QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 06-0247840 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
123 Main Street | ||||
Bristol | ||||
Connecticut | 06010 | |||
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
Common Stock, par value $0.01 per share | B | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
Emerging growth company | ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). | Yes | ☐ | No | ☒ |
Page | ||
Part I. | FINANCIAL INFORMATION | |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
Three months ended September 30, | Nine months ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2020 | 2019 | |||||||||||||||||
Net sales | $ | 357,156 | $ | 311,561 | $ | 1,063,451 | $ | 906,586 | $ | 330,671 | $ | 376,692 | ||||||||||
Cost of sales | 236,016 | 198,600 | 692,355 | 582,028 | 208,248 | 244,643 | ||||||||||||||||
Selling and administrative expenses | 73,354 | 61,144 | 210,423 | 183,754 | 73,110 | 81,400 | ||||||||||||||||
309,370 | 259,744 | 902,778 | 765,782 | 281,358 | 326,043 | |||||||||||||||||
Operating income | 47,786 | 51,817 | 160,673 | 140,804 | 49,313 | 50,649 | ||||||||||||||||
Interest expense | 3,748 | 3,020 | 10,638 | 8,826 | 4,324 | 5,113 | ||||||||||||||||
Other expense (income), net | 357 | 621 | 773 | 24 | 1,594 | 1,806 | ||||||||||||||||
Income before income taxes | 43,681 | 48,176 | 149,262 | 131,954 | 43,395 | 43,730 | ||||||||||||||||
Income taxes | 8,348 | 11,348 | 30,599 | 33,066 | 13,662 | 9,738 | ||||||||||||||||
Net income | $ | 35,333 | $ | 36,828 | $ | 118,663 | $ | 98,888 | $ | 29,733 | $ | 33,992 | ||||||||||
Per common share: | ||||||||||||||||||||||
Basic | $ | 0.65 | $ | 0.68 | $ | 2.19 | $ | 1.82 | $ | 0.58 | $ | 0.66 | ||||||||||
Diluted | 0.65 | 0.67 | 2.17 | 1.81 | 0.58 | 0.65 | ||||||||||||||||
Dividends | 0.14 | 0.13 | 0.41 | 0.38 | ||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||
Basic | 54,066,509 | 54,206,064 | 54,140,551 | 54,206,798 | 51,061,132 | 51,660,804 | ||||||||||||||||
Diluted | 54,570,677 | 54,572,315 | 54,649,723 | 54,643,739 | 51,501,857 | 52,189,465 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 35,333 | $ | 36,828 | $ | 118,663 | $ | 98,888 | |||||||
Other comprehensive income, net of tax | |||||||||||||||
Unrealized gains (losses) on hedging activities, net of tax (1) | 335 | (150 | ) | (124 | ) | (580 | ) | ||||||||
Foreign currency translation adjustments, net of tax (2) | 20,004 | 990 | 80,174 | 2,100 | |||||||||||
Defined benefit pension and other postretirement benefits, net of tax (3) | 1,640 | 2,042 | 3,576 | 5,740 | |||||||||||
Total other comprehensive income, net of tax | 21,979 | 2,882 | 83,626 | 7,260 | |||||||||||
Total comprehensive income | $ | 57,312 | $ | 39,710 | $ | 202,289 | $ | 106,148 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 29,733 | $ | 33,992 | ||||
Other comprehensive (loss) income, net of tax | ||||||||
Unrealized loss on hedging activities, net of tax (1) | (2,337 | ) | (568 | ) | ||||
Foreign currency translation adjustments, net of tax (2) | (36,333 | ) | (9,225 | ) | ||||
Defined benefit pension and other postretirement benefits, net of tax (3) | 4,481 | 1,615 | ||||||
Total other comprehensive loss, net of tax | (34,189 | ) | (8,178 | ) | ||||
Total comprehensive (loss) income | $ | (4,456 | ) | $ | 25,814 |
September 30, 2017 | December 31, 2016 | March 31, 2020 | December 31, 2019 | |||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 134,471 | $ | 66,447 | $ | 112,827 | $ | 93,805 | ||||||
Accounts receivable, less allowances (2017 - $4,495; 2016 - $3,992) | 325,189 | 287,123 | ||||||||||||
Accounts receivable, less allowances (2020 - $5,899; 2019 - $5,197) | 335,409 | 348,974 | ||||||||||||
Inventories | 252,502 | 227,759 | 240,951 | 232,706 | ||||||||||
Prepaid expenses and other current assets | 31,591 | 27,163 | 67,404 | 67,532 | ||||||||||
Assets held for sale | — | 21,373 | ||||||||||||
Total current assets | 743,753 | 608,492 | 756,591 | 764,390 | ||||||||||
Deferred income taxes | 31,942 | 25,433 | 18,474 | 21,235 | ||||||||||
Property, plant and equipment | 825,705 | 762,187 | 834,313 | 840,640 | ||||||||||
Less accumulated depreciation | (471,760 | ) | (427,698 | ) | (485,390 | ) | (484,037 | ) | ||||||
353,945 | 334,489 | 348,923 | 356,603 | |||||||||||
Goodwill | 685,990 | 633,436 | 920,202 | 933,022 | ||||||||||
Other intangible assets, net | 514,331 | 522,258 | 563,692 | 581,116 | ||||||||||
Other assets | 16,570 | 13,431 | 59,723 | 53,924 | ||||||||||
Assets held for sale | — | 28,045 | ||||||||||||
Total assets | $ | 2,346,531 | $ | 2,137,539 | $ | 2,667,605 | $ | 2,738,335 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Notes and overdrafts payable | $ | 16,875 | $ | 30,825 | $ | 28,314 | $ | 7,724 | ||||||
Accounts payable | 127,750 | 112,024 | 116,065 | 118,509 | ||||||||||
Accrued liabilities | 191,889 | 156,967 | 205,264 | 209,992 | ||||||||||
Long-term debt - current | 1,689 | 2,067 | 1,926 | 2,034 | ||||||||||
Liabilities held for sale | — | 4,616 | ||||||||||||
Total current liabilities | 338,203 | 301,883 | 351,569 | 342,875 | ||||||||||
Long-term debt | 497,429 | 468,062 | 783,424 | 825,017 | ||||||||||
Accrued retirement benefits | 91,803 | 109,350 | 90,689 | 93,358 | ||||||||||
Deferred income taxes | 64,700 | 66,446 | 85,313 | 88,408 | ||||||||||
Long-term tax liability | 66,012 | 66,012 | ||||||||||||
Other liabilities | 24,795 | 23,440 | 45,638 | 45,148 | ||||||||||
Liabilities held for sale | — | 6,989 | ||||||||||||
Commitments and contingencies (Note 13) | ||||||||||||||
Commitments and contingencies (Note 16) | ||||||||||||||
Stockholders' equity | ||||||||||||||
Common stock - par value $0.01 per share Authorized: 150,000,000 shares Issued: at par value (2017 - 62,987,803 shares; 2016 - 62,692,403 shares) | 630 | 627 | ||||||||||||
Common stock - par value $0.01 per share Authorized: 150,000,000 shares Issued: at par value (2020 - 63,889,861 shares; 2019 - 63,872,756 shares) | 639 | 639 | ||||||||||||
Additional paid-in capital | 452,677 | 443,235 | 492,025 | 489,282 | ||||||||||
Treasury stock, at cost (2017 - 9,377,948 shares; 2016 - 8,889,947 shares) | (279,978 | ) | (251,827 | ) | ||||||||||
Treasury stock, at cost (2020 - 13,448,609 shares; 2019 - 13,051,256 shares) | (513,708 | ) | (498,074 | ) | ||||||||||
Retained earnings | 1,273,474 | 1,177,151 | 1,510,688 | 1,489,176 | ||||||||||
Accumulated other non-owner changes to equity | (117,202 | ) | (200,828 | ) | (244,684 | ) | (210,495 | ) | ||||||
Total stockholders' equity | 1,329,601 | 1,168,358 | 1,244,960 | 1,270,528 | ||||||||||
Total liabilities and stockholders' equity | $ | 2,346,531 | $ | 2,137,539 | $ | 2,667,605 | $ | 2,738,335 |
Nine months ended September 30, | Three Months Ended March 31, | |||||||||||||
2017 | 2016 | 2020 | 2019 | |||||||||||
Operating activities: | ||||||||||||||
Net income | $ | 118,663 | $ | 98,888 | $ | 29,733 | $ | 33,992 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 68,535 | 58,949 | 23,617 | 25,100 | ||||||||||
Gain on disposition of property, plant and equipment | (96 | ) | (475 | ) | ||||||||||
(Gain) loss on disposition of property, plant and equipment | (123 | ) | 91 | |||||||||||
Stock compensation expense | 8,472 | 8,620 | 2,552 | 3,021 | ||||||||||
Changes in assets and liabilities, net of the effects of acquisitions: | ||||||||||||||
Seeger divestiture charges | 6,620 | — | ||||||||||||
Changes in assets and liabilities, net of the effects of divestitures: | ||||||||||||||
Accounts receivable | (26,773 | ) | (18,461 | ) | 9,592 | 4,345 | ||||||||
Inventories | (11,454 | ) | 4,626 | (12,788 | ) | 7,300 | ||||||||
Prepaid expenses and other current assets | (2,398 | ) | (296 | ) | (3,227 | ) | (2,670 | ) | ||||||
Accounts payable | 14,134 | 9,799 | 1,328 | (9,179 | ) | |||||||||
Accrued liabilities | 28,889 | 13,028 | (7,885 | ) | (4,708 | ) | ||||||||
Deferred income taxes | (18,063 | ) | 998 | 462 | (872 | ) | ||||||||
Long-term retirement benefits | (11,469 | ) | (16,026 | ) | (3,518 | ) | (3,428 | ) | ||||||
Other | (677 | ) | 461 | 821 | 68 | |||||||||
Net cash provided by operating activities | 167,763 | 160,111 | 47,184 | 53,060 | ||||||||||
Investing activities: | ||||||||||||||
Proceeds from disposition of property, plant and equipment | 401 | 715 | 185 | 322 | ||||||||||
Proceeds from the sale of businesses, net of cash sold | 36,879 | — | ||||||||||||
Investment in restricted cash | (6,621 | ) | — | |||||||||||
Capital expenditures | (41,957 | ) | (32,920 | ) | (11,912 | ) | (13,738 | ) | ||||||
Business acquisitions, net of cash acquired | (8,922 | ) | (120,675 | ) | ||||||||||
Component Repair Program payments | — | (900 | ) | |||||||||||
Other | (3,000 | ) | — | |||||||||||
Net cash used by investing activities | (53,478 | ) | (153,780 | ) | ||||||||||
Net cash provided (used) in investing activities | 18,531 | (13,416 | ) | |||||||||||
Financing activities: | ||||||||||||||
Net change in other borrowings | (14,103 | ) | (9,321 | ) | 20,775 | 20,903 | ||||||||
Payments on long-term debt | (60,897 | ) | (263,578 | ) | (83,521 | ) | (152,195 | ) | ||||||
Proceeds from the issuance of long-term debt | 89,118 | 288,982 | 50,000 | 102,990 | ||||||||||
Proceeds from the issuance of common stock | 1,731 | 2,463 | 183 | 986 | ||||||||||
Common stock repurchases | (23,300 | ) | (15,660 | ) | (15,550 | ) | — | |||||||
Dividends paid | (22,042 | ) | (20,444 | ) | (8,133 | ) | (8,217 | ) | ||||||
Withholding taxes paid on stock issuances | (4,851 | ) | (4,881 | ) | (84 | ) | (80 | ) | ||||||
Other | (17,773 | ) | 3,406 | (7,252 | ) | (1,340 | ) | |||||||
Net cash used by financing activities | (52,117 | ) | (19,033 | ) | ||||||||||
Net cash used in financing activities | (43,582 | ) | (36,953 | ) | ||||||||||
Effect of exchange rate changes on cash flows | 5,856 | 717 | (3,111 | ) | 97 | |||||||||
Increase (decrease) in cash and cash equivalents | 68,024 | (11,985 | ) | |||||||||||
Increase in cash and cash equivalents | 19,022 | 2,788 | ||||||||||||
Cash and cash equivalents at beginning of period | 66,447 | 83,926 | 93,805 | 100,719 | ||||||||||
Cash and cash equivalents at end of period | $ | 134,471 | $ | 71,941 | $ | 112,827 | $ | 103,507 |
Assets | |||
Accounts receivable, less allowance of $152 | $ | 6,844 | |
Inventories | 13,727 | ||
Prepaid expenses and other current assets | 802 | ||
Current assets held for sale | 21,373 | ||
Property, plant and equipment, net | 17,701 | ||
Other intangible assets, net | 590 | ||
Goodwill | 9,400 | ||
Other assets | 354 | ||
Non-current assets held for sale | 28,045 | ||
Liabilities | |||
Accounts payable | $ | 2,961 | |
Accrued liabilities | 1,655 | ||
Current liabilities held for sale | 4,616 | ||
Accrued retirement benefits | 5,788 | ||
Other liabilities | 1,201 | ||
Non-current liabilities held for sale | 6,989 |
Three Months Ended March 31, 2020 | |||||||||||
Industrial | Aerospace | Total Company | |||||||||
Product and Services | |||||||||||
Engineered Components Products | $ | 47,707 | $ | — | $ | 47,707 | |||||
Molding Solutions Products | 97,406 | — | 97,406 | ||||||||
Force & Motion Control Products | 39,791 | — | 39,791 | ||||||||
Automation Products | 14,196 | — | 14,196 | ||||||||
Aerospace Original Equipment Manufacturer Products | — | 81,706 | 81,706 | ||||||||
Aerospace Aftermarket Product and Services | — | 49,865 | 49,865 | ||||||||
$ | 199,100 | $ | 131,571 | $ | 330,671 | ||||||
Geographic Regions (A) | |||||||||||
Americas | $ | 80,644 | $ | 92,578 | $ | 173,222 | |||||
Europe | 81,864 | 25,163 | 107,027 | ||||||||
Asia | 35,493 | 11,696 | 47,189 | ||||||||
Rest of World | 1,099 | 2,134 | 3,233 | ||||||||
$ | 199,100 | $ | 131,571 | $ | 330,671 |
Three Months Ended March 31, 2019 | |||||||||||
Industrial | Aerospace | Total Company | |||||||||
Product and Services | |||||||||||
Engineered Components Products | $ | 69,684 | $ | — | $ | 69,684 | |||||
Molding Solutions Products | 106,793 | — | 106,793 | ||||||||
Force & Motion Control Products | 51,617 | — | 51,617 | ||||||||
Automation Products | 14,408 | — | 14,408 | ||||||||
Aerospace Original Equipment Manufacturer Products | — | 87,939 | 87,939 | ||||||||
Aerospace Aftermarket Product and Services | — | 46,251 | 46,251 | ||||||||
$ | 242,502 | $ | 134,190 | $ | 376,692 | ||||||
Geographic Regions (A) | |||||||||||
Americas | $ | 98,288 | $ | 96,144 | $ | 194,432 | |||||
Europe | 94,430 | 24,324 | 118,754 | ||||||||
Asia | 48,942 | 12,404 | 61,346 | ||||||||
Rest of World | 842 | 1,318 | 2,160 | ||||||||
$ | 242,502 | $ | 134,190 | $ | 376,692 |
March 31, 2020 | December 31, 2019 | $ Change | % Change | |||||||||||
Unbilled receivables (contract assets) | $ | 26,301 | $ | 22,444 | $ | 3,857 | 17 | % | ||||||
Contract liabilities | (51,086 | ) | (55,076 | ) | 3,990 | (7 | )% | |||||||
Net contract liabilities | $ | (24,785 | ) | $ | (32,632 | ) | $ | 7,847 | (24 | )% |
Common Stock (Number of Shares) | Common Stock (Amount) | Additional Paid-In Capital | Treasury Stock (Number of Shares) | Treasury Stock (Amount) | Retained Earnings | Accumulated Other Non-Owner Changes to Equity | Total Stockholders’ Equity | |||||||||||||||||||||||
December 31, 2019 | 63,873 | $ | 639 | $ | 489,282 | 13,051 | $ | (498,074 | ) | $ | 1,489,176 | $ | (210,495 | ) | $ | 1,270,528 | ||||||||||||||
Comprehensive income | — | — | — | — | — | 29,733 | (34,189 | ) | (4,456 | ) | ||||||||||||||||||||
Dividends declared ($0.16 per share) | — | — | — | — | — | (8,133 | ) | — | (8,133 | ) | ||||||||||||||||||||
Common stock repurchases | — | — | — | 396 | (15,550 | ) | — | — | (15,550 | ) | ||||||||||||||||||||
Employee stock plans | 17 | — | 2,743 | 2 | (84 | ) | (88 | ) | — | 2,571 | ||||||||||||||||||||
March 31, 2020 | 63,890 | $ | 639 | $ | 492,025 | 13,449 | $ | (513,708 | ) | $ | 1,510,688 | $ | (244,684 | ) | $ | 1,244,960 |
Common Stock (Number of Shares) | Common Stock (Amount) | Additional Paid-In Capital | Treasury Stock (Number of Shares) | Treasury Stock (Amount) | Retained Earnings | Accumulated Other Non-Owner Changes to Equity | Total Stockholders’ Equity | |||||||||||||||||||||||
December 31, 2018 | 63,367 | $ | 634 | $ | 470,818 | 12,034 | $ | (441,668 | ) | $ | 1,363,772 | $ | (190,500 | ) | $ | 1,203,056 | ||||||||||||||
Comprehensive income | — | — | — | — | — | 33,992 | (8,178 | ) | 25,814 | |||||||||||||||||||||
Dividends declared ($0.16 per share) | — | — | — | — | — | (8,217 | ) | — | (8,217 | ) | ||||||||||||||||||||
Employee stock plans | 51 | — | 4,039 | 1 | (80 | ) | (109 | ) | — | 3,850 | ||||||||||||||||||||
March 31, 2019 | 63,418 | $ | 634 | $ | 474,857 | 12,035 | $ | (441,748 | ) | $ | 1,389,438 | $ | (198,678 | ) | $ | 1,224,503 |
March 31, 2020 | December 31, 2019 | ||||||
Finished goods | $ | 71,244 | $ | 69,594 | |||
Work-in-process | 92,624 | 88,196 | |||||
Raw material and supplies | 77,083 | 74,916 | |||||
$ | 240,951 | $ | 232,706 |
September 30, 2017 | December 31, 2016 | ||||||
Finished goods | $ | 78,116 | $ | 71,100 | |||
Work-in-process | 110,204 | 98,246 | |||||
Raw material and supplies | 64,182 | 58,413 | |||||
$ | 252,502 | $ | 227,759 |
Industrial | Aerospace | Total Company | |||||||||
January 1, 2020 | $ | 902,236 | $ | 30,786 | $ | 933,022 | |||||
Foreign currency translation | (12,820 | ) | — | (12,820 | ) | ||||||
March 31, 2020 | $ | 889,416 | $ | 30,786 | $ | 920,202 |
Industrial | Aerospace | Total Company | |||||||||
January 1, 2017 | $ | 602,650 | $ | 30,786 | $ | 633,436 | |||||
Acquisition related | 3,330 | — | 3,330 | ||||||||
Foreign currency translation | 49,224 | — | 49,224 | ||||||||
September 30, 2017 | $ | 655,204 | $ | 30,786 | $ | 685,990 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||
Range of Life -Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | |||||||||||||||||
Revenue Sharing Programs (RSPs) | Up to 30 | $ | 299,500 | $ | (138,889 | ) | $ | 299,500 | $ | (135,466 | ) | ||||||
Component Repair Programs (CRPs) | Up to 30 | 111,839 | (28,585 | ) | 111,839 | (27,270 | ) | ||||||||||
Customer relationships | 10-16 | 338,366 | (103,779 | ) | 338,366 | (98,953 | ) | ||||||||||
Patents and technology | 4-11 | 123,433 | (70,419 | ) | 123,433 | (68,188 | ) | ||||||||||
Trademarks/trade names | 10-30 | 10,949 | (10,216 | ) | 10,949 | (10,145 | ) | ||||||||||
Other | Up to 15 | 10,746 | (4,191 | ) | 10,746 | (4,014 | ) | ||||||||||
894,833 | (356,079 | ) | 894,833 | (344,036 | ) | ||||||||||||
Unamortized intangible assets: | |||||||||||||||||
Trade names | 55,670 | — | 55,670 | — | |||||||||||||
Foreign currency translation | (30,732 | ) | — | (25,351 | ) | — | |||||||||||
Other intangible assets | $ | 919,771 | $ | (356,079 | ) | $ | 925,152 | $ | (344,036 | ) |
September 30, 2017 | December 31, 2016 | ||||||||||||||||
Range of Life -Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | |||||||||||||||||
Revenue sharing programs (RSPs) | Up to 30 | $ | 293,700 | $ | (105,054 | ) | $ | 293,700 | $ | (95,701 | ) | ||||||
Component repair programs (CRPs) | Up to 30 | 111,839 | (15,112 | ) | 111,839 | (10,497 | ) | ||||||||||
Customer lists/relationships | 10-16 | 215,966 | (62,250 | ) | 215,266 | (53,198 | ) | ||||||||||
Patents and technology | 4-14 | 87,052 | (45,428 | ) | 84,052 | (37,897 | ) | ||||||||||
Trademarks/trade names | 10-30 | 11,950 | (10,258 | ) | 11,950 | (9,967 | ) | ||||||||||
Other | Up to 15 | 20,551 | (16,960 | ) | 20,551 | (16,338 | ) | ||||||||||
741,058 | (255,062 | ) | 737,358 | (223,598 | ) | ||||||||||||
Unamortized intangible assets: | |||||||||||||||||
Trade names | 42,770 | — | 42,770 | — | |||||||||||||
Foreign currency translation | (14,435 | ) | — | (34,272 | ) | — | |||||||||||
Other intangible assets | $ | 769,393 | $ | (255,062 | ) | $ | 745,856 | $ | (223,598 | ) |
March 31, 2020 | December 31, 2019 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Revolving credit agreement | $ | 679,079 | $ | 673,294 | $ | 720,379 | $ | 737,816 | |||||||
3.97% Senior Notes | 100,000 | 110,993 | 100,000 | 104,151 | |||||||||||
Borrowings under lines of credit and overdrafts | 28,314 | 28,314 | 7,724 | 7,724 | |||||||||||
Finance leases | 5,915 | 6,028 | 6,266 | 6,515 | |||||||||||
Other foreign bank borrowings | 356 | 358 | 406 | 410 | |||||||||||
813,664 | 818,987 | 834,775 | 856,616 | ||||||||||||
Less current maturities | (30,240 | ) | (9,758 | ) | |||||||||||
Long-term debt | $ | 783,424 | $ | 825,017 |
September 30, 2017 | December 31, 2016 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Revolving credit agreement | $ | 393,000 | $ | 397,805 | $ | 363,300 | $ | 364,775 | ||||||||
3.97% Senior Notes | 100,000 | 103,319 | 100,000 | 101,598 | ||||||||||||
Borrowings under lines of credit and overdrafts | 16,875 | 16,875 | 30,825 | 30,825 | ||||||||||||
Capital leases | 4,882 | 5,314 | 5,413 | 5,902 | ||||||||||||
Other foreign bank borrowings | 1,236 | 1,249 | 1,416 | 1,428 | ||||||||||||
515,993 | 524,562 | 500,954 | 504,528 | |||||||||||||
Less current maturities | (18,564 | ) | (32,892 | ) | ||||||||||||
Long-term debt | $ | 497,429 | $ | 468,062 |
Derivative Assets | Derivative Liabilities | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||
Balance Sheet Location | March 31, 2020 | December 31, 2019 | Balance Sheet Location | March 31, 2020 | December 31, 2019 | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | Other assets | $ | — | $ | — | Other liabilities | $ | (3,042 | ) | $ | (820 | ) | |||
Foreign exchange contracts | Prepaid expenses and other current assets | — | 700 | Accrued liabilities | (635 | ) | — | ||||||||
Total derivatives designated as hedging instruments | — | 700 | (3,677 | ) | (820 | ) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | 6 | 1,375 | Accrued liabilities | (846 | ) | (1 | ) | |||||||
Total derivatives not designated as hedging instruments | 6 | 1,375 | (846 | ) | (1 | ) | |||||||||
Total derivatives | $ | 6 | $ | 2,075 | $ | (4,523 | ) | $ | (821 | ) |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | $ | — | $ | (345 | ) | $ | — | $ | (78 | ) | |||||
Foreign exchange contracts | — | (121 | ) | — | (177 | ) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | 65 | (377 | ) | 397 | (1,499 | ) | |||||||||
Total derivatives | $ | 65 | $ | (843 | ) | $ | 397 | $ | (1,754 | ) |
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
Derivatives in Hedging Relationships | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||
Interest rate contracts | $ | (1,694 | ) | $ | (487 | ) | Interest expense | $ | (61 | ) | $ | 142 | ||||
Foreign exchange contracts | (643 | ) | (81 | ) | Net sales | (523 | ) | (337 | ) | |||||||
Total | $ | (2,337 | ) | $ | (568 | ) | $ | (584 | ) | $ | (195 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts | $ | 97 | $ | 137 | $ | (167 | ) | $ | 74 | ||||||
Foreign exchange contracts | 238 | (287 | ) | 43 | (654 | ) | |||||||||
$ | 335 | $ | (150 | ) | $ | (124 | ) | $ | (580 | ) |
Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | ||||||||||||||
Net sales | Interest expense | Net sales | Interest expense | ||||||||||||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of hedges are recorded | $ | 330,671 | $ | 4,324 | $ | 376,692 | $ | 5,113 | |||||||
The effects of hedging: | |||||||||||||||
Gain (Loss) on cash flow hedging relationships | |||||||||||||||
Interest rate contracts | |||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income | (61 | ) | 142 | ||||||||||||
Foreign exchange contracts | |||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income | (523 | ) | (337 | ) |
Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative(A) | |||||||
Three Months Ended March 31, | ||||||||
Derivatives Not Designated as Hedging Instruments | 2020 | 2019 | ||||||
Foreign exchange contracts | Other expense (income), net | $ | (12,195 | ) | $ | (3,819 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Foreign exchange contracts | $ | (2,545 | ) | $ | (3,755 | ) | $ | (12,949 | ) | $ | (7,506 | ) |
Level 1 | Unadjusted quoted prices in active markets for identical assets or |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or |
Level 3 | Unobservable inputs for the asset or |
Fair Value Measurements Using | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
September 30, 2017 | ||||||||||||||||
Asset derivatives | $ | 65 | $ | — | $ | 65 | $ | — | ||||||||
Liability derivatives | (843 | ) | — | (843 | ) | — | ||||||||||
Bank acceptances | 13,009 | — | 13,009 | — | ||||||||||||
Rabbi trust assets | 2,427 | 2,427 | — | — | ||||||||||||
$ | 14,658 | $ | 2,427 | $ | 12,231 | $ | — | |||||||||
December 31, 2016 | ||||||||||||||||
Asset derivatives | $ | 397 | $ | — | $ | 397 | $ | — | ||||||||
Liability derivatives | (1,754 | ) | — | (1,754 | ) | — | ||||||||||
Bank acceptances | 9,690 | — | 9,690 | — | ||||||||||||
Rabbi trust assets | 2,216 | 2,216 | — | — | ||||||||||||
$ | 10,549 | $ | 2,216 | $ | 8,333 | $ | — |
Fair Value Measurements Using | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
March 31, 2020 | ||||||||||||||||
Asset derivatives | $ | 6 | $ | — | $ | 6 | $ | — | ||||||||
Liability derivatives | (4,523 | ) | — | (4,523 | ) | — | ||||||||||
Bank acceptances | 12,911 | — | 12,911 | — | ||||||||||||
Rabbi trust assets | 2,507 | 2,507 | — | — | ||||||||||||
Total | $ | 10,901 | $ | 2,507 | $ | 8,394 | $ | — | ||||||||
December 31, 2019 | ||||||||||||||||
Asset derivatives | $ | 2,075 | $ | — | $ | 2,075 | $ | — | ||||||||
Liability derivatives | (821 | ) | — | (821 | ) | — | ||||||||||
Bank acceptances | 14,460 | — | 14,460 | — | ||||||||||||
Rabbi trust assets | 2,947 | 2,947 | — | — | ||||||||||||
Total | $ | 18,661 | $ | 2,947 | $ | 15,714 | $ | — |
Three months ended September 30, | Nine months ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||
Pensions | 2017 | 2016 | 2017 | 2016 | 2020 | 2019 | ||||||||||||||||
Service cost | $ | 1,572 | $ | 1,354 | $ | 4,674 | $ | 4,056 | $ | 1,649 | $ | 1,433 | ||||||||||
Interest cost | 4,764 | 4,869 | 14,051 | 14,650 | 3,817 | 4,536 | ||||||||||||||||
Expected return on plan assets | (7,206 | ) | (7,564 | ) | (20,882 | ) | (22,774 | ) | (7,393 | ) | (7,078 | ) | ||||||||||
Amortization of prior service cost | 110 | 52 | 330 | 157 | 80 | 103 | ||||||||||||||||
Amortization of actuarial losses | 2,703 | 2,697 | 7,846 | 8,109 | 3,339 | 2,158 | ||||||||||||||||
Curtailment gain | — | — | (7,217 | ) | — | |||||||||||||||||
Settlement loss (gain) | 298 | — | (193 | ) | — | |||||||||||||||||
Net periodic benefit cost | $ | 2,241 | $ | 1,408 | $ | (1,391 | ) | $ | 4,198 | $ | 1,492 | $ | 1,152 | |||||||||
Three Months Ended March 31, | |||||||
Other Postretirement Benefits | 2020 | 2019 | |||||
Service cost | $ | 22 | $ | 19 | |||
Interest cost | 264 | 340 | |||||
Amortization of prior service cost | 7 | 6 | |||||
Amortization of actuarial losses | 23 | 10 | |||||
Net periodic benefit cost | $ | 316 | $ | 375 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
Other Postretirement Benefits | 2017 | 2016 | 2017 | 2016 | |||||||||||
Service cost | $ | 20 | $ | 31 | $ | 62 | $ | 92 | |||||||
Interest cost | 389 | 440 | 1,170 | 1,324 | |||||||||||
Amortization of prior service credit | (17 | ) | (93 | ) | (51 | ) | (280 | ) | |||||||
Amortization of actuarial losses | 68 | 134 | 207 | 401 | |||||||||||
Net periodic benefit cost | $ | 460 | $ | 512 | $ | 1,388 | $ | 1,537 |
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2017 | $ | (227 | ) | $ | (114,570 | ) | $ | (86,031 | ) | $ | (200,828 | ) | |||
Other comprehensive (loss) income before reclassifications to consolidated statements of income | (501 | ) | (1,888 | ) | 80,174 | 77,785 | |||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 377 | 5,464 | — | 5,841 | |||||||||||
Net current-period other comprehensive (loss) income | (124 | ) | 3,576 | 80,174 | 83,626 | ||||||||||
September 30, 2017 | $ | (351 | ) | $ | (110,994 | ) | $ | (5,857 | ) | $ | (117,202 | ) |
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2016 | $ | 115 | $ | (105,703 | ) | $ | (37,664 | ) | $ | (143,252 | ) | ||||
Other comprehensive (loss) income before reclassifications to consolidated statements of income | (823 | ) | 283 | 2,100 | 1,560 | ||||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 243 | 5,457 | — | 5,700 | |||||||||||
Net current-period other comprehensive (loss) income | (580 | ) | 5,740 | 2,100 | 7,260 | ||||||||||
September 30, 2016 | $ | (465 | ) | $ | (99,963 | ) | $ | (35,564 | ) | $ | (135,992 | ) |
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2020 | $ | (115 | ) | $ | (144,047 | ) | $ | (66,333 | ) | $ | (210,495 | ) | |||
Other comprehensive income (loss) before reclassifications | (2,879 | ) | 1,842 | (36,333 | ) | (37,370 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 542 | 2,639 | — | 3,181 | |||||||||||
Net current-period other comprehensive income (loss) | (2,337 | ) | 4,481 | (36,333 | ) | (34,189 | ) | ||||||||
March 31, 2020 | $ | (2,452 | ) | $ | (139,566 | ) | $ | (102,666 | ) | $ | (244,684 | ) |
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2019 | $ | 834 | $ | (138,690 | ) | $ | (52,644 | ) | $ | (190,500 | ) | ||||
Other comprehensive income (loss) before reclassifications | (723 | ) | (122 | ) | (9,225 | ) | (10,070 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 155 | 1,737 | — | 1,892 | |||||||||||
Net current-period other comprehensive income (loss) | (568 | ) | 1,615 | (9,225 | ) | (8,178 | ) | ||||||||
March 31, 2019 | $ | 266 | $ | (137,075 | ) | $ | (61,869 | ) | $ | (198,678 | ) |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Income | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Income | ||||||||||||||||
Three months ended September 30, 2017 | Three months ended September 30, 2016 | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||||||||||||||
Gains and losses on cash flow hedges | ||||||||||||||||||||
Interest rate contracts | $ | (174 | ) | $ | (137 | ) | Interest expense | $ | (61 | ) | $ | 142 | Interest expense | |||||||
Foreign exchange contracts | (40 | ) | (20 | ) | Net sales | (523 | ) | (337 | ) | Net sales | ||||||||||
(214 | ) | (157 | ) | Total before tax | (584 | ) | (195 | ) | Total before tax | |||||||||||
74 | 55 | Tax benefit | 42 | 40 | Tax benefit | |||||||||||||||
(140 | ) | (102 | ) | Net of tax | (542 | ) | (155 | ) | Net of tax | |||||||||||
Pension and other postretirement benefit items | ||||||||||||||||||||
Amortization of prior-service (costs) credits, net | $ | (93 | ) | $ | 41 | (A) | ||||||||||||||
Amortization of prior-service costs | $ | (87 | ) | $ | (109 | ) | (A) | |||||||||||||
Amortization of actuarial losses | (2,771 | ) | (2,831 | ) | (A) | (3,362 | ) | (2,168 | ) | (A) | ||||||||||
Settlement loss | (298 | ) | — | (A) | ||||||||||||||||
(3,162 | ) | (2,790 | ) | Total before tax | (3,449 | ) | (2,277 | ) | Total before tax | |||||||||||
946 | 977 | Tax benefit | 810 | 540 | Tax benefit | |||||||||||||||
(2,216 | ) | (1,813 | ) | Net of tax | (2,639 | ) | (1,737 | ) | Net of tax | |||||||||||
Total reclassifications in the period | $ | (2,356 | ) | $ | (1,915 | ) | $ | (3,181 | ) | $ | (1,892 | ) |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Income | ||||||||
Nine months ended September 30, 2017 | Nine months ended September 30, 2016 | |||||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate contracts | $ | (380 | ) | $ | (437 | ) | Interest expense | |||
Foreign exchange contracts | (178 | ) | 40 | Net sales | ||||||
(558 | ) | (397 | ) | Total before tax | ||||||
181 | 154 | Tax benefit | ||||||||
(377 | ) | (243 | ) | Net of tax | ||||||
Pension and other postretirement benefit items | ||||||||||
Amortization of prior-service (costs) credits, net | $ | (279 | ) | $ | 123 | (A) | ||||
Amortization of actuarial losses | (8,053 | ) | (8,510 | ) | (A) | |||||
Curtailment gain | 187 | — | (A) | |||||||
Settlement loss | (68 | ) | — | (A) | ||||||
(8,213 | ) | (8,387 | ) | Total before tax | ||||||
2,749 | 2,930 | Tax benefit | ||||||||
(5,464 | ) | (5,457 | ) | Net of tax | ||||||
Total reclassifications in the period | $ | (5,841 | ) | $ | (5,700 | ) |
Three months ended September 30, | Nine months ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2020 | 2019 | |||||||||||||||||
Net sales | ||||||||||||||||||||||
Industrial | $ | 240,390 | $ | 208,748 | $ | 719,556 | $ | 608,534 | $ | 199,100 | $ | 242,502 | ||||||||||
Aerospace | 116,767 | 102,816 | 343,899 | 298,055 | 131,571 | 134,190 | ||||||||||||||||
Intersegment sales | (1 | ) | (3 | ) | (4 | ) | (3 | ) | — | — | ||||||||||||
Total net sales | $ | 357,156 | $ | 311,561 | $ | 1,063,451 | $ | 906,586 | $ | 330,671 | $ | 376,692 | ||||||||||
Operating profit | ||||||||||||||||||||||
Industrial | $ | 29,308 | $ | 34,958 | $ | 100,154 | $ | 99,445 | $ | 17,924 | $ | 21,502 | ||||||||||
Aerospace | 18,478 | 16,859 | 60,519 | 41,359 | 31,389 | 29,147 | ||||||||||||||||
Total operating profit | 47,786 | 51,817 | 160,673 | 140,804 | 49,313 | 50,649 | ||||||||||||||||
Interest expense | 3,748 | 3,020 | 10,638 | 8,826 | 4,324 | 5,113 | ||||||||||||||||
Other expense (income), net | 357 | 621 | 773 | 24 | 1,594 | 1,806 | ||||||||||||||||
Income before income taxes | $ | 43,681 | $ | 48,176 | $ | 149,262 | $ | 131,954 | $ | 43,395 | $ | 43,730 |
September 30, 2017 | December 31, 2016 | March 31, 2020 | December 31, 2019 | |||||||||||
Assets | ||||||||||||||
Industrial | $ | 1,502,193 | $ | 1,356,081 | $ | 1,789,094 | $ | 1,879,258 | ||||||
Aerospace | 648,561 | 647,766 | 706,104 | 704,318 | ||||||||||
Other (A) | 195,777 | 133,692 | 172,407 | 154,759 | ||||||||||
Total assets | $ | 2,346,531 | $ | 2,137,539 | $ | 2,667,605 | $ | 2,738,335 |
January 1, 2017 | $ | — | |
Employee termination benefit costs | 3,756 | ||
Payments | (3,008 | ) | |
Foreign currency translation | (45 | ) | |
September 30, 2017 | $ | 703 |
/s/ PricewaterhouseCoopers LLP | |
Hartford, Connecticut | |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||||||
Industrial | $ | 240.4 | $ | 208.7 | $ | 31.6 | 15.2 | % | $ | 719.6 | $ | 608.5 | $ | 111.0 | 18.2 | % | |||||||||||||
Aerospace | 116.8 | 102.8 | 14.0 | 13.6 | % | 343.9 | 298.1 | 45.8 | 15.4 | % | |||||||||||||||||||
Total | $ | 357.2 | $ | 311.6 | $ | 45.6 | 14.6 | % | $ | 1,063.5 | $ | 906.6 | $ | 156.9 | 17.3 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||||||
Cost of sales | $ | 236.0 | $ | 198.6 | $ | 37.4 | 18.8 | % | $ | 692.4 | $ | 582.0 | $ | 110.3 | 19.0 | % | |||||||||||||
% sales | 66.1 | % | 63.7 | % | 65.1 | % | 64.2 | % | |||||||||||||||||||||
Gross profit (1) | $ | 121.1 | $ | 113.0 | $ | 8.2 | 7.2 | % | $ | 371.1 | $ | 324.6 | $ | 46.5 | 14.3 | % | |||||||||||||
% sales | 33.9 | % | 36.3 | % | 34.9 | % | 35.8 | % | |||||||||||||||||||||
Selling and administrative expenses | $ | 73.4 | $ | 61.1 | $ | 12.2 | 20.0 | % | $ | 210.4 | $ | 183.8 | $ | 26.7 | 14.5 | % | |||||||||||||
% sales | 20.5 | % | 19.6 | % | 19.8 | % | 20.3 | % | |||||||||||||||||||||
Operating income | $ | 47.8 | $ | 51.8 | $ | (4.0 | ) | (7.8 | )% | $ | 160.7 | $ | 140.8 | $ | 19.9 | 14.1 | % | ||||||||||||
% sales | 13.4 | % | 16.6 | % | 15.1 | % | 15.5 | % | |||||||||||||||||||||
(1) Sales less cost of sales. |
Three Months Ended March 31, | ||||||||||||||
(in millions) | 2020 | 2019 | Change | |||||||||||
Industrial | $ | 199.1 | $ | 242.5 | $ | (43.4 | ) | (17.9 | )% | |||||
Aerospace | 131.6 | 134.2 | (2.6 | ) | (2.0 | )% | ||||||||
Total | $ | 330.7 | $ | 376.7 | $ | (46.0 | ) | (12.2 | )% |
Three Months Ended March 31, | ||||||||||||||
(in millions) | 2020 | 2019 | Change | |||||||||||
Cost of sales | $ | 208.2 | $ | 244.6 | $ | (36.4 | ) | (14.9 | )% | |||||
% sales | 63.0 | % | 64.9 | % | ||||||||||
Gross profit (1) | $ | 122.4 | $ | 132.0 | $ | (9.6 | ) | (7.3 | )% | |||||
% sales | 37.0 | % | 35.1 | % | ||||||||||
Selling and administrative expenses | $ | 73.1 | $ | 81.4 | $ | (8.3 | ) | (10.2 | )% | |||||
% sales | 22.1 | % | 21.6 | % | ||||||||||
Operating income | $ | 49.3 | $ | 50.6 | $ | (1.3 | ) | (2.6 | )% | |||||
% sales | 14.9 | % | 13.4 | % |
Three months ended September 30, | Nine months ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(in millions, except per share) | 2017 | 2016 | Change | 2017 | 2016 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||||
Net income | $ | 35.3 | $ | 36.8 | $ | (1.5 | ) | (4.1 | )% | $ | 118.7 | $ | 98.9 | $ | 19.8 | 20.0 | % | $ | 29.7 | $ | 34.0 | $ | (4.3 | ) | (12.5 | )% | |||||||||||||||||
Net income per common share: | |||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.65 | $ | 0.68 | $ | (0.03 | ) | (4.4 | )% | $ | 2.19 | $ | 1.82 | $ | 0.37 | 20.3 | % | $ | 0.58 | $ | 0.66 | $ | (0.08 | ) | (12.1 | )% | |||||||||||||||||
Diluted | 0.65 | 0.67 | (0.02 | ) | (3.0 | )% | 2.17 | 1.81 | 0.36 | 19.9 | % | 0.58 | 0.65 | (0.07 | ) | (10.8 | )% | ||||||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||
Basic | 54.1 | 54.2 | (0.1 | ) | (0.3 | )% | 54.1 | 54.2 | (0.1 | ) | (0.1 | )% | 51.1 | 51.7 | (0.6 | ) | (1.2 | )% | |||||||||||||||||||||||||
Diluted | 54.6 | 54.6 | — | — | % | 54.6 | 54.6 | — | — | % | 51.5 | 52.2 | (0.7 | ) | (1.3 | )% |
Three months ended September 30, | Nine months ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | Change | 2017 | 2016 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||||
Sales | $ | 240.4 | $ | 208.7 | $ | 31.6 | 15.2 | % | $ | 719.6 | $ | 608.5 | $ | 111.0 | 18.2 | % | $ | 199.1 | $ | 242.5 | $ | (43.4 | ) | (17.9 | )% | ||||||||||||||||||
Operating profit | 29.3 | 35.0 | (5.7 | ) | (16.2 | )% | 100.2 | 99.4 | 0.7 | 0.7 | % | 17.9 | 21.5 | (3.6 | ) | (16.6 | )% | ||||||||||||||||||||||||||
Operating margin | 12.2 | % | 16.7 | % | 13.9 | % | 16.3 | % | 9.0 | % | 8.9 | % |
Three months ended September 30, | Nine months ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | Change | 2017 | 2016 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||||
Sales | $ | 116.8 | $ | 102.8 | $ | 14.0 | 13.6 | % | $ | 343.9 | $ | 298.1 | $ | 45.8 | 15.4 | % | $ | 131.6 | $ | 134.2 | $ | (2.6 | ) | (2.0 | )% | ||||||||||||||||||
Operating profit | 18.5 | 16.9 | 1.6 | 9.6 | % | 60.5 | 41.4 | 19.2 | 46.3 | % | 31.4 | 29.1 | 2.2 | 7.7 | % | ||||||||||||||||||||||||||||
Operating margin | 15.8 | % | 16.4 | % | 17.6 | % | 13.9 | % | 23.9 | % | 21.7 | % |
Nine months ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | Change | 2020 | 2019 | Change | ||||||||||||||||
Operating activities | $ | 167.8 | $ | 160.1 | $ | 7.7 | $ | 47.2 | $ | 53.1 | $ | (5.9 | ) | |||||||||
Investing activities | (53.5 | ) | (153.8 | ) | 100.3 | 18.5 | (13.4 | ) | 31.9 | |||||||||||||
Financing activities | (52.1 | ) | (19.0 | ) | (33.1 | ) | (43.6 | ) | (37.0 | ) | (6.6 | ) | ||||||||||
Exchange rate effect | 5.9 | 0.7 | 5.1 | (3.1 | ) | 0.1 | (3.2 | ) | ||||||||||||||
Increase (decrease) in cash | $ | 68.0 | $ | (12.0 | ) | $ | 80.0 | |||||||||||||||
Increase in cash | $ | 19.0 | $ | 2.8 | $ | 16.2 |
Four fiscal quarters ended September 30, 2017 | Four fiscal quarters ended March 31, 2020 | |||||
Net income | $ | 155.4 | $ | 154.1 | ||
Add back: | ||||||
Interest expense | 13.7 | 19.8 | ||||
Income taxes | 44.6 | 52.4 | ||||
Depreciation and amortization | 89.7 | 97.6 | ||||
Adjustment for non-cash stock based compensation | 10.4 | 12.5 | ||||
Amortization of FOBOHA acquisition inventory step-up | 2.4 | |||||
Amortization of Gimatic acquisition inventory step-up | (1.9 | ) | ||||
Due diligence and transaction expenses | 4.0 | |||||
Non-cash impairment charge (see Note 2) | 5.6 | |||||
Other adjustments | 0.6 | (3.2 | ) | |||
Consolidated EBITDA, as defined | $ | 316.7 | ||||
Consolidated EBITDA, as defined within the Amended Credit Agreement | $ | 340.9 | ||||
Consolidated Senior Debt, as defined, as of September 30, 2017 | $ | 516.0 | ||||
Consolidated Senior Debt, as defined, as of March 31, 2020 | $ | 813.7 | ||||
Ratio of Consolidated Senior Debt to Consolidated EBITDA | 1.63 | 2.39 | ||||
Maximum | 3.25 | 3.25 | ||||
Consolidated Total Debt, as defined, as of September 30, 2017 | $ | 516.0 | ||||
Consolidated Total Debt, as defined, as of March 31, 2020 | $ | 813.7 | ||||
Ratio of Consolidated Total Debt to Consolidated EBITDA | 1.63 | 2.39 | ||||
Maximum | 3.75 | 3.75 | ||||
Consolidated Cash Interest Expense, as defined, as of September 30, 2017 | $ | 13.7 | ||||
Consolidated Cash Interest Expense, as defined, as of March 31, 2020 | $ | 19.8 | ||||
Ratio of Consolidated EBITDA to Consolidated Cash Interest Expense | 23.13 | 17.18 | ||||
Minimum | 4.25 | 4.25 |
Nine months ended September 30, | Three Months Ended March 31, | |||||||||||||
2017 | 2016 | 2020 | 2019 | |||||||||||
Net income | $ | 118.7 | $ | 98.9 | $ | 29.7 | $ | 34.0 | ||||||
Add back: | ||||||||||||||
Interest expense | 10.6 | 8.8 | 4.3 | 5.1 | ||||||||||
Income taxes | 30.6 | 33.1 | 13.7 | 9.7 | ||||||||||
Depreciation and amortization | 68.5 | 58.9 | 23.6 | 25.1 | ||||||||||
EBITDA | $ | 228.4 | $ | 199.7 | $ | 71.3 | $ | 73.9 |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid Per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(2) | ||||||||||
July 1-31, 2017 | 45,771 | $ | 61.05 | — | 4,342,006 | |||||||||
August 1-31, 2017 | 329,146 | $ | 59.66 | 300,000 | 4,042,006 | |||||||||
September 1-30, 2017 | 1,502 | $ | 63.67 | — | 4,042,006 | |||||||||
Total | 376,419 | (1) | $ | 59.85 | 300,000 |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid Per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(2) | |||||||||
January 1-31, 2020 | 938 | $ | 64.64 | — | 4,100,000 | ||||||||
February 1-29, 2020 | 223 | $ | 65.07 | — | 4,100,000 | ||||||||
March 1-31, 2020 | 396,192 | $ | 39.27 | 396,000 | 3,704,000 | ||||||||
Total | 397,353 | (1) | $ | 39.35 | 396,000 |
(1) | Other than |
(2) |
Exhibit 10.1 | |
Exhibit 10.2 | |
Exhibit 15 | |
Exhibit 31.1 | |
Exhibit 31.2 | |
Exhibit 32 | |
Exhibit 101.INS | XBRL Instance |
Exhibit 101.SCH | XBRL Taxonomy Extension Schema Document. |
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
Barnes Group Inc. | ||
(Registrant) | ||
Date: | /s/ CHRISTOPHER J. STEPHENS, JR. | |
Christopher J. Stephens, Jr. Senior Vice President, Finance Chief Financial Officer (Principal Financial Officer) | ||
Date: | /s/ MARIAN ACKER | |
Marian Acker Vice President, Controller (Principal Accounting Officer) |
Exhibit No. | Description | Reference | ||
10.1 | Filed with this report. | |||
10.2 | Filed with this report. | |||
15 | Filed with this report. | |||
31.1 | Filed with this report. | |||
Filed with this report. | ||||
Furnished with this report. | ||||
Exhibit 101.INS | XBRL Instance | Filed with this report. | ||
Exhibit 101.SCH | XBRL Taxonomy Extension Schema Document. | Filed with this report. | ||
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | Filed with this report. | ||
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | Filed with this report. | ||
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | Filed with this report. | ||
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | Filed with this report. |