Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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, Street | 5605 Carnegie Boulevard | |
Entity Address, Suite | Suite 500 | |
Entity Address, City | Charlotte | |
Entity Address, State | NC | |
Entity Address, Postal Zip Code | 28209 | |
City Area Code | 704 | |
Local Phone Number | 731-1500 | |
Title of each class | Common stock, $0.01 par value | |
Trading Symbol(s) | NPO | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,601,609 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001164863 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 298.6 | $ 247 | $ 577.9 | $ 529.7 |
Cost of sales | 181.6 | 164.5 | 351.5 | 351.9 |
Gross profit | 117 | 82.5 | 226.4 | 177.8 |
Operating expenses: | ||||
Selling, general and administrative | 82.7 | 68.2 | 163 | 141.4 |
Other | 2.4 | 12.5 | 4.3 | 14.1 |
Total operating expenses | 85.1 | 80.7 | 167.3 | 155.5 |
Operating income | 31.9 | 1.8 | 59.1 | 22.3 |
Interest expense | (4) | (3.9) | (8) | (8.6) |
Interest income | 0.2 | 0.4 | 0.4 | 1.1 |
Other income | 1.9 | 0.3 | 1.8 | 1.7 |
Income (loss) from continuing operations before income taxes | 30 | (1.4) | 53.3 | 16.5 |
Income tax expense | (0.8) | (1.8) | (6) | (9.5) |
Income (loss) from continuing operations | 29.2 | (3.2) | 47.3 | 7 |
Income (loss) from discontinued operations, including gain on sale, net of tax | 0 | (3.2) | 0 | 205.4 |
Net of tax | 29.2 | (6.4) | 47.3 | 212.4 |
Less: net income (loss) attributable to redeemable non-controlling interests | (0.1) | 0.1 | 0 | 0.2 |
Net income | 29.3 | (6.5) | 47.3 | 212.2 |
Comprehensive income | 41.6 | 16.9 | 51.4 | 214.1 |
Less: comprehensive income attributable to redeemable non-controlling interests | 0.5 | 0.7 | 0.2 | 1.7 |
Comprehensive income attributable to EnPro Industries, Inc. | 41.1 | 16.2 | 51.2 | 212.4 |
Income (loss) attributable to EnPro Industries, Inc. common shareholders: | ||||
Income (loss) from continuing operations attributable to EnPro Industries, Inc. | 29.3 | (3.3) | 47.3 | 6.8 |
Income (loss) from discontinued operations, including gain on sale, net of tax | 0 | (3.2) | 0 | 205.4 |
Net income (loss) attributable to EnPro Industries, Inc. | $ 29.3 | $ (6.5) | $ 47.3 | $ 212.2 |
Basic earnings (loss) per share attributable to EnPro Industries, Inc.: | ||||
Continuing operations (in dollars per share) | $ 1.42 | $ (0.16) | $ 2.30 | $ 0.33 |
Discontinued operations (in dollars per share) | 0 | (0.15) | 0 | 9.99 |
Net income per share (in dollars per share) | 1.42 | (0.31) | 2.30 | 10.32 |
Diluted earnings (loss) per share attributable to EnPro Industries, Inc.: | ||||
Continuing operations (in dollars per share) | 1.41 | (0.16) | 2.28 | 0.33 |
Discontinued operations (in dollars per share) | 0 | (0.15) | 0 | 9.98 |
Net income per share (in dollars per share) | $ 1.41 | $ (0.31) | $ 2.28 | $ 10.31 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING ACTIVITIES OF CONTINUING OPERATIONS | ||
Net income (loss) | $ 47.3 | $ 212.4 |
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | ||
Income from discontinued operations, net of taxes | 0 | (205.4) |
Depreciation | 13.8 | 15 |
Amortization | 23.7 | 19.4 |
Deferred income taxes | (2.2) | (1.6) |
Stock-based compensation | 3.3 | 2.8 |
Other non-cash adjustments | 4 | 11.7 |
Change in assets and liabilities, net of effects of divestitures of businesses: | ||
Accounts receivable, net | (24.3) | 2.7 |
Inventories | (10.6) | (1.5) |
Accounts payable | 16.7 | (13.7) |
Other current assets and liabilities | (11.5) | (10.9) |
Other non-current assets and liabilities | (1.7) | 2.5 |
Net cash provided by operating activities of continuing operations | 58.5 | 33.4 |
INVESTING ACTIVITIES OF CONTINUING OPERATIONS | ||
Purchases of property, plant and equipment | (10.2) | (8.9) |
Proceeds from (payments for) sale of businesses | (2.3) | |
Proceeds from (payments for) sale of businesses | 444.9 | |
Other | 0.5 | (2.4) |
Net cash used in investing activities | (12) | 433.6 |
FINANCING ACTIVITIES OF CONTINUING OPERATIONS | ||
Proceeds from debt | 0 | 24.9 |
Repayments of debt | (2) | (160.3) |
Repurchase of common stock | 0 | (5.3) |
Dividends paid | (11.3) | (10.8) |
Other | (1.5) | (1.3) |
Net cash used in financing activities of continuing operations | (14.8) | (152.8) |
CASH FLOWS OF DISCONTINUED OPERATIONS | ||
Operating cash flows | 0 | (6.2) |
Net cash used in discontinued operations | 0 | (6.2) |
Effect of exchange rate changes on cash and cash equivalents | 0.7 | (4.9) |
Net increase in cash and cash equivalents | 32.4 | 303.1 |
Cash and cash equivalents at beginning of period | 229.5 | 121.2 |
Cash and cash equivalents at end of period | 261.9 | 424.3 |
Cash paid during the period for: | ||
Interest, net | 7.5 | 8.4 |
Income taxes, net | 18.1 | 11.2 |
Non-cash investing and financing activities: | ||
Non-cash acquisitions of property, plant, and equipment | $ 1.1 | $ 0.8 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 261.9 | $ 229.5 |
Accounts receivable, net | 166.5 | 143.2 |
Inventories | 149.1 | 139.1 |
Income tax receivable | 51.9 | 49.6 |
Prepaid expenses and other current assets | 16.7 | 17.6 |
Total current assets | 646.1 | 579 |
Property, plant and equipment, net | 189.6 | 195 |
Goodwill | 621.4 | 621.8 |
Other intangible assets, net | 532.2 | 553.6 |
Other assets | 137.5 | 134.2 |
Total assets | 2,126.8 | 2,083.6 |
Current liabilities | ||
Current maturities of long-term debt | 3.9 | 3.8 |
Accounts payable | 85 | 69.8 |
Accrued expenses | 127.6 | 128.4 |
Total current liabilities | 216.5 | 202 |
Long-term debt | 486.3 | 487.5 |
Deferred taxes and non-current income taxes payable | 125 | 130.5 |
Other liabilities | 129.3 | 136.7 |
Total liabilities | 957.1 | 956.7 |
Commitments and contingencies | ||
Redeemable non-controlling interests | 51.6 | 48.4 |
Shareholders’ equity | ||
Common stock – $.01 par value; 100,000,000 shares authorized; issued, 20,783,021 shares in 2021 and 20,718,675 shares in 2020 | 0.2 | 0.2 |
Additional paid-in capital | 292.2 | 289.6 |
Retained earnings | 827.9 | 794.8 |
Accumulated other comprehensive loss | (1) | (4.9) |
Common stock held in treasury, at cost – 181,484 shares in 2021 and 182,511 shares in 2020 | (1.2) | (1.2) |
Total shareholders’ equity | 1,118.1 | 1,078.5 |
Total liabilities and equity | $ 2,126.8 | $ 2,083.6 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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) | 20,783,021 | 20,718,675 |
Treasury stock, shares (in shares) | 181,484 | 182,511 |
Overview, Basis of Presentation
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2021 | |
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 designing, developing, manufacturing, servicing, and marketing proprietary engineered industrial products and serves a wide variety of customers in varied industries around the world. Over the past several years, we have executed several strategic initiatives to change the portfolio of businesses that we operate to focus on materials science-based businesses with leading technologies, compelling margins, strong cash flow, and high levels of recurring revenue that serve markets with favorable secular tailwinds. 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, 2020 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2020. 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, 2020 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. All intercompany accounts and transactions between our consolidated operations have been eliminated. During March 2021, we identified two errors related to our accounting for the disposal of the Air Springs portion of the heavy-duty trucking business that closed in the fourth quarter of 2020. Such errors resulted in an understatement of the pre-tax loss on disposal for this disposition by approximately $2.0 million and an overstatement of net income by approximately $1.5 million in our previously issued consolidated financial statements for calendar 2020. Net income for calendar 2020 was $184.8 million. We evaluated the errors and concluded that they were not material to our previously issued consolidated financial statements and recorded the pre-tax loss on disposal as an out-of-period adjustment in other income in our Consolidated Statement of Operations for the first quarter of 2021. Beginning with the first quarter of 2021, we modified the presentation of our Consolidated Statements of Operations to move income from discontinued operations directly following income from continuing operations before calculating a net income subtotal. Consistent with this change in presentation, we also began the Consolidated Statements of Cash Flows with net income rather than net income attributable to EnPro Industries, Inc. We have revised the prior period presented for these two financial statements to conform with this modified presentation. There is no impact to the Consolidated Balance Sheets as a result of this presentation change. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | AcquisitionOn October 26, 2020, a subsidiary of EnPro formed for this purpose (the "Alluxa Acquisition Subsidiary") acquired all of the equity securities of Alluxa, Inc. ("Alluxa"), a privately held, California-based company. Alluxa is an industrial technology company that provides specialized optical filters and thin-film coatings for the most challenging applications in the industrial technology, life sciences, and semiconductor markets. Alluxa's products are developed through a proprietary coating process using state-of-the-art advanced equipment. Alluxa’s global distribution capabilities support the company’s international reach, serving customers across the Americas, Europe, and Asia. Founded in 2007, Alluxa has two locations in California and is headquartered in Santa Rosa, California. Alluxa is included with the Advanced Surface Technologies segment. The following pro forma condensed consolidated financial results of operations for the quarter and six months ended June 30, 2020 are presented as if the acquisition had been completed prior to 2020: Quarter Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) Pro forma net sales $ 254.7 $ 545.0 Pro forma income (loss) from continuing operations $ (4.4) $ 4.9 These amounts have been calculated after applying our accounting policies and adjusting the results of Alluxa 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 2020 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 this acquisition. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred prior to 2020, or of future results of the consolidated entities. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
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 quarters ended June 30, 2021 and 2020 were 2.6% and (123.5)%, respectively. The effective tax rate for the three months ended June 30, 2021 is primarily the result of the release of a valuation allowance on certain foreign net operating losses (7.9%), the favorable conclusion of the IRS examination (4.7%), and the release of certain uncertain tax positions (4.4%). The high effective tax rate for the three months ended June 30, 2020 is primarily the result of a geographical mix of lower pre-tax income in the U.S. combined with minimum tax on certain non-U.S. earnings, disproportionately higher pre-tax income in higher foreign tax jurisdictions and an increase in valuation allowance against certain net operating losses. The effective tax rates for the six months ended June 30, 2021 and 2020 were 11.2% and 57.3%, respectively. The effective tax rate for the six months ended June 30, 2021 is primarily the result of the release of a valuation allowance on certain foreign net operating losses, the favorable conclusion of the IRS examination, and the release of certain uncertain tax positions, partially offset by higher tax rates in most foreign jurisdictions. The effective tax rate for the six months ended June 30, 2020 is primarily the result of a geographical mix of lower pre-tax income in the U.S. combined with the minimum tax on certain non-U.S. earnings, current year increase of valuation allowance against certain net operating losses, and higher tax rates in most foreign jurisdictions. In June 2017, the IRS began an examination of our 2014 through 2017 U.S. federal income tax returns. The IRS audit has concluded during the quarter ended June 30, 2021 and as a result of the conclusion of the audit, we expect to receive a cash refund of approximately $24.7 million, plus any applicable interest. The net receivable balance related to the IRS audit was $21.8 million at December 31, 2020. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Quarters Ended Six months ended June 30, 2021 2020 2021 2020 (in millions, except per share amounts) Numerator (basic and diluted): Income (loss) from continuing operations, net of tax $ 29.2 $ (3.2) $ 47.3 $ 7.0 Less: net income (loss) attributable to redeemable non-controlling interests (0.1) 0.1 — 0.2 Income (loss) from continuing operations attributable to EnPro Industries, Inc. 29.3 (3.3) 47.3 6.8 Income (loss) from discontinued operations, net of tax — (3.2) — 205.4 Net income (loss) attributable to EnPro Industries, Inc. $ 29.3 $ (6.5) $ 47.3 $ 212.2 Denominator: Weighted-average shares – basic 20.6 20.5 20.6 20.6 Share-based awards 0.2 — 0.2 — Weighted-average shares – diluted 20.8 20.5 20.8 20.6 Basic earnings (loss) per share attributable to EnPro Industries, Inc.: Continuing operations $ 1.42 $ (0.16) $ 2.30 $ 0.33 Discontinued operations — (0.15) — 9.99 Net income (loss) per share $ 1.42 $ (0.31) $ 2.30 $ 10.32 Diluted earnings (loss) per share attributable to EnPro Industries, Inc.: Continuing operations $ 1.41 $ (0.16) $ 2.28 $ 0.33 Discontinued operations — (0.15) — 9.98 Net income (loss) per share $ 1.41 $ (0.31) $ 2.28 $ 10.31 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories June 30, December 31, (in millions) Finished products $ 69.3 $ 69.4 Work in process 28.0 24.8 Raw materials and supplies 55.9 48.7 153.2 142.9 Reserve to reduce certain inventories to LIFO basis (4.1) (3.8) Total inventories $ 149.1 $ 139.1 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021, are as follows: Sealing Advanced Surface Technologies Engineered Total (in millions) Goodwill as of December 31, 2020 $ 297.4 $ 307.7 $ 16.7 $ 621.8 Foreign currency translation (1.0) 0.6 — (0.4) Goodwill as of June 30, 2021 $ 296.4 $ 308.3 $ 16.7 $ 621.4 The goodwill balances reflected above are net of accumulated impairment losses of $27.8 million for the Sealing Technologies segment and $154.8 million for the Engineered Materials segment as of June 30, 2021 and December 31, 2020. Identifiable intangible assets are as follows: As of June 30, 2021 As of December 31, 2020 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 507.0 $ 192.2 $ 505.5 $ 177.8 Existing technology 179.9 47.5 179.6 41.3 Trademarks 44.4 26.7 44.6 25.7 Other 37.7 23.8 37.6 22.3 769.0 290.2 767.3 267.1 Indefinite-Lived: Trademarks 53.4 — 53.4 — Total $ 822.4 $ 290.2 $ 820.7 $ 267.1 Amortization for the quarters and six months ended June 30, 2021 and 2020 were $11.3 million, $8.9 million, $22.6 million and $17.9 million, respectively. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses June 30, December 31, (in millions) Salaries, wages and employee benefits $ 46.5 $ 46.3 Interest 4.4 4.4 Environmental 12.6 12.6 Income taxes 10.1 9.9 Taxes other than income taxes 11.8 9.4 Operating lease liabilities 9.6 10.1 Other 32.6 35.7 $ 127.6 $ 128.4 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021. The borrowing availability under the Revolving Credit Facility at June 30, 2021 was $388.6 million after giving consideration to $11.4 million of outstanding letters of credit. At June 30, 2021, we had $143.4 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. The indenture governing the Senior Notes includes 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. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2021 | |
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 quarters and six months ended June 30, 2021 and 2020, are as follows: Quarters Ended June 30, Six months ended June 30, Pension Benefits Other Benefits Pension Benefits Other Benefits 2021 2020 2021 2020 2021 2020 2021 2020 (in millions) Service cost $ 0.4 $ 1.2 $ — $ — $ 0.8 $ 2.2 $ — $ — Interest cost 2.2 2.6 0.1 0.1 4.5 5.4 0.1 0.1 Expected return on plan assets (4.6) (4.8) — — (9.1) (9.5) — — Amortization of prior service cost 0.1 — — — 0.1 — — — Amortization of net loss (gain) 0.2 1.3 — — 0.3 2.6 — (1.1) Curtailment loss — — — — — 0.3 — — Net periodic benefit cost (benefit) $ (1.7) $ 0.3 $ 0.1 $ 0.1 $ (3.4) $ 1.0 $ 0.1 $ (1.0) |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Changes in shareholders' equity for the six months ended June 30, 2021 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2020 20.5 $ 0.2 $ 289.6 $ 794.8 $ (4.9) $ (1.2) $ 1,078.5 $ 48.4 Net income — — — 18.0 — — 18.0 0.1 Other comprehensive loss — — — — (7.9) — (7.9) (0.5) Dividends ($0.27 per share) — — — (5.7) — — (5.7) — Incentive plan activity 0.1 — 1.2 — — — 1.2 — Other — — (0.1) (3.1) — — (3.2) 3.2 Balance, March 31, 2021 20.6 0.2 290.7 804.0 (12.8) (1.2) 1,080.9 51.2 Net income (loss) — — — 29.3 — — 29.3 (0.1) Other comprehensive income — — — — 11.8 — 11.8 0.6 Dividends ($0.27 per share) — — — (5.6) — (5.6) — Incentive plan activity — — 1.6 — — — 1.6 — Other — — (0.1) 0.2 — — 0.1 (0.1) Balance, June 30, 2021 20.6 $ 0.2 $ 292.2 $ 827.9 $ (1.0) $ (1.2) $ 1,118.1 $ 51.6 Changes in shareholders' equity for the six months ended June 30, 2020 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (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 Net income (loss) — — — (6.5) — — (6.5) 0.1 Other comprehensive income — — — — 22.7 — 22.7 0.6 Dividends ($0.26 per share) — — — (5.4) — — (5.4) — Incentive plan activity — — 1.5 — — — 1.5 — Balance, June 30, 2020 20.5 $ 0.2 $ 287.8 $ 833.6 $ (36.2) $ (1.2) $ 1,084.2 $ 29.7 We intend to declare regular quarterly cash dividends on our common stock, as determined by our board of directors, after taking into account our current and projected cash flows, earnings, financial position, debt covenants and other relevant factors. In accordance with the board of directors' declaration, total dividend payments of $11.3 million were made during the six months ended June 30, 2021. In July 2021, our board of directors declared a dividend of $0.27 per share, payable on September 15, 2021 to all shareholders of record as of September 1, 2021. In October 2018, our board of directors authorized the expenditure of up to $50.0 million for the repurchase of our outstanding common shares. During the six months ended June 30, 2020 we repurchased 0.1 million shares for $5.3 million. Prior to the expiration of the authorization in October 2020, total repurchases under the October 2018 authorization aggregated 0.3 million shares for $20.3 million. In October 2020, our board of directors authorized the expenditure of up to $50.0 million for the repurchase of our outstanding common shares through October 2022. We have not made any repurchases under this authorization. In February 2021, we issued stock options to certain key executives fo r 0.1 million common shares wit h an exercise price of $80.00 per share. The options vest pro-rata on the first, second and third anniversaries of 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 as of the grant date. 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 expectations as of the grant date. 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. The option awards issued in 2021 had a fair value of $27.46 per share at their grant date. The following assumptions were used to estimate the fair value of the 2021 option awards: Average expected term 6 years Expected volatility 40.29 % Risk-free interest rate 1.02 % Expected dividend yield 1.35 % |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We aggregate our operating businesses into three 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 Technologies 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, sanitary gaskets, hoses and fittings for the hygienic process industries, fluid transfer products for the pharmaceutical and biopharmaceutical industries, hole forming products, bellows and bellows assemblies, PTFE products, and heavy-duty commercial vehicle parts used in wheel-end and suspension components. These products are used in a variety of industries, including chemical and petrochemical processing, pulp and paper processing, power generation, food and pharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, heavy-duty trucking, aerospace, medical, filtration and semiconductor fabrication. In many of these industries, performance and durability are vital for safety and environmental protection. Many of our products are used in highly demanding applications, e.g., where extreme temperatures, extreme pressures, corrosive environments, strict tolerances, and/or worn equipment make product performance difficult. Our Advanced Surface Technologies segment applies proprietary technologies, processes, and capabilities to deliver highly differentiated suites of products and services for the most challenging applications in high growth markets. The segment’s products and services are used in highly demanding environments requiring performance, precision and repeatability, with a low tolerance for failure. The segment’s services include cleaning, coating, testing, refurbishment and verification services for critical components and assemblies used in state-of-the-art advanced node semiconductor manufacturing equipment. It designs, manufactures and sells specialized optical filters and thin-film coatings for the most challenging applications in the industrial technology, life sciences, and semiconductor markets and complex front-end wafer processing sub-systems, new and refurbished electrostatic chuck pedestals, thin film coatings, and edge-welded metal bellows for the semiconductor equipment industry and for critical applications in the space, aerospace and defense markets. Our Engineered Materials segment includes operations that design, manufacture and sell self-lubricating, non-rolling metal-polymer, engineered plastics, and fiber reinforced composite bearing products, precision engineered components and lubrication systems for reciprocating compressors and engines, critical service flange gaskets, seals and electrical flange isolation kits used in high-pressure wellhead equipment, flow lines, water injection lines, sour hydrocarbon process applications, and crude oil and natural gas pipeline/transmission line applications. These products are used in a wide range of applications, including the automotive, aerospace, pharmaceutical, pulp and paper, natural gas, health, power generation, machine tools, air treatment, refining, petrochemical and general industrial markets. We measure operating performance based on segment earnings before interest, income taxes, depreciation, amortization, and other selected items ("Adjusted Segment EBITDA"), which is segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition and divestiture expenses, restructuring costs, impairment charges, non-controlling interest compensation, amortization of the fair value adjustment to acquisition date inventory, and depreciation and amortization. Adjusted Segment EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies. 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 Adjusted Segment EBITDA. The accounting policies of the reportable segments are the same as those for EnPro. Non-controlling interest compensation allocation represents compensation expense associated with a portion of the rollover equity from the acquisitions of LeanTeq and Alluxa being subject to reduction for certain types of employment terminations of the sellers. This expense is recorded in selling, general, and administrative expenses on our Consolidated Statements of Operations and is directly related to the terms of the acquisitions. This expense will continue to be recognized as compensation expense over the term of the put and call options associated with the acquisitions unless certain employment terminations have occurred. Segment operating results and other financial data for the quarters and six months ended June 30, 2021 and 2020 were as follows: Quarters Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Sales Sealing Technologies $ 162.5 $ 150.6 $ 309.0 $ 324.2 Advanced Surface Technologies 59.2 40.0 113.9 76.7 Engineered Materials 80.0 58.6 160.4 133.7 301.7 249.2 583.3 534.6 Intersegment sales (3.1) (2.2) (5.4) (4.9) Total sales $ 298.6 $ 247.0 $ 577.9 $ 529.7 Adjusted Segment EBITDA Sealing Technologies $ 42.4 $ 30.5 $ 76.4 $ 64.1 Advanced Surface Technologies 15.6 11.0 32.9 18.3 Engineered Materials 13.0 4.9 25.6 13.2 $ 71.0 $ 46.4 $ 134.9 $ 95.6 Reconciliation of Adjusted Segment EBITDA to income (loss) from continuing operations before income taxes Adjusted Segment EBITDA $ 71.0 $ 46.4 $ 134.9 $ 95.6 Acquisition and divestiture expenses — (0.5) (0.1) (1.3) Non-controlling interest compensation allocation (1.3) (0.5) (2.9) (1.1) Amortization of fair value adjustment to acquisition date inventory (2.3) — (4.8) — Restructuring and impairment expense (2.7) (17.5) (4.5) (18.9) Depreciation and amortization expense (18.5) (17.2) (37.4) (34.5) Corporate expenses (12.8) (7.1) (24.3) (15.6) Interest expense, net (3.8) (3.5) (7.6) (7.5) Other income (expense), net 0.4 (1.5) — (0.2) Income (loss) from continuing operations before income taxes $ 30.0 $ (1.4) $ 53.3 $ 16.5 Segment assets are as follows: June 30, December 31, (in millions) Sealing Technologies $ 744.5 $ 741.9 Advanced Surface Technologies 761.8 768.2 Engineered Materials 256.5 245.8 Corporate 364.0 327.7 $ 2,126.8 $ 2,083.6 Backlog As of June 30, 2021, the aggregate amount of transaction price of remaining performance obligations, or backlog, on a consolidated basis was $284.7 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 quarters and six months ended June 30, 2021 and 2020: Quarter Ended June 30, 2021 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 8.3 $ 3.0 $ 1.5 $ 12.8 Automotive 0.6 0.2 16.3 17.1 Chemical and material processing 19.0 — 11.4 30.4 Food and pharmaceutical 16.6 — 0.3 16.9 General industrial 44.9 5.8 30.6 81.3 Medium-duty/heavy-duty truck 47.6 — 2.7 50.3 Oil and gas 5.4 1.7 15.8 22.9 Power generation 9.6 — 0.9 10.5 Semiconductors 5.4 47.9 — 53.3 Other 2.3 0.5 0.3 3.1 Total third-party sales $ 159.7 $ 59.1 $ 79.8 $ 298.6 Quarter Ended June 30, 2020 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 10.4 $ 2.1 $ 1.2 $ 13.7 Automotive 0.2 — 7.8 8.0 Chemical and material processing 12.8 — 11.6 24.4 Food and pharmaceutical 13.6 — 0.3 13.9 General industrial 36.7 — 19.7 56.4 Medium-duty/heavy-duty truck 54.1 — 1.2 55.3 Oil and gas 5.2 0.2 15.0 20.4 Power generation 11.1 — 1.6 12.7 Semiconductors 3.9 37.7 — 41.6 Other 0.5 — 0.1 0.6 Total third-party sales $ 148.5 $ 40.0 $ 58.5 $ 247.0 Six Months Ended June 30, 2021 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 15.0 $ 4.5 $ 2.8 $ 22.3 Automotive 1.0 0.5 35.0 36.5 Chemical and material processing 36.6 — 21.9 58.5 Food and pharmaceutical 33.0 — 0.8 33.8 General industrial 87.6 12.2 60.8 160.6 Medium-duty/heavy-duty truck 86.5 — 5.5 92.0 Oil and gas 9.6 2.4 30.7 42.7 Power generation 20.7 — 1.8 22.5 Semiconductors 10.1 92.8 — 102.9 Other 4.1 1.4 0.6 6.1 Total third-party sales $ 304.2 $ 113.8 $ 159.9 $ 577.9 Six Months Ended June 30, 2020 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 20.8 $ 4.2 $ 3.5 $ 28.5 Automotive 0.4 — 24.1 24.5 Chemical and material processing 25.7 — 21.7 47.4 Food and pharmaceutical 24.8 — 0.8 25.6 General industrial 82.7 — 44.0 126.7 Medium-duty/heavy-duty truck 122.9 — 3.3 126.2 Oil and gas 12.0 1.5 32.3 45.8 Power generation 21.0 — 3.4 24.4 Semiconductors 7.1 71.0 — 78.1 Other 2.4 — 0.1 2.5 Total third-party sales $ 319.8 $ 76.7 $ 133.2 $ 529.7 |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [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 June 30, 2021, the cross-currency swap agreements were recorded as a $1.5 million asset and a $3.4 million liability within other assets and other liabilities, respectively, 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 December 31, 2020 (in millions) Assets Time deposits $ 4.2 $ 4.2 Foreign currency derivatives 1.5 — Deferred compensation assets 9.8 8.6 $ 15.5 $ 12.8 Liabilities Deferred compensation liabilities $ 10.2 $ 8.9 Foreign currency derivatives 3.4 9.5 $ 13.6 $ 18.4 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: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Long-term debt $ 490.2 $ 513.3 $ 491.3 $ 520.8 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossChanges in accumulated other comprehensive loss by component (after tax) for the quarter ended June 30, 2021 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 23.7 $ (36.5) $ (12.8) Other comprehensive income before reclassifications 12.2 — 12.2 Amounts reclassified from accumulated other comprehensive loss — 0.2 0.2 Net current-period other comprehensive income 12.2 0.2 12.4 Less: other comprehensive income attributable to redeemable non-controlling interests 0.6 — 0.6 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 11.6 0.2 11.8 Ending balance $ 35.3 $ (36.3) $ (1.0) Changes in accumulated other comprehensive loss by component (after tax) for the quarter ended June 30, 2020 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ (13.2) $ (45.7) $ (58.9) Other comprehensive income before reclassifications 22.4 — 22.4 Amounts reclassified from accumulated other comprehensive loss — 0.9 0.9 Net current-period other comprehensive income 22.4 0.9 23.3 Less: other comprehensive income attributable to redeemable non-controlling interests 0.6 — 0.6 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 21.8 0.9 22.7 Ending balance $ 8.6 $ (44.8) $ (36.2) Changes in accumulated other comprehensive loss by component (after tax) for the six months ended June 30, 2021 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 31.7 $ (36.6) $ (4.9) Other comprehensive income before reclassifications 3.8 — 3.8 Amounts reclassified from accumulated other comprehensive loss — 0.3 0.3 Net current-period other comprehensive income 3.8 0.3 4.1 Less: other comprehensive income attributable to redeemable non-controlling interests 0.2 — 0.2 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 3.6 0.3 3.9 Ending balance $ 35.3 $ (36.3) $ (1.0) Changes in accumulated other comprehensive loss by component (after tax) for the six months ended June 30, 2020 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 9.8 $ (46.2) $ (36.4) Other comprehensive income before reclassifications 0.3 — 0.3 Amounts reclassified from accumulated other comprehensive loss — 1.4 1.4 Net current-period other comprehensive income 0.3 1.4 1.7 Less: other comprehensive income attributable to redeemable non-controlling interests 1.5 — 1.5 Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (1.2) 1.4 0.2 Ending balance $ 8.6 $ (44.8) $ (36.2) Reclassifications out of accumulated other comprehensive loss for the quarters and six months ended June 30, 2021 and 2020 are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Affected Statement of Quarters Ended Six Months Ended (in millions) 2021 2020 2021 2020 Pension and other postretirement plans adjustments: Actuarial losses $ 0.2 $ 1.3 $ 0.3 $ 1.5 (1) Prior service costs 0.1 — 0.1 — (1) Curtailment — — — 0.3 (1) Total before tax 0.3 1.3 0.4 1.8 Income before income taxes Tax benefit (0.1) (0.4) (0.1) (0.4) Income tax expense Net of tax $ 0.2 $ 0.9 $ 0.3 $ 1.4 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 and income (loss) from discontinued operations, including gain on sale, net of taxes (See Note 9, “Pensions and Postretirement Benefits ” for additional details). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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 laws and regulations of the U.S. and foreign countries. We take a proactive approach in our efforts to comply with these laws and regulations 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 or an investigation to determine responsibility for environmental conditions at 20 sites. At 14 of these sites, the future cost per site for us or our subsidiary is expected to exceed $100,000. Of these 20 sites, 18 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 3 sites. An investigation to determine responsibility for environmental conditions is ongoing at one site. 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. For sites with multiple future projected cost scenarios for identified feasible investigation and remediation options where no one estimate is more likely than all the others, our policy is to accrue the lowest estimate among the range of estimates. 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 and adjusted to reflect additional technical data and legal information. As of June 30, 2021 and December 31, 2020, we had accrued liabilities aggregating $39.9 million and $42.2 million, respectively, for estimated future expenditures relating to environmental contingencies. The current portion of our aggregate environmental liability at June 30, 2021 was $12.6 million. 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. We believe that our accruals for specific environmental liabilities are adequate based on currently available information. Based upon limited information regarding any incremental remediation or other actions that may be required at these sites, we cannot estimate any further loss or a reasonably possible range of loss related to these matters. 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 20 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. 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"). 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. In the fourth quarter of 2020, the third-party allocator issued his report, which determined the range for EnPro's liability for the lower eight miles of the river to be between $35,000 and $950,000. Our reserve at June 30, 2021 was $1.0 million. On April 14, 2021, the EPA issued its proposed remedy for the upper nine miles of the river, with an estimated present value cost of approximately $441 million. The proposed remedy would involve dredging and capping of the river sediment as an interim remedy followed by a period of monitoring to evaluate the response of the river system to the interim remedy. When the EPA initiated the allocation process in 2017, it explained that a fair, carefully structured, information-based allocation was necessary to promote settlements. With the completion of the allocation process, the EPA has begun settlement negotiations with the parties that participated in the allocation process, including EnPro. Further adjustments to our reserve for this site are possible as further information is developed in the course of these discussions. Except with respect to the lower eight miles of 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. 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 six months ended June 30, 2021 and 2020 are as follows: 2021 2020 (in millions) Balance at beginning of year $ 6.7 $ 10.1 Net charges to expense 1.0 1.0 Settlements made (1.5) (2.3) Balance at end of period $ 6.2 $ 8.8 Asbestos Insurance Receivables 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-GST 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-GST 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 related to the Pre-GST Coverage Block and anticipates further collections once the Trust begins making claims payments on non-GST Claims. As of June 30, 2021, approximately $4.2 million of available products hazard limits or insurance receivables existed under primary and excess general liability insurance policies other than the Pre-GST Coverage Block (the "GST Coverage Block") from solvent carriers, which we believe is available to cover contributions made to the Trust under the Joint Plan as the Trust uses those contributions to pay GST asbestos claims covered by policies in the GST Coverage Block. There are specific agreements in place with carriers regarding the remaining available coverage. We believe that all of the $4.2 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. We have billed an insurer in the GST Coverage Block $0.9 million for GST Claims paid by the Trust through June 2021. These amounts are included in Other Assets on our Consolidated Balance Sheet at June 30, 2021. 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-GST 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 $4.2 million of anticipated collections. The insurance available to cover current and future asbestos claims is from comprehensive general liability and excess 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. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On January 21, 2020 we sold our Fairbanks Morse division, which comprised our entire Power Systems segment, for a sales price of $450.0 million. The pre-tax gain on the disposition of Fairbanks Morse was $274.3 million. We have reported, for all periods presented, results of operations and cash flows of Fairbanks Morse as discontinued operations in the accompanying financial statements. Tax expense of $67.8 million on discontinued operations was recorded for the six months ended June 30, 2020. This was an increase in tax expense of $3.2 million in the quarter ended June 30, 2020, which was primarily due to a reduction in the foreign tax credit benefit because of a decrease in tax on the global intangible low-taxed income (“GILTI”) tax. The GILTI decrease was driven by the reduction in projected calendar 2020 pre-tax income in foreign jurisdictions in the second quarter of 2020. The results of operations for Fairbanks Morse were as follows: Quarter Ended June 30, 2020 Six Months Ended June 30, 2020 Net sales $ — $ 7.6 Cost of sales — 7.6 Gross profit — — Operating expenses: Selling, general, and administrative expenses — 1.5 Other — (0.1) Total operating expenses — 1.4 Loss from discontinued operations before income taxes — (1.4) Income tax benefit — 0.3 Loss from discontinued operations, net of taxes — (1.1) Gain (loss) from sale of discontinued operations, net of taxes (3.2) 206.5 Income (loss) from discontinued operations, including gain on sale, net of taxes $ (3.2) $ 205.4 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On August 2, 2021, Marvin Riley, by mutual agreement with our Board of Directors, resigned from the positions of President and Chief Executive Officer of EnPro and as a member of EnPro's Board of Directors, effective immediately. The terms of Mr. Riley's separation will result in additional expense of approximately $0.6 million to be recognized in the quarter ending September 30, 2021. Eric Vaillancourt, President of our Sealing Technologies segment, was appointed Interim President and Chief Executive Officer of EnPro on August 2, 2021 . |
Overview, Basis of Presentati_2
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2020. 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, 2020 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. All intercompany accounts and transactions between our consolidated operations have been eliminated. During March 2021, we identified two errors related to our accounting for the disposal of the Air Springs portion of the heavy-duty trucking business that closed in the fourth quarter of 2020. Such errors resulted in an understatement of the pre-tax loss on disposal for this disposition by approximately $2.0 million and an overstatement of net income by approximately $1.5 million in our previously issued consolidated financial statements for calendar 2020. Net income for calendar 2020 was $184.8 million. We evaluated the errors and concluded that they were not material to our previously issued consolidated financial statements and recorded the pre-tax loss on disposal as an out-of-period adjustment in other income in our Consolidated Statement of Operations for the first quarter of 2021. Beginning with the first quarter of 2021, we modified the presentation of our Consolidated Statements of Operations to move income from discontinued operations directly following income from continuing operations before calculating a net income subtotal. Consistent with this change in presentation, we also began the Consolidated Statements of Cash Flows with net income rather than net income attributable to EnPro Industries, Inc. We have revised the prior period presented for these two financial statements to conform with this modified presentation. There is no impact to the Consolidated Balance Sheets as a result of this presentation change. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition, Pro Forma Information | The following pro forma condensed consolidated financial results of operations for the quarter and six months ended June 30, 2020 are presented as if the acquisition had been completed prior to 2020: Quarter Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) Pro forma net sales $ 254.7 $ 545.0 Pro forma income (loss) from continuing operations $ (4.4) $ 4.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | Quarters Ended Six months ended June 30, 2021 2020 2021 2020 (in millions, except per share amounts) Numerator (basic and diluted): Income (loss) from continuing operations, net of tax $ 29.2 $ (3.2) $ 47.3 $ 7.0 Less: net income (loss) attributable to redeemable non-controlling interests (0.1) 0.1 — 0.2 Income (loss) from continuing operations attributable to EnPro Industries, Inc. 29.3 (3.3) 47.3 6.8 Income (loss) from discontinued operations, net of tax — (3.2) — 205.4 Net income (loss) attributable to EnPro Industries, Inc. $ 29.3 $ (6.5) $ 47.3 $ 212.2 Denominator: Weighted-average shares – basic 20.6 20.5 20.6 20.6 Share-based awards 0.2 — 0.2 — Weighted-average shares – diluted 20.8 20.5 20.8 20.6 Basic earnings (loss) per share attributable to EnPro Industries, Inc.: Continuing operations $ 1.42 $ (0.16) $ 2.30 $ 0.33 Discontinued operations — (0.15) — 9.99 Net income (loss) per share $ 1.42 $ (0.31) $ 2.30 $ 10.32 Diluted earnings (loss) per share attributable to EnPro Industries, Inc.: Continuing operations $ 1.41 $ (0.16) $ 2.28 $ 0.33 Discontinued operations — (0.15) — 9.98 Net income (loss) per share $ 1.41 $ (0.31) $ 2.28 $ 10.31 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | June 30, December 31, (in millions) Finished products $ 69.3 $ 69.4 Work in process 28.0 24.8 Raw materials and supplies 55.9 48.7 153.2 142.9 Reserve to reduce certain inventories to LIFO basis (4.1) (3.8) Total inventories $ 149.1 $ 139.1 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021, are as follows: Sealing Advanced Surface Technologies Engineered Total (in millions) Goodwill as of December 31, 2020 $ 297.4 $ 307.7 $ 16.7 $ 621.8 Foreign currency translation (1.0) 0.6 — (0.4) Goodwill as of June 30, 2021 $ 296.4 $ 308.3 $ 16.7 $ 621.4 |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets are as follows: As of June 30, 2021 As of December 31, 2020 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 507.0 $ 192.2 $ 505.5 $ 177.8 Existing technology 179.9 47.5 179.6 41.3 Trademarks 44.4 26.7 44.6 25.7 Other 37.7 23.8 37.6 22.3 769.0 290.2 767.3 267.1 Indefinite-Lived: Trademarks 53.4 — 53.4 — Total $ 822.4 $ 290.2 $ 820.7 $ 267.1 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | June 30, December 31, (in millions) Salaries, wages and employee benefits $ 46.5 $ 46.3 Interest 4.4 4.4 Environmental 12.6 12.6 Income taxes 10.1 9.9 Taxes other than income taxes 11.8 9.4 Operating lease liabilities 9.6 10.1 Other 32.6 35.7 $ 127.6 $ 128.4 |
Pensions and Postretirement B_2
Pensions and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 quarters and six months ended June 30, 2021 and 2020, are as follows: Quarters Ended June 30, Six months ended June 30, Pension Benefits Other Benefits Pension Benefits Other Benefits 2021 2020 2021 2020 2021 2020 2021 2020 (in millions) Service cost $ 0.4 $ 1.2 $ — $ — $ 0.8 $ 2.2 $ — $ — Interest cost 2.2 2.6 0.1 0.1 4.5 5.4 0.1 0.1 Expected return on plan assets (4.6) (4.8) — — (9.1) (9.5) — — Amortization of prior service cost 0.1 — — — 0.1 — — — Amortization of net loss (gain) 0.2 1.3 — — 0.3 2.6 — (1.1) Curtailment loss — — — — — 0.3 — — Net periodic benefit cost (benefit) $ (1.7) $ 0.3 $ 0.1 $ 0.1 $ (3.4) $ 1.0 $ 0.1 $ (1.0) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in shareholders' equity for the six months ended June 30, 2021 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2020 20.5 $ 0.2 $ 289.6 $ 794.8 $ (4.9) $ (1.2) $ 1,078.5 $ 48.4 Net income — — — 18.0 — — 18.0 0.1 Other comprehensive loss — — — — (7.9) — (7.9) (0.5) Dividends ($0.27 per share) — — — (5.7) — — (5.7) — Incentive plan activity 0.1 — 1.2 — — — 1.2 — Other — — (0.1) (3.1) — — (3.2) 3.2 Balance, March 31, 2021 20.6 0.2 290.7 804.0 (12.8) (1.2) 1,080.9 51.2 Net income (loss) — — — 29.3 — — 29.3 (0.1) Other comprehensive income — — — — 11.8 — 11.8 0.6 Dividends ($0.27 per share) — — — (5.6) — (5.6) — Incentive plan activity — — 1.6 — — — 1.6 — Other — — (0.1) 0.2 — — 0.1 (0.1) Balance, June 30, 2021 20.6 $ 0.2 $ 292.2 $ 827.9 $ (1.0) $ (1.2) $ 1,118.1 $ 51.6 Changes in shareholders' equity for the six months ended June 30, 2020 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (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 Net income (loss) — — — (6.5) — — (6.5) 0.1 Other comprehensive income — — — — 22.7 — 22.7 0.6 Dividends ($0.26 per share) — — — (5.4) — — (5.4) — Incentive plan activity — — 1.5 — — — 1.5 — Balance, June 30, 2020 20.5 $ 0.2 $ 287.8 $ 833.6 $ (36.2) $ (1.2) $ 1,084.2 $ 29.7 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The option awards issued in 2021 had a fair value of $27.46 per share at their grant date. The following assumptions were used to estimate the fair value of the 2021 option awards: Average expected term 6 years Expected volatility 40.29 % Risk-free interest rate 1.02 % Expected dividend yield 1.35 % |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Results and Other Financial Data | Segment operating results and other financial data for the quarters and six months ended June 30, 2021 and 2020 were as follows: Quarters Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) Sales Sealing Technologies $ 162.5 $ 150.6 $ 309.0 $ 324.2 Advanced Surface Technologies 59.2 40.0 113.9 76.7 Engineered Materials 80.0 58.6 160.4 133.7 301.7 249.2 583.3 534.6 Intersegment sales (3.1) (2.2) (5.4) (4.9) Total sales $ 298.6 $ 247.0 $ 577.9 $ 529.7 Adjusted Segment EBITDA Sealing Technologies $ 42.4 $ 30.5 $ 76.4 $ 64.1 Advanced Surface Technologies 15.6 11.0 32.9 18.3 Engineered Materials 13.0 4.9 25.6 13.2 $ 71.0 $ 46.4 $ 134.9 $ 95.6 Reconciliation of Adjusted Segment EBITDA to income (loss) from continuing operations before income taxes Adjusted Segment EBITDA $ 71.0 $ 46.4 $ 134.9 $ 95.6 Acquisition and divestiture expenses — (0.5) (0.1) (1.3) Non-controlling interest compensation allocation (1.3) (0.5) (2.9) (1.1) Amortization of fair value adjustment to acquisition date inventory (2.3) — (4.8) — Restructuring and impairment expense (2.7) (17.5) (4.5) (18.9) Depreciation and amortization expense (18.5) (17.2) (37.4) (34.5) Corporate expenses (12.8) (7.1) (24.3) (15.6) Interest expense, net (3.8) (3.5) (7.6) (7.5) Other income (expense), net 0.4 (1.5) — (0.2) Income (loss) from continuing operations before income taxes $ 30.0 $ (1.4) $ 53.3 $ 16.5 |
Schedule of Total Assets Segment | Segment assets are as follows: June 30, December 31, (in millions) Sealing Technologies $ 744.5 $ 741.9 Advanced Surface Technologies 761.8 768.2 Engineered Materials 256.5 245.8 Corporate 364.0 327.7 $ 2,126.8 $ 2,083.6 |
Disaggregation of Revenue | Below is a summary of our third-party sales by major end market with which we did business for the quarters and six months ended June 30, 2021 and 2020: Quarter Ended June 30, 2021 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 8.3 $ 3.0 $ 1.5 $ 12.8 Automotive 0.6 0.2 16.3 17.1 Chemical and material processing 19.0 — 11.4 30.4 Food and pharmaceutical 16.6 — 0.3 16.9 General industrial 44.9 5.8 30.6 81.3 Medium-duty/heavy-duty truck 47.6 — 2.7 50.3 Oil and gas 5.4 1.7 15.8 22.9 Power generation 9.6 — 0.9 10.5 Semiconductors 5.4 47.9 — 53.3 Other 2.3 0.5 0.3 3.1 Total third-party sales $ 159.7 $ 59.1 $ 79.8 $ 298.6 Quarter Ended June 30, 2020 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 10.4 $ 2.1 $ 1.2 $ 13.7 Automotive 0.2 — 7.8 8.0 Chemical and material processing 12.8 — 11.6 24.4 Food and pharmaceutical 13.6 — 0.3 13.9 General industrial 36.7 — 19.7 56.4 Medium-duty/heavy-duty truck 54.1 — 1.2 55.3 Oil and gas 5.2 0.2 15.0 20.4 Power generation 11.1 — 1.6 12.7 Semiconductors 3.9 37.7 — 41.6 Other 0.5 — 0.1 0.6 Total third-party sales $ 148.5 $ 40.0 $ 58.5 $ 247.0 Six Months Ended June 30, 2021 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 15.0 $ 4.5 $ 2.8 $ 22.3 Automotive 1.0 0.5 35.0 36.5 Chemical and material processing 36.6 — 21.9 58.5 Food and pharmaceutical 33.0 — 0.8 33.8 General industrial 87.6 12.2 60.8 160.6 Medium-duty/heavy-duty truck 86.5 — 5.5 92.0 Oil and gas 9.6 2.4 30.7 42.7 Power generation 20.7 — 1.8 22.5 Semiconductors 10.1 92.8 — 102.9 Other 4.1 1.4 0.6 6.1 Total third-party sales $ 304.2 $ 113.8 $ 159.9 $ 577.9 Six Months Ended June 30, 2020 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 20.8 $ 4.2 $ 3.5 $ 28.5 Automotive 0.4 — 24.1 24.5 Chemical and material processing 25.7 — 21.7 47.4 Food and pharmaceutical 24.8 — 0.8 25.6 General industrial 82.7 — 44.0 126.7 Medium-duty/heavy-duty truck 122.9 — 3.3 126.2 Oil and gas 12.0 1.5 32.3 45.8 Power generation 21.0 — 3.4 24.4 Semiconductors 7.1 71.0 — 78.1 Other 2.4 — 0.1 2.5 Total third-party sales $ 319.8 $ 76.7 $ 133.2 $ 529.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 December 31, 2020 (in millions) Assets Time deposits $ 4.2 $ 4.2 Foreign currency derivatives 1.5 — Deferred compensation assets 9.8 8.6 $ 15.5 $ 12.8 Liabilities Deferred compensation liabilities $ 10.2 $ 8.9 Foreign currency derivatives 3.4 9.5 $ 13.6 $ 18.4 |
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: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Long-term debt $ 490.2 $ 513.3 $ 491.3 $ 520.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 quarter ended June 30, 2021 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 23.7 $ (36.5) $ (12.8) Other comprehensive income before reclassifications 12.2 — 12.2 Amounts reclassified from accumulated other comprehensive loss — 0.2 0.2 Net current-period other comprehensive income 12.2 0.2 12.4 Less: other comprehensive income attributable to redeemable non-controlling interests 0.6 — 0.6 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 11.6 0.2 11.8 Ending balance $ 35.3 $ (36.3) $ (1.0) Changes in accumulated other comprehensive loss by component (after tax) for the quarter ended June 30, 2020 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ (13.2) $ (45.7) $ (58.9) Other comprehensive income before reclassifications 22.4 — 22.4 Amounts reclassified from accumulated other comprehensive loss — 0.9 0.9 Net current-period other comprehensive income 22.4 0.9 23.3 Less: other comprehensive income attributable to redeemable non-controlling interests 0.6 — 0.6 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 21.8 0.9 22.7 Ending balance $ 8.6 $ (44.8) $ (36.2) Changes in accumulated other comprehensive loss by component (after tax) for the six months ended June 30, 2021 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 31.7 $ (36.6) $ (4.9) Other comprehensive income before reclassifications 3.8 — 3.8 Amounts reclassified from accumulated other comprehensive loss — 0.3 0.3 Net current-period other comprehensive income 3.8 0.3 4.1 Less: other comprehensive income attributable to redeemable non-controlling interests 0.2 — 0.2 Net current-period other comprehensive income attributable to EnPro Industries, Inc. 3.6 0.3 3.9 Ending balance $ 35.3 $ (36.3) $ (1.0) Changes in accumulated other comprehensive loss by component (after tax) for the six months ended June 30, 2020 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 9.8 $ (46.2) $ (36.4) Other comprehensive income before reclassifications 0.3 — 0.3 Amounts reclassified from accumulated other comprehensive loss — 1.4 1.4 Net current-period other comprehensive income 0.3 1.4 1.7 Less: other comprehensive income attributable to redeemable non-controlling interests 1.5 — 1.5 Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (1.2) 1.4 0.2 Ending balance $ 8.6 $ (44.8) $ (36.2) |
Summary of Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications out of accumulated other comprehensive loss for the quarters and six months ended June 30, 2021 and 2020 are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Affected Statement of Quarters Ended Six Months Ended (in millions) 2021 2020 2021 2020 Pension and other postretirement plans adjustments: Actuarial losses $ 0.2 $ 1.3 $ 0.3 $ 1.5 (1) Prior service costs 0.1 — 0.1 — (1) Curtailment — — — 0.3 (1) Total before tax 0.3 1.3 0.4 1.8 Income before income taxes Tax benefit (0.1) (0.4) (0.1) (0.4) Income tax expense Net of tax $ 0.2 $ 0.9 $ 0.3 $ 1.4 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 and income (loss) from discontinued operations, including gain on sale, net of taxes (See Note 9, “Pensions and Postretirement Benefits ” for additional details). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Product Warranty Liability | Changes in the product warranty liability for the six months ended June 30, 2021 and 2020 are as follows: 2021 2020 (in millions) Balance at beginning of year $ 6.7 $ 10.1 Net charges to expense 1.0 1.0 Settlements made (1.5) (2.3) Balance at end of period $ 6.2 $ 8.8 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The results of operations for Fairbanks Morse were as follows: Quarter Ended June 30, 2020 Six Months Ended June 30, 2020 Net sales $ — $ 7.6 Cost of sales — 7.6 Gross profit — — Operating expenses: Selling, general, and administrative expenses — 1.5 Other — (0.1) Total operating expenses — 1.4 Loss from discontinued operations before income taxes — (1.4) Income tax benefit — 0.3 Loss from discontinued operations, net of taxes — (1.1) Gain (loss) from sale of discontinued operations, net of taxes (3.2) 206.5 Income (loss) from discontinued operations, including gain on sale, net of taxes $ (3.2) $ 205.4 |
Overview, Basis of Presentati_3
Overview, Basis of Presentation and Recently Issued Authoritative Accounting Guidance - Narratives (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2021potentiallyResponsibleParty | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle | |||||||
Number of errors identified | potentiallyResponsibleParty | 2 | ||||||
Net income | $ 29.3 | $ (6.5) | $ 47.3 | $ 212.2 | $ 184.8 | ||
Scenario, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle | |||||||
Other loss | $ 2 | ||||||
Net income | $ (1.5) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | Oct. 26, 2020location |
Alluxa, Inc., | |
Business Acquisition | |
Number of locations (locations) | 2 |
Acquisitions - Proforma Results
Acquisitions - Proforma Results (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
Pro forma net sales | $ 254.7 | $ 545 |
Pro forma income (loss) from continuing operations | $ (4.4) | $ 4.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 2.60% | (123.50%) | 11.20% | 57.30% | |
Valuation allowance adjustments | 7.90% | ||||
Conclusion of the IRS examination | 4.70% | ||||
Effective tax rate positions | 4.40% | ||||
Income taxes receivable | $ 24.7 | $ 24.7 | $ 21.8 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Numerator (basic and diluted): | |||||
Income (loss) from continuing operations, net of tax | $ 29.2 | $ (3.2) | $ 47.3 | $ 7 | |
Less: net income (loss) attributable to redeemable non-controlling interests | (0.1) | 0.1 | 0 | 0.2 | |
Income (loss) from continuing operations attributable to EnPro Industries, Inc. | 29.3 | (3.3) | 47.3 | 6.8 | |
Income (loss) from discontinued operations, including gain on sale, net of tax | 0 | (3.2) | 0 | 205.4 | |
Net income (loss) attributable to EnPro Industries, Inc. | $ 29.3 | $ (6.5) | $ 47.3 | $ 212.2 | $ 184.8 |
Denominator: | |||||
Weighted-average shares – basic (in shares) | 20.6 | 20.5 | 20.6 | 20.6 | |
Share-based awards (in shares) | 0.2 | 0 | 0.2 | 0 | |
Weighted-average shares – diluted (in shares) | 20.8 | 20.5 | 20.8 | 20.6 | |
Basic earnings (loss) per share attributable to EnPro Industries, Inc.: | |||||
Continuing operations (in dollars per share) | $ 1.42 | $ (0.16) | $ 2.30 | $ 0.33 | |
Discontinued operations (in dollars per share) | 0 | (0.15) | 0 | 9.99 | |
Net income per share (in dollars per share) | 1.42 | (0.31) | 2.30 | 10.32 | |
Diluted earnings (loss) per share attributable to EnPro Industries, Inc.: | |||||
Continuing operations (in dollars per share) | 1.41 | (0.16) | 2.28 | 0.33 | |
Discontinued operations (in dollars per share) | 0 | (0.15) | 0 | 9.98 | |
Net income per share (in dollars per share) | $ 1.41 | $ (0.31) | $ 2.28 | $ 10.31 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 69.3 | $ 69.4 |
Work in process | 28 | 24.8 |
Raw materials and supplies | 55.9 | 48.7 |
Gross inventories | 153.2 | 142.9 |
Reserve to reduce certain inventories to LIFO basis | (4.1) | (3.8) |
Total inventories | $ 149.1 | $ 139.1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 621.8 |
Foreign currency translation | (0.4) |
Goodwill, ending balance | 621.4 |
Sealing Technologies | |
Goodwill | |
Goodwill, beginning balance | 297.4 |
Foreign currency translation | (1) |
Goodwill, ending balance | 296.4 |
Advanced Surface Technologies | |
Goodwill | |
Goodwill, beginning balance | 307.7 |
Foreign currency translation | 0.6 |
Goodwill, ending balance | 308.3 |
Engineered Materials | |
Goodwill | |
Goodwill, beginning balance | 16.7 |
Foreign currency translation | 0 |
Goodwill, ending balance | $ 16.7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 769 | $ 767.3 |
Accumulated Amortization | 290.2 | 267.1 |
Total | 822.4 | 820.7 |
Trademarks | ||
Indefinite-lived Intangible Assets | ||
Indefinite-Lived: | 53.4 | 53.4 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 507 | 505.5 |
Accumulated Amortization | 192.2 | 177.8 |
Existing technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 179.9 | 179.6 |
Accumulated Amortization | 47.5 | 41.3 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 44.4 | 44.6 |
Accumulated Amortization | 26.7 | 25.7 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 37.7 | 37.6 |
Accumulated Amortization | $ 23.8 | $ 22.3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information | |||||
Amortization expense | $ 11.3 | $ 8.9 | $ 22.6 | $ 17.9 | |
Sealing Technologies | |||||
Segment Reporting Information | |||||
Accumulated impairment losses | 27.8 | 27.8 | $ 27.8 | ||
Engineered Materials | |||||
Segment Reporting Information | |||||
Accumulated impairment losses | $ 154.8 | $ 154.8 | $ 154.8 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 46.5 | $ 46.3 |
Interest | 4.4 | 4.4 |
Environmental | 12.6 | 12.6 |
Income taxes | 10.1 | 9.9 |
Taxes other than income taxes | 11.8 | 9.4 |
Operating lease liabilities | 9.6 | 10.1 |
Other | 32.6 | 35.7 |
Accrued expenses | $ 127.6 | $ 128.4 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Sep. 25, 2019 | Oct. 31, 2018 | Jun. 30, 2021 |
Revolving Credit Facility | |||
Line of Credit Facility | |||
Expansion threshold | $ 225,000,000 | ||
Expansion threshold (percent) | 100.00% | ||
Capacity available for specific purpose | $ 100,000,000 | ||
Credit facility borrowing capacity | 388,600,000 | ||
Letter of credit outstanding | $ 11,400,000 | ||
Revolving Credit Facility | LIBOR | |||
Line of Credit Facility | |||
Basis spread on variable rate (percent) | 1.50% | ||
Revolving Credit Facility | Base Rate | |||
Line of Credit Facility | |||
Basis spread on variable rate (percent) | 0.50% | ||
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility | |||
Debt term | 5 years | ||
Borrowing capacity | $ 400,000,000 | ||
Commitment fee on unused amount | 0.175% | ||
Term Loan | |||
Line of Credit Facility | |||
Periodic payment, years one to three, percentage of original principal amount (percent) | 2.50% | ||
Loan facility for one year (percent) | 5.00% | ||
Loan facility for two years (percent) | 1.25% | ||
Term Loan | Revolving Credit Facility | |||
Line of Credit Facility | |||
Borrowing capacity | $ 150,000,000 | ||
Long-term line of credit | $ 143,400,000 | ||
Senior Notes | |||
Line of Credit Facility | |||
Senior notes | $ 350,000,000 | ||
Stated interest rate (percent) | 5.75% | ||
Senior Notes | Before October 15, 2021 | |||
Line of Credit Facility | |||
Redemption price as a percentage of principal | 100.00% |
Pensions and Postretirement B_3
Pensions and Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 400,000 | $ 1,200,000 | $ 800,000 | $ 2,200,000 |
Interest cost | 2,200,000 | 2,600,000 | 4,500,000 | 5,400,000 |
Expected return on plan assets | (4,600,000) | (4,800,000) | (9,100,000) | (9,500,000) |
Amortization of prior service cost | 100,000 | 0 | 100,000 | 0 |
Amortization of net loss (gain) | 200,000 | 1,300,000 | 300,000 | 2,600,000 |
Curtailment loss | 0 | 0 | 0 | 300,000 |
Net periodic benefit cost (benefit) | (1,700,000) | 300,000 | (3,400,000) | 1,000,000 |
Other Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 100,000 | 100,000 | 100,000 | 100,000 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | 0 | 0 | 0 | (1,100,000) |
Curtailment loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (benefit) | $ 100,000 | $ 100,000 | 100,000 | $ (1,000,000) |
U.S. | ||||
Defined Benefit Plan Disclosure | ||||
Contributions by employer | $ 0 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | $ 29.2 | $ (6.4) | $ 47.3 | $ 212.4 | ||
Other comprehensive loss | $ 12.4 | $ 23.3 | 4.1 | 1.7 | ||
Cash dividends per share, declared (in dollars per share) | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.26 | ||
Total Shareholders' Equity | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 1,080.9 | $ 1,078.5 | $ 1,071.9 | $ 886.9 | 1,078.5 | 886.9 |
Net income (loss) | 29.3 | 18 | (6.5) | 218.7 | ||
Other comprehensive loss | 11.8 | (7.9) | 22.7 | (22.5) | ||
Dividends | (5.6) | (5.7) | (5.4) | (5.3) | ||
Share repurchases | (5.3) | |||||
Incentive plan activity | 1.6 | 1.2 | 1.5 | 1 | ||
Other | 0.1 | (3.2) | (1.5) | |||
Ending balance | 1,118.1 | 1,080.9 | 1,084.2 | 1,071.9 | 1,118.1 | 1,084.2 |
Total Shareholders' Equity | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (0.1) | (0.1) | ||||
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |
Balance (in shares) | 20.6 | 20.5 | 20.5 | 20.6 | 20.5 | 20.6 |
Shares repurchases (in shares) | (0.1) | |||||
Incentive plan activity (in shares) | 0.1 | |||||
Ending balance | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |
Balance (in shares) | 20.6 | 20.6 | 20.5 | 20.5 | 20.6 | 20.5 |
Additional Paid-in Capital | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 290.7 | $ 289.6 | $ 286.3 | $ 292.1 | $ 289.6 | $ 292.1 |
Share repurchases | (5.3) | |||||
Incentive plan activity | 1.6 | 1.2 | 1.5 | 1 | ||
Other | (0.1) | (0.1) | (1.5) | |||
Ending balance | 292.2 | 290.7 | 287.8 | 286.3 | 292.2 | 287.8 |
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 804 | 794.8 | 845.5 | 632.2 | 794.8 | 632.2 |
Net income (loss) | 29.3 | 18 | (6.5) | 218.7 | ||
Dividends | (5.6) | (5.7) | (5.4) | (5.3) | ||
Other | 0.2 | (3.1) | ||||
Ending balance | 827.9 | 804 | 833.6 | 845.5 | 827.9 | 833.6 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (0.1) | (0.1) | ||||
Accumulated Other Comprehensive Loss | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (12.8) | (4.9) | (58.9) | (36.4) | (4.9) | (36.4) |
Other comprehensive loss | 11.8 | (7.9) | 22.7 | (22.5) | ||
Ending balance | (1) | (12.8) | (36.2) | (58.9) | (1) | (36.2) |
Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 0 | 0 | ||||
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (1.2) | (1.2) | (1.2) | (1.2) | (1.2) | (1.2) |
Ending balance | (1.2) | (1.2) | (1.2) | (1.2) | (1.2) | (1.2) |
Redeemable Non-controlling Interests | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 51.2 | 48.4 | 29 | 28 | 48.4 | 28 |
Net income (loss) | (0.1) | 0.1 | 0.1 | 0.1 | ||
Other comprehensive loss | 0.6 | (0.5) | 0.6 | 0.9 | ||
Other | (0.1) | 3.2 | ||||
Ending balance | $ 51.6 | $ 51.2 | $ 29.7 | $ 29 | $ 51.6 | $ 29.7 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 25 Months Ended | ||||||
Jul. 31, 2021 | Feb. 28, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Oct. 31, 2020 | Oct. 31, 2018 | |
Subsequent Event | ||||||||||
Dividends paid | $ 11,300,000 | $ 10,800,000 | ||||||||
Cash dividends per share, declared (in dollars per share) | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.26 | ||||||
Repurchase of common stock | $ 0 | $ 5,300,000 | ||||||||
Employee Stock Options | ||||||||||
Subsequent Event | ||||||||||
Option term | 10 years | |||||||||
Average expected term | 6 years | |||||||||
Fair value (in dollars per share) | $ 27.46 | |||||||||
Common Stock | ||||||||||
Subsequent Event | ||||||||||
Shares repurchases (in shares) | 0.1 | 0.3 | ||||||||
Common Stock | Employee Stock Options | ||||||||||
Subsequent Event | ||||||||||
Options issued (in shares) | 0.1 | |||||||||
Exercise price (in dollars per share) | $ 80 | |||||||||
Share Repurchase Plan | ||||||||||
Subsequent Event | ||||||||||
Stock repurchase program, authorized amount (up to) | $ 50,000,000 | $ 50,000,000 | ||||||||
Repurchase of common stock | $ 5,300,000 | $ 20,300,000 | ||||||||
Subsequent Event | ||||||||||
Subsequent Event | ||||||||||
Cash dividends per share, declared (in dollars per share) | $ 0.27 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Assumptions Used (Details) - Employee Stock Options | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Average expected term | 6 years |
Expected volatility | 40.29% |
Risk-free interest rate | 1.02% |
Expected dividend yield | 1.35% |
Business Segment Information -
Business Segment Information - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 3 |
Performance obligation | $ | $ 284.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Segment Reporting Information | |
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 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information | ||||
Net sales | $ 298.6 | $ 247 | $ 577.9 | $ 529.7 |
Adjusted Segment EBITDA | 71 | 46.4 | 134.9 | 95.6 |
Acquisition and divestiture expenses | 0 | (0.5) | (0.1) | (1.3) |
Non-controlling interest compensation allocation | (1.3) | (0.5) | (2.9) | (1.1) |
Amortization of fair value adjustment to acquisition date inventory | (2.3) | 0 | (4.8) | 0 |
Restructuring and impairment expense | (2.7) | (17.5) | (4.5) | (18.9) |
Depreciation and amortization expense | (18.5) | (17.2) | (37.4) | (34.5) |
Interest expense, net | (3.8) | (3.5) | (7.6) | (7.5) |
Other income | 1.9 | 0.3 | 1.8 | 1.7 |
Income (loss) from continuing operations before income taxes | 30 | (1.4) | 53.3 | 16.5 |
Operating segments | ||||
Segment Reporting Information | ||||
Net sales | 301.7 | 249.2 | 583.3 | 534.6 |
Intersegment sales | ||||
Segment Reporting Information | ||||
Net sales | (3.1) | (2.2) | (5.4) | (4.9) |
Corporate | ||||
Segment Reporting Information | ||||
Corporate expenses | (12.8) | (7.1) | (24.3) | (15.6) |
Segment Reconciling Items | ||||
Segment Reporting Information | ||||
Other income | 0.4 | (1.5) | 0 | (0.2) |
Sealing Technologies | ||||
Segment Reporting Information | ||||
Net sales | 159.7 | 148.5 | 304.2 | 319.8 |
Sealing Technologies | Operating segments | ||||
Segment Reporting Information | ||||
Net sales | 162.5 | 150.6 | 309 | 324.2 |
Adjusted Segment EBITDA | 42.4 | 30.5 | 76.4 | 64.1 |
Advanced Surface Technologies | ||||
Segment Reporting Information | ||||
Net sales | 59.1 | 40 | 113.8 | 76.7 |
Advanced Surface Technologies | Operating segments | ||||
Segment Reporting Information | ||||
Net sales | 59.2 | 40 | 113.9 | 76.7 |
Adjusted Segment EBITDA | 15.6 | 11 | 32.9 | 18.3 |
Engineered Materials | ||||
Segment Reporting Information | ||||
Net sales | 79.8 | 58.5 | 159.9 | 133.2 |
Engineered Materials | Operating segments | ||||
Segment Reporting Information | ||||
Net sales | 80 | 58.6 | 160.4 | 133.7 |
Adjusted Segment EBITDA | $ 13 | $ 4.9 | $ 25.6 | $ 13.2 |
Business Segment Information _3
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information | ||
Assets | $ 2,126.8 | $ 2,083.6 |
Operating segments | Sealing Technologies | ||
Segment Reporting Information | ||
Assets | 744.5 | 741.9 |
Operating segments | Advanced Surface Technologies | ||
Segment Reporting Information | ||
Assets | 761.8 | 768.2 |
Operating segments | Engineered Materials | ||
Segment Reporting Information | ||
Assets | 256.5 | 245.8 |
Corporate | ||
Segment Reporting Information | ||
Assets | $ 364 | $ 327.7 |
Business Segment Information _4
Business Segment Information - Revenue by End Market (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue | ||||
Net sales | $ 298.6 | $ 247 | $ 577.9 | $ 529.7 |
Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 59.1 | 40 | 113.8 | 76.7 |
Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 159.7 | 148.5 | 304.2 | 319.8 |
Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 79.8 | 58.5 | 159.9 | 133.2 |
Aerospace | ||||
Disaggregation of Revenue | ||||
Net sales | 12.8 | 13.7 | 22.3 | 28.5 |
Aerospace | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 3 | 2.1 | 4.5 | 4.2 |
Aerospace | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 8.3 | 10.4 | 15 | 20.8 |
Aerospace | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 1.5 | 1.2 | 2.8 | 3.5 |
Automotive | ||||
Disaggregation of Revenue | ||||
Net sales | 17.1 | 8 | 36.5 | 24.5 |
Automotive | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 0.2 | 0 | 0.5 | 0 |
Automotive | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 0.6 | 0.2 | 1 | 0.4 |
Automotive | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 16.3 | 7.8 | 35 | 24.1 |
Automotive | Engineered Materials | Scenario, Adjustment | ||||
Disaggregation of Revenue | ||||
Net sales | 0.5 | (3.7) | ||
Chemical and material processing | ||||
Disaggregation of Revenue | ||||
Net sales | 30.4 | 24.4 | 58.5 | 47.4 |
Chemical and material processing | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 0 | 0 | 0 | 0 |
Chemical and material processing | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 19 | 12.8 | 36.6 | 25.7 |
Chemical and material processing | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 11.4 | 11.6 | 21.9 | 21.7 |
Food and pharmaceutical | ||||
Disaggregation of Revenue | ||||
Net sales | 16.9 | 13.9 | 33.8 | 25.6 |
Food and pharmaceutical | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 0 | 0 | 0 | 0 |
Food and pharmaceutical | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 16.6 | 13.6 | 33 | 24.8 |
Food and pharmaceutical | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 0.3 | 0.3 | 0.8 | 0.8 |
General industrial | ||||
Disaggregation of Revenue | ||||
Net sales | 81.3 | 56.4 | 160.6 | 126.7 |
General industrial | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 5.8 | 0 | 12.2 | 0 |
General industrial | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 44.9 | 36.7 | 87.6 | 82.7 |
General industrial | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 30.6 | 19.7 | 60.8 | 44 |
General industrial | Engineered Materials | Scenario, Adjustment | ||||
Disaggregation of Revenue | ||||
Net sales | 1.1 | 6 | ||
Medium-duty/heavy-duty truck | ||||
Disaggregation of Revenue | ||||
Net sales | 50.3 | 55.3 | 92 | 126.2 |
Medium-duty/heavy-duty truck | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 0 | 0 | 0 | 0 |
Medium-duty/heavy-duty truck | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 47.6 | 54.1 | 86.5 | 122.9 |
Medium-duty/heavy-duty truck | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 2.7 | 1.2 | 5.5 | 3.3 |
Medium-duty/heavy-duty truck | Engineered Materials | Scenario, Adjustment | ||||
Disaggregation of Revenue | ||||
Net sales | 1.2 | 3.2 | ||
Oil and gas | ||||
Disaggregation of Revenue | ||||
Net sales | 22.9 | 20.4 | 42.7 | 45.8 |
Oil and gas | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 1.7 | 0.2 | 2.4 | 1.5 |
Oil and gas | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 5.4 | 5.2 | 9.6 | 12 |
Oil and gas | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 15.8 | 15 | 30.7 | 32.3 |
Power generation | ||||
Disaggregation of Revenue | ||||
Net sales | 10.5 | 12.7 | 22.5 | 24.4 |
Power generation | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 0 | 0 | 0 | 0 |
Power generation | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 9.6 | 11.1 | 20.7 | 21 |
Power generation | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 0.9 | 1.6 | 1.8 | 3.4 |
Power generation | Engineered Materials | Scenario, Adjustment | ||||
Disaggregation of Revenue | ||||
Net sales | (2.8) | (5.4) | ||
Semiconductors | ||||
Disaggregation of Revenue | ||||
Net sales | 53.3 | 41.6 | 102.9 | 78.1 |
Semiconductors | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 47.9 | 37.7 | 92.8 | 71 |
Semiconductors | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 5.4 | 3.9 | 10.1 | 7.1 |
Semiconductors | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue | ||||
Net sales | 3.1 | 0.6 | 6.1 | 2.5 |
Other | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 0.5 | 0 | 1.4 | 0 |
Other | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Net sales | 2.3 | 0.5 | 4.1 | 2.4 |
Other | Engineered Materials | ||||
Disaggregation of Revenue | ||||
Net sales | $ 0.3 | $ 0.1 | $ 0.6 | $ 0.1 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) € in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | May 31, 2019USD ($) | May 31, 2019EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) |
Derivative | ||||||
Derivative asset | $ 1,500,000 | $ 0 | ||||
Foreign currency derivatives | 3,400,000 | $ 9,500,000 | ||||
Currency Swap | ||||||
Derivative | ||||||
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 | 1,500,000 | |||||
Foreign currency derivatives | $ 3,400,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Time deposits | $ 4.2 | $ 4.2 |
Foreign currency derivatives | 1.5 | 0 |
Deferred compensation assets | 9.8 | 8.6 |
Assets | 15.5 | 12.8 |
Liabilities | ||
Deferred compensation liabilities | 10.2 | 8.9 |
Foreign currency derivatives | 3.4 | 9.5 |
Liabilities | $ 13.6 | $ 18.4 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Carrying Value | $ 490.2 | $ 491.3 |
Fair Value | $ 513.3 | $ 520.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income | ||||||
Beginning balance | $ 1,078.5 | $ 1,078.5 | ||||
Other comprehensive income before reclassifications | $ 12.2 | $ 22.4 | 3.8 | $ 0.3 | ||
Amounts reclassified from accumulated other comprehensive loss | 0.2 | 0.9 | 0.3 | 1.4 | ||
Net current-period other comprehensive income | 12.4 | 23.3 | 4.1 | 1.7 | ||
Less: other comprehensive income attributable to redeemable non-controlling interests | 0.6 | 0.6 | 0.2 | 1.5 | ||
Net current-period other comprehensive income attributable to EnPro Industries, Inc. | 11.8 | 22.7 | 3.9 | 0.2 | ||
Ending balance | 1,118.1 | 1,118.1 | ||||
Total | ||||||
Accumulated Other Comprehensive Income | ||||||
Beginning balance | (12.8) | (4.9) | (58.9) | $ (36.4) | (4.9) | (36.4) |
Net current-period other comprehensive income | 11.8 | (7.9) | 22.7 | (22.5) | ||
Ending balance | (1) | (12.8) | (36.2) | (58.9) | (1) | (36.2) |
Unrealized Translation Adjustments | ||||||
Accumulated Other Comprehensive Income | ||||||
Beginning balance | 23.7 | 31.7 | (13.2) | 9.8 | 31.7 | 9.8 |
Other comprehensive income before reclassifications | 12.2 | 22.4 | 3.8 | 0.3 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | ||
Net current-period other comprehensive income | 12.2 | 22.4 | 3.8 | 0.3 | ||
Less: other comprehensive income attributable to redeemable non-controlling interests | 0.6 | 0.6 | 0.2 | 1.5 | ||
Net current-period other comprehensive income attributable to EnPro Industries, Inc. | 11.6 | 21.8 | 3.6 | (1.2) | ||
Ending balance | 35.3 | 23.7 | 8.6 | (13.2) | 35.3 | 8.6 |
Pension and Other Postretirement Plans | ||||||
Accumulated Other Comprehensive Income | ||||||
Beginning balance | (36.5) | (36.6) | (45.7) | (46.2) | (36.6) | (46.2) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 0.2 | 0.9 | 0.3 | 1.4 | ||
Net current-period other comprehensive income | 0.2 | 0.9 | 0.3 | 1.4 | ||
Less: other comprehensive income attributable to redeemable non-controlling interests | 0 | 0 | 0 | 0 | ||
Net current-period other comprehensive income attributable to EnPro Industries, Inc. | 0.2 | 0.9 | 0.3 | 1.4 | ||
Ending balance | $ (36.3) | $ (36.5) | $ (44.8) | $ (45.7) | $ (36.3) | $ (44.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other income | $ 1.9 | $ 0.3 | $ 1.8 | $ 1.7 |
Income before income taxes | 30 | (1.4) | 53.3 | 16.5 |
Tax benefit | (0.8) | (1.8) | (6) | (9.5) |
Net of tax | 29.2 | (6.4) | 47.3 | 212.4 |
Reclassification out of accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Income before income taxes | 0.3 | 1.3 | 0.4 | 1.8 |
Tax benefit | (0.1) | (0.4) | (0.1) | (0.4) |
Net of tax | 0.2 | 0.9 | 0.3 | 1.4 |
Reclassification out of accumulated other comprehensive income | Actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other income | 0.2 | 1.3 | 0.3 | 1.5 |
Reclassification out of accumulated other comprehensive income | Prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other income | 0.1 | 0 | 0.1 | 0 |
Reclassification out of accumulated other comprehensive income | Curtailment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other income | $ 0 | $ 0 | $ 0 | $ 0.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Apr. 14, 2021USD ($)mi | Jun. 30, 2018site | Oct. 31, 2016USD ($) | Mar. 03, 2016USD ($) | Apr. 11, 2014USD ($)mi | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($)potentiallyResponsiblePartysitemi | Apr. 30, 2015USD ($) |
Site Contingency | ||||||||
Number of sites subject to remediation (sites) | site | 20 | |||||||
Number of sites, cost in excess of 100K (sites) | site | 14 | |||||||
Cost per site minimis threshold | $ 100,000 | |||||||
Number of sites, discontinued operations (sites) | site | 18 | |||||||
Number of sites, active operations (sites) | site | 2 | |||||||
Number of sites, investigation completed (sites) | site | 16 | |||||||
Number of sites investigation in progress (sites) | site | 3 | |||||||
Environmental loss accrual | $ 42,200,000 | $ 39,900,000 | ||||||
Environmental | 12,600,000 | 12,600,000 | ||||||
Estimated insurance recoveries | 25,000,000 | |||||||
Insurance recoveries to date | 22,000,000 | |||||||
Estimated recovery for non-GST Trust claimants | 10,000,000 | |||||||
Threshold of recovery before shared in trust | $ 3,000,000 | |||||||
Lower Passaic River | ||||||||
Site Contingency | ||||||||
Portion of site subject to remediation (miles) | mi | 8 | |||||||
Number of other potentially responsible parties | 120 | 70 | ||||||
Estimate of cost | $ 726,000,000 | |||||||
Estimate low end | $ 165,000,000 | |||||||
Estimated development time | 4 years | |||||||
Lower eight miles of river | ||||||||
Site Contingency | ||||||||
Environmental loss accrual | $ 1,000,000 | |||||||
Portion of site subject to remediation (miles) | mi | 8 | |||||||
Upper nine miles of the river | ||||||||
Site Contingency | ||||||||
Portion of site subject to remediation (miles) | mi | 9 | |||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 441,000,000 | |||||||
Minimum | Lower Passaic River | ||||||||
Site Contingency | ||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 1,380,000,000 | $ 953,000,000 | ||||||
Minimum | Lower eight miles of river | ||||||||
Site Contingency | ||||||||
Site contingency, loss exposure in excess of accrual best estimate | 35,000 | |||||||
Maximum | Lower Passaic River | ||||||||
Site Contingency | ||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 1,730,000,000 | |||||||
Maximum | Lower eight miles of river | ||||||||
Site Contingency | ||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 950,000 | |||||||
Asbestos Issue | ||||||||
Site Contingency | ||||||||
Insurance coverage amount | $ 4,200,000 | |||||||
Estimated insurance recoveries, current year | 900,000 | |||||||
Asbestos Issue | GST, LLC | ||||||||
Site Contingency | ||||||||
Insurance recoveries from insolvent carriers | $ 8,800,000 | |||||||
Affiliated Entity | Crucible Steel Corporation | ||||||||
Site Contingency | ||||||||
Portion of site subject to remediation (miles) | mi | 17 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Changes in Carrying Amount of Product Warranty Liability (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Standard Product Warranty Accrual | ||
Balance at beginning of year | $ 6.7 | $ 10.1 |
Net charges to expense | 1 | 1 |
Settlements made | (1.5) | (2.3) |
Balance at end of year | $ 6.2 | $ 8.8 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | Jan. 21, 2020 | Jun. 30, 2020 | Jun. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Tax expense, discontinued operations | $ 67.8 | ||
Increase (decrease) in tax expense | $ 3.2 | ||
Fairbanks Morse | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Proceeds from sale of investment projects | $ 450 | ||
The pre-tax gain on the disposition | $ 274.3 |
Discontinued Operations - Resul
Discontinued Operations - Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating expenses: | ||||
Loss from discontinued operations, net of taxes | $ 0 | $ 205.4 | ||
Income (loss) from discontinued operations, including gain on sale, net of taxes | $ 0 | $ (3.2) | $ 0 | 205.4 |
Discontinued Operations, Disposed of by Sale | Fairbanks Morse | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Net sales | 0 | 7.6 | ||
Cost of sales | 0 | 7.6 | ||
Gross profit | 0 | 0 | ||
Operating expenses: | ||||
Selling, general, and administrative expenses | 0 | 1.5 | ||
Other | 0 | (0.1) | ||
Total operating expenses | 0 | 1.4 | ||
Loss from discontinued operations before income taxes | 0 | (1.4) | ||
Income tax benefit | 0 | 0.3 | ||
Loss from discontinued operations, net of taxes | 0 | (1.1) | ||
Gain (loss) from sale of discontinued operations, net of taxes | (3.2) | 206.5 | ||
Income (loss) from discontinued operations, including gain on sale, net of taxes | $ (3.2) | $ 205.4 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Subsequent Event | Forecast | |
Subsequent Event | |
Severance costs | $ 0.6 |