Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | May 12, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2021 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37454 | ||
Entity Registrant Name | CSW INDUSTRIALS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-2266942 | ||
Entity Address, Address Line One | 5420 Lyndon B. Johnson Freeway, Suite 500 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75240 | ||
City Area Code | 214 | ||
Local Phone Number | 884-3777 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | CSWI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,116.8 | ||
Entity Common Stock, Shares Outstanding | 15,687,489 | ||
Documents Incorporated by Reference | Certain information contained in the definitive proxy statement for the registrant’s Annual Meeting of Stockholders is incorporated by reference into Part III hereof. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001624794 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 10,088 | $ 18,338 |
Accounts receivable, net | 96,695 | 74,880 |
Inventories, net | 98,086 | 53,753 |
Prepaid expenses and other current assets | 9,684 | 3,074 |
Total current assets | 214,553 | 150,045 |
Property, plant and equipment, net | 82,554 | 57,178 |
Goodwill | 218,795 | 91,686 |
Intangible assets, net | 283,060 | 46,185 |
Other assets | 75,995 | 24,151 |
Total assets | 874,957 | 369,245 |
Current liabilities: | ||
Accounts payable | 32,444 | 21,978 |
Accrued and other current liabilities | 49,743 | 36,607 |
Current portion of long-term debt | 561 | 561 |
Total current liabilities | 82,748 | 59,146 |
Long-term debt | 241,776 | 10,337 |
Retirement benefits payable | 1,695 | 1,879 |
Other long-term liabilities | 136,725 | 21,142 |
Total liabilities | 462,944 | 92,504 |
Equity: | ||
Common shares, $0.01 par value; Shares authorized - 50,000; Shares issued - 16,055 and 16,001, respectively | 161 | 159 |
Preferred shares, $0.01 par value; Shares authorized (10,000) and issued (0) | 0 | 0 |
Additional paid-in capital | 104,689 | 48,327 |
Treasury shares, at cost (511 and 1,311 shares, respectively) | (34,075) | (75,377) |
Retained earnings | 347,234 | 315,078 |
Accumulated other comprehensive loss | (5,996) | (11,446) |
Total equity | 412,013 | 276,741 |
Total liabilities and equity | $ 874,957 | $ 369,245 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (USD per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (shares) | 50,000,000 | 50,000,000 |
Common shares, issued (shares) | 16,162,000 | 16,055,000 |
Preferred shares, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (shares) | 10,000,000 | 10,000,000 |
Preferred shares, issued (shares) | 0 | 0 |
Treasury shares (shares) | 511,000 | 1,311,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues, net | $ 419,205 | $ 385,871 | $ 350,155 |
Cost of revenues | (234,405) | (208,821) | (188,785) |
Gross profit | 184,800 | 177,050 | 161,370 |
Selling, general and administrative expenses | (125,330) | (110,032) | (100,930) |
Impairment expenses | 0 | (951) | 0 |
Operating income | 59,470 | 66,067 | 60,440 |
Interest expense, net | (2,383) | (1,331) | (1,442) |
Other (expense) income, net | (5,969) | (7,135) | 2,443 |
Income before income taxes | 51,118 | 57,601 | 61,441 |
Provision for income taxes | (10,830) | (12,784) | (15,389) |
Income from continuing operations | 40,288 | 44,817 | 46,052 |
Income (loss) from discontinued operations, net of tax | 0 | 1,061 | (478) |
Net income | $ 40,288 | $ 45,878 | $ 45,574 |
Basic earnings (loss) per common share: | |||
Continuing operations (USD per share) | $ 2.68 | $ 2.98 | $ 2.99 |
Discontinued operations (USD per share) | 0 | 0.07 | (0.03) |
Net income (USD per share) | 2.68 | 3.05 | 2.96 |
Diluted earnings (loss) per common share: | |||
Continuing operations (USD per share) | 2.66 | 2.95 | 2.96 |
Discontinued operations (USD per share) | 0 | 0.07 | (0.03) |
Net income (USD per share) | $ 2.66 | $ 3.02 | $ 2.93 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 40,288 | $ 45,878 | $ 45,574 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | 4,791 | (2,316) | (2,032) |
Cash flow hedging activity, net of taxes of $(156), $265 and $72, respectively | 587 | (996) | |
Cash flow hedging activity, net of taxes of $(156), $265 and $72, respectively | (286) | ||
Pension and other postretirement effects, net of taxes of $(34), $(682) and $177, respectively | 72 | 2,595 | (936) |
Other comprehensive (loss) income | 5,450 | (717) | (3,254) |
Comprehensive income | $ 45,738 | $ 45,161 | $ 42,320 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Cash flow hedging activity, taxes | $ (156) | $ 265 | |
Cash flow hedging activity, taxes | $ 72 | ||
Pension and other post retirement effects, taxes | $ (34) | $ (682) | $ 177 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Shares | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Balance at beginning of period at Mar. 31, 2018 | $ 265,765 | $ 158 | $ (3,252) | $ 42,684 | $ 233,650 | $ (7,475) | ||
Balance at beginning of period (ASU 2016-09) at Mar. 31, 2018 | $ (1,232) | $ (1,232) | ||||||
Balance at beginning of period (ASC 606) at Mar. 31, 2018 | (692) | (692) | ||||||
Balance at beginning of period (ASU 2018-02) at Mar. 31, 2018 | 288 | 288 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Share-based compensation | $ 3,949 | 3,949 | ||||||
Stock activity under stock plans | (1,086) | (1,086) | ||||||
Repurchase of common shares | (45,626) | (45,626) | ||||||
Net income | 45,574 | 45,574 | ||||||
Other comprehensive income (loss), net of tax | (3,254) | (3,254) | ||||||
Balance at end of period at Mar. 31, 2019 | 263,686 | $ (206) | 158 | (49,964) | 46,633 | 277,588 | $ (206) | (10,729) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 5,074 | 5,074 | ||||||
Stock activity under stock plans | (1,980) | 1 | 1,451 | (3,432) | ||||
Repurchase of common shares | (26,864) | (26,864) | ||||||
Net income | 45,878 | 45,878 | ||||||
Dividends | (8,130) | 52 | (8,182) | |||||
Other comprehensive income (loss), net of tax | (717) | (717) | ||||||
Balance at end of period at Mar. 31, 2020 | 276,741 | 159 | (75,377) | 48,327 | 315,078 | (11,446) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 5,085 | 5,085 | ||||||
Stock activity under stock plans | (2,812) | 2 | (2,812) | (2) | ||||
Repurchase of common shares | (7,291) | (7,291) | ||||||
Reissuance of treasury shares | 102,637 | 51,405 | 51,232 | |||||
Net income | 40,288 | 40,288 | ||||||
Dividends | (8,085) | 47 | (8,132) | |||||
Other comprehensive income (loss), net of tax | 5,450 | 5,450 | ||||||
Balance at end of period at Mar. 31, 2021 | $ 412,013 | $ 161 | $ (34,075) | $ 104,689 | $ 347,234 | $ (5,996) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 40,288 | $ 45,878 | $ 45,574 |
Less: Income (loss) from discontinued operations, net of tax | 0 | 1,061 | (478) |
Income from continuing operations | 40,288 | 44,817 | 46,052 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 9,194 | 7,918 | 7,411 |
Amortization of intangible and other assets | 13,843 | 6,927 | 6,425 |
Provision for inventory reserves | 1,308 | (28) | 231 |
Provision for doubtful accounts | 696 | 909 | 818 |
Share-based and other executive compensation | 5,086 | 5,074 | 3,949 |
Net gain on disposals of property, plant and equipment | (23) | (833) | (4,320) |
Pension plan termination expense | 0 | 6,559 | 0 |
Net pension benefit | 163 | (121) | (416) |
Impairment of intangible assets | 0 | 951 | 0 |
Realized deferred taxes (Note 14) | 0 | 0 | 10,419 |
Net deferred taxes | (1,737) | 537 | 206 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (7,219) | (7,997) | (3,825) |
Inventories | (3,377) | (1,653) | (5,537) |
Prepaid expenses and other current assets | (4,246) | 3,969 | 725 |
Other assets | (1,532) | 29 | 920 |
Accounts payable and other current liabilities | 13,856 | 5,884 | 5,704 |
Retirement benefits payable and other liabilities | (46) | (1,545) | (603) |
Net cash provided by operating activities, continuing operations | 66,254 | 71,397 | 68,159 |
Net cash used in operating activities, discontinued operations | 0 | (1,500) | (8,449) |
Net cash provided by operating activities | 66,254 | 69,897 | 59,710 |
Cash flows from investing activities: | |||
Capital expenditures | (8,833) | (11,437) | (7,515) |
Proceeds from sale of assets held for investment | 6,152 | 0 | 3,905 |
Proceeds from sale of assets | 30 | 1,292 | 3,295 |
Cash paid for acquisitions | (287,238) | (11,837) | (10,100) |
Net cash used in investing activities, continuing operations | (289,889) | (21,982) | (10,415) |
Net cash provided by investing activities, discontinued operations | 0 | 1,538 | 7,356 |
Net cash used in investing activities | (289,889) | (20,444) | (3,059) |
Cash flows from financing activities: | |||
Borrowings on lines of credit | 255,000 | 7,500 | 28,000 |
Repayments of lines of credit | (23,561) | (28,061) | (20,561) |
Payments of deferred loan costs | (148) | 0 | 0 |
Purchase of treasury shares | (10,489) | (28,460) | (46,712) |
Proceeds from stock option activity | 1,330 | 0 | 0 |
Dividends paid to shareholders | (8,083) | (8,130) | 0 |
Net cash provided by (used in) financing activities | 214,049 | (57,151) | (39,273) |
Effect of exchange rate changes on cash and equivalents | 1,336 | (615) | (2,433) |
Net change in cash and cash equivalents | (8,250) | (8,313) | 14,945 |
Cash and cash equivalents, beginning of period | 18,338 | 26,651 | 11,706 |
Cash and cash equivalents, end of period | 10,088 | 18,338 | 26,651 |
Supplemental non-cash disclosure: | |||
Cash paid during the year for interest | 1,875 | 1,165 | 1,302 |
Cash paid during the year for income taxes | $ 14,021 | $ 8,873 | $ 2,888 |
Organization and Operations and
Organization and Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations and Summary of Significant Accounting Policies | ORGANIZATION AND OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CSW Industrials, Inc. (“CSWI,” “we,” “our” or “us”) is a diversified industrial growth company with well-established, scalable platforms and domain expertise across two segments: Industrial Products and Specialty Chemicals. Our broad portfolio of leading products provides performance optimizing solutions to our customers. Our products include mechanical products for heating, ventilation, air conditioning and refrigeration (“HVAC/R”), sealants and high-performance specialty lubricants. Drawing on our innovative and proven technologies, we seek to deliver solutions to our professional customers that require superior performance and reliability. Our diverse product portfolio includes more than 100 highly respected industrial brands including RectorSeal No. 5 ® , KOPR-KOTE ® , KATS Coatings ® , Safe-T-Switch ® , Air Sentry ® , Deacon ® , Leak Freeze ®, Greco ® and TRUaire® . Our products are well-known in the specific industries we serve and have a reputation for high quality and reliability. Markets that we serve include HVAC/R, architecturally-specified building products, plumbing, energy, rail, mining and general industrial markets. The COVID-19 pandemic continues to have an impact on human health, the global economy and society at large. The pandemic and its resulting impacts had an adverse impact on our financial results in the fiscal year ended March 31, 2021, as compared with the prior year, most notably within the first and second quarters of fiscal 2021. While the COVID-19 pandemic has contributed to increased demand in certain parts of our business, including the HVAC/R end market, we expect our overall results of operations and financial condition to continue to be adversely impacted through the duration of the pandemic when compared to pre-pandemic periods. Despite strong demand in certain of our end markets and signs of recovery in others, we cannot reasonably estimate the magnitude or length of the pandemic’s adverse impact, including the effects of any vaccine or its ultimate impact on our business or financial condition, due to continued uncertainty regarding (1) the duration and severity of the COVID-19 pandemic and (2) the continued potential for short and long-term impacts on our facilities and employees, customer demand and supply chain. All of our operations and products support critical infrastructure and are considered "essential" in all of the relevant jurisdictions in which we operate. In response to the COVID-19 pandemic, we took numerous measures across our operating sites to ensure we continue to place the highest priority on the health, safety and well-being of our employees, while continuing to support our customers. Through the date of this filing, our businesses have continued to operate throughout the COVID-19 pandemic with appropriate safeguards for our employees and without any material disruptions. Basis of Presentation – The consolidated financial position, results of operations and cash flows included in this Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (“Annual Report”) include all revenues, costs, assets and liabilities directly attributable to CSWI and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”). Use of Estimates – The process of preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses. We believe our estimates and assumptions are reasonable; however, actual results may differ materially from such estimates. The most significant estimates and assumptions are used in determining: • Timing and amount of revenue recognition; • Deferred taxes and tax reserves; and • Valuation of goodwill and indefinite-lived intangible assets. Cash and Cash Equivalents – We consider all highly liquid instruments purchased with original maturities of three months or less and money market accounts to be cash equivalents. We maintain our cash and cash equivalents at financial institutions for which the combined account balances in individual institutions may exceed insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of insurance coverage. We had deposits in domestic banks of $6.1 million and $11.7 million at March 31, 2021 and 2020, respectively, and balances of $4.0 million and $6.6 million were held in foreign banks at March 31, 2021 and 2020, respectively. Accounts Receivable, Allowance for Doubtful Accounts and Credit Risk – Trade accounts receivables are recorded at the invoiced amounts and do not bear interest. We record an allowance for credit losses on trade receivables that, when deducted from the gross trade receivables balance, presents the net amount expected to be collected. We estimate the allowance based on an aging schedule and according to historical losses as determined from our billings and collections history. This may be adjusted after consideration of customer-specific factors such as financial difficulties, liquidity issues or insolvency, as well as both current and forecasted macroeconomic conditions as of the reporting date. We adjust the allowance and recognize credit losses in the income statement each period. Trade receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible. Subsequent recoveries of amounts previously written off are reflected as a reduction to periodic credit losses in the income statement. Our allowance for expected credit losses for short-term receivables as of March 31, 2021 was $0.9 million, compared to $1.2 million as of March 31, 2020. The activity for the year ended March 31, 2021 included write off of trade receivables of $0.7 million for current period adjustments. Credit risks are mitigated by the diversity of our customer base across many different industries and by performing creditworthiness analyses on our customers. Additionally, we mitigate credit risk through letters of credit and advance payments received from our customers. We do not believe that we have any significant concentrations of credit risk. Inventories and Related Reserves – Inventories are stated at the lower of cost or net realizable value and include raw materials, supplies, direct labor and manufacturing overhead. Cost is determined using the last-in, first-out (“LIFO”) method for valuing inventories at most of our domestic operations. Our foreign subsidiaries and some domestic operations use either the first-in, first out method or the weighted average cost method to value inventory. Foreign inventories represent approximately 12% and 6% of total inventories as of March 31, 2021 and 2020, respectively. Reserves are provided for slow-moving or excess and obsolete inventory based on the difference between the cost of the inventory and its net realizable value and by reviewing quantities on hand in comparison with historical and expected future usage. In estimating the reserve for excess or slow-moving inventory, management considers factors such as product aging, current and future customer demand and market conditions. Property, Plant and Equipment – Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the individual assets. When property, plant and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and the resulting gain or loss is included in income from operations for the period. Generally, the estimated useful lives of assets are: Land improvements 5 to 40 years Buildings and improvements 7 to 40 years Plant, office and lab equipment 5 to 10 years We review property, plant and equipment for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Repairs and maintenance costs are expensed as incurred, and significant improvements that either extend the useful life or increase the capacity or efficiency of property and equipment are capitalized and depreciated. Valuation of Goodwill and Intangible Assets – The value of goodwill is tested for impairment at least annually as of January 31 or whenever events or circumstances indicate such assets may be impaired. The identification of our reporting units began at the operating segment level and considered whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment based on certain conditions. These conditions included, among other factors, (i) the extent to which a component represents a business and (ii) the aggregation of economically similar components within the operating segments. Other factors that were considered in determining whether the aggregation of components was appropriate included the similarity of the nature of the products and services, the nature of the production processes, the methods of distribution and the types of industries served. Accounting Standards Codification ("ASC") 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. We bypassed the qualitative assessment and proceeded directly to the quantitative test. If the carrying value of a reporting unit exceeds it fair value, the goodwill of that reporting unit is impaired and an impairment loss is recorded equal to the excess of the carrying value over its fair value. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit base on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. No goodwill impairment loss was recognized as a result of the impairment tests for the years ended March 31, 2021, 2020 or 2019. We have intangible assets consisting of patents, trademarks, customer lists and non-compete agreements. Definite-lived intangible assets are assessed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. In addition, we have other trademarks and license agreements that are considered to have indefinite lives. We test indefinite-lived intangible assets for impairment at least annually as of January 31 or whenever events or circumstances indicate that the carrying amount may not be recoverable. Significant assumptions used in the impairment test include the discount rate, royalty rate, future sales projections and terminal value growth rate. These inputs are considered non-recurring Level III inputs within the fair value hierarchy. An impairment loss would be recognized when estimated future cash flows are less than their carrying amount. We recorded an impairment of intangible assets of continuing operations of $0, $1.0 million and $0 for the years ended March 31, 2021, 2020 and 2019, respectively. Property Held for Investment – One of our non-operating subsidiaries holds and manages a non-operating property, which is valued at lower of cost or market and disposed of as opportunities arise to maximize value. Deferred Loan Costs – Deferred loan costs related to our credit facility, which are reported in other assets and consist of fees and other expenses associated with debt financing, are amortized over the term of the associated debt using the effective interest method. Fair Values of Financial Instruments – Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our long-term debt, as discussed in Note 7. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels, as defined by Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. An asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Hierarchical levels are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Recurring fair value measurements are limited to investments in derivative instruments and assets held in defined benefit pension plans. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivative instruments are included in Note 9. The fair values of assets held in defined benefit pension plans are discussed in Note 13. Leases – We determine if a contract is or contains a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. Right-of-Use (“ROU”) assets and lease liabilities are initially recognized at the commencement date based on the present value of remaining lease payments over the lease term calculated using our incremental borrowing rate, unless the implicit rate is readily determinable. ROU assets represent the right to use an underlying asset for the lease term, including any upfront lease payments made and excluding lease incentives. Lease liabilities represent the obligation to make future lease payments throughout the lease term. As most of our operating leases do not provide an implicit rate, we apply our incremental borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing rate is determined based on information available at the commencement date of the lease. The lea se term includes renewal periods when we are reasonably certain to exercise the option to renew. The ROU asset is amortized over the expected lease term. Lease and non-lease components, when present on our leases, are accounted for separately. Leases with an initial term of 12 months or less are excluded from recognition in the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated income statements as the obligation is incurred. As of March 31, 2021 , w e did not have material leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. Derivative Instruments and Hedge Accounting – We do not use derivative instruments for trading or speculative purposes. We enter into interest rate swap agreements for the purpose of hedging our cash flow exposure to floating interest rates on certain portions of our debt. All derivative instruments are recognized on the balance sheet at their fair values. Changes in the fair value of a designated interest rate swap are recorded in other comprehensive loss until earnings are affected by the underlying hedged item. Any ineffective portion of the gain or loss is immediately recognized in earnings. Upon settlement, realized gains and losses are recognized in interest expense in the consolidated statements of operations. We discontinue hedge accounting when (1) we deem the hedge to be ineffective and determine that the designation of the derivative as a hedging instrument is no longer appropriate; (2) the derivative matures, terminates or is sold; or (3) occurrence of the contracted or committed transaction is no longer probable or will not occur in the originally expected period. When hedge accounting is discontinued and the derivative remains outstanding, we carry the derivative at its estimated fair value on the balance sheet, recognizing changes in the fair value in current period earnings. If a cash flow hedge becomes ineffective, any deferred gains or losses remain in accumulated other comprehensive loss until the underlying hedged item is recognized. If it becomes probable that a hedged forecasted transaction will not occur, deferred gains or losses on the hedging instrument are recognized in earnings immediately. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and interest rate swap agreements and expect all counterparties to meet their obligations. If necessary, we adjust the values of our derivative contracts for our or our counterparties’ credit risk. Pension Obligations – Determination of pension benefit obligations is based on estimates made by management in consultation with independent actuaries. Inherent in these valuations are assumptions including discount rates, expected rates of return on plan assets, retirement rates, mortality rates and rates of compensation increase and other factors, all of which are reviewed annually and updated if necessary. Current market conditions, including changes in rates of return, interest rates and medical inflation rates, are considered in selecting these assumptions. • Discount rates are estimated using high quality corporate bond yields with a duration matching the expected benefit payments. The discount rate is obtained from a universe of AA-rated non-callable bonds across the full maturity spectrum to establish a weighted average discount rate. Our discount rate assumptions are impacted by changes in general economic and market conditions that affect interest rates on long-term high-quality debt securities, as well as the duration of our plans’ liabilities. • The expected rates of return on plan assets are derived from reviews of asset allocation strategies, expected future experience for trust asset returns, risks and other factors adjusted for our specific investment strategy. These rates are impacted by changes in general market conditions, but because they are long-term in nature, short-term market changes do not significantly impact the rates. Changes to our target asset allocation also impact these rates. Actuarial gains and losses and prior service costs are recognized in accumulated other comprehensive loss as they arise, and we amortize these costs into net pension expense over the remaining expected service period. We used a measurement date of March 31 for all periods presented. Revenue Recognition – We recognize revenues to depict the transfer of control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Refer to Note 18 for further discussion. We recognize revenue when all of the following criteria have been met: (i) a contract with a customer exists, (ii) performance obligations have been identified, (iii) the price to the customer has been determined, (iv) the price to the customer has been allocated to the performance obligations, and (v) performance obligations are satisfied, which are more fully described below. (i) We identify a contract with a customer when a sales agreement indicates approval and commitment of the parties; identifies the rights of the parties; identifies the payment terms; has commercial substance; and it is probable that we will collect the consideration to which we will be entitled in exchange for the goods or services that will be transferred to the customer. In most instances, our contract with a customer is the customer's purchase order. For certain customers, we may also enter into a sales agreement that outlines a framework of terms and conditions that apply to all future purchase orders for that customer. In these situations, our contract with the customer is both the sales agreement and the specific customer purchase order. Because our contract with a customer is typically for a single transaction or customer purchase order, the duration of the contract is one year or less. As a result, we have elected to apply certain practical expedients and, as permitted by the Financial Accounting Standards Board ("FASB"), omit certain disclosures of remaining performance obligations for contracts that have an initial term of one year or less. (ii) We identify performance obligations in a contract for each promised good or service that is separately identifiable from other promises in the contract and for which the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer. Goods and services provided to our customers that are deemed immaterial are included with other performance obligations. (iii) We determine the transaction price as the amount of consideration we expect to be entitled to in exchange for fulfilling the performance obligations, including the effects of any variable consideration. (iv) For any contracts that have more than one performance obligation, we allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which we expect to be entitled in exchange for satisfying each performance obligation. We have excluded disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less as the majority of our contracts are short-term in nature with a term of one year or less. (v) We recognize revenue when, or as, we satisfy the performance obligation in a contract by transferring control of a promised good or service to the customer. We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. As such, we present revenue net of sales and other similar taxes. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues. Costs to obtain a contract, which include sales commissions recorded in selling, general and administrative expense, are expensed when incurred as the amortization period is one year or less. We do not have customer contracts that include significant financing components. Research and Development ("R&D") – R&D costs are expensed as incurred. Costs incurred for R&D primarily include salaries and benefits and consumable supplies, as well as rent, professional fees, utilities and the depreciation of property and equipment used in R&D activities. R&D costs included in selling, general and administrative expense were $4.5 million, $4.3 million and $4.3 millions for the years ended March 31, 2021, 2020 and 2019, respectively. Share-based Compensation – Share-based compensation is measured at the grant-date fair value. The exercise price of stock option awards and the fair value of restricted share awards are set at the closing price of our common stock on the Nasdaq Global Select Market on the date of grant, which is the date such grants are authorized by our Board of Directors. The fair value of performance-based restricted share awards is determined using a Monte Carlo simulation model incorporating all possible outcomes against the Russell 2000 Index. The fair value of share-based payment arrangements is amortized on a straight-line basis to compensation expense over the period in which the restrictions lapse based on the expected number of shares that will vest. To cover the exercise of options and vesting of restricted shares, we generally issue new shares from our authorized but unissued share pool, although we may instead issue treasury shares in certain circumstances. Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves – We apply the liability method in accounting and reporting for income taxes. Under the liability approach, deferred tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax rates expected to be in effect when these differences are expected to reverse. The effect on deferred tax assets and liabilities resulting from a change in tax rates is recognized in the period that includes the enactment date. The deferred income tax assets are adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, that it is more likely than not to be realized. This analysis is performed on a jurisdictional basis and reflects our ability to utilize these deferred tax assets through a review of past, current and estimated future taxable income in addition to the establishment of viable tax strategies that will result in the utilization of the deferred assets. We recognize income tax related interest and penalties, if any, as a component of income tax expense. Unremitted Earnings – During the fiscal quarter ended March 31, 2019, we lifted our assertion that the earnings of our United Kingdom ("U.K.") and Australian subsidiaries were indefinitely invested outside of the U.S. During the fiscal quarter ended September 30, 2020, we lifted our assertion that the earnings of our Jet Lube Canada subsidiary were indefinitely invested outside of the U.S. We assert that the foreign earnings of the U.K., Australian, Vietnam and Jet Lube Canada subsidiaries will be remitted to the U.S. through distributions. We still consider the earnings of our other Canadian subsidiaries indefinitely invested outside the U.S. as we have needs for working capital in our other Canadian entities. A provision was made for taxes that may become payable upon distribution of earnings from our U.K., Australian, Vietnam and Jet Lube Canada subsidiaries. Uncertain Tax Positions – We establish income tax liabilities to remove some or all of the income tax benefit of any of our income tax positions based upon one of the following: (1) the tax position is not “more likely than not” to be sustained, (2) the tax position is “more likely than not” to be sustained, but for a lesser amount or (3) the tax position is “more likely than not” to be sustained, but not in the financial period in which the tax position was originally taken. The amount of income taxes we pay is subject to ongoing audits by federal, state, and foreign taxing authorities, which often result in proposed assessments. We establish reserves for open tax years for uncertain tax positions that may be subject to challenge by various taxing authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Earnings Per Share – We use the two-class method of calculating earnings per share, which determines earnings per share for each class of common stock and participating security as if all earnings of the period had been distributed. If the holders of restricted stock awards are entitled to vote and receive dividends during the restriction period, unvested shares of restricted stock qualify as participating securities and, accordingly, are included in the basic computation of earnings per share. Our unvested restricted shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. Accordingly, the presentation in Note 10 is prepared on a combined basis and is presented as earnings per common share. Diluted earnings per share is based on the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options. Foreign Currency Translation – Assets and liabilities of our foreign subsidiaries are translated to U.S. dollars at exchange rates prevailing at the balance sheet date, while income and expenses are translated at average rates for each month. Translation gains and losses are reported as a component of accumulated other comprehensive loss. Transactional currency gains and losses arising from transactions in currencies other than our sites’ functional currencies are included in our consolidated statements of operations. Transaction and translation gains and losses arising from intercompany balances are reported as a component of accumulated other comprehensive loss when the underlying transaction stems from a long-term equity investment or from debt designated as not due in the foreseeable future. Otherwise, we recognize transaction gains and losses arising from intercompany transactions as a component of income. Segments – We conduct our operations through two business segments based on type of product and how we manage the business. The products for our segments are distributed both domestically and internationally. For decision-making purposes, our Chief Executive Officer and other members of senior executive management use financial information generated and reported at the reportable segment level. We evaluate segment performance and allocate resources based on each reportable segment’s operating income. Our reportable segments are as follows: • Industrial Products includes specialty mechanical products, fire and smoke protection products, architecturally-specified building products and storage, filtration and application equipment for use with our specialty chemicals and other products for general industrial application. • Specialty Chemicals includes pipe thread sealants, firestopping sealants and caulks, adhesives/solvent cements, lubricants and greases, drilling compounds, anti-seize compounds, chemical formulations and degreasers and cleaners. Intersegment sales and transfers are recorded at cost plus a profit margin, with the revenues and related margin on such sales eliminated in consolidation. We do not allocate interest expense, interest income or other income, net to our segments. Our corporate headquarters does not constitute a separate segment. The Eliminations and Other segment information is included to reconcile segment data to the consolidated financial statements and includes assets and expenses primarily related to corporate fun |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS T.A. Industries On December 15, 2020, we acquired 100% of the outstanding equity of T.A. Industries, Inc. (“TRUaire”), a leading manufacturer of grilles, registers, and diffusers for the residential and commercial HVAC/R end market, based in Santa Fe Springs, California. The acquisition also included TRUaire’s wholly-owned manufacturing facility based in Vietnam. The acquisition is expected to extend the Company’s product offerings to the HVAC market as well as add new customers and provide strategic distribution facilities. The contractual consideration paid for TRUaire included cash of $284 million ($286.9 million after working capital and closing cash adjustments) and 849,852 shares of the Company’s common stock (valued at approximately $76.0 million at transaction signing on November 4, 2020) valued at $97.7 million at transaction close based on the closing market price of the Company's common shares on the acquisition date. The cash consideration was funded through a combination of cash on hand and borrowings under our revolving credit facility. The 849,852 shares of common stock delivered to the sellers as consideration were reissued from treasury shares. Acquisition Consideration (Amounts in thousands, except for shares) Cash (a) $ 286,925 Common stock (849,852 shares) 97,656 Total consideration transferred $ 384,581 (a) Amount includes working capital and closing cash adjustments, and excludes the $1.2 million received by the Company on April 1, 2021 as a result of the final working capital true-up adjustment pursuant to the purchase agreement. The TRUaire acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations ("Topic 805"). Pursuant to Topic 805, the Company allocated the TRUaire purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, December 15, 2020. The excess of the purchase price over those fair values was recorded to goodwill. The Company's evaluation of the facts and circumstances available as of the acquisition date, to assign fair values to assets acquired and liabilities assumed, including income tax related amounts, is ongoing. As we complete further analysis of tangible assets, intangible assets and liabilities assumed, additional information impacting the assets acquired and the related allocation thereof, may become available. A change in information related to the net assets acquired may change the amount of the purchase price assigned to goodwill, and, as a result, the preliminary fair values set forth below are subject to adjustments when additional information is obtained and valuations are completed. Provisional adjustments, if any, will be recognized during the reporting period in which the adjustments are determined. We expect to finalize the purchase price allocation as soon as practicable, but no later than one year from the acquisition date. The following table summarizes the Company's best initial estimate of the aggregate fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands). Initial Estimated Fair Value Measurement Period Adjustments Updated Estimated Fair Value Cash $ 1,471 $ — $ 1,471 Accounts Receivable, net 13,467 — 13,467 Inventory 46,313 (1,300) 45,013 Short-Term Tax Indemnity Assets 5,000 — 5,000 Other Current Assets 1,285 1,041 2,326 Property, Plant and Equipment 28,832 (3,065) 25,767 Trade Name (indefinite life) 43,500 — 43,500 Customer Lists (useful life of 15 years) 194,000 8,500 202,500 Right-Of-Use Assets 49,040 — 49,040 Long-Term Tax Indemnity Assets 7,500 — 7,500 Other Long-term Assets 2,850 402 3,252 Accounts Payable (4,074) — (4,074) Accrued and Other Current Liabilities (3,678) (1,395) (5,073) Lease Liabilities - Short-Term (4,811) — (4,811) Deferred Tax Liabilities (56,249) (6,912) (63,161) Tax Contingency Reserve (22,511) 5,190 (17,321) Lease Liabilities - Long-Term (45,369) — (45,369) Estimated fair value of net assets acquired 256,566 2,461 259,027 Goodwill 129,169 (3,615) 125,554 Total Purchase Price $ 385,735 $ (1,154) $ 384,581 Deferred tax liabilities were established to record the deferred tax impact of purchase price accounting adjustments, primarily related to intangibles assets. Tax contingency reserves relate to uncertain tax positions TRUaire took in the periods prior to the acquisition date. In accordance with the tax indemnification included in the purchase agreement of TRUaire, the seller has provided contractual indemnification to the Company for up to $12.5 million related to uncertain tax positions taken in prior years. The outcome of this arrangement will either be settled or expire by 2023. During the three months ended March 31, 2021, TRUaire received an audit closing letter from Internal Revenue Service related to calendar 2017, a pre-acquisition tax year. As a result of this, the relevant tax indemnification asset of $5.0 million was released in accordance with the purchase agreement. The release of the relevant uncertain tax position accrual of $5.3 million was recorded as an income tax benefit for the three months ended March 31, 2021, and the offsetting indemnification expense of $5.0 million was recorded in other expense on the consolidated statement of operations. As of March 31, 2021, approximately $7.5 million of the indemnification assets remained outstanding. Goodwill of $125.6 million represents the excess of the purchase price over the fair value of the underlying tangible and intangible assets acquired and liabilities assumed. The acquisition goodwill represents the value expected to be obtained from expanding the Company’s product offerings more broadly across the HVAC end market. The goodwill recorded as part of this acquisition is included in the Industrial Products segment. The goodwill associated with the acquisition will not be amortized for financial reporting purposes and will not be deductible for income tax purposes. TRUaire generated net revenue of $33.8 million and a net loss before income taxes of $0.4 million for the period from the acquisition date to March 31, 2021. The loss before income taxes includes amortization expenses related to the acquired customer lists ($3.9 million), the fair value step-up of the inventory ($3.5 million), the indemnification expense of $5.0 million discussed above, and excludes the transaction expenses discussed below. TRUaire activity has been included in our Industrial Products segment since the acquisition date. During the year ended March 31, 2021, the Company incurred and paid $7.8 million of transaction expenses in connection with the TRUaire acquisition, which are included in selling, general and administrative expenses in the Consolidated Statement of Operations. Pursuant to Topic 805, unaudited supplemental proforma results of operations for the year ended March 31, 2021 and 2020, as if the acquisition of TRUaire had occurred on April 1, 2019 are presented below (in thousands, except per share amounts): Year Ended March 31, 2021 2020 Revenue, net $ 495,788 $ 480,285 Net income 47,891 28,730 Net earnings per common share: Diluted 3.17 1.79 Basic 3.19 1.81 These proforma results do not present financial results that would have been realized had the acquisition occurred on April 1, 2019, nor are they intended to be a projection of future results. The unaudited proforma results include certain proforma adjustments to net income that were directly attributable to the acquisition, as if the acquisition had occurred on April 1, 2019, including the following: • Transactions expenses of $0 and $7.8 million for the years ended March 31, 2021 and 2020, respectively, that would have been recognized by the Company related to the TRUaire acquisition; • Additional depreciation expense of $0.4 million and $0.6 million for the years ended March 31, 2021 and 2020, respectively, that would have been recognized as a result of the fair value step-up of the property, plant and equipment; • Additional amortization expense of $0 and $7.9 million for the years ended March 31, 2021 and 2020, respectively, that would have been recognized as a result of the fair value step-up of the inventory; • Additional amortization expense of $9.6 million and $13.5 million for the years ended March 31, 2021 and 2020, respectively, that would have been recognized as a result of the allocation of purchase consideration to customer lists subject to amortization; • Estimated additional interest expense of $3.2 million and $4.5 million for the years ended March 31, 2021 and 2020, respectively, as a result of incurring additional borrowing; • Income tax effect of the proforma adjustments calculated using a blended statutory income tax rate of 24.5% of $3.2 million and $8.4 million for the years ended March 31, 2021 and 2020, respectively. Petersen Metals On April 2, 2019, we acquired the assets of Petersen Metals, Inc. (“Petersen”), based near Tampa, Florida, for $11.8 million, of which $11.5 million was paid at closing and funded through our revolving credit facility, and the remaining $0.3 million represented a working capital adjustment paid in July 2019. Petersen is a leading designer, manufacturer and installer of architecturally-specified, engineered metal products and railings, including aluminum and stainless steel railings products for interior and exterior applications. The excess of the purchase price over the fair value of the identifiable assets acquired was $6.1 million allocated to goodwill, which will be deductible for income tax purposes. Goodwill represents the value expected to be obtained from enabling geographic, end market and product diversification and expansion as Petersen is a strategic complement to our existing line of architecturally-specified building products. The allocation of the fair value of the net assets acquired included customer lists of $3.2 million and backlog of $0.4 million, as well as accounts receivable, inventory and equipment of $2.2 million, $0.8 million and $0.7 million, respectively, net of current liabilities of $1.5 million. Customer lists are being amortized over 15 years, backlog is amortized over 1.5 years and goodwill is not being amortized. Petersen activity has been included in our Industrial Products segment since the acquisition date. No pro forma information has been provided due to immateriality. MSD Research, Inc. On January 31, 2019, we acquired the assets of MSD Research, Inc. (“MSD”), based in Boca Raton, Florida, for $10.1 million, funded through our revolving credit facility. MSD is a leading provider of condensate management products for commercial and residential HVAC/R systems, including float switches, drain line cleanouts and flush tools. The excess of the purchase price over the fair value of the identifiable assets acquired was $5.2 million allocated to goodwill, which will be deductible for income tax purposes. Goodwill represents the value expected to be obtained from a more extensive condensation management product portfolio for the HVAC/R market and leveraging our larger distributor network. The allocation of the fair value of the net assets acquired included customer lists, trademarks and technology of $3.3 million, $0.8 million and $0.4 million, respectively, as well as inventory and accounts receivable of $0.3 million and $0.1 million, respectively. Customer lists and technology are being amortized over 10 years and 5 years, respectively, while trademarks and goodwill are not being amortized. MSD activity has been included in our Industrial Products segment since the acquisition date. No pro forma information has been provided due to immateriality. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS During the quarter ended December 31, 2017, we commenced a sale process to divest our Coatings business to allow us to focus resources on our core growth platforms. Our former Coatings business manufactured specialized industrial coatings products including urethanes, epoxies, acrylics and alkyds. As of December 31, 2017, the Coatings business met the held-for-sale criteria under ASC 360, "Property, Plant and Equipment," and accordingly, we classified and accounted for the assets and liabilities of the Coatings business as held-for-sale in the accompanying consolidated balance sheets, and as discontinued operations, net of tax in the accompanying consolidated statements of operations and cash flows. We completed an initial assessment of the assets and liabilities of the Coatings business and recorded a $46.0 million impairment based on our best estimates as of the date of issuance of financial results for quarter ended December 31, 2017. No adjustments to previously recorded estimates have been made subsequently. On July 31, 2018, we consummated a sale of assets related to our Coatings business to an unrelated third party, the terms of which were not disclosed due to immateriality. During the quarter ended September 30, 2018, we received an aggregate of $6.9 million for the sale of assets that related to our Coatings business in multiple transactions. This resulted in gains on disposal of $6.9 million due to write-downs of long-lived assets in prior periods. On March 17, 2020, we completed the sale of the last remaining real property owned by the Coatings business to an unrelated third party, the terms of which were not disclosed due to immateriality. The sale resulted in proceeds and a gain on disposal of $1.5 million due to write-downs of long-lived assets in prior periods. The last remaining asset of the Coatings business is a long-term lease that expires in March 2027. We have not terminated the lease, but we have sub-let the property for the remainder of the lease term. As such, this lease has been moved back into continuing operations, effective March 31, 2020, and the related ROU assets and lease liabilities were reported as continuing operations as of March 31, 2020. The assets and liabilities of the Coatings business reside in a disregarded entity for tax purposes. Accordingly, the tax attributes associated with the operations of our Coatings business will ultimately flow through to the corporate parent, which files a consolidated federal return. Therefore, any corresponding tax assets or liabilities have been reflected as a component of our continuing operations. Discontinued operations reported no assets or liabilities as of March 31, 2021 and 2020, respectively, in the consolidated balance sheets. Summarized selected financial information for the Coatings business for the years ended March 31, 2021, 2020 and 2019, is presented in the following table (in thousands): Year Ended March 31, 2021 2020 2019 Revenues, net $ — $ — $ 5,303 Gain (loss) from discontinued operations before income taxes — 1,326 (774) Income tax (expense) benefit — (265) 296 Gain (loss) from discontinued operations $ — $ 1,061 $ (478) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the years ended March 31, 2021 and 2020 were as follows (in thousands): Industrial Products Specialty Chemicals Total Balance at April 1, 2019 $ 54,732 $ 31,563 $ 86,295 Petersen acquisition 6,128 — 6,128 Currency translation (737) — (737) Balance at March 31, 2020 $ 60,123 $ 31,563 $ 91,686 T.A. industries acquisition 125,554 — 125,554 Currency translation 1,555 — 1,555 Balance at March 31, 2021 $ 187,232 $ 31,563 $ 218,795 The following table provides information about our intangible assets for the years ended March 31, 2021 and 2020 (in thousands, except years): March 31, 2021 March 31, 2020 Wtd Avg Life (Years) Ending Gross Amount Accumulated Amortization Ending Gross Amount Accumulated Amortization Finite-lived intangible assets: Patents 11 $ 9,461 $ (7,540) $ 9,635 $ (6,935) Customer lists and amortized trademarks 14 267,096 (42,345) 62,806 (33,098) Non-compete agreements 5 982 (790) 1,653 (1,494) Other 8 4,743 (3,141) 5,219 (2,628) $ 282,282 $ (53,816) $ 79,313 $ (44,155) Trade names and trademarks not being amortized (a): $ 54,594 $ — $ 11,027 $ — (a) In the fiscal quarter ended March 31, 2020, we recorded an impairment of $1.0 million on one of our unamortized trademarks in our Specialty Chemicals segment. Amortization expense for the years ended March 31, 2021, 2020 and 2019 was $10.5 million, $6.7 million and $6.2 million, respectively. The following table presents the estimated future amortization of finite-lived intangible assets for the next five fiscal years ending March 31 (in thousands): 2022 $ 19,288 2023 18,279 2024 17,567 2025 16,609 2026 15,699 Thereafter 141,024 Total 228,466 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We maintain the shareholder-approved 2015 Equity and Incentive Compensation Plan (the “2015 Plan”), which provides for the issuance of up to 1,230,000 shares of CSWI common stock through the grant of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units or other share-based awards, to employees, officers and non-employee directors. As of March 31, 2021, 675,113 shares were available for issuance under the 2015 Plan. We recorded share-based compensation expense as follows for the years ended March 31, 2021, 2020 and 2019 (in thousands): Year Ended March 31, 2021 Stock Options Restricted Stock Total Share-based compensation expense $ — $ 5,085 $ 5,085 Related income tax benefit — (1,220) (1,220) Net share-based compensation expense $ — $ 3,865 $ 3,865 Year Ended March 31, 2020 Stock Options Restricted Stock Total Share-based compensation expense $ — $ 5,074 $ 5,074 Related income tax benefit — (1,218) (1,218) Net share-based compensation expense $ — $ 3,856 $ 3,856 Year Ended March 31, 2019 Stock Options Restricted Stock Total Share-based compensation expense $ 19 $ 3,924 $ 3,943 Related income tax benefit (5) (942) (947) Net share-based compensation expense $ 14 $ 2,982 $ 2,996 Stock option activity, which represents outstanding CSWI awards resulting from conversion awards held by current and former Capital Southwest employees, was as follows: Year Ended March 31, 2021 Number of Shares Weighted Average Exercise Price Remaining Contractual Life (Years) Aggregate Intrinsic Value (in Millions) Outstanding at April 1, 2020 115,858 $ 25.30 Exercised (52,445) 25.40 Outstanding at March 31, 2021 (a) 63,413 $ 25.23 3.4 $ 7.0 Exercisable at March 31, 2021 (a) 63,413 $ 25.23 3.4 $ 7.0 (a) All remaining awards outstanding and exercisable at March 31, 2021 are held by employees of CSWI. Year Ended March 31, 2020 Number of Shares Weighted Average Exercise Price Remaining Contractual Life (Years) Aggregate Intrinsic Value (in Millions) Outstanding at April 1, 2019 231,717 $ 25.12 Exercised (115,859) 24.93 Outstanding at March 31, 2020 115,858 $ 25.30 4.1 $ 4.6 Exercisable at March 31, 2020 115,858 $ 25.30 4.1 $ 4.6 No options were granted during the years ended March 31, 2021, 2020 and 2019, and all stock options were vested and recognized as of March 31, 2021. The intrinsic value of options exercised during the years ended March 31, 2021, 2020 and 2019 was $2.5 million, $5.6 million and $0, respectively. Cash received for options exercised during the years ended March 31, 2021, 2020 and 2019 was $1.3 million, $2.9 million and $0, respectively, and the tax benefit received was $0.4 million, $1.2 million and $0, respectively. The total fair value of stock options vested during the years ended March 31, 2021, 2020 and 2019 was $0, $0 and $0.1 million, respectively. Restricted stock activity was as follows: Year Ended March 31, 2021 Number of Shares Weighted Average Grant Date Fair Value Outstanding at April 1, 2020 202,466 $ 60.78 Granted 119,751 75.88 Vested (124,985) 52.89 Canceled (24,316) 70.67 Outstanding at March 31, 2021 (a) 172,916 $ 70.50 (a) All remaining awards outstanding and exercisable at March 31, 2021 are held by employees of CSWI. During the restriction period, the holders of restricted shares are entitled to vote and receive dividends. Unvested restricted shares outstanding as of March 31, 2021 and 2020 included 82,728 and 93,249 shares (at target), respectively, with performance-based vesting provisions, having vesting ranges from 0-200% based on pre-defined performance targets with market conditions. Performance-based awards accrue dividend equivalents, which are settled upon (and to the extent of) vesting of the underlying award, and do not have the right to vote until vested. Performance-based awards are earned upon the achievement of objective performance targets and are payable in common shares. Compensation expense is calculated based on the fair market value as determined by a Monte Carlo simulation and is recognized over a 36-month cliff vesting period. We granted 34,245 and 31,758 awards with performance-based vesting provisions during the years ended March 31, 2021 and 2020, respectively, with a vesting range of 0-200%. |
Details of Certain Consolidated
Details of Certain Consolidated Balance Sheet Captions | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details of Certain Consolidated Balance Sheet Captions | DETAILS OF CERTAIN CONSOLIDATED BALANCE SHEET CAPTIONS Accounts receivable, net consists of the following (in thousands): March 31, 2021 2020 Accounts receivable trade $ 93,366 $ 72,601 Other receivables 4,244 3,449 97,610 76,050 Less: Allowance for doubtful accounts (915) (1,170) Accounts receivable, net $ 96,695 $ 74,880 Inventories, net consist of the following (in thousands): March 31, 2021 2020 Raw materials and supplies $ 27,416 $ 20,935 Work in process 6,365 6,076 Finished goods 72,452 33,771 Total inventories 106,233 60,782 Less: LIFO reserve (4,565) (4,816) Less: Obsolescence reserve (3,582) (2,213) Inventories, net $ 98,086 $ 53,753 Property, plant and equipment, net , consist of the following (in thousands): March 31, 2021 2020 Land and improvements $ 3,168 $ 3,106 Buildings and improvements 53,020 44,612 Plant, office and laboratory equipment 95,848 72,652 Construction in progress 3,462 8,163 155,498 128,533 Less: Accumulated depreciation (72,944) (71,355) Property, plant and equipment, net $ 82,554 $ 57,178 Depreciation of property, plant and equipment was $9.2 million, $7.9 million and $7.5 million for the years ended March 31, 2021, 2020 and 2019, respectively. Of these amounts, cost of revenues includes $7.1 million, $6.6 million and $6.1 million, respectively. Other assets consist of the following (in thousands): March 31, 2021 2020 Right-of-use lease assets $ 61,707 $ 16,383 Property held for investment (a) 967 6,819 Deferred income taxes 1,462 — Long-term tax indemnification assets 7,500 — Other 4,359 949 Other assets $ 75,995 $ 24,151 (a) As of March 31, 2021 and 2020 , $0.5 million and $5.9 million in assets were held for sale, respectively, in the "Elimination and Other" segment. Accrued and other current liabilities consist of the following (in thousands): March 31, 2021 2020 Compensation and related benefits $ 19,120 $ 18,666 Rebates and marketing agreements 9,031 6,409 Operating lease liabilities 8,063 3,056 Billings in excess of costs 1,463 2,892 Non-income taxes 1,593 750 Income taxes payable 3,755 529 Other accrued expenses 6,718 4,305 Accrued and other current liabilities $ 49,743 $ 36,607 Other long-term liabilities consists of the following (in thousands): March 31, 2021 2020 Operating lease liabilities $ 56,709 $ 15,179 Deferred income taxes 66,052 3,848 Tax Reserve 13,228 623 Other 736 1,492 Other long-term liabilities $ 136,725 $ 21,142 |
Long-Term Debt and Commitments
Long-Term Debt and Commitments | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Commitments | LONG-TERM DEBT AND COMMITMENTS Debt consists of the following (in thousands): March 31, 2021 2020 Revolving Credit Facility, interest rate of 2.11% and 2.24%, respectively $ 232,000 $ — Whitmore term loan, interest rate of 2.11% and 2.99%, respectively 10,337 10,898 Total debt 242,337 10,898 Less: Current portion (561) (561) Long-term debt $ 241,776 $ 10,337 Revolving Credit Facility Agreement On December 11, 2015, we entered into a five-year $250.0 million revolving credit facility agreement (“Revolving Credit Facility”), with an additional $50.0 million accordion feature, with JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto. The agreement was amended on September 15, 2017 to allow for multi-currency borrowing with a $125.0 million sublimit and to extend the maturity date to September 15, 2022. The interest rate, financial covenants and all other material provisions of the Revolving Credit Facility were not materially changed by this amendment. On December 1, 2020, the Company entered into an amendment of the Revolving Credit Facility to utilize the accordion feature, thus increasing the commitment from $250.0 million to $300.0 million, and hence eliminating the available incremental commitment by a corresponding amount. On March 10, 2021, the Revolving Credit Facility was amended to facilitate the formation and future operation of the joint venture discussed in Note 21. Borrowings under the Revolving Credit Facility bore interest at a rate of prime plus 1.00% or London Interbank Offered Rate ("LIBOR") plus 2.00%. We also paid a commitment fee of 0.30% for the unutilized portion of the Revolving Credit Facility. Interest and commitment fees are payable at least quarterly and the outstanding principal balance is due at the maturity date. The Revolving Credit Facility is secured by substantially all our assets. As of March 31, 2021 and 2020, we had $232.0 million and $0, respectively, in outstanding borrowings under the Facility, which resulted in a borrowing capacity of $68.0 million and $300.0 million, respectively, inclusive of the accordion feature. The Revolving Credit Facility contained certain customary restrictive covenants, including a requirement to maintain a minimum fixed charge coverage of ratio of 1.25 to 1.00 and a maximum leverage ratio of funded debt to EBITDA (as defined in the agreement) of 3.75 to 1.00. Covenant compliance is tested quarterly and we were in compliance with all covenants as of March 31, 2021. On May 18, 2021, we entered into a Second Amended and Restated Credit Agreement (the “Second Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) and collateral agent, and the lenders, issuing banks and swingline lender party thereto. CSW Industrials Holdings, LLC, a wholly-owned subsidiary of the Company (the “Borrower”), is the borrower under the Second Credit Agreement. The Second Credit Agreement provides for a $400.0 million revolving credit facility that contains a $25.0 million sublimit for the issuance of letters of credit and a $10.0 million sublimit for swingline loans. The Second Credit Agreement is scheduled to mature on May 18, 2026. Borrowings under the Second Credit Agreement bear interest, at the Borrower’s option, at either base rate or LIBOR, plus, in either case, an applicable margin based on the Company’s leverage ratio calculated on a quarterly basis. The base rate is described in the Second Credit Agreement as the highest of (i) the Federal funds effective rate plus 0.50%, (ii) the prime rate quoted by The Wall Street Journal, and (iii) the one-month LIBOR rate plus 1.00%. Borrowings under the Second Credit Agreement may be used for working capital and general corporate purposes, including, without limitation, for financing permitted acquisitions and fees and expenses incurred in connection therewith. The obligations of the Borrower under the Second Credit Agreement are guaranteed by the Company and all of its direct and indirect domestic subsidiaries. The Second Credit Agreement is secured by a first priority lien on all tangible and intangible assets and stock issued by the Borrower and its domestic subsidiaries, subject to specified exceptions, and 65% of the voting equity interests in its first-tier foreign subsidiaries. The financial covenants contained in the Second Credit Agreement require the maintenance of a maximum Leverage Ratio of 3.00 to 1.00, subject to a temporary increase to 3.75 to 1.00 for 18 months following the consummation of permitted acquisitions with consideration in excess of certain threshold amounts set forth in the Second Credit Agreement, and the maintenance of a minimum Fixed Charge Coverage Ratio of 1.25 to 1.00, the calculations and terms of which are defined in the Second Credit Agreement. The Second Credit Agreement also contains (i) affirmative and negative covenants which are customary for similar credit agreements, including, without limitation, limitations on the Company, the Borrower and its subsidiaries with respect to indebtedness, liens, investments, distributions, mergers and acquisitions, disposition of assets and transactions with affiliates, and (ii) customary events of default. Whitmore Term Loan As of March 31, 2021, Whitmore Manufacturing, LLC (one of our wholly-owned operating subsidiaries) maintained a secured term loan related to the warehouse, corporate office building and remodel of the existing manufacturing and R&D facility. The term loan matures on July 31, 2029, with payments of $140,000 due each quarter. Borrowings under the term loan bear interest at a variable annual rate equal to one-month LIBOR plus 2.0%. As of March 31, 2021 and 2020, Whitmore had $10.3 million and $10.9 million, respectively, in outstanding borrowings under the term loan. Interest payments under the Whitmore term loan are hedged under an interest rate swap agreement as described in Note 9. Future Minimum Debt Payments Future minimum debt payments are as follows for years ending March 31 (in thousands): 2022 $ 561 2023 232,561 2024 561 2025 561 2026 561 Thereafter 7,532 Total $ 242,337 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES We have operating leases for manufacturing facilities, offices, warehouses, vehicles and certain equipment. Our leases have remaining lease terms of 1 year to 27 years, some of which include escalation clauses and/or options to extend or terminate the leases. In October 2019, we terminated two operating leases and paid an early lease termination fee of $0.5 million. The loss on early termination is recorded in other income (expense), net as the leased properties were not used in our operations. We do not currently have any financing lease arrangements. (in thousands) March 31, 2021 March 31, 2020 Components of Operating Lease Expenses Operating lease expense (a) $ 5,243 $ 3,524 Short-term lease expense (a) 377 225 Total operating lease expense $ 5,620 $ 3,749 (a) Included in cost of revenues and selling, general and administrative expense (in thousands) March 31, 2021 March 31, 2021 Operating Lease Assets and Liabilities ROU assets, net (a) $ 61,707 $ 16,383 Short-term lease liabilities (b) $ 8,063 $ 3,056 Long-term lease liabilities (b) 56,709 15,179 Total operating lease liabilities $ 64,772 $ 18,235 (a) Included in other assets (b) Included in accrued and other current liabilities and other long-term liabilities, as applicable (in thousands) March 31, 2021 March 31, 2021 Supplemental Cash Flow Cash paid for amounts included in the measurement of operating lease liabilities (a) $ 5,578 $ 3,824 ROU assets obtained in exchange for new operating lease obligations 114 3,187 (a) Included in our condensed consolidated statement of cash flows, operating activities in accounts payable and other current liabilities Other Information for Operating Leases Weighted average remaining lease term (in years) 8.2 6.2 Weighted average discount rate (percent) 2.6 % 4.3 % Maturities of operating lease liabilities were as follows (in thousands): (in thousands) 2022 $ 9,551 2023 9,009 2024 8,910 2025 8,785 2026 8,786 Thereafter 26,518 Total lease liabilities $ 71,559 Less: Imputed interest (6,787) Present value of lease liabilities $ 64,772 |
Derivative Instruments and Hedg
Derivative Instruments and Hedge Accounting | 12 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedge Accounting | DERIVATIVE INSTRUMENTS AND HEDGE ACCOUNTING We enter into interest rate swap agreements to hedge exposure to floating interest rates on certain portions of our debt. As of March 31, 2021 and 2020, we had $10.3 million and $10.9 million, respectively, of notional amount in outstanding designated interest rate swaps with third parties. All interest rate swaps are highly effective. At March 31, 2021, the maximum remaining length of any interest rate swap contract in place was approximately 8.3 years. The fair value of interest rate swaps designated as hedging instruments are summarized below (in thousands): March 31, 2021 2020 Current derivative liabilities $ 280 $ 271 Non-current derivative liabilities 736 1,492 The impact of changes in the fair value of interest rate swaps is included in Note 17. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted earnings per share for the years ended March 31, 2021, 2020 and 2019: March 31, (amounts in thousands, except per share data) 2021 2020 2019 Income from continuing operations $ 40,288 $ 44,817 $ 46,052 Income (loss) from discontinued operations, net of tax — 1,061 (478) Net income $ 40,288 $ 45,878 $ 45,574 Weighted average shares: Common stock 14,919 14,928 15,257 Participating securities 96 111 157 Denominator for basic earnings per common share 15,015 15,039 15,414 Potentially dilutive securities 111 167 118 Denominator for diluted earnings per common share 15,126 15,206 15,532 Basic earnings (loss) per common share: Continuing operations $ 2.68 $ 2.98 $ 2.99 Discontinued operations — 0.07 (0.03) Net income $ 2.68 $ 3.05 $ 2.96 Diluted earnings (loss) per common share: Continuing operations $ 2.66 $ 2.95 $ 2.96 Discontinued operations — 0.07 (0.03) Net income $ 2.66 $ 3.02 $ 2.93 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS' EQUITY Share Repurchase Programs On November 11, 2016, we announced that our Board of Directors authorized a program to repurchase up to $35.0 million of our common stock over a two-year time period. As of October 31, 2018, a total of 656,203 shares had been repurchased for an aggregate amount of $35.0 million, and the program was completed. During the year ended March 31, 2019, we repurchased 629,659 shares of our common stock under this program for an aggregate amount of $33.8 million. On November 7, 2018, we announced that our Board of Directors authorized a program to repurchase up to $75.0 million of our common stock over a two-year time period. On October 30, 2020, we announced that our Board of Directors authorized a new program to repurchase up to $100.0 million of our common stock, which replaced the previously announced $75.0 million program. Under the newly-authorized program, shares may be repurchased from time to time in the open market or in privately negotiated transactions. Repurchases will be made at our discretion, based on ongoing assessments of the capital needs of the business, the market price of our common stock and general market conditions. Our Board of Directors has established an expiration of December 31, 2022 for completion of the new repurchase program; however, the program may be limited or terminated at any time at our discretion without notice. We repurchased 115,151 and 393,836 shares under the prior $75.0 million program during the years ended March 31, 2021 and 2020, respectively, for an aggregate amount of $7.3 million and $26.9 million, respectively. No shares were repurchased under the $100.0 million program during the year ended March 31, 2021. Dividends On April 4, 2019, we announced we had commenced a dividend program and that our Board of Directors approved a regular quarterly dividend of $0.135 per share. Total dividends of $8.1 million and $8.1 million were paid during the years ended March 31, 2021 and 2020, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTSThe fair value of interest rate swaps discussed in Note 9 are determined using Level II inputs. The carrying value of our debt, included in Note 7, approximates fair value as it bears interest at floating rates. The carrying amounts of other financial instruments (i.e., cash and cash equivalents, accounts receivable, net, accounts payable) approximated their fair values at March 31, 2021 and 2020 due to their short-term nature. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS We had a frozen qualified defined benefit pension plan (the “Qualified Plan”) that covered certain of our U.S. employees. The Qualified Plan was previously closed to employees hired or re-hired on or after January 1, 2015, and it was amended to freeze benefit accruals and to modify certain ancillary benefits effective as of September 30, 2015. Benefits were based on years of service and an average of the highest five We maintain a frozen unfunded retirement restoration plan (the “Restoration Plan”) that is a non-qualified plan providing for the payment to participating employees, upon retirement, of the difference between the maximum annual payment permissible under the Qualified Plan pursuant to federal limitations and the amount that would otherwise have been payable under the Qualified Plan. As with the Qualified Plan, the Restoration Plan was closed to new participants on January 1, 2015 and amended to freeze benefit accruals and to modify certain ancillary benefits effective as of September 30, 2015. We maintain a registered defined benefit pension plan (the "Canadian Plan") that covers all of our employees based at our facility in Alberta, Canada. Employees are eligible for membership in the plan following the completion of one year of employment. Benefits accrue to eligible employees based on years of service and an average of the highest 60 consecutive months of compensation during the last 10 consecutive years of employment. Benefit eligibility typically occurs upon the first day of the month following an eligible employee’s reaching age 65, and plan benefits are typically paid monthly in advance for the lifetime of the participant. The plans described above (collectively, the "Plans") are presented in aggregate as the impact of the Restoration Plan and Canadian Plan to our consolidated financial position and results of operations is not material. The following are assumptions related to the Plans: March 31, 2021 2020 2019 Assumptions used to determine benefit obligations: Discount rate 3.3 % 3.6 % 4.0 % Rate of compensation increases (a) 3.0 % 3.0 % 3.0 % Assumptions used to determine net pension expense: Discount rate 3.6 % 4.0 % 4.0 % Expected return on plan assets 4.8 % 4.8 % 4.6 % Rate of compensation increases (a) 3.0 % 3.0 % 3.0 % (a) Rate of compensation increase is no longer relevant to the Restoration Plan due to freezing benefit accruals. The rate of compensation increase on the Canadian Plan is $3.0%. The factors used in determination of these assumptions are described in Note 1. Net pension (benefit) expense for the Plans was: Year Ended March 31, (in thousands) 2021 2020 2019 Service cost – benefits earned during the year $ 40 $ 71 $ 76 Interest cost on projected benefit obligation 144 1,136 2,113 Expected return on assets (96) (1,361) (2,656) Net amortization and deferral 74 56 47 Pension plan termination (a) — 6,472 — Net pension expense (benefit) $ 162 $ 6,374 $ (420) (a) Reflects impact of the termination of the Qualified Plan. The estimated prior service costs and the estimated net loss for the Plans that will be amortized from accumulated other comprehensive loss into pension expense in the year ended March 31, 2022 is $0.1 million. The following is a summary of the changes in the Plans' pension obligations: March 31, (in thousands) 2021 2020 Benefit obligation at beginning of year $ 3,880 $ 53,993 Service cost 40 71 Interest cost 144 1,136 Actuarial gain 212 5,103 Benefits paid (265) (1,697) Pension plan termination (a) — (54,605) Currency translation impact 280 (121) Benefit obligation at end of year $ 4,291 $ 3,880 Accumulated benefit obligation $ 3,990 $ 3,690 (a) Reflects impact of the termination of the Qualified Plan. The following is a reconciliation of the Plans' assets: March 31, (in thousands) 2021 2020 Fair value of plan assets at beginning of year $ 1,898 $ 55,009 Actual return on plan assets 441 3,093 Benefits paid (159) (1,591) Company contributions 69 93 Pension plan termination (a) — (54,605) Currency translation impact 243 (101) Fair value of plan assets at end of year $ 2,492 $ 1,898 (a) Reflects impact of the termination of the Qualified Plan. We contributed $0.1 million to the Canadian Plan in the year ended March 31, 2021 and estimate that our contribution in the year ending March 31, 2022 will be $0.1 million. The following summarizes the net pension asset for the Plans: March 31, (in thousands) 2021 2020 Plan assets at fair value $ 2,492 $ 1,898 Benefit obligation (4,291) (3,880) Unfunded status $ (1,799) $ (1,982) The following summarizes amounts recognized in the balance sheets for the Plans: March 31, (in thousands) 2021 2020 Current liabilities $ (104) $ (103) Noncurrent liabilities (1,695) (1,879) Unfunded status $ (1,799) $ (1,982) The following table presents the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in the benefit obligation: March 31, (in thousands) 2021 2020 Accumulated other comprehensive loss at beginning of year $ (871) $ (3,466) Amortization of net loss 62 47 Amortization of prior service benefit (cost) (31) 21 Pension plan termination (a) — 2,516 Net gain (loss) arising during the year 96 (17) Currency translation impact (55) 28 Accumulated other comprehensive loss at end of year $ (799) $ (871) (a) Reflects impact of the termination of the Qualified Plan, including changes in assumptions resulting from the termination. Amounts recorded in accumulated other comprehensive loss consist of: March 31, (in thousands) 2021 2020 Net prior service cost $ 27 $ 56 Net loss (826) (927) Accumulated other comprehensive loss $ (799) $ (871) The Canadian Plan assets, which account for 100% of total assets, are invested in other investments, as described below. The actual asset allocations for the Plans were as follows: March 31, Asset category 2021 2020 Equity securities — % — % Fixed income securities — % — % Other 100 % 100 % Cash and cash equivalents — % — % Total 100 % 100 % The Canadian Plan has investments of $2.5 million in a mutual fund that aims to provide a return derived from both income and capital appreciation by investing in a diversified portfolio of Canadian and foreign equity as well as fixed-income securities. This mutual fund is considered to have Level II inputs in the fair value hierarchy. The following table summarizes the expected cash benefit payments for the Plans for fiscal years ending March 31 (in millions): 2022 $ 0.2 2023 0.2 2024 0.2 2025 0.2 2026 0.2 Thereafter 1.1 Defined Contribution Plan Effective October 1, 2015, we began to sponsor a defined contribution plan covering substantially all of our U.S. employees. Employees may contribute to this plan, and these contributions are matched 100% by us up to 6.0% of eligible earnings. We also contribute an additional percentage of eligible earnings to employees regardless of their level of participation in the plan, which is discretionary and subject to adjustment based on profitability. We made discretionary contributions of $3.9 million and $4.0 million during the years ended March 31, 2021 and 2020, respectively. Employee Stock Ownership Plan We sponsor a qualified, non-leveraged employee stock ownership plan (“ESOP”) in which domestic employees are eligible to participate following the completion of one year of service. The ESOP provides annual discretionary contributions of up to the maximum amount that is deductible under the Internal Revenue Code. Contributions to the ESOP are invested in our common stock. A participant’s interest in contributions to the ESOP fully vests after three years of credited service or upon retirement, permanent disability (each, as defined in the plan document) or death. We recorded total contributions to the ESOP of $3.6 million, $3.2 million and $1.6 million during the years ended March 31, 2021, 2020 and 2019, respectively, based on performance in the prior year. During the year ended March 31, 2021, $2.6 million was recorded to expense based on performance in the year ended March 31, 2021 and is expected to be contributed to the ESOP during the year ending March 31, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income from continuing operations before income taxes was comprised of the following (in thousands): Year Ended March 31, 2021 2020 2019 U.S. Federal $ 48,392 $ 53,946 $ 53,375 Foreign 2,726 3,655 8,066 Income before income taxes $ 51,118 $ 57,601 $ 61,441 Income tax expense consists of the following (in thousands): For the year ended: Current Deferred Total March 31, 2021 U.S. Federal $ 6,773 $ (1,150) $ 5,623 State and local 3,561 (500) 3,061 Foreign 1,641 505 2,146 Provision for income taxes $ 11,975 $ (1,145) $ 10,830 March 31, 2020 U.S. Federal $ 8,466 $ 673 $ 9,139 State and local 1,999 (100) 1,899 Foreign 1,968 (222) 1,746 Provision for income taxes $ 12,433 $ 351 $ 12,784 March 31, 2019 U.S. Federal $ 10,298 $ 644 $ 10,942 State and local 2,729 (280) 2,449 Foreign 1,881 117 1998 Provision for income taxes $ 14,908 $ 481 $ 15,389 Income tax expense differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21.0% to income from continuing operations before income taxes as a result of the following (in thousands): Year Ended March 31, 2021 2020 2019 Computed tax expense at statutory rate $ 10,735 $ 12,096 $ 12,903 Increase (reduction) in income taxes resulting from: State and local income taxes, net of federal benefits 2,419 1,943 2,222 Amended return items (pension and foreign withholding) — 975 — IRS audit adjustments — 502 — GILTI and Section 250 Deduction 440 124 749 Foreign rate differential 85 84 302 Uncertain tax positions (4,717) (1,615) 244 Other permanent differences 1,438 (546) (276) Foreign tax credits (554) (479) (1,123) Repatriation tax, net of tax credit 822 — — Other, net 162 (300) 368 Provision for income taxes continuing operations $ 10,830 $ 12,784 $ 15,389 The effective tax rates for the years ended March 31, 2021, 2020 and 2019 were 21.2%, 22.2% and 25.0%, respectively. As compared with the statutory rate for the year ended March 31, 2021, the provision for income taxes was primarily impacted by the release of uncertain tax positions, which decreased the provision by $4.7 million and the effective rate by 9.2%, offset by the state tax expense (net of federal benefits), which increased the provision by $2.4 million and the effective rate by 4.7% and additional non-deductible expenses, which increased the provision by $1.4 million and the effective rate by 2.8%. As compared with the statutory rate for the year ended March 31, 2020, the provision for income taxes was primarily impacted by the state tax expense, which increased the provision by $1.9 million and the effective rate by 3.4%, and the release of uncertain tax positions, which decreased the provision by $1.6 million and the effective rate by 2.8%. Other items impacting the effective tax rate for the prior years include adjustments for the closing of the IRS audit for tax year ended March 31, 2017, foreign withholding tax paid during the tax year ended March 31, 2020 for prior year periods, and the reversal of a pension adjustment related to a former wholly-owned subsidiary for the tax period ended September 30, 2015, in which the statute of limitations expired. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31 are presented below (in thousands): March 31, 2021 2020 Deferred tax assets: Operating lease liabilities $ 14,680 $ 4,380 Accrued compensation 3,878 3,997 Impairment 386 386 Pension and other employee benefits 313 362 Inventory reserves 1,330 197 Net operating loss carryforwards 145 145 Accrued expenses 244 141 Foreign tax credit carry-forward 130 40 State R&D credit carry-forward 120 — Transaction Costs 630 — Other, net 1,455 934 Deferred tax assets 23,311 10,582 Valuation allowance (145) (145) Deferred tax assets, net of valuation allowance 23,166 10,437 Deferred tax liabilities: Goodwill and intangible assets (65,070) (5,740) Property, plant and equipment (7,816) (4,444) Operating lease - ROU assets (13,631) (3,943) Repatriation reserve (942) — Other, net (297) (158) Deferred tax liabilities (87,756) (14,285) Net deferred tax liabilities $ (64,590) $ (3,848) As the assets and liabilities of our discontinued Coatings business discussed in Note 3 reside in a disregarded entity for tax purposes, the tax attributes associated with the operations of our Coatings business ultimately flow through to our corporate parent, which files a consolidated federal return. Therefore, corresponding deferred tax assets or liabilities expected to be substantially realized by our corporate parent have been reflected above as assets of our continuing operations and have not been allocated to the balances of assets or liabilities of our discontinued operations disclosed in Note 3. The statement of cash flows reflects the impact of the deferred taxes related to the disregarded entity in a line captioned “Realized (unrealized) deferred taxes." As of both March 31, 2021 and 2020, we had no tax effected net operating loss carryforwards, net of valuation allowances. Net operating loss carryforwards will expire in periods beyond the next 5 years. Certain earnings of foreign subsidiaries continue to be permanently invested outside of the United States. The earnings related to these foreign subsidiaries for which taxes are not being provided are $17 million. The calculation of the taxes on these undistributed earnings are impracticable because it is unknown how these earnings would be distributed. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): March 31, 2021 2020 Balance at beginning of year $ 498 $ 1,910 Increases related to prior year tax positions 13,895 — Decreases related to prior year tax positions (4,215) (1,304) Increases related to current year tax positions 34 64 Settlement — (172) Balance at end of year $ 10,212 $ 498 We recorded total tax contingency reserves of $17.3 million, including unrecognized tax benefit of $13.6 million, accrued interest and penalty of $1.4 million and $2.3 million, respectively, through purchase accounting as a result of the TRUaire acquisition discussed in Note 2. During the three months ended March 31, 2021, a tax benefit of $5.3 million, including release of accrued interest ($0.6 million) and penalty ($0.6 million), was recognized as a result of receiving the audit closing letter from Internal Revenue Service related to calendar 2017, a pre-acquisition tax year. For the year ended March 31, 2021, the interest and penalties related to the uncertain tax position resulted in a net decrease of $0.9 million in income tax expense. We accrued interest and penalties on uncertain tax positions of $1.0 million and $1.8 million, respectively, as of the year ended March 31, 2021. We accrued an immaterial interest and penalties during the year ended March 31, 2020. We recognize accrued interest and penalties related to unrecognized tax benefits within our income tax provision. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSWe had no related party transactions in the three years ended March 31, 2021, 2020 and 2019. |
Contingencies
Contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIESFrom time to time, we are involved in various claims and legal actions which arise in the ordinary course of business. There are not any matters pending that we currently believe are reasonably possible of having a material impact to our business, consolidated financial position, results of operations or cash flows. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) The following table provides an analysis of the changes in accumulated other comprehensive income (loss) (in thousands). March 31, 2021 2020 Currency translation adjustments: Balance at beginning of period $ (9,185) $ (6,869) Foreign currency translation adjustments 4,791 (2,316) Balance at end of period $ (4,394) $ (9,185) Interest rate swaps: Balance at beginning of period $ (1,390) $ (394) Unrealized losses (gain), net of taxes of $(96) and $284, respectively (a) 362 (1,069) Reclassification of losses included in interest expense, net of taxes of $(60) and $(19), respectively 225 73 Other comprehensive loss 587 (996) Balance at end of period $ (803) $ (1,390) Defined benefit plans: Balance at beginning of period $ (871) $ (3,466) Amortization of net prior service cost (benefit), net of taxes of $8 and $(6), respectively (b) (31) 21 Amortization of net loss, net of taxes of $(16) and $(12), respectively (b) 62 47 Net loss (gain) arising during the year, net of taxes of $(26) and $5, respectively 96 (17) Pension plan termination, net of taxes of $0 and $(669), respectively — 2,516 Currency translation impact (55) 28 Other comprehensive loss 72 2,595 Balance at end of period $ (799) $ (871) (a) Unrealized gains are reclassified to earnings as underlying cash interest payments are made. We expect to recognize a loss of less than $0.2 million, net of deferred taxes, over the next twelve months related to a designated cash flow hedge based on its fair value as of March 31, 2021. (b) Amortization of prior service costs and actuarial losses out of accumulated other comprehensive loss are included in the computation of net periodic pension expense. See Note 13 for additional information. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION We conduct our operations in two reportable segments: Industrial Products and Specialty Chemicals. With the adoption of ASC Topic 606, we have concluded that the disaggregation of revenues that would be most useful in understanding the nature, timing and extent of revenue recognition is the breakout of build-to-order and book-and-ship, as defined below: Build-to-order products are architecturally-specified building products generally sold into the construction industry. Revenue generated from sales of products under build-to-order transactions are currently reflected in the results of our Industrial Products segment. Occasionally, our built-to-order business lines enter into arrangements for the delivery of a customer-specified product and the provision of installation services. These orders are generally negotiated as a package and are commonly subject to retainage by the customer, which means the final 10% of the transaction price, when applicable, is not collectible until the overall construction project into which our products are incorporated is complete. The lead times for transfer to the customer can be up to 12 weeks. Revenue for goods is recognized at a point in time, but installation services are recognized over time as those services are performed. Installation services represented approximately 3% of total consolidated revenue for the year ended March 31, 2021. Book-and-ship products are sold across all of our end markets. Revenue generated from sales of products under book-and-ship transactions have historically been presented in both Industrial Products and Specialty Chemicals. These sales are typically priced on a product-by-product basis using price lists provided to our customers. The lead times for transfer to the customer is usually one week or less as these items are generally built to stock. Revenue for products sold under these arrangements is recognized at a point in time. Disaggregation of revenues reconciled to our reportable segments is as follows (in thousands): Year Ended March 31, 2021 Industrial Products Specialty Chemicals Total Build-to-order $ 87,057 $ — $ 87,057 Book-and-ship 202,359 129,789 332,148 Net revenues $ 289,416 $ 129,789 $ 419,205 Year Ended March 31, 2020 Industrial Products Specialty Chemicals Total Build-to-order $ 82,357 $ — $ 82,357 Book-and-ship 152,538 150,976 303,514 Net revenues $ 234,895 $ 150,976 $ 385,871 Year Ended March 31, 2019 Industrial Products Specialty Chemicals Total Build-to-order $ 69,564 $ — $ 69,564 Book-and-ship 136,367 144,224 280,591 Net revenues $ 205,931 $ 144,224 $ 350,155 Contract liabilities, which are included in accrued and other current liabilities in our consolidated balance sheets were as follows (in thousands): Balance at April 1, 2020 $ 2,892 Revenue recognized (2,612) New contracts and revenue added to existing contracts 1,183 Balance at March 31, 2021 $ 1,463 |
Segments
Segments | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS As described in Note 1, we conduct our operations through two business segments: • Industrial Products; and • Specialty Chemicals. The following is a summary of the financial information of our reporting segments reconciled to the amounts reported in the consolidated financial statements (in thousands). Historical segment information has been retrospectively adjusted to reflect the decision to divest the Coatings business. Year Ended March 31, 2021 (in thousands) Industrial Products Specialty Chemicals Subtotal - Reportable Segments Eliminations and Other Total Revenues, net $ 289,416 $ 129,789 $ 419,205 $ — $ 419,205 Operating income 55,641 18,263 73,904 (14,434) 59,470 Depreciation and amortization 15,255 6,918 22,173 864 23,037 Year Ended March 31, 2020 (in thousands) Industrial Products Specialty Chemicals Subtotal - Reportable Segments Eliminations and Other Total Revenues, net $ 234,895 $ 150,976 $ 385,871 $ — $ 385,871 Operating income 55,725 24,691 80,416 (14,349) 66,067 Depreciation and amortization 6,573 7,569 14,142 702 14,844 In the fiscal quarter ended March 31, 2020, we recorded an impairment of $1.0 million on one of our unamortized trademarks in our Specialty Chemicals segment. Year Ended March 31, 2019 (in thousands) Industrial Products Specialty Chemicals Subtotal - Reportable Segments Eliminations and Other Total Revenues, net $ 205,931 $ 144,224 $ 350,155 $ — $ 350,155 Operating income 48,817 23,930 72,747 (12,307) 60,440 Depreciation and amortization 5,871 7,281 13,152 684 13,836 TOTAL ASSETS (Amounts in thousands) Industrial Products Specialty Chemicals Subtotal - Reportable Segments Eliminations and Other Total March 31, 2021 $ 741,726 $ 119,992 $ 861,718 $ 13,239 $ 874,957 March 31, 2020 205,518 138,855 344,373 24,872 369,245 March 31, 2019 187,680 137,587 325,267 27,365 352,632 Geographic information – We attribute revenues to different geographic areas based on the destination of the product or service delivery. Long-lived assets are classified based on the geographic area in which the assets are located and exclude deferred taxes. No individual country, except for the U.S., accounted for more than 10% of consolidated net revenues or total long-lived assets. Revenues and long-lived assets by geographic area are as follows (in thousands, except percent data): Year Ended March 31, 2021 2020 2019 U.S. $ 367,169 87.6 % $ 323,000 83.7 % $ 286,545 81.8 % Non-U.S. (a) 52,036 12.4 % 62,871 16.3 % 63,610 18.2 % Revenues, net $ 419,205 100.0 % $ 385,871 100.0 % $ 350,155 100.0 % (a) No individual country within this group represents 10% or more of consolidated totals for any period presented. Year Ended March 31, 2021 2020 2019 U.S. $ 617,258 93.5 % $ 196,679 89.7 % $ 176,935 87.9 % Non-U.S. 43,146 6.5 % 22,521 10.3 % 24,430 12.1 % Long-lived assets (a) $ 660,404 100.0 % $ 219,200 100.0 % $ 201,365 100.0 % (a) Long-lived assets consist primarily of property, plant and equipment, intangible assets, goodwill and other assets, net of deferred taxes. Major customer information – We have a large number of customers across our locations and do not believe that we have sales to any individual customer that represented 10% or more of consolidated net revenues for any of the fiscal years presented. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Mar. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following presents a summary of the unaudited quarterly data for the years ended March 31, 2021 and 2020 (amounts in millions, except per share data): Year Ended March 31, 2021 Quarter 4th 3rd 2nd 1st Revenues, net $ 133.4 $ 89.9 $ 104.9 $ 91.0 Gross profit 54.0 39.3 48.7 42.8 Income before income taxes 10.9 3.1 21.5 15.6 Income from continuing operations 9.6 2.3 16.4 12.0 Loss from discontinued operations, net — — — — Net income 9.6 2.3 16.4 12.0 Basic earnings per common share (a): Continuing operations $ 0.62 $ 0.16 $ 1.11 $ 0.81 Discontinued operations — — — — Net income $ 0.62 $ 0.16 $ 1.11 $ 0.81 Diluted earnings per common share (a): Continuing operations $ 0.61 $ 0.16 $ 1.10 $ 0.81 Discontinued operations — — — — Net income $ 0.61 $ 0.16 $ 1.10 $ 0.81 Year Ended March 31, 2020 Quarter 4th 3rd 2nd 1st Revenues, net $ 98.6 $ 83.7 $ 101.3 $ 102.3 Gross profit 44.8 37.7 47.4 47.2 Income before income taxes 16.0 9.4 12.5 19.7 Income from continuing operations 13.4 7.3 8.8 15.3 Income (loss) from discontinued operations, net 1.2 — — (0.1) Net income 14.6 7.3 8.8 15.2 Basic earnings (loss) per common share (a): Continuing operations $ 0.89 $ 0.48 $ 0.59 $ 1.02 Discontinued operations 0.08 — (0.01) (0.01) Net income $ 0.97 $ 0.48 $ 0.58 $ 1.01 Diluted earnings (loss) per common share (a): Continuing operations $ 0.88 $ 0.48 $ 0.58 $ 1.01 Discontinued operations 0.08 — — (0.01) Net income $ 0.96 $ 0.48 $ 0.58 $ 1.00 (a) Net earnings per common share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 1, 2021, Whitmore Manufacturing, LLC (“Whitmore”), a wholly-owned subsidiary of CSWI, completed the formation of the previously announced joint venture with Pennzoil-Quaker State Company dba SOPUS products (“Shell”), a wholly-owned subsidiary of Shell Oil Company that comprises Shell’s U.S. lubricants business. The formation was consummated through a transaction in which Whitmore sold to Shell a 50% interest in a wholly-owned subsidiary (containing certain existing operating assets) in exchange for consideration of $13.7 million from Shell in the form of cash and intangible assets. On May 18, 2021, the Company entered into a Second Amended and Restated Credit Agreement that provides for a five-year $400.0 million Revolving Credit Facility with JPMorgan Chase Bank, N.A., as administrative agent, and other lenders party hereto. Refer to Note 7 for additional information. |
Organization and Operations a_2
Organization and Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation – The consolidated financial position, results of operations and cash flows included in this Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (“Annual Report”) include all revenues, costs, assets and liabilities directly attributable to CSWI and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”). |
Use of Estimates | Use of Estimates – The process of preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses. We believe our estimates and assumptions are reasonable; however, actual results may differ materially from such estimates. The most significant estimates and assumptions are used in determining: • Timing and amount of revenue recognition; • Deferred taxes and tax reserves; and • Valuation of goodwill and indefinite-lived intangible assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents – We consider all highly liquid instruments purchased with original maturities of three months or less and money market accounts to be cash equivalents. We maintain our cash and cash equivalents at financial institutions for which the combined account balances in individual institutions may exceed insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of insurance coverage. |
Accounts Receivable, Allowance for Doubtful Accounts and Credit Risk | Accounts Receivable, Allowance for Doubtful Accounts and Credit Risk – Trade accounts receivables are recorded at the invoiced amounts and do not bear interest. We record an allowance for credit losses on trade receivables that, when deducted from the gross trade receivables balance, presents the net amount expected to be collected. We estimate the allowance based on an aging schedule and according to historical losses as determined from our billings and collections history. This may be adjusted after consideration of customer-specific factors such as financial difficulties, liquidity issues or insolvency, as well as both current and forecasted macroeconomic conditions as of the reporting date. We adjust the allowance and recognize credit losses in the income statement each period. Trade receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible. Subsequent recoveries of amounts previously written off are reflected as a reduction to periodic credit losses in the income statement. Our allowance for expected credit losses for short-term receivables as of March 31, 2021 was $0.9 million, compared to $1.2 million as of March 31, 2020. The activity for the year ended March 31, 2021 included write off of trade receivables of $0.7 million for current period adjustments. Credit risks are mitigated by the diversity of our customer base across many different industries and by performing creditworthiness analyses on our customers. Additionally, we mitigate credit risk through letters of credit and advance payments received from our customers. We do not believe that we have any significant concentrations of credit risk. |
Inventories and Related Reserves | Inventories and Related Reserves – Inventories are stated at the lower of cost or net realizable value and include raw materials, supplies, direct labor and manufacturing overhead. Cost is determined using the last-in, first-out (“LIFO”) method for valuing inventories at most of our domestic operations. Our foreign subsidiaries and some domestic operations use either the first-in, first out method or the weighted average cost method to value inventory. Foreign inventories represent approximately 12% and 6% of total inventories as of March 31, 2021 and 2020, respectively. Reserves are provided for slow-moving or excess and obsolete inventory based on the difference between the cost of the inventory and its net realizable value and by reviewing quantities on hand in comparison with historical and expected future usage. In estimating the reserve for excess or slow-moving inventory, management considers factors such as product aging, current and future customer demand and market conditions. |
Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the individual assets. When property, plant and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and the resulting gain or loss is included in income from operations for the period. Generally, the estimated useful lives of assets are: Land improvements 5 to 40 years Buildings and improvements 7 to 40 years Plant, office and lab equipment 5 to 10 years We review property, plant and equipment for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. |
Valuation of Goodwill | Valuation of Goodwill and Intangible Assets – The value of goodwill is tested for impairment at least annually as of January 31 or whenever events or circumstances indicate such assets may be impaired. The identification of our reporting units began at the operating segment level and considered whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment based on certain conditions. These conditions included, among other factors, (i) the extent to which a component represents a business and (ii) the aggregation of economically similar components within the operating segments. Other factors that were considered in determining whether the aggregation of components was appropriate included the similarity of the nature of the products and services, the nature of the production processes, the methods of distribution and the types of industries served. Accounting Standards Codification ("ASC") 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. We bypassed the qualitative assessment and proceeded directly to the quantitative test. If the carrying value of a reporting unit exceeds it fair value, the goodwill of that reporting unit is impaired and an impairment loss is recorded equal to the excess of the carrying value over its fair value. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit base on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash |
Intangible Assets | We have intangible assets consisting of patents, trademarks, customer lists and non-compete agreements. Definite-lived intangible assets are assessed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. In addition, we have other trademarks and license agreements that are considered to have indefinite lives. We test indefinite-lived intangible assets for impairment at least annually as of January 31 or whenever events or circumstances indicate that the carrying amount may not be recoverable. Significant assumptions used in the impairment test include the discount rate, royalty rate, future sales projections and terminal value growth rate. These inputs are considered non-recurring Level III inputs within the fair value hierarchy. An impairment loss would be recognized when estimated future cash flows are less than their carrying amount. |
Property Held for Investment | Property Held for Investment – One of our non-operating subsidiaries holds and manages a non-operating property, which is valued at lower of cost or market and disposed of as opportunities arise to maximize value. |
Deferred Loan Costs | Deferred Loan Costs – Deferred loan costs related to our credit facility, which are reported in other assets and consist of fees and other expenses associated with debt financing, are amortized over the term of the associated debt using the effective interest method. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments – Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our long-term debt, as discussed in Note 7. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels, as defined by Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. An asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Hierarchical levels are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
Leases | Leases – We determine if a contract is or contains a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. Right-of-Use (“ROU”) assets and lease liabilities are initially recognized at the commencement date based on the present value of remaining lease payments over the lease term calculated using our incremental borrowing rate, unless the implicit rate is readily determinable. ROU assets represent the right to use an underlying asset for the lease term, including any upfront lease payments made and excluding lease incentives. Lease liabilities represent the obligation to make future lease payments throughout the lease term. As most of our operating leases do not provide an implicit rate, we apply our incremental borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing rate is determined based on information available at the commencement date of the lease. The lea se term includes renewal periods when we are reasonably certain to exercise the option to renew. The ROU asset is amortized over the expected lease term. Lease and non-lease components, when present on our leases, are accounted for separately. Leases with an initial term of 12 months or less are excluded from recognition in the balance sheet, and the expense for these short-term |
Derivative Instruments and Hedge Accounting | Derivative Instruments and Hedge Accounting – We do not use derivative instruments for trading or speculative purposes. We enter into interest rate swap agreements for the purpose of hedging our cash flow exposure to floating interest rates on certain portions of our debt. All derivative instruments are recognized on the balance sheet at their fair values. Changes in the fair value of a designated interest rate swap are recorded in other comprehensive loss until earnings are affected by the underlying hedged item. Any ineffective portion of the gain or loss is immediately recognized in earnings. Upon settlement, realized gains and losses are recognized in interest expense in the consolidated statements of operations. We discontinue hedge accounting when (1) we deem the hedge to be ineffective and determine that the designation of the derivative as a hedging instrument is no longer appropriate; (2) the derivative matures, terminates or is sold; or (3) occurrence of the contracted or committed transaction is no longer probable or will not occur in the originally expected period. When hedge accounting is discontinued and the derivative remains outstanding, we carry the derivative at its estimated fair value on the balance sheet, recognizing changes in the fair value in current period earnings. If a cash flow hedge becomes ineffective, any deferred gains or losses remain in accumulated other comprehensive loss until the underlying hedged item is recognized. If it becomes probable that a hedged forecasted transaction will not occur, deferred gains or losses on the hedging instrument are recognized in earnings immediately. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and interest rate swap agreements and expect all counterparties to meet their obligations. If necessary, we adjust the values of our derivative contracts for our or our counterparties’ credit risk. |
Pension Obligations | Pension Obligations – Determination of pension benefit obligations is based on estimates made by management in consultation with independent actuaries. Inherent in these valuations are assumptions including discount rates, expected rates of return on plan assets, retirement rates, mortality rates and rates of compensation increase and other factors, all of which are reviewed annually and updated if necessary. Current market conditions, including changes in rates of return, interest rates and medical inflation rates, are considered in selecting these assumptions. • Discount rates are estimated using high quality corporate bond yields with a duration matching the expected benefit payments. The discount rate is obtained from a universe of AA-rated non-callable bonds across the full maturity spectrum to establish a weighted average discount rate. Our discount rate assumptions are impacted by changes in general economic and market conditions that affect interest rates on long-term high-quality debt securities, as well as the duration of our plans’ liabilities. • The expected rates of return on plan assets are derived from reviews of asset allocation strategies, expected future experience for trust asset returns, risks and other factors adjusted for our specific investment strategy. These rates are impacted by changes in general market conditions, but because they are long-term in nature, short-term market changes do not significantly impact the rates. Changes to our target asset allocation also impact these rates. Actuarial gains and losses and prior service costs are recognized in accumulated other comprehensive loss as they arise, and we amortize these costs into net pension expense over the remaining expected service period. We used a measurement date of March 31 for all periods presented. |
Revenue Recognition | Revenue Recognition – We recognize revenues to depict the transfer of control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Refer to Note 18 for further discussion. We recognize revenue when all of the following criteria have been met: (i) a contract with a customer exists, (ii) performance obligations have been identified, (iii) the price to the customer has been determined, (iv) the price to the customer has been allocated to the performance obligations, and (v) performance obligations are satisfied, which are more fully described below. (i) We identify a contract with a customer when a sales agreement indicates approval and commitment of the parties; identifies the rights of the parties; identifies the payment terms; has commercial substance; and it is probable that we will collect the consideration to which we will be entitled in exchange for the goods or services that will be transferred to the customer. In most instances, our contract with a customer is the customer's purchase order. For certain customers, we may also enter into a sales agreement that outlines a framework of terms and conditions that apply to all future purchase orders for that customer. In these situations, our contract with the customer is both the sales agreement and the specific customer purchase order. Because our contract with a customer is typically for a single transaction or customer purchase order, the duration of the contract is one year or less. As a result, we have elected to apply certain practical expedients and, as permitted by the Financial Accounting Standards Board ("FASB"), omit certain disclosures of remaining performance obligations for contracts that have an initial term of one year or less. (ii) We identify performance obligations in a contract for each promised good or service that is separately identifiable from other promises in the contract and for which the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer. Goods and services provided to our customers that are deemed immaterial are included with other performance obligations. (iii) We determine the transaction price as the amount of consideration we expect to be entitled to in exchange for fulfilling the performance obligations, including the effects of any variable consideration. (iv) For any contracts that have more than one performance obligation, we allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which we expect to be entitled in exchange for satisfying each performance obligation. We have excluded disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less as the majority of our contracts are short-term in nature with a term of one year or less. (v) We recognize revenue when, or as, we satisfy the performance obligation in a contract by transferring control of a promised good or service to the customer. |
Research and Development (R&D) | Research and Development ("R&D") – R&D costs are expensed as incurred. Costs incurred for R&D primarily include salaries and benefits and consumable supplies, as well as rent, professional fees, utilities and the depreciation of property and equipment used in R&D activities. |
Share-based Compensation | Share-based Compensation – Share-based compensation is measured at the grant-date fair value. The exercise price of stock option awards and the fair value of restricted share awards are set at the closing price of our common stock on the Nasdaq Global Select Market on the date of grant, which is the date such grants are authorized by our Board of Directors. The fair value of performance-based restricted share awards is determined using a Monte Carlo simulation model incorporating all possible outcomes against the Russell 2000 Index. The fair value of share-based payment arrangements is amortized on a straight-line basis to compensation expense over the period in which the restrictions lapse based on the expected number of shares that will vest. To cover the exercise of options and vesting of restricted shares, we generally issue new shares from our authorized but unissued share pool, although we may instead issue treasury shares in certain circumstances. |
Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves | Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves – We apply the liability method in accounting and reporting for income taxes. Under the liability approach, deferred tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax rates expected to be in effect when these differences are expected to reverse. The effect on deferred tax assets and liabilities resulting from a change in tax rates is recognized in the period that includes the enactment date. The deferred income tax assets are adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, that it is more likely than not to be realized. This analysis is performed on a jurisdictional basis and reflects our ability to utilize these deferred tax assets through a review of past, current and estimated future taxable income in addition to the establishment of viable tax strategies that will result in the utilization of the deferred assets. We recognize income tax related interest and penalties, if any, as a component of income tax expense. |
Unremitted Earnings | Unremitted Earnings – During the fiscal quarter ended March 31, 2019, we lifted our assertion that the earnings of our United Kingdom ("U.K.") and Australian subsidiaries were indefinitely invested outside of the U.S. During the fiscal quarter ended September 30, 2020, we lifted our assertion that the earnings of our Jet Lube Canada subsidiary were indefinitely invested outside of the U.S. We assert that the foreign earnings of the U.K., Australian, Vietnam and Jet Lube Canada subsidiaries will be remitted to the U.S. through distributions. We still consider the earnings of our other Canadian subsidiaries indefinitely invested outside the U.S. as we have needs for working capital in our other Canadian entities. A provision was made for taxes that may become payable upon distribution of earnings from our U.K., Australian, Vietnam and Jet Lube Canada subsidiaries. |
Uncertain Tax Positions | Uncertain Tax Positions – We establish income tax liabilities to remove some or all of the income tax benefit of any of our income tax positions based upon one of the following: (1) the tax position is not “more likely than not” to be sustained, (2) the tax position is “more likely than not” to be sustained, but for a lesser amount or (3) the tax position is “more likely than not” to be sustained, but not in the financial period in which the tax position was originally taken. The amount of income taxes we pay is subject to ongoing audits by federal, state, and foreign taxing authorities, which often result in proposed assessments. We establish reserves for open tax years for uncertain tax positions that may be subject to challenge by various taxing authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. |
Earnings Per Share | Earnings Per Share – We use the two-class method of calculating earnings per share, which determines earnings per share for each class of common stock and participating security as if all earnings of the period had been distributed. If the holders of restricted stock awards are entitled to vote and receive dividends during the restriction period, unvested shares of restricted stock qualify as participating securities and, accordingly, are included in the basic computation of earnings per share. Our unvested restricted shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. Accordingly, the presentation in Note 10 is prepared on a combined basis and is presented as earnings per common share. Diluted earnings per share is based on the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options. |
Foreign Currency Translation | Foreign Currency Translation – Assets and liabilities of our foreign subsidiaries are translated to U.S. dollars at exchange rates prevailing at the balance sheet date, while income and expenses are translated at average rates for each month. Translation gains and losses are reported as a component of accumulated other comprehensive loss. Transactional currency gains and losses arising from transactions in currencies other than our sites’ functional currencies are included in our consolidated statements of operations. Transaction and translation gains and losses arising from intercompany balances are reported as a component of accumulated other comprehensive loss when the underlying transaction stems from a long-term equity investment or from debt designated as not due in the foreseeable future. Otherwise, we recognize transaction gains and losses arising from intercompany transactions as a component of income. |
Segments | Segments – We conduct our operations through two business segments based on type of product and how we manage the business. The products for our segments are distributed both domestically and internationally. For decision-making purposes, our Chief Executive Officer and other members of senior executive management use financial information generated and reported at the reportable segment level. We evaluate segment performance and allocate resources based on each reportable segment’s operating income. Our reportable segments are as follows: • Industrial Products includes specialty mechanical products, fire and smoke protection products, architecturally-specified building products and storage, filtration and application equipment for use with our specialty chemicals and other products for general industrial application. • Specialty Chemicals includes pipe thread sealants, firestopping sealants and caulks, adhesives/solvent cements, lubricants and greases, drilling compounds, anti-seize compounds, chemical formulations and degreasers and cleaners. |
Discontinued Operations | Discontinued Operations – During the third quarter of the fiscal year ended March 31, 2019, we committed to a plan to divest our Strathmore products business (the "Coatings business"). This determination resulted in the reclassification of the assets and liabilities comprising that business to assets held-for-sale, and a corresponding adjustment to our consolidated statements of operations to reflect discontinued operations for all periods presented. |
Accounting Developments | Accounting Developments Pronouncements Implemented In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The ASU requires, among other things, the use of a new current expected credit loss model in order to determine an allowance for credit losses with respect to financial assets and instruments held. The CECL model requires that we estimate the lifetime of an expected credit loss for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. On April 1, 2020, we adopted the ASU on a prospective basis to determine our allowance for credit losses in accordance with the requirements of Topic 326, and we modified our accounting policy and processes to facilitate this approach. Our primary exposure to financial assets that are within the scope of CECL are trade receivables. Our adoption of ASU No. 2016-13 effective April 1, 2020 did not have a material impact on our condensed consolidated financial condition and results of operations. 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 amendments of the ASU modify the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosure requirements for assets and liabilities measured at fair value in the statement of financial position or disclosed in the notes to the financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for the new disclosures. The removed and modified disclosures were adopted on a retrospective basis and the new disclosures were adopted on a prospective basis. Our adoption of ASU No. 2018-13 effective April 1, 2020 did not impact our disclosures. In August 2018, the FASB issued ASU No. 2018-14, "Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans," which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant. This ASU is effective, on a retrospective basis, for fiscal years ending after December 15, 2020. We have adopted the standard and the required disclosure are reflected on our annual disclosures of the Company's defined benefit plans. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The ASU addresses how entities should account for costs associated with implementing a cloud computing arrangement that is considered a service contract. Per the amendments of the ASU, implementation costs incurred in a cloud computing arrangement that is a service contract should be accounted for in the same manner as implementation costs incurred to develop or obtain software for internal use as prescribed by guidance in ASC 350-40. The ASU requires that implementation costs incurred in a cloud computing arrangement be capitalized rather than expensed. Further, the ASU specifies the method for the amortization of costs incurred during implementation, and the manner in which the unamortized portion of these capitalized implementation costs should be evaluated for impairment. The ASU also provides guidance on how to present such implementation costs in the financial statements and also creates additional disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2019. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Our adoption of ASU No. 2018-15 effective April 1, 2020 did not have an impact on our condensed consolidated financial condition and results of operations. Pronouncements not yet implemented In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes: Simplifying the Accounting for Income Taxes." The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions and adding some requirements regarding franchise (or similar) tax, step-ups in a business combination, treatment of entities not subject to tax and when to apply enacted changes in tax laws. This ASU is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. Early adoption is permitted. Our initial assessment of this ASU indicates it will not have a material impact on our consolidated financial condition and results of operations, but our assessment is not complete. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and LIBOR. In the U.S., the Alternative Reference Rates Committee has identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative to LIBOR. This ASU includes practical expedients for contract modifications due to reference rate reform. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. This ASU is effective immediately; however, it is only available through December 31, 2022. The adoption is not expected to have a significant impact on our consolidated financial condition and results of operations. |
Organization and Operations a_3
Organization and Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Estimated Useful Lives | Generally, the estimated useful lives of assets are: Land improvements 5 to 40 years Buildings and improvements 7 to 40 years Plant, office and lab equipment 5 to 10 years |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred | Acquisition Consideration (Amounts in thousands, except for shares) Cash (a) $ 286,925 Common stock (849,852 shares) 97,656 Total consideration transferred $ 384,581 (a) Amount includes working capital and closing cash adjustments, and excludes the $1.2 million received by the Company on April 1, 2021 as a result of the final working capital true-up adjustment pursuant to the purchase agreement. |
Schedule of Aggregate Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the Company's best initial estimate of the aggregate fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands). Initial Estimated Fair Value Measurement Period Adjustments Updated Estimated Fair Value Cash $ 1,471 $ — $ 1,471 Accounts Receivable, net 13,467 — 13,467 Inventory 46,313 (1,300) 45,013 Short-Term Tax Indemnity Assets 5,000 — 5,000 Other Current Assets 1,285 1,041 2,326 Property, Plant and Equipment 28,832 (3,065) 25,767 Trade Name (indefinite life) 43,500 — 43,500 Customer Lists (useful life of 15 years) 194,000 8,500 202,500 Right-Of-Use Assets 49,040 — 49,040 Long-Term Tax Indemnity Assets 7,500 — 7,500 Other Long-term Assets 2,850 402 3,252 Accounts Payable (4,074) — (4,074) Accrued and Other Current Liabilities (3,678) (1,395) (5,073) Lease Liabilities - Short-Term (4,811) — (4,811) Deferred Tax Liabilities (56,249) (6,912) (63,161) Tax Contingency Reserve (22,511) 5,190 (17,321) Lease Liabilities - Long-Term (45,369) — (45,369) Estimated fair value of net assets acquired 256,566 2,461 259,027 Goodwill 129,169 (3,615) 125,554 Total Purchase Price $ 385,735 $ (1,154) $ 384,581 |
Unaudited Proforma Financial Information | Pursuant to Topic 805, unaudited supplemental proforma results of operations for the year ended March 31, 2021 and 2020, as if the acquisition of TRUaire had occurred on April 1, 2019 are presented below (in thousands, except per share amounts): Year Ended March 31, 2021 2020 Revenue, net $ 495,788 $ 480,285 Net income 47,891 28,730 Net earnings per common share: Diluted 3.17 1.79 Basic 3.19 1.81 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Summarized selected financial information for the Coatings business for the years ended March 31, 2021, 2020 and 2019, is presented in the following table (in thousands): Year Ended March 31, 2021 2020 2019 Revenues, net $ — $ — $ 5,303 Gain (loss) from discontinued operations before income taxes — 1,326 (774) Income tax (expense) benefit — (265) 296 Gain (loss) from discontinued operations $ — $ 1,061 $ (478) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended March 31, 2021 and 2020 were as follows (in thousands): Industrial Products Specialty Chemicals Total Balance at April 1, 2019 $ 54,732 $ 31,563 $ 86,295 Petersen acquisition 6,128 — 6,128 Currency translation (737) — (737) Balance at March 31, 2020 $ 60,123 $ 31,563 $ 91,686 T.A. industries acquisition 125,554 — 125,554 Currency translation 1,555 — 1,555 Balance at March 31, 2021 $ 187,232 $ 31,563 $ 218,795 |
Schedule of Intangible Assets | The following table provides information about our intangible assets for the years ended March 31, 2021 and 2020 (in thousands, except years): March 31, 2021 March 31, 2020 Wtd Avg Life (Years) Ending Gross Amount Accumulated Amortization Ending Gross Amount Accumulated Amortization Finite-lived intangible assets: Patents 11 $ 9,461 $ (7,540) $ 9,635 $ (6,935) Customer lists and amortized trademarks 14 267,096 (42,345) 62,806 (33,098) Non-compete agreements 5 982 (790) 1,653 (1,494) Other 8 4,743 (3,141) 5,219 (2,628) $ 282,282 $ (53,816) $ 79,313 $ (44,155) Trade names and trademarks not being amortized (a): $ 54,594 $ — $ 11,027 $ — (a) In the fiscal quarter ended March 31, 2020, we recorded an impairment of $1.0 million on one of our unamortized trademarks in our Specialty Chemicals segment. |
Schedule of Estimated Future Amortization For Intangible Assets | The following table presents the estimated future amortization of finite-lived intangible assets for the next five fiscal years ending March 31 (in thousands): 2022 $ 19,288 2023 18,279 2024 17,567 2025 16,609 2026 15,699 Thereafter 141,024 Total 228,466 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | We recorded share-based compensation expense as follows for the years ended March 31, 2021, 2020 and 2019 (in thousands): Year Ended March 31, 2021 Stock Options Restricted Stock Total Share-based compensation expense $ — $ 5,085 $ 5,085 Related income tax benefit — (1,220) (1,220) Net share-based compensation expense $ — $ 3,865 $ 3,865 Year Ended March 31, 2020 Stock Options Restricted Stock Total Share-based compensation expense $ — $ 5,074 $ 5,074 Related income tax benefit — (1,218) (1,218) Net share-based compensation expense $ — $ 3,856 $ 3,856 Year Ended March 31, 2019 Stock Options Restricted Stock Total Share-based compensation expense $ 19 $ 3,924 $ 3,943 Related income tax benefit (5) (942) (947) Net share-based compensation expense $ 14 $ 2,982 $ 2,996 |
Schedule of Stock Options Activity | Stock option activity, which represents outstanding CSWI awards resulting from conversion awards held by current and former Capital Southwest employees, was as follows: Year Ended March 31, 2021 Number of Shares Weighted Average Exercise Price Remaining Contractual Life (Years) Aggregate Intrinsic Value (in Millions) Outstanding at April 1, 2020 115,858 $ 25.30 Exercised (52,445) 25.40 Outstanding at March 31, 2021 (a) 63,413 $ 25.23 3.4 $ 7.0 Exercisable at March 31, 2021 (a) 63,413 $ 25.23 3.4 $ 7.0 (a) All remaining awards outstanding and exercisable at March 31, 2021 are held by employees of CSWI. Year Ended March 31, 2020 Number of Shares Weighted Average Exercise Price Remaining Contractual Life (Years) Aggregate Intrinsic Value (in Millions) Outstanding at April 1, 2019 231,717 $ 25.12 Exercised (115,859) 24.93 Outstanding at March 31, 2020 115,858 $ 25.30 4.1 $ 4.6 Exercisable at March 31, 2020 115,858 $ 25.30 4.1 $ 4.6 |
Schedule of Restricted Stock Activity | Restricted stock activity was as follows: Year Ended March 31, 2021 Number of Shares Weighted Average Grant Date Fair Value Outstanding at April 1, 2020 202,466 $ 60.78 Granted 119,751 75.88 Vested (124,985) 52.89 Canceled (24,316) 70.67 Outstanding at March 31, 2021 (a) 172,916 $ 70.50 (a) All remaining awards outstanding and exercisable at March 31, 2021 are held by employees of CSWI. |
Details of Certain Consolidat_2
Details of Certain Consolidated Balance Sheet Captions (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consists of the following (in thousands): March 31, 2021 2020 Accounts receivable trade $ 93,366 $ 72,601 Other receivables 4,244 3,449 97,610 76,050 Less: Allowance for doubtful accounts (915) (1,170) Accounts receivable, net $ 96,695 $ 74,880 |
Schedule of Inventories, Net | Inventories, net consist of the following (in thousands): March 31, 2021 2020 Raw materials and supplies $ 27,416 $ 20,935 Work in process 6,365 6,076 Finished goods 72,452 33,771 Total inventories 106,233 60,782 Less: LIFO reserve (4,565) (4,816) Less: Obsolescence reserve (3,582) (2,213) Inventories, net $ 98,086 $ 53,753 |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net , consist of the following (in thousands): March 31, 2021 2020 Land and improvements $ 3,168 $ 3,106 Buildings and improvements 53,020 44,612 Plant, office and laboratory equipment 95,848 72,652 Construction in progress 3,462 8,163 155,498 128,533 Less: Accumulated depreciation (72,944) (71,355) Property, plant and equipment, net $ 82,554 $ 57,178 |
Schedule of Other Assets | Other assets consist of the following (in thousands): March 31, 2021 2020 Right-of-use lease assets $ 61,707 $ 16,383 Property held for investment (a) 967 6,819 Deferred income taxes 1,462 — Long-term tax indemnification assets 7,500 — Other 4,359 949 Other assets $ 75,995 $ 24,151 (a) As of March 31, 2021 and 2020 |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): March 31, 2021 2020 Compensation and related benefits $ 19,120 $ 18,666 Rebates and marketing agreements 9,031 6,409 Operating lease liabilities 8,063 3,056 Billings in excess of costs 1,463 2,892 Non-income taxes 1,593 750 Income taxes payable 3,755 529 Other accrued expenses 6,718 4,305 Accrued and other current liabilities $ 49,743 $ 36,607 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consists of the following (in thousands): March 31, 2021 2020 Operating lease liabilities $ 56,709 $ 15,179 Deferred income taxes 66,052 3,848 Tax Reserve 13,228 623 Other 736 1,492 Other long-term liabilities $ 136,725 $ 21,142 |
Long-Term Debt and Commitments
Long-Term Debt and Commitments (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt consists of the following (in thousands): March 31, 2021 2020 Revolving Credit Facility, interest rate of 2.11% and 2.24%, respectively $ 232,000 $ — Whitmore term loan, interest rate of 2.11% and 2.99%, respectively 10,337 10,898 Total debt 242,337 10,898 Less: Current portion (561) (561) Long-term debt $ 241,776 $ 10,337 |
Aggregate Maturities of Long-Term Debt | Future minimum debt payments are as follows for years ending March 31 (in thousands): 2022 $ 561 2023 232,561 2024 561 2025 561 2026 561 Thereafter 7,532 Total $ 242,337 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Operating Lease Expense, Operating Lease Assets and Liabilities, Supplemental Cash Flow, and Other Information | (in thousands) March 31, 2021 March 31, 2020 Components of Operating Lease Expenses Operating lease expense (a) $ 5,243 $ 3,524 Short-term lease expense (a) 377 225 Total operating lease expense $ 5,620 $ 3,749 (a) Included in cost of revenues and selling, general and administrative expense (in thousands) March 31, 2021 March 31, 2021 Operating Lease Assets and Liabilities ROU assets, net (a) $ 61,707 $ 16,383 Short-term lease liabilities (b) $ 8,063 $ 3,056 Long-term lease liabilities (b) 56,709 15,179 Total operating lease liabilities $ 64,772 $ 18,235 (a) Included in other assets (b) Included in accrued and other current liabilities and other long-term liabilities, as applicable (in thousands) March 31, 2021 March 31, 2021 Supplemental Cash Flow Cash paid for amounts included in the measurement of operating lease liabilities (a) $ 5,578 $ 3,824 ROU assets obtained in exchange for new operating lease obligations 114 3,187 (a) Included in our condensed consolidated statement of cash flows, operating activities in accounts payable and other current liabilities Other Information for Operating Leases Weighted average remaining lease term (in years) 8.2 6.2 Weighted average discount rate (percent) 2.6 % 4.3 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities were as follows (in thousands): (in thousands) 2022 $ 9,551 2023 9,009 2024 8,910 2025 8,785 2026 8,786 Thereafter 26,518 Total lease liabilities $ 71,559 Less: Imputed interest (6,787) Present value of lease liabilities $ 64,772 |
Derivative Instruments and He_2
Derivative Instruments and Hedge Accounting (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Interest Rate Swaps Designated as Hedging Instruments | The fair value of interest rate swaps designated as hedging instruments are summarized below (in thousands): March 31, 2021 2020 Current derivative liabilities $ 280 $ 271 Non-current derivative liabilities 736 1,492 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted earnings per share for the years ended March 31, 2021, 2020 and 2019: March 31, (amounts in thousands, except per share data) 2021 2020 2019 Income from continuing operations $ 40,288 $ 44,817 $ 46,052 Income (loss) from discontinued operations, net of tax — 1,061 (478) Net income $ 40,288 $ 45,878 $ 45,574 Weighted average shares: Common stock 14,919 14,928 15,257 Participating securities 96 111 157 Denominator for basic earnings per common share 15,015 15,039 15,414 Potentially dilutive securities 111 167 118 Denominator for diluted earnings per common share 15,126 15,206 15,532 Basic earnings (loss) per common share: Continuing operations $ 2.68 $ 2.98 $ 2.99 Discontinued operations — 0.07 (0.03) Net income $ 2.68 $ 3.05 $ 2.96 Diluted earnings (loss) per common share: Continuing operations $ 2.66 $ 2.95 $ 2.96 Discontinued operations — 0.07 (0.03) Net income $ 2.66 $ 3.02 $ 2.93 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Summary of Assumptions Related to Retirement Plan | The following are assumptions related to the Plans: March 31, 2021 2020 2019 Assumptions used to determine benefit obligations: Discount rate 3.3 % 3.6 % 4.0 % Rate of compensation increases (a) 3.0 % 3.0 % 3.0 % Assumptions used to determine net pension expense: Discount rate 3.6 % 4.0 % 4.0 % Expected return on plan assets 4.8 % 4.8 % 4.6 % Rate of compensation increases (a) 3.0 % 3.0 % 3.0 % (a) Rate of compensation increase is no longer relevant to the Restoration Plan due to freezing benefit accruals. The rate of compensation increase on the Canadian Plan is $3.0%. |
Schedule of Pension Plan | Net pension (benefit) expense for the Plans was: Year Ended March 31, (in thousands) 2021 2020 2019 Service cost – benefits earned during the year $ 40 $ 71 $ 76 Interest cost on projected benefit obligation 144 1,136 2,113 Expected return on assets (96) (1,361) (2,656) Net amortization and deferral 74 56 47 Pension plan termination (a) — 6,472 — Net pension expense (benefit) $ 162 $ 6,374 $ (420) (a) Reflects impact of the termination of the Qualified Plan. |
Summary of Changes in Pension Obligations | The following is a summary of the changes in the Plans' pension obligations: March 31, (in thousands) 2021 2020 Benefit obligation at beginning of year $ 3,880 $ 53,993 Service cost 40 71 Interest cost 144 1,136 Actuarial gain 212 5,103 Benefits paid (265) (1,697) Pension plan termination (a) — (54,605) Currency translation impact 280 (121) Benefit obligation at end of year $ 4,291 $ 3,880 Accumulated benefit obligation $ 3,990 $ 3,690 (a) Reflects impact of the termination of the Qualified Plan. |
Summary of Reconciliation of Plan's Assets | The following is a reconciliation of the Plans' assets: March 31, (in thousands) 2021 2020 Fair value of plan assets at beginning of year $ 1,898 $ 55,009 Actual return on plan assets 441 3,093 Benefits paid (159) (1,591) Company contributions 69 93 Pension plan termination (a) — (54,605) Currency translation impact 243 (101) Fair value of plan assets at end of year $ 2,492 $ 1,898 (a) Reflects impact of the termination of the Qualified Plan. |
Summary of Net Pension Asset for Retirement Plan | The following summarizes the net pension asset for the Plans: March 31, (in thousands) 2021 2020 Plan assets at fair value $ 2,492 $ 1,898 Benefit obligation (4,291) (3,880) Unfunded status $ (1,799) $ (1,982) |
Summary of Amounts Recognized in Balance Sheet | The following summarizes amounts recognized in the balance sheets for the Plans: March 31, (in thousands) 2021 2020 Current liabilities $ (104) $ (103) Noncurrent liabilities (1,695) (1,879) Unfunded status $ (1,799) $ (1,982) |
Schedule of Change in Accumulated Other Comprehensive Loss Attributable to Components of Net Cost and Change in Benefit Obligation | The following table presents the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in the benefit obligation: March 31, (in thousands) 2021 2020 Accumulated other comprehensive loss at beginning of year $ (871) $ (3,466) Amortization of net loss 62 47 Amortization of prior service benefit (cost) (31) 21 Pension plan termination (a) — 2,516 Net gain (loss) arising during the year 96 (17) Currency translation impact (55) 28 Accumulated other comprehensive loss at end of year $ (799) $ (871) (a) Reflects impact of the termination of the Qualified Plan, including changes in assumptions resulting from the termination. Amounts recorded in accumulated other comprehensive loss consist of: March 31, (in thousands) 2021 2020 Net prior service cost $ 27 $ 56 Net loss (826) (927) Accumulated other comprehensive loss $ (799) $ (871) |
Schedule of Plan Asset Allocations | The actual asset allocations for the Plans were as follows: March 31, Asset category 2021 2020 Equity securities — % — % Fixed income securities — % — % Other 100 % 100 % Cash and cash equivalents — % — % Total 100 % 100 % |
Summary of Expected Cash Benefit Payments | The following table summarizes the expected cash benefit payments for the Plans for fiscal years ending March 31 (in millions): 2022 $ 0.2 2023 0.2 2024 0.2 2025 0.2 2026 0.2 Thereafter 1.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income from continuing operations before income taxes was comprised of the following (in thousands): Year Ended March 31, 2021 2020 2019 U.S. Federal $ 48,392 $ 53,946 $ 53,375 Foreign 2,726 3,655 8,066 Income before income taxes $ 51,118 $ 57,601 $ 61,441 |
Schedule of Income Tax Expense | Income tax expense consists of the following (in thousands): For the year ended: Current Deferred Total March 31, 2021 U.S. Federal $ 6,773 $ (1,150) $ 5,623 State and local 3,561 (500) 3,061 Foreign 1,641 505 2,146 Provision for income taxes $ 11,975 $ (1,145) $ 10,830 March 31, 2020 U.S. Federal $ 8,466 $ 673 $ 9,139 State and local 1,999 (100) 1,899 Foreign 1,968 (222) 1,746 Provision for income taxes $ 12,433 $ 351 $ 12,784 March 31, 2019 U.S. Federal $ 10,298 $ 644 $ 10,942 State and local 2,729 (280) 2,449 Foreign 1,881 117 1998 Provision for income taxes $ 14,908 $ 481 $ 15,389 |
Summary of Income Tax Expense Differed from Amounts Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes | Income tax expense differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21.0% to income from continuing operations before income taxes as a result of the following (in thousands): Year Ended March 31, 2021 2020 2019 Computed tax expense at statutory rate $ 10,735 $ 12,096 $ 12,903 Increase (reduction) in income taxes resulting from: State and local income taxes, net of federal benefits 2,419 1,943 2,222 Amended return items (pension and foreign withholding) — 975 — IRS audit adjustments — 502 — GILTI and Section 250 Deduction 440 124 749 Foreign rate differential 85 84 302 Uncertain tax positions (4,717) (1,615) 244 Other permanent differences 1,438 (546) (276) Foreign tax credits (554) (479) (1,123) Repatriation tax, net of tax credit 822 — — Other, net 162 (300) 368 Provision for income taxes continuing operations $ 10,830 $ 12,784 $ 15,389 |
Summary of Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31 are presented below (in thousands): March 31, 2021 2020 Deferred tax assets: Operating lease liabilities $ 14,680 $ 4,380 Accrued compensation 3,878 3,997 Impairment 386 386 Pension and other employee benefits 313 362 Inventory reserves 1,330 197 Net operating loss carryforwards 145 145 Accrued expenses 244 141 Foreign tax credit carry-forward 130 40 State R&D credit carry-forward 120 — Transaction Costs 630 — Other, net 1,455 934 Deferred tax assets 23,311 10,582 Valuation allowance (145) (145) Deferred tax assets, net of valuation allowance 23,166 10,437 Deferred tax liabilities: Goodwill and intangible assets (65,070) (5,740) Property, plant and equipment (7,816) (4,444) Operating lease - ROU assets (13,631) (3,943) Repatriation reserve (942) — Other, net (297) (158) Deferred tax liabilities (87,756) (14,285) Net deferred tax liabilities $ (64,590) $ (3,848) |
Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): March 31, 2021 2020 Balance at beginning of year $ 498 $ 1,910 Increases related to prior year tax positions 13,895 — Decreases related to prior year tax positions (4,215) (1,304) Increases related to current year tax positions 34 64 Settlement — (172) Balance at end of year $ 10,212 $ 498 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Analysis of Changes in Accumulated Other Comprehensive Income (Loss) | The following table provides an analysis of the changes in accumulated other comprehensive income (loss) (in thousands). March 31, 2021 2020 Currency translation adjustments: Balance at beginning of period $ (9,185) $ (6,869) Foreign currency translation adjustments 4,791 (2,316) Balance at end of period $ (4,394) $ (9,185) Interest rate swaps: Balance at beginning of period $ (1,390) $ (394) Unrealized losses (gain), net of taxes of $(96) and $284, respectively (a) 362 (1,069) Reclassification of losses included in interest expense, net of taxes of $(60) and $(19), respectively 225 73 Other comprehensive loss 587 (996) Balance at end of period $ (803) $ (1,390) Defined benefit plans: Balance at beginning of period $ (871) $ (3,466) Amortization of net prior service cost (benefit), net of taxes of $8 and $(6), respectively (b) (31) 21 Amortization of net loss, net of taxes of $(16) and $(12), respectively (b) 62 47 Net loss (gain) arising during the year, net of taxes of $(26) and $5, respectively 96 (17) Pension plan termination, net of taxes of $0 and $(669), respectively — 2,516 Currency translation impact (55) 28 Other comprehensive loss 72 2,595 Balance at end of period $ (799) $ (871) (a) Unrealized gains are reclassified to earnings as underlying cash interest payments are made. We expect to recognize a loss of less than $0.2 million, net of deferred taxes, over the next twelve months related to a designated cash flow hedge based on its fair value as of March 31, 2021. (b) Amortization of prior service costs and actuarial losses out of accumulated other comprehensive loss are included in the computation of net periodic pension expense. See Note 13 for additional information. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of revenues reconciled to our reportable segments is as follows (in thousands): Year Ended March 31, 2021 Industrial Products Specialty Chemicals Total Build-to-order $ 87,057 $ — $ 87,057 Book-and-ship 202,359 129,789 332,148 Net revenues $ 289,416 $ 129,789 $ 419,205 Year Ended March 31, 2020 Industrial Products Specialty Chemicals Total Build-to-order $ 82,357 $ — $ 82,357 Book-and-ship 152,538 150,976 303,514 Net revenues $ 234,895 $ 150,976 $ 385,871 Year Ended March 31, 2019 Industrial Products Specialty Chemicals Total Build-to-order $ 69,564 $ — $ 69,564 Book-and-ship 136,367 144,224 280,591 Net revenues $ 205,931 $ 144,224 $ 350,155 |
Schedule of Contract Liabilities | Contract liabilities, which are included in accrued and other current liabilities in our consolidated balance sheets were as follows (in thousands): Balance at April 1, 2020 $ 2,892 Revenue recognized (2,612) New contracts and revenue added to existing contracts 1,183 Balance at March 31, 2021 $ 1,463 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information of Reporting Segments | The following is a summary of the financial information of our reporting segments reconciled to the amounts reported in the consolidated financial statements (in thousands). Historical segment information has been retrospectively adjusted to reflect the decision to divest the Coatings business. Year Ended March 31, 2021 (in thousands) Industrial Products Specialty Chemicals Subtotal - Reportable Segments Eliminations and Other Total Revenues, net $ 289,416 $ 129,789 $ 419,205 $ — $ 419,205 Operating income 55,641 18,263 73,904 (14,434) 59,470 Depreciation and amortization 15,255 6,918 22,173 864 23,037 Year Ended March 31, 2020 (in thousands) Industrial Products Specialty Chemicals Subtotal - Reportable Segments Eliminations and Other Total Revenues, net $ 234,895 $ 150,976 $ 385,871 $ — $ 385,871 Operating income 55,725 24,691 80,416 (14,349) 66,067 Depreciation and amortization 6,573 7,569 14,142 702 14,844 In the fiscal quarter ended March 31, 2020, we recorded an impairment of $1.0 million on one of our unamortized trademarks in our Specialty Chemicals segment. Year Ended March 31, 2019 (in thousands) Industrial Products Specialty Chemicals Subtotal - Reportable Segments Eliminations and Other Total Revenues, net $ 205,931 $ 144,224 $ 350,155 $ — $ 350,155 Operating income 48,817 23,930 72,747 (12,307) 60,440 Depreciation and amortization 5,871 7,281 13,152 684 13,836 TOTAL ASSETS (Amounts in thousands) Industrial Products Specialty Chemicals Subtotal - Reportable Segments Eliminations and Other Total March 31, 2021 $ 741,726 $ 119,992 $ 861,718 $ 13,239 $ 874,957 March 31, 2020 205,518 138,855 344,373 24,872 369,245 March 31, 2019 187,680 137,587 325,267 27,365 352,632 |
Schedule of Revenues and Long-Lived Assets by Geographic Area | Revenues and long-lived assets by geographic area are as follows (in thousands, except percent data): Year Ended March 31, 2021 2020 2019 U.S. $ 367,169 87.6 % $ 323,000 83.7 % $ 286,545 81.8 % Non-U.S. (a) 52,036 12.4 % 62,871 16.3 % 63,610 18.2 % Revenues, net $ 419,205 100.0 % $ 385,871 100.0 % $ 350,155 100.0 % (a) No individual country within this group represents 10% or more of consolidated totals for any period presented. Year Ended March 31, 2021 2020 2019 U.S. $ 617,258 93.5 % $ 196,679 89.7 % $ 176,935 87.9 % Non-U.S. 43,146 6.5 % 22,521 10.3 % 24,430 12.1 % Long-lived assets (a) $ 660,404 100.0 % $ 219,200 100.0 % $ 201,365 100.0 % (a) Long-lived assets consist primarily of property, plant and equipment, intangible assets, goodwill and other assets, net of deferred taxes. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Data | The following presents a summary of the unaudited quarterly data for the years ended March 31, 2021 and 2020 (amounts in millions, except per share data): Year Ended March 31, 2021 Quarter 4th 3rd 2nd 1st Revenues, net $ 133.4 $ 89.9 $ 104.9 $ 91.0 Gross profit 54.0 39.3 48.7 42.8 Income before income taxes 10.9 3.1 21.5 15.6 Income from continuing operations 9.6 2.3 16.4 12.0 Loss from discontinued operations, net — — — — Net income 9.6 2.3 16.4 12.0 Basic earnings per common share (a): Continuing operations $ 0.62 $ 0.16 $ 1.11 $ 0.81 Discontinued operations — — — — Net income $ 0.62 $ 0.16 $ 1.11 $ 0.81 Diluted earnings per common share (a): Continuing operations $ 0.61 $ 0.16 $ 1.10 $ 0.81 Discontinued operations — — — — Net income $ 0.61 $ 0.16 $ 1.10 $ 0.81 Year Ended March 31, 2020 Quarter 4th 3rd 2nd 1st Revenues, net $ 98.6 $ 83.7 $ 101.3 $ 102.3 Gross profit 44.8 37.7 47.4 47.2 Income before income taxes 16.0 9.4 12.5 19.7 Income from continuing operations 13.4 7.3 8.8 15.3 Income (loss) from discontinued operations, net 1.2 — — (0.1) Net income 14.6 7.3 8.8 15.2 Basic earnings (loss) per common share (a): Continuing operations $ 0.89 $ 0.48 $ 0.59 $ 1.02 Discontinued operations 0.08 — (0.01) (0.01) Net income $ 0.97 $ 0.48 $ 0.58 $ 1.01 Diluted earnings (loss) per common share (a): Continuing operations $ 0.88 $ 0.48 $ 0.58 $ 1.01 Discontinued operations 0.08 — — (0.01) Net income $ 0.96 $ 0.48 $ 0.58 $ 1.00 (a) Net earnings per common share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Organization and Operations a_4
Organization and Operations and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Mar. 31, 2021USD ($)segmentbrand | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of business segments | segment | 2 | ||
Highly respected industrial brands (more than) | brand | 100 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for expected credit losses for short-term receivables | $ 915,000 | $ 1,170,000 | |
Current period adjustments, write off of trade receivables | 700,000 | ||
Goodwill impairment loss | 0 | 0 | $ 0 |
Impairment of intangible assets | $ 0 | 951,000 | 0 |
Number of business segments | segment | 2 | ||
Selling, general and administrative expense | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Research and development costs | $ 4,500,000 | 4,300,000 | $ 4,300,000 |
Domestic | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deposits in banks | 6,100,000 | 11,700,000 | |
Foreign | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deposits in banks | $ 4,000,000 | $ 6,600,000 | |
Foreign | Geographic Concentration Risk | Inventory | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 12.00% | 6.00% |
Organization and Operations a_5
Organization and Operations and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Minimum | Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 5 years |
Minimum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 7 years |
Minimum | Plant, office and lab equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 5 years |
Maximum | Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 40 years |
Maximum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 40 years |
Maximum | Plant, office and lab equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 10 years |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Dec. 15, 2020 | Nov. 04, 2020 | Apr. 02, 2019 | Jan. 31, 2019 | Jul. 31, 2019 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Jul. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||||||||||||||||
Cash consideration / amount paid at closing and funded through revolving credit facility | $ 287,238 | $ 11,837 | $ 10,100 | |||||||||||||||
Indemnification expense | $ 5,000 | |||||||||||||||||
Goodwill | 218,795 | $ 91,686 | $ 218,795 | 218,795 | 91,686 | 86,295 | ||||||||||||
Net loss before income taxes | (10,900) | $ (3,100) | $ (21,500) | $ (15,600) | $ (16,000) | $ (9,400) | $ (12,500) | $ (19,700) | (51,118) | (57,601) | (61,441) | |||||||
Amortization of intangible assets | 10,500 | 6,700 | 6,200 | |||||||||||||||
Additional depreciation expense | 9,194 | 7,918 | 7,411 | |||||||||||||||
Income tax effects | 10,830 | 12,784 | $ 15,389 | |||||||||||||||
T.A. Industries (TRUaire) | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percent of outstanding equity acquired | 100.00% | |||||||||||||||||
Cash consideration / amount paid at closing and funded through revolving credit facility | $ 284,000 | |||||||||||||||||
Cash consideration after working capital and closing cash adjustments | $ 286,925 | |||||||||||||||||
Stock consideration (in shares) | 849,852 | |||||||||||||||||
Stock consideration, value of common stock | $ 97,656 | $ 76,000 | ||||||||||||||||
Amount related to uncertain tax positions taken in prior years that the seller has provided contractual indemnification to the Company for | 12,500 | 7,500 | 7,500 | 7,500 | ||||||||||||||
Tax indemnification asset released in accordance with purchase agreement | 5,000 | |||||||||||||||||
Relevant uncertain tax position accrual released and recorded as income tax benefit | 5,300 | |||||||||||||||||
Indemnification expense | 5,000 | |||||||||||||||||
Goodwill | 129,169 | 125,554 | 125,554 | 125,554 | ||||||||||||||
Revenues | 33,800 | |||||||||||||||||
Net loss before income taxes | 400 | |||||||||||||||||
Transaction expenses incurred | 800 | 7,800 | ||||||||||||||||
Transaction expenses paid | 7,800 | |||||||||||||||||
Total consideration transferred | 384,581 | |||||||||||||||||
Fair value of accounts receivable acquired | 13,467 | 13,467 | 13,467 | 13,467 | ||||||||||||||
Fair value of inventory acquired | 46,313 | 45,013 | 45,013 | 45,013 | ||||||||||||||
Fair value of equipment acquired | $ 28,832 | $ 25,767 | 25,767 | 25,767 | ||||||||||||||
Assets acquired, amortization period | 15 years | |||||||||||||||||
T.A. Industries (TRUaire) | Customer Lists | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Amortization of intangible assets | 3,900 | |||||||||||||||||
T.A. Industries (TRUaire) | Fair Value Step-Up of Inventory | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Additional amortization expense | $ 3,500 | 0 | 7,900 | |||||||||||||||
T.A. Industries (TRUaire) | Proforma Adjustments | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Additional amortization expense | 9,600 | 13,500 | ||||||||||||||||
Transaction expenses incurred | 0 | 7,800 | ||||||||||||||||
Additional interest expense as a result of incurring additional borrowing | $ 3,200 | 4,500 | ||||||||||||||||
Blended statutory income tax rate | 24.50% | |||||||||||||||||
Income tax effects | $ (3,200) | (8,400) | ||||||||||||||||
T.A. Industries (TRUaire) | Fair Value Step-Up of Property, Plant and Equipment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Additional depreciation expense | $ 400 | $ 600 | ||||||||||||||||
Petersen Metals | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash consideration / amount paid at closing and funded through revolving credit facility | $ 11,500 | |||||||||||||||||
Goodwill | 6,100 | |||||||||||||||||
Total consideration transferred | $ 11,800 | |||||||||||||||||
Working capital and closing cash adjustments | $ 300 | |||||||||||||||||
Fair value of accounts receivable acquired | 2,200 | |||||||||||||||||
Fair value of inventory acquired | 800 | |||||||||||||||||
Fair value of equipment acquired | 700 | |||||||||||||||||
Fair value of current liabilities assumed | 1,500 | |||||||||||||||||
Petersen Metals | Customer Lists | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Fair value of the assets acquired, finite-lived | $ 3,200 | |||||||||||||||||
Assets acquired, amortization period | 15 years | |||||||||||||||||
Petersen Metals | Backlog | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Fair value of the assets acquired, finite-lived | $ 400 | |||||||||||||||||
Assets acquired, amortization period | 1 year 6 months | |||||||||||||||||
MSD Research, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 5,200 | |||||||||||||||||
Total consideration transferred | 10,100 | |||||||||||||||||
Fair value of accounts receivable acquired | 100 | |||||||||||||||||
Fair value of inventory acquired | 300 | |||||||||||||||||
MSD Research, Inc. | Trademarks | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Fair value of the assets acquired, indefinite-lived | 800 | |||||||||||||||||
MSD Research, Inc. | Customer Lists | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Fair value of the assets acquired, finite-lived | $ 3,300 | |||||||||||||||||
Assets acquired, amortization period | 10 years | |||||||||||||||||
MSD Research, Inc. | Technology | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Fair value of the assets acquired, finite-lived | $ 400 | |||||||||||||||||
Assets acquired, amortization period | 5 years |
Acquisitions - Consideration Tr
Acquisitions - Consideration Transferred (Details) - USD ($) $ in Thousands | Apr. 01, 2021 | Dec. 15, 2020 | Nov. 04, 2020 |
Subsequent Event | |||
Business Acquisition [Line Items] | |||
Working capital and closing cash adjustments | $ 1,200 | ||
T.A. Industries (TRUaire) | |||
Business Acquisition [Line Items] | |||
Cash (a) | $ 286,925 | ||
Common stock (849,852 shares) | $ 97,656 | $ 76,000 | |
Stock consideration (in shares) | 849,852 | ||
Total consideration transferred | $ 384,581 |
Acquisitions - Aggregate Fair V
Acquisitions - Aggregate Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 15, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 218,795 | $ 91,686 | $ 86,295 | |
T.A. Industries (TRUaire) | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1,471 | 1,471 | ||
Accounts Receivable, net | 13,467 | 13,467 | ||
Inventory | 46,313 | 45,013 | ||
Measurement Period Adjustments, Inventory | (1,300) | |||
Short-Term Tax Indemnity Assets | 5,000 | 5,000 | ||
Other Current Assets | 1,285 | 2,326 | ||
Measurement Period Adjustments, Other Current Assets | 1,041 | |||
Property, Plant and Equipment | 28,832 | 25,767 | ||
Measurement Period Adjustments, Property, Plant and Equipment | (3,065) | |||
Trade Name (indefinite life) | 43,500 | 43,500 | ||
Customer Lists (useful life of 15 years) | $ 194,000 | 202,500 | ||
Measurement Period Adjustments, Customer Lists (useful life of 15 years) | 8,500 | |||
Assets acquired, amortization period | 15 years | |||
Right-Of-Use Assets | $ 49,040 | 49,040 | ||
Long-Term Tax Indemnity Assets | 7,500 | 7,500 | ||
Other Long-term Assets | 2,850 | 3,252 | ||
Measurement Period Adjustments, Other Long-term Assets | 402 | |||
Accounts Payable | (4,074) | (4,074) | ||
Accrued and Other Current Liabilities | (3,678) | (5,073) | ||
Measurement Period Adjustments, Accrued and Other Current Liabilities | (1,395) | |||
Lease Liabilities - Short-Term | (4,811) | (4,811) | ||
Deferred Tax Liabilities | (56,249) | (63,161) | ||
Measurement Period Adjustments, Deferred Tax Liabilities | (6,912) | |||
Tax Contingency Reserve | (22,511) | (17,321) | ||
Measurement Period Adjustments, Tax Contingency Reserve | 5,190 | |||
Lease Liabilities - Long-Term | (45,369) | (45,369) | ||
Estimated fair value of net assets acquired | 256,566 | 259,027 | ||
Measurement Period Adjustments, Estimated fair value of net assets acquired | 2,461 | |||
Goodwill | 129,169 | 125,554 | ||
Measurement Period Adjustments, Goodwill | (3,615) | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 385,735 | 384,581 | ||
Measurement Period Adjustments, Total Purchase Price | $ (1,154) |
Acquisitions - Unaudited Profor
Acquisitions - Unaudited Proforma Financial Information (Details) - T.A. Industries (TRUaire) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Revenue, net | $ 495,788 | $ 480,285 |
Net income | $ 47,891 | $ 28,730 |
Earnings Per Share [Abstract] | ||
Diluted (in dollars per share) | $ 3.17 | $ 1.79 |
Basic (in dollars per share) | $ 3.19 | $ 1.81 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) | Mar. 17, 2020 | Sep. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of assets | $ 30,000 | $ 1,292,000 | $ 3,295,000 | |||
Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets | 0 | 0 | ||||
Liabilities | $ 0 | $ 0 | ||||
Discontinued Operations, Held-for-sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment charge | $ 46,000,000 | |||||
Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of assets | $ 6,900,000 | |||||
Gains on disposal due to write-downs of long-lived assets in prior periods | $ 1,500,000 | $ 6,900,000 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues, net | $ 0 | $ 0 | $ 5,303 |
Gain (loss) from discontinued operations before income taxes | 0 | 1,326 | (774) |
Income tax (expense) benefit | 0 | (265) | 296 |
Gain (loss) from discontinued operations | $ 0 | $ 1,061 | $ (478) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 91,686 | $ 86,295 |
Petersen / T.A. industries acquisition | 125,554 | 6,128 |
Currency translation | 1,555 | (737) |
Ending balance | 218,795 | 91,686 |
Industrial Products | ||
Goodwill [Roll Forward] | ||
Beginning balance | 60,123 | 54,732 |
Petersen / T.A. industries acquisition | 6,128 | |
Currency translation | 1,555 | (737) |
Ending balance | 187,232 | 60,123 |
Specialty Chemicals | ||
Goodwill [Roll Forward] | ||
Beginning balance | 31,563 | 31,563 |
Petersen / T.A. industries acquisition | 0 | 0 |
Currency translation | 0 | 0 |
Ending balance | $ 31,563 | $ 31,563 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Mar. 31, 2021 | |
Intangible Assets [Line Items] | ||
Ending Gross Amount | $ 79,313 | $ 282,282 |
Accumulated Amortization | (44,155) | (53,816) |
Trade names and trademarks not being amortized | ||
Intangible Assets [Line Items] | ||
Ending Gross Amount | 11,027 | $ 54,594 |
Impairment of unamortized trademarks | 1,000 | |
Patents | ||
Intangible Assets [Line Items] | ||
Wtd Avg Life (Years) | 11 years | |
Ending Gross Amount | 9,635 | $ 9,461 |
Accumulated Amortization | (6,935) | $ (7,540) |
Customer lists and amortized trademarks | ||
Intangible Assets [Line Items] | ||
Wtd Avg Life (Years) | 14 years | |
Ending Gross Amount | 62,806 | $ 267,096 |
Accumulated Amortization | (33,098) | $ (42,345) |
Non-compete agreements | ||
Intangible Assets [Line Items] | ||
Wtd Avg Life (Years) | 5 years | |
Ending Gross Amount | 1,653 | $ 982 |
Accumulated Amortization | (1,494) | $ (790) |
Other | ||
Intangible Assets [Line Items] | ||
Wtd Avg Life (Years) | 8 years | |
Ending Gross Amount | 5,219 | $ 4,743 |
Accumulated Amortization | $ (2,628) | $ (3,141) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 10,500 | $ 6,700 | $ 6,200 |
2022 | 19,288 | ||
2023 | 18,279 | ||
2024 | 17,567 | ||
2025 | 16,609 | ||
2026 | 15,699 | ||
Thereafter | 141,024 | ||
Total | $ 228,466 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - Stock Compensation Plan | Mar. 31, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock granted (shares) | 1,230,000 |
Shares available for issuance (shares) | 675,113 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 5,085 | $ 5,074 | $ 3,943 |
Related income tax benefit | (1,220) | (1,218) | (947) |
Net share-based compensation expense | 3,865 | 3,856 | 2,996 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 0 | 19 |
Related income tax benefit | 0 | 0 | (5) |
Net share-based compensation expense | 0 | 0 | 14 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5,085 | 5,074 | 3,924 |
Related income tax benefit | (1,220) | (1,218) | (942) |
Net share-based compensation expense | $ 3,865 | $ 3,856 | $ 2,982 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Number of Shares | ||
Outstanding at beginning of period (shares) | 115,858 | 231,717 |
Exercised (shares) | (52,445) | (115,859) |
Outstanding at end of period (shares) | 63,413 | 115,858 |
Exercisable at end of period (shares) | 63,413 | 115,858 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (USD per share) | $ 25.30 | $ 25.12 |
Exercised (USD per share) | 25.40 | 24.93 |
Outstanding at end of period (USD per share) | 25.23 | 25.30 |
Exercisable at end of period (USD per share) | $ 25.23 | $ 25.30 |
Outstanding, Remaining Contractual Life | 3 years 4 months 24 days | 4 years 1 month 6 days |
Exercisable, Remaining Contractual Life | 3 years 4 months 24 days | 4 years 1 month 6 days |
Outstanding, Aggregate Intrinsic Value | $ 7 | $ 4.6 |
Exercisable, Aggregate Intrinsic Value | $ 7 | $ 4.6 |
Share-Based Compensation - St_2
Share-Based Compensation - Stock Option Activity, Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received for options exercised | $ 1,330 | $ 0 | $ 0 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 0 | 0 | 0 |
Exercises in period, intrinsic value | $ 2,500 | $ 5,600 | $ 0 |
Cash received for options exercised | 1,300 | 2,900 | 0 |
Tax benefit from options exercised | 400 | 1,200 | 0 |
Options vested in period, fair value | $ 0 | $ 0 | $ 100 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock | 12 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (shares) | shares | 202,466 |
Granted (shares) | shares | 119,751 |
Vested (shares) | shares | (124,985) |
Canceled (shares) | shares | (24,316) |
Outstanding at end of period (shares) | shares | 172,916 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 60.78 |
Granted (USD per share) | $ / shares | 75.88 |
Vested (USD per share) | $ / shares | 52.89 |
Canceled (USD per share) | $ / shares | 70.67 |
Outstanding at end of period (USD per share) | $ / shares | $ 70.50 |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted Stock Activity, Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restricted Stock Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested restricted shares outstanding (shares) | 82,728 | 93,249 |
Restricted Stock Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance-based vesting range | 0.00% | |
Restricted Stock Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance-based vesting range | 200.00% | |
Restricted Stock Performance Shares | Cliff Vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 36 months | |
Restricted stock granted (shares) | 34,245 | 31,758 |
Restricted Stock Performance Shares | Cliff Vesting | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance-based vesting range | 0.00% | |
Restricted Stock Performance Shares | Cliff Vesting | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance-based vesting range | 200.00% | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested restricted shares outstanding (shares) | 172,916 | 202,466 |
Restricted stock granted (shares) | 119,751 | |
Unrecognized compensation costs related to unvested restricted shares | $ 6.9 | |
Weighted average vesting period | 1 year 10 months 24 days | |
Fair value of restricted shares vested | $ 8.5 | $ 6.3 |
Details of Certain Consolidat_3
Details of Certain Consolidated Balance Sheet Captions - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 97,610 | $ 76,050 |
Less: Allowance for doubtful accounts | (915) | (1,170) |
Accounts receivable, net | 96,695 | 74,880 |
Accounts receivable trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 93,366 | 72,601 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 4,244 | $ 3,449 |
Details of Certain Consolidat_4
Details of Certain Consolidated Balance Sheet Captions - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials and supplies | $ 27,416 | $ 20,935 |
Work in process | 6,365 | 6,076 |
Finished goods | 72,452 | 33,771 |
Total inventories | 106,233 | 60,782 |
Less: LIFO reserve | (4,565) | (4,816) |
Less: Obsolescence reserve | (3,582) | (2,213) |
Inventories, net | $ 98,086 | $ 53,753 |
Details of Certain Consolidat_5
Details of Certain Consolidated Balance Sheet Captions - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Land and improvements | $ 3,168 | $ 3,106 | |
Buildings and improvements | 53,020 | 44,612 | |
Plant, office and laboratory equipment | 95,848 | 72,652 | |
Construction in progress | 3,462 | 8,163 | |
Property, plant and equipment, gross | 155,498 | 128,533 | |
Less: Accumulated depreciation | (72,944) | (71,355) | |
Property, plant and equipment, net | 82,554 | 57,178 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | 9,194 | 7,918 | $ 7,411 |
Cost of revenue, depreciation | 7,100 | 6,600 | 6,100 |
Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 9,200 | $ 7,900 | $ 7,500 |
Details of Certain Consolidat_6
Details of Certain Consolidated Balance Sheet Captions - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Right-of-use lease assets | $ 61,707 | $ 16,383 |
Property held for investment | 967 | 6,819 |
Deferred income taxes | 1,462 | 0 |
Long-term tax indemnification assets | 7,500 | 0 |
Other | 4,359 | 949 |
Other assets | 75,995 | 24,151 |
Assets held for sale | $ 500 | $ 5,900 |
Details of Certain Consolidat_7
Details of Certain Consolidated Balance Sheet Captions - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Compensation and related benefits | $ 19,120 | $ 18,666 |
Rebates and marketing agreements | 9,031 | 6,409 |
Operating lease liabilities | 8,063 | 3,056 |
Billings in excess of costs | 1,463 | 2,892 |
Non-income taxes | 1,593 | 750 |
Income taxes payable | 3,755 | 529 |
Other accrued expenses | 6,718 | 4,305 |
Accrued and other current liabilities | $ 49,743 | $ 36,607 |
Details of Certain Consolidat_8
Details of Certain Consolidated Balance Sheet Captions - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating lease liabilities | $ 56,709 | $ 15,179 |
Deferred income taxes | 66,052 | 3,848 |
Tax Reserve | 13,228 | 623 |
Other | 736 | 1,492 |
Other long-term liabilities | $ 136,725 | $ 21,142 |
Long-Term Debt and Commitment_2
Long-Term Debt and Commitments - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Total debt | $ 242,337 | $ 10,898 |
Less: Current portion | (561) | (561) |
Long-term debt | 241,776 | 10,337 |
Secured Term Loan | Whitmore | ||
Debt Instrument [Line Items] | ||
Whitmore term loan, interest rate of 2.11% and 2.99%, respectively | $ 10,337 | $ 10,898 |
Interest rate | 2.11% | 2.99% |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, interest rate of 2.11% and 2.24%, respectively | $ 232,000 | $ 0 |
Interest rate | 2.11% | 2.24% |
Long-Term Debt and Commitment_3
Long-Term Debt and Commitments - Revolving Credit Agreement (Details) | May 18, 2021USD ($) | Dec. 11, 2015USD ($) | Mar. 31, 2021USD ($) | Dec. 01, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 15, 2017USD ($) |
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Maximum borrowing capacity | $ 250,000,000 | $ 300,000,000 | ||||
Line of credit facility, maximum borrowing capacity, sublimit | $ 125,000,000 | |||||
Commitment fee percentage | 0.30% | |||||
Revolving credit facility, amount outstanding | $ 232,000,000 | $ 0 | ||||
Revolving credit facility, remaining borrowing capacity | $ 68,000,000 | $ 300,000,000 | ||||
Minimum fixed charge coverage ratio | 1.25 | |||||
Maximum leverage ratio | 3.75 | |||||
Revolving Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Maximum borrowing capacity | $ 400,000,000 | |||||
Minimum fixed charge coverage ratio | 1.25 | |||||
Maximum leverage ratio | 3 | |||||
Percentage of voting equity interests in first-tier foreign subsidiaries | 65.00% | |||||
Temporary increase amount of maximum leverage ratio | 3.75 | |||||
Duration of temporary increase for maximum leverage ratio | 18 months | |||||
Revolving Credit Facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Spread on interest rate | 1.00% | |||||
Revolving Credit Facility | Federal Funds Effective Rate | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Spread on interest rate | 0.50% | |||||
Revolving Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Spread on interest rate | 2.00% | |||||
Revolving Credit Facility | LIBOR | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Spread on interest rate | 1.00% | |||||
Revolving Credit Facility, Accordion Feature | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Letter of Credit | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Swingline Loans | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 10,000,000 |
Long-Term Debt and Commitment_4
Long-Term Debt and Commitments - Whitmore Term Loan (Details) - Secured Term Loan - Whitmore - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Debt instrument, periodic principal payment | $ 140,000 | |
Outstanding borrowings under term loan | $ 10,337,000 | $ 10,898,000 |
LIBOR | ||
Debt Instrument [Line Items] | ||
Spread on interest rate | 2.00% |
Long-Term Debt and Commitment_5
Long-Term Debt and Commitments - Aggregate Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 561 | |
2023 | 232,561 | |
2024 | 561 | |
2025 | 561 | |
2026 | 561 | |
Thereafter | 7,532 | |
Total debt | $ 242,337 | $ 10,898 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 1 Months Ended | |
Oct. 31, 2019USD ($)lease | Mar. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Number of operating leases terminated | lease | 2 | |
Early lease termination fee | $ | $ 0.5 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 27 years |
Leases - Components of Operatin
Leases - Components of Operating Lease Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 5,243 | $ 3,524 |
Short-term lease expense | 377 | 225 |
Total operating lease expense | $ 5,620 | $ 3,749 |
Leases - Operating Lease Assets
Leases - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
ROU assets, net | $ 61,707 | $ 16,383 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Short-term lease liabilities | $ 8,063 | $ 3,056 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Long-term lease liabilities | $ 56,709 | $ 15,179 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Total operating lease liabilities | $ 64,772 | $ 18,235 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 5,578 | $ 3,824 |
ROU assets obtained in exchange for new operating lease obligations | $ 114 | $ 3,187 |
Leases - Other Information for
Leases - Other Information for Operating Leases (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 8 years 2 months 12 days | 6 years 2 months 12 days |
Weighted average discount rate (percent) | 2.60% | 4.30% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 9,551 | |
2023 | 9,009 | |
2024 | 8,910 | |
2025 | 8,785 | |
2026 | 8,786 | |
Thereafter | 26,518 | |
Total lease liabilities | 71,559 | |
Less: Imputed interest | (6,787) | |
Present value of lease liabilities | $ 64,772 | $ 18,235 |
Derivative Instruments and He_3
Derivative Instruments and Hedge Accounting - Additional Information (Details) - Interest Rate Swap - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Notional amount | $ 10.3 | $ 10.9 |
Maximum remaining length of interest rate swap contract | 8 years 3 months 18 days |
Derivative Instruments and He_4
Derivative Instruments and Hedge Accounting - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Current derivative liabilities | $ 49,743 | $ 36,607 |
Non-current derivative liabilities | 136,725 | 21,142 |
Hedging Instrument | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Current derivative liabilities | 280 | 271 |
Non-current derivative liabilities | $ 736 | $ 1,492 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Income from continuing operations | $ 9,600 | $ 2,300 | $ 16,400 | $ 12,000 | $ 13,400 | $ 7,300 | $ 8,800 | $ 15,300 | $ 40,288 | $ 44,817 | $ 46,052 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 1,200 | 0 | 0 | (100) | 0 | 1,061 | (478) |
Net income | $ 9,600 | $ 2,300 | $ 16,400 | $ 12,000 | $ 14,600 | $ 7,300 | $ 8,800 | $ 15,200 | $ 40,288 | $ 45,878 | $ 45,574 |
Weighted average shares: | |||||||||||
Common stock (in shares) | 14,919 | 14,928 | 15,257 | ||||||||
Participating securities (in shares) | 96 | 111 | 157 | ||||||||
Denominator for basic earnings per common share (in shares) | 15,015 | 15,039 | 15,414 | ||||||||
Potentially dilutive securities (in shares) | 111 | 167 | 118 | ||||||||
Denominator for diluted earnings per common share (in shares) | 15,126 | 15,206 | 15,532 | ||||||||
Basic earnings (loss) per common share: | |||||||||||
Continuing operations (USD per share) | $ 0.62 | $ 0.16 | $ 1.11 | $ 0.81 | $ 0.89 | $ 0.48 | $ 0.59 | $ 1.02 | $ 2.68 | $ 2.98 | $ 2.99 |
Discontinued operations (USD per share) | 0 | 0 | 0 | 0 | 0.08 | 0 | (0.01) | (0.01) | 0 | 0.07 | (0.03) |
Net income (USD per share) | 0.62 | 0.16 | 1.11 | 0.81 | 0.97 | 0.48 | 0.58 | 1.01 | 2.68 | 3.05 | 2.96 |
Diluted earnings per common share: | |||||||||||
Continuing operations (USD per share) | 0.61 | 0.16 | 1.10 | 0.81 | 0.88 | 0.48 | 0.58 | 1.01 | 2.66 | 2.95 | 2.96 |
Discontinued operations (USD per share) | 0 | 0 | 0 | 0 | 0.08 | 0 | 0 | (0.01) | 0 | 0.07 | (0.03) |
Net income (USD per share) | $ 0.61 | $ 0.16 | $ 1.10 | $ 0.81 | $ 0.96 | $ 0.48 | $ 0.58 | $ 1 | $ 2.66 | $ 3.02 | $ 2.93 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Apr. 15, 2021 | Apr. 04, 2019 | Nov. 07, 2018 | Nov. 11, 2016 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Oct. 31, 2018 | Oct. 30, 2020 |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Approved quarterly dividend rate (USD per share) | $ 0.135 | $ 0.150 | |||||||
Dividends paid | $ 8,083,000 | $ 8,130,000 | $ 0 | ||||||
Subsequent Event | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Dividend declared (USD per share) | $ 0.150 | ||||||||
2016 Share Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Authorized repurchase amount | $ 35,000,000 | ||||||||
Repurchase program period in force | 2 years | ||||||||
Shares repurchased (shares) | 629,659 | 656,203 | |||||||
Repurchased amount | $ 33,800,000 | $ 35,000,000 | |||||||
2018 Share Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Authorized repurchase amount | $ 75,000,000 | ||||||||
Repurchase program period in force | 2 years | ||||||||
Shares repurchased (shares) | 115,151 | 393,836 | |||||||
Repurchased amount | $ 7,300,000 | $ 26,900,000 | |||||||
2020 Share Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Authorized repurchase amount | $ 100,000,000 | ||||||||
Shares repurchased (shares) | 0 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Aug. 31, 2019 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Company contributions | $ 69,000 | $ 93,000 | ||||||
Settlements | 0 | 54,605,000 | ||||||
Pension plan curtailment benefit | 0 | 6,472,000 | $ 0 | |||||
Estimated prior service costs amortized from accumulated other comprehensive loss into pension expense in next fiscal year | 100,000 | |||||||
Estimated net loss amortized from accumulated other comprehensive loss into pension expense in next fiscal year | 100,000 | |||||||
Plan assets at fair value | $ 1,898,000 | $ 2,492,000 | 1,898,000 | 55,009,000 | ||||
Pension Plan | Canadian Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan number of consecutive terms of highest compensation | 60 months | |||||||
Defined benefit plan number of years of employment | 10 years | |||||||
Company contributions | $ 100,000 | |||||||
Estimated contributions made under defined benefit plan, next fiscal year | $ 100,000 | |||||||
Pension Plan | Canadian Plan | Other | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Current target allocations, percentage of total assets | 100.00% | |||||||
Pension Plan | Canadian Plan | Other | Hierarchical Level 2 | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Plan assets at fair value | $ 2,500,000 | |||||||
Pension Plan | Qualified Plan | U.S. | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan number of consecutive terms of highest compensation | 5 years | |||||||
Defined benefit plan number of years of employment | 10 years | |||||||
Company contributions | $ 0 | $ 0 | $ 0 | |||||
Defined benefit plan, lump sum payments to terminated vested participants, percentage of liability | 16.00% | |||||||
Defined benefit plan, percentage of participants, settlement | 67.00% | |||||||
Settlements | $ 7,300,000 | |||||||
Lump sum payments offered to eligible active and terminated vested participants, percent of remaining liability | 42.00% | |||||||
Percent of participants that accepted lump sum payment offer | 74.00% | |||||||
Aggregate amount of lump sum payments | $ 17,000,000 | |||||||
Additional contribution required due to termination | $ 500,000 | |||||||
Pension plan curtailment benefit | 7,000,000 | |||||||
Overall termination charge, net of tax | $ 5,400,000 | |||||||
Excess funds distributed to Defined Contribution Plan | $ 500,000 |
Retirement Plans - Summary of A
Retirement Plans - Summary of Assumptions (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Assumptions used to determine benefit obligations: | |||
Discount rate | 3.30% | 3.60% | 4.00% |
Rate of compensation increases | 3.00% | 3.00% | 3.00% |
Assumptions used to determine net pension expense: | |||
Discount rate | 3.60% | 4.00% | 4.00% |
Expected return on plan assets | 4.80% | 4.80% | 4.60% |
Rate of compensation increases | 3.00% | 3.00% | 3.00% |
Pension Plan | Canadian Plan | |||
Assumptions used to determine net pension expense: | |||
Rate of compensation increases | 3.00% |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Net Pension (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Service cost – benefits earned during the year | $ 40 | $ 71 | $ 76 |
Interest cost on projected benefit obligation | 144 | 1,136 | 2,113 |
Expected return on assets | (96) | (1,361) | (2,656) |
Net amortization and deferral | 74 | 56 | 47 |
Pension plan termination | 0 | 6,472 | 0 |
Net pension expense (benefit) | $ 162 | $ 6,374 | $ (420) |
Retirement Plans - Summary of C
Retirement Plans - Summary of Changes in Pension Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 3,880 | $ 53,993 | |
Service cost | 40 | 71 | $ 76 |
Interest cost | 144 | 1,136 | 2,113 |
Actuarial gain | 212 | 5,103 | |
Benefits paid | (265) | (1,697) | |
Pension plan termination | 0 | (54,605) | |
Currency translation impact | 280 | (121) | |
Benefit obligation at end of year | 4,291 | 3,880 | $ 53,993 |
Accumulated benefit obligation | $ 3,990 | $ 3,690 |
Retirement Plans - Summary of R
Retirement Plans - Summary of Reconciliation of Plan's Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 1,898 | $ 55,009 |
Actual return on plan assets | 441 | 3,093 |
Benefits paid | (159) | (1,591) |
Company contributions | 69 | 93 |
Pension plan termination | 0 | (54,605) |
Currency translation impact | 243 | (101) |
Fair value of plan assets at end of year | $ 2,492 | $ 1,898 |
Retirement Plans - Summary of N
Retirement Plans - Summary of Net Pension Asset (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Plan assets at fair value | $ 2,492 | $ 1,898 | $ 55,009 |
Benefit obligation | (4,291) | (3,880) | $ (53,993) |
Unfunded status | $ (1,799) | $ (1,982) |
Retirement Plans - Summary of_2
Retirement Plans - Summary of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Retirement Benefits [Abstract] | ||
Current liabilities | $ (104) | $ (103) |
Noncurrent liabilities | (1,695) | (1,879) |
Unfunded status | $ (1,799) | $ (1,982) |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Change in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss at beginning of year | $ (871) | $ (3,466) |
Amortization of net loss | 62 | 47 |
Amortization of prior service benefit (cost) | (31) | 21 |
Pension plan termination | 0 | 2,516 |
Net gain (loss) arising during the year | 96 | (17) |
Currency translation impact | (55) | 28 |
Accumulated other comprehensive loss at end of year | $ (799) | $ (871) |
Retirement Plans - Schedule o_3
Retirement Plans - Schedule of Amounts Recorded in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Retirement Benefits [Abstract] | |||
Net prior service cost | $ 27 | $ 56 | |
Net loss | (826) | (927) | |
Accumulated other comprehensive loss | $ (799) | $ (871) | $ (3,466) |
Retirement Plans - Schedule o_4
Retirement Plans - Schedule of Actual Asset Allocations (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation, percentage | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation, percentage | 0.00% | 0.00% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation, percentage | 0.00% | 0.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation, percentage | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocation, percentage | 0.00% | 0.00% |
Retirement Plans - Summary of E
Retirement Plans - Summary of Expected Cash Benefit Payments (Details) $ in Millions | Mar. 31, 2021USD ($) |
Retirement Benefits [Abstract] | |
2022 | $ 0.2 |
2023 | 0.2 |
2024 | 0.2 |
2025 | 0.2 |
2026 | 0.2 |
Thereafter | $ 1.1 |
Retirement Plans - Defined Cont
Retirement Plans - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Employer matching contribution, percent of match | 100.00% | |
Employer matching contribution, percent of employees' gross pay | 6.00% | |
Contributions to defined contribution plan | $ 3.9 | $ 4 |
Retirement Plans - Employee Sto
Retirement Plans - Employee Stock Ownership Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Period of credited service after which participant's interest in contributions to ESOP fully vest | 3 years | ||
Contributions to the ESOP | $ 3.6 | $ 3.2 | $ 1.6 |
ESOP expense recorded | $ 2.6 | ||
CSWI | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares held in ESOP (in shares) | 628,289 | 718,646 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. Federal | $ 48,392 | $ 53,946 | $ 53,375 | ||||||||
Foreign | 2,726 | 3,655 | 8,066 | ||||||||
Income before income taxes | $ 10,900 | $ 3,100 | $ 21,500 | $ 15,600 | $ 16,000 | $ 9,400 | $ 12,500 | $ 19,700 | $ 51,118 | $ 57,601 | $ 61,441 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current | |||
U.S. Federal | $ 6,773 | $ 8,466 | $ 10,298 |
State and local | 3,561 | 1,999 | 2,729 |
Foreign | 1,641 | 1,968 | 1,881 |
Provision for income taxes | 11,975 | 12,433 | 14,908 |
Deferred | |||
U.S. Federal | (1,150) | 673 | 644 |
State and local | (500) | (100) | (280) |
Foreign | 505 | (222) | 117 |
Provision for income taxes | (1,145) | 351 | 481 |
Total | |||
U.S. Federal | 5,623 | 9,139 | 10,942 |
State and local | 3,061 | 1,899 | 2,449 |
Foreign | 2,146 | 1,746 | 1,998 |
Provision for income taxes | $ 10,830 | $ 12,784 | $ 15,389 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 15, 2020 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory income tax rate percentage | 21.00% | 21.00% | 21.00% | ||
Effective tax rate | 21.20% | 22.20% | 25.00% | ||
Decrease in provision due to release of uncertain tax positions | $ 4,717,000 | $ 1,615,000 | $ (244,000) | ||
Decrease in effective tax rate due to release of uncertain tax positions | 9.20% | 2.80% | |||
Increase in provision due to state tax expense impact (net of federal benefits) | $ 2,419,000 | $ 1,943,000 | 2,222,000 | ||
Increase in effective tax rate due to state tax expense impact (net of federal benefits) | 4.70% | 3.40% | |||
Increase in provision due to additional non-deductible expenses | $ 1,438,000 | $ (546,000) | $ (276,000) | ||
Increase in effective tax rate due to additional non-deductible expenses | 2.80% | ||||
Tax effected net operating loss carryforwards, net of valuation allowances | $ 0 | $ 0 | $ 0 | ||
Earnings related to foreign subsidiaries for which taxes are not provided | 17,000,000 | 17,000,000 | |||
Business Acquisition [Line Items] | |||||
Accrued interest on uncertain tax positions | 1,000,000 | 1,000,000 | |||
Accrued penalties on uncertain tax positions | 1,800,000 | 1,800,000 | |||
Tax benefit recognized as a result of receiving audit closing letter from IRS related to calendar 2017, a pre-acquisition tax year | 5,300,000 | ||||
Release of accrued interest | 600,000 | ||||
Release of penalty | 600,000 | ||||
Net decrease in income tax expense from interest and penalties related to uncertain tax positions | 900,000 | ||||
T.A. Industries (TRUaire) | |||||
Business Acquisition [Line Items] | |||||
Tax contingency reserves | 17,321,000 | 17,321,000 | $ 22,511,000 | ||
Unrecognized tax benefit related to acquisition | 13,600,000 | ||||
Accrued interest on uncertain tax positions | 1,400,000 | 1,400,000 | |||
Accrued penalties on uncertain tax positions | $ 2,300,000 | $ 2,300,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Computed tax expense at statutory rate | $ 10,735 | $ 12,096 | $ 12,903 |
Increase (reduction) in income taxes resulting from: | |||
State and local income taxes, net of federal benefits | 2,419 | 1,943 | 2,222 |
Amended return items (pension and foreign withholding) | 0 | 975 | 0 |
IRS audit adjustments | 0 | 502 | 0 |
GILTI and Section 250 Deduction | 440 | 124 | 749 |
Foreign rate differential | 85 | 84 | 302 |
Uncertain tax positions | (4,717) | (1,615) | 244 |
Other permanent differences | 1,438 | (546) | (276) |
Foreign tax credits | (554) | (479) | (1,123) |
Repatriation tax, net of tax credit | 822 | 0 | 0 |
Other, net | 162 | (300) | 368 |
Provision for income taxes | $ 10,830 | $ 12,784 | $ 15,389 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets: | ||
Operating lease liabilities | $ 14,680 | $ 4,380 |
Accrued compensation | 3,878 | 3,997 |
Impairment | 386 | 386 |
Pension and other employee benefits | 313 | 362 |
Inventory reserves | 1,330 | 197 |
Net operating loss carryforwards | 145 | 145 |
Accrued expenses | 244 | 141 |
Foreign tax credit carry-forward | 130 | 40 |
State R&D credit carry-forward | 120 | 0 |
Transaction Costs | 630 | 0 |
Other, net | 1,455 | 934 |
Deferred tax assets | 23,311 | 10,582 |
Valuation allowance | (145) | (145) |
Deferred tax assets, net of valuation allowance | 23,166 | 10,437 |
Deferred tax liabilities: | ||
Goodwill and intangible assets | (65,070) | (5,740) |
Property, plant and equipment | (7,816) | (4,444) |
Operating lease - ROU assets | (13,631) | (3,943) |
Repatriation reserve | (942) | 0 |
Other, net | (297) | (158) |
Deferred tax liabilities | (87,756) | (14,285) |
Net deferred tax liabilities | $ (64,590) | $ (3,848) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 498 | $ 1,910 |
Increases related to prior year tax positions | 13,895 | 0 |
Decreases related to prior year tax positions | (4,215) | (1,304) |
Increases related to current year tax positions | 34 | 64 |
Settlement | 0 | (172) |
Balance at end of year | $ 10,212 | $ 498 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 276,741 | $ 263,686 | $ 265,765 |
Other comprehensive loss | 5,450 | (717) | (3,254) |
Balance at end of period | 412,013 | 276,741 | 263,686 |
Expected loss from currency cash flow hedge, next 12 months (less than) | 200 | ||
Currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (9,185) | (6,869) | |
Other comprehensive loss | 4,791 | (2,316) | |
Balance at end of period | (4,394) | (9,185) | (6,869) |
Interest rate swaps | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (1,390) | (394) | |
Unrealized losses (gain), net of taxes | 362 | (1,069) | |
Reclassification of other comprehensive loss (income), net of taxes | 225 | 73 | |
Other comprehensive loss | 587 | (996) | |
Balance at end of period | (803) | (1,390) | (394) |
Unrealized losses, tax | (96) | 284 | |
Reclassification from AOCI, tax | (60) | (19) | |
Defined benefit plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (871) | (3,466) | |
Other comprehensive loss | 72 | 2,595 | |
Balance at end of period | (799) | (871) | $ (3,466) |
Amortization of net prior service cost (benefit), net of taxes | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification of other comprehensive loss (income), net of taxes | (31) | 21 | |
Reclassification from AOCI, tax | 8 | (6) | |
Amortization of net loss, net of taxes | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification of other comprehensive loss (income), net of taxes | 62 | 47 | |
Reclassification from AOCI, tax | (16) | (12) | |
Net loss (gain) arising during the year, net of taxes | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive loss | 96 | (17) | |
Other comprehensive (loss) income, tax | (26) | 5 | |
Pension plan termination, net of taxes | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive loss | 0 | 2,516 | |
Other comprehensive (loss) income, tax | 0 | (669) | |
Currency translation impact | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive loss | $ (55) | $ 28 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |||||||||||
Number of business segments | segment | 2 | ||||||||||
Net revenues | $ 133,400 | $ 89,900 | $ 104,900 | $ 91,000 | $ 98,600 | $ 83,700 | $ 101,300 | $ 102,300 | $ 419,205 | $ 385,871 | $ 350,155 |
Change in Contract Liabilities [Roll Forward] | |||||||||||
Balance at beginning of period | $ 2,892 | 2,892 | |||||||||
Revenue recognized | (2,612) | ||||||||||
New contracts and revenue added to existing contracts | 1,183 | ||||||||||
Balance at end of period | $ 1,463 | $ 2,892 | 1,463 | 2,892 | |||||||
Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 419,205 | 385,871 | 350,155 | ||||||||
Industrial Products | Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 289,416 | 234,895 | 205,931 | ||||||||
Specialty Chemicals | Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 129,789 | 150,976 | 144,224 | ||||||||
Build-to-order | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Retainage, percentage of transaction price not collectible until overall construction project is complete | 10.00% | ||||||||||
Lead times for transfer to customer | 84 days | ||||||||||
Build-to-order | Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 87,057 | 82,357 | 69,564 | ||||||||
Build-to-order | Industrial Products | Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 87,057 | 82,357 | 69,564 | ||||||||
Build-to-order | Specialty Chemicals | Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 0 | 0 | 0 | ||||||||
Installation Services | Total Consolidated Revenue | Product Concentration Risk | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percentage of total consolidated revenue | 3.00% | ||||||||||
Book-and-ship | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Lead times for transfer to customer | 7 days | ||||||||||
Book-and-ship | Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 332,148 | 303,514 | 280,591 | ||||||||
Book-and-ship | Industrial Products | Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 202,359 | 152,538 | 136,367 | ||||||||
Book-and-ship | Specialty Chemicals | Reportable Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 129,789 | $ 150,976 | $ 144,224 |
Segments - Summary of Financial
Segments - Summary of Financial Information of Reporting Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues, net | $ 133,400 | $ 89,900 | $ 104,900 | $ 91,000 | $ 98,600 | $ 83,700 | $ 101,300 | $ 102,300 | $ 419,205 | $ 385,871 | $ 350,155 |
Operating income | 59,470 | 66,067 | 60,440 | ||||||||
Depreciation and amortization | 23,037 | 14,844 | 13,836 | ||||||||
Total Assets | 874,957 | 369,245 | 874,957 | 369,245 | 352,632 | ||||||
Specialty Chemicals | Trademarks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Impairment of unamortized trademarks | 1,000 | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues, net | 419,205 | 385,871 | 350,155 | ||||||||
Operating income | 73,904 | 80,416 | 72,747 | ||||||||
Depreciation and amortization | 22,173 | 14,142 | 13,152 | ||||||||
Total Assets | 861,718 | 344,373 | 861,718 | 344,373 | 325,267 | ||||||
Operating Segments | Industrial Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues, net | 289,416 | 234,895 | 205,931 | ||||||||
Operating income | 55,641 | 55,725 | 48,817 | ||||||||
Depreciation and amortization | 15,255 | 6,573 | 5,871 | ||||||||
Total Assets | 741,726 | 205,518 | 741,726 | 205,518 | 187,680 | ||||||
Operating Segments | Specialty Chemicals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues, net | 129,789 | 150,976 | 144,224 | ||||||||
Operating income | 18,263 | 24,691 | 23,930 | ||||||||
Depreciation and amortization | 6,918 | 7,569 | 7,281 | ||||||||
Total Assets | 119,992 | 138,855 | 119,992 | 138,855 | 137,587 | ||||||
Eliminations and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues, net | 0 | 0 | 0 | ||||||||
Operating income | (14,434) | (14,349) | (12,307) | ||||||||
Depreciation and amortization | 864 | 702 | 684 | ||||||||
Total Assets | $ 13,239 | $ 24,872 | $ 13,239 | $ 24,872 | $ 27,365 |
Segments - Schedule of Sales an
Segments - Schedule of Sales and Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues, net | $ 133,400 | $ 89,900 | $ 104,900 | $ 91,000 | $ 98,600 | $ 83,700 | $ 101,300 | $ 102,300 | $ 419,205 | $ 385,871 | $ 350,155 |
Long-lived assets | 660,404 | 219,200 | $ 660,404 | $ 219,200 | $ 201,365 | ||||||
Net Revenues | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
Long-lived Assets | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues, net | $ 367,169 | $ 323,000 | $ 286,545 | ||||||||
Long-lived assets | 617,258 | 196,679 | $ 617,258 | $ 196,679 | $ 176,935 | ||||||
U.S. | Net Revenues | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk, percentage | 87.60% | 83.70% | 81.80% | ||||||||
U.S. | Long-lived Assets | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk, percentage | 93.50% | 89.70% | 87.90% | ||||||||
Non-U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues, net | $ 52,036 | $ 62,871 | $ 63,610 | ||||||||
Long-lived assets | $ 43,146 | $ 22,521 | $ 43,146 | $ 22,521 | $ 24,430 | ||||||
Non-U.S. | Net Revenues | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk, percentage | 12.40% | 16.30% | 18.20% | ||||||||
Non-U.S. | Long-lived Assets | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk, percentage | 6.50% | 10.30% | 12.10% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenues, net | $ 133,400 | $ 89,900 | $ 104,900 | $ 91,000 | $ 98,600 | $ 83,700 | $ 101,300 | $ 102,300 | $ 419,205 | $ 385,871 | $ 350,155 | |
Gross profit | 54,000 | 39,300 | 48,700 | 42,800 | 44,800 | 37,700 | 47,400 | 47,200 | 184,800 | 177,050 | 161,370 | |
Income before income taxes | 10,900 | 3,100 | 21,500 | 15,600 | 16,000 | 9,400 | 12,500 | 19,700 | 51,118 | 57,601 | 61,441 | |
Income from continuing operations | 9,600 | 2,300 | 16,400 | 12,000 | 13,400 | 7,300 | 8,800 | 15,300 | 40,288 | 44,817 | 46,052 | |
Income (loss) from discontinued operations, net | 0 | 0 | 0 | 0 | 1,200 | 0 | 0 | (100) | 0 | 1,061 | (478) | |
Net income | $ 9,600 | $ 2,300 | $ 16,400 | $ 12,000 | $ 14,600 | $ 7,300 | $ 8,800 | $ 15,200 | $ 40,288 | $ 45,878 | $ 45,574 | |
Basic earnings per common share: | ||||||||||||
Continuing operations (USD per share) | $ 0.62 | $ 0.16 | $ 1.11 | $ 0.81 | $ 0.89 | $ 0.48 | $ 0.59 | $ 1.02 | $ 2.68 | $ 2.98 | $ 2.99 | |
Discontinued operations (USD per share) | 0 | 0 | 0 | 0 | 0.08 | 0 | (0.01) | (0.01) | 0 | 0.07 | (0.03) | |
Net income (USD per share) | 0.62 | 0.16 | 1.11 | 0.81 | 0.97 | 0.48 | 0.58 | 1.01 | 2.68 | 3.05 | 2.96 | |
Diluted earnings per common share: | ||||||||||||
Continuing operations (USD per share) | 0.61 | 0.16 | 1.10 | 0.81 | 0.88 | 0.48 | 0.58 | 1.01 | 2.66 | 2.95 | 2.96 | |
Discontinued operations (USD per share) | 0 | 0 | 0 | 0 | 0.08 | 0 | 0 | (0.01) | 0 | 0.07 | (0.03) | |
Net income (USD per share) | $ 0.61 | $ 0.16 | $ 1.10 | $ 0.81 | $ 0.96 | $ 0.48 | $ 0.58 | $ 1 | $ 2.66 | $ 3.02 | $ 2.93 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Indemnification expense | $ 5,000 | |||||||||||
Specialty Chemicals | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Transaction expenses related to formation of joint venture | 1,600 | |||||||||||
Trademark | ||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||||
Tradename impairment | $ 1,000 | |||||||||||
T.A. Industries (TRUaire) | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Income before income taxes | $ (400) | |||||||||||
Business Acquisition [Line Items] | ||||||||||||
Transaction expenses incurred | 800 | $ 7,800 | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Indemnification expense | $ 5,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | May 18, 2021 | Apr. 01, 2021 | Dec. 11, 2015 | Dec. 01, 2020 |
Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $ 250,000,000 | $ 300,000,000 | ||
Debt instrument term | 5 years | |||
Subsequent Event | Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $ 400,000,000 | |||
Debt instrument term | 5 years | |||
Subsequent Event | Whitmore | Shell | ||||
Subsequent Event [Line Items] | ||||
Equity interest sold | 50.00% | |||
Consideration received in conjunction with JV formation | $ 13,700,000 |
Uncategorized Items - cswi-2021
Label | Element | Value |
Accounting Standards Update 2018-02 [Member] | ||
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2018-02 [Member] |
Accounting Standards Update 2016-09 [Member] | ||
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-09 [Member] |
Accounting Standards Update 2014-09 [Member] | ||
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2014-09 [Member] |