Cover
Cover - shares | 6 Months Ended | |
Jul. 02, 2023 | Aug. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 02, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-14962 | |
Entity Registrant Name | CIRCOR INTERNATIONAL, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3477276 | |
Entity Address, Address Line One | 30 Corporate Drive, Suite 200 | |
Entity Address, City or Town | Burlington, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01803-4238 | |
City Area Code | 781 | |
Local Phone Number | 270-1200 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CIR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,391,768 | |
Entity Central Index Key | 0001091883 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 58,637 | $ 64,275 |
Trade accounts receivable, net | 112,763 | 109,754 |
Inventories | 166,955 | 139,786 |
Prepaid expenses and other current assets | 124,379 | 117,766 |
Total Current Assets | 462,734 | 431,581 |
PROPERTY, PLANT AND EQUIPMENT, NET | 141,540 | 141,141 |
OTHER ASSETS: | ||
Goodwill | 119,739 | 119,847 |
Intangibles, net | 241,131 | 256,338 |
Lease right-of-use assets, net | 41,005 | 42,491 |
Deferred income taxes | 508 | 512 |
Other assets | 20,089 | 20,777 |
TOTAL ASSETS | 1,026,746 | 1,012,687 |
CURRENT LIABILITIES: | ||
Accounts payable | 76,872 | 78,778 |
Accrued expenses and other current liabilities | 96,971 | 84,510 |
Accrued compensation and benefits | 28,413 | 30,817 |
Total Current Liabilities | 202,256 | 194,105 |
LONG-TERM DEBT | 510,851 | 496,534 |
DEFERRED INCOME TAXES | 18,305 | 18,238 |
PENSION LIABILITY, NET | 87,445 | 85,968 |
LONG-TERM LEASE LIABILITIES | 37,011 | 38,480 |
OTHER NON-CURRENT LIABILITIES | 17,830 | 20,316 |
COMMITMENTS AND CONTINGENCIES (NOTE 10) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding at July 2, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.01 par value; 29,000,000 shares authorized; 21,764,256 and 21,736,911 issued at July 2, 2023 and December 31, 2022, respectively | 218 | 218 |
Additional paid-in capital | 457,952 | 456,102 |
Accumulated deficit | (187,671) | (178,693) |
Common treasury stock, at cost (1,372,488 shares at July 2, 2023 and December 31, 2022) | (74,472) | (74,472) |
Accumulated other comprehensive loss, net of tax | (42,979) | (44,109) |
Total Shareholders’ Equity | 153,048 | 159,046 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,026,746 | $ 1,012,687 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 02, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 29,000,000 | 29,000,000 |
Common stock, shares issued (in shares) | 21,764,256 | 21,736,911 |
Treasury stock (in shares) | 1,372,488 | 1,372,488 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Income Statement [Abstract] | ||||
Net revenues | $ 208,809 | $ 191,376 | $ 411,906 | $ 377,031 |
Cost of revenues | 140,224 | 133,171 | 269,255 | 263,543 |
Gross profit | 68,585 | 58,205 | 142,651 | 113,488 |
Selling, general and administrative expenses | 53,846 | 52,057 | 108,511 | 110,127 |
Total special and restructuring charges (recoveries), net | 5,195 | (5,730) | 6,680 | 3,272 |
Operating income | 9,544 | 11,878 | 27,460 | 89 |
Other expense (income): | ||||
Interest expense, net | 14,957 | 10,203 | 29,485 | 19,659 |
Other (income), net | (1,130) | (1,638) | (916) | (2,924) |
Total other expense, net | 13,827 | 8,565 | 28,569 | 16,735 |
(Loss) income before income taxes | (4,283) | 3,313 | (1,109) | (16,646) |
Provision for (benefit from) income taxes | 4,288 | (647) | 7,869 | 875 |
Net (Loss) income | $ (8,571) | $ 3,960 | $ (8,978) | $ (17,521) |
Basic (loss) income per common share: | ||||
Net loss per share - basic (in USD per share) | $ (0.42) | $ 0.19 | $ (0.44) | $ (0.86) |
Diluted (loss) income per common share: | ||||
Net loss per share - diluted (in USD per share) | $ (0.42) | $ 0.19 | $ (0.44) | $ (0.86) |
Weighted-average common shares | ||||
Weighted-average common shares - basic (in shares) | 20,392 | 20,361 | 20,380 | 20,336 |
Weighted-average common shares - diluted (in shares) | 20,392 | 20,428 | 20,380 | 20,336 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net (Loss) income | $ (8,571) | $ 3,960 | $ (8,978) | $ (17,521) | |
Other comprehensive (loss) income, net of tax: | |||||
Foreign currency translation adjustments | (837) | (8,375) | 1,228 | (11,450) | |
Interest rate swap adjustments | [1] | 0 | (2,381) | 0 | (688) |
Pension adjustment | (49) | 46 | (98) | 97 | |
Other comprehensive (loss) income, net of tax | (886) | (10,710) | 1,130 | (12,041) | |
COMPREHENSIVE INCOME (LOSS) | $ (9,457) | $ (6,750) | $ (7,848) | $ (29,562) | |
[1]Net of an income tax effect of $0.0 million for the three months ended Julyl 2, 2023.. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Interest rate swap adjustments, tax effect | $ 0 | $ 2.5 | $ 0 | $ 2.5 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2023 | Jul. 03, 2022 | |
OPERATING ACTIVITIES | ||
Net loss | $ (8,978) | $ (17,521) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 9,769 | 10,056 |
Amortization | 15,941 | 18,580 |
Change in provision for bad debt expense | (403) | (221) |
Write down of inventory | 1,938 | 1,181 |
Compensation expense for share-based plans | 2,323 | 375 |
Loss on debt extinguishment | 0 | 4,977 |
Amortization of debt issuance costs | 1,951 | 1,649 |
(Gain) on sale of real estate | 0 | (22,008) |
Other impairment charges | 0 | 8,011 |
Loss on deconsolidation charges | 0 | 4,675 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 266 | 3,283 |
Inventories | (28,112) | (20,548) |
Prepaid expenses and other assets | (7,552) | (16,947) |
Accounts payable, accrued expenses and other liabilities | 1,036 | 4,941 |
Net cash used in operating activities | (11,821) | (19,517) |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (11,054) | (9,133) |
Proceeds from the sale of property, plant and equipment | 39 | 80 |
Proceeds from sale of real estate | 0 | 26,433 |
Supplier funding (Note 2) | 3,386 | 0 |
Proceeds from beneficial interest of factored receivables | 2,197 | 2,336 |
Net cash (used in) provided by investing activities | (5,432) | 19,716 |
FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 100,050 | 124,016 |
Payments of long-term debt | (87,400) | (105,616) |
Net change in short-term borrowings | 0 | (1,573) |
Withholding tax payments on net share settlements on equity awards | (472) | (1,187) |
Payment of debt issuance costs | 0 | (16,701) |
Net cash provided by (used in) financing activities | 12,178 | (1,061) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 487 | (3,848) |
(DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (4,588) | (4,710) |
Cash, cash equivalents, and restricted cash at beginning of period | 66,724 | 61,374 |
Cash, cash equivalents, and restricted cash at end of period | $ 62,136 | $ 56,664 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance (in shares) at Dec. 31, 2021 | 20,261 | |||||
Balance at beginning of period at Dec. 31, 2021 | $ 133,716 | $ 217 | $ 454,852 | $ (198,081) | $ (48,800) | $ (74,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (21,481) | (21,481) | ||||
Other comprehensive income (loss), net of tax | (1,331) | (1,331) | ||||
Conversion of restricted stock units (shares) | 50 | |||||
Conversion of restricted stock units | (499) | (499) | ||||
Share-based plan compensation | (84) | (84) | ||||
Balance (in shares) at Apr. 03, 2022 | 20,311 | |||||
Balance at end of period at Apr. 03, 2022 | 110,321 | $ 217 | 454,269 | (219,562) | (50,131) | (74,472) |
Balance (in shares) at Dec. 31, 2021 | 20,261 | |||||
Balance at beginning of period at Dec. 31, 2021 | 133,716 | $ 217 | 454,852 | (198,081) | (48,800) | (74,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (17,521) | |||||
Other comprehensive income (loss), net of tax | (12,041) | |||||
Balance (in shares) at Jul. 03, 2022 | 20,352 | |||||
Balance at end of period at Jul. 03, 2022 | 103,663 | $ 217 | 454,361 | (215,602) | (60,841) | (74,472) |
Balance (in shares) at Apr. 03, 2022 | 20,311 | |||||
Balance at beginning of period at Apr. 03, 2022 | 110,321 | $ 217 | 454,269 | (219,562) | (50,131) | (74,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 3,960 | 3,960 | ||||
Other comprehensive income (loss), net of tax | (10,710) | (10,710) | ||||
Conversion of restricted stock units (shares) | 41 | |||||
Conversion of restricted stock units | (367) | $ 0 | (367) | |||
Share-based plan compensation | 459 | 459 | ||||
Balance (in shares) at Jul. 03, 2022 | 20,352 | |||||
Balance at end of period at Jul. 03, 2022 | 103,663 | $ 217 | 454,361 | (215,602) | (60,841) | (74,472) |
Balance (in shares) at Dec. 31, 2022 | 20,364 | |||||
Balance at beginning of period at Dec. 31, 2022 | 159,046 | $ 218 | 456,102 | (178,693) | (44,109) | (74,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (407) | (407) | ||||
Other comprehensive income (loss), net of tax | 2,016 | 2,016 | ||||
Conversion of restricted stock units (shares) | 26 | |||||
Conversion of restricted stock units | (450) | (450) | ||||
Share-based plan compensation | 1,033 | 1,033 | ||||
Balance (in shares) at Apr. 02, 2023 | 20,390 | |||||
Balance at end of period at Apr. 02, 2023 | 161,238 | $ 218 | 456,685 | (179,100) | (42,093) | (74,472) |
Balance (in shares) at Dec. 31, 2022 | 20,364 | |||||
Balance at beginning of period at Dec. 31, 2022 | 159,046 | $ 218 | 456,102 | (178,693) | (44,109) | (74,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (8,978) | |||||
Other comprehensive income (loss), net of tax | 1,130 | |||||
Balance (in shares) at Jul. 02, 2023 | 20,392 | |||||
Balance at end of period at Jul. 02, 2023 | 153,048 | $ 218 | 457,952 | (187,671) | (42,979) | (74,472) |
Balance (in shares) at Apr. 02, 2023 | 20,390 | |||||
Balance at beginning of period at Apr. 02, 2023 | 161,238 | $ 218 | 456,685 | (179,100) | (42,093) | (74,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (8,571) | (8,571) | ||||
Other comprehensive income (loss), net of tax | (886) | (886) | ||||
Conversion of restricted stock units (shares) | 2 | |||||
Conversion of restricted stock units | (23) | (23) | ||||
Share-based plan compensation | 1,290 | 1,290 | ||||
Balance (in shares) at Jul. 02, 2023 | 20,392 | |||||
Balance at end of period at Jul. 02, 2023 | $ 153,048 | $ 218 | $ 457,952 | $ (187,671) | $ (42,979) | $ (74,472) |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jul. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of CIRCOR International, Inc. (“CIRCOR” or the “Company”) have been prepared according to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”) for interim reporting, along with accounting principles generally accepted in the U.S. (“GAAP”). The unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal and recurring items) necessary for a fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented. The Company prepares its interim financial information using the same accounting principles it uses for its annual audited consolidated financial statements. Certain information and note disclosures normally included in the annual audited consolidated financial statements have been condensed or omitted in accordance with SEC rules. The Company believes that the disclosures made in its unaudited condensed consolidated financial statements and the accompanying notes are adequate to make the information presented not misleading. The unaudited results of operations for interim periods reported are not necessarily indicative of the results for the full year or any other period. The condensed consolidated balance sheet as of December 31, 2022 was derived from CIRCOR’s audited consolidated financial statements as of that date but does not include all of the information and notes required for annual financial statements. The Company recommends that the financial statements included in this Quarterly Report on Form 10-Q be read in conjunction with the consolidated financial statements and notes included in its Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 Annual Report"). CIRCOR operates and reports financial information using a fiscal year ending December 31. The data periods contained within its Quarterly Reports on Form 10-Q reflect the results of operations for the 13-week, 26-week and 39-week periods which generally end on the Sunday nearest to the calendar quarter-end date. Operating results for the three and six months ended July 2, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or any future period. Unless otherwise indicated, all financial information and statistical data included in these notes to the Company's condensed consolidated financial statements relate to its continuing operations, with dollar amounts expressed in thousands (except share and per-share data). Proposed Merger with Cube BidCo, Inc. On June 5, 2023, the Company entered into an Agreement and Plan of Merger as amended on June 26, 2023 by Amendment No. 1, as further amended on June 29, 2023 by Amendment No. 2, and as may be further amended, modified or supplemented from time to time, the “Merger Agreement”), by and among CIRCOR, Cube BidCo, Inc. (“Parent”), and Cube Merger Sub, Inc., a wholly owned subsidiary of Parent (“Merger Sub”). The Merger Agreement provides that, upon the terms and subject to the satisfaction or waiver of conditions set forth therein, Merger Sub will merge with and into the Company, and the separate corporate existence of Merger Sub will thereupon cease, with the Company continuing as the surviving corporation and as a wholly owned subsidiary of Parent (the “Merger”) in accordance with the General Corporation Law of the State of Delaware. Parent and Merger Sub are affiliates of investment funds managed by Kohlberg Kravis & Roberts & Co. L.P., a global investment firm. If the Merger is completed, each share of Company common stock, par value $0.01 per share, will be converted into the right to receive (x) an amount in cash equal to $56.00 and (y) solely in the event the consummation of the Merger occurs after November 1, 2023, an amount in cash equal to the product of (x) (A) $1.00 divided by (B) 61 and multiplied by (y) the number of calendar days elapsed during the period commencing on, and including, November 1, 2023, and ending on, and including, the earlier of December 31, 2023 and the closing date of the Merger, in each case, without interest thereon, less any applicable withholding taxes. The Merger Agreement contains customary representations and covenants that the Company must observe, including certain interim operating covenants that may restrict the Company's operations during the pendency of the Merger, subject to certain exceptions. If the Merger is completed, certain change of control and severance provisions of the Company's compensation arrangements will be triggered at the closing of the Merger. In addition, the Merger Agreement also contains certain termination rights that may require the Company to pay Parent a $42,750,000 termination fee under certain circumstances. For additional details of the Merger and the terms thereof, refer to the Merger Agreement, and the amendments thereto copies of which are incorporated by reference as exhibits to this Quarterly Report on Form 10-Q. The Merger is presently expected to close not later than the fourth quarter of calendar year 2023, subject to customary closing conditions, including, without limitation, (i) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) and (ii) the requisite shareholder approval being received. The 30-day waiting period imposed by the HSR Act in connection with the Merger expired on July 20, 2023, without action by the Federal Trade Commission. The expiration of the HSR Act waiting period satisfies one of the conditions to the closing of the transaction The Company cannot predict with certainty, however, whether or when all the requiring closing conditions will be satisfied or if the Merger will close at all. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Jul. 02, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and six months ended July 2, 2023 are consistent with those discussed in Note 2 to the consolidated financial statements in the 2022 Annual Report. The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Some of the more significant estimates, which are impacted by management's estimates and assumptions regarding the effects of the COVID-19 pandemic, relate to recoverability of goodwill and indefinite-lived trade names, estimated total costs for ongoing long-term revenue contracts where transfer of control occurs over time, inventory valuation, share-based compensation, amortization and impairment of long-lived assets, income taxes (including valuation allowance), fair value of disposal group, pension benefit obligations, acquisition accounting, penalty accruals for late shipments, asset valuations, and product warranties. While management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ materially from those estimates. During the fourth quarter of 2022, the Company signed a supplier funding agreement with a customer. Under the terms of the agreement, the Company will receive funding up to $6.7 million in agreed milestones and in exchange for the funding received, the Company is required to purchase specified equipment to support manufacturing capacity and prioritize delivery of certain pump components. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 02, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company's revenue is derived from a variety of contracts. A significant portion of revenues are from contracts associated with the design, development, manufacture or modification of highly engineered, complex and severe environment products with customers who are either in or service the aerospace, defense and industrial markets. Contracts within the defense markets are primarily with U.S. military customers. These contracts typically are subject to the Federal Acquisition Regulations. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Contracts may be modified to account for changes in contract specifications and requirements. For revenue that is recognized from products and services transferred to customers over time, the Company uses an input measure (e.g., costs incurred to date relative to total estimated costs at completion, known as the “cost-to-cost” method) to measure progress. The Company uses the cost-to-cost measure of progress because it best depicts the transfer of control to the customer which occurs as it incurs costs on its contracts. Under the cost-to-cost measure of progress, revenue is recognized proportionally as costs are incurred. Contract costs include labor, materials and subcontractors’ costs, other direct costs and an allocation of overhead, as appropriate. As of July 2, 2023, the Company had $246.2 million of transaction price related to remaining performance obligations which, is invoiced and paid in accordance with terms of contractual agreements. The Company expects to recognize approximately 43% of its remaining performance obligations as revenue during the remainder of 2023, 45% in 2024, and the remaining 12% in 2025 and thereafter. In order to determine revenue recognized during the period from contract liabilities at the beginning of the period, the Company first allocates revenue to the individual contract liabilities balance outstanding at the beginning of the period until the revenue exceeds that balance. If additional advances are received on those contracts in the subsequent periods, the Company assumes all revenue recognized in the reporting period first applies to the beginning contract liability as opposed to a portion applying to the new advances for the period. Revenue recognized during the six months ended July 2, 2023 that was included in contract liabilities at the beginning of the period amounted to $19.1 million. Disaggregation of Revenue The following tables present revenue disaggregated by major product line and geographical market ( in thousands ): Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Aerospace & Defense Segment Commercial Aerospace & Other $ 40,058 $ 28,821 $ 72,316 $ 54,034 Defense 33,470 38,450 69,763 76,607 Total 73,528 67,271 142,079 130,641 Industrial Segment Valves 43,071 41,435 87,029 86,911 Pumps 92,210 82,670 182,798 159,479 Total 135,281 124,105 269,827 246,390 Net Revenues $ 208,809 $ 191,376 $ 411,906 $ 377,031 Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Aerospace & Defense Segment EMEA $ 21,813 $ 15,801 $ 39,739 $ 30,010 North America 42,918 46,963 88,082 92,160 Other 8,797 4,507 14,258 8,471 Total 73,528 67,271 142,079 130,641 Industrial Segment EMEA 51,462 51,216 111,103 105,858 North America 48,071 42,555 90,381 83,392 Other 35,748 30,334 68,343 57,140 Total 135,281 124,105 269,827 246,390 Net Revenues $ 208,809 $ 191,376 $ 411,906 $ 377,031 Contract Balances The Company’s contract assets and contract liabilities balances as of July 2, 2023 and December 31, 2022 are as follows ( in thousands ): July 2, 2023 December 31, 2022 Increase/(Decrease) Contract assets: Recorded within prepaid expenses and other current assets $ 95,319 $ 98,406 $ (3,087) Recorded within other assets 6,856 7,677 (821) $ 102,175 $ 106,083 $ (3,908) Contract liabilities: Recorded within accrued expenses and other current liabilities $ 42,861 $ 36,871 $ 5,990 Recorded within other non-current liabilities 2,699 5,149 (2,450) $ 45,560 $ 42,020 $ 3,540 Contract assets decreased by $3.9 million during the six months ended July 2, 2023, primar ily due to the reversal of $5.4 million of contract asset related to the Russian customer, as further discussed below. Excluding this reversal, the contract asset balance increased by $1.5 million primarily due to revenue recognized in excess of invoicing within the Defense business. Contract liabilities increased by $3.5 million during the six months ended July 2, 2023, primarily due t o customer advances received in excess of revenue recognized in the Industrial Pumps and Valves and Refinery Valves businesses, partially offset by recognition of revenue against customer advances within the Defense business. Revenue on over time contracts is recognized as the Company, in accordance with the terms of the applicable contract, transfers control in the underlying products or services to the customer, which occurs as it incurs costs on its contracts under the cost-to-cost measure of progress. Revenue on over time contracts may be recognized before or after payments, advances or progress billings from customers are received. The recognition of revenue on over time contracts before the Company can invoice the customer may result in contract assets. Receipt of progress billings or advances from customers in advance of recognizing revenue can result in contract liabilities. The contract assets and contract liabilities amounts presented above are determined at the contract level unit of account. At the contract level, the Company determines whether the contract is in a net contract asset or net contract liability position. Contract assets are generally classified between current (one year or less) and non-current (more than one year) based on factors such as when payments are due. Contract liabilities are generally classified as current or non-current based on factors such as the expected timing of performance obligation satisfaction. The Company had previously recognized $5.4 million in revenue and $3.5 million in related costs of revenues cumulatively over the period of 2019 through 2022 as part of a contract with a Russian customer within its Industrial segment. During the second quarter of 2023, the U.S. government imposed additional sanctions on exports to Russia prohibiting the delivery of the equipment under this contract. As as result, during the three months ended July 2, 2023, the Company concluded that it is unable to satisfy its performance obligation under the contract, and has reversed the $5.4 million revenue and the related contract assets recognized previously. Allowance for Credit Losses |
Special and Restructuring Charg
Special and Restructuring Charges (Recoveries), Net | 6 Months Ended |
Jul. 02, 2023 | |
Restructuring and Related Activities [Abstract] | |
Special and Restructuring Charges (Recoveries), Net | Special and Restructuring Charges (Recoveries), Net Special and restructuring charges (recoveries), net Special and restructuring charges (recoveries), net consist of restructuring costs (including costs to exit a product line or program) and certain special charges (recoveries) such as significant litigation settlements and other transactions (charges or recoveries) that are described below. All items described below are recorded in Special and restructuring charges (recoveries), net on the condensed consolidated statements of operations. Certain other special and restructuring charges (recoveries) such as inventory related items may be recorded in cost of revenues given the nature of the item. The table below summarizes the amounts recorded within the special and restructuring charges (recoveries), net line item on the condensed consolidated statements of operations for the three and six months ended July 2, 2023 and July 3, 2022 ( in thousands ): Special & restructuring charges (recoveries), net Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Special charges (recoveries), net $ 5,242 $ (10,425) $ 6,943 $ (7,870) Restructuring (recoveries) charges, net (47) 4,695 (263) 11,142 Total special and restructuring charges (recoveries), net $ 5,195 $ (5,730) $ 6,680 $ 3,272 Special charges (recoveries), net The table below details the special charges (recoveries), net, recognized for the three and six months ended July 2, 2023 and July 3, 2022 ( in thousands ): Special charges, net Three Months Ended July 2, 2023 Aerospace & Defense Industrial Corporate Total Strategic alternatives evaluation $ — $ — $ 4,257 $ 4,257 Other special charges, net — 577 408 985 Total special charges, net $ — $ 577 $ 4,665 $ 5,242 Special charges, net Six Months Ended July 2, 2023 Aerospace & Defense Industrial Corporate Total Strategic alternatives evaluation $ — $ — $ 5,506 $ 5,506 Other special charges — 962 475 1,437 Total special charges, net $ — $ 962 $ 5,981 $ 6,943 Strategic alternative evaluations costs: During the three and six months ended July 2, 2023, the Company recognized special charges of $4.3 million and $5.5 million, respectively, related to the evaluation of strategic alternatives for the Company. Other special charges: During the three and six months ended July 2, 2023, the special charges, net, includes a $0.4 million charge at Corporate, of which, $0.3 million relates to severance related expenses and $0.6 million charge at Industrial related to the write-off of a receivable with a customer in Russia, in connection with the additional sanctions imposed by the U.S. government on exports to Russia. Special (recoveries) charges, net Three Months Ended July 3, 2022 Aerospace & Defense Industrial Corporate Total Pipeline Engineering investigation and restatement costs $ — $ — $ 5,022 $ 5,022 Gain on real estate sales — (22,008) — (22,008) Strategic alternatives evaluation — — 945 945 Debt amendment charges — — 4,977 4,977 Other special charges (recoveries), net — 829 (190) 639 Total special (recoveries) charges, net $ — $ (21,179) $ 10,754 $ (10,425) Special (recoveries) charges, net Six Months Ended July 3, 2022 Aerospace & Defense Industrial Corporate Total Pipeline Engineering investigation and restatement costs $ — $ — $ 6,363 $ 6,363 Gain on real estate sales — (22,008) — (22,008) Strategic alternatives evaluation — — 945 945 Debt amendment charges — — 4,977 4,977 Other special charges — 965 888 1,853 Total special charges, net $ — $ (21,043) $ 13,173 $ (7,870) Pipeline Engineering investigation and restatement costs: During the three and six months ended July 3, 2022, the Company recognized special charges, net of $5.0 million and $6.4 million, respectively, related to the investigation into accounting irregularities at the Company's Pipeline Engineering businesses and incremental professional services charges incurred due to the restatement. Gain on real estate sales: During the three and six months ended July 3, 2022, the Company recognized a gain of $22.0 million on the sale of real estate within the Industrial segment located at Walden, New York and Tampa, Florida. The Company recognized a gain of $6.4 million and $15.6 million on each building, respectively. On April 8, 2022, the Company entered into a five five Strategic alternatives evaluation: The Company incurred special charges of $0.9 million for the three and six months ended July 3, 2022 related to the evaluation of strategic alternatives for the Company. Debt amendment charges: The Company incurred special charges of $5.0 million for the three and six months ended July 3, 2022 related to the amendments of its credit agreements. See Note 8, Financing Arrangements for amendment information. Other special charges, net: During the six months ended July 3, 2022, the Company recognized other special charges, net of $1.9 million. Other special charges, net within Corporate for the six months ended July 3, 2022 include a net $0.9 million for severance related to the former CEO, comprised of $1.7 million severance, partially offset by the accounting effects of forfeitures for certain unvested CEO stock based Compensation awards. Additionally, for the three and six months ended, July 3, 2022 the Company incurred other special charges of $0.8 million and $1.0 million, respectively within Industrial related to severance and contract termination costs, and other special charges. Restructuring charges (recoveries), net The tables below detail the charges associated with restructuring actions recorded for the three and six months July 2, 2023 and July 3, 2022. Accruals associated with the restructuring actions are recorded within "Accrued expenses and other current liabilities" on the condensed consolidated balance sheets (in thousands ): Restructuring recoveries, net Three Months Ended July 2, 2023 Aerospace & Defense Industrial Corporate Total Facility and other related recoveries, net $ — $ (47) $ — $ (47) Total restructuring recoveries, net $ — $ (47) $ — $ (47) Restructuring recoveries, net Six Months Ended July 2, 2023 Aerospace & Defense Industrial Corporate Total Facility and other related recoveries, net $ 3 $ (266) $ — $ (263) Total restructuring recoveries, net $ 3 $ (266) $ — $ (263) Accrued restructuring charges as of December 31, 2022 $ 837 Charges paid/settled, written-off, net (715) Accrued restructuring charges as of July 2, 2023 $ 122 The Company recorded a restructuring recovery of $0.3 million during the six months ended July 2, 2023, of which, $0.2 million relates to the termination of a leased building of the former Pipeline Engineering business within Industrial. Restructuring charges (recoveries), net Three Months Ended July 3, 2022 Aerospace & Defense Industrial Corporate Total Facility and other related charges (recoveries), net $ 3 $ 4,650 $ — $ 4,653 Employee related charges (recoveries), net 15 (6) 33 42 Total restructuring charges (recoveries), net $ 18 $ 4,644 $ 33 $ 4,695 Restructuring charges (recoveries), net Six Months Ended July 3, 2022 Aerospace & Defense Industrial Corporate Total Facility and other related charges (recoveries), net $ 3 $ 10,082 $ — $ 10,085 Employee related expenses, net 15 715 327 1,057 Total restructuring charges (recoveries), net $ 18 $ 10,797 $ 327 $ 11,142 Accrued restructuring charges as of December 31, 2021 $ 1,839 Total charges, net (shown above) 11,142 Charges paid/settled, written-off, net (12,041) Accrued restructuring charges as of July 3, 2022 $ 940 The Company recorded restructuring charges of $11.1 million during the six months ended July 3, 2022. Of the $11.1 million in total restructuring charges, $10.6 million related to the exit of the Pipeline Engineering business. The $10.6 million charge consists of $5.3 million in impairments, $0.6 million of termination benefits and $4.7 million of deconsolidation charges. Impairments of $5.3 million included $3.8 million related to the write downs of Property, Plant and Equipment, Right of Use Assets and Intangibles, which is a level three fair value measurement based on the expected cash proceeds from dispositions of the assets. In addition, the Company recorded $1.5 million in charges for write downs of working capital accounts, including primarily $1.0 million for accounts receivables. Included in the Industrial employee related expenses is $0.6 million in severance and termination benefits related to the exit of the Pipeline Engineering business. On April 14, 2022, the Company placed the Catterick, UK entity of the Pipeline Engineering business into Administration under the U.K. Insolvency Act of 1986 and the Insolvency (England and Wales) Rules 2016 (IR 2016). The loss of control triggered deconsolidation and recognition into earnings of the related cumulative translation adjustment out of accumulated other comprehensive loss in the amount of $5.3 million during the three and six months ended July 3, 2022. The deconsolidation also resulted in a gain within restructuring of $0.6 million related to the write down of net assets through deconsolidation. The Company determined the loss of control did not qualify for reporting as a discontinued operation as it did not meet the held-for-sale criteria and did not represent a strategic shift that has a major effect on the Company's operations and financial results. In addition, the Company recorded a charge of $2.8 million for write down of inventories related to the exit of the Pipeline Engineering business classified within cost of revenues on the condensed consolidated statements of operations. During the six months ended July 3, 2022, the Company recorded $0.3 million of employee related charges, not associated with the exit of the Pipeline Engineering business |
Inventories
Inventories | 6 Months Ended |
Jul. 02, 2023 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories consisted of the following as of July 2, 2023 and December 31, 2022 ( in thousands ): July 2, 2023 December 31, 2022 Raw materials $ 70,701 $ 59,431 Work in process 76,724 63,846 Finished goods 19,530 16,509 Total inventories $ 166,955 $ 139,786 |
Goodwill and Intangibles, net
Goodwill and Intangibles, net | 6 Months Ended |
Jul. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles, net | Goodwill and Intangibles, Net The following table shows the movement in goodwill by segment from December 31, 2022 to July 2, 2023 ( in thousands ): Aerospace & Defense Industrial Total Goodwill as of December 31, 2022 $ 57,381 $ 62,466 $ 119,847 Currency translation adjustments 27 (135) (108) Goodwill as of July 2, 2023 $ 57,408 $ 62,331 $ 119,739 The Company performs an impairment assessment for goodwill at the reporting-unit level and for its indefinite-life intangible assets on an annual basis during the fourth quarter, or more frequently if circumstances warrant. At July 2, 2023, the Company determined there were no indicators of impairment requiring interim assessment. The table below presents gross intangible assets and the related accumulated amortization as of July 2, 2023 ( in thousands ): July 2, 2023 Gross Accumulated Net Carrying Value Patents $ 5,368 $ (5,368) $ — Customer relationships 285,305 (161,171) 124,134 Acquired technology 132,243 (87,600) 44,643 Total Amortized Intangibles $ 422,916 $ (254,139) $ 168,777 Non-amortized intangibles (trademarks and trade names) $ 72,354 $ — $ 72,354 Net carrying value of intangible assets $ 241,131 December 31, 2022 Gross Accumulated Net Carrying Value Patents $ 5,368 $ (5,368) $ — Customer relationships 285,910 (151,258) 134,652 Acquired technology 132,601 (82,898) 49,703 Total Amortized Intangibles $ 423,879 $ (239,524) $ 184,355 Non-amortized intangibles (trademarks and trade names) $ 71,983 $ — $ 71,983 Net carrying value of intangible assets $ 256,338 Amortization of intangible assets was $15.9 million and $18.6 million for the six months ended July 2, 2023 and July 3, 2022, respectively. The table below presents estimated remaining annual amortization expense for intangible assets recorded as of July 2, 2023 (in thousands): 2023 2024 2025 2026 2027 After 2027 Estimated amortization expense $ 15,163 $ 27,553 $ 24,053 $ 20,919 $ 16,743 $ 64,346 |
Segment Information
Segment Information | 6 Months Ended |
Jul. 02, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationThe Company's Chief Operating Decision Maker (the “CODM”) evaluates segment operating performance using segment operating income. Segment operating income is defined as GAAP operating income excluding intangible amortization and amortization of fair value step-ups of inventory and fixed assets from acquisitions completed subsequent to December 31, 2011, the impact of restructuring related inventory write-offs, impairment charges and special charges or gains. The Company also refers to this measure as adjusted operating income. The Company uses this measure because it helps management understand and evaluate the segments’ core operating results and serves as the basis for determining incentive compensation achievement. The following tables present certain reportable segment information ( in thousands ): Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Net revenues Aerospace & Defense $ 73,528 $ 67,271 $ 142,079 $ 130,641 Industrial 135,281 124,105 269,827 246,390 Net revenues $ 208,809 $ 191,376 $ 411,906 $ 377,031 Results from operations before income taxes Aerospace & Defense - Segment Operating Income $ 15,239 $ 13,566 $ 29,954 $ 24,886 Industrial - Segment Operating Income 15,626 8,484 36,029 15,341 Corporate expenses (7,157) (5,485) (13,901) (13,255) Subtotal 23,708 16,565 52,082 26,972 Special charges (recoveries), net 5,242 (10,425) 6,943 (7,870) Restructuring (recoveries) charges, net (47) 4,695 (263) 11,142 Special and restructuring charges, net 5,195 (5,730) 6,680 3,272 Restructuring related inventory charges — — — 2,757 Acquisition amortization 8,010 9,178 15,930 18,569 Acquisition depreciation 959 1,239 2,012 2,285 Restructuring, impairment and other costs, net 8,969 10,417 17,942 23,611 Consolidated operating income 9,544 11,878 27,460 89 Interest expense, net 14,957 10,203 29,485 19,659 Other income, net (1,130) (1,638) (916) (2,924) (Loss) income before income taxes $ (4,283) $ 3,313 $ (1,109) $ (16,646) Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Capital expenditures Aerospace & Defense $ 1,247 $ 1,581 $ 2,425 $ 2,867 Industrial 4,711 3,597 8,658 5,260 Corporate 684 851 853 1,203 Consolidated capital expenditures $ 6,642 $ 6,029 $ 11,936 $ 9,330 Depreciation and amortization Aerospace & Defense $ 2,235 $ 2,737 $ 4,477 $ 5,258 Industrial 10,605 11,340 20,782 23,046 Corporate 232 162 451 332 Consolidated depreciation and amortization $ 13,072 $ 14,239 $ 25,710 $ 28,636 Identifiable assets July 2, 2023 December 31, 2022 Aerospace & Defense $ 580,715 $ 557,018 Industrial 1,268,602 1,261,996 Corporate (822,571) (806,327) Consolidated identifiable assets $ 1,026,746 $ 1,012,687 The total assets for each reportable segment have been reported as the Identifiable Assets for that segment, including inter-segment intercompany receivables, payables and investments in other CIRCOR subsidiaries. Identifiable assets reported in Corporate include both corporate assets, such as cash, deferred taxes, prepaid and other assets, and fixed assets, as well as the elimination of all inter-segment intercompany assets. The elimination of intercompany assets results in negative amounts reported in Corporate for Identifiable Assets. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jul. 02, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Arrangements | Financing Arrangements Fair Value The Company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy based on the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: • Level One : Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. • Level Two : Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level Three : Inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts of cash and cash equivalents, restricted cash, trade receivables and trade payables approximate fair value because of the short-term maturity of these financial instruments. Cash equivalents are carried at cost which approximates fair value at the balance sheet date and is a Level 1 financial instrument. As of July 2, 2023, the estimated fair value of the Company's gross debt (before netting debt issuance costs) was $532.6 million, compared to carrying cos t of $529.6 million . At December 31, 2022, the estimated fair value of the Company’s gross debt (before netting debt issuance costs) was $502.7 million, compared to carrying cost of $516.9 million. The Company’s outstanding debt balances are characterized as Level 2 financial instruments. Financial Instruments As of July 2, 2023 and December 31, 2022, the Company had restricted cash balances of $3.5 million and $2.4 million, respectively. These balances are recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets, and are included within cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows. The Company has a receivable purchasing agreement with a bank whereby the Company can sell selected accounts receivable and obtain 90% of the purchase price upfront, net of applicable discount fee, and obtain the residual amount as the receivables are collected. During the three and six months ended July 2, 2023, the Company sold a total of $11.1 million and $22.1 million, respectively, of receivables under the program, receiving $9.9 million and $19.8 million, respectively, in upfront cash. During the three and six months ended July 3, 2022, the Company sold a total of $11.3 million and $25.3 million, respectively, of receivables under the program, receiving $10.1 million and $22.8 million, respectively in upfront cash. At July 2, 2023 and July 3, 2022, a beneficial interest balance of $1.1 million and $1.1 million was recorded in prepaid expenses and other current assets on the condensed consolidated balance sheet, respectively. Effective April 2018, the Company entered into an interest rate swap agreement pursuant to an ISDA Master Agreement with Citizens Bank, National Association. The four-year interest rate swap had a fixed notional value of $400.0 million with a 1% LIBOR floor and matured on April 12, 2022. The interest rate swap was a qualifying hedging instrument and was accounted for as a cash flow hedge pursuant to Accounting Standards Codification ("ASC") 815, Derivatives and Hedgin g . The interest rate swap was settled upon its maturity during the second quarter of 2022. The amount of gains (loss) recognized in other comprehensive income (loss), net of tax (“OCI”) and reclassified from accumulated other comprehensive loss (“AOCI”) to earnings are summarized below ( in thousands ): Six Months Ended Six Months Ended July 2, 2023 July 2, 2022 Amount of (loss) recognized in OCI $ — $ (10) Amount of (loss) reclassified from AOCI to earnings (interest expense, net of tax) $ — $ (1,849) Interest expense, net (including the effects of the cash flow hedges) related to the portion of the Company's term loan subject to the aforementioned interest-rate swap agreement was $0.6 million and $7.5 million for the three and six months ended July 3, 2022, respectively. Debt As of July 2, 2023, total debt (including short-term borrowings and current portion of long-term debt) w as $510.9 million compared to $496.5 million as of December 31, 2022. Total debt is net of unamortized term loan debt issuance costs of $18.7 million and $20.4 million at July 2, 2023 and December 31, 2022, respectively. The Company made interest payments of $28.0 million and $18.4 million during the six months ended July 2, 2023, and July 3, 2022, respectively. In April 2022, the Company entered into Amendment No. 1 to the Credit Agreement (the “First Amendment”). The First Amendment makes certain changes to the Original Credit Agreement, including (i) extending the deadline for the Company to deliver its annual financial statements for the fiscal year ended December 31, 2021, (ii) increasing the interest rate margins for (a) the term loan facility to 5.50% with respect to Eurodollar loans, (b) the revolving facility to 4.75% with respect to Eurodollar loans and (c) the swing line facility to 3.75%, (iii) in the event of a step-down in the debt ratings of the facilities, increasing the interest rate margins for the term loan facility by an additional 0.50% during any such step-down period, (iv) decreasing certain debt, lien, investment, restricted payment and affiliate transaction baskets and negative covenant thresholds by 15%, (v) further decreasing or eliminating the use of certain debt, lien, investment and restricted payment baskets during the period until the date on which the Company delivers the annual financial statements for the fiscal year ended December 31, 2021 (such period, the “Restricted Period”), (vi) eliminating the minimum threshold and reinvestment rights with respect to mandatory prepayments of the term loans with the net cash proceeds of sale-leaseback transactions, subject to certain exceptions, (vii) restricting the Company’s ability to borrow swing loans or revolving loans if the aggregate amount of cash and cash equivalents of the Company and its domestic subsidiaries exceeds $10.0 million and creating a requirement to prepay outstanding swing loans and revolving loans with any such excess, in each case, during the Restricted Period, (viii) resetting the “soft call” prepayment premium for an additional 12 months, and (ix) requiring the Company to hold private-side lender calls twice upon request of the Administrative Agent during the Restricted Period and promptly after the delivery of all quarterly and annual financial statements. In connection with the execution of the First Amendment, the Company paid approximately $12.5 million in customary arranger and lender consent fees, attorney fees, and reasonable and documented expenses of the Administrative Agent. In May 2022, the Company entered into Amendment No. 2 to the Credit Agreement (the “Second Amendment”). The Second Amendment made certain changes to the Credit Agreement, including, extending the deadline for the Company to deliver its annual financial statements for the fiscal year ended December 31, 2021 and its quarterly financial statements for the fiscal quarters ended April 3, 2022 and July 3, 2022. In addition, the Company is required to hold private-side lender calls at least once per month upon request, and promptly after the delivery of all quarterly and annual financial statements. In connection with the execution of the Second Amendment, the Company paid approximately $4.2 million in customary arranger and lender consent fees, attorney fees, and reasonable and documented expenses of the Administrative Agent. In June 2023, the Company entered into Amendment No. 3 to the Credit Agreement (the "Third Amendment"). The Third Amendment made certain changes to the Credit Agreement, including, adjusting the reference rate for borrowings from the London interbank offered rate ("LIBOR") with the term secured overnight financing rate ("Term SOFR") for all SOFR borrowings subject to a 0.0% floor. The Company elected the practical expedient under ASC No. 2020-04, Reference Rate Reform (Topic 848), in connection with amending its credit agreement to replace the reference rate from LIBOR to Term SOFR to consider the amendment as a continuation of the existing contract without having to perform an assessment that would otherwise be required under GAAP. In connection with the execution of the Third Amendment, the Company paid approximately $0.1 million in customary attorney fees. |
Guarantees and Indemnification
Guarantees and Indemnification Obligations | 6 Months Ended |
Jul. 02, 2023 | |
Guarantees And Indemnification Obligations [Abstract] | |
Guarantees and Indemnification Obligations | Guarantees and Indemnification Obligations As permitted under Delaware law, the Company has agreements whereby it indemnifies certain of its officers and directors for certain events or occurrences while the officer or director is, or was, serving at its request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. However, the Company has directors’ and officers’ liability insurance policies that insure it with respect to certain events covered under the policies and should enable it to recover a portion of any future amounts paid under the indemnification agreements. The Company has no liabilities recorded from those agreements as of July 2, 2023. The Company records provisions for the estimated cost of product warranties, primarily from historical information, at the time product revenue is recognized. The Company also records provisions with respect to any significant individual warranty issues as they arise. Although, the Company engages in extensive product quality programs and processes, its warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to the Company. Should actual product failure rates, utilization levels, material usage, service delivery costs or supplier warranties on parts differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The following table sets forth information related to product warranty reserves for the six months ended July 2, 2023 and July 3, 2022 ( in thousands ): Six Months Ended July 2, 2023 July 3, 2022 Balance beginning $ 2,521 $ 2,740 Provisions 1,705 835 Claims settled (1,112) (1,043) Currency translation adjustment 14 (102) Balance ending $ 3,128 $ 2,430 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 02, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company is subject to various legal proceedings and claims pertaining to matters such as product liability or contract disputes. The Company is also subject to other proceedings and governmental inquiries, inspections, audits or investigations pertaining to issues such as tax matters, patents and trademarks, pricing, contractual issues, business practices, governmental regulations, employment and other matters. Although the results of litigation and claims cannot be predicted with certainty, the Company expects that the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on its business, financial condition, results of operations or liquidity. Asbestos-related product liability claims continue to be filed against two of the Company's subsidiaries: CIRCOR Instrumentation Technologies, Inc. (f/k/a Hoke, Inc.) (“Hoke”), the stock of which the Company acquired in 1998, and Spence Engineering Company, Inc., the stock of which the Company acquired in 1984. The Hoke subsidiary was divested in January 2020 through the sale of the I&S business. However, the Company has indemnified the buyer for asbestos-related claims that are made against Hoke. Due to the nature of the products supplied by these entities, the markets they serve and the Company's historical experience in resolving these claims, the Company does not expect that these asbestos-related claims will have a material adverse effect on the financial condition, results of operations or liquidity of the Company. During the second quarter of 2021, the Company was notified of a contract termination by one of its Industrial segment customers. The basis for termination is under dispute and the ultimate outcome of this matter is uncertain. During the fourth quarter of 2021, the Company recorded a full allowance against the outstanding receivables resulting in a charge of $6.3 million. The Company also has outstanding guarantees of its performance under the contract in the aggregate amount of $3.4 million. Further, the Company is exposed to claims from sub-contractors for contract termination. During the fourth quarter of 2022, a settlement agreement was reached for $4.5 million which was paid by the Company during the first half of 2023. Standby Letters of Credit The Company executes standby letters of credit, which include bid bonds and performance bonds, in the normal course of business to ensure performance or payments to third parties. The aggregate notional value of these instruments at July 2, 2023 was $30.1 million of which $20.0 million was syndicated under the Credit Agreement. This compares with aggregate notional value of $32.4 million of which $24.4 million was syndicated under the Credit Agreement as of December 31, 2022. These instruments generally have expiration dates ranging from less than one month to five years from July 2, 2023. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jul. 02, 2023 | |
Retirement Benefits, Description [Abstract] | |
Retirement Plans | Retirement Plans The following table sets forth the components of total net periodic benefit (income) cost of the Company’s defined benefit pension plans and other post-retirement employee benefit plans ( in thousands ): Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Pension Benefits - U.S. Plans Interest cost $ 1,917 $ 1,000 $ 3,834 $ 2,000 Expected return on plan assets (2,104) (2,150) (4,208) (4,300) Amortization 36 48 72 96 Net periodic benefit income $ (151) $ (1,102) $ (302) $ (2,204) Pension Benefits - Non-U.S. Plans Service cost $ 326 $ 587 $ 649 $ 1,208 Interest cost 842 344 1,671 710 Expected return on plan assets (189) (190) (373) (393) Amortization (345) — (685) — Net periodic benefit cost $ 634 $ 741 $ 1,262 $ 1,525 Other Post-Retirement Benefits Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 84 53 168 106 Net actuarial (gain) loss (85) — (170) — Net periodic benefit cost $ — $ 54 $ — $ 108 The periodic benefit service costs are included in both costs of revenues, and in selling, general, and administrative expenses, while the remaining net periodic benefit costs are included in other expense (income), net in the condensed consolidated statements of operations for the three and six months ended July 2, 2023 and July 3, 2022. The Company did not make any employer contributions to the Company’s U.S. or non-U.S. based defined benefit pension plans during the three and six months ended July 2, 2023 and July 3, 2022. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes to income (loss) is as follows (in thousands) : Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Income (loss) before income taxes $ (4,283) $ 3,313 $ (1,109) $ (16,646) Effective tax rate (100.1) % (19.5) % (709.6) % (5.3) % Provision for income taxes $ 4,288 $ (647) $ 7,869 $ 875 The Company is required to compute income tax expense in each jurisdiction in which it operates. This process requires the Company to project its current tax liability and estimate its deferred tax assets and liabilities, including net operating loss (“NOL”) and tax credit carryforwards. In assessing the ability to realize the net deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The effective tax rate for the three months ended July 2, 2023, differed from the U.S. federal statutory rate of 21% primarily due to unbenefited U.S. losses, adjustments to the domestic and foreign valuation allowances, and the earnings in foreign jurisdictions. The effective tax rate for the three months ended July 3, 2022, differed from the U.S. federal statutory rate primarily due to adjustments to the domestic and foreign valuation allowances and the expiration of the Company's interest rate swap which resulted in a $2.5 million tax benefit. The Company has a full valuation allowance in the U.S. and Germany and intends to continue maintaining valuation allowances on these deferred tax assets until there is sufficient evidence to support the release of all or some portion of these allowances. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 02, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | Share-Based Compensation As of July 2, 2023, the Company ha d 26,184 st ock options, 517,882 Restricted Stock Unit Awards (“RSU Awards”) and Restricted Stock Unit Management Stock Plan Awards (“RSU MSPs”) outstanding. The Company's 2019 Stock Option and Incentive Plan (the “2019 Plan”) authorizes the issuance of up to 2,000,000 shares of common stock (subject to adjustment for stock splits and similar events). Under the 2019 Plan, there we re 1,052,942 s hares available for grant as of July 2, 2023. During the six months ended July 2, 2023 and July 3, 2022, there were no stock options granted. For additional information regarding the historical issuance of stock options, refer to Note 13, Share-Based Compensation to the consolidated financial statements included in the 2022 Annual Report. During the six months ended July 2, 2023 and July 3, 2022, the Company granted 211,491 and 1,009 RSU Awards with approximate fair values of $31.90 and $26.60 per RSU Award, respectively. Due to the delay in filing of the 2021 Annual Report, the grant of annual equity awards in 2022, which typically takes place during the first quarter of each fiscal year, was postponed until August 2022. During the six months ended July 2, 2023, the Company granted 46,078 performance-based RSU Awards, compared to 0 performance-based RSU Awards granted during the six months ended July 3, 2022. The performance-based RSU Awards granted in 2023 include a market condition based on the Company's total shareholder return relative to a subset of the S&P 600 SmallCap Industrial Companies over a three-year performance period. The target payout range for these performance-based awards is 0% to 200% with a cap not to exceed 600% of the target value on the grant date. These performance-based RSUs were valued using a Monte Carlo Simulation model to account for the market condition on grant date. There were 37,020 R SU MSPs granted during the six months ended July 2, 2023 with a per unit discount of $10.20, compared to 0 RSU MSPs granted during the six months ended July 3, 2022. Compensation expense related to the Company’s share-based plans for the six months ended July 2, 2023 and July 3, 2022 was $2.3 million and $0.4 million, respectively. The significant increase in compensation cost in the six months ended July 2, 2023 compared with the same prior-year period relates primarily to forfeitures associated with the departure of the Company's former CEO in January 2022 as well as the delay in granting annual equity awards in 2022. Compensation expense for the six months ended July 2, 2023 was recorded entirely in selling, general and administrative expenses. Compensation expense for the six months ended July 3, 2022 was recorded as follows: $1.0 million in selling, general and administrative expenses and $(0.6) million in special charges (recoveries), net. Special charges (recoveries), net relate to forfeitures associated with the departure of the Company's former CEO, partially offset by certain equity vesting accelerations for the Company's former CEO and other Corporate staff whose positions were eliminated. As of July 2, 2023, there were $9.3 million of total unrecognized compensation costs related to the Company’s outstanding share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 2.1 years. The weighted average contractual term for stock options outstanding and exercisable as of July 2, 2023 was 1.6 years. The aggregate intrinsic value of RSU Awards settled during the six months ended July 2, 2023 was $1.3 million and the aggregate intrinsic value of RSU Awards outstanding as of July 2, 2023 was $26.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jul. 02, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of shareholders’ equity, for the six months ended July 2, 2023 and July 3, 2022 ( in thousands ): Foreign Currency Translation Adjustments Pension, net Derivative Total Balance as of December 31, 2021 (54,432) 4,944 688 $ (48,800) Other comprehensive (loss) income (11,450) 97 (688) (12,041) Balance as of July 3, 2022 $ (65,882) $ 5,041 $ — $ (60,841) Balance as of December 31, 2022 $ (66,887) $ 22,778 $ — $ (44,109) Other comprehensive income (loss) 1,228 (98) — 1,130 Balance as of July 2, 2023 $ (65,659) $ 22,680 $ — $ (42,979) |
Income (Loss) Per Common Share
Income (Loss) Per Common Share ("EPS") | 6 Months Ended |
Jul. 02, 2023 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Common Share ("EPS") | Income (Loss) Per Common Share (“EPS”) Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Basic weighted average shares outstanding 20,392 20,361 20,380 20,336 Effect of dilutive securities (1) — 67 — — Dilutive weighted average shares outstanding 20,392 20,428 20,380 20,336 (1) Includes the effect of dilutive stock options, RSU Awards and RSU MSPs |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 02, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 26 , 2023, the Company completed a sale-leaseback transaction for its Monroe, North Carolina facility. For the sale of the land and building, the Company received net proceeds of $15.4 million in cash. Concurrent with the sale, the Company leased back the facility at market rate for an initial lease term of 15 years with no option to renew . The Company will account for the transaction during the third quarter of 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2023 | Apr. 02, 2023 | Jul. 03, 2022 | Apr. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Pay vs Performance Disclosure | ||||||
Net loss | $ (8,571) | $ (407) | $ 3,960 | $ (21,481) | $ (8,978) | $ (17,521) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 02, 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 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jul. 02, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and six months ended July 2, 2023 are consistent with those discussed in Note 2 to the consolidated financial statements in the 2022 Annual Report. |
Use of Estimates | The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Some of the more significant estimates, which are impacted by management's estimates and assumptions regarding the effects of the COVID-19 pandemic, relate to recoverability of goodwill and indefinite-lived trade names, estimated total costs for ongoing long-term revenue contracts where transfer of control occurs over time, inventory valuation, share-based compensation, amortization and impairment of long-lived assets, income taxes (including valuation allowance), fair value of disposal group, pension benefit obligations, acquisition accounting, penalty accruals for late shipments, asset valuations, and product warranties. While management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ materially from those estimates. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present revenue disaggregated by major product line and geographical market ( in thousands ): Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Aerospace & Defense Segment Commercial Aerospace & Other $ 40,058 $ 28,821 $ 72,316 $ 54,034 Defense 33,470 38,450 69,763 76,607 Total 73,528 67,271 142,079 130,641 Industrial Segment Valves 43,071 41,435 87,029 86,911 Pumps 92,210 82,670 182,798 159,479 Total 135,281 124,105 269,827 246,390 Net Revenues $ 208,809 $ 191,376 $ 411,906 $ 377,031 Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Aerospace & Defense Segment EMEA $ 21,813 $ 15,801 $ 39,739 $ 30,010 North America 42,918 46,963 88,082 92,160 Other 8,797 4,507 14,258 8,471 Total 73,528 67,271 142,079 130,641 Industrial Segment EMEA 51,462 51,216 111,103 105,858 North America 48,071 42,555 90,381 83,392 Other 35,748 30,334 68,343 57,140 Total 135,281 124,105 269,827 246,390 Net Revenues $ 208,809 $ 191,376 $ 411,906 $ 377,031 Contract Balances The Company’s contract assets and contract liabilities balances as of July 2, 2023 and December 31, 2022 are as follows ( in thousands ): July 2, 2023 December 31, 2022 Increase/(Decrease) Contract assets: Recorded within prepaid expenses and other current assets $ 95,319 $ 98,406 $ (3,087) Recorded within other assets 6,856 7,677 (821) $ 102,175 $ 106,083 $ (3,908) Contract liabilities: Recorded within accrued expenses and other current liabilities $ 42,861 $ 36,871 $ 5,990 Recorded within other non-current liabilities 2,699 5,149 (2,450) $ 45,560 $ 42,020 $ 3,540 |
Special and Restructuring (Reco
Special and Restructuring (Recoveries) Charges, Net (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Restructuring and Related Activities [Abstract] | |
Special and Restructuring Charges (Recoveries), Net | The table below summarizes the amounts recorded within the special and restructuring charges (recoveries), net line item on the condensed consolidated statements of operations for the three and six months ended July 2, 2023 and July 3, 2022 ( in thousands ): Special & restructuring charges (recoveries), net Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Special charges (recoveries), net $ 5,242 $ (10,425) $ 6,943 $ (7,870) Restructuring (recoveries) charges, net (47) 4,695 (263) 11,142 Total special and restructuring charges (recoveries), net $ 5,195 $ (5,730) $ 6,680 $ 3,272 |
Special Charges (Recoveries), Net | The table below details the special charges (recoveries), net, recognized for the three and six months ended July 2, 2023 and July 3, 2022 ( in thousands ): Special charges, net Three Months Ended July 2, 2023 Aerospace & Defense Industrial Corporate Total Strategic alternatives evaluation $ — $ — $ 4,257 $ 4,257 Other special charges, net — 577 408 985 Total special charges, net $ — $ 577 $ 4,665 $ 5,242 Special charges, net Six Months Ended July 2, 2023 Aerospace & Defense Industrial Corporate Total Strategic alternatives evaluation $ — $ — $ 5,506 $ 5,506 Other special charges — 962 475 1,437 Total special charges, net $ — $ 962 $ 5,981 $ 6,943 Special (recoveries) charges, net Three Months Ended July 3, 2022 Aerospace & Defense Industrial Corporate Total Pipeline Engineering investigation and restatement costs $ — $ — $ 5,022 $ 5,022 Gain on real estate sales — (22,008) — (22,008) Strategic alternatives evaluation — — 945 945 Debt amendment charges — — 4,977 4,977 Other special charges (recoveries), net — 829 (190) 639 Total special (recoveries) charges, net $ — $ (21,179) $ 10,754 $ (10,425) Special (recoveries) charges, net Six Months Ended July 3, 2022 Aerospace & Defense Industrial Corporate Total Pipeline Engineering investigation and restatement costs $ — $ — $ 6,363 $ 6,363 Gain on real estate sales — (22,008) — (22,008) Strategic alternatives evaluation — — 945 945 Debt amendment charges — — 4,977 4,977 Other special charges — 965 888 1,853 Total special charges, net $ — $ (21,043) $ 13,173 $ (7,870) |
Charges (Recoveries) Associated with Restructuring Actions | The tables below detail the charges associated with restructuring actions recorded for the three and six months July 2, 2023 and July 3, 2022. Accruals associated with the restructuring actions are recorded within "Accrued expenses and other current liabilities" on the condensed consolidated balance sheets (in thousands ): Restructuring recoveries, net Three Months Ended July 2, 2023 Aerospace & Defense Industrial Corporate Total Facility and other related recoveries, net $ — $ (47) $ — $ (47) Total restructuring recoveries, net $ — $ (47) $ — $ (47) Restructuring recoveries, net Six Months Ended July 2, 2023 Aerospace & Defense Industrial Corporate Total Facility and other related recoveries, net $ 3 $ (266) $ — $ (263) Total restructuring recoveries, net $ 3 $ (266) $ — $ (263) Accrued restructuring charges as of December 31, 2022 $ 837 Charges paid/settled, written-off, net (715) Accrued restructuring charges as of July 2, 2023 $ 122 Restructuring charges (recoveries), net Three Months Ended July 3, 2022 Aerospace & Defense Industrial Corporate Total Facility and other related charges (recoveries), net $ 3 $ 4,650 $ — $ 4,653 Employee related charges (recoveries), net 15 (6) 33 42 Total restructuring charges (recoveries), net $ 18 $ 4,644 $ 33 $ 4,695 Restructuring charges (recoveries), net Six Months Ended July 3, 2022 Aerospace & Defense Industrial Corporate Total Facility and other related charges (recoveries), net $ 3 $ 10,082 $ — $ 10,085 Employee related expenses, net 15 715 327 1,057 Total restructuring charges (recoveries), net $ 18 $ 10,797 $ 327 $ 11,142 Accrued restructuring charges as of December 31, 2021 $ 1,839 Total charges, net (shown above) 11,142 Charges paid/settled, written-off, net (12,041) Accrued restructuring charges as of July 3, 2022 $ 940 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Inventory, Net [Abstract] | |
Components Of Inventory | Inventories consisted of the following as of July 2, 2023 and December 31, 2022 ( in thousands ): July 2, 2023 December 31, 2022 Raw materials $ 70,701 $ 59,431 Work in process 76,724 63,846 Finished goods 19,530 16,509 Total inventories $ 166,955 $ 139,786 |
Goodwill and Intangibles, net (
Goodwill and Intangibles, net (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Segment | The following table shows the movement in goodwill by segment from December 31, 2022 to July 2, 2023 ( in thousands ): Aerospace & Defense Industrial Total Goodwill as of December 31, 2022 $ 57,381 $ 62,466 $ 119,847 Currency translation adjustments 27 (135) (108) Goodwill as of July 2, 2023 $ 57,408 $ 62,331 $ 119,739 |
Gross Intangible Assets And Related Accumulated Amortization | The table below presents gross intangible assets and the related accumulated amortization as of July 2, 2023 ( in thousands ): July 2, 2023 Gross Accumulated Net Carrying Value Patents $ 5,368 $ (5,368) $ — Customer relationships 285,305 (161,171) 124,134 Acquired technology 132,243 (87,600) 44,643 Total Amortized Intangibles $ 422,916 $ (254,139) $ 168,777 Non-amortized intangibles (trademarks and trade names) $ 72,354 $ — $ 72,354 Net carrying value of intangible assets $ 241,131 December 31, 2022 Gross Accumulated Net Carrying Value Patents $ 5,368 $ (5,368) $ — Customer relationships 285,910 (151,258) 134,652 Acquired technology 132,601 (82,898) 49,703 Total Amortized Intangibles $ 423,879 $ (239,524) $ 184,355 Non-amortized intangibles (trademarks and trade names) $ 71,983 $ — $ 71,983 Net carrying value of intangible assets $ 256,338 |
Estimated Future Amortization Expense | The table below presents estimated remaining annual amortization expense for intangible assets recorded as of July 2, 2023 (in thousands): 2023 2024 2025 2026 2027 After 2027 Estimated amortization expense $ 15,163 $ 27,553 $ 24,053 $ 20,919 $ 16,743 $ 64,346 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | The following tables present certain reportable segment information ( in thousands ): Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Net revenues Aerospace & Defense $ 73,528 $ 67,271 $ 142,079 $ 130,641 Industrial 135,281 124,105 269,827 246,390 Net revenues $ 208,809 $ 191,376 $ 411,906 $ 377,031 Results from operations before income taxes Aerospace & Defense - Segment Operating Income $ 15,239 $ 13,566 $ 29,954 $ 24,886 Industrial - Segment Operating Income 15,626 8,484 36,029 15,341 Corporate expenses (7,157) (5,485) (13,901) (13,255) Subtotal 23,708 16,565 52,082 26,972 Special charges (recoveries), net 5,242 (10,425) 6,943 (7,870) Restructuring (recoveries) charges, net (47) 4,695 (263) 11,142 Special and restructuring charges, net 5,195 (5,730) 6,680 3,272 Restructuring related inventory charges — — — 2,757 Acquisition amortization 8,010 9,178 15,930 18,569 Acquisition depreciation 959 1,239 2,012 2,285 Restructuring, impairment and other costs, net 8,969 10,417 17,942 23,611 Consolidated operating income 9,544 11,878 27,460 89 Interest expense, net 14,957 10,203 29,485 19,659 Other income, net (1,130) (1,638) (916) (2,924) (Loss) income before income taxes $ (4,283) $ 3,313 $ (1,109) $ (16,646) Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Capital expenditures Aerospace & Defense $ 1,247 $ 1,581 $ 2,425 $ 2,867 Industrial 4,711 3,597 8,658 5,260 Corporate 684 851 853 1,203 Consolidated capital expenditures $ 6,642 $ 6,029 $ 11,936 $ 9,330 Depreciation and amortization Aerospace & Defense $ 2,235 $ 2,737 $ 4,477 $ 5,258 Industrial 10,605 11,340 20,782 23,046 Corporate 232 162 451 332 Consolidated depreciation and amortization $ 13,072 $ 14,239 $ 25,710 $ 28,636 Identifiable assets July 2, 2023 December 31, 2022 Aerospace & Defense $ 580,715 $ 557,018 Industrial 1,268,602 1,261,996 Corporate (822,571) (806,327) Consolidated identifiable assets $ 1,026,746 $ 1,012,687 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Fair Value Disclosures [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The amount of gains (loss) recognized in other comprehensive income (loss), net of tax (“OCI”) and reclassified from accumulated other comprehensive loss (“AOCI”) to earnings are summarized below ( in thousands ): Six Months Ended Six Months Ended July 2, 2023 July 2, 2022 Amount of (loss) recognized in OCI $ — $ (10) Amount of (loss) reclassified from AOCI to earnings (interest expense, net of tax) $ — $ (1,849) |
Guarantees and Indemnificatio_2
Guarantees and Indemnification Obligations (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Guarantees And Indemnification Obligations [Abstract] | |
Product Warranty Reserves | The following table sets forth information related to product warranty reserves for the six months ended July 2, 2023 and July 3, 2022 ( in thousands ): Six Months Ended July 2, 2023 July 3, 2022 Balance beginning $ 2,521 $ 2,740 Provisions 1,705 835 Claims settled (1,112) (1,043) Currency translation adjustment 14 (102) Balance ending $ 3,128 $ 2,430 |
Retirement Plan (Tables)
Retirement Plan (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Retirement Benefits, Description [Abstract] | |
Components Of Net Pension Benefit Expense | The following table sets forth the components of total net periodic benefit (income) cost of the Company’s defined benefit pension plans and other post-retirement employee benefit plans ( in thousands ): Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Pension Benefits - U.S. Plans Interest cost $ 1,917 $ 1,000 $ 3,834 $ 2,000 Expected return on plan assets (2,104) (2,150) (4,208) (4,300) Amortization 36 48 72 96 Net periodic benefit income $ (151) $ (1,102) $ (302) $ (2,204) Pension Benefits - Non-U.S. Plans Service cost $ 326 $ 587 $ 649 $ 1,208 Interest cost 842 344 1,671 710 Expected return on plan assets (189) (190) (373) (393) Amortization (345) — (685) — Net periodic benefit cost $ 634 $ 741 $ 1,262 $ 1,525 Other Post-Retirement Benefits Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 84 53 168 106 Net actuarial (gain) loss (85) — (170) — Net periodic benefit cost $ — $ 54 $ — $ 108 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes to income (loss) is as follows (in thousands) : Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Income (loss) before income taxes $ (4,283) $ 3,313 $ (1,109) $ (16,646) Effective tax rate (100.1) % (19.5) % (709.6) % (5.3) % Provision for income taxes $ 4,288 $ (647) $ 7,869 $ 875 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of shareholders’ equity, for the six months ended July 2, 2023 and July 3, 2022 ( in thousands ): Foreign Currency Translation Adjustments Pension, net Derivative Total Balance as of December 31, 2021 (54,432) 4,944 688 $ (48,800) Other comprehensive (loss) income (11,450) 97 (688) (12,041) Balance as of July 3, 2022 $ (65,882) $ 5,041 $ — $ (60,841) Balance as of December 31, 2022 $ (66,887) $ 22,778 $ — $ (44,109) Other comprehensive income (loss) 1,228 (98) — 1,130 Balance as of July 2, 2023 $ (65,659) $ 22,680 $ — $ (42,979) |
Income (Loss) Per Common Shar_2
Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Basic weighted average shares outstanding 20,392 20,361 20,380 20,336 Effect of dilutive securities (1) — 67 — — Dilutive weighted average shares outstanding 20,392 20,428 20,380 20,336 (1) Includes the effect of dilutive stock options, RSU Awards and RSU MSPs |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Thousands | Jun. 05, 2023 USD ($) contractTermination $ / shares | Jul. 02, 2023 $ / shares | Dec. 31, 2022 $ / shares |
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Cube BidCo, Inc. | |||
Business Acquisition [Line Items] | |||
Merger agreement, conversion of stock, value (in dollars per share) | 56 | ||
Merger agreement, conversion of stock, denominator (in dollars per share) | $ 1 | ||
Merger agreement, conversion of stock, multiplier | contractTermination | 61 | ||
Merger agreement, termination fee | $ | $ 42,750 |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Details) - Supply Commitment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 02, 2023 | Jul. 02, 2023 | Dec. 31, 2022 | |
Supply Commitment [Line Items] | |||
Milestone payment receivable | $ 6.7 | ||
Proceeds from deposit liability | $ 1 | $ 3.4 | |
Payments to acquire machinery and equipment | 1.8 | ||
Deposit liability | $ 1.6 | $ 1.6 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue performance obligation | $ 246.2 |
Revenue recognized | $ 19.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 43% |
Remaining performance obligation, expected timing of satisfaction | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 45% |
Remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 12% |
Remaining performance obligation, expected timing of satisfaction |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | $ 208,809 | $ 191,376 | $ 411,906 | $ 377,031 |
Aerospace & Defense Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 73,528 | 67,271 | 142,079 | 130,641 |
Aerospace & Defense Segment | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 21,813 | 15,801 | 39,739 | 30,010 |
Aerospace & Defense Segment | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 42,918 | 46,963 | 88,082 | 92,160 |
Aerospace & Defense Segment | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 8,797 | 4,507 | 14,258 | 8,471 |
Aerospace & Defense Segment | Commercial Aerospace & Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 40,058 | 28,821 | 72,316 | 54,034 |
Aerospace & Defense Segment | Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 33,470 | 38,450 | 69,763 | 76,607 |
Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 135,281 | 124,105 | 269,827 | 246,390 |
Industrial Segment | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 51,462 | 51,216 | 111,103 | 105,858 |
Industrial Segment | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 48,071 | 42,555 | 90,381 | 83,392 |
Industrial Segment | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 35,748 | 30,334 | 68,343 | 57,140 |
Industrial Segment | Valves | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | 43,071 | 41,435 | 87,029 | 86,911 |
Industrial Segment | Pumps | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by major product line | $ 92,210 | $ 82,670 | $ 182,798 | $ 159,479 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 48 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Decrease in contract assets | $ 3,908,000 | ||||
Increase in contract liabilities | 3,540,000 | ||||
Allowance for credit losses | 0 | $ 0 | |||
Revenue recognized | 19,100,000 | ||||
Cost of revenues | $ 140,224,000 | $ 133,171,000 | 269,255,000 | 263,543,000 | |
Aerospace & Defense | |||||
Disaggregation of Revenue [Line Items] | |||||
Decrease in contract assets | (1,500,000) | ||||
Russian Customer | |||||
Disaggregation of Revenue [Line Items] | |||||
Decrease in contract assets | $ 5,400,000 | ||||
Revenue recognized | $ (5,400,000) | $ 5,400,000 | |||
Cost of revenues | $ 3,500,000 | ||||
Pipeline Engineering investigation and restatement costs | |||||
Disaggregation of Revenue [Line Items] | |||||
Allowance for credit losses | $ 1,000,000 |
Revenue Recognition - Contract
Revenue Recognition - Contract Asset and Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2023 | Dec. 31, 2022 | |
Contract assets: | ||
Contract assets: | $ 102,175 | $ 106,083 |
Increase/(Decrease) | (3,908) | |
Contract liabilities: | ||
Contract liabilities: | 45,560 | 42,020 |
Increase/(Decrease) | 3,540 | |
Recorded within prepaid expenses and other current assets | ||
Contract assets: | ||
Contract assets: | 95,319 | 98,406 |
Increase/(Decrease) | (3,087) | |
Recorded within other assets | ||
Contract assets: | ||
Contract assets: | 6,856 | 7,677 |
Increase/(Decrease) | (821) | |
Recorded within accrued expenses and other current liabilities | ||
Contract liabilities: | ||
Contract liabilities: | 42,861 | 36,871 |
Increase/(Decrease) | 5,990 | |
Recorded within other non-current liabilities | ||
Contract liabilities: | ||
Contract liabilities: | 2,699 | $ 5,149 |
Increase/(Decrease) | $ (2,450) |
Special and Restructuring Cha_2
Special and Restructuring Charges (Recoveries), Net - Schedule of Special and Restructuring Charges (Recoveries), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Restructuring and Related Activities [Abstract] | ||||
Special charges (recoveries), net | $ 5,242 | $ (10,425) | $ 6,943 | $ (7,870) |
Restructuring (recoveries) charges, net | (47) | 4,695 | (263) | 11,142 |
Total special and restructuring charges (recoveries), net | $ 5,195 | $ (5,730) | $ 6,680 | $ 3,272 |
Special and Restructuring Cha_3
Special and Restructuring Charges (Recoveries), Net - Schedule of Special Charges (Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | $ 5,242 | $ (10,425) | $ 6,943 | $ (7,870) |
Pipeline Engineering investigation and restatement costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 5,022 | 6,363 | ||
Gain on real estate sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | (22,008) | (22,008) | ||
Strategic alternatives evaluation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 4,257 | 945 | 5,506 | 945 |
Debt amendment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 4,977 | 4,977 | ||
Other special charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 985 | 639 | 1,437 | 1,853 |
Aerospace & Defense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | 0 | 0 |
Aerospace & Defense | Pipeline Engineering investigation and restatement costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | ||
Aerospace & Defense | Gain on real estate sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | ||
Aerospace & Defense | Strategic alternatives evaluation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | 0 | 0 |
Aerospace & Defense | Debt amendment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | ||
Aerospace & Defense | Other special charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | 0 | 0 |
Industrial | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 577 | (21,179) | 962 | (21,043) |
Industrial | Pipeline Engineering investigation and restatement costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | ||
Industrial | Gain on real estate sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | (22,008) | (22,008) | ||
Industrial | Strategic alternatives evaluation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | 0 | 0 |
Industrial | Debt amendment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | ||
Industrial | Other special charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 577 | 829 | 962 | 965 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 4,665 | 10,754 | 5,981 | 13,173 |
Corporate | Pipeline Engineering investigation and restatement costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 5,022 | 6,363 | ||
Corporate | Gain on real estate sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 0 | 0 | ||
Corporate | Strategic alternatives evaluation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 4,257 | 945 | 5,506 | 945 |
Corporate | Debt amendment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | 4,977 | 4,977 | ||
Corporate | Other special charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges (recoveries) | $ 408 | $ (190) | $ 475 | $ 888 |
Special and Restructuring Cha_4
Special and Restructuring Charges (Recoveries), Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | Dec. 31, 2022 | Apr. 08, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | $ 5,242 | $ (10,425) | $ 6,943 | $ (7,870) | ||
Lease right-of-use assets, net | 41,005 | 41,005 | $ 42,491 | |||
Restructuring (recoveries) charges, net | (47) | 4,695 | (263) | 11,142 | ||
Tampa, Florida | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Lease term | 5 years | |||||
Lease renewal term | 5 years | |||||
Lease right-of-use assets, net | $ 9,300 | |||||
Operating lease, liability | $ 9,300 | |||||
Exit Of Business | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 10,600 | |||||
Impairments | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 5,300 | |||||
Termination Benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 600 | |||||
Deconsolidation Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 4,700 | |||||
Write Down Of Property, Plant and Equipment, Right-Of-Use Assets And Intangibles | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 3,800 | |||||
Write Down Of Working Capital | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 1,500 | |||||
Write Down Of Accounts Receivable | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 1,000 | |||||
Employee Related Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 300 | |||||
Cumulative Translation Adjustment | Catterick, UK | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 5,300 | 5,300 | ||||
Write Down Of Net Assets | Catterick, UK | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 600 | 600 | ||||
Write Down Of Inventories | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 2,800 | |||||
Industrial | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 577 | (21,179) | 962 | (21,043) | ||
Restructuring (recoveries) charges, net | (47) | 4,644 | (266) | 10,797 | ||
Industrial | Termination Of Leased Building | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | (200) | |||||
Industrial | Employee Related Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (recoveries) charges, net | 600 | |||||
Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 4,665 | 10,754 | 5,981 | 13,173 | ||
Restructuring (recoveries) charges, net | 0 | 33 | 0 | 327 | ||
Pipeline Engineering investigation and restatement costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 5,022 | 6,363 | ||||
Pipeline Engineering investigation and restatement costs | Industrial | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 0 | 0 | ||||
Pipeline Engineering investigation and restatement costs | Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 5,022 | 6,363 | ||||
Gain on real estate sales | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | (22,008) | (22,008) | ||||
Gain on real estate sales | Industrial | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | (22,008) | (22,008) | ||||
Gain on real estate sales | Industrial | Walden, New York | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | (6,400) | (6,400) | ||||
Gain on real estate sales | Industrial | Tampa, Florida | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | (15,600) | (15,600) | ||||
Gain on real estate sales | Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 0 | 0 | ||||
Evaluation of Strategic Alternatives | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 4,300 | 900 | 5,500 | 900 | ||
Debt amendment charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 4,977 | 4,977 | ||||
Debt amendment charges | Industrial | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 0 | 0 | ||||
Debt amendment charges | Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 4,977 | 4,977 | ||||
Other special charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 985 | 639 | 1,437 | 1,853 | ||
Other special charges | Industrial | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 577 | 829 | 962 | 965 | ||
Other special charges | Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 408 | (190) | 475 | 888 | ||
Severance Related To Former CEO | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 900 | |||||
Severance Related To Former CEO | Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 300 | 300 | ||||
Write-Off Of Accounts Receivable | Industrial | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | $ 600 | $ 600 | ||||
Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | 1,700 | |||||
Severance And Contract Termination | Industrial | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges (recoveries) | $ 800 | $ 1,000 |
Special and Restructuring Cha_5
Special and Restructuring Charges (Recoveries), Net - Schedule of Restructuring Charges, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | $ (47) | $ 4,695 | $ (263) | $ 11,142 |
Restructuring Reserve [Roll Forward] | ||||
Accrued restructuring charges, beginning balance | 837 | 1,839 | ||
Restructuring (recoveries) charges, net | (47) | 4,695 | (263) | 11,142 |
Charges paid/settled, written-off, net | (715) | (12,041) | ||
Accrued restructuring charges, ending balance | 122 | 940 | 122 | 940 |
Facility and other related recoveries, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | (47) | 4,653 | (263) | 10,085 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | (47) | 4,653 | (263) | 10,085 |
Employee related charges (recoveries), net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | 42 | 1,057 | ||
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | 42 | 1,057 | ||
Aerospace & Defense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | 0 | 18 | 3 | 18 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | 0 | 18 | 3 | 18 |
Aerospace & Defense | Facility and other related recoveries, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | 0 | 3 | 3 | 3 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | 0 | 3 | 3 | 3 |
Aerospace & Defense | Employee related charges (recoveries), net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | 15 | 15 | ||
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | 15 | 15 | ||
Industrial | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | (47) | 4,644 | (266) | 10,797 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | (47) | 4,644 | (266) | 10,797 |
Industrial | Facility and other related recoveries, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | (47) | 4,650 | (266) | 10,082 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | (47) | 4,650 | (266) | 10,082 |
Industrial | Employee related charges (recoveries), net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | (6) | 715 | ||
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | (6) | 715 | ||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | 0 | 33 | 0 | 327 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | 0 | 33 | 0 | 327 |
Corporate | Facility and other related recoveries, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | 0 | 0 | 0 | 0 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | $ 0 | 0 | $ 0 | 0 |
Corporate | Employee related charges (recoveries), net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring (recoveries) charges, net | 33 | 327 | ||
Restructuring Reserve [Roll Forward] | ||||
Restructuring (recoveries) charges, net | $ 33 | $ 327 |
Inventories (Components Of Inve
Inventories (Components Of Inventory) (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Raw materials | $ 70,701 | $ 59,431 |
Work in process | 76,724 | 63,846 |
Finished goods | 19,530 | 16,509 |
Total inventories | $ 166,955 | $ 139,786 |
Goodwill and Intangibles, net_2
Goodwill and Intangibles, net (Goodwill, By Segment) (Details) $ in Thousands | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 119,847 |
Currency translation adjustments | (108) |
Goodwill, Ending Balance | 119,739 |
Aerospace & Defense | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 57,381 |
Currency translation adjustments | 27 |
Goodwill, Ending Balance | 57,408 |
Industrial | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 62,466 |
Currency translation adjustments | (135) |
Goodwill, Ending Balance | $ 62,331 |
Goodwill and Intangibles, net_3
Goodwill and Intangibles, net (Gross Intangible Assets And Related Accumulated Amortization) (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 422,916 | $ 423,879 |
Accumulated Amortization | (254,139) | (239,524) |
Net Carrying Value | 168,777 | 184,355 |
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Net carrying value of intangible assets | 241,131 | 256,338 |
Trademarks and Trade Names | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Net Carrying Value | 72,354 | 71,983 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,368 | 5,368 |
Accumulated Amortization | (5,368) | (5,368) |
Net Carrying Value | 0 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 285,305 | 285,910 |
Accumulated Amortization | (161,171) | (151,258) |
Net Carrying Value | 124,134 | 134,652 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 132,243 | 132,601 |
Accumulated Amortization | (87,600) | (82,898) |
Net Carrying Value | $ 44,643 | $ 49,703 |
Goodwill and Intangibles, net -
Goodwill and Intangibles, net - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2023 | Jul. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization | $ 15,941 | $ 18,580 |
Goodwill and Intangibles, net_4
Goodwill and Intangibles, net (Estimated Remaining Amortization Expense For Intangible Assets) (Details) $ in Thousands | Jul. 02, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 15,163 |
2024 | 27,553 |
2025 | 24,053 |
2026 | 20,919 |
2027 | 16,743 |
After 2027 | $ 64,346 |
Segment Information - Reportabl
Segment Information - Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 208,809 | $ 191,376 | $ 411,906 | $ 377,031 | |
Operating income (loss) | 9,544 | 11,878 | 27,460 | 89 | |
Special charges (recoveries), net | 5,242 | (10,425) | 6,943 | (7,870) | |
Restructuring (recoveries) charges, net | (47) | 4,695 | (263) | 11,142 | |
Special and restructuring charges, net | 5,195 | (5,730) | 6,680 | 3,272 | |
Operating income | 9,544 | 11,878 | 27,460 | 89 | |
Interest expense, net | 14,957 | 10,203 | 29,485 | 19,659 | |
Other income, net | (1,130) | (1,638) | (916) | (2,924) | |
(Loss) income before income taxes | (4,283) | 3,313 | (1,109) | (16,646) | |
Capital expenditures | 11,054 | 9,133 | |||
Depreciation and amortization | 13,072 | 14,239 | 25,710 | 28,636 | |
Identifiable assets | 1,026,746 | 1,026,746 | $ 1,012,687 | ||
Aerospace & Defense | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 73,528 | 67,271 | 142,079 | 130,641 | |
Operating income (loss) | 15,239 | 13,566 | 29,954 | 24,886 | |
Operating income | 15,239 | 13,566 | 29,954 | 24,886 | |
Capital expenditures | 1,247 | 1,581 | 2,425 | 2,867 | |
Depreciation and amortization | 2,235 | 2,737 | 4,477 | 5,258 | |
Identifiable assets | 580,715 | 580,715 | 557,018 | ||
Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 135,281 | 124,105 | 269,827 | 246,390 | |
Operating income (loss) | 15,626 | 8,484 | 36,029 | 15,341 | |
Restructuring (recoveries) charges, net | (47) | 4,644 | (266) | 10,797 | |
Operating income | 15,626 | 8,484 | 36,029 | 15,341 | |
Capital expenditures | 4,711 | 3,597 | 8,658 | 5,260 | |
Depreciation and amortization | 10,605 | 11,340 | 20,782 | 23,046 | |
Identifiable assets | 1,268,602 | 1,268,602 | 1,261,996 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (7,157) | (5,485) | (13,901) | (13,255) | |
Restructuring (recoveries) charges, net | 0 | 33 | 0 | 327 | |
Operating income | (7,157) | (5,485) | (13,901) | (13,255) | |
Capital expenditures | 684 | 851 | 853 | 1,203 | |
Depreciation and amortization | 232 | 162 | 451 | 332 | |
Identifiable assets | (822,571) | (822,571) | $ (806,327) | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | 23,708 | 16,565 | 52,082 | 26,972 | |
Operating income | 23,708 | 16,565 | 52,082 | 26,972 | |
Capital expenditures | 6,642 | 6,029 | 11,936 | 9,330 | |
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring related inventory charges | 0 | 0 | 0 | 2,757 | |
Acquisition amortization | 8,010 | 9,178 | 15,930 | 18,569 | |
Acquisition depreciation | 959 | 1,239 | 2,012 | 2,285 | |
Restructuring, impairment and other costs, net | $ 8,969 | $ 10,417 | $ 17,942 | $ 23,611 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2023 | May 31, 2022 | Apr. 30, 2022 | Apr. 30, 2018 | Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | Dec. 31, 2022 | Apr. 03, 2022 | Apr. 02, 2022 | |
Derivative [Line Items] | |||||||||||
Long-term debt | $ 529.6 | $ 529.6 | $ 516.9 | ||||||||
Restricted cash | 3.5 | 3.5 | 2.4 | ||||||||
Accounts receivable, purchase | 11.1 | $ 11.3 | 22.1 | $ 25.3 | |||||||
Proceeds from sale and collection of receivables | 9.9 | 10.1 | 19.8 | 22.8 | |||||||
Accounts receivable, sale, outstanding purchase price | 1.1 | 1.1 | 1.1 | 1.1 | |||||||
Derivative, term of contract | 4 years | ||||||||||
Consent fees, attorney fees, and documented expenses | $ 4.2 | ||||||||||
Unamortized discount and debt issuance costs | 23.1 | 23.1 | |||||||||
Extinguishment of debt | 5 | ||||||||||
Existing credit rolled into new agreement | 1.2 | 1.2 | |||||||||
Term Loans | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate, increase | 0.50% | ||||||||||
First Amendment, April 2022 | |||||||||||
Derivative [Line Items] | |||||||||||
Negative covenant threshold | 15% | ||||||||||
Loan restriction, cash equivalents threshold | $ 10 | ||||||||||
Payment of debt related fees | $ 12.5 | ||||||||||
First Amendment, April 2022 | Eurodollar Loans, Term Loans | |||||||||||
Derivative [Line Items] | |||||||||||
Stated percentage | 5.50% | ||||||||||
First Amendment, April 2022 | Eurodollar Loans, Credit Facility | |||||||||||
Derivative [Line Items] | |||||||||||
Stated percentage | 4.75% | ||||||||||
First Amendment, April 2022 | Swingline Loans | |||||||||||
Derivative [Line Items] | |||||||||||
Stated percentage | 3.75% | ||||||||||
Third Amendment, June 2023 | |||||||||||
Derivative [Line Items] | |||||||||||
Payment of debt related fees | $ 0.1 | ||||||||||
Interest Rate Swap | |||||||||||
Derivative [Line Items] | |||||||||||
Interest expense, net | $ 0.6 | 7.5 | |||||||||
London Interbank Offered Rate (LIBOR) | Interest Rate Swap | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative, basis spread on variable rate | 1% | ||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Third Amendment, June 2023 | |||||||||||
Derivative [Line Items] | |||||||||||
Variable rate | 0% | ||||||||||
Fair Value, Inputs, Level 2 | |||||||||||
Derivative [Line Items] | |||||||||||
Long-term debt, fair value | 532.6 | $ 532.6 | 502.7 | ||||||||
Minimum | |||||||||||
Derivative [Line Items] | |||||||||||
Accounts receivable, sale, percent | 90% | ||||||||||
Citizen Bank, National Association | Interest Rate Swap | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative, notional amount | $ 400 | ||||||||||
Term Loan | |||||||||||
Derivative [Line Items] | |||||||||||
Long-term debt, gross | 510.9 | $ 510.9 | 496.5 | ||||||||
Unamortized debt issuance expense | $ 18.7 | 18.7 | $ 20.4 | ||||||||
Debt instrument, periodic payment, interest | $ 28 | $ 18.4 | |||||||||
Unamortized discount and debt issuance costs | $ 15.5 | $ 12.6 | |||||||||
Line of Credit | Revolving Credit Facility | |||||||||||
Derivative [Line Items] | |||||||||||
Unamortized discount and debt issuance costs | $ 1.2 | $ 1.5 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Gains (Losses) Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2023 | Jul. 03, 2022 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Amount of (loss) reclassified from AOCI to earnings (interest expense, net of tax) | $ 0 | $ (1,849) |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Amount of (loss) recognized in OCI | $ 0 | $ (10) |
Guarantees and Indemnificatio_3
Guarantees and Indemnification Obligations (Product Warranty Reserves) (Details) - USD ($) | 6 Months Ended | |
Jul. 02, 2023 | Jul. 03, 2022 | |
Guarantees And Indemnification Obligations [Abstract] | ||
Liability for indemnification agreements | $ 0 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance beginning | 2,521,000 | $ 2,740,000 |
Provisions | 1,705,000 | 835,000 |
Claims settled | (1,112,000) | (1,043,000) |
Currency translation adjustment | 14,000 | (102,000) |
Balance ending | $ 3,128,000 | $ 2,430,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 customer | Jul. 02, 2023 USD ($) claimFiled | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Contingencies, Commitments And Guarantees [Line Items] | ||||
Claims filed against subsidiaries | claimFiled | 2 | |||
Contract termination | customer | 1 | |||
Loss contingency accrual | $ 4.5 | |||
Aggregate notional value standby letters of credit | $ 30.1 | 32.4 | ||
Industrial Segment Customer | Contract Termination | ||||
Contingencies, Commitments And Guarantees [Line Items] | ||||
Loss contingency, receivables allowance | $ 6.3 | |||
Outstanding guarantees of performance under contract | $ 3.4 | |||
Standby Letters of Credit | ||||
Contingencies, Commitments And Guarantees [Line Items] | ||||
Aggregate notional value standby letters of credit | $ 20 | $ 24.4 | ||
Minimum | ||||
Contingencies, Commitments And Guarantees [Line Items] | ||||
Expiration period | 1 month | |||
Maximum | ||||
Contingencies, Commitments And Guarantees [Line Items] | ||||
Expiration period | 5 years |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Pension Benefit Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Pension Benefits | U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | $ 1,917 | $ 1,000 | $ 3,834 | $ 2,000 |
Expected return on plan assets | (2,104) | (2,150) | (4,208) | (4,300) |
Amortization | 36 | 48 | 72 | 96 |
Net periodic benefit income | (151) | (1,102) | (302) | (2,204) |
Pension Benefits | Foreign Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 326 | 587 | 649 | 1,208 |
Interest cost | 842 | 344 | 1,671 | 710 |
Expected return on plan assets | (189) | (190) | (373) | (393) |
Amortization | (345) | 0 | (685) | 0 |
Net periodic benefit income | 634 | 741 | 1,262 | 1,525 |
Other Post-Retirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 84 | 53 | 168 | 106 |
Amortization | (85) | 0 | (170) | 0 |
Net periodic benefit income | $ 0 | $ 54 | $ 0 | $ 108 |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes To Loss From Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Income Tax Disclosure [Abstract] | ||||
(Loss) income before income taxes | $ (4,283) | $ 3,313 | $ (1,109) | $ (16,646) |
Effective tax rate | (100.10%) | (19.50%) | (709.60%) | (5.30%) |
Provision for income taxes | $ 4,288 | $ (647) | $ 7,869 | $ 875 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 03, 2022 | Jul. 02, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Domestic and foreign valuation allowances and cross-currency swap | $ 2.5 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 1.4 | $ 1.5 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jul. 02, 2023 | Jul. 03, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 26,184 | |
Shares authorized (in shares) | 2,000,000 | |
Shares available for grant (in shares) | 1,052,942 | |
Stock options granted (in shares) | 0 | 0 |
Compensation expense (benefit) | $ 2.3 | $ 0.4 |
Unrecognized compensation costs | $ 9.3 | |
Weighted average period of recognition of compensation expense | 2 years 1 month 6 days | |
Weighted average contractual term for stock options outstanding | 1 year 7 months 6 days | |
Selling, General and Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense (benefit) | 1 | |
Special Charges | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense (benefit) | $ (0.6) | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU outstanding (in shares) | 517,882 | |
Restricted stock units granted (in shares) | 211,491 | 1,009 |
Granted (in dollars per share) | $ 31.90 | $ 26.60 |
Performance target threshold capacity | 600% | |
Aggregate intrinsic value, settled | $ 1.3 | |
Aggregate intrinsic value, outstanding | $ 26 | |
Restricted Stock Units (RSUs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance target threshold | 0% | |
Restricted Stock Units (RSUs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance target threshold | 200% | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted (in shares) | 46,078 | 0 |
Performance period | 3 years | |
Restricted Stock Units Management Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted (in shares) | 37,020 | 0 |
Unit discount, fair value (in dollars per share) | $ 10.20 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2023 | Apr. 02, 2023 | Jul. 03, 2022 | Apr. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | $ 161,238 | $ 159,046 | $ 110,321 | $ 133,716 | $ 159,046 | $ 133,716 |
Other comprehensive income, net of tax | (886) | 2,016 | (10,710) | (1,331) | 1,130 | (12,041) |
Balance at end of period | 153,048 | 161,238 | 103,663 | 110,321 | 153,048 | 103,663 |
Total | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | (42,093) | (44,109) | (50,131) | (48,800) | (44,109) | (48,800) |
Other comprehensive income, net of tax | (886) | 2,016 | (10,710) | (1,331) | ||
Balance at end of period | (42,979) | (42,093) | (60,841) | (50,131) | (42,979) | (60,841) |
Foreign Currency Translation Adjustments | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | (66,887) | (54,432) | (66,887) | (54,432) | ||
Other comprehensive income, net of tax | 1,228 | (11,450) | ||||
Balance at end of period | (65,659) | (65,882) | (65,659) | (65,882) | ||
Pension, net | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | 22,778 | 4,944 | 22,778 | 4,944 | ||
Other comprehensive income, net of tax | (98) | 97 | ||||
Balance at end of period | 22,680 | 5,041 | 22,680 | 5,041 | ||
Derivative | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | $ 0 | $ 688 | 0 | 688 | ||
Other comprehensive income, net of tax | 0 | (688) | ||||
Balance at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Income (Loss) Per Common Shar_3
Income (Loss) Per Common Share ("EPS") - Schedule of Diluted Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 20,392 | 20,361 | 20,380 | 20,336 |
Effect of dilutive securities (in shares) | 0 | 67 | 0 | 0 |
Dilutive weighted average shares outstanding (in shares) | 20,392 | 20,428 | 20,380 | 20,336 |
Income (Loss) Per Common Shar_4
Income (Loss) Per Common Share ("EPS") - Narrative (Details) - $ / shares | 3 Months Ended | |
Jul. 02, 2023 | Jul. 03, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive options and RSUs (in shares) | 16,680 | 102,869 |
Share-based payment arrangement, option, exercise price range, lower range limit (in dollars per share) | $ 42.62 | $ 31.52 |
Share-based payment arrangement, option, exercise price range, upper range limit (in dollars per share) | $ 60.99 | $ 60.99 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Jul. 26, 2023 USD ($) |
Subsequent Event [Line Items] | |
Net proceeds on sale | $ 15.4 |
Sale-leaseback term | 15 years |