Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-31225 | |
Entity Registrant Name | ENPRO INDUSTRIES, INC | |
Entity Incorporation, State or Country Code | NC | |
Entity Tax Identification Number | 01-0573945 | |
Entity Address, Address Line One | 5605 Carnegie Boulevard | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28209 | |
City Area Code | 704 | |
Local Phone Number | 731-1500 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | NPO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,515,457 | |
Entity Central Index Key | 0001164863 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 282.7 | $ 303 |
Cost of sales | 187.4 | 203.5 |
Gross profit | 95.3 | 99.5 |
Operating expenses: | ||
Selling, general and administrative | 73.2 | 81.5 |
Other | 1.6 | 1.4 |
Total operating expenses | 74.8 | 82.9 |
Operating income | 20.5 | 16.6 |
Interest expense | (4.7) | (5.2) |
Interest income | 0.7 | 0.7 |
Other income (expense) | 1.4 | (1.5) |
Income from continuing operations before income taxes | 17.9 | 10.6 |
Income tax expense | (7.7) | (2.8) |
Income from continuing operations | 10.2 | 7.8 |
Less: income attributable to redeemable non-controlling interest, net of tax | 0.1 | 0 |
Income from continuing operations attributable to EnPro Industries, Inc. | 10.1 | 7.8 |
Income from discontinued operations, net of tax | 208.6 | 5.3 |
Net income attributable to EnPro Industries, Inc. | 218.7 | 13.1 |
Comprehensive income | 197.2 | 19.9 |
Less: comprehensive income attributable to redeemable non-controlling interest | 1 | 0 |
Comprehensive income attributable to EnPro Industries, Inc. | $ 196.2 | $ 19.9 |
Basic earnings per share attributable to EnPro Industries, Inc.: | ||
Continuing operations (in dollars per share) | $ 0.49 | $ 0.37 |
Discontinued operations (in dollars per share) | 10.13 | 0.26 |
Net income per share (in dollars per share) | 10.62 | 0.63 |
Diluted earnings per share attributable to EnPro Industries, Inc.: | ||
Continuing operations (in dollars per share) | 0.49 | 0.37 |
Discontinued operations (in dollars per share) | 10.10 | 0.26 |
Net income per share (in dollars per share) | $ 10.59 | $ 0.63 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES OF CONTINUING OPERATIONS | ||
Net income attributable to EnPro Industries, Inc. | $ 218.7 | $ 13.1 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities of continuing operations: | ||
Income. from discontinued operations, net of taxes | (208.6) | (5.3) |
Depreciation | 7.5 | 7.4 |
Amortization | 9.7 | 8.2 |
Deferred income taxes | (0.6) | (1.7) |
Stock-based compensation | 1.3 | 1.7 |
Other non-cash adjustments | 1.2 | 1.5 |
Change in assets and liabilities, net of effects of acquisition and divestitures of businesses: | ||
Accounts receivable, net | (27.3) | (16.6) |
Inventories | 0.7 | (10.7) |
Accounts payable | 0.2 | (7.6) |
Other current assets and liabilities | (5.7) | 9.6 |
Other non-current assets and liabilities | 3.2 | (0.9) |
Net cash provided by (used in) operating activities of continuing operations | 0.3 | (1.3) |
INVESTING ACTIVITIES OF CONTINUING OPERATIONS | ||
Purchases of property, plant and equipment | (5.2) | (4.1) |
Proceeds from sale of businesses | 441.3 | 0 |
Other | (2) | (0.1) |
Net cash provided by (used in) investing activities of continuing operations | 434.1 | (4.2) |
FINANCING ACTIVITIES OF CONTINUING OPERATIONS | ||
Proceeds from debt | 24.9 | 120.8 |
Repayments of debt | (159.3) | (111.6) |
Repurchase of common stock | (5.3) | (2) |
Dividends paid | (5.5) | (5.4) |
Other | (1.3) | (3.4) |
Net cash used in financing activities of continuing operations | (146.5) | (1.6) |
CASH FLOWS OF DISCONTINUED OPERATIONS | ||
Operating cash flows | (6.2) | 11.2 |
Investing cash flows | 0 | (6.2) |
Net cash provided by (used in) discontinued operations | (6.2) | 5 |
Effect of exchange rate changes on cash and cash equivalents | (11.9) | 3.4 |
Net increase in cash and cash equivalents | 269.8 | 1.3 |
Cash and cash equivalents at beginning of period | 121.2 | 129.6 |
Cash and cash equivalents at end of period | 391 | 130.9 |
Cash paid (received) during the period for: | ||
Interest, net | (2.3) | (1.6) |
Income taxes, net | 2.6 | (12.5) |
Non-cash investing and financing activities: | ||
Non-cash acquisitions of property, plant, and equipment | $ 0.7 | $ 0.7 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 391 | $ 121.2 |
Accounts receivable, net | 187.1 | 160.8 |
Inventories | 153.4 | 157.1 |
Prepaid expenses and other current assets | 50.2 | 56.3 |
Current assets held for sale | 0 | 254.1 |
Total current assets | 781.7 | 749.5 |
Property, plant and equipment, net | 208.9 | 218.8 |
Goodwill | 474.6 | 485.3 |
Other intangible assets, net | 448.4 | 466.9 |
Other assets | 128 | 114.6 |
Total assets | 2,041.6 | 2,035.1 |
Current liabilities | ||
Current maturities of long-term debt | 3.9 | 4.1 |
Accounts payable | 79.7 | 82.7 |
Accrued expenses | 109.3 | 123.8 |
Income tax payable | 88.4 | 13.5 |
Current liabilities held for sale | 0 | 89.5 |
Total current liabilities | 281.3 | 313.6 |
Long-term debt | 491.1 | 625.2 |
Deferred taxes and non-current income taxes payable | 67.1 | 74.6 |
Other liabilities | 101.2 | 106.8 |
Total liabilities | 940.7 | 1,120.2 |
Commitments and contingencies | ||
Redeemable non-controlling interest | 29 | 28 |
Shareholders’ equity | ||
Common stock – $.01 par value; 100,000,000 shares authorized; issued, 20,699,915 shares in 2020 and 20,785,346 shares in 2019 | 0.2 | 0.2 |
Additional paid-in capital | 286.3 | 292.1 |
Retained earnings | 845.5 | 632.2 |
Accumulated other comprehensive loss | (58.9) | (36.4) |
Common stock held in treasury, at cost – 185,764 shares in 2020 and 186,516 shares in 2019 | (1.2) | (1.2) |
Total shareholders’ equity | 1,071.9 | 886.9 |
Total liabilities and equity | $ 2,041.6 | $ 2,035.1 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 20,699,915 | 20,785,346 |
Treasury stock, shares (in shares) | 185,764 | 186,516 |
Overview, Basis of Presentation
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance | Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance Overview EnPro Industries, Inc. (“we,” “us,” “our,” “EnPro” or the “Company”) is a leader in the design, development, manufacture, and marketing of proprietary engineered industrial products that primarily include: sealing products; heavy-duty truck wheel-end component systems; self-lubricating non-rolling bearing products; precision engineered components and lubrication systems for reciprocating compressors; hoses and fittings for the hygienic process industries; bellows and bellow assemblies; pedestals for semiconductor manufacturing; and PTFE products. In addition to these products, we also provide cleaning and refurbishment services for critical components and assemblies used in state-of-the-art semiconductor equipment. Basis of Presentation The accompanying interim consolidated financial statements are unaudited, and certain related information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted in accordance with Rule 10-01 of Regulation S-X. They were prepared following the same policies and procedures used in the preparation of our annual financial statements except as disclosed below and reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of results for the periods presented. The Consolidated Balance Sheet as of December 31, 2019 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2019 . The results of operations for the interim periods are not necessarily indicative of the results for the fiscal year. These consolidated financial statements should be read in conjunction with our annual consolidated financial statements for the year ended December 31, 2019 included within our annual report on Form 10-K. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. The recent outbreak of the coronavirus, or COVID-19, which has been declared by the World Health Organization to be a "pandemic," has caused us to evaluate our accounting estimates that require the consideration of forecasted financial information, including, but not limited to, our allowance for credit losses, the carrying value of our goodwill, intangible assets, and other long-lived assets. This assessment was conducted in the context of information that was reasonably available to us, as well as our consideration of the future potential impacts of COVID-19 on our business as of March 31, 2020. We determined that due to many of our businesses being deemed "essential" under applicable governmental orders otherwise restricting business activities, the limited downtime of our operations, and our ability to adapt and to continue to operate in our current environment, that no triggering event existed at March 31, 2020 and an interim impairment test was not performed. However, because of uncertainties at this time with respect to the severity and duration of the COVID-19 outbreak, the duration and terms of related governmental orders restricting activities, and the timing and pace of any economic recovery as COVID-19 impacts ultimately abate, we cannot predict with specificity the extent and duration of any future impact on our business and financial results from COVID-19. In addition, although most of our operations have been treated as “essential” operations under applicable government orders restricting business activities that have been issued to date, and accordingly have been permitted to continue to operate, it is possible that they may not continue to be so treated under future government orders, or, even if so treated, site-specific health and safety concerns might otherwise require certain of our operations to be halted for some period of time. Accordingly, if the impact is more severe or longer in duration than we have projected, such impact could potentially result in impairments of assets and increases in credit allowances in future periods. All intercompany accounts and transactions between our consolidated operations have been eliminated. Our acquisition of all of the equity securities of LeanTeq Co, Ltd. and its affiliate LeanTeq LLC (collectively "LeanTeq") in 2019 resulted in rollover equity from two of LeanTeq sellers (the “Sellers”) who were executives of the acquired entity. This rollover equity gives the Sellers approximately a 10% ownership share (the "Rollover Equity") of Lunar Investment LLC, our subsidiary that purchased LeanTeq. We have the right to buy, and the non-controlling interest holders have the right to sell, the Rollover Equity within 90 days following the third anniversary of the closing of the acquisition of LeanTeq. We have accounted for this transaction as redeemable non-controlling interests and have recorded the redeemable non-controlling interest in a mezzanine section on our accompanying consolidated balance sheets, located between liabilities and equity. Earnings associated with the redeemable non-controlling interest are reflected as income attributable to redeemable non-controlling interest, net of tax in the accompanying consolidated statements of operations. In January 2020, we adopted a new accounting standard that changes how we measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, including trade receivables. The standard requires us to estimate our lifetime “expected credit loss” for such assets at inception, and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. We applied a current expected credit loss model ("CECL") to our trade receivables. Given the nature of our trade receivables, a complex modeling system to develop forward-looking models was not necessary. Since our receivables are short-term, reasonable and supportable forecasted information was not readily available and our application of CECL relied on historical information and existing economic conditions. We will continue to monitor the collectability of our receivables as well as apply any supportable forecast information as it becomes available to make adjustments to our estimated reserve. We applied our CECL model to our trade receivables at January 1, 2020 using a modified retrospective transition approach. Upon adoption, we recorded a $0.1 million increase to our allowance for credit losses with a corresponding decrease to retained earnings. Changes in our allowance for doubtful accounts for the three months ended March 31, 2020 were as follows: (in millions) Balance at December 31, 2019 $ 3.7 Adoption of new accounting standard 0.1 Charge to expense 0.3 Balance at March 31, 2020 $ 4.1 Additionally, in January 2020, we adopted a standard to simplify annual and interim goodwill impairment testing for public business entities. Under the standard, we will perform our annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Upon adoption, there was no impairment of goodwill recorded and this standard is applied following adoption on a prospective basis for all annual and interim goodwill impairment assessments. Recently Issued Authoritative Accounting Guidance In December 2019, a standard was issued that will simplify the accounting for income taxes in nine unrelated areas. The standard is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We are currently evaluating the new guidance and do not expect its impact to be material to our consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During the fourth quarter of 2019, we entered into an agreement to sell the Fairbanks Morse division, which comprised our entire Power Systems segment. The sale of Fairbanks Morse closed on January 21, 2020 to an affiliate of funds managed by private equity firm Arcline Investment Management for a sales price of $450.0 million . The preliminary pre-tax gain on the disposition of Fairbanks Morse was $274.3 million ( $209.7 million , net of tax). We have reported, for all periods presented, the financial condition, results of operations, and cash flows of Fairbanks Morse as discontinued operations in the accompanying financial statements. For the three months ended March 31, 2020 and 2019 , the results of operations from Fairbanks Morse, prior to sale on January 21, 2020, were as follows: 2020 2019 (in millions) Net sales $ 7.6 $ 57.9 Cost of sales 7.6 44.3 Gross profit — 13.6 Operating expenses: Selling, general, and administrative expenses 1.5 6.3 Other (0.1 ) — Total operating expenses 1.4 6.3 Income (loss) from discontinued operations before income tax (1.4 ) 7.3 Income tax benefit (expense) 0.3 (2.0 ) Income (loss) from discontinued operations, net of tax (1.1 ) 5.3 Gain from sale of discontinued operations, net of tax 209.7 — Income from discontinued operations, net of tax $ 208.6 $ 5.3 The major classes of assets and liabilities for Fairbanks Morse as of December 31, 2019 are shown below: (in millions) Assets: Accounts receivable $ 107.8 Inventories 60.2 Property, plant, and equipment 63.0 Goodwill 11.8 Other assets 11.3 Total assets of discontinued operations $ 254.1 Liabilities: Accounts payable $ 36.9 Accrued expenses 48.2 Other liabilities 4.4 Total liabilities of discontinued operations $ 89.5 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On September 25, 2019, we acquired all of the equity securities of LeanTeq. LeanTeq primarily provides refurbishment services for critical components and assemblies used in state-of-the-art semiconductor equipment. This equipment is used to produce the latest and most technologically advanced microchips for smartphones, autonomous vehicles, high-speed wireless connectivity, artificial intelligence, and other leading-edge applications. Founded in 2011 and headquartered in Taoyuan City, Taiwan, LeanTeq has two locations in Taiwan and one in the United States (Silicon Valley). LeanTeq is included as part of our Technetics Group within the Sealing Products segment. On July 2, 2019, we acquired 100% of the stock of The Aseptic Group (comprising Aseptic Process Equipment SAS and Aseptic Services SARL, collectively referred to as “Aseptic”), which distributes, designs and manufactures aseptic fluid transfer products for the pharmaceutical and biopharmaceutical industries. Aseptic, headquartered in Limonest, France, is included as part of our Garlock group of companies within the Sealing Products segment. The following pro forma condensed consolidated financial results of operations for the three months ended March 31, 2019 are presented as if the acquisitions had been completed prior to 2019: (in millions) Pro forma net sales $ 314.7 Pro forma income from continuing operations 6.9 These amounts have been calculated after applying our accounting policies and adjusting the results of LeanTeq and Aseptic to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied prior to 2019 as well as additional interest expense to reflect financing required, together with the consequential tax effects. These pro forma financial results have been prepared for comparative purposes only and do not reflect the effect of synergies that would have been expected to result from the integration of these acquisitions. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the acquisitions occurred prior to 2019, or of future results of the consolidated entities. We received $0.1 million |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax expense and resulting effective tax rate are based upon the estimated annual effective tax rates applicable for the respective periods adjusted for the effect of items required to be treated as discrete in the interim periods. This estimated annual effective tax rate is affected by the relative proportions of revenue and income before taxes in the jurisdictions in which we operate. Based on the geographical mix of earnings our annual effective tax rate fluctuates based on the portion of our profits earned in each jurisdiction. The effective tax rates for the three months ended March 31, 2020 and 2019 were 43.2% and 27.1% , respectively. The effective tax rate for the three months ended March 31, 2020 reflects the impact of the minimum tax on certain non-U.S. earnings, current year increase in valuation allowance against certain net operating losses and higher tax rates in most foreign jurisdictions. The effective tax rate for the three months ended March 31, 2019 reflects the minimum tax on certain non-U.S. earnings, higher tax rates in most foreign jurisdictions and adjustments to state net operating losses. In June 2017, the IRS began an examination of our 2014 U.S. federal income tax return. Although this examination is part of a routine and recurring cycle, we cannot predict the final outcome or expected conclusion date of the audit. Various foreign and state tax returns are also currently under examination and some of these exams may conclude within the next twelve months. The final outcomes of these audits are not yet determinable; however, management believes that any assessments that may arise will not have a material effect on our financial results. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Three months ended March 31, 2020 2019 (in millions, except per share amounts) Numerator (basic and diluted): Income from continuing operations attributable to EnPro Industries, Inc. $ 10.1 $ 7.8 Income from discontinued operations 208.6 5.3 Net income attributable to EnPro Industries, Inc. $ 218.7 $ 13.1 Denominator: Weighted-average shares – basic 20.6 20.8 Share-based awards — 0.1 Weighted-average shares – diluted 20.6 20.9 Basic earnings per share attributable to EnPro Industries, Inc.: Continuing operations $ 0.49 $ 0.37 Discontinued operations 10.13 0.26 Net income per share $ 10.62 $ 0.63 Diluted earnings per share attributable to EnPro Industries, Inc.: Continuing operations $ 0.49 $ 0.37 Discontinued operations 10.10 0.26 Net income per share $ 10.59 $ 0.63 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories March 31, December 31, (in millions) Finished products $ 74.1 $ 80.6 Work in process 24.7 23.7 Raw materials and supplies 57.9 56.1 156.7 160.4 Reserve to reduce certain inventories to LIFO basis (3.3 ) (3.3 ) Total inventories $ 153.4 $ 157.1 We use the last-in, first-out (“LIFO”) method of valuing certain of our inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs, which are subject to change until the final year-end LIFO inventory valuation. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the net carrying value of goodwill by reportable segment for the three months ended March 31, 2020 , are as follows: Sealing Products Engineered Products Total (in millions) Goodwill as of December 31, 2019 $ 474.4 $ 10.9 $ 485.3 Acquisition of business (0.1 ) — (0.1 ) Foreign currency translation (10.4 ) (0.2 ) (10.6 ) Goodwill as of March 31, 2020 $ 463.9 $ 10.7 $ 474.6 The goodwill balances reflected above are net of accumulated impairment losses of $27.8 million for the Sealing Products segment and $154.8 million for the Engineered Products segment as of March 31, 2020 and December 31, 2019 . Identifiable intangible assets are as follows: As of March 31, 2020 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (in millions) Amortized: Customer relationships $ 460.2 $ 169.0 $ 470.1 $ 166.2 Existing technology 114.0 51.5 117.5 50.8 Trademarks 38.9 24.1 39.4 24.1 Other 33.3 24.2 33.6 24.0 646.4 268.8 660.6 265.1 Indefinite-Lived: Trademarks 70.8 — 71.4 — Total $ 717.2 $ 268.8 $ 732.0 $ 265.1 Amortization for the three months ended March 31, 2020 and 2019 was $9.0 million and $6.8 million , respectively. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses March 31, December 31, (in millions) Salaries, wages and employee benefits $ 39.1 $ 43.7 Interest 10.7 5.1 Environmental 10.7 25.2 Warranty 4.1 4.1 Taxes other than income 11.0 9.1 Operating lease liabilities 9.0 9.3 Other 24.7 27.3 $ 109.3 $ 123.8 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Revolving Credit Facility On September 25, 2019, we entered into a First Amendment (the "First Amendment") to our Second Amended and Restated Credit Agreement (the "Credit Agreement”) among EnPro Industries, Inc. and EnPro Holdings, Inc., a wholly owned subsidiary of the Company (“EnPro Holdings”), as borrowers, the guarantors party thereto, the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer. The Credit Agreement provides for a five -year, senior secured revolving credit facility of $400.0 million (the “Revolving Credit Facility”) and a five-year, senior secured term loan facility of $150.0 million (the "Term Loan Facility" and, together with the Revolving Credit Facility, the "Facilities"). The Amended Credit Agreement also provides that the borrowers may seek incremental term loans and/or additional revolving credit commitments in an amount equal to the greater of $225.0 million and 100% of consolidated EBITDA (as defined) for the most recently ended four-quarter period for which we have reported financial results, plus additional amounts based on a consolidated senior secured leverage ratio. Initially, borrowings under the Facilities bore interest at an annual rate of LIBOR plus 1.50% or base rate plus 0.50% , with the interest rates under the Facilities being subject to incremental increases based on a consolidated total net leverage ratio. In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility at an annual rate of 0.175% , which rate is also subject to incremental increase or decrease based on a consolidated total net leverage ratio. The Term Loan Facility amortizes on a quarterly basis in an annual amount equal to 2.50% of the original principal amount of the Term Loan Facility in each of years one through three, 5.00% of such original principal amount in year four, and 1.25% of such original principal amount in each of the first three quarters of year five, with the remaining outstanding principal amount payable at maturity. The Facilities are subject to prepayment with the net cash proceeds of certain asset sales, casualty or condemnation events, and non-permitted debt issuances. EnPro and EnPro Holdings are the permitted borrowers under the Revolving Credit Facility. We have the ability to add foreign subsidiaries as borrowers under the Revolving Credit Facility for up to $100.0 million (or its foreign currency equivalent) in aggregate borrowings, subject to certain conditions. Each of our domestic, consolidated subsidiaries are required to guarantee the obligations of the borrowers under the Revolving Credit Facility, and each of our existing domestic, consolidated subsidiaries has entered into the Credit Agreement to provide such a guarantee. Borrowings under the Revolving Credit Facility are secured by a first-priority pledge of certain assets. The Credit Agreement contains certain financial covenants and required financial ratios including a maximum consolidated total net leverage and a minimum consolidated interest coverage as defined in the Credit Agreement. We were in compliance with all covenants of the Credit Agreement as of March 31, 2020 . The borrowing availability under the Revolving Credit Facility at March 31, 2020 was $387.4 million after giving consideration to $12.6 million of outstanding letters of credit. We have $149.1 million outstanding on our Term Loan Facility borrowings. Senior Notes In October 2018, we completed the offering of $350.0 million aggregate principal amount of 5.75% Senior Notes due 2026 (the "Senior Notes"). The Senior Notes are unsecured, unsubordinated obligations of EnPro and mature on October 15, 2026. Interest on the Senior Notes accrues at a rate of 5.75% per annum and is payable semi-annually in cash in arrears on April 15 and October 15 of each year, commencing on April 15, 2019. The Senior Notes are required to be guaranteed on a senior unsecured basis by each of EnPro's existing and future direct and indirect domestic subsidiaries that is a borrower under, or guarantees, our indebtedness under the Revolving Credit Facility or guarantees any other Capital Markets Indebtedness (as defined in the indenture governing the Senior Notes) of EnPro or any of the guarantors. On or after October 15, 2021, we may, on any one or more occasion, redeem all or part of the Senior Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may redeem a portion of the aggregate principal amount of the Senior Notes before October 15, 2021 with the net cash proceeds from certain equity offerings at a specified redemption price plus accrued and unpaid interest, if any, to, but not including, the redemption price. We may also redeem some or all of the Senior Notes before October 15, 2021 at a redemption price of 100% of the principal amount, plus accrued and unpaid interest, if any, but not including, the redemption date, plus a "make whole" premium. Each holder of the Senior Notes may require us to repurchase some or all of the Senior Notes held by such holder for cash upon the occurrence of a defined "change of control" event. Our ability to redeem the Senior Notes prior to maturity is subject to certain conditions, including in certain cases the payment of make-whole amounts. The indenture governing the Senior Notes included covenants that restrict our ability to engage in certain activities, including incurring additional indebtedness, paying dividends, and repurchasing shares of our common stock, subject in each case to specified exceptions and qualifications set forth in the indenture. The indenture further requires us to apply the net cash proceeds of certain asset sales not invested in acquisitions, assets, property or capital expenditures or used to repay or otherwise reduce specified indebtedness within a specified period, in the event of the net proceeds exceeding a specified amount, to offer to repurchase the Senior Notes at a price equal to 100% |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Postretirement Benefits | Pensions and Postretirement Benefits The components of net periodic benefit cost for our U.S. and foreign defined benefit pension and other postretirement plans for the three months ended March 31, 2020 and 2019 , are as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 (in millions) Service cost $ 1.0 $ 1.1 $ — $ 0.1 Interest cost 2.8 3.0 — — Expected return on plan assets (4.7 ) (4.0 ) — — Amortization of net loss (gain) 1.3 1.6 (1.1 ) — Curtailment loss 0.3 — — — Net periodic benefit cost $ 0.7 $ 1.7 $ (1.1 ) $ 0.1 No contributions were made in the three months ended March 31, 2020 to our U.S. defined benefit pension plans and we currently do no t expect to make any contributions in the remainder of 2020 . |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Changes in shareholders' equity for the three months ended March 31, 2020 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Permanent Shareholders' Equity Redeemable non-controlling interest (in millions, except per share data) Shares Amount Balance, December 31, 2019 20.6 $ 0.2 $ 292.1 $ 632.2 $ (36.4 ) $ (1.2 ) $ 886.9 $ 28.0 Adoption of new accounting standard — — — (0.1 ) — — (0.1 ) — Net income — — — 218.7 — — 218.7 0.1 Other comprehensive income (loss) — — — — (22.5 ) — (22.5 ) 0.9 Dividends ($0.26 per share) — — — (5.3 ) — — (5.3 ) — Share repurchases (0.1 ) — (5.3 ) — — — (5.3 ) — Incentive plan activity — — 1.0 — — — 1.0 — Other — — (1.5 ) — — — (1.5 ) — Balance, March 31, 2020 20.5 $ 0.2 $ 286.3 $ 845.5 $ (58.9 ) $ (1.2 ) $ 1,071.9 $ 29.0 Changes in shareholders' equity for the three months ended March 31, 2019 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders' Equity (in millions, except per share data) Shares Amount Balance, December 31, 2018 20.7 $ 0.2 $ 301.0 $ 603.3 $ (45.5 ) $ (1.3 ) $ 857.7 Adoption of new accounting standard — — — 11.5 (11.5 ) — — Net income — — — 13.1 — — 13.1 Other comprehensive income — — — — 6.8 — 6.8 Dividends ($0.25 per share) — — — (5.3 ) — — (5.3 ) Share repurchases — — (2.4 ) — — — (2.4 ) Incentive plan activity 0.1 — 1.2 — — — 1.2 Balance, March 31, 2019 20.8 0.2 299.8 622.6 (50.2 ) (1.3 ) 871.1 We intend to declare regular quarterly cash dividends on our common stock, as determined by our board of directors, after taking into account our cash flows, earnings, financial position, debt covenants and other relevant matters. In accordance with this policy, total dividend payments of $5.5 million were made during the three months ended March 31, 2020 . In April 2020, our board of directors declared a dividend of $0.26 per share, payable on June 17, 2020 to all shareholders of record as of June 3, 2020. In October 2018, our board of directors authorized the repurchase of up to $50.0 million of our outstanding common shares. During the three months ended March 31, 2020 we repurchased 0.1 million shares for $5.3 million . In light of the COVID-19 pandemic, we suspended share repurchases under the program during March 2020. The remaining amount of authorized purchases in the program at March 31, 2020 was $29.7 million . The board of directors' authorization expires in October 2020. In February 2020, we issued 0.1 million shares of stock options with an exercise price of $53.78 to certain key executives. The options vest pro-rata at the end of years one, two, and three from the grant date, subject to continued employment. No options have a term greater than 10 years . We determine the fair value of stock options using the Black-Scholes option pricing formula. Key inputs into this formula include expected term, expected volatility, expected dividend yield, and the risk-free interest rate. This fair value is amortized on a straight line basis over the vesting period. The expected term represents the period that our stock options are expected to be outstanding, and is determined based on historical experience of similar awards, given the contractual terms of the awards, vesting schedules, and expectations of future employee behavior. The fair value of stock options reflects a volatility factor calculated using historical market data for EnPro's common stock. The time frame used was approximated as a six -year period from the grant date for the awards. The dividend assumption is based on our current expectations for our dividend policy. We base the risk-free interest rate on the yield to maturity at the time of the stock option grant on zero-coupon U.S. government bonds having a remaining life equal to the option's expected life. When estimating forfeitures, we consider voluntary termination behaviors as well as analysis of actual option forfeitures. The option awards issued in 2020 had a fair value of $13.64 per share at their grant date. The following assumptions were used to estimate the fair value of the 2020 option awards: Average expected term 6 years Expected volatility 31.53 % Risk-free interest rate 1.17 % Expected dividend yield 1.93 % |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We aggregate our operating businesses into two reportable segments. The factors considered in determining our reportable segments are the economic similarity of the businesses, the nature of products sold or services provided, the production processes and the types of customers and distribution methods. Our reportable segments are managed separately based on these differences. Our Sealing Products segment designs, manufactures and sells sealing products, including: metallic, non-metallic and composite material gaskets, dynamic seals, compression packing, resilient metal seals, elastomeric seals, custom-engineered mechanical seals for applications in the aerospace industry and other markets, hydraulic components, expansion joints, flange sealing and isolation products, pipeline casing spacers/isolators, casing end seals, modular sealing systems for sealing pipeline penetrations, sanitary gaskets, hoses and fittings for the hygienic process industries, fluid transfer products for the pharmaceutical and biopharmaceutical industries, hole forming products, manhole infiltration sealing systems, bellows and bellows assemblies, pedestals for semiconductor manufacturing, PTFE products, and heavy-duty commercial vehicle parts used in the wheel-end, braking, and suspension. In addition to these products, we also provide cleaning and refurbishment services for critical components and assemblies used in state-of-the-art semiconductor equipment. The equipment serviced is used to produce advanced microchips for smartphones, autonomous vehicles, high-speed wireless connectivity, artificial intelligence, and other applications. Our Engineered Products segment includes operations that design, manufacture and sell self-lubricating, non-rolling metal-polymer, solid polymer and filament wound bearing products, aluminum blocks for hydraulic applications, and precision engineered components and lubrication systems for reciprocating compressors. Segment profit is total segment revenue reduced by operating expenses, restructuring and other costs identifiable with the segment. Corporate expenses include general corporate administrative costs. Expenses not directly attributable to the segments, corporate expenses, net interest expense, gains and losses related to the sale of assets, and income taxes are not included in the computation of segment profit. The accounting policies of the reportable segments are the same as those for EnPro. Segment operating results and other financial data for the three months ended March 31, 2020 and 2019 were as follows: 2020 2019 (in millions) Sales Sealing Products $ 216.1 $ 224.5 Engineered Products 67.9 79.5 284.0 304.0 Intersegment sales (1.3 ) (1.0 ) Net sales $ 282.7 $ 303.0 Segment Profit Sealing Products $ 25.7 $ 20.8 Engineered Products 3.4 6.2 Total segment profit 29.1 27.0 Corporate expenses (8.5 ) (9.6 ) Interest expense, net (4.0 ) (4.5 ) Other income (expense), net 1.3 (2.3 ) Income from continuing operations before income taxes $ 17.9 $ 10.6 Segment assets are as follows: March 31, December 31, (in millions) Sealing Products $ 1,317.2 $ 1,337.6 Engineered Products 235.2 238.3 Corporate 489.2 205.1 Discontinued operations — 254.1 $ 2,041.6 $ 2,035.1 Backlog As of March 31, 2020 , the aggregate amount of transaction price of remaining performance obligations, or backlog, on a consolidated basis was $202.9 million . Approximately 96% of these obligations are expected to be satisfied within one year . There is no certainty these orders will result in actual sales at the times or in the amounts ordered. In addition, for most of our business, this total is not particularly predictive of future performance because of our short lead times and some seasonality. Revenue by End Market Due to the diversified nature of our business and the wide array of products that we offer, we sell into a number of end markets. Underlying economic conditions within these markets are a major driver of our segments' sales performance. Below is a summary of our third party sales by major end market with which we did business for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 (in millions) Sealing Products Engineered Products Total Aerospace $ 12.5 $ 2.3 $ 14.8 Automotive 0.2 20.5 20.7 Chemical and material processing 12.9 10.1 23.0 Food and pharmaceutical 11.2 0.5 11.7 General industrial 46.0 19.4 65.4 Medium-duty/heavy-duty truck 68.8 0.1 68.9 Oil and gas 15.0 10.4 25.4 Power generation 9.9 4.4 14.3 Semiconductors 36.5 — 36.5 Other 1.9 0.1 2.0 Total third party sales $ 214.9 $ 67.8 $ 282.7 Three Months Ended March 31, 2019 (in millions) Sealing Products Engineered Products Total Aerospace $ 12.1 $ 2.7 $ 14.8 Automotive 1.0 23.3 24.3 Chemical and material processing 15.4 12.2 27.6 Food and pharmaceutical 9.7 0.2 9.9 General industrial 43.5 26.3 69.8 Medium-duty/heavy-duty truck 89.2 0.2 89.4 Oil and gas 14.3 10.5 24.8 Power generation 10.6 2.4 13.0 Semiconductors 25.6 — 25.6 Other 2.3 1.5 3.8 Total third party sales $ 223.7 $ 79.3 $ 303.0 |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Credit Derivatives [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging In September 2018, we entered into cross-currency swap agreements (the "Original Swap") with a notional amount of $200.0 million to manage foreign currency risk by effectively converting a portion of the interest payments related to our fixed- rate U.S. Dollar (“USD”)-denominated Senior Notes, including the semi-annual interest payments thereunder, to interest payments on fixed-rate Euro-denominated debt of 172.8 million EUR with a weighted average interest rate of 2.8% , with interest payment dates of March 15 and September 15 of each year. The Original Swap agreement matures on September 15, 2022. In May 2019, we entered into additional cross-currency swap agreements (the "Additional Swap") with a notional amount of $100.0 million to manage an increased portion of our foreign currency risk by effectively converting a portion of the interest payments related to our fixed-rate USD-denominated Senior Notes, including the semi-annual interest payments thereunder, to interest payments on fixed-rate Euro-denominated debt of 89.6 million EUR with a weighted average interest rate of 3.5% , with interest payment dates of April 15 and October 15 of each year. The Additional Swap agreement matures on October 15, 2026. During the term of the swap agreements, we will receive semi-annual payments from the counterparties due to the difference between the interest rate on the Senior Notes and the interest rate on the Euro debt underlying each of the swaps. There was no principal exchange at the inception of the arrangements, and there will be no exchange at maturity. At maturity (or earlier at our option), we and the counterparties will settle the swap agreements at their fair value in cash based on the aggregate notional amount and the then-applicable currency exchange rate compared to the exchange rate at the time the swap agreements were entered into. We have designated these cross-currency swaps as qualifying hedging instruments and are accounting for them as a net investment hedge. At March 31, 2020 , the combined fair values of the Original Swap and the Additional Swap were recorded as a $27.0 million asset within other assets on the Consolidated Balance Sheet. The gains and losses resulting from fair value adjustments to the cross currency-swap agreements, excluding interest accruals related to the above receipts, are recorded in accumulated other comprehensive loss within our cumulative foreign currency translation adjustment, as the swaps are effective in hedging the designated risk. Cash flows related to the cross-currency swaps are included in operating activities in the Consolidated Statements of Cash Flows, aside from the ultimate settlement at maturity with the counterparties, which will be included in investing activities. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of March 31, 2020 December 31, 2019 (in millions) Assets Time deposits $ 25.0 $ 22.9 Foreign currency derivatives 27.0 12.3 Deferred compensation assets 11.2 10.9 $ 63.2 $ 46.1 Liabilities Deferred compensation liabilities $ 11.3 $ 11.3 Foreign currency derivatives — 0.6 $ 11.3 $ 11.9 Our time deposits and deferred compensation assets and liabilities are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Our foreign currency derivatives are classified as Level 2 as their value is calculated based upon observable inputs including market USD/Euro exchange rates and market interest rates. The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximated their respective fair values except for the following instruments: March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (in millions) Long-term debt $ 495.0 $ 491.6 $ 629.3 $ 658.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component (after tax) for the three months ended March 31, 2020 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ 9.8 $ (46.2 ) $ (36.4 ) Other comprehensive loss before reclassifications (22.1 ) — (22.1 ) Amounts reclassified from accumulated other comprehensive loss — 0.5 0.5 Net current-period other comprehensive income (loss) (22.1 ) 0.5 (21.6 ) Less: other comprehensive income attributable to redeemable non-controlling interests 0.9 — 0.9 Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (23.0 ) 0.5 (22.5 ) Ending balance $ (13.2 ) $ (45.7 ) $ (58.9 ) Changes in accumulated other comprehensive loss by component (after tax) for the three months ended March 31, 2019 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (10.6 ) $ (34.9 ) $ (45.5 ) Adoption of new accounting standard — (11.5 ) (11.5 ) Adjusted beginning balance (10.6 ) (46.4 ) (57.0 ) Other comprehensive income before reclassifications 5.8 — 5.8 Amounts reclassified from accumulated other comprehensive loss — 1.0 1.0 Net current-period other comprehensive income 5.8 1.0 6.8 Ending balance $ (4.8 ) $ (45.4 ) $ (50.2 ) Reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Affected Statement of Operations Caption (in millions) 2020 2019 Pension and other postretirement plans adjustments: Actuarial losses $ 0.2 $ 1.6 (1) Curtailment 0.3 — (1) Total before tax 0.5 1.6 Income before income taxes Tax benefit — (0.6 ) Income tax expense Net of tax $ 0.5 $ 1.0 Net income (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. As these are components of net periodic pension cost other than service cost, the affected Statement of Operations captions are other income (expense) and income from discontinued operations, net of taxes (See Note 10, “Pensions and Postretirement Benefits ” for additional details). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General A detailed description of environmental and other legal matters relating to certain of our subsidiaries is included in this section. In addition to the matters noted herein, we are from time to time subject to, and are presently involved in, other litigation and legal proceedings arising in the ordinary course of business. We believe the outcome of such other litigation and legal proceedings will not have a material adverse effect on our financial condition, results of operations and cash flows. Expenses for administrative and legal proceedings are recorded when incurred. Environmental Our facilities and operations are subject to federal, state and local environmental and occupational health and safety requirements of the U.S. and foreign countries. We take a proactive approach in our efforts to comply with environmental, health and safety laws as they relate to our manufacturing operations and in proposing and implementing any remedial plans that may be necessary. We also regularly conduct comprehensive environmental, health and safety audits at our facilities to maintain compliance and improve operational efficiency. Although we believe past operations were in substantial compliance with the then applicable regulations, we or one or more of our subsidiaries are involved with various remediation activities at 19 sites. At 17 of these sites, the future cost per site for us or our subsidiary is expected to exceed $100,000 . Of these 19 sites, 17 are sites where we or one or more of our subsidiaries formerly conducted business operations but no longer do, and 2 are sites where we conduct manufacturing operations. Investigations have been completed for 16 sites and are in progress at the other 3 sites. Our costs at 14 of the 19 sites relate to remediation projects for soil and/or groundwater contamination at or near former operating facilities that were sold or closed. Our policy is to accrue environmental investigation and remediation costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. The measurement of the liability is based on an evaluation of currently available facts with respect to each individual situation and takes into consideration factors such as existing technology, presently enacted laws and regulations and prior experience in the remediation of similar contaminated sites. Liabilities are established for all sites based on these factors. As assessments and remediation progress at individual sites, these liabilities are reviewed periodically and adjusted to reflect additional technical data and legal information. As of March 31, 2020 and December 31, 2019 , we had accrued liabilities aggregating $20.5 million and $36.0 million , respectively, for estimated future expenditures relating to environmental contingencies. These amounts have been recorded on an undiscounted basis in the Consolidated Balance Sheets. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other parties potentially being fully or partially liable, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. Except as described below, we believe that our accruals for specific environmental liabilities are adequate for those liabilities based on currently available information. Actual costs to be incurred in future periods may vary from estimates because of the inherent uncertainties in evaluating environmental exposures due to unknown and changing conditions, changing government regulations and legal standards regarding liability. Based on our prior ownership of Crucible Steel Corporation a/k/a Crucible, Inc. (“Crucible”), we may have additional contingent liabilities in one or more significant environmental matters. One such matter, which is included in the 19 sites referred to above, is the Lower Passaic River Study Area of the Diamond Alkali Superfund Site in New Jersey. Crucible operated a steel mill abutting the Passaic River in Harrison, New Jersey from the 1930s until 1974, which was one of many industrial operations on the river dating back to the 1800s. Certain contingent environmental liabilities related to this site were retained by a predecessor of our EnPro Holdings, Inc. subsidiary (which, including its corporate predecessors is referred to as "EnPro Holdings") when it sold a majority interest in Crucible Materials Corporation (the successor of Crucible) in 1985. The United States Environmental Protection Agency (the “EPA”) notified our subsidiary in September 2003 that it is a potentially responsible party (“PRP”) for Superfund response actions in the lower 17 -mile stretch of the Passaic River known as the Lower Passaic River Study Area. EnPro Holdings and approximately 70 of the numerous other PRPs, known as the Cooperating Parties Group, are parties to a May 2007 Administrative Order on Consent with the EPA to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of the contaminants in the Lower Passaic River Study Area. In September 2018, EnPro Holdings withdrew from the Cooperating Parties Group but remains a party to the May 2007 Administrative Order on Consent. The RI/FS was completed and submitted to the EPA at the end of April 2015. The RI/FS recommends a targeted dredge and cap remedy with monitored natural recovery and adaptive management for the Lower Passaic River Study Area. The cost of such remedy is estimated to be $726 million . Previously, on April 11, 2014, the EPA released its Focused Feasibility Study (the “FFS”) with its proposed plan for remediating the lower eight miles of the Lower Passaic River Study Area. The FFS calls for bank-to-bank dredging and capping of the riverbed of that portion of the river and estimates a range of the present value of aggregate remediation costs of approximately $953 million to approximately $1.73 billion , although estimates of the costs and the timing of costs are inherently imprecise. On March 3, 2016, the EPA issued the final Record of Decision (ROD) as to the remedy for the lower eight miles of the Lower Passaic River Study Area, with the maximum estimated cost being reduced by the EPA from $1.73 billion to $1.38 billion , primarily due to a reduction in the amount of cubic yards of material that will be dredged. In October 2016, Occidental Chemical Corporation, the successor to the entity that operated the Diamond Alkali chemical manufacturing facility, reached an agreement with the EPA to develop the design for this proposed remedy at an estimated cost of $165 million . The EPA has estimated that it will take approximately four years to develop this design. No final allocations of responsibility have been made among the numerous PRPs that have received notices from the EPA, there are numerous identified PRPs that have not yet received PRP notices from the EPA, and there are likely many PRPs that have not yet been identified. In September 2017, EPA hired a third-party allocator to develop an allocation of costs among a large number of the parties identified by EPA as having potential responsibility, including the Company. On June 30, 2018, Occidental Chemical Corporation sued over 120 parties, including the Company, in the United States District Court for New Jersey seeking recovery of response costs under the Federal Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). Based on our evaluation of the site, during 2014 we accrued a liability of $3.5 million related to environmental remediation costs associated with the lower eight miles of the Lower Passaic River Study Area, which is our estimate of the low end of a range of reasonably possible costs, with no estimate within the range being a better estimate than the minimum. Since 2016, we incurred $0.8 million in costs related to this matter. Our future remediation costs could be significantly greater than the $2.7 million remaining accrual at March 31, 2020 . With respect to the upper nine miles of the Lower Passaic River Study Area, we are unable to estimate a range of reasonably possible costs. Another such matter involves the Onondaga Lake Superfund Site (the “Onondaga Site”) located near Syracuse, New York. Crucible operated a steel mill facility adjacent to Onondaga Lake from 1911 to 1983 that was alleged by government agencies to have contributed to the need for environmental response actions at the Onondaga Lake Superfund Site ("the Onondaga Site"). Honeywell International Inc. (“Honeywell”), which has undertaken certain remediation activities at the Onondaga Site under the supervision of NYSDEC and the EPA, asserted claims against EnPro Holdings related to investigation and remediation at the Onondaga Site. After continued discussions with Honeywell, an agreement was reached to settle Honeywell's claim for $10.0 million in exchange for a full release of any and all claims based on Crucible's alleged contamination of Onondaga Lake. The settlement was finalized on January 24, 2020 and payment of the full settlement amount of $10.0 million was made on February 14, 2020. We have no remaining liabilities related to the Onondaga Site. Except with respect to the Lower Passaic River Study Area, we are unable to estimate a reasonably possible range of loss related to any other contingent environmental liability based on our prior ownership of Crucible. See the section entitled “Crucible Steel Corporation a/k/a Crucible, Inc.” in this footnote for additional information. In addition to the Crucible environmental matters discussed above, EnPro Holdings received a notice from the EPA dated February 19, 2014 asserting that EnPro Holdings is a potentially responsible party under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") as the successor to a former operator in 1954 and 1955 of two uranium mines in Arizona. On October 15, 2015, EnPro Holdings received another notice from the EPA asserting that it is a potentially responsible party as the successor to the former operator of six additional uranium mines in Arizona. In 2015, we reserved $1.1 million for the minimum amount of probable loss associated with the first two mines identified by the EPA, including the cost of the investigative work to be conducted at such mines. During 2016, we reserved an additional $1.1 million for the minimum amount of probable loss associated with the six additional mines, which includes estimated costs of investigative work to be conducted at the eight mines. We entered into an Administrative Settlement Agreement and Order on Consent for Interim Removal Action with the EPA effective November 7, 2017 for the performance of this work. In the third quarter of 2017, we increased the reserve by $1.9 million to perform investigations required by the Settlement Agreement to determine the nature and extent of contamination at each site with the investigations anticipated to be completed by the end of 2020. In the fourth quarter of 2018, we increased the reserve by $1.0 million for the estimated reimbursement of the EPA's costs to oversee these investigations. The balance in the reserve as of March 31, 2020 is $1.9 million . We cannot at this time estimate a reasonably possible range of loss associated with remediation or other incremental costs related to these mines. In connection with the former operation of a division of EnPro Holdings located in Water Valley, Mississippi, which was divested to BorgWarner, Inc. ("BorgWarner") in 1996, EnPro Holdings has been managing trichloroethylene soil and groundwater contamination at the site. In February 2016, the Mississippi Department of Environmental Quality (MDEQ) issued an order against EnPro Holdings requiring evaluation of potential vapor intrusion into residential properties and commercial facilities located over the groundwater plume as well as requiring additional groundwater investigation and remediation. MDEQ performed the initial vapor intrusion investigations at certain residential and commercial sites, with the findings all being below the applicable screening level. In April 2016, the parties entered into a new order including negotiated time frames for groundwater remediation. Pursuant to that order, MDEQ performed a second round of vapor intrusion sampling beginning in August 2016. Results from sampling outside of three residences were above screening levels. Follow-up sampling directly underneath those residences (either sub-slab or in crawl spaces) were all below applicable screening levels. Two separate sampling events at another residence were also below applicable screening levels. Due to an increasing trend in vapor concentrations, MDEQ requested that we develop and implement initial corrective action measures to address vapor intrusion resulting from groundwater contamination in this residential area. These measures were developed and approved by MDEQ. Due to an inability to obtain access to private properties where the corrective action system was to be located, we developed an alternate remedial approach which has been approved by MDEQ. In addition, vapor intrusion sampling at the manufacturing facility owned by BorgWarner was conducted during the first quarter of 2017. The results showed exceedances of screening levels at various areas in the plant and exceedances of levels requiring responsive actions in a limited area of the plant. Implementation of the immediate responsive actions at the plant has been completed and corrective action consisting of a permanent vapor intrusion remediation system became operational in May 2017 with further improvements made to the system in December 2017 and January 2018. Indoor air sampling is conducted at four locations quarterly and results have been below levels requiring responsive action at three sampling locations since June 2017 and at all four locations since February 2018. We are also continuing soil and groundwater investigation work in the area inside the plant where the vapor intrusion remediation system is located and around the outside of the plant and implementing corrective action plans for both the contamination remaining at the plant as well as contamination that has migrated off-site. All of the work to be performed at the residential area, the plant and off-site is set forth in an agreed Order that we and MDEQ entered into on September 11, 2017. During 2016, we established an additional $1.3 million reserve with respect to this matter. During the year ended December 31, 2017, we reserved an additional $5.7 million for further investigation, additional remediation, long-term monitoring costs, and legal fees to support regulatory compliance for the above noted actions. In the fourth quarter of 2018, we reserved an additional $3.5 million for additional remediation, long-term monitoring costs and legal fees to support regulatory compliance for the above noted activities. On April 7, 2017, the State of Mississippi through its Attorney General filed suit against EnPro Holdings and Goodrich Corporation (EnPro's former corporate parent), in Mississippi Circuit Court in Yalobusha County seeking recovery of all costs and expenses to be incurred by the State in remediating the groundwater contamination, punitive damages and attorney’s fees. We are aggressively defending this case. The additional reserve established in the year ended December 31, 2017, noted above, does not include any estimate of contingent loss associated with this lawsuit other than due to remediation and other actions with respect to this site based on existing MDEQ orders described above. On January 31, 2019, some of these property owners (representing ownership of 27 residential, agricultural or commercial properties), Yalobusha County, and the Board of Trustees of the Yalobusha General Hospital filed suit against EnPro and Goodrich in Mississippi Circuit Court and Yalobusha County seeking recovery for alleged damage to their properties, including diminution in value, from groundwater contamination that had come onto their properties. In October 2019, the claims of the property owners (representing ownership of the 27 residential, agricultural and commercial properties) were settled for current and estimated future payments of $3.0 million in the aggregate. In December 2019, the claims of Yalobusha County and the Board of Trustees of the Yalobusha County General Hospital were settled for a payment of $4.5 million , which was paid in the first quarter of 2020. In exchange for these payments, both cases have been dismissed with prejudice, each plaintiff has released any and all claims that were or could have been brought against EnPro, and each property owner will file in the real property records of Yalobusha County, Mississippi, a deed restriction required by MDEQ as part of EnPro's required remediation. In light of the settlement of the County lawsuit, and installation and operation of additional remediation systems, for the fourth quarter of 2019, we further increased our reserve for this matter, including the remediation matters described above, by $4.7 million . The balance in the reserve as of March 31, 2020 is $4.3 million . Beyond this reserve, we cannot estimate a reasonably possible range of loss from the remaining lawsuits or any potential additional legal actions at this time. Based upon limited information regarding any incremental remediation or other actions that may be required at the site, we cannot estimate a minimum loss or a reasonably possible range of loss related to this matter. Crucible Steel Corporation a/k/a Crucible, Inc. Crucible, which was engaged primarily in the manufacture and distribution of high technology specialty metal products, was a wholly owned subsidiary of EnPro Holdings until 1983 when its assets and liabilities were distributed to a new subsidiary, Crucible Materials Corporation. EnPro Holdings sold a majority of the outstanding shares of Crucible Materials Corporation in 1985 and divested its remaining minority interest in 2004. Crucible Materials Corporation filed for Chapter 11 bankruptcy protection in May 2009 and is no longer conducting operations. We have certain ongoing obligations, which are included in other liabilities in our Consolidated Balance Sheets, including workers’ compensation, retiree medical and other retiree benefit matters, in addition to those mentioned previously related to EnPro Holdings' period of ownership of Crucible. Based on EnPro Holdings' prior ownership of Crucible, we may have certain additional contingent liabilities, including liabilities in one or more significant environmental matters included in the matters discussed in “Environmental” above. We are investigating these matters. Except with respect to those matters for which we have an accrued liability as discussed in "Environmental" above, we are unable to estimate a reasonably possible range of loss related to these contingent liabilities. Warranties We provide warranties on many of our products. The specific terms and conditions of these warranties vary depending on the product and the market in which the product is sold. We record a liability based upon estimates of the costs we may incur under our warranties after a review of historical warranty experience and information about specific warranty claims. Adjustments are made to the liability as claims data, historical experience, and trends result in changes to our estimate. Changes in the product warranty liability for the three months ended March 31, 2020 and 2019 are as follows: 2020 2019 (in millions) Balance at beginning of year $ 10.1 $ 9.4 Net charges to expense 0.7 0.4 Settlements made (1.3 ) (1.1 ) Balance at end of period $ 9.5 $ 8.7 BorgWarner A subsidiary of BorgWarner has asserted claims against our subsidiary, GGB France E.U.R.L. (“GGB France”), regarding certain bearings supplied by GGB France to BorgWarner and used by BorgWarner in manufacturing hydraulic control units included in motor vehicle automatic transmission units, mainly that the bearings caused performance problems with and/or damage to the transmission units, leading to associated repairs and replacements. BorgWarner and GGB France participated in a technical review before a panel of experts to determine, among other things, whether there were any defects in such bearings that were a cause of the damages claimed by BorgWarner, including whether GGB France was required to notify BorgWarner of a change in the source of a raw material used in the manufacture of such bearings. This technical review was a required predicate to the commencement of a legal proceeding for damages. The expert panel issued a final report on technical and financial matters on April 6, 2017. In the final report, the expert panel concluded that GGB France had a duty to notify BorgWarner regarding the change of source of raw material used in the bearings, but that the failure of the hydraulic control units was attributable to both the raw material supplier change and the insufficient design of the units by BorgWarner. The expert panel provided detail on a possible allocation of damages alleged to have been incurred by BorgWarner and its customer. Although the language of the report is not clear, the report appears to note a potential allocation of recoverable damages 65% to GGB and 35% to BorgWarner. It also indicates that, though it is for a court to ultimately determine, the aggregate damages to BorgWarner and its customer was in the range of 7.9 million EUR to 10.2 million EUR, with 1.8 million EUR to 2.1 million EUR of this range being for damages to BorgWarner and the remainder being for damages to its customer. The experts noted the lower end of the range as being more likely and noted a lack of sufficient evidence provided substantiating the customer's damages. Applying a 65% liability allocation to GGB to the total aggregate range yields a range of 5.1 million EUR to 6.6 million EUR. In the final report, the expert panel deferred to a court the determination of whether GGB France had breached its contractual obligations to BorgWarner. On October 25, 2017, BorgWarner initiated a legal proceeding against GGB with respect to this matter by filing a writ of claim with the Commercial Court of Brive, France. The parties have briefed their legal positions and court hearings concluded in late 2019. A court ruling is expected late in the second quarter of 2020. We continue to believe that GGB France has valid factual and legal defenses to these claims and we are vigorously defending these claims. Among GGB France’s legal defenses are a contractual disclaimer of consequential damages, which, if controlling, would limit liability for consequential damages and provide for the replacement of the bearings at issue, at an aggregate replacement value we estimate to be approximately 0.4 million EUR; that the determination of any duty to notify of the change in the source of the raw material is a legal matter to be determined by the presiding court; and the insufficiency of evidence of damage to BorgWarner's customer provided to the expert panel. Based on the final report from the expert panel and GGB France's legal defenses described above, we estimate GGB France’s reasonably possible range of loss associated with this matter to be approximately 0.4 million EUR to 6.6 million EUR plus a potential undetermined amount of apportioned proceeding expenses, with no amount within the range being a better estimate than the minimum of the range. Accordingly, GGB France has retained the accrual of 0.4 million EUR associated with this matter, which was established in the second quarter of 2016. Asbestos Insurance Matters The historical business operations of certain of our subsidiaries resulted in a substantial volume of asbestos litigation in which plaintiffs alleged personal injury or death as a result of exposure to asbestos fibers. In 2010, certain of these subsidiaries, including Garlock Sealing Technologies, LLC ("GST"), filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of North Carolina (the "Bankruptcy Court"). An additional subsidiary filed a Chapter 11 bankruptcy petition with the Bankruptcy Court in 2017. The filings were part of a claims resolution process for an efficient and permanent resolution of all pending and future asbestos claims through court approval of a plan of reorganization to establish a facility to resolve and pay these asbestos claims. These claims against GST and other subsidiaries were resolved pursuant to a joint plan of reorganization (the "Joint Plan") filed with the Bankruptcy Court which was consummated on July 29, 2017. Under the Joint Plan, GST and EnPro Holdings retained their rights to seek reimbursement under insurance policies for any amounts they have paid in the past to resolve asbestos claims, including contributions made to the asbestos claims resolution trust established under the Joint Plan (the "Trust"). These policies include a number of primary and excess general liability insurance policies that were purchased by EnPro Holdings and were in effect prior to January 1, 1976 (the “Pre-Garlock Coverage Block”). The policies provide coverage for “occurrences” happening during the policy periods and cover losses associated with product liability claims against EnPro Holdings and certain of its subsidiaries. Asbestos claims against GST are not covered under these policies because GST was not a subsidiary of EnPro Holdings prior to 1976. The Joint Plan provides that EnPro Holdings may retain the first $25 million of any settlements and judgments collected for non-GST asbestos claims related to insurance policies in the Pre-Garlock Coverage Block and EnPro Holdings and the Trust will share equally in any settlements and judgments EnPro Holdings may collect in excess of $25 million . To date, EnPro Holdings has collected almost $22 million in settlements for non-GST asbestos claims from the Pre-Garlock Coverage Block and anticipates further collections once the Trust begins making claims payments. As of March 31, 2020 , approximately $5.5 million of available products hazard limits or insurance receivables existed under primary and excess general liability insurance policies other than the Pre-Garlock Coverage Block (the "Garlock Coverage Block") from solvent carriers with investment grade ratings, which we believe is available to cover GST asbestos claims payments and certain expense payments, including contributions to the Trust. We consider such amount of available insurance coverage under the Garlock Coverage Block to be of high quality because the insurance policies are written or guaranteed by U.S.-based carriers whose credit rating by S&P is investment grade (BBB-) or better, and whose AM Best rating is excellent (A-) or better. The remaining $5.5 million is available to pending and estimated future claims. There are specific agreements in place with carriers regarding the remaining available coverage. Based on those agreements and the terms of the policies in place and prior decisions concerning coverage, we believe that all of the $5.5 million of insurance proceeds will ultimately be collected, although there can be no assurance that the insurance companies will make the payments as and when due. Assuming the insurers pay according to the agreements and policies, we anticipate that all $5.5 million will be collected in 2020. We also believe that EnPro Holdings will bill, and could collect over time, as much as $10 million of insurance coverage for non-GST asbestos claims to reimburse it for Trust payments to non-GST Trust claimants. After EnPro Holdings collects the first approximately $3 million of that coverage, remaining collections for non-GST asbestos claims from the Pre-Garlock Coverage Block will be shared equally with the Trust. GST has received $8.8 million of insurance recoveries from insolvent carriers since 2007, and may receive additional payments from insolvent carriers in the future. No anticipated insolvent carrier collections are included in the $5.5 million of anticipated collections. The insurance available to cover current and future asbestos claims is from comprehensive general liability policies that cover EnPro Holdings and certain of its other subsidiaries in addition to GST for periods prior to 1985 and therefore could be subject to potential competing claims of other covered subsidiaries and their assignees. |
Overview, Basis of Presentati_2
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim consolidated financial statements are unaudited, and certain related information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted in accordance with Rule 10-01 of Regulation S-X. They were prepared following the same policies and procedures used in the preparation of our annual financial statements except as disclosed below and reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of results for the periods presented. The Consolidated Balance Sheet as of December 31, 2019 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2019 . The results of operations for the interim periods are not necessarily indicative of the results for the fiscal year. These consolidated financial statements should be read in conjunction with our annual consolidated financial statements for the year ended December 31, 2019 included within our annual report on Form 10-K. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. The recent outbreak of the coronavirus, or COVID-19, which has been declared by the World Health Organization to be a "pandemic," has caused us to evaluate our accounting estimates that require the consideration of forecasted financial information, including, but not limited to, our allowance for credit losses, the carrying value of our goodwill, intangible assets, and other long-lived assets. This assessment was conducted in the context of information that was reasonably available to us, as well as our consideration of the future potential impacts of COVID-19 on our business as of March 31, 2020. We determined that due to many of our businesses being deemed "essential" under applicable governmental orders otherwise restricting business activities, the limited downtime of our operations, and our ability to adapt and to continue to operate in our current environment, that no triggering event existed at March 31, 2020 and an interim impairment test was not performed. However, because of uncertainties at this time with respect to the severity and duration of the COVID-19 outbreak, the duration and terms of related governmental orders restricting activities, and the timing and pace of any economic recovery as COVID-19 impacts ultimately abate, we cannot predict with specificity the extent and duration of any future impact on our business and financial results from COVID-19. In addition, although most of our operations have been treated as “essential” operations under applicable government orders restricting business activities that have been issued to date, and accordingly have been permitted to continue to operate, it is possible that they may not continue to be so treated under future government orders, or, even if so treated, site-specific health and safety concerns might otherwise require certain of our operations to be halted for some period of time. Accordingly, if the impact is more severe or longer in duration than we have projected, such impact could potentially result in impairments of assets and increases in credit allowances in future periods. All intercompany accounts and transactions between our consolidated operations have been eliminated. Our acquisition of all of the equity securities of LeanTeq Co, Ltd. and its affiliate LeanTeq LLC (collectively "LeanTeq") in 2019 resulted in rollover equity from two of LeanTeq sellers (the “Sellers”) who were executives of the acquired entity. This rollover equity gives the Sellers approximately a 10% ownership share (the "Rollover Equity") of Lunar Investment LLC, our subsidiary that purchased LeanTeq. We have the right to buy, and the non-controlling interest holders have the right to sell, the Rollover Equity within 90 days following the third anniversary of the closing of the acquisition of LeanTeq. We have accounted for this transaction as redeemable non-controlling interests and have recorded the redeemable non-controlling interest in a mezzanine section on our accompanying consolidated balance sheets, located between liabilities and equity. Earnings associated with the redeemable non-controlling interest are reflected as income attributable to redeemable non-controlling interest, net of tax in the accompanying consolidated statements of operations. |
Recently Issued Authoritative Accounting Guidance | In January 2020, we adopted a new accounting standard that changes how we measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, including trade receivables. The standard requires us to estimate our lifetime “expected credit loss” for such assets at inception, and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. We applied a current expected credit loss model ("CECL") to our trade receivables. Given the nature of our trade receivables, a complex modeling system to develop forward-looking models was not necessary. Since our receivables are short-term, reasonable and supportable forecasted information was not readily available and our application of CECL relied on historical information and existing economic conditions. We will continue to monitor the collectability of our receivables as well as apply any supportable forecast information as it becomes available to make adjustments to our estimated reserve. We applied our CECL model to our trade receivables at January 1, 2020 using a modified retrospective transition approach. Upon adoption, we recorded a $0.1 million increase to our allowance for credit losses with a corresponding decrease to retained earnings. Changes in our allowance for doubtful accounts for the three months ended March 31, 2020 were as follows: (in millions) Balance at December 31, 2019 $ 3.7 Adoption of new accounting standard 0.1 Charge to expense 0.3 Balance at March 31, 2020 $ 4.1 Additionally, in January 2020, we adopted a standard to simplify annual and interim goodwill impairment testing for public business entities. Under the standard, we will perform our annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Upon adoption, there was no impairment of goodwill recorded and this standard is applied following adoption on a prospective basis for all annual and interim goodwill impairment assessments. Recently Issued Authoritative Accounting Guidance In December 2019, a standard was issued that will simplify the accounting for income taxes in nine unrelated areas. The standard is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We are currently evaluating the new guidance and do not expect its impact to be material to our consolidated financial statements. |
Overview, Basis of Presentati_3
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financing Receivable, Allowance for Credit Loss | Changes in our allowance for doubtful accounts for the three months ended March 31, 2020 were as follows: (in millions) Balance at December 31, 2019 $ 3.7 Adoption of new accounting standard 0.1 Charge to expense 0.3 Balance at March 31, 2020 $ 4.1 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | For the three months ended March 31, 2020 and 2019 , the results of operations from Fairbanks Morse, prior to sale on January 21, 2020, were as follows: 2020 2019 (in millions) Net sales $ 7.6 $ 57.9 Cost of sales 7.6 44.3 Gross profit — 13.6 Operating expenses: Selling, general, and administrative expenses 1.5 6.3 Other (0.1 ) — Total operating expenses 1.4 6.3 Income (loss) from discontinued operations before income tax (1.4 ) 7.3 Income tax benefit (expense) 0.3 (2.0 ) Income (loss) from discontinued operations, net of tax (1.1 ) 5.3 Gain from sale of discontinued operations, net of tax 209.7 — Income from discontinued operations, net of tax $ 208.6 $ 5.3 The major classes of assets and liabilities for Fairbanks Morse as of December 31, 2019 are shown below: (in millions) Assets: Accounts receivable $ 107.8 Inventories 60.2 Property, plant, and equipment 63.0 Goodwill 11.8 Other assets 11.3 Total assets of discontinued operations $ 254.1 Liabilities: Accounts payable $ 36.9 Accrued expenses 48.2 Other liabilities 4.4 Total liabilities of discontinued operations $ 89.5 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | The following pro forma condensed consolidated financial results of operations for the three months ended March 31, 2019 are presented as if the acquisitions had been completed prior to 2019: (in millions) Pro forma net sales $ 314.7 Pro forma income from continuing operations 6.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | Three months ended March 31, 2020 2019 (in millions, except per share amounts) Numerator (basic and diluted): Income from continuing operations attributable to EnPro Industries, Inc. $ 10.1 $ 7.8 Income from discontinued operations 208.6 5.3 Net income attributable to EnPro Industries, Inc. $ 218.7 $ 13.1 Denominator: Weighted-average shares – basic 20.6 20.8 Share-based awards — 0.1 Weighted-average shares – diluted 20.6 20.9 Basic earnings per share attributable to EnPro Industries, Inc.: Continuing operations $ 0.49 $ 0.37 Discontinued operations 10.13 0.26 Net income per share $ 10.62 $ 0.63 Diluted earnings per share attributable to EnPro Industries, Inc.: Continuing operations $ 0.49 $ 0.37 Discontinued operations 10.10 0.26 Net income per share $ 10.59 $ 0.63 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories March 31, December 31, (in millions) Finished products $ 74.1 $ 80.6 Work in process 24.7 23.7 Raw materials and supplies 57.9 56.1 156.7 160.4 Reserve to reduce certain inventories to LIFO basis (3.3 ) (3.3 ) Total inventories $ 153.4 $ 157.1 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment | The changes in the net carrying value of goodwill by reportable segment for the three months ended March 31, 2020 , are as follows: Sealing Products Engineered Products Total (in millions) Goodwill as of December 31, 2019 $ 474.4 $ 10.9 $ 485.3 Acquisition of business (0.1 ) — (0.1 ) Foreign currency translation (10.4 ) (0.2 ) (10.6 ) Goodwill as of March 31, 2020 $ 463.9 $ 10.7 $ 474.6 |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets are as follows: As of March 31, 2020 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (in millions) Amortized: Customer relationships $ 460.2 $ 169.0 $ 470.1 $ 166.2 Existing technology 114.0 51.5 117.5 50.8 Trademarks 38.9 24.1 39.4 24.1 Other 33.3 24.2 33.6 24.0 646.4 268.8 660.6 265.1 Indefinite-Lived: Trademarks 70.8 — 71.4 — Total $ 717.2 $ 268.8 $ 732.0 $ 265.1 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued Expenses March 31, December 31, (in millions) Salaries, wages and employee benefits $ 39.1 $ 43.7 Interest 10.7 5.1 Environmental 10.7 25.2 Warranty 4.1 4.1 Taxes other than income 11.0 9.1 Operating lease liabilities 9.0 9.3 Other 24.7 27.3 $ 109.3 $ 123.8 |
Pensions and Postretirement B_2
Pensions and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for our U.S. and foreign defined benefit pension and other postretirement plans for the three months ended March 31, 2020 and 2019 , are as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 (in millions) Service cost $ 1.0 $ 1.1 $ — $ 0.1 Interest cost 2.8 3.0 — — Expected return on plan assets (4.7 ) (4.0 ) — — Amortization of net loss (gain) 1.3 1.6 (1.1 ) — Curtailment loss 0.3 — — — Net periodic benefit cost $ 0.7 $ 1.7 $ (1.1 ) $ 0.1 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in shareholders' equity for the three months ended March 31, 2020 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Permanent Shareholders' Equity Redeemable non-controlling interest (in millions, except per share data) Shares Amount Balance, December 31, 2019 20.6 $ 0.2 $ 292.1 $ 632.2 $ (36.4 ) $ (1.2 ) $ 886.9 $ 28.0 Adoption of new accounting standard — — — (0.1 ) — — (0.1 ) — Net income — — — 218.7 — — 218.7 0.1 Other comprehensive income (loss) — — — — (22.5 ) — (22.5 ) 0.9 Dividends ($0.26 per share) — — — (5.3 ) — — (5.3 ) — Share repurchases (0.1 ) — (5.3 ) — — — (5.3 ) — Incentive plan activity — — 1.0 — — — 1.0 — Other — — (1.5 ) — — — (1.5 ) — Balance, March 31, 2020 20.5 $ 0.2 $ 286.3 $ 845.5 $ (58.9 ) $ (1.2 ) $ 1,071.9 $ 29.0 Changes in shareholders' equity for the three months ended March 31, 2019 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders' Equity (in millions, except per share data) Shares Amount Balance, December 31, 2018 20.7 $ 0.2 $ 301.0 $ 603.3 $ (45.5 ) $ (1.3 ) $ 857.7 Adoption of new accounting standard — — — 11.5 (11.5 ) — — Net income — — — 13.1 — — 13.1 Other comprehensive income — — — — 6.8 — 6.8 Dividends ($0.25 per share) — — — (5.3 ) — — (5.3 ) Share repurchases — — (2.4 ) — — — (2.4 ) Incentive plan activity 0.1 — 1.2 — — — 1.2 Balance, March 31, 2019 20.8 0.2 299.8 622.6 (50.2 ) (1.3 ) 871.1 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The option awards issued in 2020 had a fair value of $13.64 per share at their grant date. The following assumptions were used to estimate the fair value of the 2020 option awards: Average expected term 6 years Expected volatility 31.53 % Risk-free interest rate 1.17 % Expected dividend yield 1.93 % |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Results and Other Financial Data | Segment operating results and other financial data for the three months ended March 31, 2020 and 2019 were as follows: 2020 2019 (in millions) Sales Sealing Products $ 216.1 $ 224.5 Engineered Products 67.9 79.5 284.0 304.0 Intersegment sales (1.3 ) (1.0 ) Net sales $ 282.7 $ 303.0 Segment Profit Sealing Products $ 25.7 $ 20.8 Engineered Products 3.4 6.2 Total segment profit 29.1 27.0 Corporate expenses (8.5 ) (9.6 ) Interest expense, net (4.0 ) (4.5 ) Other income (expense), net 1.3 (2.3 ) Income from continuing operations before income taxes $ 17.9 $ 10.6 |
Schedule of Total Assets Segment | Segment assets are as follows: March 31, December 31, (in millions) Sealing Products $ 1,317.2 $ 1,337.6 Engineered Products 235.2 238.3 Corporate 489.2 205.1 Discontinued operations — 254.1 $ 2,041.6 $ 2,035.1 |
Disaggregation of Revenue | Below is a summary of our third party sales by major end market with which we did business for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 (in millions) Sealing Products Engineered Products Total Aerospace $ 12.5 $ 2.3 $ 14.8 Automotive 0.2 20.5 20.7 Chemical and material processing 12.9 10.1 23.0 Food and pharmaceutical 11.2 0.5 11.7 General industrial 46.0 19.4 65.4 Medium-duty/heavy-duty truck 68.8 0.1 68.9 Oil and gas 15.0 10.4 25.4 Power generation 9.9 4.4 14.3 Semiconductors 36.5 — 36.5 Other 1.9 0.1 2.0 Total third party sales $ 214.9 $ 67.8 $ 282.7 Three Months Ended March 31, 2019 (in millions) Sealing Products Engineered Products Total Aerospace $ 12.1 $ 2.7 $ 14.8 Automotive 1.0 23.3 24.3 Chemical and material processing 15.4 12.2 27.6 Food and pharmaceutical 9.7 0.2 9.9 General industrial 43.5 26.3 69.8 Medium-duty/heavy-duty truck 89.2 0.2 89.4 Oil and gas 14.3 10.5 24.8 Power generation 10.6 2.4 13.0 Semiconductors 25.6 — 25.6 Other 2.3 1.5 3.8 Total third party sales $ 223.7 $ 79.3 $ 303.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of March 31, 2020 December 31, 2019 (in millions) Assets Time deposits $ 25.0 $ 22.9 Foreign currency derivatives 27.0 12.3 Deferred compensation assets 11.2 10.9 $ 63.2 $ 46.1 Liabilities Deferred compensation liabilities $ 11.3 $ 11.3 Foreign currency derivatives — 0.6 $ 11.3 $ 11.9 |
Schedule of Carrying Value of Financial Instruments | The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximated their respective fair values except for the following instruments: March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (in millions) Long-term debt $ 495.0 $ 491.6 $ 629.3 $ 658.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss by Component | Changes in accumulated other comprehensive loss by component (after tax) for the three months ended March 31, 2020 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ 9.8 $ (46.2 ) $ (36.4 ) Other comprehensive loss before reclassifications (22.1 ) — (22.1 ) Amounts reclassified from accumulated other comprehensive loss — 0.5 0.5 Net current-period other comprehensive income (loss) (22.1 ) 0.5 (21.6 ) Less: other comprehensive income attributable to redeemable non-controlling interests 0.9 — 0.9 Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (23.0 ) 0.5 (22.5 ) Ending balance $ (13.2 ) $ (45.7 ) $ (58.9 ) Changes in accumulated other comprehensive loss by component (after tax) for the three months ended March 31, 2019 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (10.6 ) $ (34.9 ) $ (45.5 ) Adoption of new accounting standard — (11.5 ) (11.5 ) Adjusted beginning balance (10.6 ) (46.4 ) (57.0 ) Other comprehensive income before reclassifications 5.8 — 5.8 Amounts reclassified from accumulated other comprehensive loss — 1.0 1.0 Net current-period other comprehensive income 5.8 1.0 6.8 Ending balance $ (4.8 ) $ (45.4 ) $ (50.2 ) |
Summary of Reclassifications Out of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss by component (after tax) for the three months ended March 31, 2019 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (10.6 ) $ (34.9 ) $ (45.5 ) Adoption of new accounting standard — (11.5 ) (11.5 ) Adjusted beginning balance (10.6 ) (46.4 ) (57.0 ) Other comprehensive income before reclassifications 5.8 — 5.8 Amounts reclassified from accumulated other comprehensive loss — 1.0 1.0 Net current-period other comprehensive income 5.8 1.0 6.8 Ending balance $ (4.8 ) $ (45.4 ) $ (50.2 ) Reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Affected Statement of Operations Caption (in millions) 2020 2019 Pension and other postretirement plans adjustments: Actuarial losses $ 0.2 $ 1.6 (1) Curtailment 0.3 — (1) Total before tax 0.5 1.6 Income before income taxes Tax benefit — (0.6 ) Income tax expense Net of tax $ 0.5 $ 1.0 Net income (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. As these are components of net periodic pension cost other than service cost, the affected Statement of Operations captions are other income (expense) and income from discontinued operations, net of taxes (See Note 10, “Pensions and Postretirement Benefits ” for additional details). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Product Warranty Liability | Changes in the product warranty liability for the three months ended March 31, 2020 and 2019 are as follows: 2020 2019 (in millions) Balance at beginning of year $ 10.1 $ 9.4 Net charges to expense 0.7 0.4 Settlements made (1.3 ) (1.1 ) Balance at end of period $ 9.5 $ 8.7 |
Overview, Basis of Presentati_4
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease in retained earnings | $ (845.5) | $ (632.2) | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ 0.1 | ||
Decrease in retained earnings | $ 0.1 |
Overview, Basis of Presentati_5
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance - Schedule of Changes in Allowance for Doubtful Account (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2020 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at December 31, 2019 | $ 3.7 | $ 3.7 |
Adoption of new accounting standard | 0.3 | |
Balance at March 31, 2020 | $ 4.1 | |
Cumulative Effect, Period of Adoption, Adjustment | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Adoption of new accounting standard | $ 0.1 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Discontinued Operations, Disposed of by Sale - Fairbanks Morse - USD ($) $ in Millions | Jan. 21, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of investment projects | $ 450 | ||
The pre-tax gain on the disposition | 274.3 | ||
Gain from sale of discontinued operations, net of tax | $ 209.7 | $ 209.7 | $ 0 |
Discontinued Operations - Resul
Discontinued Operations - Results of Operations (Details) - USD ($) $ in Millions | Jan. 21, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Operating expenses: | |||
Income (loss) from discontinued operations, net of tax | $ 208.6 | $ 5.3 | |
Income from discontinued operations, net of tax | 208.6 | 5.3 | |
Discontinued Operations, Disposed of by Sale | Fairbanks Morse | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 7.6 | 57.9 | |
Cost of sales | 7.6 | 44.3 | |
Gross profit | 0 | 13.6 | |
Operating expenses: | |||
Selling, general, and administrative expenses | 1.5 | 6.3 | |
Other | (0.1) | 0 | |
Total operating expenses | 1.4 | 6.3 | |
Income (loss) from discontinued operations before income tax | (1.4) | 7.3 | |
Income tax benefit (expense) | 0.3 | (2) | |
Income (loss) from discontinued operations, net of tax | (1.1) | 5.3 | |
Gain from sale of discontinued operations, net of tax | $ 209.7 | 209.7 | 0 |
Income from discontinued operations, net of tax | $ 208.6 | $ 5.3 |
Discontinued Operations - Class
Discontinued Operations - Classes of Assets and Liabilities (Details) - Fairbanks Morse - Discontinued Operations, Disposed of by Sale $ in Millions | Dec. 31, 2019USD ($) |
Assets: | |
Accounts receivable | $ 107.8 |
Inventories | 60.2 |
Property, plant, and equipment | 63 |
Goodwill | 11.8 |
Other assets | 11.3 |
Total assets of discontinued operations | 254.1 |
Liabilities: | |
Accounts payable | 36.9 |
Accrued expenses | 48.2 |
Other liabilities | 4.4 |
Total liabilities of discontinued operations | $ 89.5 |
Acquisitions - Acquisitions Nar
Acquisitions - Acquisitions Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Sep. 25, 2019location | Jul. 02, 2019 | |
LeanTeq | |||
Business Acquisition [Line Items] | |||
Payment received as a result of final working capital adjustment | $ | $ 0.1 | ||
LeanTeq | Taiwan | |||
Business Acquisition [Line Items] | |||
Number of locations | 2 | ||
LeanTeq | U.S. | |||
Business Acquisition [Line Items] | |||
Number of locations | 1 | ||
Aseptic | |||
Business Acquisition [Line Items] | |||
Percent acquired | 100.00% |
Acquisitions - Schedules (Detai
Acquisitions - Schedules (Details) - LeanTeq and Aseptic $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Pro forma net sales | $ 314.7 |
Pro forma income from continuing operations | $ 6.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 43.20% | 27.10% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator (basic and diluted): | ||
Income from continuing operations attributable to EnPro Industries, Inc. | $ 10.1 | $ 7.8 |
Income from discontinued operations | 208.6 | 5.3 |
Net income attributable to EnPro Industries, Inc. | $ 218.7 | $ 13.1 |
Denominator: | ||
Weighted-average shares – basic (in shares) | 20.6 | 20.8 |
Share-based awards (in shares) | 0 | 0.1 |
Weighted-average shares – diluted (in shares) | 20.6 | 20.9 |
Basic earnings per share attributable to EnPro Industries, Inc.: | ||
Continuing operations (in dollars per share) | $ 0.49 | $ 0.37 |
Discontinued operations (in dollars per share) | 10.13 | 0.26 |
Net income per share (in dollars per share) | 10.62 | 0.63 |
Diluted earnings per share attributable to EnPro Industries, Inc.: | ||
Continuing operations (in dollars per share) | 0.49 | 0.37 |
Discontinued operations (in dollars per share) | 10.10 | 0.26 |
Net income per share (in dollars per share) | $ 10.59 | $ 0.63 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 74.1 | $ 80.6 |
Work in process | 24.7 | 23.7 |
Raw materials and supplies | 57.9 | 56.1 |
Gross inventories | 156.7 | 160.4 |
Reserve to reduce certain inventories to LIFO basis | (3.3) | (3.3) |
Total inventories | $ 153.4 | $ 157.1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 485.3 |
Acquisition of business | (0.1) |
Foreign currency translation | (10.6) |
Goodwill, ending balance | 474.6 |
Sealing Products | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 474.4 |
Acquisition of business | (0.1) |
Foreign currency translation | (10.4) |
Goodwill, ending balance | 463.9 |
Engineered Products | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 10.9 |
Acquisition of business | 0 |
Foreign currency translation | (0.2) |
Goodwill, ending balance | $ 10.7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 646.4 | $ 660.6 |
Accumulated Amortization | 268.8 | 265.1 |
Total | 717.2 | 732 |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived: | 70.8 | 71.4 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 460.2 | 470.1 |
Accumulated Amortization | 169 | 166.2 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 114 | 117.5 |
Accumulated Amortization | 51.5 | 50.8 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 38.9 | 39.4 |
Accumulated Amortization | 24.1 | 24.1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33.3 | 33.6 |
Accumulated Amortization | $ 24.2 | $ 24 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Amortization expense | $ 9 | $ 6.8 | |
Sealing Products | |||
Segment Reporting Information [Line Items] | |||
Accumulated impairment losses | 27.8 | $ 27.8 | |
Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Accumulated impairment losses | $ 154.8 | $ 154.8 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 39.1 | $ 43.7 |
Interest | 10.7 | 5.1 |
Environmental | 10.7 | 25.2 |
Warranty | 4.1 | 4.1 |
Taxes other than income | 11 | 9.1 |
Operating lease liabilities | 9 | 9.3 |
Other | 24.7 | 27.3 |
Accrued expenses | $ 109.3 | $ 123.8 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Sep. 25, 2019 | Oct. 17, 2018 | Mar. 31, 2020 | Oct. 31, 2018 |
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Expansion threshold | $ 225,000,000 | |||
Expansion threshold percent | 100.00% | |||
Capacity available for specific purpose | $ 100,000,000 | |||
Credit facility borrowing capacity | 387,400,000 | |||
Letter of credit outstanding | $ 12,600,000 | |||
Revolving Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Revolving Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Line of Credit | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 5 years | |||
Borrowing capacity | $ 400,000,000 | |||
Commitment fee on unused amount | 0.175% | |||
Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Periodic payment, years one to three, percentage of original principal amount | 2.50% | |||
Loan facility for one year | 5.00% | |||
Loan facility for two years | 1.25% | |||
Term Loan | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity | $ 150,000,000 | |||
Long-term line of credit | $ 149,100,000 | |||
Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Senior notes | $ 350,000,000 | |||
Stated interest rate | 5.75% | |||
Redemption price as a percentage of principal | 100.00% |
Pensions and Postretirement B_3
Pensions and Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,000,000 | $ 1,100,000 |
Interest cost | 2,800,000 | 3,000,000 |
Expected return on plan assets | (4,700,000) | (4,000,000) |
Amortization of net loss (gain) | 1,300,000 | 1,600,000 |
Curtailment loss | 300,000 | 0 |
Net periodic benefit cost | 700,000 | 1,700,000 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 100,000 |
Interest cost | 0 | 0 |
Expected return on plan assets | 0 | 0 |
Amortization of net loss (gain) | (1,100,000) | 0 |
Net periodic benefit cost | (1,100,000) | $ 100,000 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | 0 | |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected future contributions | $ 0 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Other comprehensive income (loss) | $ (21.6) | $ 6.8 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance (in shares) | 20.6 | 20.7 |
Beginning balance | $ 0.2 | $ 0.2 |
Shares repurchases (in shares) | (0.1) | 0 |
Incentive plan activity (in shares) | 0 | 0.1 |
Balance (in shares) | 20.5 | 20.8 |
Ending balance | $ 0.2 | $ 0.2 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 292.1 | 301 |
Share repurchases | (5.3) | (2.4) |
Incentive plan activity | 1 | 1.2 |
Other | (1.5) | |
Ending balance | 286.3 | 299.8 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 632.2 | 603.3 |
Adoption of new accounting standard | (0.1) | 11.5 |
Net income | 218.7 | 13.1 |
Dividends ($0.26 per share) | (5.3) | (5.3) |
Ending balance | 845.5 | 622.6 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (36.4) | (45.5) |
Adoption of new accounting standard | (11.5) | |
Other comprehensive income (loss) | (22.5) | 6.8 |
Ending balance | (58.9) | (50.2) |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (1.2) | (1.3) |
Ending balance | (1.2) | (1.3) |
Total Permanent Shareholders' Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 886.9 | 857.7 |
Adoption of new accounting standard | (0.1) | |
Net income | 218.7 | 13.1 |
Other comprehensive income (loss) | (22.5) | 6.8 |
Dividends ($0.26 per share) | (5.3) | (5.3) |
Share repurchases | (5.3) | (2.4) |
Incentive plan activity | 1 | 1.2 |
Other | (1.5) | |
Ending balance | 1,071.9 | $ 871.1 |
Redeemable non-controlling interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 28 | |
Net income | 0.1 | |
Other comprehensive income (loss) | 0.9 | |
Ending balance | $ 29 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | Jun. 17, 2020 | Apr. 30, 2020 | Feb. 29, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Oct. 31, 2018 |
Subsequent Event [Line Items] | ||||||
Dividends paid | $ (5,500,000) | $ (5,400,000) | ||||
Cash dividends per share, declared (in dollars per share) | $ 0.26 | $ 0.25 | ||||
Repurchase of common stock | $ 5,300,000 | $ 2,000,000 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends per share, declared (in dollars per share) | $ 0.26 | |||||
Common Stock | ||||||
Subsequent Event [Line Items] | ||||||
Shares repurchases (in shares) | 0.1 | 0 | ||||
Share Repurchase Plan | ||||||
Subsequent Event [Line Items] | ||||||
Authorized amount | $ 50,000,000 | |||||
Repurchase of common stock | $ 5,300,000 | |||||
Remaining amount of authorized purchases | $ 29,700,000 | |||||
Employee Stock Options | ||||||
Subsequent Event [Line Items] | ||||||
Options issued (in shares) | 0.1 | |||||
Exercise price (in dollars per share) | $ 53.78 | |||||
Option term | 10 years | |||||
Average expected term | 6 years | |||||
Fair value (in dollars per share) | $ 13.64 | |||||
Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends per share, paid (in dollars per share) | $ 0.26 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Assumptions Used (Details) - Employee Stock Options | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average expected term | 6 years |
Expected volatility | 31.53% |
Risk-free interest rate | 1.17% |
Expected dividend yield | 1.93% |
Business Segment Information -
Business Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 2 |
Performance obligation | $ | $ 202.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligation, percentage | 96.00% |
Remaining performance obligation, expected timing | 1 year |
Business Segment Information _2
Business Segment Information - Schedule of Segment Operating Results and Other Financial Data (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 282.7 | $ 303 |
Segment Profit | 20.5 | 16.6 |
Other income (expense), net | 1.4 | (1.5) |
Income from continuing operations before income taxes | 17.9 | 10.6 |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 284 | 304 |
Segment Profit | 29.1 | 27 |
Intersegment sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | (1.3) | (1) |
Corporate expense | ||
Segment Reporting Information [Line Items] | ||
Segment Profit | (8.5) | (9.6) |
Interest expense, net | (4) | (4.5) |
Other income (expense), net | 1.3 | (2.3) |
Sealing Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 214.9 | 223.7 |
Sealing Products | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 216.1 | 224.5 |
Segment Profit | 25.7 | 20.8 |
Engineered Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 67.8 | 79.3 |
Engineered Products | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 67.9 | 79.5 |
Segment Profit | $ 3.4 | $ 6.2 |
Business Segment Information _3
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,041.6 | $ 2,035.1 |
Continuing Operations | Operating segments | Sealing Products | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,317.2 | 1,337.6 |
Continuing Operations | Operating segments | Engineered Products | ||
Segment Reporting Information [Line Items] | ||
Assets | 235.2 | 238.3 |
Continuing Operations | Corporate expense | ||
Segment Reporting Information [Line Items] | ||
Assets | 489.2 | 205.1 |
Discontinued Operations | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 0 | $ 254.1 |
Business Segment Information _4
Business Segment Information - Revenue by End Market (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 282.7 | $ 303 |
Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 214.9 | 223.7 |
Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 67.8 | 79.3 |
Aerospace | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 14.8 | 14.8 |
Aerospace | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 12.5 | 12.1 |
Aerospace | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2.3 | 2.7 |
Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 20.7 | 24.3 |
Automotive | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0.2 | 1 |
Automotive | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 20.5 | 23.3 |
Chemical and material processing | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 23 | 27.6 |
Chemical and material processing | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 12.9 | 15.4 |
Chemical and material processing | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10.1 | 12.2 |
Food and pharmaceutical | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 11.7 | 9.9 |
Food and pharmaceutical | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 11.2 | 9.7 |
Food and pharmaceutical | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0.5 | 0.2 |
General industrial | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 65.4 | 69.8 |
General industrial | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 46 | 43.5 |
General industrial | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 19.4 | 26.3 |
Medium-duty/heavy-duty truck | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 68.9 | 89.4 |
Medium-duty/heavy-duty truck | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 68.8 | 89.2 |
Medium-duty/heavy-duty truck | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0.1 | 0.2 |
Oil and gas | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 25.4 | 24.8 |
Oil and gas | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 15 | 14.3 |
Oil and gas | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10.4 | 10.5 |
Power generation | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 14.3 | 13 |
Power generation | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9.9 | 10.6 |
Power generation | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4.4 | 2.4 |
Semiconductors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 36.5 | 25.6 |
Semiconductors | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 36.5 | 25.6 |
Semiconductors | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2 | 3.8 |
Other | Sealing Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1.9 | 2.3 |
Other | Engineered Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 0.1 | $ 1.5 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) € in Millions | Mar. 31, 2020USD ($) | May 31, 2019EUR (€) | May 31, 2019USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018USD ($) |
Summary of Credit Derivatives [Abstract] | |||||
Notional amount | $ 100,000,000 | $ 200,000,000 | |||
Amount of hedged item | € | € 89.6 | € 172.8 | |||
Weighted average interest rate | 3.50% | 3.50% | 2.80% | 2.80% | |
Derivative asset | $ 27,000,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Foreign currency derivatives | $ 27 | |
Assets | 63.2 | $ 46.1 |
Liabilities | ||
Liabilities | 11.3 | 11.9 |
Level 1 | ||
Assets | ||
Time deposits | 25 | 22.9 |
Deferred compensation assets | 11.2 | 10.9 |
Liabilities | ||
Deferred compensation liabilities | 11.3 | 11.3 |
Level 2 | ||
Assets | ||
Foreign currency derivatives | 27 | 12.3 |
Liabilities | ||
Foreign currency derivatives | $ 0 | $ 0.6 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Carrying Value | $ 495 | $ 629.3 |
Fair Value | $ 491.6 | $ 658 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | $ (22.1) | $ 5.8 | |
Amounts reclassified from accumulated other comprehensive loss | 0.5 | 1 | |
Net current-period other comprehensive income (loss) | (21.6) | 6.8 | |
Unrealized Translation Adjustments | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | 9.8 | (10.6) | |
Adoption of new accounting standard | $ 0 | ||
Adjusted beginning balance | (10.6) | ||
Other comprehensive income (loss) before reclassifications | (22.1) | 5.8 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Net current-period other comprehensive income (loss) | (22.1) | 5.8 | |
Less: other comprehensive income attributable to redeemable non-controlling interests | 0.9 | ||
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | (23) | ||
Ending balance | (13.2) | (4.8) | |
Pension and Other Postretirement Plans | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (46.2) | (34.9) | |
Adoption of new accounting standard | (11.5) | ||
Adjusted beginning balance | (46.4) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0.5 | 1 | |
Net current-period other comprehensive income (loss) | 0.5 | 1 | |
Less: other comprehensive income attributable to redeemable non-controlling interests | 0 | ||
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | 0.5 | ||
Ending balance | (45.7) | (45.4) | |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (36.4) | (45.5) | |
Adoption of new accounting standard | (11.5) | ||
Adjusted beginning balance | $ (57) | ||
Net current-period other comprehensive income (loss) | (22.5) | 6.8 | |
Less: other comprehensive income attributable to redeemable non-controlling interests | 0.9 | ||
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | (22.5) | ||
Ending balance | $ (58.9) | $ (50.2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | $ 17.9 | $ 10.6 |
Tax benefit | (7.7) | (2.8) |
Amount Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 0.5 | 1.6 |
Tax benefit | 0 | (0.6) |
Net income (loss) | 0.5 | 1 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial losses | 0.2 | 1.6 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Curtailment | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial losses | $ 0.3 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions | Jun. 30, 2018site | Nov. 07, 2017USD ($) | Apr. 06, 2017EUR (€) | Oct. 31, 2016USD ($) | Oct. 31, 2019USD ($) | Aug. 31, 2016residencesampling_event | Mar. 31, 2020USD ($)sitemi | Dec. 31, 2019USD ($)mi | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($)site | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)site | Mar. 31, 2020USD ($)sitemi | Jan. 24, 2020USD ($) | Jan. 31, 2019property | Jun. 30, 2016EUR (€) | Mar. 31, 2016USD ($) | Oct. 15, 2015mine | Apr. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 19, 2014site |
Site Contingency [Line Items] | |||||||||||||||||||||
Number of sites subject to remediation | site | 19 | 19 | |||||||||||||||||||
Number of sites, cost in excess of 100K | site | 17 | 17 | |||||||||||||||||||
Cost per site minimis threshold | $ 100,000 | ||||||||||||||||||||
Number of sites, discontinued operations | site | 17 | 17 | |||||||||||||||||||
Number of sites, active operations | site | 2 | 2 | |||||||||||||||||||
Number of sites, investigation completed | site | 16 | 16 | |||||||||||||||||||
Number of sites investigation in progress | site | 3 | 3 | |||||||||||||||||||
Number of sites remediation for soil and groundwater contamination | site | 14 | 14 | |||||||||||||||||||
Environmental | $ 20,500,000 | $ 36,000,000 | $ 20,500,000 | ||||||||||||||||||
Number of other potentially responsible parties | site | 120 | 70 | |||||||||||||||||||
Estimate of cost | $ 726,000,000 | ||||||||||||||||||||
Estimate low end | $ 165,000,000 | ||||||||||||||||||||
Estimated development time | 4 years | ||||||||||||||||||||
Investigate sites notice from EPA | site | 6 | ||||||||||||||||||||
Provision for new losses | $ 1,900,000 | $ 1,000,000 | $ 1,100,000 | $ 1,100,000 | |||||||||||||||||
Investigative sites | site | 8 | ||||||||||||||||||||
Accrual component amount | $ 1,900,000 | 1,900,000 | |||||||||||||||||||
Number of residences above applicable screening levels | residence | 3 | ||||||||||||||||||||
Number of sampling events below applicable screening levels | sampling_event | 2 | ||||||||||||||||||||
Loss contingency percentage of damages allocated to company | 65.00% | ||||||||||||||||||||
Loss contingency percentage of damages allocated to counterparty | 35.00% | ||||||||||||||||||||
Estimate of possible loss | € | € 0.4 | ||||||||||||||||||||
Estimated insurance recoveries | 25,000,000 | 25,000,000 | |||||||||||||||||||
Insurance recoveries to date | 22,000,000 | ||||||||||||||||||||
Estimated recovery for non-GST Trust claimants | 10,000,000 | 10,000,000 | |||||||||||||||||||
Threshold of recovery before shared in trust | 3,000,000 | 3,000,000 | |||||||||||||||||||
Lower Passaic River Study Area, Focused Feasibility Study, April 11, 2014 | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Environmental | 2,700,000 | 2,700,000 | $ 3,500,000 | ||||||||||||||||||
Onondaga Site EPA Remedial Investigation | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Environmental | 0 | 0 | $ 10,000,000 | ||||||||||||||||||
Coltec Industries Inc. | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Environmental | 4,300,000 | $ 4,300,000 | $ 1,300,000 | ||||||||||||||||||
Provision for new losses | $ 3,500,000 | $ 5,700,000 | |||||||||||||||||||
Payments for environmental loss contingencies | $ 4,500,000 | ||||||||||||||||||||
Minimum | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Loss exposure in excess of accrual | € | € 7.9 | ||||||||||||||||||||
Site contingency, loss exposure in excepss of accrual best estimate | € | 1.8 | ||||||||||||||||||||
Estimate of possible loss | € | 5.1 | ||||||||||||||||||||
Loss accrual | € | 0.4 | ||||||||||||||||||||
Maximum | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Portion of site subject to remediation | mi | 9 | 9 | |||||||||||||||||||
Loss exposure in excess of accrual | € | 10.2 | ||||||||||||||||||||
Site contingency, loss exposure in excepss of accrual best estimate | € | 2.1 | ||||||||||||||||||||
Estimate of possible loss | € | € 6.6 | ||||||||||||||||||||
Arizona | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Investigate sites notice from EPA | 2 | 6 | 2 | ||||||||||||||||||
Mississippi | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Provision for new losses | $ 3,000,000 | $ 4,700,000 | |||||||||||||||||||
Number of property owners | property | 27 | ||||||||||||||||||||
Environmental Remediation | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Loss in period | $ 800,000 | ||||||||||||||||||||
Asbestos Issue | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Insurance coverage amount | $ 5,500,000 | 5,500,000 | |||||||||||||||||||
Insurance available for future claims | 5,500,000 | 5,500,000 | |||||||||||||||||||
Estimated insurance recoveries, year one | 5,500,000 | 5,500,000 | |||||||||||||||||||
Asbestos Issue | GST, LLC | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Amount recovered | $ 8,800,000 | $ 8,800,000 | |||||||||||||||||||
Affiliated Entity | Crucible Steel Corporation | |||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Portion of site subject to remediation | mi | 17 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Changes in Carrying Amount of Product Warranty Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of year | $ 10.1 | $ 9.4 |
Net charges to expense | 0.7 | 0.4 |
Settlements made | (1.3) | (1.1) |
Balance at end of year | $ 9.5 | $ 8.7 |