Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-15579 | |
Entity Registrant Name | MSA SAFETY INC | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 46-4914539 | |
Entity Address, Address Line One | 1000 Cranberry Woods Drive | |
Entity Address, City or Town | Cranberry Township, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 16066-5207 | |
City Area Code | 724 | |
Local Phone Number | 776-8600 | |
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 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | MSA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 38,850,476 | |
Amendment Flag | false | |
Entity Central Index Key | 0000066570 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 341,145 | $ 326,038 |
Cost of products sold | 183,786 | 176,056 |
Gross profit | 157,359 | 149,982 |
Selling, general and administrative | 80,237 | 78,429 |
Research and development | 14,112 | 13,705 |
Restructuring charges (Note 4) | 2,007 | 5,831 |
Currency exchange losses, net (Note 6) | 270 | 16,961 |
Product liability expense (Note 17) | 1,951 | 2,896 |
Operating income | 58,782 | 32,160 |
Interest expense | 3,144 | 2,360 |
Other income, net | (1,259) | (2,579) |
Total other expense (income), net | 1,885 | (219) |
Income before income taxes | 56,897 | 32,379 |
Provision for income taxes (Note 10) | 13,095 | 9,003 |
Net income | 43,802 | 23,376 |
Net income attributable to noncontrolling interests | (128) | (144) |
Net income attributable to MSA Safety Incorporated | $ 43,674 | $ 23,232 |
Earnings per share attributable to MSA Safety Incorporated common shareholders (Note 9): | ||
Basic (in dollars per share) | $ 1.12 | $ 0.60 |
Diluted (in dollars per share) | 1.11 | 0.59 |
Dividends per common share (in dollars per share) | $ 0.42 | $ 0.38 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 43,802 | $ 23,376 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustments (Note 6) | (22,947) | 361 |
Pension and post-retirement plan actuarial gains, net of tax (Note 6) | 3,102 | 2,023 |
Unrealized (loss) gain on available-for-sale securities (Note 6) | (62) | 536 |
Reclassification of currency translation from accumulated other comprehensive (loss) into net income (Note 6) | 720 | 15,359 |
Total other comprehensive (loss) income, net of tax | (19,187) | 18,279 |
Comprehensive income | 24,615 | 41,655 |
Comprehensive income attributable to noncontrolling interests | (13) | (287) |
Comprehensive income attributable to MSA Safety Incorporated | $ 24,602 | $ 41,368 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 122,629 | $ 152,195 |
Trade receivables, less allowance for credit loss of $5,283 and $4,860 | 263,002 | 255,082 |
Inventories (Note 3) | 195,647 | 185,027 |
Investments, short-term (Note 16) | 69,769 | 49,892 |
Prepaid income taxes | 13,913 | 13,072 |
Notes receivable, insurance companies (Note 17) | 3,706 | 3,676 |
Prepaid expenses and other current assets | 35,114 | 34,419 |
Total current assets | 703,780 | 693,363 |
Property, plant and equipment, net (Note 5) | 163,141 | 167,038 |
Operating lease assets, net | 48,341 | 51,675 |
Prepaid pension cost (Note 14) | 78,512 | 75,066 |
Deferred tax assets (Note 10) | 31,885 | 32,596 |
Goodwill (Note 13) | 430,114 | 436,679 |
Intangible assets, net (Note 13) | 165,819 | 171,326 |
Notes receivable, insurance companies, noncurrent (Note 17) | 52,662 | 52,336 |
Insurance receivable (Note 17) and other noncurrent assets | 56,672 | 59,614 |
Total assets | 1,730,926 | 1,739,693 |
Liabilities | ||
Notes payable and current portion of long-term debt (Note 12) | 20,000 | 20,000 |
Accounts payable | 89,062 | 89,120 |
Employees’ compensation | 28,392 | 41,882 |
Insurance and product liability (Note 17) | 28,177 | 25,870 |
Income taxes payable (Note 10) | 16,507 | 6,739 |
Warranty reserve (Note 17) and other current liabilities | 82,080 | 93,898 |
Total current liabilities | 264,218 | 277,509 |
Long-term debt, net (Note 12) | 351,592 | 328,394 |
Pensions and other employee benefits | 184,179 | 186,697 |
Noncurrent operating lease liabilities | 39,857 | 42,632 |
Deferred tax liabilities (Note 10) | 10,069 | 9,787 |
Product liability (Note 17) and other noncurrent liabilities | 161,629 | 162,101 |
Total liabilities | 1,011,544 | 1,007,120 |
Commitments and contingencies (Note 18) | ||
Equity | ||
Preferred stock, 4 1/2% cumulative, $50 par value (Note 7) | 3,569 | 3,569 |
Common stock, no par value (Note 7) | 232,167 | 229,127 |
Treasury shares, at cost (Note 7) | (329,674) | (305,159) |
Accumulated other comprehensive loss (Note 6) | (233,075) | (214,003) |
Retained earnings | 1,039,609 | 1,012,266 |
Total MSA Safety Incorporated shareholders' equity | 712,596 | 725,800 |
Noncontrolling interests | 6,786 | 6,773 |
Total shareholders’ equity | 719,382 | 732,573 |
Total liabilities and shareholders’ equity | $ 1,730,926 | $ 1,739,693 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 5,283 | $ 4,860 |
Common stock, par value (dollars per share) | $ 0 | $ 0 |
Preferred Stock | ||
Preferred stock, dividend rate (percentage) | 4.50% | 4.50% |
Preferred stock, par value (dollars per share) | $ 50 | $ 50 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net income | $ 43,802 | $ 23,376 |
Depreciation and amortization | 9,640 | 9,326 |
Stock-based compensation (Note 11) | 3,522 | 2,745 |
Pension expense (Note 14) | 2,216 | 48 |
Deferred income tax provision (Note 10) | (546) | 1,834 |
Loss on asset dispositions, net | 122 | 25 |
Pension contributions (Note 14) | (1,891) | (1,767) |
Currency exchange losses, net | 270 | 16,961 |
Product liability expense (Note 17) | 1,951 | 2,896 |
Collections on insurance receivables and notes receivable, insurance companies (Note 17) | 3,000 | 8,122 |
Product liability payments (Note 17) | (2,328) | (20,003) |
Changes in: | ||
Trade receivables | (15,339) | (7,720) |
Inventories (Note 3) | (18,988) | (16,127) |
Prepaid expenses and other current assets | (4,396) | (8,055) |
Accounts payable and accrued liabilities | (6,834) | (10,523) |
Other noncurrent assets and liabilities | (594) | 79 |
Cash Flow From Operating Activities | 13,607 | 1,217 |
Investing Activities | ||
Capital expenditures | (6,562) | (4,897) |
Purchase of short-term investments (Note 16) | (69,612) | (52,541) |
Proceeds from maturities of short-term investments (Note 16) | 50,000 | 33,600 |
Property disposals | 92 | 12 |
Cash Flow Used in Investing Activities | (26,082) | (23,826) |
Financing Activities | ||
Payments on short-term debt, net | 0 | 91 |
Proceeds from long-term debt (Note 12) | 378,000 | 133,000 |
Payments on long-term debt (Note 12) | (350,000) | (119,000) |
Cash dividends paid | (16,331) | (14,652) |
Company stock purchases (Note 7) | (27,730) | (7,446) |
Exercise of stock options (Note 7) | 2,733 | 1,465 |
Cash Flow Used in Financing Activities | (13,328) | (6,542) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,756) | (3,221) |
Decrease in cash, cash equivalents and restricted cash | (29,559) | (32,372) |
Beginning cash, cash equivalents and restricted cash | 152,543 | 140,604 |
Ending cash, cash equivalents and restricted cash | 122,984 | 108,232 |
Supplemental cash flow information: | ||
Total cash, cash equivalents and restricted cash | $ 122,984 | $ 108,232 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Retained Earnings, Accumulated Other Comprehensive Loss and Noncontrolling Interests - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 725,800 | ||
Net income | 43,674 | $ 23,232 | |
Pension and post-retirement plan actuarial gains, net of tax | 3,102 | 2,023 | |
(Income) loss attributable to noncontrolling interests | (128) | (144) | |
Preferred dividends | (10) | (10) | |
Cumulative effect of the adoption of ASU 2018-02 | 719,382 | ||
Ending Balance | 712,596 | ||
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1,012,266 | 935,577 | |
Net income | 43,802 | 23,376 | |
(Income) loss attributable to noncontrolling interests | (128) | (144) | |
Common dividends | (16,321) | (14,642) | |
Preferred dividends | (10) | (10) | |
Ending Balance | 1,039,609 | 947,929 | |
Accumulated Other Comprehensive (Loss) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (214,003) | (218,927) | |
Foreign currency translation adjustments | (22,947) | 361 | |
Pension and post-retirement plan actuarial gains, net of tax | 3,102 | 2,023 | |
Unrealized net loss on available-for-sale securities (Note 16) | (62) | 536 | |
Reclassification from accumulated other comprehensive loss into net income | 720 | 15,359 | |
(Income) loss attributable to noncontrolling interests | 115 | (143) | |
Ending Balance | (233,075) | (204,563) | |
Noncontrolling Interests | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 6,773 | 5,637 | |
(Income) loss attributable to noncontrolling interests | 13 | 287 | |
Ending Balance | $ 6,786 | $ 5,924 | |
Cumulative Effect Period of Adoption Adjustment | Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cumulative effect of the adoption of ASU 2018-02 | $ 3,772 | ||
Cumulative Effect Period of Adoption Adjustment | Accumulated Other Comprehensive (Loss) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cumulative effect of the adoption of ASU 2018-02 | $ (3,772) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Changes in Retained Earnings, Accumulated Other Comprehensive Loss and Noncontrolling Interests (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Tax on pension and post-retirement plan adjustments | $ 1,067 | $ 666 |
Preferred stock, dividends (in dollars per share) | $ 0.5625 | $ 0.5625 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements of MSA Safety Incorporated and its subsidiaries ("MSA" or the "Company") are unaudited. These condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the Company's results. Intercompany accounts and transactions have been eliminated. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2019 , Condensed Consolidated Balance Sheet data was derived from the audited Consolidated Balance Sheet, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). This Form 10-Q report should be read in conjunction with MSA's Form 10-K for the year ended December 31, 2019 |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. This ASU introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments, including loans, held-to-maturity debt securities, loan commitments, financial guarantees and net investments in leases, as well as reinsurance and trade receivables. This ASU was adopted on January 1, 2020, which did not have an impact on the unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which improves fair value disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. The Company adopted this ASU on January 1, 2020. Based the Company's portfolio of financial instruments and the limited amount of Level 3 investments, the adoption of this ASU did not have a material impact on the unaudited condensed consolidated financial statements but does expect changes to our annual disclosures. In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which improves defined benefit disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The amendments in this ASU are required to be applied on a retrospective basis to all periods presented. The Company is still evaluating the impact that the adoption of ASU 2018-14 will have on the unaudited condensed consolidated financial statements but does expect changes to our disclosures. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table sets forth the components of inventory: (In thousands) March 31, 2020 December 31, 2019 Finished products $ 74,180 $ 71,918 Work in process 8,072 4,083 Raw materials and supplies 155,587 151,129 Inventories at current cost 237,839 227,130 Less: LIFO valuation (42,192 ) (42,103 ) Total inventories $ 195,647 $ 185,027 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During the three months ended March 31, 2020 , we recorded restructuring charges of $2.0 million . International segment restructuring charges of $1.9 million during the three months ended March 31, 2020 , were primarily related to severance costs for staff reductions associated with our ongoing initiatives to drive profitable growth. During the three months ended March 31, 2019 , we recorded restructuring charges of $5.8 million . International segment restructuring charges of $5.7 million during the three months ended March 31, 2019 , were primarily related to severance costs for staff reductions associated with our ongoing initiatives to drive profitable growth. Corporate segment restructuring charges of $0.1 million during the three months ended March 31, 2019 , were primarily related to the legal and operational realignment of our U.S. and Canadian operations. Activity and reserve balances for restructuring charges by segment were as follows: (In millions) Americas International Corporate Total Reserve balances at December 31, 2018 $ 0.5 $ 4.0 $ — $ 4.5 Restructuring charges 0.5 12.7 0.6 13.8 Currency translation and other adjustments (0.1 ) (0.6 ) — (0.7 ) Cash payments / utilization (0.6 ) (10.2 ) (0.6 ) (11.4 ) Reserve balances at December 31, 2019 $ 0.3 $ 5.9 $ — $ 6.2 Restructuring charges 0.1 1.9 — 2.0 Currency translation and other adjustments — (0.1 ) — (0.1 ) Cash payments / utilization (0.1 ) (1.8 ) — (1.9 ) Reserve balances at March 31, 2020 $ 0.3 $ 5.9 $ — $ 6.2 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following table sets forth the components of property, plant and equipment, net: (In thousands) March 31, 2020 December 31, 2019 Land $ 4,107 $ 4,194 Buildings 124,221 125,223 Machinery and equipment 395,784 397,287 Construction in progress 24,588 24,759 Total 548,700 551,463 Less: accumulated depreciation (385,559 ) (384,425 ) Property, plant and equipment, net $ 163,141 $ 167,038 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications Out of Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss were as follows: MSA Safety Incorporated Noncontrolling Interests Three Months Ended March 31, Three Months Ended March 31, (In thousands) 2020 2019 2020 2019 Pension and other post-retirement benefits (a) Balance at beginning of period $ (124,848 ) $ (115,517 ) $ — $ — Amounts reclassified from accumulated other comprehensive loss into net income: Amortization of prior service credit (Note 14) (52 ) (105 ) — — Recognized net actuarial losses (Note 14) 4,221 2,794 — — Tax benefit (1,067 ) (666 ) — — Total amount reclassified from accumulated other comprehensive loss, net of tax, into net income 3,102 2,023 — — Reclassification to retained earnings due to adoption of ASU 2018-02 $ — $ (3,772 ) Balance at end of period $ (121,746 ) $ (117,266 ) $ — $ — Available-for-sale securities Balance at beginning of period 6 (572 ) — Unrealized (loss) gain on available-for-sale securities (Note 16) (62 ) 536 — Balance at end of period $ (56 ) $ (36 ) $ — $ — Foreign Currency Translation Balance at beginning of period (89,161 ) (102,838 ) 423 496 Reclassification from accumulated other comprehensive loss into net income 720 (b) 15,359 (c) — — Foreign currency translation adjustments (22,832 ) 218 (115 ) 143 Balance at end of period $ (111,273 ) $ (87,261 ) $ 308 $ 639 (a) Reclassifications out of accumulated other comprehensive loss and into net income are included in the computation of net periodic pension and other post-retirement benefit costs (refer to Note 14—Pensions and Other Post-retirement Benefits). (b) Reclassifications into net income relate primarily to the approval of our plan to close several subsidiaries in our Europe, Middle East & Africa ("EMEA") region and are included in Currency exchange losses, net, within the unaudited Condensed Consolidated Statement of Income. (c) |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Preferred Stock - The Company has authorized 100,000 shares of $50 par value 4.5% cumulative preferred nonvoting stock which is callable at $52.50 . There are 71,340 shares issued and 52,998 shares held in treasury at March 31, 2020 . The Treasury shares at cost line on the unaudited Condensed Consolidated Balance Sheet includes $1.8 million related to preferred stock. There were treasury purchases of 120 preferred stock shares during the three months ended March 31, 2020 . There were no treasury purchases of preferred stock during the three months ended March 31, 2019 . The Company has also authorized 1,000,000 shares of $10 par value second cumulative preferred voting stock. No shares have been issued as of March 31, 2020 . Common Stock - The Company has authorized 180,000,000 shares of no par value common stock. There were 62,081,391 shares issued as of December 31, 2019 . No new shares were issued during the three months ended March 31, 2020 , or 2019 . There were 38,845,594 and 38,841,194 shares outstanding at March 31, 2020 , and December 31, 2019 , respectively. Treasury Shares - The Company's share repurchase program authorizes up to $100.0 million to repurchase MSA common stock in the open market and in private transactions. The share purchase program has no expiration date. The maximum number of shares that may be purchased is calculated based on the dollars remaining under the program and the respective month-end closing share price. During the three months ended March 31, 2020 , 175,000 shares were repurchased under this program. No shares were repurchased under the program during the three months ended March 31, 2019 . We do not have any other share repurchase programs. There were 23,235,797 and 23,240,197 Treasury Shares at March 31, 2020 , and December 31, 2019 , respectively. The Company issues Treasury Shares for all share based benefit plans. Shares are issued from Treasury at the average Treasury Share cost on the date of the transaction. There were 58,840 and 230,112 Treasury Shares issued for these purposes during the three months ended March 31, 2020 and 2019 , respectively. Common stock activity is summarized as follows: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (In thousands) Common Treasury Common Treasury Balance at beginning of period $ 229,127 $ (303,566 ) $ 211,806 $ (296,390 ) Stock compensation expense 3,522 — 2,745 — Restricted and performance stock awards (2,239 ) 2,239 (2,411 ) 2,411 Stock options exercised 1,757 976 959 506 Treasury shares purchased — (7,617 ) — (7,446 ) Share repurchase program — (20,113 ) — — Balance at end of period $ 232,167 $ (328,081 ) $ 213,099 $ (300,919 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information On January 1, 2020, we restructured our business from six geographical operating segments into four geographical operating segments that are based on management responsibilities: Northern North America, Latin America, Europe, Middle East & Africa ("EMEA"), and Asia Pacific ("APAC") to better serve customer needs. The operating segments have been aggregated (based on economic similarities, the nature of their products, end-user markets and methods of distribution) into three reportable segments: Americas, International, and Corporate. The operating segment change did not impact reportable segments as all changes were within the International reportable segment. The Americas segment is comprised of our operations in North America and Latin America geographies. The International segment is comprised of our operations of all geographies outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits from the expenses are derived. The Company's sales are allocated to each country based primarily on the destination of the end-customer. Adjusted operating income (loss), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income (loss) is defined as operating income excluding restructuring charges, currency exchange gains (losses), product liability expense, strategic transaction costs and COVID-19 related costs and adjusted operating margin is defined as adjusted operating income (loss) divided by segment sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization and adjusted EBITDA margin is defined as adjusted EBITDA divided by segment sales to external customers. Adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under U.S. GAAP, and therefore, do not purport to be alternatives to operating income or operating margin as a measure of operating performance. Further, the Company's measure of adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) and adjusted EBITDA on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating income as presented on the Consolidated Statement of Income. The accounting principles applied at the operating segment level in determining operating income (loss) are generally the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. Reportable segment information is presented in the following table: (In thousands, except percentage amounts) Americas International Corporate Consolidated Three Months Ended March 31, 2020 Sales to external customers $ 231,253 $ 109,892 $ — $ 341,145 Operating income 58,782 Restructuring charges (Note 4) 2,007 Currency exchange losses, net (Note 6) 270 Product liability expense (Note 17) 1,951 Strategic transaction costs (Note 18) 97 COVID-19 related costs 757 Adjusted operating income (loss) 59,807 12,671 (8,614 ) 63,864 Adjusted operating margin % 25.9 % 11.5 % Depreciation and amortization 9,640 Adjusted EBITDA 66,257 15,765 (8,518 ) 73,504 Adjusted EBITDA % 28.7 % 14.3 % (In thousands, except percentage amounts) Americas International Corporate Consolidated Three Months Ended March 31, 2019 Sales to external customers $ 213,687 $ 112,351 $ — $ 326,038 Operating income 32,160 Restructuring charges (Note 4) 5,831 Currency exchange losses, net (Note 6) 16,961 Product liability expense (Note 17) 2,896 Strategic transaction costs (Note 18) 456 Adjusted operating income (loss) 54,803 11,040 (7,539 ) 58,304 Adjusted operating margin % 25.6 % 9.8 % Depreciation and amortization 9,326 Adjusted EBITDA 60,900 14,171 (7,441 ) 67,630 Adjusted EBITDA % 28.5 % 12.6 % Total sales by product group was as follows: Three Months Ended March 31, 2020 Consolidated Americas International (In thousands, except percentages) Dollars Percent Dollars Percent Dollars Percent Breathing Apparatus 75,844 22% 52,693 23% $ 23,151 21% Fixed Gas & Flame Detection 69,911 21% 41,247 18% 28,664 26% Firefighter Helmets & Protective Apparel 42,547 12% 35,113 15% 7,434 7% Portable Gas Detection 41,052 12% 27,648 12% 13,404 12% Industrial Head Protection 35,332 10% 27,555 12% 7,777 7% Fall Protection 27,428 8% 17,697 8% 9,731 9% Other* 49,031 15% 29,300 12% 19,731 18% Total $ 341,145 100% $ 231,253 100% $ 109,892 100% Three Months Ended March 31, 2019 Consolidated Americas International (In thousands, except percentages) Dollars Percent Dollars Percent Dollars Percent Breathing Apparatus $ 75,446 23% $ 50,904 24% $ 24,542 22% Fixed Gas & Flame Detection 60,398 19% 32,930 15% 27,468 24% Firefighter Helmets & Protective Apparel 43,577 13% 35,064 16% 8,513 8% Portable Gas Detection 40,726 13% 26,991 13% 13,735 12% Industrial Head Protection 35,744 11% 27,836 13% 7,908 7% Fall Protection 30,128 9% 17,961 8% 12,167 11% Other* 40,019 12% 22,001 11% 18,018 16% Total $ 326,038 100% $ 213,687 100% $ 112,351 100% * Other products include sales of Air Purifying Respirators. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share attributable to MSA Safety Incorporated common shareholders is computed by dividing net income, after the deduction of preferred stock dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to MSA Safety Incorporated common shareholders assumes the issuance of common stock for all potentially dilutive share equivalents outstanding not classified as participating securities. Participating securities are defined as unvested stock-based payment awards that contain nonforfeitable rights to dividends. Amounts attributable to MSA Safety Incorporated common shareholders: Three Months Ended March 31, (In thousands, except per share amounts) 2020 2019 Net income $ 43,674 $ 23,232 Preferred stock dividends (10 ) (10 ) Net income available to common equity 43,664 23,222 Dividends and undistributed earnings allocated to participating securities (33 ) (22 ) Net income available to common shareholders 43,631 23,200 Basic weighted-average shares outstanding 38,824 38,536 Stock options and other stock compensation 528 548 Diluted weighted-average shares outstanding 39,352 39,084 Antidilutive stock options — — Earnings per share: Basic $ 1.12 $ 0.60 Diluted $ 1.11 $ 0.59 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the three months ended March 31, 2020 , was 23.0% and differs from the U.S. federal statutory rate of 21% primarily due to state income taxes, higher foreign entity losses in jurisdictions where we cannot take tax benefits, partially offset by tax benefits on certain share-based payments. The Company's effective tax rate for the three months ended March 31, 2019 , was 27.8% which differs from the U.S. federal statutory rate of 21% primarily due to non-deductible foreign exchange on entity closures partially offset by tax benefits on certain share-based payments. At March 31, 2020 , the Company had a gross liability for unrecognized tax benefits of $4.8 million . The Company has recognized tax benefits associated with these liabilities of $1.9 million at March 31, 2020 . The gross liability includes amounts associated with prior period foreign tax exposure. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company's liability for accrued interest related to uncertain tax positions was $0.7 million at March 31, 2020 . We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our condensed consolidated financial statements. |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | Stock Plans The 2016 Management Equity Incentive Plan provides for various forms of stock-based compensation for eligible key employees through May 2026. Management stock-based compensation includes stock options, restricted stock awards, restricted stock units and performance stock units. The 2017 Non-Employee Directors’ Equity Incentive Plan provides for grants of stock options and restricted stock to non-employee directors through May 2027. We issue treasury shares for stock option exercises and grants of restricted stock and performance stock. Please refer to Note 7—Capital Stock for further information regarding stock compensation share issuance. Stock compensation expense is as follows: Three Months Ended March 31, (In thousands) 2020 2019 Stock compensation expense $ 3,522 $ 2,745 Income tax benefit 859 670 Stock compensation expense, net of income tax benefit $ 2,663 $ 2,075 A summary of stock option activity for the three months ended March 31, 2020 , follows: Shares Weighted Average Exercise Price Outstanding at January 1, 2020 559,656 $ 45.78 Exercised (72,937 ) 37.47 Forfeited (952 ) 41.98 Outstanding at March 31, 2020 485,767 47.03 Exercisable at March 31, 2020 481,388 $ 47.03 Restricted stock awards and restricted stock units are valued at the market value of the stock on the grant date. A summary of restricted stock activity for the three months ended March 31, 2020 , follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2020 172,701 $ 90.38 Granted 35,937 124.99 Vested (30,849 ) 73.24 Forfeited (1,654 ) 97.22 Unvested at March 31, 2020 176,135 $ 100.38 Performance stock units have a market condition modifier and are valued at an estimated fair value using a Monte Carlo model. The final number of shares to be issued for performance stock units granted in the first quarter of 2020 may range from 0% to 200% of the target award based on achieving the specified performance targets over the performance period plus an additional modifier based on total shareholder return (TSR) over the performance period. The following weighted average assumptions were used in estimating the fair value of the performance stock units granted in the first quarter of 2020 . Fair value per unit $127.36 Risk-free interest rate 1.16% Expected dividend yield 1.48% Expected volatility 24.8% MSA stock beta 0.988 The risk-free interest rate is based on the U.S. Treasury Constant Maturity rates as of the grant date converted into an implied spot rate yield curve. Expected dividend yield is based on the most recent annualized dividend divided by the one year average closing share price. Expected volatility is based on the ten year historical volatility using daily stock prices. Expected life is based on historical stock option exercise data. A summary of performance stock unit activity for the three months ended March 31, 2020 follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2020 238,035 $ 85.39 Granted 64,791 127.36 Performance adjustments 33,499 72.36 Vested (132,036 ) 73.00 Forfeited (448 ) 72.28 Unvested at March 31, 2020 203,841 $ 104.65 The performance adjustments above relate primarily to the final number of shares issued for the 2017 performance unit awards which vested in the first quarter of 2020 at 135.7% of the target award based on both cumulative performance against the operating margin and revenue growth targets and MSA's TSR during the three |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) March 31, 2020 December 31, 2019 2010 Senior Notes payable through 2021, 4.00%, net of debt issuance costs $ 40,000 $ 40,000 2016 Senior Notes payable through 2031, 3.40%, net of debt issuance costs 68,160 72,708 Senior revolving credit facility maturing in 2023, net of debt issuance costs 263,432 235,686 Total 371,592 348,394 Amounts due within one year, net of debt issuance costs 20,000 20,000 Long-term debt, net of debt issuance costs $ 351,592 $ 328,394 On September 7, 2018, the Company entered into an amended agreement covering its senior revolving credit facility that extended its term through September 2023 and increased the capacity to $600.0 million . Under the amended agreement, the Company may elect either a Base rate of interest (“BASE”) or an interest rate based on the London Interbank Offered Rate (“LIBOR”). The BASE is a daily fluctuating per annum rate equal to the highest of (i) 0.00% , (ii) the Prime Rate, (ii) the Federal Funds Open Rate plus one half of one percent ( 0.5% ), (iii) the Overnight Bank Funding Rate, plus one half of one percent ( 0.50% ), or (iv) the Daily Libor Rate plus one percent ( 1.00% ). The Company pays a credit spread of 0 to 175 basis points based on the Company’s net EBITDA leverage ratio and elected rate (BASE or LIBOR). The Company has a weighted average revolver interest rate of 1.98% as of March 31, 2020 . At March 31, 2020 , $333.1 million of the existing $600.0 million senior revolving credit facility was unused, including letters of credit issued under the facility. The facility also provides an accordion feature that allows the Company to access an additional $400.0 million of capacity pending approval from the bank group. On January 22, 2016, the Company entered into an amended multi-currency note purchase and private shelf agreement, pursuant to which the Company issued notes in an aggregate original principal amount of £54.9 million (approximately $68.3 million at March 31, 2020 ). The Notes are repayable in annual installments of £6.1 million (approximately $7.6 million at March 31, 2020 ), commencing January 22, 2023, with a final payment of any remaining amount outstanding on January 22, 2031. The interest rate on these Notes is fixed at 3.4% . On September 7, 2018, the Company further amended the multi-currency note purchase and private shelf agreement, among other things, to allow the Company to request from time to time during a three -year period ending September 7, 2021, the issuance of up to $150 million of additional senior notes. No additional notes have been issued under the amended agreement as of March 31, 2020 . On January 4, 2019, the Company entered into an amended and restated master note facility with New York Life. Under the amended facility, the Company may request from time to time during a three -year period ending January 4, 2022, the issuance of up to $150 million of additional senior promissory notes. As of March 31, 2020 , no notes have been issued under the amended facility. The senior revolving credit facility and the multi-currency note purchase and private shelf agreement require the Company to comply with specified financial covenants, including a requirement to maintain a minimum fixed charges coverage ratio of not less than 1.50 to 1.00 and a consolidated leverage ratio not to exceed 3.50 to 1.00 ; except during an acquisition period in which case the consolidated net leverage ratio shall not exceed 4.00 to 1.00 ; in each case calculated on the basis of the trailing four fiscal quarters. In addition, both agreements contain negative covenants limiting the ability of the Company and its subsidiaries to incur additional indebtedness or issue guarantees, create or incur liens, make loans and investments, make acquisitions, transfer or sell assets, enter into transactions with affiliated parties, make changes in its organizational documents that are materially adverse to lenders or modify the nature of MSA's or its subsidiaries' business. However, the covenants contained in the New York Life amended facility do not apply until promissory notes are issued. The Company was in compliance with all covenants at March 31, 2020 . The Company had outstanding bank guarantees and standby letters of credit with banks as of March 31, 2020 , totaling $8.3 million , of which $1.8 million relate to the senior revolving credit facility. The letters of credit serve to cover customer requirements in connection with certain sales orders and insurance. The Company is also required to provide cash collateral in connection with certain arrangements. At March 31, 2020 , the Company has $0.4 million |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in goodwill during the three months ended March 31, 2020 are as follows: (In thousands) Goodwill Balance at January 1, 2020 $ 436,679 Currency translation (6,565 ) Balance at March 31, 2020 $ 430,114 At March 31, 2020 , the Company had goodwill of $293.2 million and $136.9 million related to the Americas and International reportable segments, respectively. Changes in intangible assets, net during the three months ended March 31, 2020 , are as follows: (In thousands) Intangible Assets Net balance at January 1, 2020 $ 171,326 Amortization expense (2,886 ) Currency translation (2,621 ) Net balance at March 31, 2020 $ 165,819 At March 31, 2020 , the above intangible assets balance includes a trade name related to the Globe acquisition with an indefinite life totaling $60.0 million |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Other Post-retirement Benefits | Pensions and Other Post-retirement Benefits Components of net periodic benefit cost consisted of the following: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Three Months Ended March 31, Service cost $ 3,012 $ 2,423 $ 99 $ 89 Interest cost 3,726 4,705 179 249 Expected return on plan assets (8,503 ) (9,653 ) — — Amortization of prior service cost (credit) 46 (4 ) (98 ) (101 ) Recognized net actuarial losses 3,935 2,577 286 217 Net periodic benefit cost (a) $ 2,216 $ 48 $ 466 $ 454 (a) Components of net periodic benefit cost other than service cost are included in the line item "Other income, net" in the unaudited Condensed Consolidated Statement of Income. We made contributions of $1.9 million and $1.8 million to our pension plans during the three months ended March 31, 2020 and 2019 , respectively. We expect to make total contributions of approximately $7.6 million to our pension plans in 2020 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As part of our currency exchange rate risk management strategy, we may enter into certain derivative foreign currency forward contracts that do not meet the U.S. GAAP criteria for hedge accounting, but which have the impact of partially offsetting certain foreign currency exposures. We account for these forward contracts at fair value and report the related gains or losses in currency exchange losses, net, in the unaudited Condensed Consolidated Statement of Income. The notional amount of open forward contracts was $75.4 million and $74.9 million at March 31, 2020 , and December 31, 2019 , respectively. The following table presents the unaudited Condensed Consolidated Balance Sheet location and fair value of assets and liabilities associated with derivative financial instruments: (In thousands) March 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts: Warranty reserve and other current liabilities $ 261 $ 125 Foreign exchange contracts: Prepaid expenses and other current assets 2,056 687 The following table presents the unaudited Condensed Consolidated Statement of Income location and impact of derivative financial instruments: Loss Recognized in Income Three Months Ended March 31, (In thousands) Statement of Income Location 2020 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts Currency exchange losses, net $ 376 $ 1,262 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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. The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are: • Level 1—Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3—Unobservable inputs for the asset or liability. The valuation methodologies we used to measure financial assets and liabilities include the derivative financial instruments described in Note 15—Derivative Financial Instruments. We estimate the fair value of the derivative financial instruments, consisting of foreign currency forward contracts, based upon valuation models with inputs that generally can be verified by observable market conditions and do not involve significant management judgment. Accordingly, the fair values of the derivative financial instruments are classified within Level 2 of the fair value hierarchy. With the exception of our investments in marketable securities and fixed rate long-term debt, we believe that the reported carrying amounts of our financial assets and liabilities approximate their fair values. We value our investments in marketable securities, primarily fixed income, at fair value using quoted market prices for similar securities or pricing models. Accordingly, the fair values of the investments are classified within Level 2 of the fair value hierarchy. The amortized cost basis of our investments was $69.6 million and $49.7 million as of March 31, 2020 and December 31, 2019 , respectively. The fair value was $69.8 million and $49.9 million as of March 31, 2020 and December 31, 2019 , respectively, which was reported in "Investments, short-term" in the accompanying unaudited Condensed Consolidated Balance Sheet. The change in fair value is recorded in other comprehensive income, net of tax. The Company does not intend to sell, nor is it more likely than not that we will be required to sell, these securities prior to recovery of their cost, as such, management believes that any unrealized gains or losses are temporary; therefore, no impairment gains or losses relating to these securities have been recognized. All investments in marketable securities have maturities of one year or less and are currently in an unrealized loss position as of March 31, 2020 . The reported carrying amount of our fixed rate long-term debt (including the current portion) was $108 million and $113 million at March 31, 2020 , and December 31, 2019 , respectively. The fair value of this debt was $115 million and $129 million at March 31, 2020 , and December 31, 2019 , respectively. The fair value of this debt was determined using Level 2 inputs by evaluating similarly rated companies with publicly traded bonds where available or current borrowing rates available for financings with similar terms and maturities. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Product liability We face an inherent business risk of exposure to product liability claims arising from the alleged failure of our products to prevent the types of personal injury or death against which they are designed to protect. Product liability claims are categorized as either single incident or cumulative trauma. Single incident product liability claims. Single incident product liability claims involve incidents of short duration that are typically known when they occur and involve observable injuries, which provide an objective basis for quantifying damages. The Company estimates its liability for single incident product liability claims based on expected settlement costs for asserted single incident product liability claims and an estimate of costs for single incident product liability claims incurred but not reported ("IBNR"). The estimate for IBNR claims is based on experience, sales volumes, and other relevant information. The reserve for single incident product liability claims, which includes asserted single incident product liability claims and IBNR single incident product liability claims, was $3.3 million and $3.1 million at March 31, 2020 and December 31, 2019 , respectively. Single incident product liability expense was $0.2 million during both the three months ended March 31, 2020 and March 31, 2019 . Single incident product liability exposures are evaluated on an annual basis, or more frequently if changing circumstances warrant. Adjustments are made to the reserve as appropriate. Cumulative trauma product liability claims. Cumulative trauma product liability claims involve exposures to harmful substances (e.g., silica, asbestos and coal dust) that occurred years ago and may have developed over long periods of time into diseases such as silicosis, asbestosis, mesothelioma, or coal worker’s pneumoconiosis. One of the Company's subsidiaries Mine Safety Appliances Company, LLC ("MSA LLC") was named as a defendant in 1,658 lawsuits comprised of 2,520 claims as of March 31, 2020 . These lawsuits mainly involve respiratory protection products allegedly manufactured and sold by MSA LLC or its predecessors. The products at issue were manufactured many years ago and are not currently offered by MSA LLC. A summary of cumulative trauma product liability lawsuits and asserted cumulative trauma product liability claims activity is as follows: Three Months Ended March 31, 2020 Year Ended December 31, 2019 Open lawsuits, beginning of period 1,605 1,481 New lawsuits 113 346 Settled and dismissed lawsuits (60 ) (222 ) Open lawsuits, end of period 1,658 1,605 Three Months Ended March 31, 2020 Year Ended December 31, 2019 Asserted claims, beginning of period 2,456 2,355 New claims 124 486 Settled and dismissed claims (60 ) (385 ) Asserted claims, end of period 2,520 2,456 More than half of the open lawsuits at March 31, 2020 , have had a de minimis level of activity over the last 5 years. It is possible that these cases could become active again at any time due to changes in circumstances. Total cumulative trauma product liability reserve was $167.3 million at March 31, 2020 , including $3.2 million for claims settled but not yet paid and related defense costs, and $167.5 million at December 31, 2019 , including $3.0 million for claims settled but not yet paid and related defense costs. This reserve includes estimated amounts for asserted claims and IBNR claims. Those estimated amounts reflect asbestos, silica and coal dust claims expected to be resolved through the year 2069 and are not discounted to present value. The Company revised its estimates of MSA LLC's potential liability for cumulative trauma product liability claims for the year ended December 31, 2019 as a result of its annual review process described below. The reserve does not include amounts which will be spent to defend the claims covered by the reserve. Defense costs are recognized in the unaudited Condensed Consolidated Statement of Income as incurred. There was no change in trends or other activity during the quarter that required an interim remeasurement of the cumulative trauma product liability reserve as of March 31, 2020 . At March 31, 2020 , $17.6 million of the total reserve for cumulative trauma product liability claims is recorded in the Insurance and product liability line within other current liabilities in the unaudited Condensed Consolidated Balance Sheet and the remainder, $149.7 million , is recorded in the Product liability and other noncurrent liabilities line. At December 31, 2019 , $17.4 million of the total reserve for cumulative trauma product liability claims is recorded in the Insurance and product liability line within other current liabilities in the unaudited Condensed Consolidated Balance Sheet and the remainder, $150.1 million , is recorded in the Product liability and other noncurrent liabilities line. Total cumulative trauma liability losses were $2.1 million for the three months ended March 31, 2020 , and $3.3 million for the three months ended March 31, 2019 , both primarily related to the defense of cumulative trauma product liability claims. Uninsured cumulative trauma product liability losses, which were included in Product liability expense on the unaudited Condensed Consolidated Statement of Income, were $1.8 million and $2.8 million for the three months ended March 31, 2020 and March 31, 2019 , respectively, and represent the total cumulative trauma liability losses net of any estimated insurance receivables as discussed below. To develop a reasonable estimate of MSA LLC’s potential exposure to cumulative trauma product liability claims, Management performs an annual review of MSA LLC’s cumulative trauma product liability claims, in consultation with an outside valuation consultant and outside legal counsel. The review process takes into account developments in MSA LLC’s claims experience over the past year, developments in the tort system generally, and any other relevant information. Quarterly, management and outside legal counsel review whether significant new developments have occurred which could materially impact recorded amounts. Certain significant assumptions underlying the material components of the reserve for cumulative trauma product liability claims have been made based on MSA LLC's experience related to the following: • The types and severity, of illnesses alleged by claimants to give rise to their claims; • The venues in which claims are asserted; • The number of claims asserted against MSA LLC and the counsel asserting those claims; and • The percentage of claims resolved through settlement and the values of settlements paid to claimants. Additional assumptions include the following: • MSA LLC will continue to evaluate and handle cumulative trauma product liability claims in accordance with its existing defense strategy; • The number and effect of co-defendant bankruptcies will not materially change in the future; • No material changes in medical science occur with respect to cumulative trauma product liability claims; and • No material changes in law occur with respect to cumulative trauma product liability claims including no material state or federal tort reform actions. Cumulative trauma product liability litigation is inherently unpredictable and MSA LLC's expense with respect to cumulative trauma product liability claims could vary significantly in future periods. With respect to asserted claims, this is because it is unclear at the time of filing whether a claim will be actively litigated. Even when a case is actively litigated, it is often difficult to determine if the lawsuit will be dismissed without payment or settled, because of sufficiency of product identification, statute of limitations challenges, or other defenses. As a result, it is typically unclear until late into a lawsuit whether any particular claim will result in a loss and, if so, to what extent. Actual loss amounts for settled claims are highly variable and turn on a case-by-case analysis of the relevant facts. With respect to asserted or IBNR cumulative trauma product liability claims, MSA LLC’s expense in future periods may vary from the reserve currently established for several reasons. In particular, MSA LLC’s actual claims experience may differ in one or more respects from the significant assumptions listed above that were used by in establishing the reserve. Other factors that make MSA LLC's asserted and IBNR claims difficult to reasonably estimate include low volumes in the number of claims asserted and resolved (both in general and with respect to particular plaintiffs' counsel, as claims experience can vary significantly among different counsel), inconsistency of claims composition, uncertainty as to if and over what time periods claims might be asserted in the future, and other factors. Numerous uncertainties also exist with respect to factors not specific to MSA LLC, including potential legislative or judicial changes at the federal level or in key states concerning claims adjudication, future bankruptcy proceedings involving key co-defendants, payments from trusts established to compensate claimants, and/or changes in medical science relating to the diagnosis and treatment of claims. Because cumulative trauma product liability litigation is subject to the significant modeling assumptions and inherent uncertainties described above, and unfavorable rulings or developments could occur, there can be no certainty that MSA LLC may not ultimately incur charges in excess of presently recorded liabilities. The reserve for cumulative trauma product liability claims may be adjusted from time to time based on changes to the factors and assumptions described above. If future estimates of cumulative trauma product liability claims are materially different than the accrued liability, we will record an appropriate adjustment to the unaudited Condensed Consolidated Statement of Income. These adjustments could materially impact our consolidated financial statements in future periods. Insurance Receivable and Notes Receivable, Insurance Companies Many years ago, MSA LLC purchased insurance policies from various insurance carriers that, subject to common contract exclusions, provided coverage for cumulative trauma product liability losses (the "Occurrence-Based Policies"). While we continue to pursue reimbursement under certain remaining Occurrence-Based Policies, the vast majority of these policies have been exhausted, settled or converted into either (1) negotiated Coverage-in-Place Agreements, or (2) negotiated settlement agreements, with scheduled payment streams. As a result, MSA LLC is largely self-insured for cumulative trauma product liability claims, and additional amounts recorded as insurance receivables or notes receivables will be limited. When adjustments are made to amounts recorded in the cumulative trauma product liability reserve, we calculate amounts due to be reimbursed pursuant to the terms of the negotiated Coverage-In-Place Agreements, including cumulative trauma product liability losses and related defense costs, and we record the reimbursable amounts as insurance receivables. Insurance receivables at March 31, 2020 , totaled $61.2 million , of which, $7.6 million is reported in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheet and $53.6 million is reported in Insurance receivable and other noncurrent assets. Insurance receivables at December 31, 2019 , totaled $63.8 million , of which $7.6 million was reported in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheet and $56.2 million was reported in Insurance receivable and other noncurrent assets. The vast majority of the $61.2 million insurance receivable balance at March 31, 2020 is attributable to reimbursement believed to be due under the terms of signed Coverage-In-Place Agreements and a portion of the amount represents the estimated recovery of IBNR amounts not yet incurred. A summary of insurance receivables balance and activity related to cumulative trauma product liability losses is as follows: (In millions) Three Months Ended March 31, 2020 Year Ended December 31, 2019 Balance beginning of period $ 63.8 $ 71.7 Additions 0.4 9.1 Collections and other adjustments (3.0 ) (17.0 ) Balance end of period $ 61.2 $ 63.8 In other cases, we have recorded formal notes receivables due from scheduled payment streams according to negotiated settlement agreements. Notes receivable from insurance companies at March 31, 2020 , totaled $56.4 million , of which $3.7 million is reported in Notes receivable, insurance companies, current on the unaudited Condensed Consolidated Balance Sheet and $52.7 million is reported in Notes receivable, insurance companies, noncurrent. Notes receivable from insurance companies at December 31, 2019 , totaled $56.0 million , of which $3.7 million was reported in Notes receivable, insurance companies, current on the unaudited Condensed Consolidated Balance Sheet and $52.3 million was reported in Notes receivable, insurance companies, noncurrent. A summary of notes receivables from insurance companies balance is as follows: (In millions) Three Months Ended March 31, 2020 Year Ended December 31, 2019 Balance beginning of period $ 56.0 $ 59.6 Additions 0.4 1.5 Collections — (5.1 ) Balance end of period $ 56.4 $ 56.0 The collectibility of MSA LLC's insurance receivables and notes receivables is regularly evaluated and we believe that the amounts recorded are probable of collection. The determination that the recorded insurance receivables are probable of collection is based on the terms of the settlement agreements reached with the insurers, our history of collection, and the advice of MSA LLC's outside legal counsel. Various factors could affect the timing and amount of recovery of the insurance and notes receivables, including assumptions regarding various aspects of the composition and characteristics of future claims (which are relevant to calculating reimbursement under the terms of certain Coverage-In-Place Agreements) and the extent to which the issuing insurers may become insolvent in the future. Product Warranty The Company provides warranties on certain product sales. Product warranty reserves are established in the same period that revenue from the sale of the related products is recognized, or in the period that a specific issue arises as to the functionality of the Company's product. The determination of such reserves requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The amounts of the reserves are based on established terms and the Company's best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. If actual return rates and/or repair and replacement costs differ significantly from estimates, adjustments to recognize additional cost of sales may be required in future periods. The following table reconciles the changes in the Company's accrued warranty reserve: (In thousands) Three Months Ended March 31, 2020 Year Ended December 31, 2019 Beginning warranty reserve $ 12,715 $ 14,214 Warranty payments (3,001 ) (12,664 ) Warranty claims 3,043 12,033 Provision for product warranties and other adjustments (163 ) (868 ) Ending warranty reserve $ 12,594 $ 12,715 Warranty expense was $2.9 million and $2.7 million for the three months ended March 31, 2020 and 2019 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of Sierra Monitor Corporation On May 20, 2019, we acquired 100% of the common stock in Sierra Monitor Corporation ("SMC") in an all-cash transaction valued at $33.2 million , net of cash acquired. Additionally, we converted outstanding stock options and restricted stock units into MSA stock options and restricted stock units which resulted in additional goodwill of approximately $0.9 million based on the fair value of the awards identified as transaction consideration. Based in Milpitas, California, in the heart of Silicon Valley, SMC is a leading provider of fixed gas and flame detection instruments and Industrial Internet of Things solutions that connect and help protect high-value infrastructure assets. The acquisition enables MSA to accelerate its strategy to enhance worker safety and accountability through the use of cloud technology and wireless connectivity. This acquisition enhances a key focus of the Company's recently established Safety io subsidiary, launched in 2018 primarily to leverage the capabilities of its portable gas detection portfolio as it relates to cloud connectivity. The transaction was funded through borrowings on our unsecured senior revolving credit facility. The acquisition qualifies as a business combination and was accounted for using the acquisition method of accounting. We finalized the purchase price allocation as of December 31, 2019. The following table summarizes the fair values of the SMC assets acquired and liabilities assumed at the date of acquisition: (In millions) May 20, 2019 Current assets (including cash of $2.1 million) $ 10.5 Property, plant and equipment and other noncurrent assets 1.3 Customer relationships 9.6 Acquired technology 1.4 Goodwill 19.9 Total assets acquired 42.7 Total liabilities assumed 6.5 Net assets acquired $ 36.2 Assets acquired and liabilities assumed in connection with the acquisition have been recorded at their fair values. Fair values were determined by management, based, in part on an independent valuation performed by a third-party valuation specialist. The valuation methods used to determine the fair value of intangible assets included the relief from royalty method for technology related intangible assets; the excess earnings approach for customer relationships using customer inputs and contributory charges; and the cost method for assembled workforce which is included in goodwill. A number of significant assumptions and estimates were involved in the application of these valuation methods, including sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, and working capital changes. Cash flow forecasts were generally based on SMC pre-acquisition forecasts coupled with estimated MSA sales synergies. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer relationships acquired in the SMC transaction will be amortized over a period of 10 years and the technology will be amortized over 5 years . Estimated future amortization expense related to the identifiable intangible assets is approximately $0.9 million for the remainder of 2020, $1.2 million in each of the next three years, $1.1 million in 2024 and $4.2 million thereafter. The step up to fair value of acquired inventory as part of the purchase price allocation totaled $1.6 million which was fully recognized as amortization expense during the year ended December 31, 2019. Goodwill is calculated as the excess of the purchase price over the fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of SMC with our operations. Goodwill of $19.9 million related to the SMC acquisition has been recorded in the Americas reportable segment and is non-deductible for tax purposes. Our results for the three months ended March 31, 2020 , include strategic transaction costs of approximately $0.1 million compared to $0.5 million for the for the three months ended March 31, 2019 . These costs are reported in selling, general and administrative expenses. The operating results of the SMC acquisition have been included in our consolidated financial statements from the acquisition date as part of the Americas reportable segment. Our results for the three months ended March 31, 2020 , include SMC sales and net income of $5.7 million and $0.5 million , respectively. Excluding purchase accounting amortization for intangible assets and transaction costs of $0.4 million , adjusted earnings for SMC for the three months ended March 31, 2020 , was $0.9 million . The following unaudited pro forma information presents our combined results as if the SMC acquisition had occurred on January 1, 2019. The unaudited pro forma financial information was prepared to give effect to events that are (1) directly attributable to the acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the combined company’s results. There were no material transactions between MSA and SMC during the period presented that are required to be eliminated. Intercompany transactions between SMC companies during the periods presented have been eliminated in the unaudited pro forma combined financial information. The unaudited pro forma financial information does not reflect any cost savings, operating synergies or revenue enhancements that the combined companies may achieve as a result of the acquisitions or the costs to integrate the operations or the costs necessary to achieve cost savings, operating synergies or revenue enhancements. (In millions, except per share amounts) Three months ended March 31, 2019 Net sales $ 331.6 Net income 23.2 Basic earnings per share 0.60 Diluted earnings per share 0.59 The unaudited pro forma combined financial information is presented for information purposes only and is not intended to represent or be indicative of the combined results of operations or financial position that we would have reported had the acquisitions been completed as of the date and for the periods presented, and should not be taken as representative of our consolidated results of operations or financial condition following the acquisitions. In addition, the unaudited pro forma combined financial information is not intended to project the future financial position or results of operations of the combined company. The unaudited pro forma financial information was prepared using the acquisition method of accounting under existing U.S. GAAP. MSA has been treated as the acquirer. |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Standards - (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. This ASU introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments, including loans, held-to-maturity debt securities, loan commitments, financial guarantees and net investments in leases, as well as reinsurance and trade receivables. This ASU was adopted on January 1, 2020, which did not have an impact on the unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which improves fair value disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. The Company adopted this ASU on January 1, 2020. Based the Company's portfolio of financial instruments and the limited amount of Level 3 investments, the adoption of this ASU did not have a material impact on the unaudited condensed consolidated financial statements but does expect changes to our annual disclosures. In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which improves defined benefit disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The amendments in this ASU are required to be applied on a retrospective basis to all periods presented. The Company is still evaluating the impact that the adoption of ASU 2018-14 will have on the unaudited condensed consolidated financial statements but does expect changes to our disclosures. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following table sets forth the components of inventory: (In thousands) March 31, 2020 December 31, 2019 Finished products $ 74,180 $ 71,918 Work in process 8,072 4,083 Raw materials and supplies 155,587 151,129 Inventories at current cost 237,839 227,130 Less: LIFO valuation (42,192 ) (42,103 ) Total inventories $ 195,647 $ 185,027 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity and Reserve Balance for Restructuring Charges by Segment | Activity and reserve balances for restructuring charges by segment were as follows: (In millions) Americas International Corporate Total Reserve balances at December 31, 2018 $ 0.5 $ 4.0 $ — $ 4.5 Restructuring charges 0.5 12.7 0.6 13.8 Currency translation and other adjustments (0.1 ) (0.6 ) — (0.7 ) Cash payments / utilization (0.6 ) (10.2 ) (0.6 ) (11.4 ) Reserve balances at December 31, 2019 $ 0.3 $ 5.9 $ — $ 6.2 Restructuring charges 0.1 1.9 — 2.0 Currency translation and other adjustments — (0.1 ) — (0.1 ) Cash payments / utilization (0.1 ) (1.8 ) — (1.9 ) Reserve balances at March 31, 2020 $ 0.3 $ 5.9 $ — $ 6.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | The following table sets forth the components of property, plant and equipment, net: (In thousands) March 31, 2020 December 31, 2019 Land $ 4,107 $ 4,194 Buildings 124,221 125,223 Machinery and equipment 395,784 397,287 Construction in progress 24,588 24,759 Total 548,700 551,463 Less: accumulated depreciation (385,559 ) (384,425 ) Property, plant and equipment, net $ 163,141 $ 167,038 |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Reclassification Out of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss were as follows: MSA Safety Incorporated Noncontrolling Interests Three Months Ended March 31, Three Months Ended March 31, (In thousands) 2020 2019 2020 2019 Pension and other post-retirement benefits (a) Balance at beginning of period $ (124,848 ) $ (115,517 ) $ — $ — Amounts reclassified from accumulated other comprehensive loss into net income: Amortization of prior service credit (Note 14) (52 ) (105 ) — — Recognized net actuarial losses (Note 14) 4,221 2,794 — — Tax benefit (1,067 ) (666 ) — — Total amount reclassified from accumulated other comprehensive loss, net of tax, into net income 3,102 2,023 — — Reclassification to retained earnings due to adoption of ASU 2018-02 $ — $ (3,772 ) Balance at end of period $ (121,746 ) $ (117,266 ) $ — $ — Available-for-sale securities Balance at beginning of period 6 (572 ) — Unrealized (loss) gain on available-for-sale securities (Note 16) (62 ) 536 — Balance at end of period $ (56 ) $ (36 ) $ — $ — Foreign Currency Translation Balance at beginning of period (89,161 ) (102,838 ) 423 496 Reclassification from accumulated other comprehensive loss into net income 720 (b) 15,359 (c) — — Foreign currency translation adjustments (22,832 ) 218 (115 ) 143 Balance at end of period $ (111,273 ) $ (87,261 ) $ 308 $ 639 (a) Reclassifications out of accumulated other comprehensive loss and into net income are included in the computation of net periodic pension and other post-retirement benefit costs (refer to Note 14—Pensions and Other Post-retirement Benefits). (b) Reclassifications into net income relate primarily to the approval of our plan to close several subsidiaries in our Europe, Middle East & Africa ("EMEA") region and are included in Currency exchange losses, net, within the unaudited Condensed Consolidated Statement of Income. (c) |
Capital Stock - (Tables)
Capital Stock - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Capital Stock Disclosure | Common stock activity is summarized as follows: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (In thousands) Common Treasury Common Treasury Balance at beginning of period $ 229,127 $ (303,566 ) $ 211,806 $ (296,390 ) Stock compensation expense 3,522 — 2,745 — Restricted and performance stock awards (2,239 ) 2,239 (2,411 ) 2,411 Stock options exercised 1,757 976 959 506 Treasury shares purchased — (7,617 ) — (7,446 ) Share repurchase program — (20,113 ) — — Balance at end of period $ 232,167 $ (328,081 ) $ 213,099 $ (300,919 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Information | Reportable segment information is presented in the following table: (In thousands, except percentage amounts) Americas International Corporate Consolidated Three Months Ended March 31, 2020 Sales to external customers $ 231,253 $ 109,892 $ — $ 341,145 Operating income 58,782 Restructuring charges (Note 4) 2,007 Currency exchange losses, net (Note 6) 270 Product liability expense (Note 17) 1,951 Strategic transaction costs (Note 18) 97 COVID-19 related costs 757 Adjusted operating income (loss) 59,807 12,671 (8,614 ) 63,864 Adjusted operating margin % 25.9 % 11.5 % Depreciation and amortization 9,640 Adjusted EBITDA 66,257 15,765 (8,518 ) 73,504 Adjusted EBITDA % 28.7 % 14.3 % (In thousands, except percentage amounts) Americas International Corporate Consolidated Three Months Ended March 31, 2019 Sales to external customers $ 213,687 $ 112,351 $ — $ 326,038 Operating income 32,160 Restructuring charges (Note 4) 5,831 Currency exchange losses, net (Note 6) 16,961 Product liability expense (Note 17) 2,896 Strategic transaction costs (Note 18) 456 Adjusted operating income (loss) 54,803 11,040 (7,539 ) 58,304 Adjusted operating margin % 25.6 % 9.8 % Depreciation and amortization 9,326 Adjusted EBITDA 60,900 14,171 (7,441 ) 67,630 Adjusted EBITDA % 28.5 % 12.6 % |
Percentage of Total Sales by Product Group | Total sales by product group was as follows: Three Months Ended March 31, 2020 Consolidated Americas International (In thousands, except percentages) Dollars Percent Dollars Percent Dollars Percent Breathing Apparatus 75,844 22% 52,693 23% $ 23,151 21% Fixed Gas & Flame Detection 69,911 21% 41,247 18% 28,664 26% Firefighter Helmets & Protective Apparel 42,547 12% 35,113 15% 7,434 7% Portable Gas Detection 41,052 12% 27,648 12% 13,404 12% Industrial Head Protection 35,332 10% 27,555 12% 7,777 7% Fall Protection 27,428 8% 17,697 8% 9,731 9% Other* 49,031 15% 29,300 12% 19,731 18% Total $ 341,145 100% $ 231,253 100% $ 109,892 100% Three Months Ended March 31, 2019 Consolidated Americas International (In thousands, except percentages) Dollars Percent Dollars Percent Dollars Percent Breathing Apparatus $ 75,446 23% $ 50,904 24% $ 24,542 22% Fixed Gas & Flame Detection 60,398 19% 32,930 15% 27,468 24% Firefighter Helmets & Protective Apparel 43,577 13% 35,064 16% 8,513 8% Portable Gas Detection 40,726 13% 26,991 13% 13,735 12% Industrial Head Protection 35,744 11% 27,836 13% 7,908 7% Fall Protection 30,128 9% 17,961 8% 12,167 11% Other* 40,019 12% 22,001 11% 18,018 16% Total $ 326,038 100% $ 213,687 100% $ 112,351 100% * Other products include sales of Air Purifying Respirators. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Amounts attributable to MSA Safety Incorporated common shareholders: Three Months Ended March 31, (In thousands, except per share amounts) 2020 2019 Net income $ 43,674 $ 23,232 Preferred stock dividends (10 ) (10 ) Net income available to common equity 43,664 23,222 Dividends and undistributed earnings allocated to participating securities (33 ) (22 ) Net income available to common shareholders 43,631 23,200 Basic weighted-average shares outstanding 38,824 38,536 Stock options and other stock compensation 528 548 Diluted weighted-average shares outstanding 39,352 39,084 Antidilutive stock options — — Earnings per share: Basic $ 1.12 $ 0.60 Diluted $ 1.11 $ 0.59 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Compensation Expense | Stock compensation expense is as follows: Three Months Ended March 31, (In thousands) 2020 2019 Stock compensation expense $ 3,522 $ 2,745 Income tax benefit 859 670 Stock compensation expense, net of income tax benefit $ 2,663 $ 2,075 |
Schedule of Fair Value Assumptions for Units | The following weighted average assumptions were used in estimating the fair value of the performance stock units granted in the first quarter of 2020 . Fair value per unit $127.36 Risk-free interest rate 1.16% Expected dividend yield 1.48% Expected volatility 24.8% MSA stock beta 0.988 |
Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2020 , follows: Shares Weighted Average Exercise Price Outstanding at January 1, 2020 559,656 $ 45.78 Exercised (72,937 ) 37.47 Forfeited (952 ) 41.98 Outstanding at March 31, 2020 485,767 47.03 Exercisable at March 31, 2020 481,388 $ 47.03 |
Summary of Restricted Stock and Unit Activity | A summary of restricted stock activity for the three months ended March 31, 2020 , follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2020 172,701 $ 90.38 Granted 35,937 124.99 Vested (30,849 ) 73.24 Forfeited (1,654 ) 97.22 Unvested at March 31, 2020 176,135 $ 100.38 |
Summary of Performance Stock Unit Activity | A summary of performance stock unit activity for the three months ended March 31, 2020 follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2020 238,035 $ 85.39 Granted 64,791 127.36 Performance adjustments 33,499 72.36 Vested (132,036 ) 73.00 Forfeited (448 ) 72.28 Unvested at March 31, 2020 203,841 $ 104.65 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | (In thousands) March 31, 2020 December 31, 2019 2010 Senior Notes payable through 2021, 4.00%, net of debt issuance costs $ 40,000 $ 40,000 2016 Senior Notes payable through 2031, 3.40%, net of debt issuance costs 68,160 72,708 Senior revolving credit facility maturing in 2023, net of debt issuance costs 263,432 235,686 Total 371,592 348,394 Amounts due within one year, net of debt issuance costs 20,000 20,000 Long-term debt, net of debt issuance costs $ 351,592 $ 328,394 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill during the three months ended March 31, 2020 are as follows: (In thousands) Goodwill Balance at January 1, 2020 $ 436,679 Currency translation (6,565 ) Balance at March 31, 2020 $ 430,114 |
Changes in Intangible Assets, Net of Accumulated Amortization | Changes in intangible assets, net during the three months ended March 31, 2020 , are as follows: (In thousands) Intangible Assets Net balance at January 1, 2020 $ 171,326 Amortization expense (2,886 ) Currency translation (2,621 ) Net balance at March 31, 2020 $ 165,819 |
Pensions and Other Post-retir_2
Pensions and Other Post-retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost consisted of the following: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Three Months Ended March 31, Service cost $ 3,012 $ 2,423 $ 99 $ 89 Interest cost 3,726 4,705 179 249 Expected return on plan assets (8,503 ) (9,653 ) — — Amortization of prior service cost (credit) 46 (4 ) (98 ) (101 ) Recognized net actuarial losses 3,935 2,577 286 217 Net periodic benefit cost (a) $ 2,216 $ 48 $ 466 $ 454 (a) Components of net periodic benefit cost other than service cost are included in the line item "Other income, net" in the unaudited Condensed Consolidated Statement of Income. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance Sheet Location and Fair Value of Assets Associated with Derivative Financial Instruments | The following table presents the unaudited Condensed Consolidated Balance Sheet location and fair value of assets and liabilities associated with derivative financial instruments: (In thousands) March 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts: Warranty reserve and other current liabilities $ 261 $ 125 Foreign exchange contracts: Prepaid expenses and other current assets 2,056 687 |
Income Statement Location and Impact of Derivative Financial Instruments | The following table presents the unaudited Condensed Consolidated Statement of Income location and impact of derivative financial instruments: Loss Recognized in Income Three Months Ended March 31, (In thousands) Statement of Income Location 2020 2019 Derivatives not designated as hedging instruments: Foreign exchange contracts Currency exchange losses, net $ 376 $ 1,262 |
Contingencies (Tables)
Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Cumulative Trauma Product Liability Claims Activity | A summary of cumulative trauma product liability lawsuits and asserted cumulative trauma product liability claims activity is as follows: Three Months Ended March 31, 2020 Year Ended December 31, 2019 Open lawsuits, beginning of period 1,605 1,481 New lawsuits 113 346 Settled and dismissed lawsuits (60 ) (222 ) Open lawsuits, end of period 1,658 1,605 Three Months Ended March 31, 2020 Year Ended December 31, 2019 Asserted claims, beginning of period 2,456 2,355 New claims 124 486 Settled and dismissed claims (60 ) (385 ) Asserted claims, end of period 2,520 2,456 |
Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses | A summary of insurance receivables balance and activity related to cumulative trauma product liability losses is as follows: (In millions) Three Months Ended March 31, 2020 Year Ended December 31, 2019 Balance beginning of period $ 63.8 $ 71.7 Additions 0.4 9.1 Collections and other adjustments (3.0 ) (17.0 ) Balance end of period $ 61.2 $ 63.8 |
Schedule of Notes Receivable Balances from Insurance Companies | A summary of notes receivables from insurance companies balance is as follows: (In millions) Three Months Ended March 31, 2020 Year Ended December 31, 2019 Balance beginning of period $ 56.0 $ 59.6 Additions 0.4 1.5 Collections — (5.1 ) Balance end of period $ 56.4 $ 56.0 |
Schedule of Product Warranty Liability | The following table reconciles the changes in the Company's accrued warranty reserve: (In thousands) Three Months Ended March 31, 2020 Year Ended December 31, 2019 Beginning warranty reserve $ 12,715 $ 14,214 Warranty payments (3,001 ) (12,664 ) Warranty claims 3,043 12,033 Provision for product warranties and other adjustments (163 ) (868 ) Ending warranty reserve $ 12,594 $ 12,715 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the SMC assets acquired and liabilities assumed at the date of acquisition: (In millions) May 20, 2019 Current assets (including cash of $2.1 million) $ 10.5 Property, plant and equipment and other noncurrent assets 1.3 Customer relationships 9.6 Acquired technology 1.4 Goodwill 19.9 Total assets acquired 42.7 Total liabilities assumed 6.5 Net assets acquired $ 36.2 |
Schedule of Pro Forma Financial Information | The following unaudited pro forma information presents our combined results as if the SMC acquisition had occurred on January 1, 2019. The unaudited pro forma financial information was prepared to give effect to events that are (1) directly attributable to the acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the combined company’s results. There were no material transactions between MSA and SMC during the period presented that are required to be eliminated. Intercompany transactions between SMC companies during the periods presented have been eliminated in the unaudited pro forma combined financial information. The unaudited pro forma financial information does not reflect any cost savings, operating synergies or revenue enhancements that the combined companies may achieve as a result of the acquisitions or the costs to integrate the operations or the costs necessary to achieve cost savings, operating synergies or revenue enhancements. (In millions, except per share amounts) Three months ended March 31, 2019 Net sales $ 331.6 Net income 23.2 Basic earnings per share 0.60 Diluted earnings per share 0.59 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 74,180 | $ 71,918 |
Work in process | 8,072 | 4,083 |
Raw materials and supplies | 155,587 | 151,129 |
Inventories at current cost | 237,839 | 227,130 |
Less: LIFO valuation | (42,192) | (42,103) |
Total inventories | $ 195,647 | $ 185,027 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 2,007 | $ 5,831 |
International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1,900 | 5,700 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 100 |
Restructuring Charges - Activit
Restructuring Charges - Activity and Reserve Balance for Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 6.2 | $ 4.5 |
Restructuring charges | 2 | 13.8 |
Currency translation and other adjustments | (0.1) | (0.7) |
Cash payments / utilization | (1.9) | (11.4) |
Restructuring reserve, ending balance | 6.2 | 6.2 |
Americas | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0.3 | 0.5 |
Restructuring charges | 0.1 | 0.5 |
Currency translation and other adjustments | 0 | (0.1) |
Cash payments / utilization | (0.1) | (0.6) |
Restructuring reserve, ending balance | 0.3 | 0.3 |
International | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 5.9 | 4 |
Restructuring charges | 1.9 | 12.7 |
Currency translation and other adjustments | (0.1) | (0.6) |
Cash payments / utilization | (1.8) | (10.2) |
Restructuring reserve, ending balance | 5.9 | 5.9 |
Corporate | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0 | 0 |
Restructuring charges | 0 | 0.6 |
Currency translation and other adjustments | 0 | 0 |
Cash payments / utilization | 0 | (0.6) |
Restructuring reserve, ending balance | $ 0 | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 548,700 | $ 551,463 |
Less: accumulated depreciation | (385,559) | (384,425) |
Property, plant and equipment, net | 163,141 | 167,038 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,107 | 4,194 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 124,221 | 125,223 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 395,784 | 397,287 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 24,588 | $ 24,759 |
Reclassifications Out of Accu_3
Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 732,573 | |||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 720 | $ 15,359 | ||
Reclassification due to the adoption of ASU 2018-02 | $ 0 | $ (3,772) | ||
Other comprehensive income (loss) | (19,187) | 18,279 | ||
Balance at end of period | 719,382 | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (124,848) | (115,517) | ||
Tax benefit | (1,067) | (666) | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 3,102 | 2,023 | ||
Balance at end of period | (121,746) | (117,266) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 0 | 0 | ||
Tax benefit | 0 | 0 | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Balance at end of period | 0 | 0 | ||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from Accumulated other comprehensive loss | (52) | (105) | ||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from Accumulated other comprehensive loss | 0 | 0 | ||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from Accumulated other comprehensive loss | 4,221 | 2,794 | ||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from Accumulated other comprehensive loss | 0 | 0 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 6 | (572) | ||
Other comprehensive income (loss) | (62) | 536 | ||
Balance at end of period | (56) | (36) | ||
Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Other comprehensive income (loss) | 0 | |||
Balance at end of period | 0 | 0 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (89,161) | (102,838) | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 720 | 15,359 | ||
Other comprehensive income (loss) | (22,832) | 218 | ||
Balance at end of period | (111,273) | (87,261) | ||
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 423 | 496 | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Other comprehensive income (loss) | (115) | 143 | ||
Balance at end of period | $ 308 | $ 639 |
Capital Stock - Narrative (Det
Capital Stock - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Capital Unit [Line Items] | |||
Treasury stock, shares (shares) | 23,235,797 | 23,240,197 | |
Treasury shares, at cost | $ 329,674,000 | $ 305,159,000 | |
Common stock, shares authorized (shares) | 180,000,000 | ||
Common stock, par value (dollars per share) | $ 0 | $ 0 | |
Common stock, shares, outstanding (shares) | 38,845,594 | 38,841,194 | |
Cumulative Preferred Stock | |||
Capital Unit [Line Items] | |||
Preferred stock, shares authorized (shares) | 100,000 | ||
Preferred stock, par value (dollars per share) | $ 50 | ||
Percentage of cumulative preferred stock (percent) | 4.50% | ||
Preferred stock, callable price per share (dollars per share) | $ 52.50 | ||
Preferred stock, shares issued (shares) | 71,340 | ||
Treasury stock, shares (shares) | 52,998 | ||
Purchase of treasury shares (shares) | 120 | 0 | |
Second Cumulative Preferred Voting Stock | |||
Capital Unit [Line Items] | |||
Preferred stock, shares authorized (shares) | 1,000,000 | ||
Preferred stock, par value (dollars per share) | $ 10 | ||
Preferred stock, shares issued (shares) | 0 | ||
Common Stock | |||
Capital Unit [Line Items] | |||
Purchase of treasury shares (shares) | 175,000 | 0 | |
Common stock, shares issued (shares) | 62,081,391 | ||
Stock issued during period, new issues (shares) | 0 | 0 | |
Common stock, value, issued (up to) | $ 100,000,000 | ||
Treasury stock | |||
Capital Unit [Line Items] | |||
Reissued shares (shares) | 58,840 | 230,112 | |
Preferred Stock | |||
Capital Unit [Line Items] | |||
Preferred stock, par value (dollars per share) | $ 50 | $ 50 | |
Percentage of cumulative preferred stock (percent) | 4.50% | 4.50% | |
Treasury shares, at cost | $ 1,800,000 |
Capital Stock - Schedule of Com
Capital Stock - Schedule of Common Stock Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Common Stock Activity [Roll Forward] | ||
Beginning balance | $ 229,127 | |
Ending balance | 232,167 | |
Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Beginning balance | 229,127 | $ 211,806 |
Stock compensation expense | 3,522 | 2,745 |
Ending balance | 232,167 | 213,099 |
Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Beginning balance | 303,566 | 296,390 |
Stock compensation expense | 0 | 0 |
Ending balance | 328,081 | 300,919 |
Restricted and performance stock awards | Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Restricted and performance stock awards | 2,239 | 2,411 |
Restricted and performance stock awards | Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Restricted and performance stock awards | 2,239 | 2,411 |
Stock options exercised | Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Stock compensation expense | 1,757 | 959 |
Stock options exercised | Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Stock compensation expense | 976 | 506 |
Treasury shares purchased | Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Treasury shares purchased | 0 | 0 |
Treasury shares purchased | Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Treasury shares purchased | (7,617) | (7,446) |
Share repurchase program | Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Treasury shares purchased | 0 | 0 |
Share repurchase program | Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Treasury shares purchased | $ (20,113) | $ 0 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 341,145 | $ 326,038 |
Operating income | 58,782 | 32,160 |
Restructuring charges | 2,007 | 5,831 |
Currency exchange gains (losses), net | 270 | 16,961 |
Product liability expense | 1,951 | 2,896 |
Strategic transaction costs | 97 | 456 |
COVID-19 Related Costs | 757 | |
Adjusted operating income (loss) | 63,864 | 58,304 |
Depreciation and amortization | 9,640 | 9,326 |
Adjusted EBITDA | 73,504 | 67,630 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Revenues | 231,253 | 213,687 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | 100 | |
Reportable Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Revenues | 231,253 | 213,687 |
Adjusted operating income (loss) | $ 59,807 | $ 54,803 |
Adjusted operating margin, percentage | 25.90% | 25.60% |
Adjusted EBITDA | $ 66,257 | $ 60,900 |
Adjusted EBITDA, percentage | 28.70% | 28.50% |
Reportable Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 109,892 | $ 112,351 |
Adjusted operating income (loss) | $ 12,671 | $ 11,040 |
Adjusted operating margin, percentage | 11.50% | 9.80% |
Adjusted EBITDA | $ 15,765 | $ 14,171 |
Adjusted EBITDA, percentage | 14.30% | 12.60% |
Reportable Segments | Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 0 | $ 0 |
Adjusted operating income (loss) | (8,614) | (7,539) |
Adjusted EBITDA | $ (8,518) | $ (7,441) |
Segment Information - Percentag
Segment Information - Percentage of Total Sales by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from External Customer [Line Items] | ||
Revenues | $ 341,145 | $ 326,038 |
Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Revenues | 75,844 | 75,446 |
Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 69,911 | 60,398 |
Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Revenues | 42,547 | 43,577 |
Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 41,052 | 40,726 |
Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 35,332 | 35,744 |
Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 27,428 | 30,128 |
Other | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 49,031 | $ 40,019 |
Sales | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Sales | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 22.00% | 23.00% |
Sales | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 21.00% | 19.00% |
Sales | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 13.00% |
Sales | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 13.00% |
Sales | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 10.00% | 11.00% |
Sales | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 8.00% | 9.00% |
Sales | Other | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 15.00% | 12.00% |
Americas | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 231,253 | $ 213,687 |
Americas | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Revenues | 52,693 | 50,904 |
Americas | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 41,247 | 32,930 |
Americas | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Revenues | 35,113 | 35,064 |
Americas | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 27,648 | 26,991 |
Americas | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 27,555 | 27,836 |
Americas | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 17,697 | 17,961 |
Americas | Other | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 29,300 | $ 22,001 |
Americas | Sales | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Americas | Sales | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 23.00% | 24.00% |
Americas | Sales | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 18.00% | 15.00% |
Americas | Sales | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 15.00% | 16.00% |
Americas | Sales | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 13.00% |
Americas | Sales | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 13.00% |
Americas | Sales | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 8.00% | 8.00% |
Americas | Sales | Other | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 11.00% |
International | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 109,892 | $ 112,351 |
International | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Revenues | 23,151 | 24,542 |
International | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 28,664 | 27,468 |
International | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Revenues | 7,434 | 8,513 |
International | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 13,404 | 13,735 |
International | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 7,777 | 7,908 |
International | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 9,731 | 12,167 |
International | Other | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 19,731 | $ 18,018 |
International | Sales | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
International | Sales | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 21.00% | 22.00% |
International | Sales | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 26.00% | 24.00% |
International | Sales | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 7.00% | 8.00% |
International | Sales | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 12.00% |
International | Sales | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 7.00% | 7.00% |
International | Sales | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 9.00% | 11.00% |
International | Sales | Other | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 18.00% | 16.00% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 43,674 | $ 23,232 |
Preferred stock dividends | (10) | (10) |
Net income available to common equity | 43,664 | 23,222 |
Dividends and undistributed earnings allocated to participating securities | (33) | (22) |
Net income available to common shareholders | $ 43,631 | $ 23,200 |
Basic weighted-average shares outstanding (shares) | 38,824 | 38,536 |
Stock options and other stock compensation (shares) | 528 | 548 |
Diluted weighted-average shares outstanding (shares) | 39,352 | 39,084 |
Antidilutive stock options (shares) | 0 | 0 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.12 | $ 0.60 |
Diluted (in dollars per share) | $ 1.11 | $ 0.59 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 23.00% | 27.80% | |
Insurance receivable and other noncurrent assets | $ 56,672 | $ 59,614 | |
Accrued interest and penalties related to uncertain tax positions | 700 | ||
Other Noncurrent Liabilities | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | 4,800 | ||
Deferred Tax Asset | |||
Income Tax Contingency [Line Items] | |||
Insurance receivable and other noncurrent assets | $ 1,900 |
Stock Plans - Schedule of Stock
Stock Plans - Schedule of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Stock compensation expense | $ 3,522 | $ 2,745 |
Income tax benefit | 859 | 670 |
Stock compensation expense, net of income tax benefit | $ 2,663 | $ 2,075 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award based on achieving specified performance targets | 135.70% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award based on achieving targeted performance conditions | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award based on achieving targeted performance conditions | 200.00% |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Fair value assumptions, average closing price used to calculate expected dividend rate, period (years) | 1 year |
Stock beta, daily price data period (years) | 10 years |
Stock Plans - Weighted Average
Stock Plans - Weighted Average Risk Assumptions (Details) - Performance Stock Unit | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per option (dollars per share) | $ 127.36 |
Monte Carlo Approach | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per option (dollars per share) | $ 127.36 |
Risk-free interest rate | 1.16% |
Expected dividend yield | 1.48% |
Expected volatility | 24.80% |
MSA stock beta | 0.988 |
Stock Plans - Summary of Stock
Stock Plans - Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 559,656 |
Exercised (in shares) | shares | (72,937) |
Forfeited (in shares) | shares | (952) |
Outstanding, ending balance (in shares) | shares | 485,767 |
Exercisable (in shares) | shares | 481,388 |
Weighted Average Exercise Price (dollars per share) | |
Outstanding, beginning balance (dollars per share) | $ / shares | $ 45.78 |
Exercised (dollars per share) | $ / shares | 37.47 |
Forfeited (dollars per share) | $ / shares | 41.98 |
Outstanding, ending balance (dollars per share) | $ / shares | 47.03 |
Exercisable (dollars per share) | $ / shares | $ 47.03 |
Stock Plans - Summary of Restri
Stock Plans - Summary of Restricted Stock and Unit Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Performance Shares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 238,035 |
Granted (in shares) | shares | 64,791 |
Vested (in shares) | shares | (132,036) |
Forfeited (in shares) | shares | (448) |
Unvested, ending balance (in shares) | shares | 203,841 |
Weighted Average Exercise Price (dollars per share) | |
Unvested, beginning balance (dollars per share) | $ / shares | $ 85.39 |
Granted (dollars per share) | $ / shares | 127.36 |
Vested (dollars per share) | $ / shares | 73 |
Forfeited (dollars per share) | $ / shares | 72.28 |
Unvested, ending Balance (dollars per share) | $ / shares | $ 104.65 |
Restricted Stock Activity | |
Shares | |
Unvested, beginning balance (in shares) | shares | 172,701 |
Granted (in shares) | shares | 35,937 |
Vested (in shares) | shares | (30,849) |
Forfeited (in shares) | shares | (1,654) |
Unvested, ending balance (in shares) | shares | 176,135 |
Weighted Average Exercise Price (dollars per share) | |
Unvested, beginning balance (dollars per share) | $ / shares | $ 90.38 |
Granted (dollars per share) | $ / shares | 124.99 |
Vested (dollars per share) | $ / shares | 73.24 |
Forfeited (dollars per share) | $ / shares | 97.22 |
Unvested, ending Balance (dollars per share) | $ / shares | $ 100.38 |
Stock Plans - Summary of Perfor
Stock Plans - Summary of Performance Stock Unit Activity (Details) - Performance Stock Unit | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 238,035 |
Granted (in shares) | shares | 64,791 |
Performance adjustments (in shares) | shares | 33,499 |
Vested (in shares) | shares | (132,036) |
Unvested, ending balance (in shares) | shares | 203,841 |
Weighted Average Exercise Price (dollars per share) | |
Unvested, beginning balance (dollars per share) | $ / shares | $ 85.39 |
Granted (dollars per share) | $ / shares | 127.36 |
Performance adjustments (dollars per share) | $ / shares | 72.36 |
Vested (dollars per share) | $ / shares | 73 |
Unvested, ending Balance (dollars per share) | $ / shares | $ 104.65 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Senior revolving credit facility maturing in 2023, net of debt issuance costs | $ 263,432 | $ 235,686 |
Total | 371,592 | 348,394 |
Amounts due within one year, net of debt issuance costs | 20,000 | 20,000 |
Long-term debt, net of debt issuance costs | 351,592 | 328,394 |
2010 Senior Notes payable through 2021, 4.00%, net of debt issuance costs | ||
Debt Instrument [Line Items] | ||
Senior notes payable | $ 40,000 | 40,000 |
Debt instrument, stated interest rate percentage | 4.00% | |
2016 Senior Notes payable through 2031, 3.40%, net of debt issuance costs | ||
Debt Instrument [Line Items] | ||
Senior notes payable | $ 68,160 | $ 72,708 |
Debt instrument, stated interest rate percentage | 3.40% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | Jan. 04, 2019USD ($) | Sep. 07, 2018USD ($) | Jan. 22, 2016GBP (£) | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||
Weighted average revolving interest rate, percentage | 1.98% | |||
Line of credit facility, remaining borrowing capacity | $ 333,100,000 | |||
Debt instrument, collateral amount | 400,000 | |||
Multi-currency Notes Due in 2031 | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio (not more than) | 4 | |||
Notes Payable | Multi-currency Notes Due in 2031 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | £ 54,900,000 | 68,300,000 | ||
Annual installment debt payments | £ 6,100,000 | 7,600,000 | ||
Debt instrument, stated interest rate percentage | 3.40% | |||
Debt instrument, term | 3 years | |||
Additional senior notes available for request (up to) | $ 150,000,000 | |||
Minimum fixed charges coverage ratio (not less than) | 1.50 | |||
Maximum consolidated leverage ratio (not to exceed) | 3.50 | |||
Notes Payable | Master Note Facility Due in 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 3 years | |||
Additional senior notes available for request (up to) | $ 150,000,000 | |||
Senior notes payable | 0 | |||
Base Rate | Senior Revolving Credit Facility Maturing in 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin, percentage | 0.00% | |||
Federal Funds Open Rate | Senior Revolving Credit Facility Maturing in 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin, percentage | 0.50% | |||
Overnight Bank Funding Rate | Senior Revolving Credit Facility Maturing in 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin, percentage | 0.50% | |||
London Interbank Offered Rate (LIBOR) | Senior Revolving Credit Facility Maturing in 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin, percentage | 1.00% | |||
Minimum | Senior Revolving Credit Facility Maturing in 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin, percentage | 0.00% | |||
Maximum | Senior Revolving Credit Facility Maturing in 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin, percentage | 175.00% | |||
Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Proceeds from lines of credit | 8,300,000 | |||
Standby Letters of Credit | Senior Revolving Credit Facility Maturing in 2023 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from lines of credit | $ 1,800,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
January 1, 2020 | $ 436,679 |
Currency translation | (6,565) |
March 31, 2020 | $ 430,114 |
Pensions and Other Post-retir_3
Pensions and Other Post-retirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3,012 | $ 2,423 |
Interest cost | 3,726 | 4,705 |
Expected return on plan assets | (8,503) | (9,653) |
Amortization of prior service cost (credit) | 46 | (4) |
Recognized net actuarial losses | 3,935 | 2,577 |
Net periodic benefit cost | 2,216 | 48 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 99 | 89 |
Interest cost | 179 | 249 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | (98) | (101) |
Recognized net actuarial losses | 286 | 217 |
Net periodic benefit cost | $ 466 | $ 454 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 430,114 | $ 436,679 |
Americas | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 293,200 | |
International | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 136,900 | |
Trade name | Globe Holding Company LLC | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 60,000 |
Pensions and Other Post-retir_4
Pensions and Other Post-retirement Benefits - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Pension plans contributions | $ 1.9 | $ 1.8 |
Total estimated pension plans contributions for the fiscal year | $ 7.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Changes in Intangible Assets, Net of Accumulated Amortization (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
January 1, 2020 | $ 171,326 |
Amortization expense | (2,886) |
Currency translation | (2,621) |
March 31, 2020 | $ 165,819 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Notional amount of open forward contracts | $ 75,400,000 | $ 74,900,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Balance Sheet Location and Fair Value of Assets Associated with Derivative Financial Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts: Warranty reserve and other current liabilities | $ 261 | $ 125 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts: Prepaid expenses and other current assets | $ 2,056 | $ 687 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Income Statement Location and Impact of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Currency exchange losses, net | $ 376 | $ 1,262 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, amortized cost basis | $ 69.6 | $ 49.7 |
investments, fair value | 69.8 | 49.9 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | 108 | 113 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | $ 115 | $ 129 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020USD ($)lawsuit | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)lawsuit | Dec. 31, 2018USD ($)lawsuit | |
Loss Contingencies [Line Items] | ||||
Product liability expense | $ 1,951 | $ 2,896 | ||
Loss contingency, years of activity | 5 years | |||
Insurance receivables | $ 61,200 | $ 63,800 | $ 71,700 | |
Insurance receivables, current | 7,600 | 7,600 | ||
Insurance receivables, noncurrent | 53,600 | 56,200 | ||
Notes receivable from insurance companies | 56,400 | 56,000 | $ 59,600 | |
Notes receivable from insurance companies, current | 3,706 | 3,676 | ||
Amount reported in notes receivable, insurance companies, noncurrent | 52,700 | 52,300 | ||
Product warranty expense | 2,900 | 2,700 | ||
Single Incident | ||||
Loss Contingencies [Line Items] | ||||
Product liability accrual | 3,300 | $ 3,100 | ||
Product liability expense | $ 200 | |||
Lawsuit | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits | lawsuit | 1,658 | 1,605 | 1,481 | |
Damages from Product Defects | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits | lawsuit | 2,520 | 2,456 | 2,355 | |
Cumulative Trauma | ||||
Loss Contingencies [Line Items] | ||||
Product liability accrual | $ 167,300 | $ 167,500 | ||
Product liability expense | 2,100 | |||
Claims Settled, But Not Yet Paid | ||||
Loss Contingencies [Line Items] | ||||
Product liability accrual | 3,200 | 3,000 | ||
Uninsured Cumulative Trauma | ||||
Loss Contingencies [Line Items] | ||||
Product liability expense | 1,800 | $ 2,800 | ||
Other Current Liabilities | Cumulative Trauma | ||||
Loss Contingencies [Line Items] | ||||
Product liability accrual | 17,600 | 17,400 | ||
Other Noncurrent Liabilities | Cumulative Trauma | ||||
Loss Contingencies [Line Items] | ||||
Product liability accrual | $ 150,100 | |||
Other Noncurrent Liabilities | Cumulative Trauma, Reported Claims | ||||
Loss Contingencies [Line Items] | ||||
Product liability, gross | $ 149,700 |
Contingencies - Summary of Cumu
Contingencies - Summary of Cumulative Trauma Product Liability Claims Activity (Details) - lawsuit | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lawsuit | ||
Loss Contingency, Quantities [Roll Forward] | ||
Beginning of period | 1,605 | 1,481 |
New lawsuits | 113 | 346 |
Settled and dismissed lawsuits | (60) | (222) |
End of period | 1,658 | 1,605 |
Damages from Product Defects | ||
Loss Contingency, Quantities [Roll Forward] | ||
Beginning of period | 2,456 | 2,355 |
New lawsuits | 124 | 486 |
Settled and dismissed lawsuits | (60) | (385) |
End of period | 2,520 | 2,456 |
Contingencies - Summary of Insu
Contingencies - Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||
Balance beginning of period | $ 63.8 | $ 71.7 |
Additions | 0.4 | 9.1 |
Collections and other adjustments | (3) | (17) |
Balance end of period | $ 61.2 | $ 63.8 |
Contingencies - Schedule of Not
Contingencies - Schedule of Notes Receivable Balances from Insurance Companies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||
Balance beginning of period | $ 56 | $ 59.6 |
Additions | 0.4 | 1.5 |
Collections | 0 | (5.1) |
Balance end of period | $ 56.4 | $ 56 |
Contingencies - Schedule of Pro
Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning warranty reserve | $ 12,715 | $ 14,214 |
Warranty payments | (3,001) | (12,664) |
Warranty claims | 3,043 | 12,033 |
Provision for product warranties and other adjustments | (163) | (868) |
Ending warranty reserve | $ 12,594 | $ 12,715 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | May 20, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 430,114 | $ 436,679 | ||
Revenues | 341,145 | $ 326,038 | ||
Net income (loss) | 43,674 | 23,232 | ||
Sierra Monitor Corporation | ||||
Business Acquisition [Line Items] | ||||
Voting interest acquired (percentage) | 100.00% | |||
Payments to acquire businesses | $ 33,200 | |||
Goodwill | 19,900 | 19,900 | ||
Estimated future amortization expense, remainder of fiscal year | 900 | |||
Estimated future amortization, years two through four | 1,200 | |||
Estimated future amortization expense, year 4 | 1,100 | |||
Estimated future amortization expense, thereafter | 4,200 | |||
Step up to fair value of acquired inventory | $ 1,600 | |||
Amortization expense related to step up to fair value of acquired inventory | 400 | |||
Transaction costs | 900 | |||
Revenues | 5,700 | |||
Net income (loss) | 500 | |||
Transaction costs | $ 100 | $ 500 | ||
Customer relationships | Sierra Monitor Corporation | ||||
Business Acquisition [Line Items] | ||||
Useful life | 10 years | |||
Technology | Sierra Monitor Corporation | ||||
Business Acquisition [Line Items] | ||||
Useful life | 5 years | |||
Stock Options And Restricted Stock Units | Sierra Monitor Corporation | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 900 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | May 20, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 430,114 | $ 436,679 | |
Sierra Monitor Corporation | |||
Business Acquisition [Line Items] | |||
Cash included in current assets | $ 2,100 | ||
Current assets (including cash of $2.1 million) | 10,500 | ||
Property, plant and equipment and other noncurrent assets | 1,300 | ||
Goodwill | $ 19,900 | 19,900 | |
Total assets acquired | 42,700 | ||
Total liabilities assumed | 6,500 | ||
Net assets acquired | 36,200 | ||
Customer relationships | Sierra Monitor Corporation | |||
Business Acquisition [Line Items] | |||
Intangible assets | 9,600 | ||
Acquired technology | Sierra Monitor Corporation | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 1,400 |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Details) $ / shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / shares | |
Business Combinations [Abstract] | |
Net sales | $ | $ 331.6 |
Net income | $ | $ 23.2 |
Basic earnings per share (in dollars per share) | $ / shares | $ 600 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 590 |
Uncategorized Items - a10q-q120
Label | Element | Value |
Restricted Cash, Current Assets, Included in Prepaid Expenses and Other Current Assets | msa_RestrictedCashCurrentAssetsIncludedinPrepaidExpensesandOtherCurrentAssets | $ 564,000 |
Restricted Cash, Current Assets, Included in Prepaid Expenses and Other Current Assets | msa_RestrictedCashCurrentAssetsIncludedinPrepaidExpensesandOtherCurrentAssets | $ 355,000 |