Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | HELIOS TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001024795 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HLIO | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock $.001 Par Value | |
Security Exchange Name | NYSE | |
Entity File Number | 0-21835 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-2754337 | |
Entity Address, Address Line One | 7456 16th St E | |
Entity Address, City or Town | SARASOTA | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34243 | |
City Area Code | 941 | |
Local Phone Number | 362-1200 | |
Entity Common Stock, Shares Outstanding | 33,052,989 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 35.2 | $ 43.7 |
Accounts receivable, net of allowance for credit losses of $2.0 and $1.5 | 131.2 | 125.1 |
Inventories, net | 208.7 | 191.6 |
Income taxes receivable | 10.1 | 10.2 |
Other current assets | 25 | 17.9 |
Total current assets | 410.2 | 388.5 |
Property, plant and equipment, net | 220.3 | 175.7 |
Deferred income taxes | 2.1 | 1.6 |
Goodwill | 502.7 | 468.5 |
Other intangible assets, net | 426.4 | 405.6 |
Other assets | 28.9 | 23.8 |
Total assets | 1,590.6 | 1,463.7 |
Current liabilities: | ||
Accounts payable | 65 | 73.7 |
Accrued compensation and benefits | 19.2 | 21.1 |
Other accrued expenses and current liabilities | 22.3 | 32 |
Current portion of long-term non-revolving debt, net | 21.8 | 19 |
Dividends payable | 2.9 | 2.9 |
Income taxes payable | 5.1 | 3.6 |
Total current liabilities | 136.3 | 152.3 |
Revolving line of credit | 217.9 | 261.3 |
Long-term non-revolving debt, net | 304.2 | 164.2 |
Deferred income taxes | 57.2 | 61 |
Other noncurrent liabilities | 33 | 30 |
Total liabilities | 748.6 | 668.8 |
Commitments and contingencies | 0 | 0 |
Shareholders' equity: | ||
Preferred stock, par value $0.001, 2.0 shares authorized,no shares issued or outstanding | 0 | 0 |
Common stock, par value $0.001, 100.0 shares authorized, 33.0 and 32.6 shares issued and outstanding | 0 | 0 |
Capital in excess of par value | 431.6 | 404.3 |
Retained earnings | 475.3 | 450 |
Accumulated other comprehensive loss | (64.9) | (59.4) |
Total shareholders' equity | 842 | 794.9 |
Total liabilities and shareholders' equity | $ 1,590.6 | $ 1,463.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses, accounts receivable | $ 2 | $ 1.5 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2 | 2 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100 | 100 |
Common stock, shares issued | 33 | 32.6 |
Common stock, shares outstanding | 33 | 32.6 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Income Statement [Abstract] | ||||
Net Sales | $ 201.4 | $ 207.2 | $ 642.2 | $ 689.4 |
Cost of sales | 141.7 | 137.9 | 435.7 | 454.2 |
Gross profit | 59.7 | 69.3 | 206.5 | 235.2 |
Selling, engineering and administrative expenses | 37.7 | 31.7 | 113.8 | 98.1 |
Amortization of intangible assets | 8.2 | 6.8 | 24.7 | 20.6 |
Operating income | 13.8 | 30.7 | 68 | 116.6 |
Interest expense, net | 8.7 | 4.1 | 22.6 | 11.7 |
Foreign currency transaction loss (gain), net | 0.1 | (0.2) | 0.6 | (1.3) |
Other non-operating expense, net | 0 | 0.2 | 0 | 1.5 |
Income before income taxes | 5 | 26.7 | 44.8 | 104.7 |
Income tax provision | 1.5 | 6.3 | 10.7 | 23.8 |
Net income | $ 3.5 | $ 20.4 | $ 34.1 | $ 80.9 |
Net income per share: | ||||
Basic | $ 0.11 | $ 0.63 | $ 1.04 | $ 2.49 |
Diluted | $ 0.11 | $ 0.63 | $ 1.04 | $ 2.48 |
Weighted average shares outstanding: | ||||
Basic | 33 | 32.5 | 32.8 | 32.5 |
Diluted | 33.1 | 32.6 | 33 | 32.6 |
Dividends declared per share | $ 0.09 | $ 0.09 | $ 0.27 | $ 0.27 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 3.5 | $ 20.4 | $ 34.1 | $ 80.9 |
Other comprehensive loss | ||||
Foreign currency translation adjustments, net of tax | (10.2) | (20.2) | (6.5) | (47.1) |
Unrealized (loss) gain on interest rate swaps, net of tax | 0.9 | 3.2 | 1 | 10.5 |
Total other comprehensive loss | (9.3) | (16.9) | (5.5) | (36.5) |
Comprehensive (loss) income | $ (5.8) | $ 3.4 | $ 28.6 | $ 44.3 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (unaudited) - USD ($) shares in Millions, $ in Millions | Total | Preferred stock [Member] | Common stock [Member] | Capital in excess of par value [Member] | Retained earnings [Member] | Accumulated other comprehensive loss [Member] |
Beginning Balance at Jan. 01, 2022 | $ 709 | $ 0 | $ 0 | $ 394.6 | $ 363.3 | $ (49) |
Beginning Balance, Shares at Jan. 01, 2022 | 0 | 32.4 | ||||
Shares issued, restricted stock | 0.1 | 0.1 | ||||
Shares issued, restricted stock, Shares | 0.1 | |||||
Shares issued, ESPP | 1.6 | 1.6 | ||||
Shares issued, acquisition | 1.6 | 1.6 | ||||
Stock-based compensation | 6.2 | 6.2 | ||||
Cancellation of shares for payment of employee tax withholding | (2.6) | (2.6) | ||||
Dividends declared | (8.8) | (8.8) | ||||
Net Income (Loss) | 80.9 | 80.9 | ||||
Other comprehensive income (loss) | (36.5) | (36.5) | ||||
Ending Balance at Oct. 01, 2022 | 751.4 | $ 0 | $ 0 | 401.5 | 435.4 | (85.5) |
Ending Balance, Shares at Oct. 01, 2022 | 0 | 32.5 | ||||
Beginning Balance at Jul. 02, 2022 | 747 | $ 0 | $ 0 | 397.6 | 417.9 | (68.6) |
Beginning Balance, Shares at Jul. 02, 2022 | 0 | 32.5 | ||||
Shares issued, ESPP | 0.5 | 0.5 | ||||
Shares issued, acquisition | 1.6 | 1.6 | ||||
Stock-based compensation | 1.8 | 1.8 | ||||
Dividends declared | (2.9) | (2.9) | ||||
Net Income (Loss) | 20.4 | 20.4 | ||||
Other comprehensive income (loss) | (16.9) | (16.9) | ||||
Ending Balance at Oct. 01, 2022 | 751.4 | $ 0 | $ 0 | 401.5 | 435.4 | (85.5) |
Ending Balance, Shares at Oct. 01, 2022 | 0 | 32.5 | ||||
Beginning Balance at Dec. 31, 2022 | 794.9 | $ 0 | $ 0 | 404.3 | 450 | (59.4) |
Beginning Balance, Shares at Dec. 31, 2022 | 0 | 32.6 | ||||
Shares issued, ESPP | 1.6 | 1.6 | ||||
Shares issued, acquisition | 18.7 | 18.7 | ||||
Shares issued, acquisition, Shares | 0.4 | |||||
Stock-based compensation | 9.2 | 9.2 | ||||
Cancellation of shares for payment of employee tax withholding | (2.2) | (2.2) | ||||
Dividends declared | (8.8) | (8.8) | ||||
Net Income (Loss) | 34.1 | 34.1 | ||||
Other comprehensive income (loss) | (5.5) | (5.5) | ||||
Ending Balance at Sep. 30, 2023 | 842 | $ 0 | $ 0 | 431.6 | 475.3 | (64.9) |
Ending Balance, Shares at Sep. 30, 2023 | 0 | 33 | ||||
Beginning Balance at Jul. 01, 2023 | 847.5 | $ 0 | $ 0 | 428.4 | 474.7 | (55.6) |
Beginning Balance, Shares at Jul. 01, 2023 | 0 | 33 | ||||
Shares issued, ESPP | 0.6 | 0.6 | ||||
Stock-based compensation | 2.7 | 2.7 | ||||
Cancellation of shares for payment of employee tax withholding | (0.1) | (0.1) | ||||
Dividends declared | (2.9) | (2.9) | ||||
Net Income (Loss) | 3.5 | 3.5 | ||||
Other comprehensive income (loss) | (9.3) | 9.3 | ||||
Ending Balance at Sep. 30, 2023 | $ 842 | $ 0 | $ 0 | $ 431.6 | $ 475.3 | $ (64.9) |
Ending Balance, Shares at Sep. 30, 2023 | 0 | 33 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ 34.1 | $ 80.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 47.7 | 37.4 |
Stock-based compensation expense | 9.2 | 6.2 |
Amortization of debt issuance costs | 0.5 | 0.4 |
Benefit for deferred income taxes | (3.1) | (2.1) |
Forward contract losses (gains), net | 0.1 | (6.4) |
Other, net | 0.5 | 1 |
(Increase) decrease in, net of acquisitions: | ||
Accounts receivable | (1.5) | (2.9) |
Inventories | (14.4) | (19.7) |
Income taxes receivable | 0.3 | (1.8) |
Other current assets | (7.5) | 0.6 |
Other assets | 5.8 | 6.2 |
Increase (decrease) in, net of acquisitions: | ||
Accounts payable | (9.1) | (17.2) |
Accrued expenses and other liabilities | (6.9) | (5.7) |
Income taxes payable | 1.8 | 2.5 |
Other noncurrent liabilities | (4.6) | (5.4) |
Contingent consideration payments in excess of acquisition date fair value | (2.7) | 0 |
Net cash provided by operating activities | 50.2 | 74.2 |
Cash flows from investing activities: | ||
Business acquisitions, net of cash acquired | (114.8) | (67.3) |
Capital expenditures | (25.5) | (21.9) |
Proceeds from dispositions of property, plant and equipment | 0.3 | 1.9 |
Cash settlement of forward contracts | 0.6 | 4.4 |
Software development costs | (5.1) | (2.3) |
Net cash used in investing activities | (144.5) | (85.2) |
Cash flows from financing activities: | ||
Borrowings on revolving credit facilities | 175.7 | 112.7 |
Repayment of borrowings on revolving credit facilities | (219) | (72.2) |
Borrowings on long-term non-revolving debt | 160 | 0 |
Repayment of borrowings on long-term non-revolving debt | (16.3) | (12.6) |
Proceeds from stock issued | 1.6 | 1.7 |
Dividends to shareholders | (8.8) | (8.8) |
Payment of employee tax withholding on equity award vestings | (2.2) | (2.6) |
Payment of contingent consideration liability | (3.4) | (1.1) |
Other financing activities | (1.9) | (1.6) |
Net cash provided by financing activities | 85.7 | 15.5 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.1 | 3.7 |
Net (decrease) increase in cash and cash equivalents | (8.5) | 8.3 |
Cash and cash equivalents, beginning of period | 43.7 | 28.6 |
Cash and cash equivalents, end of period | $ 35.2 | $ 36.8 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 3.5 | $ 20.4 | $ 34.1 | $ 80.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Company Background
Company Background | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMPANY BACKGROUND | 1. COMPANY BACKGROUND Helios Technologies, Inc. (“Helios,” or the “Company”) together with its wholly owned subsidiaries, is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. Helios sells its products to customers in over 90 countries around the world . The Company’s strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisitions. The Company operates in two business segments: Hydraulics and Electronics. There are three key technologies within the Hydraulics segment: cartridge valve technology (“CVT”), quick-release hydraulic coupling solutions (“QRC”) and hydraulic system solutions (“Systems”), which often incorporate manifold solutions with CVT and QRC technologies. CVT products provide functions important to a hydraulic system: to control rates and direction of fluid flow and to regulate and control pressures. QRC products allow users to connect and disconnect quickly from any hydraulic circuit without leakage and ensure high-performance under high temperature and pressure using one or multiple couplers. Systems provide engineered solutions for machine users, manufacturers or designers to fulfill complete system design requirements including electro-hydraulic, remote control, electronic control and programmable logic controller systems, as well as automation of existing equipment. The Electronics segment provides complete, fully-tailored display and control solutions for engines, engine-driven equipment, specialty vehicles, therapy baths and traditional and swim spas. This broad range of products is complemented by extensive application expertise and unparalleled depth of software, embedded programming, hardware and sustaining engineering teams. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The financial statements are prepared on a consistent basis (including normal recurring adjustments) and should be read in conjunction with the consolidated financial statements and related notes contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“Form 10-K”), filed by Helios with the Securities and Exchange Commission on February 28, 2023. In management’s opinion, all adjustments necessary for a fair presentation of the Company’s financial statements are reflected in the interim periods presented. Operating results for the nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ended December 30, 2023 . Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Capitalized Software Development Costs The Company sells certain products that contain embedded software that is integral to the functionality of the products. Internal and external costs incurred for developing this software are charged to expense until technological feasibility has been established, at which point the development costs are capitalized. Capitalized software development costs primarily include payroll, benefits and other headcount related expenses. Once the products are available for general release to customers, no additional costs are capitalized. Capitalized software development costs, net of accumulated amortization, were $ 8.2 an d $ 5.6 at September 30, 2023, and December 31, 2022 , respectively, and are included in Other assets in the Consolidated Balance Sheets. Earnings Per Share The following table presents the computation of basic and diluted earnings per common share (in millions, except per share data): Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Net income $ 3.5 $ 20.4 $ 34.1 $ 80.9 Weighted average shares outstanding - Basic 33.0 32.5 32.8 32.5 Net effect of dilutive securities - Stock based compensation 0.1 — 0.2 0.1 Weighted average shares outstanding - Diluted 33.1 32.6 33.0 32.6 Net income per share: Basic $ 0.11 $ 0.63 $ 1.04 $ 2.49 Diluted $ 0.11 $ 0.63 $ 1.04 $ 2.48 Recently Adopted Accounting Standard In March 2020, and clarified through December 2022, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. The guidance was effective immediately upon issuance in March 2020 and cannot be applied subsequent to December 31, 2024, except for certain optional expedients. The Company adopted the standard for the fiscal year beginning January 1, 2023. In March 2023, the Company executed an amendment to the term loan and revolving credit facility to modify and replace reference to the London Interbank Offered Rate ("LIBOR"). Additionally in March 2023, the company executed an amendment to the interest rate swap agreements to modify and replace reference to LIBOR. The company applied the accounting relief in accordance with ASC 848 as the relevant contract and hedge accounting relationship modifications were executed. The adoption of this standard did not have a material impact on our accounting policies or consolidated financial statements |
Business Acquisition
Business Acquisition | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITIONS On January 27, 2023 , the Company completed the acquisition of Schultes Precision Manufacturing, Inc. ("Schultes"), an Illinois corporation. Schultes is a highly trusted specialist in manufacturing precision machined components and assemblies for customers requiring very tight tolerances, superior quality and exceptional value-added manufacturing processes. Currently serving the hydraulic, aerospace, communication, food services, medical device and dental industries, Schultes brings the manufacturing quality, reliability and responsiveness critical to its customers’ success. The results of Schultes' operations are reported in the Company’s Hydraulics segment and have been included in the Consolidated, Unaudited Financial Statements since the date of acquisition. Initial cash consideration paid at closing for Schultes, net of cash acquired, totaled $ 84.7 . Total consideration for the acquisition is subject to a post-closing adjustment in accordance with the terms of the purchase agreement. Cash consideration paid at closing was funded with additional borrowings on the Company’s credit facility. On May 26, 2023 , the Company completed the acquisition of i3 Product Development, Inc. (“i3”), a Wisconsin corporation. i3 is a custom engineering services firm, with over 55 engineers with expertise in electronics, mechanical, industrial, embedded and software engineering. i3's solutions are used across many sectors, including medical, off-highway, recreational and commercial marine, power sports, health and wellness, agriculture, consumer goods, industrial, sports and fitness. We anticipate that i3 will equip Helios with significant value-added professional services capabilities to provide customization to Helios platforms and to develop greenfield solutions. The results of i3's operations are reported in the Company’s Electronics segment and have been included in the Consolidated, Unaudited Financial Statements since the date of acquisition. Initial consideration paid at closing for i3, net of cash acquired, totaled $ 44.0 , consisting of 370,276 shares of the Company's common stock, issued in a private placement to the previous owners of i3, and cash of $ 25.9 . Total consideration for the acquisition is subject to a post-closing adjustment in accordance with the terms of the purchase agreement. The cash consideration paid at closing was funded with additional borrowings on the Company’s credit facility. In connection with these acquisitions, the Company recorded $ 37.7 of goodwill, $ 48.0 of other identifiable intangible assets, $ 34.2 of property, plant and equipment and $ 9.4 of other net assets. The intangible assets include customer relationships of $ 36.4 ( 15.5 year weighted average useful life), trade names and brands of $ 7.6 ( 14.0 year weighted average useful life), technology of $ 3.3 ( 5.0 year weighted average useful life) and sales order backlog of $ 0.7 (less than one year weighted average useful life). The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identified intangible assets acquired was based on estimates and assumptions made by management at the time of the acquisitions. As additional information becomes available, management will finalize its analysis of the estimated fair value. The purchase price allocations are preliminary, pending post-closing adjustments, final intangibles valuation and tax-related adjustments, and may be revised during the remainder of the measurement period (which will not exceed 12 months from the acquisition dates). Any such revisions or changes to the fair values of the tangible and intangible assets acquired and liabilities assumed could be material. Pro forma results of operations and the revenue and net income subsequent to the acquisition dates for the acquisitions completed during fiscal 2023 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Company's financial results. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 4. FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables provide information regarding the Company’s assets and liabilities measured at f air value on a recurring basis at September 30, 2023, and December 31, 2022. September 30, 2023 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contracts $ 12.4 $ — $ 12.4 $ — Forward foreign exchange contracts 0.1 — 0.1 — Total $ 12.5 $ — $ 12.5 $ — Liabilities Forward foreign exchange contracts $ 0.1 $ — $ 0.1 $ — Contingent consideration 1.4 — — 1.4 Total $ 1.5 $ — $ 0.1 $ 1.4 December 31, 2022 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contracts $ 11.1 $ — $ 11.1 $ — Forward foreign exchange contracts 1.0 — 1.0 — Total $ 12.1 $ — $ 12.1 $ — Liabilities Forward foreign exchange contracts $ 0.3 $ — $ 0.3 $ — Contingent consideration 6.7 — — 6.7 Total $ 7.0 $ — $ 0.3 $ 6.7 A summary of changes in the estimated fair value of contingent consideration at September 30, 2023, is as follows: Balance at December 31, 2022 $ 6.7 Change in estimated fair value 0.3 Payment on liability ( 6.1 ) Accretion in value 0.5 Balance at September 30, 2023 $ 1.4 |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | 5. INVENTORIES, NET At September 30, 2023, and December 31, 2022, inventory consisted of the following: September 30, 2023 December 31, 2022 Raw materials $ 117.7 $ 119.2 Work in process 56.8 41.6 Finished goods 44.3 40.8 Provision for obsolete and slow-moving inventory ( 10.1 ) ( 10.0 ) Total $ 208.7 $ 191.6 |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
OPERATING LEASES | 6. OPERATING LEASES The Company leases machinery, equipment, vehicles, buildings and office space, throughout its locations, which are classified as operating leases. Remaining terms on these leases range from less than one year to eight years . For the nine months ended September 30, 2023, and October 1, 2022, operating lease costs totaled $ 5.0 and $ 5.1 , respectively. Supplemental balance sheet information related to operating leases is as follows: September 30, 2023 December 31, 2022 Right-of-use assets $ 22.3 $ 19.2 Lease liabilities: Current lease liabilities $ 4.1 $ 5.8 Non-current lease liabilities 19.3 14.5 Total lease liabilities $ 23.4 $ 20.3 Weighted average remaining lease term (in years): 6.1 Weighted average discount rate: 5.9 % Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, 2023 October 1, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5.0 $ 5.2 Non-cash impact of new leases and lease modifications $ 7.6 $ 1.0 Maturities of lease liabilities are as follows: 2023 Remaining $ 1.7 2024 4.9 2025 4.7 2026 4.2 2027 3.2 2028 2.7 Thereafter 7.3 Total lease payments 28.7 Less: Imputed interest ( 5.3 ) Total lease obligations 23.4 Less: Current lease liabilities ( 4.1 ) Non-current lease liabilities $ 19.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS Goodwill A summary of changes in goodwill by segment for the nine months ended September 30, 2023, is as follows: Hydraulics Electronics Total Balance at December 31, 2022 $ 282.5 $ 186.0 $ 468.5 Acquisition of Schultes 11.8 — 11.8 Acquisition of i3 — 25.9 25.9 Currency translation ( 3.3 ) ( 0.2 ) ( 3.5 ) Balance at September 30, 2023 $ 291.0 $ 211.7 $ 502.7 Acquired Intangible Assets At September 30, 2023, and December 31, 2022, acquired intangible assets consisted of the following: September 30, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Definite-lived intangibles: Trade names and brands $ 94.7 $ ( 22.3 ) $ 72.4 $ 87.5 $ ( 18.5 ) $ 69.0 Non-compete agreements 2.0 ( 1.0 ) 1.0 2.1 ( 0.7 ) 1.4 Technology 53.8 ( 25.3 ) 28.5 50.8 ( 21.3 ) 29.5 Supply agreement 21.0 ( 14.4 ) 6.6 21.0 ( 12.8 ) 8.2 Customer relationships 383.1 ( 68.4 ) 314.7 349.4 ( 56.1 ) 293.3 Sales order backlog 1.4 ( 1.2 ) 0.2 0.7 ( 0.4 ) 0.3 Workforce 6.1 ( 3.1 ) 3.0 6.1 ( 2.2 ) 3.9 $ 562.1 $ ( 135.7 ) $ 426.4 $ 517.6 $ ( 112.0 ) $ 405.6 Amortization expense on acquir ed intangible assets for the nine months ended September 30, 2023, and October 1, 2022, was $ 24.7 and $ 20.6 , respectively. F uture estimated amortization expense is presented below. Year: 2023 Remaining $ 8.2 2024 31.9 2025 31.7 2026 30.0 2027 26.7 2028 26.2 Thereafter 271.7 Total $ 426.4 |
Derivative Instruments & Hedgin
Derivative Instruments & Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES | 8. DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES The Company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments and hedging activities. The fair value of the Company’s derivative financial instruments included in the Consolidated Balance Sheets is presented as follows: Asset Derivatives Liability Derivatives Balance Sheet Fair Value (1) Fair Value (1) Balance Sheet Fair Value (1) Fair Value (1) Location September 30, 2023 December 31, 2022 Location September 30, 2023 December 31, 2022 Derivatives designated as hedging instruments: Interest rate swap contracts Other assets $ 12.4 $ 11.1 Other non-current liabilities $ — $ — Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 0.1 1.0 Other current liabilities 0.1 — Forward foreign exchange contracts Other assets — — Other non-current liabilities — 0.3 Total derivatives $ 12.5 $ 12.1 $ 0.1 $ 0.3 (1) See Note 4 for information regarding the inputs used in determining the fair value of derivative assets and liabilities. The amount of gains and losses related to the Company’s derivative financ ial instruments for the nine months ended September 30, 2023, and October 1, 2022, are presented as follows: Amount of Gain or (Loss) Recognized in Location of Gain or (Loss) Reclassified Amount of Gain or (Loss) Reclassified from Accumulated September 30, 2023 October 1, 2022 into Earnings (Effective Portion) September 30, 2023 October 1, 2022 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ 1.4 $ 13.7 Interest expense, net $ 5.2 $ ( 1.4 ) Interest ex pense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, totaled $ 22.6 and $ 11.7 for th e nine months ended September 30, 2023, and October 1, 2022, respectively. Amount of Gain or (Loss) Recognized Location of Gain or (Loss) Recognized September 30, 2023 October 1, 2022 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ ( 0.1 ) $ 6.4 Foreign currency transaction gain / loss, net Interest Rate Swap Contracts The Company has entered into interest rate swap transactions to hedge the variable interest rate payments on its credit facilities. In connection with the transactions, the Company pays interest based upon a fixed rate as agreed upon with the respective counterparties and receives variable rate interest payments. The interest rate swaps are designated as hedging instruments and are accounted for as cash flow h e dges. The aggregate notional amount of the remaining swaps was $ 220.0 as of September 30, 2023 . The notional amount decreases periodically through the dates of expiration in October 2025 and April 2028 . The contracts are settled with the respective counterparties on a net basis at each settlement date. Forward Foreign Exchange Contracts The Company has entered into forward contracts to economically hedge translational and transactional exposure associated with various business units whose local currency differs from the Company’s reporting currency. The Company’s forward contracts are not designated as hedging instruments for accounting purposes. At September 30, 2023 , the Company had two forward foreign exchange contracts with an aggregate notional value of € 4.5 , maturing at various dates through March 2024 . Net Investment Hedge The Company utilizes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company has designated € 90.0 of borrowings on the revolving credit facility as a net investment hedge of a portion of the Company’s European operations. The carrying value of the euro denominated debt totaled $ 95.2 as of September 30, 2023 , and is included in the Revolving lines of credit line item in the Consolidated Balance Sheets. The gain on the net investment hedge recorded in accumulated other comprehensive income as part of the currency translation adjustment was $ 0.9 , net of tax, for the nine months ended September 30, 2023 . |
Credit Facilities
Credit Facilities | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | 9. CREDIT FACILITIES Total non-revolving debt consists of the following: Maturity Date September 30, 2023 December 31, 2022 Long-term non-revolving debt: Term loans with PNC Bank Oct 2025 $ 313.8 $ 175.0 Term loans with Citibank Various 12.9 8.6 Total long-term non-revolving debt 326.7 183.6 Less: current portion of long-term non-revolving debt 21.8 19.0 Less: unamortized debt issuance costs 0.7 0.4 Total long-term non-revolving debt, net $ 304.2 $ 164.2 Information on the Company’s revolving credit facilities is as follows: Balance Available Credit Maturity Date September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Revolving line of credit with PNC Bank Oct 2025 $ 217.2 $ 261.3 $ 180.8 $ 138.1 Revolving line of credit with Citibank Jun 2026 1.3 1.6 2.5 0.7 Future maturities of total debt are as follows: Year: 2023 Remaining $ 5.8 2024 23.4 2025 508.5 2026 7.5 Total $ 545.2 Term Loans and Line of Credit with PNC Bank The Company has a credit agreement that includes a revolving line of credit and term loan credit facility with PNC Bank, National Association, as administrative agent, and the lenders party thereto. In May 2023, the Company entered into an Incremental Facility Amendment with PNC Bank, National Association, as administrative agent, and various lenders party thereto that amended the Second Amended and Restated Credit Agreement, dated October 28, 2020 (the “Credit Agreement” and, together with the Incremental Facility Amendment, the “Amended Credit Agreement”). Pursuant to the Incremental Facility Amendment, the Company incurred a new senior secured term loan A-2 (the “Term Loan A-2”) in an aggregate principal amount of $ 150.0 . The issue price of the Term Loan A-2 was equal to 100 % of the aggregate principal amount thereof. The Term Loan A-2 bears interest at a rate based on either (i) the secured overnight financing rate (“SOFR”) (subject to a 0 % floor) for the applicable interest period plus a 0.10 % SOFR adjustment plus an applicable margin ranging between 1.50 % and 2.75 %, depending on the Company’s leverage ratio or (ii) a variable rate equal to the highest of (x) the overnight bank funding rate plus 0.50 %, (y) the prime rate and (z) daily simple SOFR, plus a 0.10 % SOFR adjustment plus 1.00 %, plus an applicable margin ranging between 0.50 % and 1.75 %, depending on the Company’s leverage ratio. The Term Loan A-2 is guaranteed by each of the Company’s domestic subsidiaries and is secured by substantially all of the assets of the Company and the guarantors, on a pari passu basis with the other facilities under the Amended Credit Agreement. The Term Loan A-2 matures on October 28, 2025, and is not subject to any mandatory repayments prior to such maturity date. The net proceeds from the Term Loan A-2, together with cash on ha nd, were used to repay outstanding amounts under the Company’s revolving credit facility. Under the Amended Credit Agreement, the Company continues to have access to an accordion feature with the ability to increase the revolver or incur additional term loans under the incremental facility of $ 300.0 after giving effect to borrowings under the Term Loan A-2. The revolving line of credit allows for borrowings up to an aggregate maximum principal amount of $ 400.0 . To hedge currency exposure in foreign operations, € 90.0 of the borrowings on the line of credit are denominated in euros. The borrowings have been designated as a net investment hedge, see additional information in Note 8. The effective interest rate on the credit agreement at September 30, 2023 , was 7.4 %. Interest expense recognized on the credit agreement, excluding interest rate swap activity, during the nine months ended September 30, 2023, and October 1, 2022, totaled $ 27.5 and $ 9.8 , respectively. As of September 30, 2023, the Company was in compliance with all debt covenants related to the Amended Credit Agreement. Term Loans and Line of Credit with Citibank The Company has an uncommitted fixed asset facility agreement (the “Fixed Asset Facility”), short-term revolving facility agreement (the “Working Capital Facility”) and term loan facility agreement (the "Shanghai Branch Term Loan Facility") with Citibank (China) Co., Ltd. Shanghai Branch, as lender. Under the Fixed Asset Facility, the Company borrowed on a secured basis RMB 2.6 . The proceeds of the loan were used for purchases of equipment. Outstanding borrowings under the Fixed Asset Facility accrued interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 1.5% . The loan matured in May 2023, at which time the remaining balance was paid in full . Under the Working Capital Facility, the Company could borrow amounts on an unsecured revolving facility up to a total of RMB 16.0 . Proceeds were used for expenditures related to production at the Company’s facility located in Kunshan City, China. Outstanding borrowings under the Working Capital Facility accrued interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 0.5% . The loan matured in May 2023, at which time the remaining balance was paid in full . Under the Shanghai Branch Term Loan Facility, the Company borrowed on a secured basis RMB 42.7 . Outstanding borrowings under the Shanghai Branch Term Loan Facility accrue interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 1.5% , to be repaid on a specified schedule with the final payment due in October 2024 . The Company has a term loan facility agreement (the “Sydney Branch Term Loan Facility”) with Citibank, N.A., Sydney Branch, as lender. Under the Sydney Branch Term Loan Facility, the Company borrowed on a secured basis AUD 7.5 . Outstanding borrowings under the facility accrued interest at a rate equal to the Australian Bank Bill Swap ("ABBS") reference rate plus 2.0% and was scheduled to be repaid throughout the term of the loan with a final payment due date in December 2024. In June 2023, the Sydney Branch Term Loan Facility was amended. The Company borrowed on a secured basis AUD 15.0 and used a portion of the proceeds to repay the remaining balance of the original term loan. Outstanding borrowings under the amended Sydney Branch Term Loan Facility accrue interest at a rate equal to the ABBS reference rate plus 2.8% , to be repaid throughout the term of the loan with a final payment due date in June 2026. Concurrent with the amendment to the Sydney Branch Term Loan Facility, the Company entered into a revolving line of credit agreement with Citibank, N.A., Sydney Branch, as lender (the “Sydney Branch RC Facility”). The Sydney Branch RC Facility allows for borrowings up to an aggregate maximum principal amount of AUD 6.0 and matures in June 2026, with no mandatory repayments prior to such maturity date. The facility accrues interest at a rate equal to the ABBS reference rate plus 2.3%. As of September 30, 2023 , the Company was in compliance with all debt covenants related to the term loans and line of credit with Citibank. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES The provision for income taxe s for the three months ended September 30, 2023, and October 1, 2022, was 30.5 % and 23.6 % of pretax income, respectively. The provision for income taxes for the nine months ended September 30, 2023 and October 1, 2022 , was 23.8 % and 22.7 % of pretax income, respectively. These effective rates fluctuate relative to the levels of income and different tax rates in effect among the countries in which the Company sells products. The change in the comparable prior year quarter and year-to-date period is primarily due to an overall decrease in discrete tax benefits. At September 30, 2023, the Company had an unrecognized tax benefit of $ 7.7 including accrued interest. If recognized, $ 1.8 of unrecognized tax benefit would reduce the effective tax rate in future periods. The Company recognizes interest and penalties related to income tax matters in income tax expense. Interest accrued as of September 30, 2023, is not considered material to the Company’s Consolidated, Unaudited Financial Statements. The Company is currently under state audit and remains subject to income tax examinations in various state and foreign jurisdictions for tax years 2017-2022. The Company believes it has adequately reserved for income taxes that could result from any audit adjustments. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK-BASED COMPENSATION | 11. STOCK-BASED COMPENSATION Equity Incentive Plan The Company’s 2023 Equity Incentive Plan (“2023 Plan”) provides for the grant of up to an aggregate of 1,000,000 shares of restricted stock, restricted share units, stock options, stock appreciation rights, dividend or dividend equivalent rights, stock awards and other awards valued in whole or in part by reference to or otherwise based on the Company’s common stock, to officers, employees and directors of the Company. The 2023 Plan replaced the prior 2019 Equity Incentive Plan and was approved by the Company’s shareholders at the 2023 Annual Meeting. Restricted Stock Units The Company grants restricted stock units (“RSUs”) to employees in connection with a long-term incentive plan. Awards with time-based vesting requirements primarily vest ratably over a three-year period. Awards with performance-based vesting requirements cliff vest after a three-year performance cycle and only after the achievement of certain performance criteria over that cycle. The number of shares ultimately issued for the performance-based units may vary from 0 % to 200 % of their target amount based on the achievement of defined performance targets. Compensation expense recognized for RSUs granted to employees totaled $ 6.5 and $ 5.6 , respec tively, for the nine months ended September 30, 2023, and October 1, 2022. The Helios Technologies, Inc. Non-Employee Director Compensation Policy compensates Non-Employee Directors for their board service with cash awards and equity-based compensation through grants of RSUs, issued pursuant to the 2019 Plan or 2023 Plan, which vest over a one-year period. Direct ors were granted 13,809 and 13,137 RSUs during the nine months ended September 30, 2023, and October 1, 2022, respectively. The Company recognized director stock compensation expense on the RSUs of $ 1.0 and $ 0.3 for the nine months e nded September 30, 2023, and October 1, 2022, respectively. The following table summarizes RSU activity for the nine months ended September 30, 2023: Weighted Average Number of Units Grant-Date (in thousands) Fair Value per Share Nonvested balance at December 31, 2022 217 $ 66.98 Granted 225 56.75 Vested ( 94 ) 53.51 Forfeited ( 44 ) 65.35 Nonvested balance at September 30, 2023 304 $ 63.78 Included in the nonvested balance at September 30, 2023 , is 129,962 nonvested performance-based RSUs. The Company had $ 10.8 of total unrecognized compensation cost related to the RSU awards as of September 30, 2023 . That cost is expected to be recognized over a weighted average period of 1.8 years. Stock Options The Company has granted stock options with market-based exercise conditions to its officers. As of September 30, 2023 , there were 68,000 unvested options and no vested unexercised options. The exercise price per share is $ 50.60 , which is equal to the market price of Helios stock on the grant date. The options vest after achievement of defined stock prices and after the required service periods, which range from one to two years . These options have a 10 -year expiration. The grant date fair value of the options was estimated using a Monte Carlo simulation. The Company has also granted stock options with only time-based vesting conditions to its officers. As of September 30, 2023 , there were 4,999 unvested options and 19,234 vested unexercised options. The exercise prices per share, which range from $ 35.04 to $ 55.03 , are equal to the market price of Helios stock on the respective grant dates. The options vest ratably over a three-year period and have a 10 -year expiration. The grant date fair value of the options was estimated using a Black Scholes valuation model. At September 30, 2023 , the Company had $ 0.1 of unrecognized compensation cost related to the options, which is expected to be recognized over a weighted average period of 0.8 years. The Company recognized expense on the stock options of $ 1.3 and $ 0.1 for the ni ne months ended September 30, 2023, and October 1, 2022, respectively. Employee Stock Purchase Plans The Company maintains an Employee Stock Purchase Plan (“ESPP”) in which U.S. employees are eligible to participate. Employees who choose to participate are granted an opportunity to purchase common stock at 85 percent of market value on the first or last day of the quarterly purchase period, whichever is lower. Employees in the United Kingdom (“UK”), under a separate plan, are granted an opportunity to purchase the Company’s common stock at market value, on the first or last day of the quarterly purchase period, whichever is lower, with the Company issuing one additional free sh are of common stock for each six shares purchased by the employee under the plan. Employees purchased 32,004 shares at a weighted average price of $ 49.35 , and 28,960 shares at a weighted average price of $ 54.29 , under the ESPP and UK plans during the nine months ended September 30, 2023, and October 1, 2022, respectively. The Company recognized $ 0.4 and $ 0.3 of compensation expense during the nine months ended September 30, 2023, and October 1, 2022, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present changes in accumulated other comprehensive loss b y component: Unrealized Foreign Total Balance at December 31, 2022 $ 8.5 $ ( 67.9 ) $ ( 59.4 ) Other comprehensive loss before reclassifications ( 2.6 ) ( 7.6 ) ( 10.2 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 4.0 — 4.0 Tax effect ( 0.4 ) 1.1 0.7 Net current period other comprehensive income (loss) 1.0 ( 6.5 ) ( 5.5 ) Balance at September 30, 2023 $ 9.5 $ ( 74.4 ) $ ( 64.9 ) Unrealized Foreign Total Balance at January 1, 2022 $ ( 1.4 ) $ ( 47.6 ) $ ( 49.0 ) Other comprehensive income (loss) before reclassifications 14.8 ( 59.7 ) ( 44.9 ) Amounts reclassified from accumulated other comprehensive loss, net of tax ( 1.1 ) — ( 1.1 ) Tax effect ( 3.2 ) 12.6 9.4 Net current period other comprehensive income (loss) 10.5 ( 47.1 ) ( 36.5 ) Balance at October 1, 2022 $ 9.2 $ ( 94.7 ) $ ( 85.5 ) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 13. SEGMENT REPORTING The Company has two reportable segments: Hydraulics and Electronics. These segments are organized primarily based on the similar nature of products offered for sale, the types of customers served and the methods of distribution and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision maker. The Company evaluates performance and allocates resources based primarily on segment operating income. Certain costs were not allocated to the business segments as they are not used in evaluating the results of, or in allocating resources to the Company’s segments. These costs are presented in the Corporate and other line item. For the nine months ended September 30, 2023 , the unallocated costs totaled $ 29.1 and included certain corporate costs not deemed to be allocable to either business segment of $ 1.0 , amortization of acquisition-related intangible assets of $ 24.7 and other acquisition and integration-related costs of $ 3.4 . The accounting p olicies of the Company’s operating segments are the same as those used to prepare the accompanying Consolidated, Unaudited Financial Statements. The following table presents financial information by reportable segment: Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Net sales Hydraulics $ 132.0 $ 131.2 $ 432.1 $ 411.1 Electronics 69.4 76.0 210.1 278.3 Total $ 201.4 $ 207.2 $ 642.2 $ 689.4 Operating income Hydraulics $ 18.4 $ 29.4 $ 73.3 $ 92.1 Electronics 4.2 11.0 23.8 51.8 Corporate and other ( 8.8 ) ( 9.6 ) ( 29.1 ) ( 27.3 ) Total $ 13.8 $ 30.7 $ 68.0 $ 116.6 Capital expenditures Hydraulics $ 4.5 $ 5.6 $ 19.5 $ 13.9 Electronics 1.3 2.9 6.0 8.0 Total $ 5.8 $ 8.4 $ 25.5 $ 21.9 September 30, 2023 December 31, 2022 Total assets Hydraulics $ 962.6 $ 874.8 Electronics 605.1 567.1 Corporate 22.9 21.8 Total $ 1,590.6 $ 1,463.7 Geographic Region Information Net sales are measured based on the geographic destination of sales to the Americas, Europe, the Middle East and Africa (“EMEA”) and Asia Pacific (“APAC”). Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude right-of-use assets. The following table presents financial information by region: Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Net sales Americas $ 115.1 $ 114.7 $ 351.9 $ 365.6 EMEA 44.5 49.0 158.9 175.0 APAC 41.8 43.5 131.4 148.8 Total $ 201.4 $ 207.2 $ 642.2 $ 689.4 September 30, 2023 December 31, 2022 Tangible long-lived assets Americas $ 145.8 $ 105.7 EMEA 33.9 33.1 APAC 18.3 17.7 Total $ 198.0 $ 156.5 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS The Company sells inventory to an entity managed by a director of Helios. For the nine months ended September 30, 2023, and October 1, 2022, sales to the entity totaled $ 2.8 and $ 2.1 , respectively. At September 30, 2023, and December 31, 2022 , amounts due from the entity totaled $ 0.3 and $ 0.4 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is not a party to any legal proceedings other than routine litigation incidental to its business. In the opinion of management, the amount of ultimate liability with respect to these actions will not materially affect the results of operations, financial position or cash flows of the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The financial statements are prepared on a consistent basis (including normal recurring adjustments) and should be read in conjunction with the consolidated financial statements and related notes contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“Form 10-K”), filed by Helios with the Securities and Exchange Commission on February 28, 2023. In management’s opinion, all adjustments necessary for a fair presentation of the Company’s financial statements are reflected in the interim periods presented. Operating results for the nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ended December 30, 2023 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Capitalized Software Development Costs | Capitalized Software Development Costs The Company sells certain products that contain embedded software that is integral to the functionality of the products. Internal and external costs incurred for developing this software are charged to expense until technological feasibility has been established, at which point the development costs are capitalized. Capitalized software development costs primarily include payroll, benefits and other headcount related expenses. Once the products are available for general release to customers, no additional costs are capitalized. Capitalized software development costs, net of accumulated amortization, were $ 8.2 an d $ 5.6 at September 30, 2023, and December 31, 2022 , respectively, and are included in Other assets in the Consolidated Balance Sheets. |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per common share (in millions, except per share data): Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Net income $ 3.5 $ 20.4 $ 34.1 $ 80.9 Weighted average shares outstanding - Basic 33.0 32.5 32.8 32.5 Net effect of dilutive securities - Stock based compensation 0.1 — 0.2 0.1 Weighted average shares outstanding - Diluted 33.1 32.6 33.0 32.6 Net income per share: Basic $ 0.11 $ 0.63 $ 1.04 $ 2.49 Diluted $ 0.11 $ 0.63 $ 1.04 $ 2.48 |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standard In March 2020, and clarified through December 2022, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. The guidance was effective immediately upon issuance in March 2020 and cannot be applied subsequent to December 31, 2024, except for certain optional expedients. The Company adopted the standard for the fiscal year beginning January 1, 2023. In March 2023, the Company executed an amendment to the term loan and revolving credit facility to modify and replace reference to the London Interbank Offered Rate ("LIBOR"). Additionally in March 2023, the company executed an amendment to the interest rate swap agreements to modify and replace reference to LIBOR. The company applied the accounting relief in accordance with ASC 848 as the relevant contract and hedge accounting relationship modifications were executed. The adoption of this standard did not have a material impact on our accounting policies or consolidated financial statements . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Computation of basic and diluted earnings per common share | The following table presents the computation of basic and diluted earnings per common share (in millions, except per share data): Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Net income $ 3.5 $ 20.4 $ 34.1 $ 80.9 Weighted average shares outstanding - Basic 33.0 32.5 32.8 32.5 Net effect of dilutive securities - Stock based compensation 0.1 — 0.2 0.1 Weighted average shares outstanding - Diluted 33.1 32.6 33.0 32.6 Net income per share: Basic $ 0.11 $ 0.63 $ 1.04 $ 2.49 Diluted $ 0.11 $ 0.63 $ 1.04 $ 2.48 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables provide information regarding the Company’s assets and liabilities measured at f air value on a recurring basis at September 30, 2023, and December 31, 2022. September 30, 2023 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contracts $ 12.4 $ — $ 12.4 $ — Forward foreign exchange contracts 0.1 — 0.1 — Total $ 12.5 $ — $ 12.5 $ — Liabilities Forward foreign exchange contracts $ 0.1 $ — $ 0.1 $ — Contingent consideration 1.4 — — 1.4 Total $ 1.5 $ — $ 0.1 $ 1.4 December 31, 2022 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contracts $ 11.1 $ — $ 11.1 $ — Forward foreign exchange contracts 1.0 — 1.0 — Total $ 12.1 $ — $ 12.1 $ — Liabilities Forward foreign exchange contracts $ 0.3 $ — $ 0.3 $ — Contingent consideration 6.7 — — 6.7 Total $ 7.0 $ — $ 0.3 $ 6.7 |
Summary of changes in estimated fair value of contingent consideration | A summary of changes in the estimated fair value of contingent consideration at September 30, 2023, is as follows: Balance at December 31, 2022 $ 6.7 Change in estimated fair value 0.3 Payment on liability ( 6.1 ) Accretion in value 0.5 Balance at September 30, 2023 $ 1.4 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of inventories | At September 30, 2023, and December 31, 2022, inventory consisted of the following: September 30, 2023 December 31, 2022 Raw materials $ 117.7 $ 119.2 Work in process 56.8 41.6 Finished goods 44.3 40.8 Provision for obsolete and slow-moving inventory ( 10.1 ) ( 10.0 ) Total $ 208.7 $ 191.6 |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is as follows: September 30, 2023 December 31, 2022 Right-of-use assets $ 22.3 $ 19.2 Lease liabilities: Current lease liabilities $ 4.1 $ 5.8 Non-current lease liabilities 19.3 14.5 Total lease liabilities $ 23.4 $ 20.3 Weighted average remaining lease term (in years): 6.1 Weighted average discount rate: 5.9 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, 2023 October 1, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5.0 $ 5.2 Non-cash impact of new leases and lease modifications $ 7.6 $ 1.0 |
Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: 2023 Remaining $ 1.7 2024 4.9 2025 4.7 2026 4.2 2027 3.2 2028 2.7 Thereafter 7.3 Total lease payments 28.7 Less: Imputed interest ( 5.3 ) Total lease obligations 23.4 Less: Current lease liabilities ( 4.1 ) Non-current lease liabilities $ 19.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | A summary of changes in goodwill by segment for the nine months ended September 30, 2023, is as follows: Hydraulics Electronics Total Balance at December 31, 2022 $ 282.5 $ 186.0 $ 468.5 Acquisition of Schultes 11.8 — 11.8 Acquisition of i3 — 25.9 25.9 Currency translation ( 3.3 ) ( 0.2 ) ( 3.5 ) Balance at September 30, 2023 $ 291.0 $ 211.7 $ 502.7 |
Schedule of intangible assets | At September 30, 2023, and December 31, 2022, acquired intangible assets consisted of the following: September 30, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Definite-lived intangibles: Trade names and brands $ 94.7 $ ( 22.3 ) $ 72.4 $ 87.5 $ ( 18.5 ) $ 69.0 Non-compete agreements 2.0 ( 1.0 ) 1.0 2.1 ( 0.7 ) 1.4 Technology 53.8 ( 25.3 ) 28.5 50.8 ( 21.3 ) 29.5 Supply agreement 21.0 ( 14.4 ) 6.6 21.0 ( 12.8 ) 8.2 Customer relationships 383.1 ( 68.4 ) 314.7 349.4 ( 56.1 ) 293.3 Sales order backlog 1.4 ( 1.2 ) 0.2 0.7 ( 0.4 ) 0.3 Workforce 6.1 ( 3.1 ) 3.0 6.1 ( 2.2 ) 3.9 $ 562.1 $ ( 135.7 ) $ 426.4 $ 517.6 $ ( 112.0 ) $ 405.6 |
Schedule of estimated amortization expense of intangible assets | F uture estimated amortization expense is presented below. Year: 2023 Remaining $ 8.2 2024 31.9 2025 31.7 2026 30.0 2027 26.7 2028 26.2 Thereafter 271.7 Total $ 426.4 |
Derivative Instruments & Hedg_2
Derivative Instruments & Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Financial Instruments Included in Consolidated Balance Sheets | The fair value of the Company’s derivative financial instruments included in the Consolidated Balance Sheets is presented as follows: Asset Derivatives Liability Derivatives Balance Sheet Fair Value (1) Fair Value (1) Balance Sheet Fair Value (1) Fair Value (1) Location September 30, 2023 December 31, 2022 Location September 30, 2023 December 31, 2022 Derivatives designated as hedging instruments: Interest rate swap contracts Other assets $ 12.4 $ 11.1 Other non-current liabilities $ — $ — Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 0.1 1.0 Other current liabilities 0.1 — Forward foreign exchange contracts Other assets — — Other non-current liabilities — 0.3 Total derivatives $ 12.5 $ 12.1 $ 0.1 $ 0.3 (1) See Note 4 for information regarding the inputs used in determining the fair value of derivative assets and liabilities. |
Schedule of Gains and Losses Related to Derivative Financial Instruments | The amount of gains and losses related to the Company’s derivative financ ial instruments for the nine months ended September 30, 2023, and October 1, 2022, are presented as follows: Amount of Gain or (Loss) Recognized in Location of Gain or (Loss) Reclassified Amount of Gain or (Loss) Reclassified from Accumulated September 30, 2023 October 1, 2022 into Earnings (Effective Portion) September 30, 2023 October 1, 2022 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ 1.4 $ 13.7 Interest expense, net $ 5.2 $ ( 1.4 ) Interest ex pense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, totaled $ 22.6 and $ 11.7 for th e nine months ended September 30, 2023, and October 1, 2022, respectively. Amount of Gain or (Loss) Recognized Location of Gain or (Loss) Recognized September 30, 2023 October 1, 2022 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ ( 0.1 ) $ 6.4 Foreign currency transaction gain / loss, net |
Credit Facilities (Tables)
Credit Facilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Total Non-Revolving Debt | Total non-revolving debt consists of the following: Maturity Date September 30, 2023 December 31, 2022 Long-term non-revolving debt: Term loans with PNC Bank Oct 2025 $ 313.8 $ 175.0 Term loans with Citibank Various 12.9 8.6 Total long-term non-revolving debt 326.7 183.6 Less: current portion of long-term non-revolving debt 21.8 19.0 Less: unamortized debt issuance costs 0.7 0.4 Total long-term non-revolving debt, net $ 304.2 $ 164.2 |
Summary of Information on Revolving Credit Facility | Information on the Company’s revolving credit facilities is as follows: Balance Available Credit Maturity Date September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Revolving line of credit with PNC Bank Oct 2025 $ 217.2 $ 261.3 $ 180.8 $ 138.1 Revolving line of credit with Citibank Jun 2026 1.3 1.6 2.5 0.7 |
Summary of Future Maturities of Total Debt | Future maturities of total debt are as follows: Year: 2023 Remaining $ 5.8 2024 23.4 2025 508.5 2026 7.5 Total $ 545.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of Restricted Stock and RSU Activity | The following table summarizes RSU activity for the nine months ended September 30, 2023: Weighted Average Number of Units Grant-Date (in thousands) Fair Value per Share Nonvested balance at December 31, 2022 217 $ 66.98 Granted 225 56.75 Vested ( 94 ) 53.51 Forfeited ( 44 ) 65.35 Nonvested balance at September 30, 2023 304 $ 63.78 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following tables present changes in accumulated other comprehensive loss b y component: Unrealized Foreign Total Balance at December 31, 2022 $ 8.5 $ ( 67.9 ) $ ( 59.4 ) Other comprehensive loss before reclassifications ( 2.6 ) ( 7.6 ) ( 10.2 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 4.0 — 4.0 Tax effect ( 0.4 ) 1.1 0.7 Net current period other comprehensive income (loss) 1.0 ( 6.5 ) ( 5.5 ) Balance at September 30, 2023 $ 9.5 $ ( 74.4 ) $ ( 64.9 ) Unrealized Foreign Total Balance at January 1, 2022 $ ( 1.4 ) $ ( 47.6 ) $ ( 49.0 ) Other comprehensive income (loss) before reclassifications 14.8 ( 59.7 ) ( 44.9 ) Amounts reclassified from accumulated other comprehensive loss, net of tax ( 1.1 ) — ( 1.1 ) Tax effect ( 3.2 ) 12.6 9.4 Net current period other comprehensive income (loss) 10.5 ( 47.1 ) ( 36.5 ) Balance at October 1, 2022 $ 9.2 $ ( 94.7 ) $ ( 85.5 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of financial information by reportable segment | The following table presents financial information by reportable segment: Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Net sales Hydraulics $ 132.0 $ 131.2 $ 432.1 $ 411.1 Electronics 69.4 76.0 210.1 278.3 Total $ 201.4 $ 207.2 $ 642.2 $ 689.4 Operating income Hydraulics $ 18.4 $ 29.4 $ 73.3 $ 92.1 Electronics 4.2 11.0 23.8 51.8 Corporate and other ( 8.8 ) ( 9.6 ) ( 29.1 ) ( 27.3 ) Total $ 13.8 $ 30.7 $ 68.0 $ 116.6 Capital expenditures Hydraulics $ 4.5 $ 5.6 $ 19.5 $ 13.9 Electronics 1.3 2.9 6.0 8.0 Total $ 5.8 $ 8.4 $ 25.5 $ 21.9 September 30, 2023 December 31, 2022 Total assets Hydraulics $ 962.6 $ 874.8 Electronics 605.1 567.1 Corporate 22.9 21.8 Total $ 1,590.6 $ 1,463.7 |
Schedule of geographic region information | Net sales are measured based on the geographic destination of sales to the Americas, Europe, the Middle East and Africa (“EMEA”) and Asia Pacific (“APAC”). Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude right-of-use assets. The following table presents financial information by region: Three Months Ended Nine Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Net sales Americas $ 115.1 $ 114.7 $ 351.9 $ 365.6 EMEA 44.5 49.0 158.9 175.0 APAC 41.8 43.5 131.4 148.8 Total $ 201.4 $ 207.2 $ 642.2 $ 689.4 September 30, 2023 December 31, 2022 Tangible long-lived assets Americas $ 145.8 $ 105.7 EMEA 33.9 33.1 APAC 18.3 17.7 Total $ 198.0 $ 156.5 |
Company Background (Details Tex
Company Background (Details Textual) | 9 Months Ended |
Sep. 30, 2023 Segment Country | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of operating segments | Country | 90 |
Number of operating segments | Segment | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Capitalized software, net of accumulated amortization | $ 8.2 | $ 5.6 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Accounting Policies [Abstract] | ||||
Net Income (Loss) | $ 3.5 | $ 20.4 | $ 34.1 | $ 80.9 |
Weighted average shares outstanding - Basic | 33 | 32.5 | 32.8 | 32.5 |
Net effect of dilutive securities - Stock based compensation | $ 0.1 | $ 0 | $ 0.2 | $ 0.1 |
Weighted average shares outstanding - Diluted | 33.1 | 32.6 | 33 | 32.6 |
Net income per share: | ||||
Basic | $ 0.11 | $ 0.63 | $ 1.04 | $ 2.49 |
Diluted | $ 0.11 | $ 0.63 | $ 1.04 | $ 2.48 |
Business Acquisition (Details T
Business Acquisition (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | May 26, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||||
Goodwill acquired | $ 37.7 | |||||
Goodwill | $ 502.7 | 502.7 | $ 468.5 | |||
Intangible assets acquired | 48 | |||||
Property, plant, and equipment acquired | 5.8 | $ 8.4 | 25.5 | $ 21.9 | ||
Property, plant, and equipment acquired | 34.2 | 34.2 | ||||
Other net assets acquired | $ 9.4 | 9.4 | ||||
Business acquisition, net of cash acquired | $ 114.8 | $ 67.3 | ||||
Common stock, shares issued | 33,000,000 | 33,000,000 | 32,600,000 | |||
Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisitions, intangible assets | $ 36.4 | $ 36.4 | ||||
Business acquisitions, Intangible assets, Weighted average useful life | 15 years 6 months | |||||
Trade Name And Brands [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisitions, intangible assets | 7.6 | $ 7.6 | ||||
Business acquisitions, Intangible assets, Weighted average useful life | 14 years | |||||
Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisitions, intangible assets | 3.3 | $ 3.3 | ||||
Business acquisitions, Intangible assets, Weighted average useful life | 5 years | |||||
Sales Order Backlog [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisitions, intangible assets | $ 0.7 | $ 0.7 | ||||
Business acquisitions, Intangible assets, Weighted average useful life | 1 year | |||||
Schultes | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill acquired | $ 11.8 | |||||
Schultes | January 27, 2023 | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | Jan. 27, 2023 | |||||
Business acquisition, net of cash acquired | $ 84.7 | |||||
i3 Product Development [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill acquired | $ 25.9 | |||||
i3 Product Development [Member] | May 26, 2023 | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | May 26, 2023 | |||||
Initial consideration paid, net of cash acquired | $ 44 | |||||
Business acquisition, net of cash acquired | $ 25.9 | |||||
Common stock, shares issued | 370,276 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Assets Measured at fair value | $ 12.5 | $ 12.1 |
Liabilities | ||
Liabilities measured at fair value | 1.5 | 7 |
Interest Rate Swap Contract [Member] | ||
Assets | ||
Assets Measured at fair value | 12.4 | 11.1 |
Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 0.1 | 1 |
Liabilities | ||
Liabilities measured at fair value | 0.1 | 0.3 |
Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 1.4 | 6.7 |
Level 2 [Member] | ||
Assets | ||
Assets Measured at fair value | 12.5 | 12.1 |
Liabilities | ||
Liabilities measured at fair value | 0.1 | 0.3 |
Level 2 [Member] | Interest Rate Swap Contract [Member] | ||
Assets | ||
Assets Measured at fair value | 12.4 | 11.1 |
Level 2 [Member] | Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 0.1 | 1 |
Liabilities | ||
Liabilities measured at fair value | 0.1 | 0.3 |
Level 3 [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 1.4 | 6.7 |
Level 3 [Member] | Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | $ 1.4 | $ 6.7 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Beginning Balance | $ 6.7 |
Change in estimated fair value | 0.3 |
Payment on liability | (6.1) |
Accretion in value | 0.5 |
Ending Balance | $ 1.4 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Summary of inventories | ||
Raw materials | $ 117.7 | $ 119.2 |
Work in process | 56.8 | 41.6 |
Finished goods | 44.3 | 40.8 |
Provision for obsolete and slow moving inventory | (10.1) | (10) |
Total | $ 208.7 | $ 191.6 |
Operating Leases (Details Textu
Operating Leases (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Leases [Line Items] | ||
Operating lease cost | $ 5,000 | $ 5,100 |
Minimum [Member] | ||
Leases [Line Items] | ||
Operating leases, remaining lease term | 1 year | |
Maximum [Member] | ||
Leases [Line Items] | ||
Operating leases, remaining lease term | 8 years |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Right-of-use assets | $ 22.3 | $ 19.2 |
Current lease liabilities | $ 4.1 | $ 5.8 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Expenses And Current Liabilities | Other Accrued Expenses And Current Liabilities |
Non-current lease liabilities | $ 19.3 | $ 14.5 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total lease liabilities | $ 23.4 | $ 20.3 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
Weighted average remaining lease term (in years): | 6 years 1 month 6 days | |
Weighted average discount rate: | 5.90% |
Operating Leases (Details 1)
Operating Leases (Details 1) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 5 | $ 5.2 |
Non-cash impact of new leases and lease modifications | $ 7.6 | $ 1 |
Operating Leases (Details 2)
Operating Leases (Details 2) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
2023 Remaining | $ 1.7 | |
2024 | 4.9 | |
2025 | 4.7 | |
2026 | 4.2 | |
2027 | 3.2 | |
2028 | 2.7 | |
Thereafter | 7.3 | |
Total lease payments | 28.7 | |
Less: Imputed interest | (5.3) | |
Total lease liabilities | 23.4 | $ 20.3 |
Less: Current lease liabilities | (4.1) | (5.8) |
Non-current lease liabilities | $ 19.3 | $ 14.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 468.5 |
Goodwill acquired | 37.7 |
Currency translation | (3.5) |
Goodwill, Ending Balance | 502.7 |
Schultes | |
Goodwill [Line Items] | |
Goodwill acquired | 11.8 |
i3 Product Development [Member] | |
Goodwill [Line Items] | |
Goodwill acquired | 25.9 |
Hydraulics [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 282.5 |
Currency translation | (3.3) |
Goodwill, Ending Balance | 291 |
Hydraulics [Member] | Schultes | |
Goodwill [Line Items] | |
Goodwill acquired | 11.8 |
Hydraulics [Member] | i3 Product Development [Member] | |
Goodwill [Line Items] | |
Goodwill acquired | 0 |
Electronics [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 186 |
Currency translation | (0.2) |
Goodwill, Ending Balance | 211.7 |
Electronics [Member] | Schultes | |
Goodwill [Line Items] | |
Goodwill acquired | 0 |
Electronics [Member] | i3 Product Development [Member] | |
Goodwill [Line Items] | |
Goodwill acquired | $ 25.9 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 562.1 | $ 517.6 |
Accumulated Amortization | (135.7) | (112) |
Net Carrying Amount | 426.4 | 405.6 |
Trade names and brands [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 94.7 | 87.5 |
Accumulated Amortization | (22.3) | (18.5) |
Net Carrying Amount | 72.4 | 69 |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2 | 2.1 |
Accumulated Amortization | (1) | (0.7) |
Net Carrying Amount | 1 | 1.4 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 53.8 | 50.8 |
Accumulated Amortization | (25.3) | (21.3) |
Net Carrying Amount | 28.5 | 29.5 |
Supply agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21 | 21 |
Accumulated Amortization | (14.4) | (12.8) |
Net Carrying Amount | 6.6 | 8.2 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 383.1 | 349.4 |
Accumulated Amortization | (68.4) | (56.1) |
Net Carrying Amount | 314.7 | 293.3 |
Sales order backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1.4 | 0.7 |
Accumulated Amortization | (1.2) | (0.4) |
Net Carrying Amount | 0.2 | 0.3 |
Workforce [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6.1 | 6.1 |
Accumulated Amortization | (3.1) | (2.2) |
Net Carrying Amount | $ 3 | $ 3.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 8.2 | $ 6.8 | $ 24.7 | $ 20.6 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details 2) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 Remaining | $ 8.2 | |
2024 | 31.9 | |
2025 | 31.7 | |
2026 | 30 | |
2027 | 26.7 | |
2028 | 26.2 | |
Thereafter | 271.7 | |
Net Carrying Amount | $ 426.4 | $ 405.6 |
Derivative Instruments & Hedg_3
Derivative Instruments & Hedging Activities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Derivatives Fair Value [Line Items] | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Total Asset Derivatives, Fair Value | [1] | $ 12.5 | $ 12.1 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | Liabilities, Current | |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | |
Total Liability Derivatives, Fair Value | [1] | $ 0.1 | $ 0.3 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swap Contract [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives Non-current, Fair Value | [1] | 12.4 | 11.1 |
Liability Derivatives Non-current, Fair Value | [1] | 0 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives Current, Fair Value | [1] | 0.1 | 1 |
Asset Derivatives Non-current, Fair Value | [1] | 0 | 0 |
Liability Derivatives Current, Fair Value | [1] | 0.1 | 0 |
Liability Derivatives Non-current, Fair Value | [1] | $ 0 | $ 0.3 |
[1] See Note 4 for information regarding the inputs used in determining the fair value of derivative assets and liabilities. |
Derivative Instruments & Hedg_4
Derivative Instruments & Hedging Activities (Details 1) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss), Foreign Currency Transaction, before Tax | Gain (Loss), Foreign Currency Transaction, before Tax |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Contract [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | $ 1.4 | $ 13.7 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Contract [Member] | Interest Expense, Net [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) | 5.2 | (1.4) |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | $ (0.1) | $ 6.4 |
Derivative Instruments & Hedg_5
Derivative Instruments & Hedging Activities (Details Textual) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) Contract | Oct. 01, 2022 USD ($) | Sep. 30, 2023 USD ($) Contract | Oct. 01, 2022 USD ($) | Sep. 30, 2023 EUR (€) Contract | Dec. 31, 2022 USD ($) | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Interest expense | $ (8.7) | $ (4.1) | $ (22.6) | $ (11.7) | ||
Carrying value of total long term non-revolving debt | 326.7 | 326.7 | $ 183.6 | |||
Loss on derivative hedge recorded in AOCI as a part of currency translation adjustment | 0.9 | |||||
Europe [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Carrying value of total long term non-revolving debt | $ 95.2 | $ 95.2 | ||||
Revolving Credit Facility [Member] | Europe [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Net investment hedge | € | € 90 | |||||
Forward Foreign Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Derivative instrument, notional amount | € | € 4.5 | |||||
Derivative contract expire date | Mar. 31, 2024 | |||||
Derivative, number of instruments held | Contract | 2 | 2 | 2 | |||
Cash Flow Hedging [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Interest expense | $ (22.6) | $ (11.7) | ||||
Cash Flow Hedging [Member] | Interest Rate Swap Contract [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Derivative instrument, notional amount | $ 220 | $ 220 | ||||
Cash Flow Hedging [Member] | Interest Rate Swap Contract [Member] | Minimum [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Derivative contract expire date | Oct. 31, 2025 | |||||
Cash Flow Hedging [Member] | Interest Rate Swap Contract [Member] | Maximum [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Derivative contract expire date | Apr. 28, 2028 |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total non-revolving debt | $ 326.7 | $ 183.6 |
Less: current portion of long-term non-revolving debt | 21.8 | 19 |
Less: unamortized debt issuance costs | 0.7 | 0.4 |
Total long-term non-revolving debt | 304.2 | 164.2 |
PNC Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total non-revolving debt | $ 313.8 | 175 |
Term loan, Maturity Date | Oct 2025 | |
Citibank [Member] | ||
Debt Instrument [Line Items] | ||
Total non-revolving debt | $ 12.9 | $ 8.6 |
Other long-term debt, Maturity Date | Various |
Credit Facilities (Details 1)
Credit Facilities (Details 1) - Revolving Credit Facility [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
PNC Bank [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct 2025 | |
Revolving lines of credit | $ 217.2 | $ 261.3 |
Available Credit | $ 180.8 | 138.1 |
Citibank [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun 2026 | |
Revolving lines of credit | $ 1.3 | 1.6 |
Available Credit | $ 2.5 | $ 0.7 |
Credit Facilities (Details 2)
Credit Facilities (Details 2) $ in Millions | Sep. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 Remaining | $ 5.8 |
2024 | 23.4 |
2025 | 508.5 |
2026 | 7.5 |
Total | $ 545.2 |
Credit Facilities (Details Text
Credit Facilities (Details Textual) € in Millions, ¥ in Millions, $ in Millions, $ in Millions | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 EUR (€) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 AUD ($) | |
Amended Credit Agreement [Member] | Term Loan [Member] | In May 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Future debt increase ability under current credit facility | $ 300 | |||||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facilities, maximum borrowing capacity | $ 400 | |||||
Net investment hedge | € | € 90 | |||||
Effective interest rate | 7.40% | 7.40% | 7.40% | 7.40% | ||
Interest expense recognized | $ 27.5 | $ 9.8 | ||||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Amended Credit Agreement [Member] | In May 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Term Loan A-2 Interest Rate Option SOFR Adjustment | 0.10% | 0.10% | 0.10% | 0.10% | ||
Term Loan A-2 Interest Rate Option Overnight Bank Funding Rate Margin | 0.50% | 0.50% | 0.50% | 0.50% | ||
Term Loan A-2 Interest Rate Option SOFR Adjustment Margin | 1% | 1% | 1% | 1% | ||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Amended Credit Agreement [Member] | In May 2023 | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term Loan A-2 Interest Rate Option Applicable Margin - Low | 1.50% | 1.50% | 1.50% | 1.50% | ||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Amended Credit Agreement [Member] | In May 2023 | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term Loan A-2 Interest Rate Option Applicable Margin - High | 2.75% | 2.75% | 2.75% | 2.75% | ||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Amended Credit Agreement [Member] | Term Loan [Member] | In May 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Issue Price Percent of Principle - Term Loan A2 | 100% | |||||
Aggregate principal amount | $ 150 | |||||
Term Loan A-2 Interest Rate Option SOFR Floor | 0% | 0% | 0% | 0% | ||
Term Loan A-2 Interest Rate Option SOFR Adjustment | 0.10% | 0.10% | 0.10% | 0.10% | ||
Maturity date | Oct. 28, 2025 | Oct. 28, 2025 | Oct. 28, 2025 | Oct. 28, 2025 | ||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Amended Credit Agreement [Member] | Term Loan [Member] | In May 2023 | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term Loan A-2 Interest Rate Option Applicable Margin - Low | 0.50% | 0.50% | 0.50% | 0.50% | ||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Amended Credit Agreement [Member] | Term Loan [Member] | In May 2023 | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term Loan A-2 Interest Rate Option Applicable Margin - High | 1.75% | 1.75% | 1.75% | 1.75% | ||
Citibank [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | ABBS reference rate plus 2.3%. | |||||
Citibank [Member] | Revolving Credit Facility [Member] | In June 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Final payment due date | Jun. 30, 2026 | |||||
Citibank [Member] | Fixed Asset Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrows amount | ¥ | ¥ 2.6 | |||||
Interest rate | 1-year loan prime rate plus 1.5% | |||||
Final payment due date | May 31, 2023 | |||||
Citibank [Member] | Working Capital Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1-year loan prime rate plus 0.5% | |||||
Final payment due date | May 31, 2023 | |||||
Maximum borrow amounts under agreement | ¥ | 16 | |||||
Citibank [Member] | Shanghai Branch Term Loan Facility [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrows amount | ¥ | ¥ 42.7 | |||||
Interest rate | 1-year loan prime rate plus 1.5% | |||||
Final payment due date | Oct. 31, 2024 | |||||
Citibank [Member] | Sydney Branch Term Loan Facility [Member] | In June 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facilities, maximum borrowing capacity | $ 6 | |||||
Borrows amount | 15 | |||||
Citibank [Member] | Sydney Branch Term Loan Facility [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrows amount | $ 7.5 | |||||
Interest rate | Australian Bank Bill Swap ("ABBS") reference rate plus 2.0% | |||||
Final payment due date | Dec. 31, 2024 | |||||
Citibank [Member] | Sydney Branch Term Loan Facility [Member] | Term Loan [Member] | In June 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | ABBS reference rate plus 2.8% | |||||
Final payment due date | Jun. 30, 2026 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Income Tax Contingency [Line Items] | ||||
Provision of Income Tax | 30.50% | 23.60% | 23.80% | 22.70% |
Unrecognized tax benefit | $ 7,700 | $ 7,700 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 1,800 | $ 1,800 | ||
Federal returns currently under examination | The Company is currently under state audit and remains subject to income tax examinations in various state and foreign jurisdictions for tax years 2017-2022. The Company believes it has adequately reserved for income taxes that could result from any audit adjustments. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested Number of shares | 304,000 | 217,000 | |
Stock option granted, shares | 225,000 | ||
Stock-based compensation expense | $ 9.2 | $ 6.2 | |
2023 Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options Granted | 1,000,000 | ||
2019 and 2023 Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock option granted, shares | 13,809 | ||
Stock-based compensation expense | $ 1 | ||
2019 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock option granted, shares | 13,137 | ||
Stock-based compensation expense | $ 0.3 | ||
Employee Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Rate of common stock at market value | 85% | ||
Employee Stock Purchase Plan and U.K. Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares purchased by employees | 32,004 | 28,960 | |
Weighted average price | $ 49.35 | $ 54.29 | |
Share-based compensation expenses | $ 0.4 | $ 0.3 | |
Ratio for additional common stock shares issued, under ESPP | 6 | ||
Monte Carlo Valuation Model [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Monte Carlo Valuation Model [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Time Based [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance Based [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 6.5 | 5.6 | |
Unvested Number of shares | 129,962 | ||
RSUs [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Target amount percentage | 0% | ||
RSUs [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Target amount percentage | 200% | ||
Employee Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Recognized weighted average period (in years) | 9 months 18 days | ||
Unrecognized compensation cost related to the stock options | $ 0.1 | ||
Stock-based compensation expense | $ 1.3 | $ 0.1 | |
Employee Stock Option [Member] | Monte Carlo Valuation Model [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Contractual term of stock options | 10 years | ||
Unvested options | 68,000 | ||
Vested unexercised options | 0 | ||
Exercise price per share | $ 50.6 | ||
Employee Stock Option [Member] | Black Scholes Valuation Model [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Contractual term of stock options | 10 years | ||
Unvested options | 4,999 | ||
Vested unexercised options | 19,234 | ||
Exercise prices per share, lower range limit | $ 35.04 | ||
Exercise prices per share, upper range limit | $ 55.03 | ||
Restricted Stock and Restricted Stock Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation | $ 10.8 | ||
Recognized weighted average period (in years) | 1 year 9 months 18 days |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested Beginning balance Number of shares | shares | 217 |
Granted, Number of shares | shares | 225 |
Vested, Number of shares | shares | (94) |
Forfeited, Number of shares | shares | (44) |
Nonvested Ending balance Number of shares | shares | 304 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Nonvested Beginning balance, Weighted average grant-date fair value | $ / shares | $ 66.98 |
Granted, Weighted average grant-date fair value | $ / shares | 56.75 |
Vested, Weighted average grant-date fair value | $ / shares | 53.51 |
Forfeited, Weighted average grant-date fair value | $ / shares | 65.35 |
Nonvested Ending balance, Weighted average grant-date fair value | $ / shares | $ 63.78 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 794.9 | $ 709 |
Ending Balance | 842 | 751.4 |
Unrealized Gains and (Losses) on Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 8.5 | (1.4) |
Other comprehensive income (loss) before reclassifications | (2.6) | 14.8 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 4 | (1.1) |
Tax effect | (0.4) | (3.2) |
Net current period other comprehensive income (loss) | 1 | 10.5 |
Ending Balance | 9.5 | 9.2 |
Foreign Currency Items [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (67.9) | (47.6) |
Other comprehensive income (loss) before reclassifications | (7.6) | (59.7) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Tax effect | 1.1 | 12.6 |
Net current period other comprehensive income (loss) | (6.5) | (47.1) |
Ending Balance | (74.4) | (94.7) |
Accumulated other comprehensive income (loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (59.4) | (49) |
Other comprehensive income (loss) before reclassifications | (10.2) | (44.9) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 4 | (1.1) |
Tax effect | 0.7 | 9.4 |
Net current period other comprehensive income (loss) | (5.5) | (36.5) |
Ending Balance | $ (64.9) | $ (85.5) |
Segment Reporting (Details Text
Segment Reporting (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 USD ($) Segment | Oct. 01, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 2 | |||
Amortization of intangible assets | $ 8,200 | $ 6,800 | $ 24,700 | $ 20,600 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated costs | 29,100 | |||
Corporate costs not deemed allocable to either business segment | 1,000 | |||
Amortization of intangible assets | 24,700 | |||
Other acquisition and integration expenses | $ 3,400 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 201.4 | $ 207.2 | $ 642.2 | $ 689.4 | |
Operating income | 13.8 | 30.7 | 68 | 116.6 | |
Capital expenditures | 5.8 | 8.4 | 25.5 | 21.9 | |
Total assets | 1,590.6 | 1,590.6 | $ 1,463.7 | ||
Operating Segments [Member] | Hydraulics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 132 | 131.2 | 432.1 | 411.1 | |
Operating income | 18.4 | 29.4 | 73.3 | 92.1 | |
Capital expenditures | 4.5 | 5.6 | 19.5 | 13.9 | |
Total assets | 962.6 | 962.6 | 874.8 | ||
Operating Segments [Member] | Electronics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 69.4 | 76 | 210.1 | 278.3 | |
Operating income | 4.2 | 11 | 23.8 | 51.8 | |
Capital expenditures | 1.3 | 2.9 | 6 | 8 | |
Total assets | 605.1 | 605.1 | 567.1 | ||
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | (8.8) | $ (9.6) | (29.1) | $ (27.3) | |
Total assets | $ 22.9 | $ 22.9 | $ 21.8 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Net sales | |||||
Net Sales | $ 201.4 | $ 207.2 | $ 642.2 | $ 689.4 | |
Tangible long-lived assets | |||||
Tangible long-lived assets | 198 | 198 | $ 156.5 | ||
Americas [Member] | |||||
Net sales | |||||
Net Sales | 115.1 | 114.7 | 351.9 | 365.6 | |
Tangible long-lived assets | |||||
Tangible long-lived assets | 145.8 | 145.8 | 105.7 | ||
EMEA [Member] | |||||
Net sales | |||||
Net Sales | 44.5 | 49 | 158.9 | 175 | |
Tangible long-lived assets | |||||
Tangible long-lived assets | 33.9 | 33.9 | 33.1 | ||
APAC [Member] | |||||
Net sales | |||||
Net Sales | 41.8 | $ 43.5 | 131.4 | $ 148.8 | |
Tangible long-lived assets | |||||
Tangible long-lived assets | $ 18.3 | $ 18.3 | $ 17.7 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 131,200 | $ 125,100 | |
Inventory Transactions [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts Receivable, after Allowance for Credit Loss, Current | 300 | $ 400 | |
Revenue From Related Parties | $ 2,800 | $ 2,100 |