Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-31225 | ||
Entity Registrant Name | ENPRO INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | NC | ||
Entity Tax Identification Number | 01-0573945 | ||
Entity Address, Street Address | 5605 Carnegie Boulevard | ||
Entity Address, Suite | Suite 500 | ||
Entity Address, City | Charlotte | ||
Entity Address, State | NC | ||
Entity Address, Postal Zip Code | 28209 | ||
City Area Code | 704 | ||
Local Phone Number | 731-1500 | ||
Title of each class | Common stock, $0.01 par value | ||
Trading Symbol(s) | NPO | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,009,608,894 | ||
Entity Common Stock, Shares Outstanding | 20,754,267 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the 2021 annual meeting of shareholders are incorporated by reference into Part III. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001164863 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 1,074 | $ 1,205.7 | $ 1,274.1 |
Cost of sales | 698.2 | 801.9 | 855.6 |
Gross profit | 375.8 | 403.8 | 418.5 |
Operating expenses: | |||
Selling, general and administrative | 299.8 | 314.9 | 311.6 |
Other | 50.1 | 32.3 | 21.1 |
Total operating expenses | 349.9 | 347.2 | 332.7 |
Operating income | 25.9 | 56.6 | 85.8 |
Interest expense | (16.5) | (19.6) | (28.5) |
Interest income | 1.6 | 1.4 | 1.2 |
Other expense | (37.8) | (34.1) | (43.4) |
Income (loss) from continuing operations before income taxes | (26.8) | 4.3 | 15.1 |
Income tax benefit (expense) | 3.5 | 3.5 | (19.8) |
Income (loss) from continuing operations | (23.3) | 7.8 | (4.7) |
Less: net income attributable to redeemable non-controlling interest, net of tax | 0.4 | 0 | 0 |
Income (loss) from continuing operations attributable to EnPro Industries, Inc. | (23.7) | 7.8 | (4.7) |
Income from discontinued operations, including gain on sale, net of taxes | 208.1 | 30.5 | 24.3 |
Net income | $ 184.4 | $ 38.3 | $ 19.6 |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ (1.15) | $ 0.38 | $ (0.22) |
Discontinued operations (in dollars per share) | 10.13 | 1.48 | 1.16 |
Net income (in dollars per share) | 8.98 | 1.86 | 0.94 |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | (1.15) | 0.38 | (0.22) |
Discontinued operations (in dollars per share) | 10.13 | 1.47 | 1.16 |
Net income per share (in dollars per share) | $ 8.98 | $ 1.85 | $ 0.94 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to EnPro Industries, Inc. | $ 184.4 | $ 38.3 | $ 19.6 |
Other comprehensive income: | |||
Foreign currency translation adjustments | 24.9 | 21.9 | (0.3) |
Pension and postretirement benefits adjustment (excluding amortization) | 7.8 | (6.2) | (12.7) |
Pension settlements and curtailments | (0.8) | 0 | 12.7 |
Amortization of pension and postretirement benefits included in net income | 5.5 | 7 | 5.5 |
Other comprehensive income, before tax | 37.4 | 22.7 | 5.2 |
Income tax expense related to items of other comprehensive income | (2.9) | (2.1) | (2.3) |
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | 34.5 | 20.6 | 2.9 |
Less: other comprehensive income attributable to non-controlling interests | 3 | 0 | 0 |
Other comprehensive income, net of tax attributable to EnPro Industries, Inc | 31.5 | 20.6 | 2.9 |
Comprehensive income attributable to EnPro Industries, Inc. | $ 215.9 | $ 58.9 | $ 22.5 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES OF CONTINUING OPERATIONS | |||
Net income attributable to EnPro Industries, Inc. | $ 184.4 | $ 38.3 | $ 19.6 |
Adjustments to reconcile net income attributable to EnPro Industries, Inc. to net cash provided by operating activities of continuing operations: | |||
Income from discontinued operations, net of taxes | (208.1) | (30.5) | (24.3) |
Taxes related to sale of discontinued operations | (38.7) | 0 | 0 |
Depreciation | 30.2 | 30.4 | 31.6 |
Amortization | 40.6 | 37.5 | 34.5 |
Loss on sale of businesses | 2.6 | 11.3 | 0 |
Loss on extinguishment of debt | 0 | 0 | 18.1 |
Asset impairments | 29.3 | 29.4 | 14.1 |
Deferred income taxes | (14.6) | (28.3) | 1.6 |
Stock-based compensation | 5.4 | 6.8 | 6.5 |
Other non-cash adjustments | 3.2 | 2.5 | 2 |
Change in assets and liabilities, net of effects of acquisitions and divestitures of businesses: | |||
Asbestos insurance receivables | 2.5 | 5.8 | 29.9 |
Accounts receivable, net | 18.7 | 9.9 | (1.1) |
Inventories | 19.5 | 7 | (23) |
Accounts payable | 0.3 | (15.9) | (4.9) |
Income taxes, net | (17.8) | 22 | 95.3 |
Other current assets and liabilities | (13.1) | 4.4 | 5.8 |
Other non-current assets and liabilities | 13.2 | 0.2 | 7.1 |
Net cash provided by operating activities of continuing operations | 57.6 | 130.8 | 212.8 |
INVESTING ACTIVITIES OF CONTINUING OPERATIONS | |||
Purchases of property, plant and equipment | (18.3) | (21.6) | (36.1) |
Proceeds from sale of businesses | 475.1 | 3.6 | 0 |
Payments for acquisitions, net of cash acquired | (238.3) | (310.5) | 0 |
Receipts from settlements of derivative contracts | 0 | 0 | 9.3 |
Proceeds from sale of property, plant and equipment | 0.8 | 0.8 | 30.7 |
Other | (3.2) | (3.4) | (2.8) |
Net cash provided by (used in) investing activities of continuing operations | 216.1 | (331.1) | 1.1 |
FINANCING ACTIVITIES OF CONTINUING OPERATIONS | |||
Proceeds from debt | 29.9 | 652.7 | 1,014.7 |
Repayments of debt, including premiums to par value | (168.2) | (487.9) | (1,184.9) |
Repurchase of common stock | (5.3) | (15) | (50) |
Dividends paid | (21.7) | (20.9) | (20.3) |
Other | (2) | (5.1) | (11.9) |
Net cash provided by (used in) financing activities of continuing operations | (167.3) | 123.8 | (252.4) |
CASH FLOWS OF DISCONTINUED OPERATIONS | |||
Operating cash flows | (6.2) | 76.8 | 13.6 |
Investing cash flows | 0 | (11.8) | (27.1) |
Net cash provided by (used in) discontinued operations | (6.2) | 65 | (13.5) |
Effect of exchange rate changes on cash and cash equivalents | 8.1 | 3.1 | (7.7) |
Net increase (decrease) in cash and cash equivalents | 108.3 | (8.4) | (59.7) |
Cash and cash equivalents at beginning of year | 121.2 | 129.6 | 189.3 |
Cash and cash equivalents at end of year | 229.5 | 121.2 | 129.6 |
Cash paid (refunded) during the year for: | |||
Interest | 16.1 | 19.2 | 33.3 |
Income taxes, net of refunds received | 67.2 | 8.8 | (77.9) |
Non-cash investing and financing activities | |||
Non-cash acquisitions of property, plant and equipment | $ 1.9 | $ 2.5 | $ 2.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 229.5 | $ 121.2 |
Accounts receivable, less allowance for doubtful accounts of $4.1 in 2020 and of $3.7 in 2019 | 143.2 | 160.8 |
Inventories | 139.1 | 157.1 |
Income taxes receivable | 49.6 | 28.7 |
Prepaid expenses and other current assets | 17.6 | 27.6 |
Current assets held for sale | 0 | 254.1 |
Total current assets | 579 | 749.5 |
Property, plant and equipment, net | 195 | 218.8 |
Goodwill | 621.8 | 485.3 |
Other intangible assets, net | 553.6 | 466.9 |
Other assets | 134.2 | 114.6 |
Total assets | 2,083.6 | 2,035.1 |
Current liabilities | ||
Current maturities of long-term debt | 3.8 | 4.1 |
Accounts payable | 69.8 | 82.7 |
Accrued expenses | 128.4 | 137.3 |
Current liabilities held for sale | 0 | 89.5 |
Total current liabilities | 202 | 313.6 |
Long-term debt | 487.5 | 625.2 |
Deferred taxes and non-current income taxes payable | 130.5 | 74.6 |
Other liabilities | 136.7 | 106.8 |
Total liabilities | 956.7 | 1,120.2 |
Commitments and contingent liabilities | ||
Redeemable non-controlling interest | 48.4 | 28 |
Shareholders’ equity | ||
Common stock – $.01 par value; 100,000,000 shares authorized; issued 20,718,675 shares at December 31, 2020 and 20,785,346 shares at December 31, 2019 | 0.2 | 0.2 |
Additional paid-in capital | 289.6 | 292.1 |
Retained earnings | 794.8 | 632.2 |
Accumulated other comprehensive loss | (4.9) | (36.4) |
Common stock held in treasury, at cost – 182,511 shares at December 31, 2020 and 186,516 shares at December 31, 2019 | (1.2) | (1.2) |
Total shareholders’ equity | 1,078.5 | 886.9 |
Total liabilities and equity | $ 2,083.6 | $ 2,035.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowance for doubtful accounts | $ 4.1 | $ 3.7 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 20,718,675 | 20,785,346 |
Treasury stock, shares (in shares) | 182,511 | 186,516 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Total Permanent Shareholders’ Equity | Total Permanent Shareholders’ EquityAdjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsAdjustment | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossAdjustment | Treasury Stock | Redeemable non-controlling interest |
Beginning balance at Dec. 31, 2017 | $ 902.8 | $ (0.3) | $ 0.2 | $ 347.9 | $ 604.4 | $ (0.3) | $ (48.4) | $ (1.3) | |||
Balance (in shares) at Dec. 31, 2017 | 21.3 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 19.6 | 19.6 | |||||||||
Other comprehensive income | $ 2.9 | 2.9 | 2.9 | ||||||||
Dividends | (20.4) | (20.4) | |||||||||
Share repurchases | (50) | (50) | |||||||||
Shares repurchases (in shares) | (0.7) | (0.7) | |||||||||
Incentive plan activity | 3.1 | 3.1 | |||||||||
Incentive plan activity (in shares) | 0.1 | ||||||||||
Ending balance at Dec. 31, 2018 | 857.7 | 0 | $ 0.2 | 301 | 603.3 | 11.5 | (45.5) | $ (11.5) | (1.3) | ||
Balance (in shares) at Dec. 31, 2018 | 20.7 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 38.3 | 38.3 | |||||||||
Other comprehensive income | $ 20.6 | 20.6 | 20.6 | ||||||||
Dividends | (20.9) | (20.9) | |||||||||
Share repurchases | (15) | (15) | |||||||||
Shares repurchases (in shares) | (0.2) | (0.2) | |||||||||
Incentive plan activity | 6.2 | 6.1 | 0.1 | ||||||||
Incentive plan activity (in shares) | 0.1 | ||||||||||
Ending balance at Dec. 31, 2019 | $ 886.9 | 886.9 | $ (0.1) | $ 0.2 | 292.1 | 632.2 | $ (0.1) | (36.4) | (1.2) | ||
Balance (in shares) at Dec. 31, 2019 | 20.6 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll | |||||||||||
LeanTeq/Alluxa acquisition | $ 28 | ||||||||||
Ending balance at Dec. 31, 2019 | 28 | 28 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 184.4 | 184.4 | 0.4 | ||||||||
Other comprehensive income | $ 34.5 | 31.5 | 31.5 | 3 | |||||||
Dividends | (21.7) | (21.7) | |||||||||
Share repurchases | (5.3) | (5.3) | |||||||||
Shares repurchases (in shares) | (0.1) | (0.1) | |||||||||
Incentive plan activity | 4.8 | 4.8 | 0 | ||||||||
Incentive plan activity (in shares) | 0 | ||||||||||
Other | (2) | (2) | 0.1 | ||||||||
Ending balance at Dec. 31, 2020 | $ 1,078.5 | $ 1,078.5 | $ 0.2 | $ 289.6 | $ 794.8 | $ (4.9) | $ (1.2) | ||||
Balance (in shares) at Dec. 31, 2020 | 20.5 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll | |||||||||||
LeanTeq/Alluxa acquisition | 16.9 | ||||||||||
Ending balance at Dec. 31, 2020 | $ 48.4 | $ 48.4 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.04 | $ 1 | $ 0.96 |
Overview, Basis of Presentation
Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance | 1. Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance Overview EnPro Industries, Inc. (“we,” “us,” “our,” “EnPro” or the “Company”) is a leader in designing, developing, manufacturing, servicing, and marketing proprietary engineered industrial products and serve a wide variety of customers in varied industries around the world. Over the past year and a half, we have executed several strategic initiatives to change the portfolio of businesses that we operate to focus on materials science-based businesses with leading technologies, compelling margins, strong cash flow, and high levels of recurring revenue that serve markets with favorable secular tailwinds Basis of Presentation The Consolidated Financial Statements reflect the accounts of the Company and our majority-owned and controlled subsidiaries. All intercompany accounts and transactions between our consolidated operations have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. In the fourth quarter of 2020, we evaluated our internal reporting and determined to have a new segment as the result of internal reorganizations and the acquisition of Alluxa, Inc. ("Alluxa"). For more information on the acquisition of Alluxa, see Note 3 , "Acquisitions and Dispositions". Our new segment, Advanced Surface Technologies, is comprised of Alluxa and our semiconductor businesses, comprised of LeanTeq and the Technetics semiconductor business, previously reported in our Sealing Technologies segment within our Technetics reporting unit. This change is reflected in all periods presented in Note 19 , "Business Segment Information". The change also involved the transfer of $180.1 million of goodwill from the Sealing Technologies segment to our Advanced Surface Technologies segment. This change is reflected in all periods presented in Note 9 , "Goodwill and Other Intangible Assets". In the second quarter of 2020 we moved the oil and gas component of our Garlock Pipeline Technologies ("GPT") business from the Sealing Technologies segment to the Engineered Materials segment. This move allowed us to group our two oil and gas businesses, GPT and Compressor Products International, together to be managed as one business unit. This change is reflected in all periods presented in Note 19 , "Business Segment Information". The change also involved the transfer of $5.8 million of goodwill from the Sealing Technologies segment to the Engineered Materials segment which is reflected in all periods presented in Note 9 , "Goodwill and Other Intangible Assets". In January 2020, we adopted a new accounting standard that changes how we measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, including trade receivables. The standard requires us to estimate our lifetime “expected credit loss” for such assets at inception, and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. We applied a current expected credit loss model ("CECL") to our trade receivables. Given the nature of our trade receivables, a complex system to develop forward-looking models was not deemed necessary. Since our receivables are short-term, reasonable and supportable forecasted information was not readily available and our application of CECL relied on historical information and existing economic conditions. We will continue to monitor the collectability of our receivables as well as apply any supportable forecast information as it becomes available to make adjustments to our estimated reserve. We applied our CECL model to our trade receivables at January 1, 2020 using a modified retrospective transition approach. Upon adoption, we recorded a $0.1 million increase to our allowance for credit losses with a corresponding decrease to retained earnings. Additionally, in January 2020, we adopted a standard to simplify annual and interim goodwill impairment testing. Under the standard, we will perform our annual or interim goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Upon adoption, there was no impairment of goodwill recorded and this standard is applied following adoption on a prospective basis for all annual and interim goodwill impairment assessments. In the first quarter of 2019, we adopted a standard that establishes principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. The standard requires lessees to recognize the lease assets and lease liabilities that arise from all leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. The standard retains a distinction between finance leases and operating leases. As a result, the effect of leases in the Consolidated Statements of Operations and the Consolidated Statement of Cash Flows is largely unchanged. Additionally, the guidance provides clarification on the definition of a lease, including alignment of the concept of control of an asset with principles in other authoritative guidance around revenue recognition and consolidation. We adopted the new standard using the allowable option to apply the transition provisions of the new guidance at its adoption date without adjusting the comparative periods presented. We evaluated the impact of applying practical expedients, and upon adoption we elected the package of practical expedients which permits us to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs. Additionally, we elected to not separate lease and non-lease components, we will not recognize an asset for leases with a term of twelve months or less, and we will apply a portfolio approach in determining discount rates. Upon adoption of this standard, we recognized a right-of-use asset and a corresponding lease liability of approximately $27 million for our operating leases from continuing operations. The adoption of the standard did not have a material impact to our Consolidated Statements of Operations or Consolidated Statements of Cash Flows. Summary of Significant Accounting Policies Revenue Recognition – The largest stream of revenue is product revenue for shipments of the various products discussed further in Note 19 , "Business Segment Information," along with a smaller amount of revenue from services that typically take place over a short period of time. We recognize revenue at a point in time following the transfer of control, which typically occurs when a product is shipped or delivered, depending on the terms of the sale agreement, or when services are rendered. Shipping costs billed to customers are recognized as revenue and expensed in cost of goods sold as a fulfillment cost when control of the product transfers to the customer. Payment from customers is typically due within 30 days of the sale for sales in the U.S. For sales outside of the U.S., payment terms may be longer based upon local business customs, but are typically due no later than 90 days after the sale. At December 31, 2020, we had a backlog of orders of continuing operations valued at $212.5 million compared with $190.7 million at December 31, 2019. Approximately 6.1% of the backlog is expected to be filled beyond 2021. Backlog represents orders on hand we believe to be firm. However, there is no certainty the backlog orders will result in actual sales at the times or in the amounts ordered. In addition, for most of our business, backlog is not particularly predictive of future performance because of our short lead times and some seasonality. Redeemable Non-Controlling Interests – Non-controlling interests in subsidiaries that are redeemable for cash or other assets outside of the our control are classified as mezzanine equity, outside of equity and liabilities, at the greater of the carrying value or the redemption value. The increases or decreases in the estimated redemption amount are recorded with corresponding adjustments against equity and are reflected in the computation of earnings per share. Foreign Currency Translation – The financial statements of those operations whose functional currency is a foreign currency are translated into U.S. dollars using the current rate method. Under this method, all assets and liabilities are translated into U.S. dollars using current exchange rates, and income statement activities are translated using average exchange rates. The foreign currency translation adjustment is included in accumulated other comprehensive loss in the Consolidated Balance Sheets. Gains and losses on foreign currency transactions are included in operating income. Foreign currency transaction losses totaled $2.9 million, $3.0 million, and $0.6 million respectively, in 2020 and 2019, and 2018. Research and Development Expense – Costs related to research and development activities are expensed as incurred. We perform research and development primarily under Company-funded programs for commercial products. Research and development expenditures in 2020, 2019, and 2018 were $15.2 million, $20.6 million, and $22.9 million, respectively, and are included in selling, general and administrative expenses in the Consolidated Statements of Operations. Income Taxes – We use the asset and liability method of accounting for income taxes. Temporary differences arising between the tax basis of an asset or liability and its carrying amount on the Consolidated Balance Sheet are used to calculate future income tax assets or liabilities. This method also requires the recognition of deferred tax benefits, such as net operating loss carryforwards. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income (losses) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment of the change. A tax benefit from an uncertain tax position is recognized only if we believe it is more likely than not that the position will be sustained on its technical merits. If the recognition threshold for the tax position is met, only the portion of the tax benefit that we believe is greater than 50 percent likely to be realized is recorded. The Tax Act provides for a territorial tax system, that includes the global intangible low-taxed income (“GILTI”) provision beginning in 2018. The GILTI provisions require us to include in our U.S. income tax return certain current year foreign subsidiary earnings net of foreign tax credits, subject to limitation. We elected to account for the GILTI tax in the period in which it is incurred. In December 2017, U.S. Securities and Exchange Commission ("SEC") issued guidance to address the application of authoritative tax accounting guidance in situations where companies do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which it was enacted. In these instances, the SEC's guidance allowed the recording of provisional amounts during a measurement period not to extend beyond one year of the enactment date. As the Tax Act was enacted at the end of 2017, and ongoing guidance and interpretation has been issued over the ensuing twelve months, we considered the impact of the transition tax, remeasurement of deferred tax assets and liabilities, and other items recorded in our year-end income tax provision for the fourth quarter 2017 to be a provisional estimate and have further analyzed the year-end data and refined our calculations. The refinements to our provisional estimate were made in the third and fourth quarters of 2018 and we completed our accounting for the impact in the fourth quarter of 2018. Please see Note 5 , "Income Taxes," for further information. Cash and Cash Equivalents – Cash and cash equivalents include cash on hand, demand deposits and highly liquid investments with a maturity of three months or less at the time of purchase. Receivables – Accounts receivable are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. We establish an allowance for doubtful accounts receivable based on historical experience and any specific customer collection issues we have identified. Doubtful accounts receivable are written off when a settlement is reached for an amount less than the outstanding historical balance or when we have determined the balance will not be collected. Inventories – Certain domestic inventories are valued by the last-in, first-out (“LIFO”) cost method. Inventories not valued by the LIFO method are valued using the first-in, first-out (“FIFO”) cost method, and are recorded at the lower of cost or net realizable value. Approximately 19% and 19% of inventories were valued by the LIFO method in 2020 and 2019, respectively. Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Depreciation of plant and equipment is determined on the straight-line method over the following estimated useful lives of the assets: buildings and improvements, 5 to 25 years; machinery and equipment, 3 to 10 years. Goodwill and Other Intangible Assets – Goodwill represents the excess of the purchase price over the estimated fair value of the net assets of acquired businesses. Goodwill is not amortized, but instead is subject to annual impairment testing conducted each year as of October 1. The goodwill asset impairment test involves comparing the fair value of a reporting unit to its carrying amount. We would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. To estimate the fair value of our reporting units, we use both a discounted cash flow and market valuation approach. The discounted cash flow approach uses cash flow projections to calculate the fair value of each reporting unit while the market approach relies on market multiples of similar companies. The key assumptions used for the discounted cash flow approach include projected revenues and profit margins, projected capital expenditures, changes in working capital, discount rates and tax rates. For the market approach, we choose a group of peer companies we believe is best representative of each reporting unit. We used a 75% weighting for the discounted cash flow valuation approach and a 25% weighting for the market valuation approach, reflecting our belief that the discounted cash flow valuation approach provides a better indicator of a reporting unit's value since it reflects the specific cash flows anticipated to be generated in the future by the business. As a result of the business segment realignment discussed in this footnote under "Basis of Presentation", our Technetics reporting unit was tested for impairment both before and after the allocation of goodwill and the newly formed Semiconductor reporting unit (the LeanTeq and Technetics semiconductor business) was tested after the allocation. We determined that the Technetics reporting unit was not impaired prior to the transfer of goodwill. After the transfer, the Technetics reporting unit was allocated $67.7 million of goodwill and, as of our allocation date of December 1, 2020, we determined it was not impaired as its fair value exceeded its carrying value by 26%. We also determined that our Semiconductor reporting unit, allocated $180.1 million of goodwill as of our allocation date of December 1, 2020, was not impaired and its fair value exceeded its carrying value by 2%. Any change in assumptions, including forecasted performance or external market information used in our fair value calculation, including the determination of our discount rate, could result in a future impairment of our Semiconductor reporting unit. We will continue to monitor its performance as well as other market factors and test for impairment if we determine a triggering event has occurred. Also as a result of the transition of the oil and gas component of the GPT business, an interim goodwill impairment test was performed in the second quarter of 2020 for all reporting units and we determined that the carrying amount of our goodwill was not impaired either before or after the move. We completed our required annual impairment tests of goodwill as of October 1, 2020, 2019 and 2018. These assessments did not indicate any impairment of the goodwill, and the fair values of each of our reporting units exceeded their carrying values by at least 20%, with the exception of our Semiconductor reporting unit discussed above. The most recent annual assessment as well as the interim goodwill impairment assessments discussed above were conducted in the context of information that was reasonably available to us, as well as our consideration of the future potential impacts of COVID-19 on our business. However, because of uncertainties at this time with respect to the severity and duration of the COVID-19 outbreak, the duration and terms of related governmental orders restricting activities, and the timing and pace of any economic recovery as COVID-19 impacts ultimately abate, we cannot predict with specificity the extent and duration of any future impact on our business and financial results from COVID-19. In addition, although most of our operations have been treated as “essential” operations under applicable government orders restricting business activities that have been issued to date, and accordingly have been permitted to continue to operate, it is possible that they may not continue to be so treated under future government orders, or, even if so treated, site-specific health and safety concerns might otherwise require certain of our operations to be halted for some period of time. Accordingly, if the impact is more severe or longer in duration than we have projected, such impact could potentially result in impairments of assets in future periods. We will test all reporting units again at our next test date of October 1, 2021, or earlier as circumstances may require. Other intangible assets are recorded at cost or, when acquired as a part of a business combination, at estimated fair value. These assets include customer relationships, patents and other technology-related assets, trademarks, licenses and non-compete agreements. Intangible assets that have definite lives are amortized using a method that reflects the pattern in which the economic benefits of the assets are consumed or the straight-line method over estimated useful lives of 2 to 21 years. Intangible assets with indefinite lives are subject to at least annual impairment testing, conducted each year as of October 1, which compares the fair value of the intangible asset with its carrying amount using the relief from royalty method. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value below the carrying value or change the useful life of the asset. In the third quarter of 2020, sales declines by businesses utilizing two of the indefinite-lived trademarks within our Sealing Technologies segment, primarily related to the Garlock trademark, were determined to be triggering events for an interim impairment analysis. Based on the results of this analysis, we recorded a $16.1 million impairment of indefinite-lived trademarks in the third quarter. In the fourth quarter of 2019 we determined our indefinite-lived Motorwheel trade name was impaired at December 31, 2019. We recorded a $7.9 million impairment charge and recorded the trade name at $2.1 million on our Consolidated Balance Sheet at December 31, 2019, which represented the fair-value of the asset. All assets of our Motorwheel business were subsequently divested in 2020. Debt – Debt issuance costs associated with our senior secured revolving credit facility are presented as an asset and subsequently amortized into interest expense ratably over the term of the revolving debt arrangement. Debt issuance costs associated with any of our other debt instruments that are incremental third-party costs of issuing the debt are recognized as a reduction in the carrying value of the debt and amortized into interest expense over the time period to maturity using the interest method. Derivative Instruments – We use derivative financial instruments to manage our exposure to various risks. The use of these financial instruments modifies the exposure with the intent of reducing our risk. We do not use financial instruments for trading purposes, nor do we use leveraged financial instruments. The counterparties to these contractual arrangements are major financial institutions. We use multiple financial institutions for derivative contracts to minimize the concentration of credit risk. The current accounting rules require derivative instruments, excluding certain contracts that are issued and held by a reporting entity that are both indexed to its own stock and classified in shareholders’ equity, be reported in the Consolidated Balance Sheets at fair value and that changes in a derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Fair Value Measurements – Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect our own assumptions. The fair value of intangible assets associated with acquisitions is determined using an income valuation approach. Projecting discounted future cash flows requires us to make significant estimates regarding projected revenues and profit margins, projected capital expenditures, changes in working capital, discount rates, attrition rates, royalty rates, obsolescence rates and tax rates. This non-recurring fair value measurement would be classified as Level 3 due to the absence of quoted market prices or observable inputs for assets of a similar nature. We review the carrying amounts of long-lived assets when certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss is recognized when the carrying amount of the asset group is not recoverable and exceeds its fair value. We estimate the fair values of assets subject to long-lived asset impairment based on our own judgments about the assumptions that market participants would use in pricing the assets. In doing so, we use a market approach when available or an income approach based upon discounted cash flows. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, projected growth rates, discount rates, and royalty rates for certain intangible assets. We classify these fair value measurements as Level 3. Similarly, the fair value computations for the recurring impairment analyses of goodwill and indefinite-lived intangible assets would be classified as Level 3 due to the absence of quoted market prices or observable inputs. The key assumptions used for the discounted cash flow approach include projected revenues and profit margins, projected capital expenditures, changes in working capital, discount rates, tax rates and royalty rates for certain indefinite-lived intangible assets. Significant changes in any of those inputs could result in a significantly different fair value measurement. Pensions and Postretirement Benefits - Amortization of the net gain or loss resulting from experience different from that assumed and from changes in assumptions is included as a component of benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefits under the plan. We amortize prior service cost using the straight-line basis over the average future service life of active participants. For segment reporting purposes, we allocate service cost to each location generating those costs. All other components of net periodic pension cost are reported in other (non-operating) expense. Recently Issued Accounting Guidance |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 2. Discontinued Operations During the fourth quarter of 2019, we entered into an agreement to sell the Fairbanks Morse division, which comprised our entire Power Systems segment. The sale of Fairbanks Morse to an affiliate of funds managed by private equity firm Arcline Investment Management closed on January 21, 2020 for a sales price of $450.0 million. The pre-tax gain on the disposition of Fairbanks Morse was $274.3 million. We have reported, for all periods presented, the financial condition, results of operations, and cash flows of Fairbanks Morse as discontinued operations in the accompanying financial statements. For 2020, 2019, and 2018, results of operations from Fairbanks Morse were as follows: Years Ended December 31, 2020 2019 2018 (in millions) Net sales $ 7.6 $ 284.2 $ 257.9 Cost of sales 7.6 216.9 197.4 Gross profit — 67.3 60.5 Operating expenses: Selling, general, and administrative expenses 1.5 28.2 28.8 Other (0.1) 0.8 0.2 Total operating expenses 1.4 29.0 29 Income (Loss) from discontinued operations before income taxes (1.4) 38.3 31.5 Income tax benefit (expense) 0.3 (7.8) (7.2) Income (loss) from discontinued operations, net of taxes before gain from sale of discontinued operations (1.1) 30.5 24.3 Gain from sale of discontinued operations, net of taxes 209.2 — — Income from discontinued operations, net of taxes $ 208.1 $ 30.5 $ 24.3 The major classes of assets and liabilities for Fairbanks Morse are shown below: As of December 31, 2019 (in millions) Assets: Accounts receivable $ 107.8 Inventories 60.2 Property, plant, and equipment 63.0 Goodwill 11.8 Other assets 11.3 Total assets of discontinued operations $ 254.1 Liabilities: Accounts payable $ 36.9 Accrued expenses 48.2 Other liabilities 4.4 Total liabilities of discontinued operations $ 89.5 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 3. Acquisitions and Dispositions Acquisitions On October 26, 2020, a subsidiary of EnPro formed for this purpose (the "Alluxa Acquisition Subsidiary") acquired all of the equity securities of Alluxa, Inc. ("Alluxa"), a privately held, California-based company. Alluxa is an industrial technology company that provides specialized optical filters and thin-film coatings for the most challenging applications in the industrial technology, life sciences, and semiconductor markets. Alluxa's products are developed through a proprietary coating process using state-of-the-art advanced equipment. Alluxa is included with the Advanced Surface Technologies segment. Alluxa works in collaboration with customers across major end markets to provide customized, complex precision coating solutions through its specialized technology platform and proprietary processes. Alluxa has cultivated long-standing customer relationships across its diversified customer base. Alluxa’s global distribution capabilities support the company’s international reach, serving customers across the Americas, Europe, and Asia. Founded in 2007, Alluxa has two locations in California and is headquartered in Santa Rosa, California. The acquisition was paid for with $238.4 million, net of cash acquired, plus rollover equity from three Alluxa executives (the “Alluxa Executives”). Additionally, there were $5.0 million of acquisition-related costs recorded during the year ended December 31, 2020 related to this transaction which were expensed during the period and included in selling, general and administrative expense in the accompanying Consolidated Statement of Operations. The purchase price of Alluxa was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the identifiable assets acquired less the liabilities assumed was reflected as goodwill which is attributable primarily to the value of the workforce and revenue related to sales of future technology and future customers. Goodwill recorded as part of the purchase price allocation was $126.0 million, of which $0.1 million is expected to be tax deductible over a period of 7 years. Identifiable intangible assets acquired as part of the acquisition were $132.3 million, consisting of definite-lived intangible assets, including customer relationships, proprietary technology, trade names and non-competition agreements, with a weighted average amortization period of approximately 13 years. Inventory acquired includes an adjustment to fair value of $13.9 million. In connection with the completion of the transaction, we entered into a limited liability operating agreement (the “Alluxa LLC Agreement”) with respect to the “Alluxa Acquisition Subsidiary” in connection with the rollover transaction with the Alluxa Executives receiving approximately 7% of the equity interests of the Alluxa Acquisition Subsidiary in return for their contribution of the rollover shares of Alluxa. Pursuant to the Alluxa LLC Agreement, each Alluxa Executive has the right to sell to us, and we have the right to purchase from each Alluxa Executive (collectively, the “Put and Call Rights”), one-third of the Alluxa Executive equity interests in the Alluxa Acquisition Subsidiary during each of three exercise periods in 2024, 2025 and 2026, with any amount not sold or purchased in a prior exercise period being carried forward to the subsequent exercise periods. The Alluxa LLC Agreement also provides for the purchase by us of all of an Alluxa Executive's equity interests in the Alluxa Acquisition Subsidiary in connection with the termination of employment of the Alluxa Executive under specified circumstances, with payments in certain circumstances to be made in annual installments. In certain cases involving the termination of an Alluxa Executive's employment, the consideration payable to an Alluxa Executive for the purchase of his equity interests is equal to the fixed value set forth in the Alluxa LLC Agreement (an aggregate of $17.85 million for all of the Alluxa Executives). In all other cases, including upon any exercise of the Alluxa Put and Call Rights, the consideration payable under the Alluxa LLC Agreement in connection with any such purchase by us of an Alluxa Executive's equity interests in the Alluxa Acquisition Subsidiary is equal to the greater of the fixed value of the equity interests as set forth in the Alluxa LLC Agreement or a price based upon a multiple of twelve-month adjusted EBITDA based upon certain financial metrics of the Alluxa Acquisition Subsidiary, plus cash and less indebtedness of the Alluxa Acquisition Subsidiary prior to the relevant payment, and subject to certain adjustments dependent upon the circumstances of the purchase and sale. The fair value of the Alluxa Executives' equity interests was estimated as of closing to be $16.9 million. To estimate the fair value of the Alluxa Put and Call Rights, we used a Monte Carlo simulation in an option pricing framework (a special case of the Income Approach). In particular, we simulated the future equity value and EBITDA of Alluxa assuming a correlated Geometric Brownian Motion. For each simulation path, the Alluxa Put and Call Rights' payoffs are calculated based on the contractual terms, and then discounted at the term-matched risk-free rate plus, in the case of the put option, allowance for counterparty credit risk. Finally, the value of the Alluxa Put and Call Rights is calculated as the average present value over all simulated paths. The model uses our EBITDA forecasts adjusted for risk to simulate future EBITDA in a risk-neutral framework. Due to the presence of the put arrangement, the Alluxa Executives' equity interest is presented as redeemable non-controlling interest since redemption is not solely within our control. We initially recognized the amount at fair value, inclusive of the put-call provisions. We will adjust the redeemable non-controlling interest when the redemption value exceeds the carrying value with changes recognized as an adjustment to equity. As noted earlier, the put option or call option may be exercised in the event of certain employment terminations or other events. The put/call price will be reduced as described above for certain types of employment terminations. As a result of this option related to employment termination, a portion of the non-controlling interest will be classified as compensation expense for financial reporting purposes. We calculated the value of this compensation (the “Compensation Amount”) using a with-and-without method. In particular, we calculated the value of the Compensation Amount as the difference between the value of the net put and call options with and without the reduced strike prices. Based on this approach we calculated the Compensation Amount to be $9.8 million, as of the valuation date. This amount will be recognized as compensation expense over the term of the options and is subject to change based on the ultimate redemption value of the Alluxa Executives' equity interests. We continue to evaluate the purchase price allocation of this acquisition, primarily the value of certain intangible assets and income tax assets and liabilities, and it may be revised in future periods as these estimates are finalized. The following table represents the preliminary purchase price allocation: (in millions) Accounts receivable $ 6.1 Inventories 18.9 Property, plant and equipment 11.0 Goodwill 126.0 Other intangible assets 132.3 Other assets 9.1 Deferred income taxes (38.1) Liabilities assumed (10.0) Redeemable non-controlling interest (16.9) $ 238.4 On September 25, 2019, we acquired all of the equity securities of LeanTeq Co., Ltd. and its affiliate LeanTeq LLC (collectively referred to as “LeanTeq”). LeanTeq primarily provides refurbishment services for critical components and assemblies used in state-of-the-art semiconductor equipment. This equipment is used to produce the latest and most technologically advanced microchips for smartphones, autonomous vehicles, high-speed wireless connectivity, artificial intelligence, and other leading-edge applications. Founded in 2011 and headquartered in Taoyuan City, Taiwan, LeanTeq has two locations in Taiwan and one in the United States (Silicon Valley). LeanTeq is included within the Advanced Surface Technologies segment. The acquisition was paid for with $271.2 million, net of cash acquired, plus rollover equity from two of LeanTeq sellers (the “LeanTeq Executives”) who were executives of the acquired entity. This rollover equity gives the LeanTeq Executives approximately a 10% ownership share (the "Rollover Equity") of Lunar Investment LLC (“Lunar”), EnPro’s subsidiary that purchased LeanTeq. Additionally, there were $6.4 million of acquisition-related costs recorded during the year ended December 31, 2019, which were expensed during the period and included in selling, general and administrative expense in the accompanying Consolidated Statements of Operations. Pursuant to a limited liability company agreement (the "LeanTeq LLC Agreement") entered into with respect to Lunar as part of the LeanTeq acquisition, EnPro has the right to buy from each LeanTeq Executive, (each a LeanTeq "Call Option”), and the right to sell (the "Put Option") such LeanTeq Executive's Rollover Equity as follows: EnPro has the right to buy, and the LeanTeq Executive has the right to sell, such Rollover Equity within 90 days following the third anniversary of the closing and payable in two installments as follows (the "Put/Call Price"): • Half of the price payable for the Rollover Equity is to be equal to a pro rata portion of a multiple of EBITDA (as defined) of Lunar (on a consolidated basis) during the last 12 months (“LTM”) ending on the closest month end prior to the last month end before the purchase or sale (the "First Measurement Date") less Lunar's consolidated net debt in excess of cash as of the First Measurement Date (the "First Exercise Price"). The applicable multiple depends on the future LTM EBITDA margin and revenue growth; • The remaining half of the price payable for the Rollover Equity will be equal to an amount that is the higher of the First Exercise Price and a pro rata portion of a multiple of EBITDA of Lunar (on a consolidated basis) during the last 12 months (“LTM”) prior to the first anniversary of the First Measurement Date (the "Second Measurement Date") less Lunar's consolidated net debt in excess of cash as of the Second Measurement Date. The applicable multiple depends on the future LTM EBITDA margin and revenue growth. We received $0.1 million in the first quarter of 2020 as a result of the final working capital adjustment that related to our LeanTeq acquisition. Since the completion of the acquisition of Taiwan-based LeanTeq in September 2019, we commenced an analysis regarding whether we would permanently retain LeanTeq’s earnings in Taiwan or repatriate them to the United States. During the second quarter of 2020 we finalized our analysis and determined that, given the significance of the incremental tax cash cost to EnPro of repatriating LeanTeq earnings to the United States, we will retain any earnings generated by LeanTeq in Taiwan as long as there was a significant incremental tax cash cost of repatriating amounts to the United States. As a result of the decision to retain earnings in Taiwan, the income tax rate utilized in establishing deferred tax liabilities in the acquisition date balance sheet of LeanTeq was increased from 20% to 23.6%, reflecting a local tax of approximately 3.6% on undistributed earnings. The increase in the income tax rate results in an increase in goodwill and deferred tax liabilities in the acquisition date balance sheet of $7.1 million, which was initially reflected in the consolidated balance sheet as of June 30, 2020. The decision on our retention of LeanTeq’s earnings in Taiwan was our final required purchase accounting determination. Management concluded that the purchase accounting for the LeanTeq acquisition was finalized at June 30, 2020. On July 2, 2019, we acquired 100% of the stock of The Aseptic Group (comprising Aseptic Process Equipment SAS and Aseptic Services SARL, collectively referred to as “Aseptic”), a privately-held company which distributes, designs and manufactures aseptic fluid transfer products for the pharmaceutical and biopharmaceutical industries. Aseptic, headquartered in Limonest, France, is included as part of our Garlock group of companies within the Sealing Technologies segment. The business was acquired for $39.3 million, net of cash acquired. Sales of $5.7 million and a pre-tax loss of $6.1 million for Alluxa are included in our Consolidated Statements of Operations for the year ended December 31, 2020. Sales of $14.4 million and pre-tax income of $1.5 million for LeanTeq and Aseptic are included in our Consolidated Statements of Operations for the year December 31, 2019. The following unaudited pro forma condensed consolidated financial results of operations for the years ended December 31, 2020, 2019, and 2018 are presented as if these acquisitions had been completed on January 1, 2018: Years Ended December 31, 2020 2019 2018 (in millions) Pro forma net sales $ 1,098.7 $ 1,261.2 $ 1,335.2 Pro forma net income (loss) from continuing operations (22.9) 5.0 (27.5) These amounts have been calculated after applying our accounting policies and adjusting the results of Alluxa, LeanTeq and Aseptic to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied as of January 1, 2018 as well as additional interest expense to reflect financing required, together with the consequential tax effects. The supplemental pro forma net income for the year ended December 31, 2020 was adjusted to exclude $5.0 million of pre-tax acquisition-related costs. The supplemental pro forma net income for the year ended December 31, 2019 was adjusted to exclude $7.0 million of pre-tax acquisition-related costs. The supplemental pro forma net income for the year ended December 31, 2018 was adjusted to include $12.0 million of these charges. These pro forma financial results have been prepared for comparative purposes only and do not reflect the effect of synergies that would have been expected to result from the integration of these acquisitions. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the acquisitions occurred on January 1, 2018, or of future results of the consolidated entities. Dispositions On December 31, 2020, we sold the shares of Technetics Group UK Limited ("Technetics Group UK") for a nominal cash purchase price. As part of the agreement with the buyer, we delivered to the buyer £148,000 of cash to fund value added tax ("VAT") payments due for VAT liabilities already incurred and £50,000 for working capital. We incurred a loss upon the sale of approximately £976,000 ($1.3 million). On November 30, 2020, we closed on the sale of our bushing block business in our Engineered Materials segment principally located in Dieuze, France. Prior to finalizing the sale of the business, we determined it to be impaired and recorded a $6.2 million impairment charge that consisted of $1.8 million of non-cash impairments of long-lived assets and $4.4 million of cash payments due to the buyer at closing. The impairment charge was recorded in other operating expenses on our consolidated statement of operations. Upon closing of the business, we recorded a $0.1 million gain on the sale of business in other non-operating expense on our consolidated statement of operations. Total charges related to the exit of our bushing block business were $6.1 million. On November 20, 2020, we completed the sale of the Air Springs portion of our heavy-duty trucking business for $23.1 million in cash, net of an estimated working capital adjustment and fees, and a long-term promissory note with a fair-value of $6.4 million (face value of $7.5 million). As part of the agreement with the buyer, we retained the U.S. accounts receivable for the business, which created a large working capital adjustment at closing. The amount of retained accounts receivable in the U.S. was approximately $8.6 million. The purchase price is subject to final working capital adjustments. In the fourth quarter of 2020, we recorded a $0.1 million non-cash loss on sale of business. In August of 2020, subsequent to announcing the exit of our Motor Wheel® brake drum and Crewson® brake adjuster brands in the second quarter of 2020, we identified a buyer and entered into a definitive agreement to sell the assets related to the businesses. On September 2, 2020, we completed the sale for $8.9 million, net of transaction fees. This transaction resulted in a $3.1 million loss on sale of the business in other non-operating expense on our consolidated statements of operations, comprised of a $3.0 million non-cash loss on the sales of assets and a $0.1 million loss on other expenses. Prior to finding a buyer of the brands, we determined the assets were impaired and recorded restructuring and impairment charges of $7.4 million in other operating expenses on our consolidated statements of operations. Total losses on the exit of our Motor Wheel® brake drum and Crewson® brake adjuster brands recorded in 2020 were $10.5 million. In the second quarter of 2020 we entered into an agreement to sell the Lunar® air disc brake business located in both the U.S. and in Shanghai, China. The sale of the U.S. assets of the business closed in the third quarter of 2020 for $0.3 million, resulting in a gain of $0.2 million recorded in non-operating income on our consolidated statement of operations. The sale of the Lunar® manufacturing facility located in Shanghai, China closed in the fourth quarter of 2020 for $0.9 million, resulting in a loss of $0.1 million. Prior to closing on the sale of the business, we determined the assets to be impaired and recorded a $2.1 million impairment charge, of which $1.6 million was related to impairment of long-lived assets and $0.5 million related to the impairment of inventory. The impairment of long-lived assets was recorded in other operating expense and the impairment of inventory was recorded in cost of sales on our consolidated statement of operations. Total net loss related to the exit of the Lunar® air disc brake business was $1.9 million. For a further discussion of the impairment charges recorded in connection with the sale of the facility in Dieuze, Motor Wheel® brake drum and Crewson® brake adjuster brands, and the Lunar® air disc brake business, see Note 4 , "Other Expense". In 2019 we recorded a $16.3 million pre-tax loss related to the sale of certain assets and certain liabilities of our brake products business unit located in Rome, Georgia, which was included in our Sealing Technologies segment. The loss is composed of the loss on the sale of the business, which closed on September 25, 2019, and the loss on the sale of the facility which closed in the first quarter of 2020. As a result of the agreement to sell the related building, we recorded a $0.6 million loss in other expense on our Consolidated Statement of Operations for the year ended December 31, 2019. Upon entering the agreement, we ceased depreciation and adjusted the net book value of the building to the contracted sales price and reclassified to other current assets on our Consolidated Balance Sheet as of December 31, 2019. The sale of the business resulted in a $15.7 million loss that is included in other expense on our Consolidated Statements of Operations for the year ended December 31, 2019. The loss is composed of an $11.3 million non-cash loss on the sale of the business and a $4.4 million loss related to contract cancellation costs, severance, and other expenses. The aggregate sales price for the brake products business totaled $6.8 million, of which we received $3.6 million in September 2019 at the closing of the sale of the business and received $0.1 million in the fourth quarter of 2019 that was applied to the sale of the building, which closed in February 2020. On the closing of the sale of the building, we received $2.9 million. We received the balance of $0.2 million later in 2020 which was net of an adjustment based on final inventory balances. The assets, liabilities, and results of operations for the brake products business unit are not significant to our consolidated financial position or result of operations. See Note 2 |
Other Expense
Other Expense | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Expense | 4. Other Expense Operating We incurred $46.7 million, $35.1 million and $22.2 million of restructuring and impairment costs during the years ended December 31, 2020, 2019 and 2018, respectively. In the fourth quarter of 2020, we decided to exit the manufacturing of metallic gaskets. As a result of this decision, we evaluated the product line and determined the assets were impaired. We recorded a $1.5 million impairment, of which $1.4 million was related to the impairment of long-lived assets and $0.1 million was related to inventory. In the fourth quarter of 2020, we announced a restructuring and reduction in our CPI German workforce. As a result, we recorded $3.4 million in restructuring charges related to severance. In the third quarter of 2020, sales declines by businesses utilizing two of the indefinite-lived trademarks within our Sealing Technologies segment were determined to be triggering events for an interim impairment analysis. Based on the results of this analysis, we recorded a $16.1 million impairment of indefinite-lived trademarks in the third quarter. Prior to selling our bushing block business operated at the Dieuze facility, we evaluated the business and determined it was impaired and incurred restructuring charges. We recorded $8.6 million in restructuring and impairment charges, that consisted of $3.0 million of non-cash impairments of long-lived assets, $4.4 million (3.7 million EUR) of cash payments paid to the buyer at closing, and $1.2 million in severance, legal and other costs. The exit from our Motor Wheel® brake drum and Crewson® brake adjuster brands resulted in restructuring and impairment charges of $7.4 million in 2020, of which $3.6 million was related to inventory impairment charges, $3.5 million was impairment of intangible assets, and $0.3 million related to severance, contract cancellation costs, and other expenses. million. In the second quarter of 2020, we entered into an agreement to sell the Lunar® air disc brake business. As a result of this agreement, we incurred $1.9 million in impairment charges, of which $1.4 million related to impairment of long-lived assets and $0.5 million related to impairment of inventory. In addition to the above mentioned restructuring and impairment charges, we undertook various other smaller restructuring and impairment action in 2020 that resulted in recording $7.6 million of restructuring related to severance and other exit costs and $0.2 million of impairment related to inventory of discontinued product lines. Workforce reductions in 2020 associated with the aforementioned restructuring actions totaled 289 administrative and manufacturing positions. Based upon an analysis of the Motorwheel product line in the Stemco division of our Sealing Technologies segment, we determined that the long-lived assets of the Motorwheel product line were not recoverable as of December 31, 2019. As a result, we recorded an impairment of $21.0 million, of which $9.2 million related to the impairment of certain finite-lived intangible assets, $7.9 million related to the indefinite lived Motorwheel trademark, and $3.9 million related to the impairment of property, plant, and equipment. Additionally, in the fourth quarter of 2019, we recorded restructuring charges related to our decision to shut down and exit production of our ATDynamics, Aeris and BatRF product lines in the Stemco division of our Sealing Technologies segment. As a result, we recorded a $3.1 million inventory impairment, $3.1 million impairment of property, plant, and equipment and intangible assets related to these products, and $1.0 million in severance and other costs. Additionally, in the fourth quarter of 2019, we evaluated certain long-lived assets in our Commercial Vehicle Components businesses in the Stemco division of our Sealing Technologies segment and determined these assets were not recoverable. As a result, we recorded a $1.6 million impairment loss related to intangible assets associated with the business. Restructuring actions in 2019 are reflected in other (operating) expense in our Consolidated Statement of Operations other than the inventory related charges of $3.1 million, which are reflected in cost of sales. Including smaller targeted restructuring actions, total restructuring costs and impairment charges for our Stemco division were $30.8 million for the year ended December 31, 2019. Workforce reductions in 2019 associated with our exit from the ATDynamics, Aeris, and BatRF product lines as well as other smaller targeted restructuring actions totaled 121 administrative and manufacturing positions. In the fourth quarter of 2018, we implemented a restructuring plan under which our Stemco heavy-duty truck business in the Sealing Technologies segment discontinued the manufacturing of brake drum friction. The restructuring plan involved the shut down of production lines that occupied a portion of Stemco’s owned manufacturing facility in Rome, Georgia. We recorded total restructuring expenses related to the exit of approximately $15.4 million in the fourth quarter of 2018, composed primarily of non-cash charges due to the impairment of inventory, equipment and other tangible assets. The net restructuring costs recorded in 2018 are reflected in our other (operating) expense in our Consolidated Statement of Operations other than inventory related charges of $1.1 million, which are reflected in costs of sales. In the second quarter of 2018, we commenced the exit from our industrial gas turbine business in the Sealing Technologies segment located in Oxford, Massachusetts. We sold the land and building at this location in June 2018, resulting in a realized gain of $21.7 million. We incurred severance expenses of $3.8 million, net tangible asset write downs of $1.8 million, the write-off of customer relationship intangible assets associated with the business of $19.1 million, and other costs related to the restructuring of $0.5 million. These transactions resulted in total net restructuring costs related to the exit of $3.5 million. These net costs are reflected within other (operating) expense in our Consolidated Statement of Operations other than inventory-related costs of $2.0 million, which were reflected in costs of sales. Workforce reductions in 2018 associated with our exit from the industrial gas turbine business and other smaller targeted restructuring actions totaled 98 administrative and manufacturing positions. Restructuring reserves at December 31, 2020, as well as activity during the year, consisted of: Balance Provision Payments Balance (in millions) Personnel-related costs $ 1.4 $ 12.0 $ (8.9) $ 4.5 Facility relocation and closure costs — 5.4 (5.2) 0.2 $ 1.4 $ 17.4 $ (14.1) $ 4.7 Also included in restructuring costs for 2020 were asset write-downs, net of gains, of approximately $29.3 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2019, as well as activity during the year, consisted of: Balance Provision Payments Balance (in millions) Personnel-related costs $ — $ 5.1 $ (3.7) $ 1.4 Facility relocation and closure costs 1.0 1.2 (2.2) — $ 1.0 $ 6.3 $ (5.9) $ 1.4 Also included in restructuring costs for 2019 were asset write-downs of approximately $28.8 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2018, as well as activity during the year, consisted of: Balance, December 31, 2017 Provision Payments Balance (in millions) Personnel-related costs $ 0.7 $ 6.7 $ (7.4) $ — Facility relocation and closure costs 1.2 1.3 (1.5) 1.0 $ 1.9 $ 8.0 $ (8.9) $ 1.0 Also included in restructuring costs for 2018 were asset write-downs of approximately $14.2 million that did not affect the restructuring reserve liability. Restructuring costs by reportable segment are as follows: Years Ended December 31, 2020 2019 2018 (in millions) Sealing Technologies $ 30.3 $ 32.2 $ 21.3 Advanced Surface Technologies 0.1 0.1 0.1 Engineered Materials 16.3 2.1 0.7 Corporate — 0.7 0.1 $ 46.7 $ 35.1 $ 22.2 Also included in other operating expense for the years ended December 31, 2020, 2019 and 2018 was $7.8 million, $0.2 million and $2.0 million, respectively, primarily consisting of legal fees and the settlement in 2020 of a legal claim with respect to products last supplied in 2008. Non-Operating During 2020, 2019 and 2018, we recorded expense of $38.2 million, $14.5 million and $13.4 million, respectively, due to environmental reserve increases based on additional information at several specific sites and other ongoing obligations of previously owned businesses. Refer to Note 20 , "Commitments and Contingencies - Environmental," for additional information about our environmental liabilities. We report the service cost component of pension and other postretirement benefits expense in operating income in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are presented in other (non-operating) expense. For the years ended December 31, 2020, 2019 and 2018, we reported approximately $(3.0) million, $3.3 million and $12.0 million, respectively, of expense (income) on the Consolidated Statements of Operations related to the components of net benefit cost other than service cost. Refer to Note 15 , "Pensions and Postretirement Benefits," for additional information regarding net benefit costs. In 2020, we recorded a pretax loss of $2.6 million related to the sale of several businesses, including the Technetics Group UK Limited business, the Air Springs portion of our heavy-duty trucking business, our Motor Wheel® brake drum and Crewson® brake adjuster brands, and our Lunar ® air disc brake business located in our Sealing Technologies segment as well as our bushing block business principally located in Dieuze, France from our Engineered Materials segment. Sales reported for the divested businesses included in our net sales for the years ended December 31, 2020, 2019, and 2018 were $110.1 million, $161.2 million, and $173.5 million, respectively. For a further discussion on businesses disposed of, see Note 3 , "Acquisitions and Dispositions." In 2019, we recorded a pre-tax loss of $16.3 million related to the sale of certain assets and certain liabilities of our brake products business unit located in Rome, Georgia, which was included in our Sealing Technologies segment. The loss is composed of the loss on the sale of the business, which closed in the third quarter of 2019, and the loss on the sale of the facility, which closed in the first quarter of 2020. The sales reported by the business and included in our net sales for the years ended December 31 2019, and 2018 were $37.5 million, and $37.1 million, respectively. Additional disclosures are not presented since the assets, liabilities and results of operations are not significant to our consolidated financial position or results of operations. We recorded a loss of approximately $18.1 million on the redemption of certain of our debt instruments in the fourth quarter of 2018. Refer to Note 12 , "Long-term Debt - Senior Notes," for additional information regarding this transaction. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) from continuing operations before income taxes as shown in the Consolidated Statements of Operations consists of the following: Years Ended December 31, 2020 2019 2018 (in millions) Domestic $ (88.3) $ (67.3) $ (75.3) Foreign 61.5 71.6 90.4 Total $ (26.8) $ 4.3 $ 15.1 A summary of income tax expense (benefit) from continuing operations in the Consolidated Statements of Operations is as follows: Years Ended December 31, 2020 2019 2018 (in millions) Current: Federal $ (15.1) $ (1.4) $ (4.3) Foreign 26.3 24.9 22.8 State (0.1) 1.3 (0.3) 11.1 24.8 18.2 Deferred: Federal (5.5) (6.4) (5.2) Foreign (8.1) (19.5) 1.4 State (1.0) (2.4) 5.4 (14.6) (28.3) 1.6 Total $ (3.5) $ (3.5) $ 19.8 The GILTI provisions require us to include in our U.S. income tax return certain current foreign subsidiary earnings net of foreign tax credits, subject to limitation. We elected to account for the GILTI tax in the period in which it is incurred. As a result of these provisions, our effective tax rate was increased by 54.8% in 2019. However, due to the GILTI high tax exception election enacted during 2020, we recorded a GILTI benefit that reduced the effective tax rate by 17.6% in 2020, after applying the retroactive benefit to prior years. In December 2017, the SEC issued guidance to address the application of authoritative tax accounting guidance in situations where companies do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which it was enacted. In these instances, the SEC's guidance allowed the recording of provisional amounts during a measurement period not to extend beyond one year of the enactment date. As the Tax Act was enacted at the end of 2017, and ongoing guidance and interpretation has been issued over the ensuing twelve months, we considered the impact of the transition tax, remeasurement of deferred tax assets and liabilities, and other items recorded in our year-end income tax provision for the fourth quarter 2017 to be a provisional estimate, and further analyzed the year-end data and refined our calculations. These refinements were made in the third and fourth quarters of 2018, and we completed our accounting for the net impact in the fourth quarter of 2018. In the third and fourth quarters of 2018, refinements were made to our provisional amounts to incorporate the impact of additional IRS guidance regarding modifications to the transition tax and further analysis of our year-end data. These refinements resulted in a $2.3 million net tax charge comprised of a $7.3 million tax charge associated with the remeasurement of deferred tax assets and liabilities, and a $5.0 million tax benefit related to the reduction of the transition tax, net of foreign tax credits. In addition, GILTI and other provisions of the Tax Act, beginning in 2018, resulted in an additional tax charge of $5.6 million. Significant components of deferred income tax assets and liabilities at December 31, 2020 and 2019 are as follows: 2020 2019 (in millions) Deferred income tax assets: Net operating losses and tax credits $ 20.5 $ 34.8 Postretirement benefits other than pensions 0.5 2.1 Environmental reserves 9.5 8.6 Retained liabilities of previously owned businesses 0.8 1.0 Accruals and reserves 5.2 6.5 Operating leases 11.1 10.9 Pension obligations — 1.9 Inventories — 6.2 Cross currency swap 2.2 — Interest 11.0 17.8 Compensation and benefits 7.1 7.3 Other 0.8 — Gross deferred income tax assets 68.7 97.1 Valuation allowance (6.6) (7.9) Total deferred income tax assets 62.1 89.2 Deferred income tax liabilities: Depreciation and amortization (151.6) (120.8) Operating leases (11.1) (10.9) Cross currency swap — (2.9) Joint ventures — (0.3) Inventories (0.4) — Pension obligations (2.9) — Total deferred income tax liabilities (166.0) (134.9) Net deferred income tax liabilities $ (103.9) $ (45.7) The net deferred tax assets (liabilities) are reflected on a jurisdictional basis as a component of the December 31, 2020 and 2019 Consolidated Balance Sheet line items noted below: 2020 2019 (in millions) Other assets (non-current) $ 23.9 $ 25.5 Deferred taxes and non-current income taxes payable (127.8) (71.2) Net deferred income tax liabilities $ (103.9) $ (45.7) At December 31, 2020, we had $58.8 million of foreign net operating loss carryforwards, of which $27.3 million expire at various dates from 2021 through 2040, and $31.5 million have an indefinite carryforward period. We also had state net operating loss carryforwards with a tax effect of $5.1 million which expire at various dates from 2022 through 2040. These net operating loss carryforwards may be used to offset a portion of future taxable income and, thereby, reduce or eliminate our state or foreign income taxes otherwise payable. We determined, based on the available evidence, that it is uncertain whether certain foreign subsidiaries will generate sufficient future taxable income to recognize certain of these deferred tax assets. As a result, valuation allowances of $6.6 million and $7.9 million have been recorded as of December 31, 2020 and 2019, respectively. Valuation allowances recorded relate to certain state and foreign net operating losses and other net deferred tax assets in jurisdictions where future taxable income is uncertain. Valuation allowances may arise associated with deferred tax assets recorded in purchase accounting. In accordance with applicable accounting guidelines, any reversal of a valuation allowance that was recorded in purchase accounting reduces income tax expense. The effective income tax rate from operations varied from the statutory federal income tax rate as follows: Percent of Pretax Income 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % U.S. taxation of foreign profits, net of foreign tax credits (0.6) 3.3 1.1 Research and employment tax credits 3.0 (17.2) (7.7) State and local taxes 3.2 (22.4) 25.5 Foreign tax rate differences (19.4) 152.3 27.8 Statutory changes in tax rates (1.2) 17.8 (1.1) Valuation allowance (2.5) (349.2) (6.3) Changes in uncertain tax positions (2.0) (9.0) 9.9 Nondeductible expenses (7.7) 57.3 5.7 GILTI and FDII 17.6 54.8 10.4 Other Tax Act items — — 48.2 Other items, net 1.8 12.0 (3.1) Effective income tax rate 13.2 % (79.3) % 131.4 % Due to a net pretax loss for the current year-end, the 2020 effective rate items listed above with negative signs represent increases to income tax expense and positive amounts represent decreases to income tax expense. The effective tax rate for 2020 was primarily driven by the foreign rate differential related to certain foreign divestitures and earnings that were subject to higher tax rates, the effect of these items resulted in a net $5.2 million increase in income tax expense. During 2020, we identified errors related to our accounting for income taxes that primarily relate to the 2017 through 2019 annual periods. Such errors resulted in an overstatement of tax expense by approximately $4.9 million in our previously issued financial statements. We concluded the errors were not material to our previously issued financial statements and corrected the cumulative $4.9 million prior-period errors as an out-of-period adjustment to income tax expense during the fourth quarter of 2020. Additionally, the effective tax rate was also reduced by the GILTI high-tax exception election and increased for non-deductible expenses which resulted in a net $2.7 million decrease in income tax expense. As of December 31, 2020 and 2019, we had $12.2 million and $10.1 million, respectively, of gross unrecognized tax benefits. Of the gross unrecognized tax benefit balances as of December 31, 2020 and 2019, $8.3 million and $8.5 million, respectively, would have an impact on our effective tax rate if ultimately recognized. We record interest and penalties related to unrecognized tax benefits in income tax expense. In addition to the gross unrecognized tax benefits above, we had $3.3 million and $2.7 million accrued for interest and penalties at December 31, 2020 and 2019, respectively. Income tax expense for the year ended December 31, 2020 includes $0.4 million for interest and penalties related to unrecognized tax benefits. Income tax expense for the years ended December 31, 2019 and 2018, in total included $0.5 million for interest and penalties related to unrecognized tax benefits. A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (excluding interest) is as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 10.1 $ 2.9 $ 3.8 Additions based on tax positions related to the current year 1.9 1.2 0.2 Additions for tax positions of prior years 0.2 7.2 — Reductions as a result of a lapse in the statute of limitations — (1.2) (0.1) Reductions as a result of audit settlements — — (1.0) Balance at end of year $ 12.2 $ 10.1 $ 2.9 U.S. federal income tax returns for tax years 2014 and forward remain open to examination. In June 2017, the U.S. Internal Revenue Service (“IRS”) began an examination of our 2014 through 2017 U.S. federal income tax returns. Although this examination is part of a routine and recurring cycle, we cannot predict the final outcome or expected conclusion date of the audit. We and our subsidiaries are also subject to income tax in multiple state and foreign jurisdictions. Two foreign and various state tax returns are also currently under examination. The most significant of these include France and Taiwan. Substantially all significant state, local and foreign income tax returns for the years 2015 and forward are open to examination. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 6. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing the income (loss) by the applicable weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated using the weighted-average number of shares of common stock as adjusted for any potentially dilutive shares as of the balance sheet date. The computation of basic and diluted earnings per share for calendar years 2020, 2019, and 2018 is as follows (in millions, except per share data): 2020 2019 2018 Numerator (basic and diluted): Income (loss) from continuing operations attributable to EnPro Industries, Inc. $ (23.7) $ 7.8 $ (4.7) Income from discontinued operations 208.1 30.5 24.3 Net income $ 184.4 $ 38.3 $ 19.6 Denominator: Weighted-average shares – basic 20.5 20.7 20.9 Share-based awards — 0.1 — Weighted-average shares – diluted 20.5 20.8 20.9 Basic earnings (loss) per share: Continuing operations $ (1.15) $ 0.38 $ (0.22) Discontinued operations 10.13 1.48 1.16 Net income per share $ 8.98 $ 1.86 $ 0.94 Diluted earnings (loss) per share: Continuing operations $ (1.15) $ 0.38 $ (0.22) Discontinued operations 10.13 1.47 1.16 Net income per share $ 8.98 $ 1.85 $ 0.94 In the years ended December 31, 2020 and 2018 there were losses attributable to continuing operations. There were 0.1 million and 0.2 million, respectively, of potentially dilutive shares excluded from the calculation of diluted earnings per share during those years since they were antidilutive. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories As of December 31, 2020 2019 (in millions) Finished products $ 69.4 $ 80.6 Work in process 24.8 23.7 Raw materials and supplies 48.7 56.1 142.9 160.4 Reserve to reduce certain inventories to LIFO basis (3.8) (3.3) Total inventories $ 139.1 $ 157.1 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8. Property, Plant and Equipment As of December 31, 2020 2019 (in millions) Land $ 11.0 $ 13.6 Buildings and improvements 108.9 123.6 Machinery and equipment 329.4 341.8 Construction in progress 11.5 17.7 460.8 496.7 Less accumulated depreciation (265.8) (277.9) Total $ 195.0 $ 218.8 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets The changes in the net carrying value of goodwill by reportable segment for the years ended December 31, 2020 and 2019 are as follows: Sealing Advanced Engineered Total (in millions) Goodwill as of December 31, 2018 $ 269.9 $ 35.6 $ 16.6 $ 322.1 Foreign currency translation 1.4 4.0 0.1 5.5 Acquisitions 30.9 128.1 — 159.0 Dispositions (1.3) — — (1.3) Goodwill as of December 31, 2019 300.9 167.7 16.7 485.3 Foreign currency translation 3.4 6.9 — 10.3 Acquisitions — 133.1 — 133.1 Dispositions (6.9) — — (6.9) Goodwill as of December 31, 2020 $ 297.4 $ 307.7 $ 16.7 $ 621.8 The goodwill balances reflected above are net of accumulated impairment losses of $27.8 million for the Sealing Technologies segment as of December 31, 2020, 2019 and 2018 and $154.8 million for the Engineered Materials segment as of December 31, 2020 and 2019, and 2018. Identifiable intangible assets are as follows: As of December 31, 2020 As of December 31, 2019 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 505.5 $ 177.8 $ 470.1 $ 166.2 Existing technology 179.6 41.3 117.5 50.8 Trademarks 44.6 25.7 39.4 24.1 Other 37.6 22.3 33.6 24.0 767.3 267.1 660.6 265.1 Indefinite-Lived: Trademarks 53.4 — 71.4 — Total $ 820.7 $ 267.1 $ 732.0 $ 265.1 Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $37.7 million, $32.5 million and $28.9 million, respectively. The estimated amortization expense for definite-lived (amortized) intangible assets for the next five years is as follows (in millions): 2021 $ 44.8 2022 $ 42.6 2023 $ 41.0 2024 $ 40.2 2025 $ 39.3 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 10. Leases We regularly enter into operating leases primarily for real estate, equipment, and vehicles. Operating lease arrangements are generally utilized to secure the use of assets if the terms and conditions of the lease or the nature of the asset makes the lease arrangement more favorable than a purchase. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We have elected an accounting policy to combine lease and non-lease components. Our building leases have remaining terms up to eleven years, some of which contain options to renew up to five years, and some of which contain options to terminate. Some leases contain non-lease components, which may include items such as building common area maintenance, building parking, or general service and maintenance provided for leased assets by the lessor. Our vehicle, equipment, and other leases have remaining lease terms up to six years, some of which contain options to renew or become evergreen leases, with automatic renewing one-month terms, and some of which have options to terminate. Our right of use assets and liabilities related to operating leases as of December 31, 2020 and December 31, 2019 are as follows: Balance Sheet Classification December 31, December 31, (in millions) Right-of-use assets Other assets $ 44.1 $ 37.5 Current liability Accrued expenses $ 10.1 $ 9.3 Long-term liability Other liabilities 35.3 28.4 Total liability $ 45.4 $ 37.7 Approximately 90% of the dollar value of our operating lease assets and liabilities arise from real estate leases and approximately 10% arise from equipment and vehicle leases as of December 31, 2020. As of December 31, 2019, approximately 86% of the dollar value of our operating lease assets and liabilities arise from real estate leases and approximately 14% arise from equipment and vehicle leases. We entered into additional operating leases, including leases acquired through business acquisitions, and renewed existing leases that resulted in new right-of-use assets totaling $16.6 million and $20.8 million for the years ended December 31, 2020 and December 31, 2019, respectively. Most of our leases do not provide an implicit rate for calculating the right of use assets and corresponding lease liabilities. Accordingly, we determine the interest rate that we would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in similar economic environments. We used the incremental borrowing rate at January 1, 2019 for all leases that commenced prior to that date. Our lease costs and cash flows for the years ended December 31, 2020 and December 31, 2019 were as follows: December 31, December 31, (in millions) Lease costs: Operating lease costs $ 11.5 $ 10.9 Short-term and variable lease costs $ 0.7 $ 0.9 Cash flows: Operating cash flows from operating leases $ 11.5 $ 11.1 Our weighted average remaining lease term and discount rates at December 31, 2020 and December 31, 2019 were as follows: December 31, December 31, Weighted average remaining lease term (in years) 5.9 5.9 Weighted average discount rate 3.4 % 3.9 % A maturity analysis of undiscounted operating lease liabilities is shown in the table below: Operating Lease Payments (in millions) 2021 $ 11.4 2022 9.0 2023 8.2 2024 6.3 2025 4.9 Thereafter 10.4 Total lease payments 50.2 Less: interest (4.8) Present value of lease liabilities $ 45.4 The operating lease payments listed in the table above include all current leases. The payments also include all renewal periods that we are reasonably certain to exercise. We rarely enter into finance leases or act as a lessor. Since finance lease amounts, lessor details, and finance lease related costs are not significant to our consolidated financial position or results of operations, additional disclosures regarding finance leases are not presented. Net rent expense was $13.5 million for the year ended December 31, 2018. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 11. Accrued Expenses As of December 31, 2020 2019 (in millions) Salaries, wages and employee benefits $ 46.3 $ 43.7 Interest 4.4 5.1 Environmental 12.6 25.2 Income taxes 9.9 9.1 Taxes other than income 9.4 13.5 Operating lease liability 10.1 9.3 Other 35.7 31.4 $ 128.4 $ 137.3 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 12. Long-term Debt As of December 31, 2020 2019 (in millions) Senior notes $ 345.9 $ 345.3 Revolving debt — 133.9 Term loan facility 145.4 149.1 Other notes payable — 1.0 491.3 629.3 Less current maturities of long-term debt 3.8 4.1 $ 487.5 $ 625.2 Revolving Credit Facility On September 25, 2019, we entered into a First Amendment (the "First Amendment") to our Second Amended and Restated Credit Agreement (the "Credit Agreement”) among EnPro Industries, Inc. and EnPro Holdings, Inc., a wholly owned subsidiary of the Company (“EnPro Holdings”), as borrowers, the guarantors party thereto, the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer. The Credit Agreement provides for a five-year, senior secured revolving credit facility of $400.0 million (the “Revolving Credit Facility”) and a five-year, senior secured term loan facility of $150.0 million (the "Term Loan Facility" and, together with the Revolving Credit Facility, the "Facilities"). The Amended Credit Agreement also provides that the borrowers may seek incremental term loans and/or additional revolving credit commitments in an amount equal to the greater of $225.0 million or 100% of consolidated EBITDA (as defined) for the most recently ended four-quarter period for which we have reported financial results, plus additional amounts based on a consolidated senior secured leverage ratio. Initially, borrowings under the Facilities bore interest at an annual rate of LIBOR plus 1.50% or base rate plus 0.50%, with the interest rates under the Facilities being subject to incremental increases based on a consolidated total net leverage ratio. In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility at an annual rate of 0.175%, which rate is also subject to incremental increase or decrease based on a consolidated total net leverage ratio. The Term Loan Facility amortizes on a quarterly basis in an annual amount equal to 2.50% of the original principal amount of the Term Loan Facility in each of years one through three, 5.00% of such original principal amount in year four, and 1.25% of such original principal amount in each of the first three quarters of year five, with the remaining outstanding principal amount payable at maturity. The Facilities are subject to prepayment with the net cash proceeds of certain asset sales not reinvested in acquisitions within a specified period, casualty or condemnation events, and non-permitted debt issuances. EnPro and EnPro Holdings are the permitted borrowers under the Revolving Credit Facility. We have the ability to add foreign subsidiaries as borrowers under the Revolving Credit Facility for up to $100.0 million (or its foreign currency equivalent) in aggregate borrowings, subject to certain conditions. Each of our domestic, consolidated subsidiaries (other than any subsidiaries that may be designated as "unrestricted" by the Company from time to time) is required to guarantee the obligations of the borrowers under the Revolving Credit Facility, and each of our existing domestic, consolidated subsidiaries has entered into the Credit Agreement to provide such a guarantee. Borrowings under the Revolving Credit Facility are secured by a first-priority pledge of certain assets. The Credit Agreement contains certain financial covenants and required financial ratios including a maximum consolidated total net leverage and a minimum consolidated interest coverage as defined in the Credit Agreement. We were in compliance with all covenants of the Credit Agreement as of December 31, 2020. On January 19, 2021, we entered into an amendment to the credit facility that waived the requirement to prepay the Term Loan Facility with remaining excess net cash proceeds related to the sale of Fairbanks Morse that had not been reinvested in operating assets within 365 days from the date of the sale. The borrowing availability under our Revolving Credit Facility at December 31, 2020 was $388.6 million after giving consideration to $11.4 million of outstanding letters of credit. The balance of our outstanding Term Loan Facility was $145.4 million. Senior Notes On October 17, 2018, we completed the offering of $350.0 million aggregate principal amount of 5.75% Senior Notes due 2026 (the "Senior Notes") and applied the net proceeds of that offering, together with borrowings under the Revolving Credit Facility, to redeem on October 31, 2018 the full $450.0 million aggregate principal amount of the outstanding 5.875% Senior Notes due 2022 (the "Old Notes"). The Old Notes were redeemed at a price equal to 102.938% of the aggregate principal amount thereof plus accrued and unpaid interest to, but not including, the redemption date. We recorded a loss on the redemption of the Old Notes of approximately $18.1 million in the fourth quarter of 2018 which is included in other (non-operating) expense in the accompanying Consolidated Statement of Operations for the year ended December 31, 2018. The Senior Notes were issued to investors at 100% of the principal amount thereof. The Senior Notes are unsecured, unsubordinated obligations of EnPro and mature on October 15, 2026. Interest on the Senior Notes accrues at a rate of 5.75% per annum and is payable semi-annually in cash in arrears on April 15 and October 15 of each year, commencing April 15, 2019. The Senior Notes are required to be guaranteed on a senior unsecured basis by each of EnPro’s existing and future direct and indirect domestic subsidiaries that is a borrower under, or guarantees, our indebtedness under the Revolving Credit Facility or guarantees any other Capital Markets Indebtedness (as defined in the indenture governing the Senior Notes) of EnPro or any of the guarantors. On or after October 15, 2021, we may, on any one or more occasions, redeem all or a part of the Senior Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may redeem a portion of the aggregate principal amount of the Senior Notes before October 15, 2021 with the net cash proceeds from certain equity offerings at a specified redemption price plus accrued and unpaid interest, if any, to, but not including, the redemption date. We may also redeem some or all of the Senior Notes before October 15, 2021 at a redemption price of 100% of the principal amount, plus accrued and unpaid interest, if any, to, but not including, the redemption date, plus a “make whole” premium. Each holder of the Senior Notes may require us to repurchase some or all of the Senior Notes held by such holder for cash upon the occurrence of a defined “change of control” event. Our ability to redeem the Senior Notes prior to maturity is subject to certain conditions, including in certain cases the payment of make-whole amounts. The indenture governing the Senior Notes includes covenants that restrict our ability to engage in certain activities, including incurring additional indebtedness, paying dividends and repurchasing shares of our common stock, subject in each case to specified exceptions and qualifications set forth in the indenture. The indenture further requires us to apply the net cash proceeds of certain asset sales not reinvested in acquisitions, or used to repay or otherwise reduce specified indebtedness within a specified period, in the event of the net proceeds exceeding a specified amount, to offer to repurchase the Senior Notes at a price equal to 100% of the principal amount thereof plus accrued and unpaid interest. Scheduled Principal Payments Future principal payments on long-term debt are as follows: (in millions) 2021 $ 3.8 2022 4.7 2023 7.5 2024 129.4 2025 — Thereafter 350.0 $ 495.4 The payments for long-term debt shown in the table above reflect the contractual principal amount for the Senior Notes. In the Consolidated Balance Sheet as of December 31, 2020, these amounts are shown net of unamortized debt discounts aggregating $4.1 million pursuant to applicable accounting rules. Debt Issuance Costs |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | 13. Derivatives and Hedging We are exposed to foreign currency risks that arise from normal business operations. These risks include the translation of local currency balances on our foreign subsidiaries’ balance sheets, intercompany loans with foreign subsidiaries and transactions denominated in foreign currencies. We strive to control our exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. We periodically enter into contracts to hedge forecasted transactions that are denominated in foreign currencies. The notional amount of foreign exchange contracts was $3.3 million and $5.2 million at December 31, 2020 and 2019, respectively. All foreign exchange contracts outstanding at December 31, 2020 expired in January of 2021. The notional amounts of all of our foreign exchange contracts were recorded at their fair market value as of December 31, 2020 with changes in market value recorded in income. The earnings impact of any foreign exchange contract that is specifically related to the purchase of inventory is recorded in cost of sales and the changes in market value of all other contracts are recorded in selling, general and administrative expense in the Consolidated Statements of Operations. The balances of foreign exchange derivative assets are recorded in other current assets and the balances of foreign exchange derivative liabilities are recorded in accrued expenses in the Consolidated Balance Sheets. In March 2018, we entered into cross currency swap agreements (the "Initial Swap") with a notional amount of $200.0 million to manage foreign currency risk by effectively converting a portion of the interest payments related to our fixed-rate U.S. Dollar (“USD”)-denominated Old Notes, including the semi-annual interest payments thereunder, to interest payments on fixed-rate Euro-denominated debt of 161.8 million EUR with a weighted average interest rate of 3.29% with the same interest payment dates and maturity date as the Old Notes maturing in 2022. We terminated and settled these agreements on September 7, 2018. As a result of this termination, we received $11.9 million, of which $9.3 million represented the fair value of the contracts as of the settlement date and $2.6 million represented interest receivable. Unrealized gains totaling $7.0 million, net of tax, as of the termination date will remain in accumulated other comprehensive loss until the complete or substantially complete liquidation of our investment in the underlying foreign operations. In September 2018, we entered into new cross currency swap agreements (the "New Swap") with a notional amount of $200.0 million to manage foreign currency risk by effectively converting a portion of the interest payments related to our fixed-rate USD-denominated Old Notes, including the semi-annual interest payments thereunder, to interest payments on fixed-rate Euro-denominated debt of 172.8 million EUR with a weighted average interest rate of 2.8%, with interest payment dates of March 15 and September 15 of each year. The New Swap agreement matures on September 15, 2022. In May 2019, we entered into additional cross currency swap agreements (the "Additional Swap") with a notional amount of $100.0 million to manage an increased portion of our foreign currency risk by effectively converting a portion of the interest payments related to our fixed-rate USD-denominated Senior Notes, including the semi-annual interest payments thereunder, to interest payments on the fixed-rate Euro-denominated debt of 89.6 million EUR with a weighted average interest rate of 3.5%, with interest payment dates of April 15 and October 15 of each year. The Additional Swap agreement matures on October 15, 2026. During the term of the swap agreements, we will receive semi-annual payments from the counterparties due to the difference between the interest rate on the Senior Notes and the interest rate on the Euro debt underlying each of the swaps. There was no principal exchange at the inception of the arrangements, and there will be no exchange at maturity. At maturity (or earlier at our option), we and the counterparties will settle the swap agreements at their fair value in cash based on the aggregate notional amount and the then-applicable currency exchange rate compared to the exchange rate at the time the swap agreements were entered into. We have designated the cross currency swaps as qualifying hedging instruments and are accounting for them as a net investment hedge. At December 31, 2020, the fair values of the New Swap and the Additional Swap totaled a $9.5 million liability and were recorded within other liabilities on the Consolidated Balance Sheet. The gains and losses resulting from fair value adjustments to the cross currency swap agreements, excluding interest accruals related to the above receipts, are recorded in accumulated other comprehensive loss within our cumulative foreign currency translation adjustment, as the swap is effective in hedging the designated risk. Cash flows related to the cross currency swaps will be included in operating activities in the Consolidated Statements of Cash Flows, aside from the ultimate settlement at maturity with the counterparties, which will be included in investing activities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of December 31, 2020 December 31, 2019 (in millions) Assets Time deposits $ 4.2 $ 22.9 Foreign currency derivatives — 12.3 Deferred compensation assets 8.6 10.9 $ 12.8 $ 46.1 Liabilities Deferred compensation liabilities $ 8.9 $ 11.3 Foreign currency derivatives 9.5 0.6 $ 18.4 $ 11.9 Our time deposits and deferred compensation assets and liabilities are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Our foreign currency derivatives are classified as Level 2 as their value is calculated based upon observable inputs including market USD/Euro exchange rates and market interest rates. The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximate their respective fair values, except for the following: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (in millions) Long-term debt $ 491.3 $ 520.8 $ 629.3 $ 658.0 |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Postretirement Benefits | 15. Pensions and Postretirement Benefits We have non-contributory defined benefit pension plans covering eligible employees in the United States, Mexico and several European countries. Salaried employees’ benefit payments are generally determined using a formula that is based on an employee’s compensation and length of service. We closed our defined benefit pension plan for new salaried employees in the United States who joined the Company after January 1, 2006, and, effective January 1, 2007, benefits were frozen for all salaried employees who were not age 40 or older as of December 31, 2006 and benefits for all remaining eligible salaried employees were frozen as of January 1, 2021. Hourly employees’ benefit payments are generally determined using stated amounts for each year of service. Our employees also participate in voluntary contributory retirement savings plans for salaried and hourly employees maintained by us. Under these plans, eligible employees can receive matching contributions up to the first 6% of their eligible earnings. Effective January 1, 2007, those employees whose defined benefit pension plan benefits were frozen receive an additional 2% company contribution each year. Beginning on August 1, 2016, this additional contribution ceased being provided to future hires at the company, but was retained for those employees already receiving it. We recorded $9.3 million, $11.7 million and $10.7 million in expenses in 2020, 2019 and 2018, respectively, for matching contributions under these plans. Our general funding policy for qualified defined benefit pension plans historically has been to contribute amounts that are at least sufficient to satisfy regulatory funding standards. In 2020 we contributed $4.0 million in cash to our U.S. pension plans, No contributions were made in 2019, and in 2018, we contributed $20.0 million, in cash to our U.S. pension plans. The contributions were made in these years in order to meet a funding level sufficient to avoid variable fees from the PBGC on the underfunded portion of our pension liability. We do not anticipate making contributions in 2021 to our U.S. defined benefit pension plans and we expect to make total contributions of approximately $0.5 million in 2021 to the foreign pension plans. On June 26, 2018, we entered into an agreement to purchase a group annuity contract to transfer approximately $68 million of our outstanding pension projected benefit obligations related to certain U.S. retirees or beneficiaries. The transaction closed on July 3, 2018 and was funded with pension plan assets with a value of $70.9 million. As a result of this transaction a pre-tax pension settlement charge of $12.8 million was recognized in the third quarter of 2018. This charge was recorded in other (non-operating) expense on the Consolidated Statement of Operations for the year ended December 31, 2018. The projected benefit obligation and fair value of plan assets for the defined benefit pension plans with projected benefit obligations in excess of plan assets were $15.3 million and $1.2 million at December 31, 2020, and $66.0 million and $48.3 million at December 31, 2019, respectively. The accumulated benefit obligation and fair value of plan assets for the defined benefit pension plans with accumulated benefit obligations in excess of plan assets were $11.1 million and $1.2 million at December 31, 2020, and $57.2 million and $44.8 million at December 31, 2019, respectively. We provide, through non-qualified plans, supplemental pension benefits to a limited number of employees. Certain of our subsidiaries also sponsor unfunded postretirement plans that provide certain health-care and life insurance benefits to eligible employees. The health-care plans are contributory, with retiree contributions adjusted periodically, and contain other cost-sharing features, such as deductibles and coinsurance. The life insurance plans are generally noncontributory. The amounts included in “Other Benefits” in the following tables include the non-qualified plans and the other postretirement plans discussed above. The following table sets forth the changes in projected benefit obligations and plan assets of our defined benefit pension and other non-qualified and postretirement plans as of and for the years ended December 31, 2020 and 2019. Pension Benefits Other Benefits 2020 2019 2020 2019 (in millions) Change in Projected Benefit Obligations Projected benefit obligations at beginning of year $ 329.5 $ 276.8 $ 4.0 $ 4.1 Service cost 4.5 4.4 — 0.1 Interest cost 10.4 12.2 0.1 0.1 Actuarial loss (gain) 30.5 46.6 0.4 (0.2) Settlements — (0.3) (0.6) — Benefits paid (13.0) (10.8) (0.5) (0.5) Curtailments (5.1) — — — Plan combination (acquisitions/divestitures) (6.8) 0.9 — — Other 0.7 (0.3) 0.4 0.4 Projected benefit obligations at end of year 350.7 329.5 3.8 4.0 Change in Plan Assets Fair value of plan assets at beginning of year 313.5 267.6 Actual return on plan assets 53.5 56.5 Administrative expenses (0.7) (0.8) Benefits paid (13.0) (10.8) Settlements — (0.3) Company contributions 4.4 1.3 Plan combination (acquisitions/divestitures) (4.1) — Other (0.2) — Fair value of plan assets at end of year 353.4 313.5 Funded Status at End of Year $ 2.7 $ (16.0) $ (3.8) $ (4.0) Pension Benefits Other Benefits 2020 2019 2020 2019 (in millions) Amounts Recognized in the Consolidated Balance Sheets Long-term assets $ 16.8 $ 1.7 $ — $ — Current liabilities (0.5) (0.6) (0.3) (0.2) Current liabilities held for sale — — — (0.7) Long-term liabilities (13.6) (17.1) (3.5) (3.1) $ 2.7 $ (16.0) $ (3.8) $ (4.0) Pre-tax charges recognized in accumulated other comprehensive loss as of December 31, 2020 and 2019 consist of: Pension Benefits Other Benefits 2020 2019 2020 2019 (in millions) Net actuarial (gain) loss $ 47.1 $ 60.0 $ 0.2 $ (1.0) Prior service cost 0.6 1.4 — — $ 47.7 $ 61.4 $ 0.2 $ (1.0) The accumulated benefit obligation for all defined benefit pension plans was $346.5 million and $317.8 million at December 31, 2020 and 2019, respectively. The accumulated postretirement benefit obligation for all other postretirement benefit plans was $3.8 million and $3.9 million at December 31, 2020 and 2019, respectively. The following table sets forth the components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for our defined benefit pension and other non-qualified and postretirement plans for the years ended December 31, 2020, 2019 and 2018. Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 (in millions) Net Periodic Benefit Cost Service cost $ 4.5 $ 4.4 $ 4.8 $ — $ 0.1 $ 0.1 Interest cost 10.4 12.2 12.8 0.1 0.1 0.1 Expected return on plan assets (18.9) (15.7) (19.0) — — — Amortization of prior service cost 0.1 0.2 0.3 — 0.2 0.1 Amortization of net loss 5.2 6.6 5.1 0.2 — — Settlements — — 12.7 (1.1) — — Curtailments 0.3 — — — — — Net periodic benefit cost 1.6 7.7 16.7 (0.8) 0.4 0.3 Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 (in millions) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) (7.8) 5.8 13.3 0.3 (0.1) (0.6) Prior service cost (0.3) 0.5 — — — — Amortization of net loss (5.2) (6.6) (5.1) (0.2) — — Amortization of prior service cost (0.1) (0.2) (0.3) — (0.2) (0.1) Settlements — — (12.7) 1.1 — — Curtailments (0.3) — — — — — Total recognized in other comprehensive income (13.7) (0.5) (4.8) 1.2 (0.3) (0.7) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ (12.1) $ 7.2 $ 11.9 $ 0.4 $ 0.1 $ (0.4) Included in the net periodic benefit cost table above are $0.8 million and $0.9 million for the years ended December 31, 2019 and 2018 respectively, representing pension and other postretirement plan service cost related to the Power Systems segment that is reported in income from discontinued operations in the accompanying Consolidated Statements of Operations. Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Discount rate 2.625 % 3.375 % 4.375 % 2.625 % 3.375 % 4.375 % Rate of compensation increase 3.0 % 3.0 % 3.0 % 4.0 % 4.0 % 4.0 % Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Discount rate 3.375 % 4.375 % 4.00 % 3.375 % 4.375 % 3.75 % Expected long-term return on plan assets 6.0 % 6.0 % 6.0 % — — — Rate of compensation increase 3.0 % 3.0 % 3.0 % 4.0 % 4.0 % 4.0 % The discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year. The discount rate was determined with a model which uses a theoretical portfolio of high quality corporate bonds specifically selected to produce cash flows closely related to how we would settle our retirement obligations. This produced a discount rate of 2.625% at December 31, 2020. As of the date of these financial statements, there are no known or anticipated changes in our discount rate assumption that will impact our pension expense in 2021. A 25 basis point decrease (increase) in our discount rate, holding constant our expected long-term return on plan assets and other assumptions, would increase (decrease) pension expense by approximately $0.8 million per year. The overall expected long-term rate of return on assets was determined based upon weighted-average historical returns over an extended period of time for the asset classes in which the plans invest according to our current investment policy. We use the Pri-2012 base mortality table with the MP-2020 projection scale to value our domestic pension liabilities. Assumed Health Care Cost Trend Rates at December 31 2020 2019 Health care cost trend rate assumed for next year 7.5 % 8.0 % Rate to which the cost trend rate is assumed to decline (the ultimate rate) 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2027 2027 Plan Assets The asset allocation for pension plans at the end of 2020 and 2019, and the target allocation for 2021, by asset category are as follows: Target Plan Assets at December 31, 2021 2020 2019 Asset Category Equity securities 30 % 33 % 29 % Fixed income 70 % 67 % 71 % 100 % 100 % 100 % Our investment goal is to maximize the return on assets, over the long term, by investing in equities and fixed income investments while diversifying investments within each asset class to reduce the impact of losses in individual securities. Equity investments include a mix of U.S. large capitalization equities, U.S. small capitalization equities and non-U.S. equities. Fixed income investments include a mix of treasury obligations and high-quality money market instruments. The asset allocation policy is reviewed and any significant variation from the target asset allocation mix is rebalanced periodically. The plans have no direct investments in EnPro common stock. The plans invest exclusively in mutual funds whose holdings are marketable securities traded on recognized markets and, as a result, would be considered Level 1 assets. The investment portfolios of the various funds at December 31, 2020 and 2019 are summarized as follows: 2020 2019 (in millions) Mutual funds – U.S. equity $ 68.3 $ 55.7 Mutual funds – international equity 46.9 35.9 Mutual funds - fixed income treasury and money market 237.0 221.1 Cash equivalents 1.2 0.8 $ 353.4 $ 313.5 Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the following calendar years: Pension Other (in millions) 2021 $ 13.6 $ 0.3 2022 14.4 1.9 2023 15.6 0.2 2024 17.0 0.2 2025 18.3 0.2 Years 2025 – 2029 96.4 0.7 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 16. Shareholders' Equity We have a policy under which we intend to declare regular quarterly cash dividends on our common stock, as determined by our board of directors, after taking into account our cash flows, earnings, financial position and other relevant matters. In accordance with this policy, total dividend payments of $21.7 million, $20.9 million, and $20.3 million were made during the years ended December 31, 2020, 2019, and 2018, respectively. In February 2021, our board of directors declared a cash dividend of $0.27 per share payable on March 17, 2021 to shareholders of record at the close of business on March 3, 2021. In October 2018, our board of directors authorized a two-year program for expenditures of up to $50.0 million of our outstanding common shares. Prior to the expiration of this authorization in October 2020, we repurchased a total of 0.3 million shares for $20.3 million, of which we repurchased 0.1 million shares for $5.3 million during 2020 and we repurchased 0.2 million shares for $15.0 million in 2019. In October of 2020, our board of directors authorized a new two-year program of up to $50.0 million for the repurchased of our outstanding common shares through October 2022. We have not made any repurchases under the new authorization. In October 2017, our board of directors authorized a program for the repurchase of up to $50.0 million of our outstanding common shares. During 2018, we repurchased 0.7 million shares for $50.0 million under this program. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 17. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component (after tax) are as follows: (in millions) Unrealized Pension and Total Balance at December 31, 2017 $ (6.8) $ (41.6) $ (48.4) Other comprehensive loss before reclassifications (3.8) (7.1) (10.9) Amounts reclassified from accumulated other — 13.8 13.8 Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (3.8) 6.7 2.9 Balance at December 31, 2018 (10.6) (34.9) (45.5) Adoption of new accounting standard — (11.5) (11.5) Adjusted balance at December 31, 2018 (10.6) (46.4) (57.0) Other comprehensive income (loss) before reclassifications 20.4 (5.1) 15.3 Amounts reclassified from accumulated other — 5.3 5.3 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 20.4 0.2 20.6 Balance at December 31, 2019 9.8 (46.2) (36.4) Other comprehensive income before reclassifications 21.5 6.0 27.5 Amounts reclassified from accumulated other 3.4 3.6 7.0 Net current-period other comprehensive income 24.9 9.6 34.5 Less: other comprehensive income attributable to redeemable non-controlling interests 3.0 — 3.0 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 21.9 9.6 31.5 Balance at December 31, 2020 $ 31.7 $ (36.6) $ (4.9) Reclassifications out of accumulated other comprehensive loss are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Statement of Operations Caption Years Ended December 31, 2020 2019 2018 (in millions) Pension and other postretirement plans adjustments: Amortization of actuarial losses $ 5.4 $ 6.6 $ 5.1 (1) Amortization of prior service costs 0.1 0.4 0.4 (1) Curtailments 0.3 — — (1) Settlements (1.1) — 12.7 (1) Total before tax 4.7 7.0 18.2 Income from continuing operations before income taxes Tax benefit (1.1) (1.7) (4.4) Income tax expense Net of tax $ 3.6 $ 5.3 $ 13.8 Income (loss) from continuing operations Release of unrealized currency translation adjustment upon sale of investment in foreign entity, net of tax $ 3.4 $ — $ — Other (non-operating) expense (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. Since these are components of net periodic pension cost other than service cost, the affected Consolidated Statement of Operations caption is other (non-operating) expense. (See Note 15 , "Pensions and Postretirement Benefits" for additional details). |
Equity Compensation Plan
Equity Compensation Plan | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plan | 18. Equity Compensation Plan We have equity compensation plans (the “Plans”) that provide for the delivery of shares pursuant to various market and performance-based incentive awards. As of December 31, 2020, there are 1.0 million shares available for future awards. Our policy is to issue new shares to satisfy share delivery obligations for awards made under the Plans. The Plans permit awards of restricted share units to be granted to executives and other key employees. Generally, all share units awarded prior to February 2020 vest in three years, while those awarded thereafter vest in equal annual increments over three years. Compensation expense related to the restricted share units is based upon the market price of the underlying common stock as of the date of the grant and is amortized over the applicable vesting period using the straight-line method. As of December 31, 2020, there was $6.2 million of unrecognized compensation cost related to restricted share units expected to be recognized over a weighted-average remaining amortization period of 1.7 years. Under the terms of the Plans, performance share awards were granted to executives and other key employees during 2020, 2019 and 2018. Each grant will vest if EnPro achieves specific financial objectives at the end of each three-year performance period. Additional shares may be awarded if objectives are exceeded, but some or all shares may be forfeited if objectives are not met. Performance shares earned at the end of a performance period, if any, for shares issued in 2018 and 2019 will be paid in actual shares of our common stock, less the number of shares equal in value to applicable withholding taxes if the employee chooses. Performance shares earned at the end of a performance period for shares issued in 2020 will be paid in cash, less applicable withholding taxes if the employee chooses. During the performance period, a grantee receives dividend equivalents accrued in cash, and shares are forfeited if a grantee terminates employment. Compensation expense related to the performance shares payable in stock granted in 2019 and 2018 is computed using the fair value of the awards at the date of grant. Potential shares to be issued for performance share awards granted in 2019 and 2018 are subject to a market condition based on the performance of our stock, measured based upon a calculation of total shareholder return, compared to a group of peer companies. The fair value of these awards was determined using a Monte Carlo simulation methodology. Compensation expense for these awards is computed based upon this grant date fair value using the straight-line method over the applicable performance period. Compensation expense related to the performance shares payable in cash granted in 2020 is computed using the fair value of the awards as of December 31, 2020. The fair value of these awards was determined using a Monte Carlo simulation methodology. Compensation issued for performance share awards granted in 2020 is subject to a market conditions based on the performance of our stock, measured based upon a calculation of total shareholder return, compared to a group of peer companies. Compensation expense for these awards is computed based upon the calculated fair value at the end of the period using the straight-line method over the applicable performance period. The shares will be remeasured and compensation expense will be adjusted based on the current market-based estimate. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each award. We issued performance share awards to eligible participants on February 18, 2020, February 11, 2019, and February 12, 2018. We used the following assumptions in determining the fair value of these awards: Expected stock price volatility Annual expected dividend yield Risk free interest rate Shares granted February 18, 2020 EnPro Industries, Inc. 31.62 % 1.69 % 1.37 % S&P 600 Capital Goods Index 34.90 % n/a 1.37 % Shares granted February 11, 2019 EnPro Industries, Inc. 30.72 % 1.40 % 2.53 % S&P 600 Capital Goods Index 34.36 % n/a 2.53 % Shares granted February 12, 2018 EnPro Industries, Inc. 32.41 % 1.15 % 1.92 % S&P 600 Capital Goods Index 34.90 % n/a 1.92 % The expected volatility assumption for us and each member of the peer group is based on each entity’s historical stock price volatility over a period equal to the length from the valuation date to the end of the performance cycle. The annual expected dividend yield is based on annual expected dividend payments and the stock price on the date of grant. The risk free rate equals the yield, as of the valuation date, on zero-coupon U.S. Treasury STRIPS that have a remaining term equal to the length of the remaining performance cycle. As of December 31, 2020, there was $1.2 million of unrecognized compensation cost related to nonvested performance share awards to be paid in stock and is expected to be recognized over a weighted-average vesting period of 1.0 year. As of December 31, 2020 there was $3.3 million of unrecognized compensation cost related to nonvested performance share awards to be paid in cash and is expected to be recognized over a weighted-average vesting period of 2.0 years. A summary of award activity under these plans is as follows: Restricted Share Units Performance Shares - Equity Performance Shares - Liability Shares Weighted- Shares Weighted- Shares Fair Value at December 31, 2020 Nonvested at December 31, 2017 235,557 $ 57.87 270,599 $ 61.92 — $ — Granted 73,817 82.03 77,076 93.61 — — Vested (58,188) 63.64 (51,207) 63.81 — — Forfeited (19,853) 65.17 (25,142) 65.14 — — Achievement level adjustment — — (71,671) 63.81 — — Shares settled for cash (12,403) 64.19 — — — — Nonvested at December 31, 2018 218,930 57.87 199,655 75.87 — — Granted 78,576 68.48 116,342 77.15 — — Vested (78,958) 44.44 (75,312) 49.68 — — Forfeited (6,830) 72.99 (12,130) 82.26 — — Achievement level adjustment — — 24,105 49.68 — — Shares settled for cash (12,294) 43.85 — — — — Nonvested at December 31, 2019 199,424 72.72 252,660 81.46 — — Granted 97,144 59.27 — — 95,924 105.91 Vested (53,163) 68.42 — — — — Forfeited (34,890) 71.14 (33,218) 81.91 (2,336) 105.91 Achievement level adjustment — — (132,846) 93.61 — — Shares settled for cash (8,136) 68.35 — — — — Nonvested at December 31, 2020 200,379 $ 67.83 86,596 $ 77.15 93,588 $ 105.91 The maximum potential number of shares to be issued at December 31, 2020 is represented by the restricted share units and equity based performance shares at nonvested balance at December 31, 2020. We account for forfeitures when they occur as opposed to estimating the number of awards that are expected to vest as of the grant date. Non-qualified and incentive stock options were granted in 2011 and in 2019, and 2020. No stock option has a term exceeding 10 years from the date of grant. All stock options were granted at not less than 100% of fair market value (as defined) on the date of grant. As of December 31, 2020, there was $2.1 million of unrecognized compensation cost related to stock options. The following table provides certain information with respect to stock options as of December 31, 2020: Range of Exercise Price Share Options Outstanding Stock Options Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Life Under $50.00 18,187 18,187 $ 42.24 0.11 Over $50.00 and under $60.00 143,680 — 54.34 9.21 Over $60.00 40,937 — 66.31 8.57 Total 202,804 18,187 $ 55.67 8.27 We determine the fair value of stock options using the Black-Scholes option pricing formula. Key inputs into this formula include expected term, expected volatility, expected dividend yield, and the risk-free interest rate. This fair value is amortized on a straight line basis over the vesting period. The options issued in 2019 vest pro-rata over year three four five The expected term represents the period that our stock options are expected to be outstanding, and is determined based on historical experience of similar awards, given the contractual terms of the awards, vesting schedules, and expectations of future employee behavior. The fair value of stock options reflects a volatility factor calculated using historical market data for EnPro's common stock. The time frame used was approximated as a six year period from the grant date for the awards issued in 2020 and a seven year period from the grant date for the awards in 2019. The dividend assumption is based on our current expectations for our dividend policy. We base the risk-free interest rate on the yield to maturity at the time of the stock option grant on zero-coupon U.S. government bonds having a remaining life equal to the option's expected life. When estimating forfeitures, we consider voluntary termination behaviors as well as analysis of actual option forfeitures. The option awards issued in 2020 had a fair value of $13.64 per share and $18.67 per share at the grant dates of February 27, 2020 and August 27, 2020, respectively. The following assumptions were used to estimate the fair value of the 2020 option awards: Grant Date February 27, 2020 August 27, 2020 Average expected term 6 years 6 years Expected volatility 31.53 % 39.51 % Risk-free interest rate 1.17 % 0.42 % Expected dividend yield 1.93 % 1.74 % The option awards issued in 2019 had a fair value of $18.87 per share at their grant date. The following assumptions were used to estimate the fair value of the 2019 option awards: Average expected term 7 years Expected volatility 29.68 % Risk-free interest rate 1.95 % Expected dividend yield 1.51 % A summary of option activity under the Plans as of December 31, 2020, and changes during the year then ended, is presented below: Share Options Outstanding Weighted Average Exercise Price Balance at December 31, 2019 59,124 $ 58.91 Granted 143,680 54.34 Balances at December 31, 2020 202,804 $ 55.67 The year-end intrinsic value related to stock options is presented below: As of and for the Years Ended December 31, (in millions) 2020 2019 2018 Options outstanding $ 4.0 $ 0.5 $ 0.3 Options exercisable $ 0.6 $ 0.4 $ 0.3 We recognized the following equity-based employee compensation expenses and benefits related to our Plan activity: Years Ended December 31, (in millions) 2020 2019 2018 Compensation expense $ 5.4 $ 6.8 $ 6.5 Related income tax benefit $ 1.4 $ 2.2 $ 1.9 Each non-employee director received an annual grant of phantom shares equal in value to $110,000 in the years ended December 31, 2020 and 2019 and $95,000 in the year ended December 31, 2018. With respect to certain phantom shares awarded in prior years, we will pay each non-employee director in cash the fair market value of the director's phantom shares upon termination of service as a member of the board of directors. The remaining phantom shares granted will be paid out in the form of one share of our common stock for each phantom share, with the value of any fractional phantom shares paid in cash. Expense recognized in the years ended December 31, 2020, 2019 and 2018 related to these phantom share grants was $0.9 million, $0.9 million and $0.7 million, respectively. No cash payments were used to settle phantom shares in 2020 or 2019. Cash payments of $0.7 million were used to settle phantom shares in 2018. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | 19. Business Segment Information We aggregate our operating businesses into three reportable segments. The factors considered in determining our reportable segments are the economic similarity of the businesses, the nature of products sold or services provided, the production processes and the types of customers and distribution methods. Our reportable segments are managed separately based on these differences. Our Sealing Technologies segment designs, manufactures and sells sealing products, including: metallic, non-metallic and composite material gaskets, dynamic seals, compression packing, resilient metal seals, elastomeric seals, custom-engineered mechanical seals for applications in the aerospace industry and other markets, hydraulic components, expansion joints, sanitary gaskets, hoses and fittings for the hygienic process industries, fluid transfer products for the pharmaceutical and biopharmaceutical industries, hole forming products, bellows and bellows assemblies, PTFE products, and heavy-duty commercial vehicle parts used in wheel-end and suspension components. These products are used in a variety of industries, including chemical and petrochemical processing, pulp and paper processing, power generation, food and pharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, heavy-duty trucking, aerospace, medical, filtration and semiconductor fabrication. In many of these industries, performance and durability are vital for safety and environmental protection. Many of our products are used in highly demanding applications, e.g., where extreme temperatures, extreme pressures, corrosive environments, strict tolerances, and/or worn equipment make product performance difficult. Our Advanced Surface Technologies segment applies proprietary technologies, processes, and capabilities to deliver highly differentiated suites of products and services for the most challenging applications in high growth markets. The segment’s products and services are used in highly demanding environments requiring performance, precision and repeatability, with a low tolerance for failure. The segment’s services include cleaning, coating, testing, refurbishment and verification services for critical components and assemblies used in state-of-the-art advanced node semiconductor manufacturing equipment. Its designs, manufactures and sells specialized optical filters and thin-film coatings for the most challenging applications in the industrial technology, life sciences, and semiconductor markets and complex front-end wafer processing sub-systems, new and refurbished electrostatic chuck pedestals, thin film coatings, and edge-welded metal bellows for the semiconductor equipment industry and for critical applications in the space, aerospace and defense markets. Our Engineered Materials segment includes operations that design, manufacture and sell self-lubricating, non-rolling metal-polymer, engineered plastics, and fiber reinforced composite bearing products, precision engineered components and lubrication systems for reciprocating compressors and engines, critical service flange gaskets, seals and electrical flange isolation kits used in high-pressure wellhead equipment, flow lines, water injection lines, sour hydrocarbon process applications, and crude oil and natural gas pipeline/transmission line applications. These products are used in a wide range of applications, including the automotive, aerospace, pharmaceutical, pulp and paper, natural gas, health, power generation, machine tools, air treatment, refining, petrochemical and general industrial markets. We measure operating performance based on segment earnings before interest, income taxes, depreciation, amortization, and other selected items ("Adjusted Segment EBITDA"), which is segment profit excluding acquisition and divestiture expenses, restructuring costs, impairment charges, non-controlling interest compensation, and depreciation and amortization. Adjusted Segment EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies. Segment profit is total segment revenue reduced by operating expenses, restructuring and other costs identifiable with the segment. Corporate expenses include general corporate administrative costs. Expenses not directly attributable to the segments, corporate expenses, net interest expense, asset impairments, gains and losses related to the sale of assets, and income taxes are not included in the computation of segment profit. The accounting policies of the reportable segments are the same as those for EnPro. Non-controlling interest compensation allocation represents compensation expense associated with a portion of the rollover equity from the acquisitions of LeanTeq and Alluxa being subject to reduction for certain types of employment terminations of the sellers. This expense is recorded in selling, general, and administrative expenses on our Consolidated Statements of Operations and is directly related to the terms of the acquisitions. This expense will continue to be recognized as compensation expense over the term of the put and call options associated with the acquisitions unless certain employment terminations have occurred. Segment operating results and other financial data for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, 2020 2019 2018 (in millions) Sales Sealing Technologies $ 636.7 $ 762.4 $ 813.1 Advanced Surface Technologies 171.2 120.2 114.0 Engineered Materials 275.0 331.3 355.0 1,082.9 1,213.9 1,282.1 Intersegment sales (8.9) (8.2) (8.0) Total sales $ 1,074.0 $ 1,205.7 $ 1,274.1 Adjusted Segment EBITDA Sealing Technologies $ 131.0 $ 131.4 $ 137.4 Advanced Surface Technologies 47.1 23.5 17.6 Engineered Materials 32.5 53.7 60.4 Total Adjusted Segment EBITDA $ 210.6 $ 208.6 $ 215.4 Reconciliation of Adjusted Segment EBITDA to income (loss) from continuing operations before income taxes Adjusted Segment EBITDA $ 210.6 $ 208.6 $ 215.4 Acquisition and divestiture expenses (9.6) (8.4) (1.9) Non-controlling interest compensation allocation (2.9) (0.5) — Amortization of fair value adjustment to acquisition date inventory (3.0) — — Restructuring and impairment expense (30.6) (8.7) (22.1) Depreciation and amortization expense (70.7) (67.9) (66.1) Segment profit 93.8 123.1 125.3 Corporate expenses (37.9) (36.4) (34.9) Interest expense, net (14.9) (18.2) (27.3) Other expense, net (67.8) (64.2) (48.0) Income (loss) from continuing operations before income taxes $ (26.8) $ 4.3 $ 15.1 Years Ended December 31, 2020 2019 2018 (in millions) Net Sales by Geographic Area United States $ 555.7 $ 630.2 $ 736.2 Europe 244.2 301.2 278.6 Other foreign 274.1 274.3 259.3 Total $ 1,074.0 $ 1,205.7 $ 1,274.1 Net sales are attributed to countries based on location of the customer. Due to the diversified nature of our business and the wide array of products that we offer, we sell into a number of end markets. Underlying economic conditions within these markets are a major driver of our segments' sales performance. Below is a summary of our third-party sales by major end market with which we did business for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 35.5 $ 8.0 $ 5.4 $ 48.9 Automotive 2.1 0.1 66.3 68.5 Chemical and material processing 53.0 — 43.9 96.9 Food and pharmaceutical 52.3 — 1.6 53.9 General industrial 160.7 2.9 72.3 235.9 Medium-duty/heavy-duty truck 241.7 — 0.1 241.8 Oil and gas 20.5 2.1 64.1 86.7 Power generation 43.6 — 20.1 63.7 Semiconductors 14.6 157.1 — 171.7 Other 4.9 0.9 0.2 6.0 Total third-party sales $ 628.9 $ 171.1 $ 274.0 $ 1,074.0 Year Ended December 31, 2019 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 46.9 $ 10.5 $ 12.0 $ 69.4 Automotive 7.0 — 81.5 88.5 Chemical and material processing 48.0 — 48.3 96.3 Food and pharmaceutical 38.8 — 0.9 39.7 General industrial 174.9 1.3 88.6 264.8 Medium-duty/heavy-duty truck 340.9 — 1.2 342.1 Oil and gas 25.2 4.8 83.1 113.1 Power generation 47.7 — 9.5 57.2 Semiconductors 12.2 103.5 — 115.7 Other 13.8 0.1 5.0 18.9 Total third-party sales $ 755.4 $ 120.2 $ 330.1 $ 1,205.7 Year Ended December 31, 2018 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 45.4 $ 8.7 $ 8.4 $ 62.5 Automotive 5.3 — 97.3 102.6 Chemical and material processing 54.5 — 49.5 104.0 Food and pharmaceutical 37.1 — 1.0 38.1 General industrial 173.4 0.8 99.3 273.5 Medium-duty/heavy-duty truck 387.3 — 1.1 388.4 Oil and gas 19.7 3.6 77.4 100.7 Power generation 57.8 — 11.2 69.0 Semiconductors 12.8 100.9 — 113.7 Other 13.0 — 8.6 21.6 Total third-party sales $ 806.3 $ 114.0 $ 353.8 $ 1,274.1 Sales to one customer of our Sealing Technologies and Advanced Surface Technologies segments represented approximately $132.2 million of our consolidated sales for the year ended December 31, 2020. No customer accounted for 10% or more of net sales in 2019 or 2018. Years Ended December 31, 2020 2019 2018 (in millions) Capital Expenditures Sealing Technologies $ 8.0 $ 12.7 $ 22.6 Advanced Surface Technologies 5.3 1.5 2.6 Engineered Materials 4.9 7.4 10.9 Corporate 0.1 — — Total capital expenditures $ 18.3 $ 21.6 $ 36.1 Depreciation and Amortization Expense Sealing Technologies $ 36.5 $ 45.0 $ 46.4 Advanced Surface Technologies 20.0 7.0 3.1 Engineered Materials 14.2 15.9 16.6 Corporate 0.1 — — Total depreciation and amortization $ 70.8 $ 67.9 $ 66.1 As of December 31, 2020 2019 (in millions) Assets Sealing Technologies $ 741.9 $ 882.2 Advanced Surface Technologies 768.2 434.3 Engineered Materials 245.8 259.4 Corporate 327.7 205.1 Discontinued operations — 254.1 $ 2,083.6 $ 2,035.1 Long-Lived Assets United States $ 115.9 $ 130.1 France 21.0 24.2 Other Europe 20.3 20.7 Other foreign 37.8 43.8 Total $ 195.0 $ 218.8 Corporate assets include all of our cash and cash equivalents and long-term deferred income taxes. Long-lived assets consist of property, plant and equipment. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies General A description of certain environmental and other legal matters relating to certain of our subsidiaries is included in this section. In addition to the matters noted herein, we are from time to time subject to, and are presently involved in, other litigation and legal proceedings arising in the ordinary course of business. We believe the outcome of such other litigation and legal proceedings will not have a material adverse effect on our financial condition, results of operations and cash flows. Expenses for administrative and legal proceedings are recorded when incurred. Environmental Our facilities and operations are subject to federal, state and local environmental and occupational health and safety laws and regulations of the U.S. and foreign countries. We take a proactive approach in our efforts to comply with these laws and regulations as they relate to our manufacturing operations and in proposing and implementing any remedial plans that may be necessary. We also regularly conduct comprehensive environmental, health and safety audits at our facilities to maintain compliance and improve operational efficiency. Although we believe past operations were in substantial compliance with the then applicable regulations, we or one or more of our subsidiaries are involved with various remediation activities or an investigation to determine responsibility for environmental conditions at 20 sites. At 14 of these 20 sites, the future cost per site for us or our subsidiary is expected to exceed $100,000. Of these 20 sites, 18 are sites where we or one or more of our subsidiaries formerly conducted business operations but no longer do, and 2 are sites where we conduct manufacturing operations. Investigations have been completed for 16 of the 20 sites and are in progress at 3 sites. An investigation to determine responsibility for environmental conditions is ongoing at one site. Our policy is to accrue environmental investigation and remediation costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. For sites with multiple future projected cost scenarios for identified feasible investigation and remediation options where no one estimate is more likely than all the others, our policy is to accrue the lowest estimate among the range of estimates. The measurement of the liability is based on an evaluation of currently available facts with respect to each individual situation and takes into consideration factors such as existing technology, presently enacted laws and regulations and prior experience in the remediation of similar contaminated sites. Liabilities are established for all sites based on these factors. As assessments and remediation progress at individual sites, these liabilities are reviewed periodically and adjusted to reflect additional technical data and legal information. As of December 31, 2020 and 2019, we had accrued liabilities aggregating $42.2 million and $36.0 million, respectively, for estimated future expenditures relating to environmental contingencies. These amounts have been recorded on an undiscounted basis in the Consolidated Balance Sheets. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other parties potentially being fully or partially liable, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. During the fourth quarter of 2020, new information became available that enabled us to develop and refine estimated costs of future remediation at the following sites: • Water Valley . EnPro Holdings has been managing trichloroethylene soil and groundwater contamination at the site in Water Valley, Mississippi in connection with the former operation in the 1970s and 1980s by a corporate predecessor of a plant located at the site, which plant was divested to BorgWarner, Inc. ("BorgWarner") in 1996. The Mississippi Department of Environmental Quality ("MDEQ") issued orders against EnPro Holdings requiring evaluation of potential vapor intrusion into residential properties and commercial facilities located over the groundwater plume as well as requiring additional groundwater investigation and remediation. All of the work to be performed at the residential area, the plant and off-site is set forth in an agreed Order that we and MDEQ entered into on September 11, 2017 and we established reserves with respect to the liability associated with the anticipated remediation. B ased upon then limited information regarding any incremental remediation or other actions that may be required at the site, we were unable to estimate any further loss or a reasonably possible range of loss related to this matter. During the quarter ended December 31, 2020, we received the results from groundwater and vapor sampling under the plant building, which results provided a basis to estimate the costs to remediate the contamination under the building, and we received approval of the design for the remediation system to be operated in the area of contamination behind the building, which approval allowed for updating of previously estimated construction and operating and maintenance costs. Based on this information, we increased the reserve for Water Valley by $12.5 million , to $15.6 million at December 31, 2020, to reflect the minimum of the range of reasonably likely scenarios to effect the remediation of the contamination under the building and the other areas where contaminatio n is located. The total expense related to third-party claim settlements and remediation of the Water Valley site in calendar 2020, including reserve adjustments related to remediation, was $26.5 million. Total cash payments related to third-party claim settlements and remediation at Water Valley was $20.1 million in 2020. The final selection of the remediation option and design of the remedial system to address contamination under the building is subject to MDEQ approval, and we are not able at this time to estimate the upper end of a range of liability with respect to the reasonably lik ely scenarios to effect remediation at this site. • Arizona Uranium Mines . EnPro Holdings has received notices from the EPA asserting that it is a potentially responsible party under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") as the successor to a former operator of eight uranium mines in Arizona. The former operator conducted operations at the mines from 1954 to 1957. In the 1990s, remediation work performed by others at these sites consisted of capping the exposed areas of the mines. We have previously reserved amounts of probable loss associated with these mines, principally including the cost of the investigative work to be conducted at such mines. We entered into an Administrative Settlement Agreement and Order on Consent for Interim Removal Action with the EPA effective November 7, 2017 for the performance of this work. The balance in these reserves as of September 30, 2020 was $1.0 million. During the quarter ended December 31, 2020, the EPA initiated group discussions with EnPro Holdings and other potentially responsible parties to resolve various technical issues, including the development of cleanup standards. Based on these discussions and subsequent discussions with other responsible parties with similar sites, we have concluded that further remedial work beyond maintenance of and minor repairs to the existing caps is probable, and we have evaluated the feasibility of various remediation scenarios. As a result, we increased the reserve for these sites by $12.9 million to $13.9 million at December 31, 2020, to reflect the low end of the range of our reasonably likely liability with respect to these sites. The expected contribution of $3.8 million from the U.S. government towards remediation of the site is considered probable and is included in other assets in the accompanying consolidated balance sheet at December 31, 2020. We are not able at this time to estimate the upper end of a range of liability with respect to these sites. • Pine Bluff . For several years, we have been operating a groundwater remediation system at the site of an electrical transformer facility in Pine Bluff, Arkansas, which facility was sold by a corporate predecessor of EnPro Holdings in 1994. Pursuant to the terms of the sale agreement, EnPro Holdings, as the corporate successor has responsibility for pre-closing environmental conditions at the site and the existing remediation system at the site had been approved by the Arkansas Division of Environmental Quality (the “ADEQ”). During the quarter ended December 31, 2020, at the initiation of the ADEQ, we conducted further sampling and technical reviews to determine whether part of the contamination was migrating off-site that was not being captured by the existing remediation system. Based on all the sampling results received and reviewed, we concluded that modifications to the remediation program will be required. Based on this information, we increased the reserve for the Pine Bluff site by $2.8 million, to $2.8 million at December 31, 2020, to reflect the low end of the range of our reasonably likely liability with respect to this site. Total cash payments made in calendar year 2020 were $0.9 million. We are not able at this time to estimate the upper end of a range of liability with respect to this site . We believe that our accruals for specific environmental liabilities are adequate for those liabilities based on currently available information. Based upon limited information regarding any incremental remediation or other actions that may be required at these sites, we cannot estimate any further loss or a reasonably possible range of loss related to these matters. Actual costs to be incurred in future periods may vary from estimates because of the inherent uncertainties in evaluating environmental exposures due to unknown and changing conditions, changing government regulations and legal standards regarding liability. Based on our prior ownership of Crucible Steel Corporation a/k/a Crucible, Inc. (“Crucible”), we may have additional contingent liabilities in one or more significant environmental matters. One such matter, which is included in the 20 sites referred to above, is the Lower Passaic River Study Area of the Diamond Alkali Superfund Site in New Jersey. Crucible operated a steel mill abutting the Passaic River in Harrison, New Jersey from the 1930s until 1974, which was one of many industrial operations on the river dating back to the 1800s. Certain contingent environmental liabilities related to this site were retained by a predecessor of our EnPro Holdings, Inc. subsidiary (which, including its corporate predecessors is referred to in this Note 20 as "EnPro Holdings") when it sold a majority interest in Crucible Materials Corporation (the successor of Crucible) in 1985. The United States Environmental Protection Agency (the “EPA”) notified our subsidiary in September 2003 that it is a potentially responsible party (“PRP”) for Superfund response actions in the lower 17-mile stretch of the Passaic River known as the Lower Passaic River Study Area. EnPro Holdings and approximately 70 of the numerous other PRPs, known as the Cooperating Parties Group, are parties to a May 2007 Administrative Order on Consent with the EPA to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of the contaminants in the Lower Passaic River Study Area. In September 2018, EnPro Holdings withdrew from the Cooperating Parties Group but remains a party to the May 2007 Administrative Order on Consent. The RI/FS was completed and submitted to the EPA at the end of April 2015. The RI/FS recommends a targeted dredge and cap remedy with monitored natural recovery and adaptive management for the Lower Passaic River Study Area. The cost of such remedy is estimated to be $726 million. Previously, on April 11, 2014, the EPA released its Focused Feasibility Study (the “FFS”) with its proposed plan for remediating the lower eight miles of the Lower Passaic River Study Area. The FFS calls for bank-to-bank dredging and capping of the riverbed of that portion of the river and estimates a range of the present value of aggregate remediation costs of approximately $953 million to approximately $1.73 billion, although estimates of the costs and the timing of costs are inherently imprecise. On March 3, 2016, the EPA issued the final Record of Decision (ROD) as to the remedy for the lower eight miles of the Lower Passaic River Study Area, with the maximum estimated cost being reduced by the EPA from $1.73 billion to $1.38 billion, primarily due to a reduction in the amount of cubic yards of material that will be dredged. In October 2016, Occidental Chemical Corporation, the successor to the entity that operated the Diamond Alkali chemical manufacturing facility, reached an agreement with the EPA to develop the design for this proposed remedy at an estimated cost of $165 million. The EPA has estimated that it will take approximately four years to develop this design. On June 30, 2018, Occidental Chemical Corporation sued over 120 parties, including the Company, in the United States District Court for New Jersey seeking recovery of response costs under the Federal Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). No final allocations of responsibility have been made among the numerous PRPs that have received notices from the EPA, there are numerous identified PRPs that have not yet received PRP notices from the EPA, and there are likely many PRPs that have not yet been identified. In September 2017, EPA hired a third-party allocator to develop an allocation of costs among a large number of the parties identified by EPA as having potential responsibility, including the Company. In the fourth quarter of 2020, the third-party allocator issued his report, which determined the range for EnPro's liability to be between $35,000 and $950,000. Based on our evaluation of the site, during 2014 we accrued a liability of $3.5 million related to environmental remediation costs associated with the lower eight miles of the Lower Passaic River Study Area, which was our estimate of the low end of a range of reasonably possible costs, with no estimate within the range being a better estimate than the minimum. Since 2016, we incurred $0.9 million in remediation costs. Based on the third party allocator's report, on December 31, 2020, we reduced the reserve to $1.6 million. Our future remediation costs could be significantly greater than the $1.0 million accrual at December 31, 2020. With respect to the upper nine miles of the Lower Passaic River Study Area, we are unable to estimate a range of reasonably possible costs. Except with respect to the lower eight miles of the Lower Passaic River Study Area, we are unable to estimate a reasonably possible range of loss related to any other contingent environmental liability based on our prior ownership of Crucible. See the section entitled “Crucible Steel Corporation a/k/a Crucible, Inc.” in this footnote for additional information. Crucible Steel Corporation a/k/a Crucible, Inc. Crucible, which was engaged primarily in the manufacture and distribution of high technology specialty metal products, was a wholly owned subsidiary of Coltec until 1983 when its assets and liabilities were distributed to a new Coltec subsidiary, Crucible Materials Corporation. Coltec sold a majority of the outstanding shares of Crucible Materials Corporation in 1985 and divested its remaining minority interest in 2004. Crucible Materials Corporation filed for Chapter 11 bankruptcy protection in May 2009 and is no longer conducting operations. We have certain ongoing obligations, which are included in other liabilities in our Consolidated Balance Sheets, including workers’ compensation, retiree medical and other retiree benefit matters, in addition to those mentioned previously related to Coltec’s period of ownership of Crucible. Based on Coltec’s prior ownership of Crucible, we may have certain additional contingent liabilities, including liabilities in one or more significant environmental matters included in the matters discussed in “Environmental” above. We are investigating these matters. Except with respect to those matters for which we have an accrued liability as discussed in "Environmental" above, we are unable to estimate a reasonably possible range of loss related to these contingent liabilities. Warranties We provide warranties on many of our products. The specific terms and conditions of these warranties vary depending on the product and the market in which the product is sold. We record a liability based upon estimates of the costs we may incur under our warranties based upon a review of historical warranty experience and information regarding the number, nature, and dollar valuation of specific warranty claims being made by customers. Adjustments are made to the liability as claims data and historical experience necessitate. Changes in the carrying amount of the product warranty liability for the years ended December 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 (in millions) Balance at beginning of year $ 10.1 $ 9.4 $ 2.7 Charges to expense 1.4 5.8 10.1 Settlements made (4.8) (5.1) (3.4) Balance at end of year $ 6.7 $ 10.1 $ 9.4 Asbestos Insurance Receivables The historical business operations of certain of our subsidiaries resulted in a substantial volume of asbestos litigation in which plaintiffs alleged personal injury or death as a result of exposure to asbestos fibers. In 2010, certain of these subsidiaries, including Garlock Sealing Technologies, LLC ("GST"), filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of North Carolina (the "Bankruptcy Court"). An additional subsidiary filed a Chapter 11 bankruptcy petition with the Bankruptcy Court in 2017. The filings were part of a claims resolution process for an efficient and permanent resolution of all pending and future asbestos claims through court approval of a plan of reorganization to establish a facility to resolve and pay these asbestos claims. These claims against GST and other subsidiaries were resolved pursuant to a joint plan of reorganization (the "Joint Plan") filed with the Bankruptcy Court which was consummated on July 29, 2017. Under the Joint Plan, GST and EnPro Holdings retained their rights to seek reimbursement under insurance policies for any amounts they have paid in the past to resolve asbestos claims, including contributions made to the asbestos claims resolution trust established pursuant to the Joint Plan (the "Trust"). These policies include a number of primary and excess general liability insurance policies that were purchased by EnPro Holdings and were in effect prior to January 1, 1976 (the “Pre-GST Coverage Block”). The policies provide coverage for “occurrences” happening during the policy periods and cover losses associated with product liability claims against EnPro Holdings and certain of its subsidiaries. Asbestos claims against GST are not covered under these policies because GST was not a subsidiary of EnPro Holdings prior to 1976. The Joint Plan provides that EnPro Holdings may retain the first $25 million of any settlements and judgments collected for non-GST asbestos claims related to insurance policies in the Pre-GST Coverage Block and EnPro Holdings and the Trust will share equally in any settlements and judgments EnPro Holdings may collect in excess of $25 million. To date, EnPro Holdings has collected almost $22 million in settlements for non-GST asbestos claims related to the Pre-GST Coverage Block and anticipates further collections once the Trust begins making claims payments on non-GST Claims. At December 31, 2020, approximately $4.2 million of available products hazard limits or insurance receivables existed under primary and excess general liability insurance policies other than the Pre-GST Coverage Block (the "GST Coverage Block") from solvent carriers, which we believe is available to cover contributions made to the Trust under the Joint Plan as the Trust uses those contributions to pay GST asbestos claims covered by policies in the GST Coverage Block. There are specific agreements in place with carriers regarding the remaining available coverage. We believe that all of the $4.2 million of insurance proceeds will ultimately be collected, although there can be no assurance that the insurance companies will make the payments as and when due. In the fourth quarter of 2020, we billed an insurer in the GST Coverage Block $0.8 million for GST Claims paid by the Trust to date. We also believe that EnPro Holdings will bill, and could collect over time, as much as $10 million of insurance coverage for non-GST asbestos claims to reimburse it for Trust payments to non-GST Trust claimants. After EnPro Holdings collects the first approximately $3 million of that coverage, remaining collections for non-GST asbestos claims from the Pre-Garlock Coverage Block will be shared equally with the Trust. GST has received $8.8 million of insurance recoveries from insolvent carriers since 2007 and may receive additional payments from insolvent carriers in the future. No anticipated insolvent carrier collections are included in the $4.2 million of anticipated collections. The insurance available to cover current and future asbestos claims is from comprehensive general liability and excess liability policies that cover EnPro Holdings and certain of its other subsidiaries in addition to GST for periods prior to 1985 and therefore could be subject to potential competing claims of other covered subsidiaries and their assignees. |
SCHEDULE II - Valuation and Qua
SCHEDULE II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - Valuation and Qualifying Accounts | SCHEDULE II Valuation and Qualifying Accounts For the Years Ended December 31, 2020, 2019 and 2018 (in millions) Allowance for Doubtful Accounts Balance, Charge (credit) Write-off of Other (1) Balance, 2020 $ 3.7 $ 1.7 $ (1.4) $ 0.1 $ 4.1 2019 $ 3.3 $ 0.8 $ (0.1) $ (0.3) $ 3.7 2018 $ 4.2 $ (0.6) $ (0.4) $ 0.1 $ 3.3 (1) Consists primarily of the effect of changes in currency rates. Deferred Income Tax Valuation Allowance Balance, Charge (credit) Divestitures Other (2) Balance, 2020 $ 7.9 $ 0.8 $ (2.3) $ 0.2 $ 6.6 2019 $ 23.9 $ (15.3) $ — $ (0.7) $ 7.9 2018 $ 25.7 $ (1.4) $ — $ (0.4) $ 23.9 (2) Consists primarily of the effects of changes in currency rates and statutory changes in tax rates. |
Overview, Basis of Presentati_2
Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition | Revenue Recognition – The largest stream of revenue is product revenue for shipments of the various products discussed further in Note 19 |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests – Non-controlling interests in subsidiaries that are redeemable for cash or other assets outside of the our control are classified as mezzanine equity, outside of equity and liabilities, at the greater of the carrying value or the redemption value. The increases or decreases in the estimated redemption amount are recorded with corresponding adjustments against equity and are reflected in the computation of earnings per share. |
Foreign Currency Translation | Foreign Currency Translation – The financial statements of those operations whose functional currency is a foreign currency are translated into U.S. dollars using the current rate method. Under this method, all assets and liabilities are translated into U.S. dollars using current exchange rates, and income statement activities are translated using average exchange rates. The foreign currency translation adjustment is included in accumulated other comprehensive loss in the Consolidated Balance Sheets. Gains and losses on foreign currency transactions are included in operating income. |
Research and Development Expense | Research and Development Expense – Costs related to research and development activities are expensed as incurred. We perform research and development primarily under Company-funded programs for commercial products. |
Income Taxes | Income Taxes – We use the asset and liability method of accounting for income taxes. Temporary differences arising between the tax basis of an asset or liability and its carrying amount on the Consolidated Balance Sheet are used to calculate future income tax assets or liabilities. This method also requires the recognition of deferred tax benefits, such as net operating loss carryforwards. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income (losses) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment of the change. A tax benefit from an uncertain tax position is recognized only if we believe it is more likely than not that the position will be sustained on its technical merits. If the recognition threshold for the tax position is met, only the portion of the tax benefit that we believe is greater than 50 percent likely to be realized is recorded. The Tax Act provides for a territorial tax system, that includes the global intangible low-taxed income (“GILTI”) provision beginning in 2018. The GILTI provisions require us to include in our U.S. income tax return certain current year foreign subsidiary earnings net of foreign tax credits, subject to limitation. We elected to account for the GILTI tax in the period in which it is incurred. In December 2017, U.S. Securities and Exchange Commission ("SEC") issued guidance to address the application of authoritative tax accounting guidance in situations where companies do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which it was enacted. In these instances, the SEC's guidance allowed the recording of provisional amounts during a measurement period not to extend beyond one year of the enactment date. As the Tax Act was enacted at the end of 2017, and ongoing guidance and interpretation has been issued over the ensuing twelve months, we considered the impact of the transition tax, remeasurement of deferred tax assets and liabilities, and other items recorded in our year-end income tax provision for the fourth quarter 2017 to be a provisional estimate and have further analyzed the year-end data and refined our calculations. The refinements to our provisional estimate were made in the third and fourth quarters of 2018 and we completed our accounting for the impact in the fourth quarter of 2018. Please see Note 5 , "Income Taxes," for further information. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents include cash on hand, demand deposits and highly liquid investments with a maturity of three months or less at the time of purchase. |
Receivables | Receivables – Accounts receivable are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. We establish an allowance for doubtful accounts receivable based on historical experience and any specific customer collection issues we have identified. Doubtful accounts receivable are written off when a settlement is reached for an amount less than the outstanding historical balance or when we have determined the balance will not be collected. |
Inventories | Inventories – Certain domestic inventories are valued by the last-in, first-out (“LIFO”) cost method. Inventories not valued by the LIFO method are valued using the first-in, first-out (“FIFO”) cost method, and are recorded at the lower of cost or net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Depreciation of plant and equipment is determined on the straight-line method over the following estimated useful lives of the assets: buildings and improvements, 5 to 25 years; machinery and equipment, 3 to 10 years. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Goodwill represents the excess of the purchase price over the estimated fair value of the net assets of acquired businesses. Goodwill is not amortized, but instead is subject to annual impairment testing conducted each year as of October 1. The goodwill asset impairment test involves comparing the fair value of a reporting unit to its carrying amount. We would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. To estimate the fair value of our reporting units, we use both a discounted cash flow and market valuation approach. The discounted cash flow approach uses cash flow projections to calculate the fair value of each reporting unit while the market approach relies on market multiples of similar companies. The key assumptions used for the discounted cash flow approach include projected revenues and profit margins, projected capital expenditures, changes in working capital, discount rates and tax rates. For the market approach, we choose a group of peer companies we believe is best representative of each reporting unit. We used a 75% weighting for the discounted cash flow valuation approach and a 25% weighting for the market valuation approach, reflecting our belief that the discounted cash flow valuation approach provides a better indicator of a reporting unit's value since it reflects the specific cash flows anticipated to be generated in the future by the business. As a result of the business segment realignment discussed in this footnote under "Basis of Presentation", our Technetics reporting unit was tested for impairment both before and after the allocation of goodwill and the newly formed Semiconductor reporting unit (the LeanTeq and Technetics semiconductor business) was tested after the allocation. We determined that the Technetics reporting unit was not impaired prior to the transfer of goodwill. After the transfer, the Technetics reporting unit was allocated $67.7 million of goodwill and, as of our allocation date of December 1, 2020, we determined it was not impaired as its fair value exceeded its carrying value by 26%. We also determined that our Semiconductor reporting unit, allocated $180.1 million of goodwill as of our allocation date of December 1, 2020, was not impaired and its fair value exceeded its carrying value by 2%. Any change in assumptions, including forecasted performance or external market information used in our fair value calculation, including the determination of our discount rate, could result in a future impairment of our Semiconductor reporting unit. We will continue to monitor its performance as well as other market factors and test for impairment if we determine a triggering event has occurred. Also as a result of the transition of the oil and gas component of the GPT business, an interim goodwill impairment test was performed in the second quarter of 2020 for all reporting units and we determined that the carrying amount of our goodwill was not impaired either before or after the move. We completed our required annual impairment tests of goodwill as of October 1, 2020, 2019 and 2018. These assessments did not indicate any impairment of the goodwill, and the fair values of each of our reporting units exceeded their carrying values by at least 20%, with the exception of our Semiconductor reporting unit discussed above. The most recent annual assessment as well as the interim goodwill impairment assessments discussed above were conducted in the context of information that was reasonably available to us, as well as our consideration of the future potential impacts of COVID-19 on our business. However, because of uncertainties at this time with respect to the severity and duration of the COVID-19 outbreak, the duration and terms of related governmental orders restricting activities, and the timing and pace of any economic recovery as COVID-19 impacts ultimately abate, we cannot predict with specificity the extent and duration of any future impact on our business and financial results from COVID-19. In addition, although most of our operations have been treated as “essential” operations under applicable government orders restricting business activities that have been issued to date, and accordingly have been permitted to continue to operate, it is possible that they may not continue to be so treated under future government orders, or, even if so treated, site-specific health and safety concerns might otherwise require certain of our operations to be halted for some period of time. Accordingly, if the impact is more severe or longer in duration than we have projected, such impact could potentially result in impairments of assets in future periods. We will test all reporting units again at our next test date of October 1, 2021, or earlier as circumstances may require. Other intangible assets are recorded at cost or, when acquired as a part of a business combination, at estimated fair value. These assets include customer relationships, patents and other technology-related assets, trademarks, licenses and non-compete agreements. Intangible assets that have definite lives are amortized using a method that reflects the pattern in which the economic benefits of the assets are consumed or the straight-line method over estimated useful lives of 2 to 21 years. Intangible assets with indefinite lives are subject to at least annual impairment testing, conducted each year as of October 1, which compares the fair value of the intangible asset with its carrying amount using the relief from royalty method. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value below the carrying value or change the useful life of the asset. |
Debt | Debt – Debt issuance costs associated with our senior secured revolving credit facility are presented as an asset and subsequently amortized into interest expense ratably over the term of the revolving debt arrangement. Debt issuance costs associated with any of our other debt instruments that are incremental third-party costs of issuing the debt are recognized as a reduction in the carrying value of the debt and amortized into interest expense over the time period to maturity using the interest method. |
Derivative Instruments | Derivative Instruments – We use derivative financial instruments to manage our exposure to various risks. The use of these financial instruments modifies the exposure with the intent of reducing our risk. We do not use financial instruments for trading purposes, nor do we use leveraged financial instruments. The counterparties to these contractual arrangements are major financial institutions. We use multiple financial institutions for derivative contracts to minimize the concentration of credit risk. The current accounting rules require derivative instruments, excluding certain contracts that are issued and held by a reporting entity that are both indexed to its own stock and classified in shareholders’ equity, be reported in the Consolidated Balance Sheets at fair value and that changes in a derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. |
Fair Value Measurements | Fair Value Measurements – Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect our own assumptions. The fair value of intangible assets associated with acquisitions is determined using an income valuation approach. Projecting discounted future cash flows requires us to make significant estimates regarding projected revenues and profit margins, projected capital expenditures, changes in working capital, discount rates, attrition rates, royalty rates, obsolescence rates and tax rates. This non-recurring fair value measurement would be classified as Level 3 due to the absence of quoted market prices or observable inputs for assets of a similar nature. We review the carrying amounts of long-lived assets when certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss is recognized when the carrying amount of the asset group is not recoverable and exceeds its fair value. We estimate the fair values of assets subject to long-lived asset impairment based on our own judgments about the assumptions that market participants would use in pricing the assets. In doing so, we use a market approach when available or an income approach based upon discounted cash flows. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, projected growth rates, discount rates, and royalty rates for certain intangible assets. We classify these fair value measurements as Level 3. Similarly, the fair value computations for the recurring impairment analyses of goodwill and indefinite-lived intangible assets would be classified as Level 3 due to the absence of quoted market prices or observable inputs. The key assumptions used for the discounted cash flow approach include projected revenues and profit margins, projected capital expenditures, changes in working capital, discount rates, tax rates and royalty rates for certain indefinite-lived intangible assets. Significant changes in any of those inputs could result in a significantly different fair value measurement. |
Pensions and Postretirement Benefits | Pensions and Postretirement Benefits - Amortization of the net gain or loss resulting from experience different from that assumed and from changes in assumptions is included as a component of benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefits under the plan. We amortize prior service cost using the straight-line basis over the average future service life of active participants. For segment reporting purposes, we allocate service cost to each location generating those costs. All other components of net periodic pension cost are reported in other (non-operating) expense. |
Recently Issued Accounting Guidance | Recently Issued Accounting GuidanceIn December 2019, a standard was issued that will simplify the accounting for income taxes in nine unrelated areas. The standard is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We are currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | For 2020, 2019, and 2018, results of operations from Fairbanks Morse were as follows: Years Ended December 31, 2020 2019 2018 (in millions) Net sales $ 7.6 $ 284.2 $ 257.9 Cost of sales 7.6 216.9 197.4 Gross profit — 67.3 60.5 Operating expenses: Selling, general, and administrative expenses 1.5 28.2 28.8 Other (0.1) 0.8 0.2 Total operating expenses 1.4 29.0 29 Income (Loss) from discontinued operations before income taxes (1.4) 38.3 31.5 Income tax benefit (expense) 0.3 (7.8) (7.2) Income (loss) from discontinued operations, net of taxes before gain from sale of discontinued operations (1.1) 30.5 24.3 Gain from sale of discontinued operations, net of taxes 209.2 — — Income from discontinued operations, net of taxes $ 208.1 $ 30.5 $ 24.3 The major classes of assets and liabilities for Fairbanks Morse are shown below: As of December 31, 2019 (in millions) Assets: Accounts receivable $ 107.8 Inventories 60.2 Property, plant, and equipment 63.0 Goodwill 11.8 Other assets 11.3 Total assets of discontinued operations $ 254.1 Liabilities: Accounts payable $ 36.9 Accrued expenses 48.2 Other liabilities 4.4 Total liabilities of discontinued operations $ 89.5 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination, Segment Allocation | The following table represents the preliminary purchase price allocation: (in millions) Accounts receivable $ 6.1 Inventories 18.9 Property, plant and equipment 11.0 Goodwill 126.0 Other intangible assets 132.3 Other assets 9.1 Deferred income taxes (38.1) Liabilities assumed (10.0) Redeemable non-controlling interest (16.9) $ 238.4 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma condensed consolidated financial results of operations for the years ended December 31, 2020, 2019, and 2018 are presented as if these acquisitions had been completed on January 1, 2018: Years Ended December 31, 2020 2019 2018 (in millions) Pro forma net sales $ 1,098.7 $ 1,261.2 $ 1,335.2 Pro forma net income (loss) from continuing operations (22.9) 5.0 (27.5) |
Other Expense (Tables)
Other Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Restructuring Reserves | Restructuring reserves at December 31, 2020, as well as activity during the year, consisted of: Balance Provision Payments Balance (in millions) Personnel-related costs $ 1.4 $ 12.0 $ (8.9) $ 4.5 Facility relocation and closure costs — 5.4 (5.2) 0.2 $ 1.4 $ 17.4 $ (14.1) $ 4.7 Also included in restructuring costs for 2020 were asset write-downs, net of gains, of approximately $29.3 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2019, as well as activity during the year, consisted of: Balance Provision Payments Balance (in millions) Personnel-related costs $ — $ 5.1 $ (3.7) $ 1.4 Facility relocation and closure costs 1.0 1.2 (2.2) — $ 1.0 $ 6.3 $ (5.9) $ 1.4 Also included in restructuring costs for 2019 were asset write-downs of approximately $28.8 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2018, as well as activity during the year, consisted of: Balance, December 31, 2017 Provision Payments Balance (in millions) Personnel-related costs $ 0.7 $ 6.7 $ (7.4) $ — Facility relocation and closure costs 1.2 1.3 (1.5) 1.0 $ 1.9 $ 8.0 $ (8.9) $ 1.0 |
Schedule of Restructuring Costs By Reportable Segment | Restructuring costs by reportable segment are as follows: Years Ended December 31, 2020 2019 2018 (in millions) Sealing Technologies $ 30.3 $ 32.2 $ 21.3 Advanced Surface Technologies 0.1 0.1 0.1 Engineered Materials 16.3 2.1 0.7 Corporate — 0.7 0.1 $ 46.7 $ 35.1 $ 22.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax Domestic and Foreign | Income (loss) from continuing operations before income taxes as shown in the Consolidated Statements of Operations consists of the following: Years Ended December 31, 2020 2019 2018 (in millions) Domestic $ (88.3) $ (67.3) $ (75.3) Foreign 61.5 71.6 90.4 Total $ (26.8) $ 4.3 $ 15.1 |
Summary of Income Tax Expense in Consolidated Statements of Operations From Continuing Operations | A summary of income tax expense (benefit) from continuing operations in the Consolidated Statements of Operations is as follows: Years Ended December 31, 2020 2019 2018 (in millions) Current: Federal $ (15.1) $ (1.4) $ (4.3) Foreign 26.3 24.9 22.8 State (0.1) 1.3 (0.3) 11.1 24.8 18.2 Deferred: Federal (5.5) (6.4) (5.2) Foreign (8.1) (19.5) 1.4 State (1.0) (2.4) 5.4 (14.6) (28.3) 1.6 Total $ (3.5) $ (3.5) $ 19.8 |
Schedule of Deferred Income Tax Assets and Liabilities | Significant components of deferred income tax assets and liabilities at December 31, 2020 and 2019 are as follows: 2020 2019 (in millions) Deferred income tax assets: Net operating losses and tax credits $ 20.5 $ 34.8 Postretirement benefits other than pensions 0.5 2.1 Environmental reserves 9.5 8.6 Retained liabilities of previously owned businesses 0.8 1.0 Accruals and reserves 5.2 6.5 Operating leases 11.1 10.9 Pension obligations — 1.9 Inventories — 6.2 Cross currency swap 2.2 — Interest 11.0 17.8 Compensation and benefits 7.1 7.3 Other 0.8 — Gross deferred income tax assets 68.7 97.1 Valuation allowance (6.6) (7.9) Total deferred income tax assets 62.1 89.2 Deferred income tax liabilities: Depreciation and amortization (151.6) (120.8) Operating leases (11.1) (10.9) Cross currency swap — (2.9) Joint ventures — (0.3) Inventories (0.4) — Pension obligations (2.9) — Total deferred income tax liabilities (166.0) (134.9) Net deferred income tax liabilities $ (103.9) $ (45.7) The net deferred tax assets (liabilities) are reflected on a jurisdictional basis as a component of the December 31, 2020 and 2019 Consolidated Balance Sheet line items noted below: 2020 2019 (in millions) Other assets (non-current) $ 23.9 $ 25.5 Deferred taxes and non-current income taxes payable (127.8) (71.2) Net deferred income tax liabilities $ (103.9) $ (45.7) |
Reconciliation of Effective Tax Rate | The effective income tax rate from operations varied from the statutory federal income tax rate as follows: Percent of Pretax Income 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % U.S. taxation of foreign profits, net of foreign tax credits (0.6) 3.3 1.1 Research and employment tax credits 3.0 (17.2) (7.7) State and local taxes 3.2 (22.4) 25.5 Foreign tax rate differences (19.4) 152.3 27.8 Statutory changes in tax rates (1.2) 17.8 (1.1) Valuation allowance (2.5) (349.2) (6.3) Changes in uncertain tax positions (2.0) (9.0) 9.9 Nondeductible expenses (7.7) 57.3 5.7 GILTI and FDII 17.6 54.8 10.4 Other Tax Act items — — 48.2 Other items, net 1.8 12.0 (3.1) Effective income tax rate 13.2 % (79.3) % 131.4 % |
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (excluding interest) is as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 10.1 $ 2.9 $ 3.8 Additions based on tax positions related to the current year 1.9 1.2 0.2 Additions for tax positions of prior years 0.2 7.2 — Reductions as a result of a lapse in the statute of limitations — (1.2) (0.1) Reductions as a result of audit settlements — — (1.0) Balance at end of year $ 12.2 $ 10.1 $ 2.9 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share for calendar years 2020, 2019, and 2018 is as follows (in millions, except per share data): 2020 2019 2018 Numerator (basic and diluted): Income (loss) from continuing operations attributable to EnPro Industries, Inc. $ (23.7) $ 7.8 $ (4.7) Income from discontinued operations 208.1 30.5 24.3 Net income $ 184.4 $ 38.3 $ 19.6 Denominator: Weighted-average shares – basic 20.5 20.7 20.9 Share-based awards — 0.1 — Weighted-average shares – diluted 20.5 20.8 20.9 Basic earnings (loss) per share: Continuing operations $ (1.15) $ 0.38 $ (0.22) Discontinued operations 10.13 1.48 1.16 Net income per share $ 8.98 $ 1.86 $ 0.94 Diluted earnings (loss) per share: Continuing operations $ (1.15) $ 0.38 $ (0.22) Discontinued operations 10.13 1.47 1.16 Net income per share $ 8.98 $ 1.85 $ 0.94 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of December 31, 2020 2019 (in millions) Finished products $ 69.4 $ 80.6 Work in process 24.8 23.7 Raw materials and supplies 48.7 56.1 142.9 160.4 Reserve to reduce certain inventories to LIFO basis (3.8) (3.3) Total inventories $ 139.1 $ 157.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | As of December 31, 2020 2019 (in millions) Land $ 11.0 $ 13.6 Buildings and improvements 108.9 123.6 Machinery and equipment 329.4 341.8 Construction in progress 11.5 17.7 460.8 496.7 Less accumulated depreciation (265.8) (277.9) Total $ 195.0 $ 218.8 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment | The changes in the net carrying value of goodwill by reportable segment for the years ended December 31, 2020 and 2019 are as follows: Sealing Advanced Engineered Total (in millions) Goodwill as of December 31, 2018 $ 269.9 $ 35.6 $ 16.6 $ 322.1 Foreign currency translation 1.4 4.0 0.1 5.5 Acquisitions 30.9 128.1 — 159.0 Dispositions (1.3) — — (1.3) Goodwill as of December 31, 2019 300.9 167.7 16.7 485.3 Foreign currency translation 3.4 6.9 — 10.3 Acquisitions — 133.1 — 133.1 Dispositions (6.9) — — (6.9) Goodwill as of December 31, 2020 $ 297.4 $ 307.7 $ 16.7 $ 621.8 |
Schedule of Finite-lived Intangible Assets | Identifiable intangible assets are as follows: As of December 31, 2020 As of December 31, 2019 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 505.5 $ 177.8 $ 470.1 $ 166.2 Existing technology 179.6 41.3 117.5 50.8 Trademarks 44.6 25.7 39.4 24.1 Other 37.6 22.3 33.6 24.0 767.3 267.1 660.6 265.1 Indefinite-Lived: Trademarks 53.4 — 71.4 — Total $ 820.7 $ 267.1 $ 732.0 $ 265.1 |
Schedule of Indefinite-Lived Intangible Assets | Identifiable intangible assets are as follows: As of December 31, 2020 As of December 31, 2019 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 505.5 $ 177.8 $ 470.1 $ 166.2 Existing technology 179.6 41.3 117.5 50.8 Trademarks 44.6 25.7 39.4 24.1 Other 37.6 22.3 33.6 24.0 767.3 267.1 660.6 265.1 Indefinite-Lived: Trademarks 53.4 — 71.4 — Total $ 820.7 $ 267.1 $ 732.0 $ 265.1 |
Schedule of Estimated Amortization Expense of Intangible Assets | The estimated amortization expense for definite-lived (amortized) intangible assets for the next five years is as follows (in millions): 2021 $ 44.8 2022 $ 42.6 2023 $ 41.0 2024 $ 40.2 2025 $ 39.3 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Right of Use Assets and Liabilities | Our right of use assets and liabilities related to operating leases as of December 31, 2020 and December 31, 2019 are as follows: Balance Sheet Classification December 31, December 31, (in millions) Right-of-use assets Other assets $ 44.1 $ 37.5 Current liability Accrued expenses $ 10.1 $ 9.3 Long-term liability Other liabilities 35.3 28.4 Total liability $ 45.4 $ 37.7 |
Lease Cost and Cash Flows | Our lease costs and cash flows for the years ended December 31, 2020 and December 31, 2019 were as follows: December 31, December 31, (in millions) Lease costs: Operating lease costs $ 11.5 $ 10.9 Short-term and variable lease costs $ 0.7 $ 0.9 Cash flows: Operating cash flows from operating leases $ 11.5 $ 11.1 Our weighted average remaining lease term and discount rates at December 31, 2020 and December 31, 2019 were as follows: December 31, December 31, Weighted average remaining lease term (in years) 5.9 5.9 Weighted average discount rate 3.4 % 3.9 % |
Maturities of Operating Lease Liabilities | A maturity analysis of undiscounted operating lease liabilities is shown in the table below: Operating Lease Payments (in millions) 2021 $ 11.4 2022 9.0 2023 8.2 2024 6.3 2025 4.9 Thereafter 10.4 Total lease payments 50.2 Less: interest (4.8) Present value of lease liabilities $ 45.4 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | As of December 31, 2020 2019 (in millions) Salaries, wages and employee benefits $ 46.3 $ 43.7 Interest 4.4 5.1 Environmental 12.6 25.2 Income taxes 9.9 9.1 Taxes other than income 9.4 13.5 Operating lease liability 10.1 9.3 Other 35.7 31.4 $ 128.4 $ 137.3 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | As of December 31, 2020 2019 (in millions) Senior notes $ 345.9 $ 345.3 Revolving debt — 133.9 Term loan facility 145.4 149.1 Other notes payable — 1.0 491.3 629.3 Less current maturities of long-term debt 3.8 4.1 $ 487.5 $ 625.2 |
Schedule of Future Principal Payments on Long Term Debt | Future principal payments on long-term debt are as follows: (in millions) 2021 $ 3.8 2022 4.7 2023 7.5 2024 129.4 2025 — Thereafter 350.0 $ 495.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of December 31, 2020 December 31, 2019 (in millions) Assets Time deposits $ 4.2 $ 22.9 Foreign currency derivatives — 12.3 Deferred compensation assets 8.6 10.9 $ 12.8 $ 46.1 Liabilities Deferred compensation liabilities $ 8.9 $ 11.3 Foreign currency derivatives 9.5 0.6 $ 18.4 $ 11.9 |
Schedule of Carrying Value of Financial Instruments | The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximate their respective fair values, except for the following: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (in millions) Long-term debt $ 491.3 $ 520.8 $ 629.3 $ 658.0 |
Pensions and Postretirement B_2
Pensions and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Projected Benefit Obligations | The following table sets forth the changes in projected benefit obligations and plan assets of our defined benefit pension and other non-qualified and postretirement plans as of and for the years ended December 31, 2020 and 2019. Pension Benefits Other Benefits 2020 2019 2020 2019 (in millions) Change in Projected Benefit Obligations Projected benefit obligations at beginning of year $ 329.5 $ 276.8 $ 4.0 $ 4.1 Service cost 4.5 4.4 — 0.1 Interest cost 10.4 12.2 0.1 0.1 Actuarial loss (gain) 30.5 46.6 0.4 (0.2) Settlements — (0.3) (0.6) — Benefits paid (13.0) (10.8) (0.5) (0.5) Curtailments (5.1) — — — Plan combination (acquisitions/divestitures) (6.8) 0.9 — — Other 0.7 (0.3) 0.4 0.4 Projected benefit obligations at end of year 350.7 329.5 3.8 4.0 |
Schedule of Change in Plan Assets | Change in Plan Assets Fair value of plan assets at beginning of year 313.5 267.6 Actual return on plan assets 53.5 56.5 Administrative expenses (0.7) (0.8) Benefits paid (13.0) (10.8) Settlements — (0.3) Company contributions 4.4 1.3 Plan combination (acquisitions/divestitures) (4.1) — Other (0.2) — Fair value of plan assets at end of year 353.4 313.5 |
Schedule of Change in Plan Assets Underfunded Status at End of Year | Funded Status at End of Year $ 2.7 $ (16.0) $ (3.8) $ (4.0) |
Schedule Of Projected Benefit Obligations Amounts Recognized In Consolidated Balance Sheets | Pension Benefits Other Benefits 2020 2019 2020 2019 (in millions) Amounts Recognized in the Consolidated Balance Sheets Long-term assets $ 16.8 $ 1.7 $ — $ — Current liabilities (0.5) (0.6) (0.3) (0.2) Current liabilities held for sale — — — (0.7) Long-term liabilities (13.6) (17.1) (3.5) (3.1) $ 2.7 $ (16.0) $ (3.8) $ (4.0) |
Schedule of Pre Tax Charges Recognized in Accumulated Other Comprehensive Income (Loss) | Pre-tax charges recognized in accumulated other comprehensive loss as of December 31, 2020 and 2019 consist of: Pension Benefits Other Benefits 2020 2019 2020 2019 (in millions) Net actuarial (gain) loss $ 47.1 $ 60.0 $ 0.2 $ (1.0) Prior service cost 0.6 1.4 — — $ 47.7 $ 61.4 $ 0.2 $ (1.0) |
Schedule Of Net Periodic Benefit Cost | The following table sets forth the components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for our defined benefit pension and other non-qualified and postretirement plans for the years ended December 31, 2020, 2019 and 2018. Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 (in millions) Net Periodic Benefit Cost Service cost $ 4.5 $ 4.4 $ 4.8 $ — $ 0.1 $ 0.1 Interest cost 10.4 12.2 12.8 0.1 0.1 0.1 Expected return on plan assets (18.9) (15.7) (19.0) — — — Amortization of prior service cost 0.1 0.2 0.3 — 0.2 0.1 Amortization of net loss 5.2 6.6 5.1 0.2 — — Settlements — — 12.7 (1.1) — — Curtailments 0.3 — — — — — Net periodic benefit cost 1.6 7.7 16.7 (0.8) 0.4 0.3 |
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 (in millions) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) (7.8) 5.8 13.3 0.3 (0.1) (0.6) Prior service cost (0.3) 0.5 — — — — Amortization of net loss (5.2) (6.6) (5.1) (0.2) — — Amortization of prior service cost (0.1) (0.2) (0.3) — (0.2) (0.1) Settlements — — (12.7) 1.1 — — Curtailments (0.3) — — — — — Total recognized in other comprehensive income (13.7) (0.5) (4.8) 1.2 (0.3) (0.7) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ (12.1) $ 7.2 $ 11.9 $ 0.4 $ 0.1 $ (0.4) |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Discount rate 2.625 % 3.375 % 4.375 % 2.625 % 3.375 % 4.375 % Rate of compensation increase 3.0 % 3.0 % 3.0 % 4.0 % 4.0 % 4.0 % Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Discount rate 3.375 % 4.375 % 4.00 % 3.375 % 4.375 % 3.75 % Expected long-term return on plan assets 6.0 % 6.0 % 6.0 % — — — Rate of compensation increase 3.0 % 3.0 % 3.0 % 4.0 % 4.0 % 4.0 % |
Schedule of Assumed Health Care Cost Trend Rates | We use the Pri-2012 base mortality table with the MP-2020 projection scale to value our domestic pension liabilities. Assumed Health Care Cost Trend Rates at December 31 2020 2019 Health care cost trend rate assumed for next year 7.5 % 8.0 % Rate to which the cost trend rate is assumed to decline (the ultimate rate) 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2027 2027 |
Schedule of Asset Allocation for Pension Plans and Target Allocation By Asset Category | The asset allocation for pension plans at the end of 2020 and 2019, and the target allocation for 2021, by asset category are as follows: Target Plan Assets at December 31, 2021 2020 2019 Asset Category Equity securities 30 % 33 % 29 % Fixed income 70 % 67 % 71 % 100 % 100 % 100 % |
Schedule of Fair Value of Plan Assets | The investment portfolios of the various funds at December 31, 2020 and 2019 are summarized as follows: 2020 2019 (in millions) Mutual funds – U.S. equity $ 68.3 $ 55.7 Mutual funds – international equity 46.9 35.9 Mutual funds - fixed income treasury and money market 237.0 221.1 Cash equivalents 1.2 0.8 $ 353.4 $ 313.5 |
Schedule of Benefit Payments Reflecting Expected Future Service as Appropriate Expected to Be Paid | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the following calendar years: Pension Other (in millions) 2021 $ 13.6 $ 0.3 2022 14.4 1.9 2023 15.6 0.2 2024 17.0 0.2 2025 18.3 0.2 Years 2025 – 2029 96.4 0.7 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component (after tax) are as follows: (in millions) Unrealized Pension and Total Balance at December 31, 2017 $ (6.8) $ (41.6) $ (48.4) Other comprehensive loss before reclassifications (3.8) (7.1) (10.9) Amounts reclassified from accumulated other — 13.8 13.8 Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (3.8) 6.7 2.9 Balance at December 31, 2018 (10.6) (34.9) (45.5) Adoption of new accounting standard — (11.5) (11.5) Adjusted balance at December 31, 2018 (10.6) (46.4) (57.0) Other comprehensive income (loss) before reclassifications 20.4 (5.1) 15.3 Amounts reclassified from accumulated other — 5.3 5.3 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 20.4 0.2 20.6 Balance at December 31, 2019 9.8 (46.2) (36.4) Other comprehensive income before reclassifications 21.5 6.0 27.5 Amounts reclassified from accumulated other 3.4 3.6 7.0 Net current-period other comprehensive income 24.9 9.6 34.5 Less: other comprehensive income attributable to redeemable non-controlling interests 3.0 — 3.0 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 21.9 9.6 31.5 Balance at December 31, 2020 $ 31.7 $ (36.6) $ (4.9) |
Schedule of Reclassification out of Comprehensive Loss | Reclassifications out of accumulated other comprehensive loss are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Statement of Operations Caption Years Ended December 31, 2020 2019 2018 (in millions) Pension and other postretirement plans adjustments: Amortization of actuarial losses $ 5.4 $ 6.6 $ 5.1 (1) Amortization of prior service costs 0.1 0.4 0.4 (1) Curtailments 0.3 — — (1) Settlements (1.1) — 12.7 (1) Total before tax 4.7 7.0 18.2 Income from continuing operations before income taxes Tax benefit (1.1) (1.7) (4.4) Income tax expense Net of tax $ 3.6 $ 5.3 $ 13.8 Income (loss) from continuing operations Release of unrealized currency translation adjustment upon sale of investment in foreign entity, net of tax $ 3.4 $ — $ — Other (non-operating) expense (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. Since these are components of net periodic pension cost other than service cost, the affected Consolidated Statement of Operations caption is other (non-operating) expense. (See Note 15 , "Pensions and Postretirement Benefits" for additional details). |
Equity Compensation Plan (Table
Equity Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Information With Respect to Stock Options | We used the following assumptions in determining the fair value of these awards: Expected stock price volatility Annual expected dividend yield Risk free interest rate Shares granted February 18, 2020 EnPro Industries, Inc. 31.62 % 1.69 % 1.37 % S&P 600 Capital Goods Index 34.90 % n/a 1.37 % Shares granted February 11, 2019 EnPro Industries, Inc. 30.72 % 1.40 % 2.53 % S&P 600 Capital Goods Index 34.36 % n/a 2.53 % Shares granted February 12, 2018 EnPro Industries, Inc. 32.41 % 1.15 % 1.92 % S&P 600 Capital Goods Index 34.90 % n/a 1.92 % The following table provides certain information with respect to stock options as of December 31, 2020: Range of Exercise Price Share Options Outstanding Stock Options Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Life Under $50.00 18,187 18,187 $ 42.24 0.11 Over $50.00 and under $60.00 143,680 — 54.34 9.21 Over $60.00 40,937 — 66.31 8.57 Total 202,804 18,187 $ 55.67 8.27 |
Summary of Restricted Share Units Activity, Performance Share Activity and Restricted Stock Activity | A summary of award activity under these plans is as follows: Restricted Share Units Performance Shares - Equity Performance Shares - Liability Shares Weighted- Shares Weighted- Shares Fair Value at December 31, 2020 Nonvested at December 31, 2017 235,557 $ 57.87 270,599 $ 61.92 — $ — Granted 73,817 82.03 77,076 93.61 — — Vested (58,188) 63.64 (51,207) 63.81 — — Forfeited (19,853) 65.17 (25,142) 65.14 — — Achievement level adjustment — — (71,671) 63.81 — — Shares settled for cash (12,403) 64.19 — — — — Nonvested at December 31, 2018 218,930 57.87 199,655 75.87 — — Granted 78,576 68.48 116,342 77.15 — — Vested (78,958) 44.44 (75,312) 49.68 — — Forfeited (6,830) 72.99 (12,130) 82.26 — — Achievement level adjustment — — 24,105 49.68 — — Shares settled for cash (12,294) 43.85 — — — — Nonvested at December 31, 2019 199,424 72.72 252,660 81.46 — — Granted 97,144 59.27 — — 95,924 105.91 Vested (53,163) 68.42 — — — — Forfeited (34,890) 71.14 (33,218) 81.91 (2,336) 105.91 Achievement level adjustment — — (132,846) 93.61 — — Shares settled for cash (8,136) 68.35 — — — — Nonvested at December 31, 2020 200,379 $ 67.83 86,596 $ 77.15 93,588 $ 105.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Valuation Assumptions | The following assumptions were used to estimate the fair value of the 2020 option awards: Grant Date February 27, 2020 August 27, 2020 Average expected term 6 years 6 years Expected volatility 31.53 % 39.51 % Risk-free interest rate 1.17 % 0.42 % Expected dividend yield 1.93 % 1.74 % Average expected term 7 years Expected volatility 29.68 % Risk-free interest rate 1.95 % Expected dividend yield 1.51 % |
Share-based Payment Arrangement, Option, Activity | A summary of option activity under the Plans as of December 31, 2020, and changes during the year then ended, is presented below: Share Options Outstanding Weighted Average Exercise Price Balance at December 31, 2019 59,124 $ 58.91 Granted 143,680 54.34 Balances at December 31, 2020 202,804 $ 55.67 |
Schedule Of Intrinsic Value Related to stock Options | The year-end intrinsic value related to stock options is presented below: As of and for the Years Ended December 31, (in millions) 2020 2019 2018 Options outstanding $ 4.0 $ 0.5 $ 0.3 Options exercisable $ 0.6 $ 0.4 $ 0.3 |
Schedule of Equity Based Compensation | We recognized the following equity-based employee compensation expenses and benefits related to our Plan activity: Years Ended December 31, (in millions) 2020 2019 2018 Compensation expense $ 5.4 $ 6.8 $ 6.5 Related income tax benefit $ 1.4 $ 2.2 $ 1.9 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Results and Other Financial Data | Segment operating results and other financial data for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, 2020 2019 2018 (in millions) Sales Sealing Technologies $ 636.7 $ 762.4 $ 813.1 Advanced Surface Technologies 171.2 120.2 114.0 Engineered Materials 275.0 331.3 355.0 1,082.9 1,213.9 1,282.1 Intersegment sales (8.9) (8.2) (8.0) Total sales $ 1,074.0 $ 1,205.7 $ 1,274.1 Adjusted Segment EBITDA Sealing Technologies $ 131.0 $ 131.4 $ 137.4 Advanced Surface Technologies 47.1 23.5 17.6 Engineered Materials 32.5 53.7 60.4 Total Adjusted Segment EBITDA $ 210.6 $ 208.6 $ 215.4 Reconciliation of Adjusted Segment EBITDA to income (loss) from continuing operations before income taxes Adjusted Segment EBITDA $ 210.6 $ 208.6 $ 215.4 Acquisition and divestiture expenses (9.6) (8.4) (1.9) Non-controlling interest compensation allocation (2.9) (0.5) — Amortization of fair value adjustment to acquisition date inventory (3.0) — — Restructuring and impairment expense (30.6) (8.7) (22.1) Depreciation and amortization expense (70.7) (67.9) (66.1) Segment profit 93.8 123.1 125.3 Corporate expenses (37.9) (36.4) (34.9) Interest expense, net (14.9) (18.2) (27.3) Other expense, net (67.8) (64.2) (48.0) Income (loss) from continuing operations before income taxes $ (26.8) $ 4.3 $ 15.1 |
Schedule of Net Sales by Geographical Area | Years Ended December 31, 2020 2019 2018 (in millions) Net Sales by Geographic Area United States $ 555.7 $ 630.2 $ 736.2 Europe 244.2 301.2 278.6 Other foreign 274.1 274.3 259.3 Total $ 1,074.0 $ 1,205.7 $ 1,274.1 |
Disaggregation of Revenue | Below is a summary of our third-party sales by major end market with which we did business for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 35.5 $ 8.0 $ 5.4 $ 48.9 Automotive 2.1 0.1 66.3 68.5 Chemical and material processing 53.0 — 43.9 96.9 Food and pharmaceutical 52.3 — 1.6 53.9 General industrial 160.7 2.9 72.3 235.9 Medium-duty/heavy-duty truck 241.7 — 0.1 241.8 Oil and gas 20.5 2.1 64.1 86.7 Power generation 43.6 — 20.1 63.7 Semiconductors 14.6 157.1 — 171.7 Other 4.9 0.9 0.2 6.0 Total third-party sales $ 628.9 $ 171.1 $ 274.0 $ 1,074.0 Year Ended December 31, 2019 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 46.9 $ 10.5 $ 12.0 $ 69.4 Automotive 7.0 — 81.5 88.5 Chemical and material processing 48.0 — 48.3 96.3 Food and pharmaceutical 38.8 — 0.9 39.7 General industrial 174.9 1.3 88.6 264.8 Medium-duty/heavy-duty truck 340.9 — 1.2 342.1 Oil and gas 25.2 4.8 83.1 113.1 Power generation 47.7 — 9.5 57.2 Semiconductors 12.2 103.5 — 115.7 Other 13.8 0.1 5.0 18.9 Total third-party sales $ 755.4 $ 120.2 $ 330.1 $ 1,205.7 Year Ended December 31, 2018 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 45.4 $ 8.7 $ 8.4 $ 62.5 Automotive 5.3 — 97.3 102.6 Chemical and material processing 54.5 — 49.5 104.0 Food and pharmaceutical 37.1 — 1.0 38.1 General industrial 173.4 0.8 99.3 273.5 Medium-duty/heavy-duty truck 387.3 — 1.1 388.4 Oil and gas 19.7 3.6 77.4 100.7 Power generation 57.8 — 11.2 69.0 Semiconductors 12.8 100.9 — 113.7 Other 13.0 — 8.6 21.6 Total third-party sales $ 806.3 $ 114.0 $ 353.8 $ 1,274.1 |
Schedule of Segment Related Capital Expenditure, Depreciation and Amortization on those Expenditures | Years Ended December 31, 2020 2019 2018 (in millions) Capital Expenditures Sealing Technologies $ 8.0 $ 12.7 $ 22.6 Advanced Surface Technologies 5.3 1.5 2.6 Engineered Materials 4.9 7.4 10.9 Corporate 0.1 — — Total capital expenditures $ 18.3 $ 21.6 $ 36.1 Depreciation and Amortization Expense Sealing Technologies $ 36.5 $ 45.0 $ 46.4 Advanced Surface Technologies 20.0 7.0 3.1 Engineered Materials 14.2 15.9 16.6 Corporate 0.1 — — Total depreciation and amortization $ 70.8 $ 67.9 $ 66.1 |
Schedule of Total Assets Segment | As of December 31, 2020 2019 (in millions) Assets Sealing Technologies $ 741.9 $ 882.2 Advanced Surface Technologies 768.2 434.3 Engineered Materials 245.8 259.4 Corporate 327.7 205.1 Discontinued operations — 254.1 $ 2,083.6 $ 2,035.1 |
Schedule of Long Lived Assets Segment | Long-Lived Assets United States $ 115.9 $ 130.1 France 21.0 24.2 Other Europe 20.3 20.7 Other foreign 37.8 43.8 Total $ 195.0 $ 218.8 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Changes In Carrying Amount Of Product Warranty Liability | Changes in the carrying amount of the product warranty liability for the years ended December 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 (in millions) Balance at beginning of year $ 10.1 $ 9.4 $ 2.7 Charges to expense 1.4 5.8 10.1 Settlements made (4.8) (5.1) (3.4) Balance at end of year $ 6.7 $ 10.1 $ 9.4 |
Overview, Basis of Presentati_3
Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020USD ($)business | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)business | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 01, 2020USD ($) | Oct. 01, 2020 | Jan. 01, 2020USD ($) | Mar. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Retained earnings | $ 794.8 | $ 794.8 | $ 632.2 | |||||||
Right-of-use assets | 44.1 | 44.1 | 37.5 | $ 27 | ||||||
Operating lease liability | $ 45.4 | 45.4 | 37.7 | $ 27 | ||||||
Foreign currency transaction losses | 2.9 | 3 | $ 0.6 | |||||||
Total research and development expenditures | $ 15.2 | $ 20.6 | 22.9 | |||||||
Percentage of inventories were valued by the LIFO method | 19.00% | 19.00% | 19.00% | |||||||
Goodwill | $ 621.8 | $ 621.8 | $ 485.3 | 322.1 | ||||||
Percentage above carrying value (percent) | 20.00% | |||||||||
Assets fair value | 12.8 | $ 12.8 | 46.1 | |||||||
Technetics Group Reporting Unit | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Goodwill | $ 67.7 | |||||||||
Percentage above carrying value (percent) | 26.00% | |||||||||
Semiconductor Reporting Unit | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Goodwill | $ 180.1 | |||||||||
Percentage above carrying value (percent) | 2.00% | |||||||||
Adjustment | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Retained earnings | $ (0.1) | |||||||||
Allowance for credit losses | $ 0.1 | |||||||||
Building Improvements | Minimum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Property, plant and equipment useful life, in years | 5 years | |||||||||
Building Improvements | Maximum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Property, plant and equipment useful life, in years | 25 years | |||||||||
Machinery and equipment | Minimum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Property, plant and equipment useful life, in years | 3 years | |||||||||
Machinery and equipment | Maximum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Property, plant and equipment useful life, in years | 10 years | |||||||||
Order Backlog | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Backlog of orders of continuing operations | 212.5 | $ 212.5 | 190.7 | |||||||
Finite-Lived Intangible Assets | Minimum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Intangible assets estimated useful lives, in years | 2 years | |||||||||
Finite-Lived Intangible Assets | Maximum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Intangible assets estimated useful lives, in years | 21 years | |||||||||
Trade Names | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Impairment of intangible assets | $ 16.1 | |||||||||
Sealing Technologies | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Goodwill transfer in (out) | (180.1) | $ (5.8) | ||||||||
Goodwill | 297.4 | $ 297.4 | 300.9 | 269.9 | ||||||
Sealing Technologies | Trade Names | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Indefinite lived Motorwheel tradename | 7.9 | |||||||||
Assets fair value | 2.1 | |||||||||
Advanced Surface Technologies | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Goodwill transfer in (out) | 180.1 | |||||||||
Goodwill | 307.7 | 307.7 | 167.7 | 35.6 | ||||||
Engineered Materials | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Goodwill transfer in (out) | $ 5.8 | |||||||||
Goodwill | $ 16.7 | $ 16.7 | $ 16.7 | $ 16.6 | ||||||
Engineered Materials | Oil And Gas | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||
Number of businesses (business) | business | 2 | 2 | ||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||||||||||
Backlog orders expected percentage | 6.10% | 6.10% | ||||||||
Remaining performance obligations, expected timing | 1 year | 1 year |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Discontinued Operations, Disposed of by Sale - Fairbanks Morse - USD ($) $ in Millions | Jan. 21, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Proceeds from sale of investment projects | $ 450 | |||
The pre-tax gain on the disposition | $ 274.3 | |||
Income from discontinued operations before income taxes | $ (1.4) | $ 38.3 | $ 31.5 | |
Adjustments | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Income from discontinued operations before income taxes | $ 2.4 | $ 2.2 |
Discontinued Operations - Resul
Discontinued Operations - Results of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating expenses: | |||
Income from discontinued operations, net of taxes | $ 208.1 | $ 30.5 | $ 24.3 |
Discontinued Operations, Disposed of by Sale | Fairbanks Morse | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Net sales | 7.6 | 284.2 | 257.9 |
Cost of sales | 7.6 | 216.9 | 197.4 |
Gross profit | 0 | 67.3 | 60.5 |
Operating expenses: | |||
Selling, general, and administrative expenses | 1.5 | 28.2 | 28.8 |
Other | (0.1) | ||
Other | 0.8 | 0.2 | |
Total operating expenses | 1.4 | 29 | 29 |
Income (Loss) from discontinued operations before income taxes | (1.4) | 38.3 | 31.5 |
Income tax benefit (expense) | 0.3 | (7.8) | (7.2) |
Income (loss) from discontinued operations, net of taxes before gain from sale of discontinued operations | (1.1) | 30.5 | 24.3 |
Gain from sale of discontinued operations, net of taxes | 209.2 | 0 | 0 |
Income from discontinued operations, net of taxes | $ 208.1 | $ 30.5 | $ 24.3 |
Discontinued Operations - Class
Discontinued Operations - Classes of Assets and Liabilities (Details) - Fairbanks Morse - Discontinued Operations, Disposed of by Sale $ in Millions | Dec. 31, 2019USD ($) |
Assets: | |
Accounts receivable | $ 107.8 |
Inventories | 60.2 |
Property, plant, and equipment | 63 |
Goodwill | 11.8 |
Other assets | 11.3 |
Total assets of discontinued operations | 254.1 |
Liabilities: | |
Accounts payable | 36.9 |
Accrued expenses | 48.2 |
Other liabilities | 4.4 |
Total liabilities of discontinued operations | $ 89.5 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions Narrative (Details) $ in Thousands | Oct. 26, 2020USD ($)location | Sep. 25, 2019USD ($)locationinstallmentseller | Jul. 02, 2019USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 28, 2020 |
Business Acquisition | |||||||||
Payments to acquire business | $ 238,300 | $ 310,500 | $ 0 | ||||||
Acquisition-related costs | 5,000 | 7,000 | 12,000 | ||||||
Goodwill | 621,800 | 485,300 | 322,100 | ||||||
Total third-party sales | 1,074,000 | 1,205,700 | 1,274,100 | ||||||
Income before income taxes | (26,800) | 4,300 | 15,100 | ||||||
United States | |||||||||
Business Acquisition | |||||||||
Total third-party sales | 555,700 | 630,200 | $ 736,200 | ||||||
Alluxa Inc | |||||||||
Business Acquisition | |||||||||
Payments to acquire business | $ 238,400 | ||||||||
Acquisition-related costs | 5,000 | ||||||||
Goodwill | 126,000 | ||||||||
Expected tax deductible goodwill | $ 100 | ||||||||
Expected tax deductible goodwill term | 7 years | ||||||||
Other intangible assets | $ 132,300 | ||||||||
Weighted average amortization period | 13 years | ||||||||
Inventory adjustments | $ 13,900 | ||||||||
Total third-party sales | 5,700 | ||||||||
Income before income taxes | $ 6,100 | ||||||||
LeanTeq | |||||||||
Business Acquisition | |||||||||
Payments to acquire business | $ 271,200 | ||||||||
Acquisition-related costs | 6,400 | ||||||||
Number of sellers | seller | 2 | ||||||||
Rollover equity right term following third anniversary of closing | 90 days | ||||||||
Rollover equity rights payable installments | installment | 2 | ||||||||
Payment received as a result of final working capital adjustment | $ 100 | ||||||||
Income tax rate utilized (percent) | 23.60% | 20.00% | |||||||
Income tax rate utilized, local (percent) | 3.60% | ||||||||
Deferred tax liability | $ 7,100 | ||||||||
LeanTeq | Taiwan | |||||||||
Business Acquisition | |||||||||
Number of locations | location | 2 | ||||||||
LeanTeq | United States | |||||||||
Business Acquisition | |||||||||
Number of locations | location | 1 | ||||||||
LeanTeq | Lunar | |||||||||
Business Acquisition | |||||||||
Percent of ownership by rollover equity sellers | 10.00% | ||||||||
Rollover equity rights payable installments term | 12 months | ||||||||
Aseptic | |||||||||
Business Acquisition | |||||||||
Payments to acquire business | $ 39,300 | ||||||||
Percent acquired | 100.00% | ||||||||
LeanTeq and Aseptic | |||||||||
Business Acquisition | |||||||||
Total third-party sales | 14,400 | ||||||||
Income before income taxes | $ 1,500 | ||||||||
Alluxa Inc | |||||||||
Business Acquisition | |||||||||
Number of locations | location | 2 | ||||||||
Alluxa Inc | Acquisition Subsidiary | |||||||||
Business Acquisition | |||||||||
Ownership interest, minority interest | 7.00% | ||||||||
Aggregate value of ownership interest | $ 17,850 | ||||||||
Fair value of equity interest | 16,900 | ||||||||
Rollover equity, calculated compensation amount | $ 9,800 | ||||||||
Lunar | LeanTeq | |||||||||
Business Acquisition | |||||||||
Rollover equity rights payable installments term | 12 months |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Acquisitions (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Oct. 26, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition | ||||
Goodwill | $ 621.8 | $ 485.3 | $ 322.1 | |
Alluxa Inc | ||||
Business Acquisition | ||||
Accounts receivable | $ 6.1 | |||
Inventories | 18.9 | |||
Property, plant and equipment | 11 | |||
Goodwill | 126 | |||
Other intangible assets | 132.3 | |||
Other assets | 9.1 | |||
Deferred income taxes | (38.1) | |||
Liabilities assumed | (10) | |||
Redeemable non-controlling interest | (16.9) | |||
Purchase price allocation | $ 238.4 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Pro Forma (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition, Pro Forma Information | |||
Pro forma net sales | $ 1,098.7 | $ 1,261.2 | $ 1,335.2 |
Pro forma net income (loss) from continuing operations | $ (22.9) | $ 5 | $ (27.5) |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Dispositions Narrative (Details) £ in Thousands, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Nov. 20, 2020USD ($) | Sep. 02, 2020USD ($) | Feb. 29, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition | |||||||||||||||
Asset impairments | $ 29.3 | $ 29.4 | $ 14.1 | ||||||||||||
Net tangible asset write downs | $ 1.8 | ||||||||||||||
Gain (loss) on disposal of business | (2.6) | (11.3) | 0 | ||||||||||||
Restructuring charges | 17.4 | 6.3 | 8 | ||||||||||||
Proceeds from sale of businesses | 475.1 | 3.6 | 0 | ||||||||||||
Loss on sale of assets | (21.7) | ||||||||||||||
Restructuring and impairment charges | 3.5 | 30.6 | 8.7 | $ 22.1 | |||||||||||
Inventory impairment | $ 2 | ||||||||||||||
Disposal by Sale | |||||||||||||||
Business Acquisition | |||||||||||||||
Inventory impairment | 0.2 | ||||||||||||||
Disposal by Sale | Brake Products | Sealing Technologies | |||||||||||||||
Business Acquisition | |||||||||||||||
Gain (loss) on disposal of business | (15.7) | ||||||||||||||
Proceeds from sale of businesses | $ 2.9 | $ 3.6 | $ 0.1 | 0.2 | |||||||||||
Loss on sale of assets | 0.6 | ||||||||||||||
Pre-tax loss | 16.3 | ||||||||||||||
Business sales price | $ 6.8 | ||||||||||||||
Disposal by Sale | Non-Cash Loss on Sale of Business | Brake Products | Sealing Technologies | |||||||||||||||
Business Acquisition | |||||||||||||||
Gain (loss) on disposal of business | (11.3) | ||||||||||||||
Disposal by Sale | Contract Cancellation, Severance and Other | Brake Products | Sealing Technologies | |||||||||||||||
Business Acquisition | |||||||||||||||
Gain (loss) on disposal of business | $ (4.4) | ||||||||||||||
Disposal by Sale | Bushing Block Business | |||||||||||||||
Business Acquisition | |||||||||||||||
Asset impairments | $ 6.2 | ||||||||||||||
Net tangible asset write downs | 1.8 | ||||||||||||||
Payments due to buyer at closing | 4.4 | ||||||||||||||
Gain (loss) on disposal of business | 0.1 | ||||||||||||||
Restructuring charges | 6.1 | ||||||||||||||
Disposal by Sale | Air Springs | |||||||||||||||
Business Acquisition | |||||||||||||||
Proceeds from sale of businesses | $ 23.1 | ||||||||||||||
Accounts receivable | 6.4 | ||||||||||||||
Accounts receivable, face value | 7.5 | ||||||||||||||
Retained account receivable | $ 8.6 | ||||||||||||||
Loss on disposal | $ 0.1 | ||||||||||||||
Disposal by Sale | Motor Wheel Brake Drum and Crewson Brake | |||||||||||||||
Business Acquisition | |||||||||||||||
Gain (loss) on disposal of business | $ (3.1) | ||||||||||||||
Restructuring charges | 10.5 | ||||||||||||||
Proceeds from sale of businesses | 8.9 | ||||||||||||||
Loss on sale of assets | 3 | ||||||||||||||
Loss on sale of other assets | $ 0.1 | ||||||||||||||
Restructuring and impairment charges | $ 7.4 | 7.4 | |||||||||||||
Inventory impairment | 3.6 | ||||||||||||||
Disposal by Sale | Lunar Air Disc Brake | |||||||||||||||
Business Acquisition | |||||||||||||||
Asset impairments | $ 2.1 | ||||||||||||||
Net tangible asset write downs | 1.4 | 1.6 | |||||||||||||
Restructuring charges | $ 1.9 | ||||||||||||||
Inventory impairment | $ 0.5 | $ 0.5 | |||||||||||||
Disposal by Sale | Lunar Air Disc Brake | United States | |||||||||||||||
Business Acquisition | |||||||||||||||
Gain (loss) on disposal of business | 0.2 | ||||||||||||||
Proceeds from sale of businesses | $ 0.3 | ||||||||||||||
Disposal by Sale | Lunar Air Disc Brake | CHINA | |||||||||||||||
Business Acquisition | |||||||||||||||
Gain (loss) on disposal of business | (0.1) | ||||||||||||||
Proceeds from sale of businesses | $ 0.9 | ||||||||||||||
Technetics Group UK Limited | |||||||||||||||
Business Acquisition | |||||||||||||||
Value added tax payments | £ | £ 148 | ||||||||||||||
Working capital payments | £ | 50 | ||||||||||||||
Loss on sale of investment | $ 1.3 | £ 976 |
Other Expense - Additional Info
Other Expense - Additional Information (Detail) € in Millions, $ in Millions | Sep. 02, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2020USD ($)position | Dec. 31, 2020EUR (€)position | Dec. 31, 2019USD ($)position | Dec. 31, 2018USD ($)position |
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Restructuring costs incurred | $ 46.7 | $ 35.1 | $ 22.2 | |||||||||
Asset write-downs | 29.3 | 29.4 | 14.1 | |||||||||
Net tangible asset write downs | $ 1.8 | |||||||||||
Inventory impairment | 2 | |||||||||||
Restructuring and impairment expense | 3.5 | $ 30.6 | 8.7 | $ 22.1 | ||||||||
Severance costs | 3.8 | |||||||||||
Total workforce reductions (positions) | position | 289 | 289 | 98 | |||||||||
Impairment of finite-lived intangible assets | 19.1 | |||||||||||
Restructuring charges | $ 17.4 | 6.3 | $ 8 | |||||||||
Gain on disposition of property | 21.7 | |||||||||||
Other restructuring costs | $ 0.5 | |||||||||||
Legal fees primarily related to the bankruptcy of certain subsidiaries | 7.8 | 0.2 | 2 | |||||||||
Environmental remediation expense | 38.2 | 14.5 | 13.4 | |||||||||
Expense related to components of net benefit cost other than service cost | (3) | 3.3 | 12 | |||||||||
Loss on sale of businesses | 2.6 | 11.3 | 0 | |||||||||
Loss on extinguishment of debt | $ 18.1 | 0 | 0 | 18.1 | ||||||||
Personnel-related costs | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Restructuring costs incurred | $ 3.4 | 7.6 | ||||||||||
Restructuring charges | 12 | 5.1 | 6.7 | |||||||||
Disposal by Sale | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Inventory impairment | 0.2 | |||||||||||
Net sales | 110.1 | 161.2 | 173.5 | |||||||||
Restructuring Charges | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Asset write-downs | 29.3 | 28.8 | 14.2 | |||||||||
Various Businesses and Product Line | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Loss on sale of businesses | 2.6 | |||||||||||
Bushing Block Business | Held for sale | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Net tangible asset write downs | 3 | |||||||||||
Restructuring and impairment expense | 8.6 | |||||||||||
Payments due to buyer at closing | 4.4 | € 3.7 | ||||||||||
Severance costs | 1.2 | |||||||||||
Bushing Block Business | Disposal by Sale | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Asset write-downs | $ 6.2 | |||||||||||
Net tangible asset write downs | 1.8 | |||||||||||
Payments due to buyer at closing | 4.4 | |||||||||||
Restructuring charges | 6.1 | |||||||||||
Loss on sale of businesses | (0.1) | |||||||||||
Motor Wheel Brake Drum and Crewson Brake | Disposal by Sale | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Inventory impairment | 3.6 | |||||||||||
Impairment of intangible assets | 3.5 | |||||||||||
Restructuring and impairment expense | $ 7.4 | 7.4 | ||||||||||
Severance costs | 0.3 | |||||||||||
Restructuring charges | 10.5 | |||||||||||
Gain on disposition of property | $ (3) | |||||||||||
Loss on sale of businesses | $ 3.1 | |||||||||||
Lunar Air Disc Brake | Disposal by Sale | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Restructuring costs incurred | 1.9 | |||||||||||
Asset write-downs | $ 2.1 | |||||||||||
Net tangible asset write downs | 1.4 | 1.6 | ||||||||||
Inventory impairment | $ 0.5 | $ 0.5 | ||||||||||
Restructuring charges | $ 1.9 | |||||||||||
Trademarks | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Impairment of intangible assets | $ 16.1 | |||||||||||
Motorwheel Product Line | Sealing Technologies | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Impairment of assets | 21 | |||||||||||
Impairment of finite-lived intangible assets | 9.2 | |||||||||||
Impairment of PP&E | 3.9 | |||||||||||
Motorwheel Product Line | Sealing Technologies | Trademarks | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Indefinite lived Motorwheel tradename | 7.9 | |||||||||||
Aeris And BatRF | Sealing Technologies | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Restructuring charges | $ 15.4 | 1.1 | ||||||||||
Aeris And BatRF | Sealing Technologies | Shutdown | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Net tangible asset write downs | $ 3.1 | |||||||||||
Inventory impairment | 3.1 | |||||||||||
Restructuring and impairment expense | $ 30.8 | |||||||||||
Severance costs | 1 | |||||||||||
Total workforce reductions (positions) | position | 121 | |||||||||||
Impairment of finite-lived intangible assets | 1.6 | |||||||||||
Restructuring charges | $ 3.1 | |||||||||||
Brake Products | Sealing Technologies | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Net sales | $ 37.5 | $ 37.1 | ||||||||||
Brake Products | Sealing Technologies | Disposal by Sale | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Gain on disposition of property | (0.6) | |||||||||||
Loss on sale of businesses | 15.7 | |||||||||||
Pre-tax loss | $ 16.3 | |||||||||||
Metallic Gaskets | Disposal by Sale | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||||||||
Asset write-downs | 1.5 | |||||||||||
Net tangible asset write downs | 1.4 | |||||||||||
Inventory impairment | $ 0.1 |
Other Expense - Schedule of Res
Other Expense - Schedule of Restructuring Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve | |||
Beginning balance | $ 1.4 | $ 1 | $ 1.9 |
Provision | 17.4 | 6.3 | 8 |
Payments | (14.1) | (5.9) | (8.9) |
Ending balance | 4.7 | 1.4 | 1 |
Personnel-related costs | |||
Restructuring Reserve | |||
Beginning balance | 1.4 | 0 | 0.7 |
Provision | 12 | 5.1 | 6.7 |
Payments | (8.9) | (3.7) | (7.4) |
Ending balance | 4.5 | 1.4 | 0 |
Facility relocation and closure costs | |||
Restructuring Reserve | |||
Beginning balance | 0 | 1 | 1.2 |
Provision | 5.4 | 1.2 | 1.3 |
Payments | (5.2) | (2.2) | (1.5) |
Ending balance | $ 0.2 | $ 0 | $ 1 |
Other Expense - Schedule of R_2
Other Expense - Schedule of Restructuring Costs by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve | |||
Restructuring costs incurred | $ 46.7 | $ 35.1 | $ 22.2 |
Operating Segments | Sealing Technologies | |||
Restructuring Cost and Reserve | |||
Restructuring costs incurred | 30.3 | 32.2 | 21.3 |
Operating Segments | Advanced Surface Technologies | |||
Restructuring Cost and Reserve | |||
Restructuring costs incurred | 0.1 | 0.1 | 0.1 |
Operating Segments | Engineered Materials | |||
Restructuring Cost and Reserve | |||
Restructuring costs incurred | 16.3 | 2.1 | 0.7 |
Corporate | |||
Restructuring Cost and Reserve | |||
Restructuring costs incurred | $ 0 | $ 0.7 | $ 0.1 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Tax Domestic and Foreign (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (88.3) | $ (67.3) | $ (75.3) |
Foreign | 61.5 | 71.6 | 90.4 |
Income (loss) from continuing operations before income taxes | $ (26.8) | $ 4.3 | $ 15.1 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense in Consolidated Statements of Operations from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ (15.1) | $ (1.4) | $ (4.3) |
Foreign | 26.3 | 24.9 | 22.8 |
State | (0.1) | 1.3 | (0.3) |
Current income tax expense | 11.1 | 24.8 | 18.2 |
Deferred: | |||
Federal | (5.5) | (6.4) | (5.2) |
Foreign | (8.1) | (19.5) | 1.4 |
State | (1) | (2.4) | 5.4 |
Deferred income tax expense | (14.6) | (28.3) | 1.6 |
Total | $ (3.5) | $ (3.5) | $ 19.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020USD ($)return | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)return | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income Tax | |||||||
Change in effective tax rate | 17.60% | 54.80% | 10.40% | ||||
Provisional net tax expense (benefit) | $ 2.3 | ||||||
Provisional net reduction in deferred tax liabilities | 7.3 | ||||||
Additional provisional tax benefit | 5 | ||||||
Additional tax charge | $ 5.6 | ||||||
Net operating loss carryforwards during period | $ 58.8 | $ 58.8 | |||||
Net operating loss carryforwards subject to expiration | 27.3 | 27.3 | |||||
Indefinite operating loss carryforwards | 31.5 | 31.5 | |||||
State tax net operating loss carryforwards | 5.1 | 5.1 | |||||
Deferred tax assets, valuation allowance | 6.6 | 6.6 | $ 7.9 | ||||
Foreign income tax rate differential, amount | 5.2 | ||||||
Income tax expense (benefit) | (3.5) | (3.5) | $ 19.8 | ||||
Nondeductible expense, amount | 2.7 | ||||||
Gross unrecognized tax benefits | 12.2 | $ 2.9 | 12.2 | 10.1 | 2.9 | $ 3.8 | |
Effective tax rate impact if ultimately recognized | 8.3 | 8.3 | 8.5 | ||||
Amount accrued for interest and penalties | $ 3.3 | 3.3 | 2.7 | ||||
Interest and penalties related to unrecognized tax benefits | $ 0.4 | $ 0.5 | $ 0.5 | ||||
Number of returns under examination (returns) | return | 2 | 2 | |||||
Gross unrecognized tax benefits may be decreased within the next twelve months | $ 4.6 | $ 4.6 | |||||
Gross unrecognized tax benefits may be recognized within the next twelve months | 2.5 | $ 2.5 | |||||
Income Taxes | |||||||
Income Tax | |||||||
Overstatement of tax expense | $ 4.9 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | ||
Net operating losses and tax credits | $ 20.5 | $ 34.8 |
Postretirement benefits other than pensions | 0.5 | 2.1 |
Environmental reserves | 9.5 | 8.6 |
Retained liabilities of previously owned businesses | 0.8 | 1 |
Accruals and reserves | 5.2 | 6.5 |
Operating leases | 11.1 | 10.9 |
Pension obligations | 0 | 1.9 |
Inventories | 0 | 6.2 |
Cross currency swap | 2.2 | 0 |
Interest | 11 | 17.8 |
Compensation and benefits | 7.1 | 7.3 |
Deferred Tax Assets, Other | 0.8 | 0 |
Gross deferred income tax assets | 68.7 | 97.1 |
Valuation allowance | (6.6) | (7.9) |
Total deferred income tax assets | 62.1 | 89.2 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (151.6) | (120.8) |
Operating leases | (11.1) | (10.9) |
Cross currency swap | 0 | (2.9) |
Joint ventures | 0 | (0.3) |
Deferred Tax Liabilities, Inventory | (0.4) | 0 |
Deferred Tax Liabilities Pension Obligations | (2.9) | 0 |
Total deferred income tax liabilities | (166) | (134.9) |
Net deferred income tax liabilities | $ (103.9) | $ (45.7) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Other assets (non-current) | $ 23.9 | $ 25.5 |
Deferred taxes and non-current income taxes payable | (127.8) | (71.2) |
Net deferred income tax liabilities | $ (103.9) | $ (45.7) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
U.S. taxation of foreign profits, net of foreign tax credits | (0.60%) | 3.30% | 1.10% |
Research and employment tax credits | 3.00% | (17.20%) | (7.70%) |
State and local taxes | 3.20% | (22.40%) | 25.50% |
Foreign tax rate differences | (19.40%) | 152.30% | 27.80% |
Statutory changes in tax rates | (1.20%) | 17.80% | (1.10%) |
Valuation allowance | (2.50%) | (349.20%) | (6.30%) |
Changes in uncertain tax positions | (2.00%) | (9.00%) | 9.90% |
Nondeductible expenses | (7.70%) | 57.30% | 5.70% |
GILTI and FDII | 17.60% | 54.80% | 10.40% |
Other Tax Act items | 0.00% | 0.00% | 48.20% |
Other items, net | 1.80% | 12.00% | (3.10%) |
Effective income tax rate | 13.20% | (79.30%) | 131.40% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of year | $ 10.1 | $ 2.9 | $ 3.8 |
Additions based on tax positions related to the current year | 1.9 | 1.2 | 0.2 |
Additions for tax positions of prior years | 0.2 | 7.2 | 0 |
Reductions as a result of a lapse in the statute of limitations | 0 | (1.2) | (0.1) |
Reductions as a result of audit settlements | 0 | 0 | (1) |
Balance at end of year | $ 12.2 | $ 10.1 | $ 2.9 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator (basic and diluted): | |||
Income (loss) from continuing operations attributable to EnPro Industries, Inc. | $ (23.7) | $ 7.8 | $ (4.7) |
Income from discontinued operations, net of taxes | 208.1 | 30.5 | 24.3 |
Net income | $ 184.4 | $ 38.3 | $ 19.6 |
Denominator: | |||
Weighted-average shares – basic (in shares) | 20.5 | 20.7 | 20.9 |
Share-based awards (in shares) | 0 | 0.1 | 0 |
Weighted-average shares – diluted (in shares) | 20.5 | 20.8 | 20.9 |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ (1.15) | $ 0.38 | $ (0.22) |
Discontinued operations (in dollars per share) | 10.13 | 1.48 | 1.16 |
Net income (in dollars per share) | 8.98 | 1.86 | 0.94 |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | (1.15) | 0.38 | (0.22) |
Discontinued operations (in dollars per share) | 10.13 | 1.47 | 1.16 |
Net income per share (in dollars per share) | $ 8.98 | $ 1.85 | $ 0.94 |
Antidilutive securities excluded (in shares) | 0.1 | 0.2 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 69.4 | $ 80.6 |
Work in process | 24.8 | 23.7 |
Raw materials and supplies | 48.7 | 56.1 |
Gross inventory | 142.9 | 160.4 |
Reserve to reduce certain inventories to LIFO basis | (3.8) | (3.3) |
Total inventories | $ 139.1 | $ 157.1 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | $ 460.8 | $ 496.7 |
Less accumulated depreciation | (265.8) | (277.9) |
Total | 195 | 218.8 |
Land | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 11 | 13.6 |
Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 108.9 | 123.6 |
Machinery and equipment | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | 329.4 | 341.8 |
Construction in progress | ||
Property, Plant and Equipment, Net, by Type | ||
Property, plant and equipment, gross | $ 11.5 | $ 17.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill | ||
Goodwill, beginning balance | $ 485.3 | $ 322.1 |
Foreign currency translation | 10.3 | 5.5 |
Acquisitions | 133.1 | 159 |
Dispositions | (6.9) | (1.3) |
Goodwill, ending balance | 621.8 | 485.3 |
Sealing Technologies | ||
Goodwill | ||
Goodwill, beginning balance | 300.9 | 269.9 |
Foreign currency translation | 3.4 | 1.4 |
Acquisitions | 0 | 30.9 |
Dispositions | (6.9) | (1.3) |
Goodwill, ending balance | 297.4 | 300.9 |
Advanced Surface Technologies | ||
Goodwill | ||
Goodwill, beginning balance | 167.7 | 35.6 |
Foreign currency translation | 6.9 | 4 |
Acquisitions | 133.1 | 128.1 |
Dispositions | 0 | 0 |
Goodwill, ending balance | 307.7 | 167.7 |
Engineered Materials | ||
Goodwill | ||
Goodwill, beginning balance | 16.7 | 16.6 |
Foreign currency translation | 0 | 0.1 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Goodwill, ending balance | $ 16.7 | $ 16.7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Amortization expense | $ 37.7 | $ 32.5 | $ 28.9 |
Sealing Technologies | |||
Segment Reporting Information | |||
Accumulated impairment losses | 27.8 | 27.8 | 27.8 |
Engineered Materials | |||
Segment Reporting Information | |||
Accumulated impairment losses | $ 154.8 | $ 154.8 | $ 154.8 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 767.3 | $ 660.6 |
Accumulated Amortization | 267.1 | 265.1 |
Indefinite-lived Intangible Assets | ||
Total | 820.7 | 732 |
Trademarks | ||
Indefinite-lived Intangible Assets | ||
Indefinite-Lived: | 53.4 | 71.4 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 505.5 | 470.1 |
Accumulated Amortization | 177.8 | 166.2 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 179.6 | 117.5 |
Accumulated Amortization | 41.3 | 50.8 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 44.6 | 39.4 |
Accumulated Amortization | 25.7 | 24.1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37.6 | 33.6 |
Accumulated Amortization | $ 22.3 | $ 24 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense of Intangible Assets (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2021 | $ 44.8 |
2022 | 42.6 |
2023 | 41 |
2024 | 40.2 |
2025 | $ 39.3 |
Leases - Narrative and Other In
Leases - Narrative and Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description | |||
Right-of-use assets | $ 16.6 | $ 20.8 | |
Net rent expense | $ 13.5 | ||
Building | |||
Lessee, Lease, Description | |||
Building lease, remaining term | 11 years | ||
Lease renewal term | 5 years | ||
Vehicle, Equipment, and Other Leases | |||
Lessee, Lease, Description | |||
Building lease, remaining term | 6 years | ||
Lease renewal term | 1 month | ||
Percent of operating lease assets and liabilities | 10.00% | 14.00% | |
Real Estate | |||
Lessee, Lease, Description | |||
Percent of operating lease assets and liabilities | 90.00% | 86.00% |
Leases - Lease Cost and Cash Fl
Leases - Lease Cost and Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease costs: | ||
Operating lease cost | $ 11.5 | $ 10.9 |
Short-term and variable lease costs | 0.7 | 0.9 |
Cash flows: | ||
Operating cash flows from operating leases | $ 11.5 | $ 11.1 |
Weighted average remaining lease term (in years) | 5 years 10 months 24 days | 5 years 10 months 24 days |
Weighted average discount rate | 3.40% | 3.90% |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Leases [Abstract] | |||
Right-of-use assets | $ 44.1 | $ 37.5 | $ 27 |
Current liability | 10.1 | 9.3 | |
Long-term liability | 35.3 | 28.4 | |
Total liability | $ 45.4 | $ 37.7 | $ 27 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Operating Lease, Liability, Current, Statement of Financial Position | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Operating Lease Payments | |||
2021 | $ 11.4 | ||
2022 | 9 | ||
2023 | 8.2 | ||
2024 | 6.3 | ||
2025 | 4.9 | ||
Thereafter | 10.4 | ||
Total lease payments | 50.2 | ||
Less: interest | (4.8) | ||
Present value of lease liabilities | $ 45.4 | $ 37.7 | $ 27 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 46.3 | $ 43.7 |
Interest | 4.4 | 5.1 |
Environmental | 12.6 | 25.2 |
Income taxes | 9.9 | 9.1 |
Taxes other than income | 9.4 | 13.5 |
Operating lease liability | 10.1 | 9.3 |
Other | 35.7 | 31.4 |
Total accrued expenses | $ 128.4 | $ 137.3 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Long-term debt | $ 491.3 | $ 629.3 |
Less current maturities of long-term debt | 3.8 | 4.1 |
Long-term debt, net | 487.5 | 625.2 |
Senior Notes | ||
Debt Instrument | ||
Long-term debt | 345.9 | 345.3 |
Line of Credit | Revolving debt | ||
Debt Instrument | ||
Long-term debt | 0 | 133.9 |
Term Loan | Revolving debt | ||
Debt Instrument | ||
Long-term debt | 145.4 | 149.1 |
Other notes payable | ||
Debt Instrument | ||
Long-term debt | $ 0 | $ 1 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | Sep. 25, 2019 | Oct. 17, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 |
Line of Credit Facility | |||||||
Long-term debt | $ 491,300,000 | $ 629,300,000 | |||||
Loss on extinguishment of debt | $ 18,100,000 | 0 | 0 | $ 18,100,000 | |||
Unamortized debt discount | $ 4,100,000 | ||||||
Debt issuance costs capitalized | $ 6,600,000 | 1,600,000 | $ 6,600,000 | ||||
Term Loan | |||||||
Line of Credit Facility | |||||||
Debt instrument, periodic payment, years one to three, percentage of principal | 2.50% | ||||||
Debt instrument, periodic payment, years four, percentage of principal | 5.00% | ||||||
Debt instrument, periodic payment, year five, percentage of principal | 1.25% | ||||||
Senior Notes | |||||||
Line of Credit Facility | |||||||
Long-term debt | $ 345,900,000 | 345,300,000 | |||||
Senior notes | $ 350,000,000 | ||||||
Interest rate | 5.75% | 5.875% | |||||
Aggregate principal amount redeemed | $ 450,000,000 | ||||||
Redemption price | 102.938% | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity expansion threshold | $ 225,000,000 | ||||||
Maximum borrowing capacity expansion threshold, percent | 100.00% | ||||||
Capacity available for specific purpose | 100,000,000 | ||||||
Credit facility borrowing capacity | 388,600,000 | ||||||
Letter of credit outstanding | $ 11,400,000 | ||||||
Revolving Credit Facility | LIBOR | |||||||
Line of Credit Facility | |||||||
Adjusted LIBOR rate interest spread | 1.50% | ||||||
Revolving Credit Facility | Base Rate | |||||||
Line of Credit Facility | |||||||
Adjusted LIBOR rate interest spread | 0.50% | ||||||
Revolving Credit Facility | Line of Credit | |||||||
Line of Credit Facility | |||||||
Credit facility maximum availability | 5 years | ||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.175% | ||||||
Long-term debt | $ 0 | 133,900,000 | |||||
Revolving Credit Facility | Term Loan | |||||||
Line of Credit Facility | |||||||
Credit facility maximum availability | 5 years | ||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | ||||||
Long-term debt | $ 145,400,000 | $ 149,100,000 | |||||
Before October 15, 2021 | Senior Notes | |||||||
Line of Credit Facility | |||||||
Redemption price | 100.00% |
Long-term Debt - Schedule of Fu
Long-term Debt - Schedule of Future Principal Payments on Long-Term Debt (Detail) $ in Millions | Dec. 31, 2020USD ($) |
(in millions) | |
2021 | $ 3.8 |
2022 | 4.7 |
2023 | 7.5 |
2024 | 129.4 |
2025 | 0 |
Thereafter | 350 |
Total | $ 495.4 |
Derivatives and Hedging Derivat
Derivatives and Hedging Derivatives and Hedging (Details) € in Millions | Sep. 07, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 31, 2019USD ($) | May 31, 2019EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) |
Derivative | |||||||||
Derivative iability | $ 9,500,000 | $ 600,000 | |||||||
Foreign exchange contract | |||||||||
Derivative | |||||||||
Notional amount | 3,300,000 | $ 5,200,000 | |||||||
Currency swap | |||||||||
Derivative | |||||||||
Derivative liability, notional amount | $ 100,000,000 | $ 200,000,000 | $ 200,000,000 | ||||||
Amount of hedged item | € | € 89.6 | € 172.8 | € 161.8 | ||||||
Weighted average interest rate | 3.50% | 3.50% | 2.80% | 2.80% | 3.29% | 3.29% | |||
Proceeds from settlement | $ 11,900,000 | ||||||||
Receipts from settlements of derivative contracts | 9,300,000 | ||||||||
Proceeds from interest | 2,600,000 | ||||||||
Unrealized gains | $ 7,000,000 | ||||||||
Derivative iability | $ 9,500,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Time deposits | $ 4.2 | $ 22.9 |
Foreign currency derivatives | 0 | 12.3 |
Deferred compensation assets | 8.6 | 10.9 |
Assets fair value | 12.8 | 46.1 |
Liabilities | ||
Deferred compensation liabilities | 8.9 | 11.3 |
Foreign currency derivatives | 9.5 | 0.6 |
Liabilities | $ 18.4 | $ 11.9 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Carrying Value | $ 491.3 | $ 629.3 |
Fair Value | $ 520.8 | $ 658 |
Pensions and Postretirement B_3
Pensions and Postretirement Benefits - Additional Information (Detail) - USD ($) | Jul. 03, 2018 | Jun. 26, 2018 | Jan. 01, 2007 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure | ||||||
Minimum age of salaried employees with defined pension plans, in years | 40 years | |||||
Percentage of matching contributions for eligible employees of their eligible earnings | 6.00% | |||||
Additional employer contribution for those employees whose defined pension plan benefits were frozen | 2.00% | |||||
Matching contributions under plans | $ 9,300,000 | $ 11,700,000 | $ 10,700,000 | |||
Benefit obligation settlements | $ 68,000,000 | |||||
Pension plan asset | $ 70,900,000 | |||||
Projected benefit obligation for the defined benefit pension plans with projected benefit obligations in excess of plan assets | 15,300,000 | 66,000,000 | ||||
Fair value of plan assets for the defined benefit pension plans with projected benefit obligations in excess of plan assets | 1,200,000 | 48,300,000 | ||||
Fair value of plan assets for the defined benefit pension plans with accumulated benefit obligations in excess of plan assets | 11,100,000 | 57,200,000 | ||||
Accumulated benefit obligation for the defined benefit pension plans with accumulated benefit obligations in excess of plan assets | 1,200,000 | 44,800,000 | ||||
Pension Benefits | ||||||
Defined Benefit Plan Disclosure | ||||||
Company contributions | 4,400,000 | 1,300,000 | ||||
Benefit obligation settlements | 0 | 300,000 | ||||
Pension plan asset | 0 | 300,000 | ||||
Settlements | $ 12,800,000 | 0 | 0 | $ (12,700,000) | ||
Accumulated benefit obligation for all existing plans | $ 346,500,000 | $ 317,800,000 | ||||
Discount rate | 2.625% | 3.375% | 4.375% | |||
Basis point decrease (increase) in discount rate | 0.25% | |||||
Pension expense per year | $ 800,000 | |||||
Other Benefits | ||||||
Defined Benefit Plan Disclosure | ||||||
Benefit obligation settlements | 600,000 | $ 0 | ||||
Settlements | 1,100,000 | 0 | $ 0 | |||
Accumulated benefit obligation for all existing plans | $ 3,800,000 | $ 3,900,000 | ||||
Discount rate | 2.625% | 3.375% | 4.375% | |||
United States | ||||||
Defined Benefit Plan Disclosure | ||||||
Company contributions | $ 4,000,000 | $ 0 | $ 20,000,000 | |||
Foreign Plan | ||||||
Defined Benefit Plan Disclosure | ||||||
Company anticipates future contributions | $ 500,000 |
Pensions and Postretirement B_4
Pensions and Postretirement Benefits - Schedule of Change in Projected Benefit Obligations (Detail) - USD ($) $ in Millions | Jun. 26, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Change in Projected Benefit Obligations | ||||
Settlements | $ (68) | |||
Pension Benefits | ||||
Change in Projected Benefit Obligations | ||||
Projected benefit obligations at beginning of year | $ 329.5 | $ 276.8 | ||
Service cost | 4.5 | 4.4 | $ 4.8 | |
Interest cost | 10.4 | 12.2 | 12.8 | |
Actuarial loss (gain) | 30.5 | 46.6 | ||
Settlements | 0 | (0.3) | ||
Benefits paid | (13) | (10.8) | ||
Curtailments | (5.1) | 0 | ||
Plan combination (acquisitions/divestitures) | (6.8) | |||
Plan combination (acquisitions/divestitures) | 0.9 | |||
Other | 0.7 | (0.3) | ||
Projected benefit obligations at end of year | 350.7 | 329.5 | 276.8 | |
Other Benefits | ||||
Change in Projected Benefit Obligations | ||||
Projected benefit obligations at beginning of year | 4 | 4.1 | ||
Service cost | 0 | 0.1 | 0.1 | |
Interest cost | 0.1 | 0.1 | 0.1 | |
Actuarial loss (gain) | 0.4 | (0.2) | ||
Settlements | (0.6) | 0 | ||
Benefits paid | (0.5) | (0.5) | ||
Curtailments | 0 | 0 | ||
Plan combination (acquisitions/divestitures) | 0 | 0 | ||
Other | 0.4 | 0.4 | ||
Projected benefit obligations at end of year | $ 3.8 | $ 4 | $ 4.1 |
Pensions and Postretirement B_5
Pensions and Postretirement Benefits - Schedule of Change in Plan Assets and Underfunded Status at End of Year (Detail) - USD ($) $ in Millions | Jul. 03, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | $ 353.4 | $ 313.5 | |
Settlements | $ (70.9) | ||
Fair value of plan assets at end of year | 313.5 | ||
Pension Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | 353.4 | 313.5 | |
Actual return on plan assets | 53.5 | 56.5 | |
Administrative expenses | (0.7) | (0.8) | |
Benefits paid | (13) | (10.8) | |
Settlements | 0 | (0.3) | |
Company contributions | 4.4 | 1.3 | |
Plan combination (acquisitions/divestitures) | (4.1) | 0 | |
Other | (0.2) | 0 | |
Fair value of plan assets at end of year | $ 313.5 | $ 267.6 |
Pensions and Postretirement B_6
Pensions and Postretirement Benefits - Schedule of Projected Benefit Obligations Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Long-term assets | $ 16.8 | $ 1.7 |
Current liabilities | (0.5) | (0.6) |
Current liabilities held for sale | 0 | 0 |
Long-term liabilities | (13.6) | (17.1) |
Funded Status at End of Year | 2.7 | (16) |
Other Benefits | ||
Defined Benefit Plan Disclosure | ||
Long-term assets | 0 | 0 |
Current liabilities | (0.3) | (0.2) |
Current liabilities held for sale | 0 | (0.7) |
Long-term liabilities | (3.5) | (3.1) |
Funded Status at End of Year | $ (3.8) | $ (4) |
Pensions and Postretirement B_7
Pensions and Postretirement Benefits - Schedule of Pre-Tax Charges Recognized in Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | ||
Net actuarial (gain) loss | $ 47.1 | $ 60 |
Prior service cost | 0.6 | 1.4 |
Accumulated other comprehensive income | 47.7 | 61.4 |
Other Benefits | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | ||
Net actuarial (gain) loss | 0.2 | (1) |
Prior service cost | 0 | 0 |
Accumulated other comprehensive income | $ 0.2 | $ (1) |
Pensions and Postretirement B_8
Pensions and Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | Jul. 03, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 4.5 | $ 4.4 | $ 4.8 | |
Interest cost | 10.4 | 12.2 | 12.8 | |
Expected return on plan assets | (18.9) | (15.7) | (19) | |
Amortization of prior service cost | 0.1 | 0.2 | 0.3 | |
Amortization of net loss | 5.2 | 6.6 | 5.1 | |
Settlements | $ (12.8) | 0 | 0 | 12.7 |
Curtailments | 0.3 | 0 | 0 | |
Net periodic benefit cost | 1.6 | 7.7 | 16.7 | |
Other Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 0 | 0.1 | 0.1 | |
Interest cost | 0.1 | 0.1 | 0.1 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of prior service cost | 0 | 0.2 | 0.1 | |
Amortization of net loss | 0.2 | 0 | 0 | |
Settlements | (1.1) | 0 | 0 | |
Curtailments | 0 | 0 | 0 | |
Net periodic benefit cost | $ (0.8) | $ 0.4 | $ 0.3 |
Pensions and Postretirement B_9
Pensions and Postretirement Benefits - Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | |||
Net loss (gain) | $ (7.8) | $ 6.2 | $ 12.7 |
Settlements | 0.8 | 0 | (12.7) |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Net loss (gain) | (7.8) | 5.8 | 13.3 |
Prior service cost | (0.3) | 0.5 | 0 |
Amortization of net loss | (5.2) | (6.6) | (5.1) |
Amortization of prior service cost | (0.1) | (0.2) | (0.3) |
Settlements | 0 | 0 | (12.7) |
Curtailments | (0.3) | 0 | 0 |
Total recognized in other comprehensive income | (13.7) | (0.5) | (4.8) |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | (12.1) | 7.2 | 11.9 |
Pension and other postretirement plan service cost | 1.6 | 7.7 | 16.7 |
Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Net loss (gain) | 0.3 | (0.1) | (0.6) |
Prior service cost | 0 | 0 | 0 |
Amortization of net loss | (0.2) | 0 | 0 |
Amortization of prior service cost | 0 | (0.2) | (0.1) |
Settlements | 1.1 | 0 | 0 |
Curtailments | 0 | 0 | 0 |
Total recognized in other comprehensive income | 1.2 | (0.3) | (0.7) |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 0.4 | 0.1 | (0.4) |
Pension and other postretirement plan service cost | $ (0.8) | 0.4 | 0.3 |
Power Systems | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Pension and other postretirement plan service cost | $ 0.8 | $ 0.9 |
Pensions and Postretirement _10
Pensions and Postretirement Benefits - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 | |||
Discount rate | 2.625% | 3.375% | 4.375% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 | |||
Discount rate | 3.375% | 4.375% | 4.00% |
Expected long-term return on plan assets | 6.00% | 6.00% | 6.00% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Other Benefits | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 | |||
Discount rate | 2.625% | 3.375% | 4.375% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 | |||
Discount rate | 3.375% | 4.375% | 3.75% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Pensions and Postretirement _11
Pensions and Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Health care cost trend rate assumed for next year | 7.50% | 8.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2027 | 2027 |
Pensions and Postretirement _12
Pensions and Postretirement Benefits - Schedule of Asset Allocation for Pension Plans and Target Allocation by Asset Category (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure | ||
Target Allocation | 100.00% | |
Plan Assets | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure | ||
Target Allocation | 30.00% | |
Plan Assets | 33.00% | 29.00% |
Fixed income | ||
Defined Benefit Plan Disclosure | ||
Target Allocation | 70.00% | |
Plan Assets | 67.00% | 71.00% |
Pensions and Postretirement _13
Pensions and Postretirement Benefits - Schedule of Fair Value of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure | ||
Defined benefit plan investment | $ 353.4 | $ 313.5 |
Mutual funds – U.S. equity | ||
Defined Benefit Plan Disclosure | ||
Defined benefit plan investment | 68.3 | 55.7 |
Mutual funds – international equity | ||
Defined Benefit Plan Disclosure | ||
Defined benefit plan investment | 46.9 | 35.9 |
Mutual funds - fixed income treasury and money market | ||
Defined Benefit Plan Disclosure | ||
Defined benefit plan investment | 237 | 221.1 |
Cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Defined benefit plan investment | $ 1.2 | $ 0.8 |
Pensions and Postretirement _14
Pensions and Postretirement Benefits - Schedule of Benefit Payments Reflecting Expected Future Service as Appropriate Expected to be Paid (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure | |
2021 | $ 13.6 |
2022 | 14.4 |
2023 | 15.6 |
2024 | 17 |
2025 | 18.3 |
Years 2025 – 2029 | 96.4 |
Other Benefits | |
Defined Benefit Plan Disclosure | |
2021 | 0.3 |
2022 | 1.9 |
2023 | 0.2 |
2024 | 0.2 |
2025 | 0.2 |
Years 2025 – 2029 | $ 0.7 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions | Mar. 17, 2021 | Feb. 28, 2021 | Oct. 31, 2020 | Oct. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2017 |
Share Repurchases | ||||||||
Dividends paid | $ 21,700,000 | $ 20,900,000 | $ 20,300,000 | |||||
Cash dividends per share (in dollars per share) | $ 1.04 | $ 1 | $ 0.96 | |||||
Stock repurchase program, period in force | 2 years | 2 years | ||||||
Authorized amount (up to) | $ 50,000,000 | $ 50,000,000 | ||||||
Shares repurchases (in shares) | 0.3 | 0.1 | 0.2 | 0.7 | ||||
Repurchase of common stock | $ 20,300,000 | $ 5,300,000 | $ 15,000,000 | $ 50,000,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 50,000,000 | |||||||
Subsequent Event | ||||||||
Share Repurchases | ||||||||
Cash dividend declared (in dollars per share) | $ 0.27 | |||||||
Forecast | ||||||||
Share Repurchases | ||||||||
Cash dividends per share (in dollars per share) | $ 0.27 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Components (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income | |||
Beginning balance | $ 886.9 | ||
Other comprehensive income (loss) before reclassifications | 27.5 | $ 15.3 | $ (10.9) |
Amounts reclassified from accumulated other comprehensive loss | 7 | 5.3 | 13.8 |
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | 34.5 | 20.6 | 2.9 |
Less: other comprehensive income attributable to non-controlling interests | 3 | 0 | 0 |
Other comprehensive income, net of tax attributable to EnPro Industries, Inc | 31.5 | 20.6 | 2.9 |
Ending balance | 1,078.5 | 886.9 | |
Total | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | (36.4) | (45.5) | (48.4) |
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | 31.5 | 20.6 | 2.9 |
Ending balance | (4.9) | (36.4) | (45.5) |
Total | Adjustment | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | (11.5) | ||
Ending balance | (11.5) | ||
Total | Adjusted balance | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | (57) | ||
Ending balance | (57) | ||
Unrealized Translation Adjustments | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | 9.8 | (10.6) | (6.8) |
Other comprehensive income (loss) before reclassifications | 21.5 | 20.4 | (3.8) |
Amounts reclassified from accumulated other comprehensive loss | 3.4 | 0 | 0 |
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | 24.9 | ||
Less: other comprehensive income attributable to non-controlling interests | 3 | ||
Other comprehensive income, net of tax attributable to EnPro Industries, Inc | 21.9 | 20.4 | (3.8) |
Ending balance | 31.7 | 9.8 | (10.6) |
Unrealized Translation Adjustments | Adjustment | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Unrealized Translation Adjustments | Adjusted balance | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | (10.6) | ||
Ending balance | (10.6) | ||
Pension and Other Postretirement Plans | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | (46.2) | (34.9) | (41.6) |
Other comprehensive income (loss) before reclassifications | 6 | (5.1) | (7.1) |
Amounts reclassified from accumulated other comprehensive loss | 3.6 | 5.3 | 13.8 |
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | 9.6 | ||
Less: other comprehensive income attributable to non-controlling interests | 0 | ||
Other comprehensive income, net of tax attributable to EnPro Industries, Inc | 9.6 | 0.2 | 6.7 |
Ending balance | $ (36.6) | (46.2) | (34.9) |
Pension and Other Postretirement Plans | Adjustment | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | (11.5) | ||
Ending balance | (11.5) | ||
Pension and Other Postretirement Plans | Adjusted balance | |||
Accumulated Other Comprehensive Income | |||
Beginning balance | $ (46.4) | ||
Ending balance | $ (46.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||
Other expense, net | $ (37.8) | $ (34.1) | $ (43.4) |
Income from continuing operations before income taxes | (26.8) | 4.3 | 15.1 |
Income tax expense | 3.5 | 3.5 | (19.8) |
Release of unrealized currency translation adjustment upon sale of investment in foreign entity, net of tax | 3.4 | 0 | 0 |
Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||
Income from continuing operations before income taxes | 4.7 | 7 | 18.2 |
Income tax expense | (1.1) | (1.7) | (4.4) |
Net income attributable to EnPro Industries, Inc | 3.6 | 5.3 | 13.8 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Amortization of actuarial losses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||
Other expense, net | 5.4 | 6.6 | 5.1 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Amortization of prior service costs | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||
Other expense, net | 0.1 | 0.4 | 0.4 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Curtailments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||
Other expense, net | 0.3 | 0 | 0 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Settlements | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||
Other expense, net | $ (1.1) | $ 0 | $ 12.7 |
Equity Compensation Plan - Addi
Equity Compensation Plan - Additional Information (Detail) - USD ($) shares in Millions | Aug. 27, 2020 | Feb. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares available for future awards (in shares) | 1 | ||||
Acquisition and divestiture expenses | $ 2,900,000 | $ 500,000 | $ 0 | ||
Restricted Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Award vesting period | 3 years | ||||
Unrecognized compensation cost | $ 6,200,000 | ||||
Unrecognized compensation cost expected to be recognized over a weighted average remaining amortization period, years | 1 year 8 months 12 days | ||||
Performance Shares - Equity | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Unrecognized compensation cost | $ 1,200,000 | ||||
Unrecognized compensation cost expected to be recognized over a weighted average remaining amortization period, years | 1 year | ||||
Unrecognized compensation cash | $ 3,300,000 | ||||
Unrecognized compensation cash expected to be recognized over a weighted average period, years | 2 years | ||||
Award performance period | 3 years | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Unrecognized compensation cost | $ 2,100,000 | ||||
Expiration period | 10 years | ||||
Percentage of fair market value on the date of grant | 100.00% | ||||
Average expected term | 6 years | 6 years | 6 years | 7 years | |
Employee Stock Option | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Award vesting period | 3 years | ||||
Employee Stock Option | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Award vesting period | 4 years | ||||
Employee Stock Option | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Award vesting period | 5 years | ||||
Non-Employee Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Cash payments to settle phantom shares | $ 0 | $ 0 | 700,000 | ||
Non-Employee Director | Phantom Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Value of award received | 110,000 | 110,000 | 95,000 | ||
Acquisition and divestiture expenses | $ 900,000 | $ 900,000 | $ 700,000 |
Equity Compensation Plan - Issu
Equity Compensation Plan - Issued Performance Share Awards to Eligible Participants (Details) | Feb. 18, 2020 | Feb. 11, 2019 | Feb. 12, 2018 |
Shares granted February 11, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected stock price volatility | 34.36% | ||
Risk free interest rate | 2.53% | ||
Shares granted February 18, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected stock price volatility | 34.90% | ||
Risk free interest rate | 1.37% | ||
Shares granted February 12, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected stock price volatility | 34.90% | ||
Risk free interest rate | 1.92% | ||
Performance Shares | Shares granted February 11, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected stock price volatility | 30.72% | ||
Annual expected dividend yield | 1.40% | ||
Risk free interest rate | 2.53% | ||
Performance Shares | Shares granted February 18, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected stock price volatility | 31.62% | ||
Annual expected dividend yield | 1.69% | ||
Risk free interest rate | 1.37% | ||
Performance Shares | Shares granted February 12, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected stock price volatility | 32.41% | ||
Annual expected dividend yield | 1.15% | ||
Risk free interest rate | 1.92% |
Equity Compensation Plan - Summ
Equity Compensation Plan - Summary of Restricted Share Units Activity, Performance Share Activity and Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Share Units | |||
Shares | |||
Nonvested shares, Beginning Balance | 199,424 | 218,930 | 235,557 |
Granted, Shares | 97,144 | 78,576 | 73,817 |
Vested, Shares | (53,163) | (78,958) | (58,188) |
Forfeited, Shares | (34,890) | (6,830) | (19,853) |
Shares settled for cash, shares | (8,136) | (12,294) | (12,403) |
Nonvested Shares, Ending Balance | 200,379 | 199,424 | 218,930 |
Weighted- Average Grant Date Fair Value | |||
Nonvested, Beginning Balance (in dollars per share) | $ 72.72 | $ 57.87 | $ 57.87 |
Granted (in dollars per share) | 59.27 | 68.48 | 82.03 |
Vested (in dollars per share) | 68.42 | 44.44 | 63.64 |
Forfeited (in dollars per share) | 71.14 | 72.99 | 65.17 |
Shares settled for cash (in dollars per share) | 68.35 | 43.85 | 64.19 |
Nonvested, Ending Balance (in dollars per share) | $ 67.83 | $ 72.72 | $ 57.87 |
Performance Shares - Equity | |||
Shares | |||
Nonvested shares, Beginning Balance | 252,660 | 199,655 | 270,599 |
Granted, Shares | 0 | 116,342 | 77,076 |
Vested, Shares | 0 | (75,312) | (51,207) |
Forfeited, Shares | (33,218) | (12,130) | (25,142) |
Achievement level adjustment, shares | (132,846) | 24,105 | (71,671) |
Nonvested Shares, Ending Balance | 86,596 | 252,660 | 199,655 |
Weighted- Average Grant Date Fair Value | |||
Nonvested, Beginning Balance (in dollars per share) | $ 81.46 | $ 75.87 | $ 61.92 |
Granted (in dollars per share) | 0 | 77.15 | 93.61 |
Vested (in dollars per share) | 0 | 49.68 | 63.81 |
Forfeited (in dollars per share) | 81.91 | 82.26 | 65.14 |
Achievement level adjustment (in dollars per share) | 93.61 | 49.68 | 63.81 |
Nonvested, Ending Balance (in dollars per share) | $ 77.15 | $ 81.46 | $ 75.87 |
Performance Shares - Liability | |||
Shares | |||
Nonvested shares, Beginning Balance | 0 | ||
Granted, Shares | 95,924 | ||
Vested, Shares | 0 | ||
Forfeited, Shares | (2,336) | ||
Nonvested Shares, Ending Balance | 93,588 | 0 | |
Weighted- Average Grant Date Fair Value | |||
Nonvested, Beginning Balance (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 105.91 | ||
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 105.91 | ||
Nonvested, Ending Balance (in dollars per share) | $ 105.91 | $ 0 |
Equity Compensation Plan - Sche
Equity Compensation Plan - Schedule of Information With Respect to Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Option, Exercise Price Range | ||
Share Options Outstanding (in shares) | 202,804 | 59,124 |
Stock Options Exercisable (in shares) | 18,187 | |
Weighted Average Exercise Price (in dollars per share) | $ 55.67 | |
Weighted Average Remaining Contractual Life | 8 years 3 months 7 days | |
Under $50.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range | ||
Upper range limit (exercise price) | $ 50 | |
Share Options Outstanding (in shares) | 18,187 | |
Stock Options Exercisable (in shares) | 18,187 | |
Weighted Average Exercise Price (in dollars per share) | $ 42.24 | |
Weighted Average Remaining Contractual Life | 1 month 9 days | |
Over $50.00 and under $60.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range | ||
Lower range limit (exercise price) | $ 50 | |
Upper range limit (exercise price) | $ 60 | |
Share Options Outstanding (in shares) | 143,680 | |
Stock Options Exercisable (in shares) | 0 | |
Weighted Average Exercise Price (in dollars per share) | $ 54.34 | |
Weighted Average Remaining Contractual Life | 9 years 2 months 15 days | |
Over $60.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range | ||
Lower range limit (exercise price) | $ 60 | |
Share Options Outstanding (in shares) | 40,937 | |
Stock Options Exercisable (in shares) | 0 | |
Weighted Average Exercise Price (in dollars per share) | $ 66.31 | |
Weighted Average Remaining Contractual Life | 8 years 6 months 25 days |
Equity Compensation Plan - Esti
Equity Compensation Plan - Estimated Fair Value of The Option Award (Details) - $ / shares | Aug. 27, 2020 | Feb. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Grant date (in dollars per share) | $ 18.67 | $ 13.64 | $ 18.87 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Average expected term | 6 years | 6 years | 6 years | 7 years |
Expected volatility | 39.51% | 31.53% | 29.68% | |
Risk-free interest rate | 0.42% | 1.17% | 1.95% | |
Expected dividend yield | 1.74% | 1.93% | 1.51% |
Equity Compensation Plan - Su_2
Equity Compensation Plan - Summary of Option Activity Under Plan (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Options Outstanding | |
Beginning balance (in shares) | shares | 59,124 |
Granted (in shares) | shares | 143,680 |
Ending balance (in shares) | shares | 202,804 |
Weighted Average Exercise Price | |
Beginning Balance (in dollars per share) | $ / shares | $ 58.91 |
Granted (in dollars per share) | $ / shares | 54.34 |
Ending Balance (in dollars per share) | $ / shares | $ 55.67 |
Equity Compensation Plan - Sc_2
Equity Compensation Plan - Schedule of Intrinsic Value Related to Stock Options (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Payment Arrangement [Abstract] | |||
Options outstanding | $ 4 | $ 0.5 | $ 0.3 |
Options exercisable | $ 0.6 | $ 0.4 | $ 0.3 |
Equity Compensation Plan - Sc_3
Equity Compensation Plan - Schedule of Equity Based Compensation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Compensation expense | $ 5.4 | $ 6.8 | $ 6.5 |
Related income tax benefit | $ 1.4 | $ 2.2 | $ 1.9 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Schedule Of Assets By Segment | |||
Number of operating segments | segment | 3 | ||
Total third-party sales | $ 1,074 | $ 1,205.7 | $ 1,274.1 |
Customer One | |||
Schedule Of Assets By Segment | |||
Total third-party sales | $ 132.2 |
Business Segment Information _2
Business Segment Information - Schedule of Segment Operating Results and Other Financial Data (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | ||||
Total third-party sales | $ 1,074 | $ 1,205.7 | $ 1,274.1 | |
Adjusted Segment EBITDA | 210.6 | 208.6 | 215.4 | |
Acquisition and divestiture expenses | (9.6) | (8.4) | (1.9) | |
Non-controlling interest compensation allocation | (2.9) | (0.5) | 0 | |
Amortization of fair value adjustment to acquisition date inventory | (3) | 0 | 0 | |
Restructuring and impairment expense | $ (3.5) | (30.6) | (8.7) | (22.1) |
Depreciation and amortization expense | (70.7) | (67.9) | (66.1) | |
Operating income | 25.9 | 56.6 | 85.8 | |
Interest expense, net | (14.9) | (18.2) | (27.3) | |
Other expense, net | (37.8) | (34.1) | (43.4) | |
Income (loss) from continuing operations before income taxes | (26.8) | 4.3 | 15.1 | |
Sealing Technologies | ||||
Segment Reporting Information | ||||
Total third-party sales | 628.9 | 755.4 | 806.3 | |
Advanced Surface Technologies | ||||
Segment Reporting Information | ||||
Total third-party sales | 171.1 | 120.2 | 114 | |
Engineered Materials | ||||
Segment Reporting Information | ||||
Total third-party sales | 274 | 330.1 | 353.8 | |
Operating Segments | ||||
Segment Reporting Information | ||||
Total third-party sales | 1,082.9 | 1,213.9 | 1,282.1 | |
Operating income | 93.8 | 123.1 | 125.3 | |
Operating Segments | Sealing Technologies | ||||
Segment Reporting Information | ||||
Total third-party sales | 636.7 | 762.4 | 813.1 | |
Adjusted Segment EBITDA | 131 | 131.4 | 137.4 | |
Operating Segments | Advanced Surface Technologies | ||||
Segment Reporting Information | ||||
Total third-party sales | 171.2 | 120.2 | 114 | |
Adjusted Segment EBITDA | 47.1 | 23.5 | 17.6 | |
Operating Segments | Engineered Materials | ||||
Segment Reporting Information | ||||
Total third-party sales | 275 | 331.3 | 355 | |
Adjusted Segment EBITDA | 32.5 | 53.7 | 60.4 | |
Intersegment sales | ||||
Segment Reporting Information | ||||
Total third-party sales | (8.9) | (8.2) | (8) | |
Corporate | ||||
Segment Reporting Information | ||||
Corporate expenses | (37.9) | (36.4) | (34.9) | |
Segment Reconciling Items | ||||
Segment Reporting Information | ||||
Other expense, net | $ (67.8) | $ (64.2) | $ (48) |
Business Segment Information _3
Business Segment Information - Schedule of Net Sales by Geographical Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Total third-party sales | $ 1,074 | $ 1,205.7 | $ 1,274.1 |
United States | |||
Segment Reporting Information | |||
Total third-party sales | 555.7 | 630.2 | 736.2 |
Europe | |||
Segment Reporting Information | |||
Total third-party sales | 244.2 | 301.2 | 278.6 |
Other foreign | |||
Segment Reporting Information | |||
Total third-party sales | $ 274.1 | $ 274.3 | $ 259.3 |
Business Segment Information _4
Business Segment Information - Third Party Sales by Major End Market (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue | |||
Total third-party sales | $ 1,074 | $ 1,205.7 | $ 1,274.1 |
Aerospace | |||
Disaggregation of Revenue | |||
Total third-party sales | 48.9 | 69.4 | 62.5 |
Automotive | |||
Disaggregation of Revenue | |||
Total third-party sales | 68.5 | 88.5 | 102.6 |
Chemical and material processing | |||
Disaggregation of Revenue | |||
Total third-party sales | 96.9 | 96.3 | 104 |
Food and pharmaceutical | |||
Disaggregation of Revenue | |||
Total third-party sales | 53.9 | 39.7 | 38.1 |
General industrial | |||
Disaggregation of Revenue | |||
Total third-party sales | 235.9 | 264.8 | 273.5 |
Medium-duty/heavy-duty truck | |||
Disaggregation of Revenue | |||
Total third-party sales | 241.8 | 342.1 | 388.4 |
Oil and gas | |||
Disaggregation of Revenue | |||
Total third-party sales | 86.7 | 113.1 | 100.7 |
Power generation | |||
Disaggregation of Revenue | |||
Total third-party sales | 63.7 | 57.2 | 69 |
Semiconductors | |||
Disaggregation of Revenue | |||
Total third-party sales | 171.7 | 115.7 | 113.7 |
Other | |||
Disaggregation of Revenue | |||
Total third-party sales | 6 | 18.9 | 21.6 |
Sealing Technologies | |||
Disaggregation of Revenue | |||
Total third-party sales | 628.9 | 755.4 | 806.3 |
Sealing Technologies | Aerospace | |||
Disaggregation of Revenue | |||
Total third-party sales | 35.5 | 46.9 | 45.4 |
Sealing Technologies | Automotive | |||
Disaggregation of Revenue | |||
Total third-party sales | 2.1 | 7 | 5.3 |
Sealing Technologies | Chemical and material processing | |||
Disaggregation of Revenue | |||
Total third-party sales | 53 | 48 | 54.5 |
Sealing Technologies | Food and pharmaceutical | |||
Disaggregation of Revenue | |||
Total third-party sales | 52.3 | 38.8 | 37.1 |
Sealing Technologies | General industrial | |||
Disaggregation of Revenue | |||
Total third-party sales | 160.7 | 174.9 | 173.4 |
Sealing Technologies | Medium-duty/heavy-duty truck | |||
Disaggregation of Revenue | |||
Total third-party sales | 241.7 | 340.9 | 387.3 |
Sealing Technologies | Oil and gas | |||
Disaggregation of Revenue | |||
Total third-party sales | 20.5 | 25.2 | 19.7 |
Sealing Technologies | Power generation | |||
Disaggregation of Revenue | |||
Total third-party sales | 43.6 | 47.7 | 57.8 |
Sealing Technologies | Semiconductors | |||
Disaggregation of Revenue | |||
Total third-party sales | 14.6 | 12.2 | 12.8 |
Sealing Technologies | Other | |||
Disaggregation of Revenue | |||
Total third-party sales | 4.9 | 13.8 | 13 |
Advanced Surface Technologies | |||
Disaggregation of Revenue | |||
Total third-party sales | 171.1 | 120.2 | 114 |
Advanced Surface Technologies | Aerospace | |||
Disaggregation of Revenue | |||
Total third-party sales | 8 | 10.5 | 8.7 |
Advanced Surface Technologies | Automotive | |||
Disaggregation of Revenue | |||
Total third-party sales | 0.1 | 0 | 0 |
Advanced Surface Technologies | Chemical and material processing | |||
Disaggregation of Revenue | |||
Total third-party sales | 0 | 0 | 0 |
Advanced Surface Technologies | Food and pharmaceutical | |||
Disaggregation of Revenue | |||
Total third-party sales | 0 | 0 | 0 |
Advanced Surface Technologies | General industrial | |||
Disaggregation of Revenue | |||
Total third-party sales | 2.9 | 1.3 | 0.8 |
Advanced Surface Technologies | Medium-duty/heavy-duty truck | |||
Disaggregation of Revenue | |||
Total third-party sales | 0 | 0 | 0 |
Advanced Surface Technologies | Oil and gas | |||
Disaggregation of Revenue | |||
Total third-party sales | 2.1 | 4.8 | 3.6 |
Advanced Surface Technologies | Power generation | |||
Disaggregation of Revenue | |||
Total third-party sales | 0 | 0 | 0 |
Advanced Surface Technologies | Semiconductors | |||
Disaggregation of Revenue | |||
Total third-party sales | 157.1 | 103.5 | 100.9 |
Advanced Surface Technologies | Other | |||
Disaggregation of Revenue | |||
Total third-party sales | 0.9 | 0.1 | 0 |
Engineered Materials | |||
Disaggregation of Revenue | |||
Total third-party sales | 274 | 330.1 | 353.8 |
Engineered Materials | Aerospace | |||
Disaggregation of Revenue | |||
Total third-party sales | 5.4 | 12 | 8.4 |
Engineered Materials | Automotive | |||
Disaggregation of Revenue | |||
Total third-party sales | 66.3 | 81.5 | 97.3 |
Engineered Materials | Chemical and material processing | |||
Disaggregation of Revenue | |||
Total third-party sales | 43.9 | 48.3 | 49.5 |
Engineered Materials | Food and pharmaceutical | |||
Disaggregation of Revenue | |||
Total third-party sales | 1.6 | 0.9 | 1 |
Engineered Materials | General industrial | |||
Disaggregation of Revenue | |||
Total third-party sales | 72.3 | 88.6 | 99.3 |
Engineered Materials | Medium-duty/heavy-duty truck | |||
Disaggregation of Revenue | |||
Total third-party sales | 0.1 | 1.2 | 1.1 |
Engineered Materials | Oil and gas | |||
Disaggregation of Revenue | |||
Total third-party sales | 64.1 | 83.1 | 77.4 |
Engineered Materials | Power generation | |||
Disaggregation of Revenue | |||
Total third-party sales | 20.1 | 9.5 | 11.2 |
Engineered Materials | Semiconductors | |||
Disaggregation of Revenue | |||
Total third-party sales | 0 | 0 | 0 |
Engineered Materials | Other | |||
Disaggregation of Revenue | |||
Total third-party sales | $ 0.2 | $ 5 | $ 8.6 |
Business Segment Information _5
Business Segment Information - Schedule of Segment Related Capital Expenditure, Depreciation and Amortization on those Expenditures (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets | |||
Capital Expenditures | $ 18.3 | $ 21.6 | $ 36.1 |
Depreciation and amortization expense | 70.8 | 67.9 | 66.1 |
Operating Segments | Sealing Technologies | |||
Revenues from External Customers and Long-Lived Assets | |||
Capital Expenditures | 8 | 12.7 | 22.6 |
Depreciation and amortization expense | 36.5 | 45 | 46.4 |
Operating Segments | Advanced Surface Technologies | |||
Revenues from External Customers and Long-Lived Assets | |||
Capital Expenditures | 5.3 | 1.5 | 2.6 |
Depreciation and amortization expense | 20 | 7 | 3.1 |
Operating Segments | Engineered Materials | |||
Revenues from External Customers and Long-Lived Assets | |||
Capital Expenditures | 4.9 | 7.4 | 10.9 |
Depreciation and amortization expense | 14.2 | 15.9 | 16.6 |
Corporate | |||
Revenues from External Customers and Long-Lived Assets | |||
Capital Expenditures | 0.1 | 0 | 0 |
Depreciation and amortization expense | $ 0.1 | $ 0 | $ 0 |
Business Segment Information _6
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets | ||
Assets | $ 2,083.6 | $ 2,035.1 |
Long-Lived Assets | 195 | 218.8 |
United States | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 115.9 | 130.1 |
France | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 21 | 24.2 |
Other Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 20.3 | 20.7 |
Other foreign | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 37.8 | 43.8 |
Operating Segments | Continuing Operations | Sealing Technologies | ||
Revenues from External Customers and Long-Lived Assets | ||
Assets | 741.9 | 882.2 |
Operating Segments | Continuing Operations | Advanced Surface Technologies | ||
Revenues from External Customers and Long-Lived Assets | ||
Assets | 768.2 | 434.3 |
Operating Segments | Continuing Operations | Engineered Materials | ||
Revenues from External Customers and Long-Lived Assets | ||
Assets | 245.8 | 259.4 |
Operating Segments | Discontinued operations | ||
Revenues from External Customers and Long-Lived Assets | ||
Assets | 0 | 254.1 |
Corporate | Continuing Operations | ||
Revenues from External Customers and Long-Lived Assets | ||
Assets | $ 327.7 | $ 205.1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Oct. 31, 2016USD ($) | Mar. 03, 2016USD ($) | Apr. 11, 2014USD ($) | Sep. 30, 2017USD ($) | May 31, 2007site | Dec. 31, 2020USD ($)sitemi | Jun. 30, 2018location | Dec. 31, 2020USD ($)sitemi | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)sitemi | Sep. 30, 2020USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2014USD ($)mi | Feb. 19, 2014mine |
Site Contingency | |||||||||||||||
Number of sites subject to remediation | site | 20 | 20 | 20 | ||||||||||||
Number of sites subject to remediation activities, cost in excess of 100K | site | 14 | 14 | 14 | ||||||||||||
Cost per site minimis threshold | $ 100,000 | ||||||||||||||
Number of sites subject to remediation activities, discontinued operations | site | 18 | 18 | 18 | ||||||||||||
Number of sites subject to remediation activities, active operations | site | 2 | 2 | 2 | ||||||||||||
Number of sites, investigation completed | site | 16 | 16 | 16 | ||||||||||||
Number of sites investigation in progress | site | 3 | 3 | 3 | ||||||||||||
Environmental | $ 42,200,000 | $ 42,200,000 | $ 36,000,000 | $ 42,200,000 | |||||||||||
Environmental remediation expense | 38,200,000 | $ 14,500,000 | $ 13,400,000 | ||||||||||||
Number of potentially responsible parties | 70 | 120 | |||||||||||||
Estimate of cost | $ 726,000,000 | ||||||||||||||
Estimate low end | $ 165,000,000 | ||||||||||||||
Estimated design development time | 4 years | ||||||||||||||
Insurance recoveries | 22,000,000 | ||||||||||||||
Loss contingency, estimated insurance recoveries | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||
Estimated insurance recoveries | 3,000,000 | 3,000,000 | 3,000,000 | ||||||||||||
Lower Passaic River Study Area | |||||||||||||||
Site Contingency | |||||||||||||||
Environmental | $ 1,000,000 | 1,000,000 | $ 1,000,000 | $ 3,500,000 | |||||||||||
Change in reserve accrual | $ (1,600,000) | ||||||||||||||
Portion of site subject to remediation | mi | 8 | ||||||||||||||
Minimum | |||||||||||||||
Site Contingency | |||||||||||||||
Estimate of loss exposure in excess of accrual | $ 35,000 | ||||||||||||||
Minimum | Lower Passaic River Study Area | |||||||||||||||
Site Contingency | |||||||||||||||
Portion of site subject to remediation | mi | 8 | 8 | 8 | ||||||||||||
Estimate of loss exposure in excess of accrual | $ 1,380,000,000 | $ 953,000,000 | |||||||||||||
Maximum | |||||||||||||||
Site Contingency | |||||||||||||||
Estimate of loss exposure in excess of accrual | $ 950,000 | ||||||||||||||
Maximum | Lower Passaic River Study Area | |||||||||||||||
Site Contingency | |||||||||||||||
Portion of site subject to remediation | mi | 9 | 9 | 9 | ||||||||||||
Estimate of loss exposure in excess of accrual | $ 1,730,000,000 | ||||||||||||||
Water Valley | |||||||||||||||
Site Contingency | |||||||||||||||
Environmental | $ 15,600,000 | $ 15,600,000 | $ 15,600,000 | ||||||||||||
Provision for new losses | 12,500,000 | ||||||||||||||
Change in reserve accrual | 26,500,000 | ||||||||||||||
Payments | 20,100,000 | ||||||||||||||
Arizona | |||||||||||||||
Site Contingency | |||||||||||||||
Environmental | 13,900,000 | 13,900,000 | 13,900,000 | ||||||||||||
Provision for new losses | 12,900,000 | ||||||||||||||
Accrual component amount | $ 1,000,000 | ||||||||||||||
Investigate sites notice from EPA | mine | 8 | ||||||||||||||
Expected contributions from third party | 3,800,000 | 3,800,000 | 3,800,000 | ||||||||||||
Pine Bluff | |||||||||||||||
Site Contingency | |||||||||||||||
Environmental | 2,800,000 | 2,800,000 | 2,800,000 | ||||||||||||
Provision for new losses | 2,800,000 | ||||||||||||||
Payments | 900,000 | ||||||||||||||
OldCo | |||||||||||||||
Site Contingency | |||||||||||||||
Estimated insurance recoveries | 25,000,000 | 25,000,000 | 25,000,000 | ||||||||||||
Environmental Remediation | Lower Passaic River Study Area | |||||||||||||||
Site Contingency | |||||||||||||||
Loss in period | 900,000 | ||||||||||||||
Asbestos Issue | |||||||||||||||
Site Contingency | |||||||||||||||
Insurance coverage amount | 4,200,000 | 4,200,000 | 4,200,000 | ||||||||||||
Estimated insurance recoveries, current year | 800,000 | 800,000 | 800,000 | ||||||||||||
Asbestos Issue | GST | |||||||||||||||
Site Contingency | |||||||||||||||
Amount recovered | $ 8,800,000 | $ 8,800,000 | $ 8,800,000 | ||||||||||||
Affiliated Entity | Crucible Steel Corporation | |||||||||||||||
Site Contingency | |||||||||||||||
Portion of site subject to remediation | mi | 17 | 17 | 17 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Changes in Carrying Amount of Product Warranty Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard Product Warranty Accrual | |||
Balance at beginning of year | $ 10.1 | $ 9.4 | $ 2.7 |
Charges to expense | 1.4 | 5.8 | 10.1 |
Settlements made | (4.8) | (5.1) | (3.4) |
Balance at end of year | $ 6.7 | $ 10.1 | $ 9.4 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves | |||
Balance, Beginning of Year | $ 3.7 | $ 3.3 | $ 4.2 |
Charge (credit) to Expense | 1.7 | 0.8 | (0.6) |
Write-off of Receivables and Divestitures | (1.4) | (0.1) | (0.4) |
Other | 0.1 | (0.3) | 0.1 |
Balance, End of Year | 4.1 | 3.7 | 3.3 |
Deferred Income Tax Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves | |||
Balance, Beginning of Year | 7.9 | 23.9 | 25.7 |
Charge (credit) to Expense | 0.8 | (15.3) | (1.4) |
Write-off of Receivables and Divestitures | (2.3) | 0 | 0 |
Other | 0.2 | (0.7) | (0.4) |
Balance, End of Year | $ 6.6 | $ 7.9 | $ 23.9 |