Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 21, 2020 | |
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, 2020 | |
Document Fiscal Year Focus | 2020 | |
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) | 64,655,978 | |
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, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 220.1 | $ 167.3 |
Trade receivables, less allowance for credit losses of $5.7 and $5.1 million at June 30, 2020 and December 31, 2019, respectively | 230.6 | 243.2 |
Inventories | 223.1 | 222.5 |
Income tax receivable | 6.4 | 5.2 |
Prepaid expenses and other current assets | 35.8 | 29.1 |
Total current assets | 716 | 667.3 |
Property, plant and equipment, net | 339.7 | 354.4 |
Goodwill | 1,543 | 1,694.9 |
Intangible assets, net | 1,450.4 | 1,502.4 |
Deferred income taxes | 1 | 3 |
Other non-current assets | 9.2 | 25.1 |
Operating lease right of use assets | 41.4 | 36.6 |
Total assets | 4,100.7 | 4,283.7 |
Current liabilities: | ||
Accounts payable | 140.1 | 154.7 |
Accrued payroll | 57.3 | 58.3 |
Accruals and other current liabilities | 75.7 | 82 |
Income tax payable | 11.9 | 13.2 |
Current portion of long-term debt | 17 | 18 |
Operating lease liabilities | 13 | 13.5 |
Total current liabilities | 315 | 339.7 |
Long-term debt - less current portion | 1,535.6 | 1,563.8 |
Deferred income taxes | 368.2 | 369.1 |
Pension liabilities | 30.5 | 30.8 |
Long-term taxes payable | 2.7 | 4.5 |
Other long-term liabilities | 9.8 | 28.8 |
Operating lease liabilities, net of current portion | 30.4 | 24.7 |
Commitments and Contingencies (Note 16) | ||
Stockholders’ equity: | ||
Common stock ($0.001 par value per share, 120,000,000 shares authorized, 64,575,115 and 64,222,603 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively) | 0.1 | 0.1 |
Additional paid-in capital | 1,701.8 | 1,696.7 |
Retained earnings | 206.7 | 315.4 |
Accumulated other comprehensive loss | (100.1) | (89.9) |
Total stockholders’ equity | 1,808.5 | 1,922.3 |
Total liabilities and stockholders’ equity | $ 4,100.7 | $ 4,283.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for credit losses | $ 5.7 | $ 5.1 |
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) | 64,575,115 | 64,222,603 |
Common stock, shares outstanding (in shares) | 64,575,115 | 64,222,603 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 400.8 | $ 466.5 | $ 835 | $ 949.3 |
Cost of sales | 257.4 | 299.5 | 538.6 | 607.4 |
Gross profit | 143.4 | 167 | 296.4 | 341.9 |
Operating expenses: | ||||
Selling, general and administrative expenses | 75.8 | 92 | 162.9 | 182.9 |
Impairment of goodwill and intangible asset | 147.5 | |||
Research and development expenses | 14 | 14.7 | 28.8 | 30 |
Restructuring costs | 1.5 | 3.2 | 3.1 | 5.5 |
Total operating expenses | 91.3 | 109.9 | 342.3 | 218.4 |
(Loss)/Income from operations | 52.1 | 57.1 | (45.9) | 123.5 |
Other non-operating income and expense: | ||||
Interest expense, net | 18.8 | 18.6 | 36.2 | 38.4 |
Other non-operating expense, net | 2.5 | 0.4 | 1.1 | 1.5 |
Total other non-operating (income) expense, net | 21.3 | 19 | 37.3 | 39.9 |
(Loss)/Income before income taxes | 30.8 | 38.1 | (83.2) | 83.6 |
Provision for income taxes | 9.1 | 9.1 | 11.8 | 19.4 |
Net (loss)/income | $ 21.7 | $ 29 | $ (95) | $ 64.2 |
Weighted average shares, basic | 64.6 | 64.3 | 64.5 | 64.3 |
Weighted average shares, diluted | 64.7 | 64.5 | 64.5 | 64.5 |
Net (loss)/income per share: | ||||
Basic | $ 0.34 | $ 0.45 | $ (1.47) | $ 1 |
Diluted | 0.34 | 0.45 | (1.47) | 1 |
Cash dividend declared per share | $ 0.04 | $ 0.17 | $ 0.21 | $ 0.34 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income/(loss) | $ 21.7 | $ 29 | $ (95) | $ 64.2 |
Other Comprehensive income: | ||||
Foreign currency translation adjustment | 27.2 | 4.9 | (31.1) | (7.6) |
Change in pension liability adjustment | (0.1) | (0.3) | ||
Non-cash amortization of interest rate swap expense, net of tax | 1.7 | 1.7 | ||
Change in fair value of derivative financial instruments, net of tax | (0.2) | (14) | 19.3 | (2.5) |
Total other comprehensive income/(loss): | 28.7 | (9.1) | (10.2) | (10.4) |
Comprehensive income/(loss) | $ 50.4 | $ 19.9 | $ (105.2) | $ 53.8 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net Income/(loss) | $ (95) | $ 64.2 |
Adjustments to reconcile net income to net operating cash flows: | ||
Depreciation | 29.3 | 28.9 |
Amortization of intangible assets | 34.8 | 35.4 |
Amortization of deferred financing costs | 2.3 | 2.3 |
Accretion of debt discount | 0.2 | |
Non-cash amortization of interest rate swap expense | 2.2 | |
Impairment of goodwill and intangible asset | 147.5 | |
Payment for interest rate swap settlement | (34.7) | |
(Gain)/Loss on foreign currency, net | (0.1) | 0.8 |
Loss on disposal and other | (0.2) | |
Stock-based compensation | 7.1 | 7 |
Changes in assets and liabilities: | ||
Trade receivables | 10.9 | (10.2) |
Inventories | (3.6) | (6.3) |
Accounts payable, accrued payroll, accruals and current liabilities | (10.8) | (20.2) |
Other current assets and liabilities | (14.6) | (4.5) |
Other operating assets and liabilities | (1.8) | (1.5) |
Net cash provided by operating activities | 73.7 | 96.1 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (17.3) | (24.1) |
A&S acquisition purchase price adjustment | (13.5) | |
Proceeds from cross currency interest rate swap settlement | 56.2 | 0.3 |
Net cash provided by (used in) investing activities | 38.9 | (37.3) |
Cash flows from financing activities | ||
Borrowing under Revolving Credit Facility | 100 | |
Payments on Revolving Credit Facility | (100) | |
Payments on Term Loan Facility | (30) | (50) |
Dividend payments | (22.3) | (22) |
Net payments on financing leases, mortgages, and other obligations | (0.2) | (0.5) |
Net proceeds/(payments) from China debt | (0.6) | 2.4 |
Shares surrendered for tax withholding | (2) | (2.3) |
Net cash used in financing activities | (55.1) | (72.4) |
Effect of exchange rate changes on cash and cash equivalents | (4.7) | (1.8) |
Net change in cash and cash equivalents | 52.8 | (15.4) |
Cash and cash equivalents at beginning of period | 167.3 | 169 |
Cash and cash equivalents at end of period | 220.1 | 153.6 |
Cash paid during the period for: | ||
Interest paid on borrowings | 31.7 | 35.3 |
Income taxes paid | $ 22.8 | $ 24.4 |
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, 2018 | $ 1,848.2 | $ 0.1 | $ 1,687.1 | $ 232.6 | $ (71.6) |
Beginning balance (in shares) at Dec. 31, 2018 | 64.2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock, net of withholdings | 4.7 | 4.7 | |||
Stock-based compensation and vesting of restricted stock, net of withholdings, (in shares) | 0.1 | ||||
Net income (loss) | 64.2 | 64.2 | |||
Dividends declared | (22.3) | (22.3) | |||
Change in fair value of derivative financial instruments, net of tax | (2.5) | (2.5) | |||
Minimum pension adjustment, net of tax | (0.3) | (0.3) | |||
Cumulative foreign currency translation adjustment | (7.6) | (7.6) | |||
Ending balance at Jun. 30, 2019 | 1,884.4 | $ 0.1 | 1,691.8 | 274.5 | (82) |
Ending balance (in shares) at Jun. 30, 2019 | 64.3 | ||||
Beginning balance at Mar. 31, 2019 | 1,872.4 | $ 0.1 | 1,688.5 | 256.7 | (72.9) |
Beginning balance (in shares) at Mar. 31, 2019 | 64.3 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock, net of withholdings | 3.3 | 3.3 | |||
Net income (loss) | 29 | 29 | |||
Dividends declared | (11.2) | (11.2) | |||
Change in fair value of derivative financial instruments, net of tax | (14) | (14) | |||
Cumulative foreign currency translation adjustment | 4.9 | 4.9 | |||
Ending balance at Jun. 30, 2019 | 1,884.4 | $ 0.1 | 1,691.8 | 274.5 | (82) |
Ending balance (in shares) at Jun. 30, 2019 | 64.3 | ||||
Beginning balance at Dec. 31, 2019 | 1,922.3 | $ 0.1 | 1,696.7 | 315.4 | (89.9) |
Beginning balance (in shares) at Dec. 31, 2019 | 64.2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock, net of withholdings | 5.1 | 5.1 | |||
Stock-based compensation and vesting of restricted stock, net of withholdings, (in shares) | 0.4 | ||||
Net income (loss) | (95) | (95) | |||
Dividends declared | (13.7) | (13.7) | |||
Change in fair value of derivative financial instruments, net of tax | 19.3 | 19.3 | |||
Non-cash amortization of interest rate swap expense, net of tax | 1.7 | 1.7 | |||
Minimum pension adjustment, net of tax | (0.1) | (0.1) | |||
Cumulative foreign currency translation adjustment | (31.1) | (31.1) | |||
Ending balance at Jun. 30, 2020 | 1,808.5 | $ 0.1 | 1,701.8 | 206.7 | (100.1) |
Ending balance (in shares) at Jun. 30, 2020 | 64.6 | ||||
Beginning balance at Mar. 31, 2020 | 1,757.1 | $ 0.1 | 1,698.1 | 187.7 | (128.8) |
Beginning balance (in shares) at Mar. 31, 2020 | 64.6 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock, net of withholdings | 3.7 | 3.7 | |||
Net income (loss) | 21.7 | 21.7 | |||
Dividends declared | (2.7) | (2.7) | |||
Change in fair value of derivative financial instruments, net of tax | (0.2) | (0.2) | |||
Non-cash amortization of interest rate swap expense, net of tax | 1.7 | 1.7 | |||
Cumulative foreign currency translation adjustment | 27.2 | 27.2 | |||
Ending balance at Jun. 30, 2020 | $ 1,808.5 | $ 0.1 | $ 1,701.8 | $ 206.7 | $ (100.1) |
Ending balance (in shares) at Jun. 30, 2020 | 64.6 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash dividend declared | $ 0.04 | $ 0.17 | $ 0.21 | $ 0.34 |
Retained Earnings [Member] | ||||
Cash dividend declared | $ 0.04 | $ 0.17 | $ 0.21 | $ 0.34 |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2020 | |
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 and motion control products. The Company brings together strong brands with production facilities in seventeen countries. Altra’s leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Jacobs Vehicle Systems, Kilian Manufacturing, Kollmorgen, Lamiflex Couplings, Marland Clutch, Matrix, 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 | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 27, 2020 (the “2019 Annual Report on Form 10-K”). 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, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Standards | 3. Recent Accounting Standards Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments As a result of the adoption of ASU 2016-13, the Company has updated its significant accounting policy related to trade account receivables and allowances for credit losses as of March 31, 2020 from what was previously disclosed in our audited financial statements for the year ended December 31, 2019 as follows: All trade account receivables are reported net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our trade account receivables over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. We regularly perform detailed reviews of our pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement The Company adopted the standard on January 1, 2020. The adoption of the standard did not have a material impact on our consolidated financial statements. 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 to the Company. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 4. 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 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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net Sales: Power Transmission Technologies $ 196.3 $ 234.9 $ 413.0 $ 469.8 Automation & Specialty 205.8 233.3 424.4 482.4 Inter-segment eliminations (1.3 ) (1.7 ) (2.4 ) (2.9 ) Net sales $ 400.8 $ 466.5 $ 835.0 $ 949.3 Net sales by geographic region based on point of shipment origin are as follows: Net Sales Quarter Ended Year to Date Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 North America (primarily U.S.) $ 205.8 $ 269.8 $ 451.1 $ 542.8 Europe excluding Germany 71.3 79.9 146.1 161.7 Germany 44.1 56.8 96.6 119.0 Asia and other 79.6 60.0 141.2 125.8 Total $ 400.8 $ 466.5 $ 835.0 $ 949.3 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. A contract asset is created when the Company satisfies a performance obligation by transferring a promised good to the customer. Contract assets may represent conditional or unconditional rights to consideration. A right is conditional, and recorded as a contract asset, if , for example , the Company must first satisfy another performance obligation in the contract before it is entitled to payment from the customer. Contract assets are transferred to accounts receivable once the right becomes unconditional. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. If the Company receives a customer payment prior to satisfying a performance obligation or in excess of estimates of what the Company expects to be entitled to, the payment is recorded as a contract liability. Contracts with payment in arrears are recognized as receivables. The opening and closing balances of the Company’s contract liability and accounts receivable as of the year to date period ended June 30, 2020 are as follows: Deferred Revenue (Current) Accounts Receivable Beginning - January 1, 2020 $ 8.4 $ 243.2 Closing - June 30, 2020 12.5 230.6 Increase/(Decrease) $ 4.1 $ (12.6 ) Deferred Revenue (Current) Accounts Receivable Beginning - January 1, 2019 $ 7.4 $ 259.8 Closing - June 30, 2019 8.1 269.6 Increase/(Decrease) $ 0.7 $ 9.8 In the six-month period ended June 30, 2020, substantially all outstanding revenue has been recognized related to contract liabilities outstanding at January 1, 2020. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. 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 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 the Company or the financial counterparty to perform. For interest rate and cross currency swaps, the significant inputs to these models are interest rate curves for discounting future cash flows and are adjusted for credit risk. For forward foreign currency contracts, 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. See additional discussion of the Company’s use of financial instruments including cross-currency swaps and interest rate swaps included in Note 15. The carrying values of financial instruments, including cash equivalents, accounts payable, and other accrued liabilities are carried at cost, which approximates fair value. Debt under the Altra Credit Agreement (as defined herein) is comprised of the Altra Term Loan Facility and the Altra Revolving Credit Facility (both as defined herein). The carrying amount of the Altra Term Loan Facility was $1,160.0 million and the estimated fair value of the Altra Term Loan Facility was $1,113.6 million at June 30, 2020. There is currently no debt under the Altra Revolving Credit Facility. Further, the Altra Credit Agreement was negotiated in October 2018 and there have not been any significant changes in our credit rating. The carrying amount of the Notes (as defined herein) was $400 million and the estimated fair value of the Notes was $416.0 million at June 30, 2020. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | 6. 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: Gains and (Losses) on Cash Flow Hedges Non-cash amortization of interest rate swap expense Defined Benefit Pension Plans Cumulative Foreign Currency Translation Adjustment Total Accumulated Other Comprehensive (Loss) by Component, January 1, 2020 $ (3.0 ) — $ (1.5 ) $ (85.4 ) $ (89.9 ) Net current-period Other Comprehensive Income (Loss) 19.3 1.7 (0.1 ) (31.1 ) (10.2 ) Accumulated Other Comprehensive Income (Loss) by component, June 30, 2020 $ 16.3 $ 1.7 $ (1.6 ) $ (116.5 ) $ (100.1 ) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Plans Cumulative Foreign Currency Translation Adjustment Total Accumulated Other Comprehensive (Loss) by Component, January 1, 2019 $ (12.9 ) $ (0.2 ) $ (58.5 ) $ (71.6 ) Net current-period Other Comprehensive Income (Loss) (2.5 ) (0.3 ) (7.6 ) (10.4 ) Accumulated Other Comprehensive (Loss) by Component, June 30, 2019 $ (15.4 ) $ (0.5 ) $ (66.1 ) $ (82.0 ) |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 7. 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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net income/(loss) $ 21.7 $ 29.0 $ (95.0 ) $ 64.2 Shares used in net income per common share - basic 64.6 64.3 64.5 64.3 Incremental shares of unvested restricted common stock 0.1 0.2 — 0.2 Shares used in net income per common share - diluted 64.7 64.5 64.5 64.5 Shares excluded as their inclusion would be anti-dilutive — — 0.1 — Earnings/(Loss) per share: Basic net income $ 0.34 $ 0.45 $ (1.47 ) $ 1.00 Diluted net income $ 0.34 $ 0.45 $ (1.47 ) $ 1.00 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. Inventories Inventories at June 30, 2020 and December 31, 2019 consisted of the following: June 30, 2020 December 31, 2019 Raw materials $ 105.3 $ 104.2 Work in process 22.7 22.4 Finished goods 95.1 95.9 $ 223.1 $ 222.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 9. Goodwill and Intangible Assets The Company conducts an annual impairment review of goodwill and indefinite-lived intangible assets in October of each year, unless events occur which trigger the need for an interim impairment review. The 2019 annual goodwill impairment review indicated that the JVS 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. During the first quarter of 2020, the Company considered the economic impact of the COVID-19 pandemic to be a triggering event for the JVS business unit and, as a result, the Company performed an interim impairment review. As a result of both the COVID-19 related economic downturn and its impact on JVS’s anticipated financial results, the Company concluded that it was more likely than not that the JVS reporting unit’s carrying value exceeded its fair value and performed an interim impairment review for both JVS’s goodwill and tradename intangible asset. As a result of the interim impairment testing performed on March 31, 2020, the Company recorded non-cash impairment charges of $8.4 million and $139.1 million for indefinite-lived intangible assets and goodwill, respectively. The Company estimated the fair value of the JVS reporting unit using both the discounted cash flow model and the market approach. The Company estimated the value of JVS’s indefinite-lived tradename intangible asset using a discounted cash flow model. The determination of the fair value using the discounted cash flow model requires management to make significant estimates and assumptions related to forecasts of future revenues, profit margins, and discount rates. The determination of the fair value using the market approach requires management to make significant assumptions related to earnings before interest, taxes, depreciation, and amortization (“EBITDA”) multiples. The Company estimates future cash flows based upon historical results and current market projections, discounted at a market comparable rate. Key assumptions developed by management and used in the interim quantitative analysis included the following: • Near-term revenue declines in 2020; • Adjusted profit margins over the projection period, due to revenue adjustments and maintained investment in the business; and • Market-based discount rates. • Reduced EBITDA multiple, due to current market conditions. During the second quarter of 2020, the Company again considered the economic impact of the COVID-19 pandemic on the reporting units and determined there was no triggering event to further evaluate for potential impairment. For all reporting units, the Company concluded that it was more likely than not that their fair value continued to exceed their carrying value as of June 30, 2020. However, depending on its duration and the severity of its economic impact, the COVID-19 pandemic may trigger additional interim impairment reviews in future periods. Changes in goodwill from January 1, 2020 through June 30, 2020 were as follows: Power Transmission Technologies Automation & Specialty Total Net goodwill balance January 1, 2020 $ 410.1 $ 1,284.8 $ 1,694.9 Goodwill impairment charge — (139.1 ) (139.1 ) Impact of changes in foreign currency (1.0 ) (11.8 ) (12.8 ) Net goodwill balance June 30, 2020 $ 409.1 $ 1,133.9 $ 1,543.0 Other intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following: June 30, 2020 December 31, 2019 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks (1) $ 249.8 $ — $ 249.8 $ 260.0 $ — $ 260.0 In-process research and development 16.0 — 16.0 16.0 — 16.0 Intangible assets subject to amortization: Customer relationships 1,179.8 161.2 1,018.6 1,187.7 137.8 1,049.9 Product technology and patents 210.1 44.1 166.0 210.0 33.5 176.5 Total intangible assets $ 1,655.7 $ 205.3 $ 1,450.4 $ 1,673.7 $ 171.3 $ 1,502.4 (1) The change in Cost of Tradenames and trademarks is a result of the $8.4 million impairment charge in the quarter-end March 31, 2020 related to the JVS reporting unit. The Company recorded $17.3 million and $17.6 million of amortization expense in the quarters ended June 30, 2020 and 2019, respectively; and, recorded $34.8 million and $35.4 million of amortization expense in the year to date periods ended June 30, 2020 and 2019, respectively. The estimated amortization expense for intangible assets is approximately $35.9 million for the remainder of 2020, $70.7 million in each of the next four years and then $865.9 million thereafter. |
Warranty Costs
Warranty Costs | 6 Months Ended |
Jun. 30, 2020 | |
Guarantees [Abstract] | |
Warranty Costs | 10. 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 quarters ended June 30, 2020 and 2019 are as follows: June 30, 2020 June 30, 2019 Balance at beginning of period $ 10.0 $ 9.4 Accrued current period warranty expense 2.0 2.0 Payments and adjustments (2.8 ) (1.2 ) Balance at end of period $ 9.2 $ 10.2 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt Outstanding debt obligations at June 30, 2020 and December 31, 2019 were as follows. June 30, 2020 December 31, 2019 Debt: Term loan $ 1,160.0 $ 1,190.0 Revolving Credit Facility — — Notes 400.0 400.0 Mortgages and other 12.6 13.5 Finance leases 0.3 0.5 Total gross debt 1,572.9 1,604.0 Less: debt discount and deferred financing costs (20.3 ) (22.2 ) Total debt, net of debt discount and deferred financing costs 1,552.6 1,581.8 Less: current portion of long-term debt (17.0 ) (18.0 ) Total long-term debt, net of unaccreted discount $ 1,535.6 $ 1,563.8 2018 Credit Agreement and Notes On October 1, 2018 (the “A&S Closing Date”), upon the closing of the combination (the “Fortive Transaction”) of Altra with four operating companies from Fortive Corporation’s (“Fortive”) Automation & Specialty platform (the “A&S Business”), 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 the first interest payment date on the Notes was 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. On the A&S Closing Date, the Company entered into a new Credit Agreement (the “Altra Credit Agreement”). The Altra Credit Agreement provides for a seven-year five-year The proceeds of the Altra Term Loan Facility were used to (i) consummate Fortive’s transfer of certain non-U.S assets, liabilities and entities constituting a portion of the A&S Business to certain subsidiaries of Altra, and the Altra subsidiaries’ assumption of substantially all of the liabilities associated with the transferred assets (the “Direct Sales”), (ii) repay in full and extinguish all outstanding indebtedness for borrowed money under the 2015 Credit Agreement (as defined herein) and (iii) pay certain fees, costs, and expenses in connection with the consummation of the Fortive Transaction. The proceeds of the Altra Revolving Credit Facility will be used for working capital and general corporate purposes. The Altra Credit Facilities are guaranteed on a senior secured basis by the Company and certain of its domestic subsidiaries, subject to certain customary exceptions. Borrowings under the Altra Term Loan Facility will bear interest at a per annum rate equal to a “Eurocurrency Rate” plus 2.00%, in the case of Eurocurrency Rate borrowings, or equal to a “Base Rate” plus 1.00%, in the case of Base Rate borrowings. Borrowings under the Altra Revolving Credit Facility will initially bear interest at a per annum rate equal to a Eurocurrency Rate plus 2.00%, in the case of Eurocurrency Rate borrowings, or equal to a Base Rate plus 1.00%, in the case of Base Rate borrowings, and thereafter will bear interest at a per annum rate equal to a Eurocurrency Rate or Base Rate, as applicable, plus an interest rate spread determined by reference to a pricing grid based on the Company’s senior secured net leverage ratio. In addition, the Company will be required to pay fees that will fluctuate between 0.250% per annum to 0.375% per annum on the unused amount of the Altra Revolving Credit Facility, based upon the Company’s senior secured net leverage ratio. The interest rate on the Term Loan Facility was 2.174% at June 30, 2020. The Altra Credit Agreement contains usual and customary representations and warranties, and usual and customary affirmative and negative covenants, including limitations on liens, investments, restricted payments, additional indebtedness and asset sales and mergers. In addition, the Altra Credit Agreement requires that Altra maintain a specified maximum senior secured leverage ratio and a specified minimum interest coverage ratio. The obligations of the borrowers of the Altra Credit Facilities under the Altra Credit Agreement may be accelerated upon customary events of default, including non-payment of principal, interest, fees and other amounts, inaccuracy of representation 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 $29.9 million in issuance costs, which are amortized over the term of the debt as an adjustment to the effective interest rate on the outstanding borrowings. The Company provided notice to the administrative agent of the Altra Credit Agreement on March 9, 2020 and March 16, 2020 to draw down $50 million and $50 million, respectively, under the Altra Revolving Credit Facility. At that time, the Company had increased its borrowings under the Altra Revolving Credit Facility as a precautionary action in order to increase its cash position and enhance its financial flexibility during this period of uncertainty in the global markets resulting from COVID-19. On April 14, 2020, the Company provided notice to the administrative agent of the Altra Credit Agreement to repay $50 million outstanding under the Altra Revolving Credit Facility. On April 27 2020 and May, 27, 2020 the Company provided notice to the administrative agent to repay $15 million and $35 million, respectively, which were outstanding under the Altra Revolving Credit Facility. As of the period ended June 30, 2020, all outstanding borrowings under the Altra Revolving Credit Facility have been repaid. As of June 30, 2020, the Company had $1,160.0 million outstanding on the Altra Credit Agreement. As of June 30, 2020 and December 31, 2019, the Company had $5.2 million and $4.4 million in letters of credit outstanding, respectively. The Company had $294.8 million available to borrow under the Altra Credit Facilities at June 30, 2020. 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 1.79% 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 $0.3 million and $0.5 million at June 30, 2020 and December 31, 2019, respectively. Finance lease right of use assets are included in property, plant and equipment with the related amortization recorded as depreciation expense. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Common Stock Effective October 1, 2018, the Company amended its Articles of Incorporation to increase the number of authorized shares of Altra common stock from 90.0 million shares to 120.0 million shares. As of June 30, 2020 and December 31, 2019, there were 64,575,115 and 64,222,603 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, 2020 or December 31, 2019. 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 (“Awards”) was 4.5 million as of June 30, 2020. The restricted shares 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 shares 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 fair value of the shares repurchased are measured based on the share price on the date of grant. 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, 2020 and 2019 was $3.8 million and $3.5 million, respectively. Compensation expense recorded (in selling, general and administrative expense) during the year to date period ended June 30, 2020 and 2019 was $7.1 million and $7.0 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. The following tables set forth the activity of the Company’s restricted stock grants and stock options to date: Shares Weighted- average fair value Shares unvested January 1, 2020 786.3 $ 35.69 Shares granted 325.6 34.58 Shares for which restrictions lapsed (175.1 ) 38.06 Shares unvested June 30, 2020 936.8 $ 34.93 Shares Weighted- average fair value Options unvested January 1, 2020 271.7 $ 30.65 Options granted 214.5 34.78 Options exercised — — Options outstanding June 30, 2020 486.2 $ 32.47 Quantity ending exercisable balance 66.4 $ 30.65 Total remaining unrecognized compensation cost is approximately $25.6 million as of June 30, 2020, and will be recognized over a weighted average remaining period of three years. The intrinsic value of these awards, as of June 30, 2020, was $27.6 million. Grant date fair value is based on the quoted price of the stock on the date of grant. |
Restructuring, Asset Impairment
Restructuring, Asset Impairment, and Transition Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Asset Impairment, and Transition Expenses | 13. Restructuring, Asset Impairment, and Transition Expenses 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 purchase 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 expenses for the quarter and year to date period ended June 30, 2020 were approximately $0.3 million, and $0.5 million, respectively, and were composed of severance and other restructuring costs. 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 approximately $10 - $15 million in restructuring expenses under the 2019 Altra Plan over the next three years, primarily related headcount reductions and plant consolidations. The expenses for the quarter and year to date period ended June 30, 2020 were $1.2 million and $2.6 million, respectively, and were composed of severance and consolidation costs. The following is a reconciliation of the accrued restructuring costs between January 1, 2020 and June 30, 2020. 2017 Altra Plan 2019 Altra Plan Total All Plans Balance at January 1, 2020 $ 1.5 $ 2.6 $ 4.1 Restructuring expense incurred 0.2 1.4 1.6 Cash payments (0.4 ) (1.4 ) (1.8 ) Balance at March 31, 2020 1.3 2.6 3.9 Restructuring expense incurred 0.3 1.2 1.5 Cash payments (0.6 ) (1.1 ) (1.7 ) Balance at June 30, 2020 1.0 2.7 3.7 The following is a reconcilation of the accrued restructuring costs between January 1, 2019 and June 30, 2019 . 2017 Altra Plan 2019 Altra Plan Total All Plans Balance at January 1, 2019 $ 2.0 $ — $ 2.0 Restructuring expense incurred 1.0 1.3 2.3 Cash payments (1.5 ) (0.5 ) (2.0 ) Balance at March 31, 2019 1.5 0.8 2.3 Restructuring expense incurred 1.8 1.4 3.2 Cash payments (2.0 ) (0.7 ) (2.7 ) Balance at June 30, 2019 1.3 1.5 2.8 The following is a reconciliation of restructuring expense by segment for the year to date period ended June 30, 2020. 2017 Altra Plan 2019 Altra Plan Total All Plans Power Transmission Technologies $ 0.5 $ 0.6 $ 1.1 Automation & Specialty — 2.0 2.0 Total restructuring expense at June 30, 2020 $ 0.5 $ 2.6 $ 3.1 The following is a reconciliation of restructuring expense by segment for the year to date period ended June 30, 2019 2017 Altra Plan 2019 Altra Plan Total All Plans Power Transmission Technologies $ 2.8 $ 0.1 $ 2.9 Automation & Specialty — 2.6 2.6 Total restructuring expense at June 30, 2019 $ 2.8 $ 2.7 $ 5.5 The total accrued restructuring reserve as of June 30, 2020, and as of June 30, 2019 relate primarily to severance and consolidation costs under the 2017 Altra Plan and the 2019 Altra Plan and are recorded in accruals and other liabilities on the accompanying unaudited condensed consolidated balance sheet. |
Segments, Concentrations and Ge
Segments, Concentrations and Geographic Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments, Concentrations and Geographic Information | 14. 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 includes the following key product offerings: 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 includes the following key brands: 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. o Jacobs Vehicle Systems (JVS): Provides heavy-duty diesel engine brake systems and valve actuation mechanisms for the commercial vehicle market, including compression release, bleeder and exhaust brakes, including the “Jake Brake” engine braking system. These products are primarily used in heavy duty Class 8 truck applications. Segment financial information and a reconciliation of segment results to unaudited condensed consolidated results are as follows: Quarters Ended Year to Date Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net Sales: Power Transmission Technologies $ 196.3 $ 234.9 $ 413.0 $ 469.8 Automation & Specialty 205.8 233.3 424.4 482.4 Inter-segment eliminations (1.3 ) (1.7 ) (2.4 ) (2.9 ) Net sales $ 400.8 $ 466.5 $ 835.0 $ 949.3 Income/(loss) from operations: Segment earnings: Power Transmission Technologies $ 23.9 $ 31.9 $ 49.5 $ 60.8 Automation & Specialty 26.0 31.8 (92.6 ) 72.4 Corporate expenses (1) 3.7 (3.4 ) 0.3 (4.2 ) Restructuring costs (1.5 ) (3.2 ) (3.1 ) (5.5 ) Income/(loss) from operations $ 52.1 $ 57.1 $ (45.9 ) $ 123.5 Other non-operating expense: Net interest expense 18.8 18.6 36.2 38.4 Other non-operating expense, net 2.5 0.4 1.1 1.5 Total non-operating expense $ 21.3 $ 19.0 $ 37.3 $ 39.9 Income/(loss) before income taxes 30.8 38.1 (83.2 ) 83.6 Provision for income taxes 9.1 9.1 11.8 19.4 Net income/(loss) $ 21.7 $ 29.0 $ (95.0 ) $ 64.2 (1) Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to the Company’s 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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Depreciation and amortization: Power Transmission Technologies $ 8.2 $ 8.3 $ 16.4 $ 16.7 Automation & Specialty 22.9 23.2 46.2 46.2 Corporate 0.9 0.7 1.5 1.4 Total depreciation and amortization $ 32.0 $ 32.2 $ 64.1 $ 64.3 June 30, 2020 June 30, 2019 Total assets: Power Transmission Technologies $ 1,045.7 $ 1,089.2 Automation & Specialty 2,920.1 3,170.3 Corporate 134.9 98.3 Total assets $ 4,100.7 $ 4,357.8 (2) Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, and property, plant and equipment. Net sales to third parties by geographic region are as follows: Net Sales Quarter Ended Year to Date Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 North America (primarily U.S.) $ 205.8 $ 269.8 $ 451.1 $ 542.8 Europe excluding Germany 71.3 79.9 146.1 161.7 Germany 44.1 56.8 96.6 119.0 Asia and other 79.6 60.0 141.2 125.8 Total $ 400.8 $ 466.5 $ 835.0 $ 949.3 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, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 15. 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 interest rate swaps, the significant inputs to these models are interest rate curves for discounting future cash flows that are adjusted for credit risk. For forward foreign currency contracts, 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 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. The agreements originally had a five-year 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 the net investment hedges 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 global economy declined substantially due to the impact of COVID-19. This decline resulted in a significant increase in the value of the U.S. dollar. The appreciation of the U.S. dollar resulted in the Company’s cross currency interest rate swaps being substantially in-the-money. Given the increased cash value of the hedges and the Company’s overall desire to strengthen its cash position, the Company terminated the cross-currency interest rate swaps during the first quarter of 2020. 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. Through the date of the termination of the cross-currency interest rate swaps, the Company recorded a gain in AOCIL of approximately $31.3 million, net of $9.9 million of tax, compared to $19.8 million, net of $3.6 million of tax, during the year to date period ended June 30, 2020, and year to date period ended December 31, 2019, respectively. June 30, 2020 December 31, 2019 Description (in millions Gain/(Loss) Recognized in AOCI Cross currency swap agreements, net of tax $ 31.3 $ 19.8 Interest Rate Swaps I n 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. In December 2018, the Company entered into an interest rate swap agreement 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 Altra Credit Agreement for a notional value of $600 million at 4.8255%. 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 the second quarter of 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. Through the date of the termination of the interest rate swap, the Company recorded a loss in AOCIL of approximately $11.9 million, net of $3.8 million of tax benefit, compared to $9.8 million, net of $1.7 million of tax benefit, during the year to date period ended June 30, 2020, and year to date period ended December 31, 2019, respectively. The loss on the interest rate swap reported in AOCIL will be reclassified to earnings in future periods when the hedged transaction affects earnings or if it is determined that it is probable that the hedged transaction will not occur. The Company reclassified approximately $3.2 million and $0.5 million of AOCIL into interest expense for the quarters ended June 30, 2020 and June 30, 2019, respectively. The Company reclassified $4.8 million and $1.0 million of AOCIL into interest expense for the year to date periods ended June 30, 2020 and June 30, 2019, respectively. A pproximately $2.2 million of the AOCIL reclassified to interest expense for the quarter and year to date period ended June 30, 2020 represents non-cash amortization due to the termination of the interest rate swap. The following table summarizes the location and fair value, using Level 2 inputs (see Note 6 for a description of the fair value levels), of the Company's derivatives designated and not designated as hedging instruments in the unaudited condensed consolidated balance sheets (in millions). Balance Sheet Location June 30, 2020 December 31, 2019 Designated as hedging instruments: Cross currency swap agreements Other long-term (assets) $ — $ (15.0 ) Interest rate swap agreement Other long-term (assets) — (0.0 ) Interest rate swap agreement Other long-term liabilities — 19.0 $ — $ 4.0 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. 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, 2020 or December 31, 2019. 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, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On July 22, 2020 the Company declared a dividend of $0.04 per share for the quarter ended September 30, 2020, payable on October 2, 2020 to stockholders of record as of September 18, 2020. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 27, 2020 (the “2019 Annual Report on Form 10-K”). 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 June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments As a result of the adoption of ASU 2016-13, the Company has updated its significant accounting policy related to trade account receivables and allowances for credit losses as of March 31, 2020 from what was previously disclosed in our audited financial statements for the year ended December 31, 2019 as follows: All trade account receivables are reported net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our trade account receivables over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. We regularly perform detailed reviews of our pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement The Company adopted the standard on January 1, 2020. The adoption of the standard did not have a material impact on our consolidated financial statements. 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 to the Company. |
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 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 the Company or the financial counterparty to perform. For interest rate and cross currency swaps, the significant inputs to these models are interest rate curves for discounting future cash flows and are adjusted for credit risk. For forward foreign currency contracts, 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. See additional discussion of the Company’s use of financial instruments including cross-currency swaps and interest rate swaps included in Note 15. The carrying values of financial instruments, including cash equivalents, accounts payable, and other accrued liabilities are carried at cost, which approximates fair value. Debt under the Altra Credit Agreement (as defined herein) is comprised of the Altra Term Loan Facility and the Altra Revolving Credit Facility (both as defined herein). The carrying amount of the Altra Term Loan Facility was $1,160.0 million and the estimated fair value of the Altra Term Loan Facility was $1,113.6 million at June 30, 2020. There is currently no debt under the Altra Revolving Credit Facility. Further, the Altra Credit Agreement was negotiated in October 2018 and there have not been any significant changes in our credit rating. The carrying amount of the Notes (as defined herein) was $400 million and the estimated fair value of the Notes was $416.0 million at June 30, 2020. |
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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net income/(loss) $ 21.7 $ 29.0 $ (95.0 ) $ 64.2 Shares used in net income per common share - basic 64.6 64.3 64.5 64.3 Incremental shares of unvested restricted common stock 0.1 0.2 — 0.2 Shares used in net income per common share - diluted 64.7 64.5 64.5 64.5 Shares excluded as their inclusion would be anti-dilutive — — 0.1 — Earnings/(Loss) per share: Basic net income $ 0.34 $ 0.45 $ (1.47 ) $ 1.00 Diluted net income $ 0.34 $ 0.45 $ (1.47 ) $ 1.00 |
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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net Sales: Power Transmission Technologies $ 196.3 $ 234.9 $ 413.0 $ 469.8 Automation & Specialty 205.8 233.3 424.4 482.4 Inter-segment eliminations (1.3 ) (1.7 ) (2.4 ) (2.9 ) Net sales $ 400.8 $ 466.5 $ 835.0 $ 949.3 Net sales by geographic region based on point of shipment origin are as follows: Net Sales Quarter Ended Year to Date Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 North America (primarily U.S.) $ 205.8 $ 269.8 $ 451.1 $ 542.8 Europe excluding Germany 71.3 79.9 146.1 161.7 Germany 44.1 56.8 96.6 119.0 Asia and other 79.6 60.0 141.2 125.8 Total $ 400.8 $ 466.5 $ 835.0 $ 949.3 |
Summary of Opening and Closing Balances of Contract Liability and Accounts Receivable | The opening and closing balances of the Company’s contract liability and accounts receivable as of the year to date period ended June 30, 2020 are as follows: Deferred Revenue (Current) Accounts Receivable Beginning - January 1, 2020 $ 8.4 $ 243.2 Closing - June 30, 2020 12.5 230.6 Increase/(Decrease) $ 4.1 $ (12.6 ) Deferred Revenue (Current) Accounts Receivable Beginning - January 1, 2019 $ 7.4 $ 259.8 Closing - June 30, 2019 8.1 269.6 Increase/(Decrease) $ 0.7 $ 9.8 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income/(Loss) by Component (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: Gains and (Losses) on Cash Flow Hedges Non-cash amortization of interest rate swap expense Defined Benefit Pension Plans Cumulative Foreign Currency Translation Adjustment Total Accumulated Other Comprehensive (Loss) by Component, January 1, 2020 $ (3.0 ) — $ (1.5 ) $ (85.4 ) $ (89.9 ) Net current-period Other Comprehensive Income (Loss) 19.3 1.7 (0.1 ) (31.1 ) (10.2 ) Accumulated Other Comprehensive Income (Loss) by component, June 30, 2020 $ 16.3 $ 1.7 $ (1.6 ) $ (116.5 ) $ (100.1 ) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Plans Cumulative Foreign Currency Translation Adjustment Total Accumulated Other Comprehensive (Loss) by Component, January 1, 2019 $ (12.9 ) $ (0.2 ) $ (58.5 ) $ (71.6 ) Net current-period Other Comprehensive Income (Loss) (2.5 ) (0.3 ) (7.6 ) (10.4 ) Accumulated Other Comprehensive (Loss) by Component, June 30, 2019 $ (15.4 ) $ (0.5 ) $ (66.1 ) $ (82.0 ) |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net income/(loss) $ 21.7 $ 29.0 $ (95.0 ) $ 64.2 Shares used in net income per common share - basic 64.6 64.3 64.5 64.3 Incremental shares of unvested restricted common stock 0.1 0.2 — 0.2 Shares used in net income per common share - diluted 64.7 64.5 64.5 64.5 Shares excluded as their inclusion would be anti-dilutive — — 0.1 — Earnings/(Loss) per share: Basic net income $ 0.34 $ 0.45 $ (1.47 ) $ 1.00 Diluted net income $ 0.34 $ 0.45 $ (1.47 ) $ 1.00 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories at June 30, 2020 and December 31, 2019 consisted of the following: June 30, 2020 December 31, 2019 Raw materials $ 105.3 $ 104.2 Work in process 22.7 22.4 Finished goods 95.1 95.9 $ 223.1 $ 222.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill from January 1, 2020 through June 30, 2020 were as follows: Power Transmission Technologies Automation & Specialty Total Net goodwill balance January 1, 2020 $ 410.1 $ 1,284.8 $ 1,694.9 Goodwill impairment charge — (139.1 ) (139.1 ) Impact of changes in foreign currency (1.0 ) (11.8 ) (12.8 ) Net goodwill balance June 30, 2020 $ 409.1 $ 1,133.9 $ 1,543.0 |
Other Intangible Assets | Other intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following: June 30, 2020 December 31, 2019 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks (1) $ 249.8 $ — $ 249.8 $ 260.0 $ — $ 260.0 In-process research and development 16.0 — 16.0 16.0 — 16.0 Intangible assets subject to amortization: Customer relationships 1,179.8 161.2 1,018.6 1,187.7 137.8 1,049.9 Product technology and patents 210.1 44.1 166.0 210.0 33.5 176.5 Total intangible assets $ 1,655.7 $ 205.3 $ 1,450.4 $ 1,673.7 $ 171.3 $ 1,502.4 (1) The change in Cost of Tradenames and trademarks is a result of the $8.4 million impairment charge in the quarter-end March 31, 2020 related to the JVS reporting unit. |
Warranty Costs (Tables)
Warranty Costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 quarters ended June 30, 2020 and 2019 are as follows: June 30, 2020 June 30, 2019 Balance at beginning of period $ 10.0 $ 9.4 Accrued current period warranty expense 2.0 2.0 Payments and adjustments (2.8 ) (1.2 ) Balance at end of period $ 9.2 $ 10.2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Outstanding Debt Obligations | Outstanding debt obligations at June 30, 2020 and December 31, 2019 were as follows. June 30, 2020 December 31, 2019 Debt: Term loan $ 1,160.0 $ 1,190.0 Revolving Credit Facility — — Notes 400.0 400.0 Mortgages and other 12.6 13.5 Finance leases 0.3 0.5 Total gross debt 1,572.9 1,604.0 Less: debt discount and deferred financing costs (20.3 ) (22.2 ) Total debt, net of debt discount and deferred financing costs 1,552.6 1,581.8 Less: current portion of long-term debt (17.0 ) (18.0 ) Total long-term debt, net of unaccreted discount $ 1,535.6 $ 1,563.8 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders Equity Note [Abstract] | |
Company's Restricted Stock Grants and Stock Options | The following tables set forth the activity of the Company’s restricted stock grants and stock options to date: Shares Weighted- average fair value Shares unvested January 1, 2020 786.3 $ 35.69 Shares granted 325.6 34.58 Shares for which restrictions lapsed (175.1 ) 38.06 Shares unvested June 30, 2020 936.8 $ 34.93 Shares Weighted- average fair value Options unvested January 1, 2020 271.7 $ 30.65 Options granted 214.5 34.78 Options exercised — — Options outstanding June 30, 2020 486.2 $ 32.47 Quantity ending exercisable balance 66.4 $ 30.65 |
Restructuring, Asset Impairme_2
Restructuring, Asset Impairment, and Transition Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Reconciliation of Accrued Restructuring Costs | The following is a reconciliation of the accrued restructuring costs between January 1, 2020 and June 30, 2020. 2017 Altra Plan 2019 Altra Plan Total All Plans Balance at January 1, 2020 $ 1.5 $ 2.6 $ 4.1 Restructuring expense incurred 0.2 1.4 1.6 Cash payments (0.4 ) (1.4 ) (1.8 ) Balance at March 31, 2020 1.3 2.6 3.9 Restructuring expense incurred 0.3 1.2 1.5 Cash payments (0.6 ) (1.1 ) (1.7 ) Balance at June 30, 2020 1.0 2.7 3.7 The following is a reconcilation of the accrued restructuring costs between January 1, 2019 and June 30, 2019 . 2017 Altra Plan 2019 Altra Plan Total All Plans Balance at January 1, 2019 $ 2.0 $ — $ 2.0 Restructuring expense incurred 1.0 1.3 2.3 Cash payments (1.5 ) (0.5 ) (2.0 ) Balance at March 31, 2019 1.5 0.8 2.3 Restructuring expense incurred 1.8 1.4 3.2 Cash payments (2.0 ) (0.7 ) (2.7 ) Balance at June 30, 2019 1.3 1.5 2.8 |
Reconciliation of Restructuring Expense by Segment | The following is a reconciliation of restructuring expense by segment for the year to date period ended June 30, 2020. 2017 Altra Plan 2019 Altra Plan Total All Plans Power Transmission Technologies $ 0.5 $ 0.6 $ 1.1 Automation & Specialty — 2.0 2.0 Total restructuring expense at June 30, 2020 $ 0.5 $ 2.6 $ 3.1 The following is a reconciliation of restructuring expense by segment for the year to date period ended June 30, 2019 2017 Altra Plan 2019 Altra Plan Total All Plans Power Transmission Technologies $ 2.8 $ 0.1 $ 2.9 Automation & Specialty — 2.6 2.6 Total restructuring expense at June 30, 2019 $ 2.8 $ 2.7 $ 5.5 |
Segments, Concentrations and _2
Segments, Concentrations and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: Quarters Ended Year to Date Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net Sales: Power Transmission Technologies $ 196.3 $ 234.9 $ 413.0 $ 469.8 Automation & Specialty 205.8 233.3 424.4 482.4 Inter-segment eliminations (1.3 ) (1.7 ) (2.4 ) (2.9 ) Net sales $ 400.8 $ 466.5 $ 835.0 $ 949.3 Income/(loss) from operations: Segment earnings: Power Transmission Technologies $ 23.9 $ 31.9 $ 49.5 $ 60.8 Automation & Specialty 26.0 31.8 (92.6 ) 72.4 Corporate expenses (1) 3.7 (3.4 ) 0.3 (4.2 ) Restructuring costs (1.5 ) (3.2 ) (3.1 ) (5.5 ) Income/(loss) from operations $ 52.1 $ 57.1 $ (45.9 ) $ 123.5 Other non-operating expense: Net interest expense 18.8 18.6 36.2 38.4 Other non-operating expense, net 2.5 0.4 1.1 1.5 Total non-operating expense $ 21.3 $ 19.0 $ 37.3 $ 39.9 Income/(loss) before income taxes 30.8 38.1 (83.2 ) 83.6 Provision for income taxes 9.1 9.1 11.8 19.4 Net income/(loss) $ 21.7 $ 29.0 $ (95.0 ) $ 64.2 (1) Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to the Company’s 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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Depreciation and amortization: Power Transmission Technologies $ 8.2 $ 8.3 $ 16.4 $ 16.7 Automation & Specialty 22.9 23.2 46.2 46.2 Corporate 0.9 0.7 1.5 1.4 Total depreciation and amortization $ 32.0 $ 32.2 $ 64.1 $ 64.3 June 30, 2020 June 30, 2019 Total assets: Power Transmission Technologies $ 1,045.7 $ 1,089.2 Automation & Specialty 2,920.1 3,170.3 Corporate 134.9 98.3 Total assets $ 4,100.7 $ 4,357.8 (2) Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, and property, plant and equipment. |
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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 North America (primarily U.S.) $ 205.8 $ 269.8 $ 451.1 $ 542.8 Europe excluding Germany 71.3 79.9 146.1 161.7 Germany 44.1 56.8 96.6 119.0 Asia and other 79.6 60.0 141.2 125.8 Total $ 400.8 $ 466.5 $ 835.0 $ 949.3 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Impact of Cross-Currency Swaps to AOCIL and Consolidated Statements of Operations | June 30, 2020 December 31, 2019 Description (in millions Gain/(Loss) Recognized in AOCI Cross currency swap agreements, net of tax $ 31.3 $ 19.8 |
Summary of Fair Value Level 2 Inputs of Company's Derivatives | The following table summarizes the location and fair value, using Level 2 inputs (see Note 6 for a description of the fair value levels), of the Company's derivatives designated and not designated as hedging instruments in the unaudited condensed consolidated balance sheets (in millions). Balance Sheet Location June 30, 2020 December 31, 2019 Designated as hedging instruments: Cross currency swap agreements Other long-term (assets) $ — $ (15.0 ) Interest rate swap agreement Other long-term (assets) — (0.0 ) Interest rate swap agreement Other long-term liabilities — 19.0 $ — $ 4.0 |
Organization and Nature of Op_2
Organization and Nature of Operations - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020country | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of countries in which the company has production facilities | 17 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020channel | |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 400.8 | $ 466.5 | $ 835 | $ 949.3 |
North America (primarily U.S.) [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 205.8 | 269.8 | 451.1 | 542.8 |
Europe Excluding Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 71.3 | 79.9 | 146.1 | 161.7 |
Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 44.1 | 56.8 | 96.6 | 119 |
Asia And Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 79.6 | 60 | 141.2 | 125.8 |
Operating Segments [Member] | Power Transmission Technologies [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 196.3 | 234.9 | 413 | 469.8 |
Operating Segments [Member] | Automation & Specialty [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 205.8 | 233.3 | 424.4 | 482.4 |
Intersegment Eliminations [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ (1.3) | $ (1.7) | $ (2.4) | $ (2.9) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Opening and Closing Balances of Contract Liability and Accounts Receivable (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Accounts Receivable, Beginning Balance | $ 243.2 | |
Accounts Receivable, Closing Balance | 230.6 | |
ASU 2014-09 [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred Revenue (Current), Beginning Balance | 8.4 | $ 7.4 |
Deferred Revenue (Current), Closing Balance | 12.5 | 8.1 |
Deferred Revenue (Current), Increase/(Decrease) | 4.1 | 0.7 |
Accounts Receivable, Beginning Balance | 243.2 | 259.8 |
Accounts Receivable, Closing Balance | 230.6 | 269.6 |
Accounts Receivable, Increase/(Decrease) | $ (12.6) | $ 9.8 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt | $ 400,000,000 | $ 400,000,000 |
Estimated fair value | 416,000,000 | |
Altra Credit Agreement [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt | 1,160,000,000 | $ 1,190,000,000 |
Outstanding debt under credit facility | 1,160,000,000 | |
Altra Credit Agreement [Member] | Altra Term Loan Facility [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt | 1,160,000,000 | |
Estimated fair value | 1,113,600,000 | |
Altra Credit Agreement [Member] | Revolving Credit Facility [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Outstanding debt under credit facility | $ 0 |
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 | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss) by Component | $ (89.9) | |
Beginning balance | 1,922.3 | $ 1,848.2 |
Net current-period Other Comprehensive Income (Loss) | (10.2) | (10.4) |
Accumulated Other Comprehensive Income (Loss) by Component | (100.1) | |
Ending balance | 1,808.5 | 1,884.4 |
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 | (3) | (12.9) |
Net current-period Other Comprehensive Income (Loss) | 19.3 | (2.5) |
Accumulated Other Comprehensive Income (Loss) by Component | 16.3 | (15.4) |
Non-cash Amortization of Interest Rate Swap Expense [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Net current-period Other Comprehensive Income (Loss) | 1.7 | |
Accumulated Other Comprehensive Income (Loss) by Component | 1.7 | |
Defined Benefit Pension Plans [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss) by Component | (1.5) | (0.2) |
Net current-period Other Comprehensive Income (Loss) | (0.1) | (0.3) |
Accumulated Other Comprehensive Income (Loss) by Component | (1.6) | (0.5) |
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 | (85.4) | (58.5) |
Net current-period Other Comprehensive Income (Loss) | (31.1) | (7.6) |
Accumulated Other Comprehensive Income (Loss) by Component | (116.5) | (66.1) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (89.9) | (71.6) |
Ending balance | $ (100.1) | $ (82) |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 21.7 | $ 29 | $ (95) | $ 64.2 |
Shares used in net income per common share - basic | 64.6 | 64.3 | 64.5 | 64.3 |
Incremental shares of unvested restricted common stock | 0.1 | 0.2 | 0.2 | |
Shares used in net income per common share - diluted | 64.7 | 64.5 | 64.5 | 64.5 |
Shares excluded as their inclusion would be anti-dilutive | 0.1 | |||
Earnings/(Loss) per share: | ||||
Basic net income | $ 0.34 | $ 0.45 | $ (1.47) | $ 1 |
Diluted net income | $ 0.34 | $ 0.45 | $ (1.47) | $ 1 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 105.3 | $ 104.2 |
Work in process | 22.7 | 22.4 |
Finished goods | 95.1 | 95.9 |
Inventories, net | $ 223.1 | $ 222.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Goodwill And Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets and goodwill Impairment charges | $ 139.1 | |||||
Amortization expense | $ 17.3 | $ 17.6 | 34.8 | $ 35.4 | ||
Estimated amortization expense, remainder of 2020 | 35.9 | 35.9 | ||||
Estimated amortization expense, year 2021 | 70.7 | 70.7 | ||||
Estimated amortization expense, year 2022 | 70.7 | 70.7 | ||||
Estimated amortization expense, year 2023 | 70.7 | 70.7 | ||||
Estimated amortization expense, year 2024 | 70.7 | 70.7 | ||||
Estimated amortization expense, thereafter | $ 865.9 | $ 865.9 | ||||
Jacobs Vehicle Systems [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Reporting unit, percentage of fair value in excess of carrying amount | 10.00% | |||||
Non-cash impairment charges | $ 8.4 | |||||
Indefinite-lived intangible assets and goodwill Impairment charges | $ 139.1 | |||||
All Other Reporting Units [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Reporting unit, percentage of fair value in excess of carrying amount | 10.00% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Goodwill (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Net goodwill, Beginning balance | $ 1,694.9 |
Goodwill impairment charge | (139.1) |
Impact of changes in foreign currency | (12.8) |
Net goodwill, ending balance | 1,543 |
Power Transmission Technologies [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, Beginning balance | 410.1 |
Impact of changes in foreign currency | (1) |
Net goodwill, ending balance | 409.1 |
Automation & Specialty [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, Beginning balance | 1,284.8 |
Goodwill impairment charge | (139.1) |
Impact of changes in foreign currency | (11.8) |
Net goodwill, ending balance | $ 1,133.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, accumulated amortization | $ 205.3 | $ 171.3 |
Total intangible assets, cost | 1,655.7 | 1,673.7 |
Total intangible assets, net | 1,450.4 | 1,502.4 |
Customer Relationships [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, cost | 1,179.8 | 1,187.7 |
Total intangible assets, accumulated amortization | 161.2 | 137.8 |
Intangible assets subject to amortization, net | 1,018.6 | 1,049.9 |
Product Technology and Patents [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, cost | 210.1 | 210 |
Total intangible assets, accumulated amortization | 44.1 | 33.5 |
Intangible assets subject to amortization, net | 166 | 176.5 |
Tradenames and Trademarks [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization, cost | 249.8 | 260 |
In-process Research and Development [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization, cost | $ 16 | $ 16 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Other Intangible Assets (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Jacobs Vehicle Systems [Member] | |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | |
Non-cash impairment charges | $ 8.4 |
Warranty Costs - Additional Inf
Warranty Costs - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 | Jun. 30, 2019 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||
Balance at beginning of period | $ 10 | $ 9.4 |
Accrued current period warranty expense | 2 | 2 |
Payments and adjustments | (2.8) | (1.2) |
Balance at end of period | $ 9.2 | $ 10.2 |
Debt - Outstanding Debt Obligat
Debt - Outstanding Debt Obligations (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Finance leases | $ 0.3 | $ 0.5 |
Total gross debt | 1,572.9 | 1,604 |
Less: debt discount and deferred financing costs | (20.3) | (22.2) |
Total debt, net of debt discount and deferred financing costs | 1,552.6 | 1,581.8 |
Less: current portion of long-term debt | (17) | (18) |
Total long-term debt, net of unaccreted discount | 1,535.6 | 1,563.8 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,160 | 1,190 |
Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 400 | 400 |
Mortgages and Other [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 12.6 | $ 13.5 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Oct. 01, 2018USD ($)Company | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | May 27, 2020USD ($) | Apr. 27, 2020USD ($) | Apr. 14, 2020USD ($) | Mar. 16, 2020USD ($) | Mar. 09, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Amortization of deferred financing costs | $ 2,300,000 | $ 2,300,000 | |||||||
Finance lease obligations | $ 300,000 | $ 500,000 | |||||||
Mortgages and Other Agreements [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Description about maturity date of debt instrument | The debt has interest rates that range from 1.79% 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 | 1.79% | ||||||||
Maximum [Member] | Mortgages and Other Agreements [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate percentage | 2.50% | ||||||||
A&S Business [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Business combination, number of operating companies in transaction | Company | 4 | ||||||||
6.125% Senior Notes Due 2026 [Member] | Newco [Member] | A&S Business [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. 1, 2026 | ||||||||
Debt instrument, interest payment terms | Interest on the Notes accrues from October 1, 2018, and the first interest payment date on the Notes was on April 1, 2019. The Notes may be redeemed at the option of the issuer on or after October 1, 2023. | ||||||||
Debt instrument, first interest payment date | Apr. 1, 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. 1, 2023 | ||||||||
Altra Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization of deferred financing costs | $ 29,900,000 | ||||||||
Notice provided to administrate agent of credit facility to draw amount | $ 50,000,000 | $ 50,000,000 | |||||||
Notice provided to administrate agent of credit facility to repay outstanding amount | $ 35,000,000 | $ 15,000,000 | $ 50,000,000 | ||||||
Outstanding debt | 1,160,000,000 | ||||||||
Letters of credit outstanding | $ 5,200,000 | $ 4,400,000 | |||||||
Altra Credit Agreement [Member] | Altra Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 7 years | ||||||||
Maximum amount available | $ 1,340,000,000 | ||||||||
Debt instrument, description of variable rate basis | Borrowings under the Altra Term Loan Facility will bear interest at a per annum rate equal to a “Eurocurrency Rate” plus 2.00%, in the case of Eurocurrency Rate borrowings, or equal to a “Base Rate” plus 1.00%, in the case of Base Rate borrowings. | ||||||||
Credit facility, commitment fee description | the Company will be required to pay fees that will fluctuate between 0.250% per annum to 0.375% per annum on the unused amount of the Altra Revolving Credit Facility, based upon the Company’s senior secured net leverage ratio | ||||||||
Line of credit facility, interest rate during period | 2.174% | ||||||||
Altra Credit Agreement [Member] | Altra Term Loan Facility [Member] | Eurocurrency Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins for loans | 2.00% | ||||||||
Altra Credit Agreement [Member] | Altra Term Loan Facility [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins for loans | 1.00% | ||||||||
Altra Credit Agreement [Member] | Altra Term Loan Facility [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, unused capacity, commitment fee percentage | 0.25% | ||||||||
Altra Credit Agreement [Member] | Altra Term Loan Facility [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, unused capacity, commitment fee percentage | 0.375% | ||||||||
Altra Credit Agreement [Member] | Altra Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Maximum amount available | $ 300,000,000 | ||||||||
Debt instrument, description of variable rate basis | Borrowings under the Altra Revolving Credit Facility will initially bear interest at a per annum rate equal to a Eurocurrency Rate plus 2.00%, in the case of Eurocurrency Rate borrowings, or equal to a Base Rate plus 1.00%, in the case of Base Rate borrowings | ||||||||
Amount available under credit facility | $ 294,800,000 | ||||||||
Altra Credit Agreement [Member] | Altra Revolving Credit Facility [Member] | Eurocurrency Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins for loans | 2.00% | ||||||||
Altra Credit Agreement [Member] | Altra Revolving Credit Facility [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins for loans | 1.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | 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) | 64,575,115 | 64,575,115 | 64,222,603 | ||||
Common stock, shares outstanding (in shares) | 64,575,115 | 64,575,115 | 64,222,603 | ||||
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 | $ 3.8 | $ 3.5 | $ 7.1 | $ 7 | |||
Unrecognized compensation cost | 25.6 | $ 25.6 | |||||
Weighted average remaining period | 3 years | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Intrinsic value of stock awards | $ 27.6 | $ 27.6 | |||||
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) | 4,500,000 | 4,500,000 | |||||
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 - Company'
Stockholders' Equity - Company's Restricted Stock Grants and Stock Options (Detail) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Options unvested, beginning balance | shares | 271,700,000 |
Options granted | shares | 214,500,000 |
Options unvested, ending balance | shares | 486,200,000 |
Quantity ending exercisable balance | shares | 66,400,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, Options unvested, beginning balance | $ / shares | $ 30.65 |
Weighted-average grant date fair value, Options granted | $ / shares | 34.78 |
Weighted-average grant date fair value, Options unvested, ending balance | $ / shares | 32.47 |
Weighted-average grant date fair value, Quantity ending exercisable balance | $ / shares | $ 30.65 |
Restricted Stock [Member] | |
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 | 786,300,000 |
Shares granted | shares | 325,600,000 |
Shares for which restrictions lapsed | shares | (175,100,000) |
Shares unvested, ending balance | shares | 936,800,000 |
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 | $ 35.69 |
Weighted-average grant date fair value, shares granted | $ / shares | 34.58 |
Weighted-average grant date fair value, shares for which restrictions lapsed | $ / shares | 38.06 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 34.93 |
Restructuring, Asset Impairme_3
Restructuring, Asset Impairment, and Transition Expenses - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring costs | $ 1.5 | $ 1.6 | $ 3.2 | $ 2.3 | $ 3.1 | $ 5.5 |
2017 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring costs | 0.3 | 0.2 | 1.8 | 1 | 0.5 | 2.8 |
2019 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring costs | 1.2 | $ 1.4 | $ 1.4 | $ 1.3 | $ 2.6 | $ 2.7 |
Expected period to incur restructuring expense | 3 years | |||||
2019 Altra Plan [Member] | Minimum [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Expected additional restructuring cost remaining | 10 | $ 10 | ||||
2019 Altra Plan [Member] | Maximum [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Expected additional restructuring cost remaining | 15 | 15 | ||||
Employee Severance, Consolidation and Other Restructuring Costs [Member] | 2017 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring costs | 0.3 | 0.5 | ||||
Severance [Member] | 2019 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring costs | 1.2 | 1.2 | ||||
Consolidation costs [Member] | 2019 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring costs | $ 2.6 | $ 2.6 |
Restructuring, Asset Impairme_4
Restructuring, Asset Impairment, and Transition Expenses - Reconciliation of Accrued Restructuring Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | $ 3.9 | $ 4.1 | $ 2.3 | $ 2 | $ 4.1 | $ 2 |
Restructuring expense incurred | 1.5 | 1.6 | 3.2 | 2.3 | 3.1 | 5.5 |
Cash payments | (1.7) | (1.8) | (2.7) | (2) | ||
Ending Balance | 3.7 | 3.9 | 2.8 | 2.3 | 3.7 | 2.8 |
2017 Altra Plan [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 1.3 | 1.5 | 1.5 | 2 | 1.5 | 2 |
Restructuring expense incurred | 0.3 | 0.2 | 1.8 | 1 | 0.5 | 2.8 |
Cash payments | (0.6) | (0.4) | (2) | (1.5) | ||
Ending Balance | 1 | 1.3 | 1.3 | 1.5 | 1 | 1.3 |
2019 Altra Plan [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 2.6 | 2.6 | 0.8 | 2.6 | ||
Restructuring expense incurred | 1.2 | 1.4 | 1.4 | 1.3 | 2.6 | 2.7 |
Cash payments | (1.1) | (1.4) | (0.7) | (0.5) | ||
Ending Balance | $ 2.7 | $ 2.6 | $ 1.5 | $ 0.8 | $ 2.7 | $ 1.5 |
Restructuring, Asset Impairme_5
Restructuring, Asset Impairment, and Transition Expenses - Summary of Reconciliation of Restructuring Expense by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | $ 1.5 | $ 1.6 | $ 3.2 | $ 2.3 | $ 3.1 | $ 5.5 |
2017 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 0.3 | 0.2 | 1.8 | 1 | 0.5 | 2.8 |
2019 Altra Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 1.2 | $ 1.4 | 1.4 | $ 1.3 | 2.6 | 2.7 |
Operating Segments [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | $ 1.5 | $ 3.2 | 3.1 | 5.5 | ||
Operating Segments [Member] | Power Transmission Technologies [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 1.1 | 2.9 | ||||
Operating Segments [Member] | Automation & Specialty [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 2 | 2.6 | ||||
Operating Segments [Member] | 2017 Altra Plan [Member] | Power Transmission Technologies [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 0.5 | 2.8 | ||||
Operating Segments [Member] | 2019 Altra Plan [Member] | Power Transmission Technologies [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | 0.6 | 0.1 | ||||
Operating Segments [Member] | 2019 Altra Plan [Member] | Automation & Specialty [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring expense | $ 2 | $ 2.6 |
Segments, Concentrations and _3
Segments, Concentrations and Geographic Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020segment | |
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, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Net sales | $ 400.8 | $ 466.5 | $ 835 | $ 949.3 | |||
Income/(loss) from operations | 52.1 | 57.1 | (45.9) | 123.5 | |||
Restructuring costs | (1.5) | $ (1.6) | (3.2) | $ (2.3) | (3.1) | (5.5) | |
Net interest expense | 18.8 | 18.6 | 36.2 | 38.4 | |||
Other non-operating expense, net | 2.5 | 0.4 | 1.1 | 1.5 | |||
Total other non-operating (income) expense, net | 21.3 | 19 | 37.3 | 39.9 | |||
(Loss)/Income before income taxes | 30.8 | 38.1 | (83.2) | 83.6 | |||
Provision for income taxes | 9.1 | 9.1 | 11.8 | 19.4 | |||
Net (loss)/income | 21.7 | 29 | (95) | 64.2 | |||
Operating Segments [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Restructuring costs | (1.5) | (3.2) | (3.1) | (5.5) | |||
Operating Segments [Member] | Power Transmission Technologies [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Net sales | 196.3 | 234.9 | 413 | 469.8 | |||
Income/(loss) from operations | 23.9 | 31.9 | 49.5 | 60.8 | |||
Restructuring costs | (1.1) | (2.9) | |||||
Operating Segments [Member] | Automation & Specialty [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Net sales | 205.8 | 233.3 | 424.4 | 482.4 | |||
Income/(loss) from operations | 26 | 31.8 | (92.6) | 72.4 | |||
Restructuring costs | (2) | (2.6) | |||||
Intersegment Eliminations [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Net sales | (1.3) | (1.7) | (2.4) | (2.9) | |||
Corporate [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Income/(loss) from operations | [1] | $ 3.7 | $ (3.4) | $ 0.3 | $ (4.2) | ||
[1] | Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to the Company’s corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs and acquisition related expenses. |
Segments, Concentrations and _5
Segments, Concentrations and Geographic Information - Reconciliation of Segment Assets to Consolidated Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total depreciation and amortization | $ 32 | $ 32.2 | $ 64.1 | $ 64.3 | ||
Total assets | 4,100.7 | 4,357.8 | 4,100.7 | 4,357.8 | $ 4,283.7 | |
Corporate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total depreciation and amortization | 0.9 | 0.7 | 1.5 | 1.4 | ||
Total assets | [1] | 134.9 | 98.3 | 134.9 | 98.3 | |
Power Transmission Technologies [Member] | Operating Segments [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total depreciation and amortization | 8.2 | 8.3 | 16.4 | 16.7 | ||
Total assets | 1,045.7 | 1,089.2 | 1,045.7 | 1,089.2 | ||
Automation & Specialty [Member] | Operating Segments [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total depreciation and amortization | 22.9 | 23.2 | 46.2 | 46.2 | ||
Total assets | $ 2,920.1 | $ 3,170.3 | $ 2,920.1 | $ 3,170.3 | ||
[1] | Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, and property, plant and equipment. |
Segments, Concentrations and _6
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 400.8 | $ 466.5 | $ 835 | $ 949.3 |
North America (primarily U.S.) [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 205.8 | 269.8 | 451.1 | 542.8 |
Europe Excluding Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 71.3 | 79.9 | 146.1 | 161.7 |
Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 44.1 | 56.8 | 96.6 | 119 |
Asia And Other [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 79.6 | $ 60 | $ 141.2 | $ 125.8 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Jan. 31, 2017 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2023 | |
Cross Currency Interest Rate Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative, term of contract | 5 years | ||||||||
Notional Amount | $ 600,000,000 | ||||||||
Fixed Rate | 4.8255% | ||||||||
Proceeds from cross-currency interest rate swaps upon termination | $ 56,200,000 | ||||||||
Paid termination fees | 900,000 | ||||||||
Gain (loss) in AOCIL | $ 31,300,000 | $ 19,800,000 | |||||||
AOCIL tax expense (benefit) | 9,900,000 | 3,600,000 | |||||||
Cross Currency Interest Rate Swap [Member] | Interest Income [Member] | |||||||||
Derivative [Line Items] | |||||||||
Cumulative translation adjustment recognized net interest income (expense), net amount | $ 3,300,000 | ||||||||
Cross Currency Interest Rate Swap [Member] | Forecast [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional Amount | $ 360,000,000 | ||||||||
Cross Currency Interest Rate Swap [Member] | Euro [Member] | Minimum [Member] | |||||||||
Derivative [Line Items] | |||||||||
Variable Rate | 2.19% | ||||||||
Cross Currency Interest Rate Swap [Member] | Euro [Member] | Maximum [Member] | |||||||||
Derivative [Line Items] | |||||||||
Variable Rate | 2.315% | ||||||||
Interest Rate Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional Amount | $ 600,000,000 | ||||||||
Fixed Rate | 4.8255% | ||||||||
Paid termination fees | $ 100,000 | ||||||||
Gain (loss) in AOCIL | (11,900,000) | (9,800,000) | |||||||
AOCIL tax expense (benefit) | (3,800,000) | $ (1,700,000) | |||||||
Maturity date of interest rate swap | Jan. 31, 2020 | ||||||||
Fair value of swap | 34,700,000 | 34,700,000 | |||||||
Net interest expense | 100,000 | ||||||||
Reclassification of AOCIL in to interest expense | 3,200,000 | $ 500,000 | 4,800,000 | $ 1,000,000 | |||||
Non cash interest expense related to termination of interest rate swap | $ 2,200,000 | $ 2,200,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Impact of Cross-Currency Swaps to AOCIL and Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Cross Currency Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Gain/(Loss) Recognized in AOCI | $ 31.3 | $ 19.8 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Fair Value Level 2 Inputs of Company's Derivatives (Detail) - Level 2 [Member] $ in Millions | Dec. 31, 2019USD ($) |
Derivative [Line Items] | |
Derivative liability (assets) | $ 4 |
Designated as Hedging Instruments [Member] | Other Long-Term (Assets) [Member] | Cross Currency Swap Agreements [Member] | |
Derivative [Line Items] | |
Derivative assets | (15) |
Designated as Hedging Instruments [Member] | Other Long-Term (Assets) [Member] | Interest Rate Swap Agreement [Member] | |
Derivative [Line Items] | |
Derivative assets | 0 |
Designated as Hedging Instruments [Member] | Other Long-Term Liabilities [Member] | Interest Rate Swap Agreement [Member] | |
Derivative [Line Items] | |
Derivative liability | $ 19 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Loss contingency accrual | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Jul. 22, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Subsequent Event [Line Items] | |||||
Cash dividends declared (in USD per share) | $ 0.04 | $ 0.17 | $ 0.21 | $ 0.34 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared (in USD per share) | $ 0.04 | ||||
Dividend declaration date | Jul. 22, 2020 | ||||
Dividend payable date | Oct. 2, 2020 | ||||
Dividend record date | Sep. 18, 2020 |