Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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, $0.01 par value | |
Trading Symbol(s) | NPO | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,800,175 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001164863 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 328.7 | $ 279.3 |
Cost of sales | 214.1 | 169.9 |
Gross profit | 114.6 | 109.4 |
Operating expenses: | ||
Selling, general and administrative | 85.7 | 80.3 |
Other | 1.5 | 1.9 |
Total operating expenses | 87.2 | 82.2 |
Operating income | 27.4 | 27.2 |
Interest expense | (7.1) | (4) |
Interest income | 0.2 | 0.2 |
Other income (expense) | 0.7 | (0.1) |
Income before income taxes | 21.2 | 23.3 |
Income tax expense | (4.7) | (5.2) |
Net income | 16.5 | 18.1 |
Less: net income attributable to redeemable non-controlling interests | 0.3 | 0.1 |
Net income attributable to EnPro Industries, Inc. | 16.2 | 18 |
Comprehensive income | 3.8 | 9.7 |
Less: comprehensive loss attributable to redeemable non-controlling interests | (0.7) | (0.4) |
Comprehensive income attributable to EnPro Industries, Inc. | $ 4.5 | $ 10.1 |
Basic earnings per share attributable to EnPro Industries, Inc. (in dollars per share) | $ 0.78 | $ 0.87 |
Diluted earnings per share attributable to EnPro Industries, Inc. (in dollars per share) | $ 0.77 | $ 0.87 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 16.5 | $ 18.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 7.9 | 6.9 |
Amortization | 20 | 11.9 |
Deferred income taxes | (0.9) | (1.6) |
Stock-based compensation | 1.5 | 1.7 |
Other non-cash adjustments | 2.2 | 3.6 |
Change in assets and liabilities, net of effects of divestitures of businesses: | ||
Accounts receivable, net | (19.8) | (19.8) |
Inventories | (0.6) | (0.9) |
Accounts payable | 8.9 | 4.3 |
Other current assets and liabilities | (6.8) | (2.3) |
Other non-current assets and liabilities | 1.8 | (1.6) |
Net cash provided by operating activities | 30.7 | 20.3 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (3.8) | (6.2) |
Proceeds from (payments for) sale of businesses, net | 0.4 | |
Proceeds from (payments for) sale of businesses, net | (2.3) | |
Other | (0.1) | 0.2 |
Net cash used in investing activities | (3.5) | (8.3) |
FINANCING ACTIVITIES | ||
Proceeds from debt | 4.5 | 0 |
Repayments of debt | (52.4) | (1) |
Dividends paid | (5.9) | (5.7) |
Other | (6.6) | (1.4) |
Net cash used in financing activities | (60.4) | (8.1) |
Effect of exchange rate changes on cash and cash equivalents | (11.5) | (1.1) |
Net increase (decrease) in cash and cash equivalents | (44.7) | 2.8 |
Cash and cash equivalents at beginning of period | 338.1 | 229.5 |
Cash and cash equivalents at end of period | 293.4 | 232.3 |
Cash paid (received) during the period for: | ||
Interest, net | 0.1 | (2.3) |
Income taxes, net | 1.7 | 4.8 |
Non-cash investing and financing activities: | ||
Non-cash acquisitions of property, plant, and equipment | $ 0.3 | $ 1 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 293.4 | $ 338.1 |
Accounts receivable, net | 196.4 | 177 |
Inventories | 164 | 160 |
Prepaid expenses and other current assets | 38.3 | 37.9 |
Total current assets | 692.1 | 713 |
Property, plant and equipment, net | 231.3 | 236.7 |
Goodwill | 948.2 | 953.2 |
Other intangible assets, net | 887.7 | 913.4 |
Other assets | 153.5 | 153.5 |
Total assets | 2,912.8 | 2,969.8 |
Current liabilities | ||
Current maturities of long-term debt | 13.6 | 12.7 |
Short-term debt | 149.5 | 149.3 |
Accounts payable | 90.9 | 81.9 |
Accrued expenses | 137.7 | 135.2 |
Total current liabilities | 391.7 | 379.1 |
Long-term debt | 915.3 | 963.9 |
Deferred taxes and non-current income taxes payable | 166.3 | 167.3 |
Other liabilities | 128.9 | 142.8 |
Total liabilities | 1,602.2 | 1,653.1 |
Commitments and contingencies | ||
Redeemable non-controlling interests | 49.3 | 50.1 |
Shareholders’ equity | ||
Common stock – $.01 par value; 100,000,000 shares authorized; issued, 20,980,432 shares in 2022 and 20,915,793 shares in 2021 | 0.2 | 0.2 |
Additional paid-in capital | 299.6 | 303.6 |
Retained earnings | 959.8 | 949.4 |
Accumulated other comprehensive income | 2.9 | 14.6 |
Common stock held in treasury, at cost – 180,576 shares in 2022 and 180,848 shares in 2021 | (1.2) | (1.2) |
Total shareholders’ equity | 1,261.3 | 1,266.6 |
Total liabilities and equity | $ 2,912.8 | $ 2,969.8 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 20,980,432 | 20,915,793 |
Treasury stock, shares (in shares) | 180,576 | 180,848 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation 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 diverse 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 industrial technology-related businesses with leading technologies, compelling margins, strong cash flow, and high levels of recurring revenue that serve markets with favorable secular tailwinds. These initiatives have increased our ability to provide solutions to the semiconductor, life sciences, and other technology industries. 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 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, 2021 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2021. 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, 2021 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. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisition On December 17, 2021, our subsidiary, EnPro Holdings, Inc. ("EnPro Holdings"), completed the acquisition of all issued and outstanding membership interests of TCFII NxEdge LLC (“NxEdge”). Based in Boise, Idaho, NxEdge serves customers across the semiconductor supply chain, including top tier global integrated device manufacturers and original equipment manufacturers from six main facilities located in Idaho and California. With vertically integrated capabilities across the semiconductor value chain, including a robust aftermarket business, NxEdge is a leading supplier offering a set of integrated capabilities with unique processes resulting in a broad range of qualifications at top customers. NxEdge is included in our Advanced Surface Technologies segment. The following pro forma condensed consolidated financial results of operations for EnPro are presented as if the acquisition had been completed prior to 2021: Three Months Ended March 31, (in millions) 2022 2021 Pro forma net sales $ 328.7 $ 322.2 Pro forma net income $ 25.2 $ 22.1 These amounts have been calculated after applying our accounting policies and adjusting the results of NxEdge to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to inventory, property, plant and equipment and intangible assets had been applied prior to 2021 as well as additional interest expense to reflect financing required, together with the corresponding tax effects. The supplemental pro forma net income for the three months ended March 31, 2022 was adjusted to exclude $11.6 million of pre-tax costs related to the amortization of the backlog intangible asset, the amortization of the fair-value adjustment to acquisition date inventory and additional transaction-related expenses incurred during the period. 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 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax expense and resulting effective tax rate are based upon the estimated annual effective tax rates applicable for the respective periods adjusted for the effect of items required to be treated as discrete in the interim periods. This estimated annual effective tax rate is affected by the relative proportions of revenue and income before taxes in the jurisdictions in which we operate. Based on the geographical mix of earnings, our annual effective tax rate fluctuates based on the portion of our profits earned in each jurisdiction. The effective tax rates for the three months ended March 31, 2022 and 2021 were 22.3% and 22.2%, respectively. The effective tax rate for the three months ended March 31, 2022 is primarily the result of higher tax rates in most foreign jurisdictions partially offset by excess tax benefits related to share-based payment awards. The effective tax rate for the three months ended March 31, 2021 is primarily the result of higher tax rates in most foreign jurisdictions and an increase in valuation allowances related to certain net operating losses and tax attributes offset by the settlement of a state tax audit. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Three Months Ended March 31, 2022 2021 (in millions, except per share amounts) Numerator (basic and diluted): Net income $ 16.5 $ 18.1 Less: net income attributable to redeemable non-controlling interests 0.3 0.1 Net income attributable to EnPro Industries, Inc. $ 16.2 $ 18.0 Denominator: Weighted-average shares – basic 20.8 20.6 Share-based awards 0.1 0.1 Weighted-average shares – diluted 20.9 20.7 Basic earnings per share attributable to EnPro Industries, Inc. $ 0.78 $ 0.87 Diluted earnings per share attributable to EnPro Industries, Inc. $ 0.77 $ 0.87 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories March 31, December 31, (in millions) Finished products $ 57.8 $ 56.8 Work in process 37.8 41.8 Raw materials and supplies 74.0 66.2 169.6 164.8 Reserve to reduce certain inventories to LIFO basis (5.6) (4.8) Total inventories $ 164.0 $ 160.0 We use the last-in, first-out (“LIFO”) method of valuing certain of our inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs, which are subject to change until the final year-end LIFO inventory valuation. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the net carrying value of goodwill by reportable segment for the three months ended March 31, 2022, are as follows: Sealing Advanced Surface Technologies Engineered Total (in millions) Goodwill as of December 31, 2021 279.4 668.7 5.1 $ 953.2 Acquisition of business — (0.6) — (0.6) Foreign currency translation (0.5) (3.9) — (4.4) Goodwill as of March 31, 2022 $ 278.9 $ 664.2 $ 5.1 $ 948.2 The goodwill balances reflected above are net of accumulated impairment losses of $27.8 million for the Sealing Technologies segment and $108.7 million for the Engineered Materials segment as of March 31, 2022 and December 31, 2021. Identifiable intangible assets are as follows: As of March 31, 2022 As of December 31, 2021 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 530.1 $ 172.2 $ 536.5 $ 166.0 Existing technology 480.6 58.3 480.8 49.5 Trademarks 70.5 26.0 70.9 24.9 Other 41.2 24.8 41.4 22.4 1,122.4 281.3 1,129.6 262.8 Indefinite-Lived: Trademarks 46.6 — 46.6 — Total $ 1,169.0 $ 281.3 $ 1,176.2 $ 262.8 Amortization for the three months ended March 31, 2022 and 2021 were $19.8 million and $11.3 million, respectively. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses March 31, December 31, (in millions) Salaries, wages and employee benefits $ 45.0 $ 60.5 Interest 9.8 4.9 Environmental 17.2 11.3 Income taxes 15.2 10.6 Taxes other than income taxes 11.8 9.4 Operating lease liabilities 9.9 10.0 Other 28.8 28.5 $ 137.7 $ 135.2 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Senior Secured Credit Facilities On December 17, 2021, we entered into a Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”) among the Company and EnPro Holdings, as borrowers, certain foreign subsidiaries of the Company from time to time party thereto, as designated borrowers, the guarantors party thereto, the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. The Amended Credit Agreement amends, restates and replaces the Second Amended and Restated Credit Agreement dated as of June 28, 2018, as amended, among the Company and 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 L/C Issuer. The Amended Credit Agreement provides for credit facilities in the initial aggregate principal amount of $1,007.5 million, consisting of a five-year, senior secured revolving credit facility of $400.0 million (the “Revolving Credit Facility”), a $142.5 million senior secured term loan facility in replacement of our existing senior secured term loan facility, maturing September 25, 2024 (the “Term Loan A-1 Facility”), a five-year, senior secured term loan facility of $315.0 million (the “Term Loan A-2 Facility”) and a 364-day, senior secured term loan facility of $150.0 million (the “364-Day Facility” and together with the Revolving Credit Facility, the Term Loan A-1 Facility and the Term Loan A-2 Facility, the “Facilities”). The Amended Credit Agreement also provides that we may seek incremental term loans and/or additional revolving credit commitments in an amount equal to the greater of $275.0 million and 100% of consolidated EBITDA 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. The Amended Credit Agreement became effective on December 17, 2021. Initially, borrowings under the Facilities (other than the 364-Day Facility) bear interest at an annual rate of LIBOR plus 1.75% or base rate plus 0.75%, although these interest rates are subject to incremental increase or decrease based on a consolidated total net leverage ratio. Borrowings under the 364-Day Facility bear interest at an annual rate of LIBOR plus 1.50% or base rate plus 0.50%. In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility at an annual rate of 0.225%, which rate is also subject to incremental increase or decrease based on a consolidated total net leverage ratio. The Amended Credit Agreement contains customary LIBOR replacement provisions. The Term Loan A-1 Facility will amortize on a quarterly basis in an annual amount equal to 2.50% of the original principal amount of the Term Loan A-1 Facility ($150.0 million) in year one after the closing, 5.00% of such original principal amount in year two and 1.25% of such original principal amount in each of the first three quarters of year three, with the remaining outstanding principal amount payable at maturity. The Term Loan A-2 Facility will amortize on a quarterly basis in an annual amount equal to 2.5% of the original principal amount of the Term Loan A-2 Facility in each of years one through three, 5.0% 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 364-Day Facility will not amortize and will be payable in full 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. The Company and EnPro Holdings are the permitted borrowers under the Facilities. The Company may also from time to time designate any of its wholly owned foreign subsidiaries as a borrower under the Revolving Credit Facility. Each of the Company’s domestic subsidiaries (other than any subsidiaries that may be designated as “unrestricted” by the Company from time to time, and inactive subsidiaries) is required to guarantee the obligations of the borrowers under the Facilities, and each of the Company’s existing domestic subsidiaries (other than inactive subsidiaries) has entered into the Amended Credit Agreement to provide such a guarantee. Borrowings under the Facilities are secured by a first-priority pledge of certain assets. The Amended 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 Amended Credit Agreement. We were in compliance with all covenants of the Amended Credit Agreement as of March 31, 2022. The borrowing availability under our Revolving Credit Facility at March 31, 2022 was $258.6 million after giving consideration to $11.4 million of outstanding letters of credit and $130.0 million of outstanding borrowings. The balance of our outstanding Term Loan A-1 Facility, Term Loan A-2 Facility and 364-Day Facility at March 31, 2022 was $140.6 million, $313.0 million and $150.0 million, respectively. Senior Notes On October 17, 2018, we completed the offering of $350.0 million aggregate principal amount of 5.75% Senior Notes due 2026 (the "Senior Notes") and applied the net proceeds of that offering, together with borrowings under the Revolving Credit Facility, to redeem on October 31, 2018 the full $450.0 million aggregate principal amount of the outstanding 5.875% Senior Notes due 2022 (the "Old Notes"). The Senior Notes were issued to investors at 100% of the principal amount thereof. 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. 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 occasions, redeem all or a part of the Senior Notes at specified redemption prices plus accrued and unpaid interest. Each holder of the Senior Notes may require us to repurchase some or all of the Senior Notes held by such holder for cash upon the occurrence of a defined “change of control” event. Our ability to redeem the Senior Notes prior to maturity is subject to certain conditions, including in certain cases the payment of make-whole amounts. The indenture governing the Senior Notes 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. The indenture further requires us to apply the net cash proceeds of certain asset sales not reinvested in acquisitions, or used to repay or otherwise reduce specified indebtedness within a specified period, in the event of the net proceeds exceeding a specified amount, to offer to repurchase the Senior Notes at a price equal to 100.0% of the principal amount thereof plus accrued and unpaid interest. |
Pensions
Pensions | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pensions | Pensions The components of net periodic benefit cost for our U.S. and foreign defined benefit pension plans for the three months ended March 31, 2022 and 2021, are as follows: 2022 2021 (in millions) Service cost $ 0.4 $ 0.4 Interest cost 2.4 2.3 Expected return on plan assets (3.3) (4.6) Amortization of net loss 0.1 0.1 Net periodic benefit cost (benefit) $ (0.4) $ (1.8) |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Changes in shareholders' equity for the three months ended March 31, 2022 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2021 20.7 $ 0.2 $ 303.6 $ 949.4 $ 14.6 $ (1.2) $ 1,266.6 $ 50.1 Net income — — — 16.2 — — 16.2 0.3 Other comprehensive loss — — — — (11.7) — (11.7) (1.0) Dividends ($0.28 per share) — — — (5.8) — — (5.8) — Incentive plan activity 0.1 — (4.1) — — — (4.1) — Other — — 0.1 — — — 0.1 (0.1) Balance, March 31, 2022 20.8 $ 0.2 $ 299.6 $ 959.8 $ 2.9 $ (1.2) $ 1,261.3 $ 49.3 Changes in shareholders' equity for the three months ended March 31, 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 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 $5.9 million were made during the three months ended March 31, 2022. In April 2022, our board of directors declared a dividend of $0.28 per share, payable on June 15, 2022 to all shareholders of record as of June 1, 2022. 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 2022, we issued stock options to certain key executives for 0.1 million common shares with an exercise price of $106.54 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 2022 had a fair value of $39.07 per share at their grant date. The following assumptions were used to estimate the fair value of the 2022 option awards: Average expected term 6 years Expected volatility 39.88 % Risk-free interest rate 1.89 % Expected dividend yield 1.05 % |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
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, 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 create challenges for product performance. 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, 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 three months ended March 31, 2022 and 2021 were as follows: 2022 2021 (in millions) Sales Sealing Technologies $ 153.6 $ 146.5 Advanced Surface Technologies 116.7 54.7 Engineered Materials 59.0 80.4 329.3 281.6 Intersegment sales (0.6) (2.3) Total sales $ 328.7 $ 279.3 Adjusted Segment EBITDA Sealing Technologies $ 33.5 $ 33.9 Advanced Surface Technologies 34.9 17.3 Engineered Materials 9.2 12.6 $ 77.6 $ 63.8 Reconciliation of Adjusted Segment EBITDA to income before income taxes Adjusted Segment EBITDA $ 77.6 $ 63.8 Acquisition and divestiture expenses (0.2) (0.1) Non-controlling interest compensation allocation 0.9 (1.6) Amortization of fair value adjustment to acquisition date inventory (10.3) (2.4) Restructuring and impairment expense (0.4) (1.8) Depreciation and amortization expense (27.9) (18.8) Corporate expenses (13.4) (11.6) Interest expense, net (6.9) (3.8) Other income (expense), net 1.8 (0.4) Income before income taxes $ 21.2 $ 23.3 Segment assets are as follows: March 31, 2022 December 31, 2021 (in millions) Sealing Technologies $ 705.3 $ 697.5 Advanced Surface Technologies 1,652.9 1,686.5 Engineered Materials 169.8 160.3 Corporate 384.8 425.5 $ 2,912.8 $ 2,969.8 Backlog As of March 31, 2022, the aggregate amount of transaction price of remaining performance obligations, or backlog, on a consolidated basis was $394.1 million. Approximately 90% of these obligations are expected to be satisfied within one year. There is no certainty these orders will result in actual sales at the times or in the amounts ordered. In addition, for most of our business, this total is not particularly predictive of future performance because of our short lead times and some seasonality. Revenue by End Market Due to the diversified nature of our business and the wide array of products that we offer, we sell into a number of end markets. Underlying economic conditions within these markets are a major driver of our segments' sales performance. Below is a summary of our third-party sales by major end market with which we did business for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 8.1 $ 2.0 $ 3.2 $ 13.3 Automotive 0.7 0.2 15.4 16.3 Chemical and material processing 20.3 — — 20.3 Food and pharmaceutical 19.0 — — 19.0 General industrial 42.0 6.5 31.1 79.6 Medium-duty/heavy-duty truck 44.8 — 2.2 47.0 Oil and gas 5.1 0.6 6.1 11.8 Power generation 10.4 0.1 0.7 11.2 Semiconductors 1.3 106.0 — 107.3 Other 1.8 1.1 — 2.9 Total third-party sales $ 153.5 $ 116.5 $ 58.7 $ 328.7 Three Months Ended March 31, 2021 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 6.7 $ 1.5 $ 1.3 $ 9.5 Automotive 0.4 0.3 18.7 19.4 Chemical and material processing 17.6 — 10.5 28.1 Food and pharmaceutical 16.4 — 0.5 16.9 General industrial 42.7 6.4 30.2 79.3 Medium-duty/heavy-duty truck 38.9 — 2.8 41.7 Oil and gas 4.2 0.7 14.9 19.8 Power generation 11.1 — 0.9 12.0 Semiconductors 4.7 44.9 — 49.6 Other 1.8 0.9 0.3 3.0 Total third-party sales $ 144.5 $ 54.7 $ 80.1 $ 279.3 |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, the fair value of the Swap and the Additional Swap equaled $10.7 million and $2.9 million and were recorded within our other current assets and other (non-current) assets, 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 income within our cumulative foreign currency translation adjustment, as the swaps are effective in hedging the designated risk. Cash flows related to the cross-currency swaps are included in operating activities in the Consolidated Statements of Cash Flows, aside from the ultimate settlement at maturity with the counterparties, which will be included in investing activities. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of March 31, 2022 December 31, 2021 (in millions) Assets Foreign currency derivatives 13.6 8.7 Deferred compensation assets 11.0 10.9 $ 24.6 $ 19.6 Liabilities Deferred compensation liabilities $ 11.6 $ 11.4 Our 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 since their value is calculated based upon observable inputs including market USD/Euro exchange rates and market interest rates. The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximated their respective fair values except for the following instruments: March 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (in millions) Long-term debt $ 928.9 $ 942.3 $ 976.6 $ 998.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income by component (after tax) for the three months ended March 31, 2022 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 46.7 $ (32.1) $ 14.6 Other comprehensive loss before reclassifications (12.8) — (12.8) Amounts reclassified from accumulated other comprehensive income — 0.1 0.1 Net current-period other comprehensive income (loss) (12.8) 0.1 (12.7) Less: other comprehensive loss attributable to redeemable non-controlling interests (1.0) — (1.0) Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (11.8) 0.1 (11.7) Ending balance $ 34.9 $ (32.0) $ 2.9 Changes in accumulated other comprehensive loss by component (after tax) for the three months ended March 31, 2021 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 31.7 $ (36.6) $ (4.9) Other comprehensive loss before reclassifications (8.5) — (8.5) Amounts reclassified from accumulated other comprehensive loss — 0.1 0.1 Net current-period other comprehensive income (loss) (8.5) 0.1 (8.4) Less: other comprehensive loss attributable to redeemable non-controlling interests (0.5) — (0.5) Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (8.0) 0.1 (7.9) Ending balance $ 23.7 $ (36.5) $ (12.8) Reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021 are as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Affected Statement of (in millions) 2022 2021 Pension and other postretirement plans adjustments: Actuarial losses $ 0.1 $ 0.1 (1) Total before tax 0.1 0.1 Income before income taxes Tax benefit — — Income tax expense Net of tax $ 0.1 $ 0.1 Net income (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. As these are components of net periodic pension cost other than service cost, the affected Statement of Operations captions are other income (expense) (See Note 9, “Pensions" ” for additional details). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General A description of certain 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 19 sites. At 12 of these sites, the future cost per site for us or our subsidiary is expected to exceed $100,000. Of these 19 sites, 17 are sites where we or one or more of our subsidiaries formerly conducted business operations but no longer do, and 2 are sites where we conduct manufacturing operations. Investigations have been completed for 16 sites and are in progress at 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 March 31, 2022 and December 31, 2021, we had accrued liabilities aggregating $46.0 million and $46.6 million, respectively, for estimated future expenditures relating to environmental contingencies. The current portion of our aggregate environmental liability at March 31, 2022 was $17.2 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. Lower Passaic River Study Area Based on our prior ownership of Crucible Steel Corporation a/k/a Crucible, Inc. (“Crucible”), we may have additional contingent liabilities in one or more significant environmental matters. One such matter, which is included in the 19 sites referred to above, is the Lower Passaic River Study Area of the Diamond Alkali Superfund Site in New Jersey. Crucible operated a steel mill abutting the Passaic River in Harrison, New Jersey from the 1930s until 1974, which was one of many industrial operations on the river dating back to the 1800s. Certain contingent environmental liabilities related to this site were retained by a predecessor of 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 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. 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, in the second quarter of 2021 the EPA began settlement negotiations with the parties that participated in the allocation process, including EnPro. Our reserve for this site at March 31, 2022 was $6.6 million. Further adjustments to our reserve for this site are possible as further information is developed in the course of these discussions. Arizona Uranium Mines EnPro Holdings has received notices from the EPA asserting that it is a potentially responsible party under the CERCLA as the successor to a former operator of eight uranium mines in Arizona. The former operator conducted operations at the mines from 1954 to 1957. In the 1990s, remediation work performed by others at these sites consisted of capping the exposed areas of the mines. We have previously reserved amounts of probable loss associated with these mines, principally including the cost of the investigative work to be conducted at such mines. We entered into an Administrative Settlement Agreement and Order on Consent for Interim Removal Action with the EPA effective November 7, 2017 for the performance of this work. In 2020, EPA initiated group discussions with EnPro Holdings and other potentially responsible parties to resolve various technical issues, including the development of cleanup standards. Based on these discussions and subsequent discussions with other responsible parties with similar sites, we have concluded that further remedial work beyond maintenance of and minor repairs to the existing caps is probable, and we have evaluated the feasibility of various remediation scenarios. Our reserve at March 31, 2022 for this site was $13.4 million, which reflects the low end of the range of our reasonably likely liability with respect to these sites. We are not able at this time to estimate the upper end of a range of liability with respect to these sites. On October 18, 2021, the United States District Court for the District of Arizona approved and entered a Consent Decree pursuant to which the U.S government will reimburse the Company for 35% of necessary costs of response, as defined in 42 U.S.C. section 9601(25), previously or to be in the future incurred by the Company which arise out of or in connection with releases or threatened releases of hazardous substances at or emanating from the mine sites. We expect future contributions of $3.4 million from the U.S. government towards remediation of the site. This amount was included in other assets in the accompanying consolidated balance sheet at March 31, 2022. Except with respect to the Lower Passaic River Study Area, we are unable to estimate a reasonably possible range of loss related to any other contingent environmental liability based on our prior ownership of Crucible. See the section entitled “Crucible Steel Corporation a/k/a Crucible, Inc.” in this footnote for additional information. Crucible Steel Corporation a/k/a Crucible, Inc. Crucible, which was engaged primarily in the manufacture and distribution of high technology specialty metal products, was a wholly owned subsidiary of EnPro Holdings until 1983 when its assets and liabilities were distributed to a new subsidiary, Crucible Materials Corporation. EnPro Holdings sold a majority of the outstanding shares of Crucible Materials Corporation in 1985 and divested its remaining minority interest in 2004. Crucible Materials Corporation filed for Chapter 11 bankruptcy protection in May 2009 and is no longer conducting operations. We have certain ongoing obligations, which are included in other liabilities in our Consolidated Balance Sheets, including workers’ compensation, retiree medical and other retiree benefit matters, in addition to those mentioned previously related to EnPro Holdings' period of ownership of Crucible. Based on EnPro Holdings' prior ownership of Crucible, we may have certain additional contingent liabilities, including liabilities in one or more significant environmental matters included in the matters discussed in “Environmental” above. We are investigating these matters. Except with respect to those matters for which we have an accrued liability as discussed in "Environmental" above, we are unable to estimate a reasonably possible range of loss related to these contingent liabilities. Warranties We provide warranties on many of our products. The specific terms and conditions of these warranties vary depending on the product and the market in which the product is sold. We record a liability based upon estimates of the costs we may incur under our warranties after a review of historical warranty experience and information about specific warranty claims. Adjustments are made to the liability as claims data, historical experience, and trends result in changes to our estimate. Changes in the product warranty liability for the three months ended March 31, 2022 and 2021 are as follows: 2022 2021 (in millions) Balance at beginning of year $ 4.9 $ 6.7 Net charges to expense 0.3 0.5 Settlements made (0.7) (0.4) Balance at end of period $ 4.5 $ 6.8 Asbestos Insurance Receivables Asbestos litigation claims against certain of our subsidiaries, including Garlock Sealing Technologies, LLC ("GST"), were resolved pursuant to the joint plan of reorganization (the "Joint Plan") filed in proceedings under Chapter 11 of the United States Bankruptcy Code that 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. We believe that EnPro Holdings will bill, and could collect over time, as much as $10 million of insurance proceeds 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. As of March 31, 2022, approximately $1.0 million of available products hazard limits or insurance receivables (included in Other Assets on our Consolidated Balance Sheet) 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 received payments of $2.2 million from an insurer in the GST Coverage Block in the first quarter of 2022. 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. |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 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, 2021 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2021. 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, 2021 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. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisition, Pro Forma Information | The following pro forma condensed consolidated financial results of operations for EnPro are presented as if the acquisition had been completed prior to 2021: Three Months Ended March 31, (in millions) 2022 2021 Pro forma net sales $ 328.7 $ 322.2 Pro forma net income $ 25.2 $ 22.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | Three Months Ended March 31, 2022 2021 (in millions, except per share amounts) Numerator (basic and diluted): Net income $ 16.5 $ 18.1 Less: net income attributable to redeemable non-controlling interests 0.3 0.1 Net income attributable to EnPro Industries, Inc. $ 16.2 $ 18.0 Denominator: Weighted-average shares – basic 20.8 20.6 Share-based awards 0.1 0.1 Weighted-average shares – diluted 20.9 20.7 Basic earnings per share attributable to EnPro Industries, Inc. $ 0.78 $ 0.87 Diluted earnings per share attributable to EnPro Industries, Inc. $ 0.77 $ 0.87 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | March 31, December 31, (in millions) Finished products $ 57.8 $ 56.8 Work in process 37.8 41.8 Raw materials and supplies 74.0 66.2 169.6 164.8 Reserve to reduce certain inventories to LIFO basis (5.6) (4.8) Total inventories $ 164.0 $ 160.0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment | The changes in the net carrying value of goodwill by reportable segment for the three months ended March 31, 2022, are as follows: Sealing Advanced Surface Technologies Engineered Total (in millions) Goodwill as of December 31, 2021 279.4 668.7 5.1 $ 953.2 Acquisition of business — (0.6) — (0.6) Foreign currency translation (0.5) (3.9) — (4.4) Goodwill as of March 31, 2022 $ 278.9 $ 664.2 $ 5.1 $ 948.2 |
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets are as follows: As of March 31, 2022 As of December 31, 2021 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 530.1 $ 172.2 $ 536.5 $ 166.0 Existing technology 480.6 58.3 480.8 49.5 Trademarks 70.5 26.0 70.9 24.9 Other 41.2 24.8 41.4 22.4 1,122.4 281.3 1,129.6 262.8 Indefinite-Lived: Trademarks 46.6 — 46.6 — Total $ 1,169.0 $ 281.3 $ 1,176.2 $ 262.8 |
Schedule of Indefinite-Lived Intangible Assets | Identifiable intangible assets are as follows: As of March 31, 2022 As of December 31, 2021 Gross Accumulated Gross Accumulated (in millions) Amortized: Customer relationships $ 530.1 $ 172.2 $ 536.5 $ 166.0 Existing technology 480.6 58.3 480.8 49.5 Trademarks 70.5 26.0 70.9 24.9 Other 41.2 24.8 41.4 22.4 1,122.4 281.3 1,129.6 262.8 Indefinite-Lived: Trademarks 46.6 — 46.6 — Total $ 1,169.0 $ 281.3 $ 1,176.2 $ 262.8 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | March 31, December 31, (in millions) Salaries, wages and employee benefits $ 45.0 $ 60.5 Interest 9.8 4.9 Environmental 17.2 11.3 Income taxes 15.2 10.6 Taxes other than income taxes 11.8 9.4 Operating lease liabilities 9.9 10.0 Other 28.8 28.5 $ 137.7 $ 135.2 |
Pensions (Tables)
Pensions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 plans for the three months ended March 31, 2022 and 2021, are as follows: 2022 2021 (in millions) Service cost $ 0.4 $ 0.4 Interest cost 2.4 2.3 Expected return on plan assets (3.3) (4.6) Amortization of net loss 0.1 0.1 Net periodic benefit cost (benefit) $ (0.4) $ (1.8) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in shareholders' equity for the three months ended March 31, 2022 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2021 20.7 $ 0.2 $ 303.6 $ 949.4 $ 14.6 $ (1.2) $ 1,266.6 $ 50.1 Net income — — — 16.2 — — 16.2 0.3 Other comprehensive loss — — — — (11.7) — (11.7) (1.0) Dividends ($0.28 per share) — — — (5.8) — — (5.8) — Incentive plan activity 0.1 — (4.1) — — — (4.1) — Other — — 0.1 — — — 0.1 (0.1) Balance, March 31, 2022 20.8 $ 0.2 $ 299.6 $ 959.8 $ 2.9 $ (1.2) $ 1,261.3 $ 49.3 Changes in shareholders' equity for the three months ended March 31, 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 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The option awards issued in 2022 had a fair value of $39.07 per share at their grant date. The following assumptions were used to estimate the fair value of the 2022 option awards: Average expected term 6 years Expected volatility 39.88 % Risk-free interest rate 1.89 % Expected dividend yield 1.05 % |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Results and Other Financial Data | Segment operating results and other financial data for the three months ended March 31, 2022 and 2021 were as follows: 2022 2021 (in millions) Sales Sealing Technologies $ 153.6 $ 146.5 Advanced Surface Technologies 116.7 54.7 Engineered Materials 59.0 80.4 329.3 281.6 Intersegment sales (0.6) (2.3) Total sales $ 328.7 $ 279.3 Adjusted Segment EBITDA Sealing Technologies $ 33.5 $ 33.9 Advanced Surface Technologies 34.9 17.3 Engineered Materials 9.2 12.6 $ 77.6 $ 63.8 Reconciliation of Adjusted Segment EBITDA to income before income taxes Adjusted Segment EBITDA $ 77.6 $ 63.8 Acquisition and divestiture expenses (0.2) (0.1) Non-controlling interest compensation allocation 0.9 (1.6) Amortization of fair value adjustment to acquisition date inventory (10.3) (2.4) Restructuring and impairment expense (0.4) (1.8) Depreciation and amortization expense (27.9) (18.8) Corporate expenses (13.4) (11.6) Interest expense, net (6.9) (3.8) Other income (expense), net 1.8 (0.4) Income before income taxes $ 21.2 $ 23.3 |
Schedule of Total Assets Segment | Segment assets are as follows: March 31, 2022 December 31, 2021 (in millions) Sealing Technologies $ 705.3 $ 697.5 Advanced Surface Technologies 1,652.9 1,686.5 Engineered Materials 169.8 160.3 Corporate 384.8 425.5 $ 2,912.8 $ 2,969.8 |
Schedule of Disaggregation of Revenue | Below is a summary of our third-party sales by major end market with which we did business for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 8.1 $ 2.0 $ 3.2 $ 13.3 Automotive 0.7 0.2 15.4 16.3 Chemical and material processing 20.3 — — 20.3 Food and pharmaceutical 19.0 — — 19.0 General industrial 42.0 6.5 31.1 79.6 Medium-duty/heavy-duty truck 44.8 — 2.2 47.0 Oil and gas 5.1 0.6 6.1 11.8 Power generation 10.4 0.1 0.7 11.2 Semiconductors 1.3 106.0 — 107.3 Other 1.8 1.1 — 2.9 Total third-party sales $ 153.5 $ 116.5 $ 58.7 $ 328.7 Three Months Ended March 31, 2021 (in millions) Sealing Technologies Advanced Surface Technologies Engineered Materials Total Aerospace $ 6.7 $ 1.5 $ 1.3 $ 9.5 Automotive 0.4 0.3 18.7 19.4 Chemical and material processing 17.6 — 10.5 28.1 Food and pharmaceutical 16.4 — 0.5 16.9 General industrial 42.7 6.4 30.2 79.3 Medium-duty/heavy-duty truck 38.9 — 2.8 41.7 Oil and gas 4.2 0.7 14.9 19.8 Power generation 11.1 — 0.9 12.0 Semiconductors 4.7 44.9 — 49.6 Other 1.8 0.9 0.3 3.0 Total third-party sales $ 144.5 $ 54.7 $ 80.1 $ 279.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of March 31, 2022 December 31, 2021 (in millions) Assets Foreign currency derivatives 13.6 8.7 Deferred compensation assets 11.0 10.9 $ 24.6 $ 19.6 Liabilities Deferred compensation liabilities $ 11.6 $ 11.4 |
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: March 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (in millions) Long-term debt $ 928.9 $ 942.3 $ 976.6 $ 998.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | Changes in accumulated other comprehensive income by component (after tax) for the three months ended March 31, 2022 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 46.7 $ (32.1) $ 14.6 Other comprehensive loss before reclassifications (12.8) — (12.8) Amounts reclassified from accumulated other comprehensive income — 0.1 0.1 Net current-period other comprehensive income (loss) (12.8) 0.1 (12.7) Less: other comprehensive loss attributable to redeemable non-controlling interests (1.0) — (1.0) Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (11.8) 0.1 (11.7) Ending balance $ 34.9 $ (32.0) $ 2.9 Changes in accumulated other comprehensive loss by component (after tax) for the three months ended March 31, 2021 are as follows: (in millions) Unrealized Pension and Total Beginning balance $ 31.7 $ (36.6) $ (4.9) Other comprehensive loss before reclassifications (8.5) — (8.5) Amounts reclassified from accumulated other comprehensive loss — 0.1 0.1 Net current-period other comprehensive income (loss) (8.5) 0.1 (8.4) Less: other comprehensive loss attributable to redeemable non-controlling interests (0.5) — (0.5) Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. (8.0) 0.1 (7.9) Ending balance $ 23.7 $ (36.5) $ (12.8) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021 are as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Affected Statement of (in millions) 2022 2021 Pension and other postretirement plans adjustments: Actuarial losses $ 0.1 $ 0.1 (1) Total before tax 0.1 0.1 Income before income taxes Tax benefit — — Income tax expense Net of tax $ 0.1 $ 0.1 Net income (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. As these are components of net periodic pension cost other than service cost, the affected Statement of Operations captions are other income (expense) (See Note 9, “Pensions" ” for additional details). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Product Warranty Liability | Changes in the product warranty liability for the three months ended March 31, 2022 and 2021 are as follows: 2022 2021 (in millions) Balance at beginning of year $ 4.9 $ 6.7 Net charges to expense 0.3 0.5 Settlements made (0.7) (0.4) Balance at end of period $ 4.5 $ 6.8 |
Acquisition - Proforma Results
Acquisition - Proforma Results (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition, Pro Forma Information | ||
Pro forma net sales | $ 328.7 | $ 322.2 |
Pro forma net income | $ 25.2 | $ 22.1 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Scenario, Adjustment | |
Business Combination, Separately Recognized Transactions | |
Acquisition cost adjustments | $ (11.6) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 22.30% | 22.20% |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator (basic and diluted): | ||
Net income | $ 16.5 | $ 18.1 |
Less: net income attributable to redeemable non-controlling interests | 0.3 | 0.1 |
Net income attributable to EnPro Industries, Inc. | $ 16.2 | $ 18 |
Denominator: | ||
Weighted-average shares – basic (in shares) | 20.8 | 20.6 |
Share-based awards (in shares) | 0.1 | 0.1 |
Weighted-average shares – diluted (in shares) | 20.9 | 20.7 |
Basic earnings per share attributable to EnPro Industries, Inc. (in dollars per share) | $ 0.78 | $ 0.87 |
Diluted earnings per share attributable to EnPro Industries, Inc. (in dollars per share) | $ 0.77 | $ 0.87 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 57.8 | $ 56.8 |
Work in process | 37.8 | 41.8 |
Raw materials and supplies | 74 | 66.2 |
Gross inventories | 169.6 | 164.8 |
Reserve to reduce certain inventories to LIFO basis | (5.6) | (4.8) |
Total inventories | $ 164 | $ 160 |
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 | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 953.2 |
Acquisition of business | (0.6) |
Foreign currency translation | (4.4) |
Goodwill, ending balance | 948.2 |
Sealing Technologies | |
Goodwill | |
Goodwill, beginning balance | 279.4 |
Acquisition of business | 0 |
Foreign currency translation | (0.5) |
Goodwill, ending balance | 278.9 |
Advanced Surface Technologies | |
Goodwill | |
Goodwill, beginning balance | 668.7 |
Acquisition of business | (0.6) |
Foreign currency translation | (3.9) |
Goodwill, ending balance | 664.2 |
Engineered Materials | |
Goodwill | |
Goodwill, beginning balance | 5.1 |
Acquisition of business | 0 |
Foreign currency translation | 0 |
Goodwill, ending balance | $ 5.1 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information | |||
Amortization expense | $ 19.8 | $ 11.3 | |
Sealing Technologies | |||
Segment Reporting Information | |||
Accumulated impairment losses | 27.8 | $ 27.8 | |
Engineered Materials | |||
Segment Reporting Information | |||
Accumulated impairment losses | $ 108.7 | $ 108.7 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 1,122.4 | $ 1,129.6 |
Accumulated Amortization | 281.3 | 262.8 |
Total | 1,169 | 1,176.2 |
Trademarks | ||
Indefinite-lived Intangible Assets | ||
Indefinite-Lived: | 46.6 | 46.6 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 530.1 | 536.5 |
Accumulated Amortization | 172.2 | 166 |
Existing technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 480.6 | 480.8 |
Accumulated Amortization | 58.3 | 49.5 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 70.5 | 70.9 |
Accumulated Amortization | 26 | 24.9 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 41.2 | 41.4 |
Accumulated Amortization | $ 24.8 | $ 22.4 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 45 | $ 60.5 |
Interest | 9.8 | 4.9 |
Environmental | 17.2 | 11.3 |
Income taxes | 15.2 | 10.6 |
Taxes other than income taxes | 11.8 | 9.4 |
Operating lease liabilities | 9.9 | 10 |
Other | 28.8 | 28.5 |
Accrued expenses | $ 137.7 | $ 135.2 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Dec. 17, 2021 | Oct. 17, 2018 | Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2018 |
Line of Credit Facility | |||||
Long-term debt | $ 928,900,000 | $ 976,600,000 | |||
Short-term debt | 149,500,000 | $ 149,300,000 | |||
364-Day Facility | Line of Credit | |||||
Line of Credit Facility | |||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | ||||
Short-term debt | $ 150,000,000 | ||||
364-Day Facility | Line of Credit | LIBOR | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 1.50% | ||||
364-Day Facility | Line of Credit | Base Rate | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 0.50% | ||||
Line of Credit | |||||
Line of Credit Facility | |||||
Senior notes | 1,007,500,000 | ||||
Maximum borrowing capacity expansion threshold | $ 275,000,000 | ||||
Maximum borrowing capacity expansion threshold, percent (as a percent) | 100.00% | ||||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility | |||||
Credit facility maximum availability (in years) | 5 years | ||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | ||||
Line of credit facility, unused capacity, commitment fee (as a percent) | 0.225% | ||||
Credit facility borrowing capacity | $ 258,600,000 | ||||
Letter of credit outstanding | 11,400,000 | ||||
Long-term debt | $ 130,000,000 | ||||
Line of Credit | Revolving Credit Facility | LIBOR | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 1.75% | ||||
Line of Credit | Revolving Credit Facility | Base Rate | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 0.75% | ||||
Line of Credit | Term Loan | LIBOR | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 1.75% | ||||
Line of Credit | Term Loan | Base Rate | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 0.75% | ||||
Line of Credit | Term Loan A-1 | |||||
Line of Credit Facility | |||||
Senior notes | $ 150,000,000 | ||||
Line of credit facility, maximum borrowing capacity | $ 142,500,000 | ||||
Debt instrument, periodic payment, years one to three, percentage of principal (as a percent) | 2.50% | ||||
Debt instrument, periodic payment, years two, percentage of principal (as a percent) | 5.00% | ||||
Debt instrument, periodic payment, years three, percentage of principal (as a percent) | 1.25% | ||||
Long-term debt | $ 140,600,000 | ||||
Line of Credit | Term Loan A-2 | |||||
Line of Credit Facility | |||||
Credit facility maximum availability (in years) | 5 years | ||||
Line of credit facility, maximum borrowing capacity | $ 315,000,000 | ||||
Debt instrument, periodic payment, years one to three, percentage of principal (as a percent) | 2.50% | ||||
Debt instrument, periodic payment, years two, percentage of principal (as a percent) | 5.00% | ||||
Debt instrument, periodic payment, years three, percentage of principal (as a percent) | 1.25% | ||||
Long-term debt | $ 313,000,000 | ||||
Senior Notes | |||||
Line of Credit Facility | |||||
Senior notes | $ 350,000,000 | ||||
Interest rate (as a percent) | 5.75% | 5.875% | |||
Aggregate principal amount redeemed | $ 450,000,000 | ||||
Senior Notes | Before October 15, 2021 | |||||
Line of Credit Facility | |||||
Redemption price (as a percent) | 100.00% |
Pensions - Schedule of Net Peri
Pensions - Schedule of Net Periodic Benefit Cost (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Service cost | $ 400,000 | $ 400,000 |
Interest cost | 2,400,000 | 2,300,000 |
Expected return on plan assets | (3,300,000) | (4,600,000) |
Amortization of net loss | 100,000 | 100,000 |
Net periodic benefit cost (benefit) | (400,000) | $ (1,800,000) |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity | ||
Net income (loss) | $ 16.5 | $ 18.1 |
Other comprehensive loss | $ (12.7) | $ (8.4) |
Cash dividends per share, declared (in dollars per share) | $ 0.28 | $ 0.27 |
Total Shareholders' Equity | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | $ 1,266.6 | $ 1,078.5 |
Net income (loss) | 16.2 | 18 |
Other comprehensive loss | (11.7) | (7.9) |
Dividends | (5.8) | (5.7) |
Incentive plan activity | (4.1) | 1.2 |
Other | 0.1 | (3.2) |
Ending balance | 1,261.3 | 1,080.9 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | $ 0.2 | $ 0.2 |
Balance (in shares) | 20.7 | 20.5 |
Incentive plan activity (in shares) | 0.1 | 0.1 |
Ending balance | $ 0.2 | $ 0.2 |
Balance (in shares) | 20.8 | 20.6 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | $ 303.6 | $ 289.6 |
Incentive plan activity | (4.1) | 1.2 |
Other | 0.1 | (0.1) |
Ending balance | 299.6 | 290.7 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | 949.4 | 794.8 |
Net income (loss) | 16.2 | 18 |
Dividends | (5.8) | (5.7) |
Other | (3.1) | |
Ending balance | 959.8 | 804 |
Accumulated Other Comprehensive Income | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | 14.6 | (4.9) |
Other comprehensive loss | (11.7) | (7.9) |
Ending balance | 2.9 | (12.8) |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | (1.2) | (1.2) |
Ending balance | (1.2) | (1.2) |
Redeemable Non-controlling Interests | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance | 50.1 | 48.4 |
Net income (loss) | 0.3 | 0.1 |
Other comprehensive loss | (1) | (0.5) |
Other | (0.1) | 3.2 |
Ending balance | $ 49.3 | $ 51.2 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2022 | Feb. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Oct. 31, 2020 | |
Subsequent Event | |||||
Dividends paid | $ 5,900,000 | $ 5,700,000 | |||
Cash dividends per share, declared (in dollars per share) | $ 0.28 | $ 0.27 | |||
Stock repurchase program, authorized amount (up to) | $ 50,000,000 | ||||
Key Executives | |||||
Subsequent Event | |||||
Options issued (in shares) | 0.1 | ||||
Exercise price (in dollars per share) | $ 106.54 | ||||
Option term (in years) | 10 years | ||||
Employee Stock Options | |||||
Subsequent Event | |||||
Average expected term (in years) | 6 years | ||||
Fair value (in dollars per share) | $ 39.07 | ||||
Subsequent Event | |||||
Subsequent Event | |||||
Cash dividends per share, declared (in dollars per share) | $ 0.28 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Assumptions Used (Details) - Employee Stock Options | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Average expected term | 6 years |
Expected volatility | 39.88% |
Risk-free interest rate | 1.89% |
Expected dividend yield | 1.05% |
Business Segment Information -
Business Segment Information - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 3 |
Performance obligation | $ | $ 394.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Segment Reporting Information | |
Remaining performance obligation, percentage (as a percent) | 90.00% |
Remaining performance obligation, expected timing (in years) | 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information | ||
Net sales | $ 328.7 | $ 279.3 |
Adjusted Segment EBITDA | 77.6 | 63.8 |
Acquisition and divestiture expenses | (0.2) | (0.1) |
Non-controlling interest compensation allocation | 0.9 | (1.6) |
Amortization of fair value adjustment to acquisition date inventory | (10.3) | (2.4) |
Restructuring and impairment expense | (0.4) | (1.8) |
Depreciation and amortization expense | (27.9) | (18.8) |
Interest expense, net | (6.9) | (3.8) |
Other income (expense), net | 0.7 | (0.1) |
Income before income taxes | 21.2 | 23.3 |
Operating segments | ||
Segment Reporting Information | ||
Net sales | 329.3 | 281.6 |
Intersegment sales | ||
Segment Reporting Information | ||
Net sales | (0.6) | (2.3) |
Corporate | ||
Segment Reporting Information | ||
Corporate expenses | (13.4) | (11.6) |
Segment Reconciling Items | ||
Segment Reporting Information | ||
Other income (expense), net | 1.8 | (0.4) |
Sealing Technologies | ||
Segment Reporting Information | ||
Net sales | 153.5 | 144.5 |
Sealing Technologies | Operating segments | ||
Segment Reporting Information | ||
Net sales | 153.6 | 146.5 |
Adjusted Segment EBITDA | 33.5 | 33.9 |
Advanced Surface Technologies | ||
Segment Reporting Information | ||
Net sales | 116.5 | 54.7 |
Advanced Surface Technologies | Operating segments | ||
Segment Reporting Information | ||
Net sales | 116.7 | 54.7 |
Adjusted Segment EBITDA | 34.9 | 17.3 |
Engineered Materials | ||
Segment Reporting Information | ||
Net sales | 58.7 | 80.1 |
Engineered Materials | Operating segments | ||
Segment Reporting Information | ||
Net sales | 59 | 80.4 |
Adjusted Segment EBITDA | $ 9.2 | $ 12.6 |
Business Segment Information _3
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information | ||
Assets | $ 2,912.8 | $ 2,969.8 |
Operating segments | Sealing Technologies | ||
Segment Reporting Information | ||
Assets | 705.3 | 697.5 |
Operating segments | Advanced Surface Technologies | ||
Segment Reporting Information | ||
Assets | 1,652.9 | 1,686.5 |
Operating segments | Engineered Materials | ||
Segment Reporting Information | ||
Assets | 169.8 | 160.3 |
Corporate | ||
Segment Reporting Information | ||
Assets | $ 384.8 | $ 425.5 |
Business Segment Information _4
Business Segment Information - Revenue by End Market (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Net sales | $ 328.7 | $ 279.3 |
Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 153.5 | 144.5 |
Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 116.5 | 54.7 |
Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 58.7 | 80.1 |
Aerospace | ||
Disaggregation of Revenue | ||
Net sales | 13.3 | 9.5 |
Aerospace | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 8.1 | 6.7 |
Aerospace | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 2 | 1.5 |
Aerospace | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 3.2 | 1.3 |
Automotive | ||
Disaggregation of Revenue | ||
Net sales | 16.3 | 19.4 |
Automotive | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 0.7 | 0.4 |
Automotive | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 0.2 | 0.3 |
Automotive | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 15.4 | 18.7 |
Chemical and material processing | ||
Disaggregation of Revenue | ||
Net sales | 20.3 | 28.1 |
Chemical and material processing | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 20.3 | 17.6 |
Chemical and material processing | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Chemical and material processing | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 0 | 10.5 |
Food and pharmaceutical | ||
Disaggregation of Revenue | ||
Net sales | 19 | 16.9 |
Food and pharmaceutical | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 19 | 16.4 |
Food and pharmaceutical | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Food and pharmaceutical | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0.5 |
General industrial | ||
Disaggregation of Revenue | ||
Net sales | 79.6 | 79.3 |
General industrial | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 42 | 42.7 |
General industrial | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 6.5 | 6.4 |
General industrial | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 31.1 | 30.2 |
Medium-duty/heavy-duty truck | ||
Disaggregation of Revenue | ||
Net sales | 47 | 41.7 |
Medium-duty/heavy-duty truck | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 44.8 | 38.9 |
Medium-duty/heavy-duty truck | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Medium-duty/heavy-duty truck | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 2.2 | 2.8 |
Oil and gas | ||
Disaggregation of Revenue | ||
Net sales | 11.8 | 19.8 |
Oil and gas | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 5.1 | 4.2 |
Oil and gas | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 0.6 | 0.7 |
Oil and gas | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 6.1 | 14.9 |
Power generation | ||
Disaggregation of Revenue | ||
Net sales | 11.2 | 12 |
Power generation | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 10.4 | 11.1 |
Power generation | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 0.1 | 0 |
Power generation | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 0.7 | 0.9 |
Semiconductors | ||
Disaggregation of Revenue | ||
Net sales | 107.3 | 49.6 |
Semiconductors | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 1.3 | 4.7 |
Semiconductors | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 106 | 44.9 |
Semiconductors | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Other | ||
Disaggregation of Revenue | ||
Net sales | 2.9 | 3 |
Other | Sealing Technologies | ||
Disaggregation of Revenue | ||
Net sales | 1.8 | 1.8 |
Other | Advanced Surface Technologies | ||
Disaggregation of Revenue | ||
Net sales | 1.1 | 0.9 |
Other | Engineered Materials | ||
Disaggregation of Revenue | ||
Net sales | $ 0 | $ 0.3 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) € in Millions | Mar. 31, 2022USD ($) | May 31, 2019USD ($) | May 31, 2019EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) |
Original Swap | |||||
Derivative | |||||
Derivative liability, notional amount | $ 200,000,000 | ||||
Amount of hedged item | € | € 172.8 | ||||
Weighted average interest rate (as a percent) | 2.80% | 2.80% | |||
Derivative asset, current | $ 10,700,000 | ||||
Additional Swap | |||||
Derivative | |||||
Derivative liability, notional amount | $ 100,000,000 | ||||
Amount of hedged item | € | € 89.6 | ||||
Weighted average interest rate (as a percent) | 3.50% | 3.50% | |||
Derivative asset, noncurrent | $ 2,900,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Foreign currency derivatives | $ 13.6 | $ 8.7 |
Deferred compensation assets | 11 | 10.9 |
Assets | 24.6 | 19.6 |
Liabilities | ||
Deferred compensation liabilities | $ 11.6 | $ 11.4 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Carrying Value | $ 928.9 | $ 976.6 |
Fair Value | $ 942.3 | $ 998.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income | ||
Beginning balance | $ 1,266.6 | |
Other comprehensive loss before reclassifications | (12.8) | $ (8.5) |
Amounts reclassified from accumulated other comprehensive income | 0.1 | 0.1 |
Net current-period other comprehensive income (loss) | (12.7) | (8.4) |
Less: other comprehensive loss attributable to redeemable non-controlling interests | (1) | (0.5) |
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | (11.7) | (7.9) |
Ending balance | 1,261.3 | |
Total | ||
Accumulated Other Comprehensive Income | ||
Beginning balance | 14.6 | (4.9) |
Net current-period other comprehensive income (loss) | (11.7) | (7.9) |
Ending balance | 2.9 | (12.8) |
Unrealized Translation Adjustments | ||
Accumulated Other Comprehensive Income | ||
Beginning balance | 46.7 | 31.7 |
Other comprehensive loss before reclassifications | (12.8) | (8.5) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current-period other comprehensive income (loss) | (12.8) | (8.5) |
Less: other comprehensive loss attributable to redeemable non-controlling interests | (1) | (0.5) |
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | (11.8) | (8) |
Ending balance | 34.9 | 23.7 |
Pension and Other Postretirement Plans | ||
Accumulated Other Comprehensive Income | ||
Beginning balance | (32.1) | (36.6) |
Other comprehensive loss before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0.1 | 0.1 |
Net current-period other comprehensive income (loss) | 0.1 | 0.1 |
Less: other comprehensive loss attributable to redeemable non-controlling interests | 0 | 0 |
Net current-period other comprehensive income (loss) attributable to EnPro Industries, Inc. | 0.1 | 0.1 |
Ending balance | $ (32) | $ (36.5) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Other income (expense) | $ 0.7 | $ (0.1) |
Tax benefit | (4.7) | (5.2) |
Net income | 16.5 | 18.1 |
Reclassification out of accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Income before income taxes | 0.1 | 0.1 |
Tax benefit | 0 | 0 |
Net income | 0.1 | 0.1 |
Reclassification out of accumulated other comprehensive income | Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Other income (expense) | $ 0.1 | $ 0.1 |
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 | Mar. 31, 2022USD ($)siteminepotentiallyResponsiblePartymi | Dec. 31, 2021USD ($) | Oct. 18, 2021 | Apr. 30, 2015USD ($) |
Site Contingency | |||||||||
Number of sites subject to remediation (sites) | site | 19 | ||||||||
Number of sites, cost in excess of 100K (sites) | site | 12 | ||||||||
Cost per site minimis threshold | $ 100,000 | ||||||||
Number of sites, discontinued operations (sites) | site | 17 | ||||||||
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 | $ 46,000,000 | $ 46,600,000 | |||||||
Environmental | 17,200,000 | $ 11,300,000 | |||||||
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 | ||||||||
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 | ||||||||
Lower eight miles of river | |||||||||
Site Contingency | |||||||||
Environmental loss accrual | $ 6,600,000 | ||||||||
Arizona Uranium Mines | |||||||||
Site Contingency | |||||||||
Environmental loss accrual | $ 13,400,000 | ||||||||
Investigative sites notice from EPA | mine | 8 | ||||||||
Percentage of expenses reimbursable by the U.S. | 35.00% | ||||||||
Future contributions from U.S. | $ 3,400,000 | ||||||||
Minimum | Lower Passaic River | |||||||||
Site Contingency | |||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 1,380,000,000 | $ 953,000,000 | |||||||
Maximum | Lower Passaic River | |||||||||
Site Contingency | |||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 1,730,000,000 | ||||||||
Asbestos Issue | |||||||||
Site Contingency | |||||||||
Insurance coverage amount | 1,000,000 | ||||||||
Insurance coverage received payment | $ 2,200,000 | ||||||||
Affiliated Entity | Crucible Steel Corporation | |||||||||
Site Contingency | |||||||||
Number of sites subject to remediation (sites) | site | 19 | ||||||||
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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Movement in Standard Product Warranty Accrual | ||
Balance at beginning of year | $ 4.9 | $ 6.7 |
Net charges to expense | 0.3 | 0.5 |
Settlements made | (0.7) | (0.4) |
Balance at end of year | $ 4.5 | $ 6.8 |