Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 001-38265 |
Entity Registrant Name | nVent Electric plc |
Entity Incorporation, State or Country Code | L2 |
Entity Tax Identification Number | 98-1391970 |
Entity Address, Address Line One | The Mille, 1000 Great West Road, 8th Floor (East) |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | TW8 9DW |
Entity Address, Country | GB |
Country Region | 44 |
City Area Code | 20 |
Local Phone Number | 3966-0279 |
Title of 12(b) Security | Ordinary Shares, nominal value $0.01 per share |
Trading Symbol | NVT |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 169,849,544 |
Entity Central Index Key | 0001720635 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Condensed Consolidated and Comb
Condensed Consolidated and Combined Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 520.9 | $ 538 |
Cost of goods sold | 325.6 | 328.1 |
Gross profit | 195.3 | 209.9 |
Selling, general and administrative | 123.1 | 120.1 |
Research and development | 11.9 | 12.3 |
Operating income | 60.3 | 77.5 |
Net interest expense | 9.9 | 10.5 |
Other expense | 0.8 | 0.9 |
Income before income taxes | 49.6 | 66.1 |
Provision for income taxes | 31 | 9.7 |
Net income | 18.6 | 56.4 |
Comprehensive income, net of tax | ||
Net income | 18.6 | 56.4 |
Changes in cumulative translation adjustment | (23.5) | 3 |
Changes in market value of derivative financial instruments, net of tax | 17 | (6.2) |
Comprehensive income | $ 12.1 | $ 53.2 |
Earnings per ordinary share | ||
Basic pro forma earnings per ordinary share (in dollars per share) | $ 0.11 | $ 0.32 |
Diluted pro forma earnings per ordinary share (in dollars per share) | $ 0.11 | $ 0.32 |
Weighted average ordinary shares outstanding | ||
Basic (shares) | 169.8 | 176.5 |
Diluted (shares) | 171 | 178.2 |
Cash dividends paid per ordinary share (in usd per share) | $ 0.175 | $ 0.175 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 187.9 | $ 106.4 |
Accounts and notes receivable, net of allowances of $5.7 and $5.4, respectively | 333.1 | 334.3 |
Inventories | 249 | 244.7 |
Other current assets | 115.8 | 113.3 |
Total current assets | 885.8 | 798.7 |
Property, plant and equipment, net | 278.6 | 284.5 |
Other assets | ||
Goodwill | 2,290.8 | 2,279.1 |
Intangibles, net | 1,154.4 | 1,160.5 |
Other non-current assets | 120.6 | 117.5 |
Total other assets | 3,565.8 | 3,557.1 |
Total assets | 4,730.2 | 4,640.3 |
Current liabilities | ||
Current maturities of long-term debt and short-term borrowings | 18.8 | 17.5 |
Accounts payable | 150.9 | 187.1 |
Employee compensation and benefits | 60.9 | 71.9 |
Other current liabilities | 178.6 | 185.7 |
Total current liabilities | 409.2 | 462.2 |
Other liabilities | ||
Long-term debt | 1,192.4 | 1,047.1 |
Pension and other post-retirement compensation and benefits | 208.2 | 207.2 |
Deferred tax liabilities | 254 | 237.8 |
Other non-current liabilities | 89.8 | 93.5 |
Total liabilities | 2,153.6 | 2,047.8 |
Equity | ||
Ordinary shares $0.01 par value, 400.0 authorized, 169.8 and 169.5 issued at March 31, 2020 and December 31, 2019, respectively | 1.7 | 1.7 |
Additional paid-in capital | 2,504.5 | 2,502.7 |
Retained earnings | 175.5 | 186.7 |
Accumulated other comprehensive loss | (105.1) | (98.6) |
Total equity | 2,576.6 | 2,592.5 |
Total liabilities and equity | $ 4,730.2 | $ 4,640.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowances | $ 5.7 | $ 5.4 |
Ordinary shares, par value (in dollars per share) | $ 0.01 | |
Ordinary shares authorized (in shares) | 400,000,000 | |
Ordinary shares issued (in shares) | 169,800,000 | 177,200,000 |
Condensed Consolidated and Co_2
Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 18.6 | $ 56.4 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||
Depreciation | 9.6 | 8.4 |
Amortization | 16 | 15.1 |
Deferred income taxes | 26 | (2.1) |
Share-based compensation | 1.9 | 4.3 |
Changes in assets and liabilities, net of effects of business acquisitions | ||
Accounts and notes receivable | (2.6) | (1.5) |
Inventories | (6.1) | (16.8) |
Other current assets | (5.7) | (8.8) |
Accounts payable | (33.3) | (40.8) |
Employee compensation and benefits | (9.3) | (11.2) |
Other current liabilities | (8.6) | (2.5) |
Other non-current assets and liabilities | 0.2 | (13.6) |
Net cash provided by (used for) operating activities | 6.7 | (13.1) |
Investing activities | ||
Capital expenditures | (10.2) | (9.2) |
Proceeds from sale of property and equipment | 1.1 | 6 |
Acquisitions, net of cash acquired | (27) | 0 |
Net cash provided by (used for) investing activities | (36.1) | (3.2) |
Financing activities | ||
Net receipts of revolving long-term debt | 150 | 0 |
Repayments of long-term debt | (3.8) | (2.5) |
Dividends paid | (29.7) | (31) |
Shares issued to employees, net of shares withheld | 3 | 1 |
Repurchases of ordinary shares | (3.2) | (76.1) |
Net cash provided by (used for) financing activities | 116.3 | (108.6) |
Effect of exchange rate changes on cash and cash equivalents | (5.4) | (1.5) |
Change in cash and cash equivalents | 81.5 | (126.4) |
Cash and cash equivalents, beginning of period | 106.4 | 159 |
Cash and cash equivalents, end of period | $ 187.9 | $ 32.6 |
Condensed Consolidated and Co_3
Condensed Consolidated and Combined Statements of Changes in Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Ordinary shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss |
Beginning balance (in shares) at Dec. 31, 2018 | 177.2 | ||||
Beginning balance at Dec. 31, 2018 | $ 2,687.1 | $ 1.8 | $ 2,709.7 | $ 83.4 | $ (107.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 56.4 | 56.4 | |||
Other comprehensive income (loss), net of tax | (3.2) | (3.2) | |||
Dividends declared | $ (30.6) | (30.6) | |||
Share repurchases (in shares) | (3) | (3) | |||
Share repurchases | $ (79.9) | $ (0.1) | (79.8) | ||
Exercise of options, net of shares tendered for payment (in shares) | 0.3 | ||||
Exercise of options, net of shares tendered for payment | $ 3.6 | 3.6 | |||
Issuance of restricted shares, net of cancellations | 0 | 0.3 | |||
Shares surrendered by employees to pay taxes | $ (2.6) | $ (0.1) | (2.6) | ||
Share-based compensation | 4.3 | 4.3 | |||
Ending balance (in shares) at Mar. 31, 2019 | 174.7 | ||||
Ending balance at Mar. 31, 2019 | 2,635.1 | $ 1.7 | 2,635.2 | 109.2 | (111) |
Beginning balance (in shares) at Dec. 31, 2019 | 169.5 | ||||
Beginning balance at Dec. 31, 2019 | 2,592.5 | $ 1.7 | 2,502.7 | 186.7 | (98.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 18.6 | 18.6 | |||
Other comprehensive income (loss), net of tax | (6.5) | (6.5) | |||
Dividends declared | $ (29.8) | (29.8) | |||
Share repurchases (in shares) | (0.2) | (0.2) | |||
Share repurchases | $ (3.2) | $ 0 | (3.2) | ||
Exercise of options, net of shares tendered for payment (in shares) | 0.3 | ||||
Exercise of options, net of shares tendered for payment | $ 6.4 | 6.4 | |||
Issuance of restricted shares, net of cancellations | 0 | 0.3 | |||
Shares surrendered by employees to pay taxes | $ (3.3) | $ (0.1) | (3.3) | ||
Share-based compensation | 1.9 | 1.9 | |||
Ending balance (in shares) at Mar. 31, 2020 | 169.8 | ||||
Ending balance at Mar. 31, 2020 | $ 2,576.6 | $ 1.7 | $ 2,504.5 | $ 175.5 | $ (105.1) |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | In millions March 31, December 31, Inventories Raw materials and supplies $ 71.6 $ 67.1 Work-in-process 27.6 25.6 Finished goods 149.8 152.0 Total inventories $ 249.0 $ 244.7 Other current assets Contract assets $ 61.1 $ 69.4 Prepaid expenses 37.0 32.5 Prepaid income taxes 15.3 9.0 Other current assets 2.4 2.4 Total other current assets $ 115.8 $ 113.3 Property, plant and equipment, net Land and land improvements $ 39.6 $ 40.6 Buildings and leasehold improvements 176.1 181.6 Machinery and equipment 444.0 440.4 Construction in progress 16.6 16.5 Total property, plant and equipment 676.3 679.1 Accumulated depreciation and amortization 397.7 394.6 Total property, plant and equipment, net $ 278.6 $ 284.5 Other non-current assets Deferred compensation plan assets $ 13.8 $ 17.3 Lease right-of-use assets 43.9 44.2 Deferred tax assets 30.8 40.9 Other non-current assets 32.1 15.1 Total other non-current assets $ 120.6 $ 117.5 Other current liabilities Dividends payable $ 29.7 $ 29.7 Accrued rebates 31.8 44.1 Contract liabilities 14.6 13.7 Accrued taxes payable 18.9 24.8 Current lease liabilities 14.5 14.7 Other current liabilities 69.1 58.7 Total other current liabilities $ 178.6 $ 185.7 Other non-current liabilities Income taxes payable $ 34.5 $ 31.9 Deferred compensation plan liabilities 13.8 17.3 Non-current lease liabilities 33.6 33.7 Other non-current liabilities 7.9 10.6 Total other non-current liabilities $ 89.8 $ 93.5 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | In millions March 31, December 31, Inventories Raw materials and supplies $ 71.6 $ 67.1 Work-in-process 27.6 25.6 Finished goods 149.8 152.0 Total inventories $ 249.0 $ 244.7 Other current assets Contract assets $ 61.1 $ 69.4 Prepaid expenses 37.0 32.5 Prepaid income taxes 15.3 9.0 Other current assets 2.4 2.4 Total other current assets $ 115.8 $ 113.3 Property, plant and equipment, net Land and land improvements $ 39.6 $ 40.6 Buildings and leasehold improvements 176.1 181.6 Machinery and equipment 444.0 440.4 Construction in progress 16.6 16.5 Total property, plant and equipment 676.3 679.1 Accumulated depreciation and amortization 397.7 394.6 Total property, plant and equipment, net $ 278.6 $ 284.5 Other non-current assets Deferred compensation plan assets $ 13.8 $ 17.3 Lease right-of-use assets 43.9 44.2 Deferred tax assets 30.8 40.9 Other non-current assets 32.1 15.1 Total other non-current assets $ 120.6 $ 117.5 Other current liabilities Dividends payable $ 29.7 $ 29.7 Accrued rebates 31.8 44.1 Contract liabilities 14.6 13.7 Accrued taxes payable 18.9 24.8 Current lease liabilities 14.5 14.7 Other current liabilities 69.1 58.7 Total other current liabilities $ 178.6 $ 185.7 Other non-current liabilities Income taxes payable $ 34.5 $ 31.9 Deferred compensation plan liabilities 13.8 17.3 Non-current lease liabilities 33.6 33.7 Other non-current liabilities 7.9 10.6 Total other non-current liabilities $ 89.8 $ 93.5 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventories | ||
Raw materials and supplies | $ 71.6 | $ 67.1 |
Work-in-process | 27.6 | 25.6 |
Finished goods | 149.8 | 152 |
Total inventories | 249 | 244.7 |
Other current assets | ||
Contract assets | 61.1 | 69.4 |
Prepaid expenses | 37 | 32.5 |
Prepaid income taxes | 15.3 | 9 |
Other current assets | 2.4 | 2.4 |
Total other current assets | 115.8 | 113.3 |
Property, plant and equipment, net | ||
Land and land improvements | 39.6 | 40.6 |
Buildings and leasehold improvements | 176.1 | 181.6 |
Machinery and equipment | 444 | 440.4 |
Construction in progress | 16.6 | 16.5 |
Total property, plant and equipment | 676.3 | 679.1 |
Accumulated depreciation and amortization | 397.7 | 394.6 |
Total property, plant and equipment, net | 278.6 | 284.5 |
Other non-current assets | ||
Deferred compensation plan assets | 13.8 | 17.3 |
Lease right-of-use assets | 43.9 | 44.2 |
Deferred tax assets | 30.8 | 40.9 |
Other non-current assets | 32.1 | 15.1 |
Total other non-current assets | 120.6 | 117.5 |
Other current liabilities | ||
Dividends payable | 29.7 | 29.7 |
Accrued rebates | 31.8 | 44.1 |
Contract liabilities | 14.6 | 13.7 |
Accrued taxes payable | 18.9 | 24.8 |
Current lease liabilities | 14.5 | 14.7 |
Other current liabilities | 69.1 | 58.7 |
Total other current liabilities | 178.6 | 185.7 |
Other non-current liabilities | ||
Income taxes payable | 34.5 | 31.9 |
Deferred compensation plan liabilities | 13.8 | 17.3 |
Non-current lease liabilities | 33.6 | 33.7 |
Other non-current liabilities | 7.9 | 10.6 |
Total other non-current liabilities | $ 89.8 | $ 93.5 |
Basis of Presentation and Respo
Basis of Presentation and Responsibility for Interim Financial Statements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Responsibility for Interim Financial Statements | Basis of Presentation and Responsibility for Interim Financial Statements Business nVent Electric plc ("nVent," "we," "us," "our" or the "Company") is a leading global provider of electrical connection and protection solutions. The Company is comprised of three reporting segments: Enclosures, Thermal Management and Electrical & Fastening Solutions. The Company was incorporated in Ireland on May 30, 2017. Although our jurisdiction of organization is Ireland, we manage our affairs so that we are centrally managed and controlled in the United Kingdom (the "U.K.") and have tax residency in the U.K. Separation from Pentair On April 30, 2018, Pentair plc ("Pentair" or "former Parent") completed the separation of its Water business and its Electrical business into two independent, publicly-traded companies (the "separation"). To effect the separation, Pentair distributed to its shareholders one ordinary share of nVent for every ordinary share of Pentair held as of the record date of April 17, 2018. As a result of the distribution, nVent is an independent publicly-traded company and began "regular way" trading under the symbol "NVT" on the New York Stock Exchange on May 1, 2018. Basis of presentation The accompanying unaudited condensed consolidated financial statements of nVent have been prepared following the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America ("GAAP") can be condensed or omitted. We are responsible for the unaudited condensed consolidated financial statements included in this document. The financial statements include all normal recurring adjustments that are considered necessary for the fair presentation of our financial position and operating results. As these are condensed financial statements, one should also read our consolidated and combined financial statements and notes thereto, which are included in our Annual Report on Form 10-K Revenues, expenses, cash flows, assets and liabilities can and do vary during each quarter of the year. Additionally, in March 2020, the World Health Organization declared novel coronavirus 2019 (“COVID-19”) a pandemic. The broader implication of COVID-19 on our results of operations and overall financial performance remains uncertain. We may experience constrained supply or reduced customer demand that could materially adversely impact our business, financial condition, results of operations and overall financial performance in future periods. Therefore, the results and trends in these interim financial statements may not be indicative of those for a full year. Adoption of new accounting standards |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of revenue We disaggregate our revenue from contracts with customers by geographic location and vertical for each of our segments, as we believe these best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographic net sales information, based on geographic destination of the sale, was as follows: Three months ended March 31, 2020 In millions Enclosures Thermal Management Electrical & Fastening Solutions Total U.S. and Canada $ 174.1 $ 70.6 $ 102.5 $ 347.2 Developed Europe (1) 61.9 29.6 27.2 118.7 Developing (2) 19.4 16.9 8.7 45.0 Other Developed (3) 3.1 3.4 3.5 10.0 Total $ 258.5 $ 120.5 $ 141.9 $ 520.9 Three months ended March 31, 2019 In millions Enclosures Thermal Management Electrical & Fastening Solutions Total U.S. and Canada $ 180.4 $ 83.9 $ 97.4 $ 361.7 Developed Europe (1) 50.9 35.1 26.6 112.6 Developing (2) 21.7 21.0 10.1 52.8 Other Developed (3) 2.5 5.1 3.3 10.9 Total $ 255.5 $ 145.1 $ 137.4 $ 538.0 (1) Developed Europe includes Western Europe and Eastern Europe included in European Union. (2) Developing includes China, Eastern Europe not included in European Union, Latin America, Middle East and Southeast Asia. (3) Other Developed includes Australia and Japan. Vertical net sales information was as follows: Three months ended March 31, 2020 In millions Enclosures Thermal Management Electrical & Fastening Solutions Total Industrial $ 156.5 $ 46.5 $ 26.0 $ 229.0 Commercial & Residential 31.7 39.8 82.1 153.6 Energy 26.8 32.6 15.0 74.4 Infrastructure 43.5 1.6 18.8 63.9 Total $ 258.5 $ 120.5 $ 141.9 $ 520.9 Three months ended March 31, 2019 In millions Enclosures Thermal Management Electrical & Fastening Solutions Total Industrial $ 155.1 $ 58.7 $ 26.7 $ 240.5 Commercial & Residential 22.6 44.5 79.9 147.0 Energy 25.9 40.1 13.5 79.5 Infrastructure 51.9 1.8 17.3 71.0 Total $ 255.5 $ 145.1 $ 137.4 $ 538.0 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | During the three months ended March 31, 2020 and the year ended December 31, 2019, we initiated and continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business. Specifically in the first three months of 2020, the initiatives were executed primarily in response to the decrease in expected demand attributed to the effect of the COVID-19 pandemic and significant decline in oil and gas prices. Initiatives during the three months ended March 31, 2020 included the reduction in hourly and salaried headcount of approximately 100 employees. Restructuring related costs included in Selling, general and administrative expense in the Condensed Consolidated Statements of Income and Comprehensive Income included costs for severance and other restructuring costs as follows: Three months ended In millions March 31, March 31, Severance and related costs $ 3.5 $ 2.8 Other 0.8 0.8 Total restructuring costs $ 4.3 $ 3.6 Other restructuring costs primarily consist of asset impairment and various contract termination costs. Restructuring costs by reportable segment were as follows: Three months ended In millions March 31, March 31, Enclosures $ 3.1 $ — Thermal Management 1.1 2.0 Electrical & Fastening Solutions — 0.9 Other 0.1 0.7 Total $ 4.3 $ 3.6 Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows for the three months ended March 31, 2020: In millions March 31, Beginning balance $ 9.5 Costs incurred 3.5 Cash payments and other (3.1) Ending balance $ 9.9 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three months ended In millions, except per-share data March 31, March 31, Net income $ 18.6 $ 56.4 Weighted average ordinary shares outstanding Basic 169.8 176.5 Dilutive impact of stock options, restricted stock units and performance share units 1.2 1.7 Diluted 171.0 178.2 Earnings per ordinary share Basic earnings per ordinary share $ 0.11 $ 0.32 Diluted earnings per ordinary share $ 0.11 $ 0.32 Anti-dilutive stock options excluded from the calculation of diluted earnings per share 2.9 1.9 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | On August 30, 2019, we completed the acquisition of Eldon Holding AB ("Eldon") for $127.8 million, net of cash acquired. Eldon, now part of our Enclosures segment, is an innovative European based manufacturer of enclosures that protect sensitive electrical, electronic and data and telecommunications components. The excess purchase price over tangible net assets and identified intangible assets acquired has been preliminarily allocated to goodwill in the amount of $45.6 million, none of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $46.7 million of definite-lived customer relationships with an estimated useful life of 17 years. The preliminary purchase price allocation is subject to further refinement, primarily related to the impacts associated with income taxes and other accruals, and may require significant adjustments to arrive at the final purchase price allocation. Eldon's net sales for the quarter ended March 31, 2020 were $26.2 million. On February 10, 2020, we acquired substantially all of the assets of WBT LLC ("WBT") for approximately $30.0 million in cash, subject to purchase price adjustments and a holdback. The U.S. based WBT business manufactures high-quality cable tray systems that will be marketed as part of the nVent CADDY product line within our Electrical & Fastening Solutions segment and nVent HOFFMAN product line within our Enclosures segment. The excess purchase price over tangible net assets and identified intangible assets acquired has been preliminarily allocated to goodwill in the amount of $13.9 million, substantially all of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $11.3 million of definite-lived customer relationships with an estimated useful life of 12 years. The pro forma impact of these acquisitions is not material. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | The changes in the carrying amount of goodwill by reportable segment were as follows: In millions December 31, Acquisitions/ Foreign currency March 31, Enclosures $ 315.4 $ 0.5 $ (0.2) $ 315.7 Thermal Management 925.5 — (2.5) 923.0 Electrical & Fastening Solutions 1,038.2 13.9 — 1,052.1 Total goodwill $ 2,279.1 $ 14.4 $ (2.7) $ 2,290.8 Identifiable intangible assets consisted of the following: March 31, 2020 December 31, 2019 In millions Cost Accumulated amortization Net Cost Accumulated Net Definite-life intangibles Customer relationships $ 1,205.5 $ (340.9) $ 864.6 $ 1,197.9 $ (326.1) $ 871.8 Proprietary technology and patents 16.3 (7.8) 8.5 14.8 (7.4) 7.4 Total definite-life intangibles 1,221.8 (348.7) 873.1 1,212.7 (333.5) 879.2 Indefinite-life intangibles Trade names 281.3 — 281.3 281.3 — 281.3 Total intangibles $ 1,503.1 $ (348.7) $ 1,154.4 $ 1,494.0 $ (333.5) $ 1,160.5 Identifiable intangible asset amortization expense was $16.0 million and $15.1 million for the three months ended March 31, 2020 and 2019, respectively. Estimated future amortization expense for identifiable intangible assets during the remainder of 2020 and the next five years is as follows: Q2-Q4 In millions 2020 2021 2022 2023 2024 2025 Estimated amortization expense $ 48.0 $ 62.9 $ 62.8 $ 62.6 $ 62.0 $ 62.0 |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Financial Instruments | Derivative financial instruments We are exposed to market risk related to changes in foreign currency exchange rates. To manage the volatility related to this exposure, we periodically enter into a variety of derivative financial instruments. Our objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. The derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality. Foreign currency contracts We conduct business in various locations throughout the world and are subject to market risk due to changes in the value of foreign currencies in relation to our reporting currency, the U.S. dollar. We manage our economic and transaction exposure to certain market-based risks through the use of foreign currency derivative financial instruments. Our objective in holding these derivatives is to reduce the volatility in net earnings and cash flows associated with changes in foreign currency rates. The majority of our foreign currency contracts have an original maturity date of less than one year. At March 31, 2020 and December 31, 2019, we had outstanding foreign currency derivative contracts with gross notional U.S. dollar equivalent amounts of $27.4 million and $34.5 million, respectively. The impact of these contracts on the Condensed Consolidated Statements of Income and Comprehensive Income was not material for any period presented. Cross currency swaps At both March 31, 2020 and December 31, 2019, we had outstanding cross currency swap agreements with a combined notional amount of $303.5 million. The agreements are accounted for as either cash flow hedges, to hedge foreign currency fluctuations on certain intercompany debt, or as net investment hedges, to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. At March 31, 2020 and December 31, 2019, we had deferred foreign currency gains of $18.9 million and $1.9 million, respectively, in Accumulated other comprehensive loss associated with our cross currency swap activity. Fair value of financial instruments The following methods were used to estimate the fair values of each class of financial instruments: • short-term financial instruments (cash and cash equivalents, accounts and notes receivable, accounts and notes payable and variable-rate debt) — recorded amount approximates fair value because of the short maturity period; • long-term fixed-rate debt, including current maturities — fair value is based on market quotes available for issuance of debt with similar terms, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; • foreign currency contract agreements — fair values are determined through the use of models that consider various assumptions, including time value, yield curves, as well as other relevant economic measures, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; and • deferred compensation plan assets (mutual funds, common/collective trusts and cash equivalents for payment of certain non-qualified benefits for retired, terminated and active employees) — fair value of mutual funds and cash equivalents are based on quoted market prices in active markets that are classified as Level 1 in the valuation hierarchy defined by the accounting guidance; fair value of common/collective trusts are valued at net asset value ("NAV"), which is based on the fair value of underlying securities owned by the fund divided by the number of shares outstanding. The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows: March 31, December 31, In millions Recorded Fair Recorded Fair Variable rate debt $ 415.9 $ 415.9 $ 269.6 $ 269.6 Fixed rate debt 800.0 842.0 800.0 863.5 Total debt $ 1,215.9 $ 1,257.9 $ 1,069.6 $ 1,133.1 Financial assets and liabilities measured at fair value on a recurring basis were as follows: Recurring fair value measurements March 31, 2020 In millions Level 1 Level 2 Level 3 NAV Total Foreign currency contract liabilities $ — $ (0.2) $ — $ — $ (0.2) Foreign currency contract assets — 21.0 — — 21.0 Deferred compensation plan assets 9.8 — — 4.0 13.8 Total recurring fair value measurements $ 9.8 $ 20.8 $ — $ 4.0 $ 34.6 Recurring fair value measurements December 31, 2019 In millions Level 1 Level 2 Level 3 NAV Total Foreign currency contract liabilities $ — $ (3.4) $ — $ — $ (3.4) Foreign currency contract assets — 7.6 — — 7.6 Deferred compensation plan assets 12.8 — — 4.5 17.3 Total recurring fair value measurements $ 12.8 $ 4.2 $ — $ 4.5 $ 21.5 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt and the average interest rates on debt outstanding were as follows: In millions Average interest rate at March 31, 2020 Maturity March 31, December 31, Revolving credit facility 2.330% 2023 $ 284.6 $ 134.6 Senior notes - fixed rate 3.950% 2023 300.0 300.0 Senior notes - fixed rate 4.550% 2028 500.0 500.0 Term loan facility 2.304% 2023 131.3 135.0 Unamortized debt issuance costs and discounts N/A N/A (4.7) (5.0) Total debt 1,211.2 1,064.6 Less: Current maturities and short-term borrowings (18.8) (17.5) Long-term debt $ 1,192.4 $ 1,047.1 Senior notes In March 2018, nVent Finance S.à r.l. (“nVent Finance” or "Subsidiary Issuer"), a 100-percent owned subsidiary of nVent, issued $300.0 million aggregate principal amount of 3.950% senior notes due 2023 (the "2023 Notes") and $500.0 million aggregate principal amount of 4.550% senior notes due 2028 (the "2028 Notes" and, collectively with the 2023 Notes, the "Notes"). Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 of each year. The Notes constitute general unsecured senior obligations of the Subsidiary Issuer and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. The guarantees of the Notes by the Parent Company Guarantor constitute general unsecured obligations of the Parent Company Guarantor and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. Subject to certain qualifications and exceptions, the indenture pursuant to which the Notes were issued contains covenants that, among other things, restrict nVent’s, nVent Finance’s and certain subsidiaries’ ability to merge or consolidate with another person, create liens or engage in sale and lease-back transactions. There are no significant restrictions on the ability of nVent to obtain funds from its subsidiaries by dividend or loan. None of the assets of nVent or its subsidiaries represents restricted net assets pursuant to the guidelines established by the SEC. Senior credit facilities In March 2018, nVent Finance entered into a credit agreement with a syndicate of banks providing for a five-year $200.0 million senior unsecured term loan facility (the "Term Loan Facility") and a five-year $600.0 million senior unsecured revolving credit facility (the "Revolving Credit Facility" and, together with the Term Loan Facility, the "Senior Credit Facilities"). We have the option to request to increase the Revolving Credit Facility in an aggregate amount of up to $300.0 million, subject to customary conditions, including the commitment of the participating lenders. In March 2020, as a pr oactive measure to maximize our liquidity in response to the effect of the COVID-19 pandemic, we drew down $150.0 million on our Revolving Credit Facility. The proceeds will be available to be used for working capital, general corporate or other purposes. Total availability under the Revolving Credit Facility was $315.4 million as of March 31, 2020. Our debt agreements contain certain financial covenants, the most restrictive of which are in the Senior Credit Facilities, including that we may not permit (i) the ratio of our consolidated debt (net of our consolidated unrestricted cash in excess of $5.0 million but not to exceed $250.0 million) to our consolidated net income (excluding, among other things, non-cash gains and losses) before interest, taxes, depreciation, amortization and non-cash share-based compensation expense ("EBITDA") on the last day of any period of four consecutive fiscal quarters to exceed 3.75 to 1.00 and (ii) the ratio of our EBITDA to our consolidated interest expense for the same period to be less than 3.00 to 1.00. In addition, subject to certain qualifications and exceptions, the Senior Credit Facilities also contain covenants that, among other things, restrict our ability to create liens, merge or consolidate with another person, make acquisitions and incur subsidiary debt. As of March 31, 2020, we were in compliance with all financial covenants in our debt agreements, and there is no material uncertainty about our ongoing ability to meet those covenants. Debt outstanding, excluding unamortized issuance costs and discounts, at March 31, 2020 matures on a calendar year basis as follows: Q2-Q4 In millions 2020 2021 2022 2023 2024 2025 Thereafter Total Contractual debt obligation maturities $ 13.8 $ 20.0 $ 20.0 $ 662.1 $ — $ — $ 500.0 $ 1,215.9 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The effective income tax rate for the three months ended March 31, 2020 was 62.5%, compared to 14.7% for the three months ended March 31, 2019. The liability for uncertain tax positions was $19.5 million and $17.0 million at March 31, 2020 and December 31, 2019, respectively. We record penalties and interest related to unrecognized tax benefits in Provision for income taxes and Net interest expense , respectively, on the Condensed Consolidated Statements of Income and Comprehensive Income, which is consistent with our past practices. Valuation allowances are recorded to reduce the amount of deferred tax assets in jurisdictions where, based on the weight of information available to us, we determine that it is more likely than not the related tax benefits will not be realized. In the three-month period ended March 31, 2020, as a result of the assessment of the available information, we established a valuation allowance of $19.4 million on certain foreign deferred tax assets. In April 2020, the U.S. Treasury finalized regulations which limit the availability of certain tax deductions we currently claim related to interest expense (the “Regulations”), and those Regulations have retroactive effect to January 1, 2019. Based on the effective timing of the Regulations, we expect to record a non-recurring tax expense of approximately $6 million |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Share repurchases On July 23, 2018, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $500.0 million (the "2018 Authorization"). On February 19, 2019, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $380.0 million (the "2019 Authorization"). The 2018 and 2019 Authorizations expire on July 23, 2021. During the three months ended March 31, 2020, we repurchased 0.2 million of our ordinary shares for $3.2 million under the 2018 Authorization. During the three months ended March 31, 2019, we repurchased 3.0 million of our ordinary shares for $79.9 million under the 2018 Authorization. As of March 31, 2020, we have $585.1 million available for share repurchases under the combined 2018 and 2019 Authorizations which total $880.0 million. Dividends payable On February 25, 2020, the Board of Directors declared a quarterly cash dividend of $0.175 per ordinary share payable on May 8, 2020, to shareholders of record at the close of business on April 24, 2020. The balance of dividends payable included in Other current liabilities on our Condensed Consolidated Balance Sheets was $29.7 million at both March 31, 2020 and December 31, 2019. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | We evaluate performance based on net sales and segment income (loss) and use a variety of ratios to measure performance of our reporting segments. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Segment income (loss) represents operating income exclusive of intangible amortization, certain acquisition related expenses, costs of restructuring activities, impairments and other unusual non-operating items. Financial information by reportable segment is as follows: Three months ended In millions March 31, March 31, Net sales Enclosures $ 258.5 $ 255.5 Thermal Management 120.5 145.1 Electrical & Fastening Solutions 141.9 137.4 Total $ 520.9 $ 538.0 Segment income (loss) Enclosures $ 40.9 $ 45.6 Thermal Management 20.3 34.3 Electrical & Fastening Solutions 33.5 31.2 Other (13.2) (14.9) Total $ 81.5 $ 96.2 The following table presents a reconciliation of segment income to income before income taxes: Three months ended In millions March 31, March 31, Segment income $ 81.5 $ 96.2 Intangible amortization (16.0) (15.1) Restructuring and other (4.3) (3.6) Acquisition transaction and integration costs (0.9) — Net interest expense (9.9) (10.5) Other expense (0.8) (0.9) Income before income taxes $ 49.6 $ 66.1 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for office space, production facilities, distribution centers, warehouses, sales offices, fleet vehicles and equipment. In accordance with our accounting policy, leases with an initial term of 12 months or less are not recognized on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We elected the practical expedient for all leases to include both lease and non-lease components within our lease assets and lease liabilities. Our lease agreements do not contain any material residual value guarantees, any material bargain purchase options or material restrictive covenants. We have no material sublease arrangements with third parties or lease transactions with related parties. During the three months ended March 31, 2020 and March 31, 2019, rent expense was $5.1 million and $4.2 million, respectively, primarily related to operating lease costs. Costs associated with short-term leases, variable rent and subleases were immaterial. Our leases have remaining lease terms of one to ten years, some of which include options to extend the leases for up to five years. Renewal options that are reasonably certain to be exercised are included in the lease term. The incremental borrowing rate is used in determining the present value of lease payments, unless an implicit rate is specified. Incremental borrowing rates on a collateralized basis are determined based on the economic environment in which leases are denominated and the lease term. The weighted average remaining lease term and weighted average discount rate were as follows: March 31, 2020 March 31, 2019 Weighted average remaining lease term Operating leases 5 years 5 years Weighted average discount rate Operating leases 3.9 % 4.3 % Future lease payments under non-cancelable operating leases as of March 31, 2020 were as follows: In millions Remainder of 2020 $ 12.7 2021 12.7 2022 8.7 2023 5.1 2024 3.7 2025 3.2 Thereafter 7.5 Total lease payments $ 53.6 Less imputed interest (5.5) Total reported lease liability $ 48.1 As of March 31, 2020, we have no material additional operating leases that have not yet commenced. Supplemental cash flow information related to operating leases were as follows: Three months ended In millions March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 4.6 $ 3.9 Lease right-of-use assets obtained in exchange for new lease liabilities 5.2 0.6 Supplemental balance sheet information related to operating leases was as follows: In millions Classification March 31, 2020 December 31, 2019 Assets Lease right-of-use assets Other non-current assets $ 43.9 $ 44.2 Liabilities Current lease liabilities Other current liabilities $ 14.5 $ 14.7 Non-current lease liabilities Other non-current liabilities 33.6 33.7 Total lease liabilities $ 48.1 $ 48.4 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranties and guarantees In connection with the disposition of our businesses or product lines, we may agree to indemnify purchasers for various potential liabilities relating to the sold business, such as pre-closing tax, product liability, warranty, environmental, or other obligations. The subject matter, amounts and duration of any such indemnification obligations vary for each type of liability indemnified and may vary widely from transaction to transaction. Generally, the maximum obligation under such indemnifications is not explicitly stated and as a result, the overall amount of these obligations cannot be reasonably estimated. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. We recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. We provide service and warranty policies on our products. Liability under service and warranty policies is based upon a review of historical warranty and service claim experience. Adjustments are made to accruals as claim data and historical experience warrant. Our liability for service and product warranties as of March 31, 2020 and December 31, 2019 was not material. Stand-by letters of credit, bank guarantees and bonds In the ordinary course of business, we are required to commit to bonds, letters of credit and bank guarantees that require payments to our customers for any non-performance. The outstanding face value of these instruments fluctuates with the value of our projects in process and in our backlog. In addition, we issue financial stand-by letters of credit primarily to secure our performance to third parties under self-insurance programs. As of March 31, 2020 and December 31, 2019, the outstanding value of bonds, letters of credit and bank guarantees totaled $67.5 million and $70.0 million, respectively. |
Basis of Presentation and Res_2
Basis of Presentation and Responsibility for Interim Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
New accounting standards | Adoption of new accounting standardsIn March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding financial disclosure requirements for registered debt offerings involving subsidiaries as either issuers or guarantors. This amended rule narrows the circumstances that require separate financial statements or summarized financial disclosures of subsidiary issuers and guarantors and simplifies the summarized disclosures required in lieu of those statements. As a result of this amended rule, we have included narrative disclosures in lieu of separate financial statements and summarized financial disclosures |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Category | Geographic net sales information, based on geographic destination of the sale, was as follows: Three months ended March 31, 2020 In millions Enclosures Thermal Management Electrical & Fastening Solutions Total U.S. and Canada $ 174.1 $ 70.6 $ 102.5 $ 347.2 Developed Europe (1) 61.9 29.6 27.2 118.7 Developing (2) 19.4 16.9 8.7 45.0 Other Developed (3) 3.1 3.4 3.5 10.0 Total $ 258.5 $ 120.5 $ 141.9 $ 520.9 Three months ended March 31, 2019 In millions Enclosures Thermal Management Electrical & Fastening Solutions Total U.S. and Canada $ 180.4 $ 83.9 $ 97.4 $ 361.7 Developed Europe (1) 50.9 35.1 26.6 112.6 Developing (2) 21.7 21.0 10.1 52.8 Other Developed (3) 2.5 5.1 3.3 10.9 Total $ 255.5 $ 145.1 $ 137.4 $ 538.0 (1) Developed Europe includes Western Europe and Eastern Europe included in European Union. (2) Developing includes China, Eastern Europe not included in European Union, Latin America, Middle East and Southeast Asia. (3) Other Developed includes Australia and Japan. Vertical net sales information was as follows: Three months ended March 31, 2020 In millions Enclosures Thermal Management Electrical & Fastening Solutions Total Industrial $ 156.5 $ 46.5 $ 26.0 $ 229.0 Commercial & Residential 31.7 39.8 82.1 153.6 Energy 26.8 32.6 15.0 74.4 Infrastructure 43.5 1.6 18.8 63.9 Total $ 258.5 $ 120.5 $ 141.9 $ 520.9 Three months ended March 31, 2019 In millions Enclosures Thermal Management Electrical & Fastening Solutions Total Industrial $ 155.1 $ 58.7 $ 26.7 $ 240.5 Commercial & Residential 22.6 44.5 79.9 147.0 Energy 25.9 40.1 13.5 79.5 Infrastructure 51.9 1.8 17.3 71.0 Total $ 255.5 $ 145.1 $ 137.4 $ 538.0 |
Contract assets and liabilities | Contract assets and liabilities consisted of the following: In millions March 31, 2020 December 31, 2019 $ Change % Change Contract assets $ 61.1 $ 69.4 $ (8.3) (12.0) % Contract liabilities 14.6 13.7 0.9 6.6 % Net contract assets $ 46.5 $ 55.7 $ (9.2) (16.5) % |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Related Costs | Restructuring related costs included in Selling, general and administrative expense in the Condensed Consolidated Statements of Income and Comprehensive Income included costs for severance and other restructuring costs as follows: Three months ended In millions March 31, March 31, Severance and related costs $ 3.5 $ 2.8 Other 0.8 0.8 Total restructuring costs $ 4.3 $ 3.6 |
Restructuring Costs By Segment | Restructuring costs by reportable segment were as follows: Three months ended In millions March 31, March 31, Enclosures $ 3.1 $ — Thermal Management 1.1 2.0 Electrical & Fastening Solutions — 0.9 Other 0.1 0.7 Total $ 4.3 $ 3.6 |
Restructuring Accrual Activity Recorded on Consolidated Balance Sheets | Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows for the three months ended March 31, 2020: In millions March 31, Beginning balance $ 9.5 Costs incurred 3.5 Cash payments and other (3.1) Ending balance $ 9.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three months ended In millions, except per-share data March 31, March 31, Net income $ 18.6 $ 56.4 Weighted average ordinary shares outstanding Basic 169.8 176.5 Dilutive impact of stock options, restricted stock units and performance share units 1.2 1.7 Diluted 171.0 178.2 Earnings per ordinary share Basic earnings per ordinary share $ 0.11 $ 0.32 Diluted earnings per ordinary share $ 0.11 $ 0.32 Anti-dilutive stock options excluded from the calculation of diluted earnings per share 2.9 1.9 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segment were as follows: In millions December 31, Acquisitions/ Foreign currency March 31, Enclosures $ 315.4 $ 0.5 $ (0.2) $ 315.7 Thermal Management 925.5 — (2.5) 923.0 Electrical & Fastening Solutions 1,038.2 13.9 — 1,052.1 Total goodwill $ 2,279.1 $ 14.4 $ (2.7) $ 2,290.8 |
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets consisted of the following: March 31, 2020 December 31, 2019 In millions Cost Accumulated amortization Net Cost Accumulated Net Definite-life intangibles Customer relationships $ 1,205.5 $ (340.9) $ 864.6 $ 1,197.9 $ (326.1) $ 871.8 Proprietary technology and patents 16.3 (7.8) 8.5 14.8 (7.4) 7.4 Total definite-life intangibles 1,221.8 (348.7) 873.1 1,212.7 (333.5) 879.2 Indefinite-life intangibles Trade names 281.3 — 281.3 281.3 — 281.3 Total intangibles $ 1,503.1 $ (348.7) $ 1,154.4 $ 1,494.0 $ (333.5) $ 1,160.5 |
Schedule of Indefinite-Lived Intangible Assets | Identifiable intangible assets consisted of the following: March 31, 2020 December 31, 2019 In millions Cost Accumulated amortization Net Cost Accumulated Net Definite-life intangibles Customer relationships $ 1,205.5 $ (340.9) $ 864.6 $ 1,197.9 $ (326.1) $ 871.8 Proprietary technology and patents 16.3 (7.8) 8.5 14.8 (7.4) 7.4 Total definite-life intangibles 1,221.8 (348.7) 873.1 1,212.7 (333.5) 879.2 Indefinite-life intangibles Trade names 281.3 — 281.3 281.3 — 281.3 Total intangibles $ 1,503.1 $ (348.7) $ 1,154.4 $ 1,494.0 $ (333.5) $ 1,160.5 |
Estimated Future Amortization Expense for Identifiable Intangible Assets | Estimated future amortization expense for identifiable intangible assets during the remainder of 2020 and the next five years is as follows: Q2-Q4 In millions 2020 2021 2022 2023 2024 2025 Estimated amortization expense $ 48.0 $ 62.9 $ 62.8 $ 62.6 $ 62.0 $ 62.0 |
Derivatives and Financial Ins_2
Derivatives and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Recorded Amounts and Estimated Fair Values of Long-term Debt and Derivative Financial Instruments | The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows: March 31, December 31, In millions Recorded Fair Recorded Fair Variable rate debt $ 415.9 $ 415.9 $ 269.6 $ 269.6 Fixed rate debt 800.0 842.0 800.0 863.5 Total debt $ 1,215.9 $ 1,257.9 $ 1,069.6 $ 1,133.1 |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis were as follows: Recurring fair value measurements March 31, 2020 In millions Level 1 Level 2 Level 3 NAV Total Foreign currency contract liabilities $ — $ (0.2) $ — $ — $ (0.2) Foreign currency contract assets — 21.0 — — 21.0 Deferred compensation plan assets 9.8 — — 4.0 13.8 Total recurring fair value measurements $ 9.8 $ 20.8 $ — $ 4.0 $ 34.6 Recurring fair value measurements December 31, 2019 In millions Level 1 Level 2 Level 3 NAV Total Foreign currency contract liabilities $ — $ (3.4) $ — $ — $ (3.4) Foreign currency contract assets — 7.6 — — 7.6 Deferred compensation plan assets 12.8 — — 4.5 17.3 Total recurring fair value measurements $ 12.8 $ 4.2 $ — $ 4.5 $ 21.5 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Average Interest Rates on Debt Outstanding | Debt and the average interest rates on debt outstanding were as follows: In millions Average interest rate at March 31, 2020 Maturity March 31, December 31, Revolving credit facility 2.330% 2023 $ 284.6 $ 134.6 Senior notes - fixed rate 3.950% 2023 300.0 300.0 Senior notes - fixed rate 4.550% 2028 500.0 500.0 Term loan facility 2.304% 2023 131.3 135.0 Unamortized debt issuance costs and discounts N/A N/A (4.7) (5.0) Total debt 1,211.2 1,064.6 Less: Current maturities and short-term borrowings (18.8) (17.5) Long-term debt $ 1,192.4 $ 1,047.1 |
Debt Outstanding Matures on Calendar Year Basis | Debt outstanding, excluding unamortized issuance costs and discounts, at March 31, 2020 matures on a calendar year basis as follows: Q2-Q4 In millions 2020 2021 2022 2023 2024 2025 Thereafter Total Contractual debt obligation maturities $ 13.8 $ 20.0 $ 20.0 $ 662.1 $ — $ — $ 500.0 $ 1,215.9 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial Information by Reportable Segment | Financial information by reportable segment is as follows: Three months ended In millions March 31, March 31, Net sales Enclosures $ 258.5 $ 255.5 Thermal Management 120.5 145.1 Electrical & Fastening Solutions 141.9 137.4 Total $ 520.9 $ 538.0 Segment income (loss) Enclosures $ 40.9 $ 45.6 Thermal Management 20.3 34.3 Electrical & Fastening Solutions 33.5 31.2 Other (13.2) (14.9) Total $ 81.5 $ 96.2 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents a reconciliation of segment income to income before income taxes: Three months ended In millions March 31, March 31, Segment income $ 81.5 $ 96.2 Intangible amortization (16.0) (15.1) Restructuring and other (4.3) (3.6) Acquisition transaction and integration costs (0.9) — Net interest expense (9.9) (10.5) Other expense (0.8) (0.9) Income before income taxes $ 49.6 $ 66.1 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The weighted average remaining lease term and weighted average discount rate were as follows: March 31, 2020 March 31, 2019 Weighted average remaining lease term Operating leases 5 years 5 years Weighted average discount rate Operating leases 3.9 % 4.3 % Supplemental cash flow information related to operating leases were as follows: Three months ended In millions March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 4.6 $ 3.9 Lease right-of-use assets obtained in exchange for new lease liabilities 5.2 0.6 |
Future Lease Payments | Future lease payments under non-cancelable operating leases as of March 31, 2020 were as follows: In millions Remainder of 2020 $ 12.7 2021 12.7 2022 8.7 2023 5.1 2024 3.7 2025 3.2 Thereafter 7.5 Total lease payments $ 53.6 Less imputed interest (5.5) Total reported lease liability $ 48.1 |
Operating Leases, Assets and Liabilities | Supplemental balance sheet information related to operating leases was as follows: In millions Classification March 31, 2020 December 31, 2019 Assets Lease right-of-use assets Other non-current assets $ 43.9 $ 44.2 Liabilities Current lease liabilities Other current liabilities $ 14.5 $ 14.7 Non-current lease liabilities Other non-current liabilities 33.6 33.7 Total lease liabilities $ 48.1 $ 48.4 |
Basis of Presentation and Res_3
Basis of Presentation and Responsibility for Interim Financial Statements - Separation from Pentair (Details) | Apr. 30, 2018shares | Mar. 31, 2020segment |
Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 3 | |
Equity interests issued per ordinary predecessor share (in shares) | shares | 1 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Net contract assets (liabilities) | $ (9,200,000) |
Impairment losses on contract assets | $ 0 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 82.3 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period | 12 months |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period | 18 months |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 61.1 | $ 69.4 |
Contract liabilities | 14.6 | 13.7 |
Net contract assets | 46.5 | $ 55.7 |
$ Change | ||
Contract assets | (8.3) | |
Contract liabilities | 0.9 | |
Net contract assets | $ 9.2 | |
% Change | ||
Contract assets | (12.00%) | |
Contract liabilities | 6.60% | |
Net contract assets | (16.50%) |
Revenue - Geographic Net Sales
Revenue - Geographic Net Sales Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 520.9 | $ 538 |
U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 347.2 | 361.7 |
Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 118.7 | 112.6 |
Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 45 | 52.8 |
Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10 | 10.9 |
Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 258.5 | 255.5 |
Enclosures | U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 174.1 | 180.4 |
Enclosures | Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 61.9 | 50.9 |
Enclosures | Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 19.4 | 21.7 |
Enclosures | Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3.1 | 2.5 |
Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 120.5 | 145.1 |
Thermal Management | U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 70.6 | 83.9 |
Thermal Management | Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 29.6 | 35.1 |
Thermal Management | Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 16.9 | 21 |
Thermal Management | Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3.4 | 5.1 |
Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 141.9 | 137.4 |
Electrical & Fastening Solutions | U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 102.5 | 97.4 |
Electrical & Fastening Solutions | Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 27.2 | 26.6 |
Electrical & Fastening Solutions | Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8.7 | 10.1 |
Electrical & Fastening Solutions | Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 3.5 | $ 3.3 |
Revenue - Vertical Sales by Seg
Revenue - Vertical Sales by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 520.9 | $ 538 |
Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 258.5 | 255.5 |
Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 120.5 | 145.1 |
Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 141.9 | 137.4 |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 229 | 240.5 |
Industrial | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 156.5 | 155.1 |
Industrial | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 46.5 | 58.7 |
Industrial | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 26 | 26.7 |
Commercial & Residential | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 153.6 | 147 |
Commercial & Residential | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 31.7 | 22.6 |
Commercial & Residential | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 39.8 | 44.5 |
Commercial & Residential | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 82.1 | 79.9 |
Energy | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 74.4 | 79.5 |
Energy | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 26.8 | 25.9 |
Energy | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 32.6 | 40.1 |
Energy | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 15 | 13.5 |
Infrastructure | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 63.9 | 71 |
Infrastructure | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 43.5 | 51.9 |
Infrastructure | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1.6 | 1.8 |
Infrastructure | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 18.8 | 17.3 |
Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 118.7 | 112.6 |
Developed Europe (1) | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 61.9 | 50.9 |
Developed Europe (1) | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 29.6 | 35.1 |
Developed Europe (1) | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 27.2 | 26.6 |
Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 45 | 52.8 |
Developing Countries | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 19.4 | 21.7 |
Developing Countries | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 16.9 | 21 |
Developing Countries | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8.7 | 10.1 |
Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10 | 10.9 |
Other Developed Countries | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3.1 | 2.5 |
Other Developed Countries | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3.4 | 5.1 |
Other Developed Countries | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3.5 | 3.3 |
U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 347.2 | 361.7 |
U.S. and Canada | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 174.1 | 180.4 |
U.S. and Canada | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 70.6 | 83.9 |
U.S. and Canada | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 102.5 | $ 97.4 |
Restructuring - Costs Included
Restructuring - Costs Included in Selling, General & Administrative Expenses (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)employee | Mar. 31, 2019USD ($) | |
Restructuring and Related Activities [Abstract] | ||
Number of employees | employee | 100 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 4.3 | $ 3.6 |
Severance and related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 3.5 | 2.8 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0.8 | $ 0.8 |
Restructuring - Costs by Report
Restructuring - Costs by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | $ 4.3 | $ 3.6 |
Enclosures | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 3.1 | 0 |
Thermal Management | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 1.1 | 2 |
Electrical & Fastening Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 0 | 0.9 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | $ 0.1 | $ 0.7 |
Restructuring - Accrual Activit
Restructuring - Accrual Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 9.5 |
Costs incurred | 3.5 |
Cash payments and other | (3.1) |
Ending balance | $ 9.9 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) | Apr. 30, 2018shares |
Subsequent Events [Abstract] | |
Equity interests issued per ordinary predecessor share (in shares) | 1 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 18.6 | $ 56.4 |
Weighted average common shares outstanding | ||
Basic (shares) | 169.8 | 176.5 |
Dilutive impact of stock options, restricted stock units and performance share units | 1.2 | 1.7 |
Diluted (shares) | 171 | 178.2 |
Earnings per ordinary share | ||
Basic pro forma earnings per ordinary share (in dollars per share) | $ 0.11 | $ 0.32 |
Diluted pro forma earnings per ordinary share (in dollars per share) | $ 0.11 | $ 0.32 |
Anti-dilutive stock options excluded from the calculation of diluted earnings per share | 2.9 | 1.9 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Feb. 10, 2020 | Aug. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||||
Consideration transferred, net of cash acquired | $ 27 | $ 0 | |||
Eldon Holding AB | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred, net of cash acquired | $ 127.8 | ||||
Goodwill | $ 45.6 | ||||
Net sales of acquiree | $ 26.2 | ||||
WBT | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 13.9 | ||||
Definite-lived customer relationships | $ 11.3 | ||||
Estimated useful life of intangible asset (in years) | 12 years | ||||
Payments to acquire businesses, gross | $ 30 | ||||
Customer relationships | Eldon Holding AB | |||||
Business Acquisition [Line Items] | |||||
Definite-lived customer relationships | $ 46.7 | ||||
Estimated useful life of intangible asset (in years) | 17 years |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 2,279.1 |
Acquisitions/divestitures | 14.4 |
Foreign currency translation/other | (2.7) |
Ending Balance | 2,290.8 |
Enclosures | |
Goodwill [Roll Forward] | |
Beginning Balance | 315.4 |
Acquisitions/divestitures | 0.5 |
Foreign currency translation/other | (0.2) |
Ending Balance | 315.7 |
Thermal Management | |
Goodwill [Roll Forward] | |
Beginning Balance | 925.5 |
Acquisitions/divestitures | 0 |
Foreign currency translation/other | (2.5) |
Ending Balance | 923 |
Electrical & Fastening Solutions | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,038.2 |
Acquisitions/divestitures | 13.9 |
Foreign currency translation/other | 0 |
Ending Balance | $ 1,052.1 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets - Definite-life Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 1,221.8 | $ 1,212.7 |
Accumulated amortization | (348.7) | (333.5) |
Net | 873.1 | 879.2 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 1,205.5 | 1,197.9 |
Accumulated amortization | (340.9) | (326.1) |
Net | 864.6 | 871.8 |
Proprietary technology and patents | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 16.3 | 14.8 |
Accumulated amortization | (7.8) | (7.4) |
Net | $ 8.5 | $ 7.4 |
Goodwill and Other Identifiab_5
Goodwill and Other Identifiable Intangible Assets - Indefinite-life Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization | $ 16 | $ 15.1 | |
Cost | 1,503.1 | $ 1,494 | |
Accumulated amortization | (348.7) | (333.5) | |
Net | 1,154.4 | 1,160.5 | |
Trade names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-life intangibles | $ 281.3 | $ 281.3 |
Goodwill and Other Identifiab_6
Goodwill and Other Identifiable Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Acquisitions, net of cash acquired | $ 27 | $ 0 |
Amortization | $ 16 | $ 15.1 |
Goodwill and Other Identifiab_7
Goodwill and Other Identifiable Intangible Assets - Estimated Future Amortization Expense for Identifiable Intangible Assets (Details) $ in Millions | Mar. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Q2-Q4 2019 | $ 48 |
2020 | 62.9 |
2021 | 62.8 |
2022 | 62.6 |
2023 | 62 |
2024 | $ 62 |
Derivatives and Financial Ins_3
Derivatives and Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative instruments in hedges, net | $ 18.9 | $ 1.9 |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 27.4 | 34.5 |
Currency Swap | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 303.5 | $ 303.5 |
Derivatives and Financial Ins_4
Derivatives and Financial Instruments - Recorded Amounts and Estimated Fair Values (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total | $ 1,215.9 | |
Recorded Amount | ||
Derivative [Line Items] | ||
Variable rate debt | 415.9 | $ 269.6 |
Fixed rate debt | 800 | 800 |
Total | 1,215.9 | 1,069.6 |
Fair Value | ||
Derivative [Line Items] | ||
Variable rate debt | 415.9 | 269.6 |
Fixed rate debt | 842 | 863.5 |
Total | $ 1,257.9 | $ 1,133.1 |
Derivatives and Financial Ins_5
Derivatives and Financial Instruments - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 13.8 | $ 17.3 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | (0.2) | (3.4) |
Foreign currency contract assets | 21 | 7.6 |
Deferred compensation plan assets | 13.8 | 17.3 |
Total recurring fair value measurements | 34.6 | 21.5 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | 0 | 0 |
Deferred compensation plan assets | 9.8 | 12.8 |
Total recurring fair value measurements | 9.8 | 12.8 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | (0.2) | (3.4) |
Foreign currency contract assets | 21 | 7.6 |
Deferred compensation plan assets | 0 | 0 |
Total recurring fair value measurements | 20.8 | 4.2 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | 0 | 0 |
Deferred compensation plan assets | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Recurring | NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | 0 | 0 |
Deferred compensation plan assets | 4 | 4.5 |
Total recurring fair value measurements | $ 4 | $ 4.5 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,215.9 | ||
Unamortized debt issuance costs and discounts | (4.7) | $ (5) | |
Total debt | 1,211.2 | 1,064.6 | |
Less: Current maturities and short-term borrowings | (18.8) | (17.5) | |
Long-term debt | $ 1,192.4 | 1,047.1 | |
Senior Notes [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Average interest rate at March 31, 2020 | 2.33% | ||
Long-term debt, gross | $ 284.6 | 134.6 | |
Senior Notes [Member] | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Average interest rate at March 31, 2020 | 2.304% | ||
Long-term debt, gross | $ 131.3 | 135 | |
Senior Notes [Member] | Senior Notes, Due 2023 | |||
Debt Instrument [Line Items] | |||
Average interest rate at March 31, 2020 | 3.95% | 3.95% | |
Long-term debt, gross | $ 300 | 300 | |
Senior Notes [Member] | Senior Notes, Due 2028 | |||
Debt Instrument [Line Items] | |||
Average interest rate at March 31, 2020 | 4.55% | 4.55% | |
Long-term debt, gross | $ 500 | $ 500 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - Senior Notes [Member] - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Senior Notes, Due 2023 | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 300,000,000 | |
Average interest rate | 3.95% | 3.95% |
Senior Notes, Due 2028 | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 500,000,000 | |
Average interest rate | 4.55% | 4.55% |
Debt - Senior Credit Facilities
Debt - Senior Credit Facilities (Details) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2018 | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 1,215,900,000 | $ 1,215,900,000 | |||
Senior Notes [Member] | Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio covenant | 3.75 | 3.75 | |||
Leverage ratio covenant period | 12 months | ||||
EBITDA ratio covenant | 3 | 3 | |||
Senior Notes [Member] | Senior Credit Facilities | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt covenant, consolidated unrestricted cash | $ 5,000,000 | $ 5,000,000 | |||
Senior Notes [Member] | Senior Credit Facilities | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt covenant, consolidated unrestricted cash | 250,000,000 | 250,000,000 | |||
Senior Notes [Member] | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Debt term | 5 years | ||||
Maximum borrowing capacity | $ 200,000,000 | ||||
Long-term Debt, Gross | 131,300,000 | 131,300,000 | $ 135,000,000 | ||
Senior Notes [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt term | 5 years | ||||
Maximum borrowing capacity | $ 600,000,000 | ||||
Line of credit increase limit | 300,000,000 | 300,000,000 | |||
Long-term Debt, Gross | 284,600,000 | 284,600,000 | $ 134,600,000 | ||
Proceeds from lines of credit | 150,000,000 | ||||
Line of credit facility, remaining borrowing capacity | $ 315,400,000 | $ 315,400,000 |
Debt - Schedule of Contracutal
Debt - Schedule of Contracutal Debt Maturities (Details) $ in Millions | Mar. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Q2-Q4 2019 | $ 13.8 |
2020 | 20 |
2021 | 20 |
2022 | 662.1 |
2023 | 0 |
2024 | 0 |
Thereafter | 500 |
Total | $ 1,215.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate | 62.50% | 14.70% | ||
Total gross liability for unrecognized tax benefits | $ 19.5 | $ 17 | ||
Deferred tax assets, valuation allowance | 19.4 | |||
Provision for income taxes | $ 31 | $ 9.7 | ||
Forecast | ||||
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ 6 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Feb. 19, 2019 | Jul. 23, 2018 | |
Equity [Abstract] | |||||
Repurchase of shares of our common stock up to a maximum aggregate value | $ 380 | $ 500 | |||
Stock Repurchased During Period, Shares | 0.2 | 3 | |||
Stock Repurchased During Period, Value | $ (3.2) | $ (79.9) | |||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 585.1 | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 880 | ||||
Dividends payable (in dollars per share) | $ 0.175 | ||||
Dividends payable | $ 29.7 | $ 29.7 |
Segment Information - Financial
Segment Information - Financial Information by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 520.9 | $ 538 |
Segment income | 60.3 | 77.5 |
Enclosures | ||
Segment Reporting Information [Line Items] | ||
Net sales | 258.5 | 255.5 |
Segment income | 40.9 | 45.6 |
Thermal Management | ||
Segment Reporting Information [Line Items] | ||
Net sales | 120.5 | 145.1 |
Segment income | 20.3 | 34.3 |
Electrical & Fastening Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 141.9 | 137.4 |
Segment income | 33.5 | 31.2 |
Other | ||
Segment Reporting Information [Line Items] | ||
Segment income | (13.2) | (14.9) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment income | $ 81.5 | $ 96.2 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Profit (Losee) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | $ 60.3 | $ 77.5 |
Intangible amortization | (16) | (15.1) |
Restructuring and other | (4.3) | (3.6) |
Net interest expense | (9.9) | (10.5) |
Other expense | (0.8) | (0.9) |
Income before income taxes | 49.6 | 66.1 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | 81.5 | 96.2 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Intangible amortization | (16) | (15.1) |
Restructuring and other | (4.3) | (3.6) |
Acquisition transaction and integration costs | (0.9) | 0 |
Net interest expense | (9.9) | (10.5) |
Other expense | $ (0.8) | $ (0.9) |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Term of lease contract (in months) | 12 months | |
Rent expense | $ 5.1 | $ 4.2 |
Leases not yet commenced | no |
Leases - Weighted Average Term
Leases - Weighted Average Term and Discount Rate (Details) | Mar. 31, 2020 | Mar. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term, operating leases | 5 years | 5 years |
Weighted average discount rate, operating leases | 3.90% | 4.30% |
Leases - Future Lease Payments,
Leases - Future Lease Payments, Topic 842 (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Lease, After Adoption of 842 | ||
Remainder of 2020 | $ 12.7 | |
2021 | 12.7 | |
2021 | 8.7 | |
2023 | 5.1 | |
2024 | 3.7 | |
2025 | 3.2 | |
Thereafter | 7.5 | |
Total lease payments | 53.6 | |
Less imputed interest | (5.5) | |
Total reported lease liability | $ 48.1 | $ 48.4 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 4.6 | $ 3.9 |
Lease right-of-use assets obtained in exchange for new lease liabilities | $ 5.2 | $ 0.6 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Lease right-of-use assets | $ 43.9 | $ 44.2 |
Current lease liabilities | 14.5 | 14.7 |
Non-current lease liabilities | 33.6 | 33.7 |
Total lease liabilities | $ 48.1 | $ 48.4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for services and product warranties | $ 0 | $ 0 |
Stand-by Letters of Credit, Bank Guarantees and Bonds | ||
Guarantor Obligations [Line Items] | ||
Obligations outstanding | $ 67.5 | $ 70 |