Cover Page
Cover Page - shares | 3 Months Ended | |
Jul. 03, 2022 | Aug. 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 03, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-32253 | |
Entity Registrant Name | EnerSys | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-3058564 | |
Entity Address, Address Line One | 2366 Bernville Road | |
Entity Address, City or Town | Reading | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19605 | |
City Area Code | 610 | |
Local Phone Number | 208-1991 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | ENS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,658,246 | |
Entity Central Index Key | 0001289308 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 383,243 | $ 402,488 |
Accounts receivable, net of allowance for doubtful accounts: July 3, 2022 - $11,229; March 31, 2022 - $12,219 | 697,116 | 719,434 |
Inventories, net | 777,660 | 715,712 |
Prepaid and other current assets | 154,175 | 155,559 |
Total current assets | 2,012,194 | 1,993,193 |
Property, plant, and equipment, net | 489,294 | 503,264 |
Goodwill | 682,113 | 700,640 |
Other intangible assets, net | 385,449 | 396,202 |
Deferred taxes | 54,108 | 60,479 |
Other assets | 98,753 | 82,868 |
Total assets | 3,721,911 | 3,736,646 |
Current liabilities: | ||
Short-term debt | 45,628 | 55,084 |
Accounts payable | 343,340 | 393,096 |
Accrued expenses | 266,463 | 289,950 |
Total current liabilities | 655,431 | 738,130 |
Long-term debt, net of unamortized debt issuance costs | 1,376,694 | 1,243,002 |
Deferred taxes | 77,528 | 78,228 |
Other liabilities | 173,488 | 184,011 |
Total liabilities | 2,283,141 | 2,243,371 |
Commitments and contingencies | ||
Equity: | ||
Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at July 3, 2022 and at March 31, 2022 | 0 | 0 |
Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 55,770,404 shares issued and 40,652,871 shares outstanding at July 3, 2022; 55,748,924 shares issued and 40,986,658 shares outstanding at March 31, 2022 | 558 | 557 |
Additional paid-in capital | 576,294 | 571,464 |
Treasury stock at cost, 15,117,533 shares held as of July 3, 2022 and 14,762,266 shares held as of March 31, 2022 | (741,786) | (719,119) |
Retained earnings | 1,807,282 | 1,783,586 |
Contra equity - indemnification receivable | (3,620) | (3,620) |
Accumulated other comprehensive loss | (203,650) | (143,495) |
Total EnerSys stockholders’ equity | 1,435,078 | 1,489,373 |
Nonredeemable noncontrolling interests | 3,692 | 3,902 |
Total equity | 1,438,770 | 1,493,275 |
Total liabilities and equity | $ 3,721,911 | $ 3,736,646 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 11,229 | $ 12,219 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares, issued (in shares) | 0 | 0 |
Preferred stock, shares, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 135,000,000 | 135,000,000 |
Common stock, shares, issued (in shares) | 55,770,404 | 55,748,924 |
Common stock, shares, outstanding (in shares) | 40,652,871 | 40,986,658 |
Treasury stock, shares (in shares) | 15,117,533 | 14,762,266 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 898,971 | $ 814,893 |
Cost of goods sold | 713,436 | 621,674 |
Gross profit | 185,535 | 193,219 |
Operating expenses | 127,078 | 124,487 |
Restructuring and other exit charges | 8,328 | 7,832 |
Operating earnings | 50,129 | 60,900 |
Interest expense | 11,597 | 9,107 |
Other (income) expense, net | 1,773 | (496) |
Earnings before income taxes | 36,759 | 52,289 |
Income tax expense | 5,781 | 8,360 |
Net earnings attributable to EnerSys stockholders | $ 30,978 | $ 43,929 |
Net earnings per common share attributable to EnerSys stockholders: | ||
Basic (in dollars per share) | $ 0.76 | $ 1.03 |
Diluted (in dollars per share) | 0.75 | 1.01 |
Dividends per common share (in dollars per share) | $ 0.175 | $ 0.175 |
Weighted average shares of common stock outstanding: | ||
Basic (in shares) | 40,786,336 | 42,700,329 |
Diluted (in shares) | 41,352,646 | 43,537,344 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 30,978 | $ 43,929 |
Other comprehensive (loss) income: | ||
Net unrealized (loss) gain on derivative instruments, net of tax | (8,234) | 3,897 |
Pension funded status adjustment, net of tax | 89 | 240 |
Foreign currency translation adjustment | (52,220) | 15,321 |
Total other comprehensive (loss) income, net of tax | (60,365) | 19,458 |
Total comprehensive (loss) income | (29,387) | 63,387 |
Comprehensive (loss) income attributable to noncontrolling interests | (210) | 49 |
Comprehensive (loss) income attributable to EnerSys stockholders | $ (29,177) | $ 63,338 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Cash flows from operating activities | ||
Net earnings | $ 30,978 | $ 43,929 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 23,624 | 24,433 |
Write-off of assets relating to exit activities | 7,445 | 2,141 |
Derivatives not designated in hedging relationships: | ||
Net (losses) gains | (216) | 6 |
Cash (settlements) proceeds | (600) | (14) |
Provision for doubtful accounts | (173) | 1,039 |
Deferred income taxes | 20 | 145 |
Non-cash interest expense | 487 | 518 |
Stock-based compensation | 5,330 | 3,659 |
(Gain) loss on disposal of property, plant, and equipment | (40) | 4 |
Changes in assets and liabilities: | ||
Accounts receivable | 5,538 | 24,834 |
Inventories | (81,454) | (46,307) |
Prepaid and other current assets | (5,465) | (15,595) |
Other assets | (886) | 344 |
Accounts payable | (33,073) | (36,746) |
Accrued expenses | (24,973) | (50,314) |
Other liabilities | 1,567 | (219) |
Net cash used in operating activities | (71,891) | (48,143) |
Cash flows from investing activities | ||
Capital expenditures | (23,014) | (16,435) |
Proceeds from disposal of facility | 0 | 3,268 |
Proceeds from disposal of property, plant, and equipment | 139 | 49 |
Net cash used in investing activities | (22,875) | (13,118) |
Cash flows from financing activities | ||
Net (repayments) borrowings on short-term debt | (8,022) | 5,512 |
Proceeds from Second Amended Revolver borrowings | 163,200 | 65,700 |
Repayments of Second Amended Revolver borrowings | (27,200) | (5,700) |
Repayments of Second Amended Term Loan | 0 | (11,447) |
Option proceeds, net | 0 | 386 |
Payment of taxes related to net share settlement of equity awards | (633) | (4,803) |
Purchase of treasury stock | (22,907) | (31,512) |
Dividends paid to stockholders | (7,108) | (7,435) |
Other | 207 | 214 |
Net cash provided by financing activities | 97,537 | 10,915 |
Effect of exchange rate changes on cash and cash equivalents | (22,016) | 4,771 |
Net decrease in cash and cash equivalents | (19,245) | (45,575) |
Cash and cash equivalents at beginning of period | 402,488 | 451,808 |
Cash and cash equivalents at end of period | $ 383,243 | $ 406,233 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments except those otherwise described herein) considered necessary for a fair presentation have been included, unless otherwise disclosed. Operating results for the three months ended July 3, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2023. The Consolidated Condensed Balance Sheet at March 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s 2022 Annual Report on Form 10-K (SEC File No. 001-32253), which was filed on May 25, 2022 (the “2022 Annual Report”). EnerSys (the “Company”) reports interim financial information for 13-week periods, except for the first quarter, which always begins on April 1, and the fourth quarter, which always ends on March 31. The four quarters in fiscal 2023 end on July 3, 2022, October 2, 2022, January 1, 2023, and March 31, 2023, respectively. The four quarters in fiscal 2022 ended on July 4, 2021, October 3, 2021, January 2, 2022, and March 31, 2022, respectively. The consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries and any partially owned subsidiaries that the Company has the ability to control. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, including, but not limited to, the potential impacts arising from the coronavirus pandemic including its variants (“COVID-19”) and public and private sector policies and initiatives aimed at reducing its transmission. As the extent and duration of the impacts of COVID-19 remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from those estimates. Examples of significant estimates include the allowance for credit losses, the recoverability of property, plant and equipment, the incremental borrowing rate for lease liabilities, the recoverability of intangible assets and other long-lived assets, fair value measurements, including those related to financial instruments, goodwill and intangible assets, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jul. 03, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s revenues by reportable segments are presented in Note 17 and are consistent with how we organize and manage our operations, as well as product line net sales information. Service revenues related to the work performed for the Company’s customers by its maintenance technicians generally represent a separate and distinct performance obligation. Control for these services passes to the customer as the services are performed. Service revenues for the first quarter of fiscal 2023 and 2022 amounted to $99,824 and $82,518, respectively. A small portion of the Company's customer arrangements oblige the Company to create customized products for its customers that require the bundling of both products and services into a single performance obligation because the individual products and services that are required to fulfill the customer requirements do not meet the definition for a distinct performance obligation. These customized products generally have no alternative use to the Company and the terms and conditions of these arrangements give the Company the enforceable right to payment for performance completed to date, including a reasonable profit margin. For these arrangements, control transfers over time and the Company measures progress towards completion by selecting the input or output method that best depicts the transfer of control of the underlying goods and services to the customer for each respective arrangement. Methods used by the Company to measure progress toward completion include labor hours, costs incurred and units of production. Revenues recognized over time for the first quarter of fiscal 2023 and 2022 amounted to $57,004 and $40,904, respectively. On July 3, 2022, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $187,522, of which, the Company estimates that approximately $159,653 will be recognized as revenue in fiscal 2023, $24,579 in fiscal 2024, and $3,290 in fiscal 2025. Any payments that are received from a customer in advance, prior to the satisfaction of a related performance obligation and billings in excess of revenue recognized, are deferred and treated as a contract liability. Advance payments and billings in excess of revenue recognized are classified as current or non-current based on the timing of when recognition of revenue is expected. As of July 3, 2022, the current and non-current portion of contract liabilities were $27,733 and $1,266, respectively. As of March 31, 2022, the current and non-current portion of contract liabilities were $27,870 and $1,387, respectively. Revenues recognized during the first quarter of fiscal 2023 and 2022 that were included in the contract liability at the beginning of the quarter, amounted to $4,590 and $3,596, respectively. Amounts representing work completed and not billed to customers represent contract assets and were $66,643 and $59,924 as of July 3, 2022 and March 31, 2022, respectively. The Company uses historic customer product return data as a basis of estimation for customer returns and records the reduction of sales at the time revenue is recognized. At July 3, 2022, the right of return asset related to the value of inventory anticipated to be returned from customers was $4,605 and refund liability representing amounts estimated to be refunded to customers was $8,053. |
Leases
Leases | 3 Months Ended |
Jul. 03, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years. Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized on a straight-line basis over the lease term. The following table presents lease assets and liabilities and their balance sheet classification: Classification As of July 3, 2022 As of March 31, 2022 Operating Leases: Right-of-use assets Other assets $ 68,504 $ 71,085 Operating lease current liabilities Accrued expenses 21,303 20,086 Operating lease non-current liabilities Other liabilities 49,475 52,904 Finance Leases: Right-of-use assets Property, plant, and equipment, net $ 279 $ 344 Finance lease current liabilities Accrued expenses 164 185 Finance lease non-current liabilities Other liabilities 180 231 The components of lease expense for the first quarter ended July 3, 2022 and July 4, 2021 were as follows: Quarter ended Classification July 3, 2022 July 4, 2021 Operating Leases: Operating lease cost Operating expenses $ 6,584 $ 6,716 Variable lease cost Operating expenses 3,407 2,573 Short term lease cost Operating expenses 1,438 1,817 Finance Leases: Depreciation Operating expenses $ 52 $ 60 Interest expense Interest expense 4 8 Total $ 11,485 $ 11,174 The following table presents the weighted average lease term and discount rates for leases as of July 3, 2022 and March 31, 2022: July 3, 2022 March 31, 2022 Operating Leases: Weighted average remaining lease term (years) 5.9 years 6.1 years Weighted average discount rate 4.49% 4.43% Finance Leases: Weighted average remaining lease term (years) 2.2 years 2.3 years Weighted average discount rate 4.78% 4.79% The following table presents future payments due under leases reconciled to lease liabilities as of July 3, 2022: Finance Leases Operating Leases Nine months ended March 31, 2023 $ 143 $ 18,345 Year ended March 31, 2024 145 18,311 2025 44 13,009 2026 24 9,296 2027 — 7,196 Thereafter — 16,446 Total undiscounted lease payments 356 82,603 Present value discount 12 11,825 Lease liability $ 344 $ 70,778 The following table presents supplemental disclosures of cash flow information related to leases for the first quarter July 3, 2022 and July 4, 2021: Quarter ended July 3, 2022 July 4, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 4 $ 8 Operating cash flows from operating leases 6,334 6,765 Financing cash flows from finance leases 52 60 Supplemental non-cash information on lease liabilities arising from right-of-use assets: Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Right-of-use assets obtained in exchange for new operating lease liabilities 2,773 3,681 |
Leases | Leases The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years. Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized on a straight-line basis over the lease term. The following table presents lease assets and liabilities and their balance sheet classification: Classification As of July 3, 2022 As of March 31, 2022 Operating Leases: Right-of-use assets Other assets $ 68,504 $ 71,085 Operating lease current liabilities Accrued expenses 21,303 20,086 Operating lease non-current liabilities Other liabilities 49,475 52,904 Finance Leases: Right-of-use assets Property, plant, and equipment, net $ 279 $ 344 Finance lease current liabilities Accrued expenses 164 185 Finance lease non-current liabilities Other liabilities 180 231 The components of lease expense for the first quarter ended July 3, 2022 and July 4, 2021 were as follows: Quarter ended Classification July 3, 2022 July 4, 2021 Operating Leases: Operating lease cost Operating expenses $ 6,584 $ 6,716 Variable lease cost Operating expenses 3,407 2,573 Short term lease cost Operating expenses 1,438 1,817 Finance Leases: Depreciation Operating expenses $ 52 $ 60 Interest expense Interest expense 4 8 Total $ 11,485 $ 11,174 The following table presents the weighted average lease term and discount rates for leases as of July 3, 2022 and March 31, 2022: July 3, 2022 March 31, 2022 Operating Leases: Weighted average remaining lease term (years) 5.9 years 6.1 years Weighted average discount rate 4.49% 4.43% Finance Leases: Weighted average remaining lease term (years) 2.2 years 2.3 years Weighted average discount rate 4.78% 4.79% The following table presents future payments due under leases reconciled to lease liabilities as of July 3, 2022: Finance Leases Operating Leases Nine months ended March 31, 2023 $ 143 $ 18,345 Year ended March 31, 2024 145 18,311 2025 44 13,009 2026 24 9,296 2027 — 7,196 Thereafter — 16,446 Total undiscounted lease payments 356 82,603 Present value discount 12 11,825 Lease liability $ 344 $ 70,778 The following table presents supplemental disclosures of cash flow information related to leases for the first quarter July 3, 2022 and July 4, 2021: Quarter ended July 3, 2022 July 4, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 4 $ 8 Operating cash flows from operating leases 6,334 6,765 Financing cash flows from finance leases 52 60 Supplemental non-cash information on lease liabilities arising from right-of-use assets: Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Right-of-use assets obtained in exchange for new operating lease liabilities 2,773 3,681 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jul. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Other Intangible Assets Information regarding the Company’s other intangible assets are as follows: Balance as of July 3, 2022 March 31, 2022 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Indefinite-lived intangible assets: Trademarks $ 145,188 $ (953) $ 144,235 $ 145,808 $ (953) $ 144,855 Finite-lived intangible assets: Customer relationships 296,853 (115,309) 181,544 298,577 (109,820) 188,757 Non-compete 2,825 (2,825) — 2,825 (2,825) — Technology 97,054 (40,947) 56,107 97,367 (38,712) 58,655 Trademarks 8,933 (5,370) 3,563 8,947 (5,012) 3,935 Licenses 1,196 (1,196) — 1,196 (1,196) — Total $ 552,049 $ (166,600) $ 385,449 $ 554,720 $ (158,518) $ 396,202 The Company’s amortization expense related to finite-lived intangible assets was $8,082 for the first quarter of fiscal 2023, compared to $8,419 for the first quarter of fiscal 2022. The expected amortization expense based on the finite-lived intangible assets as of July 3, 2022, is $22,643 for the remainder of fiscal 2023, $27,691 in fiscal 2024, $26,550 in fiscal 2025, $25,616 in fiscal 2026 and $24,822 in fiscal 2027. Goodwill The following table presents the amount of goodwill, as well as any changes in the carrying amount of goodwill by segment during the current quarter of fiscal 2023: Energy Systems Motive Power Specialty Total Balance at March 31, 2022 $ 279,461 $ 323,303 $ 97,876 $ 700,640 Foreign currency translation adjustment (11,735) (5,440) (1,352) (18,527) Balance as of July 3, 2022 $ 267,726 $ 317,863 $ 96,524 $ 682,113 |
Inventories
Inventories | 3 Months Ended |
Jul. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories July 3, 2022 March 31, 2022 Raw materials $ 295,354 $ 260,604 Work-in-process 118,762 109,441 Finished goods 363,544 345,667 Total $ 777,660 $ 715,712 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Jul. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Recurring Fair Value Measurements The following tables represent the financial assets and (liabilities) measured at fair value on a recurring basis as of July 3, 2022 and March 31, 2022, and the basis for that measurement: Total Fair Value Measurement July 3, 2022 Quoted Price in Significant Significant Lead forward contracts $ (5,431) $ — $ (5,431) $ — Foreign currency forward contracts 244 — 244 — Net investment hedges 22,635 — 22,635 — Total derivatives $ 17,448 $ — $ 17,448 $ — Total Fair Value Measurement March 31, 2022 Quoted Price in Significant Significant Lead forward contracts $ 2,520 $ — $ 2,520 $ — Foreign currency forward contracts (256) — (256) — Net investment hedges 298 — 298 — Total derivatives $ 2,562 $ — $ 2,562 $ — The fair values of lead forward contracts are calculated using observable prices for lead as quoted on the London Metal Exchange (“LME”) and, therefore, were classified as Level 2 within the fair value hierarchy, as described in Note 1- Summary of Significant Accounting Policies to the Company's Consolidated Financial Statements included in the 2022 Annual Report. The fair values for foreign currency forward contracts and net investment hedges are based upon current quoted market prices and are classified as Level 2 based on the nature of the underlying market in which these derivatives are traded. Financial Instruments The fair values of the Company’s cash and cash equivalents approximate carrying value due to their short maturities. The fair value of the Company’s short-term debt and borrowings under the Second Amended Credit Facility (as defined in Note 12), approximate their respective carrying value, as they are variable rate debt and the terms are comparable to market terms as of the balance sheet dates and are classified as Level 2. In fiscal 2020, the Company issued its 4.375% Senior Notes due December 15, 2027 (the “2027 Notes”), with an original face value of $300,000. The Company's 5.00% Senior Notes due April 30, 2023 (the “2023 Notes”), with an original face value of $300,000, were issued in fiscal 2016. The fair value of the 2027 Notes and 2023 Notes (collectively, the “Senior Notes”) represent the trading values based upon quoted market prices and are classified as Level 2. The 2027 Notes were trading at approximately 88% and 95% of face value on July 3, 2022 and March 31, 2022, respectively. The 2023 Notes were trading at approximately 99% and 101% of face value on July 3, 2022 and March 31, 2022, respectively. The carrying amounts and estimated fair values of the Company’s derivatives and Senior Notes at July 3, 2022 and March 31, 2022 were as follows: July 3, 2022 March 31, 2022 Carrying Fair Value Carrying Fair Value Financial assets: Derivatives (1) $ 17,448 $ 17,448 $ 2,562 $ 2,562 Financial liabilities: Senior Notes (2) $ 600,000 $ 560,250 $ 600,000 $ 585,750 (1) Represents lead, foreign currency forward contracts and net investment hedges (see Note 7 for asset and liability positions of the lead, foreign currency forward contracts and net investment hedges at July 3, 2022 and March 31, 2022). (2) The fair value amount of the Senior Notes at July 3, 2022 and March 31, 2022 represent the trading value of the instruments. Non-recurring fair value measurements On June 29, 2022, the Company committed to a plan to close its facility in Ooltewah, Tennessee, which focused on manufacturing flooded motive power batteries for electric forklifts. Management determined that future demand for traditional motive power flooded cells will decrease as customers transition to maintenance free product solutions in lithium and Thin Plate Pure Lead (TPPL). As a result, the Company concluded that the carrying value of the asset group was not recoverable and recorded during the current quarter of fiscal 2023 a write-off of $7,300 of the fixed assets, for which there is expected to be no salvageable value. The valuation technique used to measure the fair value of fixed assets was a combination of the income and market approaches. The inputs used to measure the fair value of these fixed assets under the income approach were largely unobservable and accordingly were classified as Level 3. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Jul. 03, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company utilizes derivative instruments to reduce its exposure to fluctuations in commodity prices, foreign exchange rates and interest, under established procedures and controls. The Company does not enter into derivative contracts for speculative purposes. The Company’s agreements are with creditworthy financial institutions and the Company anticipates performance by counterparties to these contracts and therefore no material loss is expected. Derivatives in Cash Flow Hedging Relationships Lead Forward Contracts The Company enters into lead forward contracts to fix the price for a portion of its lead purchases. Management considers the lead forward contracts to be effective against changes in the cash flows of the underlying lead purchases. The vast majority of such contracts are for a period not extending beyond one year. At July 3, 2022 and March 31, 2022, the Company has hedged the price to purchase approximately 55.5 million pounds and 54.0 million pounds of lead, respectively, for a total purchase price of $54,078 and $56,768, respectively. Foreign Currency Forward Contracts The Company uses foreign currency forward contracts and options to hedge a portion of the Company’s foreign currency exposures for lead, as well as other foreign currency exposures so that gains and losses on these contracts offset changes in the underlying foreign currency denominated exposures. The vast majority of such contracts are for a period not extending beyond one year. As of July 3, 2022 and March 31, 2022, the Company had entered into a total of $33,463 and $29,676, respectively, of such contracts. Derivatives in Net Investment Hedging Relationships Net Investment Hedges On December 23, 2021, the Company entered into cross currency fixed interest rate swap agreements, with aggregate notional amounts of $300,000, to hedge its net investments in foreign operations against future volatility in the exchange rates between U.S. dollars and euros. These swaps mature on December 15, 2027 and qualify for hedge accounting as a net investment hedging instrument, which allows the swaps to be remeasured to foreign currency translation adjustment within AOCI (“Accumulated Other Comprehensive Income”) to offset the translation risk from those investments. Balances in the foreign currency translation adjustment accounts remain until the sale or substantially complete liquidation of the foreign entity, upon which they are recognized as a component of income (expense). Impact of Hedging Instruments on AOCI In the coming twelve months, the Company anticipates that $1,714 of pretax loss relating to lead, foreign currency forward contracts and net investment hedges will be reclassified from AOCI as part of cost of goods sold and interest expense. This amount represents the current net unrealized impact of hedging lead, foreign exchange rates and interest rates, which will change as market rates change in the future. This amount will ultimately be realized in the Consolidated Condensed Statements of Income as an offset to the corresponding actual changes in lead, foreign exchange rates and interest costs resulting from variable lead cost, foreign exchange and interest rates hedged. Derivatives not Designated in Hedging Relationships Foreign Currency Forward Contracts The Company also enters into foreign currency forward contracts to economically hedge foreign currency fluctuations on intercompany loans and foreign currency denominated receivables and payables. These are not designated as hedging instruments and changes in fair value of these instruments are recorded directly in the Consolidated Condensed Statements of Income. As of July 3, 2022 and March 31, 2022, the notional amount of these contracts was $51,256 and $22,990, respectively. Presented below in tabular form is information on the location and amounts of derivative fair values in the Consolidated Condensed Balance Sheets and derivative gains and losses in the Consolidated Condensed Statements of Income: Fair Value of Derivative Instruments July 3, 2022 and March 31, 2022 Derivatives and Hedging Activities Designated as Cash Flow Hedges Derivatives and Hedging Activities Designated as Net Investment Hedges Derivatives and Hedging Activities Not Designated as Hedging Instruments July 3, 2022 March 31, 2022 July 3, 2022 March 31, 2022 July 3, 2022 March 31, 2022 Prepaid and other current assets: Lead forward contracts $ — $ 2,520 $ — $ — $ — $ — Foreign currency forward contracts 475 256 — — — — Net investment hedges — — 5,041 4,388 — — Other assets: Net investment hedges — — 17,594 — — — Total assets $ 475 $ 2,776 $ 22,635 $ 4,388 $ — $ — Accrued expenses: Lead forward contracts $ 5,431 $ — $ — $ — $ — $ — Foreign currency forward contracts — — — — 231 512 Other liabilities: Net investment hedges — — — 4,090 — — Total liabilities $ 5,431 $ — $ — $ 4,090 $ 231 $ 512 The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 3, 2022 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ (10,862) Cost of goods sold $ 695 Foreign currency forward contracts 1,255 Cost of goods sold 446 Total $ (9,607) $ 1,141 Derivatives Designated as Net Investment Hedges Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Cross currency fixed interest rate swaps $ 23,595 Interest expense $ 1,258 Total $ 23,595 $ 1,258 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ 216 Total $ 216 The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 4, 2021 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ 7,572 Cost of goods sold $ 2,459 Foreign currency forward contracts (189) Cost of goods sold (160) Total $ 7,383 $ 2,299 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ (6) Total $ (6) |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax provision consists of federal, state and foreign income taxes. The tax provision for the first quarter of fiscal 2023 and 2022 was based on the estimated effective tax rates applicable for the full years ending March 31, 2023 and March 31, 2022, respectively, after giving effect to items specifically related to the interim periods. The Company’s effective income tax rate with respect to any period may be volatile based on the mix of income in the tax jurisdictions, in which the Company operates, change in tax laws and the amount of the Company's consolidated earnings before taxes. The consolidated effective income tax rates for the first quarter of fiscal 2023 and 2022 were 15.7% and 16.0%. The rate decrease in the first quarter compared to the prior quarter is primarily due to changes in the mix of earnings among tax jurisdictions. |
Warranty
Warranty | 3 Months Ended |
Jul. 03, 2022 | |
Product Warranties Disclosures [Abstract] | |
Warranty | Warranty The Company provides for estimated product warranty expenses when products are sold, with related liabilities included within accrued expenses and other liabilities. As warranty estimates are forecasts that are based on the best available information, primarily historical claims experience, costs of claims may ultimately differ from amounts provided. An analysis of changes in the liability for product warranties is as follows: Quarter ended July 3, 2022 July 4, 2021 Balance at beginning of period $ 54,978 $ 58,962 Current period provisions 4,940 5,330 Costs incurred (5,744) (5,252) Foreign currency translation adjustment (1,220) 127 Balance at end of period $ 52,954 $ 59,167 |
Commitments, Contingencies and
Commitments, Contingencies and Litigation | 3 Months Ended |
Jul. 03, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Litigation | Commitments, Contingencies and Litigation Litigation and Other Legal Matters In the ordinary course of business, the Company and its subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings are generally based on alleged violations of environmental, anticompetition, employment, contract and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company and its subsidiaries. In the ordinary course of business, the Company and its subsidiaries are also subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. In connection with formal and informal inquiries by federal, state, local and foreign agencies, the Company and its subsidiaries receive numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of their activities. European Competition Investigations Certain of the Company’s European subsidiaries had received subpoenas and requests for documents and, in some cases, interviews from, and have had on-site inspections conducted by, the competition authorities of Belgium, Germany and the Netherlands relating to conduct and anticompetitive practices of certain industrial battery participants. For additional information regarding these matters, see Note 19 - Commitments, Contingencies and Litigation to the Consolidated Financial Statements contained in the 2022 Annual Report. As of July 3, 2022 and March 31, 2022, the Company did not have a reserve balance related to these matters. The precise scope, timing and time period at issue, as well as the final outcome of the investigations or customer claims, remain uncertain. Accordingly, the Company’s estimate may change from time to time, and actual losses could vary. Environmental Issues As a result of its operations, the Company is subject to various federal, state, and local, as well as international environmental laws and regulations and is exposed to the costs and risks of registering, handling, processing, storing, transporting, and disposing of hazardous substances, especially lead and acid. The Company’s operations are also subject to federal, state, local and international occupational safety and health regulations, including laws and regulations relating to exposure to lead in the workplace. The Company believes that it has adequate reserves to satisfy its environmental liabilities. Lead, Foreign Currency Forward Contracts and Swaps To stabilize its lead costs and reduce volatility from currency and interest rate movements, the Company entered into contracts with financial institutions. The vast majority of lead and foreign currency contracts are for a period not extending beyond one year. The Company also entered into cross currency fixed interest rate swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between U.S. dollars and euros and these agreements mature on December 15, 2027. Please refer to Note 7 - Derivative Financial Instruments |
Restructuring and other Exit Ch
Restructuring and other Exit Charges | 3 Months Ended |
Jul. 03, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other Exit Charges | Restructuring and other Exit Charges Restructuring Programs As disclosed in the 2022 Annual Report, the Company committed to restructuring plans aimed at improv ing operational efficiencies across its lines of business. A substantial portion of these plans are complete with an estimated $717 remai ning to be incurred by the end of fiscal 2023, mainly related to plans started i n fiscal 2021. Restructuring and exit charges for the first quarter of fiscal 2023 by reportable segments are as follows: Quarter ended July 3, 2022 Energy Systems Motive Power Specialty Total Restructuring charges $ 162 $ — $ — $ 162 Exit charges — 8,166 — 8,166 Restructuring and other exit charges $ 162 $ 8,166 $ — $ 8,328 A roll-forward of the restructuring reserve, excluding exit charges, is as follows: Balance as of March 31, 2022 $ 1,030 Accrued 162 Costs incurred (417) Foreign currency impact (58) Balance as of July 3, 2022 $ 717 Exit Charges Fiscal 2023 Program On June 29, 2022, the Company committed to a plan to close its facility in Ooltewah, Tennessee, which produces flooded motive power batteries for electric forklifts. Management determined that future demand for traditional motive power flooded cells will decrease as customers transition to maintenance free product solutions in lithium and Thin Plate Pure Lead (TPPL). The Company currently estimates that the total charges for these actions will amount to approximately $18,500, of which $7,300 of non-cash charges relating to fixed asset write-offs were recorded during the current quarter ended July 3, 2022. Cash charges for employee severance related payments, cleanup related to the facility, contractual releases and legal expenses are estimated to be $9,200 and other non-cash charges are estimated to be $2,000. These actions will result in the reduction of approximately 165 employees. The plan is expected to be completed by calendar 2023. Fiscal 2022 Program Hagen, Germany In fiscal 2021, the Company's Board of Directors approved a plan to close substantially all of its facility in Hagen, Germany, which produces flooded motive power batteries for electric forklifts. Management determined that future demand for the motive power batteries produced at this facility was not sufficient, given the conversion from flooded to maintenance free batteries by customers, the existing number of competitors in the market, as well as the near term decline in demand and increased uncertainty from the pandemic. The Company plans to retain the facility with limited sales, service and administrative functions along with related personnel for the foreseeable future. The Company currently estimates that the total charges for these actions will amount to approximately $60,000, of which cash charges for employee severance related payments, cleanup related to the facility, contractual releases and legal expenses were estimated to be $40,000 and non-cash charges from inventory and equipment write-offs were estimated to be $20,000. The majority of these charges were recorded as of March 31, 2022. These actions resulted in the reduction of approximately 200 employees. During fiscal 2021, the Company recorded cash charges relating to severance of $23,331 and non-cash charges of $7,946 primarily relating to fixed asset write-offs. During fiscal 2022, the Company recorded cash charges primarily relating to severance of $8,069 and non-cash charges of $3,522 primarily relating to fixed asset write-offs. The Company also recorded a non-cash write off relating to inventories of $960, which was reported in cost of goods sold. During the first quarter of fiscal 2023, the Company recorded cash charges of $721 relating to site clean up and $145 of non-cash charges relating to accelerated depreciation of fixed assets. Targovishte, Bulgaria During fiscal 2019, the Company committed to a plan to close its facility in Targovishte, Bulgaria, which produced diesel-electric submarine batteries. Management determined that the future demand for batteries of diesel-electric submarines was not sufficient given the number of competitors in the market. Of the estimated total charges of $26,000 for this plan, the Company had recorded charges amounting to $20,242 in fiscal 2019, relating to severance and inventory and fixed asset write-offs and an additional $5,123 relating to cash and non-cash charges during fiscal 2020. During fiscal 2021, in keeping with its strategy of exiting the manufacture of batteries for diesel-electric submarines, the Company completed further actions which resulted in $220 relating to cash and non-cash charges. During the first quarter of fiscal 2022, the Company sold this facility for $1,489. A net gain of $1,208 was recorded as a credit to exit charges in the Consolidated Condensed Statement of Income. Zamudio, Spain |
Debt
Debt | 3 Months Ended |
Jul. 03, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following summarizes the Company’s long-term debt as of July 3, 2022 and March 31, 2022: July 3, 2022 March 31, 2022 Principal Unamortized Issuance Costs Principal Unamortized Issuance Costs Senior Notes $ 600,000 $ 3,605 $ 600,000 $ 3,905 Second Amended Credit Facility, due 2026 783,473 3,174 650,268 3,361 $ 1,383,473 $ 6,779 $ 1,250,268 $ 7,266 Less: Unamortized issuance costs 6,779 7,266 Long-term debt, net of unamortized issuance costs $ 1,376,694 $ 1,243,002 The Company's Senior Notes comprise the following: 4.375% Senior Notes due 2027 On December 11, 2019, the Company issued $300,000 in aggregate principal amount of its 4.375% Senior Notes due December 15, 2027 (the “2027 Notes”). Proceeds from this offering, net of debt issuance costs were $296,250 and were utilized to pay down the Amended 2017 Revolver (defined below). The 2027 Notes bear interest at a rate of 4.375% per annum accruing from December 11, 2019. Interest is payable semiannually in arrears on June 15 and December 15 of each year, commencing on June 15, 2020. The 2027 Notes mature on December 15, 2027, unless earlier redeemed or repurchased in full and are unsecured and unsubordinated obligations of the Company. They are fully and unconditionally guaranteed, jointly and severally, by certain of its subsidiaries that are guarantors under the Second Amended Credit Facility (defined below). These guarantees are unsecured and unsubordinated obligations of such guarantors. The Company may redeem, prior to September 15, 2027, all or a portion of the 2027 Notes at a price equal to 100% of the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid interest and a “make whole” premium to, but excluding, the redemption date. The Company may redeem, on or after September 15, 2027, all or a portion of the 2027 Notes at a price equal to 100% of the principal amount of the 2027 Notes, plus accrued and unpaid interest to, but excluding, the redemption date. If a change of control triggering event occurs, the Company will be required to offer to repurchase the 2027 Notes at a price in cash equal to 101% of the aggregate principal amount of the 2027 Notes, plus accrued and unpaid interest to, but excluding, the date of repurchase. The 2027 Notes rank pari passu with the 2023 Notes (defined below). 5.00% Senior Notes due 2023 The 5% Senior Notes due April 30, 2023 (the “2023 Notes”) bear interest at a rate of 5.00% per annum and have an original face value of $300,000. Interest is payable semiannually in arrears on April 30 and October 30 of each year and commenced on October 30, 2015. The 2023 Notes will mature on April 30, 2023, unless earlier redeemed or repurchased in full. The 2023 Notes are unsecured and unsubordinated obligations of the Company. The 2023 Notes are fully and unconditionally guaranteed, jointly and severally, by certain of its subsidiaries that are guarantors under the Second Amended Credit Facility. These guarantees are unsecured and unsubordinated obligations of such guarantors. 2017 Credit Facility and Subsequent Amendments In fiscal 2018, the Company entered into a credit facility (the “2017 Credit Facility”). The 2017 Credit Facility was scheduled to mature on September 30, 2022, initially comprised a $600,000 senior secured revolving credit facility (“2017 Revolver”) and a $150,000 senior secured term loan (“2017 Term Loan”). The Company utilized the borrowings from the 2017 Credit Facility to repay its pre-existing credit facility. In fiscal 2019, the Company amended the 2017 Credit Facility (as amended, the “Amended Credit Facility”) to fund the Alpha acquisition. The Amended Credit Facility consisted of $449,105 senior secured term loans (the “Amended Term Loan”), including a CAD 133,050 ($99,105) senior secured term loan and a $700,000 senior secured revolving credit facility (the “Amended Revolver”). The amendment resulted in an increase of the 2017 Term Loan and the 2017 Revolver by $299,105 and $100,000, respectively. During the second quarter of fiscal 2022, the Company entered into a second amendment to the Amended Credit Facility (as amended, the “Second Amended Credit Facility”). The Second Amended Credit Facility, scheduled to mature on September 30, 2026, consists of a $130,000 senior secured term loan (the “Second Amended Term Loan”), a CAD 106,440 ($84,229) senior secured term loan and an $850,000 senior secured revolving credit facility (the “Second Amended Revolver”). The second amendment resulted in a decrease of the Amended Term Loan by $150,000 and an increase of the Amended Revolver by $150,000. Subsequent to the second amendment, the quarterly installments payable on the Second Amended Term Loan are $2,656 beginning December 31, 2022, $3,984 beginning December 31, 2024 and $5,312 beginning December 31, 2025 with a final payment of $159,355 on September 30, 2026. The Second Amended Credit Facility may be increased by an aggregate amount of $350,000 in revolving commitments and / or one or more new tranches of term loans, under certain conditions. Both the Second Amended Revolver and the Second Amended Term Loan bear interest, at the Company's option, at a rate per annum equal to either (i) the London Interbank Offered Rate (“LIBOR”) or Canadian Dollar Offered Rate (“CDOR”) plus (i) LIBOR plus between 1.125% and 2.00% (currently 1.75% and based on the Company's consolidated net leverage ratio) or (ii) the U.S. Dollar Base Rate (which equals, for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 0.50%, (b) Bank of America “Prime Rate” and (c) the Eurocurrency Base Rate plus 1%; provided that, if the Base Rate shall be less than zero, such rate shall be deemed zero) (iii) the CDOR Base Rate equal to the higher of (a) Bank of America “Prime Rate” and (b) average 30-day CDOR rate plus 0.50%. The Second Amended Credit Facility provides for alternate benchmark rates such as the Secured Overnight Financing Rate (“SOFR”) to replace LIBOR when it is phased out. Obligations under the Second Amended Credit Facility are secured by substantially all of the Company’s existing and future acquired assets, including substantially all of the capital stock of the Company’s United States subsidiaries that are guarantors under the Second Amended Credit Facility and up to 65% of the capital stock of certain of the Company’s foreign subsidiaries that are owned by the Company’s United States subsidiaries. The Second Amended Credit Facility allows for up to two temporary increases in the maximum leverage ratio from 3.50x to 4.00x for a four quarter period following an acquisition larger than $250,000. As of July 3, 2022, the Company had $571,000 outstanding under the Second Amended Revolver and $212,473 under the Second Amended Term Loan. Current Portion of Debt The current portion of the Second Amended Term Loan and the 2023 Notes are $7,969 and $300,000, respectively, and are classified as long-term debt, as the Company expects to refinance the future quarterly payments and redemption of the 2023 Notes with borrowings under the Second Amended Credit Facility. Short-Term Debt As of July 3, 2022 and March 31, 2022, the Company had $45,628 and $55,084, respectively, of short-term borrowings. The weighted average interest rate on these borrowings was approximat ely 4.3% and 2.4%, respectively, at July 3, 2022 and March 31, 2022. Letters of Credit As of July 3, 2022 and March 31, 2022, the Company had $2,959 of standby letters of credit. Debt Issuance Costs Amortization expense, relating to debt issuance costs, included in interest expense was $487 and $518, respectively, for the first quarter ended July 3, 2022 and July 4, 2021. Debt issuance costs, net of accumulated amortization, totaled $6,779 and $7,266, respectively, at July 3, 2022 and March 31, 2022. Available Lines of Credit As of July 3, 2022 and March 31, 2022, the Company had available and undrawn, under all its lines of credit, $353,074 and $482,305, respectively, including $76,199 and $69,430, respectively, of uncommitted lines of credit. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Jul. 03, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The following tables present the components of the Company’s net periodic benefit cost related to its defined benefit pension plans: United States Plans International Plans Quarter ended Quarter ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Service cost $ — $ — $ 235 $ 299 Interest cost 145 130 440 366 Expected return on plan assets (119) (128) (517) (563) Amortization and deferral — 5 123 303 Net periodic benefit cost $ 26 $ 7 $ 281 $ 405 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jul. 03, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of July 3, 2022, the Company maintains the 2017 Equity Incentive Plan as amended from time to time (“2017 EIP”). The 2017 EIP reserved 4,173,554 shares of common stock for the grant of various classes of nonqualified stock options, restricted stock units, market condition-based on total shareholder return (“TSR”) and performance condition-based share units (“PSU”) and other forms of equity-based compensation. The Company recognized stock-based compensation expense associated with its equity incentive plans of $5,330 for the first quarter of fiscal 2023 and $3,659 for the first quarter of fiscal 2022. The Company recognizes compensation expense using the straight-line method over the vesting period of the awards. During the first quarter of fiscal 2023, the Company granted to non-employee directors 2,129 restricted stock units, under the deferred compensation plan for non-employee directors. The awards vest immediately upon the date of grant and are settled in shares of common stock. During the first quarter of fiscal 2023, the Company granted to management and other key employees 1,157 restricted stock units that vest ratably over four years from the date of grant. Common stock activity during the first quarter of fiscal 2023 included the exercise of 2,343 stock options and the vesting of 31,516 restricted stock units. |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 3 Months Ended |
Jul. 03, 2022 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | Stockholders’ Equity and Noncontrolling Interests Common Stock The following demonstrates the change in the number of shares of common stock outstanding during the first quarter ended July 3, 2022: Shares outstanding as of March 31, 2022 40,986,658 Purchase of treasury stock (358,365) Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes 24,578 Shares outstanding as of July 3, 2022 40,652,871 Treasury Stock During the first quarter ended July 3, 2022, the Company purchased 358,365 shares for $22,907 and 329,008 shares for $31,512 during the first quarter ended July 4, 2021. At July 3, 2022 and March 31, 2022, the Company held 15,117,533 and 14,762,266 shares as treasury stock, respectively. During the first quarter ended July 3, 2022, the Company also issued 3,098 shares out of its treasury stock, valued at $62.55 per share, on a LIFO basis, to participants under the Company's Employee Stock Purchase Plan. Accumulated Other Comprehensive Income ( “ AOCI ” ) The components of AOCI, net of tax, as of July 3, 2022 and March 31, 2022, are as follows: March 31, 2022 Before Reclassifications Amounts Reclassified from AOCI July 3, 2022 Pension funded status adjustment $ (12,637) $ — $ 89 $ (12,548) Net unrealized gain (loss) on derivative instruments 2,963 (7,360) (874) (5,271) Foreign currency translation adjustment (1) (133,821) (52,010) — (185,831) Accumulated other comprehensive (loss) income $ (143,495) $ (59,370) $ (785) $ (203,650) (1) Foreign currency translation adjustment for the first quarter ended July 3, 2022 includes a $17,115 gain (net of taxes of $5,222) relating to the net investment hedges entered into by the Company on December 23, 2021. The following table presents reclassifications from AOCI during the first quarter ended July 3, 2022: Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in cash flow hedging relationships: Net unrealized gain on derivative instruments $ (1,141) Cost of goods sold Tax expense 267 Net unrealized gain on derivative instruments, net of tax $ (874) Derivatives in net investment hedging relationships: Net unrealized gain on derivative instruments $ (1,258) Interest expense Tax expense 294 Net unrealized gain on derivative instruments, net of tax $ (964) Defined benefit pension costs: Prior service costs and deferrals $ 123 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (34) Net periodic benefit cost, net of tax $ 89 The following table presents reclassifications from AOCI during the first quarter ended July 4, 2021: Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in cash flow hedging relationships: Net unrealized gain on derivative instruments $ (2,299) Cost of goods sold Tax expense 539 Net unrealized gain on derivative instruments, net of tax $ (1,760) Defined benefit pension costs: Prior service costs and deferrals $ 308 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (68) Net periodic benefit cost, net of tax $ 240 The following demonstrates the change in equity attributable to EnerSys stockholders and nonredeemable noncontrolling interests during the first quarter ended July 3, 2022: (In Thousands , Except Per Share Data) Preferred Common Additional Paid-in Treasury Retained Accumulated Contra-Equity Total Non- Total Balance at March 31, 2022 $ — $ 557 $ 571,464 $ (719,119) $ 1,783,586 $ (143,495) $ (3,620) $ 1,489,373 $ 3,902 $ 1,493,275 Stock-based compensation — — 5,330 — — — — 5,330 — 5,330 Exercise of stock options — 1 — — — — — 1 — 1 Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net — — (633) — — — — (633) — (633) Purchase of common stock — — — (22,907) — — — (22,907) — (22,907) Other — — (41) 240 — — — 199 — 199 Net earnings — — — — 30,978 — — 30,978 — 30,978 Dividends ($0.175 per common share) — — 174 — (7,282) — — (7,108) — (7,108) Other comprehensive income: Pension funded status adjustment (net of tax benefit of $34) — — — — — 89 — 89 — 89 Net unrealized gain (loss) on derivative instruments (net of tax benefit of $2,514) — — — — — (8,234) — (8,234) — (8,234) Foreign currency translation adjustment — — — — — (52,010) — (52,010) (210) (52,220) Balance at July 3, 2022 $ — $ 558 $ 576,294 $ (741,786) $ 1,807,282 $ (203,650) $ (3,620) $ 1,435,078 $ 3,692 $ 1,438,770 The following demonstrates the change in equity attributable to EnerSys stockholders and nonredeemable noncontrolling interests during the first quarter ended July 4, 2021: (In Thousands , Except Per Share Data) Preferred Common Additional Paid-in Treasury Retained Accumulated Contra-Equity Total Non- Total Balance at March 31, 2021 $ — $ 555 $ 554,168 $ (563,481) $ 1,669,751 $ (115,883) $ (5,355) $ 1,539,755 $ 3,821 $ 1,543,576 Stock-based compensation — — 3,659 — — — — 3,659 — 3,659 Exercise of stock options — 1 386 — — — — 387 — 387 Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net — — (4,803) — — — — (4,803) — (4,803) Purchase of common stock — — — (31,512) — — — (31,512) — (31,512) Other — — 44 170 — — — 214 — 214 Net earnings — — — — 43,929 — — 43,929 — 43,929 Dividends ($0.175 per common share) — — 173 — (7,608) — — (7,435) — (7,435) Dissolution of joint venture — — — — — — — — (47) (47) Other comprehensive income: Pension funded status adjustment (net of tax benefit of $68) — — — — — 240 — 240 — 240 Net unrealized gain (loss) on derivative instruments (net of tax expense of $1,187) — — — — — 3,897 — 3,897 — 3,897 Foreign currency translation adjustment — — — — — 15,272 — 15,272 49 15,321 Balance at July 4, 2021 $ — $ 556 $ 553,627 $ (594,823) $ 1,706,072 $ (96,474) $ (5,355) $ 1,563,603 $ 3,823 $ 1,567,426 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jul. 03, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding and the calculations of net earnings per common share attributable to EnerSys stockholders. Quarter ended July 3, 2022 July 4, 2021 Net earnings attributable to EnerSys stockholders $ 30,978 $ 43,929 Weighted-average number of common shares outstanding: Basic 40,786,336 42,700,329 Dilutive effect of: Common shares from exercise and lapse of equity awards, net of shares assumed reacquired 566,310 837,015 Diluted weighted-average number of common shares outstanding 41,352,646 43,537,344 Basic earnings per common share attributable to EnerSys stockholders $ 0.76 $ 1.03 Diluted earnings per common share attributable to EnerSys stockholders $ 0.75 $ 1.01 Anti-dilutive equity awards not included in diluted weighted-average common shares 1,002,352 165,386 |
Business Segments
Business Segments | 3 Months Ended |
Jul. 03, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Summarized financial information related to the Company's reportable segments for the first quarter ended July 3, 2022 and July 4, 2021, is shown below: Quarter ended July 3, 2022 July 4, 2021 Net sales by segment to unaffiliated customers (1) Energy Systems $ 408,579 $ 371,206 Motive Power 367,851 336,116 Specialty 122,541 107,571 Total net sales $ 898,971 $ 814,893 Operating earnings by segment Energy Systems $ 7,674 $ 7,106 Motive Power 42,287 50,634 Specialty 8,496 10,992 Restructuring and other exit charges - Energy Systems (162) (488) Restructuring and other exit charges - Motive Power (8,166) (8,533) Restructuring and other exit charges - Specialty — 1,189 Total operating earnings (2) $ 50,129 $ 60,900 (1) Reportable segments do not record inter-segment revenues and accordingly there are none to report. (2) The Company does not allocate interest expense or other (income) expense, net, to the reportable segments. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 03, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn August 10, 2022, the Board of Directors approved a quarterly cash dividend of $0.175 per share of common stock to be paid on September 30, 2022, to stockholders of record as of September 16, 2022. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments except those otherwise described herein) considered necessary for a fair presentation have been included, unless otherwise disclosed. Operating results for the three months ended July 3, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2023. The Consolidated Condensed Balance Sheet at March 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s 2022 Annual Report on Form 10-K (SEC File No. 001-32253), which was filed on May 25, 2022 (the “2022 Annual Report”). EnerSys (the “Company”) reports interim financial information for 13-week periods, except for the first quarter, which always begins on April 1, and the fourth quarter, which always ends on March 31. The four quarters in fiscal 2023 end on July 3, 2022, October 2, 2022, January 1, 2023, and March 31, 2023, respectively. The four quarters in fiscal 2022 ended on July 4, 2021, October 3, 2021, January 2, 2022, and March 31, 2022, respectively. The consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries and any partially owned subsidiaries that the Company has the ability to control. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, including, but not limited to, the potential impacts arising from the coronavirus pandemic including its variants (“COVID-19”) and public and private sector policies and initiatives aimed at reducing its transmission. As the extent and duration of the impacts of COVID-19 remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from those estimates. Examples of significant estimates include the allowance for credit losses, the recoverability of property, plant and equipment, the incremental borrowing rate for lease liabilities, the recoverability of intangible assets and other long-lived assets, fair value measurements, including those related to financial instruments, goodwill and intangible assets, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Leases [Abstract] | |
Lessee, Supplemental Balance Sheet Information Related To Leases | The following table presents lease assets and liabilities and their balance sheet classification: Classification As of July 3, 2022 As of March 31, 2022 Operating Leases: Right-of-use assets Other assets $ 68,504 $ 71,085 Operating lease current liabilities Accrued expenses 21,303 20,086 Operating lease non-current liabilities Other liabilities 49,475 52,904 Finance Leases: Right-of-use assets Property, plant, and equipment, net $ 279 $ 344 Finance lease current liabilities Accrued expenses 164 185 Finance lease non-current liabilities Other liabilities 180 231 |
Lease, Cost | The components of lease expense for the first quarter ended July 3, 2022 and July 4, 2021 were as follows: Quarter ended Classification July 3, 2022 July 4, 2021 Operating Leases: Operating lease cost Operating expenses $ 6,584 $ 6,716 Variable lease cost Operating expenses 3,407 2,573 Short term lease cost Operating expenses 1,438 1,817 Finance Leases: Depreciation Operating expenses $ 52 $ 60 Interest expense Interest expense 4 8 Total $ 11,485 $ 11,174 |
Lessee, Supplemental Information Related To Leases | The following table presents the weighted average lease term and discount rates for leases as of July 3, 2022 and March 31, 2022: July 3, 2022 March 31, 2022 Operating Leases: Weighted average remaining lease term (years) 5.9 years 6.1 years Weighted average discount rate 4.49% 4.43% Finance Leases: Weighted average remaining lease term (years) 2.2 years 2.3 years Weighted average discount rate 4.78% 4.79% |
Lessee, Operating Lease, Liability, Maturity | The following table presents future payments due under leases reconciled to lease liabilities as of July 3, 2022: Finance Leases Operating Leases Nine months ended March 31, 2023 $ 143 $ 18,345 Year ended March 31, 2024 145 18,311 2025 44 13,009 2026 24 9,296 2027 — 7,196 Thereafter — 16,446 Total undiscounted lease payments 356 82,603 Present value discount 12 11,825 Lease liability $ 344 $ 70,778 |
Finance Lease, Liability, Maturity | The following table presents future payments due under leases reconciled to lease liabilities as of July 3, 2022: Finance Leases Operating Leases Nine months ended March 31, 2023 $ 143 $ 18,345 Year ended March 31, 2024 145 18,311 2025 44 13,009 2026 24 9,296 2027 — 7,196 Thereafter — 16,446 Total undiscounted lease payments 356 82,603 Present value discount 12 11,825 Lease liability $ 344 $ 70,778 |
Lessee, Supplemental Cash Flow Information Related To Leases | The following table presents supplemental disclosures of cash flow information related to leases for the first quarter July 3, 2022 and July 4, 2021: Quarter ended July 3, 2022 July 4, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 4 $ 8 Operating cash flows from operating leases 6,334 6,765 Financing cash flows from finance leases 52 60 Supplemental non-cash information on lease liabilities arising from right-of-use assets: Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Right-of-use assets obtained in exchange for new operating lease liabilities 2,773 3,681 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Information regarding the Company’s other intangible assets are as follows: Balance as of July 3, 2022 March 31, 2022 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Indefinite-lived intangible assets: Trademarks $ 145,188 $ (953) $ 144,235 $ 145,808 $ (953) $ 144,855 Finite-lived intangible assets: Customer relationships 296,853 (115,309) 181,544 298,577 (109,820) 188,757 Non-compete 2,825 (2,825) — 2,825 (2,825) — Technology 97,054 (40,947) 56,107 97,367 (38,712) 58,655 Trademarks 8,933 (5,370) 3,563 8,947 (5,012) 3,935 Licenses 1,196 (1,196) — 1,196 (1,196) — Total $ 552,049 $ (166,600) $ 385,449 $ 554,720 $ (158,518) $ 396,202 |
Schedule of Goodwill | The following table presents the amount of goodwill, as well as any changes in the carrying amount of goodwill by segment during the current quarter of fiscal 2023: Energy Systems Motive Power Specialty Total Balance at March 31, 2022 $ 279,461 $ 323,303 $ 97,876 $ 700,640 Foreign currency translation adjustment (11,735) (5,440) (1,352) (18,527) Balance as of July 3, 2022 $ 267,726 $ 317,863 $ 96,524 $ 682,113 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | July 3, 2022 March 31, 2022 Raw materials $ 295,354 $ 260,604 Work-in-process 118,762 109,441 Finished goods 363,544 345,667 Total $ 777,660 $ 715,712 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And (Liabilities), Measured At Fair Value On A Recurring Basis | The following tables represent the financial assets and (liabilities) measured at fair value on a recurring basis as of July 3, 2022 and March 31, 2022, and the basis for that measurement: Total Fair Value Measurement July 3, 2022 Quoted Price in Significant Significant Lead forward contracts $ (5,431) $ — $ (5,431) $ — Foreign currency forward contracts 244 — 244 — Net investment hedges 22,635 — 22,635 — Total derivatives $ 17,448 $ — $ 17,448 $ — Total Fair Value Measurement March 31, 2022 Quoted Price in Significant Significant Lead forward contracts $ 2,520 $ — $ 2,520 $ — Foreign currency forward contracts (256) — (256) — Net investment hedges 298 — 298 — Total derivatives $ 2,562 $ — $ 2,562 $ — |
Carrying Amounts And Estimated Fair Values Of Company's Financial Instruments | The carrying amounts and estimated fair values of the Company’s derivatives and Senior Notes at July 3, 2022 and March 31, 2022 were as follows: July 3, 2022 March 31, 2022 Carrying Fair Value Carrying Fair Value Financial assets: Derivatives (1) $ 17,448 $ 17,448 $ 2,562 $ 2,562 Financial liabilities: Senior Notes (2) $ 600,000 $ 560,250 $ 600,000 $ 585,750 (1) Represents lead, foreign currency forward contracts and net investment hedges (see Note 7 for asset and liability positions of the lead, foreign currency forward contracts and net investment hedges at July 3, 2022 and March 31, 2022). (2) The fair value amount of the Senior Notes at July 3, 2022 and March 31, 2022 represent the trading value of the instruments. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | Presented below in tabular form is information on the location and amounts of derivative fair values in the Consolidated Condensed Balance Sheets and derivative gains and losses in the Consolidated Condensed Statements of Income: Fair Value of Derivative Instruments July 3, 2022 and March 31, 2022 Derivatives and Hedging Activities Designated as Cash Flow Hedges Derivatives and Hedging Activities Designated as Net Investment Hedges Derivatives and Hedging Activities Not Designated as Hedging Instruments July 3, 2022 March 31, 2022 July 3, 2022 March 31, 2022 July 3, 2022 March 31, 2022 Prepaid and other current assets: Lead forward contracts $ — $ 2,520 $ — $ — $ — $ — Foreign currency forward contracts 475 256 — — — — Net investment hedges — — 5,041 4,388 — — Other assets: Net investment hedges — — 17,594 — — — Total assets $ 475 $ 2,776 $ 22,635 $ 4,388 $ — $ — Accrued expenses: Lead forward contracts $ 5,431 $ — $ — $ — $ — $ — Foreign currency forward contracts — — — — 231 512 Other liabilities: Net investment hedges — — — 4,090 — — Total liabilities $ 5,431 $ — $ — $ 4,090 $ 231 $ 512 |
The Effect of Derivative Instruments on Consolidated Condensed Statements of Income | The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 3, 2022 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ (10,862) Cost of goods sold $ 695 Foreign currency forward contracts 1,255 Cost of goods sold 446 Total $ (9,607) $ 1,141 Derivatives Designated as Net Investment Hedges Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Cross currency fixed interest rate swaps $ 23,595 Interest expense $ 1,258 Total $ 23,595 $ 1,258 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ 216 Total $ 216 The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 4, 2021 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ 7,572 Cost of goods sold $ 2,459 Foreign currency forward contracts (189) Cost of goods sold (160) Total $ 7,383 $ 2,299 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ (6) Total $ (6) |
Warranty (Tables)
Warranty (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Product Warranties Disclosures [Abstract] | |
Analysis Of Changes In Liability For Product Warranties | An analysis of changes in the liability for product warranties is as follows: Quarter ended July 3, 2022 July 4, 2021 Balance at beginning of period $ 54,978 $ 58,962 Current period provisions 4,940 5,330 Costs incurred (5,744) (5,252) Foreign currency translation adjustment (1,220) 127 Balance at end of period $ 52,954 $ 59,167 |
Restructuring and other Exit _2
Restructuring and other Exit Charges (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of Restructuring Reserve | Restructuring and exit charges for the first quarter of fiscal 2023 by reportable segments are as follows: Quarter ended July 3, 2022 Energy Systems Motive Power Specialty Total Restructuring charges $ 162 $ — $ — $ 162 Exit charges — 8,166 — 8,166 Restructuring and other exit charges $ 162 $ 8,166 $ — $ 8,328 A roll-forward of the restructuring reserve, excluding exit charges, is as follows: Balance as of March 31, 2022 $ 1,030 Accrued 162 Costs incurred (417) Foreign currency impact (58) Balance as of July 3, 2022 $ 717 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt And Capital Lease Obligations | The following summarizes the Company’s long-term debt as of July 3, 2022 and March 31, 2022: July 3, 2022 March 31, 2022 Principal Unamortized Issuance Costs Principal Unamortized Issuance Costs Senior Notes $ 600,000 $ 3,605 $ 600,000 $ 3,905 Second Amended Credit Facility, due 2026 783,473 3,174 650,268 3,361 $ 1,383,473 $ 6,779 $ 1,250,268 $ 7,266 Less: Unamortized issuance costs 6,779 7,266 Long-term debt, net of unamortized issuance costs $ 1,376,694 $ 1,243,002 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost Related To Defined Benefit Pension Plans | The following tables present the components of the Company’s net periodic benefit cost related to its defined benefit pension plans: United States Plans International Plans Quarter ended Quarter ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Service cost $ — $ — $ 235 $ 299 Interest cost 145 130 440 366 Expected return on plan assets (119) (128) (517) (563) Amortization and deferral — 5 123 303 Net periodic benefit cost $ 26 $ 7 $ 281 $ 405 |
Stockholders' Equity and Nonc_2
Stockholders' Equity and Noncontrolling Interests (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Equity [Abstract] | |
Change In Number Of Shares Of Common Stock Outstanding | The following demonstrates the change in the number of shares of common stock outstanding during the first quarter ended July 3, 2022: Shares outstanding as of March 31, 2022 40,986,658 Purchase of treasury stock (358,365) Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes 24,578 Shares outstanding as of July 3, 2022 40,652,871 |
Components Of Accumulated Other Comprehensive Income | The components of AOCI, net of tax, as of July 3, 2022 and March 31, 2022, are as follows: March 31, 2022 Before Reclassifications Amounts Reclassified from AOCI July 3, 2022 Pension funded status adjustment $ (12,637) $ — $ 89 $ (12,548) Net unrealized gain (loss) on derivative instruments 2,963 (7,360) (874) (5,271) Foreign currency translation adjustment (1) (133,821) (52,010) — (185,831) Accumulated other comprehensive (loss) income $ (143,495) $ (59,370) $ (785) $ (203,650) (1) Foreign currency translation adjustment for the first quarter ended July 3, 2022 includes a $17,115 gain (net of taxes of $5,222) relating to the net investment hedges entered into by the Company on December 23, 2021. |
Reclassification from Accumulated Other Comprehensive Income | The following table presents reclassifications from AOCI during the first quarter ended July 3, 2022: Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in cash flow hedging relationships: Net unrealized gain on derivative instruments $ (1,141) Cost of goods sold Tax expense 267 Net unrealized gain on derivative instruments, net of tax $ (874) Derivatives in net investment hedging relationships: Net unrealized gain on derivative instruments $ (1,258) Interest expense Tax expense 294 Net unrealized gain on derivative instruments, net of tax $ (964) Defined benefit pension costs: Prior service costs and deferrals $ 123 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (34) Net periodic benefit cost, net of tax $ 89 The following table presents reclassifications from AOCI during the first quarter ended July 4, 2021: Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in cash flow hedging relationships: Net unrealized gain on derivative instruments $ (2,299) Cost of goods sold Tax expense 539 Net unrealized gain on derivative instruments, net of tax $ (1,760) Defined benefit pension costs: Prior service costs and deferrals $ 308 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (68) Net periodic benefit cost, net of tax $ 240 |
Schedule of Change in Stockholders Equity | The following demonstrates the change in equity attributable to EnerSys stockholders and nonredeemable noncontrolling interests during the first quarter ended July 3, 2022: (In Thousands , Except Per Share Data) Preferred Common Additional Paid-in Treasury Retained Accumulated Contra-Equity Total Non- Total Balance at March 31, 2022 $ — $ 557 $ 571,464 $ (719,119) $ 1,783,586 $ (143,495) $ (3,620) $ 1,489,373 $ 3,902 $ 1,493,275 Stock-based compensation — — 5,330 — — — — 5,330 — 5,330 Exercise of stock options — 1 — — — — — 1 — 1 Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net — — (633) — — — — (633) — (633) Purchase of common stock — — — (22,907) — — — (22,907) — (22,907) Other — — (41) 240 — — — 199 — 199 Net earnings — — — — 30,978 — — 30,978 — 30,978 Dividends ($0.175 per common share) — — 174 — (7,282) — — (7,108) — (7,108) Other comprehensive income: Pension funded status adjustment (net of tax benefit of $34) — — — — — 89 — 89 — 89 Net unrealized gain (loss) on derivative instruments (net of tax benefit of $2,514) — — — — — (8,234) — (8,234) — (8,234) Foreign currency translation adjustment — — — — — (52,010) — (52,010) (210) (52,220) Balance at July 3, 2022 $ — $ 558 $ 576,294 $ (741,786) $ 1,807,282 $ (203,650) $ (3,620) $ 1,435,078 $ 3,692 $ 1,438,770 The following demonstrates the change in equity attributable to EnerSys stockholders and nonredeemable noncontrolling interests during the first quarter ended July 4, 2021: (In Thousands , Except Per Share Data) Preferred Common Additional Paid-in Treasury Retained Accumulated Contra-Equity Total Non- Total Balance at March 31, 2021 $ — $ 555 $ 554,168 $ (563,481) $ 1,669,751 $ (115,883) $ (5,355) $ 1,539,755 $ 3,821 $ 1,543,576 Stock-based compensation — — 3,659 — — — — 3,659 — 3,659 Exercise of stock options — 1 386 — — — — 387 — 387 Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net — — (4,803) — — — — (4,803) — (4,803) Purchase of common stock — — — (31,512) — — — (31,512) — (31,512) Other — — 44 170 — — — 214 — 214 Net earnings — — — — 43,929 — — 43,929 — 43,929 Dividends ($0.175 per common share) — — 173 — (7,608) — — (7,435) — (7,435) Dissolution of joint venture — — — — — — — — (47) (47) Other comprehensive income: Pension funded status adjustment (net of tax benefit of $68) — — — — — 240 — 240 — 240 Net unrealized gain (loss) on derivative instruments (net of tax expense of $1,187) — — — — — 3,897 — 3,897 — 3,897 Foreign currency translation adjustment — — — — — 15,272 — 15,272 49 15,321 Balance at July 4, 2021 $ — $ 556 $ 553,627 $ (594,823) $ 1,706,072 $ (96,474) $ (5,355) $ 1,563,603 $ 3,823 $ 1,567,426 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding and the calculations of net earnings per common share attributable to EnerSys stockholders. Quarter ended July 3, 2022 July 4, 2021 Net earnings attributable to EnerSys stockholders $ 30,978 $ 43,929 Weighted-average number of common shares outstanding: Basic 40,786,336 42,700,329 Dilutive effect of: Common shares from exercise and lapse of equity awards, net of shares assumed reacquired 566,310 837,015 Diluted weighted-average number of common shares outstanding 41,352,646 43,537,344 Basic earnings per common share attributable to EnerSys stockholders $ 0.76 $ 1.03 Diluted earnings per common share attributable to EnerSys stockholders $ 0.75 $ 1.01 Anti-dilutive equity awards not included in diluted weighted-average common shares 1,002,352 165,386 |
Business Segments Business Segm
Business Segments Business Segments (Tables) | 3 Months Ended |
Jul. 03, 2022 | |
Segment Reporting [Abstract] | |
Selected Financial Data for Reportable Business Segments and Product Lines | Summarized financial information related to the Company's reportable segments for the first quarter ended July 3, 2022 and July 4, 2021, is shown below: Quarter ended July 3, 2022 July 4, 2021 Net sales by segment to unaffiliated customers (1) Energy Systems $ 408,579 $ 371,206 Motive Power 367,851 336,116 Specialty 122,541 107,571 Total net sales $ 898,971 $ 814,893 Operating earnings by segment Energy Systems $ 7,674 $ 7,106 Motive Power 42,287 50,634 Specialty 8,496 10,992 Restructuring and other exit charges - Energy Systems (162) (488) Restructuring and other exit charges - Motive Power (8,166) (8,533) Restructuring and other exit charges - Specialty — 1,189 Total operating earnings (2) $ 50,129 $ 60,900 (1) Reportable segments do not record inter-segment revenues and accordingly there are none to report. (2) The Company does not allocate interest expense or other (income) expense, net, to the reportable segments. |
Revenue Recognition - (Addition
Revenue Recognition - (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 898,971 | $ 814,893 | |
Contract with customer, liability, current portion | 27,733 | $ 27,870 | |
Contract with customer, liability, noncurrent portion | 1,266 | 1,387 | |
Revenue recognized | 4,590 | 3,596 | |
Unbilled contracts receivable | 66,643 | $ 59,924 | |
Right to recover product | 4,605 | ||
Refund liability | 8,053 | ||
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 57,004 | 40,904 | |
Service | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 99,824 | $ 82,518 |
Revenue Recognition - (Remainin
Revenue Recognition - (Remaining Performance Obligation) (Details) $ in Thousands | Jul. 03, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 187,522 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 159,653 |
Remaining performance obligation, timing of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 24,579 |
Remaining performance obligation, timing of satisfaction | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 3,290 |
Remaining performance obligation, timing of satisfaction | 3 years |
Leases - (Additional Informatio
Leases - (Additional Information) (Details) | Jul. 03, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Contract term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Contract term | 17 years |
Leases - (Balance Sheet Classif
Leases - (Balance Sheet Classification) (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 68,504 | $ 71,085 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating lease current liabilities | $ 21,303 | $ 20,086 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses |
Operating lease non-current liabilities | $ 49,475 | $ 52,904 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Finance lease right-of-use asset | $ 279 | $ 344 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant, and equipment, net | Property, plant, and equipment, net |
Finance lease current liabilities | $ 164 | $ 185 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses |
Finance lease non-current liabilities | $ 180 | $ 231 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Leases - (Lease Cost) (Details)
Leases - (Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Operating Leases: | ||
Operating lease cost | $ 6,584 | $ 6,716 |
Variable lease cost | 3,407 | 2,573 |
Short term lease cost | 1,438 | 1,817 |
Finance Leases: | ||
Depreciation | 52 | 60 |
Interest expense | 4 | 8 |
Total | $ 11,485 | $ 11,174 |
Leases - (Additional Informat_2
Leases - (Additional Information Related to Leases) (Details) | Jul. 03, 2022 | Mar. 31, 2022 |
Operating Leases: | ||
Weighted average remaining lease term (years) | 5 years 10 months 24 days | 6 years 1 month 6 days |
Weighted average discount rate | 4.49% | 4.43% |
Finance Leases: | ||
Weighted average remaining lease term (years) | 2 years 2 months 12 days | 2 years 3 months 18 days |
Weighted average discount rate | 4.78% | 4.79% |
Leases - (Finance and Operating
Leases - (Finance and Operating Lease Maturity Schedules) (Details) $ in Thousands | Jul. 03, 2022 USD ($) |
Finance Leases | |
Nine months ended March 31, 2023 | $ 143 |
Year ended March 31, 2024 | 145 |
Year ended March 31, 2025 | 44 |
Year ended March 31, 2026 | 24 |
Year ended March 31, 2027 | 0 |
Thereafter | 0 |
Total undiscounted lease payments | 356 |
Present value discount | 12 |
Lease liability | 344 |
Operating Leases | |
Nine months ended March 31, 2023 | 18,345 |
Year ended March 31, 2024 | 18,311 |
Year ended March 31, 2025 | 13,009 |
Year ended March 31, 2026 | 9,296 |
Year ended March 31, 2027 | 7,196 |
Thereafter | 16,446 |
Total undiscounted lease payments | 82,603 |
Present value discount | 11,825 |
Lease liability | $ 70,778 |
Leases - (Supplemental Cash Flo
Leases - (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from finance leases | $ 4 | $ 8 |
Operating cash flows from operating leases | 6,334 | 6,765 |
Financing cash flows from finance leases | 52 | 60 |
Supplemental non-cash information on lease liabilities arising from right-of-use assets: | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | 0 | 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,773 | $ 3,681 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross amount | $ 552,049 | $ 554,720 |
Total intangible assets, accumulated amortization | (166,600) | (158,518) |
Total intangible assets, net amount | 385,449 | 396,202 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross amount | 296,853 | 298,577 |
Finite-lived intangible assets, accumulated amortization | (115,309) | (109,820) |
Finite-lived intangible assets, net amount | 181,544 | 188,757 |
Non-compete | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross amount | 2,825 | 2,825 |
Finite-lived intangible assets, accumulated amortization | (2,825) | (2,825) |
Finite-lived intangible assets, net amount | 0 | 0 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross amount | 97,054 | 97,367 |
Finite-lived intangible assets, accumulated amortization | (40,947) | (38,712) |
Finite-lived intangible assets, net amount | 56,107 | 58,655 |
Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross amount | 145,188 | 145,808 |
Indefinite-lived intangible assets, accumulated amortization | (953) | (953) |
Indefinite-lived intangible assets, net amount | 144,235 | 144,855 |
Finite-lived intangible assets, gross amount | 8,933 | 8,947 |
Finite-lived intangible assets, accumulated amortization | (5,370) | (5,012) |
Finite-lived intangible assets, net amount | 3,563 | 3,935 |
Licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross amount | 1,196 | 1,196 |
Finite-lived intangible assets, accumulated amortization | (1,196) | (1,196) |
Finite-lived intangible assets, net amount | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 8,082 | $ 8,419 |
Amortization of intangible assets, remainder of 2023 | 22,643 | |
Amortization of intangible assets, 2024 | 27,691 | |
Amortization of intangible assets, 2025 | 26,550 | |
Amortization of intangible assets, 2026 | 25,616 | |
Amortization of intangible assets, 2027 | $ 24,822 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - (Goodwill) (Details) $ in Thousands | 3 Months Ended |
Jul. 03, 2022 USD ($) | |
Goodwill [Line Items] | |
Balance at March 31, 2022 | $ 700,640 |
Foreign currency translation adjustment | (18,527) |
Balance as of July 3, 2022 | 682,113 |
Energy Systems | |
Goodwill [Line Items] | |
Balance at March 31, 2022 | 279,461 |
Foreign currency translation adjustment | (11,735) |
Balance as of July 3, 2022 | 267,726 |
Motive Power | |
Goodwill [Line Items] | |
Balance at March 31, 2022 | 323,303 |
Foreign currency translation adjustment | (5,440) |
Balance as of July 3, 2022 | 317,863 |
Specialty | |
Goodwill [Line Items] | |
Balance at March 31, 2022 | 97,876 |
Foreign currency translation adjustment | (1,352) |
Balance as of July 3, 2022 | $ 96,524 |
Inventories - (Details)
Inventories - (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 295,354 | $ 260,604 |
Work-in-process | 118,762 | 109,441 |
Finished goods | 363,544 | 345,667 |
Total | $ 777,660 | $ 715,712 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - (Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | $ 17,448 | $ 2,562 |
Quoted Price in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 17,448 | 2,562 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 0 | 0 |
Lead forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | (5,431) | 2,520 |
Lead forward contracts | Quoted Price in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 0 | 0 |
Lead forward contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | (5,431) | 2,520 |
Lead forward contracts | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 0 | 0 |
Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 244 | (256) |
Foreign currency forward contracts | Quoted Price in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 0 | 0 |
Foreign currency forward contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 244 | (256) |
Foreign currency forward contracts | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 0 | 0 |
Net investment hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 22,635 | 298 |
Net investment hedges | Quoted Price in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 0 | 0 |
Net investment hedges | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 22,635 | 298 |
Net investment hedges | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 03, 2022 | Mar. 31, 2022 | Mar. 31, 2020 | |
Fixed Asset Write-Off | Closure Of Facility In Ooltewah, Tennessee | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Restructuring charges | $ 7,300 | ||
4.375% Senior Notes due 2027 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate | 4.375% | ||
Long-term debt | $ 300,000 | ||
Face value of trades, percentage | 88% | 95% | |
5.00% Senior Notes due 2023 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate | 5% | ||
Long-term debt | $ 300,000 | ||
Face value of trades, percentage | 99% | 101% |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - (Carrying Amounts and Estimated Fair Values) (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | $ 17,448 | $ 2,562 |
Senior Notes | 600,000 | 600,000 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 17,448 | 2,562 |
Senior Notes | $ 560,250 | $ 585,750 |
Derivative Financial Instrume_3
Derivative Financial Instruments - (Additional Information) (Details) lb in Millions | 3 Months Ended | ||
Jul. 03, 2022 USD ($) lb | Mar. 31, 2022 USD ($) lb | Dec. 23, 2021 USD ($) | |
Designated as Hedging Instrument | Cross currency fixed interest rate swaps | Net investment hedges | |||
Derivatives, Fair Value [Line Items] | |||
Derivative notional amount | $ 300,000 | ||
Cost of Sales and Interest Expense | |||
Derivatives, Fair Value [Line Items] | |||
Foreign currency cash flow hedge gain to be reclassified during next 12 months | $ 1,714,000 | ||
Lead forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount in pounds | lb | 55.5 | 54 | |
Fair value of hedges, net | $ 54,078,000 | $ 56,768,000 | |
Foreign currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, term (not extending beyond) | 1 year | ||
Derivative notional amount | $ 33,463,000 | 29,676,000 | |
Foreign currency forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative notional amount | $ 51,256,000 | $ 22,990,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - (Location and Amounts of Derivative Fair Values) (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Derivatives and Hedging Activities Designated as Hedging Instruments | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | $ 475 | $ 2,776 |
Total liabilities | 5,431 | 0 |
Derivatives and Hedging Activities Designated as Hedging Instruments | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 22,635 | 4,388 |
Total liabilities | 0 | 4,090 |
Derivatives and Hedging Activities Designated as Hedging Instruments | Prepaid and other current assets | Cross currency fixed interest rate swaps | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 5,041 | 4,388 |
Derivatives and Hedging Activities Designated as Hedging Instruments | Other Assets | Cross currency fixed interest rate swaps | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 17,594 | 0 |
Derivatives and Hedging Activities Designated as Hedging Instruments | Other liabilities | Cross currency fixed interest rate swaps | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities | 0 | 4,090 |
Derivatives and Hedging Activities Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 231 | 512 |
Lead forward contracts | Derivatives and Hedging Activities Designated as Hedging Instruments | Prepaid and other current assets | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 0 | 2,520 |
Lead forward contracts | Derivatives and Hedging Activities Designated as Hedging Instruments | Accrued expenses | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities | 5,431 | 0 |
Lead forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 0 | 0 |
Lead forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities | 0 | 0 |
Foreign currency forward contracts | Derivatives and Hedging Activities Designated as Hedging Instruments | Prepaid and other current assets | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 475 | 256 |
Foreign currency forward contracts | Derivatives and Hedging Activities Designated as Hedging Instruments | Accrued expenses | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities | 0 | 0 |
Foreign currency forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Total assets | 0 | 0 |
Foreign currency forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Total liabilities | $ 231 | $ 512 |
Derivative Financial Instrume_5
Derivative Financial Instruments - (Derivatives Effect on Statements of Income) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (9,607) | $ 7,383 |
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1,141 | 2,299 |
Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 23,595 | |
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1,258 | |
Lead forward contracts | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | (10,862) | 7,572 |
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 695 | 2,459 |
Foreign currency forward contracts | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 1,255 | (189) |
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 446 | $ (160) |
Cross currency fixed interest rate swaps | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 23,595 | |
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 1,258 |
Derivative Financial Instrume_6
Derivative Financial Instruments - (Derivatives Not Designated as Hedging Instruments) (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives Not Designated as Hedging Instruments | $ 216 | $ (6) |
Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives Not Designated as Hedging Instruments | $ 216 | $ (6) |
Income Taxes - (Additional Info
Income Taxes - (Additional Information) (Details) | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rates | 15.70% | 16% |
Foreign income as a percentage of worldwide income | 77% | 87% |
Foreign effective income tax rates | 11% | 9% |
Tax rate of Swiss subsidiary | 9% | 8% |
Warranty - (Analysis of Changes
Warranty - (Analysis of Changes in the Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 54,978 | $ 58,962 |
Current period provisions | 4,940 | 5,330 |
Costs incurred | (5,744) | (5,252) |
Foreign currency translation adjustment | (1,220) | 127 |
Balance at end of period | $ 52,954 | $ 59,167 |
Restructuring and other Exit _3
Restructuring and other Exit Charges - (Additional Information) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 29, 2022 USD ($) Employee | Jul. 03, 2022 USD ($) | Jul. 04, 2021 USD ($) | Oct. 03, 2021 Employee | Oct. 04, 2020 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | Mar. 31, 2019 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected remaining cost | $ 717 | ||||||||
Restructuring and other exit charges | 8,328 | $ 7,832 | |||||||
Proceeds from disposal of facility | 0 | 3,268 | |||||||
Employee Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 162 | ||||||||
Exit charges | 8,166 | ||||||||
Restructuring and other exit charges | 8,328 | ||||||||
Restructuring costs incurred | 417 | ||||||||
Employee Severance | Energy Systems | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 162 | ||||||||
Exit charges | 0 | ||||||||
Restructuring and other exit charges | 162 | ||||||||
Employee Severance | Motive Power | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 0 | ||||||||
Exit charges | 8,166 | ||||||||
Restructuring and other exit charges | 8,166 | ||||||||
Employee Severance | Specialty | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 0 | ||||||||
Exit charges | 0 | ||||||||
Restructuring and other exit charges | 0 | ||||||||
Closure of Facility in Hagen, Germany | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected additional restructuring charges | $ 60,000 | ||||||||
Estimated number of positions eliminated | Employee | 200 | ||||||||
Inventory adjustment relating to exit activities | 960 | ||||||||
Closure of Facility in Hagen, Germany | Cash charges | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected additional restructuring charges | 40,000 | ||||||||
Closure of Facility in Hagen, Germany | Severance, Cash Charges | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 23,331 | ||||||||
Closure of Facility in Hagen, Germany | Non Cash Charges | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected additional restructuring charges | 20,000 | ||||||||
Closure of Facility in Hagen, Germany | Severance, Non Cash Charges | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 7,946 | 3,522 | |||||||
Closure of Facility in Hagen, Germany | Employee Severance | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 8,069 | ||||||||
Closure of Facility in Hagen, Germany | Site Clean Up, Cash Charges | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 721 | ||||||||
Closure of Facility in Hagen, Germany | Accelerated Depreciation, Non Cash Charges | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 145 | ||||||||
Closure Of Facility In Targovishte Bulgaria | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected remaining cost | $ 26,000 | ||||||||
Restructuring and other exit charges | $ 220 | $ 5,123 | $ 20,242 | ||||||
Proceeds from disposal of facility | 1,489 | ||||||||
Gain on disposal of facility | 1,208 | ||||||||
Closure of Facility in Zamudio, Spain | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Gain on disposal of facility | 1,779 | ||||||||
Proceeds for sale of certain licenses and assets | $ 740 | ||||||||
Closure Of Facility In Ooltewah, Tennessee | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected additional restructuring charges | $ 18,500 | ||||||||
Estimated number of positions eliminated | Employee | 165 | ||||||||
Closure Of Facility In Ooltewah, Tennessee | Cash charges | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected additional restructuring charges | $ 9,200 | ||||||||
Closure Of Facility In Ooltewah, Tennessee | Non Cash Charges | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected additional restructuring charges | $ 2,000 | ||||||||
Closure Of Facility In Ooltewah, Tennessee | Fixed Asset Write-Off | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 7,300 |
Restructuring and other Exit _4
Restructuring and other Exit Charges - (Roll-forward of Restructuring Reserve) (Details) - Employee Severance $ in Thousands | 3 Months Ended |
Jul. 03, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | $ 1,030 |
Accrued | 162 |
Costs incurred | (417) |
Foreign currency impact | (58) |
Restructuring reserve, ending balance | $ 717 |
Debt - (Long-term Debt Includin
Debt - (Long-term Debt Including Capital Lease Obligations) (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Mar. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt and lease obligation | $ 1,383,473 | $ 1,250,268 |
Unamortized Issuance Costs | 6,779 | 7,266 |
Long-term debt, net of unamortized issuance costs | 1,376,694 | 1,243,002 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 600,000 | 600,000 |
Unamortized Issuance Costs | 3,605 | 3,905 |
Second Amended Credit Facility, due 2026 | Second Amended Credit Facility, due 2026 | ||
Debt Instrument [Line Items] | ||
Incremental term loan commitment | 783,473 | 650,268 |
Unamortized Issuance Costs | $ 3,174 | $ 3,361 |
Debt - (Additional Information)
Debt - (Additional Information) (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 11, 2019 USD ($) | Jul. 03, 2022 USD ($) | Oct. 03, 2021 USD ($) | Jul. 04, 2021 USD ($) | Mar. 31, 2019 USD ($) | Mar. 31, 2022 USD ($) | Oct. 03, 2021 CAD ($) | Mar. 31, 2019 CAD ($) | Mar. 31, 2018 USD ($) | Apr. 23, 2015 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Short-term debt | $ 45,628,000 | $ 55,084,000 | ||||||||
Short-term debt, weighted average interest rate | 4.30% | 2.40% | ||||||||
Amortization expense relating to debt issuance costs and included in interest expense | $ 487,000 | $ 518,000 | ||||||||
Deferred issuance costs, net of accumulated amortization | 6,779,000 | $ 7,266,000 | ||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Consideration transferred | $ 250,000 | |||||||||
Standby Letters of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stand by letters of credit | 2,959,000 | 2,959,000 | ||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 600,000,000 | 600,000,000 | ||||||||
Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Available lines of credit | 353,074,000 | 482,305,000 | ||||||||
Outstanding amount | 76,199,000 | $ 69,430,000 | ||||||||
4.375% Senior Notes due 2027 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 4.375% | |||||||||
Long-term debt | $ 300,000,000 | |||||||||
Proceeds from issuance of debt, net of debt issuance costs | $ 296,250,000 | |||||||||
5.00% Senior Notes due 2023 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5% | |||||||||
Long-term debt | $ 300,000,000 | |||||||||
Current portion of long-term debt | 300,000,000 | |||||||||
Amended Credit Facility, due 2022 | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 150,000,000 | |||||||||
Amended Credit Facility, due 2022 | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||||||
Amended 2017 Term Loan | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 449,105,000 | |||||||||
Change in face amount | 299,105,000 | |||||||||
Amended 2017 Term Loan, Canadian Dollars | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 99,105,000 | $ 133,050,000 | ||||||||
Amended 2017 Revolver | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 700,000,000 | |||||||||
Amended 2017 Revolver | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Change in borrowing capacity | $ 100,000,000 | |||||||||
Second Amended Term Loan | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 130,000,000 | |||||||||
Change in face amount | (150,000,000) | |||||||||
Available lines of credit | 212,473,000 | |||||||||
Current portion of long-term debt | 7,969,000 | |||||||||
Second Amended Term Loan, Canadian Dollars | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 84,229,000 | $ 106,440,000 | ||||||||
Second Amended Revolver | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 850,000,000 | |||||||||
Change in borrowing capacity | $ 150,000,000 | |||||||||
Optional increase in line of credit maximum borrowing capacity | 350,000,000 | |||||||||
Available lines of credit | $ 571,000,000 | |||||||||
Second Amended Credit Facility | Secured Debt and Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of capital stock collateralizing debt | 65% | |||||||||
Second Amended Credit Facility | Secured Debt and Line of Credit | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% | |||||||||
Second Amended Credit Facility | Secured Debt and Line of Credit | Federal Funds Effective Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
Second Amended Credit Facility | Secured Debt and Line of Credit | Eurocurrency Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1% | |||||||||
Second Amended Credit Facility | Secured Debt and Line of Credit | CDOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
Second Amended Credit Facility | Secured Debt and Line of Credit | Minimum | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.125% | |||||||||
Second Amended Credit Facility | Secured Debt and Line of Credit | Maximum | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2% | |||||||||
Maximum Leverage Ratio | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Measurement input | 3.50 | 3.50 | ||||||||
Maximum Leverage Ratio | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Measurement input | 4 | 4 | ||||||||
Redemption Period One | 4.375% Senior Notes due 2027 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption percentage | 100% | |||||||||
Redemption Period One | Second Amended Term Loan | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, periodic payment | $ 2,656,000 | |||||||||
Redemption Period Two | 4.375% Senior Notes due 2027 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption percentage | 100% | |||||||||
Redemption Period Two | Second Amended Term Loan | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, periodic payment | 3,984,000 | |||||||||
Redemption Period Three | 4.375% Senior Notes due 2027 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption percentage | 101% | |||||||||
Redemption Period Three | Second Amended Term Loan | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, periodic payment | 5,312,000 | |||||||||
Debt Instrument, Redemption, Period Four | Second Amended Term Loan | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, periodic payment | $ 159,355,000 |
Retirement Plans - (Net Periodi
Retirement Plans - (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
United States Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 145 | 130 |
Expected return on plan assets | (119) | (128) |
Amortization and deferral | 0 | 5 |
Net periodic benefit cost | 26 | 7 |
International Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 235 | 299 |
Interest cost | 440 | 366 |
Expected return on plan assets | (517) | (563) |
Amortization and deferral | 123 | 303 |
Net periodic benefit cost | $ 281 | $ 405 |
Stock-Based Compensation - (Add
Stock-Based Compensation - (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grants (in shares) | 4,173,554 | |
Equity-based compensation expense | $ 5,330 | $ 3,659 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock units vested during period (in shares) | 31,516 | |
Awards outstanding (in shares) | 843,824 | |
Employee Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options exercised (in shares) | 2,343 | |
TSRs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards outstanding (in shares) | 75,205 | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards outstanding (in shares) | 77,100 | |
Non-employee Directors | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock unit grants during period (in shares) | 2,129 | |
Management and Other Key Employees | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option grants during period (in shares) | 1,157 | |
Vesting term | 4 years | |
Management and Other Key Employees | Employee Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option grants outstanding (in shares) | 972,439 |
Stockholders' Equity and Nonc_3
Stockholders' Equity and Noncontrolling Interests - (Change in the Number of Shares of Common Stock Outstanding) (Details) - shares | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Common Stock Outstanding Roll Forward | ||
Shares outstanding, beginning balance (in shares) | 40,986,658 | |
Purchase of treasury stock (in shares) | (358,365) | (329,008) |
Shares issued towards equity-based compensation plans, net of equity awards surrendered for option price and taxes (in shares) | 24,578 | |
Shares outstanding, ending balance (in shares) | 40,652,871 |
Stockholders' Equity and Nonc_4
Stockholders' Equity and Noncontrolling Interests - (Treasury Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Mar. 31, 2022 | |
Equity [Abstract] | |||
Purchase of treasury stock (in shares) | 358,365 | 329,008 | |
Treasury stock purchased during period, value | $ 22,907 | $ 31,512 | |
Treasury stock, shares (in shares) | 15,117,533 | 14,762,266 | |
Treasury shares issued (in shares) | 3,098 | ||
Treasury shares issued (in dollars per share) | $ 62.55 |
Stockholders' Equity and Nonc_5
Stockholders' Equity and Noncontrolling Interests - (Components of Accumulated Other Comprehensive Income) (Details) $ in Thousands | 3 Months Ended |
Jul. 03, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | $ 1,493,275 |
Ending balance | 1,438,770 |
Pension funded status adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | (12,637) |
Before Reclassifications | 0 |
Amounts Reclassified from AOCI | 89 |
Ending balance | (12,548) |
Foreign currency translation adjustment, gain | 0 |
Net unrealized gain (loss) on derivative instruments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | 2,963 |
Before Reclassifications | (7,360) |
Amounts Reclassified from AOCI | (874) |
Ending balance | (5,271) |
Foreign currency translation adjustment, gain | (7,360) |
Foreign currency translation adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | (133,821) |
Before Reclassifications | (52,010) |
Amounts Reclassified from AOCI | 0 |
Ending balance | (185,831) |
Foreign currency translation adjustment, gain | (52,010) |
Foreign currency translation adjustment | Cross currency fixed interest rate swaps | Net investment hedges | Designated as Hedging Instrument | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Before Reclassifications | 17,115 |
Foreign currency translation adjustment, gain | 17,115 |
Foreign currency translation adjustment, tax | 5,222 |
Accumulated other comprehensive (loss) income | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | (143,495) |
Before Reclassifications | (59,370) |
Amounts Reclassified from AOCI | (785) |
Ending balance | (203,650) |
Foreign currency translation adjustment, gain | $ (59,370) |
Stockholders' Equity and Nonc_6
Stockholders' Equity and Noncontrolling Interests - (Reclassifications from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized gain (loss) on derivative instruments, Cost of goods sold | $ (713,436) | $ (621,674) |
Net unrealized gain on derivative instruments, Interest expense | (11,597) | (9,107) |
Derivatives in cash flow hedging relationships | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax expense (benefit) | 267 | 539 |
Net of tax | (874) | (1,760) |
Derivatives in cash flow hedging relationships | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized gain (loss) on derivative instruments, Cost of goods sold | (1,141) | (2,299) |
Derivatives in net investment hedging relationships | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax expense (benefit) | 294 | |
Net of tax | (964) | |
Derivatives in net investment hedging relationships | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized gain on derivative instruments, Interest expense | (1,258) | |
Defined benefit pension costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Prior service costs and deferrals | 123 | 308 |
Tax expense (benefit) | (34) | (68) |
Net of tax | $ 89 | $ 240 |
Stockholders' Equity and Nonc_7
Stockholders' Equity and Noncontrolling Interests - (Other Disclosures) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 1,493,275 | $ 1,543,576 |
Stock-based compensation | 5,330 | 3,659 |
Exercise of stock options | 1 | 387 |
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | (633) | (4,803) |
Purchase of common stock | (22,907) | (31,512) |
Other | 199 | 214 |
Net earnings | 30,978 | 43,929 |
Dividends | (7,108) | (7,435) |
Dissolution of joint venture | (47) | |
Other comprehensive income: | ||
Pension funded status adjustment, net of tax | 89 | 240 |
Net unrealized gain (loss) on derivative instruments (net of tax) | (8,234) | 3,897 |
Foreign currency translation adjustment | (52,220) | 15,321 |
Ending balance | $ 1,438,770 | $ 1,567,426 |
Dividends per common share (in dollars per share) | $ 0.175 | $ 0.175 |
Pension funded status adjustment, tax benefit (expense) | $ 34 | $ 68 |
Net unrealized gain (loss) on derivative instrument, income tax expense (benefit) | (2,514) | 1,187 |
Total EnerSys Stockholders’ Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 1,489,373 | 1,539,755 |
Stock-based compensation | 5,330 | 3,659 |
Exercise of stock options | 1 | 387 |
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | (633) | (4,803) |
Purchase of common stock | (22,907) | (31,512) |
Other | 199 | 214 |
Net earnings | 30,978 | 43,929 |
Dividends | (7,108) | (7,435) |
Other comprehensive income: | ||
Pension funded status adjustment, net of tax | 89 | 240 |
Net unrealized gain (loss) on derivative instruments (net of tax) | (8,234) | 3,897 |
Foreign currency translation adjustment | (52,010) | 15,272 |
Ending balance | 1,435,078 | 1,563,603 |
Preferred Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 0 | 0 |
Other comprehensive income: | ||
Ending balance | 0 | 0 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 557 | 555 |
Exercise of stock options | 1 | 1 |
Other comprehensive income: | ||
Ending balance | 558 | 556 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 571,464 | 554,168 |
Stock-based compensation | 5,330 | 3,659 |
Exercise of stock options | 386 | |
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | (633) | (4,803) |
Other | (41) | 44 |
Dividends | 174 | 173 |
Other comprehensive income: | ||
Ending balance | 576,294 | 553,627 |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (719,119) | (563,481) |
Purchase of common stock | (22,907) | (31,512) |
Other | 240 | 170 |
Other comprehensive income: | ||
Ending balance | (741,786) | (594,823) |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 1,783,586 | 1,669,751 |
Net earnings | 30,978 | 43,929 |
Dividends | (7,282) | (7,608) |
Other comprehensive income: | ||
Ending balance | 1,807,282 | 1,706,072 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (143,495) | (115,883) |
Other comprehensive income: | ||
Pension funded status adjustment, net of tax | 89 | 240 |
Net unrealized gain (loss) on derivative instruments (net of tax) | (8,234) | 3,897 |
Foreign currency translation adjustment | (52,010) | 15,272 |
Ending balance | (203,650) | (96,474) |
Contra-Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (3,620) | (5,355) |
Other comprehensive income: | ||
Ending balance | (3,620) | (5,355) |
Non- redeemable Non- Controlling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 3,902 | 3,821 |
Dissolution of joint venture | (47) | |
Other comprehensive income: | ||
Foreign currency translation adjustment | (210) | 49 |
Ending balance | $ 3,692 | $ 3,823 |
Earnings Per Share - (Reconcili
Earnings Per Share - (Reconciliation from Basic to Diluted Average Common Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Earnings Per Share [Abstract] | ||
Net earnings attributable to EnerSys stockholders | $ 30,978 | $ 43,929 |
Basic weighted-average number of common shares outstanding (in shares) | 40,786,336 | 42,700,329 |
Common shares from exercise and lapse of equity awards, net of shares assumed reacquired (in shares) | 566,310 | 837,015 |
Diluted weighted-average number of common shares outstanding (in shares) | 41,352,646 | 43,537,344 |
Basic earnings per common share attributable to EnerSys stockholders (in dollars per share) | $ 0.76 | $ 1.03 |
Diluted earnings per common share attributable to EnerSys stockholders (in dollars per share) | $ 0.75 | $ 1.01 |
Anti-dilutive equity awards not included in diluted weighted-average common shares (in shares) | 1,002,352 | 165,386 |
Business Segments - (Details)
Business Segments - (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 898,971 | $ 814,893 |
Operating earnings by segment | 50,129 | 60,900 |
Restructuring charges | (8,328) | (7,832) |
Energy Systems | Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 408,579 | 371,206 |
Operating earnings by segment | 7,674 | 7,106 |
Restructuring charges | (162) | (488) |
Motive Power | EMEA | ||
Segment Reporting Information [Line Items] | ||
Net sales | 367,851 | 336,116 |
Operating earnings by segment | 42,287 | 50,634 |
Restructuring charges | (8,166) | (8,533) |
Specialty | Asia | ||
Segment Reporting Information [Line Items] | ||
Net sales | 122,541 | 107,571 |
Operating earnings by segment | 8,496 | 10,992 |
Restructuring charges | $ 0 | $ 1,189 |
Subsequent Events - (Additional
Subsequent Events - (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Aug. 10, 2022 | Jul. 03, 2022 | Jul. 04, 2021 | |
Subsequent Event [Line Items] | |||
Purchase of treasury stock (in shares) | 358,365 | 329,008 | |
Treasury stock purchased during period, value | $ 22,907 | $ 31,512 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock dividends (in dollars per share) | $ 0.175 |