Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | May 17, 2019 | Sep. 28, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MODINE MANUFACTURING CO | ||
Entity Central Index Key | 0000067347 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 733 | ||
Entity Common Stock, Shares Outstanding | 50,726,269 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||||
Net sales | $ 2,212.7 | $ 2,103.1 | $ 1,503 | ||
Cost of sales | 1,847.2 | 1,746.6 | 1,248.6 | ||
Gross profit | 365.5 | 356.5 | 254.4 | ||
Selling, general and administrative expenses | 244.1 | 245.8 | 203.2 | ||
Restructuring expenses | 9.6 | 16 | 10.9 | ||
Impairment charges | 0.4 | 2.5 | 0 | ||
Loss (gain) on sale of assets | 1.7 | 0 | (2) | ||
Operating income | 109.7 | 92.2 | 42.3 | ||
Interest expense | (24.8) | (25.6) | (17.2) | ||
Other expense - net | (4.1) | (3.3) | (4.3) | ||
Earnings before income taxes | 80.8 | 63.3 | 20.8 | ||
Benefit (provision) for income taxes | 5.1 | (39.5) | (5.9) | ||
Net earnings | 85.9 | 23.8 | 14.9 | ||
Net earnings attributable to noncontrolling interest | (1.1) | (1.6) | (0.7) | ||
Net earnings attributable to Modine | $ 84.8 | [1] | $ 22.2 | [2] | $ 14.2 |
Net earnings per share attributable to Modine shareholders: | |||||
Basic (in dollars per share) | $ 1.67 | $ 0.44 | $ 0.29 | ||
Diluted (in dollars per share) | $ 1.65 | $ 0.43 | $ 0.29 | ||
Weighted-average shares outstanding: | |||||
Basic (in shares) | 50.5 | 49.9 | 47.8 | ||
Diluted (in shares) | 51.3 | 50.9 | 48.3 | ||
[1] | During fiscal 2019, restructuring expenses totaled $0.2 million, $0.5 million, and $8.9 million for the quarters ended June 30, 2018, December 31, 2018, and March 31, 2019, respectively (see Note 6). During the second quarter of fiscal 2019, the Company sold its South African business within the BHVAC segment and, as a result, recorded a loss of $1.7 million (see Note 1). During the third quarter of fiscal 2019, the Company recorded a $0.4 million impairment charge related to a manufacturing facility in Austria (see Note 6). The Company's income tax benefit for fiscal 2019 includes net benefits of $24.4 million and net charges of $2.2 million in the second and third quarters, respectively, related to the Tax Act and the recognition of foreign tax credits (see Note 8). During fiscal 2019, the Company adjusted its valuation allowances on deferred tax assets related to two separate subsidiaries in China and, as a result, recorded a $2.0 million income tax benefit and a $1.0 million income tax charge in the first and second quarters, respectively (see Note 8). | ||||
[2] | During fiscal 2018, restructuring expenses totaled $1.7 million, $0.4 million, $9.4 million, and $4.5 million for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017, and March 31, 2018, respectively (see Note 6). During the third quarter of fiscal 2018, the Company recorded a $1.3 million asset impairment charge related to a manufacturing facility in Austria (see Note 6). During the fourth quarter of fiscal 2018, the Company recorded a $1.2 million impairment charge related to intangible assets (see Note 14). The Company recorded income tax charges totaling $35.7 million and $2.3 million during the third and fourth quarters of fiscal 2018, respectively, related to the Tax Act (see Note 8). During the fourth quarter of fiscal 2018, the Company reversed a portion of a valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded an income tax benefit of $2.8 million (see Note 8). |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings | $ 85.9 | $ 23.8 | $ 14.9 |
Other comprehensive income (loss): | |||
Foreign currency translation | (37.6) | 41.8 | (10.8) |
Defined benefit plans, net of income taxes of ($0.3), ($0.2) and $1.7 million | (1.4) | 0.1 | 3.2 |
Cash flow hedges, net of income taxes of $0.1, $0.1 and $0 million | 0.4 | 0.1 | 0 |
Total other comprehensive income (loss) | (38.6) | 42 | (7.6) |
Comprehensive income | 47.3 | 65.8 | 7.3 |
Comprehensive income attributable to noncontrolling interest | (0.6) | (2.1) | (0.7) |
Comprehensive income attributable to Modine | $ 46.7 | $ 63.7 | $ 6.6 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Other comprehensive income (loss): | |||
Defined benefit plans, tax | $ (0.3) | $ (0.2) | $ 1.7 |
Cash flow hedges, tax expense | $ 0.1 | $ 0.1 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 41.7 | $ 39.3 |
Trade accounts receivable - net | 338.6 | 342.4 |
Inventories | 200.7 | 191.3 |
Other current assets | 65.8 | 70.1 |
Total current assets | 646.8 | 643.1 |
Property, plant and equipment - net | 484.7 | 504.3 |
Intangible assets - net | 116.2 | 129.9 |
Goodwill | 168.5 | 173.8 |
Deferred income taxes | 97.1 | 96.9 |
Other noncurrent assets | 24.7 | 25.4 |
Total assets | 1,538 | 1,573.4 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Short-term debt | 66 | 53.2 |
Long-term debt - current portion | 48.6 | 39.9 |
Accounts payable | 280.9 | 277.9 |
Accrued compensation and employee benefits | 81.7 | 97.3 |
Other current liabilities | 39.9 | 47.2 |
Total current liabilities | 517.1 | 515.5 |
Long-term debt | 335.1 | 386.3 |
Deferred income taxes | 8.2 | 9.9 |
Pensions | 101.7 | 109.6 |
Other noncurrent liabilities | 34.8 | 53.6 |
Total liabilities | 996.9 | 1,074.9 |
Commitments and contingencies (see Note 20) | ||
Shareholders' equity: | ||
Preferred stock, $0.025 par value, authorized 16.0 million shares, issued - none | 0 | 0 |
Common stock, $0.625 par value, authorized 80.0 million shares, issued 52.8 million and 52.3 million shares | 33 | 32.7 |
Additional paid-in capital | 238.6 | 229.9 |
Retained earnings | 472.1 | 394.9 |
Accumulated other comprehensive loss | (178.4) | (140.3) |
Treasury stock, at cost, 2.1 million and 1.8 million shares | (31.4) | (27.1) |
Total Modine shareholders' equity | 533.9 | 490.1 |
Noncontrolling interest | 7.2 | 8.4 |
Total equity | 541.1 | 498.5 |
Total liabilities and equity | $ 1,538 | $ 1,573.4 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Preferred stock, shares authorized (in shares) | 16 | 16 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 80 | 80 |
Common stock, shares issued (in shares) | 52.8 | 52.3 |
Treasury stock at cost (in shares) | 2.1 | 1.8 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | |||
Net earnings | $ 85.9 | $ 23.8 | $ 14.9 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 76.9 | 76.7 | 58.3 |
Loss (gain) on sale of assets | 1.7 | 0 | (2) |
Impairment charges | 0.4 | 2.5 | 0 |
Stock-based compensation expense | 7.9 | 9.5 | 7.4 |
Deferred income taxes | (4.4) | 12.1 | (4.6) |
Other - net | 5.3 | 9 | 3.9 |
Changes in operating assets and liabilities, excluding acquisition: | |||
Trade accounts receivable | (15.3) | (26.1) | (25.7) |
Inventories | (22) | (12.5) | (3.3) |
Accounts payable | 16.6 | 25.2 | 19.9 |
Accrued compensation and employee benefits | (10.1) | 16.4 | (6.5) |
Other assets | (11.8) | (5) | (2.4) |
Other liabilities | (27.8) | (7.4) | (18.2) |
Net cash provided by operating activities | 103.3 | 124.2 | 41.7 |
Cash flows from investing activities: | |||
Expenditures for property, plant and equipment | (73.9) | (71) | (64.4) |
Acquisitions - net of cash acquired | 0 | 0 | (364.2) |
Proceeds from dispositions of assets | 0.3 | 0.3 | 5.7 |
Proceeds from maturities of short-term investments | 4.9 | 4.8 | 2.2 |
Purchases of short-term investments | (3.8) | (5.5) | (3.5) |
Other - net | (0.3) | (0.2) | 2 |
Net cash used for investing activities | (72.8) | (71.6) | (422.2) |
Cash flows from financing activities: | |||
Borrowings of debt | 231.2 | 171 | 559.1 |
Repayments of debt | (251.9) | (222.9) | (202.4) |
Dividend paid to noncontrolling interest | (1.8) | (0.9) | 0 |
Financing fees paid | 0 | 0 | (8.7) |
Other - net | (3.4) | 2.7 | (0.4) |
Net cash (used for) provided by financing activities | (25.9) | (50.1) | 347.6 |
Effect of exchange rate changes on cash | (2.7) | 3 | (1.7) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1.9 | 5.5 | (34.6) |
Cash, cash equivalents and restricted cash - beginning of year | 40.3 | 34.8 | 69.4 |
Cash, cash equivalents and restricted cash - end of year | $ 42.2 | $ 40.3 | $ 34.8 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Common stock [Member] | Additional Paid-in Capital [Member] | Retained earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury stock, at cost [Member] | Non-controlling interest [Member] | Total | |
Balance at Mar. 31, 2016 | $ 30.6 | $ 185.6 | $ 358.2 | $ (174.2) | $ (24) | $ 6.5 | $ 382.7 | |
Balance (in shares) at Mar. 31, 2016 | 49 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings attributable to Modine | $ 0 | 0 | 14.2 | 0 | 0 | 0 | 14.2 | |
Other comprehensive income (loss) | 0 | 0 | 0 | (7.6) | 0 | 0 | (7.6) | |
Shares issued for acquisition of Luvata HTS | $ 1.4 | 22.9 | 0 | 0 | 0 | 0 | 24.3 | |
Shares issued for acquisition of Luvata HTS (in shares) | 2.2 | |||||||
Stock options and awards | $ 0.4 | 0.5 | 0 | 0 | 0 | 0 | 0.9 | |
Stock options and awards (in shares) | 0.6 | |||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (1.4) | 0 | (1.4) | |
Stock-based compensation expense | 0 | 7.4 | 0 | 0 | 0 | 0 | 7.4 | |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0.7 | 0.7 | |
Balance at Mar. 31, 2017 | $ 32.4 | 216.4 | 372.4 | (181.8) | (25.4) | 7.2 | 421.2 | |
Balance (in shares) at Mar. 31, 2017 | 51.8 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of new accounting guidance (Note 1) | $ 0 | 0.1 | 0.3 | 0 | 0 | 0 | 0.4 | |
Net earnings attributable to Modine | 0 | 0 | 22.2 | 0 | 0 | 0 | 22.2 | [1] |
Other comprehensive income (loss) | 0 | 0 | 0 | 41.5 | 0 | 0.5 | 42 | |
Stock options and awards | $ 0.3 | 3.9 | 0 | 0 | 0 | 0 | 4.2 | |
Stock options and awards (in shares) | 0.5 | |||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (1.7) | 0 | (1.7) | |
Stock-based compensation expense | 0 | 9.5 | 0 | 0 | 0 | 0 | 9.5 | |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | (0.9) | (0.9) | |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 1.6 | 1.6 | |
Balance at Mar. 31, 2018 | $ 32.7 | 229.9 | 394.9 | (140.3) | (27.1) | 8.4 | $ 498.5 | |
Balance (in shares) at Mar. 31, 2018 | 52.3 | 52.3 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of new accounting guidance (Note 1) | $ 0 | 0 | (7.6) | 0 | 0 | 0 | $ (7.6) | |
Net earnings attributable to Modine | 0 | 0 | 84.8 | 0 | 0 | 0 | 84.8 | [2] |
Other comprehensive income (loss) | 0 | 0 | 0 | (38.1) | 0 | (0.5) | (38.6) | |
Stock options and awards | $ 0.3 | 0.8 | 0 | 0 | 0 | 0 | 1.1 | |
Stock options and awards (in shares) | 0.5 | |||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (4.3) | 0 | (4.3) | |
Stock-based compensation expense | 0 | 7.9 | 0 | 0 | 0 | 0 | 7.9 | |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | (1.8) | (1.8) | |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 1.1 | 1.1 | |
Balance at Mar. 31, 2019 | $ 33 | $ 238.6 | $ 472.1 | $ (178.4) | $ (31.4) | $ 7.2 | $ 541.1 | |
Balance (in shares) at Mar. 31, 2019 | 52.8 | 52.8 | ||||||
[1] | During fiscal 2018, restructuring expenses totaled $1.7 million, $0.4 million, $9.4 million, and $4.5 million for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017, and March 31, 2018, respectively (see Note 6). During the third quarter of fiscal 2018, the Company recorded a $1.3 million asset impairment charge related to a manufacturing facility in Austria (see Note 6). During the fourth quarter of fiscal 2018, the Company recorded a $1.2 million impairment charge related to intangible assets (see Note 14). The Company recorded income tax charges totaling $35.7 million and $2.3 million during the third and fourth quarters of fiscal 2018, respectively, related to the Tax Act (see Note 8). During the fourth quarter of fiscal 2018, the Company reversed a portion of a valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded an income tax benefit of $2.8 million (see Note 8). | |||||||
[2] | During fiscal 2019, restructuring expenses totaled $0.2 million, $0.5 million, and $8.9 million for the quarters ended June 30, 2018, December 31, 2018, and March 31, 2019, respectively (see Note 6). During the second quarter of fiscal 2019, the Company sold its South African business within the BHVAC segment and, as a result, recorded a loss of $1.7 million (see Note 1). During the third quarter of fiscal 2019, the Company recorded a $0.4 million impairment charge related to a manufacturing facility in Austria (see Note 6). The Company's income tax benefit for fiscal 2019 includes net benefits of $24.4 million and net charges of $2.2 million in the second and third quarters, respectively, related to the Tax Act and the recognition of foreign tax credits (see Note 8). During fiscal 2019, the Company adjusted its valuation allowances on deferred tax assets related to two separate subsidiaries in China and, as a result, recorded a $2.0 million income tax benefit and a $1.0 million income tax charge in the first and second quarters, respectively (see Note 8). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1: Significant Accounting Policies Nature of operations: Sale of AIAC Air Conditioning South Africa (Pty) Ltd. Acquisition of Luvata HTS: Basis of presentation: Consolidation principles: The Company accounts for investments in non-consolidated affiliated companies in which its ownership is 20 percent or more using the equity method. The Company states these investments at cost, plus or minus a proportionate share of undistributed net earnings. The Company includes Modine’s share of the affiliate’s net earnings in other income and expense. See Note 13 for additional information. Revenue recognition: Shipping and handling costs: Trade accounts receivable: Warranty: Tooling costs: Stock-based compensation: Research and development: Translation of foreign currencies: Derivative instruments: Income taxes: Earnings per share: Cash and cash equivalents: Short-term investments: Inventories: Property, plant and equipment Goodwill: Impairment of long-lived assets: Assets held for sale: Deferred compensation trusts: Self-insurance reserves: Environmental liabilities: S upplemental cash flow information: Years ended March 31, 2019 2018 2017 Interest paid $ 22.3 $ 23.4 $ 15.4 Income taxes paid 22.2 20.1 12.7 New Accounting Guidance: Stock-based Compensation In March 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance to simplify several aspects of accounting for stock-based payment transactions. The Company adopted this guidance beginning in its first quarter of fiscal 2018. The Company elected to account for forfeitures in the period in which they occur and recorded a cumulative-effect adjustment to equity. In addition, the Company prospectively adopted the guidance requiring all excess tax benefits or deficiencies to be recognized as income tax expense or benefit when share-based awards are settled. The provisions of this guidance did not have a material impact on the Company’s consolidated financial statements. As a result of adopting this new guidance, the Company recorded a $0.4 million increase to both deferred tax assets and equity as of April 1, 2017. Revenue Recognition In May 2014, the FASB issued new guidance that outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the new guidance is that companies are to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements intended to provide users of financial statements with comprehensive information about revenue arising from contracts with customers. The Company adopted this new guidance for fiscal 2019 using the modified-retrospective transition method. The Company assessed customer contracts and evaluated contractual provisions in light of the new guidance. Through its evaluation process, the Company identified a limited number of customer contracts that provide an enforceable right to payment for customized products, which require revenue recognition prior to the product being shipped to the customer. As a result of its adoption of the new guidance, the Company recorded an increase of $0.7 million to retained earnings as of April 1, 2018, along with related balance sheet reclassifications. The increase to retained earnings represented $3.0 million of net sales that, had the new guidance been in effect, the Company would have recognized as of March 31, 2018. See Note 3 for additional information regarding revenue recognition. Income Taxes: Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued new guidance related to income tax accounting for intercompany asset transfers. This new guidance requires companies to recognize the income tax effects of intercompany asset transfers other than inventory at the transaction date. The income tax effects of these transfers were previously deferred. The Company adopted this new guidance for fiscal 2019 using the modified-retrospective transition method. Upon adoption, the Company recorded a decrease to retained earnings of $8.3 million as of April 1, 2018. Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued new guidance that requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending balances presented within the statement of cash flows. The Company adopted this new guidance for fiscal 2019 using the retrospective transition method. As a result, all prior period information has been recast to be comparable to the new presentation requirements. See Note 10 for information regarding the Company’s restricted cash. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued new guidance related to the accounting for certain stranded income tax effects in accumulated other comprehensive income (loss) resulting from tax reform legislation that was enacted in the U.S. in December 2017. This guidance is effective for the Company as of April 1, 2019 and provides the option to reclassify stranded income tax effects to retained earnings. The Company has determined it will not reclassify stranded income tax effects upon adoption, and therefore, this guidance will not impact its consolidated financial statements. Leases In February 2016, the FASB issued new comprehensive lease accounting guidance that supersedes existing lease accounting guidance and requires balance sheet recognition for most leases. The Company will adopt this guidance effective April 1, 2019 using a modified-retrospective transition method, under which it expects to elect not to adjust comparative periods. The Company intends to elect the package of practical expedients permitted under the new guidance, and, as a result, the Company has not reassessed the classification of existing leases or initial direct costs thereof, or whether existing contracts contain leases. In addition, the Company plans to elect accounting policies to not record short-term leases on the balance sheet and to not separate lease and non-lease components. The Company does not intend to elect the hindsight practical expedient. The Company has completed its assessment of its global lease portfolio and is in the process of finalizing the testing of its new lease accounting software solution and implementing new processes and controls to account for leases in accordance with the new guidance. The Company’s most significant leases represent leases of real estate, such as manufacturing facilities, warehouses, and office buildings. In addition, the Company leases certain manufacturing and IT equipment and vehicles. Upon adoption of this new guidance, the Company expects to recognize $60.0 to $70.0 million of right-of-use assets and corresponding lease liabilities on its consolidated balance sheet. The Company does not expect the adoption will have a material impact on its consolidated statements of operations or consolidated statements of cash flows. The cumulative effects on the Company’s consolidated balance sheet, as of April 1, 2018, resulting from the adoption of new accounting guidance were as follows: Adjustments Due to New Accounting Guidance Balance as of March 31, 2018 Revenue Recognition Intra-entity Transfers of Assets Balance as of April 1, 2018 ASSETS Inventories $ 191.3 $ (2.0 ) $ - $ 189.3 Other current assets 70.1 3.0 (8.3 ) 64.8 Deferred income taxes 96.9 (0.2 ) - 96.7 LIABILITIES AND SHAREHOLDERS’ EQUITY Deferred income taxes $ 9.9 $ 0.1 $ - $ 10.0 Retained earnings 394.9 0.7 (8.3 ) 387.3 |
Acquisition
Acquisition | 12 Months Ended |
Mar. 31, 2019 | |
Acquisition [Abstract] | |
Acquisition | Note 2: Acquisition Luvata HTS On November 30, 2016, the Company completed its acquisition of a 100 percent ownership interest in the Luvata HTS business for consideration totaling $415.6 million ($388.2 million, net of cash acquired). The purchase price included 2.2 million Modine common shares, valued at $24.3 million as of November 30, 2016. Operating as Modine’s Commercial and Industrial Solutions (“CIS”) segment, this business is a leading global supplier of coils, coolers and coatings to the heating, ventilation, air conditioning, and refrigeration industry. See Note 22 for a summary of net sales and operating income reported by the CIS segment. In fiscal 2018 and 2017, the Company recorded $4.3 million and $14.8 million, respectively, of costs incurred directly related to the acquisition and integration of Luvata HTS as SG&A expenses within the consolidated statements of operations. The fiscal 2018 costs primarily consisted of incremental costs associated with integration activities, including legal and accounting professional services and severance expenses. The fiscal 2017 costs primarily consisted of transaction advisory and due diligence costs and incremental costs directly associated with integration activities. In addition, during fiscal 2017, the Company charged $4.3 million to cost of sales related to inventory that it wrote-up to fair value upon acquisition. The Company completed its accounting for the acquisition of Luvata HTS during fiscal 2018 and allocated the purchase price of $415.6 million to the identifiable tangible and intangible assets acquired and the liabilities assumed based upon their estimated fair values as of the acquisition date. The Company allocated the excess of the purchase price over the net assets recognized to goodwill in the amount of $151.9 million, none of which is deductible for income tax purposes. Goodwill represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recorded as part of the acquisition includes Luvata HTS’s workforce and anticipated future cost and revenue synergies. The Company’s allocation of the purchase price for its acquisition of Luvata HTS was as follows: Cash and cash equivalents $ 27.4 Trade accounts receivable 86.1 Inventories 55.0 Property, plant and equipment 120.4 Intangible assets 130.2 Goodwill 151.9 Other assets 39.1 Accounts payable (73.7 ) Accrued compensation and employee benefits (24.3 ) Deferred income taxes (39.5 ) Pensions (14.3 ) Other liabilities (42.7 ) Purchase price $ 415.6 The following unaudited supplemental pro forma information presents the Company’s consolidated results of operations as though the acquisition of Luvata HTS had occurred at the beginning of fiscal 2016. This pro forma financial information is presented for illustrative purposes only and is not considered to be indicative of the operating results that would have been achieved had the acquisition been completed as of the date indicated. Year ended March 31, 2017 Net sales $ 1,881.6 Net earnings attributable to Modine 35.8 Net earnings per share attributable to Modine shareholders: Basic $ 0.72 Diluted 0.71 The supplemental pro forma financial information includes adjustments for: (i) annual amortization and depreciation expense totaling approximately $13.0 million for acquired tangible and intangible assets, (ii) estimated annual interest expense of approximately $14.0 million resulting from acquisition-related borrowings, and (iii) the estimated income tax impacts related to the pro forma adjustments, considering the statutory tax rates within the applicable jurisdictions. In addition, the pro forma financial information assumes that both $8.6 million of acquisition-related transaction costs, not including costs for integration-related activities, and $4.3 million of inventory purchase accounting adjustments were incurred during fiscal 2016. The pro forma financial information does not reflect achieved or expected cost or revenue synergies. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 3: Revenue Recognition Effective April 1, 2018, the Company adopted new revenue recognition accounting guidance using the modified-retrospective transition method and, as a result, recorded a cumulative-effect adjustment to increase retained earnings by $0.7 million. The Company’s consolidated financial statements for the fiscal year ended March 31, 2019 reflect the adoption of this new guidance; however, the comparable prior-year periods have not been recast. See Note 1 for additional information regarding the adjustments to the Company’s consolidated balance sheet as of April 1, 2018. The Company generates revenue from selling innovative thermal management products and solutions to diversified global markets and customers. The Company recognizes revenue based upon consideration specified in a contract and as it satisfies performance obligations by transferring control over its products to its customers, which may be at a point in time or over time. The majority of the Company’s revenue is recognized at a point in time, based upon shipment terms. The Company records an allowance for doubtful accounts for estimated uncollectible receivables and accrues for estimated warranty costs at the time of sale. These estimates are based upon historical experience, current business trends, and current economic conditions. The Company accounts for shipping and handling activities as fulfilment costs rather than separate performance obligations, and records shipping and handling costs in cost of sales and related amounts billed to customers in net sales. The Company establishes payment terms with its customers based upon industry and regional practices, which typically do not exceed 90 days. As the Company expects to receive payment from its customers within one year from the time of sale, it disregards the effects of the time value of money in its determination of the transaction price. The Company has not disclosed the value of unsatisfied performance obligations because the revenue associated with customer contracts for which the original expected performance period is greater than one year is immaterial. The following is a description of the Company’s principal revenue-generating activities: Vehicular Thermal Solutions (“VTS”) The VTS segment principally generates revenue from providing engineered heat transfer systems and components for use in on- and off-highway original equipment. This segment provides powertrain and engine cooling products, including, but not limited to, radiators, charge air coolers, condensers, oil coolers, EGR coolers, and fuel coolers, to original equipment manufacturers (“OEMs”) in the automotive, commercial vehicle, and off-highway markets in the Americas, Europe, and Asia regions. In addition, the VTS segment designs customer-owned tooling for OEMs and also serves Brazil’s automotive and commercial vehicle aftermarkets. While the VTS segment provides customized production and service parts to customers under multi-year programs, these programs typically do not contain contractually-guaranteed volumes to be purchased by the customer. As a result, individual purchase orders typically represent the quantities ordered by the customer. With the exception of a small number of VTS customers, the terms within the customer agreement, purchase order, or customer-owned tooling contract do not provide the Company with an enforceable right to payment for performance completed to date. As a result, the VTS segment recognizes revenue primarily at the time control is transferred to the customer based upon shipping terms, which is generally upon shipment. In regard to VTS customers with contractual cancellation terms that provide an enforceable right to payment for performance completed to date, the Company recognizes revenue over time based upon its estimated progress towards satisfaction of the performance obligations. The VTS segment measures progress by evaluating the production status of ordered products not yet shipped to the customer. For certain customer programs, the Company agrees to provide annual price reductions based upon contract terms. For these scheduled price reductions, the Company evaluates whether the provisions represent a material right to the customer, and if so, defers associated revenue as a result. At times, the Company makes up-front incentive payments to certain customers related to future sales under multi-year programs. The Company capitalizes these incentive payments, which it expects to recover through future sales, and amortizes the assets as a reduction to revenue when the related products are sold to customers. Commercial and Industrial Solutions (“CIS”) The CIS segment principally generates revenue from providing thermal management products, including customized coils and coolers, to the heating, ventilating, air conditioning, and refrigeration (“HVAC&R”) markets in North America, Europe, and Asia. In addition, the segment applies corrosion protection solutions, which are referred to as coatings, to heat-transfer equipment. For the sale of coils and coolers, individual customer purchase orders generally represent the Company’s contract with its customers. With the exception of a small number of customers, the applicable customer contracts do not provide the Company with an enforceable right to payment for performance completed to date. As a result, the CIS segment recognizes revenue for its sale of coils and coolers primarily at the time control is transferred to the customer based upon shipping terms, which is generally upon shipment. For both sales to customers whose contract cancellation terms provide an enforceable right to payment and sales from the coatings businesses, in which the customers control the heat-transfer equipment being enhanced by the coating application, the CIS segment recognizes revenue over time based upon its estimated progress towards satisfaction of the performance obligations. The segment measures progress by evaluating the production status towards completion of ordered products or services not yet shipped to its customers. Building HVAC Systems (“BHVAC”) The BHVAC segment principally generates revenue from providing a variety of heating, ventilating, and air conditioning products, primarily for commercial buildings and related applications in North America and the U.K., as well as mainland Europe and the Middle East. Heating products are manufactured in the U.S. and are generally sold to independent distributors, who in turn market the heating products to end customers. Because these products are sold to many different customers without contractual or practical limitations, the BHVAC segment recognizes revenue at the time control is transferred to the customer, generally the independent distributor, based upon shipping terms, which is generally upon shipment. Ventilation and air conditioning products are highly-specified to a customer’s needs; however, the underlying sales contracts do not provide the Company with an enforceable right to payment for performance completed to date. As a result, the BHVAC segment recognizes revenue for these products at the time control is transferred to the customer based upon shipping terms, which is generally upon shipment. Disaggregation of Revenue The table below presents revenue to external customers for each of the Company’s business segments by primary end market, by geographic location and based upon the timing of revenue recognition: Year ended March 31, 2019 VTS CIS BHVAC Segment Total Primary end market: Automotive $ 542.8 $ - $ - $ 542.8 Commercial vehicle 387.6 - - 387.6 Off-highway 314.1 - - 314.1 Commercial HVAC&R - 506.3 167.7 674.0 Data center cooling - 145.7 41.3 187.0 Industrial cooling - 47.8 - 47.8 Other 107.2 7.8 3.4 118.4 Net sales $ 1,351.7 $ 707.6 $ 212.4 $ 2,271.7 Geographic location: Americas $ 613.7 $ 413.6 $ 124.9 $ 1,152.2 Europe 538.2 244.8 87.5 870.5 Asia 199.8 49.2 - 249.0 Net sales $ 1,351.7 $ 707.6 $ 212.4 $ 2,271.7 Timing of revenue recognition: Products transferred at a point in time $ 1,308.5 $ 571.1 $ 212.4 $ 2,092.0 Products transferred over time 43.2 136.5 - 179.7 Net sales $ 1,351.7 $ 707.6 $ 212.4 $ 2,271.7 Contract Balances Contract assets and contract liabilities from contracts with customers were as follows: March 31, 2019 March 31, 2018 Contract assets $ 22.6 $ 13.5 Contract liabilities 4.0 6.8 Contract assets, included within other current assets in the consolidated balance sheets, primarily consist of capitalized costs related to customer-owned tooling contracts, wherein the customer has guaranteed reimbursement, and assets recorded for revenue recognized over time, which represent the Company’s rights to consideration for work completed but not yet billed. The $9.1 million increase in contract assets during fiscal 2019 was primarily related to contract assets totaling $7.4 million as of March 31, 2019 for revenue recognized over time, which were recorded as a result of the Company’s adoption of the new revenue recognition accounting guidance, and customer-owned tooling contracts, under which more costs were capitalized than reimbursed. Contract liabilities, included within other current liabilities in the consolidated balance sheets, consist of payments received in advance of satisfying performance obligations under customer contracts, including contracts for customer-owned tooling. The $2.8 million decrease in contract liabilities during fiscal 2019 was primarily due to the Company’s satisfaction of performance obligations under customer contracts for which payment had been received in advance. Impacts of Adopting New Accounting Guidance The impacts from the adoption of the new revenue recognition guidance to the Company’s consolidated statement of operations for the year ended March 31, 2019 and its consolidated balance sheet as of March 31, 2019 were as follows: Year ended March 31, 2019 As Reported Impact of New Results Without Impact of New Accounting Guidance Net sales $ 2,212.7 $ (4.4 ) $ 2,208.3 Net earnings attributable to Modine 84.8 (2.0 ) 82.8 Net earnings per share attributable to Modine shareholders: Basic $ 1.67 $ (0.04 ) $ 1.63 Diluted 1.65 (0.04 ) 1.61 March 31, 2019 As Reported Impact of New Accounting Guidance Balances Without Impact of New Accounting Guidance ASSETS Inventories $ 200.7 $ 3.8 $ 204.5 Other current assets 65.8 (7.4 ) 58.4 Deferred income taxes 97.1 0.6 97.7 LIABILITIES AND SHAREHOLDERS’ EQUITY Deferred income taxes $ 8.2 $ (0.3 ) $ 7.9 Retained earnings 472.1 (2.7 ) 469.4 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 4: Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Fair value measurements are classified under the following hierarchy: • Level 1 – Quoted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3 – Model-derived valuations in which one or more significant inputs are not observable. When available, the Company uses quoted market prices to determine fair value and classifies such measurements as Level 1. In some cases, where market prices are not available, the Company uses observable market-based inputs to calculate fair value, in which case the measurements are classified as Level 2. If quoted or observable market prices are not available, the Company determines fair value based upon valuation models that use, where possible, market-based data such as interest rates, yield curves or currency rates. These measurements are classified as Level 3. The carrying values of cash, cash equivalents, restricted cash, short-term investments, trade accounts receivable, accounts payable, and short-term debt approximate fair value due to the short-term nature of these instruments. The Company holds trading securities in deferred compensation trusts to fund obligations under certain non-qualified deferred compensation plans. The securities’ fair values, which are recorded as other noncurrent assets, are determined based upon quoted prices from active markets and classified within Level 1 of the valuation hierarchy. The Company’s deferred compensation obligations, which are recorded as other noncurrent liabilities, are recorded at the fair values of the investments held by the trust. The fair values of the Company’s trading securities and deferred compensation obligations each totaled $6.0 million and $5.8 million as of March 31, 2019 and 2018, respectively. The fair value of the Company’s long-term debt is disclosed in Note 17. Plan assets related to the Company’s pension plans were classified as follows: March 31, 2019 Level 1 Level 2 Total Money market investments $ - $ 3.9 $ 3.9 Corporate bonds - 9.4 9.4 Pooled equity funds 27.7 - 27.7 U.S. government and agency securities - 12.3 12.3 Other 0.1 0.9 1.0 Fair value excluding investments measured at net asset value 27.8 26.5 54.3 Investments measured at net asset value 100.8 Total fair value $ 155.1 March 31, 2018 Level 1 Level 2 Total Money market investments $ - $ 11.4 $ 11.4 Common stocks 9.4 2.6 12.0 Corporate bonds - 9.7 9.7 Pooled equity funds 64.4 - 64.4 Pooled fixed-income funds 27.3 - 27.3 U.S. government and agency securities - 16.2 16.2 Other 0.2 1.7 1.9 Fair value excluding investment measured at net asset value 101.3 41.6 142.9 Investment measured at net asset value 14.8 Total fair value $ 157.7 The Company determined the fair value of money market investments to approximate their net asset values, without discounts for credit quality or liquidity restrictions, and classified them within Level 2 of the valuation hierarchy. The Company determined the fair value of common stocks, pooled equity funds and pooled fixed-income funds based upon quoted prices from active markets and classified them within Level 1 of the valuation hierarchy. The Company determined the fair value of certain common stocks, corporate bonds and U.S. government and agency securities based upon recent bid prices or the average of recent bid and asking prices when available and, if not available, the Company valued them through matrix pricing models developed by sources considered by management to be reliable. The Company classified these assets within Level 2 of the valuation hierarchy. As of March 31, 2019 and 2018, the Company held no Level 3 assets within its pension plans. As a practical expedient, the Company valued certain investments, including pooled equity, fixed-income and real estate funds, using their net asset value (NAV) per unit, and therefore, has not classified these investments within the fair value hierarchy. The increase in investments valued at NAV in fiscal 2019 was associated with the Company’s revised target asset allocations for its U.S. pension plan; see Note 18 for additional information. The terms and conditions for redemptions vary for the investments valued at NAV. The real estate investment fund may be redeemed at any time with a 90-day notice period. Other investments valued at NAV do not have restrictive redemption frequency or notice period requirements. The Company does not intend to sell or otherwise dispose of these investments at prices different than the NAV per unit. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 5: Stock-Based Compensation The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive compensation program for officers and other executives that consists of stock awards, stock options, and performance-based stock awards granted for retention and performance, (2) a discretionary equity program for other management and key employees, and (3) stock awards for non-employee directors. The Company’s Board of Directors and the Officer Nomination and Compensation Committee, as applicable, have discretionary authority to set the terms of the stock-based awards. Grants to employees during fiscal 2019 were issued under the Company’s 2017 Incentive Compensation Plan. At present, the Company accomplishes the fulfillment of equity-based grants through the issuance of new common shares. As of March 31, 2019, approximately 2.7 million shares authorized under the 2017 Incentive Compensation Plan remain available for future grants. Employee participants have the opportunity to deliver back to the Company the number of shares from the vesting of stock awards sufficient to satisfy the individual’s minimum tax withholding obligations. These shares are held as treasury shares. The Company recorded stock-based compensation expense of $7.9 million, $9.5 million, and $7.4 million in fiscal 2019, 2018, and 2017, respectively. Stock Options: The Company estimated the fair value of option awards on the date of grant using the Black-Scholes option valuation model and the following assumptions: Years ended March 31, 2019 2018 2017 Fair value of options $ 7.81 $ 7.30 $ 4.60 Expected life of awards in years 6.3 6.4 6.4 Risk-free interest rate 2.8 % 1.9 % 1.4 % Expected volatility of the Company’s stock 39.7 % 44.3 % 45.5 % Expected dividend yield on the Company’s stock 0.0 % 0.0 % 0.0 % Stock options expire no later than 10 years after the grant date and have an exercise price equal to the fair market value of Modine’s common stock on the date of grant. The risk-free interest rate was based upon yields of U.S. Treasury zero-coupon issues with a term corresponding to the expected life of the options. The expected volatility assumption was based upon changes in the Company’s historical common stock prices over the same time frame as the expected life of the awards. The expected dividend yield is zero, as the Company currently does not anticipate paying dividends over the expected life of the options. The expected lives of the awards are based upon historical patterns and the terms of the options. Outstanding options granted vest 25 percent annually for four years. A summary of stock option activity for fiscal 2019 was as follows: Shares Weighted-average Weighted-average remaining contractual term (years) Aggregate intrinsic value Outstanding, beginning 1.2 $ 11.16 Granted 0.2 17.90 Exercised (0.1 ) 9.93 Forfeited or expired (0.1 ) 14.51 Outstanding, ending 1.2 $ 12.24 5.5 $ 3.3 Exercisable, March 31, 2019 0.8 $ 10.59 4.0 $ 2.9 The aggregate intrinsic value represents the difference between the closing price of Modine’s common shares on the last trading day of fiscal 2019 over the exercise price of the stock options, multiplied by the number of options outstanding or exercisable. The aggregate intrinsic value is not recorded for financial statement purposes, and this value will change based upon daily changes in the price of Modine’s common shares. Additional information related to stock options exercised is as follows: Years ended March 31, 2019 2018 2017 Intrinsic value of stock options exercised $ 0.7 $ 4.9 $ 0.5 Proceeds from stock options exercised 1.1 4.3 0.9 Restricted Stock: A summary of restricted stock activity for fiscal 2019 was as follows: Shares Weighted-average price Non-vested balance, beginning 0.6 $ 12.24 Granted 0.3 17.72 Vested (0.3 ) 13.75 Forfeited (0.1 ) 15.03 Non-vested balance, ending 0.5 $ 14.95 Restricted Stock – Performance-Based Shares: Shares are earned under the performance portion of the restricted stock award program based upon the attainment of certain financial goals over a three-year period and are awarded after the end of that three-year performance period, if the performance targets have been achieved. The performance components of the program initiated in fiscal 2019 is based upon both a target three-year average consolidated cash flow return on invested capital and a target three-year average annual revenue growth at the end of a three-year performance period, commencing with the fiscal year of grant. The performance components of the programs initiated in fiscal 2018 and 2017 were based upon both a target three-year average consolidated return on capital employed and a target three-year average annual revenue growth at the end of a three-year performance period. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | Note 6: Restructuring Activities During fiscal 2019, restructuring and repositioning expenses primarily resulted from targeted headcount reductions in Europe and the Americas within the VTS segment. These headcount reductions support the Company’s objective to reduce operational and SG&A cost structures at certain locations. In addition, the Company is in process of transferring product lines associated with the merger of its North American coils business into the CIS segment, in order to accelerate operational improvements and organizational efficiencies. During fiscal 2018, the Company ceased production at its Gailtal, Austria manufacturing facility, primarily to reduce excess capacity and lower manufacturing costs in Europe. As a result of this facility closure, the Company recorded $8.3 million of restructuring expenses During fiscal 2017, the Company completed a voluntary retirement program for certain U.S. salaried employees and implemented targeted headcount reductions at several locations, both in support of its objective to reduce operational and SG&A cost structures. Also during fiscal 2017, the Company completed the transfer of production from its Washington, Iowa manufacturing facility, which was closed and sold, to other VTS segment manufacturing facilities in North America. Restructuring and repositioning expenses were as follows: Years ended March 31, 2019 2018 2017 Employee severance and related benefits $ 8.7 $ 13.0 $ 5.3 Other restructuring and repositioning expenses 0.9 3.0 5.6 Total $ 9.6 $ 16.0 $ 10.9 Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs. The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows: Years ended March 31, 2019 2018 Beginning balance $ 11.0 $ 6.5 Additions 8.7 13.0 Payments (9.1 ) (9.4 ) Effect of exchange rate changes (0.6 ) 0.9 Ending balance $ 10.0 $ 11.0 During fiscal 2018, the Company recorded a $1.3 million asset impairment charge as a result of the closure of the CIS Austrian facility. During fiscal 2019, the Company recorded an additional $0.4 million asset impairment charge related to this closed facility to reduce its carrying value to its current estimated fair value, less costs to sell. During fiscal 2017, the Company sold three previously-closed manufacturing facilities within its VTS segment for cash proceeds totaling $5.4 million. As a result of the facility sales, the Company recorded net gains totaling $2.0 million. |
Other Income and Expense
Other Income and Expense | 12 Months Ended |
Mar. 31, 2019 | |
Other Income and Expense [Abstract] | |
Other Income and Expense | Note 7: Other Income and Expense Other income and expense consisted of the following: Years ended March 31, 2019 2018 2017 Equity in earnings of non-consolidated affiliate $ 0.7 $ 0.2 $ 0.1 Interest income 0.4 0.4 0.4 Foreign currency transactions (a) (2.3 ) (0.6 ) (1.9 ) Net periodic benefit cost (b) (2.9 ) (3.3 ) (2.9 ) Total other expense - net $ (4.1 ) $ (3.3 ) $ (4.3 ) (a) Foreign currency transactions primarily consist of foreign currency transaction gains and losses on the re-measurement or settlement of foreign currency-denominated assets and liabilities, including intercompany loans and transactions denominated in a foreign currency, along with gains and losses on foreign currency exchange contracts. (b) Represents net periodic benefit cost, exclusive of service cost, for the Company’s pension and postretirement plans. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8: Income Taxes The U.S. and foreign components of earnings before income taxes and the benefit or provision for income taxes consisted of the following: Years ended March 31, 2019 2018 2017 Components of earnings (loss) before income taxes: United States $ 22.4 $ 2.5 $ (8.6 ) Foreign 58.4 60.8 29.4 Total earnings before income taxes $ 80.8 $ 63.3 $ 20.8 Income tax (benefit) provision: Federal: Current $ (20.4 ) $ 11.6 $ 0.1 Deferred (4.2 ) 23.3 (3.8 ) State: Current 0.7 (0.3 ) 0.3 Deferred 1.9 2.0 (0.2 ) Foreign: Current 19.0 16.1 10.1 Deferred (2.1 ) (13.2 ) (0.6 ) Total income tax (benefit) provision $ (5.1 ) $ 39.5 $ 5.9 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. Shortly after the Tax Act was enacted, the SEC issued accounting guidance which provided a one-year measurement period during which a company could complete its accounting for the impacts of the Tax Act. To the extent a company’s accounting for certain income tax effects of the Tax Act was incomplete, the company could determine a reasonable estimate for those effects and record a provisional estimate in its financial statements. If a company could not determine a provisional estimate to be included in the financial statements, it was to continue applying the provisions of the tax laws that were in effect immediately prior to the Tax Act being enacted. During fiscal 2018, the Company recorded provisional discrete tax charges totaling $38.0 million related to the Tax Act. The Company adjusted its U.S. deferred tax assets by $19.0 million due to the reduction in the U.S. federal corporate tax rate. This net reduction in deferred tax assets also included the estimated impact on the Company’s net state deferred tax assets. In addition, the Company recorded a $19.0 million charge for the transition tax required under the Tax Act. During fiscal 2019, the Company completed its accounting for the Tax Act, which resulted in an income tax benefit totaling $7.7 million. The Company determined it will utilize its deferred tax attributes against the transition tax and finalized its fiscal 2018 U.S. federal income tax return. As a result, the Company decreased the provisional charge recorded for the reduction in the U.S. federal corporate tax rate by $9.3 million, since more deferred tax assets were utilized to offset taxable income at a higher fiscal 2018 U.S. federal corporate tax rate. The Company also decreased the transition tax liability to $18.9 million, a reduction of $0.1 million. In addition, the Company recorded a charge of $1.7 million for a reduction to state deferred tax assets. The Tax Act included a new provision designed to tax global intangible low taxed income (“GILTI”) starting in fiscal 2019. The Company elected to record the tax effects of the GILTI provision as a period expense in the applicable tax year. The Company’s accounting policy is to allocate the income tax provision between net earnings and other comprehensive income. The Company applies its accounting for income taxes by tax jurisdiction, and in periods in which there is a loss before income taxes and pre-tax income in other comprehensive income, it first allocates the income tax provision to other comprehensive income, and then records a related tax benefit in the income tax provision. The reconciliation between the U.S. federal statutory rate and the Company’s effective tax rate was as follows: Years ended March 31, 2019 2018 2017 Statutory federal tax 21.0 % 31.5 % 35.0 % State taxes, net of federal benefit 3.6 2.9 (3.3 ) Taxes on non-U.S. earnings and losses 3.9 (3.8 ) (3.5 ) Valuation allowances 4.0 (5.6 ) 1.2 Tax credits (26.1 ) (17.3 ) (9.0 ) Compensation (0.1 ) (0.8 ) 2.9 Tax rate or law changes (12.0 ) 60.1 (2.5 ) Uncertain tax positions, net of settlements 0.4 (0.8 ) 5.6 Notional interest deductions (2.5 ) (3.2 ) (8.8 ) Dividend repatriation 1.6 0.2 7.1 Other (0.1 ) (0.8 ) 3.7 Effective tax rate (6.3 %) 62.4 % 28.4 % During fiscal 2019, the Company recorded income tax benefits totaling $7.7 million related to the Tax Act, as discussed above; recorded income tax benefits totaling $14.5 million as a result of amending previous-year tax returns to recognize foreign tax credits that are expected to be realized based upon future sources of income; and recorded a $2.5 million income tax benefit related to a manufacturing deduction in the United States. Also in fiscal 2019, the Company changed its determination of whether it was more likely than not certain deferred tax assets of two separate subsidiaries in a foreign jurisdiction would be realized and, as a result, adjusted the respective valuation allowances and recorded an income tax benefit totaling $1.0 million. In addition, the Company recorded a net increase of deferred tax asset valuation allowances totaling $4.3 million related to other tax jurisdictions and recorded a $2.2 million income tax benefit associated with the reduction in unrecognized tax benefits resulting from a lapse in statutes of limitations. During fiscal 2018, the Company recorded provisional charges totaling $38.0 million related to the Tax Act, as discussed above, and recognized a $9.0 million Hungarian development tax credit. Also in fiscal 2018, the Company reversed a portion of the valuation allowance on certain deferred tax assets in a foreign jurisdiction after determining it was more likely than not these assets would be realized, and, as a result, recorded an income tax benefit of $2.8 million. In addition, the Company recorded a $1.8 million income tax benefit in fiscal 2018 associated with the reduction in unrecognized tax benefits resulting from a lapse in statutes of limitations. During fiscal 2017, the Company recorded a valuation allowance of $2.0 million on certain deferred tax assets in a foreign jurisdiction after determining it was more likely than not the deferred tax assets would not be realized. Also during fiscal 2017, the Company recorded a net reduction of deferred tax asset valuation allowances totaling $1.8 million in other tax jurisdictions. The Company will continue to provide valuation allowances against its net deferred tax assets in each applicable tax jurisdiction until the need for a valuation allowance is eliminated. The need for a valuation allowance is eliminated when the Company determines it is more likely than not the deferred tax assets will be realized. The tax effects of temporary differences that gave rise to deferred tax assets and liabilities were as follows: March 31, 2019 2018 Deferred tax assets: Accounts receivable $ 0.2 $ 0.3 Inventories 3.4 4.1 Plant and equipment 1.8 2.3 Pension and employee benefits 32.7 36.0 Net operating and capital losses 73.5 102.5 Credit carryforwards 60.3 36.7 Other, principally accrued liabilities 10.0 9.9 Total gross deferred tax assets 181.9 191.8 Less: valuation allowances (43.4 ) (48.9 ) Net deferred tax assets 138.5 142.9 Deferred tax liabilities: Plant and equipment 15.1 17.6 Goodwill 4.8 5.2 Intangible assets 28.8 32.4 Other 0.9 0.7 Total gross deferred tax liabilities 49.6 55.9 Net deferred tax assets $ 88.9 $ 87.0 Unrecognized tax benefits were as follows: Years ended March 31, 2019 2018 Beginning balance $ 13.6 $ 14.2 Gross increases - tax positions in prior period 1.6 0.8 Gross decreases - tax positions in prior period (a) (0.2 ) (1.2 ) Gross increases - due to acquisition - 1.4 Gross increases - tax positions in current period 1.1 0.5 Settlements (0.1 ) (0.3 ) Lapse of statute of limitations (2.2 ) (1.8 ) Ending balance $ 13.8 $ 13.6 (a) Fiscal 2018 includes $1.0 million related to the reduction of the U.S. federal corporate tax rate as a result of the Tax Act. The Company’s liability for unrecognized tax benefits as of March 31, 2019 was $13.8 million, and if recognized, $12.2 million would have an effective tax rate impact. The Company estimates a $0.2 million decrease in unrecognized tax benefits during fiscal 2020 due to lapses in statutes of limitations and settlements. If recognized, these reductions would not have a significant impact on the Company’s effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. During fiscal 2019 and 2018, interest and penalties included within income tax expense in the consolidated statements of operations were not significant. At March 31, 2019 and 2018, accrued interest and penalties totaled $1.1 million and $1.0 million, respectively. The Company files income tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world. At March 31, 2019, the Company was under income tax examination in a number of jurisdictions. The following tax years remain subject to examination for the Company’s major tax jurisdictions: Germany Fiscal 2011 - Fiscal 2018 Italy Calendar 2014 - Fiscal 2018 United States Fiscal 2016 - Fiscal 2018 At March 31, 2019, the Company had federal and state tax credits of $60.0 million that, if not utilized against U.S. taxes, will expire between fiscal 2020 and 2039. The Company also had state and local tax loss carryforwards totaling $129.5 million that, if not utilized against state apportioned taxable income, will expire between fiscal 2020 and 2039. In addition, the Company had tax loss and foreign attribute carryforwards totaling $351.6 million in various tax jurisdictions throughout the world. Certain of the carryforwards in the U.S. and in foreign jurisdictions are offset by valuation allowances. If not utilized against taxable income, $9.7 million of these carryforwards will expire between fiscal 2020 and 2034, and $341.9 million, mainly related to Germany and Italy, will not expire due to an unlimited carryforward period. The Company’s practice and intention is to reinvest, with certain insignificant exceptions, the earnings of its non-U.S. subsidiaries outside of the U.S., and therefore, the Company has not recorded foreign withholding taxes or deferred income taxes for these earnings. The Company has estimated the net amount of unrecognized foreign withholding tax and deferred tax liabilities would total approximately $7.0 million if the accumulated foreign earnings were distributed; however, the actual tax cost would be dependent on circumstances existing when remittance occurs. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9: Earnings Per Share The components of basic and diluted earnings per share were as follows: Years ended March 31, 2019 2018 2017 Basic Earnings Per Share: Net earnings attributable to Modine $ 84.8 $ 22.2 $ 14.2 Less: Undistributed earnings attributable to unvested shares (0.4 ) (0.2 ) (0.2 ) Net earnings available to Modine shareholders $ 84.4 $ 22.0 $ 14.0 Weighted-average shares outstanding - basic 50.5 49.9 47.8 Net earnings per share - basic $ 1.67 $ 0.44 $ 0.29 Diluted Earnings Per Share: Net earnings attributable to Modine $ 84.8 $ 22.2 $ 14.2 Less: Undistributed earnings attributable to unvested shares (0.2 ) (0.1 ) (0.1 ) Net earnings available to Modine shareholders $ 84.6 $ 22.1 $ 14.1 Weighted-average shares outstanding - basic 50.5 49.9 47.8 Effect of dilutive securities 0.8 1.0 0.5 Weighted-average shares outstanding - diluted 51.3 50.9 48.3 Net earnings per share - diluted $ 1.65 $ 0.43 $ 0.29 For fiscal 2019, 2018 and 2017, the calculation of diluted earnings per share excluded 0.4 million, 0.2 million, and 0.8 million stock options, respectively, because they were anti-dilutive. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Mar. 31, 2019 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Note 10: Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash consisted of the following: March 31, 2019 2018 Cash and cash equivalents $ 41.7 $ 39.3 Restricted cash 0.5 1.0 Total cash, cash equivalents and restricted cash $ 42.2 $ 40.3 Restricted cash, which is reported within other noncurrent assets on the consolidated balance sheets, consists primarily of deposits for contractual guarantees or commitments required for rents, import and export duties, and commercial agreements. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2019 | |
Inventories [Abstract] | |
Inventories | Note 11: Inventories Inventories consisted of the following: March 31, 2019 2018 Raw materials $ 122.8 $ 114.4 Work in process 32.2 34.8 Finished goods 45.7 42.1 Total inventories $ 200.7 $ 191.3 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 12: Property, Plant and Equipment Property, plant and equipment, including depreciable lives, consisted of the following: March 31, 2019 2018 Land $ 20.7 $ 22.6 Buildings and improvements (10-40 years) 285.9 295.6 Machinery and equipment (3-15 years) 848.7 840.8 Office equipment (3-10 years) 92.0 93.0 Construction in progress 57.4 50.2 1,304.7 1,302.2 Less: accumulated depreciation (820.0 ) (797.9 ) Net property, plant and equipment $ 484.7 $ 504.3 Depreciation expense totaled $67.9 million, $67.0 million, and $54.2 million for fiscal 2019, 2018, and 2017, respectively. Gains and losses related to the disposal of property, plant and equipment are recorded within SG&A expenses. For fiscal 2019, 2018, and 2017, losses related to the disposal of property, plant and equipment totaled $0.9 million, $0.7 million, and $0.4 million, respectively. |
Investment in Affiliate
Investment in Affiliate | 12 Months Ended |
Mar. 31, 2019 | |
Investment in Affiliate [Abstract] | |
Investment in Affiliate | Note 13: Investment in Affiliate The Company owns 50 percent of Nikkei Heat Exchanger Company, Ltd. (“NEX”). The Company accounts for its investment in this non-consolidated affiliate using the equity method. At March 31, 2019 and 2018, the Company included its investment in NEX of $3.8 million and $3.6 million, respectively, within other noncurrent assets on the consolidated balance sheets. At March 31, 2019, the investment in NEX is equal to the Company’s investment in the underlying net assets. The Company reports its equity in earnings from NEX within other income and expense in the consolidated statements of operations, using a one-month reporting delay. The Company’s share of NEX’s earnings for fiscal 2019, 2018, and 2017 was $0.7 million, $0.2 million, and $0.1 million, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note 14: Intangible Assets Intangible assets consisted of the following: March 31, 2019 March 31, 2018 Gross Carrying Value Accumulated Amortization Net Intangible Assets Gross Carrying Value Accumulated Amortization Net Intangible Assets Customer relationships $ 61.5 $ (9.1 ) $ 52.4 $ 64.2 $ (5.7 ) $ 58.5 Trade names 58.9 (13.5 ) 45.4 60.6 (10.8 ) 49.8 Acquired technology 23.9 (5.5 ) 18.4 25.2 (3.6 ) 21.6 Total intangible assets $ 144.3 $ (28.1 ) $ 116.2 $ 150.0 $ (20.1 ) $ 129.9 The Company recorded $9.0 million, $9.7 million, and $4.1 million of amortization expense during fiscal 2019, 2018, and 2017, respectively. The Company estimates that it will record $9.0 million of amortization expense in fiscal 2020 and approximately $8.0 million of annual amortization expense in fiscal 2021 through 2024. During fiscal 2018, the BHVAC segment discontinued its geothermal product line and, as a result, recorded a $1.2 million impairment for acquired technology intangible assets it will no longer use. Annual revenue for this discontinued product line was less than $1.0 million. |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill [Abstract] | |
Goodwill | Note 15: Goodwill Changes in the carrying amount of goodwill, by segment and in the aggregate, were as follows: VTS CIS BHVAC Total Balance, March 31, 2017 $ 0.5 $ 150.9 $ 13.7 $ 165.1 Acquired goodwill (a) - 1.3 - 1.3 Effect of exchange rate changes - 6.1 1.3 7.4 Balance, March 31, 2018 0.5 158.3 15.0 173.8 Effect of exchange rate changes - (4.4 ) (0.9 ) (5.3 ) Balance, March 31, 2019 $ 0.5 $ 153.9 $ 14.1 $ 168.5 (a) Represents measurement-period adjustments related to the Company’s acquisition of Luvata HTS. See Note 2 for additional information about this acquisition. The Company assesses goodwill for impairment annually, or more frequently if events or circumstances change that would, more likely than not, reduce the fair value of a reporting unit below its carrying value. The Company conducted its annual assessment for goodwill impairment during the fourth quarter of fiscal 2019 for the reporting units within its VTS, CIS, and BHVAC segments, by applying a fair value-based test, and determined that the fair value of its reporting units exceeded their respective book values. At both March 31, 2019 and 2018, accumulated goodwill impairment losses totaled $40.3 million within the VTS segment. |
Product Warranties, Operating L
Product Warranties, Operating Leases, and Other Commitments | 12 Months Ended |
Mar. 31, 2019 | |
Product Warranties, Operating Leases, and Other Commitments [Abstract] | |
Product Warranties, Operating Leases, and Other Commitments | Note 16: Product Warranties, Operating Leases, and Other Commitments Product warranties Changes in accrued warranty costs were as follows: Years ended March 31, 2019 2018 Beginning balance $ 9.3 $ 10.0 Warranties recorded at time of sale 5.5 6.7 Adjustments to pre-existing warranties 2.2 (0.8 ) Adjustments due to acquisition (a) - (1.0 ) Settlements (7.3 ) (6.2 ) Effect of exchange rate changes (0.5 ) 0.6 Ending balance $ 9.2 $ 9.3 (a) During fiscal 2018, the Company decreased its liability for product warranties by $1.0 million as a result of measurement-period adjustments made in connection with purchase accounting for the acquisition of Luvata HTS. See Note 2 for additional information about this acquisition. Operating leases: Future minimum rental commitments at March 31, 2019 under non-cancelable operating leases were as follows: Fiscal Year 2020 $ 14.2 2021 12.4 2022 9.1 2023 7.1 2024 4.7 2025 and beyond 22.9 Total $ 70.4 Indemnification agreements: Commitments: |
Indebtedness
Indebtedness | 12 Months Ended |
Mar. 31, 2019 | |
Indebtedness [Abstract] | |
Indebtedness | Note 17: Indebtedness Long-term debt consisted of the following: Fiscal year of maturity March 31, 2019 March 31, 2018 Term loans 2022 $ 238.4 $ 267.8 6.8% Senior Notes 2021 85.0 101.0 5.8% Senior Notes 2027 50.0 50.0 Other (a) - 14.3 12.8 387.7 431.6 Less: current portion (48.6 ) (39.9 ) Less: unamortized debt issuance costs (4.0 ) (5.4 ) Total long-term debt $ 335.1 $ 386.3 (a) Other long-term debt includes borrowings by foreign subsidiaries, capital lease obligations and other financing-type obligations. Long-term debt matures as follows: Fiscal Year 2020 $ 48.6 2021 101.3 2022 187.4 2023 8.8 2024 8.8 2025 & beyond 32.8 Total $ 387.7 The Company maintains a credit agreement with a syndicate of banks that provides for both U.S. dollar- and euro-denominated term loan facilities and a multi-currency $175.0 million revolving credit facility expiring in November 2021. Based upon the terms of the credit agreement and currency denomination, borrowings under both the term loans and revolving credit facility bear interest at a variable rate, primarily either the London Interbank Offered Rate (“LIBOR”) or Euro Interbank Offered Rate (“EURIBOR”), plus 137.5 to 250 basis points depending on the Company’s leverage ratio, as described below. At March 31, 2019, the weighted-average interest rates for the outstanding term loans and the revolving credit facility borrowings were 3.3 percent and 3.7 percent, respectively. At March 31, 2019 and 2018, the Company reported its revolving credit facility borrowings of $47.1 million and $21.3 million, respectively, as short-term debt on the consolidated balance sheets. At March 31, 2019, domestic letters of credit totaled $4.3 million, resulting in available borrowings under the Company’s revolving credit facility of $123.6 million. The Company also maintains credit agreements for its foreign subsidiaries, with outstanding short-term borrowings at March 31, 2019 and 2018 of $18.9 million and $31.9 million, respectively. Provisions in the Company’s credit agreement, Senior Note agreements, and various foreign credit agreements require the Company to maintain compliance with various covenants and include certain cross-default clauses. Under its primary debt agreements in the U.S., the Company has provided liens on substantially all domestic assets. In addition, as specified in the credit agreement, the term loans may require prepayments in the event the Company’s annual excess cash flow exceeds defined levels, depending upon the Company’s leverage ratio, or in the event of certain asset sales. The Company is also subject to leverage ratio covenants, the most restrictive of which requires the Company to limit its consolidated indebtedness, less a portion of its cash balance, both as defined by the credit agreements, to no more than three and one-quarter times consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”). The Company is also subject to an interest expense coverage ratio covenant, which requires the Company to maintain Adjusted EBITDA of at least three times consolidated interest expense. The Company was in compliance with its debt covenants as of March 31, 2019. The Company estimates the fair value of long-term debt using discounted future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. As of March 31, 2019 and 2018, the carrying value of the Company’s long-term debt approximated fair value, with the exception of the Senior Notes, which had an aggregate fair value of approximately $137.2 million and $153.1 million, respectively. The fair value of the Company’s long-term debt is categorized as Level 2 within the fair value hierarchy. Refer to Note 4 for the definition of a Level 2 fair value measurement. |
Pension and Employee Benefit Pl
Pension and Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2019 | |
Pension and Employee Benefit Plans [Abstract] | |
Pension and Employee Benefit Plans | Note 18: Pension and Employee Benefit Plans Defined Contribution Employee Benefit Plans: The Company maintains a domestic 401(k) plan that allows employees to contribute a portion of their salary to help them save for retirement. The Company currently matches employee contributions up to 4.5 percent of their compensation for participants. The Company’s expense for defined contribution employee benefit plans during fiscal 2019, 2018, and 2017 was $6.4 million, $5.2 million, and $4.7 million, respectively. In addition, the Company maintains non-qualified deferred compensation plans for eligible employees, and various non-U.S. subsidiaries have government-required defined contribution plans in place, under which they contribute a percentage of employee earnings into accounts, consistent with local laws. Statutory Termination Plans: Certain non-U.S. subsidiaries have statutory termination indemnity plans covering eligible employees. The benefits under these plans are based upon years of service and final average compensation levels or a monthly retirement benefit amount. These programs are substantially unfunded in accordance with local laws. Defined Benefit Employee Benefit Plans: Pension plans: The Company contributed $8.0 million, $13.4 million, and $8.1 million to its U.S. pension plans during fiscal 2019, 2018, and 2017, respectively. In addition, the Company contributed $5.9 million, $2.6 million, and $1.4 million to its non-U.S. pension plans during fiscal 2019, 2018, and 2017, respectively. These contributions are reported in the change in other liabilities in the consolidated statements of cash flows. Postretirement plans Measurement date: Changes in benefit obligations and plan assets, as well as the funded status of the Company’s global pension plans, were as follows: Years ended March 31, 2019 2018 Change in benefit obligation: Benefit obligation at beginning of year $ 273.6 $ 269.8 Service cost 0.5 0.5 Interest cost 9.6 9.9 Actuarial loss 1.7 4.4 Benefits paid (22.8 ) (16.9 ) Curtailment gain (a) - (0.3 ) Effect of exchange rate changes (3.8 ) 6.2 Benefit obligation at end of year $ 258.8 $ 273.6 Change in plan assets: Fair value of plan assets at beginning of year $ 157.7 $ 148.2 Actual return on plan assets 6.3 10.4 Benefits paid (22.8 ) (16.9 ) Employer contributions 13.9 16.0 Fair value of plan assets at end of year $ 155.1 $ 157.7 Funded status at end of year $ (103.7 ) $ (115.9 ) Amounts recognized in the consolidated balance sheets: Current liability $ (2.0 ) $ (6.3 ) Noncurrent liability (101.7 ) (109.6 ) $ (103.7 ) $ (115.9 ) (a) During fiscal 2018, the Company recorded a pension curtailment gain associated with the closure of a manufacturing facility in Austria (CIS segment). See Note 6 for additional information regarding the closure of this facility. As of March 31, 2019, 2018, and 2017, the benefit obligation associated with the Company’s non-U.S. pension plans totaled $36.5 million, $43.4 million, and $39.3 million respectively. In fiscal 2019, the $6.9 million decrease primarily resulted from employer contributions of $5.9 million for benefits paid to plan participants during the year and the impact of foreign currency exchange rate changes, partially offset by service and interest cost totaling $1.1 million. In fiscal 2018, the $4.1 million increase primarily resulted from the impact of foreign currency exchange rate changes and service and interest cost totaling $1.3 million, partially offset by $2.6 million of benefits paid to plan participants. The accumulated benefit obligation for pension plans was $256.9 million and $271.8 million as of March 31, 2019 and 2018, respectively. The net actuarial loss related to the pension plans recognized in accumulated other comprehensive loss was $159.1 million and $157.9 million as of March 31, 2019 and 2018, respectively. Costs for the Company’s global pension plans included the following components: Years ended March 31, 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 0.5 $ 0.5 $ 0.6 Interest cost 9.6 9.9 9.8 Expected return on plan assets (12.3 ) (11.9 ) (12.3 ) Amortization of net actuarial loss 5.6 5.6 5.6 Settlements (a) 0.2 0.3 - Curtailment gain (a) - (0.3 ) - Net periodic benefit cost $ 3.6 $ 4.1 $ 3.7 Other changes in benefit obligation recognized in other comprehensive income (loss): Net actuarial loss $ (7.7 ) $ (5.8 ) $ (1.0 ) Amortization of net actuarial loss 5.8 5.9 5.6 Total recognized in other comprehensive income (loss) $ (1.9 ) $ 0.1 $ 4.6 (a) The settlement charges and curtailment gain resulted from activity associated with the Company’s non-U.S. pension plans. The Company amortized $5.6 million of net actuarial loss in fiscal 2019, 2018, and 2017. In each of these years, less than $1.0 million of the amortization was attributable to the Company’s non-U.S. pension plans. The Company estimates $6.0 million of net actuarial loss for its pension plans will be amortized from accumulated other comprehensive loss into net periodic benefit cost during fiscal 2020. The fiscal 2020 estimated amortization includes less than $1.0 million related to the Company’s non-U.S. pension plans. The Company used a discount rate of 4.0% as of both March 31, 2019 and 2018 for determining its benefit obligations under its U.S. pension plans. The Company used a weighted-average discount rate of 1.4% and 1.7% as of March 31, 2019 and 2018, respectively, for determining its benefit obligations under its non-U.S. pension plans. The Company used a discount rate of 4.0%, 4.1%, and 4.1% to determine its costs under its U.S. pension plans for fiscal 2019, 2018, and 2017, respectively. The Company used a weighted-average discount rate of 1.9%, 1.9%, and 1.7% to determine its costs under its non-U.S. pension plans for fiscal 2019, 2018, and 2017, respectively. The Company determined the discount rates used for its U.S. pension plans by modeling a portfolio of high-quality corporate bonds, with appropriate consideration given to expected defined benefit payment terms and duration of the respective pension obligations. The Company used a similar process to determine the discount rate for its non-U.S. pension obligations. Plan assets in the Company’s U.S. pension plans comprise 100 percent of the Company’s world-wide pension plan assets. The Company’s U.S. pension plan weighted-average asset allocations were as follows: March 31, 2019 March 31, 2018 Target allocation Plan assets Target allocation Plan assets Equity securities 65 % 66 % 60 % 58 % Debt securities 21 % 19 % 38 % 38 % Real estate investments 13 % 12 % - - Cash and cash equivalents 1 % 3 % 2 % 4 % 100 % 100 % 100 % 100 % Due to market conditions and other factors, including timing of benefit payments and other transactions, actual asset allocation may vary from the target allocation outlined above. The Company periodically rebalances the assets to the target allocations. As of March 31, 2019 and 2018, the Company’s pension plans did not directly own shares of Modine common stock. The Company employs a total return investment approach, whereby a mix of investments are used to maximize the long-term growth of principal, while avoiding excessive risk. The Company has established pension plan guidelines based upon an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. The Company measures and monitors investment risk on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability studies. The expected rate of return on U.S. plan assets is based upon historical return experience and forward-looking return expectations for major asset class categories. For fiscal 2019, 2018, and 2017 U.S. pension plan expense, the expected rate of return on plan assets was 7.5 percent, 7.5 percent and 8.0 percent, respectively. For fiscal 2020 U.S. pension plan expense, the Company has assumed a rate of return on plan assets of 7.5 percent. The Company’s funding policy for its U.S. pension plans is to contribute annually, at a minimum, the amount necessary on an actuarial basis to provide for benefits in accordance with applicable laws and regulations. The Company expects to contribute approximately $3.0 million to these plans during fiscal 2020. Estimated pension benefit payments for the next ten fiscal years are as follows: Fiscal Year Estimated Pension Benefit Payments 2020 $ 16.0 2021 16.0 2022 16.4 2023 16.4 2024 16.6 2025-2029 82.0 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 19: Derivative Instruments The Company uses derivative financial instruments from time to time as a tool to manage certain financial risks. The Company’s policy prohibits the use of leveraged derivatives. Accounting for derivatives and hedging activities requires derivative financial instruments to be measured at fair value and recognized as assets or liabilities in the consolidated balance sheets. Accounting for the gain or loss resulting from the change in fair value of the derivative financial instruments depends on whether it has been designated as a hedge, and, if so, on the nature of the hedging activity. Commodity derivatives Foreign exchange contracts The fair value of the Company’s derivative financial instruments recorded in the consolidated balance sheets were as follows: Balance Sheet Location March 31, 2019 March 31, 2018 Derivatives designated as hedges: Commodity derivatives Other current assets $ 0.6 $ 0.1 Commodity derivatives Other current liabilities 0.3 - Foreign exchange contracts Other current assets 0.2 0.1 Derivatives not designated as hedges: Commodity derivatives Other current liabilities $ - $ 0.2 Foreign exchange contracts Other current assets - 0.2 Foreign exchange contracts Other current liabilities 0.5 0.6 The amounts associated with derivative financial instruments that the Company designated for hedge accounting were as follows: Gain (loss) recognized in Statement of Operations Gain (loss) reclassified 2019 2018 2017 Location 2019 2018 2017 Commodity derivatives $ (0.3 ) $ 0.2 $ - Cost of sales $ (0.4 ) $ - $ - Foreign exchange contracts (0.4 ) 0.1 - Net sales (0.4 ) 0.1 - Foreign exchange contracts 1.0 - - Cost of sales 0.6 - - Total gains (losses) $ 0.3 $ 0.3 $ - $ (0.2 ) $ 0.1 $ - The amounts associated with derivative financial instruments that the Company did not designate for hedge accounting were as follows: Years ended March 31, Statement of Operations Location 2019 2018 2017 Commodity derivatives Cost of sales $ - $ 0.4 $ 0.5 Foreign exchange contracts Net sales (0.7 ) (0.1 ) - Foreign exchange contracts Other income (expense) - net (0.3 ) (0.5 ) 1.3 Total gains (losses) $ (1.0 ) $ (0.2 ) $ 1.8 |
Contingencies and Litigation
Contingencies and Litigation | 12 Months Ended |
Mar. 31, 2019 | |
Contingencies and Litigation [Abstract] | |
Contingencies and Litigation | Note 20: Contingencies and Litigation Market Risk The Company sells a broad range of products that provide thermal solutions to customers operating primarily in the automotive, commercial vehicle, off-highway, and commercial, industrial, and building HVAC&R markets. The Company operates in diversified markets as a strategy for offsetting the risk associated with a downturn in any one or more of the markets it serves. The Company pursues new market opportunities after careful consideration of the potential associated risks and benefits. However, the risk associated with market downturns is still present. Credit Risk The Company invests excess cash primarily in investment quality, short-term liquid debt instruments. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of accounts receivable. The Company sells a broad range of products that provide thermal solutions to customers operating throughout the world. In fiscal 2019, 2018, and 2017, two VTS segment customers each accounted for ten percent or more of the Company’s total sales. Sales to the Company’s top ten customers were 50 percent, 48 percent, and 54 percent of total sales in fiscal 2019, 2018, and 2017, respectively. At March 31, 2019 and 2018, 38 percent and 36 percent, respectively, of the Company’s trade accounts receivable were due from the Company’s top ten customers. These customers operate primarily in the automotive, commercial vehicle, off-highway, data center cooling and commercial air conditioning markets, which are influenced by similar market and general economic factors. Collateral or advanced payments are generally not required. The Company has not experienced significant credit losses to customers in the markets served. The Company manages credit risk through its focus on the following: • Cash and investments – reviewing cash deposits and short-term investments to ensure banks have credit ratings acceptable to the Company and that short-term investments are maintained in secured or guaranteed instruments; • Accounts receivable – performing periodic customer credit evaluations and actively monitoring their financial condition and applicable business news; • Pension assets – ensuring that investments within pension plans provide appropriate diversification, monitoring of investment teams, ensuring that portfolio managers adhere to the Company’s investment policies and directives, and ensuring that exposure to high risk investments is limited; and • Insurance – ensuring that insurance providers maintain financial ratings that are acceptable to the Company. Counterparty Risk The Company manages counterparty risk through its focus on the following: • Customers – performing thorough reviews of customer credit reports and accounts receivable aging reports by internal credit committees; • Suppliers – maintaining a supplier risk management program and utilizing industry sources to identify and mitigate high risk situations; and • Derivatives – ensuring that counterparties to derivative instruments maintain credit ratings that are acceptable to the Company. Environmental The Company has recorded environmental investigation and remediation accruals related to soil and groundwater contamination at manufacturing facilities in the United States, one of which the Company currently owns and operates, and at its former manufacturing facility in the Netherlands, along with accruals for lesser environmental matters at certain other facilities in the United States and Brazil. These accruals generally relate to facilities where past operations followed practices and procedures that were considered acceptable under then-existing regulations, or where the Company is a successor to the obligations of prior owners, and current laws and regulations require investigative and/or remedial work to ensure sufficient environmental compliance. The accruals for these environmental matters totaled $18.9 million and $16.7 million at March 31, 2019 and 2018, respectively. As additional information becomes available, the Company will re-assess the liabilities related to these matters and revise the estimated accruals, if necessary. Based upon currently available information, the Company believes the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on its financial position. However, these matters are subject to inherent uncertainties, and unfavorable outcomes could occur, including significant monetary damages. Other Litigation In the normal course of business, the Company and its subsidiaries are named as defendants in various lawsuits and enforcement proceedings by private parties, governmental agencies and/or others in which claims are asserted against Modine. In the opinion of management, the liabilities, if any, which may ultimately result from such lawsuits or proceedings are not expected to have a material adverse effect on the Company’s financial position. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 21: Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss were as follows: Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Balance, March 31, 2018 $ (5.5 ) $ (134.9 ) $ 0.1 $ (140.3 ) Other comprehensive income (loss) before reclassifications (37.9 ) (7.1 ) 0.3 (44.7 ) Reclassifications: Amortization of unrecognized net loss (a) - 5.4 - 5.4 Foreign currency translation losses (b) 0.8 - - 0.8 Realized losses - net (c) - - 0.2 0.2 Income taxes - 0.3 (0.1 ) 0.2 Total other comprehensive income (loss) (37.1 ) (1.4 ) 0.4 (38.1 ) Balance, March 31, 2019 $ (42.6 ) $ (136.3 ) $ 0.5 $ (178.4 ) Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Balance, March 31, 2017 $ (46.8 ) $ (135.0 ) $ - $ (181.8 ) Other comprehensive income (loss) before reclassifications 41.3 (5.7 ) 0.3 35.9 Reclassifications: Amortization of unrecognized net loss (a) - 5.6 - 5.6 Realized gains - net (c) - - (0.1 ) (0.1 ) Income taxes - 0.2 (0.1 ) 0.1 Total other comprehensive income 41.3 0.1 0.1 41.5 Balance, March 31, 2018 $ (5.5 ) $ (134.9 ) $ 0.1 $ (140.3 ) (a) Amounts are included in the calculation of net periodic benefit cost for the Company’s defined benefit plans, which include pension and other postretirement plans. See Note 18 for additional information about the Company’s pension plans. (b) As a result of the sale of a business in South Africa during fiscal 2019, the Company wrote-off $0.8 million of accumulated foreign currency translation losses. See Note 1 for additional information about this transaction. (c) Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. See Note 19 for additional information regarding derivative instruments. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Mar. 31, 2019 | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | Note 22: Segment and Geographic Information The Company’s product lines consist of heat-transfer components and systems. The Company serves vehicular and commercial, industrial, and building HVAC&R markets. In November 2016, the Company acquired Luvata HTS and, commencing from the acquisition date, has operated and reported results for the acquired business as its CIS segment. See Note 2 for additional information regarding the Luvata HTS acquisition. Effective April 1, 2018, the Company formed the VTS segment by combining its Americas, Europe, and Asia operations to enable it to operate as a more global, product-based organization. The Company also merged its Americas coils business into the CIS segment to accelerate operational improvements and organizational efficiencies. The Company began reporting financial results for its new segments beginning in fiscal 2019. Segment financial information for fiscal 2018 and 2017 has been recast to conform to the fiscal 2019 presentation. The Company’s VTS segment represents its vehicular business and primarily serves the automotive, commercial vehicle, and off-highway markets. In addition, the VTS segment serves the automotive and commercial vehicle aftermarket in Brazil. The Company’s CIS segment provides coils, coolers, and coating solutions to customers throughout the world. The Company’s BHVAC segment provides heating, ventilating and air conditioning products to customers throughout the world. Each operating segment is managed by a vice president and has separate financial results reviewed by the Company’s chief operating decision maker. These results are used by management in evaluating the performance of each segment and in making decisions on the allocation of resources among the Company’s various businesses. The following is a summary of net sales, gross profit, and operating income by segment: Year ended March 31, 2019 External Sales Inter-segment Sales Total Net sales: VTS $ 1,298.9 $ 52.8 $ 1,351.7 CIS 704.7 2.9 707.6 BHVAC 209.1 3.3 212.4 Segment total 2,212.7 59.0 2,271.7 Corporate and eliminations - (59.0 ) (59.0 ) Net sales $ 2,212.7 $ - $ 2,212.7 Year ended March 31, 2018 External Sales Inter-segment Sales Total Net sales: VTS $ 1,239.3 $ 56.4 $ 1,295.7 CIS 674.4 1.3 675.7 BHVAC 189.4 1.8 191.2 Segment total 2,103.1 59.5 2,162.6 Corporate and eliminations - (59.5 ) (59.5 ) Net sales $ 2,103.1 $ - $ 2,103.1 Year ended March 31, 2017 External Sales Inter-segment Sales Total Net sales: VTS $ 1,099.9 $ 52.3 $ 1,152.2 CIS 231.5 0.3 231.8 BHVAC 171.6 - 171.6 Segment total 1,503.0 52.6 1,555.6 Corporate and eliminations - (52.6 ) (52.6 ) Net sales $ 1,503.0 $ - $ 1,503.0 Inter-segment sales are accounted for based upon an established markup over production costs. Net sales for Corporate and eliminations primarily represent the elimination of inter-segment sales. Years ended March 31, 2019 2018 2017 Gross profit: $’s % of sales $’s % of sales $’s % of VTS $ 186.9 13.8 % $ 201.0 15.5 % $ 182.0 15.8 % CIS 114.9 16.2 % 97.8 14.5 % 32.2 13.9 % BHVAC 63.4 29.9 % 58.0 30.3 % 47.8 27.8 % Segment total 365.2 16.1 % 356.8 16.5 % 262.0 16.8 % Corporate and eliminations (a) 0.3 - (0.3 ) - (7.6 ) - Gross profit $ 365.5 16.5 % $ 356.5 17.0 % $ 254.4 16.9 % Years ended March 31, Operating income: 2019 2018 2017 VTS $ 64.8 $ 84.2 $ 68.4 CIS 53.4 28.5 10.9 BHVAC 26.9 20.3 13.2 Segment total 145.1 133.0 92.5 Corporate and eliminations (a) (35.4 ) (40.8 ) (50.2 ) Operating income $ 109.7 $ 92.2 $ 42.3 (a) During fiscal 2018 and 2017, the Company recorded $4.3 million and $14.8 million, respectively, of costs incurred directly related to the acquisition and integration of Luvata HTS within SG&A expenses at Corporate. During fiscal 2017, the Company recorded $4.3 million in cost of sales related to an inventory purchase accounting adjustment at Corporate, as the impact was excluded from the Company’s measure of segment operating performance. In addition, the operating loss for Corporate includes certain research and development costs, legal, finance and other general corporate and central services expenses, and other costs that are either not directly attributable to an operating segment or not considered when management evaluates segment performance. The following is a summary of total assets by segment: March 31, 2019 2018 VTS $ 749.9 $ 754.8 CIS 604.2 630.2 BHVAC 89.4 88.1 Corporate and eliminations 94.5 100.3 Total assets $ 1,538.0 $ 1,573.4 The following is a summary of capital expenditures and depreciation and amortization expense by segment: Years ended March 31, Capital expenditures: 2019 2018 2017 VTS $ 56.2 $ 61.4 $ 59.5 CIS 16.4 9.0 3.4 BHVAC 1.3 0.6 1.5 Total capital expenditures $ 73.9 $ 71.0 $ 64.4 Years ended March 31, Depreciation and amortization expense: 2019 2018 2017 VTS $ 49.5 $ 48.2 $ 46.2 CIS 23.9 24.3 7.9 BHVAC 3.5 4.2 4.2 Total depreciation and amortization expense $ 76.9 $ 76.7 $ 58.3 The following is a summary of net sales by geographical area, based upon the location of the selling unit: Years ended March 31, 2019 2018 2017 United States $ 1,032.3 $ 911.4 $ 657.8 Italy 217.3 211.5 94.4 China 172.1 156.0 73.7 Hungary 165.6 153.9 145.6 Germany 123.1 132.6 130.1 Austria 116.2 151.7 125.2 Other 386.1 386.0 276.2 Net sales $ 2,212.7 $ 2,103.1 $ 1,503.0 The following is a summary of property, plant and equipment by geographical area: March 31, 2019 2018 United States $ 117.7 $ 121.5 China 57.6 49.6 Mexico 56.3 49.4 Hungary 55.3 59.3 Italy 52.4 62.0 Austria 36.9 42.8 Germany 32.8 37.2 Other 75.7 82.5 Total property, plant and equipment $ 484.7 $ 504.3 The following is a summary of net sales by end market: Years ended March 31, 2019 2018 2017 Commercial HVAC&R $ 674.0 $ 648.3 $ 323.8 Automotive 542.8 526.0 461.0 Commercial vehicle 387.6 381.7 382.5 Off-highway 314.1 271.2 202.8 Data center cooling 187.0 137.6 57.1 Industrial cooling 47.8 67.6 18.6 Other 59.4 70.7 57.2 Net sales $ 2,212.7 $ 2,103.1 $ 1,503.0 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 23: Quarterly Financial Data (Unaudited) The following is a summary of quarterly financial data: Fiscal 2019 quarters ended June Sept. Dec. March Fiscal 2019 Net sales $ 566.1 $ 548.9 $ 541.0 $ 556.7 $ 2,212.7 Gross profit 94.3 87.9 91.7 91.6 365.5 Net earnings (a) 22.5 38.7 18.3 6.4 85.9 Net earnings attributable to Modine (a) 22.0 38.5 18.0 6.3 84.8 Net earnings per share attributable to Modine shareholders: Basic $ 0.43 $ 0.76 $ 0.36 $ 0.12 $ 1.67 Diluted 0.43 0.75 0.35 0.12 1.65 Fiscal 2018 quarters ended June Sept. Dec. March Fiscal 2018 Net sales $ 515.5 $ 508.3 $ 512.7 $ 566.6 $ 2,103.1 Gross profit 88.5 86.1 85.4 96.5 356.5 Net earnings (loss) (b) 17.4 16.3 (27.9 ) 18.0 23.8 Net earnings (loss) attributable to Modine (b) 17.0 15.9 (28.3 ) 17.6 22.2 Net earnings (loss) per share attributable to Modine shareholders: Basic $ 0.34 $ 0.32 $ (0.57 ) $ 0.35 $ 0.44 Diluted 0.34 0.31 (0.57 ) 0.34 0.43 (a) During fiscal 2019, restructuring expenses totaled $0.2 million, $0.5 million, and $8.9 million for the quarters ended June 30, 2018, December 31, 2018, and March 31, 2019, respectively (see Note 6). During the second quarter of fiscal 2019, the Company sold its South African business within the BHVAC segment and, as a result, recorded a loss of $1.7 million (see Note 1). During the third quarter of fiscal 2019, the Company recorded a $0.4 million impairment charge related to a manufacturing facility in Austria (see Note 6). The Company’s income tax benefit for fiscal 2019 includes net benefits of $24.4 million and net charges of $2.2 million in the second and third quarters, respectively, related to the Tax Act and the recognition of foreign tax credits (see Note 8). During fiscal 2019, the Company adjusted its valuation allowances on deferred tax assets related to two separate subsidiaries in China and, as a result, recorded a $2.0 million income tax benefit and a $1.0 million income tax charge in the first and second quarters, respectively (see Note 8). (b) During fiscal 2018, restructuring expenses totaled $1.7 million, $0.4 million, $9.4 million, and $4.5 million for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017, and March 31, 2018, respectively (see Note 6). During the third quarter of fiscal 2018, the Company recorded a $1.3 million asset impairment charge related to a manufacturing facility in Austria (see Note 6). During the fourth quarter of fiscal 2018, the Company recorded a $1.2 million impairment charge related to intangible assets (see Note 14). The Company recorded income tax charges totaling $35.7 million and $2.3 million during the third and fourth quarters of fiscal 2018, respectively, related to the Tax Act (see Note 8). During the fourth quarter of fiscal 2018, the Company reversed a portion of a valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded an income tax benefit of $2.8 million (see Note 8). |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2019 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II For the years ended March 31, 2019, 2018 and 2017 (In millions) Additions Description Balance at Beginning of Period Charged (Benefit) to Costs and Expenses Charged to Other Accounts Balance at End of Period 2019: Valuation Allowance for Deferred Tax Assets $ 48.9 $ (1.6 ) $ (3.9 ) (a) $ 43.4 2018: Valuation Allowance for Deferred Tax Assets $ 49.6 $ (6.7 ) $ 6.0 (a) $ 48.9 2017: Valuation Allowance for Deferred Tax Assets $ 50.8 $ (0.3 ) $ (0.9 ) (a) $ 49.6 (a) Foreign currency translation and other adjustments. The fiscal 2018 and 2017 amounts also included increases associated with the Company’s acquisition of Luvata HTS. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Nature of operations | Nature of operations: |
Sale of AIAC Air Conditioning South Africa (Pty) Ltd. | Sale of AIAC Air Conditioning South Africa (Pty) Ltd. |
Acquisition of Luvata HTS | Acquisition of Luvata HTS: |
Basis of presentation | Basis of presentation: |
Consolidation principles | Consolidation principles: The Company accounts for investments in non-consolidated affiliated companies in which its ownership is 20 percent or more using the equity method. The Company states these investments at cost, plus or minus a proportionate share of undistributed net earnings. The Company includes Modine’s share of the affiliate’s net earnings in other income and expense. See Note 13 for additional information. |
Revenue recognition | Revenue recognition: |
Shipping and handling costs | Shipping and handling costs: |
Trade accounts receivable | Trade accounts receivable: |
Warranty | Warranty: |
Tooling costs | Tooling costs: |
Stock-based compensation | Stock-based compensation: |
Research and development | Research and development: |
Translation of foreign currencies | Translation of foreign currencies: |
Derivative instruments | Derivative instruments: |
Income taxes | Income taxes: |
Earnings per share | Earnings per share: |
Cash and cash equivalents | Cash and cash equivalents: |
Short-term investments | Short-term investments: |
Inventories | Inventories: |
Property, plant and equipment | Property, plant and equipment |
Goodwill | Goodwill: |
Impairment of long-lived assets | Impairment of long-lived assets: |
Assets held for sale | Assets held for sale: |
Deferred compensation trusts | Deferred compensation trusts: |
Self-insurance reserves | Self-insurance reserves: |
Environmental liabilities | Environmental liabilities: |
Supplemental cash flow information | S upplemental cash flow information: Years ended March 31, 2019 2018 2017 Interest paid $ 22.3 $ 23.4 $ 15.4 Income taxes paid 22.2 20.1 12.7 |
New Accounting Guidance | New Accounting Guidance: Stock-based Compensation In March 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance to simplify several aspects of accounting for stock-based payment transactions. The Company adopted this guidance beginning in its first quarter of fiscal 2018. The Company elected to account for forfeitures in the period in which they occur and recorded a cumulative-effect adjustment to equity. In addition, the Company prospectively adopted the guidance requiring all excess tax benefits or deficiencies to be recognized as income tax expense or benefit when share-based awards are settled. The provisions of this guidance did not have a material impact on the Company’s consolidated financial statements. As a result of adopting this new guidance, the Company recorded a $0.4 million increase to both deferred tax assets and equity as of April 1, 2017. Revenue Recognition In May 2014, the FASB issued new guidance that outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the new guidance is that companies are to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements intended to provide users of financial statements with comprehensive information about revenue arising from contracts with customers. The Company adopted this new guidance for fiscal 2019 using the modified-retrospective transition method. The Company assessed customer contracts and evaluated contractual provisions in light of the new guidance. Through its evaluation process, the Company identified a limited number of customer contracts that provide an enforceable right to payment for customized products, which require revenue recognition prior to the product being shipped to the customer. As a result of its adoption of the new guidance, the Company recorded an increase of $0.7 million to retained earnings as of April 1, 2018, along with related balance sheet reclassifications. The increase to retained earnings represented $3.0 million of net sales that, had the new guidance been in effect, the Company would have recognized as of March 31, 2018. See Note 3 for additional information regarding revenue recognition. Income Taxes: Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued new guidance related to income tax accounting for intercompany asset transfers. This new guidance requires companies to recognize the income tax effects of intercompany asset transfers other than inventory at the transaction date. The income tax effects of these transfers were previously deferred. The Company adopted this new guidance for fiscal 2019 using the modified-retrospective transition method. Upon adoption, the Company recorded a decrease to retained earnings of $8.3 million as of April 1, 2018. Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued new guidance that requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending balances presented within the statement of cash flows. The Company adopted this new guidance for fiscal 2019 using the retrospective transition method. As a result, all prior period information has been recast to be comparable to the new presentation requirements. See Note 10 for information regarding the Company’s restricted cash. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued new guidance related to the accounting for certain stranded income tax effects in accumulated other comprehensive income (loss) resulting from tax reform legislation that was enacted in the U.S. in December 2017. This guidance is effective for the Company as of April 1, 2019 and provides the option to reclassify stranded income tax effects to retained earnings. The Company has determined it will not reclassify stranded income tax effects upon adoption, and therefore, this guidance will not impact its consolidated financial statements. Leases In February 2016, the FASB issued new comprehensive lease accounting guidance that supersedes existing lease accounting guidance and requires balance sheet recognition for most leases. The Company will adopt this guidance effective April 1, 2019 using a modified-retrospective transition method, under which it expects to elect not to adjust comparative periods. The Company intends to elect the package of practical expedients permitted under the new guidance, and, as a result, the Company has not reassessed the classification of existing leases or initial direct costs thereof, or whether existing contracts contain leases. In addition, the Company plans to elect accounting policies to not record short-term leases on the balance sheet and to not separate lease and non-lease components. The Company does not intend to elect the hindsight practical expedient. The Company has completed its assessment of its global lease portfolio and is in the process of finalizing the testing of its new lease accounting software solution and implementing new processes and controls to account for leases in accordance with the new guidance. The Company’s most significant leases represent leases of real estate, such as manufacturing facilities, warehouses, and office buildings. In addition, the Company leases certain manufacturing and IT equipment and vehicles. Upon adoption of this new guidance, the Company expects to recognize $60.0 to $70.0 million of right-of-use assets and corresponding lease liabilities on its consolidated balance sheet. The Company does not expect the adoption will have a material impact on its consolidated statements of operations or consolidated statements of cash flows. The cumulative effects on the Company’s consolidated balance sheet, as of April 1, 2018, resulting from the adoption of new accounting guidance were as follows: Adjustments Due to New Accounting Guidance Balance as of March 31, 2018 Revenue Recognition Intra-entity Transfers of Assets Balance as of April 1, 2018 ASSETS Inventories $ 191.3 $ (2.0 ) $ - $ 189.3 Other current assets 70.1 3.0 (8.3 ) 64.8 Deferred income taxes 96.9 (0.2 ) - 96.7 LIABILITIES AND SHAREHOLDERS’ EQUITY Deferred income taxes $ 9.9 $ 0.1 $ - $ 10.0 Retained earnings 394.9 0.7 (8.3 ) 387.3 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Supplemental Cash Flow Information | S upplemental cash flow information: Years ended March 31, 2019 2018 2017 Interest paid $ 22.3 $ 23.4 $ 15.4 Income taxes paid 22.2 20.1 12.7 |
Adjustments Due to New Accounting Guidance | The cumulative effects on the Company’s consolidated balance sheet, as of April 1, 2018, resulting from the adoption of new accounting guidance were as follows: Adjustments Due to New Accounting Guidance Balance as of March 31, 2018 Revenue Recognition Intra-entity Transfers of Assets Balance as of April 1, 2018 ASSETS Inventories $ 191.3 $ (2.0 ) $ - $ 189.3 Other current assets 70.1 3.0 (8.3 ) 64.8 Deferred income taxes 96.9 (0.2 ) - 96.7 LIABILITIES AND SHAREHOLDERS’ EQUITY Deferred income taxes $ 9.9 $ 0.1 $ - $ 10.0 Retained earnings 394.9 0.7 (8.3 ) 387.3 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Acquisition [Abstract] | |
Allocation of Purchase Price | The Company’s allocation of the purchase price for its acquisition of Luvata HTS was as follows: Cash and cash equivalents $ 27.4 Trade accounts receivable 86.1 Inventories 55.0 Property, plant and equipment 120.4 Intangible assets 130.2 Goodwill 151.9 Other assets 39.1 Accounts payable (73.7 ) Accrued compensation and employee benefits (24.3 ) Deferred income taxes (39.5 ) Pensions (14.3 ) Other liabilities (42.7 ) Purchase price $ 415.6 |
Supplemental Pro Forma Information | This pro forma financial information is presented for illustrative purposes only and is not considered to be indicative of the operating results that would have been achieved had the acquisition been completed as of the date indicated. Year ended March 31, 2017 Net sales $ 1,881.6 Net earnings attributable to Modine 35.8 Net earnings per share attributable to Modine shareholders: Basic $ 0.72 Diluted 0.71 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The table below presents revenue to external customers for each of the Company’s business segments by primary end market, by geographic location and based upon the timing of revenue recognition: Year ended March 31, 2019 VTS CIS BHVAC Segment Total Primary end market: Automotive $ 542.8 $ - $ - $ 542.8 Commercial vehicle 387.6 - - 387.6 Off-highway 314.1 - - 314.1 Commercial HVAC&R - 506.3 167.7 674.0 Data center cooling - 145.7 41.3 187.0 Industrial cooling - 47.8 - 47.8 Other 107.2 7.8 3.4 118.4 Net sales $ 1,351.7 $ 707.6 $ 212.4 $ 2,271.7 Geographic location: Americas $ 613.7 $ 413.6 $ 124.9 $ 1,152.2 Europe 538.2 244.8 87.5 870.5 Asia 199.8 49.2 - 249.0 Net sales $ 1,351.7 $ 707.6 $ 212.4 $ 2,271.7 Timing of revenue recognition: Products transferred at a point in time $ 1,308.5 $ 571.1 $ 212.4 $ 2,092.0 Products transferred over time 43.2 136.5 - 179.7 Net sales $ 1,351.7 $ 707.6 $ 212.4 $ 2,271.7 |
Contract Assets and Contract Liabilities from Contracts with Customers | Contract assets and contract liabilities from contracts with customers were as follows: March 31, 2019 March 31, 2018 Contract assets $ 22.6 $ 13.5 Contract liabilities 4.0 6.8 |
Impacts of Adopting New Accounting Guidance | The impacts from the adoption of the new revenue recognition guidance to the Company’s consolidated statement of operations for the year ended March 31, 2019 and its consolidated balance sheet as of March 31, 2019 were as follows: Year ended March 31, 2019 As Reported Impact of New Results Without Impact of New Accounting Guidance Net sales $ 2,212.7 $ (4.4 ) $ 2,208.3 Net earnings attributable to Modine 84.8 (2.0 ) 82.8 Net earnings per share attributable to Modine shareholders: Basic $ 1.67 $ (0.04 ) $ 1.63 Diluted 1.65 (0.04 ) 1.61 March 31, 2019 As Reported Impact of New Accounting Guidance Balances Without Impact of New Accounting Guidance ASSETS Inventories $ 200.7 $ 3.8 $ 204.5 Other current assets 65.8 (7.4 ) 58.4 Deferred income taxes 97.1 0.6 97.7 LIABILITIES AND SHAREHOLDERS’ EQUITY Deferred income taxes $ 8.2 $ (0.3 ) $ 7.9 Retained earnings 472.1 (2.7 ) 469.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Schedule of U.S. pension plan assets fair value | Plan assets related to the Company’s pension plans were classified as follows: March 31, 2019 Level 1 Level 2 Total Money market investments $ - $ 3.9 $ 3.9 Corporate bonds - 9.4 9.4 Pooled equity funds 27.7 - 27.7 U.S. government and agency securities - 12.3 12.3 Other 0.1 0.9 1.0 Fair value excluding investments measured at net asset value 27.8 26.5 54.3 Investments measured at net asset value 100.8 Total fair value $ 155.1 March 31, 2018 Level 1 Level 2 Total Money market investments $ - $ 11.4 $ 11.4 Common stocks 9.4 2.6 12.0 Corporate bonds - 9.7 9.7 Pooled equity funds 64.4 - 64.4 Pooled fixed-income funds 27.3 - 27.3 U.S. government and agency securities - 16.2 16.2 Other 0.2 1.7 1.9 Fair value excluding investment measured at net asset value 101.3 41.6 142.9 Investment measured at net asset value 14.8 Total fair value $ 157.7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Assumptions Used in Determining Fair Value of Options | The Company estimated the fair value of option awards on the date of grant using the Black-Scholes option valuation model and the following assumptions: Years ended March 31, 2019 2018 2017 Fair value of options $ 7.81 $ 7.30 $ 4.60 Expected life of awards in years 6.3 6.4 6.4 Risk-free interest rate 2.8 % 1.9 % 1.4 % Expected volatility of the Company’s stock 39.7 % 44.3 % 45.5 % Expected dividend yield on the Company’s stock 0.0 % 0.0 % 0.0 % |
Summary of Stock Option Activity | A summary of stock option activity for fiscal 2019 was as follows: Shares Weighted-average Weighted-average remaining contractual term (years) Aggregate intrinsic value Outstanding, beginning 1.2 $ 11.16 Granted 0.2 17.90 Exercised (0.1 ) 9.93 Forfeited or expired (0.1 ) 14.51 Outstanding, ending 1.2 $ 12.24 5.5 $ 3.3 Exercisable, March 31, 2019 0.8 $ 10.59 4.0 $ 2.9 |
Information Related to Stock Options Exercised | Additional information related to stock options exercised is as follows: Years ended March 31, 2019 2018 2017 Intrinsic value of stock options exercised $ 0.7 $ 4.9 $ 0.5 Proceeds from stock options exercised 1.1 4.3 0.9 |
Summary of Restricted Stock Activity | A summary of restricted stock activity for fiscal 2019 was as follows: Shares Weighted-average price Non-vested balance, beginning 0.6 $ 12.24 Granted 0.3 17.72 Vested (0.3 ) 13.75 Forfeited (0.1 ) 15.03 Non-vested balance, ending 0.5 $ 14.95 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring Activities [Abstract] | |
Restructuring and Repositioning Expenses | Restructuring and repositioning expenses were as follows: Years ended March 31, 2019 2018 2017 Employee severance and related benefits $ 8.7 $ 13.0 $ 5.3 Other restructuring and repositioning expenses 0.9 3.0 5.6 Total $ 9.6 $ 16.0 $ 10.9 |
Changes in Accrued Severance | Changes in accrued severance were as follows: Years ended March 31, 2019 2018 Beginning balance $ 11.0 $ 6.5 Additions 8.7 13.0 Payments (9.1 ) (9.4 ) Effect of exchange rate changes (0.6 ) 0.9 Ending balance $ 10.0 $ 11.0 |
Other Income and Expense (Table
Other Income and Expense (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Other Income and Expense [Abstract] | |
Other Income and Expense | Other income and expense consisted of the following: Years ended March 31, 2019 2018 2017 Equity in earnings of non-consolidated affiliate $ 0.7 $ 0.2 $ 0.1 Interest income 0.4 0.4 0.4 Foreign currency transactions (a) (2.3 ) (0.6 ) (1.9 ) Net periodic benefit cost (b) (2.9 ) (3.3 ) (2.9 ) Total other expense - net $ (4.1 ) $ (3.3 ) $ (4.3 ) (a) Foreign currency transactions primarily consist of foreign currency transaction gains and losses on the re-measurement or settlement of foreign currency-denominated assets and liabilities, including intercompany loans and transactions denominated in a foreign currency, along with gains and losses on foreign currency exchange contracts. (b) Represents net periodic benefit cost, exclusive of service cost, for the Company’s pension and postretirement plans. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Components of Earnings Before Income Taxes | The U.S. and foreign components of earnings before income taxes and the benefit or provision for income taxes consisted of the following: Years ended March 31, 2019 2018 2017 Components of earnings (loss) before income taxes: United States $ 22.4 $ 2.5 $ (8.6 ) Foreign 58.4 60.8 29.4 Total earnings before income taxes $ 80.8 $ 63.3 $ 20.8 Income tax (benefit) provision: Federal: Current $ (20.4 ) $ 11.6 $ 0.1 Deferred (4.2 ) 23.3 (3.8 ) State: Current 0.7 (0.3 ) 0.3 Deferred 1.9 2.0 (0.2 ) Foreign: Current 19.0 16.1 10.1 Deferred (2.1 ) (13.2 ) (0.6 ) Total income tax (benefit) provision $ (5.1 ) $ 39.5 $ 5.9 |
Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Income Tax Rate | The reconciliation between the U.S. federal statutory rate and the Company’s effective tax rate was as follows: Years ended March 31, 2019 2018 2017 Statutory federal tax 21.0 % 31.5 % 35.0 % State taxes, net of federal benefit 3.6 2.9 (3.3 ) Taxes on non-U.S. earnings and losses 3.9 (3.8 ) (3.5 ) Valuation allowances 4.0 (5.6 ) 1.2 Tax credits (26.1 ) (17.3 ) (9.0 ) Compensation (0.1 ) (0.8 ) 2.9 Tax rate or law changes (12.0 ) 60.1 (2.5 ) Uncertain tax positions, net of settlements 0.4 (0.8 ) 5.6 Notional interest deductions (2.5 ) (3.2 ) (8.8 ) Dividend repatriation 1.6 0.2 7.1 Other (0.1 ) (0.8 ) 3.7 Effective tax rate (6.3 %) 62.4 % 28.4 % |
Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that gave rise to deferred tax assets and liabilities were as follows: March 31, 2019 2018 Deferred tax assets: Accounts receivable $ 0.2 $ 0.3 Inventories 3.4 4.1 Plant and equipment 1.8 2.3 Pension and employee benefits 32.7 36.0 Net operating and capital losses 73.5 102.5 Credit carryforwards 60.3 36.7 Other, principally accrued liabilities 10.0 9.9 Total gross deferred tax assets 181.9 191.8 Less: valuation allowances (43.4 ) (48.9 ) Net deferred tax assets 138.5 142.9 Deferred tax liabilities: Plant and equipment 15.1 17.6 Goodwill 4.8 5.2 Intangible assets 28.8 32.4 Other 0.9 0.7 Total gross deferred tax liabilities 49.6 55.9 Net deferred tax assets $ 88.9 $ 87.0 |
Reconciliation of Unrecognized Tax Benefits | Unrecognized tax benefits were as follows: Years ended March 31, 2019 2018 Beginning balance $ 13.6 $ 14.2 Gross increases - tax positions in prior period 1.6 0.8 Gross decreases - tax positions in prior period (a) (0.2 ) (1.2 ) Gross increases - due to acquisition - 1.4 Gross increases - tax positions in current period 1.1 0.5 Settlements (0.1 ) (0.3 ) Lapse of statute of limitations (2.2 ) (1.8 ) Ending balance $ 13.8 $ 13.6 (a) Fiscal 2018 includes $1.0 million related to the reduction of the U.S. federal corporate tax rate as a result of the Tax Act. |
Tax Years Subject to Examination by the Respective Major Tax Jurisdictions | The following tax years remain subject to examination for the Company’s major tax jurisdictions: Germany Fiscal 2011 - Fiscal 2018 Italy Calendar 2014 - Fiscal 2018 United States Fiscal 2016 - Fiscal 2018 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share were as follows: Years ended March 31, 2019 2018 2017 Basic Earnings Per Share: Net earnings attributable to Modine $ 84.8 $ 22.2 $ 14.2 Less: Undistributed earnings attributable to unvested shares (0.4 ) (0.2 ) (0.2 ) Net earnings available to Modine shareholders $ 84.4 $ 22.0 $ 14.0 Weighted-average shares outstanding - basic 50.5 49.9 47.8 Net earnings per share - basic $ 1.67 $ 0.44 $ 0.29 Diluted Earnings Per Share: Net earnings attributable to Modine $ 84.8 $ 22.2 $ 14.2 Less: Undistributed earnings attributable to unvested shares (0.2 ) (0.1 ) (0.1 ) Net earnings available to Modine shareholders $ 84.6 $ 22.1 $ 14.1 Weighted-average shares outstanding - basic 50.5 49.9 47.8 Effect of dilutive securities 0.8 1.0 0.5 Weighted-average shares outstanding - diluted 51.3 50.9 48.3 Net earnings per share - diluted $ 1.65 $ 0.43 $ 0.29 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash and Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash consisted of the following: March 31, 2019 2018 Cash and cash equivalents $ 41.7 $ 39.3 Restricted cash 0.5 1.0 Total cash, cash equivalents and restricted cash $ 42.2 $ 40.3 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Inventories [Abstract] | |
Inventories | Inventories consisted of the following: March 31, 2019 2018 Raw materials $ 122.8 $ 114.4 Work in process 32.2 34.8 Finished goods 45.7 42.1 Total inventories $ 200.7 $ 191.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, including depreciable lives, consisted of the following: March 31, 2019 2018 Land $ 20.7 $ 22.6 Buildings and improvements (10-40 years) 285.9 295.6 Machinery and equipment (3-15 years) 848.7 840.8 Office equipment (3-10 years) 92.0 93.0 Construction in progress 57.4 50.2 1,304.7 1,302.2 Less: accumulated depreciation (820.0 ) (797.9 ) Net property, plant and equipment $ 484.7 $ 504.3 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets | Intangible assets consisted of the following: March 31, 2019 March 31, 2018 Gross Carrying Value Accumulated Amortization Net Intangible Assets Gross Carrying Value Accumulated Amortization Net Intangible Assets Customer relationships $ 61.5 $ (9.1 ) $ 52.4 $ 64.2 $ (5.7 ) $ 58.5 Trade names 58.9 (13.5 ) 45.4 60.6 (10.8 ) 49.8 Acquired technology 23.9 (5.5 ) 18.4 25.2 (3.6 ) 21.6 Total intangible assets $ 144.3 $ (28.1 ) $ 116.2 $ 150.0 $ (20.1 ) $ 129.9 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill, by segment and in the aggregate, were as follows: VTS CIS BHVAC Total Balance, March 31, 2017 $ 0.5 $ 150.9 $ 13.7 $ 165.1 Acquired goodwill (a) - 1.3 - 1.3 Effect of exchange rate changes - 6.1 1.3 7.4 Balance, March 31, 2018 0.5 158.3 15.0 173.8 Effect of exchange rate changes - (4.4 ) (0.9 ) (5.3 ) Balance, March 31, 2019 $ 0.5 $ 153.9 $ 14.1 $ 168.5 (a) Represents measurement-period adjustments related to the Company’s acquisition of Luvata HTS. See Note 2 for additional information about this acquisition. |
Product Warranties, Operating_2
Product Warranties, Operating Leases, and Other Commitments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Product Warranties, Operating Leases, and Other Commitments [Abstract] | |
Changes in Accrued Warranty Costs | Changes in accrued warranty costs were as follows: Years ended March 31, 2019 2018 Beginning balance $ 9.3 $ 10.0 Warranties recorded at time of sale 5.5 6.7 Adjustments to pre-existing warranties 2.2 (0.8 ) Adjustments due to acquisition (a) - (1.0 ) Settlements (7.3 ) (6.2 ) Effect of exchange rate changes (0.5 ) 0.6 Ending balance $ 9.2 $ 9.3 (a) During fiscal 2018, the Company decreased its liability for product warranties by $1.0 million as a result of measurement-period adjustments made in connection with purchase accounting for the acquisition of Luvata HTS. See Note 2 for additional information about this acquisition. |
Future Minimum Rental Commitments under Non-cancelable Operating Leases | Future minimum rental commitments at March 31, 2019 under non-cancelable operating leases were as follows: Fiscal Year 2020 $ 14.2 2021 12.4 2022 9.1 2023 7.1 2024 4.7 2025 and beyond 22.9 Total $ 70.4 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Indebtedness [Abstract] | |
Long-Term Indebtedness | Long-term debt consisted of the following: Fiscal year of maturity March 31, 2019 March 31, 2018 Term loans 2022 $ 238.4 $ 267.8 6.8% Senior Notes 2021 85.0 101.0 5.8% Senior Notes 2027 50.0 50.0 Other (a) - 14.3 12.8 387.7 431.6 Less: current portion (48.6 ) (39.9 ) Less: unamortized debt issuance costs (4.0 ) (5.4 ) Total long-term debt $ 335.1 $ 386.3 (a) Other long-term debt includes borrowings by foreign subsidiaries, capital lease obligations and other financing-type obligations. |
Maturities of Long Term Debt and Capital Lease Obligations | Long-term debt matures as follows: Fiscal Year 2020 $ 48.6 2021 101.3 2022 187.4 2023 8.8 2024 8.8 2025 & beyond 32.8 Total $ 387.7 |
Pension and Employee Benefit _2
Pension and Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Pension and Employee Benefit Plans [Abstract] | |
Change in Benefit Obligations and Plan Assets as Well as Funded Status | Changes in benefit obligations and plan assets, as well as the funded status of the Company’s global pension plans, were as follows: Years ended March 31, 2019 2018 Change in benefit obligation: Benefit obligation at beginning of year $ 273.6 $ 269.8 Service cost 0.5 0.5 Interest cost 9.6 9.9 Actuarial loss 1.7 4.4 Benefits paid (22.8 ) (16.9 ) Curtailment gain (a) - (0.3 ) Effect of exchange rate changes (3.8 ) 6.2 Benefit obligation at end of year $ 258.8 $ 273.6 Change in plan assets: Fair value of plan assets at beginning of year $ 157.7 $ 148.2 Actual return on plan assets 6.3 10.4 Benefits paid (22.8 ) (16.9 ) Employer contributions 13.9 16.0 Fair value of plan assets at end of year $ 155.1 $ 157.7 Funded status at end of year $ (103.7 ) $ (115.9 ) Amounts recognized in the consolidated balance sheets: Current liability $ (2.0 ) $ (6.3 ) Noncurrent liability (101.7 ) (109.6 ) $ (103.7 ) $ (115.9 ) (a) During fiscal 2018, the Company recorded a pension curtailment gain associated with the closure of a manufacturing facility in Austria (CIS segment). See Note 6 for additional information regarding the closure of this facility. |
Pension Benefit Plans | Costs for the Company’s global pension plans included the following components: Years ended March 31, 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 0.5 $ 0.5 $ 0.6 Interest cost 9.6 9.9 9.8 Expected return on plan assets (12.3 ) (11.9 ) (12.3 ) Amortization of net actuarial loss 5.6 5.6 5.6 Settlements (a) 0.2 0.3 - Curtailment gain (a) - (0.3 ) - Net periodic benefit cost $ 3.6 $ 4.1 $ 3.7 Other changes in benefit obligation recognized in other comprehensive income (loss): Net actuarial loss $ (7.7 ) $ (5.8 ) $ (1.0 ) Amortization of net actuarial loss 5.8 5.9 5.6 Total recognized in other comprehensive income (loss) $ (1.9 ) $ 0.1 $ 4.6 (a) The settlement charges and curtailment gain resulted from activity associated with the Company’s non-U.S. pension plans. |
Target and Plan Asset Allocations | The Company’s U.S. pension plan weighted-average asset allocations were as follows: March 31, 2019 March 31, 2018 Target allocation Plan assets Target allocation Plan assets Equity securities 65 % 66 % 60 % 58 % Debt securities 21 % 19 % 38 % 38 % Real estate investments 13 % 12 % - - Cash and cash equivalents 1 % 3 % 2 % 4 % 100 % 100 % 100 % 100 % |
Estimated Future Benefit Payments | Estimated pension benefit payments for the next ten fiscal years are as follows: Fiscal Year Estimated Pension Benefit Payments 2020 $ 16.0 2021 16.0 2022 16.4 2023 16.4 2024 16.6 2025-2029 82.0 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments [Abstract] | |
Fair Value of Derivative Financial Instruments Recorded in the Consolidated Balance Sheets | The fair value of the Company’s derivative financial instruments recorded in the consolidated balance sheets were as follows: Balance Sheet Location March 31, 2019 March 31, 2018 Derivatives designated as hedges: Commodity derivatives Other current assets $ 0.6 $ 0.1 Commodity derivatives Other current liabilities 0.3 - Foreign exchange contracts Other current assets 0.2 0.1 Derivatives not designated as hedges: Commodity derivatives Other current liabilities $ - $ 0.2 Foreign exchange contracts Other current assets - 0.2 Foreign exchange contracts Other current liabilities 0.5 0.6 |
Derivative Financial Instruments Designate for Hedge Accounting | The amounts associated with derivative financial instruments that the Company designated for hedge accounting were as follows: Gain (loss) recognized in Statement of Operations Gain (loss) reclassified 2019 2018 2017 Location 2019 2018 2017 Commodity derivatives $ (0.3 ) $ 0.2 $ - Cost of sales $ (0.4 ) $ - $ - Foreign exchange contracts (0.4 ) 0.1 - Net sales (0.4 ) 0.1 - Foreign exchange contracts 1.0 - - Cost of sales 0.6 - - Total gains (losses) $ 0.3 $ 0.3 $ - $ (0.2 ) $ 0.1 $ - |
Derivative Financial Instruments did not Designate for Hedge Accounting | The amounts associated with derivative financial instruments that the Company did not designate for hedge accounting were as follows: Years ended March 31, Statement of Operations Location 2019 2018 2017 Commodity derivatives Cost of sales $ - $ 0.4 $ 0.5 Foreign exchange contracts Net sales (0.7 ) (0.1 ) - Foreign exchange contracts Other income (expense) - net (0.3 ) (0.5 ) 1.3 Total gains (losses) $ (1.0 ) $ (0.2 ) $ 1.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss were as follows: Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Balance, March 31, 2018 $ (5.5 ) $ (134.9 ) $ 0.1 $ (140.3 ) Other comprehensive income (loss) before reclassifications (37.9 ) (7.1 ) 0.3 (44.7 ) Reclassifications: Amortization of unrecognized net loss (a) - 5.4 - 5.4 Foreign currency translation losses (b) 0.8 - - 0.8 Realized losses - net (c) - - 0.2 0.2 Income taxes - 0.3 (0.1 ) 0.2 Total other comprehensive income (loss) (37.1 ) (1.4 ) 0.4 (38.1 ) Balance, March 31, 2019 $ (42.6 ) $ (136.3 ) $ 0.5 $ (178.4 ) Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Balance, March 31, 2017 $ (46.8 ) $ (135.0 ) $ - $ (181.8 ) Other comprehensive income (loss) before reclassifications 41.3 (5.7 ) 0.3 35.9 Reclassifications: Amortization of unrecognized net loss (a) - 5.6 - 5.6 Realized gains - net (c) - - (0.1 ) (0.1 ) Income taxes - 0.2 (0.1 ) 0.1 Total other comprehensive income 41.3 0.1 0.1 41.5 Balance, March 31, 2018 $ (5.5 ) $ (134.9 ) $ 0.1 $ (140.3 ) (a) Amounts are included in the calculation of net periodic benefit cost for the Company’s defined benefit plans, which include pension and other postretirement plans. See Note 18 for additional information about the Company’s pension plans. (b) As a result of the sale of a business in South Africa during fiscal 2019, the Company wrote-off $0.8 million of accumulated foreign currency translation losses. See Note 1 for additional information about this transaction. (c) Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. See Note 19 for additional information regarding derivative instruments. |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment and Geographic Information [Abstract] | |
Net sales, Gross profit, Operating Income and Total Assets by Segment | The following is a summary of net sales, gross profit, and operating income by segment: Year ended March 31, 2019 External Sales Inter-segment Sales Total Net sales: VTS $ 1,298.9 $ 52.8 $ 1,351.7 CIS 704.7 2.9 707.6 BHVAC 209.1 3.3 212.4 Segment total 2,212.7 59.0 2,271.7 Corporate and eliminations - (59.0 ) (59.0 ) Net sales $ 2,212.7 $ - $ 2,212.7 Year ended March 31, 2018 External Sales Inter-segment Sales Total Net sales: VTS $ 1,239.3 $ 56.4 $ 1,295.7 CIS 674.4 1.3 675.7 BHVAC 189.4 1.8 191.2 Segment total 2,103.1 59.5 2,162.6 Corporate and eliminations - (59.5 ) (59.5 ) Net sales $ 2,103.1 $ - $ 2,103.1 Year ended March 31, 2017 External Sales Inter-segment Sales Total Net sales: VTS $ 1,099.9 $ 52.3 $ 1,152.2 CIS 231.5 0.3 231.8 BHVAC 171.6 - 171.6 Segment total 1,503.0 52.6 1,555.6 Corporate and eliminations - (52.6 ) (52.6 ) Net sales $ 1,503.0 $ - $ 1,503.0 Inter-segment sales are accounted for based upon an established markup over production costs. Net sales for Corporate and eliminations primarily represent the elimination of inter-segment sales. Years ended March 31, 2019 2018 2017 Gross profit: $’s % of sales $’s % of sales $’s % of VTS $ 186.9 13.8 % $ 201.0 15.5 % $ 182.0 15.8 % CIS 114.9 16.2 % 97.8 14.5 % 32.2 13.9 % BHVAC 63.4 29.9 % 58.0 30.3 % 47.8 27.8 % Segment total 365.2 16.1 % 356.8 16.5 % 262.0 16.8 % Corporate and eliminations (a) 0.3 - (0.3 ) - (7.6 ) - Gross profit $ 365.5 16.5 % $ 356.5 17.0 % $ 254.4 16.9 % Years ended March 31, Operating income: 2019 2018 2017 VTS $ 64.8 $ 84.2 $ 68.4 CIS 53.4 28.5 10.9 BHVAC 26.9 20.3 13.2 Segment total 145.1 133.0 92.5 Corporate and eliminations (a) (35.4 ) (40.8 ) (50.2 ) Operating income $ 109.7 $ 92.2 $ 42.3 (a) During fiscal 2018 and 2017, the Company recorded $4.3 million and $14.8 million, respectively, of costs incurred directly related to the acquisition and integration of Luvata HTS within SG&A expenses at Corporate. During fiscal 2017, the Company recorded $4.3 million in cost of sales related to an inventory purchase accounting adjustment at Corporate, as the impact was excluded from the Company’s measure of segment operating performance. In addition, the operating loss for Corporate includes certain research and development costs, legal, finance and other general corporate and central services expenses, and other costs that are either not directly attributable to an operating segment or not considered when management evaluates segment performance. The following is a summary of total assets by segment: March 31, 2019 2018 VTS $ 749.9 $ 754.8 CIS 604.2 630.2 BHVAC 89.4 88.1 Corporate and eliminations 94.5 100.3 Total assets $ 1,538.0 $ 1,573.4 |
Summary of Capital Expenditures and Depreciation and Amortization Expense by Segment | The following is a summary of capital expenditures and depreciation and amortization expense by segment: Years ended March 31, Capital expenditures: 2019 2018 2017 VTS $ 56.2 $ 61.4 $ 59.5 CIS 16.4 9.0 3.4 BHVAC 1.3 0.6 1.5 Total capital expenditures $ 73.9 $ 71.0 $ 64.4 Years ended March 31, Depreciation and amortization expense: 2019 2018 2017 VTS $ 49.5 $ 48.2 $ 46.2 CIS 23.9 24.3 7.9 BHVAC 3.5 4.2 4.2 Total depreciation and amortization expense $ 76.9 $ 76.7 $ 58.3 |
Summary of Net Sales and Long-lived Assets by Geographical Area | The following is a summary of net sales by geographical area, based upon the location of the selling unit: Years ended March 31, 2019 2018 2017 United States $ 1,032.3 $ 911.4 $ 657.8 Italy 217.3 211.5 94.4 China 172.1 156.0 73.7 Hungary 165.6 153.9 145.6 Germany 123.1 132.6 130.1 Austria 116.2 151.7 125.2 Other 386.1 386.0 276.2 Net sales $ 2,212.7 $ 2,103.1 $ 1,503.0 |
Summary of Property, Plant and Equipment by Geographical Area | The following is a summary of property, plant and equipment by geographical area: March 31, 2019 2018 United States $ 117.7 $ 121.5 China 57.6 49.6 Mexico 56.3 49.4 Hungary 55.3 59.3 Italy 52.4 62.0 Austria 36.9 42.8 Germany 32.8 37.2 Other 75.7 82.5 Total property, plant and equipment $ 484.7 $ 504.3 |
Summary of Net Sales by end Market | The following is a summary of net sales by end market: Years ended March 31, 2019 2018 2017 Commercial HVAC&R $ 674.0 $ 648.3 $ 323.8 Automotive 542.8 526.0 461.0 Commercial vehicle 387.6 381.7 382.5 Off-highway 314.1 271.2 202.8 Data center cooling 187.0 137.6 57.1 Industrial cooling 47.8 67.6 18.6 Other 59.4 70.7 57.2 Net sales $ 2,212.7 $ 2,103.1 $ 1,503.0 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Summary of Quarterly Financial Data | The following is a summary of quarterly financial data: Fiscal 2019 quarters ended June Sept. Dec. March Fiscal 2019 Net sales $ 566.1 $ 548.9 $ 541.0 $ 556.7 $ 2,212.7 Gross profit 94.3 87.9 91.7 91.6 365.5 Net earnings (a) 22.5 38.7 18.3 6.4 85.9 Net earnings attributable to Modine (a) 22.0 38.5 18.0 6.3 84.8 Net earnings per share attributable to Modine shareholders: Basic $ 0.43 $ 0.76 $ 0.36 $ 0.12 $ 1.67 Diluted 0.43 0.75 0.35 0.12 1.65 Fiscal 2018 quarters ended June Sept. Dec. March Fiscal 2018 Net sales $ 515.5 $ 508.3 $ 512.7 $ 566.6 $ 2,103.1 Gross profit 88.5 86.1 85.4 96.5 356.5 Net earnings (loss) (b) 17.4 16.3 (27.9 ) 18.0 23.8 Net earnings (loss) attributable to Modine (b) 17.0 15.9 (28.3 ) 17.6 22.2 Net earnings (loss) per share attributable to Modine shareholders: Basic $ 0.34 $ 0.32 $ (0.57 ) $ 0.35 $ 0.44 Diluted 0.34 0.31 (0.57 ) 0.34 0.43 (a) During fiscal 2019, restructuring expenses totaled $0.2 million, $0.5 million, and $8.9 million for the quarters ended June 30, 2018, December 31, 2018, and March 31, 2019, respectively (see Note 6). During the second quarter of fiscal 2019, the Company sold its South African business within the BHVAC segment and, as a result, recorded a loss of $1.7 million (see Note 1). During the third quarter of fiscal 2019, the Company recorded a $0.4 million impairment charge related to a manufacturing facility in Austria (see Note 6). The Company’s income tax benefit for fiscal 2019 includes net benefits of $24.4 million and net charges of $2.2 million in the second and third quarters, respectively, related to the Tax Act and the recognition of foreign tax credits (see Note 8). During fiscal 2019, the Company adjusted its valuation allowances on deferred tax assets related to two separate subsidiaries in China and, as a result, recorded a $2.0 million income tax benefit and a $1.0 million income tax charge in the first and second quarters, respectively (see Note 8). (b) During fiscal 2018, restructuring expenses totaled $1.7 million, $0.4 million, $9.4 million, and $4.5 million for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017, and March 31, 2018, respectively (see Note 6). During the third quarter of fiscal 2018, the Company recorded a $1.3 million asset impairment charge related to a manufacturing facility in Austria (see Note 6). During the fourth quarter of fiscal 2018, the Company recorded a $1.2 million impairment charge related to intangible assets (see Note 14). The Company recorded income tax charges totaling $35.7 million and $2.3 million during the third and fourth quarters of fiscal 2018, respectively, related to the Tax Act (see Note 8). During the fourth quarter of fiscal 2018, the Company reversed a portion of a valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded an income tax benefit of $2.8 million (see Note 8). |
Significant Accounting Polici_4
Significant Accounting Policies, Sale of AIAC Air Conditioning South Africa (Pty) Ltd (Details) - AIAC Air Conditioning South Africa (Pty) Ltd [Member] $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Sale of AIAC Air Conditioning South Africa (Pty) Ltd [Abstract] | |
Selling price | $ 0.5 |
Loss on sale of assets | (1.7) |
Loss on write-off of accumulated foreign currency translation | (0.8) |
Maximum [Member] | |
Sale of AIAC Air Conditioning South Africa (Pty) Ltd [Abstract] | |
Annual net sales attributable to disposed business | $ 2 |
Significant Accounting Polici_5
Significant Accounting Policies, Acquisition of Luvata HTS (Details) | Nov. 30, 2016 |
Luvata HTS [Member] | |
Business Acquisition [Line Items] | |
Acquired ownership interest by the entity | 100.00% |
Significant Accounting Polici_6
Significant Accounting Policies, Trade Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Trade accounts receivable [Abstract] | |||
Trade receivables, allowance for doubtful accounts | $ (1.6) | $ (2.3) | |
Trade receivables sold without recourse | 85.1 | 65.8 | $ 55.4 |
Loss on the sale of accounts receivables | $ (0.6) | $ (0.4) | $ (0.3) |
Significant Accounting Polici_7
Significant Accounting Policies, Tooling Costs and Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Research and development [Abstract] | |||
Research and development cost | $ 69.8 | $ 65.8 | $ 64.4 |
Tools [Member] | |||
Tooling [Abstract] | |||
Property, plant and equipment, depreciable lives | 3 years | ||
Company-owned tooling, net | $ 24.2 | 22.4 | |
Customer owned tooling receivable | $ 11.6 | $ 10.7 |
Significant Accounting Polici_8
Significant Accounting Policies, Short-term Investments, Property, Plant and Equipment and Assets Held for Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Short-term investments [Abstract] | |||
Short-term investments | $ 4.3 | $ 5.7 | |
Property, plant and equipment [Abstract] | |||
Capital expenditures accrued | 17.9 | 15.8 | $ 12.5 |
Assets Held For Sale [Abstract] | |||
Carrying value of assets held-for-sale | $ 1.1 | $ 1.7 |
Significant Accounting Polici_9
Significant Accounting Policies, Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental cash flow information [Abstract] | |||
Interest paid | $ 22.3 | $ 23.4 | $ 15.4 |
Income taxes paid | $ 22.2 | $ 20.1 | $ 12.7 |
Significant Accounting Polic_10
Significant Accounting Policies, New Accounting Guidance (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Guidance [Abstract] | |||||||||||
Deferred income taxes | $ 97.1 | $ 96.9 | $ 97.1 | $ 96.9 | |||||||
Equity | 533.9 | 490.1 | 533.9 | 490.1 | |||||||
Net sales | 556.7 | $ 541 | $ 548.9 | $ 566.1 | 566.6 | $ 512.7 | $ 508.3 | $ 515.5 | 2,212.7 | 2,103.1 | $ 1,503 |
Retained earnings | 472.1 | 394.9 | 472.1 | 394.9 | |||||||
ASU 2016-16 [Member] | |||||||||||
New Accounting Guidance [Abstract] | |||||||||||
Deferred income taxes | 0 | 0 | |||||||||
Retained earnings | (8.3) | (8.3) | |||||||||
ASU 2016-09 [Member] | |||||||||||
New Accounting Guidance [Abstract] | |||||||||||
Deferred income taxes | 0.4 | ||||||||||
Equity | $ 0.4 | ||||||||||
ASU 2014-09 [Member] | |||||||||||
New Accounting Guidance [Abstract] | |||||||||||
Deferred income taxes | (0.2) | (0.2) | |||||||||
Retained earnings | 0.7 | 0.7 | |||||||||
ASU 2014-09 [Member] | Maximum [Member] | |||||||||||
New Accounting Guidance [Abstract] | |||||||||||
Retained earnings | 0.7 | 0.7 | |||||||||
ASU 2014-09 [Member] | Effect of Adoption of ASC 606 [Member] | |||||||||||
New Accounting Guidance [Abstract] | |||||||||||
Deferred income taxes | 0.6 | 0.6 | |||||||||
Net sales | (4.4) | 3 | |||||||||
Retained earnings | $ (2.7) | $ 0.7 | $ (2.7) | $ 0.7 |
Significant Accounting Polic_11
Significant Accounting Policies, Leases (Details) - ASU 2016-02 [Member] - Plan [Member] $ in Millions | Mar. 31, 2019USD ($) |
Minimum [Member] | |
Leases [Abstract] | |
Expected operating lease, right-of-use assets | $ 60 |
Expected operating lease, liabilities | 60 |
Maximum [Member] | |
Leases [Abstract] | |
Expected operating lease, right-of-use assets | 70 |
Expected operating lease, liabilities | $ 70 |
Significant Accounting Polic_12
Significant Accounting Policies, Cumulative Effects on Consolidated Balance Sheet Resulting in Adoption of New Accounting Guidance (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
ASSETS [Abstract] | ||
Inventories | $ 200.7 | $ 191.3 |
Other current assets | 65.8 | 70.1 |
Deferred income taxes | 97.1 | 96.9 |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||
Deferred income taxes | 8.2 | 9.9 |
Retained earnings | $ 472.1 | 394.9 |
Adjustments Due to New Accounting [Member] | ||
ASSETS [Abstract] | ||
Inventories | 189.3 | |
Other current assets | 64.8 | |
Deferred income taxes | 96.7 | |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||
Deferred income taxes | 10 | |
Retained earnings | 387.3 | |
ASU 2014-09 [Member] | ||
ASSETS [Abstract] | ||
Inventories | (2) | |
Other current assets | 3 | |
Deferred income taxes | (0.2) | |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||
Deferred income taxes | 0.1 | |
Retained earnings | 0.7 | |
ASU 2016-16 [Member] | ||
ASSETS [Abstract] | ||
Inventories | 0 | |
Other current assets | (8.3) | |
Deferred income taxes | 0 | |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||
Deferred income taxes | 0 | |
Retained earnings | $ (8.3) |
Acquisition, Luvata HTS (Detail
Acquisition, Luvata HTS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Nov. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Allocation of Purchase Price for Acquisition [Abstract] | ||||
Goodwill | $ 168.5 | $ 173.8 | $ 165.1 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Interest expense | $ 24.8 | 25.6 | 17.2 | |
Acquisition-related Costs [Member] | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Amortization and depreciation expense | 13 | |||
Interest expense | 14 | |||
Acquisition related transaction costs | 8.6 | |||
Fair Value Adjustment to Inventory [Member] | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Acquisition related transaction costs | 4.3 | |||
Luvata HTS [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired ownership interest by the entity | 100.00% | |||
Purchase price allocation, net of cash acquired | $ 388.2 | |||
Allocation of Purchase Price for Acquisition [Abstract] | ||||
Cash and cash equivalents | 27.4 | |||
Trade accounts receivable | 86.1 | |||
Inventories | 55 | |||
Property, plant and equipment | 120.4 | |||
Intangible assets | 130.2 | |||
Goodwill | 151.9 | |||
Other assets | 39.1 | |||
Accounts payable | (73.7) | |||
Accrued compensation and employee benefits | (24.3) | |||
Deferred income taxes | (39.5) | |||
Pensions | (14.3) | |||
Other liabilities | (42.7) | |||
Purchase price | $ 415.6 | |||
Pro Forma Information [Abstract] | ||||
Net sales | 1,881.6 | |||
Net earnings attributable to Modine | $ 35.8 | |||
Net earnings per share attributable to Modine Shareholders [Abstract] | ||||
Basic (in dollars per share) | $ 0.72 | |||
Diluted (in dollars per share) | $ 0.71 | |||
Luvata HTS [Member] | Selling, General and Administrative Expenses [Member] | ||||
Business Acquisition [Line Items] | ||||
Cost related to acquisition and integration | $ 4.3 | $ 14.8 | ||
Luvata HTS [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Shares issued to acquire Luvata HTS (in shares) | 2.2 | |||
Value of shares issued to acquire Luvata HTS | $ 24.3 |
Revenue Recognition, Disaggrega
Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | $ 556.7 | $ 541 | $ 548.9 | $ 566.1 | $ 566.6 | $ 512.7 | $ 508.3 | $ 515.5 | $ 2,212.7 | $ 2,103.1 | $ 1,503 |
Contract with Customer, Asset and Liability [Abstract] | |||||||||||
Contract assets | 22.6 | 13.5 | 22.6 | 13.5 | |||||||
Contract liabilities | 4 | $ 6.8 | 4 | 6.8 | |||||||
Increase in contract assets | 9.1 | ||||||||||
Contract assets recorded for revenue recognized over time | $ 7.4 | 7.4 | |||||||||
(Decrease) in contract liabilities | (2.8) | ||||||||||
Automotive [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 542.8 | 526 | 461 | ||||||||
Commercial Vehicle [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 387.6 | 381.7 | 382.5 | ||||||||
Off-Highway [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 314.1 | 271.2 | 202.8 | ||||||||
Commercial HVAC&R [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 674 | 648.3 | 323.8 | ||||||||
Data Center Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 187 | 137.6 | 57.1 | ||||||||
Industrial Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 47.8 | 67.6 | 18.6 | ||||||||
Other [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 59.4 | 70.7 | 57.2 | ||||||||
VTS [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 1,351.7 | 1,295.7 | 1,152.2 | ||||||||
VTS [Member] | Products Transferred at a Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 1,308.5 | ||||||||||
VTS [Member] | Products Transferred Over Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 43.2 | ||||||||||
VTS [Member] | Americas [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 613.7 | ||||||||||
VTS [Member] | Europe [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 538.2 | ||||||||||
VTS [Member] | Asia [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 199.8 | ||||||||||
VTS [Member] | Automotive [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 542.8 | ||||||||||
VTS [Member] | Commercial Vehicle [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 387.6 | ||||||||||
VTS [Member] | Off-Highway [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 314.1 | ||||||||||
VTS [Member] | Commercial HVAC&R [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
VTS [Member] | Data Center Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
VTS [Member] | Industrial Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
VTS [Member] | Other [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 107.2 | ||||||||||
CIS [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 707.6 | 675.7 | 231.8 | ||||||||
CIS [Member] | Products Transferred at a Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 571.1 | ||||||||||
CIS [Member] | Products Transferred Over Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 136.5 | ||||||||||
CIS [Member] | Americas [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 413.6 | ||||||||||
CIS [Member] | Europe [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 244.8 | ||||||||||
CIS [Member] | Asia [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 49.2 | ||||||||||
CIS [Member] | Automotive [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
CIS [Member] | Commercial Vehicle [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
CIS [Member] | Off-Highway [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
CIS [Member] | Commercial HVAC&R [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 506.3 | ||||||||||
CIS [Member] | Data Center Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 145.7 | ||||||||||
CIS [Member] | Industrial Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 47.8 | ||||||||||
CIS [Member] | Other [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 7.8 | ||||||||||
BHVAC [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 212.4 | 191.2 | 171.6 | ||||||||
BHVAC [Member] | Products Transferred at a Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 212.4 | ||||||||||
BHVAC [Member] | Products Transferred Over Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
BHVAC [Member] | Americas [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 124.9 | ||||||||||
BHVAC [Member] | Europe [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 87.5 | ||||||||||
BHVAC [Member] | Asia [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
BHVAC [Member] | Automotive [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
BHVAC [Member] | Commercial Vehicle [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
BHVAC [Member] | Off-Highway [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
BHVAC [Member] | Commercial HVAC&R [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 167.7 | ||||||||||
BHVAC [Member] | Data Center Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 41.3 | ||||||||||
BHVAC [Member] | Industrial Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 0 | ||||||||||
BHVAC [Member] | Other [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 3.4 | ||||||||||
Total Segments [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 2,271.7 | $ 2,162.6 | $ 1,555.6 | ||||||||
Total Segments [Member] | Products Transferred at a Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 2,092 | ||||||||||
Total Segments [Member] | Products Transferred Over Time [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 179.7 | ||||||||||
Total Segments [Member] | Americas [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 1,152.2 | ||||||||||
Total Segments [Member] | Europe [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 870.5 | ||||||||||
Total Segments [Member] | Asia [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 249 | ||||||||||
Total Segments [Member] | Automotive [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 542.8 | ||||||||||
Total Segments [Member] | Commercial Vehicle [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 387.6 | ||||||||||
Total Segments [Member] | Off-Highway [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 314.1 | ||||||||||
Total Segments [Member] | Commercial HVAC&R [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 674 | ||||||||||
Total Segments [Member] | Data Center Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 187 | ||||||||||
Total Segments [Member] | Industrial Cooling [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | 47.8 | ||||||||||
Total Segments [Member] | Other [Member] | |||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||
Net sales | $ 118.4 |
Revenue Recognition, Statement
Revenue Recognition, Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||||||||
Consolidated Statement of Operations [Abstract] | |||||||||||||||||||||
Net sales | $ 556.7 | $ 541 | $ 548.9 | $ 566.1 | $ 566.6 | $ 512.7 | $ 508.3 | $ 515.5 | $ 2,212.7 | $ 2,103.1 | $ 1,503 | ||||||||||
Net earnings attributable to Modine | $ 6.3 | [1] | $ 18 | [1] | $ 38.5 | [1] | $ 22 | [1] | $ 17.6 | [2] | $ (28.3) | [2] | $ 15.9 | [2] | $ 17 | [2] | $ 84.8 | [1] | $ 22.2 | [2] | $ 14.2 |
Net earnings per share attributable to Modine shareholders: | |||||||||||||||||||||
Basic (in dollars per share) | $ 0.12 | $ 0.36 | $ 0.76 | $ 0.43 | $ 0.35 | $ (0.57) | $ 0.32 | $ 0.34 | $ 1.67 | $ 0.44 | $ 0.29 | ||||||||||
Diluted (in dollars per share) | $ 0.12 | $ 0.35 | $ 0.75 | $ 0.43 | $ 0.34 | $ (0.57) | $ 0.31 | $ 0.34 | $ 1.65 | $ 0.43 | $ 0.29 | ||||||||||
Impact of New Accounting Guidance [Member] | ASU 2014-09 [Member] | |||||||||||||||||||||
Consolidated Statement of Operations [Abstract] | |||||||||||||||||||||
Net sales | $ (4.4) | $ 3 | |||||||||||||||||||
Net earnings attributable to Modine | $ (2) | ||||||||||||||||||||
Net earnings per share attributable to Modine shareholders: | |||||||||||||||||||||
Basic (in dollars per share) | $ (0.04) | ||||||||||||||||||||
Diluted (in dollars per share) | $ (0.04) | ||||||||||||||||||||
Results Without Impact of New Accounting Guidance [Member] | ASU 2014-09 [Member] | |||||||||||||||||||||
Consolidated Statement of Operations [Abstract] | |||||||||||||||||||||
Net sales | $ 2,208.3 | ||||||||||||||||||||
Net earnings attributable to Modine | $ 82.8 | ||||||||||||||||||||
Net earnings per share attributable to Modine shareholders: | |||||||||||||||||||||
Basic (in dollars per share) | $ 1.63 | ||||||||||||||||||||
Diluted (in dollars per share) | $ 1.61 | ||||||||||||||||||||
[1] | During fiscal 2019, restructuring expenses totaled $0.2 million, $0.5 million, and $8.9 million for the quarters ended June 30, 2018, December 31, 2018, and March 31, 2019, respectively (see Note 6). During the second quarter of fiscal 2019, the Company sold its South African business within the BHVAC segment and, as a result, recorded a loss of $1.7 million (see Note 1). During the third quarter of fiscal 2019, the Company recorded a $0.4 million impairment charge related to a manufacturing facility in Austria (see Note 6). The Company's income tax benefit for fiscal 2019 includes net benefits of $24.4 million and net charges of $2.2 million in the second and third quarters, respectively, related to the Tax Act and the recognition of foreign tax credits (see Note 8). During fiscal 2019, the Company adjusted its valuation allowances on deferred tax assets related to two separate subsidiaries in China and, as a result, recorded a $2.0 million income tax benefit and a $1.0 million income tax charge in the first and second quarters, respectively (see Note 8). | ||||||||||||||||||||
[2] | During fiscal 2018, restructuring expenses totaled $1.7 million, $0.4 million, $9.4 million, and $4.5 million for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017, and March 31, 2018, respectively (see Note 6). During the third quarter of fiscal 2018, the Company recorded a $1.3 million asset impairment charge related to a manufacturing facility in Austria (see Note 6). During the fourth quarter of fiscal 2018, the Company recorded a $1.2 million impairment charge related to intangible assets (see Note 14). The Company recorded income tax charges totaling $35.7 million and $2.3 million during the third and fourth quarters of fiscal 2018, respectively, related to the Tax Act (see Note 8). During the fourth quarter of fiscal 2018, the Company reversed a portion of a valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded an income tax benefit of $2.8 million (see Note 8). |
Revenue Recognition, Balance Sh
Revenue Recognition, Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
ASSETS [Abstract] | ||
Inventories | $ 200.7 | $ 191.3 |
Other current assets | 65.8 | 70.1 |
Deferred income taxes | 97.1 | 96.9 |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||
Deferred income taxes | 8.2 | 9.9 |
Retained earnings | 472.1 | 394.9 |
ASU 2014-09 [Member] | ||
ASSETS [Abstract] | ||
Inventories | (2) | |
Other current assets | 3 | |
Deferred income taxes | (0.2) | |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||
Deferred income taxes | 0.1 | |
Retained earnings | 0.7 | |
Impact of New Accounting Guidance [Member] | ASU 2014-09 [Member] | ||
ASSETS [Abstract] | ||
Inventories | 3.8 | |
Other current assets | (7.4) | |
Deferred income taxes | 0.6 | |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||
Deferred income taxes | (0.3) | |
Retained earnings | (2.7) | $ 0.7 |
Results Without Impact of New Accounting Guidance [Member] | ASU 2014-09 [Member] | ||
ASSETS [Abstract] | ||
Inventories | 204.5 | |
Other current assets | 58.4 | |
Deferred income taxes | 97.7 | |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||
Deferred income taxes | 7.9 | |
Retained earnings | $ 469.4 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Deferred Compensation Liability [Abstract] | |||
Deferred compensation obligations | $ 6 | $ 5.8 | |
Trading securities | 6 | 5.8 | |
U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 155.1 | 157.7 | $ 148.2 |
U.S. Pension Plans [Member] | Fair Value Excluding Investments Measured at Net Asset Value [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 54.3 | 142.9 | |
U.S. Pension Plans [Member] | Investments Measured at Net Asset Value [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 100.8 | 14.8 | |
Money Market Investments [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 3.9 | 11.4 | |
Common Stocks [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 12 | ||
Corporate Bonds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 9.4 | 9.7 | |
Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 27.7 | 64.4 | |
Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 27.3 | ||
US Government and Agency Securities [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 12.3 | 16.2 | |
Other [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 1 | 1.9 | |
Level 1 [Member] | U.S. Pension Plans [Member] | Fair Value Excluding Investments Measured at Net Asset Value [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 27.8 | 101.3 | |
Level 1 [Member] | Money Market Investments [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Common Stocks [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 9.4 | ||
Level 1 [Member] | Corporate Bonds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 27.7 | 64.4 | |
Level 1 [Member] | Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 27.3 | ||
Level 1 [Member] | US Government and Agency Securities [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Other [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 0.1 | 0.2 | |
Level 2 [Member] | U.S. Pension Plans [Member] | Fair Value Excluding Investments Measured at Net Asset Value [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 26.5 | 41.6 | |
Level 2 [Member] | Money Market Investments [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 3.9 | 11.4 | |
Level 2 [Member] | Common Stocks [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 2.6 | ||
Level 2 [Member] | Corporate Bonds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 9.4 | 9.7 | |
Level 2 [Member] | Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 [Member] | Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 0 | ||
Level 2 [Member] | US Government and Agency Securities [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 12.3 | 16.2 | |
Level 2 [Member] | Other [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 0.9 | 1.7 | |
Level 3 [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | $ 0 | $ 0 |
Stock-Based Compensation, Incen
Stock-Based Compensation, Incentive Compensation Plan (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Compensation expense [Abstract] | |||
Stock-based compensation cost | $ 7.9 | $ 9.5 | $ 7.4 |
2017 Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 2.7 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Compensation expense [Abstract] | |||
Stock-based compensation cost | $ 7.9 | $ 9.5 | $ 7.4 |
Stock Options [Member] | |||
Compensation expense [Abstract] | |||
Stock-based compensation cost | 1.2 | 1.2 | 1.1 |
Fair value of awards vesting | 1.2 | $ 1.2 | $ 1 |
Unrecognized compensation costs | $ 2.2 | ||
Weighted average period recognized | 2 years 7 months 6 days | ||
Assumptions for stock awards granted [Abstract] | |||
Fair value of options (in dollars per share) | $ 7.81 | $ 7.30 | $ 4.60 |
Expected life of awards in years | 6 years 3 months 18 days | 6 years 4 months 24 days | 6 years 4 months 24 days |
Risk-free interest rate | 2.80% | 1.90% | 1.40% |
Expected volatility of the Company's stock | 39.70% | 44.30% | 45.50% |
Expected dividend yield on the Company's stock | 0.00% | 0.00% | 0.00% |
Award vesting period | 4 years | ||
Stock options activity [Rollforward] | |||
Outstanding, beginning (in shares) | 1.2 | ||
Granted (in shares) | 0.2 | ||
Exercised (in shares) | (0.1) | ||
Forfeited or expired (in shares) | (0.1) | ||
Outstanding, ending (in shares) | 1.2 | 1.2 | |
Exercisable, ending (in shares) | 0.8 | ||
Weighted average exercise price [Rollforward] | |||
Outstanding, beginning (in dollars per share) | $ 11.16 | ||
Granted (in dollars per share) | 17.90 | ||
Exercised (in dollars per share) | 9.93 | ||
Forfeited or expired (in dollars per share) | 14.51 | ||
Outstanding, ending (in dollars per share) | 12.24 | $ 11.16 | |
Exercisable, ending (in dollars per share) | $ 10.59 | ||
Summary of stock option activity [Abstract] | |||
Options, Outstanding, Weighted average remaining contractual term | 5 years 6 months | ||
Options, Outstanding, Aggregate intrinsic value | $ 3.3 | ||
Options, Exercisable, Weighted average remaining contractual term | 4 years | ||
Options, Exercisable, Aggregate intrinsic value | $ 2.9 | ||
Additional information related to stock options exercised [Abstract] | |||
Intrinsic value of stock options exercised | 0.7 | $ 4.9 | $ 0.5 |
Proceeds from stock options exercised | $ 1.1 | $ 4.3 | $ 0.9 |
Stock Options [Member] | Maximum [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Stock option term | 10 years | ||
Stock Options [Member] | Tranche One [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% | ||
Stock Options [Member] | Tranche Two [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% | ||
Stock Options [Member] | Tranche Three [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% | ||
Stock Options [Member] | Tranche Four [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Compensation expense [Abstract] | |||
Stock-based compensation cost | $ 7.9 | $ 9.5 | $ 7.4 |
Restricted Stock [Member] | |||
Compensation expense [Abstract] | |||
Stock-based compensation cost | 4.3 | 3.9 | 3.8 |
Fair value of awards vesting | 4.3 | $ 3.9 | 4 |
Unrecognized compensation costs | $ 5.3 | ||
Weighted average period recognized | 2 years 6 months | ||
Assumptions for stock awards granted [Abstract] | |||
Award vesting period | 4 years | ||
Restricted stock activity [Roll Forward] | |||
Non-vested balance, beginning (in shares) | 0.6 | ||
Granted (in shares) | 0.3 | ||
Vested (in shares) | (0.3) | ||
Forfeited (in shares) | (0.1) | ||
Non-vested balance, ending (in shares) | 0.5 | 0.6 | |
Weighted average price [Rollforward] | |||
Non-vested balance, beginning (in dollars per share) | $ 12.24 | ||
Granted (in dollars per share) | 17.72 | ||
Vested (in dollars per share) | 13.75 | ||
Forfeited (in dollars per share) | 15.03 | ||
Non-vested balance, ending (in dollars per share) | $ 14.95 | $ 12.24 | |
Restricted Stock [Member] | Tranche One [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% | ||
Restricted Stock [Member] | Tranche Two [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% | ||
Restricted Stock [Member] | Tranche Three [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% | ||
Restricted Stock [Member] | Tranche Four [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% | ||
Performance Stock Awards [Member] | |||
Compensation expense [Abstract] | |||
Stock-based compensation cost | $ 2.4 | $ 4.4 | $ 2.5 |
Unrecognized compensation costs | $ 2.4 | ||
Weighted average period recognized | 1 year 6 months | ||
Assumptions for stock awards granted [Abstract] | |||
Award vesting period | 3 years | 3 years | 3 years |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($)Facility | |
Restructuring and repositioning expenses [Abstract] | |||||||
Employee severance and related benefits | $ 8.7 | $ 13 | $ 5.3 | ||||
Other restructuring and repositioning expenses | 0.9 | 3 | 5.6 | ||||
Total | 9.6 | 16 | 10.9 | ||||
Changes in accrued severance [Roll Forward] | |||||||
Beginning balance | 11 | 6.5 | |||||
Additions | 8.7 | 13 | |||||
Payments | (9.1) | (9.4) | |||||
Effect of exchange rate changes | (0.6) | 0.9 | |||||
Ending balance | $ 11 | 10 | 11 | 6.5 | |||
Other [Abstract] | |||||||
Asset impairment charges | $ 0.4 | $ 1.2 | $ 1.3 | 0.4 | 2.5 | 0 | |
Proceeds from dispositions of assets | 0.3 | 0.3 | 5.7 | ||||
Gain on sale of assets | $ (1.7) | (1.7) | 0 | $ 2 | |||
Commercial and Industrial Solutions ("CIS") [Member] | |||||||
Other [Abstract] | |||||||
Restructuring expense | 8.3 | ||||||
Asset impairment charges | $ 0.4 | $ 1.3 | |||||
VTS [Member] | |||||||
Other [Abstract] | |||||||
Number of closed manufacturing facilities sold | Facility | 3 | ||||||
Proceeds from dispositions of assets | $ 5.4 | ||||||
Gain on sale of assets | $ 2 |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Other Income and Expense [Abstract] | ||||
Equity in earnings of non-consolidated affiliate | $ 0.7 | $ 0.2 | $ 0.1 | |
Interest income | 0.4 | 0.4 | 0.4 | |
Foreign currency transactions | [1] | (2.3) | (0.6) | (1.9) |
Net periodic benefit cost | [2] | (2.9) | (3.3) | (2.9) |
Total other expense - net | $ (4.1) | $ (3.3) | $ (4.3) | |
[1] | Foreign currency transactions primarily consist of foreign currency transaction gains and losses on the re-measurement or settlement of foreign currency-denominated assets and liabilities, including intercompany loans and transactions denominated in a foreign currency, along with gains and losses on foreign currency exchange contracts. | |||
[2] | Represents net periodic benefit cost, exclusive of service cost, for the Company's pension and postretirement plans. |
Income Taxes, Components of Ear
Income Taxes, Components of Earnings Before Income Taxes and the Benefit or Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Components of earnings (loss) before income taxes [Abstract] | |||
United States | $ 22.4 | $ 2.5 | $ (8.6) |
Foreign | 58.4 | 60.8 | 29.4 |
Earnings before income taxes | 80.8 | 63.3 | 20.8 |
Federal [Abstract] | |||
Current | (20.4) | 11.6 | 0.1 |
Deferred | (4.2) | 23.3 | (3.8) |
State [Abstract] | |||
Current | 0.7 | (0.3) | 0.3 |
Deferred | 1.9 | 2 | (0.2) |
Foreign [Abstract] | |||
Current | 19 | 16.1 | 10.1 |
Deferred | (2.1) | (13.2) | (0.6) |
Total income tax (benefit) provision | $ (5.1) | $ 39.5 | $ 5.9 |
Income Taxes, Tax Cuts and Jobs
Income Taxes, Tax Cuts and Jobs Act (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes [Abstract] | ||
Provisional income tax expense (benefit) related to US Tax Reform | $ 38 | |
Deferred tax assets - change in amount | $ (9.3) | (19) |
Transition tax charge | (0.1) | $ 19 |
Income tax expense (benefit) related to US Tax Reform | (7.7) | |
Transition tax liability | 18.9 | |
Domestic Tax Jurisdiction [Member] | ||
Income Taxes [Abstract] | ||
Income tax expense (benefit) related to US Tax Reform | $ 1.7 |
Income Taxes, Reconciliation Be
Income Taxes, Reconciliation Between the U.S. Federal Statutory Rate and the Effective Tax Rate (Details) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of federal statutory income tax rate to company's effective income tax rate [Abstract] | |||
Statutory federal tax | 21.00% | 31.50% | 35.00% |
State taxes, net of federal benefit | 3.60% | 2.90% | (3.30%) |
Taxes on non-U.S. earnings and losses | 3.90% | (3.80%) | (3.50%) |
Valuation allowances | 4.00% | (5.60%) | 1.20% |
Tax credits | (26.10%) | (17.30%) | (9.00%) |
Compensation | (0.10%) | (0.80%) | 2.90% |
Tax rate or law changes | (12.00%) | 60.10% | (2.50%) |
Uncertain tax positions, net of settlements | 0.40% | (0.80%) | 5.60% |
Notional interest deductions | (2.50%) | (3.20%) | (8.80%) |
Dividend repatriation | 1.60% | 0.20% | 7.10% |
Other | (0.10%) | (0.80%) | 3.70% |
Effective tax rate | (6.30%) | 62.40% | 28.40% |
Income Taxes, Unrecognized Tax
Income Taxes, Unrecognized Tax Benefits, and Deferred Tax Asset Valuation Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Tax Credit Carryforward [Line Items] | |||
Tax benefit from recognition of tax credits | $ (14.5) | ||
Tax (benefit) from foreign development tax credit | (5.1) | $ 39.5 | $ 5.9 |
Net of valuation allowance, classification [Abstract] | |||
Income tax expense (benefit) related to US Tax Reform | (7.7) | ||
Deferred tax asset, income tax expense (benefit) | 2.5 | ||
Provisional income tax expense (benefit) related to US Tax Reform | 38 | ||
Valuation allowance - deferred tax assets | 43.4 | 48.9 | |
Lapse of statute of limitations | (2.2) | (1.8) | |
Foreign Tax Jurisdictions [Member] | |||
Net of valuation allowance, classification [Abstract] | |||
Valuation allowance - deferred tax assets | 2 | ||
Changes in deferred tax asset valuation allowances | (1) | (2.8) | |
Other Tax Jurisdictions [Member] | |||
Net of valuation allowance, classification [Abstract] | |||
Valuation allowance - deferred tax assets | $ 4.3 | ||
Changes in deferred tax asset valuation allowances | $ (1.8) | ||
Hungarian Development Tax Credit [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax (benefit) from foreign development tax credit | $ (9) |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred tax assets [Abstract] | ||
Accounts receivable | $ 0.2 | $ 0.3 |
Inventories | 3.4 | 4.1 |
Plant and equipment | 1.8 | 2.3 |
Pension and employee benefits | 32.7 | 36 |
Net operating and capital losses | 73.5 | 102.5 |
Credit carryforwards | 60.3 | 36.7 |
Other, principally accrued liabilities | 10 | 9.9 |
Total gross deferred tax assets | 181.9 | 191.8 |
Less: valuation allowances | (43.4) | (48.9) |
Net deferred tax assets | 138.5 | 142.9 |
Deferred tax liabilities [Abstract] | ||
Plant and equipment | 15.1 | 17.6 |
Goodwill | 4.8 | 5.2 |
Intangible assets | 28.8 | 32.4 |
Other | 0.9 | 0.7 |
Total gross deferred tax liabilities | 49.6 | 55.9 |
Net deferred tax asset | $ 88.9 | $ 87 |
Income Taxes, Unrecognized Ta_2
Income Taxes, Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | ||||
Beginning balance | $ 13.6 | $ 14.2 | ||
Gross increases - tax positions in prior period | 1.6 | 0.8 | ||
Gross decreases - tax positions in prior period | (0.2) | (1.2) | [1] | |
Gross increases - due to acquisition | 0 | 1.4 | ||
Gross increases - tax positions in current period | 1.1 | 0.5 | ||
Settlements | (0.1) | (0.3) | ||
Lapse of statute of limitations | (2.2) | (1.8) | ||
Ending balance | 13.8 | 13.6 | ||
Unrecognized tax benefits that would impact effective tax rate | 12.2 | |||
Unrecognized tax benefits accrued interest and penalties | $ 1.1 | 1 | ||
Change in income tax expense (benefit) due to the reduction of federal corporate tax | $ 1 | |||
Forecast [Member] | ||||
Reconciliation of unrecognized tax benefits [Roll Forward] | ||||
Lapse of statute of limitations | $ (0.2) | |||
[1] | Fiscal 2018 includes $1.0 million related to the reduction of the U.S. federal corporate tax rate as a result of the Tax Act. |
Income Taxes, Income Tax Examin
Income Taxes, Income Tax Examination, and Tax Credits and Carryforwards (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Unrecognized foreign withholding taxes and deferred tax liabilities | $ 7 |
Germany [Member] | |
Income Tax Examination [Line Items] | |
Open tax year for examination by tax jurisdictions | Fiscal 2011 - Fiscal 2018 |
Italy [Member] | |
Income Tax Examination [Line Items] | |
Open tax year for examination by tax jurisdictions | Calendar 2014 - Fiscal 2018 |
United States [Member] | |
Income Tax Examination [Line Items] | |
Open tax year for examination by tax jurisdictions | Fiscal 2016 - Fiscal 2018 |
Federal and State [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards, research and development | $ 60 |
Federal and State [Member] | Minimum [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax loss credit carryforward, expiration date | Mar. 31, 2020 |
Federal and State [Member] | Maximum [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax loss credit carryforward, expiration date | Mar. 31, 2039 |
Foreign Tax Jurisdictions [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | $ 351.6 |
Tax losses subject to expiration | 9.7 |
Tax losses not subject to expiration | $ 341.9 |
Foreign Tax Jurisdictions [Member] | Minimum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards, expiration date | Mar. 31, 2020 |
Foreign Tax Jurisdictions [Member] | Maximum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards, expiration date | Mar. 31, 2034 |
State and Local [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | $ 129.5 |
State and Local [Member] | Minimum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards, expiration date | Mar. 31, 2020 |
State and Local [Member] | Maximum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards, expiration date | Mar. 31, 2039 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||||||||
Basic Earnings Per Share [Abstract] | |||||||||||||||||||||
Net earnings attributable to Modine | $ 6.3 | [1] | $ 18 | [1] | $ 38.5 | [1] | $ 22 | [1] | $ 17.6 | [2] | $ (28.3) | [2] | $ 15.9 | [2] | $ 17 | [2] | $ 84.8 | [1] | $ 22.2 | [2] | $ 14.2 |
Less: Undistributed earnings attributable to unvested shares | (0.4) | (0.2) | (0.2) | ||||||||||||||||||
Net earnings available to Modine shareholders | $ 84.4 | $ 22 | $ 14 | ||||||||||||||||||
Weighted-average shares outstanding - basic (in shares) | 50.5 | 49.9 | 47.8 | ||||||||||||||||||
Net earnings per share - basic (in dollars per share) | $ 0.12 | $ 0.36 | $ 0.76 | $ 0.43 | $ 0.35 | $ (0.57) | $ 0.32 | $ 0.34 | $ 1.67 | $ 0.44 | $ 0.29 | ||||||||||
Diluted Earnings Per Share [Abstract] | |||||||||||||||||||||
Net earnings attributable to Modine | $ 6.3 | [1] | $ 18 | [1] | $ 38.5 | [1] | $ 22 | [1] | $ 17.6 | [2] | $ (28.3) | [2] | $ 15.9 | [2] | $ 17 | [2] | $ 84.8 | [1] | $ 22.2 | [2] | $ 14.2 |
Less: Undistributed earnings attributable to unvested shares | (0.2) | (0.1) | (0.1) | ||||||||||||||||||
Net earnings available to Modine shareholders | $ 84.6 | $ 22.1 | $ 14.1 | ||||||||||||||||||
Weighted-average shares outstanding - basic (in shares) | 50.5 | 49.9 | 47.8 | ||||||||||||||||||
Effect of dilutive securities (in shares) | 0.8 | 1 | 0.5 | ||||||||||||||||||
Weighted-average shares outstanding - diluted (in shares) | 51.3 | 50.9 | 48.3 | ||||||||||||||||||
Net earnings per share - diluted (in dollars per share) | $ 0.12 | $ 0.35 | $ 0.75 | $ 0.43 | $ 0.34 | $ (0.57) | $ 0.31 | $ 0.34 | $ 1.65 | $ 0.43 | $ 0.29 | ||||||||||
Stock Options [Member] | |||||||||||||||||||||
Antidilutive securities excluded from computation of earning per share [Abstract] | |||||||||||||||||||||
Antidilutive securities excluded from computation of earning per share (in shares) | 0.4 | 0.2 | 0.8 | ||||||||||||||||||
[1] | During fiscal 2019, restructuring expenses totaled $0.2 million, $0.5 million, and $8.9 million for the quarters ended June 30, 2018, December 31, 2018, and March 31, 2019, respectively (see Note 6). During the second quarter of fiscal 2019, the Company sold its South African business within the BHVAC segment and, as a result, recorded a loss of $1.7 million (see Note 1). During the third quarter of fiscal 2019, the Company recorded a $0.4 million impairment charge related to a manufacturing facility in Austria (see Note 6). The Company's income tax benefit for fiscal 2019 includes net benefits of $24.4 million and net charges of $2.2 million in the second and third quarters, respectively, related to the Tax Act and the recognition of foreign tax credits (see Note 8). During fiscal 2019, the Company adjusted its valuation allowances on deferred tax assets related to two separate subsidiaries in China and, as a result, recorded a $2.0 million income tax benefit and a $1.0 million income tax charge in the first and second quarters, respectively (see Note 8). | ||||||||||||||||||||
[2] | During fiscal 2018, restructuring expenses totaled $1.7 million, $0.4 million, $9.4 million, and $4.5 million for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017, and March 31, 2018, respectively (see Note 6). During the third quarter of fiscal 2018, the Company recorded a $1.3 million asset impairment charge related to a manufacturing facility in Austria (see Note 6). During the fourth quarter of fiscal 2018, the Company recorded a $1.2 million impairment charge related to intangible assets (see Note 14). The Company recorded income tax charges totaling $35.7 million and $2.3 million during the third and fourth quarters of fiscal 2018, respectively, related to the Tax Act (see Note 8). During the fourth quarter of fiscal 2018, the Company reversed a portion of a valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded an income tax benefit of $2.8 million (see Note 8). |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Cash, Cash Equivalents and Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 41.7 | $ 39.3 | ||
Restricted cash | 0.5 | 1 | ||
Total cash, cash equivalents and restricted cash | $ 42.2 | $ 40.3 | $ 34.8 | $ 69.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Inventories [Abstract] | ||
Raw materials | $ 122.8 | $ 114.4 |
Work in process | 32.2 | 34.8 |
Finished goods | 45.7 | 42.1 |
Total inventories | $ 200.7 | $ 191.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property, plant and equipment, including depreciable lives [Abstract] | |||
Gross property, plant and equipment | $ 1,304.7 | $ 1,302.2 | |
Less: accumulated depreciation | (820) | (797.9) | |
Net property, plant and equipment | 484.7 | 504.3 | |
Depreciation expense | 67.9 | 67 | $ 54.2 |
Loss from disposition of property, plant and equipment | (0.9) | (0.7) | $ (0.4) |
Land [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Gross property, plant and equipment | 20.7 | 22.6 | |
Buildings and Improvements [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Gross property, plant and equipment | $ 285.9 | 295.6 | |
Buildings and Improvements [Member] | Minimum [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Property, plant and equipment, depreciable lives | 10 years | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Property, plant and equipment, depreciable lives | 40 years | ||
Machinery and Equipment [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Gross property, plant and equipment | $ 848.7 | 840.8 | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Property, plant and equipment, depreciable lives | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Property, plant and equipment, depreciable lives | 15 years | ||
Office Equipment [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Gross property, plant and equipment | $ 92 | 93 | |
Office Equipment [Member] | Minimum [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Property, plant and equipment, depreciable lives | 3 years | ||
Office Equipment [Member] | Maximum [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Property, plant and equipment, depreciable lives | 10 years | ||
Construction in Progress [Member] | |||
Property, plant and equipment, including depreciable lives [Abstract] | |||
Gross property, plant and equipment | $ 57.4 | $ 50.2 |
Investment in Affiliate (Detail
Investment in Affiliate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Equity method investment [Abstract] | |||
Equity in earnings of non-consolidated affiliate | $ 0.7 | $ 0.2 | $ 0.1 |
Nikkei Heat Exchanger Company, Ltd. [Member] | |||
Equity method investment [Abstract] | |||
Equity method investment, percent owned | 50.00% | ||
Equity method investment | $ 3.8 | 3.6 | |
Equity in earnings of non-consolidated affiliate | $ 0.7 | $ 0.2 | $ 0.1 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Amortized intangible assets [Abstract] | |||
Gross carrying value | $ 144.3 | $ 150 | |
Accumulated amortization | (28.1) | (20.1) | |
Net intangible assets | 116.2 | 129.9 | |
Amortization expense | 9 | 9.7 | $ 4.1 |
Estimated future amortization expense [Abstract] | |||
Fiscal 2020 | 9 | ||
2021 | 8 | ||
2022 | 8 | ||
2023 | 8 | ||
2024 | 8 | ||
BHVAC [Member] | |||
Amortized intangible assets [Abstract] | |||
Impairment | 1.2 | ||
BHVAC [Member] | Maximum [Member] | |||
Amortized intangible assets [Abstract] | |||
Annual revenue for discontinued product | 1 | ||
Customer Relationships [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 61.5 | 64.2 | |
Accumulated amortization | (9.1) | (5.7) | |
Net intangible assets | 52.4 | 58.5 | |
Trade Names [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 58.9 | 60.6 | |
Accumulated amortization | (13.5) | (10.8) | |
Net intangible assets | 45.4 | 49.8 | |
Acquired Technology [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 23.9 | 25.2 | |
Accumulated amortization | (5.5) | (3.6) | |
Net intangible assets | $ 18.4 | $ 21.6 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Goodwill [Roll Forward] | |||
Beginning balance | $ 173.8 | $ 165.1 | |
Acquired goodwill | [1] | 1.3 | |
Effect of exchange rate changes | (5.3) | 7.4 | |
Ending balance | 168.5 | 173.8 | |
VTS [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 0.5 | 0.5 | |
Acquired goodwill | [1] | 0 | |
Effect of exchange rate changes | 0 | 0 | |
Ending balance | 0.5 | 0.5 | |
Accumulated impairment losses | 40.3 | 40.3 | |
CIS [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 158.3 | 150.9 | |
Acquired goodwill | [1] | 1.3 | |
Effect of exchange rate changes | (4.4) | 6.1 | |
Ending balance | 153.9 | 158.3 | |
BHVAC [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 15 | 13.7 | |
Acquired goodwill | [1] | 0 | |
Effect of exchange rate changes | (0.9) | 1.3 | |
Ending balance | $ 14.1 | $ 15 | |
[1] | Represents measurement-period adjustments related to the Company's acquisition of Luvata HTS. See Note 2 for additional information about this acquisition. |
Product Warranties, Operating_3
Product Warranties, Operating Leases, and Other Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Changes in accrued warranty costs [Roll Forward] | ||||
Beginning balance | $ 9.3 | $ 10 | ||
Warranties recorded at time of sale | 5.5 | 6.7 | ||
Adjustments to pre-existing warranties | 2.2 | (0.8) | ||
Adjustments due to acquisition | [1] | 0 | (1) | |
Settlements | (7.3) | (6.2) | ||
Effect of exchange rate changes | (0.5) | 0.6 | ||
Ending balance | 9.2 | 9.3 | $ 10 | |
Rental expense | 19.3 | $ 18.5 | $ 12.8 | |
Future minimum rental commitments under non-cancelable operating leases [Abstract] | ||||
2020 | 14.2 | |||
2021 | 12.4 | |||
2022 | 9.1 | |||
2023 | 7.1 | |||
2024 | 4.7 | |||
2025 and beyond | 22.9 | |||
Total future minimum rental commitments | 70.4 | |||
Other Commitments [Line Items] | ||||
Capital expenditure commitments | $ 23.6 | |||
Minimum [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Product warranty period | 1 year | |||
Other Commitments [Line Items] | ||||
Indemnification period | 1 year | |||
Maximum [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Product warranty period | 5 years | |||
Other Commitments [Line Items] | ||||
Indemnification period | 15 years | |||
[1] | During fiscal 2018, the Company decreased its liability for product warranties by $1.0 million as a result of measurement-period adjustments made in connection with purchase accounting for the acquisition of Luvata HTS. See Note 2 for additional information about this acquisition. |
Indebtedness (Details)
Indebtedness (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | $ 387.7 | $ 431.6 | |
Less: current portion | (48.6) | (39.9) | |
Less: unamortized debt issuance costs | (4) | (5.4) | |
Total long-term debt | 335.1 | 386.3 | |
Maturities of long term debt and capital lease obligations [Abstract] | |||
2020 | 48.6 | ||
2021 | 101.3 | ||
2022 | 187.4 | ||
2023 | 8.8 | ||
2024 | 8.8 | ||
2025 & beyond | 32.8 | ||
Total debt | 387.7 | 431.6 | |
Short-term debt | 66 | 53.2 | |
Term Loan [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | $ 238.4 | 267.8 | |
Fiscal year of maturity | Mar. 31, 2022 | ||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | $ 238.4 | 267.8 | |
Term Loan [Member] | Minimum [Member] | |||
Credit Facility [Abstract] | |||
Basis spread on variable rate | 1.375% | ||
Term Loan [Member] | Maximum [Member] | |||
Credit Facility [Abstract] | |||
Basis spread on variable rate | 2.50% | ||
Term Loan [Member] | Weighted Average [Member] | |||
Credit Facility [Abstract] | |||
Weighted-average interest rate | 3.30% | ||
Revolving Credit Facility [Member] | |||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Short-term debt | $ 47.1 | 21.3 | |
Revolving Credit Facility [Member] | Minimum [Member] | |||
Credit Facility [Abstract] | |||
Basis spread on variable rate | 1.375% | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Credit Facility [Abstract] | |||
Basis spread on variable rate | 2.50% | ||
Revolving Credit Facility [Member] | Weighted Average [Member] | |||
Credit Facility [Abstract] | |||
Weighted-average interest rate | 3.70% | ||
Multi Currency Revolving Credit Facility [Member] | |||
Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 175 | ||
Expiration date | Nov. 30, 2021 | ||
Domestic Revolving Credit Facility [Member] | |||
Credit Facility [Abstract] | |||
Available for future borrowings | $ 123.6 | ||
Letters of credit outstanding | 4.3 | ||
Foreign Credit Agreements [Member] | |||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Short-term debt | 18.9 | 31.9 | |
Senior Notes [Member] | |||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Long-term debt, fair value | $ 137.2 | 153.1 | |
6.8% Senior Notes [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Interest rate percentage | 6.80% | ||
Total debt | $ 85 | 101 | |
Fiscal year of maturity | Mar. 31, 2021 | ||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | $ 85 | 101 | |
5.8% Senior Notes [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Interest rate percentage | 5.80% | ||
Total debt | $ 50 | 50 | |
Fiscal year of maturity | Mar. 31, 2027 | ||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | $ 50 | 50 | |
Other [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | [1] | 14.3 | 12.8 |
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | [1] | $ 14.3 | $ 12.8 |
[1] | Other long-term debt includes borrowings by foreign subsidiaries, capital lease obligations and other financing-type obligations. |
Pension and Employee Benefit _3
Pension and Employee Benefit Plans, Defined Contribution Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan cost recognized | $ 6.4 | $ 5.2 | $ 4.7 |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company match | 4.50% |
Pension and Employee Benefit _4
Pension and Employee Benefit Plans, Defined Benefit Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | [1] | $ 2.9 | $ 3.3 | $ 2.9 |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 13.9 | 16 | ||
Net periodic benefit cost | 3.6 | 4.1 | 3.7 | |
Pension Plans [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 8 | 13.4 | 8.1 | |
Pension Plans [Member] | No-U.S Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 5.9 | 2.6 | 1.4 | |
Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 0.3 | $ 0.2 | $ 0.3 | |
[1] | Represents net periodic benefit cost, exclusive of service cost, for the Company's pension and postretirement plans. |
Pension and Employee Benefit _5
Pension and Employee Benefit Plans, Changes in Benefit Obligations, Plan Assets, and Funded Status (Details) - Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Change in benefit obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | $ 273.6 | $ 269.8 | ||
Service cost | 0.5 | 0.5 | $ 0.6 | |
Interest cost | 9.6 | 9.9 | 9.8 | |
Actuarial loss | 1.7 | 4.4 | ||
Benefits paid | (22.8) | (16.9) | ||
Curtailment gain | [1] | 0 | (0.3) | |
Effect of exchange rate changes | (3.8) | 6.2 | ||
Benefit obligation at end of year | 258.8 | 273.6 | 269.8 | |
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 157.7 | 148.2 | ||
Actual return on plan assets | 6.3 | 10.4 | ||
Benefits paid | (22.8) | (16.9) | ||
Employer contributions | 13.9 | 16 | ||
Fair value of plan assets at end of year | 155.1 | 157.7 | 148.2 | |
Funded status at end of year | (103.7) | (115.9) | ||
Amounts recognized in the consolidated balance sheets [Abstract] | ||||
Current liability | (2) | (6.3) | ||
Noncurrent liability | (101.7) | (109.6) | ||
Total liability | (103.7) | (115.9) | ||
Pension plans with accumulated benefit obligations in excess of plan assets [Abstract] | ||||
Accumulated benefit obligation | 256.9 | 271.8 | ||
Amounts recognized in accumulated other comprehensive loss [Abstract] | ||||
Net actuarial loss (gain) | 159.1 | 157.9 | ||
No-U.S Plans [Member] | ||||
Change in benefit obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 43.4 | 39.3 | ||
Benefits paid | (2.6) | |||
Benefit obligation at end of year | 36.5 | 43.4 | 39.3 | |
Change in plan assets [Roll Forward] | ||||
Employer contributions | 5.9 | 2.6 | $ 1.4 | |
Non-U.S Plans [Abstract] | ||||
Increase (decrease) in benefit obligation | (6.9) | 4.1 | ||
Impact of exchange rate changes and service and interest cost on benefit obligation | $ 1.1 | $ 1.3 | ||
[1] | During fiscal 2018, the Company recorded a pension curtailment gain associated with the closure of a manufacturing facility in Austria (CIS segment). See Note 6 for additional information regarding the closure of this facility. |
Pension and Employee Benefit _6
Pension and Employee Benefit Plans, Cost Components of Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Components of net periodic benefit cost [Abstract] | ||||
Net periodic benefit cost | [1] | $ 2.9 | $ 3.3 | $ 2.9 |
Other changes in benefit obligation recognized in other comprehensive income (loss) [Abstract] | ||||
Amortization of net actuarial loss | [2] | 5.4 | 5.6 | |
Pension Plans [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 0.5 | 0.5 | 0.6 | |
Interest cost | 9.6 | 9.9 | 9.8 | |
Expected return on plan assets | (12.3) | (11.9) | (12.3) | |
Amortization of net actuarial loss | 5.6 | 5.6 | 5.6 | |
Settlements | [3] | 0.2 | 0.3 | 0 |
Curtailment gain | [3] | 0 | (0.3) | 0 |
Net periodic benefit cost | 3.6 | 4.1 | 3.7 | |
Other changes in benefit obligation recognized in other comprehensive income (loss) [Abstract] | ||||
Net actuarial loss | (7.7) | (5.8) | (1) | |
Amortization of net actuarial loss | 5.8 | 5.9 | 5.6 | |
Total recognized in other comprehensive income (loss) | (1.9) | 0.1 | 4.6 | |
Reversal of amortization items [Abstract] | ||||
Estimated net actuarial loss that will be amortized | (6) | |||
Pension Plans [Member] | No-U.S Plans [Member] | Maximum [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Amortization of net actuarial loss | 1 | $ 1 | $ 1 | |
Reversal of amortization items [Abstract] | ||||
Estimated amortization in next fiscal year | $ 1 | |||
[1] | Represents net periodic benefit cost, exclusive of service cost, for the Company's pension and postretirement plans. | |||
[2] | Amounts are included in the calculation of net periodic benefit cost for the Company's defined benefit plans, which include pension and other postretirement plans. See Note 18 for additional information about the Company's pension plans. | |||
[3] | The settlement charges and curtailment gain resulted from activity associated with the Company's non-U.S. pension plans. |
Pension and Employee Benefit _7
Pension and Employee Benefit Plans, Valuation Assumptions (Details) - Pension Plans [Member] | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
U.S. Plans [Member] | |||
Weighted-average assumptions used in calculating benefit obligation [Abstract] | |||
Discount rate - benefit obligations | 4.00% | 4.00% | |
Weighted-average assumptions used in calculating plan cost [Abstract] | |||
Weighted average discount rate - costs | 4.00% | 4.10% | 4.10% |
No-U.S Plans [Member] | |||
Weighted-average assumptions used in calculating benefit obligation [Abstract] | |||
Discount rate - benefit obligations | 1.40% | 1.70% | |
Weighted-average assumptions used in calculating plan cost [Abstract] | |||
Weighted average discount rate - costs | 1.90% | 1.90% | 1.70% |
Pension and Employee Benefit _8
Pension and Employee Benefit Plans, Weighted-average Asset Allocations (Details) - Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target allocation | 100.00% | 100.00% | ||
Plan assets | 100.00% | 100.00% | ||
Anticipated contributions next fiscal year | $ 3 | |||
Equity Securities [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target allocation | 65.00% | 60.00% | ||
Plan assets | 66.00% | 58.00% | ||
Debt Securities [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target allocation | 21.00% | 38.00% | ||
Plan assets | 19.00% | 38.00% | ||
Real Estate [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target allocation | 13.00% | 0.00% | ||
Plan assets | 12.00% | 0.00% | ||
Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target allocation | 1.00% | 2.00% | ||
Plan assets | 3.00% | 4.00% | ||
U.S. Plans [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Expected return on plan assets | 7.50% | 7.50% | 8.00% | |
U.S. Plans [Member] | Forecast [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Expected return on plan assets | 7.50% |
Pension and Employee Benefit _9
Pension and Employee Benefit Plans, Estimated Pension Benefit Payments (Details) - Pension Plans [Member] $ in Millions | Mar. 31, 2019USD ($) |
Estimated future benefit payments [Abstract] | |
2020 | $ 16 |
2021 | 16 |
2022 | 16.4 |
2023 | 16.4 |
2024 | 16.6 |
2025-2029 | $ 82 |
Derivative Instruments, Balance
Derivative Instruments, Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Commodity Derivatives [Member] | Derivatives Designated as Hedges [Member] | Other Current Assets [Member] | ||
Derivative instruments [Abstract] | ||
Derivative asset, fair value, net | $ 0.6 | $ 0.1 |
Commodity Derivatives [Member] | Derivatives Designated as Hedges [Member] | Other Current Liabilities [Member] | ||
Derivative instruments [Abstract] | ||
Derivative liability, fair value, net | 0.3 | 0 |
Commodity Derivatives [Member] | Derivatives not Designated as Hedges [Member] | Other Current Liabilities [Member] | ||
Derivative instruments [Abstract] | ||
Derivative liability, fair value, net | 0 | 0.2 |
Foreign Exchange Contracts [Member] | Derivatives Designated as Hedges [Member] | Other Current Assets [Member] | ||
Derivative instruments [Abstract] | ||
Derivative asset, fair value, net | 0.2 | 0.1 |
Foreign Exchange Contracts [Member] | Derivatives not Designated as Hedges [Member] | Other Current Assets [Member] | ||
Derivative instruments [Abstract] | ||
Derivative asset, fair value, net | 0 | 0.2 |
Foreign Exchange Contracts [Member] | Derivatives not Designated as Hedges [Member] | Other Current Liabilities [Member] | ||
Derivative instruments [Abstract] | ||
Derivative liability, fair value, net | $ 0.5 | $ 0.6 |
Derivative Instruments, (Gain)
Derivative Instruments, (Gain) Loss by Hedging Relationship, by CI and Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Gain (loss) reclassified from AOCI | [1] | $ (0.2) | $ 0.1 | |
Designated [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Gain (loss) reclassified from AOCI | (0.2) | 0.1 | $ 0 | |
Non-Designated Derivative [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Total gains (losses) | (1) | (0.2) | 1.8 | |
Other Comprehensive Income [Member] | Designated [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Total gains (losses) | 0.3 | 0.3 | 0 | |
Commodity Derivatives [Member] | Cost of Sales [Member] | Designated [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Gain (loss) reclassified from AOCI | (0.4) | 0 | 0 | |
Commodity Derivatives [Member] | Cost of Sales [Member] | Non-Designated Derivative [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Total gains (losses) | 0 | 0.4 | 0.5 | |
Commodity Derivatives [Member] | Cost of Sales [Member] | Other Comprehensive Income [Member] | Designated [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Total gains (losses) | (0.3) | 0.2 | 0 | |
Foreign Exchange Contracts [Member] | Cost of Sales [Member] | Designated [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Gain (loss) reclassified from AOCI | 0.6 | 0 | 0 | |
Foreign Exchange Contracts [Member] | Cost of Sales [Member] | Other Comprehensive Income [Member] | Designated [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Total gains (losses) | 1 | 0 | 0 | |
Foreign Exchange Contracts [Member] | Net Sales [Member] | Designated [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Gain (loss) reclassified from AOCI | (0.4) | 0.1 | 0 | |
Foreign Exchange Contracts [Member] | Net Sales [Member] | Non-Designated Derivative [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Total gains (losses) | (0.7) | (0.1) | 0 | |
Foreign Exchange Contracts [Member] | Net Sales [Member] | Other Comprehensive Income [Member] | Designated [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Total gains (losses) | (0.4) | 0.1 | 0 | |
Foreign Exchange Contracts [Member] | Other Income (Expense) - Net [Member] | Non-Designated Derivative [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Total gains (losses) | $ (0.3) | $ (0.5) | $ 1.3 | |
[1] | Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. See Note 19 for additional information regarding derivative instruments. |
Contingencies and Litigation (D
Contingencies and Litigation (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019USD ($)Customer | Mar. 31, 2018USD ($)Customer | Mar. 31, 2017Customer | |
Environmental loss contingencies [Abstract] | |||
Reserves for environmental matters | $ | $ 18.9 | $ 16.7 | |
Sales [Member] | Customer Concentration Risk [Member] | |||
Credit Risk [Abstract] | |||
Concentration risk, percentage | 50.00% | 48.00% | 54.00% |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Credit Risk [Abstract] | |||
Concentration risk, percentage | 38.00% | 36.00% | |
Number of top customers | 10 | ||
VTS [Member] | |||
Credit Risk [Abstract] | |||
Number of major customers | 2 | 2 | 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Other comprehensive loss [Abstract] | |||
Beginning balance | $ 490.1 | ||
Other comprehensive income (loss) before reclassifications | (44.7) | $ 35.9 | |
Reclassifications for amortization of unrecognized net loss | [1] | 5.4 | 5.6 |
Reclassifications for foreign currency translation losses | [2] | 0.8 | |
Reclassifications for realized gains (losses) - net | [3] | 0.2 | (0.1) |
Income taxes | 0.2 | 0.1 | |
Total other comprehensive income (loss) | (38.1) | 41.5 | |
Ending balance | 533.9 | 490.1 | |
AIAC Air Conditioning South Africa Pty Ltd Member [Member] | |||
Other comprehensive loss [Abstract] | |||
Loss on write-off of accumulated foreign currency translation | (0.8) | ||
Accumulated Other Comprehensive Loss [Member] | |||
Other comprehensive loss [Abstract] | |||
Beginning balance | (140.3) | (181.8) | |
Ending balance | (178.4) | (140.3) | |
Foreign Currency Translation [Member] | |||
Other comprehensive loss [Abstract] | |||
Beginning balance | (5.5) | (46.8) | |
Other comprehensive income (loss) before reclassifications | (37.9) | 41.3 | |
Reclassifications for amortization of unrecognized net loss | [1] | 0 | 0 |
Reclassifications for foreign currency translation losses | [2] | 0.8 | |
Reclassifications for realized gains (losses) - net | [3] | 0 | 0 |
Income taxes | 0 | 0 | |
Total other comprehensive income (loss) | (37.1) | 41.3 | |
Ending balance | (42.6) | (5.5) | |
Defined Benefit Plans [Member] | |||
Other comprehensive loss [Abstract] | |||
Beginning balance | (134.9) | (135) | |
Other comprehensive income (loss) before reclassifications | (7.1) | (5.7) | |
Reclassifications for amortization of unrecognized net loss | [1] | 5.4 | 5.6 |
Reclassifications for foreign currency translation losses | [2] | 0 | |
Reclassifications for realized gains (losses) - net | [3] | 0 | 0 |
Income taxes | 0.3 | 0.2 | |
Total other comprehensive income (loss) | (1.4) | 0.1 | |
Ending balance | (136.3) | (134.9) | |
Cash Flow Hedges [Member] | |||
Other comprehensive loss [Abstract] | |||
Beginning balance | 0.1 | 0 | |
Other comprehensive income (loss) before reclassifications | 0.3 | 0.3 | |
Reclassifications for amortization of unrecognized net loss | [1] | 0 | 0 |
Reclassifications for foreign currency translation losses | [2] | 0 | |
Reclassifications for realized gains (losses) - net | [3] | 0.2 | (0.1) |
Income taxes | (0.1) | (0.1) | |
Total other comprehensive income (loss) | 0.4 | 0.1 | |
Ending balance | $ 0.5 | $ 0.1 | |
[1] | Amounts are included in the calculation of net periodic benefit cost for the Company's defined benefit plans, which include pension and other postretirement plans. See Note 18 for additional information about the Company's pension plans. | ||
[2] | As a result of the sale of a business in South Africa during fiscal 2019, the Company wrote-off $0.8 million of accumulated foreign currency translation losses. See Note 1 for additional information about this transaction. | ||
[3] | Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. See Note 19 for additional information regarding derivative instruments. |
Segment and Geographic Inform_3
Segment and Geographic Information, Net Sales, Gross Profit, and Operating Income by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | $ 556.7 | $ 541 | $ 548.9 | $ 566.1 | $ 566.6 | $ 512.7 | $ 508.3 | $ 515.5 | $ 2,212.7 | $ 2,103.1 | $ 1,503 | ||
Gross profit | $ 91.6 | $ 91.7 | $ 87.9 | $ 94.3 | $ 96.5 | $ 85.4 | $ 86.1 | $ 88.5 | $ 365.5 | $ 356.5 | $ 254.4 | ||
Gross profit (% of sales) | 16.50% | 17.00% | 16.90% | ||||||||||
Operating income | $ 109.7 | $ 92.2 | $ 42.3 | ||||||||||
Luvata HTS [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Acquisition and integration related costs | 4.3 | 14.8 | |||||||||||
VTS [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 1,351.7 | 1,295.7 | 1,152.2 | ||||||||||
CIS [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 707.6 | 675.7 | 231.8 | ||||||||||
BHVAC [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 212.4 | 191.2 | 171.6 | ||||||||||
Total Segments [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 2,271.7 | 2,162.6 | 1,555.6 | ||||||||||
Operating Segments [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 2,212.7 | 2,103.1 | 1,503 | ||||||||||
Gross profit | $ 365.2 | $ 356.8 | $ 262 | ||||||||||
Gross profit (% of sales) | 16.10% | 16.50% | 16.80% | ||||||||||
Operating income | $ 145.1 | $ 133 | $ 92.5 | ||||||||||
Operating Segments [Member] | VTS [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 1,298.9 | 1,239.3 | 1,099.9 | ||||||||||
Gross profit | $ 186.9 | $ 201 | $ 182 | ||||||||||
Gross profit (% of sales) | 13.80% | 15.50% | 15.80% | ||||||||||
Operating income | $ 64.8 | $ 84.2 | $ 68.4 | ||||||||||
Operating Segments [Member] | CIS [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 704.7 | 674.4 | 231.5 | ||||||||||
Gross profit | $ 114.9 | $ 97.8 | $ 32.2 | ||||||||||
Gross profit (% of sales) | 16.20% | 14.50% | 13.90% | ||||||||||
Operating income | $ 53.4 | $ 28.5 | $ 10.9 | ||||||||||
Operating Segments [Member] | BHVAC [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 209.1 | 189.4 | 171.6 | ||||||||||
Gross profit | $ 63.4 | $ 58 | $ 47.8 | ||||||||||
Gross profit (% of sales) | 29.90% | 30.30% | 27.80% | ||||||||||
Operating income | $ 26.9 | $ 20.3 | $ 13.2 | ||||||||||
Corporate and Eliminations [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | (59) | (59.5) | (52.6) | ||||||||||
Gross profit | $ 0.3 | $ (0.3) | [1] | $ (7.6) | [1] | ||||||||
Gross profit (% of sales) | 0.00% | 0.00% | [1] | 0.00% | [1] | ||||||||
Operating income | $ (35.4) | $ (40.8) | [1] | $ (50.2) | [1] | ||||||||
Corporate and Eliminations [Member] | Cost of Sales [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Inventory purchase accounting adjustment | 4.3 | ||||||||||||
Inter-segment Sales [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 59 | 59.5 | 52.6 | ||||||||||
Inter-segment Sales [Member] | VTS [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 52.8 | 56.4 | 52.3 | ||||||||||
Inter-segment Sales [Member] | CIS [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | 2.9 | 1.3 | 0.3 | ||||||||||
Inter-segment Sales [Member] | BHVAC [Member] | |||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | |||||||||||||
Net sales | $ 3.3 | $ 1.8 | $ 0 | ||||||||||
[1] | During fiscal 2018 and 2017, the Company recorded $4.3 million and $14.8 million, respectively, of costs incurred directly related to the acquisition and integration of Luvata HTS within SG&A expenses at Corporate. During fiscal 2017, the Company recorded $4.3 million in cost of sales related to an inventory purchase accounting adjustment at Corporate, as the impact was excluded from the Company's measure of segment operating performance. In addition, the operating loss for Corporate includes certain research and development costs, legal, finance and other general corporate and central services expenses, and other costs that are either not directly attributable to an operating segment or not considered when management evaluates segment performance. |
Segment and Geographic Inform_4
Segment and Geographic Information, Total Assets by Segment (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,538 | $ 1,573.4 |
Operating Segments [Member] | VTS [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 749.9 | 754.8 |
Operating Segments [Member] | CIS [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 604.2 | 630.2 |
Operating Segments [Member] | BHVAC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 89.4 | 88.1 |
Corporate and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 94.5 | $ 100.3 |
Segment and Geographic Inform_5
Segment and Geographic Information, Capital Expenditures and Depreciation and Amortization Expense by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 73.9 | $ 71 | $ 64.4 |
Total depreciation and amortization expense | 76.9 | 76.7 | 58.3 |
Operating Segments [Member] | VTS [Member] | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 56.2 | 61.4 | 59.5 |
Total depreciation and amortization expense | 49.5 | 48.2 | 46.2 |
Operating Segments [Member] | CIS [Member] | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 16.4 | 9 | 3.4 |
Total depreciation and amortization expense | 23.9 | 24.3 | 7.9 |
Operating Segments [Member] | BHVAC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 1.3 | 0.6 | 1.5 |
Total depreciation and amortization expense | $ 3.5 | $ 4.2 | $ 4.2 |
Segment and Geographic Inform_6
Segment and Geographic Information, Net Sales by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 556.7 | $ 541 | $ 548.9 | $ 566.1 | $ 566.6 | $ 512.7 | $ 508.3 | $ 515.5 | $ 2,212.7 | $ 2,103.1 | $ 1,503 |
Reportable Geographical Components [Member] | United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,032.3 | 911.4 | 657.8 | ||||||||
Reportable Geographical Components [Member] | Italy [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 217.3 | 211.5 | 94.4 | ||||||||
Reportable Geographical Components [Member] | China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 172.1 | 156 | 73.7 | ||||||||
Reportable Geographical Components [Member] | Hungary [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 165.6 | 153.9 | 145.6 | ||||||||
Reportable Geographical Components [Member] | Germany [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 123.1 | 132.6 | 130.1 | ||||||||
Reportable Geographical Components [Member] | Austria [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 116.2 | 151.7 | 125.2 | ||||||||
Reportable Geographical Components [Member] | Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 386.1 | $ 386 | $ 276.2 |
Segment and Geographic Inform_7
Segment and Geographic Information, Property, Plant and Equipment by Geographical Area (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | $ 484.7 | $ 504.3 |
Reportable Geographical Components [Member] | United States [Member] | ||
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | 117.7 | 121.5 |
Reportable Geographical Components [Member] | China [Member] | ||
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | 57.6 | 49.6 |
Reportable Geographical Components [Member] | Mexico [Member] | ||
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | 56.3 | 49.4 |
Reportable Geographical Components [Member] | Hungary [Member] | ||
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | 55.3 | 59.3 |
Reportable Geographical Components [Member] | Italy [Member] | ||
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | 52.4 | 62 |
Reportable Geographical Components [Member] | Austria [Member] | ||
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | 36.9 | 42.8 |
Reportable Geographical Components [Member] | Germany [Member] | ||
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | 32.8 | 37.2 |
Reportable Geographical Components [Member] | Other [Member] | ||
Segment Reporting Information, Additional Information [Abstract] | ||
Total property, plant and equipment | $ 75.7 | $ 82.5 |
Segment and Geographic Inform_8
Segment and Geographic Information, Net sales by End Market (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 556.7 | $ 541 | $ 548.9 | $ 566.1 | $ 566.6 | $ 512.7 | $ 508.3 | $ 515.5 | $ 2,212.7 | $ 2,103.1 | $ 1,503 |
Commercial HVAC&R [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 674 | 648.3 | 323.8 | ||||||||
Automotive [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 542.8 | 526 | 461 | ||||||||
Commercial Vehicle [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 387.6 | 381.7 | 382.5 | ||||||||
Off-Highway [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 314.1 | 271.2 | 202.8 | ||||||||
Data Center Cooling [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 187 | 137.6 | 57.1 | ||||||||
Industrial Cooling [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 47.8 | 67.6 | 18.6 | ||||||||
Other [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 59.4 | $ 70.7 | $ 57.2 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||||||||
Selected quarterly financial information [Abstract] | |||||||||||||||||||||
Net sales | $ 556.7 | $ 541 | $ 548.9 | $ 566.1 | $ 566.6 | $ 512.7 | $ 508.3 | $ 515.5 | $ 2,212.7 | $ 2,103.1 | $ 1,503 | ||||||||||
Gross profit | 91.6 | 91.7 | 87.9 | 94.3 | 96.5 | 85.4 | 86.1 | 88.5 | 365.5 | 356.5 | 254.4 | ||||||||||
Net earnings (loss) | 6.4 | [1] | 18.3 | [1] | 38.7 | [1] | 22.5 | [1] | 18 | [2] | (27.9) | [2] | 16.3 | [2] | 17.4 | [2] | 85.9 | [1] | 23.8 | [2] | |
Net earnings (loss) attributable to Modine | $ 6.3 | [1] | $ 18 | [1] | $ 38.5 | [1] | $ 22 | [1] | $ 17.6 | [2] | $ (28.3) | [2] | $ 15.9 | [2] | $ 17 | [2] | $ 84.8 | [1] | $ 22.2 | [2] | $ 14.2 |
Net earnings (loss) per share attributable to Modine shareholders [Abstract] | |||||||||||||||||||||
Basic (in dollars per share) | $ 0.12 | $ 0.36 | $ 0.76 | $ 0.43 | $ 0.35 | $ (0.57) | $ 0.32 | $ 0.34 | $ 1.67 | $ 0.44 | $ 0.29 | ||||||||||
Diluted (in dollars per share) | $ 0.12 | $ 0.35 | $ 0.75 | $ 0.43 | $ 0.34 | $ (0.57) | $ 0.31 | $ 0.34 | $ 1.65 | $ 0.43 | $ 0.29 | ||||||||||
Restructuring expenses | $ 8.9 | $ 0.5 | $ 0.2 | $ 4.5 | $ 9.4 | $ 0.4 | $ 1.7 | $ 9.6 | $ 16 | $ 10.9 | |||||||||||
Loss on sale of assets | $ (1.7) | (1.7) | 0 | 2 | |||||||||||||||||
Impairment charges | 0.4 | 1.2 | 1.3 | 0.4 | 2.5 | $ 0 | |||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Provisional income tax expense (benefit) related to US Tax Reform | 38 | ||||||||||||||||||||
Deferred tax assets - change in amount | $ (9.3) | $ (19) | |||||||||||||||||||
United States [Member] | |||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Provisional income tax expense (benefit) related to US Tax Reform | $ 2.2 | (24.4) | 2.3 | $ 35.7 | |||||||||||||||||
Foreign Tax Jurisdictions [Member] | |||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Deferred tax assets - change in amount | $ 1 | $ (2) | $ (2.8) | ||||||||||||||||||
[1] | During fiscal 2019, restructuring expenses totaled $0.2 million, $0.5 million, and $8.9 million for the quarters ended June 30, 2018, December 31, 2018, and March 31, 2019, respectively (see Note 6). During the second quarter of fiscal 2019, the Company sold its South African business within the BHVAC segment and, as a result, recorded a loss of $1.7 million (see Note 1). During the third quarter of fiscal 2019, the Company recorded a $0.4 million impairment charge related to a manufacturing facility in Austria (see Note 6). The Company's income tax benefit for fiscal 2019 includes net benefits of $24.4 million and net charges of $2.2 million in the second and third quarters, respectively, related to the Tax Act and the recognition of foreign tax credits (see Note 8). During fiscal 2019, the Company adjusted its valuation allowances on deferred tax assets related to two separate subsidiaries in China and, as a result, recorded a $2.0 million income tax benefit and a $1.0 million income tax charge in the first and second quarters, respectively (see Note 8). | ||||||||||||||||||||
[2] | During fiscal 2018, restructuring expenses totaled $1.7 million, $0.4 million, $9.4 million, and $4.5 million for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017, and March 31, 2018, respectively (see Note 6). During the third quarter of fiscal 2018, the Company recorded a $1.3 million asset impairment charge related to a manufacturing facility in Austria (see Note 6). During the fourth quarter of fiscal 2018, the Company recorded a $1.2 million impairment charge related to intangible assets (see Note 14). The Company recorded income tax charges totaling $35.7 million and $2.3 million during the third and fourth quarters of fiscal 2018, respectively, related to the Tax Act (see Note 8). During the fourth quarter of fiscal 2018, the Company reversed a portion of a valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded an income tax benefit of $2.8 million (see Note 8). |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Valuation Allowance for Deferred Tax Assets [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 48.9 | $ 49.6 | $ 50.8 | |
Additions Charged (Benefit) to Costs and Expenses | (1.6) | (6.7) | (0.3) | |
Additions Charged to Other Accounts | [1] | (3.9) | 6 | (0.9) |
Balance at End of Period | $ 43.4 | $ 48.9 | $ 49.6 | |
[1] | Foreign currency translation and other adjustments. The fiscal 2018 and 2017 amounts also included increases associated with the Company's acquisition of Luvata HTS. |