Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 14, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Hexcel Corporation | |
Entity Central Index Key | 0000717605 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 83,894,367 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-8472 | |
Entity Tax Identification Number | 94-1109521 | |
Entity Address, Address Line One | Two Stamford Plaza | |
Entity Address, Address Line Two | 281 Tresser Boulevard | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06901-3238 | |
City Area Code | (203) | |
Local Phone Number | 969-0666 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | HXL | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 105.8 | $ 103.3 |
Accounts receivable, net | 176.6 | 125.4 |
Inventories, net | 244.5 | 213.5 |
Contract assets | 38.4 | 43.1 |
Prepaid expenses and other current assets | 42 | 38 |
Assets held for sale | 12.6 | 12.6 |
Total current assets | 619.9 | 535.9 |
Property, plant and equipment | 3,104.9 | 3,139.7 |
Less accumulated depreciation | (1,344.1) | (1,265.5) |
Net property, plant and equipment | 1,760.8 | 1,874.2 |
Goodwill and other intangible assets, net | 269.9 | 277.8 |
Investments in affiliated companies | 43 | 44.7 |
Other assets | 179 | 185.2 |
Total assets | 2,872.6 | 2,917.8 |
Current liabilities: | ||
Short-term borrowings | 0.9 | 0.9 |
Accounts payable | 90.1 | 70 |
Accrued compensation and benefits | 64.7 | 43.2 |
Financial instruments | 2.4 | 3.6 |
Accrued liabilities | 66.8 | 65.4 |
Total current liabilities | 224.9 | 183.1 |
Long-term debt | 876.4 | 925.5 |
Retirement obligations | 53.2 | 53.9 |
Deferred income taxes | 149.7 | 153 |
Other non-current liabilities | 74.1 | 92.1 |
Total liabilities | 1,378.3 | 1,407.6 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 200.0 shares authorized, 110.0 shares and 109.7 shares issued at June 30, 2021 and December 31, 2020, respectively | 1.1 | 1.1 |
Additional paid-in capital | 873.4 | 849.7 |
Retained earnings | 1,993.6 | 1,996.4 |
Accumulated other comprehensive loss | (93.8) | (59.6) |
Total stockholders' equity including treasury stock value | 2,774.3 | 2,787.6 |
Less – Treasury stock, at cost, 26.1 shares at June 30, 2021 and 26.1 shares at December 31, 2020. | (1,280) | (1,277.4) |
Total stockholders' equity | 1,494.3 | 1,510.2 |
Total liabilities and stockholders' equity | $ 2,872.6 | $ 2,917.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200 | 200 |
Common stock, shares issued | 110 | 109.7 |
Treasury stock, shares | 26.1 | 26.1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 333.8 | $ 286.9 | $ 964.4 | $ 1,206.6 |
Cost of sales | 267.8 | 273.4 | 783.4 | 997.3 |
Gross margin | 66 | 13.5 | 181 | 209.3 |
Selling, general and administrative expenses | 32 | 24.6 | 102.7 | 95.2 |
Research and technology expenses | 10.4 | 10.7 | 33.5 | 36 |
Other operating expense | 0.8 | 15.8 | 16 | 43.6 |
Operating income (loss) | 22.8 | (37.6) | 28.8 | 34.5 |
Interest expense, net | 9.5 | 9.7 | 29.1 | 32.4 |
Income (loss) before income taxes, and equity in earnings from affiliated companies | 13.3 | (47.3) | (0.3) | 2.1 |
Income tax expense (benefit) | 5.1 | (56.9) | 1.6 | (48.7) |
Income (loss) before equity in earnings from affiliated companies | 8.2 | 9.6 | (1.9) | 50.8 |
Equity in earnings (losses) from affiliated companies | 0.8 | 0.1 | (0.9) | 0.3 |
Net income (loss) | $ 9 | $ 9.7 | $ (2.8) | $ 51.1 |
Basic net income (loss) per common share | $ 0.11 | $ 0.12 | $ (0.03) | $ 0.61 |
Diluted net income (loss) per common share | $ 0.11 | $ 0.12 | $ (0.03) | $ 0.61 |
Weighted-average common shares: | ||||
Basic | 84.1 | 83.8 | 84.1 | 83.7 |
Weighted average common shares outstanding - Dilutive (in shares) | 84.7 | 84 | 84.1 | 84 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 9 | $ 9.7 | $ (2.8) | $ 51.1 |
Currency translation adjustments | (14.5) | 38.7 | (22.3) | 22.7 |
Net unrealized pension and other benefit actuarial gains (losses) and prior service credits (net of tax) | 1 | (1) | (0.9) | (0.2) |
Net unrealized (losses) gains on financial instruments (net of tax) | (7.1) | 15.1 | (11) | 11 |
Total other comprehensive (loss) income | (20.6) | 52.8 | (34.2) | 33.5 |
Comprehensive (loss) income | $ 11.6 | $ 62.5 | $ 37 | $ 84.6 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net (loss) income | $ (2.8) | $ 51.1 |
Reconciliation to net cash provided by operating activities: | ||
Depreciation and amortization | 102.4 | 106 |
Amortization related to financing | 2.7 | 0.7 |
Deferred income taxes | (3.2) | (46) |
Equity in earnings from affiliated companies | 0.9 | 0.3 |
Stock-based compensation | 16.2 | 13 |
Merger and restructuring expenses, net of payments | (4.4) | 13.3 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable | (55.6) | 81 |
(Increase) decrease in inventories | (37.3) | 74.2 |
Decrease in prepaid expenses and other current assets | 3.6 | 1.5 |
Increase (decrease) in accounts payable/accrued liabilities | 43.3 | (128) |
Other – net | (1.6) | (9.5) |
Net cash provided by operating activities | 64.2 | 157 |
Cash flows from investing activities | ||
Capital expenditures | (15) | (47.8) |
Net cash used for investing activities | (15) | (47.8) |
Cash flows from financing activities | ||
Repayments of Euro term loan | (49.9) | |
Repayment of finance lease obligation and other debt, net | (0.7) | (0.4) |
Issuance costs related to senior credit facility | (1.3) | |
Dividends paid | (14.2) | |
Repurchase of stock | (24.6) | |
Activity under stock plans | 4.9 | (5.5) |
Net cash (used for) financing activities | (44.8) | (106.9) |
Effect of exchange rate changes on cash and cash equivalents | (1.9) | 1.3 |
Net increase in cash and cash equivalents | 2.5 | 3.6 |
Cash and cash equivalents at beginning of period | 103.3 | 64.4 |
Cash and cash equivalents at end of period | 105.8 | 68 |
Supplemental data: | ||
Accrual basis additions to plant, property, and equipment | 14.3 | 39.4 |
Senior unsecured credit facility - due 2024 | ||
Cash flows from financing activities | ||
Borrowing from senior unsecured credit facility | 392 | |
Repayment of senior unsecured credit facility | $ (49) | $ (403) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Par | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance at Dec. 31, 2019 | $ 1,446.1 | $ 1.1 | $ 829.9 | $ 1,978.9 | $ (118.7) | $ (1,245.1) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 42.4 | 42.4 | ||||
Dividends paid on common stock | (14.2) | (14.2) | ||||
Change in other comprehensive income (loss)– net of tax | (36.6) | (36.6) | ||||
Stock based compensation | 8 | 15.2 | (7.2) | |||
Acquisition of treasury stock | (24.6) | (24.6) | ||||
Balance at Mar. 31, 2020 | 1,421.1 | 1.1 | 845.1 | 2,007.1 | (155.3) | (1,276.9) |
Balance at Dec. 31, 2019 | 1,446.1 | 1.1 | 829.9 | 1,978.9 | (118.7) | (1,245.1) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 51.1 | |||||
Change in other comprehensive income (loss)– net of tax | 33.5 | |||||
Balance at Sep. 30, 2020 | 1,499.4 | 1.1 | 845.1 | 2,015.8 | (85.2) | (1,277.4) |
Balance at Mar. 31, 2020 | 1,421.1 | 1.1 | 845.1 | 2,007.1 | (155.3) | (1,276.9) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (1) | (1) | ||||
Change in other comprehensive income (loss)– net of tax | 17.3 | 17.3 | ||||
Stock based compensation | (0.5) | (0.5) | ||||
Balance at Jun. 30, 2020 | 1,436.9 | 1.1 | 844.6 | 2,006.1 | (138) | (1,276.9) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 9.7 | 9.7 | ||||
Change in other comprehensive income (loss)– net of tax | 52.8 | 52.8 | ||||
Stock based compensation | 0.5 | (0.5) | ||||
Balance at Sep. 30, 2020 | 1,499.4 | 1.1 | 845.1 | 2,015.8 | (85.2) | (1,277.4) |
Balance at Dec. 31, 2020 | 1,510.2 | 1.1 | 849.7 | 1,996.4 | (59.6) | (1,277.4) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (14) | (14) | ||||
Change in other comprehensive income (loss)– net of tax | (19.1) | (19.1) | ||||
Stock based compensation | 9.8 | 11.8 | (2) | |||
Balance at Mar. 31, 2021 | 1,486.9 | 1.1 | 861.5 | 1,982.4 | (78.7) | (1,279.4) |
Balance at Dec. 31, 2020 | 1,510.2 | 1.1 | 849.7 | 1,996.4 | (59.6) | (1,277.4) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (2.8) | |||||
Change in other comprehensive income (loss)– net of tax | (34.2) | (34.2) | ||||
Balance at Sep. 30, 2021 | 1,494.3 | 1.1 | 873.4 | 1,993.6 | (93.8) | (1,280) |
Balance at Mar. 31, 2021 | 1,486.9 | 1.1 | 861.5 | 1,982.4 | (78.7) | (1,279.4) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 2.2 | 2.2 | ||||
Change in other comprehensive income (loss)– net of tax | 5.5 | 5.5 | ||||
Stock based compensation | 8.2 | 8.2 | ||||
Balance at Jun. 30, 2021 | 1,502.8 | 1.1 | 869.7 | 1,984.6 | (73.2) | (1,279.4) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 9 | 9 | ||||
Change in other comprehensive income (loss)– net of tax | (20.6) | (20.6) | ||||
Stock based compensation | 3.1 | 3.7 | (0.6) | |||
Balance at Sep. 30, 2021 | $ 1,494.3 | $ 1.1 | $ 873.4 | $ 1,993.6 | $ (93.8) | $ (1,280) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Dividends paid on common stock price per share | $ 0.17 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 — Significant Acco unting Policies In these notes, the terms “Hexcel,” “the Company,” “we,” “us,” or “our” mean Hexcel Corporation and subsidiary companies. The accompanying condensed consolidated financial statements are those of Hexcel Corporation. Refer to Note 1 to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2020 for a discussion of our significant accounting policies. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared from the unaudited accounting records of Hexcel pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been omitted pursuant to rules and regulations of the SEC. In the opinion of management, the condensed consolidated financial statements include all normal recurring adjustments as well as any non-recurring adjustments necessary to present fairly the statement of financial position, results of operations, cash flows and statement of stockholders’ equity for the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from the audited 2020 consolidated balance sheet. Interim results are not necessarily indicative of results expected for any other interim period or for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. Investments in Affiliated Companies We have a 50 % equity investment in Aerospace Composites Malaysia Sdn. Bhd. and a 25 % equity investment in HexCut Services SAS. These investments are accounted for using the equity method of accounting. Assets Held for Sale In early November 2020 we closed our wind energy prepeg production facility in Windsor, Colorado and as a result, certain plant assets to be sold have been recorded in “Assets held for sale” in the Condensed Consolidated Balance Sheets at both September 30, 2021 and December 31, 2020. The sale of these assets is expected to occur in the fourth quarter of 2021. Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018-14 (ASU 2018-14 ), Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) , which amends the current disclosure requirements regarding defined benefit pensions and other post retirement plans , and allows for the removal of certain disclosures, while adding certain new disclosure requirements. This standard is effective for fiscal years beginning after December 15, 2020. Adoption of this new standard did not have a significant impact to our disclosures. In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which amends and aims to simplify accounting disclosure requirements regarding a number of topics including intraperiod tax allocation, accounting for deferred taxes when there are changes in consolidation of certain investments, tax basis step up in an acquisition and the application of effective rate changes during interim periods, among other improvements. This standard is effective for fiscal years beginning after December 15, 2020. Adoption of this new standard did not have a material impact on the Company. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 2 — Net Income (Loss) Per Common Share Quarter Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2021 2020 2021 2020 Basic net income (loss) per common share: Net income (loss) $ 9.0 $ 9.7 $ ( 2.8 ) $ 51.1 Weighted average common shares outstanding 84.1 83.8 84.1 83.7 Basic net income (loss) per common share $ 0.11 $ 0.12 $ ( 0.03 ) $ 0.61 Diluted net income (loss) per common share: Net income (loss) 9.0 9.7 ( 2.8 ) 51.1 Weighted average common shares outstanding — Basic 84.1 83.8 84.1 83.7 Plus incremental shares from assumed conversions: Restricted stock units 0.3 0.1 — 0.2 Stock options 0.3 0.1 — 0.1 Weighted average common shares outstanding — Dilutive 84.7 84.0 84.1 84.0 Diluted net income (loss) per common share $ 0.11 $ 0.12 $ ( 0.03 ) $ 0.61 Total common stock equivalents of 0.6 million and 1.5 million were excluded from the computation of diluted net income (loss) per share for the quarter ended September 30, 2021 and 2020 respectively, because to do so would have been anti-dilutive. Total common stock equivalents of 1.1 million and 0.9 million were excluded from the computation of diluted net income (loss) per share for the nine months ended September 30, 2021 and 2020, respectively, because to do so would have been anti-dilutive. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 — Inventories (In millions) September 30, 2021 December 31, 2020 Raw materials $ 112.0 $ 94.9 Work in progress 37.6 23.6 Finished goods 94.9 95.0 Total Inventory $ 244.5 $ 213.5 |
Retirement and Other Postretire
Retirement and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement and Other Postretirement Benefit Plans | Note 4 — Retirement and Other Postretirement Benefit Plans We maintain qualified and nonqualified defined benefit retirement plans covering certain current and former U.S. and European employees, retirement savings plans covering eligible U.S. and U.K. employees and certain postretirement health care and life insurance benefit plans covering eligible U.S. retirees. We also participate in a union sponsored multi-employer pension plan covering certain U.S. employees with union affiliations. Defined Benefit Retirement Plans Net Periodic Benefit Costs Net periodic benefit costs of our defined benefit retirement plans for the quarter and nine months ended September 30, 2021 and 2020 were as follows: Quarter Ended September 30, Nine Months Ended September 30, (In millions) 2021 2020 2021 2020 U.S. Nonqualified Defined Benefit Retirement Plans Service cost $ 0.2 $ 0.3 $ 0.8 $ 0.9 Interest cost - 0.2 0.2 0.4 Net amortization 0.3 - 0.5 0.2 Net periodic benefit cost $ 0.5 $ 0.5 $ 1.5 $ 1.5 (In millions) September 30, 2021 December 31, 2020 Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans: Accrued liabilities $ 3.7 $ 3.8 Other non-current liabilities 19.9 19.4 Total accrued benefit $ 23.6 $ 23.2 Quarter Ended September 30, Nine Months Ended September 30, (In millions) 2021 2020 2021 2020 European Defined Benefit Retirement Plans Service cost $ 0.2 $ 0.2 $ 0.7 $ 0.7 Interest cost 0.5 0.9 1.6 2.6 Expected return on plan assets ( 0.8 ) ( 1.7 ) ( 2.6 ) ( 5.1 ) Net amortization and deferral 0.3 0.1 0.8 0.3 Net periodic benefit cost (credit) $ 0.2 $ ( 0.5 ) $ 0.5 $ ( 1.5 ) (In millions) September 30, 2021 December 31, 2020 Amounts recognized on the balance sheet for European defined benefit retirement plans: Other assets $ 35.0 $ 31.5 Accrued liabilities 1.0 0.9 Other non-current liabilities 18.8 17.7 Total accrued benefit $ 19.8 $ 18.6 All costs related to our pensions are included as a component of operating income in our Condensed Consolidated Statements of Operations. For the quarters ended September 30, 2021 and 2020, amounts unrelated to service costs were a charge of $ 0.3 million and a benefit of $ 0.5 million, respectively. For the nine months ended September 30, 2021 and 2020 , amounts unrelated to service costs were a charge of $ 0.6 million and a benefit of $ 1.6 million, respectively. Contributions We generally fund our U.S. non-qualified defined benefit retirement plans when benefit payments are incurred. We contributed approximately $ 0.5 million in the first nine months of 2021 to cover unfunded benefits. We expect to contribute a total of $ 0.7 million in 2021 to cover unfunded benefits. We contributed $ 0.5 million to our U.S. non-qualified defined benefit retirement plans during the first nine months of 2020. We contributed $ 2.2 million and $ 1.9 million to our European defined benefit retirement plans during the nine months ended September 30, 2021 and 2020 respectively. We plan to contribute approximately $ 5.6 million during 2021 to our European plans. Postretirement Health Care and Life Insurance Benefit Plans We recorded $ 0.2 million and $ 0.3 million of net amortization gain deferral for the quarters ended September 30, 2021 and 2020, respectively, and $ 0.6 million and $ 0.7 million for the nine months ended September 30, 2021 and 2020, respectively. Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the quarters and nine months ended September 30, 2021 and 2020 were immaterial. (In millions) September 30, 2021 December 31, 2020 Amounts recognized on the balance sheet: Accrued liabilities $ 0.4 $ 0.4 Other non-current liabilities 2.2 2.2 Total accrued benefit $ 2.6 $ 2.6 Amounts contributed in connection with our postretirement plans were immaterial for both the nine months ended September 30, 2021 and 2020 . We periodically fund our postretirement plans to pay covered expenses as they are incurred. We expect to contribute less than $ 0.4 million in 2021 to cover unfunded benefits. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 –– Debt (In millions) September 30, 2021 December 31, 2020 Current portion of finance lease $ 0.9 $ 0.9 Current portion of debt 0.9 0.9 Senior unsecured credit facility 179.0 228.0 4.7 % senior notes --- due 2025 300.0 300.0 3.95 % senior notes --- due 2027 400.0 400.0 Senior notes --- original issue discount ( 1.3 ) ( 1.5 ) Senior notes --- deferred financing costs ( 3.0 ) ( 3.5 ) Non-current portion of finance lease and other debt 1.7 2.5 Long-term debt 876.4 925.5 Total debt $ 877.3 $ 926.4 In June 2019, the Company refinanced its senior unsecured credit facility (the “Facility”), increasing borrowing capacity from $ 700 million to $ 1 billion. The Facility matures in June 2024 . The interest rate ranges from LIBOR + 0.875 % to a maximum of LIBOR + 1.50 % , depending upon the better of the Company’s leverage ratio or the credit rating. The Facility agreement contains financial and other covenants, including, but not limited to customary restrictions on the incurrence of debt by our subsidiaries and the granting of liens, as well as the maintenance of an interest coverage ratio and a leverage ratio. In September 2020, we amended the Facility to allow for relief from certain terms, including adjusting the maximum leverage ratio covenant for a defined period. On January 28, 2021, we further amended the Facility agreement (the “Second Amendment”) to provide that, from January 28, 2021 through and including March 31, 2022, we will not be subject to a maximum leverage ratio covenant but will instead be required to maintain Liquidity (as defined in the Facility agreement) of at least $ 250 million. Additionally, during such period, the Company will be subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees are increased; the incremental facility will not be available; and if the Company’s public debt rating is downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2 or lower by Moody’s, we will be required to grant liens on certain of our assets, which liens will be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. The Company’s public debt rating as of September 30, 2021 is BB+/Baa3. In addition, the Second Amendment provides that the Company will not be subject to an interest coverage ratio covenant until the test period ending December 31, 2021 and revolving commitments under the Facility were reduced to $ 750 million. In connection with the Second Amendment, we accelerated a portion of the deferred financing costs and recognized $ 0.9 million in interest expense during the first quarter of 2021. As of September 30, 2021, we were in compliance with all debt covenants. As of September 30, 2021, total borrowings under the Facility were $ 179 million, which approximates fair value. The Facility agreement permits us to issue letters of credit up to an aggregate amount of $ 50 million. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of September 30, 2021, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $ 571 million. The weighted average interest rate for the Facility was 4.16 % for the nine months ended September 30, 2021. In 2017, the Company issued $ 400 million in aggregate principal amount of 3.95 % Senior Unsecured Notes due in 2027 . The interest rate on these senior notes may be increased 0.25 % each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 5.95 %. The effective interest rate for the nine months ended September 30, 2021 was 4.08 % inclusive of an approximately 0.25 % benefit of treasury locks. Based on quoted prices the fair value of the senior unsecured notes due in 2027 was $ 437.4 million at September 30, 2021. In 2015, the Company issued $ 300 million in aggregate principal amount of 4.7 % Senior Unsecured Notes due in 2025 . The interest rate on these senior notes may be increased by 0.25 % each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 6.7 %. The effective interest rate for the nine months ended September 30, 2021 was 5.03 %. Based on quoted prices, the fair value of the senior unsecured notes due in 2025 was $ 331.9 million at September 30, 2021. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 6 — Derivative Financial Instruments Interest Rate Swap and Interest Lock Agreements At September 30, 2021 and December 31, 2020, we had no interest rate swap agreements outstanding. The Company had treasury lock agreements to protect against unfavorable movements in the benchmark treasury rate related to the issuance of our 3.95 % Senior Unsecured Notes. These hedges were designated as cash flow hedges for hedge accounting purposes thus any change in fair value was recorded as a component of other comprehensive (loss) income. As part of the issuance of our 3.95% Senior Unsecured Notes, we net settled these derivatives for $ 10 million in cash. As a result of settling these derivatives the previously deferred gains recorded in other comprehensive (loss) income will be released to interest expense over the life of the 3.95% Senior Unsecured Notes. The effect of these treasury locks reduced the effective interest rate on these notes by approximately 0.25 %. Cross Currency and Interest Rate Swap Agreements In November 2020, we entered into a cross currency and interest rate swap, which is designated as a cash flow hedge of a € 270 million, 5 -year amortizing, intercompany loan between one of our European subsidiaries and the U.S. parent company. Changes in the spot exchange are recorded to the general ledger and offset the fair value re-measurement of the hedged item. The net difference in the interest rates coupons is recorded as a credit to interest expense. The derivative swaps € 270 million bearing interest at a fixed rate of 0.30 % for $ 319.9 million plus fixed rate interest of 1.115 %. The interest coupons settle semi-annually . The principal will amortize each year on November 15, as follows: for years 1 through 4, beginning November 15, 2021, € 50 million versus $ 59.2 million, and a final settlement on November 15, 2025 of € 70 million versus $ 82.9 million. The carrying value of the derivative at September 30, 2021 is a current asset of $ 3.2 million and a long-term asset of $ 2.1 million Foreign Currency Forward Exchange Contracts A number of our European subsidiaries are exposed to the impact of exchange rate volatility between the U.S. dollar and the subsidiaries’ functional currencies, being either the Euro or the British pound sterling. We entered into contracts to exchange U.S. dollars for Euros and British pound sterling through March 2024. The aggregate notional amount of these contracts was $ 250.5 million and $ 250.3 million at September 30, 2021 and December 31, 2020, respectively. The purpose of these contracts is to hedge a portion of the forecasted transactions of our European subsidiaries under long-term sales contracts with certain customers. These contracts are expected to provide us with a more balanced matching of future cash receipts and expenditures by currency, thereby reducing our exposure to fluctuations in currency exchange rates. The effective portion of the hedges, losses of $ 6.2 million and $ 10.2 million were recorded in other comprehensive (loss) income for the quarter and nine months ended September 30, 2021, respectively, and gains of $ 14.4 million and losses of $ 0.1 million were recorded for the quarter and nine months ended September 30, 2020, respectively. We classified $ 3.2 million of the carrying amount of these contracts as assets ($ 3.1 million of which was recorded in prepaid expenses and other current assets) and $ 4.8 million as liabilities ($ 2.2 million of which is recorded in non-current liabilities) on the Condensed Consolidated Balance Sheets at September 30, 2021, $ 16.0 million of the carrying amount of these contracts was classified in assets ($ 10.7 million of which was recorded in prepaid expenses and other current assets) and $ 2.5 million as liabilities (less than $ 0.1 million of which is in other non-current liabilities) at December 31, 2020. We recognized net gains of $ 1.5 million and $ 4.8 million in gross margin during the quarter and nine months ended September 30, 2021, respectively, and net losses of $ 2.6 million and $ 12.7 million for the quarter and nine months ended September 30, 2020, respectively. In addition, we enter into foreign exchange forward contracts which are not designated as hedges. These are used to provide an offset to transactional gains or losses arising from the remeasurement of non-functional monetary assets and liabilities such as accounts receivable. The change in the fair value of the derivatives is recorded in the statement of operations. There are no credit contingency features in these derivatives. During the quarter and nine months ended September 30, 2021, we recognized net foreign exchange losses of $ 0.3 million and $ 1.4 million, respectively, in the Condensed Consolidated Statements of Operations. During the quarter and nine months ended September 30, 2020, we recognized net foreign exchange losses of $ 0.9 million and $ 2.5 million, respectively. The net foreign exchange impact recognized from these hedges offset the translation exposure of these transactions. The carrying amount of the contracts for derivatives not designated as hedging instruments was $ 0.1 million classified in current liabilities at September 30, 2021, and $ 0.1 million classified in current liabilities on our Condensed Consolidated Balance Sh eet at December 31, 2020. The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive (loss) income for the quarters and nine months ended September 30, 2021 and September 30, 2020 was as follows: Quarter Ended September 30, Nine Months Ended September 30, (In millions) 2021 2020 2021 2020 Unrealized gains (losses) at beginning of period, net of tax $ 5.3 $ ( 12.3 ) $ 10.6 $ ( 8.4 ) (Gains) losses reclassified to net sales ( 1.2 ) 2.0 ( 3.7 ) 9.7 (Decrease) increase in fair value ( 4.8 ) 11.1 ( 7.6 ) ( 0.5 ) Unrealized (losses) gains at end of period, net of tax $ ( 0.7 ) $ 0.8 $ ( 0.7 ) $ 0.8 Unrealized gains of $ 0.9 million recorded in accumulated other comprehensive loss, less taxes of $ 0.1 million, as of September 30, 2021, are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded. Commodity Swap Agreements On occasion we enter into commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of September 30, 2021, we had commodity swap agreements with a notional value of $ 12.2 million. The swaps mature monthly through June 2023. The swaps are accounted for as a cash flow hedge of our forward raw material purchases. To ensure the swaps are highly effective, all of the critical terms of the swap matched the terms of the hedged items. The fair value of the commodity swap agreements was an asset of $ 4.6 million ($ 4.2 million of which was recorded in prepaid expenses and other current assets) and a liability of less than $ 0.1 million at September 30, 2021. The fair value of the commodity swap agreements was an asset of $ 2.2 million ($ 1.5 million of which was recorded in prepaid expenses and other current assets) and a liability of $ 1.1 million at December 31, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 — Income Taxes The effective tax rate for the quarter ended September 30, 2021 was 38.3 % and included a discrete tax charge of $ 1.3 million primarily related to the remeasurement of the net state deferred tax liabilities. The tax expense for the nine months ended September 30, 2021 was $ 1.6 million and included a net discrete tax charge of $ 0.8 million primarily resulting from the revaluation of U.S. and foreign deferred tax liabilities. The tax benefit for the quarter ended September 30, 2020 was $ 56.9 million and included a $ 46.2 million benefit primarily due to the release of a valuation allowance in a foreign jurisdiction due to a legal entity rationalization and treasury realignment initiative. The tax benefit of $ 48.7 million for the first nine months of 2020 also included a $ 2.7 million benefit primarily for the release of reserves of unrecognized tax benefits as a result of tax audit settlements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 — Fair Value Measurements The authoritative guidance for fair value measurements establishes a hierarchy for observable and unobservable inputs used to measure fair value, into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. We have no assets or liabilities that utilize Level 1 inputs. However, we have derivative instruments classified as liabilities and assets which utilize Level 2 inputs, and one liability that utilizes Level 3 inputs. For derivative assets and liabilities that utilize Level 2 inputs, we prepare estimates of future cash flows of our derivatives, which are discounted to a net present value. The estimated cash flows and the discount factors used in the valuation model are based on observable inputs, and incorporate non-performance risk (the credit standing of the counterparty when the derivative is in a net asset position, and the credit standing of Hexcel when the derivative is in a net liability position). The fair value of these assets and liabilities was $ 13.1 million and $ 4.8 million, respectively, at September 30, 2021 and $ 18.4 million and $ 14.8 million, respectively, at December 31, 2020. In addition, the fair value of these derivative contracts, which are subject to a master netting arrangement under certain circumstances, is presented on a gross basis in the Condensed Consolidated Balance Sheets. Below is a summary of valuation techniques for all Level 2 financial assets and liabilities: Cross Currency and Interest Rate Swap Agreements — valued using the USD Secured Overnight Financing Rate curves and quoted forward foreign exchange prices at the reporting date. The fair value of the assets were $ 5.3 million, at September 30, 2021 and the fair value of the assets and liabilities were $ 0.3 million and $ 11.1 million, respectively, at December 31, 2020. Foreign exchange derivative assets and liabilities — valued using quoted forward prices at the reporting date. Fair value of assets and liabilities at September 30, 2021 was $ 3.2 million and $ 4.8 million, respectively. The fair value of assets and liabilities at December 31, 2020 was $ 16.0 million and $ 2.6 million, respectively. Commodity swap agreements — valued using quoted forward commodity prices at the reporting date. Fair value of the assets and liabilities at September 30, 2021 was $ 4.6 million and less than $ 0.1 million, respectively. The fair value of the assets and liabilities at December 31, 2020 was $ 2.2 million and $ 1.1 million, respectively. Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in the nine months ended September 30, 2021 that would reduce the receivable amount owed, if any, to the Company. Liabilities classified as Level 3 — At September 30, 2021 we had a liability for $ 0.4 million, which represented contingent consideration that was recognized in connection with the Company’s Oxford Performance Materials, Inc. acquisition. This amount was estimated based on certain contractual stipulations which require payments to be made to the seller in the future based upon the achievement of certain results. We used forecasted results which were discounted using an internally derived discount rate. Future amounts payable may differ from this estimate by the difference between the actual and forecasted results. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 9 — Revenue Our revenue is primarily derived from the sale of inventory under long-term contracts with our customers. We have determined that individual purchase orders (“PO”), the terms and conditions of which are taken with a master agreement, create the ASC 606 contracts which are generally short-term in nature. For those sales that are not tied to a long-term agreement, we generate a PO that is subject to our standard terms and conditions. In instances where our customers acquire our goods related to government contracts, the contracts are typically subject to terms similar, or equal to, the Federal Acquisition Regulation Part 52.249-2. This regulation contains a termination for convenience clause (“T for C”), which requires that the customer pay for the cost of both the finished and unfinished goods at the time of cancellation plus a reasonable profit. We recognize revenue over time for those agreements that have T for C, and where the products being produced have no alternative use. As our production cycle is typically nine months or less, it is expected that goods related to the revenue recognized over time will be shipped and billed within the next twelve months. Less than half of our agreements contain provisions which would require revenue to be recognized over time. All other revenue is recognized at a point in time. We disaggregate our revenue based on market for analytical purposes. The following table details our revenue by market for the quarters and nine months ended September 30, 2021 and 2020: Quarter Ended September 30, Nine Months Ended September 30, (In millions) 2021 2020 2021 2020 Consolidated Net Sales $ 333.8 $ 286.9 $ 964.4 $ 1,206.6 Commercial Aerospace 167.2 128.8 468.5 695.6 Space & Defense 110.4 108.8 329.0 328.8 Industrial 56.2 49.3 166.9 182.2 Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in our Condensed Consolidated Balance Sheets as a component of current assets. The activity related to contract assets for the nine months ended September 30, 2021 was as follows: (In millions) Composite Material Engineered Products Total Balance at December 31, 2020 $ 7.8 $ 35.3 $ 43.1 Net revenue billed 1.6 ( 2.4 ) ( 0.8 ) Balance at March 31, 2021 $ 9.4 $ 32.9 $ 42.3 Net revenue billed ( 1.8 ) — ( 1.8 ) Balance at June 30, 2021 $ 7.6 $ 32.9 $ 40.5 Net revenue billed ( 0.3 ) ( 1.8 ) ( 2.1 ) Balance at September 30, 2021 $ 7.3 $ 31.1 $ 38.4 Accounts receivable, net includes amounts billed to customers where the right to payment is unconditional. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 10 — Segment Information The financial results for our operating segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our operating segments based on operating income, and generally account for intersegment sales based on arm’s length prices. Corporate and certain other expenses are not allocated to the operating segments, except to the extent that the expense can be directly attributable to the business segment. Financial information for our operating segments for the quarters and nine months ended September 30, 2021 and 2020 were as follows: (Unaudited) Composite Engineered Corporate & (In millions) Materials Products Other (a) Total Third Quarter 2021 Net sales to external customers $ 254.1 $ 79.7 $ — $ 333.8 Intersegment sales 15.0 0.4 (15.4 ) — Total sales $ 269.1 $ 80.1 $ ( 15.4 ) $ 333.8 Other operating expense 0.8 - - 0.8 Operating income (loss) 30.0 6.5 ( 13.7 ) 22.8 Depreciation and amortization 30.1 3.6 - 33.7 Stock-based compensation 0.7 0.1 2.1 2.9 Accrual basis additions to capital expenditures 3.7 2.8 — 6.5 Third Quarter 2020 Net sales to external customers $ 215.7 $ 71.2 $ — $ 286.9 Intersegment sales 7.8 0.7 (8.5 ) — Total sales $ 223.5 $ 71.9 $ ( 8.5 ) $ 286.9 Other operating expense 16.4 — ( 0.6 ) 15.8 Operating (loss) income ( 36.6 ) ( 2.7 ) 1.7 ( 37.6 ) Depreciation and amortization 31.7 3.9 — 35.6 Stock-based compensation 1.5 0.5 ( 1.7 ) 0.3 Accrual basis additions to capital expenditures 4.7 1.3 — 6.0 Nine Months Ended September 30, 2021 Net sales to external customers $ 732.2 $ 232.2 $ — $ 964.4 Intersegment sales 42.8 1.8 (44.6 ) — Total sales $ 775.0 $ 234.0 $ ( 44.6 ) $ 964.4 Other operating expense 16.3 ( 0.5 ) 0.2 16.0 Operating income (loss) 61.9 17.1 ( 50.2 ) 28.8 Depreciation and amortization 91.4 10.9 0.1 102.4 Stock-based compensation 2.1 0.4 13.7 16.2 Accrual basis additions to capital expenditures 10.7 3.6 — 14.3 Nine Months Ended September 30, 2020 Net sales to external customers $ 960.4 $ 246.2 $ — $ 1,206.6 Intersegment sales 48.0 1.6 (49.6 ) — Total sales $ 1,008.4 $ 247.8 $ ( 49.6 ) $ 1,206.6 Other operating expense 25.5 2.7 15.4 43.6 Operating income (loss) 75.0 3.3 ( 43.8 ) 34.5 Depreciation and amortization 94.3 11.6 0.1 106.0 Stock-based compensation 5.9 1.6 5.5 13.0 Accrual basis additions to capital expenditures 35.4 4.0 — 39.4 (a) We do not allocate corporate expenses to the operating segments. Goodwill and Intangible Assets Composite Engineered (In millions) Materials Products Total Balance at December 31, 2020 $ 98.7 $ 179.1 $ 277.8 Amortization expense ( 1.5 ) ( 3.8 ) ( 5.3 ) Currency translation adjustments ( 2.7 ) 0.1 ( 2.6 ) Balance at September 30, 2021 $ 94.5 $ 175.4 $ 269.9 At September 30, 2021, the balance of goodwill and intangible assets was $ 191.1 million and $ 78.8 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 11 — Accumulated Other Comprehensive Loss Comprehensive loss represents net loss and other gains and losses affecting stockholders’ equity that are not reflected in the Condensed Consolidated Statements of Operations. The components of accumulated other comprehensive loss as of September 30, 2021 and December 31, 2020 were as follows: (In millions) Unrecognized Change in Fair Foreign Total Balance at December 31, 2020 $ ( 40.4 ) $ 15.6 $ ( 34.8 ) $ ( 59.6 ) Other comprehensive loss income before reclassifications ( 1.4 ) ( 0.2 ) ( 22.3 ) ( 23.9 ) Amounts reclassified from accumulated other comprehensive 0.5 ( 10.8 ) — ( 10.3 ) Other comprehensive loss ( 0.9 ) ( 11.0 ) ( 22.3 ) ( 34.2 ) Balance at September 30, 2021 $ ( 41.3 ) $ 4.6 $ ( 57.1 ) $ ( 93.8 ) (1) Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps . The amounts of net losses reclassified to earnings from the unrecognized net defined benefit and postretirement plan costs component of accumulated other comprehensive loss for the quarter and nine months ended September 30, 2021 , were less than $ 0.3 million less taxes of less than $ 0.1 million and $ 0.5 million less taxes of less than $ 0.1 million, respectively. The amounts reclassified to earnings from the change in fair value of the derivatives products component of accumulated other comprehensive loss for the quarter and nine months ended September 30, 2021 were net gains of $ 1.5 million less taxes of $ 0.3 million and $ 4.8 million less taxes of $ 1.1 million, respectively, for those related to foreign currency forward exchange contracts and gains of $ 2.0 million less taxes of $ 0.5 million and $ 2.8 million less taxes of $ 0.7 million, respectively, related to commodity swaps. We also recorded net losses of $ 3.8 million less taxes of $ 0.9 million and net gains of $ 6.5 million less taxes of less than $ 1.5 million related to interest rate derivatives, for the three- and nine-month periods ended September 30, 2021, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 — Commitments and Contingencies We are involved in litigation, investigations and claims arising out of the normal conduct of our business, including those relating to commercial transactions, environmental, employment and health and safety matters. While it is impossible to predict the ultimate resolution of litigation, investigations and claims asserted against us , we believe, based upon our examination of currently available information, our experience to date, and advice from legal counsel, that, after taking into account our existing insurance coverage and amounts already provided for, the currently pending legal proceedings against us will not have a material adverse impact on our consolidated results of operations, financial position or cash flows . Environmental Matters We have been named as a potentially responsible party (“PRP”) with respect to the below and other hazardous waste disposal sites that we do not own or possess, which are included on, or proposed to be included on, the Superfund National Priority List of the U.S. Environmental Protection Agency (“EPA”) or on equivalent lists of various state governments. Because the Federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”) allows for joint and several liability in certain circumstances, we could be responsible for all remediation costs at such sites, even if we are one of many PRPs. We believe, based on the amount and nature of our waste, and the number of other financially viable PRPs, that our liability in connection with such environmental matters will not be material . Lower Passaic River Study Area Hexcel together with approximately 48 other PRPs that comprise the Lower Passaic Cooperating Parties Group (the “CPG”), are subject to a May 2007 Administrative Order on Consent (“AOC”) with the EPA requiring the CPG to perform a Remedial Investigation/Feasibility Study of environmental conditions of a 17 -mile stretch of the Passaic River in New Jersey (the “Lower Passaic River”). We were included in the CPG based on our operations at our former manufacturing site in Lodi, New Jersey. In March 2016, the EPA issued a Record of Decision (“ROD”) setting forth the EPA’s selected remedy for the lower eight miles of the Lower Passaic River at an expected cost ranging from $ 0.97 billion to $ 2.07 billion. This estimate does not include any costs related to a future remedy for the upper nine miles of the Lower Passaic River. In August 2017, the EPA appointed an independent third-party allocation expert to make recommendations on the relative liability of approximately 120 identified non-government PRPs. In December 2020, the allocator issued its non-binding report on PRP liability (including Hexcel’s) to the EPA, which did not result in any change to Hexcel’s accrual for the Passaic matter. We do not know to what extent, if at all, this non-binding report will impact the ultimate outcome of the matter. In October 2021, the EPA released a ROD selecting an interim remedy for the upper nine miles of the Lower Passaic River at an expected additional cost ranging from $ 308.7 million to $ 661.5 million. . In October 2016, pursuant to a settlement agreement with the EPA, Occidental Chemical Corporation (“OCC”), one of the PRPs, commenced performance of the remedial design required by the ROD for the lower eight miles of the Lower Passaic River, reserving its right of cost contribution from all other PRPs. In June 2018, OCC filed suit against approximately 120 parties, including Hexcel, in the U.S. District Court of the District of New Jersey seeking cost recovery and contribution under CERCLA related to the Lower Passaic River. In July 2019, the court granted in part and denied in part the defendants’ motion to dismiss. In August 2020, the court granted defendants’ motion for summary judgement for certain claims. Discovery for the remaining claims is ongoing. On February 24, 2021, Hexcel and certain other defendants filed a third-party complaint against the Passaic Valley Sewerage Commission and certain New Jersey municipalities seeking recovery of Passaic-related cleanup costs incurred by defendants, as well as contribution for any cleanup costs incurred by OCC for which the court deems the defendants liable. The accrual related to the Lower Passaic River site was approximately $ 2.1 million as of September 30, 2021 and December 31, 2020. Given the uncertainty associated with the many elements of the Superfund process for the Lower Passaic River, the amounts accrued may not be indicative of the amounts for which we will ultimately be responsible. Summary of Environmental Reserves Our estimate of liability as a PRP and our remaining costs associated with our responsibility to remediate the Lower Passaic River and other sites are accrued in the Condensed Consolidated Balance Sheets. As of September 30, 2021 and December 31, 2020, our aggregate environmental related accruals were $ 2.2 million and $ 2.4 million, respectively, of which $ 0.2 million and $ 0.5 million, respectively, was included in accrued liabilities with the remainder included in other non-current liabilities. As related to certain environmental matters the accrual was estimated at the low end of a range of possible outcomes since no amount within the range is a better estimate than any other amount. If we had accrued, for those sites where we are able to estimate our liability, at the high end of the range of possible outcomes, our accrual would have been $ 16 million higher at September 30, 2021 and December 31, 2020. These accruals can change significantly from period to period due to such factors as additional information on the nature or extent of contamination, the methods of remediation required, changes in the apportionment of costs among responsible parties and other actions by governmental agencies or private parties, or the impact, if any, of being named in a new matter. Product Warranty We provide standard assurance-type warranties for our products, which cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Warranty expense for the nine months ended September 30, 2021, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at September 30, 2021 and December 31, 2020, were as follows: Product (In millions) Warranties Balance as of December 31, 2020 $ 2.6 Warranty expense 0.2 Deductions and other ( 0.3 ) Balance as of March 31, 2021 $ 2.5 Warranty expense ( 0.5 ) Deductions and other ( 0.2 ) Balance as of June 30, 2021 $ 1.8 Warranty expense 0.3 Deductions and other ( 0.3 ) Balance as of September 30, 2021 $ 1.8 |
Other Operating Expense
Other Operating Expense | 9 Months Ended |
Sep. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Other Operating Expense | Note 13 — Other Operating Expense We recognized restructuring charges of $ 0.8 million and $ 18.3 million for the quarter and nine months ended September 30, 2021, respectively, primarily related to severance and asset impairments. Anticipated future cash payments as of September 30, 2021 were $ 10.3 million. For the nine months ended September 30, 2021, other operating expenses also included a benefit related to the reduction of a contingent liability. For the quarter ended September 30, 2020, we recognized a restructuring charge of $ 15.8 million, of which $ 9.4 million related to asset impairments for the planned closure of our Windsor, Colorado plant, and the remainder was primarily related to severance due to job reductions. For the nine months ended 2020, other operating expense of $ 43.6 million primarily related to costs associated with the terminated merger agreement with Woodward, Inc. as well as restructuring charges related to job reductions. Activity for the Quarter Ended September 30, 2021 June 30, Restructuring Cash September 30, (In Millions) 2021 Charge FX Impact Paid Non-Cash 2021 Employee termination $ 12.5 $ 0.7 $ ( 0.3 ) $ ( 2.6 ) $ — $ 10.3 Impairment and other — 0.1 — ( 0.1 ) — — Total $ 12.5 $ 0.8 $ ( 0.3 ) $ ( 2.7 ) $ — $ 10.3 Activity for the Nine Months Ended September 30, 2021 December 31, Restructuring Cash September 30, (In Millions) 2020 Charge FX Impact Paid Non-Cash 2021 Employee termination $ 14.2 $ 11.4 $ ( 0.6 ) $ ( 14.7 ) $ — $ 10.3 Impairment and other — 6.9 — ( 3.6 ) ( 3.3 ) — Total $ 14.2 $ 18.3 $ ( 0.6 ) $ ( 18.3 ) $ ( 3.3 ) $ 10.3 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared from the unaudited accounting records of Hexcel pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been omitted pursuant to rules and regulations of the SEC. In the opinion of management, the condensed consolidated financial statements include all normal recurring adjustments as well as any non-recurring adjustments necessary to present fairly the statement of financial position, results of operations, cash flows and statement of stockholders’ equity for the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from the audited 2020 consolidated balance sheet. Interim results are not necessarily indicative of results expected for any other interim period or for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. |
Investments in Affiliated Companies | Investments in Affiliated Companies We have a 50 % equity investment in Aerospace Composites Malaysia Sdn. Bhd. and a 25 % equity investment in HexCut Services SAS. These investments are accounted for using the equity method of accounting. |
Assets Held for Sale | Assets Held for Sale In early November 2020 we closed our wind energy prepeg production facility in Windsor, Colorado and as a result, certain plant assets to be sold have been recorded in “Assets held for sale” in the Condensed Consolidated Balance Sheets at both September 30, 2021 and December 31, 2020. The sale of these assets is expected to occur in the fourth quarter of 2021. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018-14 (ASU 2018-14 ), Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) , which amends the current disclosure requirements regarding defined benefit pensions and other post retirement plans , and allows for the removal of certain disclosures, while adding certain new disclosure requirements. This standard is effective for fiscal years beginning after December 15, 2020. Adoption of this new standard did not have a significant impact to our disclosures. In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which amends and aims to simplify accounting disclosure requirements regarding a number of topics including intraperiod tax allocation, accounting for deferred taxes when there are changes in consolidation of certain investments, tax basis step up in an acquisition and the application of effective rate changes during interim periods, among other improvements. This standard is effective for fiscal years beginning after December 15, 2020. Adoption of this new standard did not have a material impact on the Company. |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share Basic and Diluted | Quarter Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2021 2020 2021 2020 Basic net income (loss) per common share: Net income (loss) $ 9.0 $ 9.7 $ ( 2.8 ) $ 51.1 Weighted average common shares outstanding 84.1 83.8 84.1 83.7 Basic net income (loss) per common share $ 0.11 $ 0.12 $ ( 0.03 ) $ 0.61 Diluted net income (loss) per common share: Net income (loss) 9.0 9.7 ( 2.8 ) 51.1 Weighted average common shares outstanding — Basic 84.1 83.8 84.1 83.7 Plus incremental shares from assumed conversions: Restricted stock units 0.3 0.1 — 0.2 Stock options 0.3 0.1 — 0.1 Weighted average common shares outstanding — Dilutive 84.7 84.0 84.1 84.0 Diluted net income (loss) per common share $ 0.11 $ 0.12 $ ( 0.03 ) $ 0.61 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) September 30, 2021 December 31, 2020 Raw materials $ 112.0 $ 94.9 Work in progress 37.6 23.6 Finished goods 94.9 95.0 Total Inventory $ 244.5 $ 213.5 |
Retirement and Other Postreti_2
Retirement and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Retirement Plans | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans | Quarter Ended September 30, Nine Months Ended September 30, (In millions) 2021 2020 2021 2020 European Defined Benefit Retirement Plans Service cost $ 0.2 $ 0.2 $ 0.7 $ 0.7 Interest cost 0.5 0.9 1.6 2.6 Expected return on plan assets ( 0.8 ) ( 1.7 ) ( 2.6 ) ( 5.1 ) Net amortization and deferral 0.3 0.1 0.8 0.3 Net periodic benefit cost (credit) $ 0.2 $ ( 0.5 ) $ 0.5 $ ( 1.5 ) |
Schedule of Amounts Recognized on Balance Sheet | (In millions) September 30, 2021 December 31, 2020 Amounts recognized on the balance sheet for European defined benefit retirement plans: Other assets $ 35.0 $ 31.5 Accrued liabilities 1.0 0.9 Other non-current liabilities 18.8 17.7 Total accrued benefit $ 19.8 $ 18.6 |
Defined Benefit Retirement Plans | Non qualified | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans | Net periodic benefit costs of our defined benefit retirement plans for the quarter and nine months ended September 30, 2021 and 2020 were as follows: Quarter Ended September 30, Nine Months Ended September 30, (In millions) 2021 2020 2021 2020 U.S. Nonqualified Defined Benefit Retirement Plans Service cost $ 0.2 $ 0.3 $ 0.8 $ 0.9 Interest cost - 0.2 0.2 0.4 Net amortization 0.3 - 0.5 0.2 Net periodic benefit cost $ 0.5 $ 0.5 $ 1.5 $ 1.5 |
Schedule of Amounts Recognized on Balance Sheet | (In millions) September 30, 2021 December 31, 2020 Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans: Accrued liabilities $ 3.7 $ 3.8 Other non-current liabilities 19.9 19.4 Total accrued benefit $ 23.6 $ 23.2 |
Postretirement Health Care and Life Insurance Benefit Plans | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Amounts Recognized on Balance Sheet | Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the quarters and nine months ended September 30, 2021 and 2020 were immaterial. (In millions) September 30, 2021 December 31, 2020 Amounts recognized on the balance sheet: Accrued liabilities $ 0.4 $ 0.4 Other non-current liabilities 2.2 2.2 Total accrued benefit $ 2.6 $ 2.6 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Capital Lease Obligations | (In millions) September 30, 2021 December 31, 2020 Current portion of finance lease $ 0.9 $ 0.9 Current portion of debt 0.9 0.9 Senior unsecured credit facility 179.0 228.0 4.7 % senior notes --- due 2025 300.0 300.0 3.95 % senior notes --- due 2027 400.0 400.0 Senior notes --- original issue discount ( 1.3 ) ( 1.5 ) Senior notes --- deferred financing costs ( 3.0 ) ( 3.5 ) Non-current portion of finance lease and other debt 1.7 2.5 Long-term debt 876.4 925.5 Total debt $ 877.3 $ 926.4 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Change in Fair Value of Foreign Currency Forward Exchange Contracts Under Hedge Designations | The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive (loss) income for the quarters and nine months ended September 30, 2021 and September 30, 2020 was as follows: Quarter Ended September 30, Nine Months Ended September 30, (In millions) 2021 2020 2021 2020 Unrealized gains (losses) at beginning of period, net of tax $ 5.3 $ ( 12.3 ) $ 10.6 $ ( 8.4 ) (Gains) losses reclassified to net sales ( 1.2 ) 2.0 ( 3.7 ) 9.7 (Decrease) increase in fair value ( 4.8 ) 11.1 ( 7.6 ) ( 0.5 ) Unrealized (losses) gains at end of period, net of tax $ ( 0.7 ) $ 0.8 $ ( 0.7 ) $ 0.8 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue By Market | The following table details our revenue by market for the quarters and nine months ended September 30, 2021 and 2020: Quarter Ended September 30, Nine Months Ended September 30, (In millions) 2021 2020 2021 2020 Consolidated Net Sales $ 333.8 $ 286.9 $ 964.4 $ 1,206.6 Commercial Aerospace 167.2 128.8 468.5 695.6 Space & Defense 110.4 108.8 329.0 328.8 Industrial 56.2 49.3 166.9 182.2 |
Schedule of Activity Related to Contract Assets | The activity related to contract assets for the nine months ended September 30, 2021 was as follows: (In millions) Composite Material Engineered Products Total Balance at December 31, 2020 $ 7.8 $ 35.3 $ 43.1 Net revenue billed 1.6 ( 2.4 ) ( 0.8 ) Balance at March 31, 2021 $ 9.4 $ 32.9 $ 42.3 Net revenue billed ( 1.8 ) — ( 1.8 ) Balance at June 30, 2021 $ 7.6 $ 32.9 $ 40.5 Net revenue billed ( 0.3 ) ( 1.8 ) ( 2.1 ) Balance at September 30, 2021 $ 7.3 $ 31.1 $ 38.4 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Reporting Information | Financial information for our operating segments for the quarters and nine months ended September 30, 2021 and 2020 were as follows: (Unaudited) Composite Engineered Corporate & (In millions) Materials Products Other (a) Total Third Quarter 2021 Net sales to external customers $ 254.1 $ 79.7 $ — $ 333.8 Intersegment sales 15.0 0.4 (15.4 ) — Total sales $ 269.1 $ 80.1 $ ( 15.4 ) $ 333.8 Other operating expense 0.8 - - 0.8 Operating income (loss) 30.0 6.5 ( 13.7 ) 22.8 Depreciation and amortization 30.1 3.6 - 33.7 Stock-based compensation 0.7 0.1 2.1 2.9 Accrual basis additions to capital expenditures 3.7 2.8 — 6.5 Third Quarter 2020 Net sales to external customers $ 215.7 $ 71.2 $ — $ 286.9 Intersegment sales 7.8 0.7 (8.5 ) — Total sales $ 223.5 $ 71.9 $ ( 8.5 ) $ 286.9 Other operating expense 16.4 — ( 0.6 ) 15.8 Operating (loss) income ( 36.6 ) ( 2.7 ) 1.7 ( 37.6 ) Depreciation and amortization 31.7 3.9 — 35.6 Stock-based compensation 1.5 0.5 ( 1.7 ) 0.3 Accrual basis additions to capital expenditures 4.7 1.3 — 6.0 Nine Months Ended September 30, 2021 Net sales to external customers $ 732.2 $ 232.2 $ — $ 964.4 Intersegment sales 42.8 1.8 (44.6 ) — Total sales $ 775.0 $ 234.0 $ ( 44.6 ) $ 964.4 Other operating expense 16.3 ( 0.5 ) 0.2 16.0 Operating income (loss) 61.9 17.1 ( 50.2 ) 28.8 Depreciation and amortization 91.4 10.9 0.1 102.4 Stock-based compensation 2.1 0.4 13.7 16.2 Accrual basis additions to capital expenditures 10.7 3.6 — 14.3 Nine Months Ended September 30, 2020 Net sales to external customers $ 960.4 $ 246.2 $ — $ 1,206.6 Intersegment sales 48.0 1.6 (49.6 ) — Total sales $ 1,008.4 $ 247.8 $ ( 49.6 ) $ 1,206.6 Other operating expense 25.5 2.7 15.4 43.6 Operating income (loss) 75.0 3.3 ( 43.8 ) 34.5 Depreciation and amortization 94.3 11.6 0.1 106.0 Stock-based compensation 5.9 1.6 5.5 13.0 Accrual basis additions to capital expenditures 35.4 4.0 — 39.4 (a) We do not allocate corporate expenses to the operating segments. |
Schedule of Goodwill and Intangible Assets by Segment | Goodwill and Intangible Assets Composite Engineered (In millions) Materials Products Total Balance at December 31, 2020 $ 98.7 $ 179.1 $ 277.8 Amortization expense ( 1.5 ) ( 3.8 ) ( 5.3 ) Currency translation adjustments ( 2.7 ) 0.1 ( 2.6 ) Balance at September 30, 2021 $ 94.5 $ 175.4 $ 269.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of September 30, 2021 and December 31, 2020 were as follows: (In millions) Unrecognized Change in Fair Foreign Total Balance at December 31, 2020 $ ( 40.4 ) $ 15.6 $ ( 34.8 ) $ ( 59.6 ) Other comprehensive loss income before reclassifications ( 1.4 ) ( 0.2 ) ( 22.3 ) ( 23.9 ) Amounts reclassified from accumulated other comprehensive 0.5 ( 10.8 ) — ( 10.3 ) Other comprehensive loss ( 0.9 ) ( 11.0 ) ( 22.3 ) ( 34.2 ) Balance at September 30, 2021 $ ( 41.3 ) $ 4.6 $ ( 57.1 ) $ ( 93.8 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty | We provide standard assurance-type warranties for our products, which cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Warranty expense for the nine months ended September 30, 2021, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at September 30, 2021 and December 31, 2020, were as follows: Product (In millions) Warranties Balance as of December 31, 2020 $ 2.6 Warranty expense 0.2 Deductions and other ( 0.3 ) Balance as of March 31, 2021 $ 2.5 Warranty expense ( 0.5 ) Deductions and other ( 0.2 ) Balance as of June 30, 2021 $ 1.8 Warranty expense 0.3 Deductions and other ( 0.3 ) Balance as of September 30, 2021 $ 1.8 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Operating Expense | Activity for the Quarter Ended September 30, 2021 June 30, Restructuring Cash September 30, (In Millions) 2021 Charge FX Impact Paid Non-Cash 2021 Employee termination $ 12.5 $ 0.7 $ ( 0.3 ) $ ( 2.6 ) $ — $ 10.3 Impairment and other — 0.1 — ( 0.1 ) — — Total $ 12.5 $ 0.8 $ ( 0.3 ) $ ( 2.7 ) $ — $ 10.3 Activity for the Nine Months Ended September 30, 2021 December 31, Restructuring Cash September 30, (In Millions) 2020 Charge FX Impact Paid Non-Cash 2021 Employee termination $ 14.2 $ 11.4 $ ( 0.6 ) $ ( 14.7 ) $ — $ 10.3 Impairment and other — 6.9 — ( 3.6 ) ( 3.3 ) — Total $ 14.2 $ 18.3 $ ( 0.6 ) $ ( 18.3 ) $ ( 3.3 ) $ 10.3 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) | Sep. 30, 2021 |
Accounting Standards Update 2018-14 | |
Significant Accounting Policies [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, immaterial effect | true |
Accounting Standards Update 2019-12 | |
Significant Accounting Policies [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, immaterial effect | true |
Aerospace Composites Malaysia Sdn. Bhd. | |
Significant Accounting Policies [Line Items] | |
Interest in affiliated company, accounted for using equity method of accounting (as a percent) | 50.00% |
HexCut Services SAS | |
Significant Accounting Policies [Line Items] | |
Interest in affiliated company, accounted for using equity method of accounting (as a percent) | 25.00% |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Summary of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic net income (loss) per common share: | ||||||||
Net income (loss) | $ 9 | $ 2.2 | $ (14) | $ 9.7 | $ (1) | $ 42.4 | $ (2.8) | $ 51.1 |
Weighted average common shares outstanding - Basic (in shares) | 84.1 | 83.8 | 84.1 | 83.7 | ||||
Basic net income (loss) per common share | $ 0.11 | $ 0.12 | $ (0.03) | $ 0.61 | ||||
Diluted net income (loss) per common share: | ||||||||
Net income (loss) | $ 9 | $ 9.7 | $ (2.8) | $ 51.1 | ||||
Weighted average common shares outstanding - Basic (in shares) | 84.1 | 83.8 | 84.1 | 83.7 | ||||
Plus incremental shares from assumed conversions: | ||||||||
Weighted average common shares outstanding - Dilutive (in shares) | 84.7 | 84 | 84.1 | 84 | ||||
Diluted net income (loss) per common share | $ 0.11 | $ 0.12 | $ (0.03) | $ 0.61 | ||||
Restricted Stock Units | ||||||||
Plus incremental shares from assumed conversions: | ||||||||
Incremental shares from assumed conversions | 0.3 | 0.1 | 0 | 0.2 | ||||
Stock Options | ||||||||
Plus incremental shares from assumed conversions: | ||||||||
Incremental shares from assumed conversions | 0.3 | 0.1 | 0 | 0.1 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount (in shares) | 0.6 | 1.5 | 1.1 | 0.9 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 112 | $ 94.9 |
Work in progress | 37.6 | 23.6 |
Finished goods | 94.9 | 95 |
Total Inventory | $ 244.5 | $ 213.5 |
Retirement and Other Postreti_3
Retirement and Other Postretirement Benefit Plans - Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans (Details) - Defined Benefit Retirement Plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
U.S. | |||||
Net periodic benefit costs of defined benefit retirement plans | |||||
Service cost | $ 0.2 | $ 0.3 | $ 0.8 | $ 0.9 | |
Interest cost | 0 | 0.2 | 0.2 | 0.4 | |
Net amortization and deferral | 0.3 | 0.5 | 0.2 | ||
Net periodic benefit cost (credit) | $ 0.5 | $ 0.5 | $ 1.5 | $ 1.5 | |
Defined Benefit Plan, Tax Status [Extensible List] | Non qualified | Non qualified | Non qualified | Non qualified | Non qualified |
European | |||||
Net periodic benefit costs of defined benefit retirement plans | |||||
Service cost | $ 0.2 | $ 0.2 | $ 0.7 | $ 0.7 | |
Interest cost | 0.5 | 0.9 | 1.6 | 2.6 | |
Expected return on plan assets | (0.8) | (1.7) | (2.6) | (5.1) | |
Net amortization and deferral | 0.3 | 0.1 | 0.8 | 0.3 | |
Net periodic benefit cost (credit) | $ 0.2 | $ (0.5) | $ 0.5 | $ (1.5) |
Retirement and Other Postreti_4
Retirement and Other Postretirement Benefit Plans - Schedule of Amounts Recognized on Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Amounts recognized on the balance sheet: | |||||
Other non-current liabilities | $ 53.2 | $ 53.2 | $ 53.9 | ||
Defined Benefit Retirement Plans | U.S. | |||||
Amounts recognized on the balance sheet: | |||||
Accrued liabilities | 3.7 | 3.7 | 3.8 | ||
Other non-current liabilities | 19.9 | 19.9 | 19.4 | ||
Total accrued benefit | $ 23.6 | $ 23.6 | $ 23.2 | ||
Defined Benefit Plan, Tax Status [Extensible List] | Non qualified | Non qualified | Non qualified | Non qualified | Non qualified |
Defined Benefit Retirement Plans | European | |||||
Amounts recognized on the balance sheet: | |||||
Other assets | $ 35 | $ 35 | $ 31.5 | ||
Accrued liabilities | 1 | 1 | 0.9 | ||
Other non-current liabilities | 18.8 | 18.8 | 17.7 | ||
Total accrued benefit | 19.8 | 19.8 | 18.6 | ||
Postretirement Health Care and Life Insurance Benefit Plans | |||||
Amounts recognized on the balance sheet: | |||||
Accrued liabilities | 0.4 | 0.4 | 0.4 | ||
Other non-current liabilities | 2.2 | 2.2 | 2.2 | ||
Total accrued benefit | $ 2.6 | $ 2.6 | $ 2.6 |
Retirement and Other Postreti_5
Retirement and Other Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Defined Benefit Retirement Plans | |||||
Amounts recognized on the balance sheet: | |||||
Amounts unrelated to service costs, benefit | $ 0.3 | $ 0.5 | $ 0.6 | $ 1.6 | |
Defined Benefit Retirement Plans | U.S. | |||||
Amounts recognized on the balance sheet: | |||||
Employer contribution to defined benefit retirement plans | 0.5 | $ 0.5 | |||
Expected employer contribution in full current year | $ 0.7 | $ 0.7 | |||
Defined Benefit Plan, Tax Status [Extensible List] | Non qualified | Non qualified | Non qualified | Non qualified | Non qualified |
Net amortization gain deferral | $ (0.3) | $ (0.5) | $ (0.2) | ||
Defined Benefit Retirement Plans | European | |||||
Amounts recognized on the balance sheet: | |||||
Employer contribution to defined benefit retirement plans | 2.2 | 1.9 | |||
Expected employer contribution in full current year | 5.6 | 5.6 | |||
Net amortization gain deferral | (0.3) | $ (0.1) | (0.8) | (0.3) | |
Postretirement Health Care and Life Insurance Benefit Plans | |||||
Amounts recognized on the balance sheet: | |||||
Net amortization gain deferral | 0.2 | $ 0.3 | 0.6 | $ 0.7 | |
Postretirement Health Care and Life Insurance Benefit Plans | Maximum | |||||
Amounts recognized on the balance sheet: | |||||
Expected employer contribution in full current year | $ 0.4 | $ 0.4 |
Debt - Schedule of Debt and Cap
Debt - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Current portion of finance lease | $ 0.9 | $ 0.9 |
Current portion of debt | 0.9 | 0.9 |
Long-term debt | 876.4 | 925.5 |
Non-current portion of finance lease and other debt | 1.7 | 2.5 |
Total debt | 877.3 | 926.4 |
Senior unsecured credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 179 | 228 |
4.7% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Senior notes | 300 | 300 |
4.7% senior notes due 2025 and 3.95% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Senior notes --- original issue discount | (1.3) | (1.5) |
Senior notes --- deferred financing costs | (3) | (3.5) |
3.95% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 400 | $ 400 |
Debt - Schedule of Debt and C_2
Debt - Schedule of Debt and Capital Lease Obligations (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2021 | |
4.7% senior notes due 2025 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 4.70% |
Debt instrument, maturity year | 2025 |
3.95% senior notes due 2027 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 3.95% |
Debt instrument, maturity year | 2027 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2017 | Dec. 31, 2015 | Jan. 28, 2021 | Dec. 31, 2020 | May 31, 2019 | |
Debt Instrument [Line Items] | ||||||||
Borrowings | $ 876,400,000 | $ 925,500,000 | ||||||
Senior unsecured credit facility- revolving loan due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 700,000,000 | |||||||
Senior unsecured credit facility- revolving loan due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||
Debt instrument expiration period | 2024-06 | |||||||
Debt instrument, interest rate terms | The interest rate ranges from LIBOR + 0.875% to a maximum of LIBOR + 1.50%, depending upon the better of the Company’s leverage ratio or the credit rating. | |||||||
Maximum amount available under credit facility agreement to issue letters of credit | $ 50,000,000 | |||||||
Letters of credit issued under credit facility | 0 | |||||||
Undrawn availability under credit facility | $ 571,000,000 | |||||||
Weighted average interest rate | 4.16% | |||||||
Senior unsecured credit facility- revolving loan due 2024 | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings | $ 179,000,000 | |||||||
Senior unsecured credit facility- revolving loan due 2024 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility interest rate basis | LIBOR + 0.875% | |||||||
Spread on variable interest rate basis | 0.875% | |||||||
Senior unsecured credit facility- revolving loan due 2024 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility interest rate basis | LIBOR + 1.50% | |||||||
Spread on variable interest rate basis | 1.50% | |||||||
Amended senior unsecured credit facility- revolving loan due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 750,000,000 | |||||||
Debt instrument, covenant terms | On January 28, 2021, we further amended the Facility agreement (the “Second Amendment”) to provide that, from January 28, 2021 through and including March 31, 2022, we will not be subject to a maximum leverage ratio covenant but will instead be required to maintain Liquidity (as defined in the Facility agreement) of at least $250 million. Additionally, during such period, the Company will be subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees are increased; the incremental facility will not be available; and if the Company’s public debt rating is downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2 or lower by Moody’s, we will be required to grant liens on certain of our assets, which liens will be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. The Company’s public debt rating as of September 30, 2021 is BB+/Baa3. | |||||||
Minimum liquidity amount required to maintain under credit agreement liquidity covenant | $ 250,000,000 | |||||||
Interest expense | $ 900,000 | |||||||
3.95% senior unsecured notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face value | $ 400,000,000 | |||||||
Debt instrument, interest rate | 3.95% | 3.95% | ||||||
Debt instrument, maturity year | 2027 | |||||||
Increase in senior notes interest rate | 0.25% | |||||||
Effective interest rate | 4.08% | |||||||
3.95% senior unsecured notes due 2027 | Treasury Lock | Interest Lock Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of effective interest rate benefit | 0.25% | |||||||
3.95% senior unsecured notes due 2027 | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of senior unsecured notes | $ 437,400,000 | |||||||
3.95% senior unsecured notes due 2027 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 5.95% | |||||||
4.7% senior unsecured notes due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face value | $ 300,000,000 | |||||||
Debt instrument, interest rate | 4.70% | |||||||
Debt instrument, maturity year | 2025 | |||||||
Increase in senior notes interest rate | 0.25% | |||||||
Effective interest rate | 5.03% | |||||||
4.7% senior unsecured notes due 2025 | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of senior unsecured notes | $ 331,900,000 | |||||||
4.7% senior unsecured notes due 2025 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 6.70% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Nov. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Item | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Nov. 30, 2020EUR (€) | Dec. 31, 2017 | |
Derivative [Line Items] | ||||||||
Carrying value of derivative current asset | $ 3,200,000 | $ 3,200,000 | ||||||
Carrying value / fair value of derivative assets included in other non-current assets | 2,100,000 | 2,100,000 | ||||||
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months | 900,000 | 900,000 | ||||||
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months, taxes | $ 100,000 | $ 100,000 | ||||||
3.95% senior unsecured notes due 2027 | ||||||||
Derivative [Line Items] | ||||||||
Debt instrument, interest rate | 3.95% | 3.95% | 3.95% | |||||
Proceeds from issue of senior notes in settlement of derivatives | $ 10,000,000 | |||||||
3.95% senior unsecured notes due 2027 | Maximum | ||||||||
Derivative [Line Items] | ||||||||
Debt instrument, interest rate | 5.95% | |||||||
Interest Rate Swap Agreements | ||||||||
Derivative [Line Items] | ||||||||
Carrying value / fair value of derivative liabilities | $ 0 | $ 0 | $ 0 | |||||
Treasury Lock | Interest Lock Agreement | 3.95% senior unsecured notes due 2027 | ||||||||
Derivative [Line Items] | ||||||||
Percentage of reduction in effective interest rate on senior notes | 0.25% | |||||||
Cross Currency And Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Floating rate obligation | $ 319,900,000 | € 270 | ||||||
Derivative amortization period | 5 years | |||||||
Derivative fixed interest rate (as a percent) | 0.30% | 0.30% | ||||||
Derivative, additional fixed interest rate | 1.115% | 1.115% | ||||||
Derivative swaps, frequency of periodic payment | semi-annually | |||||||
Derivative swaps, principal amortize at Nov. 15, 2021 | $ 59,200,000 | € 50 | ||||||
Derivative swaps, principal amortize at Nov. 15, 2022 | 59,200,000 | 50 | ||||||
Derivative swaps, principal amortize at Nov. 15, 2023 | 59,200,000 | 50 | ||||||
Derivative swaps, principal amortize at Nov. 15, 2024 | 59,200,000 | 50 | ||||||
Derivative swaps, principal amortize at Nov. 15, 2025 | $ 82,900,000 | € 70 | ||||||
Foreign Currency Forward Exchange Contracts | ||||||||
Derivative [Line Items] | ||||||||
Number of credit contingency features | Item | 0 | |||||||
Foreign Currency Forward Exchange Contracts | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Gains (losses) in other comprehensive income, effective portion | (6,200,000) | $ 14,400,000 | $ 10,200,000 | $ (100,000) | ||||
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Carrying value / fair value of derivative liabilities | 4,800,000 | 4,800,000 | 2,500,000 | |||||
Carrying value / fair value of derivative liabilities included in other non-current liabilities | 2,200,000 | 2,200,000 | 100,000 | |||||
Notional amount | 250,500,000 | 250,500,000 | 250,300,000 | |||||
Carrying value / fair value of derivative assets | 3,200,000 | 3,200,000 | 16,000,000 | |||||
Carrying value / fair value of derivative assets included in prepaid expenses and other current assets | 3,100,000 | 3,100,000 | 10,700,000 | |||||
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net gain (loss) recognized in gross margin | 1,500,000 | (2,600,000) | 4,800,000 | (12,700,000) | ||||
Foreign Currency Forward Exchange Contracts | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Carrying value / fair value of derivative liabilities | 100,000 | 100,000 | 100,000 | |||||
Foreign exchange net gains (losses) on derivative contracts not designated as hedges | (300,000) | $ (900,000) | (1,400,000) | $ (2,500,000) | ||||
Commodity Swap Agreements | ||||||||
Derivative [Line Items] | ||||||||
Carrying value / fair value of derivative liabilities | 1,100,000 | |||||||
Notional amount | 12,200,000 | 12,200,000 | ||||||
Carrying value / fair value of derivative assets | 4,600,000 | 4,600,000 | 2,200,000 | |||||
Carrying value / fair value of derivative assets included in prepaid expenses and other current assets | 4,200,000 | 4,200,000 | $ 1,500,000 | |||||
Commodity Swap Agreements | Maximum | ||||||||
Derivative [Line Items] | ||||||||
Carrying value / fair value of derivative liabilities | $ 100,000 | $ 100,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Foreign Currency Forward Exchange Contracts Under Hedge Designations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Derivative [Line Items] | |||||
Balance | $ 1,502.8 | $ 1,436.9 | $ 1,510.2 | $ 1,446.1 | |
Balance | 1,494.3 | 1,499.4 | 1,494.3 | 1,499.4 | |
Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Balance | [1] | 15.6 | |||
Balance | 4.6 | 4.6 | |||
Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts | |||||
Derivative [Line Items] | |||||
Balance | 5.3 | (12.3) | 10.6 | (8.4) | |
(Gains) losses reclassified to net sales | (1.2) | 2 | (3.7) | 9.7 | |
(Decrease) increase in fair value | (4.8) | 11.1 | (7.6) | (0.5) | |
Balance | $ (0.7) | $ 0.8 | $ (0.7) | $ 0.8 | |
[1] | Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (5.1) | $ 56.9 | $ (1.6) | $ 48.7 |
Increase (decrease) due to tax audit settlements | $ (46.2) | |||
Effective tax rate (as a percent) | 38.30% | |||
Discrete tax expense (benefit) from revaluation of deferred tax liabilities | $ 1.3 | $ 0.8 | $ 2.7 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($)LiabilityItem | Dec. 31, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Number of counterparties, which experienced significant downgrades | Item | 0 | |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | |
Liabilities | $ 0 | |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value measurement with unobservable inputs reconciliation, number of liabilities | Liability | 1 | |
Level 3 | OPM, Inc. Acquisition | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Acquisition of fair value liabilities, contingent consideration | $ 0.4 | |
Level 2 | Fair Value Measured on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 13.1 | $ 18.4 |
Derivative liabilities | 4.8 | 14.8 |
Level 2 | Fair Value Measured on Recurring Basis | Cross Currency And Interest Rate Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 5.3 | $ 0.3 |
Derivative Asset, Measurement Input [Extensible List] | us-gaap:MeasurementInputRiskFreeInterestRateMember | us-gaap:MeasurementInputRiskFreeInterestRateMember |
Derivative liabilities | $ 11.1 | |
Derivative Liability, Measurement Input [Extensible List] | us-gaap:MeasurementInputRiskFreeInterestRateMember | |
Level 2 | Fair Value Measured on Recurring Basis | Foreign Currency Forward Exchange Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 3.2 | $ 16 |
Derivative Asset, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember | us-gaap:MeasurementInputQuotedPriceMember |
Derivative liabilities | $ 4.8 | $ 2.6 |
Derivative Liability, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember | us-gaap:MeasurementInputQuotedPriceMember |
Level 2 | Fair Value Measured on Recurring Basis | Commodity Swap Agreements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 4.6 | $ 2.2 |
Derivative Asset, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember | us-gaap:MeasurementInputQuotedPriceMember |
Derivative liabilities | $ 1.1 | |
Derivative Liability, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember | |
Level 2 | Fair Value Measured on Recurring Basis | Commodity Swap Agreements | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0.1 | |
Derivative Liability, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue recognition, description of timing | As our production cycle is typically nine months or less, it is expected that goods related to the revenue recognized over time will be shipped and billed within the next twelve months. |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Market (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Consolidated Net Sales | $ 333.8 | $ 286.9 | $ 964.4 | $ 1,206.6 |
Commercial Aerospace | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated Net Sales | 167.2 | 128.8 | 468.5 | 695.6 |
Space & Defense | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated Net Sales | 110.4 | 108.8 | 329 | 328.8 |
Industrial | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated Net Sales | $ 56.2 | $ 49.3 | $ 166.9 | $ 182.2 |
Revenue - Schedule of Activity
Revenue - Schedule of Activity Related to Contract Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Change in Contract with Customer Asset [Line Items] | |||
Beginning Balance | $ 40.5 | $ 42.3 | $ 43.1 |
Net revenue billed | (2.1) | (1.8) | (0.8) |
Ending Balance | 38.4 | 40.5 | 42.3 |
Composite Materials | |||
Change in Contract with Customer Asset [Line Items] | |||
Beginning Balance | 7.6 | 9.4 | 7.8 |
Net revenue billed | (0.3) | (1.8) | 1.6 |
Ending Balance | 7.3 | 7.6 | 9.4 |
Engineered Products | |||
Change in Contract with Customer Asset [Line Items] | |||
Beginning Balance | 32.9 | 32.9 | 35.3 |
Net revenue billed | (1.8) | (2.4) | |
Ending Balance | $ 31.1 | $ 32.9 | $ 32.9 |
Segment Information - Schedule
Segment Information - Schedule of Operating Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Total sales | $ 333.8 | $ 286.9 | $ 964.4 | $ 1,206.6 | |
Other operating expense | 0.8 | 15.8 | 16 | 43.6 | |
Operating income (loss) | 22.8 | (37.6) | 28.8 | 34.5 | |
Depreciation and amortization | 33.7 | 35.6 | 102.4 | 106 | |
Stock-based compensation | 2.9 | 0.3 | 16.2 | 13 | |
Accrual basis additions to capital expenditures | 6.5 | 6 | 14.3 | 39.4 | |
Corporate & Other and Intersegment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | [1] | (15.4) | (8.5) | (44.6) | (49.6) |
Other operating expense | [1] | 0 | (0.6) | 0.2 | 15.4 |
Operating income (loss) | [1] | (13.7) | 1.7 | (50.2) | (43.8) |
Depreciation and amortization | [1] | 0 | 0.1 | 0.1 | |
Stock-based compensation | [1] | 2.1 | (1.7) | 13.7 | 5.5 |
Accrual basis additions to capital expenditures | [1] | 0 | |||
Composite Materials | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 254.1 | 215.7 | 732.2 | 960.4 | |
Composite Materials | Intersegment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 15 | 7.8 | 42.8 | 48 | |
Composite Materials | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 269.1 | 223.5 | 775 | 1,008.4 | |
Other operating expense | 0.8 | 16.4 | 16.3 | 25.5 | |
Operating income (loss) | 30 | (36.6) | 61.9 | 75 | |
Depreciation and amortization | 30.1 | 31.7 | 91.4 | 94.3 | |
Stock-based compensation | 0.7 | 1.5 | 2.1 | 5.9 | |
Accrual basis additions to capital expenditures | 3.7 | 4.7 | 10.7 | 35.4 | |
Engineered Products | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 79.7 | 71.2 | 232.2 | 246.2 | |
Engineered Products | Intersegment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 0.4 | 0.7 | 1.8 | 1.6 | |
Engineered Products | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 80.1 | 71.9 | 234 | 247.8 | |
Other operating expense | 0 | (0.5) | 2.7 | ||
Operating income (loss) | 6.5 | (2.7) | 17.1 | 3.3 | |
Depreciation and amortization | 3.6 | 3.9 | 10.9 | 11.6 | |
Stock-based compensation | 0.1 | 0.5 | 0.4 | 1.6 | |
Accrual basis additions to capital expenditures | $ 2.8 | $ 1.3 | $ 3.6 | $ 4 | |
[1] | We do not allocate corporate expenses to the operating segments. |
Segment Information - Schedul_2
Segment Information - Schedule of Goodwill and Intangible Assets by Segment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Changes in the carrying amount of gross goodwill and other purchased intangibles | |
Balance at the beginning of the period | $ 277.8 |
Amortization expense | (5.3) |
Currency translation adjustments | (2.6) |
Balance at the end of the period | 269.9 |
Composite Materials | |
Changes in the carrying amount of gross goodwill and other purchased intangibles | |
Balance at the beginning of the period | 98.7 |
Amortization expense | (1.5) |
Currency translation adjustments | (2.7) |
Balance at the end of the period | 94.5 |
Engineered Products | |
Changes in the carrying amount of gross goodwill and other purchased intangibles | |
Balance at the beginning of the period | 179.1 |
Amortization expense | (3.8) |
Currency translation adjustments | 0.1 |
Balance at the end of the period | $ 175.4 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Millions | Sep. 30, 2021USD ($) |
Segment Reporting [Abstract] | |
Goodwill | $ 191.1 |
Intangible assets | $ 78.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Balance | $ 1,502.8 | $ 1,486.9 | $ 1,510.2 | $ 1,436.9 | $ 1,421.1 | $ 1,446.1 | $ 1,510.2 | $ 1,446.1 | |
Total other comprehensive (loss) income | (20.6) | 5.5 | (19.1) | 52.8 | 17.3 | (36.6) | (34.2) | 33.5 | |
Balance | 1,494.3 | 1,502.8 | 1,486.9 | 1,499.4 | 1,436.9 | 1,421.1 | 1,494.3 | 1,499.4 | |
Unrecognized Net Defined Benefit and Postretirement Plan Costs | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Balance | (40.4) | (40.4) | |||||||
Other comprehensive (loss) income before reclassifications | (1.4) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | (0.5) | ||||||||
Total other comprehensive (loss) income | (0.9) | ||||||||
Balance | (41.3) | (41.3) | |||||||
Change in Fair Value of Derivatives Products | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Balance | [1] | 15.6 | 15.6 | ||||||
Other comprehensive (loss) income before reclassifications | [1] | (0.2) | |||||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 10.8 | |||||||
Total other comprehensive (loss) income | [1] | (11) | |||||||
Balance | 4.6 | 4.6 | |||||||
Foreign Currency Translation | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Balance | (34.8) | (34.8) | |||||||
Other comprehensive (loss) income before reclassifications | 22.3 | ||||||||
Total other comprehensive (loss) income | (22.3) | ||||||||
Balance | (57.1) | (57.1) | |||||||
Accumulated Other Comprehensive Loss | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Balance | (73.2) | (78.7) | (59.6) | (138) | (155.3) | (118.7) | (59.6) | (118.7) | |
Other comprehensive (loss) income before reclassifications | 23.9 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 10.3 | ||||||||
Total other comprehensive (loss) income | (20.6) | 5.5 | (19.1) | 52.8 | 17.3 | (36.6) | (34.2) | ||
Balance | $ (93.8) | $ (73.2) | $ (78.7) | $ (85.2) | $ (138) | $ (155.3) | $ (93.8) | $ (85.2) | |
[1] | Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Unrecognized Net Defined Plan Costs | Maximum | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, net losses | $ 0.3 | $ 0.5 |
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax | 0.1 | 0.1 |
Change in Fair Value of Derivatives Products | Foreign Currency Forward Exchange Contracts | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification adjustment from AOCI on derivatives, net gains (losses) | 1.5 | 4.8 |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | 0.3 | 1.1 |
Change in Fair Value of Derivatives Products | Commodity Swap Agreements | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification adjustment from AOCI on derivatives, net gains (losses) | 2 | 2.8 |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | 0.5 | 0.7 |
Change in Fair Value of Derivatives Products | Interest Rate Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification adjustment from AOCI on derivatives, net gains (losses) | (3.8) | 6.5 |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | $ (0.9) | |
Change in Fair Value of Derivatives Products | Maximum | Interest Rate Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | $ 1.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 9 Months Ended | ||||
Oct. 18, 2021USD ($)mi | Aug. 31, 2017Prp | Oct. 31, 2016mi | Mar. 31, 2016USD ($)mi | Sep. 30, 2021USD ($)Entitymi | Dec. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | ||||||
Accrual for environmental loss contingencies | $ 2,200,000 | $ 2,400,000 | ||||
Aggregate environmental accruals included in current other accrued liabilities | 200,000 | 500,000 | ||||
Amount which is better estimate within range | 0 | 0 | ||||
Remediation accrual balance if accrued at high end of the range of possible outcomes | $ 16,000,000 | 16,000,000 | ||||
Lower Passaic River | ||||||
Loss Contingencies [Line Items] | ||||||
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection | Entity | 48 | |||||
'Length of river to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of environmental conditions | mi | 17 | |||||
Number of identified non governmental potentially responsible parties | Prp | 120 | |||||
Accrual for environmental loss contingencies | $ 2,100,000 | $ 2,100,000 | ||||
Lower Passaic River | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi | 8 | 8 | ||||
Expected cost of capping and dredging of the lower eight miles of the river by EPA | $ 970,000,000 | |||||
Lower Passaic River | Minimum | Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Expected cost of capping and dredging of the lower eight miles of the river by EPA | $ 308,700,000 | |||||
Lower Passaic River | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi | 9 | |||||
Expected cost of capping and dredging of the lower eight miles of the river by EPA | $ 2,070,000,000 | |||||
Lower Passaic River | Maximum | Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi | 9 | |||||
Expected cost of capping and dredging of the lower eight miles of the river by EPA | $ 661,500,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Product Warranty (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Changes in accrued product warranty cost | |||
Balance at the beginning of the period | $ 1.8 | $ 2.5 | $ 2.6 |
Warranty expense | 0.3 | (0.5) | 0.2 |
Deductions and other | (0.3) | (0.2) | (0.3) |
Balance at the end of the period | $ 1.8 | $ 1.8 | $ 2.5 |
Other Operating Expense - Addit
Other Operating Expense - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Other Operating Expense [Line Items] | ||||||
Restructuring charge | $ 0.8 | $ 15.8 | $ 18.3 | |||
Anticipated future cash payments | 10.3 | 10.3 | $ 12.5 | $ 14.2 | ||
Other operating expense | $ 0.8 | 15.8 | $ 16 | $ 43.6 | ||
Asset impairment | $ 9.4 | |||||
Terminated Merger | Woodward, Inc | ||||||
Other Operating Expense [Line Items] | ||||||
Other operating expense | $ (43.6) |
Other Operating Expense - Sched
Other Operating Expense - Schedule of Other Operating Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
Other Operating Expense [Line Items] | |||
Beginning Balance | $ 12.5 | $ 14.2 | |
Restructuring Charge | 0.8 | $ 15.8 | 18.3 |
FX Impact | (0.3) | (0.6) | |
Cash Paid | (2.7) | (18.3) | |
Non-Cash | 0 | (3.3) | |
Ending Balance | 10.3 | 10.3 | |
Employee termination | |||
Other Operating Expense [Line Items] | |||
Beginning Balance | 12.5 | 14.2 | |
Restructuring Charge | 0.7 | 11.4 | |
FX Impact | (0.3) | (0.6) | |
Cash Paid | (2.6) | (14.7) | |
Ending Balance | 10.3 | 10.3 | |
Impairment and other | |||
Other Operating Expense [Line Items] | |||
Restructuring Charge | 0.1 | 6.9 | |
FX Impact | 0 | 0 | |
Cash Paid | (0.1) | (3.6) | |
Non-Cash | $ 0 | $ (3.3) |