Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 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, $0.01 par value | |
Trading Symbol(s) | NPO | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,878,123 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001164863 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 282.6 | $ 270.1 |
Cost of sales | 166.5 | 175.4 |
Gross profit | 116.1 | 94.7 |
Operating expenses: | ||
Selling, general and administrative | 71.5 | 71.7 |
Other | 0.8 | 1.3 |
Total operating expenses | 72.3 | 73 |
Operating income | 43.8 | 21.7 |
Interest expense | (11.7) | (7.1) |
Interest income | 3.8 | 0.2 |
Other income (expense) | (1.8) | 0.6 |
Income from continuing operations before income taxes | 34.1 | 15.4 |
Income tax expense | (8.1) | (3.2) |
Income from continuing operations | 26 | 12.2 |
Income from discontinued operations, including gain on sale, net of tax | 11.4 | 4.9 |
Net income | 37.4 | 17.1 |
Less: net income attributable to redeemable non-controlling interests | 0 | 0.3 |
Net income attributable to EnPro Industries, Inc. | 37.4 | 16.8 |
Comprehensive income | 44.5 | 4.4 |
Less: comprehensive loss attributable to redeemable non-controlling interests | 0 | (0.7) |
Comprehensive income attributable to EnPro Industries, Inc. | 44.5 | 5.1 |
Income attributable to EnPro Industries, Inc. common shareholders: | ||
Income from continuing operations, net of tax | 26 | 11.9 |
Income from discontinued operations, including gain on sale, net of tax | 11.4 | 4.9 |
Net income attributable to EnPro Industries, Inc. | $ 37.4 | $ 16.8 |
Basic earnings per share attributable to EnPro Industries, Inc.: | ||
Continuing operations (in dollars per share) | $ 1.25 | $ 0.57 |
Discontinued operations (in dollars per share) | 0.55 | 0.24 |
Net income per share (in dollars per share) | 1.80 | 0.81 |
Diluted earnings per share attributable to EnPro Industries, Inc.: | ||
Continuing operations (in dollars per share) | 1.24 | 0.57 |
Discontinued operations (in dollars per share) | 0.55 | 0.24 |
Net income per share (in dollars per share) | $ 1.79 | $ 0.81 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING ACTIVITIES OF CONTINUING OPERATIONS | ||
Net income | $ 37.4 | $ 17.1 |
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | ||
Income from discontinued operations, net of taxes | (11.4) | (4.9) |
Taxes related to sale of discontinued operations | (3.5) | 0 |
Depreciation | 6 | 6.4 |
Amortization | 17.6 | 19.6 |
Deferred income taxes | (0.4) | (0.7) |
Stock-based compensation | 2.4 | 1.5 |
Other non-cash adjustments | 1.1 | 2.2 |
Change in assets and liabilities, net of effects of divestiture of businesses: | ||
Accounts receivable, net | (11.5) | (11.6) |
Inventories | (4.9) | (3.5) |
Accounts payable | (4.6) | 6.4 |
Other current assets and liabilities | (0.9) | (7.9) |
Other non-current assets and liabilities | (0.9) | 2.8 |
Net cash provided by operating activities of continuing operations | 26.4 | 27.4 |
INVESTING ACTIVITIES OF CONTINUING OPERATIONS | ||
Purchases of property, plant and equipment | (5) | (3) |
Proceeds from sale of businesses, net | 25.3 | 0.4 |
Purchase of short-term investments | (35) | 0 |
Other | (0.1) | 0.1 |
Net cash used in investing activities of continuing operations | (14.8) | (2.5) |
FINANCING ACTIVITIES OF CONTINUING OPERATIONS | ||
Proceeds from debt | 0 | 4.5 |
Repayments of debt | (4) | (52.4) |
Dividends paid | (6.2) | (5.9) |
Other | (1.8) | (6.6) |
Net cash used in financing activities of continuing operations | (12) | (60.4) |
CASH FLOWS OF DISCONTINUED OPERATIONS | ||
Operating cash flows | (0.6) | (0.2) |
Investing cash flows | 0 | (1) |
Net cash used by discontinued operations | (0.6) | (1.2) |
Effect of exchange rate changes on cash and cash equivalents | 2.7 | (8) |
Net increase (decrease) in cash and cash equivalents | 1.7 | (44.7) |
Cash and cash equivalents at beginning of period | 334.4 | 338.1 |
Cash and cash equivalents at end of period | 336.1 | 293.4 |
Cash paid (received) during the period for: | ||
Interest, net | 7 | 0.1 |
Income taxes, net | (0.1) | 1.7 |
Non-cash investing and financing activities: | ||
Non-cash acquisitions of property, plant, and equipment | $ 0.1 | $ 0.1 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 336.1 | $ 334.4 |
Short-term investments | 35 | 0 |
Accounts receivable, net | 149.4 | 137.1 |
Inventories | 157.1 | 151.9 |
Prepaid expenses and other current assets | 37.7 | 44.9 |
Current assets of discontinued operation | 0 | 15.9 |
Total current assets | 715.3 | 684.2 |
Property, plant and equipment, net | 184.7 | 185.2 |
Goodwill | 866.1 | 863.8 |
Intangible assets | 783.8 | 799.8 |
Other assets | 121.6 | 114.8 |
Total assets | 2,671.5 | 2,647.8 |
Current liabilities | ||
Current maturities of long-term debt | 15.6 | 15.6 |
Accounts payable | 68.9 | 73.4 |
Accrued expenses | 115.4 | 120.2 |
Current liabilities of discontinued operation | 0 | 2.3 |
Total current liabilities | 199.9 | 211.5 |
Long-term debt | 771.2 | 775.1 |
Deferred taxes and non-current income taxes payable | 136.3 | 136.5 |
Other liabilities | 111.1 | 111.7 |
Total liabilities | 1,218.5 | 1,234.8 |
Commitments and contingencies | ||
Redeemable non-controlling interests | 17.9 | 17.9 |
Shareholders’ equity | ||
Common stock – $.01 par value; 100,000,000 shares authorized; issued, 21,055,668 shares in 2023 and 20,996,739 shares in 2022 | 0.2 | 0.2 |
Additional paid-in capital | 300.8 | 299.2 |
Retained earnings | 1,161.5 | 1,130.2 |
Accumulated other comprehensive loss | (26.2) | (33.3) |
Common stock held in treasury, at cost – 177,868 shares in 2023 and 179,345 shares in 2022 | (1.2) | (1.2) |
Total shareholders’ equity | 1,435.1 | 1,395.1 |
Total liabilities and equity | $ 2,671.5 | $ 2,647.8 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 21,055,668 | 20,996,739 |
Treasury stock, common, shares (in shares) | 177,868 | 179,345 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Overview EnPro Industries, Inc. (“we,” “us,” “our,” “EnPro,” or the “Company”) is a leading-edge industrial technology company focused on critical applications across a diverse group of growing end markets such as semiconductor, photonics, industrial process, aerospace, food, biopharma and life sciences. EnPro is a leader in applied engineering and designs, develops, manufactures, and markets proprietary, value-added products and solutions that safeguard a variety of critical environments. Over the past several years, we have executed several strategic initiatives to create a portfolio of businesses that offer proprietary, industrial technology-related products and solutions with high barriers to entry, compelling margins, strong cash flow, and perpetual recurring/aftermarket revenue in markets with favorable secular tailwinds. Basis of Presentation The accompanying interim consolidated financial statements are unaudited, and certain related information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted in accordance with Rule 10-01 of Regulation S-X. They were prepared following the same policies and procedures used in the preparation of our annual financial statements. The accompanying interim consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of results for the periods presented. The Consolidated Balance Sheet as of December 31, 2022 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2022. The results of operations for the interim periods are not necessarily indicative of the results for the fiscal year. These consolidated financial statements should be read in conjunction with our annual consolidated financial statements for the year ended December 31, 2022 included within our annual report on Form 10-K. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. All intercompany accounts and transactions between our consolidated operations have been eliminated. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On January 30, 2023 we completed the sale of Garlock Pipeline Technologies, Inc. ("GPT") for gross proceeds of $31.4 million. We recorded a pre-tax gain on the sale of discontinued operations of $14.6 million in the first quarter of 2023. The sale of GPT, along with our GGB business that was divested on November 4, 2022 comprised our remaining Engineered Materials segment ("Engineered Materials"). We determined Engineered Materials to be a discontinued operation. Accordingly, we have reported, for all periods presented, the financial condition, results of operations, and cash flows of Engineered Materials as discontinued operations in the accompanying financial statements. For the three months ended March 31, 2023 and 2022, the results of operations from the discontinued Engineered Materials segment were as follows: (in millions) 2023 2022 Net sales $ 2.0 $ 58.7 Cost of sales 1.3 37.9 Gross profit 0.7 20.8 Operating expenses: Selling, general and administrative 0.4 14.0 Other — 0.1 Total operating expenses 0.4 14.1 Income from discontinued operation before income tax 0.3 6.7 Income tax expense (0.1) (1.8) Income from discontinued operations, net of tax 0.2 4.9 Gain from sale of discontinued operation, net of tax 11.2 — Income from discontinued operations, including gain on sale, net of tax $ 11.4 $ 4.9 The major classes of assets and liabilities for the discontinued Engineered Materials segment are shown below: (in millions) December 31, Assets: Accounts receivable $ 3.8 Inventories 3.1 Property, plant and equipment 7.6 Intangible assets 1.2 Other assets 0.2 Current assets of discontinued operation $ 15.9 Liabilities Accounts payable $ 1.4 Accrued expenses 0.9 Current liabilities of discontinued operation $ 2.3 Pursuant to applicable accounting guidance for the reporting of discontinued operations, allocations to Engineered Materials for corporate services not expected to continue at the divested business subsequent to closing have not been reflected in the above financial statements of discontinued operations and have been reclassified to income from continuing operations in the accompanying consolidated financial statements of the Company for all periods. In addition, divestiture-related costs previously not allocated to Engineered Materials that were incurred as a result of the divestiture of Engineered Materials have been reflected in the financial results of discontinued operations. As a result, income before income taxes of Engineered Materials has been decreased by $0.4 million for the three months ended March 31, 2022, with offsetting changes in corporate expenses of continuing operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur income tax expense and resulting effective tax rate on income from continuing operations are based upon the estimated annual effective tax rates applicable for the respective periods adjusted for the effect of items required to be treated as discrete in the interim periods. This estimated annual effective tax rate is affected by the relative proportions of revenue and income before taxes in the jurisdictions in which we operate. Based on the geographical mix of earnings, our annual effective tax rate fluctuates based on the portion of our profits earned in each jurisdiction. Additionally, in accordance with discontinued operations reporting requirements, income tax expense for the current and prior periods presented have been adjusted to reflect only the activity of continuing operations. This presentation requires removing all elements of income tax expense associated with discontinued operations entities as well as their indirect impact on the overall income tax provision. The effective tax rates for the three months ended March 31, 2023 and 2022 were 23.7% and 20.7%, respectively. The effective tax rate for the three months ended March 31, 2023 is primarily driven by higher tax rates in most foreign jurisdictions partially offset by the release of a valuation allowance on certain foreign net operating losses and a tax benefit related to share-based payment awards. The effective tax rate for the three months ended March 31, 2022 is primarily the result of a tax benefit related to share-based payment awards partially offset by higher tax rates in most foreign jurisdictions. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Three Months Ended March 31, 2023 2022 (in millions, except per share amounts) Numerator (basic and diluted): Income from continuing operations $ 26.0 $ 12.2 Less: net income attributable to redeemable non-controlling interests — 0.3 Income from continuing operations attributable to EnPro Industries, Inc. 26.0 11.9 Income from discontinued operations, net of tax 11.4 4.9 Net income attributable to EnPro Industries, Inc. $ 37.4 $ 16.8 Denominator: Weighted-average shares – basic 20.8 20.8 Share-based awards 0.1 0.1 Weighted-average shares – diluted 20.9 20.9 Basic earnings per share attributable to EnPro Industries, Inc.: Continuing operations $ 1.25 $ 0.57 Discontinued operations 0.55 0.24 Basic earnings per share attributable to EnPro Industries, Inc. $ 1.80 $ 0.81 Diluted earnings per share attributable to EnPro Industries, Inc.: Continuing operations $ 1.24 $ 0.57 Discontinued operations 0.55 0.24 Diluted earnings per share attributable to EnPro Industries, Inc. $ 1.79 $ 0.81 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories March 31, December 31, (in millions) Finished products $ 52.3 $ 51.5 Work in process 34.8 32.7 Raw materials and supplies 70.0 67.7 Total inventories $ 157.1 $ 151.9 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the net carrying value of goodwill by reportable segment for the three months ended March 31, 2023, are as follows: Sealing Advanced Surface Technologies Total (in millions) Goodwill as of December 31, 2022 $ 270.8 $ 593.0 $ 863.8 Foreign currency translation 2.3 — 2.3 Goodwill as of March 31, 2023 $ 273.1 $ 593.0 $ 866.1 The goodwill balances reflected above are net of accumulated impairment losses of $27.8 million for the Sealing Technologies segment and $65.2 million for the Advanced Surface Technologies segment. Identifiable intangible assets are as follows: March 31, 2023 December 31, 2022 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 484.8 $ 163.9 $ 484.5 $ 157.6 Existing technology 464.3 80.0 463.7 71.3 Trademarks 64.9 25.5 64.8 24.0 Other 36.4 28.0 36.4 27.3 1,050.4 297.4 1,049.4 280.2 Indefinite-Lived: Trademarks 30.8 — 30.6 — Total $ 1,081.2 $ 297.4 $ 1,080.0 $ 280.2 Amortization for the three months ended March 31, 2023 and 2022 were $17.4 million, and $19.5 million, respectively. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses March 31, December 31, (in millions) Salaries, wages and employee benefits $ 40.7 $ 51.6 Interest 9.3 4.4 Environmental 10.4 10.4 Income taxes 13.8 10.7 Taxes other than income taxes 5.2 4.6 Operating lease liabilities 9.9 9.2 Other 26.1 29.3 $ 115.4 $ 120.2 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Senior Secured Credit Facilities On December 17, 2021, we entered into a Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”) among the Company and EnPro Holdings, as borrowers, certain foreign subsidiaries of the Company from time to time party thereto, as designated borrowers, the guarantors party thereto, the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. The Amended Credit Agreement amends, restates and replaces the Second Amended and Restated Credit Agreement dated as of June 28, 2018, as amended, among the Company and 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 L/C Issuer. The Amended Credit Agreement provides for credit facilities in the initial aggregate principal amount of $1,007.5 million, consisting of a five-year, senior secured revolving credit facility of $400.0 million (the “Revolving Credit Facility”), a $142.5 million senior secured term loan facility in replacement of our existing senior secured term loan facility, maturing September 25, 2024 (the “Term Loan A-1 Facility”), a five-year, senior secured term loan facility of $315.0 million (the “Term Loan A-2 Facility”) and a 364-day, senior secured term loan facility of $150.0 million (the “364-Day Facility” and together with the Revolving Credit Facility, the Term Loan A-1 Facility and the Term Loan A-2 Facility, the “Facilities”). The Amended Credit Agreement also provides that we may seek incremental term loans and/or additional revolving credit commitments in an amount equal to the greater of $275.0 million and 100% of consolidated EBITDA 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. The Amended Credit Agreement became effective on December 17, 2021. Borrowings under the 364-Day Facility bore interest at an annual rate of LIBOR plus 1.50% or base rate plus 0.50%. Initially, borrowings under the Facilities (other than the 364-Day Facility) bore interest at an annual rate of LIBOR plus 1.75% or base rate plus 0.75%, although these interest rates were subject to incremental increase or decrease based on a consolidated total net leverage ratio. On November 8, 2022, we entered into a First Amendment to the Amended Credit Agreement, which replaced the LIBOR-based interest rate option with an option based on Term SOFR ("Secured Overnight Financing Rate") plus (i) a credit spread adjustment of 0.10% and (ii) 1.75%, again subject to incremental increase or decrease 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 0.225%, which rate is also subject to incremental increase or decrease based on a consolidated total net leverage ratio. The Term Loan A-1 Facility amortizes on a quarterly basis in an annual amount equal to 2.50% of the original principal amount of the Term Loan A-1 Facility ($150.0 million) in year one after the closing, 5.00% of such original principal amount in year two and 1.25% of such original principal amount in each of the first three quarters of year three, with the remaining outstanding principal amount payable at maturity. The Term Loan A-2 Facility amortizes on a quarterly basis in an annual amount equal to 2.5% of the original principal amount of the Term Loan A-2 Facility in each of years one through three, 5.0% 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 364-Day Facility did not amortize and was repaid in full in the third quarter of 2022. The Facilities are subject to prepayment with the net cash proceeds of certain asset sales, casualty or condemnation events and non-permitted debt issuances. The Company and EnPro Holdings are the permitted borrowers under the Facilities. The Company may also from time to time designate any of its wholly owned foreign subsidiaries as a borrower under the Revolving Credit Facility. Each of the Company’s domestic subsidiaries (other than any subsidiaries that may be designated as “unrestricted” by the Company from time to time, and inactive subsidiaries) is required to guarantee the obligations of the borrowers under the Facilities, and each of the Company’s existing domestic subsidiaries (other than inactive subsidiaries) has entered into the Amended Credit Agreement to provide such a guarantee. Borrowings under the Facilities are secured by a first-priority pledge of certain assets. The Amended 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 Amended Credit Agreement. We were in compliance with all covenants of the Amended Credit Agreement as of March 31, 2023. The borrowing availability under our Revolving Credit Facility at March 31, 2023 was $389.2 million after giving consideration to $10.8 million of outstanding letters of credit. The balance of our outstanding Term Loan A-1 Facility and Term Loan A-2 Facility at March 31, 2023 was $134.9 million and $305.3 million respectively. 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 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. 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. 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. 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 100.0% of the principal amount thereof plus accrued and unpaid interest. This requirement applies to the net cash proceeds received in the divestitures of GGB and GPT and could require us to make such an offer to repurchase the Senior Notes in the first quarter of 2024 to the extent we do not sufficiently invest in acquisitions, assets, property or capital expenditures or repay or otherwise reduce specified indebtedness by then. |
Pension
Pension | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension | Pension The components of net periodic benefit cost for our U.S. and foreign defined benefit pension plans for the three months ended March 31, 2023 and 2022, are as follows: 2023 2022 (in millions) Service cost $ 0.1 $ 0.4 Interest cost 3.3 2.4 Expected return on plan assets (3.4) (3.3) Amortization of net loss 0.4 0.1 Net periodic benefit cost (benefit) $ 0.4 $ (0.4) |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Changes in shareholders' equity for the three months ended March 31, 2023 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2022 20.8 $ 0.2 $ 299.2 $ 1,130.2 $ (33.3) $ (1.2) $ 1,395.1 $ 17.9 Net income — — — 37.4 — — 37.4 — Other comprehensive loss — — — — 7.1 — 7.1 — Dividends ($0.29 per share) — — — (6.1) — — (6.1) — Incentive plan activity 0.1 — 1.6 — — — 1.6 — Balance, March 31, 2023 20.9 $ 0.2 $ 300.8 $ 1,161.5 $ (26.2) $ (1.2) $ 1,435.1 $ 17.9 Changes in shareholders' equity for the three months ended March 31, 2022 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2021 20.7 $ 0.2 $ 303.6 $ 953.1 $ 14.6 $ (1.2) $ 1,270.3 $ 50.1 Net income — — — 16.8 — — 16.8 0.3 Other comprehensive loss — — — — (11.7) — (11.7) (1.0) Dividends ($0.28 per share) — — — (5.9) — — (5.9) — Incentive plan activity 0.1 — (4.1) — — — (4.1) — Other — — 0.1 — — — 0.1 (0.1) Balance, March 31, 2022 20.8 $ 0.2 $ 299.6 $ 964.0 $ 2.9 $ (1.2) $ 1,265.5 $ 49.3 We intend to declare regular quarterly cash dividends on our common stock, as determined by our board of directors, after taking into account our current and projected cash flows, earnings, financial position, debt covenants and other relevant factors. In accordance with the board of directors' declaration, total dividend payments of $6.2 million were made during the three months ended March 31, 2023. In April 2023, our board of directors declared a dividend of $0.29 per share, payable on June 14, 2023, to all shareholders of record as of May 31, 2023. In October 2022, our board of directors authorized the expenditure of up to $50.0 million for the repurchase of our outstanding common shares through October 2024. We have not made any repurchases under this authorization or the prior two In 2023, we changed our performance share awards, granted under our equity compensation plan to executives and other key employees, to be paid in shares of our common stock at the end of the three-year vesting period. Awards issued prior to 2023 will be payable in cash at the end of the vesting period based upon the performance of Enpro’s share price relative to an industry peer group. Compensation expense related to performance shares granted in 2023 is computed using the fair value of the awards on the grant date, which is expensed on a straight-line basis over the three-year vesting period. Compensation expense for awards granted prior to 2023 is computed based upon the current estimate of total projected cash to be paid at vesting. In February 2023, we issued stock options to certain key executives for 0.1 million common shares with an exercise price of $116.69 per share. The options vest pro-rata on the first, second and third anniversaries of the grant date, subject to continued employment. No options have a term greater than 10 years. We determine the fair value of stock options using the Black-Scholes option pricing formula as of the grant date. 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 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. The dividend assumption is based on our expectations as of the grant date. 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. The option awards issued in February 2023 had a fair value of $45.13 per share at their grant date. The following assumptions were used to estimate the fair value of the 2023 option awards: Average expected term 6 years Expected volatility 39.75 % Risk-free interest rate 4.22 % Expected dividend yield 1.05 % |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We aggregate our operating businesses into two reportable segments. The factors considered in determining our reportable segments are the economic similarity of the businesses, the nature of products sold, or solutions 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 and manufactures value-added products and solutions that safeguard a variety of critical environments, 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, and heavy-duty commercial vehicle parts used in wheel-end and suspension components that customers rely upon to ensure safety on our roadways. These products are used in a variety of markets, including chemical and petrochemical processing, nuclear energy, food and biopharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, heavy-duty trucking, aerospace, medical, filtration and semiconductor fabrication. In all of these industries, performance and durability of our proprietary products and solutions are vital for the safety and environmental protection of our customers processes. Many of our products and solutions are used in highly demanding applications in harsh environments, e.g., where extreme temperatures, extreme pressures, corrosive environments, strict tolerances, and/or worn equipment create challenges for product performance. Sealing Technologies offers customers widely recognized applied engineering, innovation, process know how and enduring reliability, driving aftermarket demand for many of our solutions. Our Advanced Surface Technologies (AST) segment applies proprietary technologies, processes, and capabilities to deliver a highly differentiated suite of products and solutions for the most challenging applications in high growth markets. The segment’s products and solutions are used in highly demanding environments requiring performance, precision and repeatability, with a low tolerance for failure. The segment’s solutions include cleaning, coating, testing, refurbishment and verification for critical components and assemblies used in state-of-the-art advanced node semiconductor manufacturing equipment. AST designs, manufactures and sells specialized optical filters and proprietary 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, and edge-welded metal bellows for the semiconductor equipment industry and for critical applications in the space, aerospace and defense markets. In many instances, AST capabilities drive solutions that enable the maintenance of our customers’ processes through an entire life cycle. We measure operating performance based on segment earnings before interest, income taxes, depreciation, amortization, and other selected items ("Adjusted Segment EBITDA"), which is segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition and divestiture expenses, restructuring costs, impairment charges, non-controlling interest compensation, amortization of the fair value adjustment to acquisition date inventory, 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. Corporate expenses include general corporate administrative costs. Expenses not directly attributable to the segments, corporate expenses, net interest expense, gains and losses related to the sale of assets, and income taxes are not included in the computation of Adjusted Segment EBITDA. The accounting policies of the reportable segments are the same as those for EnPro. Non-controlling interest compensation allocation represents compensation expense associated with the rollover equity subject to put and call options from the acquisitions of LeanTeq and Alluxa subject to reduction for certain types of employment terminations of the respective 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 acquisition. This expense is recognized as compensation expense over the term of the respective put and call options unless certain employment terminations occur. The LeanTeq non-controlling interests were acquired by Enpro in December 2022 and, accordingly, the non-controlling interest compensation for the three months ended March 31, 2023 is attributable solely to the Alluxa rollover equity. Segment operating results and other financial data for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 (in millions) Sales Sealing Technologies $ 173.3 $ 153.6 Advanced Surface Technologies 109.4 116.7 282.7 270.3 Intersegment sales (0.1) (0.2) Total sales $ 282.6 $ 270.1 Adjusted Segment EBITDA Sealing Technologies $ 49.7 $ 34.3 Advanced Surface Technologies 29.5 34.9 $ 79.2 $ 69.2 Reconciliation of Adjusted Segment EBITDA to income before income taxes Income from continuing operations before income taxes $ 34.1 $ 15.4 Acquisition and divestiture expenses — 0.2 Non-controlling interest compensation allocation 0.4 (0.9) Amortization of fair value adjustment to acquisition date inventory — 10.3 Restructuring and impairment expense 0.4 0.3 Depreciation and amortization expense 23.5 25.9 Corporate expenses 10.7 12.9 Interest expense, net 7.9 6.9 Other income (expense), net 2.2 (1.8) Adjusted Segment EBITDA $ 79.2 $ 69.2 Segment assets are as follows: March 31, 2023 December 31, 2022 (in millions) Sealing Technologies $ 708.5 $ 689.6 Advanced Surface Technologies 1,514.1 1,519.6 Corporate 448.9 422.7 Discontinued operations — 15.9 $ 2,671.5 $ 2,647.8 Backlog As of March 31, 2023, the aggregate amount of transaction price of remaining performance obligations, or backlog, on a consolidated basis was $294.0 million. Approximately 95% of these obligations are expected to be satisfied within one year. There is no certainty these orders will result in actual sales at the times or in the amounts ordered. In addition, for most of our business, this total is not particularly predictive of future performance because of our short lead times and some seasonality. Revenue by End Market 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 three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 12.5 $ 1.6 $ 14.1 Chemical and material processing 21.6 — 21.6 Food and pharmaceutical 18.7 — 18.7 General industrial 43.9 8.8 52.7 Commercial vehicle 52.4 — 52.4 Oil and gas 5.9 1.6 7.5 Power generation 16.1 — 16.1 Semiconductors 2.2 97.3 99.5 Total third-party sales $ 173.3 $ 109.3 $ 282.6 Three Months Ended March 31, 2022 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 8.1 $ 2.0 $ 10.1 Chemical and material processing 20.3 — 20.3 Food and pharmaceutical 17.6 — 17.6 General industrial 42.9 7.8 50.7 Commercial vehicle 44.8 — 44.8 Oil and gas 5.1 0.6 5.7 Power generation 13.2 0.1 13.3 Semiconductors 1.6 106.0 107.6 Total third-party sales $ 153.6 $ 116.5 $ 270.1 |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | 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. As part of out regular practice, we have entered into a forward contract to hedge a 95 million Euro exposure on an intercompany note agreement related to proceeds from the GGB sale allocated to foreign subsidiaries. We expect this intercompany note to be settled during 2023. The notional amount of foreign exchange contracts was $104.8 million and $103.3 million March 31, 2023 and December 31, 2022 respectively. All foreign exchange contracts outstanding at December 31, 2022 expired in January 2023. The notional amounts of all of our foreign exchange contracts were recorded at their fair market value as of December 31, 2022 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 May 2019, we entered into a cross-currency swap agreements (the "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 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 agreement, 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 the Swap. There was no principal exchange at the inception of the arrangement, and there will be no exchange at maturity. At maturity (or earlier at our option), we and the counterparty will settle the Swap agreement at its 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 agreement was entered into. We have designated the Swap as a qualifying hedging instruments and are accounting for it as a net investment hedge. At March 31, 2023, the fair value of the Swap equaled $7.9 million and was recorded within our other (non-current) assets on the Consolidated Balance Sheet.The gains and losses resulting from fair value adjustment to the Swap agreement, excluding interest accruals related to the above receipts, are recorded in accumulated other comprehensive income within our cumulative foreign currency translation adjustment, as the Swap is effective in hedging the designated risk. Cash flows related to the Swap are included in operating activities in the Consolidated Statements of Cash Flows, aside from the ultimate settlement at maturity with the counterparty, which will be included in investing activities. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of March 31, 2023 December 31, 2022 (in millions) Assets Short-term investments 35.0 — Foreign currency derivatives 7.9 8.5 Deferred compensation assets 10.1 9.8 $ 53.0 $ 18.3 Liabilities Deferred compensation liabilities $ 10.5 $ 10.3 Our 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 and short-term investments are classified as Level 2 since their value is calculated based upon observable inputs including market USD/Euro exchange rates and market interest rates. Our short-term investments represent certificates of deposits acquired in the first quarter of 2023 with a maturity date in July 2023. The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximated their respective fair values except for the following instruments: March 31, 2023 December 31, 2022 Carrying Fair Carrying Fair (in millions) Long-term debt $ 786.8 $ 782.7 $ 790.7 $ 788.8 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component (after tax) for the three months ended March 31, 2023 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 11.8 $ (45.1) $ (33.3) Other comprehensive income before reclassifications 6.8 6.8 Amounts reclassified from accumulated other comprehensive loss — 0.3 0.3 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 6.8 0.3 7.1 Ending balance $ 18.6 $ (44.8) $ (26.2) Changes in accumulated other comprehensive income (loss) by component (after tax) for the three months ended March 31, 2022 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 46.7 $ (32.1) $ 14.6 Other comprehensive loss before reclassifications (12.8) — (12.8) Amounts reclassified from accumulated other comprehensive income — 0.1 0.1 Net current-period other comprehensive loss (12.8) 0.1 (12.7) Less: other comprehensive income attributable to redeemable non-controlling interests (1.0) — (1.0) Net current-period other comprehensive income attributable to EnPro Industries, Inc. (11.8) 0.1 (11.7) Ending balance $ 34.9 $ (32.0) $ 2.9 Reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022 are as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Affected Statement of Three Months Ended (in millions) 2023 2022 Pension and other postretirement plans adjustments: Actuarial losses $ 0.4 $ 0.1 Other income (expense) Total before tax 0.4 0.1 Income before income taxes Tax benefit (0.1) — Income tax expense Net of tax $ 0.3 $ 0.1 Net income |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 19 sites. At 9 of these sites, the future cost per site for us or our subsidiary is expected to exceed $100,000. Of these 19 sites, 18 are sites where we or one or more of our subsidiaries formerly conducted business operations but no longer do, and 1 is a site where we conduct manufacturing operations. Investigations have been completed for 16 sites. At 7 of these sites, remediation systems are operating while at the other 9 sites, our only obligation is to conduct periodic monitoring. Investigations are in progress at 3 sites. 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 and adjusted to reflect additional technical data and legal information. As of March 31, 2023 and December 31, 2022, we had recorded liabilities aggregating $41.2 million and $42.1 million, respectively, for estimated future expenditures relating to environmental contingencies. The current portion of our aggregate environmental liability included in accrued liabilities was $10.4 million at March 31, 2023. 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. We believe that our accruals for specific environmental liabilities are adequate 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. Lower Passaic River Study Area 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 19 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 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 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. On April 14, 2021, the EPA issued its proposed remedy for the upper nine miles of the river, with an estimated present value cost of approximately $441 million. The proposed remedy would involve dredging and capping of the river sediment as an interim remedy followed by a period of monitoring to evaluate the response of the river system to the interim remedy. When the EPA initiated the allocation process in 2017, it explained that a fair, carefully structured, information-based allocation was necessary to promote settlements. With the completion of the allocation process, in the second quarter of 2021 the EPA began settlement negotiations with the parties that participated in the allocation process, including EnPro. In September 2022, EnPro paid $5.9 million as part of a settlement between those parties and EPA. The payment will be held in escrow until court approval of the settlement. Our reserve for this site at March 31, 2023 was $0.7 million. Further adjustments to our reserve for this site are possible as new or additional information becomes available. Except with respect to 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. Arizona Uranium Mines EnPro Holdings has received notices from the EPA asserting that it is a potentially responsible party under the 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. We entered into a First Modification of Original Administrative Settlement Agreement and Order on Consent effective July 8, 2022 for the performance of Engineering Evaluations and Cost Analyses of potential remedial options at each of the sites. In 2020, 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. Our reserve at March 31, 2023 for this site was $12.4 million, which reflects the low end of the range of our reasonably likely liability with respect to these sites. We are not able at this time to estimate the upper end of a range of liability with respect to these sites. On October 18, 2021, the United States District Court for the District of Arizona approved and entered a Consent Decree pursuant to which the U.S government will reimburse the Company for 35% of necessary costs of response, as defined in 42 U.S.C. section 9601(25), previously or to be in the future incurred by the Company which arise out of or in connection with releases or threatened releases of hazardous substances at or emanating from the mine sites. We expect future contributions of $3.3 million from the U.S. government towards remediation of the site. This amount was included in other assets in the accompanying consolidated balance sheet at March 31, 2023. In addition to the two sites discussed above, we have additional reserves of $28.1 million, of which $14.3 million pertains to implementing and managing a solution to clean trichloroethylene soil and groundwater contamination at the location of a former operation in Water Valley, Mississippi. These amounts represent a reasonable estimate of our probable future costs to remediate these sites given the facts and circumstances known at March 31, 2023. 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 EnPro Holdings until 1983 when its assets and liabilities were distributed to a new subsidiary, Crucible Materials Corporation. EnPro Holdings 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 EnPro Holdings' period of ownership of Crucible. Based on EnPro Holdings' 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 after a review of historical warranty experience and information about specific warranty claims. Adjustments are made to the liability as claims data, historical experience, and trends result in changes to our estimate. Changes in the product warranty liability for the three months ended March 31, 2023 and 2022 are as follows: 2023 2022 (in millions) Balance at beginning of year $ 5.2 $ 4.9 Net charges to expense 0.3 0.4 Settlements made (0.3) (0.7) Balance at end of period $ 5.2 $ 4.6 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim consolidated financial statements are unaudited, and certain related information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted in accordance with Rule 10-01 of Regulation S-X. They were prepared following the same policies and procedures used in the preparation of our annual financial statements. The accompanying interim consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of results for the periods presented. The Consolidated Balance Sheet as of December 31, 2022 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2022. The results of operations for the interim periods are not necessarily indicative of the results for the fiscal year. These consolidated financial statements should be read in conjunction with our annual consolidated financial statements for the year ended December 31, 2022 included within our annual report on Form 10-K. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. All intercompany accounts and transactions between our consolidated operations have been eliminated. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | For the three months ended March 31, 2023 and 2022, the results of operations from the discontinued Engineered Materials segment were as follows: (in millions) 2023 2022 Net sales $ 2.0 $ 58.7 Cost of sales 1.3 37.9 Gross profit 0.7 20.8 Operating expenses: Selling, general and administrative 0.4 14.0 Other — 0.1 Total operating expenses 0.4 14.1 Income from discontinued operation before income tax 0.3 6.7 Income tax expense (0.1) (1.8) Income from discontinued operations, net of tax 0.2 4.9 Gain from sale of discontinued operation, net of tax 11.2 — Income from discontinued operations, including gain on sale, net of tax $ 11.4 $ 4.9 The major classes of assets and liabilities for the discontinued Engineered Materials segment are shown below: (in millions) December 31, Assets: Accounts receivable $ 3.8 Inventories 3.1 Property, plant and equipment 7.6 Intangible assets 1.2 Other assets 0.2 Current assets of discontinued operation $ 15.9 Liabilities Accounts payable $ 1.4 Accrued expenses 0.9 Current liabilities of discontinued operation $ 2.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | Three Months Ended March 31, 2023 2022 (in millions, except per share amounts) Numerator (basic and diluted): Income from continuing operations $ 26.0 $ 12.2 Less: net income attributable to redeemable non-controlling interests — 0.3 Income from continuing operations attributable to EnPro Industries, Inc. 26.0 11.9 Income from discontinued operations, net of tax 11.4 4.9 Net income attributable to EnPro Industries, Inc. $ 37.4 $ 16.8 Denominator: Weighted-average shares – basic 20.8 20.8 Share-based awards 0.1 0.1 Weighted-average shares – diluted 20.9 20.9 Basic earnings per share attributable to EnPro Industries, Inc.: Continuing operations $ 1.25 $ 0.57 Discontinued operations 0.55 0.24 Basic earnings per share attributable to EnPro Industries, Inc. $ 1.80 $ 0.81 Diluted earnings per share attributable to EnPro Industries, Inc.: Continuing operations $ 1.24 $ 0.57 Discontinued operations 0.55 0.24 Diluted earnings per share attributable to EnPro Industries, Inc. $ 1.79 $ 0.81 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | March 31, December 31, (in millions) Finished products $ 52.3 $ 51.5 Work in process 34.8 32.7 Raw materials and supplies 70.0 67.7 Total inventories $ 157.1 $ 151.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023, are as follows: Sealing Advanced Surface Technologies Total (in millions) Goodwill as of December 31, 2022 $ 270.8 $ 593.0 $ 863.8 Foreign currency translation 2.3 — 2.3 Goodwill as of March 31, 2023 $ 273.1 $ 593.0 $ 866.1 |
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets are as follows: March 31, 2023 December 31, 2022 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 484.8 $ 163.9 $ 484.5 $ 157.6 Existing technology 464.3 80.0 463.7 71.3 Trademarks 64.9 25.5 64.8 24.0 Other 36.4 28.0 36.4 27.3 1,050.4 297.4 1,049.4 280.2 Indefinite-Lived: Trademarks 30.8 — 30.6 — Total $ 1,081.2 $ 297.4 $ 1,080.0 $ 280.2 |
Schedule of Indefinite-Lived Intangible Assets | Identifiable intangible assets are as follows: March 31, 2023 December 31, 2022 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 484.8 $ 163.9 $ 484.5 $ 157.6 Existing technology 464.3 80.0 463.7 71.3 Trademarks 64.9 25.5 64.8 24.0 Other 36.4 28.0 36.4 27.3 1,050.4 297.4 1,049.4 280.2 Indefinite-Lived: Trademarks 30.8 — 30.6 — Total $ 1,081.2 $ 297.4 $ 1,080.0 $ 280.2 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | March 31, December 31, (in millions) Salaries, wages and employee benefits $ 40.7 $ 51.6 Interest 9.3 4.4 Environmental 10.4 10.4 Income taxes 13.8 10.7 Taxes other than income taxes 5.2 4.6 Operating lease liabilities 9.9 9.2 Other 26.1 29.3 $ 115.4 $ 120.2 |
Pension (Tables)
Pension (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for our U.S. and foreign defined benefit pension plans for the three months ended March 31, 2023 and 2022, are as follows: 2023 2022 (in millions) Service cost $ 0.1 $ 0.4 Interest cost 3.3 2.4 Expected return on plan assets (3.4) (3.3) Amortization of net loss 0.4 0.1 Net periodic benefit cost (benefit) $ 0.4 $ (0.4) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in shareholders' equity for the three months ended March 31, 2023 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2022 20.8 $ 0.2 $ 299.2 $ 1,130.2 $ (33.3) $ (1.2) $ 1,395.1 $ 17.9 Net income — — — 37.4 — — 37.4 — Other comprehensive loss — — — — 7.1 — 7.1 — Dividends ($0.29 per share) — — — (6.1) — — (6.1) — Incentive plan activity 0.1 — 1.6 — — — 1.6 — Balance, March 31, 2023 20.9 $ 0.2 $ 300.8 $ 1,161.5 $ (26.2) $ (1.2) $ 1,435.1 $ 17.9 Changes in shareholders' equity for the three months ended March 31, 2022 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2021 20.7 $ 0.2 $ 303.6 $ 953.1 $ 14.6 $ (1.2) $ 1,270.3 $ 50.1 Net income — — — 16.8 — — 16.8 0.3 Other comprehensive loss — — — — (11.7) — (11.7) (1.0) Dividends ($0.28 per share) — — — (5.9) — — (5.9) — Incentive plan activity 0.1 — (4.1) — — — (4.1) — Other — — 0.1 — — — 0.1 (0.1) Balance, March 31, 2022 20.8 $ 0.2 $ 299.6 $ 964.0 $ 2.9 $ (1.2) $ 1,265.5 $ 49.3 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used to estimate the fair value of the 2023 option awards: Average expected term 6 years Expected volatility 39.75 % Risk-free interest rate 4.22 % Expected dividend yield 1.05 % |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Results and Other Financial Data | Segment operating results and other financial data for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 (in millions) Sales Sealing Technologies $ 173.3 $ 153.6 Advanced Surface Technologies 109.4 116.7 282.7 270.3 Intersegment sales (0.1) (0.2) Total sales $ 282.6 $ 270.1 Adjusted Segment EBITDA Sealing Technologies $ 49.7 $ 34.3 Advanced Surface Technologies 29.5 34.9 $ 79.2 $ 69.2 Reconciliation of Adjusted Segment EBITDA to income before income taxes Income from continuing operations before income taxes $ 34.1 $ 15.4 Acquisition and divestiture expenses — 0.2 Non-controlling interest compensation allocation 0.4 (0.9) Amortization of fair value adjustment to acquisition date inventory — 10.3 Restructuring and impairment expense 0.4 0.3 Depreciation and amortization expense 23.5 25.9 Corporate expenses 10.7 12.9 Interest expense, net 7.9 6.9 Other income (expense), net 2.2 (1.8) Adjusted Segment EBITDA $ 79.2 $ 69.2 |
Schedule of Total Assets Segment | Segment assets are as follows: March 31, 2023 December 31, 2022 (in millions) Sealing Technologies $ 708.5 $ 689.6 Advanced Surface Technologies 1,514.1 1,519.6 Corporate 448.9 422.7 Discontinued operations — 15.9 $ 2,671.5 $ 2,647.8 |
Schedule of Disaggregation of Revenue | Below is a summary of our third-party sales by major end market with which we did business for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 12.5 $ 1.6 $ 14.1 Chemical and material processing 21.6 — 21.6 Food and pharmaceutical 18.7 — 18.7 General industrial 43.9 8.8 52.7 Commercial vehicle 52.4 — 52.4 Oil and gas 5.9 1.6 7.5 Power generation 16.1 — 16.1 Semiconductors 2.2 97.3 99.5 Total third-party sales $ 173.3 $ 109.3 $ 282.6 Three Months Ended March 31, 2022 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 8.1 $ 2.0 $ 10.1 Chemical and material processing 20.3 — 20.3 Food and pharmaceutical 17.6 — 17.6 General industrial 42.9 7.8 50.7 Commercial vehicle 44.8 — 44.8 Oil and gas 5.1 0.6 5.7 Power generation 13.2 0.1 13.3 Semiconductors 1.6 106.0 107.6 Total third-party sales $ 153.6 $ 116.5 $ 270.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 March 31, 2023 December 31, 2022 (in millions) Assets Short-term investments 35.0 — Foreign currency derivatives 7.9 8.5 Deferred compensation assets 10.1 9.8 $ 53.0 $ 18.3 Liabilities Deferred compensation liabilities $ 10.5 $ 10.3 |
Schedule of Carrying Value of Financial Instruments | The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximated their respective fair values except for the following instruments: March 31, 2023 December 31, 2022 Carrying Fair Carrying Fair (in millions) Long-term debt $ 786.8 $ 782.7 $ 790.7 $ 788.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (loss) by Component | Changes in accumulated other comprehensive income (loss) by component (after tax) for the three months ended March 31, 2023 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 11.8 $ (45.1) $ (33.3) Other comprehensive income before reclassifications 6.8 6.8 Amounts reclassified from accumulated other comprehensive loss — 0.3 0.3 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 6.8 0.3 7.1 Ending balance $ 18.6 $ (44.8) $ (26.2) Changes in accumulated other comprehensive income (loss) by component (after tax) for the three months ended March 31, 2022 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 46.7 $ (32.1) $ 14.6 Other comprehensive loss before reclassifications (12.8) — (12.8) Amounts reclassified from accumulated other comprehensive income — 0.1 0.1 Net current-period other comprehensive loss (12.8) 0.1 (12.7) Less: other comprehensive income attributable to redeemable non-controlling interests (1.0) — (1.0) Net current-period other comprehensive income attributable to EnPro Industries, Inc. (11.8) 0.1 (11.7) Ending balance $ 34.9 $ (32.0) $ 2.9 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (loss) | Reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022 are as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Affected Statement of Three Months Ended (in millions) 2023 2022 Pension and other postretirement plans adjustments: Actuarial losses $ 0.4 $ 0.1 Other income (expense) Total before tax 0.4 0.1 Income before income taxes Tax benefit (0.1) — Income tax expense Net of tax $ 0.3 $ 0.1 Net income |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Product Warranty Liability | Changes in the product warranty liability for the three months ended March 31, 2023 and 2022 are as follows: 2023 2022 (in millions) Balance at beginning of year $ 5.2 $ 4.9 Net charges to expense 0.3 0.4 Settlements made (0.3) (0.7) Balance at end of period $ 5.2 $ 4.6 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Discontinued operations - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jan. 30, 2023 | |
GPT | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Proceeds from sale of investment projects | $ 31.4 | ||
Gain (loss) on sales of business | $ 14.6 | ||
Engineered Materials Segment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Income tax expense | $ (0.1) | $ (1.8) | |
Engineered Materials Segment | Adjustment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Income tax expense | $ 0.4 |
Discontinued Operations- Result
Discontinued Operations- Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating expenses: | ||
Income from discontinued operations, including gain on sale, net of tax | $ 11.4 | $ 4.9 |
Discontinued operations | Engineered Materials Segment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Net sales | 2 | 58.7 |
Cost of sales | 1.3 | 37.9 |
Gross profit | 0.7 | 20.8 |
Operating expenses: | ||
Selling, general and administrative | 0.4 | 14 |
Other | 0 | 0.1 |
Total operating expenses | 0.4 | 14.1 |
Income from discontinued operation before income tax | 0.3 | 6.7 |
Income tax expense | (0.1) | (1.8) |
Income from discontinued operations, net of tax | 0.2 | 4.9 |
Gain from sale of discontinued operation, net of tax | 11.2 | 0 |
Income from discontinued operations, including gain on sale, net of tax | $ 11.4 | $ 4.9 |
Discontinued Operations - Class
Discontinued Operations - Classes of Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Current assets of discontinued operation | $ 0 | $ 15.9 |
Liabilities | ||
Current liabilities of discontinued operation | $ 0 | 2.3 |
Discontinued operations | Engineered Materials Segment | ||
Assets: | ||
Accounts receivable | 3.8 | |
Inventories | 3.1 | |
Property, plant and equipment | 7.6 | |
Intangible assets | 1.2 | |
Other assets | 0.2 | |
Current assets of discontinued operation | 15.9 | |
Liabilities | ||
Accounts payable | 1.4 | |
Accrued expenses | 0.9 | |
Current liabilities of discontinued operation | $ 2.3 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 23.70% | 20.70% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator (basic and diluted): | ||
Income from continuing operations | $ 26 | $ 12.2 |
Less: net income attributable to redeemable non-controlling interests | 0 | 0.3 |
Income from continuing operations attributable to EnPro Industries, Inc. | 26 | 11.9 |
Income from discontinued operations, net of tax | 11.4 | 4.9 |
Net income attributable to EnPro Industries, Inc. | 37.4 | 16.8 |
Net income attributable to EnPro Industries, Inc. | $ 37.4 | $ 16.8 |
Denominator: | ||
Weighted-average shares – basic (in shares) | 20.8 | 20.8 |
Share-based awards (in shares) | 0.1 | 0.1 |
Weighted-average shares – diluted (in shares) | 20.9 | 20.9 |
Basic earnings per share attributable to EnPro Industries, Inc.: | ||
Continuing operations (in dollars per share) | $ 1.25 | $ 0.57 |
Discontinued operations (in dollars per share) | 0.55 | 0.24 |
Net income per share (in dollars per share) | 1.80 | 0.81 |
Diluted earnings per share attributable to EnPro Industries, Inc.: | ||
Continuing operations (in dollars per share) | 1.24 | 0.57 |
Discontinued operations (in dollars per share) | 0.55 | 0.24 |
Net income per share (in dollars per share) | $ 1.79 | $ 0.81 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 52.3 | $ 51.5 |
Work in process | 34.8 | 32.7 |
Raw materials and supplies | 70 | 67.7 |
Total inventories | $ 157.1 | $ 151.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 863.8 |
Foreign currency translation | 2.3 |
Goodwill, ending balance | 866.1 |
Sealing Technologies | |
Goodwill | |
Goodwill, beginning balance | 270.8 |
Foreign currency translation | 2.3 |
Goodwill, ending balance | 273.1 |
Advanced Surface Technologies | |
Goodwill | |
Goodwill, beginning balance | 593 |
Foreign currency translation | 0 |
Goodwill, ending balance | $ 593 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information | ||
Amortization expense | $ 17.4 | $ 19.5 |
Sealing Technologies | ||
Segment Reporting Information | ||
Accumulated impairment losses | 27.8 | |
Advanced Surface Technologies | ||
Segment Reporting Information | ||
Accumulated impairment losses | $ 65.2 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 1,050.4 | $ 1,049.4 |
Accumulated Amortization | 297.4 | 280.2 |
Total | 1,081.2 | 1,080 |
Trademarks | ||
Indefinite-lived Intangible Assets | ||
Indefinite-Lived: | 30.8 | 30.6 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 484.8 | 484.5 |
Accumulated Amortization | 163.9 | 157.6 |
Existing technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 464.3 | 463.7 |
Accumulated Amortization | 80 | 71.3 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 64.9 | 64.8 |
Accumulated Amortization | 25.5 | 24 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 36.4 | 36.4 |
Accumulated Amortization | $ 28 | $ 27.3 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 40.7 | $ 51.6 |
Interest | 9.3 | 4.4 |
Environmental | 10.4 | 10.4 |
Income taxes | 13.8 | 10.7 |
Taxes other than income taxes | 5.2 | 4.6 |
Operating lease liabilities | 9.9 | 9.2 |
Other | 26.1 | 29.3 |
Accrued expenses | $ 115.4 | $ 120.2 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 3 Months Ended | |||||
Nov. 08, 2022 | Dec. 17, 2021 | Oct. 17, 2018 | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2018 | |
Line of Credit Facility | ||||||
Long-term debt | $ 786,800,000 | $ 790,700,000 | ||||
Term Loan | Line of Credit | LIBOR | ||||||
Line of Credit Facility | ||||||
Variable rate on debt (as a percent) | 1.50% | |||||
Term Loan | Line of Credit | Base Rate | ||||||
Line of Credit Facility | ||||||
Variable rate on debt (as a percent) | 0.50% | |||||
Term Loan | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Line of Credit Facility | ||||||
Variable rate on debt (as a percent) | 0.10% | |||||
Debt instrument, interest rate (as a percent) | 1.75% | |||||
364-Day Facility | Line of Credit | ||||||
Line of Credit Facility | ||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||
364-Day Facility | Line of Credit | LIBOR | ||||||
Line of Credit Facility | ||||||
Variable rate on debt (as a percent) | 1.75% | |||||
364-Day Facility | Line of Credit | Base Rate | ||||||
Line of Credit Facility | ||||||
Variable rate on debt (as a percent) | 0.75% | |||||
Line of Credit | ||||||
Line of Credit Facility | ||||||
Senior notes | 1,007,500,000 | |||||
Maximum borrowing capacity expansion threshold | $ 275,000,000 | |||||
Maximum borrowing capacity expansion threshold, percent (as a percent) | 100% | |||||
Line of Credit | Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Credit facility maximum availability (in years) | 5 years | |||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | |||||
Credit facility borrowing capacity | $ 389,200,000 | |||||
Letter of credit outstanding | 10,800,000 | |||||
Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Line of Credit Facility | ||||||
Line of credit facility, unused capacity, commitment fee (as a percent) | 0.225% | |||||
Line of Credit | Term Loan A-1 | ||||||
Line of Credit Facility | ||||||
Senior notes | $ 150,000,000 | |||||
Line of credit facility, maximum borrowing capacity | $ 142,500,000 | |||||
Debt instrument, periodic payment, years one to three, percentage of principal (as a percent) | 2.50% | |||||
Debt instrument, periodic payment, years two, percentage of principal (as a percent) | 5% | |||||
Debt instrument, periodic payment, years three, percentage of principal (as a percent) | 1.25% | |||||
Long-term debt | $ 134,900,000 | |||||
Line of Credit | Term Loan A-2 | ||||||
Line of Credit Facility | ||||||
Credit facility maximum availability (in years) | 5 years | |||||
Line of credit facility, maximum borrowing capacity | $ 315,000,000 | |||||
Debt instrument, periodic payment, years one to three, percentage of principal (as a percent) | 2.50% | |||||
Debt instrument, periodic payment, years two, percentage of principal (as a percent) | 5% | |||||
Debt instrument, periodic payment, years three, percentage of principal (as a percent) | 1.25% | |||||
Long-term debt | $ 305,300,000 | |||||
Senior Notes | ||||||
Line of Credit Facility | ||||||
Senior notes | $ 350,000,000 | |||||
Interest rate (as a percent) | 5.75% | 5.875% | ||||
Aggregate principal amount redeemed | $ 450,000,000 | |||||
Senior Notes | Before October 15, 2021 | ||||||
Line of Credit Facility | ||||||
Redemption price (as a percent) | 100% |
Pension - Schedule of Net Perio
Pension - Schedule of Net Periodic Benefit Cost (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure | ||
Service cost | $ 0.1 | $ 0.4 |
Interest cost | 3.3 | 2.4 |
Expected return on plan assets | (3.4) | (3.3) |
Amortization of net loss | 0.4 | 0.1 |
Net periodic benefit cost (benefit) | $ 0.4 | $ (0.4) |
Pension - Additional Informatio
Pension - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
U.S. | |
Defined Benefit Plan Disclosure | |
Contributions by employer | $ 0 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | $ 1,395.1 | $ 1,270.3 |
Net income attributable to EnPro Industries, Inc. | 37.4 | 16.8 |
Other comprehensive loss | 7.1 | (11.7) |
Dividends | (6.1) | (5.9) |
Incentive plan activity | 1.6 | (4.1) |
Other | 0.1 | |
Ending balance | 1,435.1 | 1,265.5 |
Redeemable Non-controlling Interests | ||
Beginning balance | 17.9 | 50.1 |
Net income | 0 | 0.3 |
Other comprehensive loss | 0 | (1) |
Other | (0.1) | |
Ending Balance | $ 17.9 | $ 49.3 |
Cash dividends per share, declared (in dollars per share) | $ 0.29 | $ 0.28 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | $ 0.2 | $ 0.2 |
Balance (in shares) | 20.8 | 20.7 |
Incentive plan activity (in shares) | 0.1 | 0.1 |
Ending balance | $ 0.2 | $ 0.2 |
Balance (in shares) | 20.9 | 20.8 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | $ 299.2 | $ 303.6 |
Incentive plan activity | 1.6 | (4.1) |
Other | 0.1 | |
Ending balance | 300.8 | 299.6 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | 1,130.2 | 953.1 |
Net income attributable to EnPro Industries, Inc. | 37.4 | 16.8 |
Dividends | (6.1) | (5.9) |
Ending balance | 1,161.5 | 964 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | (33.3) | 14.6 |
Other comprehensive loss | 7.1 | (11.7) |
Ending balance | (26.2) | 2.9 |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | (1.2) | (1.2) |
Ending balance | $ (1.2) | $ (1.2) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2023 | Feb. 28, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Oct. 31, 2022 | |
Subsequent Event | |||||
Dividends paid | $ 6.2 | $ 5.9 | |||
Cash dividends per share, declared (in dollars per share) | $ 0.29 | $ 0.28 | |||
Shares authorized for repurchase (in shares) | 50 | ||||
Shares authorized for repurchase, authorization period | 2 years | ||||
Shares authorized for repurchase, vesting period | 3 years | ||||
Employee Stock Options | |||||
Subsequent Event | |||||
Average expected term (in years) | 6 years | ||||
Fair value (in dollars per share) | $ 45.13 | ||||
Key Executives | |||||
Subsequent Event | |||||
Options issued (in shares) | 0.1 | ||||
Exercise price (in dollars per share) | $ 116.69 | ||||
Option term (in years) | 10 years | ||||
Subsequent Event | |||||
Subsequent Event | |||||
Cash dividends per share, declared (in dollars per share) | $ 0.29 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Assumptions Used (Details) - Employee Stock Options | 3 Months Ended |
Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Average expected term | 6 years |
Expected volatility | 39.75% |
Risk-free interest rate | 4.22% |
Expected dividend yield | 1.05% |
Business Segment Information -
Business Segment Information - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Segment Reporting Information | ||
Number of operating segments | segment | 2 | |
Adjusted Segment EBITDA | $ 79.2 | $ 69.2 |
Performance obligation | 294 | |
Net sales | 282.6 | 270.1 |
General industrial | ||
Segment Reporting Information | ||
Net sales | 52.7 | 50.7 |
Food and pharmaceutical | ||
Segment Reporting Information | ||
Net sales | 18.7 | 17.6 |
Power generation | ||
Segment Reporting Information | ||
Net sales | 16.1 | 13.3 |
Semiconductors | ||
Segment Reporting Information | ||
Net sales | 99.5 | 107.6 |
Sealing Technologies | ||
Segment Reporting Information | ||
Net sales | 173.3 | 153.6 |
Sealing Technologies | General industrial | ||
Segment Reporting Information | ||
Net sales | 43.9 | 42.9 |
Sealing Technologies | General industrial | Adjustment | ||
Segment Reporting Information | ||
Net sales | (1.7) | |
Sealing Technologies | Food and pharmaceutical | ||
Segment Reporting Information | ||
Net sales | 18.7 | 17.6 |
Sealing Technologies | Food and pharmaceutical | Adjustment | ||
Segment Reporting Information | ||
Net sales | (1.4) | |
Sealing Technologies | Power generation | ||
Segment Reporting Information | ||
Net sales | 16.1 | 13.2 |
Sealing Technologies | Power generation | Adjustment | ||
Segment Reporting Information | ||
Net sales | 2.8 | |
Sealing Technologies | Semiconductors | ||
Segment Reporting Information | ||
Net sales | $ 2.2 | 1.6 |
Sealing Technologies | Semiconductors | Adjustment | ||
Segment Reporting Information | ||
Net sales | $ 0.3 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Segment Reporting Information | ||
Remaining performance obligation, percentage (as a percent) | 95% | |
Remaining performance obligation, expected timing (in years) | 1 year |
Business Segment Information _2
Business Segment Information - Schedule of Segment Operating Results and Other Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information | ||
Total third-party sales | $ 282.6 | $ 270.1 |
Income from continuing operations before income taxes | 34.1 | 15.4 |
Acquisition and divestiture expenses | 0 | 0.2 |
Non-controlling interest compensation allocation | 0.4 | (0.9) |
Amortization of fair value adjustment to acquisition date inventory | 0 | 10.3 |
Restructuring and impairment expense | 0.4 | 0.3 |
Depreciation and amortization expense | 23.5 | 25.9 |
Interest expense, net | 7.9 | 6.9 |
Other income (expense), net | (1.8) | 0.6 |
Adjusted Segment EBITDA | 79.2 | 69.2 |
Sealing Technologies | ||
Segment Reporting Information | ||
Total third-party sales | 173.3 | 153.6 |
Advanced Surface Technologies | ||
Segment Reporting Information | ||
Total third-party sales | 109.3 | 116.5 |
Operating Segments | ||
Segment Reporting Information | ||
Total third-party sales | 282.7 | 270.3 |
Operating Segments | Sealing Technologies | ||
Segment Reporting Information | ||
Total third-party sales | 173.3 | 153.6 |
Adjusted Segment EBITDA | 49.7 | 34.3 |
Operating Segments | Advanced Surface Technologies | ||
Segment Reporting Information | ||
Total third-party sales | 109.4 | 116.7 |
Adjusted Segment EBITDA | 29.5 | 34.9 |
Intersegment sales | ||
Segment Reporting Information | ||
Total third-party sales | (0.1) | (0.2) |
Corporate | ||
Segment Reporting Information | ||
Corporate expenses | 10.7 | 12.9 |
Segment Reconciling Items | ||
Segment Reporting Information | ||
Other income (expense), net | $ 2.2 | $ (1.8) |
Business Segment Information _3
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information | ||
Assets | $ 2,671.5 | $ 2,647.8 |
Discontinued operations | ||
Segment Reporting Information | ||
Assets | 0 | 15.9 |
Operating Segments | Sealing Technologies | ||
Segment Reporting Information | ||
Assets | 708.5 | 689.6 |
Operating Segments | Advanced Surface Technologies | ||
Segment Reporting Information | ||
Assets | 1,514.1 | 1,519.6 |
Corporate | ||
Segment Reporting Information | ||
Assets | $ 448.9 | $ 422.7 |
Business Segment Information _4
Business Segment Information - Revenue by End Market (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue | ||
Total third-party sales | $ 282.6 | $ 270.1 |
Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 173.3 | 153.6 |
Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 109.3 | 116.5 |
Aerospace | ||
Disaggregation of Revenue | ||
Total third-party sales | 14.1 | 10.1 |
Aerospace | Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 12.5 | 8.1 |
Aerospace | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 1.6 | 2 |
Chemical and material processing | ||
Disaggregation of Revenue | ||
Total third-party sales | 21.6 | 20.3 |
Chemical and material processing | Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 21.6 | 20.3 |
Chemical and material processing | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 0 | 0 |
Food and pharmaceutical | ||
Disaggregation of Revenue | ||
Total third-party sales | 18.7 | 17.6 |
Food and pharmaceutical | Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 18.7 | 17.6 |
Food and pharmaceutical | Sealing Technologies | Adjustment | ||
Disaggregation of Revenue | ||
Total third-party sales | (1.4) | |
Food and pharmaceutical | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 0 | 0 |
General industrial | ||
Disaggregation of Revenue | ||
Total third-party sales | 52.7 | 50.7 |
General industrial | Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 43.9 | 42.9 |
General industrial | Sealing Technologies | Adjustment | ||
Disaggregation of Revenue | ||
Total third-party sales | (1.7) | |
General industrial | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 8.8 | 7.8 |
Commercial vehicle | ||
Disaggregation of Revenue | ||
Total third-party sales | 52.4 | 44.8 |
Commercial vehicle | Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 52.4 | 44.8 |
Commercial vehicle | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 0 | 0 |
Oil and gas | ||
Disaggregation of Revenue | ||
Total third-party sales | 7.5 | 5.7 |
Oil and gas | Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 5.9 | 5.1 |
Oil and gas | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 1.6 | 0.6 |
Power generation | ||
Disaggregation of Revenue | ||
Total third-party sales | 16.1 | 13.3 |
Power generation | Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 16.1 | 13.2 |
Power generation | Sealing Technologies | Adjustment | ||
Disaggregation of Revenue | ||
Total third-party sales | 2.8 | |
Power generation | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 0 | 0.1 |
Semiconductors | ||
Disaggregation of Revenue | ||
Total third-party sales | 99.5 | 107.6 |
Semiconductors | Sealing Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | 2.2 | 1.6 |
Semiconductors | Sealing Technologies | Adjustment | ||
Disaggregation of Revenue | ||
Total third-party sales | 0.3 | |
Semiconductors | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Total third-party sales | $ 97.3 | $ 106 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) € in Millions | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 EUR (€) | May 31, 2019 EUR (€) | May 31, 2019 USD ($) |
Original Swap | |||||
Derivative | |||||
Amount of hedged item | € | € 95 | ||||
Foreign Exchange Forward | |||||
Derivative | |||||
Notional amount | $ 104,800,000 | $ 103,300,000 | |||
Additional Swap | |||||
Derivative | |||||
Amount of hedged item | € | € 89.6 | ||||
Derivative liability, notional amount | $ 100,000,000 | ||||
Weighted average interest rate (as a percent) | 3.50% | 3.50% | |||
Derivative asset, noncurrent | $ 7,900,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Short-term investments | $ 35 | $ 0 |
Foreign currency derivatives | 7.9 | 8.5 |
Deferred compensation assets | 10.1 | 9.8 |
Assets | 53 | 18.3 |
Liabilities | ||
Deferred compensation liabilities | $ 10.5 | $ 10.3 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Carrying Value | $ 786.8 | $ 790.7 |
Fair Value | $ 782.7 | $ 788.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income | ||
Beginning balance | $ 1,395.1 | $ 1,270.3 |
Other comprehensive income (loss) before reclassifications | 6.8 | (12.8) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.3 | 0.1 |
Net current-period other comprehensive income (loss) | (12.7) | |
Less: other comprehensive income attributable to redeemable non-controlling interests | (1) | |
Net current-period other comprehensive income attributable to EnPro Industries, Inc. | 7.1 | (11.7) |
Ending balance | 1,435.1 | 1,265.5 |
Total | ||
Accumulated Other Comprehensive Income | ||
Beginning balance | (33.3) | 14.6 |
Net current-period other comprehensive income attributable to EnPro Industries, Inc. | 7.1 | (11.7) |
Ending balance | (26.2) | 2.9 |
Unrealized Translation Adjustments | ||
Accumulated Other Comprehensive Income | ||
Beginning balance | 11.8 | 46.7 |
Other comprehensive income (loss) before reclassifications | 6.8 | (12.8) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net current-period other comprehensive income (loss) | (12.8) | |
Less: other comprehensive income attributable to redeemable non-controlling interests | (1) | |
Net current-period other comprehensive income attributable to EnPro Industries, Inc. | 6.8 | (11.8) |
Ending balance | 18.6 | 34.9 |
Pension and Other Postretirement Plans | ||
Accumulated Other Comprehensive Income | ||
Beginning balance | (45.1) | (32.1) |
Other comprehensive income (loss) before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.3 | 0.1 |
Net current-period other comprehensive income (loss) | 0.1 | |
Less: other comprehensive income attributable to redeemable non-controlling interests | 0 | |
Net current-period other comprehensive income attributable to EnPro Industries, Inc. | 0.3 | 0.1 |
Ending balance | $ (44.8) | $ (32) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Other income (expense) | $ (1.8) | $ 0.6 |
Tax benefit | (8.1) | (3.2) |
Net income | 37.4 | 17.1 |
Reclassification Out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Total before tax | 0.4 | 0.1 |
Tax benefit | (0.1) | 0 |
Net income | 0.3 | 0.1 |
Reclassification Out of Accumulated Other Comprehensive Income | Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Other income (expense) | $ 0.4 | $ 0.1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | ||||||||
Apr. 14, 2021 USD ($) mi | Jun. 30, 2018 site | Mar. 03, 2016 USD ($) | Apr. 11, 2014 USD ($) mi | Sep. 30, 2022 USD ($) | Oct. 31, 2016 USD ($) | Mar. 31, 2023 USD ($) site mine party mi | Dec. 31, 2022 USD ($) | Oct. 18, 2021 | Apr. 30, 2015 USD ($) | |
Site Contingency | ||||||||||
Number of sites subject to remediation (sites) | site | 19 | |||||||||
Number of sites, cost in excess of 100K (sites) | site | 9 | |||||||||
Cost per site minimis threshold | $ 100,000 | |||||||||
Number of sites, discontinued operations (sites) | site | 18 | |||||||||
Number of sites, active operations (sites) | site | 1 | |||||||||
Number of sites, investigation completed (sites) | site | 16 | |||||||||
Number of sites investigation in progress (sites) | site | 3 | |||||||||
Environmental loss accrual | $ 41,200,000 | $ 42,100,000 | ||||||||
Environmental | 10,400,000 | $ 10,400,000 | ||||||||
Loss accrual | $ 28,100,000 | |||||||||
Lower Passaic River | ||||||||||
Site Contingency | ||||||||||
Portion of site subject to remediation (miles) | mi | 8 | |||||||||
Number of other potentially responsible parties | 120 | 70 | ||||||||
Estimate of cost | $ 726,000,000 | |||||||||
Estimate low end | $ 165,000,000 | |||||||||
Estimated development time (in years) | 4 years | |||||||||
Upper Nine Miles of the River | ||||||||||
Site Contingency | ||||||||||
Portion of site subject to remediation (miles) | mi | 9 | |||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 441,000,000 | |||||||||
Lower Eight Miles of River | ||||||||||
Site Contingency | ||||||||||
Environmental loss accrual | $ 700,000 | |||||||||
Settlement payment | $ 5,900,000 | |||||||||
Arizona Uranium Mines | ||||||||||
Site Contingency | ||||||||||
Environmental loss accrual | $ 12,400,000 | |||||||||
Investigative sites notice from EPA | mine | 8 | |||||||||
Percentage of expenses reimbursable by the U.S. (as a percent) | 35% | |||||||||
Future contributions from U.S. | $ 3,300,000 | |||||||||
Water Valley, Mississippi | ||||||||||
Site Contingency | ||||||||||
Loss accrual | $ 14,300,000 | |||||||||
Minimum | Lower Passaic River | ||||||||||
Site Contingency | ||||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 1,380,000,000 | $ 953,000,000 | ||||||||
Maximum | Lower Passaic River | ||||||||||
Site Contingency | ||||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 1,730,000,000 | |||||||||
Affiliated Entity | Crucible Steel Corporation | ||||||||||
Site Contingency | ||||||||||
Number of sites subject to remediation (sites) | site | 19 | |||||||||
Portion of site subject to remediation (miles) | mi | 17 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Changes in Carrying Amount of Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Movement in Standard Product Warranty Accrual | ||
Balance at beginning of year | $ 5.2 | $ 4.9 |
Net charges to expense | 0.3 | 0.4 |
Settlements made | (0.3) | (0.7) |
Balance at end of year | $ 5.2 | $ 4.6 |