Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jul. 01, 2023 | Jul. 28, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | RBC BEARINGS INCORPORATED | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --03-30 | |
Entity Common Stock, Shares Outstanding | 29,056,110 | |
Amendment Flag | false | |
Entity Central Index Key | 0001324948 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Jul. 01, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40840 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4372080 | |
Entity Address, Address Line One | One Tribology Center | |
Entity Address, City or Town | Oxford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06478 | |
City Area Code | (203) | |
Local Phone Number | 267-7001 | |
Entity Interactive Data Current | Yes | |
Common Stock, par value $0.01 per-share | ||
Document Information Line Items | ||
Trading Symbol | RBC | |
Title of 12(b) Security | Common Stock, par value $0.01 per-share | |
Security Exchange Name | NYSE | |
5.00% Series A Mandatory Convertible Preferred Stock, par value $0.01 per-share | ||
Document Information Line Items | ||
Trading Symbol | RBCP | |
Title of 12(b) Security | 5.00% Series A Mandatory Convertible Preferred Stock, par value $0.01 per-share | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 01, 2023 | Apr. 01, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 56.7 | $ 65.4 |
Accounts receivable, net of allowance for doubtful accounts of $4.0 as of July 1, 2023 and $3.7 as of April 1, 2023 | 251.8 | 239.6 |
Inventory | 603.3 | 587.2 |
Prepaid expenses and other current assets | 23.7 | 21.1 |
Total current assets | 935.5 | 913.3 |
Property, plant and equipment, net | 370.5 | 375.3 |
Operating lease assets, net | 42.1 | 41.4 |
Goodwill | 1,870.9 | 1,869.8 |
Intangible assets, net | 1,435.9 | 1,452.9 |
Other noncurrent assets | 42.5 | 37.7 |
Total assets | 4,697.4 | 4,690.4 |
Current liabilities: | ||
Accounts payable | 140 | 146.8 |
Accrued expenses and other current liabilities | 166.8 | 153.4 |
Current operating lease liabilities | 7.6 | 7.6 |
Current portion of long-term debt | 1.6 | 1.5 |
Total current liabilities | 316 | 309.3 |
Long-term debt, less current portion | 1,343.3 | 1,393.5 |
Long-term operating lease liabilities | 34.9 | 33.9 |
Deferred income taxes | 292.5 | 295.1 |
Other noncurrent liabilities | 123 | 122.7 |
Total liabilities | 2,109.7 | 2,154.5 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value; authorized shares: 10,000,000 as of July 1, 2023 and April 1, 2023; issued shares: 4,600,000 as of July 1, 2023 and April 1, 2023 | 0 | 0 |
Common stock, $.01 par value; authorized shares: 60,000,000 as of July 1, 2023 and April 1, 2023; issued shares: 30,056,347 and 29,989,948 as of July 1, 2023 and April 1, 2023, respectively | 0.3 | 0.3 |
Additional paid-in capital | 1,595.8 | 1,589.9 |
Accumulated other comprehensive income/(loss) | 4.3 | (4.1) |
Retained earnings | 1,074.2 | 1,029.9 |
Treasury stock, at cost, 999,202 shares and 966,398 shares as of July 1, 2023 and April 1, 2023, respectively | (86.9) | (80.1) |
Total stockholders’ equity | 2,587.7 | 2,535.9 |
Total liabilities and stockholders’ equity | $ 4,697.4 | $ 4,690.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Jul. 01, 2023 | Apr. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in Dollars) | $ 4 | $ 3.7 |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 4,600,000 | 4,600,000 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 60,000,000 | 60,000,000 |
Common stock, issued | 30,056,347 | 29,989,948 |
Treasury stock, shares | 999,202 | 966,398 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 387.1 | $ 354.1 |
Cost of sales | 219.2 | 212.9 |
Gross margin | 167.9 | 141.2 |
Operating expenses: | ||
Selling, general and administrative | 64.7 | 55.8 |
Other, net | 18.2 | 20.9 |
Total operating expenses | 82.9 | 76.7 |
Operating income | 85 | 64.5 |
Interest expense, net | 20.5 | 15.8 |
Other non-operating expense | 0.5 | 0.8 |
Income before income taxes | 64 | 47.9 |
Provision for income taxes | 14 | 10.5 |
Net income | 50 | 37.4 |
Preferred stock dividends | 5.7 | 5.7 |
Net income attributable to common stockholders | $ 44.3 | $ 31.7 |
Net income per common share attributable to common stockholders: | ||
Basic (in Dollars per share) | $ 1.53 | $ 1.11 |
Diluted (in Dollars per share) | $ 1.52 | $ 1.09 |
Weighted average common shares: | ||
Basic (in Shares) | 28,846,874 | 28,670,488 |
Diluted (in Shares) | 29,114,819 | 28,944,955 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 50 | $ 37.4 | |
Pension and postretirement liability adjustments, net of taxes | [1] | 0.5 | 0.5 |
Change in fair value of derivatives | [2] | 4.8 | |
Foreign currency translation adjustments | 3.1 | (6.4) | |
Total comprehensive income | $ 58.4 | $ 31.5 | |
[1]These adjustments were net of tax expense of $0.2 for each of the three-month periods ended July 1, 2023 and July 2, 2022.[2]These adjustments were net of tax expense of $1.4 for the three-month period ended July 1, 2023. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Pension and Postretirement Expenses [Member] | ||
Net of tax expense | $ 0.2 | $ 0.2 |
Change in Fair Value of Derivatives [Member] | ||
Net of tax expense | $ 1.4 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Millions | Common Stock | Preferred Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income/(Loss) | Retained Earnings | Treasury Stock | Total | ||
Balance at Apr. 02, 2022 | $ 0.3 | $ 0 | $ 1,564.3 | $ (5.8) | $ 886.1 | $ (72.4) | $ 2,372.5 | ||
Balance (in Shares) at Apr. 02, 2022 | 29,807,208 | 4,600,000 | (928,322) | ||||||
Net income | 37.4 | 37.4 | |||||||
Stock-based compensation | 3.8 | 3.8 | |||||||
Preferred stock dividends | (5.7) | (5.7) | |||||||
Repurchase of common stock | $ (6) | (6) | |||||||
Repurchase of common stock (in Shares) | (30,469) | ||||||||
Exercise of equity awards | 1.5 | 1.5 | |||||||
Exercise of equity awards (in Shares) | 13,713 | ||||||||
Change in pension and post-retirement plan benefit adjustments, net of tax expense of $0.2 | 0.5 | 0.5 | |||||||
Issuance of restricted stock, net of forfeitures | |||||||||
Issuance of restricted stock, net of forfeitures (in Shares) | 56,955 | ||||||||
Change in fair value of derivatives, net of tax benefit of $1.4 | [1] | ||||||||
Currency translation adjustments | (6.4) | (6.4) | |||||||
Balance at Jul. 02, 2022 | $ 0.3 | $ 0 | 1,569.6 | (11.7) | 917.8 | $ (78.4) | 2,397.6 | ||
Balance (in Shares) at Jul. 02, 2022 | 29,877,876 | 4,600,000 | (958,791) | ||||||
Balance at Apr. 01, 2023 | $ 0.3 | $ 0 | 1,589.9 | (4.1) | 1,029.9 | $ (80.1) | 2,535.9 | ||
Balance (in Shares) at Apr. 01, 2023 | 29,989,948 | 4,600,000 | (966,398) | ||||||
Net income | 50 | 50 | |||||||
Stock-based compensation | 4.9 | 4.9 | |||||||
Preferred stock dividends | (5.7) | (5.7) | |||||||
Repurchase of common stock | $ (6.8) | (6.8) | |||||||
Repurchase of common stock (in Shares) | (32,804) | ||||||||
Exercise of equity awards | 1 | 1 | |||||||
Exercise of equity awards (in Shares) | 11,772 | ||||||||
Change in pension and post-retirement plan benefit adjustments, net of tax expense of $0.2 | 0.5 | 0.5 | |||||||
Issuance of restricted stock, net of forfeitures | |||||||||
Issuance of restricted stock, net of forfeitures (in Shares) | 54,627 | ||||||||
Change in fair value of derivatives, net of tax benefit of $1.4 | 4.8 | 4.8 | [1] | ||||||
Currency translation adjustments | 3.1 | 3.1 | |||||||
Balance at Jul. 01, 2023 | $ 0.3 | $ 0 | $ 1,595.8 | $ 4.3 | $ 1,074.2 | $ (86.9) | $ 2,587.7 | ||
Balance (in Shares) at Jul. 01, 2023 | 30,056,347 | 4,600,000 | (999,202) | ||||||
[1]These adjustments were net of tax expense of $1.4 for the three-month period ended July 1, 2023. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Net of tax expense | $ 0.2 | $ 0.2 |
Net of tax expense | $ 1.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 50 | $ 37.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 29.7 | 28.6 |
Deferred income taxes | (2.6) | (4.1) |
Amortization of deferred financing costs | 0.9 | 2.3 |
Stock-based compensation | 5.4 | 3.8 |
Noncash operating lease expense | 1.7 | 1.7 |
Loss on disposition of assets | 0.2 | 0 |
Consolidation, restructuring, and other noncash charges | 0.3 | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (12) | 11.4 |
Inventory | (15.6) | (28.2) |
Prepaid expenses and other current assets | (2.1) | (2.8) |
Other noncurrent assets | (2.6) | (4.3) |
Accounts payable | (6.8) | 3.7 |
Accrued expenses and other current liabilities | 13 | 13.3 |
Other noncurrent liabilities | 2.2 | (3.8) |
Net cash provided by operating activities | 61.7 | 59 |
Cash flows from investing activities: | ||
Capital expenditures | (6.7) | (7.9) |
Proceeds from sale of assets | 0.2 | 0.1 |
Purchase price adjustments for acquisition of business | 23 | |
Net cash (used in)/provided by investing activities | (6.5) | 15.2 |
Cash flows from financing activities: | ||
Repayments of term loans | (50) | (125) |
Repayments of notes payable | (1.1) | (0.1) |
Principal payments on finance lease obligations | (1) | (1.1) |
Preferred stock dividends paid | (5.7) | (5.7) |
Exercise of stock options | 1 | 1.5 |
Repurchase of common stock | (6.8) | (6) |
Net cash used in financing activities | (63.6) | (136.4) |
Effect of exchange rate changes on cash | (0.3) | (1.1) |
Cash and cash equivalents: | ||
Decrease during the period | (8.7) | (63.3) |
Cash and cash equivalents, at beginning of period | 65.4 | 182.9 |
Cash and cash equivalents, at end of period | 56.7 | 119.6 |
Supplemental disclosures of cash flow information: | ||
Income taxes | 1.1 | 0.9 |
Interest | $ 25.1 | $ 19.3 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 01, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The interim consolidated financial statements included herein have been prepared by RBC Bearings Incorporated, a Delaware corporation (collectively with its subsidiaries, the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim financial statements included with this report have been prepared on a consistent basis with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 1, 2023 (our “Annual Report”). We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). As used in this report, the terms “we,” “us,” “our,” “RBC” and the “Company” mean RBC Bearings Incorporated and its subsidiaries, unless the context indicates another meaning. These financial statements reflect all adjustments, accruals, and estimates, consisting only of items of a normal recurring nature, that are, in the opinion of management, necessary for the fair presentation of the consolidated financial condition and consolidated results of operations for the interim periods presented. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in our Annual Report. The results of operations for the three-month period ended July 1, 2023 are not necessarily indicative of the operating results for the entire fiscal year ending March 30, 2024. The three-month periods ended July 1, 2023 and July 2, 2022 each included 13 weeks. All quantitative data contained in these financial statements and footnotes is stated in millions, except for share and per-share data and number of facilities. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jul. 01, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The Company’s significant accounting policies are detailed in “Note 2 - Summary of Significant Accounting Policies” of our Annual Report. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers Disaggregation of Revenue The following table disaggregates total revenue by end market which is how we view our reportable segments (see Note 12): Three Months Ended July 1, July 2, Aerospace/Defense $ 120.5 $ 99.4 Industrial 266.6 254.7 Total $ 387.1 $ 354.1 The following table disaggregates total revenue by geographic origin: Three Months Ended July 1, July 2, United States $ 341.3 $ 310.6 International 45.8 43.5 Total $ 387.1 $ 354.1 The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time: Three Months Ended July 1, July 2, Point-in-time 98 % 98 % Over time 2 % 2 % Total 100 % 100 % Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders meeting the definition of a contract for which work has not been performed or has been partially performed and excludes unexercised contract options. The duration of the majority of our contracts, as defined by ASC Topic 606, is less than one year. The Company has elected to apply the practical expedient, which allows the Company to exclude remaining performance obligations with an original expected duration of one year or less. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $413.4 at July 1, 2023. The Company expects to recognize revenue on approximately 63% and 90% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. Contract Balances The timing of revenue recognition, invoicing and cash collections affects accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the consolidated balance sheets. These assets and liabilities are reported on the consolidated balance sheets on an individual contract basis at the end of each reporting period. Contract Assets (Unbilled Receivables) As of July 1, 2023 and April 1, 2023, current contract assets were $5.3 and $4.5, respectively, and included within prepaid expenses and other current assets on the consolidated balance sheets. The increase in contract assets was primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations prior to billing, partially offset by amounts billed to customers during the period. As of July 1, 2023 and April 1, 2023, the Company did not have any contract assets classified as noncurrent on the consolidated balance sheets. Contract Liabilities (Deferred Revenue) As of July 1, 2023 and April 1, 2023, current contract liabilities were $23.1 and $20.6, respectively, and included within accrued expenses and other current liabilities on the consolidated balance sheets. The increase in current contract liabilities was primarily due to advance payments received and the reclassification of a portion of advance payments received from the noncurrent portion of contract liabilities partially offset by revenue recognized on customer contracts. For the three months ended July 1, 2023, the Company recognized revenues of $4.6 that were included in the contract liability balance as of April 1, 2023. For the three months ended July 2, 2022, the Company recognized revenues of $3.9 that were included in the contract liability balance at April 2, 2022. As of July 1, 2023 and April 1, 2023, noncurrent contract liabilities were $21.4 and $19.8, respectively, and included within other noncurrent liabilities on the consolidated balance sheets. The increase in noncurrent contract liabilities was primarily due to advance payments received, partially offset by the reclassification of a portion of advance payments received to the current portion of contract liabilities. Variable Consideration The amount of consideration to which the Company expects to be entitled in exchange for goods and services is not generally subject to significant variations. However, the Company does offer certain customers rebates, prompt payment discounts, end-user discounts and the right to return eligible products. The Company estimates this variable consideration using the expected value amount, which is based on historical experience. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company adjusts the estimate of revenue at the earlier of when the amount of consideration the Company expects to receive changes or when the consideration becomes fixed. Accrued customer rebates were $40.2 and $39.6 at July 1, 2023 and April 1, 2023, respectively, and are included within accrued expenses and other current liabilities on the consolidated balance sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 3 Months Ended |
Jul. 01, 2023 | |
Accumulated Other Comprehensive Income/(Loss) [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | 4. Accumulated Other Comprehensive Income/(Loss) The components of comprehensive income/(loss) that relate to the Company are net income, foreign currency translation adjustments, changes in fair value of derivative, and pension plan and postretirement benefits. The following summarizes the activity within each component of accumulated other comprehensive income/(loss), net of taxes: Currency Translation Change in Pension and Total Balance at April 1, 2023 $ (4.6 ) $ (2.2 ) $ 2.7 $ (4.1 ) Other comprehensive income/(loss) before reclassifications 3.1 — — 3.1 Amounts recorded in/reclassified from accumulated other comprehensive income/(loss) — 4.8 0.5 5.3 Net current period other comprehensive income/(loss) 3.1 4.8 0.5 8.4 Balance at July 1, 2023 $ (1.5 ) $ 2.6 $ 3.2 $ 4.3 |
Net income Per-share Attributab
Net income Per-share Attributable to Common Stockholders | 3 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Net income per-share attributable to common stockholders | 5. Net income Per-share Attributable to Common Stockholders Basic net income per-share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted net income per-share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the sum of the weighted-average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and the conversion of the outstanding 5.00% Series A Mandatory Convertible Preferred Stock (“MCPS”) to common shares. We exclude outstanding stock options, stock awards and the MCPS from the calculations if the effect would be anti-dilutive. The dilutive effect of the MCPS is calculated using the if-converted method. The if-converted method assumes that these securities were converted to shares of common stock at the later of the September 24, 2021 issuance date or the beginning of the reporting period to the extent that the effect is dilutive. If the effect is anti-dilutive, we calculate net income per-share attributable to common stockholders by adjusting the numerator for the effect of the cumulative MCPS dividends for the respective period. For the three-month periods ended July 1, 2023 and July 2, 2022, respectively, the effect of assuming the conversion of the 4,600,000 shares of MCPS into shares of common stock was anti-dilutive, and therefore excluded from the calculation of diluted earnings per-share attributable to common stockholders. Accordingly, net income was reduced by cumulative MCPS dividends, as presented in our consolidated statement of operations, for purposes of calculating the numerator in the diluted net income per share attributable to common stockholders. For the three months ended July 1, 2023, 125,898 employee stock options and 485 restricted shares were excluded from the calculation of diluted earnings per-share attributable to common stockholders. For the three months ended July 2, 2022, 202,894 employee stock options and 29,054 restricted shares were excluded from the calculation of diluted earnings per-share attributable to common stockholders. The inclusion of these employee stock options and restricted shares would have been anti-dilutive. The table below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic and diluted net income per-share attributable to common stockholders. Three Months Ended July 1, 2023 July 2, 2022 Net income $ 50.0 $ 37.4 Preferred stock dividends 5.7 5.7 Net income attributable to common stockholders $ 44.3 $ 31.7 Denominator: Denominator for basic net income per share attributable to common stockholders — weighted-average shares outstanding 28,846,874 28,670,488 Effect of dilution due to employee stock awards 267,945 274,467 Denominator for diluted net income per share attributable to common stockholders — weighted-average shares outstanding 29,114,819 28,944,955 Basic net income per share attributable to common stockholders $ 1.53 $ 1.11 Diluted net income per share attributable to common stockholders $ 1.52 $ 1.09 |
Fair Value
Fair Value | 3 Months Ended |
Jul. 01, 2023 | |
Fair Value [Abstract] | |
Fair Value | 6. Fair Value Fair value is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 – Unobservable inputs for the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As a result of the occurrence of triggering events such as purchase accounting for acquisitions, the Company measures certain assets and liabilities based on Level 3 inputs. Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, trade accounts payable, accrued expenses, short-term borrowings, long-term debt, and a derivative in the form of an interest rate swap. Due to their short-term nature, the carrying value of cash and cash equivalents, accounts receivable, trade accounts payable, accrued expenses and short-term borrowings are a reasonable estimate of their fair value. Long-term assets held on our balance sheets related to benefit plan obligations are measured at fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $448.0 and $450.0 at July 1, 2023 and April 1, 2023, respectively. The carrying value of this debt was $493.5 at July 1, 2023 and $493.3 at April 1, 2023. The fair value of long-term fixed-rate debt was measured using Level 1 inputs. Due to the nature of fair value calculations for variable-rate debt, the carrying value of the Company’s long-term variable-rate debt is a reasonable estimate of its fair value. The fair value of the interest rate swap was $3.4 at July 1, 2023, and is included in other noncurrent assets on the Company’s consolidated balance sheets, and $2.8 at April 1, 2023, and is included in other noncurrent liabilities on the Company’s consolidated balance sheets. The fair value of the interest rate swap is measured using Level 2 inputs. The Company does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments. |
Inventory
Inventory | 3 Months Ended |
Jul. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | 7. Inventory Inventories are stated at the lower of cost or net realizable value, using the first-in, first-out method, and are summarized below: July 1, 2023 April 1, 2023 Raw materials $ 131.6 $ 132.4 Work in process 141.7 132.5 Finished goods 330.0 322.3 $ 603.3 $ 587.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill Goodwill balances, by segment, consist of the following: Aerospace/ Industrial Total April 1, 2023 $ 194.1 $ 1,675.7 $ 1,869.8 Currency translation adjustments — 1.1 1.1 July 1, 2023 $ 194.1 $ 1,676.8 $ 1,870.9 Intangible Assets July 1, 2023 April 1, 2023 Weighted Average Gross Accumulated Gross Accumulated Product approvals 24 $ 50.7 $ 18.9 $ 50.7 $ 18.4 Customer relationships and lists 24 1,294.0 120.0 1,293.7 106.5 Trade names 25 215.4 25.6 215.4 23.3 Patents and trademarks 16 13.6 7.3 13.4 7.2 Domain names 10 0.4 0.4 0.4 0.4 Internal-use software 3 15.2 5.5 15.2 4.4 Other 5 1.1 1.1 1.1 1.1 1,590.4 178.8 1,589.9 161.3 Non-amortizable repair station certifications n/a 24.3 — 24.3 — Total 24 $ 1,614.7 $ 178.8 $ 1,614.2 $ 161.3 Amortization expense for definite-lived intangible assets during the three-month periods ended July 1, 2023 and July 2, 2022 was $17.5 and $17.3, respectively. These amounts are included in other, net on the Company’s consolidated statements of operations. Estimated amortization expense for the remainder of fiscal 2024 and for the five succeeding fiscal years and thereafter is as follows: Remainder of Fiscal 2024 $ 53.0 Fiscal 2025 70.5 Fiscal 2026 67.7 Fiscal 2027 65.9 Fiscal 2028 63.6 Fiscal 2029 63.6 Fiscal 2030 and thereafter 1,027.3 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Jul. 01, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities The significant components of accrued expenses and other current liabilities are as follows: July 1, 2023 April 1, 2023 Employee compensation and related benefits $ 33.4 $ 34.7 Taxes 34.5 17.5 Contract liabilities 23.1 20.6 Accrued rebates 40.2 39.6 Current finance lease liabilities 5.3 5.2 Accrued preferred stock dividends 4.9 4.9 Interest 5.1 10.6 Returns and warranties 7.6 7.5 Other 12.7 12.8 $ 166.8 $ 153.4 |
Debt
Debt | 3 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Domestic Credit Facility On November 1, 2021 RBC Bearings Incorporated, our top holding company, and our Roller Bearing Company of America, Inc. subsidiary (“RBCA”) entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as Administrative Agent, Collateral Agent, Swingline Lender and Letter of Credit Issuer and the other lenders party thereto. The Credit Agreement provides the Company with (a) a $1,300.0 term loan (the “Term Loan”), which was used to fund a portion of the cash purchase price for the acquisition of Dodge Industrial, Inc. (“Dodge”) and to pay related fees and expenses, and (b) a $500.0 revolving credit facility (the “Revolving Credit Facility” and together with the Term Loan, the “Facilities”). Debt issuance costs associated with the Credit Agreement totaled $14.9 and are being amortized over the life of the Credit Agreement. Prior to December 2022, amounts outstanding under the Facilities generally bore interest at either, at the Company’s option, (a) a base rate determined by reference to the higher of (i) Wells Fargo’s prime lending rate, (ii) the federal funds effective rate plus 1/2 of 1.00% and (iii) the one-month LIBOR rate plus 1.00% or (b) the LIBOR rate plus a specified margin, depending on the type of borrowing being made. The applicable margin was based on the Company’s consolidated ratio of total net debt to consolidated EBITDA (as defined within the Credit Agreement) from time to time. In December 2022 the Credit Agreement was amended to replace LIBOR with the secured overnight financing rate administered by the Federal Reserve Bank of New York (“SOFR”) so that borrowings under the Facilities denominated in U.S. dollars bear interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement) plus a credit spread adjustment of 0.10% plus a margin ranging from 0.75% to 2.00% depending on the Company’s consolidated ratio of total net debt to consolidated EBITDA. The Facilities are subject to a SOFR floor of 0.00%. As of July 1, 2023, the Company’s margin was 1.25% for SOFR loans, the commitment fee rate was 0.20%, and the letter of credit fee rate was 1.25%. A portion of the Term Loan is subject to a fixed-rate interest swap as discussed in Note 13, Derivative Financial Instruments. The Term Loan matures in November 2026 and amortizes in quarterly installments with the balance payable on the maturity date. The Company can elect to prepay some or all of the outstanding balance from time to time without penalty, which will offset future quarterly amortization installments. Due to prepayments previously made, the required future principal payments on the Term Loan are $0 for fiscal 2024, $0 for fiscal 2025, $0 for fiscal 2026, and $850.0 for fiscal 2027. The Revolving Credit Facility expires in November 2026, at which time all amounts outstanding under the Revolving Credit Facility will be payable. The Credit Agreement requires the Company to comply with various covenants, including the following financial covenants: (a) a maximum Total Net Leverage Ratio (as defined within the Credit Agreement) of 5.00:1.00, which maximum Total Net Leverage Ratio shall decrease during certain subsequent test periods as set forth in the Credit Agreement (provided that, no more than once during the term of the Facilities, such maximum ratio applicable at such time may be increased by the Company by 0.50:1.00 for a period of twelve (12) months after the consummation of a material acquisition); and (b) a minimum Interest Coverage Ratio of 2.00:1.00. As of July 1, 2023, the Company was in compliance with all debt covenants. The Credit Agreement allows the Company to, among other things, make distributions to stockholders, repurchase its stock, incur other debt or liens, or acquire or dispose of assets provided that the Company complies with certain requirements and limitations of the Credit Agreement. The Company’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Agreement, and the Company’s obligations and the domestic subsidiaries’ guaranty are secured by a pledge of substantially all of the assets of the Company and its domestic subsidiaries. As of July 1, 2023, $850.0 was outstanding under the Term Loan and $3.7 of the Revolving Credit Facility was being utilized to provide letters of credit to secure the Company’s obligations relating to certain insurance programs, and the Company had the ability to borrow up to an additional $496.3 under the Revolving Credit Facility. Senior Notes On October 7, 2021, RBCA issued $500.0 aggregate principal amount of 4.375% Senior Notes due 2029 (the “Senior Notes”). The net proceeds from the issuance of the Senior Notes were approximately $492.0 after deducting initial purchasers’ discounts and commissions and offering expenses. The Senior Notes were issued pursuant to an indenture with Wilmington Trust, National Association, as trustee (the “Indenture”). The Indenture contains covenants limiting the ability of the Company to (i) incur additional indebtedness or guarantee indebtedness, (ii) declare or pay dividends, redeem stock or make other distributions to stockholders, (iii) make investments, (iv) create liens or use assets as security in other transactions, (v) merge or consolidate, or sell, transfer, lease or dispose of substantially all of its assets, (vi) enter into transactions with affiliates, and (vii) sell or transfer certain assets. These covenants contain various exceptions, limitations and qualifications. At any time that the Senior Notes are rated investment grade, certain of these covenants will be suspended. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by RBC Bearings and certain of RBCA’s existing and future wholly-owned domestic subsidiaries that also guarantee the Credit Agreement. Interest on the Senior Notes accrues at a rate of 4.375% and is payable semi–annually in cash in arrears on April 15 and October 15 of each year. The Senior Notes will mature on October 15, 2029. The Company may redeem some or all of the Senior Notes at any time on or after October 15, 2024 at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The Company may also redeem up to 40% of the Senior Notes using the proceeds of certain equity offerings completed before October 15, 2024, at a redemption price equal to 104.375% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, at any time prior to October 15, 2024, the Company may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount, plus a “make–whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If the Company sells certain of its assets or experiences specific kinds of changes in control, the Company must offer to purchase the Senior Notes. Foreign Borrowing Arrangements One of our foreign subsidiaries, Schaublin SA (“Schaublin”), entered into a credit agreement in 2019 with Credit Suisse (Switzerland) Ltd. to provide Schaublin with a CHF 15.0 (approximately $15.4 USD) revolving credit facility, which was terminated in October 2022. Schaublin now has a CHF 5.0 (approximately $5.4 USD) revolving credit facility with Credit Suisse to provide future working capital, if necessary. As of July 1, 2023, $0.1 of the new facility was being utilized to provide a bank guarantee. Fees associated with the new facility are nominal. The balances payable under all our borrowing facilities are as follows: July 1, 2023 April 1, 2023 Revolver and term loan facilities $ 850.0 $ 900.0 Senior notes 500.0 500.0 Debt issuance costs (12.9 ) (13.7 ) Other 7.8 8.7 Total debt 1,344.9 1,395.0 Less: current portion 1.6 1.5 Long-term debt $ 1,343.3 $ 1,393.5 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company files income tax returns in numerous U.S. and foreign jurisdictions, with returns subject to examination for varying periods, but generally back to and including the year ending March 28, 2020, although certain tax credits generated in earlier years are open under statute from March 29, 2008. The Company is no longer subject to U.S. federal tax examination by the Internal Revenue Service for years ending before March 28, 2020. The effective income tax rates for the three-month periods ended July 1, 2023 and July 2, 2022, were 21.9% and 21.8%, respectively. In addition to discrete items, the effective income tax rates for both these periods were different from the U.S. statutory rates due to the foreign-derived intangible income provision and U.S. credit for increasing research activities, which decreased the rate, and state income taxes, foreign income taxes, and nondeductible stock-based compensation, which increased the rate. The effective income tax rate for the three-month period ended July 1, 2023 of 21.9% included $0.4 of discrete tax benefits associated with stock-based compensation and $0.1 of discrete tax benefits associated with other items. The effective income tax rate without discrete items for the three-month period ended July 1, 2023 would have been 22.6%. The effective income tax rate for the three-month period ended July 2, 2022 of 21.8% includes $0.6 of discrete tax benefit associated with stock-based compensation, along with $0.1 of discrete tax benefit for the release of unrecognized tax positions associated with a statute of limitations expiration. The effective income tax rate without discrete items for the three-month period ended July 2, 2022 would have been 23.1%. The Company believes it is reasonably possible that some of its unrecognized tax positions may be effectively settled within the next 12 months due to the closing of audits and the statute of limitations expiring in various jurisdictions. The decrease in the Company’s unrecognized tax positions, pertaining primarily to federal and state credits and state tax, is estimated to be approximately $2.1. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segments | 12. Reportable Segments The Company operates through operating segments and reports its financial results based on how its chief operating decision maker makes operating decisions, assesses the performance of the business, and allocates resources. These reportable operating segments are Aerospace/Defense and Industrial and are described below. Aerospace/Defense. Industrial. Segment performance is evaluated based on segment net sales and gross margin. Items not allocated to segment operating income include corporate administrative expenses and certain other amounts. Identifiable assets by reportable segment consist of those directly identified with the segment’s operations. Three Months Ended July 1, 2023 July 2, 2022 Net External Sales Aerospace/Defense $ 120.5 $ 99.4 Industrial 266.6 254.7 $ 387.1 $ 354.1 Gross Margin Aerospace/Defense $ 47.3 $ 38.6 Industrial 120.6 102.6 $ 167.9 $ 141.2 Selling, General & Administrative Expenses Aerospace/Defense $ 9.1 $ 7.5 Industrial 34.0 30.0 Corporate 21.6 18.3 $ 64.7 $ 55.8 Operating Income Aerospace/Defense $ 36.8 $ 29.5 Industrial 71.1 53.3 Corporate (22.9 ) (18.3 ) $ 85.0 $ 64.5 July 1, 2023 April 1, 2023 Total Assets Aerospace/Defense $ 762.6 $ 749.8 Industrial 3,846.7 3,845.7 Corporate 88.1 94.9 $ 4,697.4 $ 4,690.4 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Jul. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 13. Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations, including market risks relating to fluctuations in interest rates. Derivative financial instruments are recognized on the consolidated balance sheets as either assets or liabilities and are measured at fair value. Changes in the fair values of the derivative are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of a hedged transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income (loss) are subsequently included in earnings in the periods in which earnings are affected by the hedged item. The Company does not use derivative instruments for speculative purposes. On October 28, 2022, the Company entered into a three-year USD-denominated interest rate swap (the “Swap”) with a third-party financial counterparty under the Credit Agreement (see Note 10). The Swap was executed to protect the Company from interest rate volatility on our variable-rate Term Loan. The Swap became effective December 30, 2022 and is comprised of a $600.0 notional with a maturity of three years. We receive a variable rate based on one-month Term SOFR and pay a fixed rate of 4.455%. As of July 1, 2023, approximately 81.4% of our debt bears interest at a fixed rate. The notional on the Swap amortizes as follows: Year 1: $600.0 Year 2: $400.0 Year 3: $100.0 The Swap has been designated as a cash flow hedge of the variability of the first unhedged interest payments (the hedged transactions) paid over the hedging relationship’s specified time period of three years attributable to the borrowing’s contractually specified interest index on the hedged principal of its general borrowing program or replacement or refinancing thereof. The fair value of the Swap has been disclosed in Note 6. The accumulated other comprehensive income/(loss) derivative component balance was a $2.6 gain at July 1, 2023 and a $2.2 loss at April 1, 2023, net of taxes. The gain/loss reclassified from accumulated other comprehensive income/(loss) into earnings will be recorded as interest income/expense on the Swap and will be included in the operating section of the Company’s consolidated statements of cash flows. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregates total revenue by reportable segments | The following table disaggregates total revenue by end market which is how we view our reportable segments (see Note 12): Three Months Ended July 1, July 2, Aerospace/Defense $ 120.5 $ 99.4 Industrial 266.6 254.7 Total $ 387.1 $ 354.1 |
Schedule of disaggregates total revenue by geographic origin | The following table disaggregates total revenue by geographic origin: Three Months Ended July 1, July 2, United States $ 341.3 $ 310.6 International 45.8 43.5 Total $ 387.1 $ 354.1 |
Schedule of percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized | The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time: Three Months Ended July 1, July 2, Point-in-time 98 % 98 % Over time 2 % 2 % Total 100 % 100 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Loss) (Tables) | 3 Months Ended |
Jul. 01, 2023 | |
Accumulated Other Comprehensive Income/(Loss) [Abstract] | |
Schedule of accumulated other comprehensive income (loss), net of taxes | The following summarizes the activity within each component of accumulated other comprehensive income/(loss), net of taxes: Currency Translation Change in Pension and Total Balance at April 1, 2023 $ (4.6 ) $ (2.2 ) $ 2.7 $ (4.1 ) Other comprehensive income/(loss) before reclassifications 3.1 — — 3.1 Amounts recorded in/reclassified from accumulated other comprehensive income/(loss) — 4.8 0.5 5.3 Net current period other comprehensive income/(loss) 3.1 4.8 0.5 8.4 Balance at July 1, 2023 $ (1.5 ) $ 2.6 $ 3.2 $ 4.3 |
Net income Per-share Attribut_2
Net income Per-share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per common share | The table below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic and diluted net income per-share attributable to common stockholders. Three Months Ended July 1, 2023 July 2, 2022 Net income $ 50.0 $ 37.4 Preferred stock dividends 5.7 5.7 Net income attributable to common stockholders $ 44.3 $ 31.7 Denominator: Denominator for basic net income per share attributable to common stockholders — weighted-average shares outstanding 28,846,874 28,670,488 Effect of dilution due to employee stock awards 267,945 274,467 Denominator for diluted net income per share attributable to common stockholders — weighted-average shares outstanding 29,114,819 28,944,955 Basic net income per share attributable to common stockholders $ 1.53 $ 1.11 Diluted net income per share attributable to common stockholders $ 1.52 $ 1.09 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Jul. 01, 2023 | |
Schedule of Inventory Current [Abstract] | |
Schedule of inventory, current | Inventories are stated at the lower of cost or net realizable value, using the first-in, first-out method, and are summarized below: July 1, 2023 April 1, 2023 Raw materials $ 131.6 $ 132.4 Work in process 141.7 132.5 Finished goods 330.0 322.3 $ 603.3 $ 587.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill balances, by segment | Goodwill balances, by segment, consist of the following: Aerospace/ Industrial Total April 1, 2023 $ 194.1 $ 1,675.7 $ 1,869.8 Currency translation adjustments — 1.1 1.1 July 1, 2023 $ 194.1 $ 1,676.8 $ 1,870.9 |
Schedule of intangible assets | Intangible Assets July 1, 2023 April 1, 2023 Weighted Average Gross Accumulated Gross Accumulated Product approvals 24 $ 50.7 $ 18.9 $ 50.7 $ 18.4 Customer relationships and lists 24 1,294.0 120.0 1,293.7 106.5 Trade names 25 215.4 25.6 215.4 23.3 Patents and trademarks 16 13.6 7.3 13.4 7.2 Domain names 10 0.4 0.4 0.4 0.4 Internal-use software 3 15.2 5.5 15.2 4.4 Other 5 1.1 1.1 1.1 1.1 1,590.4 178.8 1,589.9 161.3 Non-amortizable repair station certifications n/a 24.3 — 24.3 — Total 24 $ 1,614.7 $ 178.8 $ 1,614.2 $ 161.3 |
Schedule of estimated amortization expense | Estimated amortization expense for the remainder of fiscal 2024 and for the five succeeding fiscal years and thereafter is as follows: Remainder of Fiscal 2024 $ 53.0 Fiscal 2025 70.5 Fiscal 2026 67.7 Fiscal 2027 65.9 Fiscal 2028 63.6 Fiscal 2029 63.6 Fiscal 2030 and thereafter 1,027.3 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Jul. 01, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | The significant components of accrued expenses and other current liabilities are as follows: July 1, 2023 April 1, 2023 Employee compensation and related benefits $ 33.4 $ 34.7 Taxes 34.5 17.5 Contract liabilities 23.1 20.6 Accrued rebates 40.2 39.6 Current finance lease liabilities 5.3 5.2 Accrued preferred stock dividends 4.9 4.9 Interest 5.1 10.6 Returns and warranties 7.6 7.5 Other 12.7 12.8 $ 166.8 $ 153.4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of balances payable under all our borrowing facilities | The balances payable under all our borrowing facilities are as follows: July 1, 2023 April 1, 2023 Revolver and term loan facilities $ 850.0 $ 900.0 Senior notes 500.0 500.0 Debt issuance costs (12.9 ) (13.7 ) Other 7.8 8.7 Total debt 1,344.9 1,395.0 Less: current portion 1.6 1.5 Long-term debt $ 1,343.3 $ 1,393.5 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Schedule of reportable segment | Identifiable assets by reportable segment consist of those directly identified with the segment’s operations. Three Months Ended July 1, 2023 July 2, 2022 Net External Sales Aerospace/Defense $ 120.5 $ 99.4 Industrial 266.6 254.7 $ 387.1 $ 354.1 Gross Margin Aerospace/Defense $ 47.3 $ 38.6 Industrial 120.6 102.6 $ 167.9 $ 141.2 Selling, General & Administrative Expenses Aerospace/Defense $ 9.1 $ 7.5 Industrial 34.0 30.0 Corporate 21.6 18.3 $ 64.7 $ 55.8 Operating Income Aerospace/Defense $ 36.8 $ 29.5 Industrial 71.1 53.3 Corporate (22.9 ) (18.3 ) $ 85.0 $ 64.5 July 1, 2023 April 1, 2023 Total Assets Aerospace/Defense $ 762.6 $ 749.8 Industrial 3,846.7 3,845.7 Corporate 88.1 94.9 $ 4,697.4 $ 4,690.4 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jul. 01, 2023 | Apr. 01, 2023 | Jul. 02, 2022 | Apr. 01, 2022 | |
Revenue from Contracts with Customers (Details) [Line Items] | ||||
Aggregate amount of the transaction price allocated to remaining performance obligations | $ 413.4 | |||
Performance obligations expected to be satisfied in the future | The Company expects to recognize revenue on approximately 63% and 90% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. | |||
Current contract assets | $ 5.3 | $ 4.5 | ||
Current contract liabilities | 23.1 | $ 20.6 | ||
Revenue recognized included in the contract liability | 4.6 | $ 3.9 | ||
Accrued rebates | 40.2 | 39.6 | ||
Advance Payment [Member] | ||||
Revenue from Contracts with Customers (Details) [Line Items] | ||||
Noncurrent contract liabilities | $ 21.4 | $ 19.8 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) - Schedule of disaggregates total revenue by reportable segments - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Revenue, Major Customer [Line Items] | ||
Net sales | $ 387.1 | $ 354.1 |
Aerospace/Defense [Member] | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 120.5 | 99.4 |
Industrial [Member] | ||
Revenue, Major Customer [Line Items] | ||
Net sales | $ 266.6 | $ 254.7 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Details) - Schedule of disaggregates total revenue by geographic origin - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 387.1 | $ 354.1 |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 341.3 | 310.6 |
International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 45.8 | $ 43.5 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers (Details) - Schedule of percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue | 100% | 100% |
Point-in-time [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue | 98% | 98% |
Over time [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue | 2% | 2% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) (Details) - Schedule of accumulated other comprehensive income (loss), net of taxes $ in Millions | 3 Months Ended |
Jul. 01, 2023 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at April 1, 2023 | $ (4.1) |
Other comprehensive income/(loss) before reclassifications | 3.1 |
Amounts recorded in/reclassified from accumulated other comprehensive income/(loss) | 5.3 |
Net current period other comprehensive income/(loss) | 8.4 |
Balance at July 1, 2023 | 4.3 |
Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at April 1, 2023 | (4.6) |
Other comprehensive income/(loss) before reclassifications | 3.1 |
Amounts recorded in/reclassified from accumulated other comprehensive income/(loss) | |
Net current period other comprehensive income/(loss) | 3.1 |
Balance at July 1, 2023 | (1.5) |
Change in Fair Value of Derivatives [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at April 1, 2023 | (2.2) |
Other comprehensive income/(loss) before reclassifications | |
Amounts recorded in/reclassified from accumulated other comprehensive income/(loss) | 4.8 |
Net current period other comprehensive income/(loss) | 4.8 |
Balance at July 1, 2023 | 2.6 |
Pension and Postretirement Liability [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at April 1, 2023 | 2.7 |
Other comprehensive income/(loss) before reclassifications | |
Amounts recorded in/reclassified from accumulated other comprehensive income/(loss) | 0.5 |
Net current period other comprehensive income/(loss) | 0.5 |
Balance at July 1, 2023 | $ 3.2 |
Net income Per-share Attribut_3
Net income Per-share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Net income Per-share Attributable to Common Stockholders (Details) [Line Items] | ||
Conversion percentage | 5% | |
Conversion, shares | 4,600,000 | |
Employee Stock Option [Member] | ||
Net income Per-share Attributable to Common Stockholders (Details) [Line Items] | ||
Number of shares | 125,898 | 202,894 |
Restricted Stock [Member] | ||
Net income Per-share Attributable to Common Stockholders (Details) [Line Items] | ||
Number of shares | 485 | 29,054 |
Net income Per-share Attribut_4
Net income Per-share Attributable to Common Stockholders (Details) - Schedule of basic and diluted net income per common share - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Schedule of Basic and Diluted Net Income Per Common Share [Abstract] | ||
Net income | $ 50 | $ 37.4 |
Preferred stock dividends | 5.7 | 5.7 |
Net income attributable to common stockholders | $ 44.3 | $ 31.7 |
Denominator: | ||
Denominator for basic net income per-share attributable to common stockholders — weighted-average shares outstanding | 28,846,874 | 28,670,488 |
Effect of dilution due to employee stock awards | 267,945 | 274,467 |
Denominator for diluted net income per-share attributable to common stockholders — weighted-average shares outstanding | 29,114,819 | 28,944,955 |
Basic net income per-share attributable to common stockholders | $ 1.53 | $ 1.11 |
Diluted net income per-share attributable to common stockholders | $ 1.52 | $ 1.09 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Apr. 01, 2023 |
Fair Value (Details) [Line Items] | ||
Long-term fixed-rate debt, based on quoted market prices | $ 448 | $ 450 |
Carrying value of debt amount | 493.5 | 493.3 |
Fair Value of Interest Rate Swap [Member] | ||
Fair Value (Details) [Line Items] | ||
Fair value of the interest rate swap | $ 3.4 | $ 2.8 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of inventory, current - USD ($) $ in Millions | Jul. 01, 2023 | Apr. 01, 2023 |
Schedule of Inventory Current [Abstract] | ||
Raw materials | $ 131.6 | $ 132.4 |
Work in process | 141.7 | 132.5 |
Finished goods | 330 | 322.3 |
Inventory net, total | $ 603.3 | $ 587.2 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 17.5 | $ 17.3 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details) - Schedule of goodwill balances, by segment $ in Millions | 3 Months Ended |
Jul. 01, 2023 USD ($) | |
Goodwill [Line Items] | |
Balance at beginning | $ 1,869.8 |
Currency translation adjustments | 1.1 |
Balance at ending | 1,870.9 |
Aerospace/ Defense [Member] | |
Goodwill [Line Items] | |
Balance at beginning | 194.1 |
Currency translation adjustments | |
Balance at ending | 194.1 |
Industrial [Member] | |
Goodwill [Line Items] | |
Balance at beginning | 1,675.7 |
Currency translation adjustments | 1.1 |
Balance at ending | $ 1,676.8 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details) - Schedule of intangible assets - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 01, 2023 | Apr. 01, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,590.4 | $ 1,589.9 |
Accumulated Amortization | 178.8 | $ 161.3 |
Non-amortizable repair station certifications, Weighted Average Useful Lives | ||
Non-amortizable repair station certifications, Gross Carrying Amount | 24.3 | $ 24.3 |
Non-amortizable repair station certifications, Accumulated Amortization | ||
Total, Weighted Average Useful Lives | 24 years | |
Total, Gross Carrying Amount | 1,614.7 | $ 1,614.2 |
Total, Accumulated Amortization | 178.8 | $ 161.3 |
Product approvals [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 24 years | |
Gross Carrying Amount | 50.7 | $ 50.7 |
Accumulated Amortization | 18.9 | $ 18.4 |
Customer relationships and lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 24 years | |
Gross Carrying Amount | 1,294 | $ 1,293.7 |
Accumulated Amortization | 120 | $ 106.5 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 25 years | |
Gross Carrying Amount | 215.4 | $ 215.4 |
Accumulated Amortization | 25.6 | $ 23.3 |
Patents and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 16 years | |
Gross Carrying Amount | 13.6 | $ 13.4 |
Accumulated Amortization | 7.3 | $ 7.2 |
Domain names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 10 years | |
Gross Carrying Amount | 0.4 | $ 0.4 |
Accumulated Amortization | 0.4 | $ 0.4 |
Internal-use software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 3 years | |
Gross Carrying Amount | 15.2 | $ 15.2 |
Accumulated Amortization | 5.5 | $ 4.4 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 5 years | |
Gross Carrying Amount | 1.1 | $ 1.1 |
Accumulated Amortization | $ 1.1 | $ 1.1 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details) - Schedule of estimated amortization expense $ in Millions | Jul. 01, 2024 USD ($) |
Schedule of Estimated Amortization Expense [Abstract] | |
Remainder of Fiscal 2024 | $ 53 |
Fiscal 2025 | 70.5 |
Fiscal 2026 | 67.7 |
Fiscal 2027 | 65.9 |
Fiscal 2028 | 63.6 |
Fiscal 2029 | 63.6 |
Fiscal 2030 and thereafter | $ 1,027.3 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Apr. 01, 2023 | |
Schedule of Accrued Expenses and Other Current Liabilities [Abstract] | ||
Employee compensation and related benefits | $ 33.4 | $ 34.7 |
Taxes | 34.5 | 17.5 |
Contract liabilities | 23.1 | 20.6 |
Accrued rebates | 40.2 | 39.6 |
Current finance lease liabilities | 5.3 | 5.2 |
Accrued preferred stock dividends | 4.9 | 4.9 |
Interest | 5.1 | 10.6 |
Returns and warranties | 7.6 | 7.5 |
Other | 12.7 | 12.8 |
Accrued expenses and other current liabilities | $ 166.8 | $ 153.4 |
Debt (Details)
Debt (Details) SFr in Millions, $ in Millions | 3 Months Ended | |||||
Oct. 07, 2021 USD ($) | Jul. 01, 2023 USD ($) | Jul. 01, 2022 USD ($) | Jul. 01, 2022 CHF (SFr) | Feb. 28, 2022 USD ($) | Feb. 28, 2022 CHF (SFr) | |
Debt Instrument [Line Items] | ||||||
Credit fee rate | 0.20% | |||||
Letter of credit fee rate | 1.25% | |||||
Future principal payments for fiscal 2024 | $ 0 | |||||
Future principal payments for fiscal 2025 | 0 | |||||
Future principal payments for fiscal 2026 | 0 | |||||
Future principal payments for fiscal 2027 | $ 850 | |||||
New credit agreement, description | The Credit Agreement requires the Company to comply with various covenants, including the following financial covenants: (a) a maximum Total Net Leverage Ratio (as defined within the Credit Agreement) of 5.00:1.00, which maximum Total Net Leverage Ratio shall decrease during certain subsequent test periods as set forth in the Credit Agreement (provided that, no more than once during the term of the Facilities, such maximum ratio applicable at such time may be increased by the Company by 0.50:1.00 for a period of twelve (12) months after the consummation of a material acquisition); and (b) a minimum Interest Coverage Ratio of 2.00:1.00. | |||||
Outstanding amounts still owed under the term loan facility | $ 850 | |||||
Revolving credit facility, borrowing capacity | $ 496.3 | |||||
Net proceeds from issuance of senior notes | $ 492 | |||||
Senior notes, interest rate | 4.375% | |||||
Matured date | Oct. 15, 2029 | |||||
Provide bank guarantee amount | $ 0.1 | |||||
October 15, 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage senior Notes proceeds | 40% | |||||
Redemption price of senior notes | 104.375% | |||||
Term Loan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit fee rate | 1,300% | |||||
Make Whole Premium [Member] | October 15, 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price of senior notes | 100% | |||||
New Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | $ 3.7 | |||||
Debt instrument, description of variable rate basis | amounts outstanding under the Facilities generally bore interest at either, at the Company’s option, (a) a base rate determined by reference to the higher of (i) Wells Fargo’s prime lending rate, (ii) the federal funds effective rate plus 1/2 of 1.00% and (iii) the one-month LIBOR rate plus 1.00% or (b) the LIBOR rate plus a specified margin, depending on the type of borrowing being made. The applicable margin was based on the Company’s consolidated ratio of total net debt to consolidated EBITDA (as defined within the Credit Agreement) from time to time. In December 2022 the Credit Agreement was amended to replace LIBOR with the secured overnight financing rate administered by the Federal Reserve Bank of New York (“SOFR”) so that borrowings under the Facilities denominated in U.S. dollars bear interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement) plus a credit spread adjustment of 0.10% plus a margin ranging from 0.75% to 2.00% depending on the Company’s consolidated ratio of total net debt to consolidated EBITDA. The Facilities are subject to a SOFR floor of 0.00%. As of July 1, 2023, the Company’s margin was 1.25% for SOFR loans | |||||
Foreign Term Loan [Member] | Schaublin [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | $ 5.4 | SFr 5 | $ 15.4 | SFr 15 | ||
Credit Agreement [Member] | Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | $ 500 | |||||
Unamortized debt issuance costs | $ 14.9 | |||||
Senior Notes due 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, aggregate principal amount | $ 500 | |||||
Senior notes, interest rate | 4.375% |
Debt (Details) - Schedule of ba
Debt (Details) - Schedule of balances payable under all our borrowing facilities - USD ($) $ in Millions | Jul. 01, 2023 | Apr. 01, 2023 |
Schedule of Balances Payable Under All Borrowing Facilities [Abstract] | ||
Revolver and term loan facilities | $ 850 | $ 900 |
Senior notes | 500 | 500 |
Debt issuance costs | (12.9) | (13.7) |
Other | 7.8 | 8.7 |
Total debt | 1,344.9 | 1,395 |
Less: current portion | 1.6 | 1.5 |
Long-term debt | $ 1,343.3 | $ 1,393.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Income Taxes (Details) [Line Items] | ||
Effective income tax rates | 21.90% | |
Tax benefits stock-based compensation (in Dollars) | $ 0.4 | $ 0.6 |
Income tax benefits (in Dollars) | $ 14 | 10.5 |
Effective income tax rate without discrete items | 22.60% | |
Unrecognized tax positions (in Dollars) | $ 0.1 | |
U.S. Federal and State [Member] | ||
Income Taxes (Details) [Line Items] | ||
Effective income tax rates | 21.90% | 21.80% |
U.S. federal and state credits (in Dollars) | $ 2.1 | |
Effective Income Taxes [Member] | ||
Income Taxes (Details) [Line Items] | ||
Effective income tax rates | 21.80% | |
Income tax benefits (in Dollars) | $ 0.1 | |
Effective income tax rate without discrete items | 23.10% |
Reportable Segments (Details) -
Reportable Segments (Details) - Schedule of reportable segment - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Apr. 01, 2023 | |
Net External Sales | |||
Net External Sales | $ 387.1 | $ 354.1 | |
Gross Margin | |||
Gross Margin | 167.9 | 141.2 | |
Selling, General & Administrative Expenses | |||
Selling, General & Administrative Expenses | 64.7 | 55.8 | |
Operating Income | |||
Operating Income | 85 | 64.5 | |
Total Assets | |||
Total Assets | 4,697.4 | $ 4,690.4 | |
Aerospace/ Defense [Member] | |||
Net External Sales | |||
Net External Sales | 120.5 | 99.4 | |
Gross Margin | |||
Gross Margin | 47.3 | 38.6 | |
Selling, General & Administrative Expenses | |||
Selling, General & Administrative Expenses | 9.1 | 7.5 | |
Operating Income | |||
Operating Income | 36.8 | 29.5 | |
Total Assets | |||
Total Assets | 762.6 | 749.8 | |
Industrial [Member] | |||
Net External Sales | |||
Net External Sales | 266.6 | 254.7 | |
Gross Margin | |||
Gross Margin | 120.6 | 102.6 | |
Selling, General & Administrative Expenses | |||
Selling, General & Administrative Expenses | 34 | 30 | |
Operating Income | |||
Operating Income | 71.1 | 53.3 | |
Total Assets | |||
Total Assets | 3,846.7 | 3,845.7 | |
Corporates [Member] | |||
Selling, General & Administrative Expenses | |||
Selling, General & Administrative Expenses | 21.6 | 18.3 | |
Operating Income | |||
Operating Income | (22.9) | $ (18.3) | |
Total Assets | |||
Total Assets | $ 88.1 | $ 94.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2023 | Jul. 01, 2023 | Dec. 30, 2022 | |
Derivative Financial Instruments (Details) [Line Items] | |||
Maturity years | 3 years | ||
Fixed rate of interest percentage | 4.455% | ||
Specified time period | 3 years | ||
Other comprehensive ioss derivative component | $ 2.6 | ||
Year 1 [Member] | |||
Derivative Financial Instruments (Details) [Line Items] | |||
Notional amount | 600 | ||
Year 2 [Member] | |||
Derivative Financial Instruments (Details) [Line Items] | |||
Notional amount | 400 | ||
Year Three [Member] | |||
Derivative Financial Instruments (Details) [Line Items] | |||
Notional amount | $ 100 | ||
Interest Rate Swap [Member] | |||
Derivative Financial Instruments (Details) [Line Items] | |||
Notional amount | $ 600 | ||
Percentage of debt that bears interest at a fixed rate | 81.40% | ||
Other comprehensive loss derivative component | $ 2.2 |