revenue from contracts with customers by sales channel for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Independent sales network $ 618.0 $ 651.0 Direct sales network 84.3 99.0 Retail sales 53.4 85.2 Corporate accounts 33.5 51.2 Other 45.5 46.2 Total $ 834.7 $ 932.6 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Cost | Net periodic pension cost included the following components before tax for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Service cost $ 1.2 $ 0.8 Interest cost 1.8 2.2 Expected return on plan assets (3.1 ) (3.1 ) Amortization of prior service cost 1.0 0.8 Settlement loss — 0.4 Recognized actuarial loss 1.4 1.1 Net periodic pension cost $ 2.3 $ 2.2 |
Special Charges (Tables)
Special Charges (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes costs reflected within Special charges on the Consolidated Statements of Comprehensive Income for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Severance and employee-related costs $ 5.1 $ (0.5 ) Other restructuring costs 1.8 1.5 Total special charges $ 6.9 $ 1.0 Fiscal 2020 Actions Fiscal 2019 Actions Fiscal 2018 Actions Total Balance at August 31, 2019 $ — $ 1.3 $ 0.6 1.9 Severance costs 5.1 — — 5.1 Payments made during the period (1.0 ) (0.8 ) (0.4 ) (2.2 ) Balance at November 30, 2019 $ 4.1 $ 0.5 $ 0.2 $ 4.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table calculates basic earnings per common share and diluted earnings per common share for the periods presented (in millions, except per share data): Three Months Ended November 30, 2019 November 30, 2018 Net income $ 57.0 $ 79.6 Basic weighted average shares outstanding 39.5 40.0 Common stock equivalents 0.1 0.1 Diluted weighted average shares outstanding 39.6 40.1 Basic earnings per share $ 1.44 $ 1.99 Diluted earnings per share $ 1.44 $ 1.98 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents stock options and restricted stock awards that were excluded from the diluted earnings per share calculation for the periods presented as the effect of inclusion would have been antidilutive: Three Months Ended November 30, 2019 November 30, 2018 Stock options 278,972 212,048 Restricted stock awards 118,036 197,014 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Changes in each component of accumulated other comprehensive loss | The following tables summarize the changes in each component of accumulated other comprehensive loss during the periods presented (in millions): Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items Balance at August 31, 2019 $ (65.4 ) $ (86.0 ) $ (151.4 ) Other comprehensive income before reclassifications 1.9 — 1.9 Amounts reclassified from accumulated other comprehensive loss (1) — 1.9 1.9 Net current period other comprehensive income 1.9 1.9 3.8 Balance at November 30, 2019 $ (63.5 ) $ (84.1 ) $ (147.6 ) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items Balance at August 31, 2018 $ (53.9 ) $ (60.9 ) $ (114.8 ) Other comprehensive (loss) income before reclassifications (8.8 ) 0.9 (7.9 ) Amounts reclassified from accumulated other comprehensive loss (1) — 1.7 1.7 Net current period other comprehensive (loss) income (8.8 ) 2.6 (6.2 ) Balance at November 30, 2018 $ (62.7 ) $ (58.3 ) $ (121.0 ) _______________________________________ (1) The before tax amounts of the defined benefit pension plan items are included in net periodic pension cost. See the Pension and Defined Contribution Plans footnote for additional details. |
Schedule of tax expense or benefit allocated to each component of other comprehensive income (loss) | The following table summarizes the tax expense or benefit allocated to each component of other comprehensive loss for the periods presented (in millions): Three Months Ended November 30, 2019 November 30, 2018 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Foreign currency translation adjustments $ 1.9 $ — $ 1.9 $ (8.8 ) $ — $ (8.8 ) Defined benefit pension plans: Actuarial loss — — — 1.3 (0.4 ) 0.9 Amortization of defined benefit pension items: Prior service cost 1.0 (0.2 ) 0.8 0.8 (0.2 ) 0.6 Actuarial losses 1.4 (0.3 ) 1.1 1.1 (0.3 ) 0.8 Settlement losses — — — 0.4 (0.1 ) 0.3 Total defined benefit pension plans, net 2.4 (0.5 ) 1.9 3.6 (1.0 ) 2.6 Other comprehensive income (loss) $ 4.3 $ (0.5 ) $ 3.8 $ (5.2 ) $ (1.0 ) $ (6.2 ) |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | 3 Months Ended |
Nov. 30, 2019Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | 3 Months Ended | ||||
Nov. 30, 2019USD ($) | Sep. 17, 2019brand | Aug. 31, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,115.5 | $ 967.3 | $ 966.9 | $ 970.6 | |
The Luminaires Group (TLG) | |||||
Business Acquisition [Line Items] | |||||
Number of niche lighting brands | brand | 5 | ||||
Fiscal 2020 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 147.8 | ||||
Identified intangible assets | $ 165 | ||||
Weighted average useful life of acquired intangible assets | 13 years |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Millions | Nov. 30, 2019 | Sep. 01, 2019 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Present value of lease liabilities | $ 66.1 | |
Long-term operating lease liabilities | 49.4 | |
Current operating lease liabilities | 16.7 | |
Operating lease right-of-use assets | $ 60.1 | |
ASC 842 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Present value of lease liabilities | $ 64.7 | |
Long-term operating lease liabilities | 49.3 | |
Current operating lease liabilities | 15.4 | |
Net deferred rent derecognized | 5.1 | |
Operating lease right-of-use assets | $ 59.6 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Nov. 30, 2019 | Aug. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 266.6 | $ 461 |
Carrying Value | Senior unsecured public notes, net of unamortized discount and deferred costs | ||
Liabilities: | ||
Carrying and estimated fair values of financial instruments | 350 | 349.9 |
Carrying Value | Industrial revenue bond | Industrial Revenue Bond Maturing in 2021 | ||
Liabilities: | ||
Carrying and estimated fair values of financial instruments | 4 | 4 |
Carrying Value | Bank loans | ||
Liabilities: | ||
Carrying and estimated fair values of financial instruments | 2.3 | 2.7 |
Fair Value | Level 2 | Senior unsecured public notes, net of unamortized discount and deferred costs | ||
Liabilities: | ||
Carrying and estimated fair values of financial instruments | 350.1 | 352.7 |
Fair Value | Level 2 | Industrial revenue bond | Industrial Revenue Bond Maturing in 2021 | ||
Liabilities: | ||
Carrying and estimated fair values of financial instruments | 4 | 4 |
Fair Value | Level 2 | Bank loans | ||
Liabilities: | ||
Carrying and estimated fair values of financial instruments | $ 2.4 | $ 2.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Nov. 30, 2019 | Aug. 31, 2019 |
Inventory, Net [Abstract] | ||
Raw materials, supplies, and work in process | $ 190.6 | $ 179.4 |
Finished goods | 186.8 | 183.7 |
Inventories excluding reserves | 377.4 | 363.1 |
Less: Reserves | (24.8) | (22.3) |
Total inventories | $ 352.6 | $ 340.8 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Nov. 30, 2019 | Aug. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment, at cost | $ 774 | $ 757.7 |
Less: Accumulated depreciation and amortization | (495.6) | (480.4) |
Property, plant, and equipment, net | 278.4 | 277.3 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment, at cost | 22.7 | 22.6 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment, at cost | 193.6 | 190.7 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment, at cost | $ 557.7 | $ 544.4 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Leases [Abstract] | ||
Operating leases weighted average discount rate (percent) | 2.20% | |
Weighted average remaining lease term | 6 years | |
Rent expense | $ 5.5 | |
Operating lease payments | $ 4.5 | |
Right-of-Use asset obtained in exchange for operating lease liability | $ 5.1 |
Leases - Undiscounted Future Le
Leases - Undiscounted Future Lease Payments (Details) $ in Millions | Nov. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 13.8 |
2021 | 15.6 |
2022 | 10.9 |
2023 | 7.8 |
2024 | 5.4 |
Thereafter | 16.5 |
Total undiscounted lease payments | 70 |
Less: Discount due to interest | (3.9) |
Present value of lease liabilities | $ 66.1 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) $ in Millions | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 4.9 |
Variable lease cost | 0.8 |
Short-term lease cost | 0.3 |
Total lease cost | $ 6 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 9.6 | $ 7.7 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Amortization expense in fiscal 2020 | 41.3 | |
Amortization expense in fiscal 2021 | 39 | |
Amortization expense in fiscal 2022 | 38.1 | |
Amortization expense in fiscal 2023 | 36.9 | |
Amortization expense in fiscal 2024 | $ 36 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 967.3 | $ 970.6 |
Additions from acquired businesses | 147.8 | 0 |
Foreign currency translation adjustments | 0.4 | (3.7) |
Goodwill, Ending Balance | $ 1,115.5 | $ 966.9 |
Debt and Lines of Credit (Detai
Debt and Lines of Credit (Details) | Jun. 29, 2018USD ($)installment | Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2019USD ($) |
Debt Instruments [Abstract] | ||||
Long-term debt | $ 347,100,000 | $ 347,500,000 | ||
Interest Revenue (Expense), Net [Abstract] | ||||
Interest expense | 9,000,000 | $ 9,200,000 | ||
Interest income | (700,000) | (500,000) | ||
Interest expense, net | 8,300,000 | $ 8,700,000 | ||
Lines of Credit | ||||
Line of Credit Facility [Abstract] | ||||
Executed revolving credit facility | $ 800,000,000 | |||
Minimum interest coverage ratio | 2.50 | |||
Maximum leverage ratio | 3.50 | |||
Outstanding letters of credit | 8,100,000 | |||
Lines of Credit | Minimum | ||||
Line of Credit Facility [Abstract] | ||||
Facility fee (percent) | 0.125% | |||
Lines of Credit | Maximum | ||||
Line of Credit Facility [Abstract] | ||||
Facility fee (percent) | 0.25% | |||
Lines of Credit | New Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Executed revolving credit facility | $ 400,000,000 | |||
Revolving credit facility term | 5 years | |||
Borrowings outstanding | 0 | 0 | ||
Lines of Credit | Unsecured Delayed Draw Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Executed revolving credit facility | $ 400,000,000 | |||
Borrowings outstanding | 0 | $ 0 | ||
Number of separate installments allowed during borrowing period | installment | 4 | |||
Lines of Credit | Revolving Credit Facility Maturing August 27, 2019 | ||||
Line of Credit Facility [Abstract] | ||||
Additional borrowing capacity under revolving credit facility | 796,200,000 | |||
Letters of Credit | Revolving Credit Facility Maturing August 27, 2019 | ||||
Line of Credit Facility [Abstract] | ||||
Outstanding letters of credit | 3,800,000 | |||
Senior unsecured public notes | Senior Unsecured Notes Maturing December 2019 | ||||
Debt Instruments [Abstract] | ||||
Debt outstanding | $ 350,000,000 | |||
Interest rate (percent) | 6.00% | |||
Long-term debt | $ 341,200,000 | |||
Industrial revenue bond | Industrial Revenue Bond Maturing in 2021 | ||||
Debt Instruments [Abstract] | ||||
Debt outstanding | 4,000,000 | |||
Bank loans | 2016 Fixed-rate Bank Loans | ||||
Debt Instruments [Abstract] | ||||
Debt outstanding | $ 2,300,000 | |||
Eurocurrency Rate | Lines of Credit | New Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Abstract] | ||||
Applicable margins based on company's leverage ratio, percentage | 1.00% | |||
Eurocurrency Rate | Lines of Credit | New Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Abstract] | ||||
Applicable margins based on company's leverage ratio, percentage | 1.375% | |||
Eurocurrency Rate | Lines of Credit | Unsecured Delayed Draw Term Loan | Minimum | ||||
Line of Credit Facility [Abstract] | ||||
Applicable margins based on company's leverage ratio, percentage | 0.875% | |||
Eurocurrency Rate | Lines of Credit | Unsecured Delayed Draw Term Loan | Maximum | ||||
Line of Credit Facility [Abstract] | ||||
Applicable margins based on company's leverage ratio, percentage | 1.25% | |||
Base rate | Lines of Credit | New Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Abstract] | ||||
Applicable margins based on company's leverage ratio, percentage | 0.00% | |||
Base rate | Lines of Credit | New Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Abstract] | ||||
Applicable margins based on company's leverage ratio, percentage | 0.375% | |||
Base rate | Lines of Credit | Unsecured Delayed Draw Term Loan | Minimum | ||||
Line of Credit Facility [Abstract] | ||||
Applicable margins based on company's leverage ratio, percentage | 0.00% | |||
Base rate | Lines of Credit | Unsecured Delayed Draw Term Loan | Maximum | ||||
Line of Credit Facility [Abstract] | ||||
Applicable margins based on company's leverage ratio, percentage | 0.25% | |||
Year one | Lines of Credit | Unsecured Delayed Draw Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Quarterly payment (percent) | 2.50% | |||
Year two | Lines of Credit | Unsecured Delayed Draw Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Quarterly payment (percent) | 2.50% | |||
Year three | Lines of Credit | Unsecured Delayed Draw Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Quarterly payment (percent) | 5.00% | |||
Year four | Lines of Credit | Unsecured Delayed Draw Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Quarterly payment (percent) | 5.00% | |||
Year five and after | Lines of Credit | Unsecured Delayed Draw Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Quarterly payment (percent) | 7.50% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Aug. 12, 2019statement | May 17, 2019patent | May 01, 2019patent | Jan. 03, 2018executive | Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Standard warranty term | 5 years | |||||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||||
Beginning balance | $ 11.5 | $ 27.3 | ||||
Warranty and recall costs | 7.9 | 5.4 | ||||
Payments and other deductions | (7.8) | (5.6) | ||||
Acquired warranty and recall liabilities | 0.1 | 0 | ||||
ASC 606 adjustments | 0 | (14.8) | ||||
Ending balance | $ 11.7 | $ 12.3 | ||||
Lighting Science Group Patent Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Number of patents allegedly to have been infringed | patent | 7 | 8 | ||||
Number of allegations dropped | patent | 1 | |||||
Securities Class Action | ||||||
Loss Contingencies [Line Items] | ||||||
Number of former executives alleged to be in violation | executive | 1 | |||||
Number of statements used as basis for dismissing claims | statement | 42 | |||||
Total number of statements challenged in the Consolidated Complaint | statement | 47 | |||||
Number of challenged statements allowed to proceed to discovery | statement | 5 |
Changes in Stockholders' Equi_3
Changes in Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Sep. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 1,918.9 | $ 1,716.8 | |
Net income | 57 | 79.6 | |
Other comprehensive income (loss) | 3.8 | (6.2) | |
Share-based payment amortization, issuances, and cancellations | 12.6 | 3.8 | |
Employee stock purchase plan issuances | 0.2 | 0.1 | |
Cash dividends of $0.13 per share paid on common stock | (5.2) | (5.2) | |
Repurchases of common stock | (25) | ||
Ending balance | $ 1,987.3 | $ 1,750.9 | |
Cash dividends paid (usd per share) | $ 0.13 | $ 0.13 | |
Common Stock Outstanding | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 0.5 | $ 0.5 | |
Beginning balance (shares) | 39.5 | 40 | |
Share-based payment amortization, issuances, and cancellations (shares) | 0 | 0.1 | |
Repurchases of common stock (shares) | (0.2) | ||
Ending balance | $ 0.5 | $ 0.5 | |
Ending balance (shares) | 39.5 | 39.9 | |
Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 930 | $ 906.3 | |
Share-based payment amortization, issuances, and cancellations | 12.6 | 3.8 | |
Employee stock purchase plan issuances | 0.2 | 0.1 | |
Ending balance | 942.8 | 910.2 | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 2,295.8 | 1,999.2 | |
Net income | 57 | 79.6 | |
Cash dividends of $0.13 per share paid on common stock | (5.2) | (5.2) | |
Ending balance | 2,347.6 | 2,060.6 | |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (151.4) | (114.8) | |
Other comprehensive income (loss) | 3.8 | (6.2) | |
Ending balance | (147.6) | (121) | |
Treasury Stock, at cost | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (1,156) | (1,074.4) | |
Repurchases of common stock | (25) | ||
Ending balance | $ (1,156) | $ (1,099.4) | |
ASC 606 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
ASC 606 adjustments | $ (13) | ||
ASC 606 | Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
ASC 606 adjustments | $ (13) |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions | Nov. 30, 2019 | Aug. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Current deferred revenues | $ 7.4 | $ 4.7 |
Non-current deferred revenues | $ 47.7 | $ 46.4 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Timing of revenue recognition | Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets |
Revenue recognized from beginning balances of contract liabilities | $ 1.6 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 834.7 | $ 932.6 |
Independent sales network | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 618 | 651 |
Direct sales network | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 84.3 | 99 |
Retail sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 53.4 | 85.2 |
Corporate accounts | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 33.5 | 51.2 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 45.5 | $ 46.2 |
Share-based Payments (Details)
Share-based Payments (Details) - USD ($) shares in Thousands, $ in Millions | 2 Months Ended | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2019 | Nov. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | $ 16.7 | $ 7.8 | |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance share units outstanding (shares) | 37 | 37 | |
Restricted Stock and Performance Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum age for eligibility under retirement vesting provision | 60 years | ||
Minimum service period under retirement vesting provision | 10 years |
Pension Plans (Details)
Pension Plans (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 1.2 | $ 0.8 |
Interest cost | 1.8 | 2.2 |
Expected return on plan assets | (3.1) | (3.1) |
Amortization of prior service cost | 1 | 0.8 |
Settlement loss | 0 | 0.4 |
Recognized actuarial loss | 1.4 | 1.1 |
Net periodic pension cost | $ 2.3 | $ 2.2 |
Special Charges (Details)
Special Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Special charges | $ 6.9 | $ 1 |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 1.9 | |
Severance costs | 5.1 | |
Payments made during the period | (2.2) | |
Balance, end of period | 4.8 | |
Fiscal 2020 Actions | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 0 | |
Severance costs | 5.1 | |
Payments made during the period | (1) | |
Balance, end of period | 4.1 | |
Fiscal 2019 Actions | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 1.3 | |
Severance costs | 0 | |
Payments made during the period | (0.8) | |
Balance, end of period | 0.5 | |
Fiscal 2018 Actions | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 0.6 | |
Severance costs | 0 | |
Payments made during the period | (0.4) | |
Balance, end of period | 0.2 | |
Severance and employee-related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 5.1 | (0.5) |
Other restructuring costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | $ 1.8 | $ 1.5 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings per Share, Treasury Stock Method (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 57 | $ 79.6 |
Basic weighted average shares outstanding (in shares) | 39.5 | 40 |
Common stock equivalents (in shares) | 0.1 | 0.1 |
Diluted weighted average shares outstanding (in shares) | 39.6 | 40.1 |
Basic earnings per share (in dollars per share) | $ 1.44 | $ 1.99 |
Diluted earnings per share (in dollars per share) | $ 1.44 | $ 1.98 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities Excluded from EPS Computation (Details) - shares | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and restricted stock awards excluded from diluted earnings per share (in shares) | 278,972 | 212,048 |
Restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and restricted stock awards excluded from diluted earnings per share (in shares) | 118,036 | 197,014 |
Comprehensive Income - Changes
Comprehensive Income - Changes in Components of Accumulated Other Comprehensive Income (Loss) Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,918.9 | $ 1,716.8 |
Other comprehensive (loss) income before reclassifications | 1.9 | (7.9) |
Amounts reclassified from accumulated other comprehensive loss | 1.9 | 1.7 |
Net current period other comprehensive (loss) income | 3.8 | (6.2) |
Ending balance | 1,987.3 | 1,750.9 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (151.4) | (114.8) |
Net current period other comprehensive (loss) income | 3.8 | (6.2) |
Ending balance | (147.6) | (121) |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (65.4) | (53.9) |
Other comprehensive (loss) income before reclassifications | 1.9 | (8.8) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive (loss) income | 1.9 | (8.8) |
Ending balance | (63.5) | (62.7) |
Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (86) | (60.9) |
Other comprehensive (loss) income before reclassifications | 0 | 0.9 |
Amounts reclassified from accumulated other comprehensive loss | 1.9 | 1.7 |
Net current period other comprehensive (loss) income | 1.9 | 2.6 |
Ending balance | $ (84.1) | $ (58.3) |
Comprehensive Income - Tax Amou
Comprehensive Income - Tax Amounts Allocated to Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), before tax | $ 4.3 | $ (5.2) |
Other comprehensive income (loss), tax | (0.5) | (1) |
Other comprehensive income (loss) items, net of tax | 3.8 | (6.2) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), before tax | 1.9 | (8.8) |
Other comprehensive income (loss), tax | 0 | 0 |
Other comprehensive income (loss) items, net of tax | 1.9 | (8.8) |
Prior service cost | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of defined benefit pension items, before tax | 1 | 0.8 |
Amortization of defined benefit pension items, tax | (0.2) | (0.2) |
Amortization of defined benefit pension items, after tax | 0.8 | 0.6 |
Actuarial losses | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss, before amortization of defined benefit pensions items, before tax | 0 | 1.3 |
Actuarial loss, before amortization of defined benefit pensions items, tax | 0 | (0.4) |
Actuarial loss, before amortization of defined benefit pensions items, after tax | 0 | 0.9 |
Amortization of defined benefit pension items, before tax | 1.4 | 1.1 |
Amortization of defined benefit pension items, tax | (0.3) | (0.3) |
Amortization of defined benefit pension items, after tax | 1.1 | 0.8 |
Settlement losses | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of defined benefit pension items, before tax | 0 | 0.4 |
Amortization of defined benefit pension items, tax | 0 | (0.1) |
Amortization of defined benefit pension items, after tax | 0 | 0.3 |
Total defined benefit pension plans, net | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), before tax | 2.4 | 3.6 |
Other comprehensive income (loss), tax | (0.5) | (1) |
Other comprehensive income (loss) items, net of tax | $ 1.9 | $ 2.6 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2019 | Nov. 30, 2019 | Nov. 30, 2018 | Jan. 09, 2020 | |
Subsequent Event [Line Items] | ||||
Borrowings on credit facility | $ 0 | $ 55.4 | ||
Unsecured Delayed Draw Term Loan | Lines of Credit | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Borrowings on credit facility | $ 400 | |||
Additional borrowing capacity under revolving credit facility | $ 396.2 |