Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 28, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | ALTRA INDUSTRIAL MOTION CORP. | |
Entity Central Index Key | 0001374535 | |
Trading Symbol | AIMC | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-33209 | |
Entity Tax Identification Number | 61-1478870 | |
Entity Address, Address Line One | 300 Granite Street | |
Entity Address, Address Line Two | Suite 201 | |
Entity Address, City or Town | Braintree | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02184 | |
City Area Code | 781 | |
Local Phone Number | 917-0600 | |
Entity Common Stock, Shares Outstanding (in shares) | 65,066,459 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.001 par value |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 192.9 | $ 246.1 |
Trade receivables, less allowance for credit losses of $4.2 and $4.1 million at June 30, 2022 and December 31, 2021, respectively | 271.6 | 224.5 |
Inventories | 316.1 | 267.8 |
Income tax receivable | 23.5 | 11.7 |
Assets held for sale | 377.3 | |
Prepaid expenses and other current assets | 36.8 | 40.4 |
Total current assets | 840.9 | 1,167.8 |
Property, plant and equipment, net | 271.8 | 275.8 |
Goodwill | 1,520.9 | 1,564 |
Intangible assets, net | 998 | 1,057.2 |
Deferred income taxes | 1.2 | 2.3 |
Other non-current assets | 17 | 13.5 |
Operating lease right of use assets | 44.4 | 50 |
Total assets | 3,694.2 | 4,130.6 |
Current liabilities: | ||
Accounts payable | 183.9 | 173.3 |
Accrued payroll | 63.3 | 81.8 |
Accruals and other current liabilities | 82 | 77 |
Income tax payable | 3.7 | 6 |
Current portion of long-term debt | 15.6 | 11.1 |
Liabilities held for sale | 53 | |
Operating lease liabilities | 13.5 | 14.3 |
Total current liabilities | 362 | 416.5 |
Long-term debt, net of current portion | 1,070.1 | 1,401 |
Deferred income taxes | 249.5 | 250.5 |
Pension liabilities | 27.8 | 29.9 |
Long-term taxes payable | 1.8 | 2.7 |
Other long-term liabilities | 6 | 7.3 |
Operating lease liabilities, net of current portion | 32.7 | 37.6 |
Stockholders’ equity: | ||
Common stock ($0.001 par value per share, 120,000,000 shares authorized, 65,066,459 and 64,923,539 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively) | 0.1 | 0.1 |
Additional paid-in capital | 1,722.5 | 1,718.4 |
Retained earnings | 337.5 | 277.6 |
Accumulated other comprehensive loss | (115.8) | (11) |
Total stockholders’ equity | 1,944.3 | 1,985.1 |
Total liabilities and stockholders’ equity | $ 3,694.2 | $ 4,130.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 4.2 | $ 4.1 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 65,066,459 | 64,923,539 |
Common stock, shares outstanding (in shares) | 65,066,459 | 64,923,539 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 498.1 | $ 488.6 | $ 1,009.8 | $ 960.7 |
Cost of sales | 324.9 | 312.7 | 656.3 | 613.1 |
Gross profit | 173.2 | 175.9 | 353.5 | 347.6 |
Operating expenses: | ||||
Selling, general and administrative expenses | 90.8 | 93.5 | 179.4 | 183.3 |
Impairment charges | 2.2 | 8.3 | ||
Research and development expenses | 16 | 16.1 | 33.6 | 32 |
Restructuring costs | 0.5 | 0.8 | 0.9 | 1.7 |
Total operating expenses | 109.5 | 110.4 | 222.2 | 217 |
Income from operations | 63.7 | 65.5 | 131.3 | 130.6 |
Other non-operating (income) and expense: | ||||
Interest expense, net | 11.8 | 16.5 | 23.1 | 33.4 |
Other non-operating income, net | (1.9) | (1.7) | (2) | (3.2) |
Total other non-operating (income) expense, net | 9.9 | 14.8 | 21.1 | 30.2 |
Income before income taxes | 53.8 | 50.7 | 110.2 | 100.4 |
Provision for income taxes | 27.5 | 9.9 | 39.1 | 20.4 |
Net income | $ 26.3 | $ 40.8 | $ 71.1 | $ 80 |
Weighted average shares, basic | 65.1 | 64.8 | 65 | 64.8 |
Weighted average shares, diluted | 65.3 | 65.4 | 65.3 | 65.4 |
Net income per share: | ||||
Basic | $ 0.40 | $ 0.63 | $ 1.09 | $ 1.23 |
Diluted | 0.40 | 0.62 | 1.09 | 1.22 |
Cash dividend declared per share | $ 0.09 | $ 0.08 | $ 0.17 | $ 0.14 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 26.3 | $ 40.8 | $ 71.1 | $ 80 |
Other comprehensive income (loss): | ||||
Reclassification of interest rate swap, net of tax | 2.3 | 4.7 | ||
Pension adjustments, net of tax | 1.2 | 1.2 | ||
Amortization of actuarial losses, net of tax | (0.3) | 0.1 | (0.4) | 0.1 |
Foreign currency translation adjustment | (87) | 19.6 | (104.4) | (23.4) |
Total other comprehensive loss: | (87.3) | 23.2 | (104.8) | (17.4) |
Comprehensive income (loss) | $ (61) | $ 64 | $ (33.7) | $ 62.6 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 71.1 | $ 80 |
Adjustments to reconcile net income to net operating cash flows: | ||
Depreciation | 20.1 | 26.4 |
Amortization of intangible assets | 27.8 | 35.3 |
Amortization of deferred financing costs | 0.5 | 2.3 |
Gain on foreign currency, net | (1.2) | (0.1) |
Accretion of debt discount | 0.1 | 0.2 |
Non-cash amortization of interest rate swap expense | 6.1 | |
Impairment charges | 8.3 | |
Unrealized gain on investment in MTEK Industry AB | (0.7) | |
Gain on disposal and other | (0.2) | (0.8) |
Expense for deferred taxes | 8.1 | |
Stock-based compensation | 8.2 | 7.5 |
Amortization of inventory fair value adjustment | 2.4 | |
Changes in assets and liabilities: | ||
Trade receivables, net | (68) | (19.6) |
Inventories | (58.4) | (29.3) |
Accounts payable and accrued liabilities | 12.5 | 17 |
Other current assets and liabilities | (16.2) | (25.6) |
Other operating assets and liabilities | (2.9) | 0.7 |
JVS transaction costs paid | (4.3) | |
Net cash provided by operating activities | 7.2 | 100.1 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (30.6) | (17.5) |
Proceeds from sale of building | 2.2 | |
Proceeds from sale of JVS business | 325.9 | |
Investment in MTEK Industry AB | (4.6) | |
Nook Industries acquisition purchase price adjustment | (0.6) | |
Net cash provided by (used in) investing activities | 290.1 | (15.3) |
Cash flows from financing activities | ||
Payments on Revolving Credit Facility | (335) | |
Borrowing under Revolving Credit Facility | 15 | |
Dividend payments | (10.5) | (7.8) |
Net payments on financing leases, mortgages, and other obligations | (0.4) | (1.5) |
Net proceeds from China debt | 2.8 | |
Proceeds from issuance of common stock upon exercise of options | 2.2 | |
Shares surrendered for tax withholding | (4.1) | (3.1) |
Net cash used in financing activities | (340) | (57.4) |
Effect of exchange rate changes on cash and cash equivalents | (10.5) | (4) |
Net change in cash and cash equivalents | (53.2) | 23.4 |
Cash and cash equivalents at beginning of period | 246.1 | 254.4 |
Cash and cash equivalents at end of period | 192.9 | 277.8 |
Cash paid during the period for: | ||
Interest paid on borrowings | 22.6 | 24.9 |
Income taxes paid | 49.4 | 43.3 |
Term Loan A | ||
Cash flows from financing activities | ||
Payments on Term Loan Facility | $ (5) | |
Term Loan B | ||
Cash flows from financing activities | ||
Payments on Term Loan Facility | $ (50) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2020 | $ 1,996.7 | $ 0.1 | $ 1,706 | $ 269.5 | $ 21.1 |
Beginning balance (in shares) at Dec. 31, 2020 | 64.7 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock, net of withholdings | 4.4 | 4.4 | |||
Stock-based compensation and vesting of restricted stock, net of withholdings (in shares) | 0.1 | ||||
Issuance of common stock upon exercise of options | 2.2 | 2.2 | |||
Issuance of common stock upon exercise of options (in shares) | 0.1 | ||||
Net income | 80 | 80 | |||
Dividends declared | (9.2) | (9.2) | |||
Total comprehensive loss, net of tax | (17.4) | (17.4) | |||
Ending balance at Jun. 30, 2021 | 2,056.7 | $ 0.1 | 1,712.6 | 340.3 | 3.7 |
Ending balance (in shares) at Jun. 30, 2021 | 64.9 | ||||
Beginning balance at Mar. 31, 2021 | 1,991.8 | $ 0.1 | 1,706.4 | 304.8 | (19.5) |
Beginning balance (in shares) at Mar. 31, 2021 | 64.8 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock, net of withholdings | 4 | 4 | |||
Issuance of common stock upon exercise of options | 2.2 | 2.2 | |||
Issuance of common stock upon exercise of options (in shares) | 0.1 | ||||
Net income | 40.8 | 40.8 | |||
Dividends declared | (5.3) | (5.3) | |||
Total comprehensive loss, net of tax | 23.2 | 23.2 | |||
Ending balance at Jun. 30, 2021 | 2,056.7 | $ 0.1 | 1,712.6 | 340.3 | 3.7 |
Ending balance (in shares) at Jun. 30, 2021 | 64.9 | ||||
Beginning balance at Dec. 31, 2021 | 1,985.1 | $ 0.1 | 1,718.4 | 277.6 | (11) |
Beginning balance (in shares) at Dec. 31, 2021 | 64.9 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock, net of withholdings | 4.1 | 4.1 | |||
Stock-based compensation and vesting of restricted stock, net of withholdings (in shares) | 0.2 | ||||
Net income | 71.1 | 71.1 | |||
Dividends declared | (11.2) | (11.2) | |||
Total comprehensive loss, net of tax | (104.8) | (104.8) | |||
Ending balance at Jun. 30, 2022 | 1,944.3 | $ 0.1 | 1,722.5 | 337.5 | (115.8) |
Ending balance (in shares) at Jun. 30, 2022 | 65.1 | ||||
Beginning balance at Mar. 31, 2022 | 2,007 | $ 0.1 | 1,718.2 | 317.2 | (28.5) |
Beginning balance (in shares) at Mar. 31, 2022 | 65.1 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock, net of withholdings | 4.3 | 4.3 | |||
Net income | 26.3 | 26.3 | |||
Dividends declared | (6) | (6) | |||
Total comprehensive loss, net of tax | (87.3) | (87.3) | |||
Ending balance at Jun. 30, 2022 | $ 1,944.3 | $ 0.1 | $ 1,722.5 | $ 337.5 | $ (115.8) |
Ending balance (in shares) at Jun. 30, 2022 | 65.1 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash dividend declared | $ 0.09 | $ 0.08 | $ 0.17 | $ 0.14 |
Retained Earnings [Member] | ||||
Cash dividend declared | $ 0.09 | $ 0.08 | $ 0.17 | $ 0.14 |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | 1. Organization and Nature of Operations Headquartered in Braintree, Massachusetts, Altra Industrial Motion Corp. (the “Company”, “Altra”, “we”, or “our”) is a leading global designer, producer and marketer of a wide range of electro-mechanical power transmission motion control (“PTMC”) products. The Company brings together strong brands with production facilities in 16 countries. As of June 30, 2022, Altra’s leading brands included Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Kollmorgen, Lamiflex Couplings, Marland Clutch, Matrix, Nook Industries, Nuttall Gear, Portescap, Stieber Clutch, Stromag, Svendborg Brakes, TB Wood’s, Thomson, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles in the United States, or GAAP. These statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 , filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2022. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s financial position and cash flows for the interim periods presented. The results are not necessarily indicative of future results. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. |
Recent Accounting Standards
Recent Accounting Standards | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Standards | 3. Recent Accounting Standards Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This ASU provides relief from certain accounting consequences that could result from the global markets’ anticipated transition away from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The relief provided by this ASU is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The optional amendments are effective as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the effect of the adoption of this standard on the Company. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): A ccounting for Contract Assets and Contract Liabilities from Contracts with Customers , which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an entity generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers . ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendment. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this new guidance on the consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 4. Acquisitions and Divestitures Nook Industries Acquisition On December 31, 2021 , the Company acquired all of the issued and outstanding equity interests of Nook Industries, LLC ("Nook"), a leader in the U.S. engineered linear motion industry. The acquisition expands the Company's current portfolio of linear product offerings. The acquisition was accounted for as a business combination using the acquisition method of accounting and the results have been integrated into the Company's Automation & Specialty ("A&S") segment. The aggregate purchase price of approximately $ 138.5 million, inclusive of certain post-closing adjustments but subject to others, consisted of $ 125.2 million of cash transferred, net of $ 5.1 million of cash acquired, and a noncontingent purchase price holdback of $ 8.2 million. The purchase price holdback was recorded in accruals and other current liabilities at December 31, 2021 and was paid in January 2022. The Company borrowed $ 130.0 million under its Revolving Credit Facility in December 2021 to finance the transaction. The fair value of all the acquired identifiable assets and liabilities summarized below are based on preliminary valuations and are subject to change as the Company obtains additional information during the acquisition measurement period. The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. The goodwill is deductible for income tax purposes. The Company recorded certain measurement period adjustments during the quarter and year to date period ended June 30, 2022 in the amount of $ 0.6 million. The purchase price allocation below includes such adjustments: At Acquisition Date (As Adjusted) Total cash consideration $ 129.9 Purchase price holdback 8.2 Fair value of consideration transferred 138.1 Recognized identifiable assets acquired and liabilities Cash and cash equivalents 5.1 Receivables 3.7 Inventory 10.8 Prepaids and other current assets 0.4 Property, plant and equipment 12.8 Deferred tax asset 0.9 Other non-current assets 5.0 Intangibles 55.1 Accounts payable ( 2.9 ) Accrued payroll ( 0.7 ) Accrued expenses and other current liabilities ( 2.5 ) Other long term liability ( 4.6 ) Total identifiable net assets acquired 83.1 Goodwill $ 55.0 Intangible assets acquired consist of: Customer relationships $ 54.0 Trade name 1.1 Total intangible assets $ 55.1 The following table sets forth the unaudited pro forma results of operations of the Company for the quarter and year to date periods ended June 30, 2021 as if the Company had acquired Nook on January 1, 2021. The pro forma information contains the actual operating results of the Company and the Nook business, adjusted to include the pro forma impact of (i) additional depreciation expense as a result of estimated depreciation based on the fair value of fixed assets; (ii) additional expense as a result of the estimated amortization of identifiable intangible assets; (iii) additional interest expense associated with the borrowings used to finance the acquisition and (iv) inventory fair value adjustment. These pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the period or that may be obtained in the future. Pro forma (unaudited) Quarter Ended June 30, 2021 Year to Date Ended June 30, 2021 Total revenues $ 498.3 $ 979.4 Net income 39.1 76.6 Basic earnings per share $ 0.60 $ 1.18 Diluted earnings per share $ 0.60 $ 1.17 Jacobs Vehicle Systems ("JVS") Divestiture In the fourth quarter of 2021, the Company committed to a plan to sell our JVS business within our A&S reporting segment in an effort to exit the heavy-duty trucks industry. On February 8, 2022, the Company entered into a purchase and sale agreement with Cummins Inc. (the "Buyer") for $ 325.0 million in cash subject to customary adjustments, and on April 8, 2022, the Company completed the sale. Transaction costs related to the divestiture totaled approximately $ 9.4 million. The Company received net cash consideration of approximately $ 325.9 million, which remains subject to customary purchase price adjustments. The Company determined the criteria to be classified as held for sale were met and the assets and liabilities were presented as held for sale in the Consolidated Balance Sheets and measured at the lower of carrying value or fair value less cost to sell from December 31, 2021 until the transaction was completed on April 8, 2022. The Company determined that the disposal group classified as held for sale did not meet the criteria for classification as discontinued operations as the disposal was not considered a strategic shift that had a major effect on the Company’s operations and financial results. The JVS business was not a significant disposal based on the Company's quantitative and qualitative evaluation. Before measuring the fair value less costs to sell of the disposal group as a whole, the Company first reviewed individual assets and liabilities to determine if any fair value adjustments were required and concluded no individual asset impairments were required. Then, based on the purchase and sale agreement entered into by the Company and the Buyer, the Company determined the fair value of the disposal group to be equal to the selling price, less costs to sell. Based on this review, during the fourth quarter of 2021, the Company recorded a non-cash goodwill impairment charge of $ 60.0 million as the sale was considered to be a triggering event to evaluate goodwill impairment for the JVS reporting unit. Additionally, the Company recorded an asset held for sale impairment charge of $ 82.4 million, for a total impairment charge of $ 142.4 million in 2021. The Company recorded additional asset held for sale impairment charges of $ 2.2 million and $ 8.3 million during the quarter and year to date periods ended June 30, 2022, respectively. The assets and liabilities of the JVS business classified as held for sale at December 31, 2021 were as follows: December 31, 2021 Assets Current Assets Trade receivables $ 11.3 Inventories 16.3 Prepaid expenses and other current assets 2.3 Property, plant and equipment, net 64.6 Goodwill — Intangible assets, net 364.5 Other assets 0.7 Impairment on carrying value (1) ( 82.4 ) Total assets held for sale $ 377.3 Liabilities Current Liabilities Accounts payable $ 20.8 Other current liabilities 9.8 Deferred tax liabilities 22.3 Other liabilities 0.1 Total liabilities held for sale $ 53.0 (1) Includes the effect of approximately $ 10.8 million of favorable cumulative foreign currency translation adjustment and accumulated other post retirement benefit obligation gains and approximately $ 11.5 million of estimated transaction costs incurred. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 5. Revenue Recognition We sell our products through three primary commercial channels: original equipment manufacturers (OEMs), industrial distributors and direct to end users. Each of our segments sells similar products, which are balanced across end-user industries including, without limitation, energy, food processing, general industrial, material handling, mining, transportation, industrial automation, robotics, medical devices, and turf & garden. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under Accounting Standards Codification (“ASC”) 606-10-32-18 to not assess whether a contract has a significant financing component. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment from the Company’s manufacturing site or delivery to the customer’s named location. In determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. In certain circumstances, the Company manufactures customized product without alternative use for its customers, which would generally result in the transfer of control over time. The Company has evaluated the amount of revenue subject to recognition over time and concluded that it is immaterial. The following table disaggregates our revenue for each reportable segment. The Company believes that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Power Transmission Technologies $ 252.5 $ 237.6 $ 506.2 $ 458.6 Automation & Specialty 247.3 252.0 506.5 504.1 Inter-segment eliminations ( 1.7 ) ( 1.0 ) ( 2.9 ) ( 2.0 ) Total net sales $ 498.1 $ 488.6 $ 1,009.8 $ 960.7 Net sales by geographic region based on point of shipment origin are as follows: Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 North America (primarily U.S.) $ 280.8 $ 255.5 $ 572.1 $ 502.5 Europe excluding Germany 93.2 90.3 186.6 175.2 Germany 55.1 50.5 111.5 101.5 China 39.3 64.0 81.2 128.1 Asia and other excluding China 29.7 28.3 58.4 53.4 Total net sales $ 498.1 $ 488.6 $ 1,009.8 $ 960.7 The payment terms and conditions in our customer contracts vary. In some cases, customers will partially prepay for their goods; in other cases, after appropriate credit evaluations, payment will be due in arrears. In addition, there are constraints that cause variability in the ultimate consideration to be recognized. These constraints typically include early payment discounts, volume rebates, rights of return, surcharges, and other customer considerations. Payments received from customers are recorded as accounts receivable when an unconditional right to the consideration exists. A contract asset is recognized when the Company satisfies a performance obligation by transferring a promised good to the customer before consideration is due. A contract liability is recognized when consideration is received from a customer prior to the Company satisfying the related performance obligation. Contract assets and contract liabilities are recognized in other current assets and other current liabilities, respectively, in the Company’s consolidated balance sheets. The Company had inconsequential contract assets for the year to date periods ended June 30, 2022 and June 30, 2021, respectively. The opening and closing balances of the Company’s current contract liabilities as of the year to date periods ended June 30, 2022 and June 30, 2021 are as follows: Year to Date Ended June 30, 2022 June 30, 2021 Beginning balance $ 13.5 $ 10.3 Closing balance 15.8 12.7 Increase $ 2.3 $ 2.4 In the six-month period ended June 30, 2022, substantially all outstanding revenue has been recognized related to contract liabilities outstanding at January 1, 2022 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1- Quoted prices in active markets for identical assets or liabilities. • Level 2- Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived. • Level 3- Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents and are classified as Level 1. The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities are carried at cost, which approximates fair value, and are classified as Level 1. Debt under the Credit Agreement (as defined herein) is classified as Level 2 and is comprised of the Term Loan Facility and the Revolving Credit Facility (both as defined herein). As of June 30, 2022, the carrying amount of the Term Loan Facility was $ 395.0 million and the carrying amount of the Revolving Credit Facility was $ 285.0 million, each approximates fair value due to the fact that the interest rate on the debt is based on variable interest rates. The carrying amount of the Notes (as defined herein) was $ 400.0 million and the estimated fair value of the Notes was $ 383.5 million at June 30, 2022. The Notes are classified as Level 2. The Company determines the fair value of financial instruments using quoted market prices whenever available and classifies these investments as Level 1. When quoted market prices are not available for various types of financial instruments (such as derivative instruments), the Company uses standard models with market-based inputs, which take into account the present value of estimated future cash flows and the ability of the Company or the financial counterparty to perform. These investments are classified as Level 2. For cross-currency interest rate swaps and interest rate swaps, the significant inputs to these models are interest rate curves for discounting future cash flows and are adjusted for credit risk. See additional discussion of the Company’s use of financial instruments including cross-currency interest rate swaps and interest rate swaps included in Note 16. In December 2020 and May 2022, the Company invested approximately $ 5.0 million and $ 4.6 million, respectively, for a minority equity interest in a privately held manufacturing software company, MTEK Industry AB (“MTEK”), over which the Company does not exert significant influence. The equity investments do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value using the net asset value per share. Therefore, in accordance with ASU 2016-01, the Company elected to measure the investments at their cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or a similar investment of the same issuer. These investments are considered Level 3 assets based on the lack of observable inputs and are classified within other non-current assets in the consolidated balance sheets. The Company monitors its equity investment in MTEK for indicators of impairments or upward adjustments on an ongoing basis. If the Company determines that such an indicator is present, an adjustment will be recorded, which will be measured as the difference between the carrying value and estimated fair value. During the six months ended June 30, 2022, the Company reassessed the value of its December 2020 investment and recognized a $ 0.7 million unrealized holding gain as a result of an observable price change from the additional investment made in May 2022. As of June 30, 2022 , there were no other indicators that support an adjustment to MTEK’s carrying value. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | 7. Changes in Accumulated Other Comprehensive Income/(Loss) by Component The following is a reconciliation of changes in accumulated other comprehensive income/(loss) by component for the periods presented: Pension & Other Cumulative Total Accumulated other comprehensive income (loss) by component, April 1, 2022 $ 0.1 $ ( 28.6 ) $ ( 28.5 ) Amortization of actuarial gain (losses), net of tax ( 0.3 ) — ( 0.3 ) Foreign currency translation adjustments, net of tax — ( 87.0 ) ( 87.0 ) Net current-period other comprehensive loss ( 0.3 ) ( 87.0 ) ( 87.3 ) Accumulated other comprehensive income (loss) by component, June 30, 2022 $ ( 0.2 ) $ ( 115.6 ) $ ( 115.8 ) Pension & Other Cumulative Total Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2022 $ 0.2 $ ( 11.2 ) $ ( 11.0 ) Amortization of actuarial gain (losses), net of tax ( 0.4 ) — ( 0.4 ) Foreign currency translation adjustments, net of tax — ( 104.4 ) ( 104.4 ) Net current-period Other Comprehensive Income (Loss) ( 0.4 ) ( 104.4 ) ( 104.8 ) Accumulated Other Comprehensive Income (Loss) by Component, June 30, 2022 $ ( 0.2 ) $ ( 115.6 ) $ ( 115.8 ) Gains and Defined Cumulative Total Accumulated other comprehensive income (loss) by component, April 1, 2021 $ ( 19.1 ) $ ( 3.7 ) $ 3.3 $ ( 19.5 ) Reclassification of interest rate swap to income, net of tax 2.3 — — 2.3 Pension adjustments, net of tax — 1.2 — 1.2 Amortization of actuarial gain (losses), net of tax — 0.1 — 0.1 Foreign currency translation adjustments, net of tax — — 19.6 19.6 Net current-period other comprehensive income (loss) 2.3 1.3 19.6 23.2 Accumulated other comprehensive income (loss) by component, June 30, 2021 $ ( 16.8 ) $ ( 2.4 ) $ 22.9 $ 3.7 Gains and Defined Cumulative Total Accumulated Other Comprehensive (Loss) by Component, January 1, 2021 $ ( 21.5 ) $ ( 3.7 ) $ 46.3 $ 21.1 Reclassification of interest rate swap to income, net of tax 4.7 — — 4.7 Pension adjustments, net of tax — 1.2 — 1.2 Amortization of actuarial gain (losses), net of tax — 0.1 — 0.1 Foreign currency translation adjustments, net of tax — — ( 23.4 ) ( 23.4 ) Net current-period Other Comprehensive Income (Loss) 4.7 1.3 ( 23.4 ) ( 17.4 ) Accumulated Other Comprehensive Loss by Component, June 30, 2021 $ ( 16.8 ) $ ( 2.4 ) $ 22.9 $ 3.7 |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 8. Net Income per Share Basic earnings per share is based on the weighted average number of shares of common stock outstanding, and diluted earnings per share is based on the weighted average number of shares of common stock outstanding and all potentially dilutive common stock equivalents outstanding. Common stock equivalents are included in the per share calculations when the effect of their inclusion is dilutive. The following is a reconciliation of basic to diluted net income per share: Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net income $ 26.3 $ 40.8 $ 71.1 $ 80.0 Shares used in net income per common share - basic 65.1 64.8 65.0 64.8 Effect of dilutive shares 0.2 0.6 0.3 0.6 Shares used in net income per common share - diluted 65.3 65.4 65.3 65.4 Earnings per share: Basic $ 0.40 $ 0.63 $ 1.09 $ 1.23 Diluted $ 0.40 $ 0.62 $ 1.09 $ 1.22 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 9. Inventories Inventories at June 30, 2022 and December 31, 2021 consisted of the following: June 30, 2022 December 31, 2021 Raw materials $ 165.4 $ 124.1 Work in process 30.7 26.7 Finished goods 120.0 117.0 $ 316.1 $ 267.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 10. Goodwill and Intangible Assets The Company conducts an annual impairment review of goodwill and indefinite-lived intangible assets in the fourth quarter of each year, unless events occur which trigger the need for an interim impairment review. There were no triggering events during the quarter ended June 30, 2022. The 2021 annual goodwill impairment review indicated that the Thomson reporting unit’s fair value exceeded its carrying value by less than 10 %. All other reporting units had fair values that exceeded their carrying value by 10 % or more. Changes in goodwill from January 1, 2022 through June 30, 2022 were as follows: Power Automation Total Goodwill $ 442.8 $ 1,352.1 $ 1,794.9 Accumulated impairment loss ( 31.8 ) ( 199.1 ) ( 230.9 ) Balance January 1, 2022 $ 411.0 $ 1,153.0 $ 1,564.0 Measurement period adjustments related to the Nook acquisition — ( 0.6 ) ( 0.6 ) Impact of changes in foreign currency ( 9.7 ) ( 32.8 ) ( 42.5 ) Goodwill balance June 30, 2022 $ 401.3 $ 1,119.6 $ 1,520.9 Other intangible assets as of June 30, 2022 and December 31, 2021 consisted of the following: June 30, 2022 December 31, 2021 Cost Accumulated Net Cost Accumulated Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks (1) $ 203.9 $ 0.1 $ 203.8 $ 212.2 $ — $ 212.2 Intangible assets subject to amortization: Customer relationships 928.7 219.3 709.4 960.2 206.4 753.8 Product technology and patents 141.5 56.7 84.8 141.4 50.2 91.2 Total intangible assets $ 1,274.1 $ 276.1 $ 998.0 $ 1,313.8 $ 256.6 $ 1,057.2 (1) While the majority of the Company's tradenames are considered indefinite lived intangible assets, tradenames acquired through the acquisition of Nook are subject to amortization. The net book value of Nook's tradename was approximately $ 1.0 million as of June 30, 2022. The Company recorded $ 13.8 million and $ 17.7 million of amortization expense in the quarters ended June 30, 2022 and 2021 , respectively; and recorded $ 27.8 million and $ 35.3 million of amortization expense in the year to date periods ended June 30, 2022 and 2021, respectively. The estimated amortization expense for intangible assets is approximately $ 27.7 million for the remainder of 2022 , $ 54.4 million in 2023, $ 53.9 million in 2024, $ 53.4 million in 2025, $ 52.5 million in 2026 and $ 553.3 million thereafter. |
Warranty Costs
Warranty Costs | 6 Months Ended |
Jun. 30, 2022 | |
Guarantees [Abstract] | |
Warranty Costs | 11. Warranty Costs The contractual warranty period of the Company's products generally ranges from three months to two years with certain warranties extending for longer periods. Estimated expenses related to product warranties are accrued at the time products are sold to customers and are recorded in accruals and other current liabilities on the unaudited condensed consolidated balance sheets. Estimates are established using historical information as to the nature, frequency and average costs of warranty claims. Changes in the carrying amount of accrued product warranty costs for each of the year to date periods ended June 30, 2022 and 2021 were as follows: June 30, 2022 June 30, 2021 Balance at beginning of period $ 8.3 $ 9.2 Accrued current period warranty expense 1.7 1.7 Payments and adjustments ( 1.4 ) ( 0.8 ) Balance at end of period $ 8.6 $ 10.1 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 12. Debt Outstanding debt obligations at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 December 31, 2021 Debt: Term loan $ 395.0 $ 400.0 Revolver 285.0 605.0 Notes 400.0 400.0 Mortgages and other 7.7 9.2 Finance leases 0.0 0.1 Total gross debt 1,087.7 1,414.3 Less: debt discount and deferred financing ( 2.0 ) ( 2.2 ) Total debt, net of debt discount and 1,085.7 1,412.1 Less: current portion of long-term debt ( 15.6 ) ( 11.1 ) Total long-term debt $ 1,070.1 $ 1,401.0 2021 Credit Agreement On November 17, 2021, the Company entered into a new Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for a five-year term loan in an aggregate principal amount of $ 400.0 million (the “Term Loan Facility”) and a five-year revolving credit facility in an aggregate committed principal amount of $ 1.0 billion (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”). The Company immediately provided notice to the administrative agent of the Credit Agreement to draw down $ 480.0 million under the Revolving Credit Facility. The aggregate proceeds of $ 880.0 million under the Credit Facilities were used to repay in full and extinguish all outstanding indebtedness for borrowed money under the 2018 Credit Agreement. The remaining availability under the Revolving Credit Facility will be used for working capital and general corporate purposes. The Credit Facilities are guaranteed on a senior secured basis by certain direct and indirect domestic subsidiaries of the Company (each a “Guarantor” and collectively the “Guarantors”; the Guarantors collectively with the Borrowers, the “Loan Parties”). The stated maturity date of the Credit Facilities is November 17, 2026 , and there are scheduled quarterly principal payments due on the outstanding amount on the Term Loan Facility. The amounts available under the Revolving Credit Facility may be drawn upon in accordance with the terms of the Credit Agreement. All amounts outstanding under the Credit Facilities are due on the stated maturity or such earlier time, if any, required under the Credit Agreement. The amounts owed under either of the Credit Facilities may be prepaid at any time, subject to usual notification and breakage payment provisions. Interest on the amounts outstanding under the Credit Facilities is calculated using either a Base Rate or Eurocurrency Rate, plus the applicable margin. The applicable margins for Eurocurrency Loans are between 1.000 % to 1.750 %, and for Base Rate Loans are between 0.000 % and 0.750 %. The amounts of the margins are calculated based on the Total Leverage Ratio (as defined in the Credit Agreement). A portion of the Revolving Credit Facility may be used for the issuance of letters of credit, and a portion of the amount of the Revolving Credit Facility is available for borrowings in certain agreed upon foreign currencies. The interest rate on the Credit Facilities was 2.810 % at June 30, 2022. Revolving borrowings and issuances of letters of credit under the Revolving Credit Facility are subject to the satisfaction of customary conditions, including the accuracy of representations and warranties and the absence of defaults. The Credit Agreement contains usual and customary representations and warranties, usual and customary affirmative and negative covenants and restrictions, which among other things, will require the Borrowers to provide certain financial reports to the Lenders, require the Company to maintain certain financial covenants relating to consolidated leverage and interest coverage, and limit the ability of the Company and its subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other equity distributions, purchase or redeem capital stock or debt, make certain investments, sell assets, engage in certain transactions, and effect a consolidation or merger. The obligations of the borrowers of the Credit Facilities under the Credit Agreement may be accelerated upon customary events of default, including non-payment of principal, interest, fees and other amounts, inaccuracy of representations and warranties, violation of covenants, cross default and cross acceleration, voluntary and involuntary bankruptcy or insolvency proceedings, inability to pay debts as they become due, material judgments, ERISA events, actual or asserted invalidity of security documents or guarantees and change in control. The Company incurred $ 3.7 million in issuance costs, which is being amortized over the term of the debt as an adjustment to the effective interest rate on the outstanding borrowings. As of June 30, 2022, the Company had $ 680.0 million outstanding on the Credit Agreement. As of June 30, 2022 and December 31, 2021, the Company had $ 4.1 million and $ 4.8 million in letters of credit outstanding, respectively. The Company had $ 710.9 million available to borrow under the Credit Facilities at June 30, 2022, subject to customary conditions including the accuracy of representation and warranties and the absence of defaults. Notes On October 1, 2018, upon the closing of the combination of the Company with four operating companies from Fortive Corporation’s (“Fortive”) Automation & Specialty platform (excluding Fortive’s Hengstler and Dynapar businesses), the Company assumed $ 400 million aggregate principal amount of 6.125 % senior notes due 2026 (the “Notes”). The Notes will mature on October 1, 2026 . Interest on the Notes accrues from October 1, 2018 and is payable semi-annually commencing on April 1, 2019 . The Notes may be redeemed at the option of the issuer on or after October 1, 2023 . The Notes are guaranteed on a senior unsecured basis by the Company and certain of its domestic subsidiaries. 2018 Credit Agreement On October 1, 2018, the Company and certain subsidiaries entered into a credit agreement (the “2018 Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative and collateral agent, and a syndicate of lenders, which provided for a term loan in an aggregate principal amount of $ 1,340.0 million (the “2018 Term Loan Facility”) and a revolving credit facility in an aggregate committed principal amount of $ 300.0 million (the “2018 Revolving Credit Facility” and together with the 2018 Term Loan Facility, the “2018 Credit Facilities”). On November 17, 2021, in connection with the new Credit Agreement, the 2018 Credit Agreement was terminated and all outstanding indebtedness for borrowed money thereunder was repaid in full. Mortgages and Other Agreements The Company’s subsidiaries in Europe have entered into certain long-term fixed rate term loans that are generally secured by local property, plant and equipment. The debt has interest rates that range from 1.0 % to 2.5 %, with various quarterly and monthly installments through 2028. Financing Leases The Company leases certain equipment under finance lease arrangements, whose obligations are included in both short-term and long-term debt. Finance lease obligations amounted to approximately $ 0.0 million and $ 0.1 million at June 30, 2022 and December 31, 2021 , respectively. Finance lease right of use assets are included in property, plant and equipment with the related amortization recorded as depreciation expense. Finance lease liabilities are included in current and non-current other liabilities on the Company’s consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 13. Stockholders’ Equity Common Stock Effective October 1, 2018, the Company amended its Articles of Incorporation to increase the number of authorized shares of the Company's common stock from 90.0 million shares to 120.0 million shares. As of June 30, 2022 and December 31, 2021, there were 65,066,459 and 64,923,539 shares of common stock issued and outstanding, respectively. Preferred Stock On December 20, 2006, the Company amended and restated its certificate of incorporation authorizing 10.0 million shares of undesignated Preferred Stock (“Preferred Stock”). The Preferred Stock may be issued from time to time in one or more classes or series, the shares of each class or series to have such designations and powers, preferences, rights, qualifications, limitations and restrictions as determined by the Company’s Board of Directors. There was no Preferred Stock issued or outstanding at June 30, 2022 or December 31, 2021. Restricted Common Stock The 2014 Omnibus Incentive Plan (the “2014 Plan”) was approved by the Company’s stockholders at the Company’s 2014 Annual Meeting of Stockholders. The 2014 Plan provides for various forms of stock-based compensation to our directors, executive personnel and other key employees and consultants. Under the 2014 Plan, the remaining total number of shares of common stock available for delivery pursuant to the grant of awards was 3.7 million as of June 30, 2022. The restricted stock and restricted stock units issued pursuant to the 2014 Plan generally vest ratably over a period ranging from immediately to five years from the date of grant, provided, that the vesting of the restricted stock or restricted stock units may accelerate upon the occurrence of certain events. Common stock awarded under the 2014 Plan is generally subject to restrictions on transfer, repurchase rights, and other limitations and rights as set forth in the applicable award agreements. The 2014 Plan permits the Company to grant, among other things, restricted stock, restricted stock units, stock options and performance share awards to key employees. Certain awards include vesting based upon achievement of specified performance criteria. Compensation expense recorded (in selling, general and administrative expense) during the quarters ended June 30, 2022 and 2021 was $ 4.3 million and $ 4.0 million, respectively. Compensation expense recorded (in selling, general and administrative expense) during the year to date periods ended June 30, 2022 and 2021 was $ 8.2 million and $ 7.5 million, respectively. The Company recognizes stock-based compensation expense on a straight-line basis for the shares vesting ratably under the plan and uses the graded-vesting method of recognizing stock-based compensation expense for the performance share awards based on the probability of the specific performance metrics being achieved over the requisite service period. Total remaining unrecognized compensation cost is approximately $ 27.4 million as of June 30, 2022 , and will be recognized over a weighted average remaining period of three years . Stock Options The following table summarizes the stock option activity under the Company’s plan for the year to date period ended June 30, 2022: Weighted Options Weighted- Aggregate Outstanding at January 1, 2022 500.0 $ 39.26 Granted 176.2 45.05 Outstanding at June 30, 2022 8.1 676.2 $ 40.77 $ 0.9 Exercisable at June 30, 2022 7.3 241.3 $ 35.87 $ 0.6 Unvested and expected to vest at June 30, 2022 8.5 412.0 $ 43.34 $ 0.4 Restricted Stock Units The following table summarizes the Restricted Stock Unit activity under the Company’s plan for the year to date period ended June 30, 2022: Shares Weighted- Aggregate Unvested at January 1, 2022 420.5 $ 42.21 Granted 190.0 44.53 Vested ( 91.1 ) 38.72 Canceled/Forfeited ( 2.6 ) 44.80 Unvested at June 30, 2022 516.8 $ 43.66 $ 18.2 Performance Share Awards The following table summarizes the Performance Share Award activity under the Company’s plan for the year to date period ended June 30, 2022: Shares Weighted- Aggregate Unvested at January 1, 2022 286.5 $ 40.23 Granted 82.1 45.45 Vested ( 125.9 ) 32.02 Unvested at June 30, 2022 242.7 $ 46.64 $ 8.6 See Note 12, Stockholders’ Equity, to the audited consolidated financial statements of the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for further information regarding stock-based compensation. Share Repurchase Program On April 26, 2022, our Board of Directors approved a share repurchase program authorizing the buyback of up to $ 300 million of the Company's common stock through December 31, 2024 . There was no share repurchase activity during the quarter ended June 30, 2022. |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | 14. Restructuring Costs From time to time, the Company has initiated various restructuring programs and incurred severance and other restructuring costs. During 2017, the Company commenced a restructuring plan (“2017 Altra Plan”) as a result of the Company’s acquisition of Stromag and to rationalize its global renewable energy business. The actions taken pursuant to the 2017 Altra Plan included reducing headcount, facility consolidations and the elimination of certain costs. The Company did no t incur any costs as a result of the 2017 Altra Plan during the quarter and year to date period ended June 30, 2022. The Company does not expect to incur any additional material costs as a result of the 2017 Altra Plan. During 2019, the Company commenced a restructuring plan (“2019 Altra Plan”) to drive efficiencies, reduce the number of facilities and optimize its operating margin. The Company expects to incur an additional $ 5 - $ 7 million in restructuring expenses under the 2019 Altra Plan over the next two years , primarily related to headcount reductions and plant consolidations. During the quarter and year to date period ended June 30, 2022 , the Company incurred expenses of $ 0.5 million and $ 0.9 million, respectively, comprised mainly of severance costs. The following is a reconciliation of the accrued restructuring costs between January 1, 2022 and June 30, 2022: 2017 Altra 2019 Altra Total All Balance at January 1, 2022 $ — $ 0.5 $ 0.5 Restructuring expense incurred — 0.4 0.4 Cash payments — ( 0.3 ) ( 0.3 ) Balance at March 31, 2022 $ — $ 0.6 $ 0.6 Restructuring expense incurred — 0.5 0.5 Cash payments — ( 0.5 ) ( 0.5 ) Balance at June 30, 2022 — 0.6 0.6 The following is a reconciliation of the accrued restructuring costs between January 1, 2021 and June 30, 2021: 2017 Altra 2019 Altra Total All Balance at January 1, 2021 $ 0.5 $ 1.8 $ 2.3 Restructuring expense incurred — 0.9 0.9 Cash payments ( 0.1 ) ( 1.4 ) ( 1.5 ) Balance at March 31, 2021 $ 0.4 $ 1.3 $ 1.7 Restructuring expense incurred — 0.8 0.8 Cash payments ( 0.1 ) ( 1.3 ) ( 1.4 ) Balance at June 30, 2021 0.3 0.8 1.1 The following is a reconciliation of restructuring expense by segment for the quarter ended June 30, 2022: 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 0.1 $ 0.1 Automation & Specialty — 0.4 0.4 Total restructuring expense $ — $ 0.5 $ 0.5 The following is a reconciliation of restructuring expense by segment for the quarter ended June 30, 2021: 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 0.4 $ 0.4 Automation & Specialty — 0.4 0.4 Total restructuring expense $ — $ 0.8 $ 0.8 The following is a reconciliation of restructuring expense by segment for the year to date period ended June 30, 2022: 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 0.1 $ 0.1 Automation & Specialty — 0.8 0.8 Total restructuring expense $ — $ 0.9 $ 0.9 The following is a reconciliation of restructuring expense by segment for the year to date period ended June 30, 2021: 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 1.0 $ 1.0 Automation & Specialty — 0.7 0.7 Total restructuring expense $ — $ 1.7 $ 1.7 The total accrued restructuring reserve as of June 30, 2022 , relates to severance to be paid to former employees and facility consolidation and relocation costs under the 2019 Altra Plan and is recorded in accruals and other current liabilities on the accompanying unaudited condensed consolidated balance sheet. |
Segments, Concentrations and Ge
Segments, Concentrations and Geographic Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segments, Concentrations and Geographic Information | 15. Segments, Concentrations and Geographic Information Segments The internal reporting structure used by our Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources determines the basis for our reportable operating segments. Our CODM is our Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of income from operations. Our operations are organized in two reporting segments that are aligned with key product types and end markets served, Power Transmission Technologies (“PTT”) and Automation & Specialty (“A&S”): • Power Transmission Technologies - PTT. This segment included the following key product offerings as of June 30, 2022: o Couplings, Clutches & Brakes. Couplings are the interface between two shafts, which enable power to be transmitted from one shaft to the other. Clutches in this segment are devices that use mechanical, hydraulic, pneumatic, or friction type connections to facilitate engaging or disengaging two rotating members. Brakes are combinations of interacting parts that work to slow or stop machinery. Products in this segment are generally used in heavy industrial applications and energy markets. o Electromagnetic Clutches & Brakes. Products in this segment include brakes and clutches that are used to electronically slow, stop, engage or disengage equipment utilizing electromagnetic friction type connections. Products in this segment are used in industrial and commercial markets including agricultural machinery, material handling, motion control, and turf & garden. o Gearing. Gears are utilized to reduce the speed and increase the torque of an electric motor or engine to the level required to drive a particular piece of equipment. Gears produced by the Company are primarily utilized in industrial applications. • Automation & Specialty – A&S. This segment included the following key brands as of June 30, 2022: o Kollmorgen: Provides rotary precision motion solutions, including servo motors, stepper motors, high performance electronic drives and motion controllers and related software, and precision linear actuators. These products are used in advanced material handling, aerospace and defense, factory automation, medical, packaging, printing, semiconductor, robotic and other applications. o Portescap: Provides high-efficiency miniature motors and motion control products, including brush and brushless DC motors, can stack motors and disc magnet motors. These products are used in medical, industrial power tool and general industrial equipment applications. o Thomson: Provides systems that enable and support the transition of rotary motion to linear motion. Products include linear bearings, guides, glides, lead and ball screws, industrial linear actuators, clutch brakes, precision gears, resolvers and inductors. These products are used in factory automation, medical, mobile off-highway, material handling, food processing and other niche applications. Segment financial information and a reconciliation of segment results to unaudited condensed consolidated results are as follows: Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net Sales: Power Transmission Technologies $ 252.5 $ 237.6 $ 506.2 $ 458.6 Automation & Specialty 247.3 252.0 506.5 504.1 Inter-segment eliminations ( 1.7 ) ( 1.0 ) ( 2.9 ) ( 2.0 ) Net sales $ 498.1 $ 488.6 $ 1,009.8 $ 960.7 Income from operations: Segment earnings: Power Transmission Technologies $ 37.5 $ 33.6 $ 69.8 $ 61.4 Automation & Specialty (1) 32.1 37.4 67.7 78.8 Corporate expenses (2) ( 5.4 ) ( 4.7 ) ( 5.3 ) ( 7.9 ) Restructuring costs ( 0.5 ) ( 0.8 ) ( 0.9 ) ( 1.7 ) Income from operations $ 63.7 $ 65.5 $ 131.3 $ 130.6 Other non-operating expense: Net interest expense 11.8 16.5 23.1 33.4 Other non-operating income, net ( 1.9 ) ( 1.7 ) ( 2.0 ) ( 3.2 ) Total non-operating expense $ 9.9 $ 14.8 $ 21.1 $ 30.2 Income before income taxes 53.8 50.7 110.2 100.4 Provision for income taxes 27.5 9.9 39.1 20.4 Net income $ 26.3 $ 40.8 $ 71.1 $ 80.0 (1) The Company recorded non-cash impairment charges of $ 2.2 million and $ 8.3 million at the JVS reporting unit during the quarter and year to date periods ended June 30, 2022, respectively, related to the held for sale classification. (2) Certain expenses are maintained at the corporate level and are not allocated to the segments. These include various administrative expenses related to the corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs and acquisition related expenses. Selected information by segment (continued): Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Depreciation and amortization: Power Transmission Technologies $ 7.1 $ 8.0 $ 14.5 $ 16.0 Automation & Specialty 16.0 22.3 32.2 44.3 Corporate 0.6 0.7 1.2 1.4 Total depreciation and amortization $ 23.7 $ 31.0 $ 47.9 $ 61.7 June 30, 2022 June 30, 2021 Total assets: Power Transmission Technologies $ 1,065.6 $ 1,070.5 Automation & Specialty 2,522.2 2,981.2 Corporate (3) 106.4 160.2 Total assets $ 3,694.2 $ 4,211.9 (3) Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, property, plant and equipment and deferred financing costs. Net sales to third parties by geographic region are as follows: Net Sales Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 North America (primarily U.S.) $ 280.8 $ 255.5 $ 572.1 $ 502.5 Europe excluding Germany 93.2 90.3 186.6 175.2 Germany 55.1 50.5 111.5 101.5 China 39.3 64.0 81.2 128.1 Asia and other excluding China 29.7 28.3 58.4 53.4 Total $ 498.1 $ 488.6 $ 1,009.8 $ 960.7 Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for property, plant and equipment are based on the location of the entity, which holds such assets. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 16. Derivative Financial Instruments The Company may manage changes in market conditions related to interest on debt obligations and foreign currency exposures by entering into derivative instruments, including interest rate and foreign currency swap agreements. All derivative instruments are recognized as either assets or liabilities on the balance sheet at fair value at the end of each period. The Company determines the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Company uses standard models with market-based inputs, which take into account the present value of estimated future cash flows and the ability of Altra or the financial counterparty to perform. For cross-currency interest rate swaps, the significant inputs are interest rate curves for discounting future cash flows, and exchange rate curves of the foreign currency for translating future cash flows. For interest rate swaps, the significant inputs to these models are interest rate curves for discounting future cash flows that are adjusted for credit risk. Both cross-currency interest rate swaps and interest rate swaps are Level 2 investments. Refer to Note 6 for a description of the fair value levels. For designated hedging relationships, the Company formally documents the hedging relationship consistent with the requirements of ASC 815, Derivatives. Cross-Currency Interest Rate Swaps In December 2018, the Company entered into cross-currency swap agreements to hedge its net investment in Euro-denominated assets against future volatility in the exchange rate between the U.S. dollar and the Euro. By doing so, the Company synthetically converted a portion of its U.S. dollar-based long-term debt into Euro-denominated long-term debt. At inception, the cross-currency swaps were designated as net investment hedges. For net investment hedges, changes in the fair value of the effective portion of the derivatives’ gains or losses are reported as foreign currency translation gains or losses in accumulated other comprehensive income (loss) (“AOCIL”). The gains or losses on derivative instruments reported in AOCIL are reclassified to earnings in the period in which earnings are affected by the underlying item, such as a disposal or substantial liquidations of the entities being hedged. During the first quarter of 2020, the Company terminated the cross-currency interest rate swaps. The Company received the cash value of the cross-currency interest rate swaps of approximately $ 56.2 million upon termination. In addition, the Company paid the interest owed and received the interest due, resulting in the recognition of approximately $ 3.3 million in net interest income, and paid termination fees of approximately $ 0.9 million. At June 30, 2022 and June 30, 2021 , the Company had a gain in AOCIL of approximately $ 44.8 million, net of $ 11.4 million of tax. That balance will remain in AOCIL until the period in which earnings are affected by the underlying item, such as a disposal or substantial liquidations of the entities being hedged. Interest Rate Swaps In January 2017, the Company entered into an interest rate swap agreement to fix the variable interest rate payable on a portion of its outstanding borrowings. This interest rate swap matured on January 31, 2020 . Additionally, in December 2018, the Company entered into an interest rate swap agreement designed to manage the cash flow risk caused by interest rate changes on the forecasted interest payments expected to occur related to a portion of its outstanding borrowings under the 2018 Credit Agreement. The interest rate swap agreement was designed to manage exposure to interest rates on the Company’s variable rate indebtedness and was recognized on the balance sheet at fair value. The Company designated this interest rate swap agreement as a cash flow hedge and changes in the fair value of the swap were recognized in other comprehensive income until the hedged items were recognized in earnings. During 2020, the Company terminated the interest rate swap agreement. The Company paid the cash value of the interest rate swaps of approximately $ 34.7 million upon termination. In addition, the Company paid the interest owed and received the interest due, resulting in the recognition of approximately $ 0.1 million in net interest expense, and paid termination fees of approximately $ 0.1 million. In November 2021, the Company terminated the 2018 Credit Agreement. As a result of the decision to terminate the 2018 Credit Agreement, the remaining balance of the unrealized loss in AOCIL was immediately reclassified to “Interest expense, net” in the accompanying condensed consolidated statements of operations. The Company reclassified $ 2.3 million, net of $ 0.7 million of tax benefit, and $ 4.7 million, net of $ 1.4 million of tax benefit, of non-cash interest expense from AOCIL to earnings for the quarter and year to date periods ended June 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies General Litigation The Company is involved in various pending legal proceedings arising out of the ordinary course of business. These proceedings primarily involve commercial claims, product liability claims, personal injury claims, and workers’ compensation claims. With respect to these proceedings, management believes that the Company will prevail, has adequate insurance coverage or has established appropriate reserves to cover potential liabilities. Any costs that management estimates may be paid related to these proceedings or claims are accrued when the liability is considered probable and the amount can be reasonably estimated. There can be no assurance, however, as to the ultimate outcome of any of these matters, and if all or substantially all of these legal proceedings were to be determined adversely to the Company, there could be a material adverse effect on the results of operations, cash flows, or financial condition of the Company. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. For matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses, individually and in the aggregate, will not have a material effect on our unaudited condensed consolidated financial statements. Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates. We will continue to consider the applicable guidance in ASC 450-20, based on the facts known at the time of our future filings, as it relates to legal contingencies, and will adjust our disclosures as may be required under the guidance. There were no material amounts accrued in the accompanying unaudited condensed consolidated balance sheets for potential litigation as of June 30, 2022 or December 31, 2021. The Company also risks exposure to product liability claims in connection with products it has sold and those sold by businesses that the Company acquired. Although in some cases third parties have retained responsibility for product liability claims relating to products manufactured or sold prior to the acquisition of the relevant business and in other cases the persons from whom the Company has acquired a business may be required to indemnify the Company for certain product liability claims subject to certain caps or limitations on indemnification, the Company cannot assure that those third parties will in fact satisfy their obligations with respect to liabilities retained by them or their indemnification obligations. If those third parties become unable to or otherwise do not comply with their respective obligations including indemnity obligations, or if certain product liability claims for which the Company is obligated were not retained by third parties or are not subject to these indemnities, the Company could become subject to significant liabilities or other adverse consequences. Moreover, even in cases where third parties retain responsibility for product liability claims or are required to indemnify the Company, significant claims arising from products that have been acquired could have a material adverse effect on the Company’s ability to realize the benefits from an acquisition, could result in the reduction of the value of goodwill that the Company recorded in connection with an acquisition, or could otherwise have a material adverse effect on the Company’s business, financial condition, or operations. Environmental There is contamination at some of the Company’s current facilities, primarily related to historical operations at those sites, for which the Company could be liable for the investigation and remediation under certain environmental laws. The potential for contamination also exists at other of the Company’s current or former sites, based on historical uses of those sites. The Company currently is not undertaking any material remediation or investigations and the costs or liability in connection with potential contamination conditions at these facilities cannot be predicted at this time because the potential existence of contamination has not been investigated or not enough is known about the environmental conditions or likely remedial requirements. Currently, other parties with contractual liability are addressing or have plans or obligations to address those contamination conditions that may pose a material risk to human health, safety or the environment. In addition, while the Company attempts to evaluate the risk of liability associated with these facilities at the time the Company acquired them, there may be environmental conditions currently unknown to the Company relating to prior, existing or future sites or operations or those of predecessor companies whose liabilities the Company may have assumed or acquired which could have a material adverse effect on the Company’s business. The Company is being indemnified, or expects to be indemnified, by third parties subject to certain caps or limitations on the indemnification, for certain environmental costs and liabilities associated with certain owned or operated sites. Accordingly, based on the indemnification and the experience with similar sites of the environmental consultants who the Company has hired, the Company does not expect such costs and liabilities to have a material adverse effect on its business, operations or earnings. The Company cannot assure you, however, that those third parties will in fact satisfy their indemnification obligations. If those third parties become unable to, or otherwise do not, comply with their respective indemnity obligations, or if certain contamination or other liability for which the Company is obligated is not subject to these indemnities, the Company could become subject to significant liabilities. From time to time, the Company is notified that it is a potentially responsible party and may have liability in connection with off-site disposal facilities. To date, the Company has generally resolved matters involving off-site disposal facilities for a nominal sum but there can be no assurance that the Company will be able to resolve pending or future matters in a similar fashion. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events On July 25, 2022, the Company declared a dividend of $ 0.09 per share for the quarter ended September 30, 2022, payable on October 4, 2022 to stockholders of record as of September 16, 2022 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles in the United States, or GAAP. These statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 , filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2022. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s financial position and cash flows for the interim periods presented. The results are not necessarily indicative of future results. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This ASU provides relief from certain accounting consequences that could result from the global markets’ anticipated transition away from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The relief provided by this ASU is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The optional amendments are effective as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the effect of the adoption of this standard on the Company. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): A ccounting for Contract Assets and Contract Liabilities from Contracts with Customers , which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an entity generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers . ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendment. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this new guidance on the consolidated financial statements. |
Fair Value of Financial Instruments | Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1- Quoted prices in active markets for identical assets or liabilities. • Level 2- Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived. • Level 3- Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents and are classified as Level 1. The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities are carried at cost, which approximates fair value, and are classified as Level 1. Debt under the Credit Agreement (as defined herein) is classified as Level 2 and is comprised of the Term Loan Facility and the Revolving Credit Facility (both as defined herein). As of June 30, 2022, the carrying amount of the Term Loan Facility was $ 395.0 million and the carrying amount of the Revolving Credit Facility was $ 285.0 million, each approximates fair value due to the fact that the interest rate on the debt is based on variable interest rates. The carrying amount of the Notes (as defined herein) was $ 400.0 million and the estimated fair value of the Notes was $ 383.5 million at June 30, 2022. The Notes are classified as Level 2. The Company determines the fair value of financial instruments using quoted market prices whenever available and classifies these investments as Level 1. When quoted market prices are not available for various types of financial instruments (such as derivative instruments), the Company uses standard models with market-based inputs, which take into account the present value of estimated future cash flows and the ability of the Company or the financial counterparty to perform. These investments are classified as Level 2. For cross-currency interest rate swaps and interest rate swaps, the significant inputs to these models are interest rate curves for discounting future cash flows and are adjusted for credit risk. See additional discussion of the Company’s use of financial instruments including cross-currency interest rate swaps and interest rate swaps included in Note 16. In December 2020 and May 2022, the Company invested approximately $ 5.0 million and $ 4.6 million, respectively, for a minority equity interest in a privately held manufacturing software company, MTEK Industry AB (“MTEK”), over which the Company does not exert significant influence. The equity investments do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value using the net asset value per share. Therefore, in accordance with ASU 2016-01, the Company elected to measure the investments at their cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or a similar investment of the same issuer. These investments are considered Level 3 assets based on the lack of observable inputs and are classified within other non-current assets in the consolidated balance sheets. The Company monitors its equity investment in MTEK for indicators of impairments or upward adjustments on an ongoing basis. If the Company determines that such an indicator is present, an adjustment will be recorded, which will be measured as the difference between the carrying value and estimated fair value. During the six months ended June 30, 2022, the Company reassessed the value of its December 2020 investment and recognized a $ 0.7 million unrealized holding gain as a result of an observable price change from the additional investment made in May 2022. As of June 30, 2022 , there were no other indicators that support an adjustment to MTEK’s carrying value. |
Net Income per Share | Basic earnings per share is based on the weighted average number of shares of common stock outstanding, and diluted earnings per share is based on the weighted average number of shares of common stock outstanding and all potentially dilutive common stock equivalents outstanding. Common stock equivalents are included in the per share calculations when the effect of their inclusion is dilutive. The following is a reconciliation of basic to diluted net income per share: Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net income $ 26.3 $ 40.8 $ 71.1 $ 80.0 Shares used in net income per common share - basic 65.1 64.8 65.0 64.8 Effect of dilutive shares 0.2 0.6 0.3 0.6 Shares used in net income per common share - diluted 65.3 65.4 65.3 65.4 Earnings per share: Basic $ 0.40 $ 0.63 $ 1.09 $ 1.23 Diluted $ 0.40 $ 0.62 $ 1.09 $ 1.22 |
Warranty Costs | Warranty Costs The contractual warranty period of the Company's products generally ranges from three months to two years with certain warranties extending for longer periods. Estimated expenses related to product warranties are accrued at the time products are sold to customers and are recorded in accruals and other current liabilities on the unaudited condensed consolidated balance sheets. Estimates are established using historical information as to the nature, frequency and average costs of warranty claims. Changes in the carrying amount of accrued product warranty costs for each of the year to date periods ended June 30, 2022 and 2021 were as follows: June 30, 2022 June 30, 2021 Balance at beginning of period $ 8.3 $ 9.2 Accrued current period warranty expense 1.7 1.7 Payments and adjustments ( 1.4 ) ( 0.8 ) Balance at end of period $ 8.6 $ 10.1 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Acquisition [Line Items] | |
Schedule of Assets and Liabilities of the JVS Business Classified as Held for sale | The assets and liabilities of the JVS business classified as held for sale at December 31, 2021 were as follows: December 31, 2021 Assets Current Assets Trade receivables $ 11.3 Inventories 16.3 Prepaid expenses and other current assets 2.3 Property, plant and equipment, net 64.6 Goodwill — Intangible assets, net 364.5 Other assets 0.7 Impairment on carrying value (1) ( 82.4 ) Total assets held for sale $ 377.3 Liabilities Current Liabilities Accounts payable $ 20.8 Other current liabilities 9.8 Deferred tax liabilities 22.3 Other liabilities 0.1 Total liabilities held for sale $ 53.0 (1) Includes the effect of approximately $ 10.8 million of favorable cumulative foreign currency translation adjustment and accumulated other post retirement benefit obligation gains and approximately $ 11.5 million of estimated transaction costs incurred. |
Nook Industries, LLC [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | The fair value of all the acquired identifiable assets and liabilities summarized below are based on preliminary valuations and are subject to change as the Company obtains additional information during the acquisition measurement period. The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. The goodwill is deductible for income tax purposes. The Company recorded certain measurement period adjustments during the quarter and year to date period ended June 30, 2022 in the amount of $ 0.6 million. The purchase price allocation below includes such adjustments: At Acquisition Date (As Adjusted) Total cash consideration $ 129.9 Purchase price holdback 8.2 Fair value of consideration transferred 138.1 Recognized identifiable assets acquired and liabilities Cash and cash equivalents 5.1 Receivables 3.7 Inventory 10.8 Prepaids and other current assets 0.4 Property, plant and equipment 12.8 Deferred tax asset 0.9 Other non-current assets 5.0 Intangibles 55.1 Accounts payable ( 2.9 ) Accrued payroll ( 0.7 ) Accrued expenses and other current liabilities ( 2.5 ) Other long term liability ( 4.6 ) Total identifiable net assets acquired 83.1 Goodwill $ 55.0 Intangible assets acquired consist of: Customer relationships $ 54.0 Trade name 1.1 Total intangible assets $ 55.1 |
Schedule of Unaudited Pro Forma Results of Operations | The following table sets forth the unaudited pro forma results of operations of the Company for the quarter and year to date periods ended June 30, 2021 as if the Company had acquired Nook on January 1, 2021. The pro forma information contains the actual operating results of the Company and the Nook business, adjusted to include the pro forma impact of (i) additional depreciation expense as a result of estimated depreciation based on the fair value of fixed assets; (ii) additional expense as a result of the estimated amortization of identifiable intangible assets; (iii) additional interest expense associated with the borrowings used to finance the acquisition and (iv) inventory fair value adjustment. These pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the period or that may be obtained in the future. Pro forma (unaudited) Quarter Ended June 30, 2021 Year to Date Ended June 30, 2021 Total revenues $ 498.3 $ 979.4 Net income 39.1 76.6 Basic earnings per share $ 0.60 $ 1.18 Diluted earnings per share $ 0.60 $ 1.17 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregates Revenue for Each Reportable Segment and Geographic Region | The following table disaggregates our revenue for each reportable segment. The Company believes that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Power Transmission Technologies $ 252.5 $ 237.6 $ 506.2 $ 458.6 Automation & Specialty 247.3 252.0 506.5 504.1 Inter-segment eliminations ( 1.7 ) ( 1.0 ) ( 2.9 ) ( 2.0 ) Total net sales $ 498.1 $ 488.6 $ 1,009.8 $ 960.7 Net sales by geographic region based on point of shipment origin are as follows: Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 North America (primarily U.S.) $ 280.8 $ 255.5 $ 572.1 $ 502.5 Europe excluding Germany 93.2 90.3 186.6 175.2 Germany 55.1 50.5 111.5 101.5 China 39.3 64.0 81.2 128.1 Asia and other excluding China 29.7 28.3 58.4 53.4 Total net sales $ 498.1 $ 488.6 $ 1,009.8 $ 960.7 |
Summary of Opening and Closing Balances of Current Contract Liability | The Company had inconsequential contract assets for the year to date periods ended June 30, 2022 and June 30, 2021, respectively. The opening and closing balances of the Company’s current contract liabilities as of the year to date periods ended June 30, 2022 and June 30, 2021 are as follows: Year to Date Ended June 30, 2022 June 30, 2021 Beginning balance $ 13.5 $ 10.3 Closing balance 15.8 12.7 Increase $ 2.3 $ 2.4 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income/(Loss) by Component (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Reconciliation of Changes in Accumulated Other Comprehensive Income/(Loss) by Component | The following is a reconciliation of changes in accumulated other comprehensive income/(loss) by component for the periods presented: Pension & Other Cumulative Total Accumulated other comprehensive income (loss) by component, April 1, 2022 $ 0.1 $ ( 28.6 ) $ ( 28.5 ) Amortization of actuarial gain (losses), net of tax ( 0.3 ) — ( 0.3 ) Foreign currency translation adjustments, net of tax — ( 87.0 ) ( 87.0 ) Net current-period other comprehensive loss ( 0.3 ) ( 87.0 ) ( 87.3 ) Accumulated other comprehensive income (loss) by component, June 30, 2022 $ ( 0.2 ) $ ( 115.6 ) $ ( 115.8 ) Pension & Other Cumulative Total Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2022 $ 0.2 $ ( 11.2 ) $ ( 11.0 ) Amortization of actuarial gain (losses), net of tax ( 0.4 ) — ( 0.4 ) Foreign currency translation adjustments, net of tax — ( 104.4 ) ( 104.4 ) Net current-period Other Comprehensive Income (Loss) ( 0.4 ) ( 104.4 ) ( 104.8 ) Accumulated Other Comprehensive Income (Loss) by Component, June 30, 2022 $ ( 0.2 ) $ ( 115.6 ) $ ( 115.8 ) Gains and Defined Cumulative Total Accumulated other comprehensive income (loss) by component, April 1, 2021 $ ( 19.1 ) $ ( 3.7 ) $ 3.3 $ ( 19.5 ) Reclassification of interest rate swap to income, net of tax 2.3 — — 2.3 Pension adjustments, net of tax — 1.2 — 1.2 Amortization of actuarial gain (losses), net of tax — 0.1 — 0.1 Foreign currency translation adjustments, net of tax — — 19.6 19.6 Net current-period other comprehensive income (loss) 2.3 1.3 19.6 23.2 Accumulated other comprehensive income (loss) by component, June 30, 2021 $ ( 16.8 ) $ ( 2.4 ) $ 22.9 $ 3.7 Gains and Defined Cumulative Total Accumulated Other Comprehensive (Loss) by Component, January 1, 2021 $ ( 21.5 ) $ ( 3.7 ) $ 46.3 $ 21.1 Reclassification of interest rate swap to income, net of tax 4.7 — — 4.7 Pension adjustments, net of tax — 1.2 — 1.2 Amortization of actuarial gain (losses), net of tax — 0.1 — 0.1 Foreign currency translation adjustments, net of tax — — ( 23.4 ) ( 23.4 ) Net current-period Other Comprehensive Income (Loss) 4.7 1.3 ( 23.4 ) ( 17.4 ) Accumulated Other Comprehensive Loss by Component, June 30, 2021 $ ( 16.8 ) $ ( 2.4 ) $ 22.9 $ 3.7 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic to Diluted Net Income per Share | The following is a reconciliation of basic to diluted net income per share: Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net income $ 26.3 $ 40.8 $ 71.1 $ 80.0 Shares used in net income per common share - basic 65.1 64.8 65.0 64.8 Effect of dilutive shares 0.2 0.6 0.3 0.6 Shares used in net income per common share - diluted 65.3 65.4 65.3 65.4 Earnings per share: Basic $ 0.40 $ 0.63 $ 1.09 $ 1.23 Diluted $ 0.40 $ 0.62 $ 1.09 $ 1.22 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories at June 30, 2022 and December 31, 2021 consisted of the following: June 30, 2022 December 31, 2021 Raw materials $ 165.4 $ 124.1 Work in process 30.7 26.7 Finished goods 120.0 117.0 $ 316.1 $ 267.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill from January 1, 2022 through June 30, 2022 were as follows: Power Automation Total Goodwill $ 442.8 $ 1,352.1 $ 1,794.9 Accumulated impairment loss ( 31.8 ) ( 199.1 ) ( 230.9 ) Balance January 1, 2022 $ 411.0 $ 1,153.0 $ 1,564.0 Measurement period adjustments related to the Nook acquisition — ( 0.6 ) ( 0.6 ) Impact of changes in foreign currency ( 9.7 ) ( 32.8 ) ( 42.5 ) Goodwill balance June 30, 2022 $ 401.3 $ 1,119.6 $ 1,520.9 |
Other Intangible Assets | Other intangible assets as of June 30, 2022 and December 31, 2021 consisted of the following: June 30, 2022 December 31, 2021 Cost Accumulated Net Cost Accumulated Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks (1) $ 203.9 $ 0.1 $ 203.8 $ 212.2 $ — $ 212.2 Intangible assets subject to amortization: Customer relationships 928.7 219.3 709.4 960.2 206.4 753.8 Product technology and patents 141.5 56.7 84.8 141.4 50.2 91.2 Total intangible assets $ 1,274.1 $ 276.1 $ 998.0 $ 1,313.8 $ 256.6 $ 1,057.2 (1) While the majority of the Company's tradenames are considered indefinite lived intangible assets, tradenames acquired through the acquisition of Nook are subject to amortization. The net book value of Nook's tradename was approximately $ 1.0 million as of June 30, 2022. |
Warranty Costs (Tables)
Warranty Costs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Guarantees [Abstract] | |
Changes in Carrying Amount of Accrued Product Warranty Costs | Changes in the carrying amount of accrued product warranty costs for each of the year to date periods ended June 30, 2022 and 2021 were as follows: June 30, 2022 June 30, 2021 Balance at beginning of period $ 8.3 $ 9.2 Accrued current period warranty expense 1.7 1.7 Payments and adjustments ( 1.4 ) ( 0.8 ) Balance at end of period $ 8.6 $ 10.1 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Outstanding Debt Obligations | Outstanding debt obligations at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 December 31, 2021 Debt: Term loan $ 395.0 $ 400.0 Revolver 285.0 605.0 Notes 400.0 400.0 Mortgages and other 7.7 9.2 Finance leases 0.0 0.1 Total gross debt 1,087.7 1,414.3 Less: debt discount and deferred financing ( 2.0 ) ( 2.2 ) Total debt, net of debt discount and 1,085.7 1,412.1 Less: current portion of long-term debt ( 15.6 ) ( 11.1 ) Total long-term debt $ 1,070.1 $ 1,401.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the Company’s plan for the year to date period ended June 30, 2022: Weighted Options Weighted- Aggregate Outstanding at January 1, 2022 500.0 $ 39.26 Granted 176.2 45.05 Outstanding at June 30, 2022 8.1 676.2 $ 40.77 $ 0.9 Exercisable at June 30, 2022 7.3 241.3 $ 35.87 $ 0.6 Unvested and expected to vest at June 30, 2022 8.5 412.0 $ 43.34 $ 0.4 |
Summary of Restricted Stock Unit Activity | The following table summarizes the Restricted Stock Unit activity under the Company’s plan for the year to date period ended June 30, 2022: Shares Weighted- Aggregate Unvested at January 1, 2022 420.5 $ 42.21 Granted 190.0 44.53 Vested ( 91.1 ) 38.72 Canceled/Forfeited ( 2.6 ) 44.80 Unvested at June 30, 2022 516.8 $ 43.66 $ 18.2 |
Summary of Performance Share Awards Activity | The following table summarizes the Performance Share Award activity under the Company’s plan for the year to date period ended June 30, 2022: Shares Weighted- Aggregate Unvested at January 1, 2022 286.5 $ 40.23 Granted 82.1 45.45 Vested ( 125.9 ) 32.02 Unvested at June 30, 2022 242.7 $ 46.64 $ 8.6 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of Accrued Restructuring Costs | The following is a reconciliation of the accrued restructuring costs between January 1, 2022 and June 30, 2022: 2017 Altra 2019 Altra Total All Balance at January 1, 2022 $ — $ 0.5 $ 0.5 Restructuring expense incurred — 0.4 0.4 Cash payments — ( 0.3 ) ( 0.3 ) Balance at March 31, 2022 $ — $ 0.6 $ 0.6 Restructuring expense incurred — 0.5 0.5 Cash payments — ( 0.5 ) ( 0.5 ) Balance at June 30, 2022 — 0.6 0.6 The following is a reconciliation of the accrued restructuring costs between January 1, 2021 and June 30, 2021: 2017 Altra 2019 Altra Total All Balance at January 1, 2021 $ 0.5 $ 1.8 $ 2.3 Restructuring expense incurred — 0.9 0.9 Cash payments ( 0.1 ) ( 1.4 ) ( 1.5 ) Balance at March 31, 2021 $ 0.4 $ 1.3 $ 1.7 Restructuring expense incurred — 0.8 0.8 Cash payments ( 0.1 ) ( 1.3 ) ( 1.4 ) Balance at June 30, 2021 0.3 0.8 1.1 |
Reconciliation of Restructuring Expense by Segment | The following is a reconciliation of restructuring expense by segment for the quarter ended June 30, 2022: 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 0.1 $ 0.1 Automation & Specialty — 0.4 0.4 Total restructuring expense $ — $ 0.5 $ 0.5 The following is a reconciliation of restructuring expense by segment for the quarter ended June 30, 2021: 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 0.4 $ 0.4 Automation & Specialty — 0.4 0.4 Total restructuring expense $ — $ 0.8 $ 0.8 The following is a reconciliation of restructuring expense by segment for the year to date period ended June 30, 2022: 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 0.1 $ 0.1 Automation & Specialty — 0.8 0.8 Total restructuring expense $ — $ 0.9 $ 0.9 The following is a reconciliation of restructuring expense by segment for the year to date period ended June 30, 2021: 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 1.0 $ 1.0 Automation & Specialty — 0.7 0.7 Total restructuring expense $ — $ 1.7 $ 1.7 |
Segments, Concentrations and _2
Segments, Concentrations and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Financial Information and Reconciliation of Segments Revenue to Unaudited Condensed Consolidated Revenue | Segment financial information and a reconciliation of segment results to unaudited condensed consolidated results are as follows: Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net Sales: Power Transmission Technologies $ 252.5 $ 237.6 $ 506.2 $ 458.6 Automation & Specialty 247.3 252.0 506.5 504.1 Inter-segment eliminations ( 1.7 ) ( 1.0 ) ( 2.9 ) ( 2.0 ) Net sales $ 498.1 $ 488.6 $ 1,009.8 $ 960.7 Income from operations: Segment earnings: Power Transmission Technologies $ 37.5 $ 33.6 $ 69.8 $ 61.4 Automation & Specialty (1) 32.1 37.4 67.7 78.8 Corporate expenses (2) ( 5.4 ) ( 4.7 ) ( 5.3 ) ( 7.9 ) Restructuring costs ( 0.5 ) ( 0.8 ) ( 0.9 ) ( 1.7 ) Income from operations $ 63.7 $ 65.5 $ 131.3 $ 130.6 Other non-operating expense: Net interest expense 11.8 16.5 23.1 33.4 Other non-operating income, net ( 1.9 ) ( 1.7 ) ( 2.0 ) ( 3.2 ) Total non-operating expense $ 9.9 $ 14.8 $ 21.1 $ 30.2 Income before income taxes 53.8 50.7 110.2 100.4 Provision for income taxes 27.5 9.9 39.1 20.4 Net income $ 26.3 $ 40.8 $ 71.1 $ 80.0 (1) The Company recorded non-cash impairment charges of $ 2.2 million and $ 8.3 million at the JVS reporting unit during the quarter and year to date periods ended June 30, 2022, respectively, related to the held for sale classification. (2) Certain expenses are maintained at the corporate level and are not allocated to the segments. These include various administrative expenses related to the corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs and acquisition related expenses. |
Reconciliation of Segment Assets to Consolidated Assets | Selected information by segment (continued): Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Depreciation and amortization: Power Transmission Technologies $ 7.1 $ 8.0 $ 14.5 $ 16.0 Automation & Specialty 16.0 22.3 32.2 44.3 Corporate 0.6 0.7 1.2 1.4 Total depreciation and amortization $ 23.7 $ 31.0 $ 47.9 $ 61.7 June 30, 2022 June 30, 2021 Total assets: Power Transmission Technologies $ 1,065.6 $ 1,070.5 Automation & Specialty 2,522.2 2,981.2 Corporate (3) 106.4 160.2 Total assets $ 3,694.2 $ 4,211.9 (3) Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, property, plant and equipment and deferred financing costs. |
Net Sales to Third Parties by Geographic Region | Net sales to third parties by geographic region are as follows: Net Sales Quarter Ended Year to Date Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 North America (primarily U.S.) $ 280.8 $ 255.5 $ 572.1 $ 502.5 Europe excluding Germany 93.2 90.3 186.6 175.2 Germany 55.1 50.5 111.5 101.5 China 39.3 64.0 81.2 128.1 Asia and other excluding China 29.7 28.3 58.4 53.4 Total $ 498.1 $ 488.6 $ 1,009.8 $ 960.7 |
Organization and Nature of Op_2
Organization and Nature of Operations - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Country | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which the company has production facilities | 16 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 08, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | |||||
Amount borrowed to finance acquisition | $ 15 | ||||
Measurement period adjustments related to the Nook acquisition | (0.6) | ||||
Impairment charges | $ 2.2 | 8.3 | |||
Net cash consideration received | 325.9 | ||||
Jacobs Vehicle Systems Divestiture [Member] | |||||
Business Acquisition [Line Items] | |||||
Divestiture of issued and outstandingI interest of entities selling price | $ 325 | ||||
Net cash consideration received | 325.9 | ||||
Transaction costs related to divestiture | $ 9.4 | ||||
Jacobs Vehicle Systems Divestiture [Member] | Held for Sale [Member] | |||||
Business Acquisition [Line Items] | |||||
Non cash goodwill impairment charge | $ 60 | ||||
Asset held for sale impairment charge | 2.2 | 82.4 | $ 8.3 | ||
Impairment charges | 142.4 | ||||
Nook Industries, LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition date of acquisition | Dec. 31, 2021 | ||||
Aggregate purchase price | $ 138.5 | $ 138.1 | |||
Cash post-closing adjustment | 125.2 | ||||
Cash acquired | 5.1 | $ 5.1 | $ 5.1 | 5.1 | |
Noncontingent purchase price holdback | 8.2 | ||||
Measurement period adjustments related to the Nook acquisition | $ 0.6 | ||||
Nook Industries, LLC [Member] | Revolving Credit Facility [Member] | |||||
Business Acquisition [Line Items] | |||||
Amount borrowed to finance acquisition | 130 | ||||
Nook Industries, LLC [Member] | Accrued Expenses and Other Liabilities [Member] | |||||
Business Acquisition [Line Items] | |||||
Noncontingent purchase price holdback | $ 8.2 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2022 | |
Recognized identifiable assets acquired and liabilities assumed: | ||
Goodwill | $ 1,564 | $ 1,520.9 |
Nook Industries, LLC [Member] | ||
Consideration transferred: | ||
Total cash consideration | 129.9 | |
Purchase price holdback | 8.2 | |
Fair value of consideration transferred | 138.5 | 138.1 |
Recognized identifiable assets acquired and liabilities assumed: | ||
Cash and cash equivalents | 5.1 | 5.1 |
Receivables | 3.7 | |
Inventory | 10.8 | |
Prepaids and other current assets | 0.4 | |
Property, plant and equipment | 12.8 | |
Deferred tax asset | 0.9 | |
Other non-current assets | 5 | |
Intangibles | $ 55.1 | 55.1 |
Accounts payable | (2.9) | |
Accrued payroll | (0.7) | |
Accrued expenses and other current liabilities | (2.5) | |
Other long term liability | (4.6) | |
Total identifiable net assets assumed | 83.1 | |
Goodwill | $ 55 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Schedule of Intangible Assets Acquired (Detail) - Nook Industries, LLC [Member] - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||
Customer relationships | $ 54 | |
Trade names | 1.1 | |
Total intangible assets | $ 55.1 | $ 55.1 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Schedule of Unaudited Pro Forma Results of Operations (Details) - Nook Industries, LLC [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 498.3 | $ 979.4 |
Net income (loss) | $ 39.1 | $ 76.6 |
Basic earnings per share | $ 0.60 | $ 1.18 |
Diluted earnings per share | $ 0.60 | $ 1.17 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Schedule of Assets and Liabilities of the JVS Business Classified as Held for sale (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Current assets: | |||
Trade receivables | $ 271.6 | $ 224.5 | |
Inventories | 316.1 | 267.8 | |
Prepaid expenses and other current assets | 36.8 | 40.4 | |
Property, plant and equipment, net | 271.8 | 275.8 | |
Goodwill | 1,520.9 | 1,564 | |
Intangible assets, net | 998 | 1,057.2 | |
Other assets | 17 | 13.5 | |
Total assets | 3,694.2 | 4,130.6 | $ 4,211.9 |
Current liabilities: | |||
Accounts payable | 183.9 | 173.3 | |
Deferred tax liabilities | 249.5 | 250.5 | |
Other liabilities | $ 6 | 7.3 | |
Jvs Divestiture [Member] | Held For Sale [Member] | |||
Current assets: | |||
Trade receivables | 11.3 | ||
Inventories | 16.3 | ||
Prepaid expenses and other current assets | 2.3 | ||
Property, plant and equipment, net | 64.6 | ||
Intangible assets, net | 364.5 | ||
Other assets | 0.7 | ||
Impairment on carrying value | (82.4) | ||
Total assets | 377.3 | ||
Current liabilities: | |||
Accounts payable | 20.8 | ||
Other current liabilities | 9.8 | ||
Deferred tax liabilities | 22.3 | ||
Other liabilities | 0.1 | ||
Liabilities, Total | $ 53 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Schedule of Assets and Liabilities of JVS Business Classified as Held for Sale (Parenthetical) (Details) - Jvs Divestiture [Member] - Held For Sale [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Favorable cumulative foreign currency translation adjustment and accumulated other post retirement benefit obligation gains | $ 10.8 |
Estimated transaction costs incurred | $ 11.5 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Channel | |
Revenue from Contract with Customer [Abstract] | |
Number of distribution channels | 3 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregates Revenue for Each Reportable Segment and Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 498.1 | $ 488.6 | $ 1,009.8 | $ 960.7 |
North America (primarily U.S.) [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 280.8 | 255.5 | 572.1 | 502.5 |
Europe Excluding Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 93.2 | 90.3 | 186.6 | 175.2 |
Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 55.1 | 50.5 | 111.5 | 101.5 |
China [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 39.3 | 64 | 81.2 | 128.1 |
Asia and Other Excluding China [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 29.7 | 28.3 | 58.4 | 53.4 |
Operating Segments [Member] | Power Transmission Technologies [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 252.5 | 237.6 | 506.2 | 458.6 |
Operating Segments [Member] | Automation & Specialty [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 247.3 | 252 | 506.5 | 504.1 |
Intersegment Eliminations [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ (1.7) | $ (1) | $ (2.9) | $ (2) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Opening and Closing Balances of Current Contract Liability (Detail) - ASU 2014-09 [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Beginning balance | $ 13.5 | $ 10.3 |
Closing balance | 15.8 | 12.7 |
Increase | $ 2.3 | $ 2.4 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
May 31, 2022 | Jun. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Unrealized holding gain recognized | $ 0.7 | |||
MTEK [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Minority equity interest in a privately held manufacturing software company | $ 4.6 | $ 5 | ||
Unrealized holding gain recognized | 0.7 | |||
Notes [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt | 400 | $ 400 | ||
Estimated fair value | 383.5 | |||
Altra Credit Agreement [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt | 395 | $ 400 | ||
Altra Credit Agreement [Member] | Term Loan Facility [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt | 395 | |||
Altra Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt | $ 285 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income/(Loss) by Component - Reconciliation of Changes in Accumulated Other Comprehensive Income/(Loss) by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) by Component | $ (11) | |||
Beginning balance | $ 2,007 | $ 1,991.8 | 1,985.1 | $ 1,996.7 |
Reclassification of interest rate swap to income, net of tax | 2.3 | 4.7 | ||
Pension adjustments, net of tax | 1.2 | 1.2 | ||
Amortization of actuarial gain (losses), net of tax | (0.3) | 0.1 | (0.4) | 0.1 |
Foreign currency translation adjustments, net of tax | (87) | 19.6 | (104.4) | (23.4) |
Net current-period other comprehensive income (loss) | (87.3) | (23.2) | (104.8) | (17.4) |
Accumulated Other Comprehensive Income (Loss) by Component | (115.8) | (115.8) | ||
Ending balance | 1,944.3 | 2,056.7 | 1,944.3 | 2,056.7 |
Gains and (Losses) on Cash Flow Hedges [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) by Component | (19.1) | (21.5) | ||
Reclassification of interest rate swap to income, net of tax | 2.3 | 4.7 | ||
Net current-period other comprehensive income (loss) | 2.3 | 4.7 | ||
Accumulated Other Comprehensive Income (Loss) by Component | (16.8) | (16.8) | ||
Pension & Other Post Retirement and Defined Benefit Pension Plans [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) by Component | 0.1 | (3.7) | 0.2 | (3.7) |
Pension adjustments, net of tax | 1.2 | 1.2 | ||
Amortization of actuarial gain (losses), net of tax | (0.3) | 0.1 | (0.4) | 0.1 |
Net current-period other comprehensive income (loss) | (0.3) | 1.3 | (0.4) | 1.3 |
Accumulated Other Comprehensive Income (Loss) by Component | (0.2) | (2.4) | (0.2) | (2.4) |
Cumulative Foreign Currency Translation Adjustment [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) by Component | (28.6) | 3.3 | (11.2) | 46.3 |
Foreign currency translation adjustments, net of tax | (87) | 19.6 | (104.4) | (23.4) |
Net current-period other comprehensive income (loss) | (87) | (19.6) | (104.4) | (23.4) |
Accumulated Other Comprehensive Income (Loss) by Component | (115.6) | 22.9 | (115.6) | 22.9 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (28.5) | (19.5) | (11) | 21.1 |
Ending balance | $ (115.8) | $ 3.7 | $ (115.8) | $ 3.7 |
Net Income per Share - Reconcil
Net Income per Share - Reconciliation of Basic to Diluted Net Income per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 26.3 | $ 40.8 | $ 71.1 | $ 80 |
Shares used in net income per common share - basic | 65.1 | 64.8 | 65 | 64.8 |
Effect of dilutive shares | 0.2 | 0.6 | 0.3 | 0.6 |
Shares used in net income per common share - diluted | 65.3 | 65.4 | 65.3 | 65.4 |
Earnings per share: | ||||
Basic | $ 0.40 | $ 0.63 | $ 1.09 | $ 1.23 |
Diluted | $ 0.40 | $ 0.62 | $ 1.09 | $ 1.22 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 165.4 | $ 124.1 |
Work in process | 30.7 | 26.7 |
Finished goods | 120 | 117 |
Inventories, net | $ 316.1 | $ 267.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill And Intangible Assets [Line Items] | ||||
Amortization expense | $ 13.8 | $ 17.7 | $ 27.8 | $ 35.3 |
Estimated amortization expense, remainder of 2022 | 27.7 | 27.7 | ||
Estimated amortization expense, year 2023 | 54.4 | 54.4 | ||
Estimated amortization expense, year 2024 | 53.9 | 53.9 | ||
Estimated amortization expense, year 2025 | 53.4 | 53.4 | ||
Estimated amortization expense, year 2026 | 52.5 | 52.5 | ||
Estimated amortization expense, thereafter | $ 553.3 | $ 553.3 | ||
Thomson Reporting Unit [Member] | Maximum [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 10% | 10% | ||
All Other Reporting Units [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 10% | 10% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,794.9 | |
Accumulated impairment loss | (230.9) | |
Goodwill, Beginning balance | $ 1,564 | |
Measurement period adjustments related to the Nook acquisition | (0.6) | |
Impact of changes in foreign currency | (42.5) | |
Goodwill | 1,520.9 | |
Power Transmission Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 442.8 | |
Accumulated impairment loss | (31.8) | |
Goodwill, Beginning balance | 411 | |
Impact of changes in foreign currency | (9.7) | |
Goodwill | 401.3 | |
Automation & Specialty [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 1,352.1 | |
Accumulated impairment loss | $ (199.1) | |
Goodwill, Beginning balance | 1,153 | |
Measurement period adjustments related to the Nook acquisition | (0.6) | |
Impact of changes in foreign currency | (32.8) | |
Goodwill | $ 1,119.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, cost | $ 1,274.1 | $ 1,313.8 |
Total intangible assets, accumulated amortization | 276.1 | 256.6 |
Total intangible assets, net | 998 | 1,057.2 |
Customer Relationships [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, cost | 928.7 | 960.2 |
Intangible assets subject to amortization, accumulated amortization | 219.3 | 206.4 |
Intangible assets subject to amortization, net | 709.4 | 753.8 |
Product Technology and Patents [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, cost | 141.5 | 141.4 |
Intangible assets subject to amortization, accumulated amortization | 56.7 | 50.2 |
Intangible assets subject to amortization, net | 84.8 | 91.2 |
Tradenames and Trademarks [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization, cost | 203.9 | 212.2 |
Intangible assets not subject to amortization, accumulated amortization | 0.1 | |
Intangible assets not subject to amortization, net | $ 203.8 | $ 212.2 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Other Intangible Assets (Parenthetical) (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net book value of tradename | $ 1 |
Warranty Costs - Additional Inf
Warranty Costs - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 | |
Minimum [Member] | |
Guarantor Obligations [Line Items] | |
Product warranty period | 3 months |
Maximum [Member] | |
Guarantor Obligations [Line Items] | |
Product warranty period | 2 years |
Warranty Costs - Changes in Car
Warranty Costs - Changes in Carrying Amount of Accrued Product Warranty Costs (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||
Balance at beginning of period | $ 8.3 | $ 9.2 |
Accrued current period warranty expense | 1.7 | 1.7 |
Payments and adjustments | (1.4) | (0.8) |
Balance at end of period | $ 8.6 | $ 10.1 |
Debt - Outstanding Debt Obligat
Debt - Outstanding Debt Obligations (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Finance leases | $ 0 | $ 0.1 |
Total gross debt | 1,087.7 | 1,414.3 |
Less: debt discount and deferred financing costs | (2) | (2.2) |
Total debt, net of debt discount and deferred financing costs | 1,085.7 | 1,412.1 |
Less: current portion of long-term debt | (15.6) | (11.1) |
Total long-term debt | 1,070.1 | 1,401 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 395 | 400 |
Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 285 | 605 |
Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 400 | 400 |
Mortgages and Other [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 7.7 | $ 9.2 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Nov. 17, 2021 | Oct. 01, 2018 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Finance lease obligations | $ 0 | $ 100,000 | ||
Mortgages and Other Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Description about maturity date of debt instrument | The debt has interest rates that range from 1.0% to 2.5%, with various quarterly and monthly installments through 2028. | |||
Minimum [Member] | Mortgages and Other Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate percentage | 1% | |||
Maximum [Member] | Mortgages and Other Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate percentage | 2.50% | |||
Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 3,700,000 | |||
Proceeds from credit facilities | $ 880,000,000 | |||
Outstanding debt | 680,000,000 | |||
Letters of credit outstanding | $ 4,100,000 | $ 4,800,000 | ||
Credit Agreement [Member] | Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Maximum amount available | $ 400,000,000 | |||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Maximum amount available | $ 1,000,000,000 | |||
Notice provided to administrate agent of credit facility to draw amount | $ 480,000,000 | |||
Credit Agreement [Member] | Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Nov. 17, 2026 | |||
Debt instrument, description of variable rate basis | Interest on the amounts outstanding under the Credit Facilities is calculated using either a Base Rate or Eurocurrency Rate, plus the applicable margin. The applicable margins for Eurocurrency Loans are between 1.000% to 1.750%, and for Base Rate Loans are between 0.000% and 0.750%. The amounts of the margins are calculated based on the Total Leverage Ratio (as defined in the Credit Agreement). | |||
Line of credit facility, interest rate during period | 2.81% | |||
Amount available under credit facility | $ 710,900,000 | |||
Credit Agreement [Member] | Credit Facilities [Member] | Minimum [Member] | Eurocurrency Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margins for loans | 1% | |||
Credit Agreement [Member] | Credit Facilities [Member] | Minimum [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margins for loans | 0% | |||
Credit Agreement [Member] | Credit Facilities [Member] | Maximum [Member] | Eurocurrency Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margins for loans | 1.75% | |||
Credit Agreement [Member] | Credit Facilities [Member] | Maximum [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margins for loans | 0.75% | |||
2018 Credit Agreement [Member] | 2018 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum amount available | $ 1,340,000,000 | |||
2018 Credit Agreement [Member] | 2018 Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum amount available | 300,000,000 | |||
Automation & Specialty platform Excluding Fortive's Hengstler and Dynapar Businesses [Member] | 6.125% Senior Notes Due 2026 [Member] | Newco [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, aggregate principal amount | $ 400,000,000 | |||
Debt instrument, interest rate percentage | 6.125% | |||
Debt instrument, maturity date | Oct. 01, 2026 | |||
Debt instrument, interest payment terms | The Notes will mature on October 1, 2026. Interest on the Notes accrues from October 1, 2018 and is payable semi-annually commencing on April 1, 2019. The Notes may be redeemed at the option of the issuer on or after October 1, 2023. | |||
Debt instrument, semi-annually, payable date | Apr. 01, 2019 | |||
Debt instrument, redemption, description | The Notes may be redeemed at the option of the issuer on or after October 1, 2023. | |||
Debt instrument, redemption period, start date | Oct. 01, 2023 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Apr. 26, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Oct. 01, 2018 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 | 120,000,000 | 120,000,000 | 90,000,000 | |||
Common stock, shares issued (in shares) | 65,066,459 | 65,066,459 | 64,923,539 | |||||
Common stock, shares outstanding (in shares) | 65,066,459 | 65,066,459 | 64,923,539 | |||||
Preferred Stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||||||
Preferred Stock, shares issued (in shares) | 0 | 0 | 0 | |||||
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 | |||||
Compensation expense | $ 4.3 | $ 4 | $ 8.2 | $ 7.5 | ||||
Remaining compensation cost yet to be recognized | $ 27.4 | $ 27.4 | ||||||
Remaining compensation cost yet to be recognized , period | 3 years | |||||||
Stock repurchase program, expiration period | Dec. 31, 2024 | |||||||
Share repurchased | 0 | |||||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 300 | |||||||
2014 Plan [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of common stock available for delivery pursuant to the grant of awards (in shares) | 3,700,000 | 3,700,000 | ||||||
2014 Plan [Member] | Restricted Shares and Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares for vesting period | 5 years |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Contractual Life in Years | 8 years 1 month 6 days |
Weighted Average Remaining Contractual Life in Years, options exercisable at March 31, 2022 | 7 years 3 months 18 days |
Weighted Average Remaining Contractual Life in Years, options unvested and expected to vest at March 31, 2022 | 8 years 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning balance | shares | 500,000 |
Options granted | shares | 176,200 |
Options outstanding, ending balance | shares | 676,200 |
Options exercisable at June 30, 2022 | shares | 241,300 |
Options unvested and expected to vest at June 30, 2022 | shares | 412,000 |
Weighted-average grant date fair value | |
Weighted-average grant date fair value, options beginning balance | $ / shares | $ 39.26 |
Weighted-average grant date fair value, options granted | $ / shares | 45.05 |
Weighted-average grant date fair value, options ending balance | $ / shares | 40.77 |
Weighted-average grant date fair value, options exercisable at June 30, 2022 | $ / shares | 35.87 |
Weighted-average grant date fair value, options unvested and expected to vest at March 31, 2022 | $ / shares | $ 43.34 |
Aggregate Intrinsic Value, options outstanding | $ | $ 0.9 |
Aggregate Intrinsic Value, options exercisable at June 30, 2022 | $ | 0.6 |
Aggregate Intrinsic Value, options unvested and expected to vest at June 30, 2022 | $ | $ 0.4 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Shares unvested, beginning balance | shares | 420,500 |
Shares granted | shares | 190,000 |
Shares vested | shares | (91,100) |
Shares canceled/forfeited | shares | (2,600) |
Shares unvested, ending balance | shares | 516,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 42.21 |
Weighted-average grant date fair value, shares granted | $ / shares | 44.53 |
Weighted-average grant date fair value, shares vested | $ / shares | 38.72 |
Weighted-average grant date fair value, shares canceled/forfeited | $ / shares | 44.80 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 43.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract] | |
Aggregate Intrinsic Value at March 31, 2022 | $ | $ 18.2 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Performance Share Awards Activity (Detail) - Performance Share Awards $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Shares unvested, beginning balance | shares | 286,500 |
Shares granted | shares | 82,100 |
Shares vested | shares | (125,900) |
Shares unvested, ending balance | shares | 242,700 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 40.23 |
Weighted-average grant date fair value, shares granted | $ / shares | 45.45 |
Weighted-average grant date fair value, shares vested | $ / shares | 32.02 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 46.64 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |
Aggregate Intrinsic Value at June 30, 2022 | $ | $ 8.6 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring costs | $ 500,000 | $ 400,000 | $ 800,000 | $ 900,000 | $ 900,000 | $ 1,700,000 | |
2017 Altra Plan [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring costs | 0 | ||||||
2019 Altra Plan [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Expected period to incur restructuring expense | 2 years | ||||||
Restructuring costs | 500,000 | $ 400,000 | $ 800,000 | $ 900,000 | 900,000 | $ 1,700,000 | |
2019 Altra Plan [Member] | Severance [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring costs | $ 500,000 | $ 900,000 | |||||
2019 Altra Plan [Member] | Minimum [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Expected additional restructuring cost remaining | $ 5,000,000 | ||||||
2019 Altra Plan [Member] | Maximum [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Expected additional restructuring cost remaining | $ 7,000,000 |
Restructuring Costs - Reconcili
Restructuring Costs - Reconciliation of Accrued Restructuring Costs (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | $ 600,000 | $ 500,000 | $ 1,700,000 | $ 2,300,000 | $ 500,000 | $ 2,300,000 |
Restructuring expense incurred | 500,000 | 400,000 | 800,000 | 900,000 | 900,000 | 1,700,000 |
Cash payments | (500,000) | (300,000) | (1,400,000) | (1,500,000) | ||
Ending Balance | 600,000 | 600,000 | 1,100,000 | 1,700,000 | 600,000 | 1,100,000 |
2017 Altra Plan [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 400,000 | 500,000 | 500,000 | |||
Restructuring expense incurred | 0 | |||||
Cash payments | (100,000) | (100,000) | ||||
Ending Balance | 300,000 | 400,000 | 300,000 | |||
2019 Altra Plan [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 600,000 | 500,000 | 1,300,000 | 1,800,000 | 500,000 | 1,800,000 |
Restructuring expense incurred | 500,000 | 400,000 | 800,000 | 900,000 | 900,000 | 1,700,000 |
Cash payments | (500,000) | (300,000) | (1,300,000) | (1,400,000) | ||
Ending Balance | $ 600,000 | $ 600,000 | $ 800,000 | $ 1,300,000 | $ 600,000 | $ 800,000 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Reconciliation of Restructuring Expense by Segment (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | $ 500,000 | $ 400,000 | $ 800,000 | $ 900,000 | $ 900,000 | $ 1,700,000 |
2017 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 0 | |||||
2019 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 500,000 | $ 400,000 | 800,000 | $ 900,000 | 900,000 | 1,700,000 |
Operating Segments [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 500,000 | 800,000 | 900,000 | 1,700,000 | ||
Operating Segments [Member] | Power Transmission Technologies [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 100,000 | 400,000 | 100,000 | 1,000,000 | ||
Operating Segments [Member] | Automation & Specialty [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 400,000 | 400,000 | 800,000 | 700,000 | ||
Operating Segments [Member] | 2019 Altra Plan [Member] | Power Transmission Technologies [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 100,000 | 400,000 | 100,000 | 1,000,000 | ||
Operating Segments [Member] | 2019 Altra Plan [Member] | Automation & Specialty [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | $ 400,000 | $ 400,000 | $ 800,000 | $ 700,000 |
Segments, Concentrations and _3
Segments, Concentrations and Geographic Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Segments, Concentrations and _4
Segments, Concentrations and Geographic Information - Segment Financial Information and Reconciliation of Segments Revenue to Unaudited Condensed Consolidated Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | $ 498.1 | $ 488.6 | $ 1,009.8 | $ 960.7 | ||
Income from operations | 63.7 | 65.5 | 131.3 | 130.6 | ||
Restructuring costs | (0.5) | $ (0.4) | (0.8) | $ (0.9) | (0.9) | (1.7) |
Net interest expense | 11.8 | 16.5 | 23.1 | 33.4 | ||
Other non-operating income, net | (1.9) | (1.7) | (2) | (3.2) | ||
Total other non-operating (income) expense, net | 9.9 | 14.8 | 21.1 | 30.2 | ||
Income before income taxes | 53.8 | 50.7 | 110.2 | 100.4 | ||
Provision for income taxes | 27.5 | 9.9 | 39.1 | 20.4 | ||
Net income | 26.3 | 40.8 | 71.1 | 80 | ||
Operating Segments [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Restructuring costs | (0.5) | (0.8) | (0.9) | (1.7) | ||
Operating Segments [Member] | Power Transmission Technologies [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 252.5 | 237.6 | 506.2 | 458.6 | ||
Income from operations | 37.5 | 33.6 | 69.8 | 61.4 | ||
Restructuring costs | (0.1) | (0.4) | (0.1) | (1) | ||
Operating Segments [Member] | Automation & Specialty [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 247.3 | 252 | 506.5 | 504.1 | ||
Income from operations | 32.1 | 37.4 | 67.7 | 78.8 | ||
Restructuring costs | (0.4) | (0.4) | (0.8) | (0.7) | ||
Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | (1.7) | (1) | (2.9) | (2) | ||
Corporate Expenses [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Income from operations | $ 5.4 | $ (4.7) | $ (5.3) | $ (7.9) |
Segments, Concentrations and _5
Segments, Concentrations and Geographic Information - Segment Financial Information and Reconciliation of Segments Revenue to Unaudited Condensed Consolidated Revenue (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-cash impairment charges | $ 2.2 | $ 8.3 |
Jacobs Vehicle Systems [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-cash impairment charges | $ 2.2 | $ 8.3 |
Segments, Concentrations and _6
Segments, Concentrations and Geographic Information - Reconciliation of Segment Assets to Consolidated Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total depreciation and amortization | $ 23.7 | $ 31 | $ 47.9 | $ 61.7 | |
Total assets | 3,694.2 | 4,211.9 | 3,694.2 | 4,211.9 | $ 4,130.6 |
Corporate [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total depreciation and amortization | 0.6 | 0.7 | 1.2 | 1.4 | |
Total assets | 106.4 | 160.2 | 106.4 | 160.2 | |
Power Transmission Technologies [Member] | Operating Segments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total depreciation and amortization | 7.1 | 8 | 14.5 | 16 | |
Total assets | 1,065.6 | 1,070.5 | 1,065.6 | 1,070.5 | |
Automation & Specialty [Member] | Operating Segments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total depreciation and amortization | 16 | 22.3 | 32.2 | 44.3 | |
Total assets | $ 2,522.2 | $ 2,981.2 | $ 2,522.2 | $ 2,981.2 |
Segments, Concentrations and _7
Segments, Concentrations and Geographic Information - Net Sales to Third Parties by Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 498.1 | $ 488.6 | $ 1,009.8 | $ 960.7 |
North America (primarily U.S.) [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 280.8 | 255.5 | 572.1 | 502.5 |
Europe Excluding Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 93.2 | 90.3 | 186.6 | 175.2 |
Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 55.1 | 50.5 | 111.5 | 101.5 |
China [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 39.3 | 64 | 81.2 | 128.1 |
Asia and Other Excluding China [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 29.7 | $ 28.3 | $ 58.4 | $ 53.4 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Jun. 30, 2021 | Mar. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | |
Cross Currency Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Proceeds from cross-currency interest rate swaps upon termination | $ 56.2 | |||||
Paid termination fees | 0.9 | |||||
Gain (loss) in AOCIL | $ 44.8 | $ 44.8 | ||||
AOCIL tax expense (benefit) | $ 11.4 | 11.4 | ||||
Cross Currency Interest Rate Swap [Member] | Interest Income [Member] | ||||||
Derivative [Line Items] | ||||||
Cumulative translation adjustment recognized net interest income (expense), net amount | $ 3.3 | |||||
Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Paid termination fees | $ 0.1 | |||||
Maturity date of interest rate swap | Jan. 31, 2020 | |||||
Fair value of swap | 34.7 | |||||
Net interest expense | $ 0.1 | |||||
Interest Rate Swap [Member] | Altra Credit Agreement [Member] | ||||||
Derivative [Line Items] | ||||||
Non-cash interest expense from AOCIL to earnings | $ 2.3 | 4.7 | ||||
Non-cash interest expense, tax benefit from AOCIL to earnings | $ 0.7 | $ 1.4 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency accrual | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jul. 25, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Subsequent Event [Line Items] | |||||
Cash dividend declared | $ 0.09 | $ 0.08 | $ 0.17 | $ 0.14 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend declared | $ 0.09 | ||||
Dividend payable date | Oct. 04, 2022 | ||||
Dividend record date | Sep. 16, 2022 |