Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Current Fiscal Year End Date | --03-31 | |
Document Transition Report | false | |
Entity Registrant Name | MODINE MANUFACTURING CO | |
Entity Incorporation, State or Country Code | WI | |
Entity File Number | 001-01373 | |
Entity Tax Identification Number | 39-0482000 | |
Entity Address, Address Line One | 1500 DeKoven Avenue | |
Entity Address, City or Town | Racine | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53403 | |
City Area Code | 262 | |
Local Phone Number | 636-1200 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 50,746,949 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000067347 | |
Trading Symbol | MOD | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, $0.625 par value |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Net sales | $ 529 | $ 566.1 |
Cost of sales | 445.6 | 471.8 |
Gross profit | 83.4 | 94.3 |
Selling, general and administrative expenses | 63.5 | 59.3 |
Restructuring expenses | 1.8 | 0.2 |
Operating income | 18.1 | 34.8 |
Interest expense | (5.9) | (6.2) |
Other expense - net | (1.1) | (1.1) |
Earnings before income taxes | 11.1 | 27.5 |
Provision for income taxes | (2.9) | (5) |
Net earnings | 8.2 | 22.5 |
Net earnings attributable to noncontrolling interest | (0.2) | (0.5) |
Net earnings attributable to Modine | $ 8 | $ 22 |
Net earnings per share attributable to Modine shareholders: | ||
Basic (in dollars per share) | $ 0.16 | $ 0.43 |
Diluted (in dollars per share) | $ 0.16 | $ 0.43 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 50.7 | 50.3 |
Diluted (in shares) | 51.1 | 51.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Net earnings | $ 8.2 | $ 22.5 |
Other comprehensive income (loss): | ||
Foreign currency translation | 1.8 | (25.1) |
Defined benefit plans, net of income taxes | 1.1 | 1 |
Cash flow hedges, net of income taxes | (0.8) | 0.4 |
Total other comprehensive income (loss) | 2.1 | (23.7) |
Comprehensive income (loss) | 10.3 | (1.2) |
Comprehensive income attributable to noncontrolling interest | (0.1) | (0.1) |
Comprehensive income (loss) attributable to Modine | $ 10.2 | $ (1.3) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Other comprehensive income (loss): | ||
Defined benefit plans, tax | $ 0.3 | $ 0.3 |
Cash flow hedges, tax expense | $ (0.3) | $ 0.1 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | |
ASSETS | |||
Cash and cash equivalents | $ 29.1 | $ 41.7 | |
Trade accounts receivable - net | 336.9 | 338.6 | |
Inventories | 216.2 | 200.7 | |
Other current assets | 69.7 | 65.8 | |
Total current assets | 651.9 | 646.8 | |
Property, plant and equipment - net | 479.1 | 484.7 | |
Intangible assets - net | 114.4 | 116.2 | |
Goodwill | 168.5 | 168.5 | |
Deferred income taxes | 98.2 | 97.1 | |
Other noncurrent assets | 89.2 | 24.7 | |
Total assets | 1,601.3 | 1,538 | [1] |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Short-term debt | 121.5 | 66 | |
Long-term debt - current portion | 33.5 | 48.6 | |
Accounts payable | 272.9 | 280.9 | |
Accrued compensation and employee benefits | 77.5 | 81.7 | |
Other current liabilities | 52.8 | 39.9 | |
Total current liabilities | 558.2 | 517.1 | |
Long-term debt | 302.2 | 335.1 | |
Deferred income taxes | 8.6 | 8.2 | |
Pensions | 100.2 | 101.7 | |
Other noncurrent liabilities | 85.8 | 34.8 | |
Total liabilities | 1,055 | 996.9 | |
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 53.3 million and 52.8 million shares | 33.2 | 33 | |
Additional paid-in capital | 240.2 | 238.6 | |
Retained earnings | 480.1 | 472.1 | |
Accumulated other comprehensive loss | (176.2) | (178.4) | |
Treasury stock, at cost, 2.5 million and 2.1 million shares | (37) | (31.4) | |
Total Modine shareholders' equity | 540.3 | 533.9 | |
Noncontrolling interest | 6 | 7.2 | |
Total equity | 546.3 | 541.1 | |
Total liabilities and equity | $ 1,601.3 | $ 1,538 | |
[1] | The Company adopted new lease accounting guidance and, as a result, recorded $61.3 million of operating lease assets on its consolidated balance sheet on April 1, 2019. See Note 1 for additional information. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
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) | 53.3 | 52.8 |
Treasury stock at cost (in shares) | 2.5 | 2.1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 8.2 | $ 22.5 |
Adjustments to reconcile net earnings to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 18.9 | 19.4 |
Stock-based compensation expense | 1.7 | 2 |
Deferred income taxes | (0.5) | 1 |
Other - net | 0.9 | 0.6 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 1.6 | (18.6) |
Inventories | (15) | (21.7) |
Accounts payable | (3.8) | 15.4 |
Other assets and liabilities | (11.5) | (24.7) |
Net cash provided by (used for) operating activities | 0.5 | (4.1) |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (20.3) | (22.6) |
Other - net | 1.8 | 2.9 |
Net cash used for investing activities | (18.5) | (19.7) |
Cash flows from financing activities: | ||
Borrowings of debt | 342.1 | 105.9 |
Repayments of debt | (329.1) | (72.7) |
Dividend paid to noncontrolling interest | (1.3) | (1.8) |
Purchases of treasury stock under share repurchase program | (2.4) | 0 |
Financing fees paid | (1.1) | 0 |
Other - net | (2.7) | (3.8) |
Net cash provided by financing activities | 5.5 | 27.6 |
Effect of exchange rate changes on cash | (0.1) | (1.8) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (12.6) | 2 |
Cash, cash equivalents and restricted cash - beginning of period | 42.2 | 40.3 |
Cash, cash equivalents and restricted cash - end of period | $ 29.6 | $ 42.3 |
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, 2018 | $ 32.7 | $ 229.9 | $ 394.9 | $ (140.3) | $ (27.1) | $ 8.4 | $ 498.5 |
Balance (in shares) at Mar. 31, 2018 | 52.3 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings attributable to Modine | $ 0 | 0 | 22 | 0 | 0 | 0 | 22 |
Other comprehensive income (loss) | 0 | 0 | 0 | (23.3) | 0 | (0.4) | (23.7) |
Stock options and awards | $ 0.2 | (0.2) | 0 | 0 | 0 | 0 | 0 |
Stock options and awards (in shares) | 0.4 | ||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (3.7) | 0 | (3.7) |
Stock-based compensation expense | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
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 | 0.5 | 0.5 |
Balance at Jun. 30, 2018 | $ 32.9 | 231.7 | 409.3 | (163.6) | (30.8) | 6.7 | 486.2 |
Balance (in shares) at Jun. 30, 2018 | 52.7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of new accounting guidance (Note 1) | $ 0 | 0 | (7.6) | 0 | 0 | 0 | (7.6) |
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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings attributable to Modine | $ 0 | 0 | 8 | 0 | 0 | 0 | $ 8 |
Other comprehensive income (loss) | 0 | 0 | 0 | 2.2 | 0 | (0.1) | 2.1 |
Stock options and awards | $ 0.2 | (0.1) | 0 | 0 | 0 | 0 | 0.1 |
Stock options and awards (in shares) | 0.5 | ||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (5.6) | 0 | (5.6) |
Stock-based compensation expense | 0 | 1.7 | 0 | 0 | 0 | 0 | 1.7 |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | (1.3) | (1.3) |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0.2 | 0.2 |
Balance at Jun. 30, 2019 | $ 33.2 | $ 240.2 | $ 480.1 | $ (176.2) | $ (37) | $ 6 | $ 546.3 |
Balance (in shares) at Jun. 30, 2019 | 53.3 | 53.3 |
General
General | 3 Months Ended |
Jun. 30, 2019 | |
General [Abstract] | |
General | Note 1: General The accompanying condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States applied on a basis consistent with those principles used in the preparation of the annual consolidated financial statements of Modine Manufacturing Company (“Modine” or the “Company”) for the fiscal year ended March 31, 2019, except in regard to the new accounting guidance adopted, as described below. The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results for the interim periods. Results for the first three months of fiscal 2020 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes in Modine's Annual Report on Form 10-K for the year ended March 31, 2019. New Accounting Guidance Adopted in Fiscal 2020 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 adopted this guidance effective April 1, 2019 using a modified-retrospective transition method, under which it elected not to adjust comparative periods. The Company elected the package of practical expedients permitted under the new guidance, and, as a result, the Company did not reassess the classification of existing leases or initial direct costs thereof, or whether existing contracts contain leases. In addition, the Company elected accounting policies to not record short-term leases on the balance sheet and to not separate lease and non-lease components. The Company did not elect the hindsight practical expedient. The Company assessed its global lease portfolio and implemented a new lease accounting software solution and 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. The Company also leases certain manufacturing and IT equipment and vehicles. Upon adoption of this new guidance on April 1, 2019, the Company recognized right-of-use assets for operating leases totaling $61.3 million and corresponding current and noncurrent operating lease liabilities of $12.4 million and $48.9 million, respectively. In addition, the Company assessed two existing build-to-suit arrangements, for which it had recorded property, plant and equipment and long-term debt on its consolidated balance sheet as of March 31, 2019. The Company determined these arrangements represent operating leases under the new accounting guidance. As a result, the Company derecognized the previously-recorded balances and recorded $5.2 million of operating lease right-of-use assets and corresponding lease liabilities. As a result of adopting the new guidance, there was not a significant impact on the Company’s accounting for its previously-recorded capital leases, which are now classified as finance leases under the new guidance. In addition, there was no impact to retained earnings. Also, 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 provided companies the option to reclassify stranded income tax effects to retained earnings. The Company adopted this guidance as of April 1, 2019 and chose not to reclassify stranded income tax effects; therefore, the adoption of this guidance did not impact the Company’s consolidated financial statements. New Accounting Guidance Adopted in Fiscal 2019 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 Company adopted this new guidance as of April 1, 2018, and, as a result, recorded an increase of $ million to retained earnings. 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 as of April 1, 2018, and, as a result, recorded a decrease to retained earnings of $ million. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2: Revenue Recognition Disaggregation of Revenue The table below presents revenue for each of the Company’s business segments, Vehicular Thermal Solutions (“VTS”), Commercial and Industrial Solutions (“CIS”) and Building HVAC Systems (“BHVAC”). Each segment’s revenue is disaggregated by primary end market, by geographic location and based upon the timing of revenue recognition. Three months ended June 30, 2019 VTS CIS BHVAC Segment Primary end market: Automotive $ 129.2 $ - $ - $ 129.2 Commercial vehicle 98.7 - - 98.7 Off-highway 73.9 - - 73.9 Commercial HVAC&R - 130.9 38.0 168.9 Data center cooling - 24.2 10.6 34.8 Industrial cooling - 11.4 - 11.4 Other 24.7 2.3 0.4 27.4 Net sales $ 326.5 $ 168.8 $ 49.0 $ 544.3 Geographic location: Americas $ 153.3 $ 97.1 $ 29.1 $ 279.5 Europe 126.1 58.6 19.9 204.6 Asia 47.1 13.1 - 60.2 Net sales $ 326.5 $ 168.8 $ 49.0 $ 544.3 Timing of revenue recognition: Products transferred at a point in time $ 319.1 $ 143.9 $ 49.0 $ 512.0 Products transferred over time 7.4 24.9 - 32.3 Net sales $ 326.5 $ 168.8 $ 49.0 $ 544.3 Three months ended June 30, 2018 VTS CIS BHVAC Segment Primary end market: Automotive $ 145.1 $ - $ - $ 145.1 Commercial vehicle 99.7 - - 99.7 Off-highway 83.8 - - 83.8 Commercial HVAC&R - 135.3 32.0 167.3 Data center cooling - 34.1 12.2 46.3 Industrial cooling - 11.5 - 11.5 Other 24.2 3.0 0.8 28.0 Net sales $ 352.8 $ 183.9 $ 45.0 $ 581.7 Geographic location: Americas $ 150.9 $ 104.8 $ 25.3 $ 281.0 Europe 148.4 65.2 19.7 233.3 Asia 53.5 13.9 - 67.4 Net sales $ 352.8 $ 183.9 $ 45.0 $ 581.7 Timing of revenue recognition: Products transferred at a point in time $ 342.8 $ 153.6 $ 45.0 $ 541.4 Products transferred over time 10.0 30.3 - 40.3 Net sales $ 352.8 $ 183.9 $ 45.0 $ 581.7 Contract Balances Contract assets and contract liabilities from contracts with customers were as follows: June 30, 2019 March 31, 2019 Contract assets $ 24.2 $ 22.6 Contract liabilities 4.9 4.0 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 $1.6 million increase in contract assets during the first three months of fiscal 2020 primarily resulted from an increase in contract assets for revenue recognized over time 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 $0.9 million increase in contract liabilities during the first three months of fiscal 2020 was primarily related to customer contracts for which payment had been received in advance of the Company’s satisfaction of performance obligations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 3: 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 $6.2 million and $6.0 million as of June 30, 2019 and March 31, 2019, respectively. The fair value of the Company’s long-term debt is disclosed in Note 16. |
Pensions
Pensions | 3 Months Ended |
Jun. 30, 2019 | |
Pensions [Abstract] | |
Pensions | Note 4: Pensions Pension cost included the following components: Three months ended June 30, 2019 2018 Service cost $ 0.1 $ 0.1 Interest cost 2.3 2.4 Expected return on plan assets (3.0 ) (3.0 ) Amortization of unrecognized net loss 1.5 1.4 Net periodic benefit cost $ 0.9 $ 0.9 During the three months ended June 30, 2019 and 2018, the Company contributed $ million and $ million, respectively, to its U.S. pension plans. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 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 calculates compensation expense based upon the fair value of the instruments at the time of grant and subsequently recognizes expense ratably over the respective vesting periods of the stock-based awards. The Company recognized stock-based compensation expense of $1.7 million and $2.0 million for the three months ended June 30, 2019 and 2018, respectively. The performance component of awards granted under the Company’s long-term incentive plan during the first quarter of fiscal 2020 is based upon both a target three-year average cash flow return on invested capital and a target three-year average revenue growth at the end of the three-year performance period. The fair value of stock-based compensation awards granted during the three months ended June 30, 2019 and 2018 were as follows: Three months ended June 30, 2019 2018 Shares Fair Value Per Award Shares Fair Value Per Award Stock options 0.3 $ 5.56 0.2 $ 7.81 Restricted stock awards 0.3 $ 13.26 0.2 $ 17.90 Performance stock awards 0.3 $ 13.26 0.2 $ 17.90 The Company used the following assumptions in determining fair value for stock options: Three months ended June 30, 2019 2018 Expected life of awards in years 6.3 6.3 Risk-free interest rate 2.2 % 2.8 % Expected volatility of the Company’s stock 39.2 % 39.7 % Expected dividend yield on the Company’s stock 0.0 % 0.0 % As of June 30, 2019, unrecognized compensation expense related to non-vested stock-based compensation awards, which will be amortized over the remaining service periods, was as follows: Unrecognized Compensation Expense Weighted-Average Remaining Service Period in Years Stock options $ 3.6 3.1 Restricted stock awards 8.4 3.0 Performance stock awards 4.8 2.2 Total $ 16.8 2.8 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Jun. 30, 2019 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | Note 6: Restructuring Activities The Company’s restructuring actions during the first quarter of fiscal 2020 and 2019 consisted primarily of targeted headcount reductions in Europe and the Americas within the VTS segment and plant consolidation activities. The headcount reductions support the Company’s objective to reduce operational and selling, general and administrative (“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. Restructuring and repositioning expenses were as follows: Three months ended June 30, 2019 2018 Employee severance and related benefits $ 1.5 $ 0.1 Other restructuring and repositioning expenses 0.3 0.1 Total $ 1.8 $ 0.2 Other restructuring and repositioning expenses primarily consist of equipment transfers 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: Three months ended June 30, 2019 2018 Beginning balance $ 10.0 $ 11.0 Additions 1.5 0.1 Payments (3.7 ) (5.8 ) Effect of exchange rate changes - (0.5 ) Ending balance $ 7.8 $ 4.8 |
Other Income and Expense
Other Income and Expense | 3 Months Ended |
Jun. 30, 2019 | |
Other Income and Expense [Abstract] | |
Other Income and Expense | Note 7: Other Income and Expense Other income and expense consisted of the following: Three months ended June 30, 2019 2018 Equity in earnings of non-consolidated affiliate $ 0.1 $ 0.2 Interest income 0.1 0.2 Foreign currency transactions (a) (0.6 ) (0.8 ) Net periodic benefit cost (b) (0.7 ) (0.7 ) Total other expense - net $ (1.1 ) $ (1.1 ) (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 certain 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 | 3 Months Ended |
Jun. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note : Income Taxes The Company’s effective tax rate for the months ended June and was and , respectively. The effective tax rate for the quarter of fiscal is higher than the quarter of the prior year, primarily due to the absence of a reversal of a valuation allowance on deferred tax assets in a foreign jurisdiction recorded during the quarter of fiscal and changes in the mix and amount of foreign and domestic earnings. As of June valuation allowances against deferred tax assets in certain foreign jurisdictions totaled and valuation allowances against certain U.S. deferred tax assets totaled , as it is more likely than not these assets will not be realized based upon historical financial results. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions 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. Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its estimated annual effective tax rate. Under this methodology, the Company applies its estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company records the tax impacts of certain significant, unusual or infrequently occurring items in the period in which they occur. The Company excluded the impact of its operations in certain foreign locations from the overall effective tax rate methodology and recorded them discretely based upon year-to-date results because the Company anticipates net operating losses for the full fiscal year in these jurisdictions. The Company estimates that reductions to unrecognized tax benefits for the remainder of fiscal will total , primarily due to lapses in statutes of limitations, which, if recognized, would have a favorable impact on its effective tax rate. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 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: Three months ended June 30, 2019 2018 Net earnings attributable to Modine $ 8.0 $ 22.0 Less: Undistributed earnings attributable to unvested shares - (0.1 ) Net earnings available to Modine shareholders $ 8.0 $ 21.9 Weighted-average shares outstanding - basic 50.7 50.3 Effect of dilutive securities 0.4 0.9 Weighted-average shares outstanding - diluted 51.1 51.2 Earnings per share: Net earnings per share - basic $ 0.16 $ 0.43 Net earnings per share - diluted $ 0.16 $ 0.43 For the three months ended June 30, 2019 and 2018, the calculation of diluted earnings per share excluded 0.8 million and 0.4 million stock options, respectively, because they were anti-dilutive. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Jun. 30, 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: June 30, 2019 March 31, 2019 Cash and cash equivalents $ 29.1 $ 41.7 Restricted cash 0.5 0.5 Total cash, cash equivalents and restricted cash $ 29.6 $ 42.2 Restricted cash, which is reported within other noncurrent assets in 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 | 3 Months Ended |
Jun. 30, 2019 | |
Inventories [Abstract] | |
Inventories | Note 11: Inventories Inventories consisted of the following: June 30, 2019 March 31, 2019 Raw materials $ 134.1 $ 122.8 Work in process 35.6 32.2 Finished goods 46.5 45.7 Total inventories $ 216.2 $ 200.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Jun. 30, 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: June 30, 2019 March 31, 2019 Land $ 20.9 $ 20.7 Buildings and improvements (10-40 years) 281.0 285.9 Machinery and equipment (3-15 years) 858.7 848.7 Office equipment (3-10 years) 93.6 92.0 Construction in progress 62.6 57.4 1,316.8 1,304.7 Less: accumulated depreciation (837.7 ) (820.0 ) Net property, plant and equipment $ 479.1 $ 484.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 13: Goodwill and Intangible Assets Changes in the carrying amount of goodwill were as follows: VTS CIS BHVAC Total Goodwill, March 31, 2019 $ 0.5 $ 153.9 $ 14.1 $ 168.5 Effect of exchange rate changes - 0.3 (0.3 ) - Goodwill, June 30, 2019 $ 0.5 $ 154.2 $ 13.8 $ 168.5 Intangible assets consisted of the following: June 30, 2019 March 31, 2019 Gross Carrying Value Accumulated Amortization Net Intangible Assets Gross Carrying Value Accumulated Amortization Net Intangible Assets Customer relationships $ 61.7 $ (10.1 ) $ 51.6 $ 61.5 $ (9.1 ) $ 52.4 Trade names 58.9 (14.1 ) 44.8 58.9 (13.5 ) 45.4 Acquired technology 24.0 (6.0 ) 18.0 23.9 (5.5 ) 18.4 Total intangible assets $ 144.6 $ (30.2 ) $ 114.4 $ 144.3 $ (28.1 ) $ 116.2 The Company recorded amortization expense of $2.2 million and $2.3 million for the three months ended June 30, 2019 and 2018, respectively. The Company estimates that it will record $6.7 million of amortization expense during the remainder of fiscal 2020 and approximately $8.0 million of annual amortization expense in fiscal 2021 through 2025. |
Product Warranties
Product Warranties | 3 Months Ended |
Jun. 30, 2019 | |
Product Warranties [Abstract] | |
Product Warranties | Note 14: Product Warranties Changes in accrued warranty costs were as follows: Three months ended June 30, 2019 2018 Beginning balance $ 9.2 $ 9.3 Warranties recorded at time of sale 1.4 1.4 Adjustments to pre-existing warranties (0.6 ) (0.4 ) Settlements (0.9 ) (1.3 ) Effect of exchange rate changes - (0.3 ) Ending balance $ 9.1 $ 8.7 |
Leases
Leases | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 15: Leases Effective April 1, 2019, the Company adopted new lease accounting guidance and, as a result, recorded $61.3 million of right-of-use (“ROU”) assets and corresponding lease liabilities for operating leases on its consolidated balance sheet. The condensed consolidated financial statements for the three months ended June 30, 2019 reflect the adoption of this new guidance; however, the comparable prior-year period has not been adjusted. See Note 1 for additional information regarding the Company’s adoption of the new guidance. Significant Accounting Policy The Company determines if an arrangement is a lease at contract inception. The lease term begins upon lease commencement, which is when the Company takes possession of the asset, and may include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. The Company uses the lease term within its determination of the appropriate lease classification, either as an operating lease or as a finance lease, and to calculate straight-line lease expense for its operating leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company recognizes ROU assets and lease liabilities at the commencement date, based upon the present value of lease payments over the lease term. As its lease agreements typically do not provide an implicit rate, the Company primarily uses an incremental borrowing rate based upon the information available at lease commencement. In determining the incremental borrowing rate, the Company considers its current borrowing rate, the term of the lease, and the economic environments where the lease activity is concentrated. The Company believes this method effectively estimates a borrowing rate that it could obtain for a debt instrument with similar terms as the lease agreement. Based upon its accounting policy, the Company does not separate lease and non-lease components for any asset class. In addition, the Company does not record short-term leases (i.e. leases with an initial term of 12 months or less) on its consolidated balance sheets and recognizes payments for these leases as lease expense. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. These variable lease costs are recognized as variable lease expense when incurred. The depreciable life of the ROU assets and related leasehold improvements are limited by the expected lease term, unless the lease contains a provision to transfer title to the Company or a purchase option that the Company expects to execute. 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. The Company’s most significant leases have remaining lease terms of 1 to 11 years. Certain leases contain renewal options for varying periods, which are at the Company’s discretion. If reasonably certain of exercise, the Company includes the renewal periods within the calculation of ROU assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease assets and liabilities The following table provides a summary of leases recorded on the consolidated balance sheet. Balance Sheet Location June 30, 2019 Lease Assets Operating lease ROU assets Other noncurrent assets $ 64.9 Finance lease ROU assets (a) Property, plant and equipment - net 8.8 Lease Liabilities Operating lease liabilities Other current liabilities $ 12.9 Operating lease liabilities Other noncurrent liabilities 50.7 Finance lease liabilities Long-term debt - current portion 0.3 Finance lease liabilities Long-term debt 3.6 (a) Finance lease ROU assets are recorded net of accumulated amortization of $1.4 million as of June 30, 2019. Components of Lease Expense The Company records operating lease expense as either cost of sales or SG&A expenses within its consolidated statements of operations, depending upon the nature and use of the ROU assets. The Company records finance lease expense as depreciation expense within cost of sales or SG&A expenses, depending upon the nature and use of the ROU assets, and as interest expense in its consolidated statements of operations. The components of lease expense were as follows: Three months ended June 30, 2019 Operating lease expense (a) $ 5.2 Finance lease expense: Depreciation of ROU assets 0.1 Interest on lease liabilities - Total lease expense $ 5.3 (a) For the three months ended June 30, 2019, operating lease expense included $0.9 million of short-term lease expense. Variable lease expense was not significant. Supplemental Cash Flow Information Three months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 3.7 Financing cash flows for finance leases 0.1 ROU assets obtained in exchange for lease liabilities Operating leases $ 0.3 Finance leases - Lease Term and Discount Rates June 30, 2019 Weighted-average remaining lease term: Operating leases 8.9 years Finance leases 9.7 years Weighted-average discount rate: Operating leases 3.4% Finance leases 2.0% Maturity of Lease Liabilities under New Lease Accounting Guidance Future minimum rental payments for leases with initial non-cancellable lease terms in excess of one year were as follows at June 30, 2019: Fiscal Year Operating Leases Finance Leases Remainder of fiscal 2020 $ 11.4 $ 0.4 2021 13.4 0.5 2022 9.9 0.5 2023 8.0 0.5 2024 5.5 0.5 2025 and beyond 24.8 2.5 Total lease payments 73.0 4.9 Less: Interest (9.4 ) (1.0 ) Present value of lease liabilities $ 63.6 $ 3.9 The table above excludes approximately $7.0 million of future lease payments associated with a 15-year operating lease of a manufacturing facility within the CIS segment that commenced in July 2019. Future minimum rental payments for operating leases with initial non-cancellable lease terms in excess of one year were as follows at March 31, 2019: 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 The Company recorded $19.3 million and $18.5 million of rental expense related to operating leases in fiscal 2019 and 2018, respectively. |
Indebtedness
Indebtedness | 3 Months Ended |
Jun. 30, 2019 | |
Indebtedness [Abstract] | |
Indebtedness | Note 16: Indebtedness In June 2019, the Company executed an amended and restated credit agreement with a syndicate of banks that provides for a multi-currency $250.0 million revolving credit facility expiring in June 2024, which modified the Company’s then-existing revolver that would have expired in November 2021. As a result of the credit agreement modification, the Company deferred debt issuance costs of $ million, which will be amortized over the term of the debt. Long-term debt consisted of the following: Fiscal year of maturity June 30, 2019 March 31, 2019 Term loans 2025 $ 200.5 $ 238.4 6.8% Senior Notes 2021 81.0 85.0 5.8% Senior Notes 2027 50.0 50.0 Other (a) - 8.1 14.3 339.6 387.7 Less: current portion (33.5 ) (48.6 ) Less: unamortized debt issuance costs (3.9 ) (4.0 ) Total long-term debt $ 302.2 $ 335.1 (a) Other long-term debt primarily includes borrowings by foreign subsidiaries and finance lease obligations. Fiscal Year Remainder of 2020 $ 24.0 2021 84.7 2022 21.7 2023 21.7 2024 21.7 2025 & beyond 165.8 Total $ 339.6 As of June 30, 2019 and March 31, 2019, the Company reported its revolving credit facility borrowings of $101.6 million and $47.1 million, respectively, as short-term debt on the consolidated balance sheets. At June 30, 2019, domestic letters of credit totaled $5.3 million, resulting in available borrowings under the Company’s revolving credit facility of $143.1 million. The Company also maintains credit agreements for its foreign subsidiaries, with outstanding short-term borrowings at June 30, 2019 and March 31, 2019 of $19.9 million and $18.9 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 of certain asset sales. The Company is also subject to a leverage ratio covenant, 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 June 30, 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 June 30, 2019 and March 31, 2019, 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 $134.0 million and $137.2 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 3 for the definition of a Level 2 fair value measurement. |
Contingencies and Litigation
Contingencies and Litigation | 3 Months Ended |
Jun. 30, 2019 | |
Contingencies and Litigation [Abstract] | |
Contingencies and Litigation | Note 17: Contingencies and Litigation 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 as of June 30, 2019 and March 31, 2019. 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 | 3 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 18: Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss were as follows: Three months ended June 30, 2019 Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Beginning balance $ (42.6 ) $ (136.3 ) $ 0.5 $ (178.4 ) Other comprehensive income (loss) before reclassifications 1.9 - (1.0 ) 0.9 Reclassifications: Amortization of unrecognized net loss (a) - 1.4 - 1.4 Realized gains - net (b) - - (0.1 ) (0.1 ) Income taxes - (0.3 ) 0.3 - Total other comprehensive income (loss) 1.9 1.1 (0.8 ) 2.2 Ending balance $ (40.7 ) $ (135.2 ) $ (0.3 ) $ (176.2 ) Three months ended June 30, 2018 Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Beginning balance $ (5.5 ) $ (134.9 ) $ 0.1 $ (140.3 ) Other comprehensive income before reclassifications (24.7 ) - 0.5 (24.2 ) Reclassifications for amortization of unrecognized net loss (a) - 1.3 - 1.3 Income taxes - (0.3 ) (0.1 ) (0.4 ) Total other comprehensive income (24.7 ) 1.0 0.4 (23.3 ) Ending balance $ (30.2 ) $ (133.9 ) $ 0.5 $ (163.6 ) (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 4 for additional information about the Company's pension plans. (b) Amount represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2019 | |
Segment Information [Abstract] | |
Segment Information | Note 19: Segment Information The following is a summary of net sales, gross profit, operating income, and total assets by segment: Three months ended June 30, 2019 2018 External Sales Inter-segment Sales Total External Sales Inter-segment Sales Total Net sales: VTS $ 312.6 $ 13.9 $ 326.5 $ 338.3 $ 14.5 $ 352.8 CIS 167.9 0.9 168.8 183.5 0.4 183.9 BHVAC 48.5 0.5 49.0 44.3 0.7 45.0 Segment total 529.0 15.3 544.3 566.1 15.6 581.7 Corporate and eliminations - (15.3 ) (15.3 ) - (15.6 ) (15.6 ) Net sales $ 529.0 $ - $ 529.0 $ 566.1 $ - $ 566.1 Three months ended June 30, 2019 2018 $'s % of sales $'s % of sales Gross profit: VTS $ 45.0 13.8 % $ 54.0 15.3 % CIS 24.3 14.4 % 28.6 15.6 % BHVAC 13.7 27.9 % 11.6 25.9 % Segment total 83.0 15.2 % 94.2 16.2 % Corporate and eliminations 0.4 - 0.1 - Gross profit $ 83.4 15.8 % $ 94.3 16.7 % Three months ended June 30, 2019 2018 Operating income: VTS $ 17.3 $ 25.5 CIS 9.0 13.2 BHVAC 5.3 3.2 Segment total 31.6 41.9 Corporate and eliminations (13.5 ) (7.1 ) Operating income $ 18.1 $ 34.8 June 30, 2019 March 31, 2019 Total assets: (a) VTS $ 767.9 $ 749.9 CIS 628.2 604.2 BHVAC 107.0 89.4 Corporate and eliminations 98.2 94.5 Total assets $ 1,601.3 $ 1,538.0 (a) The Company adopted new lease accounting guidance and, as a result, recorded $61.3 million of operating lease assets on its consolidated balance sheet on April 1, 2019. See Note 1 for additional information. |
General (Policies)
General (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
General [Abstract] | |
New Accounting Guidance Adopted | New Accounting Guidance Adopted in Fiscal 2020 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 adopted this guidance effective April 1, 2019 using a modified-retrospective transition method, under which it elected not to adjust comparative periods. The Company elected the package of practical expedients permitted under the new guidance, and, as a result, the Company did not reassess the classification of existing leases or initial direct costs thereof, or whether existing contracts contain leases. In addition, the Company elected accounting policies to not record short-term leases on the balance sheet and to not separate lease and non-lease components. The Company did not elect the hindsight practical expedient. The Company assessed its global lease portfolio and implemented a new lease accounting software solution and 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. The Company also leases certain manufacturing and IT equipment and vehicles. Upon adoption of this new guidance on April 1, 2019, the Company recognized right-of-use assets for operating leases totaling $61.3 million and corresponding current and noncurrent operating lease liabilities of $12.4 million and $48.9 million, respectively. In addition, the Company assessed two existing build-to-suit arrangements, for which it had recorded property, plant and equipment and long-term debt on its consolidated balance sheet as of March 31, 2019. The Company determined these arrangements represent operating leases under the new accounting guidance. As a result, the Company derecognized the previously-recorded balances and recorded $5.2 million of operating lease right-of-use assets and corresponding lease liabilities. As a result of adopting the new guidance, there was not a significant impact on the Company’s accounting for its previously-recorded capital leases, which are now classified as finance leases under the new guidance. In addition, there was no impact to retained earnings. Also, 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 provided companies the option to reclassify stranded income tax effects to retained earnings. The Company adopted this guidance as of April 1, 2019 and chose not to reclassify stranded income tax effects; therefore, the adoption of this guidance did not impact the Company’s consolidated financial statements. New Accounting Guidance Adopted in Fiscal 2019 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 Company adopted this new guidance as of April 1, 2018, and, as a result, recorded an increase of $ million to retained earnings. 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 as of April 1, 2018, and, as a result, recorded a decrease to retained earnings of $ million. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The table below presents revenue for each of the Company’s business segments, Vehicular Thermal Solutions (“VTS”), Commercial and Industrial Solutions (“CIS”) and Building HVAC Systems (“BHVAC”). Each segment’s revenue is disaggregated by primary end market, by geographic location and based upon the timing of revenue recognition. Three months ended June 30, 2019 VTS CIS BHVAC Segment Primary end market: Automotive $ 129.2 $ - $ - $ 129.2 Commercial vehicle 98.7 - - 98.7 Off-highway 73.9 - - 73.9 Commercial HVAC&R - 130.9 38.0 168.9 Data center cooling - 24.2 10.6 34.8 Industrial cooling - 11.4 - 11.4 Other 24.7 2.3 0.4 27.4 Net sales $ 326.5 $ 168.8 $ 49.0 $ 544.3 Geographic location: Americas $ 153.3 $ 97.1 $ 29.1 $ 279.5 Europe 126.1 58.6 19.9 204.6 Asia 47.1 13.1 - 60.2 Net sales $ 326.5 $ 168.8 $ 49.0 $ 544.3 Timing of revenue recognition: Products transferred at a point in time $ 319.1 $ 143.9 $ 49.0 $ 512.0 Products transferred over time 7.4 24.9 - 32.3 Net sales $ 326.5 $ 168.8 $ 49.0 $ 544.3 Three months ended June 30, 2018 VTS CIS BHVAC Segment Primary end market: Automotive $ 145.1 $ - $ - $ 145.1 Commercial vehicle 99.7 - - 99.7 Off-highway 83.8 - - 83.8 Commercial HVAC&R - 135.3 32.0 167.3 Data center cooling - 34.1 12.2 46.3 Industrial cooling - 11.5 - 11.5 Other 24.2 3.0 0.8 28.0 Net sales $ 352.8 $ 183.9 $ 45.0 $ 581.7 Geographic location: Americas $ 150.9 $ 104.8 $ 25.3 $ 281.0 Europe 148.4 65.2 19.7 233.3 Asia 53.5 13.9 - 67.4 Net sales $ 352.8 $ 183.9 $ 45.0 $ 581.7 Timing of revenue recognition: Products transferred at a point in time $ 342.8 $ 153.6 $ 45.0 $ 541.4 Products transferred over time 10.0 30.3 - 40.3 Net sales $ 352.8 $ 183.9 $ 45.0 $ 581.7 |
Contract Assets and Contract Liabilities from Contracts with Customers | Contract assets and contract liabilities from contracts with customers were as follows: June 30, 2019 March 31, 2019 Contract assets $ 24.2 $ 22.6 Contract liabilities 4.9 4.0 |
Pensions (Tables)
Pensions (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Pensions [Abstract] | |
Pension Cost | Pension cost included the following components: Three months ended June 30, 2019 2018 Service cost $ 0.1 $ 0.1 Interest cost 2.3 2.4 Expected return on plan assets (3.0 ) (3.0 ) Amortization of unrecognized net loss 1.5 1.4 Net periodic benefit cost $ 0.9 $ 0.9 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Fair Market Value of Stock-Based Compensation Awards | The fair value of stock-based compensation awards granted during the three months ended June 30, 2019 and 2018 were as follows: Three months ended June 30, 2019 2018 Shares Fair Value Per Award Shares Fair Value Per Award Stock options 0.3 $ 5.56 0.2 $ 7.81 Restricted stock awards 0.3 $ 13.26 0.2 $ 17.90 Performance stock awards 0.3 $ 13.26 0.2 $ 17.90 |
Assumptions Used in Determining Fair Value of Stock Options | The Company used the following assumptions in determining fair value for stock options: Three months ended June 30, 2019 2018 Expected life of awards in years 6.3 6.3 Risk-free interest rate 2.2 % 2.8 % Expected volatility of the Company’s stock 39.2 % 39.7 % Expected dividend yield on the Company’s stock 0.0 % 0.0 % |
Unrecognized Compensation Expenses Related to Non-Vested Stock-Based Compensation Awards | As of June 30, 2019, unrecognized compensation expense related to non-vested stock-based compensation awards, which will be amortized over the remaining service periods, was as follows: Unrecognized Compensation Expense Weighted-Average Remaining Service Period in Years Stock options $ 3.6 3.1 Restricted stock awards 8.4 3.0 Performance stock awards 4.8 2.2 Total $ 16.8 2.8 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Restructuring Activities [Abstract] | |
Restructuring and Repositioning Expenses | Restructuring and repositioning expenses were as follows: Three months ended June 30, 2019 2018 Employee severance and related benefits $ 1.5 $ 0.1 Other restructuring and repositioning expenses 0.3 0.1 Total $ 1.8 $ 0.2 |
Changes in Accrued Severance | Three months ended June 30, 2019 2018 Beginning balance $ 10.0 $ 11.0 Additions 1.5 0.1 Payments (3.7 ) (5.8 ) Effect of exchange rate changes - (0.5 ) Ending balance $ 7.8 $ 4.8 |
Other Income and Expense (Table
Other Income and Expense (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Other Income and Expense [Abstract] | |
Other Income and Expense | Other income and expense consisted of the following: Three months ended June 30, 2019 2018 Equity in earnings of non-consolidated affiliate $ 0.1 $ 0.2 Interest income 0.1 0.2 Foreign currency transactions (a) (0.6 ) (0.8 ) Net periodic benefit cost (b) (0.7 ) (0.7 ) Total other expense - net $ (1.1 ) $ (1.1 ) (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 certain foreign currency exchange contracts. (b) Represents net periodic benefit cost, exclusive of service cost, for the Company's pension and postretirement plans. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share were as follows: Three months ended June 30, 2019 2018 Net earnings attributable to Modine $ 8.0 $ 22.0 Less: Undistributed earnings attributable to unvested shares - (0.1 ) Net earnings available to Modine shareholders $ 8.0 $ 21.9 Weighted-average shares outstanding - basic 50.7 50.3 Effect of dilutive securities 0.4 0.9 Weighted-average shares outstanding - diluted 51.1 51.2 Earnings per share: Net earnings per share - basic $ 0.16 $ 0.43 Net earnings per share - diluted $ 0.16 $ 0.43 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Jun. 30, 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: June 30, 2019 March 31, 2019 Cash and cash equivalents $ 29.1 $ 41.7 Restricted cash 0.5 0.5 Total cash, cash equivalents and restricted cash $ 29.6 $ 42.2 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Inventories [Abstract] | |
Inventories | Inventories consisted of the following: June 30, 2019 March 31, 2019 Raw materials $ 134.1 $ 122.8 Work in process 35.6 32.2 Finished goods 46.5 45.7 Total inventories $ 216.2 $ 200.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, including depreciable lives, consisted of the following: June 30, 2019 March 31, 2019 Land $ 20.9 $ 20.7 Buildings and improvements (10-40 years) 281.0 285.9 Machinery and equipment (3-15 years) 858.7 848.7 Office equipment (3-10 years) 93.6 92.0 Construction in progress 62.6 57.4 1,316.8 1,304.7 Less: accumulated depreciation (837.7 ) (820.0 ) Net property, plant and equipment $ 479.1 $ 484.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows: VTS CIS BHVAC Total Goodwill, March 31, 2019 $ 0.5 $ 153.9 $ 14.1 $ 168.5 Effect of exchange rate changes - 0.3 (0.3 ) - Goodwill, June 30, 2019 $ 0.5 $ 154.2 $ 13.8 $ 168.5 |
Intangible Assets | Intangible assets consisted of the following: June 30, 2019 March 31, 2019 Gross Carrying Value Accumulated Amortization Net Intangible Assets Gross Carrying Value Accumulated Amortization Net Intangible Assets Customer relationships $ 61.7 $ (10.1 ) $ 51.6 $ 61.5 $ (9.1 ) $ 52.4 Trade names 58.9 (14.1 ) 44.8 58.9 (13.5 ) 45.4 Acquired technology 24.0 (6.0 ) 18.0 23.9 (5.5 ) 18.4 Total intangible assets $ 144.6 $ (30.2 ) $ 114.4 $ 144.3 $ (28.1 ) $ 116.2 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Product Warranties [Abstract] | |
Changes in Accrued Warranty Costs | Changes in accrued warranty costs were as follows: Three months ended June 30, 2019 2018 Beginning balance $ 9.2 $ 9.3 Warranties recorded at time of sale 1.4 1.4 Adjustments to pre-existing warranties (0.6 ) (0.4 ) Settlements (0.9 ) (1.3 ) Effect of exchange rate changes - (0.3 ) Ending balance $ 9.1 $ 8.7 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Assets and Liabilities Recorded in Consolidated Balance Sheet | The following table provides a summary of leases recorded on the consolidated balance sheet. Balance Sheet Location June 30, 2019 Lease Assets Operating lease ROU assets Other noncurrent assets $ 64.9 Finance lease ROU assets (a) Property, plant and equipment - net 8.8 Lease Liabilities Operating lease liabilities Other current liabilities $ 12.9 Operating lease liabilities Other noncurrent liabilities 50.7 Finance lease liabilities Long-term debt - current portion 0.3 Finance lease liabilities Long-term debt 3.6 (a) Finance lease ROU assets are recorded net of accumulated amortization of $1.4 million as of June 30, 2019. |
Components of Lease Expense | The components of lease expense were as follows: Three months ended June 30, 2019 Operating lease expense (a) $ 5.2 Finance lease expense: Depreciation of ROU assets 0.1 Interest on lease liabilities - Total lease expense $ 5.3 (a) For the three months ended June 30, 2019, operating lease expense included $0.9 million of short-term lease expense. Variable lease expense was not significant. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 3.7 Financing cash flows for finance leases 0.1 ROU assets obtained in exchange for lease liabilities Operating leases $ 0.3 Finance leases - |
Lease Term and Discount Rates | Lease Term and Discount Rates June 30, 2019 Weighted-average remaining lease term: Operating leases 8.9 years Finance leases 9.7 years Weighted-average discount rate: Operating leases 3.4% Finance leases 2.0% |
Maturity of Lease Liabilities under New Lease Accounting Guidance | Future minimum rental payments for leases with initial non-cancellable lease terms in excess of one year were as follows at June 30, 2019: Fiscal Year Operating Leases Finance Leases Remainder of fiscal 2020 $ 11.4 $ 0.4 2021 13.4 0.5 2022 9.9 0.5 2023 8.0 0.5 2024 5.5 0.5 2025 and beyond 24.8 2.5 Total lease payments 73.0 4.9 Less: Interest (9.4 ) (1.0 ) Present value of lease liabilities $ 63.6 $ 3.9 |
Maturity of Lease Liabilities under Previous Lease Accounting Guidance | Future minimum rental payments for operating leases with initial non-cancellable lease terms in excess of one year were as follows at March 31, 2019: 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) | 3 Months Ended |
Jun. 30, 2019 | |
Indebtedness [Abstract] | |
Long-Term Indebtedness | Long-term debt consisted of the following: Fiscal year of maturity June 30, 2019 March 31, 2019 Term loans 2025 $ 200.5 $ 238.4 6.8% Senior Notes 2021 81.0 85.0 5.8% Senior Notes 2027 50.0 50.0 Other (a) - 8.1 14.3 339.6 387.7 Less: current portion (33.5 ) (48.6 ) Less: unamortized debt issuance costs (3.9 ) (4.0 ) Total long-term debt $ 302.2 $ 335.1 (a) Other long-term debt primarily includes borrowings by foreign subsidiaries and finance lease obligations. |
Maturities of Long Term Debt and Capital Lease Obligations | Table of Contents Long-term debt matures as follows: Fiscal Year Remainder of 2020 $ 24.0 2021 84.7 2022 21.7 2023 21.7 2024 21.7 2025 & beyond 165.8 Total $ 339.6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss were as follows: Three months ended June 30, 2019 Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Beginning balance $ (42.6 ) $ (136.3 ) $ 0.5 $ (178.4 ) Other comprehensive income (loss) before reclassifications 1.9 - (1.0 ) 0.9 Reclassifications: Amortization of unrecognized net loss (a) - 1.4 - 1.4 Realized gains - net (b) - - (0.1 ) (0.1 ) Income taxes - (0.3 ) 0.3 - Total other comprehensive income (loss) 1.9 1.1 (0.8 ) 2.2 Ending balance $ (40.7 ) $ (135.2 ) $ (0.3 ) $ (176.2 ) Three months ended June 30, 2018 Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Beginning balance $ (5.5 ) $ (134.9 ) $ 0.1 $ (140.3 ) Other comprehensive income before reclassifications (24.7 ) - 0.5 (24.2 ) Reclassifications for amortization of unrecognized net loss (a) - 1.3 - 1.3 Income taxes - (0.3 ) (0.1 ) (0.4 ) Total other comprehensive income (24.7 ) 1.0 0.4 (23.3 ) Ending balance $ (30.2 ) $ (133.9 ) $ 0.5 $ (163.6 ) (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 4 for additional information about the Company's pension plans. (b) Amount represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Segment Information [Abstract] | |
Net Sales, Gross Profit, Operating Income and Total Assets by Segment | The following is a summary of net sales, gross profit, operating income, and total assets by segment: Three months ended June 30, 2019 2018 External Sales Inter-segment Sales Total External Sales Inter-segment Sales Total Net sales: VTS $ 312.6 $ 13.9 $ 326.5 $ 338.3 $ 14.5 $ 352.8 CIS 167.9 0.9 168.8 183.5 0.4 183.9 BHVAC 48.5 0.5 49.0 44.3 0.7 45.0 Segment total 529.0 15.3 544.3 566.1 15.6 581.7 Corporate and eliminations - (15.3 ) (15.3 ) - (15.6 ) (15.6 ) Net sales $ 529.0 $ - $ 529.0 $ 566.1 $ - $ 566.1 Three months ended June 30, 2019 2018 $'s % of sales $'s % of sales Gross profit: VTS $ 45.0 13.8 % $ 54.0 15.3 % CIS 24.3 14.4 % 28.6 15.6 % BHVAC 13.7 27.9 % 11.6 25.9 % Segment total 83.0 15.2 % 94.2 16.2 % Corporate and eliminations 0.4 - 0.1 - Gross profit $ 83.4 15.8 % $ 94.3 16.7 % Three months ended June 30, 2019 2018 Operating income: VTS $ 17.3 $ 25.5 CIS 9.0 13.2 BHVAC 5.3 3.2 Segment total 31.6 41.9 Corporate and eliminations (13.5 ) (7.1 ) Operating income $ 18.1 $ 34.8 June 30, 2019 March 31, 2019 Total assets: (a) VTS $ 767.9 $ 749.9 CIS 628.2 604.2 BHVAC 107.0 89.4 Corporate and eliminations 98.2 94.5 Total assets $ 1,601.3 $ 1,538.0 (a) The Company adopted new lease accounting guidance and, as a result, recorded $61.3 million of operating lease assets on its consolidated balance sheet on April 1, 2019. See Note 1 for additional information. |
General (Details)
General (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Leases [Abstract] | |||
Right-of-use assets | $ 64.9 | $ 61.3 | |
Operating lease liabilities, Other current liabilities | 12.9 | ||
Operating lease liabilities, Other noncurrent liabilities | 50.7 | ||
Operating leases, right-of-use liabilitiess | 63.6 | ||
New Accounting Guidance Adopted [Abstract] | |||
Retained earnings | 480.1 | 472.1 | |
Real Estate Leases [Member] | |||
Leases [Abstract] | |||
Right-of-use assets | 61.3 | ||
Operating lease liabilities, Other current liabilities | 12.4 | ||
Operating lease liabilities, Other noncurrent liabilities | 48.9 | ||
Build to Suit Arrangements [Member] | |||
Leases [Abstract] | |||
Right-of-use assets | $ 5.2 | ||
Operating leases, right-of-use liabilitiess | $ 5.2 | ||
ASU 2014-09 [Member] | |||
New Accounting Guidance Adopted [Abstract] | |||
Retained earnings | $ 0.7 | ||
ASU 2016-16 [Member] | |||
New Accounting Guidance Adopted [Abstract] | |||
Retained earnings | $ (8.3) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 529 | $ 566.1 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Contract assets | 24.2 | $ 22.6 | |
Contract liabilities | 4.9 | $ 4 | |
Increase in contract assets | 1.6 | ||
Increase in contract liabilities | 0.9 | ||
VTS [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 326.5 | 352.8 | |
VTS [Member] | Products Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 319.1 | 342.8 | |
VTS [Member] | Products Transferred Over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 7.4 | 10 | |
VTS [Member] | Americas [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 153.3 | 150.9 | |
VTS [Member] | Europe [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 126.1 | 148.4 | |
VTS [Member] | Asia [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 47.1 | 53.5 | |
VTS [Member] | Automotive [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 129.2 | 145.1 | |
VTS [Member] | Commercial Vehicle [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 98.7 | 99.7 | |
VTS [Member] | Off-Highway [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 73.9 | 83.8 | |
VTS [Member] | Commercial HVAC&R [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
VTS [Member] | Data Center Cooling [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
VTS [Member] | Industrial Cooling [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
VTS [Member] | Other [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 24.7 | 24.2 | |
CIS [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 168.8 | 183.9 | |
CIS [Member] | Products Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 143.9 | 153.6 | |
CIS [Member] | Products Transferred Over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 24.9 | 30.3 | |
CIS [Member] | Americas [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 97.1 | 104.8 | |
CIS [Member] | Europe [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 58.6 | 65.2 | |
CIS [Member] | Asia [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 13.1 | 13.9 | |
CIS [Member] | Automotive [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
CIS [Member] | Commercial Vehicle [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
CIS [Member] | Off-Highway [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
CIS [Member] | Commercial HVAC&R [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 130.9 | 135.3 | |
CIS [Member] | Data Center Cooling [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 24.2 | 34.1 | |
CIS [Member] | Industrial Cooling [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 11.4 | 11.5 | |
CIS [Member] | Other [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 2.3 | 3 | |
BHVAC [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 49 | 45 | |
BHVAC [Member] | Products Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 49 | 45 | |
BHVAC [Member] | Products Transferred Over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
BHVAC [Member] | Americas [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 29.1 | 25.3 | |
BHVAC [Member] | Europe [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 19.9 | 19.7 | |
BHVAC [Member] | Asia [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
BHVAC [Member] | Automotive [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
BHVAC [Member] | Commercial Vehicle [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
BHVAC [Member] | Off-Highway [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
BHVAC [Member] | Commercial HVAC&R [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 38 | 32 | |
BHVAC [Member] | Data Center Cooling [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 10.6 | 12.2 | |
BHVAC [Member] | Industrial Cooling [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0 | 0 | |
BHVAC [Member] | Other [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 0.4 | 0.8 | |
Total Segments [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 544.3 | 581.7 | |
Total Segments [Member] | Products Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 512 | 541.4 | |
Total Segments [Member] | Products Transferred Over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 32.3 | 40.3 | |
Total Segments [Member] | Americas [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 279.5 | 281 | |
Total Segments [Member] | Europe [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 204.6 | 233.3 | |
Total Segments [Member] | Asia [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 60.2 | 67.4 | |
Total Segments [Member] | Automotive [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 129.2 | 145.1 | |
Total Segments [Member] | Commercial Vehicle [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 98.7 | 99.7 | |
Total Segments [Member] | Off-Highway [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 73.9 | 83.8 | |
Total Segments [Member] | Commercial HVAC&R [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 168.9 | 167.3 | |
Total Segments [Member] | Data Center Cooling [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 34.8 | 46.3 | |
Total Segments [Member] | Industrial Cooling [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | 11.4 | 11.5 | |
Total Segments [Member] | Other [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Net sales | $ 27.4 | $ 28 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Fair Value Measurements [Abstract] | ||
Trading securities | $ 6.2 | $ 6 |
Deferred compensation obligations | $ 6.2 | $ 6 |
Pensions (Details)
Pensions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Components of net periodic benefit cost [Abstract] | |||
Net periodic benefit cost | [1] | $ 0.7 | $ 0.7 |
Pension [Member] | |||
Components of net periodic benefit cost [Abstract] | |||
Service cost | 0.1 | 0.1 | |
Interest cost | 2.3 | 2.4 | |
Expected return on plan assets | (3) | (3) | |
Amortization of unrecognized net loss | 1.5 | 1.4 | |
Net periodic benefit cost | 0.9 | 0.9 | |
Pension [Member] | United States [Member] | |||
Defined benefit plan, plan assets [Abstract] | |||
Employer contributions | $ 0.9 | $ 1.9 | |
[1] | Represents net periodic benefit cost, exclusive of service cost, for the Company's pension and postretirement plans. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation [Abstract] | ||
Stock-based compensation cost | $ 1.7 | $ 2 |
Unrecognized compensation expenses and recognition period [Abstract] | ||
Unrecognized compensation expense | $ 16.8 | |
Weighted-average remaining service period | 2 years 9 months 18 days | |
Stock Options [Member] | ||
Type and fair value of stock-based compensation awards granted [Abstract] | ||
Options granted (in shares) | 0.3 | 0.2 |
Fair value of options granted (in dollars per share) | $ 5.56 | $ 7.81 |
Assumptions used in determining fair value of options [Abstract] | ||
Expected life of awards | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free interest rate | 2.20% | 2.80% |
Expected volatility of the Company's stock | 39.20% | 39.70% |
Expected dividend yield on the Company's stock | 0.00% | 0.00% |
Unrecognized compensation expenses and recognition period [Abstract] | ||
Unrecognized compensation expense | $ 3.6 | |
Weighted-average remaining service period | 3 years 1 month 6 days | |
Restricted Stock Awards [Member] | ||
Type and fair value of stock-based compensation awards granted [Abstract] | ||
Stock granted (in shares) | 0.3 | 0.2 |
Fair value of stock granted (in dollars per share) | $ 13.26 | $ 17.90 |
Unrecognized compensation expenses and recognition period [Abstract] | ||
Unrecognized compensation expense | $ 8.4 | |
Weighted-average remaining service period | 3 years | |
Performance Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Award performance period | 3 years | |
Type and fair value of stock-based compensation awards granted [Abstract] | ||
Stock granted (in shares) | 0.3 | 0.2 |
Fair value of stock granted (in dollars per share) | $ 13.26 | $ 17.90 |
Unrecognized compensation expenses and recognition period [Abstract] | ||
Unrecognized compensation expense | $ 4.8 | |
Weighted-average remaining service period | 2 years 2 months 12 days |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring and repositioning expenses [Abstract] | ||
Employee severance and related benefits | $ 1.5 | $ 0.1 |
Other restructuring and repositioning expenses | 0.3 | 0.1 |
Total | 1.8 | 0.2 |
Changes in accrued severance [Roll Forward] | ||
Beginning balance | 10 | 11 |
Additions | 1.5 | 0.1 |
Payments | (3.7) | (5.8) |
Effect of exchange rate changes | 0 | (0.5) |
Ending balance | $ 7.8 | $ 4.8 |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Other Income and Expense [Abstract] | |||
Equity in earnings of non-consolidated affiliate | $ 0.1 | $ 0.2 | |
Interest income | 0.1 | 0.2 | |
Foreign currency transactions | [1] | (0.6) | (0.8) |
Net periodic benefit cost | [2] | (0.7) | (0.7) |
Total other expense - net | $ (1.1) | $ (1.1) | |
[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 certain foreign currency exchange contracts.(b) | ||
[2] | Represents net periodic benefit cost, exclusive of service cost, for the Company's pension and postretirement plans. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2020 | |
Income Taxes [Abstract] | |||
Effective income tax rate | 26.10% | 18.20% | |
Net of valuation allowance, classification [Abstract] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 2.2 | ||
Forecast [Member] | |||
Net of valuation allowance, classification [Abstract] | |||
Lapse of statute of limitations | $ (2.8) | ||
Foreign Tax Jurisdiction [Member] | |||
Net of valuation allowance, classification [Abstract] | |||
Changes in deferred tax asset valuation allowances | $ (2) | ||
Valuation allowance - deferred tax assets | 38.1 | ||
Domestic Tax Jurisdiction [Member] | |||
Net of valuation allowance, classification [Abstract] | |||
Valuation allowance - deferred tax assets | $ 6.8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Components of basic and diluted earnings per share [Abstract] | ||
Net earnings attributable to Modine | $ 8 | $ 22 |
Less: Undistributed earnings attributable to unvested shares | 0 | (0.1) |
Net earnings available to Modine shareholders | $ 8 | $ 21.9 |
Weighted-average shares outstanding - basic (in shares) | 50.7 | 50.3 |
Effect of dilutive securities (in shares) | 0.4 | 0.9 |
Weighted-average shares outstanding - diluted (in shares) | 51.1 | 51.2 |
Earnings per share [Abstract] | ||
Net earnings per share - basic (in dollars per share) | $ 0.16 | $ 0.43 |
Net earnings per share - diluted (in dollars per share) | $ 0.16 | $ 0.43 |
Stock Options [Member] | ||
Antidilutive securities excluded from computation of earning per share [Abstract] | ||
Antidilutive securities excluded from computation of earning per share (in shares) | 0.8 | 0.4 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Cash, Cash Equivalents and Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 29.1 | $ 41.7 | ||
Restricted cash | 0.5 | 0.5 | ||
Total cash, cash equivalents and restricted cash | $ 29.6 | $ 42.2 | $ 42.3 | $ 40.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Inventories [Abstract] | ||
Raw materials | $ 134.1 | $ 122.8 |
Work in process | 35.6 | 32.2 |
Finished goods | 46.5 | 45.7 |
Total inventories | $ 216.2 | $ 200.7 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Property, plant and equipment, including depreciable lives [Abstract] | ||
Gross property, plant and equipment | $ 1,316.8 | $ 1,304.7 |
Less: accumulated depreciation | (837.7) | (820) |
Net property, plant and equipment | 479.1 | 484.7 |
Land [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Gross property, plant and equipment | 20.9 | 20.7 |
Buildings and Improvements [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Gross property, plant and equipment | $ 281 | $ 285.9 |
Buildings and Improvements [Member] | Minimum [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Property, plant and equipment, depreciable lives | 10 years | 10 years |
Buildings and Improvements [Member] | Maximum [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Property, plant and equipment, depreciable lives | 40 years | 40 years |
Machinery and Equipment [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Gross property, plant and equipment | $ 858.7 | $ 848.7 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Property, plant and equipment, depreciable lives | 3 years | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Property, plant and equipment, depreciable lives | 15 years | 15 years |
Office Equipment [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Gross property, plant and equipment | $ 93.6 | $ 92 |
Office Equipment [Member] | Minimum [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Property, plant and equipment, depreciable lives | 3 years | 3 years |
Office Equipment [Member] | Maximum [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Property, plant and equipment, depreciable lives | 10 years | 10 years |
Construction in Progress [Member] | ||
Property, plant and equipment, including depreciable lives [Abstract] | ||
Gross property, plant and equipment | $ 62.6 | $ 57.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 168.5 | ||
Effect of exchange rate changes | 0 | ||
Goodwill, ending balance | 168.5 | ||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 144.6 | $ 144.3 | |
Accumulated amortization | (30.2) | (28.1) | |
Net intangible assets | 114.4 | 116.2 | |
Amortization expense | 2.2 | $ 2.3 | |
Estimated future amortization expense [Abstract] | |||
Remainder of fiscal 2020 | 6.7 | ||
2021 | 8 | ||
2022 | 8 | ||
2023 | 8 | ||
2024 | 8 | ||
2025 | 8 | ||
VTS [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 0.5 | ||
Effect of exchange rate changes | 0 | ||
Goodwill, ending balance | 0.5 | ||
CIS [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 153.9 | ||
Effect of exchange rate changes | 0.3 | ||
Goodwill, ending balance | 154.2 | ||
BHVAC [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 14.1 | ||
Effect of exchange rate changes | (0.3) | ||
Goodwill, ending balance | 13.8 | ||
Customer Relationships [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 61.7 | 61.5 | |
Accumulated amortization | (10.1) | (9.1) | |
Net intangible assets | 51.6 | 52.4 | |
Trade Names [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 58.9 | 58.9 | |
Accumulated amortization | (14.1) | (13.5) | |
Net intangible assets | 44.8 | 45.4 | |
Acquired Technology [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 24 | 23.9 | |
Accumulated amortization | (6) | (5.5) | |
Net intangible assets | $ 18 | $ 18.4 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in accrued warranty costs [Roll Forward] | ||
Beginning balance | $ 9.2 | $ 9.3 |
Warranties recorded at time of sale | 1.4 | 1.4 |
Adjustments to pre-existing warranties | (0.6) | (0.4) |
Settlements | (0.9) | (1.3) |
Effect of exchange rate changes | 0 | (0.3) |
Ending balance | $ 9.1 | $ 8.7 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Lease Assets [Abstract] | ||||
Right-of-use assets | $ 64.9 | $ 61.3 | ||
Finance lease ROU assets, Property, plant and equipment - net | [1] | 8.8 | ||
Lease Liabilities [Abstract] | ||||
Operating lease liabilities, Other current liabilities | 12.9 | |||
Operating lease liabilities, Other noncurrent liabilities | 50.7 | |||
Finance lease liabilities, Long-term debt - current portion | 0.3 | |||
Finance lease liabilities, Long-term debt | 3.6 | |||
Accumulated amortization | 1.4 | |||
Components of Lease Expense [Abstract] | ||||
Operating lease expense | [2] | 5.2 | ||
Finance lease expense [Abstract] | ||||
Depreciation of ROU assets | 0.1 | |||
Interest on lease liabilities | 0 | |||
Total lease expense | 5.3 | |||
Short-term lease expense | 0.9 | |||
Cash paid for amounts included in measurement of lease liabilities [Abstract] | ||||
Operating cash flows for operating leases | 3.7 | |||
Financing cash flows for finance leases | 0.1 | |||
ROU assets obtained in exchange for lease liabilities [Abstract] | ||||
Operating leases | 0.3 | |||
Finance leases | $ 0 | |||
Weighted-average remaining lease term [Abstract] | ||||
Operating leases | 8 years 10 months 24 days | |||
Finance leases | 9 years 8 months 12 days | |||
Weighted-average discount rate [Abstract] | ||||
Operating leases | 3.40% | |||
Finance leases | 2.00% | |||
Maturity of Operating Lease Liabilities [Abstract] | ||||
Remainder of fiscal 2020 | $ 11.4 | |||
2021 | 13.4 | |||
2022 | 9.9 | |||
2023 | 8 | |||
2024 | 5.5 | |||
2025 and beyond | 24.8 | |||
Total lease payments | 73 | |||
Less: Interest | (9.4) | |||
Present value of lease liabilities | 63.6 | |||
Maturities of Finance Lease Liabilities [Abstract] | ||||
Remainder of fiscal 2020 | 0.4 | |||
2021 | 0.5 | |||
2022 | 0.5 | |||
2023 | 0.5 | |||
2024 | 0.5 | |||
2025 and beyond | 2.5 | |||
Total lease payments | 4.9 | |||
Less: Interest | (1) | |||
Present value of lease liabilities | $ 3.9 | |||
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 | |||
Rental expense | $ 19.3 | $ 18.5 | ||
Minimum [Member] | ||||
Significant Accounting Policy [Abstract] | ||||
Remaining lease term | 1 year | |||
Maximum [Member] | ||||
Significant Accounting Policy [Abstract] | ||||
Remaining lease term | 11 years | |||
CIS [Member] | ||||
Maturity of Operating Lease Liabilities [Abstract] | ||||
Total lease payments | $ 7 | |||
Operating lease term | 15 years | |||
[1] | Finance lease ROU assets are recorded net of accumulated amortization of $1.4 million as of June 30, 2019. | |||
[2] | For the three months ended June 30, 2019, operating lease expense included $0.9 million of short-term lease expense. Variable lease expense was not significant. |
Indebtedness (Details)
Indebtedness (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | ||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | $ 339.6 | $ 387.7 | |
Less: current portion | (33.5) | (48.6) | |
Less: unamortized debt issuance costs | (3.9) | (4) | |
Total long-term debt | 302.2 | 335.1 | |
Maturities of long term debt and capital lease obligations [Abstract] | |||
Remainder of 2020 | 24 | ||
2021 | 84.7 | ||
2022 | 21.7 | ||
2023 | 21.7 | ||
2024 | 21.7 | ||
2025 & beyond | 165.8 | ||
Total debt | 339.6 | 387.7 | |
Credit Facility [Abstract] | |||
Short-term debt | 121.5 | 66 | |
Long-term debt, fair value | 134 | 137.2 | |
Term Loans [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | $ 200.5 | 238.4 | |
Fiscal year of maturity | Mar. 31, 2025 | ||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | $ 200.5 | 238.4 | |
Term Loans [Member] | Weighted Average [Member] | |||
Credit Facility [Abstract] | |||
Weighted-average interest rate | 3.80% | ||
Revolving Credit Facility [Member] | |||
Credit Facility [Abstract] | |||
Short-term debt | $ 101.6 | 47.1 | |
Revolving Credit Facility [Member] | Weighted Average [Member] | |||
Credit Facility [Abstract] | |||
Weighted-average interest rate | 3.40% | ||
Multi Currency Revolving Credit Facility [Member] | |||
Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 250 | ||
Deferred debt issuance costs | $ 1.1 | ||
Expiration date | Jun. 30, 2024 | ||
Foreign Credit Agreements [Member] | |||
Credit Facility [Abstract] | |||
Short-term debt | $ 19.9 | 18.9 | |
Domestic Revolving Credit Facility [Member] | |||
Credit Facility [Abstract] | |||
Letters of credit outstanding | 5.3 | ||
Available for future borrowings | 143.1 | ||
6.8% Senior Notes [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | $ 81 | 85 | |
Interest rate percentage | 6.80% | ||
Fiscal year of maturity | Mar. 31, 2021 | ||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | $ 81 | 85 | |
5.8% Senior Notes [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | $ 50 | 50 | |
Interest rate percentage | 5.80% | ||
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] | 8.1 | 14.3 |
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | [1] | $ 8.1 | $ 14.3 |
[1] | Other long-term debt primarily includes borrowings by foreign subsidiaries and finance lease obligations. |
Contingencies and Litigation (D
Contingencies and Litigation (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Environmental loss contingencies [Abstract] | ||
Reserves for environmental matters | $ 18.9 | $ 18.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Other comprehensive loss [Abstract] | |||
Beginning balance | $ 533.9 | ||
Other comprehensive income (loss) before reclassifications | 0.9 | $ (24.2) | |
Reclassifications for amortization of unrecognized net loss | [1] | 1.4 | 1.3 |
Reclassifications for realized gains - net | [2] | (0.1) | |
Income taxes | 0 | (0.4) | |
Total other comprehensive income (loss) | 2.2 | (23.3) | |
Ending balance | 540.3 | ||
Accumulated Other Comprehensive Loss [Member] | |||
Other comprehensive loss [Abstract] | |||
Beginning balance | (178.4) | (140.3) | |
Ending balance | (176.2) | (163.6) | |
Foreign Currency Translation [Member] | |||
Other comprehensive loss [Abstract] | |||
Beginning balance | (42.6) | (5.5) | |
Other comprehensive income (loss) before reclassifications | 1.9 | (24.7) | |
Reclassifications for amortization of unrecognized net loss | [1] | 0 | 0 |
Reclassifications for realized gains - net | [2] | 0 | |
Income taxes | 0 | 0 | |
Total other comprehensive income (loss) | 1.9 | (24.7) | |
Ending balance | (40.7) | (30.2) | |
Defined Benefit Plans [Member] | |||
Other comprehensive loss [Abstract] | |||
Beginning balance | (136.3) | (134.9) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Reclassifications for amortization of unrecognized net loss | [1] | 1.4 | 1.3 |
Reclassifications for realized gains - net | [2] | 0 | |
Income taxes | (0.3) | (0.3) | |
Total other comprehensive income (loss) | 1.1 | 1 | |
Ending balance | (135.2) | (133.9) | |
Cash Flow Hedges [Member] | |||
Other comprehensive loss [Abstract] | |||
Beginning balance | 0.5 | 0.1 | |
Other comprehensive income (loss) before reclassifications | (1) | 0.5 | |
Reclassifications for amortization of unrecognized net loss | [1] | 0 | 0 |
Reclassifications for realized gains - net | [2] | (0.1) | |
Income taxes | 0.3 | (0.1) | |
Total other comprehensive income (loss) | (0.8) | 0.4 | |
Ending balance | $ (0.3) | $ 0.5 | |
[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 4 for additional information about the Company's pension plans. | ||
[2] | Amount represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | ||
Segment Reporting Information [Abstract] | ||||
Net sales | $ 529 | $ 566.1 | ||
Gross profit | $ 83.4 | $ 94.3 | ||
Gross profit (% of sales) | 15.80% | 16.70% | ||
Operating income | $ 18.1 | $ 34.8 | ||
Total assets | 1,601.3 | $ 1,538 | [1] | |
Operating lease assets | 64.9 | 61.3 | ||
VTS [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 326.5 | 352.8 | ||
CIS [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 168.8 | 183.9 | ||
BHVAC [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 49 | 45 | ||
Total Segments [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 544.3 | 581.7 | ||
Operating Segments [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 529 | 566.1 | ||
Gross profit | $ 83 | $ 94.2 | ||
Gross profit (% of sales) | 15.20% | 16.20% | ||
Operating income | $ 31.6 | $ 41.9 | ||
Operating Segments [Member] | VTS [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 312.6 | 338.3 | ||
Gross profit | $ 45 | $ 54 | ||
Gross profit (% of sales) | 13.80% | 15.30% | ||
Operating income | $ 17.3 | $ 25.5 | ||
Total assets | 767.9 | 749.9 | [1] | |
Operating Segments [Member] | CIS [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 167.9 | 183.5 | ||
Gross profit | $ 24.3 | $ 28.6 | ||
Gross profit (% of sales) | 14.40% | 15.60% | ||
Operating income | $ 9 | $ 13.2 | ||
Total assets | 628.2 | 604.2 | [1] | |
Operating Segments [Member] | BHVAC [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 48.5 | 44.3 | ||
Gross profit | $ 13.7 | $ 11.6 | ||
Gross profit (% of sales) | 27.90% | 25.90% | ||
Operating income | $ 5.3 | $ 3.2 | ||
Total assets | 107 | 89.4 | [1] | |
Corporate and Eliminations [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | (15.3) | (15.6) | ||
Gross profit | $ 0.4 | $ 0.1 | ||
Gross profit (% of sales) | 0.00% | 0.00% | ||
Operating income | $ (13.5) | $ (7.1) | ||
Total assets | 98.2 | $ 94.5 | [1] | |
Inter-segment Sales [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 15.3 | 15.6 | ||
Inter-segment Sales [Member] | VTS [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 13.9 | 14.5 | ||
Inter-segment Sales [Member] | CIS [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | 0.9 | 0.4 | ||
Inter-segment Sales [Member] | BHVAC [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Net sales | $ 0.5 | $ 0.7 | ||
[1] | The Company adopted new lease accounting guidance and, as a result, recorded $61.3 million of operating lease assets on its consolidated balance sheet on April 1, 2019. See Note 1 for additional information. |