Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-31225 | |
Entity Registrant Name | ENPRO 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, $0.01 par value | |
Trading Symbol(s) | NPO | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,974,525 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001164863 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 271.9 | $ 276.9 | $ 529.4 | $ 559.5 |
Cost of sales | 152.9 | 162.1 | 304.2 | 328.6 |
Gross profit | 119 | 114.8 | 225.2 | 230.9 |
Operating expenses: | ||||
Selling, general and administrative | 70.3 | 73.2 | 147.7 | 144.7 |
Goodwill impairment | 0 | 60.8 | 0 | 60.8 |
Other | 0.7 | 0.2 | 1.5 | 1 |
Total operating expenses | 71 | 134.2 | 149.2 | 206.5 |
Operating income (loss) | 48 | (19.4) | 76 | 24.4 |
Interest expense | (10.7) | (12.4) | (21) | (24.1) |
Interest income | 1.2 | 3.8 | 3.3 | 7.6 |
Other expense | (2.1) | (0.6) | (7.6) | (2.4) |
Income (loss) from continuing operations before income taxes | 36.4 | (28.6) | 50.7 | 5.5 |
Income tax benefit (expense) | (9.7) | 5.8 | (11.5) | (2.3) |
Income (loss) from continuing operations | 26.7 | (22.8) | 39.2 | 3.2 |
Income from discontinued operations, including gain on sale, net of tax | 0 | 0 | 0 | 11.4 |
Net income (loss) | 26.7 | (22.8) | 39.2 | 14.6 |
Less: net loss attributable to redeemable non-controlling interests | 0 | (4.2) | 0 | (4.2) |
Net income (loss) attributable to Enpro Inc. | 26.7 | (18.6) | 39.2 | 18.8 |
Comprehensive income (loss) | 18.6 | (17.7) | 27.6 | 26.8 |
Less: comprehensive loss attributable to redeemable non-controlling interests | 0 | (4.2) | 0 | (4.2) |
Comprehensive income (loss) attributable to Enpro Inc. | 18.6 | (13.5) | 27.6 | 31 |
Income (loss) attributable to Enpro Inc. common shareholders: | ||||
Income (loss) from continuing operations, net of tax | 26.7 | (18.6) | 39.2 | 7.4 |
Income from discontinued operations, including gain on sale, net of tax | 0 | 0 | 0 | 11.4 |
Net income (loss) attributable to Enpro Inc. | $ 26.7 | $ (18.6) | $ 39.2 | $ 18.8 |
Basic earnings (loss) per share attributable to Enpro Inc.: | ||||
Continuing operations (in dollars per share) | $ 1.27 | $ (0.89) | $ 1.87 | $ 0.35 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.55 |
Net income (loss) per share (in dollars per share) | 1.27 | (0.89) | 1.87 | 0.90 |
Diluted earnings (loss) per share attributable to Enpro Inc.: | ||||
Continuing operations (in dollars per share) | 1.27 | (0.89) | 1.86 | 0.35 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.55 |
Net income (loss) per share (in dollars per share) | $ 1.27 | $ (0.89) | $ 1.86 | $ 0.90 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
OPERATING ACTIVITIES OF CONTINUING OPERATIONS | ||
Net income | $ 39.2 | $ 14.6 |
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | ||
Income from discontinued operations, net of taxes | 0 | (11.4) |
Taxes related to sale of discontinued operations | 0 | (3.3) |
Depreciation | 11.8 | 12.3 |
Amortization | 38 | 35.1 |
Goodwill impairment | 0 | 60.8 |
Promissory note reserve | 4.5 | 0 |
Deferred income taxes | (1.2) | (0.9) |
Stock-based compensation | 6.9 | 5.4 |
Other non-cash adjustments | 3.3 | 2.2 |
Change in assets and liabilities, net of effects of acquisition and sale of businesses: | ||
Accounts receivable, net | (17.3) | 0.9 |
Inventories | 2.1 | (0.1) |
Accounts payable | (6.3) | (10.9) |
Other current assets and liabilities | (25) | (24.8) |
Other non-current assets and liabilities | (6.5) | (1.4) |
Net cash provided by operating activities of continuing operations | 49.5 | 78.5 |
INVESTING ACTIVITIES OF CONTINUING OPERATIONS | ||
Purchases of property, plant and equipment | (13.1) | (11.9) |
Payments for capitalized internal-use software | (0.9) | (0.1) |
Proceeds from sale of businesses, net | 0 | 25.7 |
Purchase of short-term investments | 0 | (35.8) |
Acquisition | (209.4) | 0 |
Other | 0.3 | 0.5 |
Net cash used in investing activities of continuing operations | (223.1) | (21.6) |
FINANCING ACTIVITIES OF CONTINUING OPERATIONS | ||
Proceeds from debt | 52.5 | 0 |
Repayments of debt | (38.6) | (7.9) |
Purchase of non-controlling interest | (17.9) | 0 |
Dividends paid | (12.7) | (12.2) |
Other | (2.3) | (1.8) |
Net cash used in financing activities of continuing operations | (19) | (21.9) |
CASH FLOWS OF DISCONTINUED OPERATIONS | ||
Operating cash flows | 0 | (0.6) |
Net cash used in discontinued operations | 0 | (0.6) |
Effect of exchange rate changes on cash and cash equivalents | (1.3) | 6.1 |
Net increase (decrease) in cash and cash equivalents | (193.9) | 40.5 |
Cash and cash equivalents at beginning of period | 369.8 | 334.4 |
Cash and cash equivalents at end of period | 175.9 | 374.9 |
Cash paid during the period for: | ||
Interest | 19.9 | 23.3 |
Income taxes, net of refunds | 15.8 | 13.6 |
Property, plant, and equipment | ||
Non-cash investing and financing activities: | ||
Non-cash acquisitions | 2.1 | 0.7 |
Capitalized internal-use software | ||
Non-cash investing and financing activities: | ||
Non-cash acquisitions | $ 0.5 | $ 0 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 175.9 | $ 369.8 |
Accounts receivable, net | 136.2 | 116.7 |
Inventories | 144.6 | 142.6 |
Prepaid expenses and other current assets | 24.1 | 21.2 |
Total current assets | 480.8 | 650.3 |
Property, plant and equipment, net | 192.9 | 193.8 |
Goodwill | 903.5 | 808.4 |
Other intangible assets, net | 832.5 | 733.5 |
Other assets | 112.2 | 113.5 |
Total assets | 2,521.9 | 2,499.5 |
Current liabilities | ||
Current maturities of long-term debt | 12.1 | 8.1 |
Accounts payable | 61.8 | 68.7 |
Accrued expenses | 103 | 119.6 |
Total current liabilities | 176.9 | 196.4 |
Long-term debt | 649.4 | 638.7 |
Deferred taxes and non-current income taxes payable | 153.7 | 120.7 |
Other liabilities | 111.5 | 116.1 |
Total liabilities | 1,091.5 | 1,071.9 |
Commitments and contingencies | ||
Redeemable non-controlling interests | 0 | 17.9 |
Shareholders’ equity | ||
Common stock – $.01 par value; 100,000,000 shares authorized; issued, 21,150,833 shares in 2024 and 21,086,678 shares in 2023 | 0.2 | 0.2 |
Additional paid-in capital | 310.6 | 304.9 |
Retained earnings | 1,154.6 | 1,128 |
Accumulated other comprehensive loss | (33.8) | (22.2) |
Common stock held in treasury, at cost – 177,588 shares in 2024 and 178,151 shares in 2023 | (1.2) | (1.2) |
Total shareholders’ equity | 1,430.4 | 1,409.7 |
Total liabilities and equity | $ 2,521.9 | $ 2,499.5 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 21,150,833 | 21,086,678 |
Treasury stock, common, shares (in shares) | 177,588 | 178,151 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Overview Enpro Inc. (“we,” “us,” “our,” “Enpro,” or the “Company”) is a leading-edge industrial technology company focused on critical applications across a diverse group of growing end markets such as semiconductor, industrial process, aerospace, food, photonics, biopharmaceuticals and life sciences. Enpro is a leader in applied engineering and designs, develops, manufactures, and markets proprietary, value-added products and solutions that safeguard a variety of critical environments. Over the past several years, we have executed several strategic initiatives to create a portfolio of businesses that offer proprietary, industrial technology-related products and solutions with high barriers to entry, compelling margins, strong cash flow, and recurring aftermarket revenue in markets with favorable secular tailwinds. Basis of Presentation The accompanying interim consolidated financial statements are unaudited, and certain related information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted in accordance with Rule 10-01 of Regulation S-X. They were prepared following the same policies and procedures used in the preparation of our annual financial statements. The accompanying interim consolidated financial statements 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, 2023 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2023. 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, 2023 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. Actual results could differ from those estimates. All intercompany accounts and transactions between our consolidated operations have been eliminated. Recently Issued Accounting Guidance In November 2023, an accounting standards update was issued that improves reportable segment disclosures surrounding significant segment expenses. The amendments in this guidance are effective for financial statements issued for annual periods beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating this new guidance. In December 2023, an accounting standards update was issued that will require changes in income tax disclosures. The standard is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The standard requires prospective adoption with the recognition that there will be a lack of comparability between reporting periods upon adopting this new standard. Alternatively, retrospective adoption is also permitted. We are currently evaluating this new guidance. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Acquisitions Acquisition of business On January 29, 2024, Enpro acquired all of the equity securities of Advanced Micro Instruments, Inc. ("AMI"), a privately held company, for $209.4 million, net of cash acquired. In connection with the acquisition of AMI, there were $0.2 million and $3.5 million of acquisition-related costs incurred during the quarter and six months ended June 30, 2024 and included in selling, general, and administrative expense in the accompanying Consolidated Statements of Operations. AMI is a leading provider of highly-engineered, application-specific analyzers and sensing technologies that monitor critical parameters to maintain infrastructure integrity, enable process efficiency, enhance safety, and facilitate the clean energy transition. AMI is included within the Sealing Technologies segment. Based in Costa Mesa, California, AMI serves customers in the midstream natural gas, biogas, industrial processing, cryogenics, food processing, laboratory wastewater and aerospace markets. The company offers a portfolio of oxygen, hydrogen, sulfide and moisture analyzers and proprietary sensing capabilities that detect contaminants in a variety of processes, including natural gas and biogas streams, which enable operators to avoid flaring and, thereby, reduce CO 2 emissions. The purchase price of AMI was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the identifiable assets acquired less the liabilities assumed is reflected as goodwill, which is attributable primarily to the value of the workforce and the ongoing operations of the business. Goodwill recorded as part of the purchase price was $98.6 million, none of which is tax deductible. Identifiable intangible assets acquired as part of the acquisition totaled $138.1 million, consisting of indefinite and definite-lived intangible assets. Indefinite lived intangible assets relates solely to future products that were in development as of the acquisition date. We will begin amortizing this asset over its estimated life once these products in development become commercially available. Definite-lived intangible assets include proprietary technology, customer relationships, trade names, and non-competition agreements. Inventory acquired included an adjustment to fair value of $1.7 million, all of which was amortized to cost of goods sold in the first quarter of 2024. Identifiable intangible assets acquired are as follows: Weighted-average amortization period Definite-lived intangible assets acquired: (in millions) (years) Customer relationships $ 12.0 15.0 Existing technology 106.0 15.0 Trademarks 5.0 10.0 Other 1.1 3.3 Total definite-lived intangible assets 124.1 14.7 Indefinite-lived intangible assets acquired: In-process research and development 14.0 Identifiable intangible assets acquired $ 138.1 We will continue to evaluate the purchase price allocation of this acquisition, including the value of intangible assets and income tax assets and liabilities and adjust this allocation as appropriate. The allocation of purchase price was revised during the second quarter of 2024 to increase deferred income tax liabilities by $3.0 million with an offsetting $3.0 million increase to goodwill. The allocation of purchase price may be revised further during the balance of the one-year measurement period as our initial estimates below are finalized. The following table represents the preliminary allocation of purchase price as of June 30, 2024: (in millions) Accounts receivable $ 3.3 Inventories 5.2 Property, plant, and equipment 0.2 Goodwill 98.6 Other intangible assets 138.1 Other assets 0.6 Deferred income taxes (34.9) Liabilities assumed (1.7) $ 209.4 Sales of $9.5 million and $16.8 million and pre-tax income of $2.9 million and $3.7 million for AMI are included in our Consolidated Statements of Operations for the quarter and six months ended June 30, 2024, respectively. The following unaudited pro forma condensed consolidated financial results of operations for the quarters and six months ended June 30, 2024 and 2023 are presented as if the acquisition had been completed on January 1, 2023: Quarters Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Pro forma net sales $ 271.9 $ 285.2 $ 532.2 $ 576.9 Pro forma income (loss) from continuing operations $ 26.9 $ (23.6) $ 41.6 $ 0.7 These amounts have been calculated after applying our accounting policies and adjusting the results of AMI to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied as of January 1, 2023. The supplemental pro forma net income for the quarter and six months ended June 30, 2024 was adjusted to exclude $0.2 million and $3.5 million, respectively, of pre-tax acquisition-related costs related to AMI. The pro forma financial results have been prepared for comparative purposes only and do not reflect the effect of any potential synergies as a result of the integration of AMI. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the acquisition of AMI occurred on January 1, 2023, or of future results of Enpro Inc. Acquisition of non-controlling interest In connection with our acquisition of Alluxa in October 2020, three Alluxa executives (the "Alluxa Executives") received rollover equity interests in the form of approximately 7% of the total equity interest of an entity we formed for the purpose of acquiring Alluxa (the "Alluxa Acquisition Subsidiary"). Pursuant to the limited liability operating agreement (the "Alluxa LLC Agreement") that was entered into with the completion of the transaction, each Alluxa Executive had the right to sell to us, and we had the right to purchase from each Alluxa Executive (collectively, the "Put and Call Rights"), one-third of the Alluxa Executive equity interests in the Alluxa Acquisition Subsidiary during each of three exercise periods in 2024, 2025 and 2026, with any amount not sold or purchased in a prior exercise period being carried forward to the subsequent exercise periods. In January 2024, we agreed with the Alluxa Executives to change the terms of the Put and Call Rights so that all outstanding equity interests could be acquired in 2024. In February of 2024, we acquired all outstanding equity interests in the Alluxa Acquisition Subsidiary for $17.9 million, which was the minimum fixed price set in the Alluxa LLC Agreement. As this transaction was for the acquisition of all remaining shares of a consolidated subsidiary with no change in control, it was recorded within shareholder's equity and as a financing cash flow in the Consolidated Statement of Cash Flows. Enpro is now the sole owner of Alluxa. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax expense and resulting effective tax rate are based upon the estimated annual effective tax rates applicable for the respective periods adjusted for the effect of items required to be treated as discrete in the interim periods. This estimated annual effective tax rate is affected by the relative proportions of revenue and income before taxes in the jurisdictions in which we operate. Based on the geographical mix of earnings, our annual effective tax rate fluctuates based on the portion of our profits earned in each jurisdiction. The effective tax rates for the quarters ended June 30, 2024 and 2023 were an expense of 26.7% and a benefit of 20.0%, respectively. The effective tax rate for the quarter ended June 30, 2024 is higher than the U.S. Federal tax rate primarily driven by higher tax rates in most foreign jurisdictions and state tax on domestic earnings partially offset by various tax credits. The effective tax rate for the quarter ended June 30, 2023 is lower than the U.S. Federal tax rate primarily driven by impairment of non-deductible tax goodwill partially offset by higher tax rates in most foreign jurisdictions. The effective tax rates for the six months ended June 30, 2024 and 2023 were 22.7% and 43.0%, respectively. The effective tax rate for the six months ended June 30, 2024 is higher than the U.S. Federal tax rate primarily driven by higher tax rates in most foreign jurisdictions partially offset by favorable state amended return filings and additional tax benefit related to share-based payment awards. The effective tax rate for the six months ended June 30, 2023 is higher than the U.S. Federal tax rate primarily driven by impairment of non-deductible tax goodwill and higher tax rates in most foreign jurisdictions partially offset by the release of a valuation allowance on certain foreign net operating losses and a tax benefit related to share-based payment awards. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Quarters Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share amounts) Numerator (basic and diluted): Income (loss) from continuing operations $ 26.7 $ (22.8) $ 39.2 $ 3.2 Less: net loss attributable to redeemable non-controlling interests — (4.2) — (4.2) Income (loss) from continuing operations attributable to Enpro Inc. 26.7 (18.6) 39.2 7.4 Income from discontinued operations, net of tax — — — 11.4 Net income (loss) $ 26.7 $ (18.6) $ 39.2 $ 18.8 Denominator: Weighted-average shares – basic 21.0 20.9 20.9 20.9 Share-based awards 0.1 — 0.2 — Weighted-average shares – diluted 21.1 20.9 21.1 20.9 Basic earnings (loss) per share: Continuing operations $ 1.27 $ (0.89) $ 1.87 $ 0.35 Discontinued operations — — — 0.55 Basic earnings (loss) per share $ 1.27 $ (0.89) $ 1.87 $ 0.90 Diluted earnings (loss) per share: Continuing operations $ 1.27 $ (0.89) $ 1.86 $ 0.35 Discontinued operations — — — 0.55 Diluted earnings (loss) per share $ 1.27 $ (0.89) $ 1.86 $ 0.90 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories June 30, December 31, (in millions) Finished products $ 53.3 $ 53.6 Work in process 30.1 28.4 Raw materials 61.2 60.6 Total inventories $ 144.6 $ 142.6 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the net carrying value of goodwill by reportable segment for the six months ended June 30, 2024 are as follows: Sealing Advanced Surface Technologies Total (in millions) Goodwill as of December 31, 2023 $ 276.2 $ 532.2 $ 808.4 Acquisition of business 98.6 — 98.6 Foreign currency translation (3.5) — (3.5) Goodwill as of June 30, 2024 $ 371.3 $ 532.2 $ 903.5 The goodwill balances reflected above at June 30, 2024 are net of accumulated impairment losses of $27.8 million for the Sealing Technologies segment and $126.0 million for the Advanced Surface Technologies segment. Identifiable intangible assets are as follows: June 30, 2024 December 31, 2023 Gross Accumulated Gross Accumulated (in millions) Definite-Lived: Customer relationships $ 496.8 $ 197.7 $ 486.6 $ 184.8 Existing technology 570.4 125.6 465.2 106.1 Trademarks 69.6 32.2 64.9 29.6 Other 28.4 22.0 27.4 20.9 1,165.2 377.5 1,044.1 341.4 Indefinite-Lived: In-process research and development 14.0 — — — Trademarks 30.8 — 30.8 — Total $ 1,210.0 $ 377.5 $ 1,074.9 $ 341.4 Amortization for the quarters and six months ended June 30, 2024 and 2023 were $19.1 million, $17.3 million, $37.7 million, and $34.7 million, respectively. The estimated amortization expense for definite-lived (amortized) intangible assets for the next five years is as follows (in millions): 2024 $ 77.1 2025 $ 76.8 2026 $ 73.1 2027 $ 72.5 2028 $ 71.8 |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses June 30, December 31, (in millions) Salaries, wages and employee benefits $ 37.3 $ 56.0 Interest 4.4 4.2 Environmental 10.0 8.2 Income taxes 12.9 10.0 Taxes other than income taxes 6.0 5.1 Operating lease liabilities 10.0 10.0 Other 22.4 26.1 $ 103.0 $ 119.6 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
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 our subsidiary, EnPro Holdings, Inc. ("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 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. Borrowings under the 364-Day Facility bore interest at an annual rate of LIBOR plus 1.50% or base rate plus 0.50%. Initially, borrowings under the Facilities (other than the 364-Day Facility) bore interest at an annual rate of LIBOR plus 1.75% or base rate plus 0.75%, although these interest rates were subject to incremental increase or decrease based on a consolidated total net leverage ratio. On November 8, 2022, we entered into a First Amendment to the Amended Credit Agreement, which replaced the LIBOR-based interest rate option with an option based on Term SOFR ("Secured Overnight Financing Rate") plus (i) a credit spread adjustment of 0.10% and (ii) 1.75%, again subject to incremental increase or decrease based on a consolidated total net leverage ratio. In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility at an annual rate of 0.225%, which rate is also subject to incremental increase or decrease based on a consolidated total net leverage ratio. The Term Loan A-1 Facility amortized 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 amortizes 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 did not amortize and was repaid in full in the third quarter of 2022. On July 26, 2023, we voluntarily prepaid all outstanding borrowings and accrued and unpaid interest under the Term Loan A-1 Facility (a remaining principal balance of $133.1 million and accrued interest of $0.6 million). 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 June 30, 2024. The borrowing availability under our Revolving Credit Facility at June 30, 2024 was $372.0 million after giving consideration to $10.0 million of outstanding letters of credit and $18.0 million of outstanding borrowings. The balance of borrowings outstanding under the Term Loan A-2 Facility at June 30, 2024 was $295.3 million. 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"). 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. 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. 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 offer to repurchase the Senior Notes at a price equal to 100.0% of the principal amount thereof plus accrued and unpaid interest, in the event that the net cash proceeds of certain asset sales are not reinvested in acquisitions, capital expenditures, or used to repay or otherwise reduce specified indebtedness within a specified period, to the extent the remaining net proceeds exceed a specified amount. We were in compliance with all of the covenants under the indenture governing the Senior Notes as of June 30, 2024. |
Pension
Pension | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Pension | Pension The components of net periodic benefit cost for our U.S. and foreign defined benefit pension plans for the quarters and six months ended June 30, 2024 and 2023, are as follows: Quarters Ended June 30, Six Months Ended June 30, Pension Benefits Pension Benefits 2024 2023 2024 2023 (in millions) Service cost $ 0.1 $ 0.2 $ 0.2 $ 0.3 Interest cost 3.2 3.5 6.4 6.8 Expected return on plan assets (3.5) (3.5) (7.1) (6.9) Amortization of net loss 0.4 0.4 0.8 0.8 Net periodic benefit cost $ 0.2 $ 0.6 $ 0.3 $ 1.0 We do not anticipate making any contributions to our U.S. defined benefit pension plans in calendar year 2024. In the second quarter of 2024, Enpro initiated a plan to terminate and settle its remaining defined benefit pension plan in the United States. The termination and settlement process for this frozen plan, which preserves retirement benefits due to participants but changes the ultimate payor of such benefits, is expected to be completed by the end of 2025. At June 30, 2024, approximately $16.5 million of pension assets recorded in other assets on our consolidated balance sheet and substantially all pension losses recorded in accumulated other comprehensive loss on our consolidated balance sheet relate to this plan. Tables showing the changes in accumulated other comprehensive income (loss) and the balance at June 30, 2024 are included in Note 1 4 , "Accumulated Other Comprehensive Income (Loss)". |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity The quarterly changes in shareholders' equity during the six months ended June 30, 2024 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2023 21.0 $ 0.2 $ 304.9 $ 1,128.0 $ (22.2) $ (1.2) $ 1,409.7 $ 17.9 Net income — — — 12.5 — — 12.5 — Other comprehensive loss — — — — (3.5) — (3.5) — Dividends ($0.30 per share) — — — (6.3) — — (6.3) — Incentive plan activity — — 1.5 — — — 1.5 — Acquisition of Alluxa minority ownership — — — — — — — (17.9) Balance, March 31, 2024 21.0 $ 0.2 $ 306.4 $ 1,134.2 $ (25.7) $ (1.2) $ 1,413.9 $ — Net income — — — 26.7 — — 26.7 — Other comprehensive loss — — — — (8.1) — (8.1) — Dividends ($0.30 per share) — — — (6.3) — (6.3) — Share repurchases — — — — — — — — Incentive plan activity — — 4.2 — — — 4.2 — Balance, June 30, 2024 21.0 $ 0.2 $ 310.6 $ 1,154.6 $ (33.8) $ (1.2) $ 1,430.4 $ — The quarterly changes in shareholders' equity during the six months ended June 30, 2023 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2022 20.8 $ 0.2 $ 299.2 $ 1,130.2 $ (33.3) $ (1.2) $ 1,395.1 $ 17.9 Net income — — — 37.4 — — 37.4 — Other comprehensive income — — — — 7.1 — 7.1 — Dividends ($0.29 per share) — — — (6.1) — — (6.1) — Incentive plan activity 0.1 — 1.6 — — — 1.6 — Balance, March 31, 2023 20.9 $ 0.2 $ 300.8 $ 1,161.5 $ (26.2) $ (1.2) $ 1,435.1 $ 17.9 Net loss — — — (18.6) — — (18.6) (4.2) Other comprehensive income — — — — 5.1 — 5.1 — Dividends ($0.29 per share) — — — (6.1) — (6.1) — Incentive plan activity — — 3.1 — — — 3.1 — Other — — (4.2) — — — (4.2) 4.2 Balance, June 30, 2023 20.9 $ 0.2 $ 299.7 $ 1,136.8 $ (21.1) $ (1.2) $ 1,414.4 $ 17.9 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 $12.7 million were made during the six months ended June 30, 2024. In August 2024, our board of directors declared a dividend of $0.30 per share, payable on September 18, 2024, to all shareholders of record as of September 4, 2024. In October 2022, our board of directors authorized the expenditure of up to $50.0 million for the repurchase of our outstanding common shares through October 2024. We have not made any repurchases under this authorization. In 2023, we changed our performance share awards so that awards granted under our equity compensation plan to executives and other key employees are to be paid in shares of our common stock at the end of the three-year vesting period. Awards issued in 2022 will be payable in cash at the end of the vesting period based upon the performance of Enpro’s share price relative to a diverse industry peer group. Compensation expense related to performance shares granted in 2023 and 2024 is computed using the fair value of the awards on the grant date, which is expensed on a straight-line basis over the three-year vesting period. Compensation expense for awards granted in 2022 is computed based upon the current estimate of total projected cash to be paid at vesting and the portion of the vesting period that has elapsed. In February 2024, we issued stock options to certain key executives for approximately 50,000 common shares with an exercise price of $156.20 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 and recorded in selling, general and administrative costs on our Consolidated Income Statement. 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 February 2024 had a fair value of $66.84 per share at their grant date. The following assumptions were used to estimate the fair value of the 2024 option awards: Average expected term 6 years Expected volatility 40.61 % Risk-free interest rate 4.33 % Expected dividend yield 0.77 % |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We aggregate our operating businesses into two reportable segments, Sealing Technologies and Advanced Surface Technologies. Factors considered in determining our reportable segments include the economic similarity of the businesses, the nature of products sold, or solutions provided, the production processes and the types of customers and distribution methods. Our Sealing Technologies segment engineers and manufactures value-added products and solutions that safeguard a variety of critical environments, including: metallic, non-metallic and composite material gaskets; dynamic seals; compression packing; elastomeric components; custom-engineered mechanical seals used in diverse applications; hydraulic components; test, measurement and sensing applications; sanitary gaskets; hoses and fittings for hygienic process industries; fluid transfer products for the pharmaceutical and biopharmaceutical industries; and commercial vehicle solutions used in wheel-end and suspension components that customers rely upon to ensure safety on our roadways. These products are used in a variety of markets, including chemical and petrochemical processing, nuclear energy, hydrogen, natural gas, food and biopharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, commercial vehicle, aerospace (including commercial space), medical, filtration and semiconductor fabrication. In all these industries, the performance and durability of our proprietary products and solutions are vital for the safety and environmental protection of our customers’ processes. Many of our products and solutions are used in highly demanding applications, often in harsh environments, where the cost of failure is extremely high relative to the cost of our offerings to our customers. These environments include those where extreme temperatures, extreme pressures, corrosive agents, strict tolerances, or worn equipment create challenges for product performance. Sealing Technologies offers customers widely recognized applied engineering, innovation, process know-how and enduring reliability, driving a lasting aftermarket for many of our products and solutions. Our Advanced Surface Technologies (AST) segment applies proprietary technologies, processes, and capabilities to deliver a highly differentiated suite of products and solutions for challenging applications in high-growth markets. The segment’s products and solutions are used in demanding environments requiring performance, precision and repeatability, with a low tolerance for failure. AST’s products and solutions include: (i) cleaning, coating, testing, refurbishment and verification for critical components and assemblies used in semiconductor manufacturing equipment, with meaningful exposures to state-of-the-art advanced node chip applications; (ii) designing, manufacturing and selling specialized optical filters and proprietary thin-film coatings for the most challenging applications in the industrial technology, life sciences, and semiconductor markets; (iii) engineering and manufacturing complex front-end wafer processing sub-systems and new and refurbished electrostatic chuck pedestals for the semiconductor equipment industry; and (iv) engineering and manufacturing edge-welded metal bellows for the semiconductor equipment industry and critical applications in the space, aerospace and defense markets. In many instances, AST capabilities drive products and solutions that enable the performance of our customers’ high-value processes through an entire life cycle. 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. Segments non-operating expenses and income, corporate expenses, net interest expense, 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. In the first quarter of 2024, we refined our definition of Adjusted Segment EBITDA and corporate expenses to include certain other income or expenses previously reported in other expense, net. These items were primarily comprised of bank fees and certain foreign exchange transaction gains and losses. As a result of this change, for the quarter ended June 30, 2023, we recast our results to increase Sealing Technologies Adjusted Segment EBITDA by $0.1 million and increased corporate expenses by $0.6 million. For the six months ended June 30, 2023, we increased Sealing Technologies Adjusted Segment EBITDA by $0.1 million, decreased Advanced Surface Technologies Adjusted Segment EBITDA by $0.1 million, and increased corporate expenses by $0.9 million. Non-controlling interest compensation allocation represents compensation expense associated with a portion of the rollover equity from the acquisition of Alluxa. This expense was recorded in selling, general, and administrative expenses in our Consolidated Statements of Operations and is directly related to the terms of the acquisition. In February 2024, Enpro acquired all of the Alluxa non-controlling interests and became the sole owner of Alluxa. Segment operating results and other financial data for the quarters and six months ended June 30, 2024 and 2023 were as follows: Quarters Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Sales Sealing Technologies $ 184.0 $ 176.7 $ 355.6 $ 350.0 Advanced Surface Technologies 88.1 100.3 174.1 209.7 272.1 277.0 529.7 559.7 Intersegment sales (0.2) (0.1) (0.3) (0.2) Total sales $ 271.9 $ 276.9 $ 529.4 $ 559.5 Adjusted Segment EBITDA Sealing Technologies $ 65.4 $ 56.3 $ 118.4 $ 106.0 Advanced Surface Technologies 19.1 24.1 36.4 53.5 $ 84.5 $ 80.4 $ 154.8 $ 159.5 Reconciliation of Income (Loss) from Continuing Operations Before Income Taxes to Adjusted Segment EBITDA Income (loss) from continuing operations before income taxes $ 36.4 $ (28.6) $ 50.7 $ 5.5 Acquisition expenses 0.2 — 3.5 — Non-controlling interest compensation allocation — (0.7) — (0.3) Amortization of fair value adjustment to acquisition date inventory — — 1.7 — Restructuring expense 0.6 0.3 1.1 0.7 Depreciation and amortization expense 25.2 23.8 49.8 47.3 Corporate expenses 10.5 15.6 22.7 26.6 Interest expense, net 9.5 8.6 17.7 16.5 Goodwill impairment — 60.8 — 60.8 Other expense, net 2.1 0.6 7.6 2.4 Adjusted Segment EBITDA $ 84.5 $ 80.4 $ 154.8 $ 159.5 Segment assets are as follows: June 30, 2024 December 31, 2023 (in millions) Sealing Technologies $ 928.3 $ 687.1 Advanced Surface Technologies 1,353.8 1,385.9 Corporate 239.8 426.5 $ 2,521.9 $ 2,499.5 Revenue by End Market Due to the diversified nature of our business and the differentiated portfolio of products and solutions that we offer, we sell into a number of end markets. Underlying economic conditions within these markets are a major driver of our segments' sales performance. Below is a summary of our third-party sales by major end market with which we did business for the quarters and six months ended June 30, 2024 and June 30, 2023: Quarter Ended June 30, 2024 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 13.9 $ 3.2 $ 17.1 Chemical and material processing 22.0 — 22.0 Food and pharmaceutical 18.0 — 18.0 General industrial 44.7 6.4 51.1 Commercial vehicle 48.0 — 48.0 Oil and gas 14.8 1.5 16.3 Power generation 19.9 — 19.9 Semiconductors 2.7 76.8 79.5 Total third-party sales $ 184.0 $ 87.9 $ 271.9 Quarter Ended June 30, 2023 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 13.7 $ 2.4 $ 16.1 Chemical and material processing 22.9 — 22.9 Food and pharmaceutical 16.2 — 16.2 General industrial 44.3 6.0 50.3 Commercial vehicle 53.3 — 53.3 Oil and gas 4.7 2.9 7.6 Power generation 19.5 — 19.5 Semiconductors 2.1 88.9 91.0 Total third-party sales $ 176.7 $ 100.2 $ 276.9 Six Months Ended June 30, 2024 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 28.1 $ 6.0 $ 34.1 Chemical and material processing 44.3 — 44.3 Food and pharmaceutical 35.0 — 35.0 General industrial 86.2 12.5 98.7 Commercial vehicle 92.9 — 92.9 Oil and gas 27.1 3.0 30.1 Power generation 37.4 — 37.4 Semiconductors 4.6 152.3 156.9 Total third-party sales $ 355.6 $ 173.8 $ 529.4 Six Months Ended June 30, 2023 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 26.2 $ 4.0 $ 30.2 Chemical and material processing 44.5 — 44.5 Food and pharmaceutical 34.9 — 34.9 General industrial 88.2 14.8 103.0 Commercial vehicle 105.7 — 105.7 Oil and gas 10.6 4.5 15.1 Power generation 35.6 — 35.6 Semiconductors 4.3 186.2 190.5 Total third-party sales $ 350.0 $ 209.5 $ 559.5 |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging We are exposed to foreign currency risks that arise from normal business operations. These risks include the translation of local currency balances on our foreign subsidiaries’ balance sheets, intercompany loans with foreign subsidiaries and transactions denominated in foreign currencies. We strive to control our exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. We periodically enter into contracts to hedge forecasted transactions that are denominated in foreign currencies. As part of our regular practice, we have entered into a forward contract to hedge a 95 million Euro exposure on an intercompany note agreement related to proceeds from the sale of our former GGB business, allocated to foreign subsidiaries. We expect this intercompany note to be settled by December 2024. The notional amount of foreign exchange contracts was $107.3 million and $110.5 million at June 30, 2024 and December 31, 2023 respectively. All foreign exchange contracts outstanding at June 30, 2024 expired in July 2024. The earnings impact of these foreign exchange contracts are recorded in selling, general and administrative expense in the Consolidated Statements of Operations. The balances of foreign exchange derivative assets are recorded in other current assets and the balances of foreign exchange derivative liabilities are recorded in accrued expenses in the Consolidated Balance Sheets. In May 2019, we entered into cross-currency swap agreements (the "Swap") with an aggregate 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 Swap matures on October 15, 2026. During the term of the Swap, 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 the Swap. There was no principal exchange at the inception of the arrangement, and there will be no exchange at maturity. At maturity (or earlier at our option), we and the counterparty will settle the Swap at its 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 was entered into. We have designated the Swap as a qualifying hedging instrument and are accounting for it as a net investment hedge. At June 30, 2024, the fair value of the Swap equaled $5.6 million and was recorded within our other (non-current) assets on the Consolidated Balance Sheet. The gains and losses resulting from fair value adjustment to the Swap, excluding interest accruals related to the above receipts, are recorded in accumulated other comprehensive income within our cumulative foreign currency translation adjustment, as the Swap is effective in hedging the designated risk. Cash flows related to the Swap are included in operating activities in the Consolidated Statements of Cash Flows, aside from the ultimate settlement at maturity with the counterparty, which will be included in investing activities. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of June 30, 2024 December 31, 2023 (in millions) Assets Foreign currency derivatives $ 5.6 $ 3.1 Deferred compensation assets 14.3 12.5 $ 19.9 $ 15.6 Liabilities Deferred compensation liabilities $ 14.9 $ 13.3 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component (after tax) for the quarter ended June 30, 2024 are as follows: (in millions) Unrealized Pension Total Beginning balance $ 20.3 $ (46.0) $ (25.7) Other comprehensive income before reclassifications (8.3) — (8.3) Amounts reclassified from accumulated other comprehensive loss — 0.2 0.2 Net current-period other comprehensive income attributable to Enpro Inc. (8.3) 0.2 (8.1) Ending balance $ 12.0 $ (45.8) $ (33.8) Changes in accumulated other comprehensive income (loss) by component (after tax) for the quarter ended June 30, 2023 are as follows: (in millions) Unrealized Pension Total Beginning balance $ 18.6 $ (44.8) $ (26.2) Other comprehensive loss before reclassifications 4.8 — 4.8 Amounts reclassified from accumulated other comprehensive income — 0.3 0.3 Net current-period other comprehensive income attributable to Enpro Inc. 4.8 0.3 5.1 Ending balance $ 23.4 $ (44.5) $ (21.1) Changes in accumulated other comprehensive income (loss) by component (after tax) for the six months ended June 30, 2024 are as follows: (in millions) Unrealized Pension Total Beginning balance $ 24.1 $ (46.3) $ (22.2) Other comprehensive loss before reclassifications (12.1) — (12.1) Amounts reclassified from accumulated other comprehensive loss — 0.5 0.5 Net current-period other comprehensive income (12.1) 0.5 (11.6) Ending balance $ 12.0 $ (45.8) $ (33.8) Changes in accumulated other comprehensive income (loss) by component (after tax) for the six months ended June 30, 2023 are as follows: (in millions) Unrealized Pension Total Beginning balance $ 11.8 $ (45.1) $ (33.3) Other comprehensive income before reclassifications 11.6 — 11.6 Amounts reclassified from accumulated other comprehensive (loss) — 0.6 0.6 Net current-period other comprehensive income 11.6 0.6 12.2 Ending balance $ 23.4 $ (44.5) $ (21.1) Reclassifications out of accumulated other comprehensive income (loss) for the quarters and six months ended June 30, 2024 and June 30, 2023 are as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Affected Statement of Quarters Ended Six Months Ended (in millions) 2024 2023 2024 2023 Pension adjustments: Actuarial losses $ 0.4 $ 0.4 $ 0.8 $ 0.8 Other expense Total before tax 0.4 0.4 0.8 0.8 Income before income taxes Tax expense (0.2) (0.1) (0.3) (0.2) Income tax benefit (expense) Net of tax $ 0.2 $ 0.3 $ 0.5 $ 0.6 Net income |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 investigation and remediation activities at 19 sites. At 14 of these sites, the future cost per site for us or our subsidiaries is expected to exceed $100,000. We do not conduct manufacturing operations at any of these sites. At all 19 sites, one or more of our subsidiaries formerly conducted business operations but no longer do. Among these 19 sites, investigations have been completed for 15 sites and are in progress at 4 sites. Among the 15 sites where investigations have been completed, 8 sites have remediation systems that are operating and our only obligation at the other 7 sites is to conduct periodic monitoring. In addition to the 19 sites referenced above, the United States Environmental Protection Agency (the "EPA") has provided us notice that Enpro has potential responsibility at 1 additional site where one of our subsidiaries formerly conducted business operations but no longer does. We have responded to the EPA that we do not have responsibility at that site and are awaiting EPA's response. Our policy is to accrue environmental investigation and remediation costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. For sites with multiple future projected cost scenarios for identified feasible investigation and remediation options where no one estimate is more likely than all the others, our policy is to accrue the lowest estimate among the range of estimates. The measurement of the liability is based on an evaluation of currently available facts with respect to each individual situation and takes into consideration factors such as existing technology, presently enacted laws and regulations and prior experience in the remediation of similar contaminated sites. Liabilities are established for all sites based on these factors. As assessments and remediation progress at individual sites, these liabilities are reviewed and adjusted to reflect additional technical data and legal information. As of June 30, 2024 and December 31, 2023, we had recorded liabilities aggregating $39.1 million and $39.0 million, respectively, for estimated future expenditures relating to environmental contingencies. The current portion of our aggregate environmental liability included in accrued liabilities was $10.0 million at June 30, 2024 and $8.2 million at December 31, 2023. 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 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 Holdings. In September 2022, EnPro Holdings paid $5.9 million as part of a settlement between those parties and EPA. The payment will be held in escrow until court approval of the settlement. Our reserve for this site at June 30, 2024 was $0.7 million. Further adjustments to our reserve for this site are possible as new or additional information becomes available. 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. 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. We entered into a First Modification of Original Administrative Settlement Agreement and Order on Consent effective July 8, 2022 for the performance of Engineering Evaluations and Cost Analyses of potential remedial options at each of the sites. In 2020, the 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 June 30, 2024 for this site was $11.2 million, which reflects the low end of the range of our reasonably likely liability with respect to these sites. While some available remediation scenarios have higher associated costs and, if required by EPA, would require an upward adjustment of the reserve, those higher cost remediation scenarios are not more likely to be required than the lower cost remediation scenarios based on currently available facts. 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 $2.8 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 June 30, 2024. Other Environmental In addition to the two sites discussed above, we have additional reserves of $27.2 million, of which (1) $12.2 million pertains to implementing and managing a solution to clean trichloroethylene ("TCE") soil and groundwater contamination at the location of a former operation in Water Valley, Mississippi, that was operated by a corporate predecessor of EnPro Holdings from 1972 through 1996; and (2) $2.3 million (of which $2.1 million was accrued in the second quarter of 2024) pertains to the investigation and cleanup of two GGB facilities located in Thorofare, New Jersey. As part of the November 2022 sale of GGB to The Timken Company, Enpro retained responsibility for compliance with New Jersey's Industrial Site Remediation Act ("ISRA"), which requires identification, investigation and remediation of these two facilities. These amounts represent a reasonable estimate of our probable future costs to remediate these sites given the facts and circumstances known at June 30, 2024. Water Valley Litigation On June 4, 2024, eight former employees at a manufacturing operation in Water Valley, Mississippi (the “Water Valley Facility”) filed a complaint in the United States District Court, Northern District of Mississippi against EnPro Industries, Inc., EnPro Holdings and others alleging personal injury and other claims related to alleged occupational exposure to TCE. The Water Valley Facility was operated by a division of a corporate predecessor of EnPro Holdings from 1972 through 1996, prior to the formation of Enpro in 2002. By 1987, TCE was no longer used at the Water Valley Facility. In 1996, EnPro Holdings' corporate predecessor sold the division, including the Water Valley Facility, to BorgWarner. In 2021, BorgWarner sold the Water Valley Facility to Solero Technologies, which currently operates it. Given the early stage of these proceedings, Enpro cannot estimate a range of reasonably possible outcomes of this matter or any other claims based on similar allegations. Crucible Steel Corporation a/k/a Crucible, Inc. Crucible, which was engaged primarily in the manufacture and distribution of high technology specialty metal products, was a wholly owned subsidiary of EnPro Holdings until 1983 when its assets and liabilities were distributed to a new subsidiary, Crucible Materials Corporation. EnPro Holdings sold a majority of the outstanding shares of Crucible Materials Corporation in 1985 and divested its remaining minority interest in 2004. Crucible Materials Corporation filed for Chapter 11 bankruptcy protection in May 2009 and is no longer conducting operations. We have certain ongoing obligations, which are included in other liabilities in our Consolidated Balance Sheets, including workers’ compensation, retiree medical and other retiree benefit matters, in addition to those mentioned previously related to EnPro Holdings' period of ownership of Crucible. Based on EnPro Holdings' prior ownership of Crucible, we may have certain additional contingent liabilities, including liabilities in one or more significant environmental matters included in the matters discussed in “Environmental” above. We are investigating these matters. Except with respect to those matters for which we have an accrued liability as discussed in "Environmental" above, we are unable to estimate a reasonably possible range of loss related to these contingent liabilities. Warranties We provide warranties on many of our products. The specific terms and conditions of these warranties vary depending on the product and the market in which the product is sold. We record a liability based upon estimates of the costs we may incur under our warranties after a review of historical warranty experience and information about specific warranty claims. Adjustments are made to the liability as claims data, historical experience, and trends result in changes to our estimate. Changes in the product warranty liability for the six months ended June 30, 2024 and 2023 are as follows: 2024 2023 (in millions) Balance at beginning of year $ 6.4 $ 5.2 Net charges to expense 0.4 1.0 Settlements made (0.7) (0.9) Balance at end of period $ 6.1 $ 5.3 |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On January 30, 2023, we completed the sale of Garlock Pipeline Technologies, Inc. ("GPT"). In the first quarter of 2023, we received $28.4 million, net of transaction fees. We recorded a pre-tax gain on the sale of discontinued operations of $14.6 million in the first quarter of 2023. This business comprised our remaining Engineered Materials segment ("Engineered Materials"). In connection with the divestiture of our Engineered Materials segment, we paid $3.1 million in the first quarter of 2023 related to the finalization of the sale of our GGB business, which closed in December of 2022. Accordingly, we have recast, for all periods presented, the financial condition, results of operations, and cash flows of Engineered Materials as discontinued operations in the accompanying financial statements. For the six months ended June 30, 2023, the results of operations from the discontinued Engineered Materials segment were as follows: (in millions) 2023 Net sales $ 2.0 Cost of sales 1.3 Gross profit 0.7 Operating expenses: Selling, general and administrative 0.4 Total operating expenses 0.4 Income from discontinued operation before income tax 0.3 Income tax expense (0.1) Income from discontinued operations, net of tax 0.2 Gain from sale of discontinued operation, net of tax 11.2 Income from discontinued operations, including gain on sale, net of tax $ 11.4 Pursuant to applicable accounting guidance for the reporting of discontinued operations, allocations to Engineered Materials for corporate services not expected to continue at the divested business subsequent to closing have not been reflected in the above results of discontinued operations and have been reclassified to income from continuing operations in the accompanying consolidated financial statements of the Company for all periods. In addition, divestiture-related costs previously not allocated to Engineered Materials that were incurred as a result of the divestiture of Engineered Materials have been reflected in the financial results of discontinued operations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 26.7 | $ 12.5 | $ (18.6) | $ 37.4 | $ 39.2 | $ 18.8 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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. The accompanying interim consolidated financial statements 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, 2023 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2023. 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, 2023 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. Actual results could differ from those estimates. All intercompany accounts and transactions between our consolidated operations have been eliminated. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance In November 2023, an accounting standards update was issued that improves reportable segment disclosures surrounding significant segment expenses. The amendments in this guidance are effective for financial statements issued for annual periods beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating this new guidance. In December 2023, an accounting standards update was issued that will require changes in income tax disclosures. The standard is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The standard requires prospective adoption with the recognition that there will be a lack of comparability between reporting periods upon adopting this new standard. Alternatively, retrospective adoption is also permitted. We are currently evaluating this new guidance. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Identifiable Intangible Assets Acquired | Identifiable intangible assets acquired are as follows: Weighted-average amortization period Definite-lived intangible assets acquired: (in millions) (years) Customer relationships $ 12.0 15.0 Existing technology 106.0 15.0 Trademarks 5.0 10.0 Other 1.1 3.3 Total definite-lived intangible assets 124.1 14.7 Indefinite-lived intangible assets acquired: In-process research and development 14.0 Identifiable intangible assets acquired $ 138.1 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table represents the preliminary allocation of purchase price as of June 30, 2024: (in millions) Accounts receivable $ 3.3 Inventories 5.2 Property, plant, and equipment 0.2 Goodwill 98.6 Other intangible assets 138.1 Other assets 0.6 Deferred income taxes (34.9) Liabilities assumed (1.7) $ 209.4 |
Schedule of Business Acquisition, Pro Forma Information | The following unaudited pro forma condensed consolidated financial results of operations for the quarters and six months ended June 30, 2024 and 2023 are presented as if the acquisition had been completed on January 1, 2023: Quarters Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Pro forma net sales $ 271.9 $ 285.2 $ 532.2 $ 576.9 Pro forma income (loss) from continuing operations $ 26.9 $ (23.6) $ 41.6 $ 0.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | Quarters Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share amounts) Numerator (basic and diluted): Income (loss) from continuing operations $ 26.7 $ (22.8) $ 39.2 $ 3.2 Less: net loss attributable to redeemable non-controlling interests — (4.2) — (4.2) Income (loss) from continuing operations attributable to Enpro Inc. 26.7 (18.6) 39.2 7.4 Income from discontinued operations, net of tax — — — 11.4 Net income (loss) $ 26.7 $ (18.6) $ 39.2 $ 18.8 Denominator: Weighted-average shares – basic 21.0 20.9 20.9 20.9 Share-based awards 0.1 — 0.2 — Weighted-average shares – diluted 21.1 20.9 21.1 20.9 Basic earnings (loss) per share: Continuing operations $ 1.27 $ (0.89) $ 1.87 $ 0.35 Discontinued operations — — — 0.55 Basic earnings (loss) per share $ 1.27 $ (0.89) $ 1.87 $ 0.90 Diluted earnings (loss) per share: Continuing operations $ 1.27 $ (0.89) $ 1.86 $ 0.35 Discontinued operations — — — 0.55 Diluted earnings (loss) per share $ 1.27 $ (0.89) $ 1.86 $ 0.90 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | June 30, December 31, (in millions) Finished products $ 53.3 $ 53.6 Work in process 30.1 28.4 Raw materials 61.2 60.6 Total inventories $ 144.6 $ 142.6 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment | The changes in the net carrying value of goodwill by reportable segment for the six months ended June 30, 2024 are as follows: Sealing Advanced Surface Technologies Total (in millions) Goodwill as of December 31, 2023 $ 276.2 $ 532.2 $ 808.4 Acquisition of business 98.6 — 98.6 Foreign currency translation (3.5) — (3.5) Goodwill as of June 30, 2024 $ 371.3 $ 532.2 $ 903.5 |
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets are as follows: June 30, 2024 December 31, 2023 Gross Accumulated Gross Accumulated (in millions) Definite-Lived: Customer relationships $ 496.8 $ 197.7 $ 486.6 $ 184.8 Existing technology 570.4 125.6 465.2 106.1 Trademarks 69.6 32.2 64.9 29.6 Other 28.4 22.0 27.4 20.9 1,165.2 377.5 1,044.1 341.4 Indefinite-Lived: In-process research and development 14.0 — — — Trademarks 30.8 — 30.8 — Total $ 1,210.0 $ 377.5 $ 1,074.9 $ 341.4 |
Schedule of Indefinite-Lived Intangible Assets | Identifiable intangible assets are as follows: June 30, 2024 December 31, 2023 Gross Accumulated Gross Accumulated (in millions) Definite-Lived: Customer relationships $ 496.8 $ 197.7 $ 486.6 $ 184.8 Existing technology 570.4 125.6 465.2 106.1 Trademarks 69.6 32.2 64.9 29.6 Other 28.4 22.0 27.4 20.9 1,165.2 377.5 1,044.1 341.4 Indefinite-Lived: In-process research and development 14.0 — — — Trademarks 30.8 — 30.8 — Total $ 1,210.0 $ 377.5 $ 1,074.9 $ 341.4 |
Schedule of Estimated Amortization Expense of Intangible Assets | The estimated amortization expense for definite-lived (amortized) intangible assets for the next five years is as follows (in millions): 2024 $ 77.1 2025 $ 76.8 2026 $ 73.1 2027 $ 72.5 2028 $ 71.8 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | June 30, December 31, (in millions) Salaries, wages and employee benefits $ 37.3 $ 56.0 Interest 4.4 4.2 Environmental 10.0 8.2 Income taxes 12.9 10.0 Taxes other than income taxes 6.0 5.1 Operating lease liabilities 10.0 10.0 Other 22.4 26.1 $ 103.0 $ 119.6 |
Pension (Tables)
Pension (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 quarters and six months ended June 30, 2024 and 2023, are as follows: Quarters Ended June 30, Six Months Ended June 30, Pension Benefits Pension Benefits 2024 2023 2024 2023 (in millions) Service cost $ 0.1 $ 0.2 $ 0.2 $ 0.3 Interest cost 3.2 3.5 6.4 6.8 Expected return on plan assets (3.5) (3.5) (7.1) (6.9) Amortization of net loss 0.4 0.4 0.8 0.8 Net periodic benefit cost $ 0.2 $ 0.6 $ 0.3 $ 1.0 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The quarterly changes in shareholders' equity during the six months ended June 30, 2024 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2023 21.0 $ 0.2 $ 304.9 $ 1,128.0 $ (22.2) $ (1.2) $ 1,409.7 $ 17.9 Net income — — — 12.5 — — 12.5 — Other comprehensive loss — — — — (3.5) — (3.5) — Dividends ($0.30 per share) — — — (6.3) — — (6.3) — Incentive plan activity — — 1.5 — — — 1.5 — Acquisition of Alluxa minority ownership — — — — — — — (17.9) Balance, March 31, 2024 21.0 $ 0.2 $ 306.4 $ 1,134.2 $ (25.7) $ (1.2) $ 1,413.9 $ — Net income — — — 26.7 — — 26.7 — Other comprehensive loss — — — — (8.1) — (8.1) — Dividends ($0.30 per share) — — — (6.3) — (6.3) — Share repurchases — — — — — — — — Incentive plan activity — — 4.2 — — — 4.2 — Balance, June 30, 2024 21.0 $ 0.2 $ 310.6 $ 1,154.6 $ (33.8) $ (1.2) $ 1,430.4 $ — The quarterly changes in shareholders' equity during the six months ended June 30, 2023 are as follows: Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Shareholders' Equity Redeemable Non-controlling Interests (in millions, except per share data) Shares Amount Balance, December 31, 2022 20.8 $ 0.2 $ 299.2 $ 1,130.2 $ (33.3) $ (1.2) $ 1,395.1 $ 17.9 Net income — — — 37.4 — — 37.4 — Other comprehensive income — — — — 7.1 — 7.1 — Dividends ($0.29 per share) — — — (6.1) — — (6.1) — Incentive plan activity 0.1 — 1.6 — — — 1.6 — Balance, March 31, 2023 20.9 $ 0.2 $ 300.8 $ 1,161.5 $ (26.2) $ (1.2) $ 1,435.1 $ 17.9 Net loss — — — (18.6) — — (18.6) (4.2) Other comprehensive income — — — — 5.1 — 5.1 — Dividends ($0.29 per share) — — — (6.1) — (6.1) — Incentive plan activity — — 3.1 — — — 3.1 — Other — — (4.2) — — — (4.2) 4.2 Balance, June 30, 2023 20.9 $ 0.2 $ 299.7 $ 1,136.8 $ (21.1) $ (1.2) $ 1,414.4 $ 17.9 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used to estimate the fair value of the 2024 option awards: Average expected term 6 years Expected volatility 40.61 % Risk-free interest rate 4.33 % Expected dividend yield 0.77 % |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Results and Other Financial Data | Segment operating results and other financial data for the quarters and six months ended June 30, 2024 and 2023 were as follows: Quarters Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Sales Sealing Technologies $ 184.0 $ 176.7 $ 355.6 $ 350.0 Advanced Surface Technologies 88.1 100.3 174.1 209.7 272.1 277.0 529.7 559.7 Intersegment sales (0.2) (0.1) (0.3) (0.2) Total sales $ 271.9 $ 276.9 $ 529.4 $ 559.5 Adjusted Segment EBITDA Sealing Technologies $ 65.4 $ 56.3 $ 118.4 $ 106.0 Advanced Surface Technologies 19.1 24.1 36.4 53.5 $ 84.5 $ 80.4 $ 154.8 $ 159.5 Reconciliation of Income (Loss) from Continuing Operations Before Income Taxes to Adjusted Segment EBITDA Income (loss) from continuing operations before income taxes $ 36.4 $ (28.6) $ 50.7 $ 5.5 Acquisition expenses 0.2 — 3.5 — Non-controlling interest compensation allocation — (0.7) — (0.3) Amortization of fair value adjustment to acquisition date inventory — — 1.7 — Restructuring expense 0.6 0.3 1.1 0.7 Depreciation and amortization expense 25.2 23.8 49.8 47.3 Corporate expenses 10.5 15.6 22.7 26.6 Interest expense, net 9.5 8.6 17.7 16.5 Goodwill impairment — 60.8 — 60.8 Other expense, net 2.1 0.6 7.6 2.4 Adjusted Segment EBITDA $ 84.5 $ 80.4 $ 154.8 $ 159.5 |
Schedule of Total Assets Segment | Segment assets are as follows: June 30, 2024 December 31, 2023 (in millions) Sealing Technologies $ 928.3 $ 687.1 Advanced Surface Technologies 1,353.8 1,385.9 Corporate 239.8 426.5 $ 2,521.9 $ 2,499.5 |
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 quarters and six months ended June 30, 2024 and June 30, 2023: Quarter Ended June 30, 2024 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 13.9 $ 3.2 $ 17.1 Chemical and material processing 22.0 — 22.0 Food and pharmaceutical 18.0 — 18.0 General industrial 44.7 6.4 51.1 Commercial vehicle 48.0 — 48.0 Oil and gas 14.8 1.5 16.3 Power generation 19.9 — 19.9 Semiconductors 2.7 76.8 79.5 Total third-party sales $ 184.0 $ 87.9 $ 271.9 Quarter Ended June 30, 2023 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 13.7 $ 2.4 $ 16.1 Chemical and material processing 22.9 — 22.9 Food and pharmaceutical 16.2 — 16.2 General industrial 44.3 6.0 50.3 Commercial vehicle 53.3 — 53.3 Oil and gas 4.7 2.9 7.6 Power generation 19.5 — 19.5 Semiconductors 2.1 88.9 91.0 Total third-party sales $ 176.7 $ 100.2 $ 276.9 Six Months Ended June 30, 2024 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 28.1 $ 6.0 $ 34.1 Chemical and material processing 44.3 — 44.3 Food and pharmaceutical 35.0 — 35.0 General industrial 86.2 12.5 98.7 Commercial vehicle 92.9 — 92.9 Oil and gas 27.1 3.0 30.1 Power generation 37.4 — 37.4 Semiconductors 4.6 152.3 156.9 Total third-party sales $ 355.6 $ 173.8 $ 529.4 Six Months Ended June 30, 2023 (in millions) Sealing Technologies Advanced Surface Technologies Total Aerospace $ 26.2 $ 4.0 $ 30.2 Chemical and material processing 44.5 — 44.5 Food and pharmaceutical 34.9 — 34.9 General industrial 88.2 14.8 103.0 Commercial vehicle 105.7 — 105.7 Oil and gas 10.6 4.5 15.1 Power generation 35.6 — 35.6 Semiconductors 4.3 186.2 190.5 Total third-party sales $ 350.0 $ 209.5 $ 559.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 December 31, 2023 (in millions) Assets Foreign currency derivatives $ 5.6 $ 3.1 Deferred compensation assets 14.3 12.5 $ 19.9 $ 15.6 Liabilities Deferred compensation liabilities $ 14.9 $ 13.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in accumulated other comprehensive income (loss) by component (after tax) for the quarter ended June 30, 2024 are as follows: (in millions) Unrealized Pension Total Beginning balance $ 20.3 $ (46.0) $ (25.7) Other comprehensive income before reclassifications (8.3) — (8.3) Amounts reclassified from accumulated other comprehensive loss — 0.2 0.2 Net current-period other comprehensive income attributable to Enpro Inc. (8.3) 0.2 (8.1) Ending balance $ 12.0 $ (45.8) $ (33.8) Changes in accumulated other comprehensive income (loss) by component (after tax) for the quarter ended June 30, 2023 are as follows: (in millions) Unrealized Pension Total Beginning balance $ 18.6 $ (44.8) $ (26.2) Other comprehensive loss before reclassifications 4.8 — 4.8 Amounts reclassified from accumulated other comprehensive income — 0.3 0.3 Net current-period other comprehensive income attributable to Enpro Inc. 4.8 0.3 5.1 Ending balance $ 23.4 $ (44.5) $ (21.1) Changes in accumulated other comprehensive income (loss) by component (after tax) for the six months ended June 30, 2024 are as follows: (in millions) Unrealized Pension Total Beginning balance $ 24.1 $ (46.3) $ (22.2) Other comprehensive loss before reclassifications (12.1) — (12.1) Amounts reclassified from accumulated other comprehensive loss — 0.5 0.5 Net current-period other comprehensive income (12.1) 0.5 (11.6) Ending balance $ 12.0 $ (45.8) $ (33.8) Changes in accumulated other comprehensive income (loss) by component (after tax) for the six months ended June 30, 2023 are as follows: (in millions) Unrealized Pension Total Beginning balance $ 11.8 $ (45.1) $ (33.3) Other comprehensive income before reclassifications 11.6 — 11.6 Amounts reclassified from accumulated other comprehensive (loss) — 0.6 0.6 Net current-period other comprehensive income 11.6 0.6 12.2 Ending balance $ 23.4 $ (44.5) $ (21.1) |
Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of accumulated other comprehensive income (loss) for the quarters and six months ended June 30, 2024 and June 30, 2023 are as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Affected Statement of Quarters Ended Six Months Ended (in millions) 2024 2023 2024 2023 Pension adjustments: Actuarial losses $ 0.4 $ 0.4 $ 0.8 $ 0.8 Other expense Total before tax 0.4 0.4 0.8 0.8 Income before income taxes Tax expense (0.2) (0.1) (0.3) (0.2) Income tax benefit (expense) Net of tax $ 0.2 $ 0.3 $ 0.5 $ 0.6 Net income |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Product Warranty Liability | Changes in the product warranty liability for the six months ended June 30, 2024 and 2023 are as follows: 2024 2023 (in millions) Balance at beginning of year $ 6.4 $ 5.2 Net charges to expense 0.4 1.0 Settlements made (0.7) (0.9) Balance at end of period $ 6.1 $ 5.3 |
Divestitures (Tables)
Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | For the six months ended June 30, 2023, the results of operations from the discontinued Engineered Materials segment were as follows: (in millions) 2023 Net sales $ 2.0 Cost of sales 1.3 Gross profit 0.7 Operating expenses: Selling, general and administrative 0.4 Total operating expenses 0.4 Income from discontinued operation before income tax 0.3 Income tax expense (0.1) Income from discontinued operations, net of tax 0.2 Gain from sale of discontinued operation, net of tax 11.2 Income from discontinued operations, including gain on sale, net of tax $ 11.4 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jan. 29, 2024 | Feb. 29, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Oct. 31, 2020 | Oct. 25, 2020 | |
Business Acquisition | |||||||||
Acquisition | $ 209.4 | $ 0 | |||||||
Goodwill | $ 903.5 | 903.5 | $ 808.4 | ||||||
Acquisition Subsidiary | Alluxa Inc | |||||||||
Business Acquisition | |||||||||
Ownership interest, minority interest | 7% | ||||||||
Advanced Micro Instruments Inc | |||||||||
Business Acquisition | |||||||||
Acquisition | $ 209.4 | ||||||||
Acquisition cost | 0.2 | 3.5 | |||||||
Goodwill | 98.6 | ||||||||
Other intangible assets | $ 138.1 | ||||||||
Inventory adjustments | $ 1.7 | ||||||||
Increase deferred income tax liabilities | 3 | ||||||||
Increase to goodwill | 3 | ||||||||
Sale | 9.5 | 16.8 | |||||||
Pre-tax income | $ 2.9 | $ 3.7 | |||||||
Alluxa Inc | |||||||||
Business Acquisition | |||||||||
Acquisition | $ 17.9 | ||||||||
Alluxa Inc | 2024 | |||||||||
Business Acquisition | |||||||||
Percentage of equity interest sellable by executive (percent) | 33.33% | ||||||||
Alluxa Inc | 2025 | |||||||||
Business Acquisition | |||||||||
Percentage of equity interest sellable by executive (percent) | 33.33% | ||||||||
Alluxa Inc | 2026 | |||||||||
Business Acquisition | |||||||||
Percentage of equity interest sellable by executive (percent) | 33.33% |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets Acquired (Details) - Advanced Micro Instruments Inc $ in Millions | Jan. 29, 2024 USD ($) |
Business Acquisition | |
Total definite-lived intangible assets | $ 124.1 |
Weighted average amortization period (in years) | 14 years 8 months 12 days |
Identifiable intangible assets acquired | $ 138.1 |
In-process research and development | |
Business Acquisition | |
In-process research and development | 14 |
Customer relationships | |
Business Acquisition | |
Total definite-lived intangible assets | $ 12 |
Weighted average amortization period (in years) | 15 years |
Existing technology | |
Business Acquisition | |
Total definite-lived intangible assets | $ 106 |
Weighted average amortization period (in years) | 15 years |
Trademarks | |
Business Acquisition | |
Total definite-lived intangible assets | $ 5 |
Weighted average amortization period (in years) | 10 years |
Other | |
Business Acquisition | |
Total definite-lived intangible assets | $ 1.1 |
Weighted average amortization period (in years) | 3 years 3 months 18 days |
Acquisitions - Recognized Ident
Acquisitions - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jan. 29, 2024 | Dec. 31, 2023 |
Business Acquisition | |||
Goodwill | $ 903.5 | $ 808.4 | |
Advanced Micro Instruments Inc | |||
Business Acquisition | |||
Accounts receivable | $ 3.3 | ||
Inventories | 5.2 | ||
Property, plant, and equipment | 0.2 | ||
Goodwill | 98.6 | ||
Other intangible assets | 138.1 | ||
Other assets | 0.6 | ||
Deferred income taxes | (34.9) | ||
Liabilities assumed | (1.7) | ||
Purchase price allocation | $ 209.4 |
Acquisitions - Proforma Results
Acquisitions - Proforma Results (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition, Pro Forma Information | ||||
Pro forma net sales | $ 271.9 | $ 285.2 | $ 532.2 | $ 576.9 |
Pro forma income (loss) from continuing operations | $ 26.9 | $ (23.6) | $ 41.6 | $ 0.7 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 26.70% | 20% | 22.70% | 43% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator (basic and diluted): | ||||
Income (loss) from continuing operations | $ 26.7 | $ (22.8) | $ 39.2 | $ 3.2 |
Less: net loss attributable to redeemable non-controlling interests | 0 | (4.2) | 0 | (4.2) |
Income (loss) from continuing operations attributable to Enpro Inc. | 26.7 | (18.6) | 39.2 | 7.4 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 11.4 |
Net income (loss) | 26.7 | (18.6) | 39.2 | 18.8 |
Net income (loss) | $ 26.7 | $ (18.6) | $ 39.2 | $ 18.8 |
Denominator: | ||||
Weighted-average shares – basic (in shares) | 21 | 20.9 | 20.9 | 20.9 |
Share-based awards (in shares) | 0.1 | 0 | 0.2 | 0 |
Weighted-average shares – diluted (in shares) | 21.1 | 20.9 | 21.1 | 20.9 |
Basic earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | $ 1.27 | $ (0.89) | $ 1.87 | $ 0.35 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.55 |
Net income (loss) per share (in dollars per share) | 1.27 | (0.89) | 1.87 | 0.90 |
Diluted earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | 1.27 | (0.89) | 1.86 | 0.35 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.55 |
Net income (loss) per share (in dollars per share) | $ 1.27 | $ (0.89) | $ 1.86 | $ 0.90 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 53.3 | $ 53.6 |
Work in process | 30.1 | 28.4 |
Raw materials | 61.2 | 60.6 |
Total inventories | $ 144.6 | $ 142.6 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 808.4 |
Acquisition of business | 98.6 |
Foreign currency translation | (3.5) |
Goodwill, ending balance | 903.5 |
Sealing Technologies | |
Goodwill | |
Goodwill, beginning balance | 276.2 |
Acquisition of business | 98.6 |
Foreign currency translation | (3.5) |
Goodwill, ending balance | 371.3 |
Advanced Surface Technologies | |
Goodwill | |
Goodwill, beginning balance | 532.2 |
Acquisition of business | 0 |
Foreign currency translation | 0 |
Goodwill, ending balance | $ 532.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information | ||||
Amortization expense | $ 19.1 | $ 17.3 | $ 37.7 | $ 34.7 |
Sealing Technologies | ||||
Segment Reporting Information | ||||
Accumulated impairment losses | 27.8 | 27.8 | ||
Advanced Surface Technologies | ||||
Segment Reporting Information | ||||
Accumulated impairment losses | $ 126 | $ 126 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Definite-Lived: | ||
Gross Carrying Amount | $ 1,165.2 | $ 1,044.1 |
Accumulated Amortization | 377.5 | 341.4 |
Indefinite-Lived: | ||
Total | 1,210 | 1,074.9 |
In-process research and development | ||
Indefinite-Lived: | ||
Indefinite-Lived: | 14 | 0 |
Trademarks | ||
Indefinite-Lived: | ||
Indefinite-Lived: | 30.8 | 30.8 |
Customer relationships | ||
Definite-Lived: | ||
Gross Carrying Amount | 496.8 | 486.6 |
Accumulated Amortization | 197.7 | 184.8 |
Existing technology | ||
Definite-Lived: | ||
Gross Carrying Amount | 570.4 | 465.2 |
Accumulated Amortization | 125.6 | 106.1 |
Trademarks | ||
Definite-Lived: | ||
Gross Carrying Amount | 69.6 | 64.9 |
Accumulated Amortization | 32.2 | 29.6 |
Other | ||
Definite-Lived: | ||
Gross Carrying Amount | 28.4 | 27.4 |
Accumulated Amortization | $ 22 | $ 20.9 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense of Intangible Assets (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2024 | $ 77.1 |
2025 | 76.8 |
2026 | 73.1 |
2027 | 72.5 |
2028 | $ 71.8 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 37.3 | $ 56 |
Interest | 4.4 | 4.2 |
Environmental | 10 | 8.2 |
Income taxes | 12.9 | 10 |
Taxes other than income taxes | 6 | 5.1 |
Operating lease liabilities | 10 | 10 |
Other | 22.4 | 26.1 |
Accrued expenses | $ 103 | $ 119.6 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facilities (Details) - USD ($) | 6 Months Ended | ||||
Jul. 26, 2023 | Nov. 08, 2022 | Dec. 17, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | |
Line of Credit Facility | |||||
Repayments of long-term debt | $ 38,600,000 | $ 7,900,000 | |||
Interest | 19,900,000 | $ 23,300,000 | |||
364-Day Facility | Line of Credit | |||||
Line of Credit Facility | |||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | ||||
364-Day Facility | Line of Credit | LIBOR | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 1.75% | ||||
364-Day Facility | Line of Credit | Base Rate | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 0.75% | ||||
Term Loan | Line of Credit | LIBOR | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 1.50% | ||||
Term Loan | Line of Credit | Base Rate | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 0.50% | ||||
Term Loan | Line of Credit | SOFR | |||||
Line of Credit Facility | |||||
Variable rate on debt (as a percent) | 0.10% | ||||
Debt instrument, interest rate (as a percent) | 1.75% | ||||
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% | ||||
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 | ||||
Credit facility borrowing capacity | 372,000,000 | ||||
Letter of credit outstanding | 10,000,000 | ||||
Outstanding borrowings | 18,000,000 | ||||
Line of Credit | Revolving Credit Facility | SOFR | |||||
Line of Credit Facility | |||||
Line of credit facility, unused capacity, commitment fee (as a percent) | 0.225% | ||||
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, year one, percentage of principal (as a percent) | 2.50% | ||||
Debt instrument, periodic payment, years two, percentage of principal (as a percent) | 5% | ||||
Debt instrument, periodic payment, years three, percentage of principal (as a percent) | 1.25% | ||||
Repayments of long-term debt | $ 133,100,000 | ||||
Interest | $ 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, year one through three, percentage of principal (as a percent) | 2.50% | ||||
Debt instrument, periodic payment, year four, percentage of principal (as a percent) | 5% | ||||
Debt instrument, periodic payment, year five, percentage of principal (as a percent) | 1.25% | ||||
Outstanding borrowings | $ 295,300,000 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - Senior Notes | Oct. 17, 2018 USD ($) |
Line of Credit Facility | |
Senior notes | $ 350,000,000 |
Interest rate (as a percent) | 5.75% |
Before October 15, 2021 | |
Line of Credit Facility | |
Redemption price (as a percent) | 100% |
Pension - Schedule of Net Perio
Pension - Schedule of Net Periodic Benefit Cost (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure | ||||
Service cost | $ 0.1 | $ 0.2 | $ 0.2 | $ 0.3 |
Interest cost | 3.2 | 3.5 | 6.4 | 6.8 |
Expected return on plan assets | (3.5) | (3.5) | (7.1) | (6.9) |
Amortization of net loss | 0.4 | 0.4 | 0.8 | 0.8 |
Net periodic benefit cost | $ 0.2 | $ 0.6 | $ 0.3 | $ 1 |
Pension - Additional Informatio
Pension - Additional Information (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Retirement Benefits [Abstract] | |
Pension assets recorded in other assets | $ 16.5 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 1,413.9 | $ 1,409.7 | $ 1,435.1 | $ 1,395.1 | $ 1,409.7 | $ 1,395.1 |
Net income (loss) | 26.7 | 12.5 | (18.6) | 37.4 | 39.2 | 18.8 |
Other comprehensive income (loss) | (8.1) | (3.5) | 5.1 | 7.1 | ||
Dividends | (6.3) | (6.3) | (6.1) | (6.1) | ||
Share repurchases | 0 | |||||
Incentive plan activity | 4.2 | 1.5 | 3.1 | 1.6 | ||
Other | (4.2) | |||||
Ending balance | 1,430.4 | 1,413.9 | 1,414.4 | 1,435.1 | 1,430.4 | 1,414.4 |
Redeemable Non-controlling Interests | ||||||
Beginning balance | 0 | 17.9 | 17.9 | 17.9 | 17.9 | 17.9 |
Net income (loss) | 0 | (4.2) | ||||
Other comprehensive income | 0 | |||||
Acquisition of Alluxa minority ownership | (17.9) | |||||
Other | 4.2 | |||||
Ending Balance | $ 0 | $ 0 | $ 17.9 | $ 17.9 | 0 | 17.9 |
Cash dividends per share, declared (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.29 | $ 0.29 | ||
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |
Beginning balance (in shares) | 21 | 21 | 20.9 | 20.8 | 21 | 20.8 |
Incentive plan activity (in shares) | 0.1 | |||||
Ending balance | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |
Ending balance (in shares) | 21 | 21 | 20.9 | 20.9 | 21 | 20.9 |
Additional Paid-in Capital | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 306.4 | $ 304.9 | $ 300.8 | $ 299.2 | $ 304.9 | $ 299.2 |
Incentive plan activity | 4.2 | 1.5 | 3.1 | 1.6 | ||
Other | (4.2) | |||||
Ending balance | 310.6 | 306.4 | 299.7 | 300.8 | 310.6 | 299.7 |
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 1,134.2 | 1,128 | 1,161.5 | 1,130.2 | 1,128 | 1,130.2 |
Net income (loss) | 26.7 | 12.5 | (18.6) | 37.4 | ||
Dividends | (6.3) | (6.3) | (6.1) | (6.1) | ||
Other | 0 | |||||
Ending balance | 1,154.6 | 1,134.2 | 1,136.8 | 1,161.5 | 1,154.6 | 1,136.8 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (25.7) | (22.2) | (26.2) | (33.3) | (22.2) | (33.3) |
Other comprehensive income (loss) | (8.1) | (3.5) | 5.1 | 7.1 | ||
Ending balance | (33.8) | (25.7) | (21.1) | (26.2) | (33.8) | (21.1) |
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (1.2) | (1.2) | (1.2) | (1.2) | (1.2) | (1.2) |
Ending balance | $ (1.2) | $ (1.2) | $ (1.2) | $ (1.2) | $ (1.2) | $ (1.2) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Aug. 06, 2024 | Feb. 29, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Oct. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Dividends paid | $ 12.7 | $ 12.2 | ||||||||
Cash dividends per share, declared (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.29 | $ 0.29 | ||||||
Shares authorized for repurchase (in shares) | 50,000,000 | |||||||||
Shares authorized for repurchase, vesting period (in years) | 3 years | |||||||||
Employee Stock Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Average expected term (in years) | 6 years | |||||||||
Fair value (in dollars per share) | $ 66.84 | |||||||||
Key Executives | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Options issued (in shares) | 50,000 | |||||||||
Exercise price (in dollars per share) | $ 156.20 | |||||||||
Option term (in years) | 10 years | |||||||||
Subsequent Event | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Cash dividends per share, declared (in dollars per share) | $ 0.30 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Assumptions (Details) - Employee Stock Options | 6 Months Ended |
Jun. 30, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Average expected term (in years) | 6 years |
Expected volatility (as a percent) | 40.61% |
Risk-free interest rate (as a percent) | 4.33% |
Expected dividend yield (as a percent) | 0.77% |
Business Segment Information -
Business Segment Information - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | |
Segment Reporting Information | ||||
Number of operating segments | segment | 2 | |||
Adjusted Segment EBITDA | $ 84.5 | $ 80.4 | $ 154.8 | $ 159.5 |
Corporate | ||||
Segment Reporting Information | ||||
Corporate expenses | $ 10.5 | 15.6 | $ 22.7 | 26.6 |
Sealing Technologies | Corporate | Adjustment | ||||
Segment Reporting Information | ||||
Adjusted Segment EBITDA | 0.1 | 0.1 | ||
Corporate expenses | $ 0.6 | |||
Advanced Surface Technologies | Corporate | Adjustment | ||||
Segment Reporting Information | ||||
Adjusted Segment EBITDA | (0.1) | |||
Corporate expenses | $ 0.9 |
Business Segment Information _2
Business Segment Information - Schedule of Segment Operating Results and Other Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information | ||||
Total third-party sales | $ 271.9 | $ 276.9 | $ 529.4 | $ 559.5 |
Income (loss) from continuing operations before income taxes | 36.4 | (28.6) | 50.7 | 5.5 |
Acquisition expenses | 0.2 | 0 | 3.5 | 0 |
Non-controlling interest compensation allocation | 0 | (0.7) | 0 | (0.3) |
Amortization of fair value adjustment to acquisition date inventory | 0 | 0 | 1.7 | 0 |
Restructuring expense | 0.6 | 0.3 | 1.1 | 0.7 |
Depreciation and amortization expense | 25.2 | 23.8 | 49.8 | 47.3 |
Interest expense, net | 9.5 | 8.6 | 17.7 | 16.5 |
Goodwill impairment | 0 | 60.8 | 0 | 60.8 |
Other expense, net | 2.1 | 0.6 | 7.6 | 2.4 |
Adjusted Segment EBITDA | 84.5 | 80.4 | 154.8 | 159.5 |
Sealing Technologies | ||||
Segment Reporting Information | ||||
Total third-party sales | 184 | 176.7 | 355.6 | 350 |
Advanced Surface Technologies | ||||
Segment Reporting Information | ||||
Total third-party sales | 87.9 | 100.2 | 173.8 | 209.5 |
Operating Segments | ||||
Segment Reporting Information | ||||
Total third-party sales | 272.1 | 277 | 529.7 | 559.7 |
Operating Segments | Sealing Technologies | ||||
Segment Reporting Information | ||||
Total third-party sales | 184 | 176.7 | 355.6 | 350 |
Adjusted Segment EBITDA | 65.4 | 56.3 | 118.4 | 106 |
Operating Segments | Advanced Surface Technologies | ||||
Segment Reporting Information | ||||
Total third-party sales | 88.1 | 100.3 | 174.1 | 209.7 |
Adjusted Segment EBITDA | 19.1 | 24.1 | 36.4 | 53.5 |
Intersegment sales | ||||
Segment Reporting Information | ||||
Total third-party sales | (0.2) | (0.1) | (0.3) | (0.2) |
Corporate | ||||
Segment Reporting Information | ||||
Corporate expenses | 10.5 | 15.6 | 22.7 | 26.6 |
Segment Reconciling Items | ||||
Segment Reporting Information | ||||
Other expense, net | $ 2.1 | $ 0.6 | $ 7.6 | $ 2.4 |
Business Segment Information _3
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Segment Reporting Information | ||
Assets | $ 2,521.9 | $ 2,499.5 |
Operating Segments | Sealing Technologies | ||
Segment Reporting Information | ||
Assets | 928.3 | 687.1 |
Operating Segments | Advanced Surface Technologies | ||
Segment Reporting Information | ||
Assets | 1,353.8 | 1,385.9 |
Corporate | ||
Segment Reporting Information | ||
Assets | $ 239.8 | $ 426.5 |
Business Segment Information _4
Business Segment Information - Revenue by End Market (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue | ||||
Total third-party sales | $ 271.9 | $ 276.9 | $ 529.4 | $ 559.5 |
Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 184 | 176.7 | 355.6 | 350 |
Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 87.9 | 100.2 | 173.8 | 209.5 |
Aerospace | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 17.1 | 16.1 | 34.1 | 30.2 |
Aerospace | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 13.9 | 13.7 | 28.1 | 26.2 |
Aerospace | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 3.2 | 2.4 | 6 | 4 |
Chemical and material processing | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 22 | 22.9 | 44.3 | 44.5 |
Chemical and material processing | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 22 | 22.9 | 44.3 | 44.5 |
Chemical and material processing | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 0 | 0 | 0 | 0 |
Food and pharmaceutical | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 18 | 16.2 | 35 | 34.9 |
Food and pharmaceutical | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 18 | 16.2 | 35 | 34.9 |
Food and pharmaceutical | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 0 | 0 | 0 | 0 |
General industrial | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 51.1 | 50.3 | 98.7 | 103 |
General industrial | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 44.7 | 44.3 | 86.2 | 88.2 |
General industrial | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 6.4 | 6 | 12.5 | 14.8 |
Commercial vehicle | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 48 | 53.3 | 92.9 | 105.7 |
Commercial vehicle | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 48 | 53.3 | 92.9 | 105.7 |
Commercial vehicle | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 0 | 0 | 0 | 0 |
Oil and gas | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 16.3 | 7.6 | 30.1 | 15.1 |
Oil and gas | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 14.8 | 4.7 | 27.1 | 10.6 |
Oil and gas | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 1.5 | 2.9 | 3 | 4.5 |
Power generation | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 19.9 | 19.5 | 37.4 | 35.6 |
Power generation | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 19.9 | 19.5 | 37.4 | 35.6 |
Power generation | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 0 | 0 | 0 | 0 |
Semiconductors | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 79.5 | 91 | 156.9 | 190.5 |
Semiconductors | Sealing Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | 2.7 | 2.1 | 4.6 | 4.3 |
Semiconductors | Advanced Surface Technologies | ||||
Disaggregation of Revenue | ||||
Total third-party sales | $ 76.8 | $ 88.9 | $ 152.3 | $ 186.2 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) € in Millions | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | May 31, 2019 EUR (€) | May 31, 2019 USD ($) |
Original Swap | |||||
Derivative | |||||
Amount of hedged item | € | € 95 | ||||
Foreign Exchange Forward | |||||
Derivative | |||||
Notional amount | $ 107,300,000 | $ 110,500,000 | |||
Additional Swap | |||||
Derivative | |||||
Amount of hedged item | € | € 89.6 | ||||
Derivative liability, notional amount | $ 100,000,000 | ||||
Weighted average interest rate (as a percent) | 3.50% | 3.50% | |||
Derivative asset, noncurrent | $ 5,600,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Foreign currency derivatives | $ 5.6 | $ 3.1 |
Deferred compensation assets | 14.3 | 12.5 |
Assets | 19.9 | 15.6 |
Liabilities | ||
Deferred compensation liabilities | $ 14.9 | $ 13.3 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Income | ||||||
Beginning balance | $ 1,413.9 | $ 1,409.7 | $ 1,435.1 | $ 1,395.1 | $ 1,409.7 | $ 1,395.1 |
Other comprehensive (loss) income before reclassifications | (8.3) | 4.8 | (12.1) | 11.6 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0.2 | 0.3 | 0.5 | 0.6 | ||
Net current-period other comprehensive income | (11.6) | 12.2 | ||||
Net current-period other comprehensive income attributable to Enpro Inc. | (8.1) | (3.5) | 5.1 | 7.1 | ||
Ending balance | 1,430.4 | 1,413.9 | 1,414.4 | 1,435.1 | 1,430.4 | 1,414.4 |
Total | ||||||
Accumulated Other Comprehensive Income | ||||||
Beginning balance | (25.7) | (22.2) | (26.2) | (33.3) | (22.2) | (33.3) |
Net current-period other comprehensive income attributable to Enpro Inc. | (8.1) | (3.5) | 5.1 | 7.1 | ||
Ending balance | (33.8) | (25.7) | (21.1) | (26.2) | (33.8) | (21.1) |
Unrealized Translation Adjustments | ||||||
Accumulated Other Comprehensive Income | ||||||
Beginning balance | 20.3 | 24.1 | 18.6 | 11.8 | 24.1 | 11.8 |
Other comprehensive (loss) income before reclassifications | (8.3) | 4.8 | (12.1) | 11.6 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Net current-period other comprehensive income | (12.1) | 11.6 | ||||
Net current-period other comprehensive income attributable to Enpro Inc. | (8.3) | 4.8 | ||||
Ending balance | 12 | 20.3 | 23.4 | 18.6 | 12 | 23.4 |
Pension Plans | ||||||
Accumulated Other Comprehensive Income | ||||||
Beginning balance | (46) | (46.3) | (44.8) | (45.1) | (46.3) | (45.1) |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0.2 | 0.3 | 0.5 | 0.6 | ||
Net current-period other comprehensive income | 0.5 | 0.6 | ||||
Net current-period other comprehensive income attributable to Enpro Inc. | 0.2 | 0.3 | ||||
Ending balance | $ (45.8) | $ (46) | $ (44.5) | $ (44.8) | $ (45.8) | $ (44.5) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Actuarial losses | $ (2.1) | $ (0.6) | $ (7.6) | $ (2.4) |
Tax expense | (9.7) | 5.8 | (11.5) | (2.3) |
Net income (loss) | 26.7 | (22.8) | 39.2 | 14.6 |
Reclassification Out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Total before tax | 0.4 | 0.4 | 0.8 | 0.8 |
Tax expense | (0.2) | (0.1) | (0.3) | (0.2) |
Net income (loss) | 0.2 | 0.3 | 0.5 | 0.6 |
Reclassification Out of Accumulated Other Comprehensive Income | Actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Actuarial losses | $ 0.4 | $ 0.4 | $ 0.8 | $ 0.8 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Apr. 14, 2021 USD ($) mi | Jun. 30, 2018 party | Mar. 03, 2016 USD ($) | Apr. 11, 2014 USD ($) mi | Sep. 30, 2022 USD ($) | Oct. 31, 2016 USD ($) | Jun. 30, 2024 USD ($) site mine facility mi | Jun. 30, 2024 USD ($) site mine facility party mi | Jun. 04, 2024 employee | Dec. 31, 2023 USD ($) | Oct. 18, 2021 | Apr. 30, 2015 USD ($) | |
Site Contingency | ||||||||||||
Number of sites subject to remediation (sites) | site | 19 | 19 | ||||||||||
Number of sites, cost in excess of 100K (sites) | site | 14 | 14 | ||||||||||
Cost per site minimis threshold | $ 100,000 | |||||||||||
Number of sites, investigation completed (sites) | site | 15 | 15 | ||||||||||
Number of sites investigation in progress (sites) | site | 4 | 4 | ||||||||||
Site contingency, number of sites subject to remediation activities, contains remediation systems | site | 8 | 8 | ||||||||||
Site contingency, number of sites subject to remediation activities, monitored | site | 7 | 7 | ||||||||||
Number of sites, active operations (sites) | site | 1 | 1 | ||||||||||
Environmental loss accrual | $ 39,100,000 | $ 39,100,000 | $ 39,000,000 | |||||||||
Environmental | 10,000,000 | $ 10,000,000 | $ 8,200,000 | |||||||||
Environmental Loss Contingency Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | Consolidated Balance Sheets | |||||||||||
Loss accrual | 27,200,000 | $ 27,200,000 | ||||||||||
Lower Passaic River | ||||||||||||
Site Contingency | ||||||||||||
Portion of site subject to remediation (miles) | mi | 8 | |||||||||||
Number of other potentially responsible parties | party | 120 | 70 | ||||||||||
Estimate of cost | $ 726,000,000 | |||||||||||
Estimate low end | $ 165,000,000 | |||||||||||
Estimated development time (in years) | 4 years | |||||||||||
Lower Passaic River | Minimum | ||||||||||||
Site Contingency | ||||||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 1,380,000,000 | $ 953,000,000 | ||||||||||
Lower Passaic River | Maximum | ||||||||||||
Site Contingency | ||||||||||||
Site contingency, loss exposure in excess of accrual best estimate | $ 1,730,000,000 | |||||||||||
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 | 700,000 | $ 700,000 | ||||||||||
Settlement payment | $ 5,900,000 | |||||||||||
Arizona Uranium Mines | ||||||||||||
Site Contingency | ||||||||||||
Environmental loss accrual | $ 11,200,000 | $ 11,200,000 | ||||||||||
Investigative sites notice from EPA | mine | 8 | 8 | ||||||||||
Percentage of expenses reimbursable by the U.S. (as a percent) | 35% | |||||||||||
Future contributions from U.S. | $ 2,800,000 | $ 2,800,000 | ||||||||||
Water Valley, Mississippi | ||||||||||||
Site Contingency | ||||||||||||
Number of sites subject to remediation, addition (sites) | site | 2 | 2 | ||||||||||
Loss accrual | $ 12,200,000 | $ 12,200,000 | ||||||||||
Number of former employees (employees) | employee | 8 | |||||||||||
Thorofare, New Jersey | ||||||||||||
Site Contingency | ||||||||||||
Loss accrual | 2,300,000 | $ 2,300,000 | ||||||||||
Loss accrual provision | $ 2,100,000 | |||||||||||
Number of facilities (facilities) | facility | 2 | 2 | ||||||||||
Related Party | Crucible Steel Corporation | ||||||||||||
Site Contingency | ||||||||||||
Number of sites subject to remediation (sites) | site | 19 | 19 | ||||||||||
Portion of site subject to remediation (miles) | mi | 17 | 17 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Changes in Carrying Amount of Product Warranty Liability (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Movement in Standard Product Warranty Accrual | ||
Balance at beginning of year | $ 6.4 | $ 5.2 |
Net charges to expense | 0.4 | 1 |
Settlements made | (0.7) | (0.9) |
Balance at end of year | $ 6.1 | $ 5.3 |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Proceeds from sale of businesses, net | $ 0 | $ 25.7 | |||
Payments to acquire businesses | 209.4 | $ 0 | |||
Discontinued operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Reserve | $ 4.5 | ||||
Net book value of note after reserve | $ 4 | ||||
Discontinued operations | GPT | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Proceeds from sale of businesses, net | $ 28.4 | ||||
Gain (loss) on sales of business | $ 14.6 | ||||
Discontinued operations | Engineered Materials Segment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Payments to acquire businesses | $ 3.1 |
Divestitures - Results of Opera
Divestitures - Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating expenses: | ||||
Income from discontinued operations, including gain on sale, net of tax | $ 0 | $ 0 | $ 0 | $ 11.4 |
Discontinued operations | Engineered Materials Segment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Net sales | 2 | |||
Cost of sales | 1.3 | |||
Gross profit | 0.7 | |||
Operating expenses: | ||||
Selling, general and administrative | 0.4 | |||
Total operating expenses | 0.4 | |||
Income from discontinued operation before income tax | 0.3 | |||
Income tax expense | (0.1) | |||
Income from discontinued operations, net of tax | 0.2 | |||
Gain from sale of discontinued operation, net of tax | 11.2 | |||
Income from discontinued operations, including gain on sale, net of tax | $ 11.4 |