Cover Page
Cover Page - shares | 6 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32253 | |
Entity Registrant Name | EnerSys | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-3058564 | |
Entity Address, Address Line One | 2366 Bernville Road | |
Entity Address, City or Town | Reading | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19605 | |
City Area Code | 610 | |
Local Phone Number | 208-1991 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | ENS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,285,572 | |
Entity Central Index Key | 0001289308 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 424,846 | $ 299,212 |
Accounts receivable, net of allowance for doubtful accounts: September 29, 2019 - $14,296; March 31, 2019 - $10,813 | 585,106 | 624,136 |
Total | 507,081 | 503,869 |
Prepaid and other current assets | 122,777 | 109,431 |
Total current assets | 1,639,810 | 1,536,648 |
Property, plant, and equipment, net | 410,750 | 409,439 |
Goodwill | 649,236 | 656,399 |
Other intangible assets, net | 446,464 | 462,316 |
Deferred taxes | 54,412 | 40,466 |
Other assets | 90,141 | 12,925 |
Total assets | 3,290,813 | 3,118,193 |
Current liabilities: | ||
Short-term debt | 34,351 | 54,490 |
Accounts payable | 276,926 | 292,449 |
Accrued expenses | 254,362 | 265,994 |
Total current liabilities | 565,639 | 612,933 |
Long-term Debt, Excluding Current Maturities | 1,117,818 | 971,756 |
Deferred taxes | 76,649 | 82,112 |
Other liabilities | 211,716 | 165,375 |
Total liabilities | 1,971,822 | 1,832,176 |
Commitments and contingencies | ||
Equity: | ||
Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at September 29, 2019 and at March 31, 2019 | 0 | 0 |
Common Stock, 0.01 par value per share, 135,000,000 shares authorized, 55,085,136 shares issued and 42,281,834 shares outstanding at September 29, 2019; 54,848,523 shares issued and 42,620,750 shares outstanding at March 31, 2019 | 551 | 548 |
Additional paid-in capital | 515,598 | 512,696 |
Treasury stock at cost, 12,803,302 shares held as of September 29, 2019 and 12,227,773 shares held as of March 31, 2019 | (565,108) | (530,760) |
Retained earnings | 1,546,419 | 1,450,325 |
Contra equity - indemnification receivable | (5,838) | (7,840) |
Accumulated other comprehensive income | (176,147) | (142,682) |
Total EnerSys stockholders' equity | 1,315,475 | 1,282,287 |
Noncontrolling interests | 3,516 | 3,730 |
Total equity | 1,318,991 | 1,286,017 |
Total liabilities and equity | $ 3,290,813 | $ 3,118,193 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 762,137 | $ 660,462 | $ 1,542,367 | $ 1,331,392 |
Cost of goods sold | 564,820 | 499,582 | 1,143,538 | 1,004,652 |
Inventory adjustment relating to exit activities | 0 | 526 | ||
Gross profit | 197,317 | 160,880 | 398,829 | 326,214 |
Operating expenses | 132,325 | 96,402 | 263,129 | 195,818 |
Restructuring, exit and other charges | 6,282 | 1,121 | 8,654 | 2,860 |
Operating earnings | 58,710 | 63,357 | 127,046 | 127,536 |
Interest expense | 10,097 | 6,413 | 20,995 | 12,929 |
Other (income) expense, net | 199 | (1,325) | (953) | (997) |
Earnings before income taxes | 48,414 | 58,269 | 107,004 | 115,604 |
Income (benefit) tax expense | (14,284) | 10,822 | (4,330) | 22,137 |
Net earnings | $ 62,698 | 47,447 | 111,334 | 93,467 |
Net earnings attributable to noncontrolling interests | 23 | 0 | 183 | |
Net earnings attributable to EnerSys stockholders | $ 47,424 | $ 111,334 | $ 93,284 | |
Net earnings per common share attributable to EnerSys stockholders: | ||||
Basic earnings (loss) per common share attributable to EnerSys stockholders (in dollars per share) | $ 1.48 | $ 1.13 | $ 2.62 | $ 2.22 |
Diluted earnings (loss) per common share attributable to EnerSys stockholders (in dollars per share) | 1.47 | 1.11 | 2.59 | 2.19 |
Dividends per common share (in dollars per share) | $ 0.175 | $ 0.175 | $ 0.35 | $ 0.35 |
Weighted average shares of common stock outstanding: | ||||
Basic weighted-average number of common shares outstanding (in shares) | 42,392,039 | 42,133,484 | 42,524,189 | 42,073,015 |
Diluted weighted-average number of common shares outstanding (in shares) | 42,708,082 | 42,773,706 | 42,913,258 | 42,673,844 |
Nonredeemable Noncontrolling Interest [Member] | ||||
Net earnings attributable to noncontrolling interests | $ 0 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 14,296 | $ 10,813 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 135,000,000 | 135,000,000 |
Common stock, shares issued (in shares) | 55,080,346 | 54,848,523 |
Common stock, shares outstanding (in shares) | 42,281,834 | 42,620,750 |
Treasury stock (in shares) | 12,803,302 | 12,227,773 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 62,698 | $ 47,447 | $ 111,334 | $ 93,467 |
Other comprehensive (loss) income: | ||||
Net unrealized gain (loss) on derivative instruments, net of tax | 3,586 | (6,179) | 1,257 | (5,174) |
Pension funded status adjustment, net of tax | 237 | 300 | 474 | 600 |
Foreign currency translation adjustment | (32,199) | (14,150) | (35,410) | (86,313) |
Total other comprehensive loss, net of tax | (28,376) | (20,029) | (33,679) | (90,887) |
Total comprehensive income | 34,322 | 27,418 | 77,655 | 2,580 |
Comprehensive loss attributable to noncontrolling interests | (131) | (200) | (214) | (539) |
Comprehensive income attributable to EnerSys stockholders | $ 34,453 | $ 27,618 | $ 77,869 | $ 3,119 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net earnings | $ 111,334 | $ 93,467 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 41,053 | 27,302 |
Write-off of assets relating to exit activities and other | 9,969 | 1,073 |
Derivatives not designated in hedging relationships: | ||
Net losses | 696 | 622 |
Cash settlements | (821) | (760) |
Provision for doubtful accounts | 3,245 | 132 |
Deferred income taxes | (20,973) | 827 |
Non-cash interest expense | 752 | 627 |
Stock-based compensation | 8,868 | 9,129 |
Gain on disposal of property, plant, and equipment | (119) | (77) |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 26,763 | (1,556) |
Inventories | (11,687) | (21,691) |
Prepaid and other current assets | (18,214) | (4,238) |
Other assets | 4,699 | (1,369) |
Accounts payable | (22,005) | 864 |
Accrued expenses | (18,576) | (20,624) |
Other liabilities | (9,922) | 304 |
Net cash provided by operating activities | 105,062 | 84,032 |
Cash flows from investing activities | ||
Capital expenditures | (43,378) | (35,500) |
Proceeds from disposal of property, plant, and equipment | 2,645 | 189 |
Net cash used in investing activities | (40,733) | (35,311) |
Cash flows from financing activities | ||
Net repayments on short-term debt | (20,019) | (2,854) |
Repayments of 2017 Term Loan | (5,645) | 0 |
Option proceeds | 25 | 8,264 |
Payment of taxes related to net share settlement of equity awards | (6,250) | (3,384) |
Purchase of treasury stock | (34,561) | 0 |
Dividends paid to stockholders | (14,898) | (14,747) |
Other | 161 | 30 |
Net cash provided by financing activities | 68,813 | 6,809 |
Effect of exchange rate changes on cash and cash equivalents | (7,508) | (32,465) |
Net increase in cash and cash equivalents | 125,634 | 23,065 |
Cash and cash equivalents at beginning of period | 299,212 | 522,118 |
Cash and cash equivalents at end of period | 424,846 | 545,183 |
Amended Credit Facility, due 2022 | ||
Cash flows from financing activities | ||
Proceeds from 2011 Revolver borrowings | 285,000 | 84,500 |
Repayments of 2011 Revolver borrowings | $ (135,000) | $ (65,000) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments except those otherwise described herein) considered necessary for a fair presentation have been included, unless otherwise disclosed. Operating results for the three months and six months ended September 29, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020 . The Consolidated Condensed Balance Sheet at March 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s 2019 Annual Report on Form 10-K (SEC File No. 001-32253), which was filed on May 29, 2019 (the “ 2019 Annual Report ”). EnerSys (the “Company,”) reports interim financial information for 13-week periods, except for the first quarter, which always begins on April 1, and the fourth quarter, which always ends on March 31. The four quarters in fiscal 2020 end on June 30, 2019, September 29, 2019, December 29, 2019, and March 31, 2020, respectively. The four quarters in fiscal 2019 ended on July 1, 2018, September 30, 2018, December 30, 2018, and March 31, 2019, respectively. The consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries and any partially owned subsidiaries that the Company has the ability to control. All intercompany transactions and balances have been eliminated in consolidation. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). This update requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Effective April 1, 2019, the Company adopted the new standard under the modified retrospective approach, which resulted in no adjustment to the April 1, 2019 beginning Retained Earnings. There are optional practical expedients and policy elections made available to simplify the transition to the new standard. The Company has elected the following: • to adopt the optional transition method defined within ASU 2018-11 and not restate comparative prior periods but instead recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption; • the package of three practical expedients addressing whether a contract contains a lease, lease classification and initial direct costs; • to combine lease and non-lease components as a single component for all asset classes; • to use a portfolio approach to determine the incremental borrowing rate; and • to apply the short-term lease exception to leases that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Upon adoption, the Company recorded Right-of-use (“ROU”) assets and lease liabilities of approximately $84,878 and $87,248 , respectively. In addition, capital lease assets and liabilities are now classified as finance lease right-of-use assets and liabilities. The difference between the operating lease assets and lease liabilities primarily relates to unamortized lease incentives and deferred rent recorded in accordance with the previous lease guidance. Apart from the aforementioned changes, the adoption of this standard did not have a significant impact on the Company's operating results, financial position or cash flows. The discount rates used to calculate the ROU assets and lease liabilities as of the effective date were based on the remaining lease terms as of the effective date. See Note 3, Leases for additional information. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815)”: Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The Company adopted the standard effective April 1, 2019 and the adoption did not have any impact on the Company's operating results, financial position or cash flows. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". The new standard will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”). The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statements users. However, because the amendment only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The Company adopted this standard effective April 1, 2019 with the election not to reclassify $478 of stranded tax effects, primarily related to the Company's pension plans, from accumulated other comprehensive income (“AOCI”) to retained earnings, as the amount was not material. Accounting Pronouncements Issued But Not Adopted as of September 29, 2019 In June 2016, the FASB, issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)”: Measurement of Credit Losses on Financial Instruments, which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In contrast to current guidance, which considers current information and events and utilizes a probable threshold, (an “incurred loss” model), ASU 2016–13 mandates an “expected loss” model. The expected loss model: (i) estimates the risk of loss even when risk is remote, (ii) estimates losses over the contractual life, (iii) considers past events, current conditions and reasonable supported forecasts and (iv) has no recognition threshold. The Company is currently assessing the potential impact that the adoption will have on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” on April 1, 2018 using the modified retrospective transition method. There was no cumulative effect of adopting the standard at the date of initial application in retained earnings. The Company's revenues by reportable segments are presented in Note 17. Service revenues related to the work performed for the Company’s customers by its maintenance technicians generally represent a separate and distinct performance obligation. Control for these services passes to the customer as the services are performed. Service revenues for the second quarter of fiscal 2020 and fiscal 2019 amounted to $61,282 and $37,105 , respectively. Service revenues for the six months of fiscal 2020 and fiscal 2019 amounted to $122,000 and $69,200 , respectively. A small portion of the Company's customer arrangements oblige the Company to create customized products for its customers that require the bundling of both products and services into a single performance obligation because the individual products and services that are required to fulfill the customer requirements do not meet the definition for a distinct performance obligation. These customized products generally have no alternative use to the Company and the terms and conditions of these arrangements give the Company the enforceable right to payment for performance completed to date, including a reasonable profit margin. For these arrangements, control transfers over time and the Company measures progress towards completion by selecting the input or output method that best depicts the transfer of control of the underlying goods and services to the customer for each respective arrangement. Methods used by the Company to measure progress toward completion include labor hours, costs incurred and units of production. Revenues recognized over time for the second quarter of fiscal 2020 and fiscal 2019 amounted to $33,595 and $16,491 , respectively. Revenues recognized over time for the six months of fiscal 2020 and fiscal 2019 amounted to $75,090 and $34,895 , respectively. On September 29, 2019 , the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $65,975 , of which, the Company estimates that approximately $48,576 will be recognized as revenue in fiscal 2020 , $16,621 in fiscal 2021, $643 in fiscal 2022, $16 in fiscal 2023 and $119 in fiscal 2024. Any payments that are received from a customer in advance, prior to the satisfaction of a related performance obligation and billings in excess of revenue recognized, are deferred and treated as a contract liability. Advance payments and billings in excess of revenue recognized are classified as current or non-current based on the timing of when recognition of revenue is expected. As of September 29, 2019 , the current and non-current portion of contract liabilities were $16,543 and $6,808 , respectively. As of March 31, 2019 , the current and non-current portion of contract liabilities were $15,162 and $6,360 , respectively. Revenues recognized during the second quarter of fiscal 2020 and fiscal 2019 , that were included in the contract liability at the beginning of the quarter, amounted to $3,690 and $611 , respectively. Revenues recognized during the six months of fiscal 2020 and fiscal 2019 , that were included in the contract liability at the beginning of the year, amounted to $8,157 and $2,597 , respectively. Amounts representing work completed and not billed to customers represent contract assets and were $46,319 and $38,778 as of September 29, 2019 and March 31, 2019 , respectively. The Company uses historic customer product return data as a basis of estimation for customer returns and records the reduction of sales at the time revenue is recognized. At September 29, 2019 , the right of return asset related to the value of inventory anticipated to be returned from customers was $2,667 and refund liability representing amounts estimated to be refunded to customers was $5,213 . |
Leases
Leases | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years . At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset. Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options. The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments. Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The following table presents lease assets and liabilities and their balance sheet classification: Classification As of September 29, 2019 Operating Leases: Right-of-use Assets Other assets $ 77,259 Operating lease current liabilities Accrued expenses 22,122 Operating lease non-current liabilities Other liabilities 57,581 Finance Leases: Right-of-use Assets Property, plant, and equipment, net $ 10,724 Finance lease current liabilities Current portion of debt 10,261 Finance lease non-current liabilities Non-current portion of debt 493 The components of lease expense for the second quarter and six months ended September 29, 2019 were as follows: Classification Quarter ended Six months ended Operating Leases: Operating lease cost Operating expenses $ 7,260 $ 14,555 Variable lease cost Operating expenses 2,122 3,828 Short term lease cost Operating expenses 1,927 4,111 Finance Leases: Depreciation Operating expenses $ 138 $ 281 Interest expense Interest expense 10 22 Total $ 11,457 $ 22,797 The following table presents the weighted average lease term and discount rates for leases as of September 29, 2019 : Operating Leases: Weighted average remaining lease term (years) 5.41 years Weighted average discount rate 5.38% Finance Leases: Weighted average remaining lease term (years) 3.45 years Weighted average discount rate 4.93% The following table presents future payments due under leases reconciled to lease liabilities as of September 29, 2019 : Finance Leases Operating Leases Six months ended March 31, 2020 $ 10,195 $ 13,770 Year ended March 31, 2021 194 22,752 2022 198 17,436 2023 155 12,390 2024 104 8,264 Thereafter 28 18,526 Total undiscounted lease payments 10,874 93,138 Present value discount 120 13,435 Lease liability $ 10,754 $ 79,703 The following table presents supplemental disclosures of cash flow information related to leases for the second quarter and six months ended September 29, 2019: Quarter ended Six months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 10 $ 22 Operating cash flows from operating leases 7,170 14,383 Financing cash flows from finance leases 138 281 Supplemental non-cash information on lease liabilities arising from right-of-use assets: Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Right-of-use assets obtained in exchange for new operating lease liabilities 2,318 4,946 |
Leases | Leases The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years . At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset. Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options. The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments. Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The following table presents lease assets and liabilities and their balance sheet classification: Classification As of September 29, 2019 Operating Leases: Right-of-use Assets Other assets $ 77,259 Operating lease current liabilities Accrued expenses 22,122 Operating lease non-current liabilities Other liabilities 57,581 Finance Leases: Right-of-use Assets Property, plant, and equipment, net $ 10,724 Finance lease current liabilities Current portion of debt 10,261 Finance lease non-current liabilities Non-current portion of debt 493 The components of lease expense for the second quarter and six months ended September 29, 2019 were as follows: Classification Quarter ended Six months ended Operating Leases: Operating lease cost Operating expenses $ 7,260 $ 14,555 Variable lease cost Operating expenses 2,122 3,828 Short term lease cost Operating expenses 1,927 4,111 Finance Leases: Depreciation Operating expenses $ 138 $ 281 Interest expense Interest expense 10 22 Total $ 11,457 $ 22,797 The following table presents the weighted average lease term and discount rates for leases as of September 29, 2019 : Operating Leases: Weighted average remaining lease term (years) 5.41 years Weighted average discount rate 5.38% Finance Leases: Weighted average remaining lease term (years) 3.45 years Weighted average discount rate 4.93% The following table presents future payments due under leases reconciled to lease liabilities as of September 29, 2019 : Finance Leases Operating Leases Six months ended March 31, 2020 $ 10,195 $ 13,770 Year ended March 31, 2021 194 22,752 2022 198 17,436 2023 155 12,390 2024 104 8,264 Thereafter 28 18,526 Total undiscounted lease payments 10,874 93,138 Present value discount 120 13,435 Lease liability $ 10,754 $ 79,703 The following table presents supplemental disclosures of cash flow information related to leases for the second quarter and six months ended September 29, 2019: Quarter ended Six months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 10 $ 22 Operating cash flows from operating leases 7,170 14,383 Financing cash flows from finance leases 138 281 Supplemental non-cash information on lease liabilities arising from right-of-use assets: Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Right-of-use assets obtained in exchange for new operating lease liabilities 2,318 4,946 |
Acquisitions
Acquisitions | 6 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisition On December 7, 2018, the Company completed the acquisition of all of the issued and outstanding common stock of Alpha Technologies Services, Inc. (“ATS”) and Alpha Technologies Ltd. (“ATL”), resulting in ATS and ATL becoming wholly-owned subsidiaries of the Company (the “share purchase”). Additionally, the Company acquired substantially all of the assets of Alpha Technologies Inc. and certain assets of Altair Advanced Industries, Inc. and other affiliates of ATS and ATL (all such sellers, together with ATS and ATL, “Alpha”), in each case in accordance with the terms and conditions of certain restructuring agreements (collectively, the “asset acquisition” and together with the share purchase, the “acquisition”). Based in Bellingham, Washington, Alpha is a global industry leader in comprehensive commercial-grade energy solutions for broadband, telecom, renewable, industrial and traffic customers around the world. The initial purchase consideration for the acquisition was $750,000 , of which $650,000 was paid in cash and the balance was settled by issuing 1,177,630 shares of EnerSys common stock. These shares were issued out of the Company's treasury stock and were valued at $84.92 per share, which was based on the thirty-day volume weighted average stock price of the Company’s common stock at closing, in accordance with the purchase agreement. The 1,177,630 shares had a closing date fair value of $93,268 , based upon the December 7, 2018 closing date spot rate of $79.20 . The total purchase consideration, consisting of cash paid of $650,000 , shares valued at $93,268 and an adjustment for working capital (due post - closing from seller of $766 ), was $742,502 . The Company funded the cash portion of the acquisition with borrowings from the Amended Credit Facility as defined in Note 12. See Note 12 for additional information. The acquisition expands the Company's footprint in broadband and telecom markets. The goodwill recognized in connection with this transaction reflects the benefits the Company expects to realize from being able to provide a one-stop, fully integrated power solutions offering to its customers, as well as the benefit of cost synergies from alignment of the Alpha group within its own organizational structure. The results of operations of Alpha have been included in the Company’s Americas segment. The following table represents the fair values assigned to the assets acquired and liabilities assumed and resulting goodwill. The amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year from the acquisition date (“the measurement period”). The acquired assets and assumed liabilities include the following: Accounts receivable $ 115,467 Inventories 84,297 Other current assets 6,822 Other intangible assets 332,000 Property, plant and equipment 20,987 Other assets 9,005 Total assets acquired $ 568,578 Accounts payable 35,803 Accrued liabilities 41,918 Deferred income taxes 56,331 Other liabilities 12,642 Total liabilities assumed $ 146,694 Net assets acquired $ 421,884 Purchase price: Cash paid for net assets acquired $ 650,000 Fair value of shares issued for net assets acquired 93,268 Working capital adjustment (766 ) Total purchase consideration 742,502 Less: Fair value of acquired identifiable assets and liabilities 421,884 Goodwill $ 320,618 The following table summarizes the estimated fair value of Alpha's identifiable intangible assets and the initial assessment of their respective estimated lives: Type Life in Years Fair Value Trademarks Indefinite-lived Indefinite $ 56,000 Customer relationships Finite-lived 14 221,000 Technology Finite-lived 10 55,000 Total identifiable intangible assets $ 332,000 The Company recorded the acquisition using the acquisition method of accounting and recognized the assets acquired and liabilities assumed at their fair values as of the date of the acquisition. The excess of the purchase price over the net tangible and intangible assets is recorded to goodwill. Estimated goodwill deductible for tax purposes is $42,262 . The measurement of the fair value of assets acquired and liabilities assumed is substantially complete. The Company continues to gather necessary information to finalize the accounting for income taxes associated with the acquisition, and as such the Company could record additional adjustments to the provisional amount recognized as this additional information is obtained. The following unaudited summary information is presented on a consolidated pro forma basis as if the acquisition had occurred on April 1, 2017: Quarter ended Six Months Ended September 30, 2018 September 30, 2018 Net sales $ 818,279 $ 1,653,571 Net earnings attributable to EnerSys stockholders 61,035 119,748 Net earnings per share attributable to EnerSys stockholders - basic 1.41 2.77 Net earnings per share attributable to EnerSys stockholders - assuming dilution 1.39 2.73 The pro forma amounts include additional interest expense on the debt issued to finance the purchases, amortization and depreciation expense based on the estimated fair value and useful lives of intangible assets and plant assets, and related tax effects. The pro forma results are not necessarily indicative of the combined results had the Alpha acquisition been completed on April 1, 2017, nor are they indicative of future combined results. The remeasurement of Alpha's deferred taxes due to the Tax Act are being excluded in arriving at these pro forma results. Other Intangible Assets Information regarding the Company’s other intangible assets are as follows: Balance as of September 29, 2019 March 31, 2019 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Indefinite-lived intangible assets: Trademarks $ 152,123 $ (953 ) $ 151,170 $ 152,484 $ (953 ) $ 151,531 Finite-lived intangible assets: Customer relationships 286,111 (53,690 ) 232,421 286,664 (42,704 ) 243,960 Non-compete 3,110 (2,804 ) 306 3,025 (2,807 ) 218 Technology 77,661 (15,819 ) 61,842 77,779 (12,229 ) 65,550 Trademarks 2,003 (1,278 ) 725 2,003 (1,236 ) 767 Licenses 1,196 (1,196 ) — 1,477 (1,187 ) 290 Total $ 522,204 $ (75,740 ) $ 446,464 $ 523,432 $ (61,116 ) $ 462,316 The Company’s amortization expense related to finite-lived intangible assets was $7,309 and $14,625 , for the second quarter and six months of fiscal 2020 , respectively, compared to $2,046 and $4,115 for the second quarter and six months of fiscal 2019 , respectively. The expected amortization expense based on the finite-lived intangible assets as of September 29, 2019 , is $14,866 for the remainder of fiscal 2020, $29,237 in fiscal 2021, $28,993 in fiscal 2022, $27,694 in fiscal 2023 and $24,287 in fiscal 2024. Contra Equity - Indemnification Receivable In connection with the Alpha acquisition in fiscal 2019, the Company recorded an unrecognized tax benefit and related indemnification receivable of $7,840 . The indemnification receivable represents the Seller’s obligation to indemnify the Company for the outcome of potential contingent liabilities, including those associated with uncertain tax positions. Due to the expiration of certain statutes of limitations during the second quarter of fiscal 2020 , a portion of the unrecognized tax benefit was recognized, resulting in a reduction in the indemnification receivable. |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of: September 29, 2019 March 31, 2019 Raw materials $ 124,761 $ 138,718 Work-in-process 105,955 129,736 Finished goods 276,365 235,415 Total $ 507,081 $ 503,869 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Recurring Fair Value Measurements The following tables represent the financial assets and (liabilities) measured at fair value on a recurring basis as of September 29, 2019 and March 31, 2019 , and the basis for that measurement: Total Fair Value Measurement September 29, 2019 Quoted Price in Significant Significant Lead forward contracts $ 701 $ — $ 701 $ — Foreign currency forward contracts 38 — 38 — Total derivatives $ 739 $ — $ 739 $ — Total Fair Value Measurement March 31, 2019 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Lead forward contracts $ (902 ) $ — $ (902 ) $ — Foreign currency forward contracts (249 ) — (249 ) — Total derivatives $ (1,151 ) $ — $ (1,151 ) $ — The fair values of lead forward contracts are calculated using observable prices for lead as quoted on the London Metal Exchange (“LME”) and, therefore, were classified as Level 2 within the fair value hierarchy, as described in Note 1, Summary of Significant Accounting Policies to the Company's consolidated financial statements included in its 2019 Annual Report . The fair values for foreign currency forward contracts are based upon current quoted market prices and are classified as Level 2 based on the nature of the underlying market in which these derivatives are traded. Financial Instruments The fair values of the Company’s cash and cash equivalents approximate carrying value due to their short maturities. The fair value of the Company’s short-term debt and borrowings under the Amended Credit Facility (as defined in Note 12), approximate their respective carrying value, as they are variable rate debt and the terms are comparable to market terms as of the balance sheet dates and are classified as Level 2. The Company's 5.00% Senior Notes due 2023 (the “Notes”), with an original face value of $300,000 , were issued in April 2015. The fair value of the Notes represent the trading values based upon quoted market prices and are classified as Level 2. The Notes were trading at approximately 102% and 99% of face value on September 29, 2019 and March 31, 2019 , respectively. The carrying amounts and estimated fair values of the Company’s derivatives and Notes at September 29, 2019 and March 31, 2019 were as follows: September 29, 2019 March 31, 2019 Carrying Fair Value Carrying Fair Value Financial assets: Derivatives (1) $ 739 $ 739 $ — $ — Financial liabilities: Notes (2) $ 300,000 $ 306,000 $ 300,000 $ 297,000 Derivatives (1) — — 1,151 1,151 (1) Represents lead and foreign currency forward contracts (see Note 7 for asset and liability positions of the lead and foreign currency forward contracts at September 29, 2019 and March 31, 2019 ). (2) The fair value amount of the Notes at September 29, 2019 and March 31, 2019 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company utilizes derivative instruments to reduce its exposure to fluctuations in commodity prices and foreign exchange rates under established procedures and controls. The Company does not enter into derivative contracts for speculative purposes. The Company’s agreements are with creditworthy financial institutions and the Company anticipates performance by counterparties to these contracts and therefore no material loss is expected. Derivatives in Cash Flow Hedging Relationships Lead Forward Contracts The Company enters into lead forward contracts to fix the price for a portion of its lead purchases. Management considers the lead forward contracts to be effective against changes in the cash flows of the underlying lead purchases. The vast majority of such contracts are for a period not extending beyond one year. At September 29, 2019 and March 31, 2019 , the Company has hedged the price to purchase approximately 54.0 million pounds and 42.0 million pounds of lead, respectively, for a total purchase price of $49,938 and $39,218 , respectively. Foreign Currency Forward Contracts The Company uses foreign currency forward contracts and options to hedge a portion of the Company’s foreign currency exposures for lead, as well as other foreign currency exposures so that gains and losses on these contracts offset changes in the underlying foreign currency denominated exposures. The vast majority of such contracts are for a period not extending beyond one year. As of September 29, 2019 and March 31, 2019 , the Company had entered into a total of $45,350 and $42,318 , respectively, of such contracts. In the coming twelve months, the Company anticipates that $1,602 of pretax gain relating to lead and foreign currency forward contracts will be reclassified from AOCI as part of cost of goods sold. This amount represents the current net unrealized impact of hedging lead and foreign exchange rates, which will change as market rates change in the future, and will ultimately be realized in the Consolidated Condensed Statements of Income as an offset to the corresponding actual changes in lead costs to be realized in connection with the variable lead cost and foreign exchange rates being hedged. Derivatives not Designated in Hedging Relationships Foreign Currency Forward Contracts The Company also enters into foreign currency forward contracts to economically hedge foreign currency fluctuations on intercompany loans and foreign currency denominated receivables and payables. These are not designated as hedging instruments and changes in fair value of these instruments are recorded directly in the Consolidated Condensed Statements of Income. As of September 29, 2019 and March 31, 2019 , the notional amount of these contracts was $23,676 and $22,201 , respectively. Presented below in tabular form is information on the location and amounts of derivative fair values in the Consolidated Condensed Balance Sheets and derivative gains and losses in the Consolidated Condensed Statements of Income: Fair Value of Derivative Instruments September 29, 2019 and March 31, 2019 Derivatives and Hedging Activities Designated as Cash Flow Hedges Derivatives and Hedging Activities Not Designated as Hedging Instruments September 29, 2019 March 31, 2019 September 29, 2019 March 31, 2019 Prepaid and other current assets: Lead forward contracts $ 701 $ — $ — $ — Foreign currency forward contracts 154 — — — Total assets $ 855 $ — $ — $ — Accrued expenses: Lead forward contracts $ — $ 902 $ — $ — Foreign currency forward contracts — 8 116 241 Total liabilities $ — $ 910 $ 116 $ 241 The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended September 29, 2019 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ 7,872 Cost of goods sold $ 3,173 Foreign currency forward contracts (64 ) Cost of goods sold (63 ) Total $ 7,808 $ 3,110 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ (730 ) Total $ (730 ) The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended September 30, 2018 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ (11,524 ) Cost of goods sold $ (3,742 ) Foreign currency forward contracts 138 Cost of goods sold 434 Total $ (11,386 ) $ (3,308 ) Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ 96 Total $ 96 The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the six months ended September 29, 2019 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ 4,496 Cost of goods sold $ 2,732 Foreign currency forward contracts (395 ) Cost of goods sold (280 ) Total $ 4,101 $ 2,452 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ (696 ) Total $ (696 ) The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the six months ended September 30, 2018 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ (11,009 ) Cost of goods sold $ (2,719 ) Foreign currency forward contracts 720 Cost of goods sold (803 ) Total $ (10,289 ) $ (3,522 ) Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ (622 ) Total $ (622 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax provision consists of federal, state and foreign income taxes. The tax provision for the second quarter of fiscal 2020 and 2019 was based on the estimated effective tax rates applicable for the full years ending March 31, 2020 and March 31, 2019 , respectively, after giving effect to items specifically related to the interim periods. The Company’s effective income tax rate with respect to any period may be volatile based on the mix of income in the tax jurisdictions in which the Company operates, change in tax laws and the amount of the Company's consolidated income before taxes. On May 19, 2019, a public referendum held in Switzerland approved the Federal Act on Tax Reform and AHV (Old-Age and Survivors Insurance) Financing (TRAF) as adopted by the Swiss Federal Parliament on September 28, 2018. The Swiss tax reform measures are effective January 1, 2020. Certain provisions of the TRAF were enacted during the current quarter. Significant changes in the tax reform include the abolishment of preferential tax regimes for holding companies, domicile companies and mixed companies at the cantonal level. The transitional provisions of the TRAF allow companies to elect tax basis adjustments to fair value, which is used for tax depreciation and amortization purposes resulting in a deduction over the transitional period. The Company recorded a deferred tax asset of $21,000 during the second quarter of fiscal 2020 , related to the amortizable goodwill, subject to final negotiations with the Swiss federal and cantonal tax authority. The consolidated effective income tax rates for the second quarter of fiscal 2020 and 2019 were (29.5)% and 18.6% , respectively and for the six months of fiscal 2020 and 2019 were (4.0)% and 19.1%, respectively. The rate decrease in the second quarter and six months of fiscal 2020 compared to the comparable prior year periods is primarily due to Swiss tax reform and changes in the mix of earnings among tax jurisdictions. Foreign income as a percentage of worldwide income is estimated to be 72% for fiscal 2020 compared to 68% for fiscal 2019 . The foreign effective income tax rates for the six months of fiscal 2020 and 2019 were (2.4)% and 11.1% , respectively. The rate decrease compared to the prior year period is primarily due to Swiss tax reform and changes in the mix of earnings among tax jurisdictions. Income from the Company's Swiss subsidiary comprised a substantial portion of the Company's overall foreign mix of income and was taxed at an effective income tax rate of approximately 6% in both the current and prior year quarter of fiscal 2020 and fiscal 2019. |
Warranty
Warranty | 6 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranty | Warranty The Company provides for estimated product warranty expenses when the related products are sold, with related liabilities included within accrued expenses and other liabilities. As warranty estimates are forecasts that are based on the best available information, primarily historical claims experience, costs of claims may ultimately differ from amounts provided. An analysis of changes in the liability for product warranties is as follows: Quarter ended Six months ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Balance at beginning of period $ 56,179 $ 49,689 $ 54,568 $ 50,602 Current period provisions 6,475 6,181 13,994 11,017 Costs incurred (7,227 ) (7,920 ) (13,175 ) (12,301 ) Foreign currency translation adjustment (491 ) (217 ) (451 ) (1,585 ) Balance at end of period $ 54,936 $ 47,733 $ 54,936 $ 47,733 |
Commitments, Contingencies and
Commitments, Contingencies and Litigation | 6 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Litigation | Commitments, Contingencies and Litigation Litigation and Other Legal Matters In the ordinary course of business, the Company and its subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings are generally based on alleged violations of environmental, anticompetition, employment, contract and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company and its subsidiaries. In the ordinary course of business, the Company and its subsidiaries are also subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. In connection with formal and informal inquiries by federal, state, local and foreign agencies, the Company and its subsidiaries receive numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of their activities. European Competition Investigations Certain of the Company’s European subsidiaries had received subpoenas and requests for documents and, in some cases, interviews from, and have had on-site inspections conducted by, the competition authorities of Belgium, Germany and the Netherlands relating to conduct and anticompetitive practices of certain industrial battery participants. The Company settled the Belgian regulatory proceeding in February 2016 by acknowledging certain anticompetitive practices and conduct and agreeing to pay a fine of $1,962 , which was paid in March 2016. During the second quarter of fiscal 2019, the Company also paid $1,272 towards certain aspects related to this matter, which are under appeal. As of September 29, 2019 and March 31, 2019 , the Company did not have a reserve balance for these matters. In June 2017, the Company settled a portion of its previously disclosed proceeding involving the German competition authority relating to conduct involving the Company's motive power battery business and agreed to pay a fine of $14,811 , which was paid in July 2017. As of September 29, 2019 and March 31, 2019 , the Company did not have a reserve balance relating to this matter. Also, in March 2019, the Company settled the remaining portion of its previously disclosed proceeding involving the German competition authority relating to conduct involving the Company’s reserve power battery business and agreed to pay a fine of $7,258 , which was paid in April 2019. As of September 29, 2019 and March 31, 2019 , the Company had a reserve balance of $0 and $7,258 , respectively. The foregoing estimate of losses is based upon currently available information for these proceedings. However, the precise scope, timing and time period at issue, as well as the final outcome of the investigations or customer claims, remain uncertain. Accordingly, the Company’s estimate may change from time to time, and actual losses could vary. Environmental Issues As a result of its operations, the Company is subject to various federal, state, and local, as well as international environmental laws and regulations and is exposed to the costs and risks of registering, handling, processing, storing, transporting, and disposing of hazardous substances, especially lead and acid. The Company’s operations are also subject to federal, state, local and international occupational safety and health regulations, including laws and regulations relating to exposure to lead in the workplace. The Company is responsible for certain cleanup obligations at the former Yuasa battery facility in Sumter, South Carolina, that predates its ownership of this facility. This manufacturing facility was closed in 2001 and the Company established a reserve for this facility, which was $1,060 and $1,081 as of September 29, 2019 and March 31, 2019 , respectively. Based on current information, the Company’s management believes this reserve is adequate to satisfy the Company’s environmental liabilities at this facility. This facility is separate from the Company’s current metal fabrication facility in Sumter. Lead and Foreign Currency Forward Contracts |
Restructuring Plans
Restructuring Plans | 6 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plans | Restructuring, Exit and Other Charges Restructuring Plans During fiscal 2018, the Company announced restructuring programs to improve efficiencies primarily related to supply chain and general operations in EMEA. The Company estimates that the total charges for these actions will amount to approximately $7,400 , primarily from cash charges for employee severance-related payments and other charges. The Company estimates that these actions will result in the reduction of approximately 80 employees upon completion. During fiscal 2018, the Company recorded non-cash restructuring charges of $69 and cash charges of $2,260 and an additional $3,104 during fiscal 2019. The Company incurred $1,350 in costs against the accrual in fiscal 2018 and an additional $2,844 in fiscal 2019. During the six months of fiscal 2020 , the Company recorded restructuring charges of $248 and incurred $425 in costs against the accrual. As of September 29, 2019 , the reserve balance associated with these actions is $865 . The Company expects to be committed to an additional $1,700 in restructuring charges related to this action, which it expects to complete in fiscal 2021. During fiscal 2019, the Company announced restructuring programs to improve efficiencies of its operations in EMEA. The Company estimates that the total charges for these actions will amount to approximately $2,500 , from charges primarily for employee severance-related payments to approximately 35 employees. During fiscal 2019, the Company recorded restructuring charges of $347 and incurred $83 in costs against the accrual. During the six months of fiscal 2020 , the Company recorded restructuring charges of $537 and incurred $632 in costs against the accrual. As of September 29, 2019 , the reserve balance associated with these actions is $156 . The Company expects to complete these actions in fiscal 2021. During fiscal 2019, the Company announced restructuring programs to improve efficiencies of its operations in the Americas. The Company estimates that the total charges for these actions will amount to approximately $4,100 , from cash and non-cash charges primarily for employee severance-related payments to approximately 85 employees. During fiscal 2019, the Company recorded restructuring charges of $1,970 , non-cash charges of $2,095 and incurred $1,480 in costs against the accrual. During the six months of fiscal 2020 , the Company incurred $484 in costs against the accrual. As of September 29, 2019 , the reserve balance associated with this action is $10 . The Company expects to complete these actions in fiscal 2020. During fiscal 2019, the Company announced a restructuring program to improve efficiencies of its operations in Asia and to convert its India operations from mainly reserve power production to motive power production. The Company estimates that the total charges for these actions will amount to approximately $5,300 , from cash charges primarily for employee severance-related payments to approximately 150 employees and non-cash charges related to the write-off of fixed assets. During fiscal 2019, the Company recorded cash restructuring charges of $2,772 and non-cash charges of $771 and incurred $1,683 in costs against the accrual. During the six months of fiscal 2020 , the Company recorded restructuring charges of $631 , non-cash charges of $130 and incurred $1,697 in costs against the accrual. As of September 29, 2019 , the reserve balance associated with this action is $70 . The Company expects to complete this action in fiscal 2020. During fiscal 2020, the Company announced a restructuring program to improve efficiencies of its operations in the Americas. The Company estimates that the total charges for these actions will amount to approximately $1,400 , from cash charges primarily for employee severance-related payments to approximately 50 employees. During the six months of fiscal 2020 , the Company recorded restructuring charges of $1,126 and incurred $687 in costs against the accrual. As of September 29, 2019 , the reserve balance associated with this action is $441 . The Company expects to complete this action in fiscal 2020. A roll-forward of the restructuring reserve is as follows: Employee Severance Other Total Balance as of March 31, 2019 $ 2,356 $ 596 $ 2,952 Accrued 2,369 173 2,542 Costs incurred (3,229 ) (696 ) (3,925 ) Foreign currency impact (24 ) (3 ) (27 ) Balance as of September 29, 2019 $ 1,472 $ 70 $ 1,542 Exit Charges During fiscal 2019, the Company committed to a plan to close its facility in Targovishte, Bulgaria, which produced diesel-electric submarine batteries. Management determined that the future demand for batteries of diesel-electric submarines was not sufficient given the number of competitors in the market. Of the estimated total charges of $30,000 for all these actions, the Company had recorded charges amounting to $20,242 in fiscal 2019, relating to severance and inventory and fixed asset write-offs. The Company recorded an additional $1,325 relating to non-cash charges during the six months of fiscal 2020. In keeping with its strategy of exiting the manufacture of batteries for diesel-electric submarines, during the second quarter of fiscal 2020 , the Company also sold certain licenses and assets for $2,031 and recorded a net gain of $892 , which is reported in exit charges. During the second quarter of fiscal 2020 , the Company wrote off $5,441 of assets at its Kentucky and Tennessee plants, as a result of its strategic product mix shift from traditional flooded batteries to maintenance free lead acid and lithium batteries. During the six months of fiscal 2019, as part of the aforementioned program to convert its India operations from mainly reserve power production to motive power production the Company also recorded a non-cash write-off of reserve power inventories of $526 , which was reported in cost of goods sold. Richmond, Kentucky Plant Fire On September 19, 2019, a fire broke out in the battery formation area of the Company's Richmond, Kentucky motive power production facility. The Company maintains insurance policies for both property damage and business interruption and is in the early stages of assessing damage. Based on its initial assessment, the Company has written off $1,934 for the damage caused to its fixed assets and inventories. The Company also recorded a receivable of $1,934 |
Debt
Debt | 6 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following summarizes the Company’s long-term debt as of September 29, 2019 and March 31, 2019 : September 29, 2019 March 31, 2019 Principal Unamortized Issuance Costs Principal Unamortized Issuance Costs 5.00% Senior Notes due 2023 $ 300,000 $ 2,185 $ 300,000 $ 2,497 Amended Credit Facility, due 2022 822,625 2,622 677,315 3,062 $ 1,122,625 $ 4,807 $ 977,315 $ 5,559 Less: Unamortized issuance costs 4,807 5,559 Long-term debt, net of unamortized issuance costs $ 1,117,818 $ 971,756 5.00% Senior Notes The Notes bear interest at a rate of 5.00% per annum and have an original face value of $300,000 . Interest is payable semiannually in arrears on April 30 and October 30 of each year and commenced on October 30, 2015. The Notes will mature on April 30, 2023, unless earlier redeemed or repurchased in full. The Notes are unsecured and unsubordinated obligations of the Company. The Notes are fully and unconditionally guaranteed (the “Guarantees”), jointly and severally, by certain of its subsidiaries that are guarantors (the “Guarantors”) under the Amended Credit Facility. The Guarantees are unsecured and unsubordinated obligations of the Guarantors. 2017 Credit Facility and Subsequent Amendment In fiscal 2018, the Company entered into a credit facility (the “2017 Credit Facility”). The 2017 Credit Facility scheduled to mature on September 30, 2022, comprised a $600,000 senior secured revolving credit facility (“2017 Revolver”) and a $150,000 senior secured term loan (“2017 Term Loan”). The Company utilized the borrowings from the 2017 Credit Facility to repay its pre-existing credit facility. In fiscal 2019, the Company amended the 2017 Credit Facility (as amended, the “Amended Credit Facility”) to fund the Alpha acquisition. The Amended Credit Facility consists of $449,105 senior secured term loans (the “Amended 2017 Term Loan”), including a CAD 133,050 ( $99,105 ) term loan and a $700,000 senior secured revolving credit facility (the “Amended 2017 Revolver”). The amendment resulted in an increase of the 2017 Term Loan and the 2017 Revolver by $299,105 and $100,000 , respectively. As of September 29, 2019 , the Company had $389,000 outstanding under the Amended 2017 Revolver and $433,625 under the Amended 2017 Term Loan. Subsequent to the amendment, the quarterly installments payable on the Amended 2017 Term Loan are $5,645 beginning December 31, 2018, $8,468 beginning December 31, 2019 and $11,290 beginning December 31, 2020 with a final payment of $320,000 on September 30, 2022. The Amended Credit Facility may be increased by an aggregate amount of $325,000 in revolving commitments and / or one or more new tranches of term loans, under certain conditions. Both the Amended 2017 Revolver and the Amended 2017 Term Loan bear interest, at the Company's option, at a rate per annum equal to either (i) the London Interbank Offered Rate (“LIBOR”) or Canadian Dollar Offered Rate (“CDOR”) plus (i) LIBOR plus between 1.25% and 2.00% (currently 1.50% and based on the Company's consolidated net leverage ratio) or (ii) the U.S. Dollar Base Rate (which equals, for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 0.50% , (b) Bank of America “Prime Rate” and (c) the Eurocurrency Base Rate plus 1% ; provided that, if the Base Rate shall be less than zero, such rate shall be deemed zero) (iii) the CDOR Base Rate equal to the higher of (a) Bank of America “Prime Rate” and (b) average 30-day CDOR rate plus 0.50%. Obligations under the Amended Credit Facility are secured by substantially all of the Company’s existing and future acquired assets, including substantially all of the capital stock of the Company’s United States subsidiaries that are guarantors under the Amended Credit Facility and up to 65% of the capital stock of certain of the Company’s foreign subsidiaries that are owned by the Company’s United States subsidiaries. The Amended Credit Facility allows for up to two temporary increases in the maximum leverage ratio from 3.50 x to 4.00 x for a four quarter period following an acquisition larger than $250,000 . Effective December 7, 2018 through December 27, 2019, the maximum leverage ratio has been increased to 4.00 x. The current portion of the Amended 2017 Term Loan of $33,888 is classified as long-term debt as the Company expects to refinance the future quarterly payments with revolver borrowings under the Amended Credit Facility. Short-Term Debt As of September 29, 2019 and March 31, 2019 , the Company had $34,351 and $54,490 , respectively, of short-term borrowings. The weighted average interest rate on these borrowings was approximately 4% at September 29, 2019 and March 31, 2019 . Letters of Credit As of September 29, 2019 and March 31, 2019 , the Company had standby letters of credit of $4,306 and $3,955 , respectively. Debt Issuance Costs Amortization expense, relating to debt issuance costs, included in interest expense was $374 and $314 , respectively, for the quarters ended September 29, 2019 and September 30, 2018 and $752 and $627 for the six months ended September 29, 2019 and September 30, 2018 . Debt issuance costs, net of accumulated amortization, totaled $4,807 and $ 5,559 , respectively, at September 29, 2019 and March 31, 2019 . Available Lines of Credit As of September 29, 2019 and March 31, 2019 , the Company had available and undrawn, under all its lines of credit, $425,615 and $546,960 , respectively, including $118,921 and $87,685 , respectively, of uncommitted lines of credit as of September 29, 2019 and March 31, 2019 . |
Retirement Plans
Retirement Plans | 6 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The following tables present the components of the Company’s net periodic benefit cost related to its defined benefit pension plans: United States Plans International Plans Quarter ended Quarter ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Service cost $ — $ — $ 227 $ 252 Interest cost 154 157 364 457 Expected return on plan assets (114 ) (135 ) (518 ) (535 ) Amortization and deferral 51 36 245 304 Net periodic benefit cost $ 91 $ 58 $ 318 $ 478 United States Plans International Plans Six months ended Six months ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Service cost $ — $ — $ 462 $ 507 Interest cost 308 316 740 927 Expected return on plan assets (226 ) (257 ) (1,056 ) (1,087 ) Amortization and deferral 103 92 498 616 Net periodic benefit cost $ 185 $ 151 $ 644 $ 963 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of September 29, 2019 , the Company maintains the 2017 Equity Incentive Plan (“2017 EIP”). The 2017 EIP reserved 4,173,554 shares of common stock for the grant of various classes of nonqualified stock options, restricted stock units, market condition-based on total shareholder return (“TSR”) and performance condition-based share units (“PSU”) and other forms of equity-based compensation. The Company recognized stock-based compensation expense associated with its equity incentive plans of $4,994 for the second quarter of fiscal 2020 and $4,788 for the second quarter of fiscal 2019 . Stock-based compensation expense was 8,868 for the six months of fiscal 2020 and $9,129 for the six months of fiscal 2019. The Company recognizes compensation expense using the straight-line method over the vesting period of the awards. During the six months of fiscal 2020 , the Company granted to non-employee directors 32,460 restricted stock units, pursuant to the 2017 EIP. The awards vest immediately upon the date of grant and are settled in shares of common stock, six months after termination of service as a director. During the six months of fiscal 2020 , the Company granted to management and other key employees 284,109 non-qualified stock options that vest ratably over three years from the date of grant, 62,512 PSUs and 51,063 TSRs units that cliff vest three years from the date of grant, and 301,321 restricted stock units that vest ratably over four years from the date of grant. Common stock activity during the six months of fiscal 2020 included the vesting of 162,119 restricted stock units, 171,980 TSRs and the exercise of 661 stock options. As of September 29, 2019 , there were 825,153 non-qualified stock options, 888,525 restricted stock units, 207,340 TSRs and 102,006 |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 6 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | Stockholders’ Equity and Noncontrolling Interests Common Stock The following demonstrates the change in the number of shares of common stock outstanding during the six months ended September 29, 2019 : Shares outstanding as of March 31, 2019 42,620,750 Purchase of treasury stock (581,140 ) Shares issued towards equity-based compensation plans, net of equity awards surrendered for option price and taxes 242,224 Shares outstanding as of September 29, 2019 42,281,834 Treasury Stock During the six months ended September 29, 2019 , the Company purchased 581,140 shares for $34,561 . At September 29, 2019 and March 31, 2019 , the Company held 12,803,302 and 12,227,773 shares as treasury stock, respectively. During the six months ended September 29, 2019 , the Company also issued 5,611 shares out of its treasury stock, valued at $62.55 per share, on a LIFO basis, to participants under the Company's Employee Stock Purchase Plan. Accumulated Other Comprehensive Income ( “ AOCI ” ) The components of AOCI, net of tax, as of September 29, 2019 and March 31, 2019 , are as follows: March 31, 2019 Before Reclassifications Amounts Reclassified from AOCI September 29, 2019 Pension funded status adjustment $ (20,791 ) $ — $ 474 $ (20,317 ) Net unrealized (loss) gain on derivative instruments (130 ) 3,129 (1,872 ) 1,127 Foreign currency translation adjustment (121,761 ) (35,196 ) — (156,957 ) Accumulated other comprehensive (loss) income $ (142,682 ) $ (32,067 ) $ (1,398 ) $ (176,147 ) The following table presents reclassifications from AOCI during the second quarter ended September 29, 2019 : Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in cash flow hedging relationships: Net unrealized gain on derivative instruments $ (3,110 ) Cost of goods sold Tax expense 736 Net unrealized gain on derivative instruments, net of tax $ (2,374 ) Defined benefit pension costs: Prior service costs and deferrals $ 296 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (59 ) Net periodic benefit cost, net of tax $ 237 The following table presents reclassifications from AOCI during the second quarter ended September 30, 2018 : Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in cash flow hedging relationships: Net unrealized loss on derivative instruments $ 3,308 Cost of goods sold Tax benefit (777 ) Net unrealized loss on derivative instruments, net of tax $ 2,531 Defined benefit pension costs: Prior service costs and deferrals $ 340 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (40 ) Net periodic benefit cost, net of tax $ 300 The following table presents reclassifications from AOCI during the six months ended September 29, 2019: Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in Cash Flow Hedging Relationships: Net unrealized gain on derivative instruments $ (2,452 ) Cost of goods sold Tax expense 580 Net unrealized gain on derivative instruments, net of tax $ (1,872 ) Defined benefit pension costs: Prior service costs and deferrals $ 601 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (127 ) Net periodic benefit cost, net of tax $ 474 The following table presents reclassifications from AOCI during the six months ended September 30, 2018: Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in Cash Flow Hedging Relationships: Net unrealized loss on derivative instruments $ 3,522 Cost of goods sold Tax benefit (827 ) Net unrealized loss on derivative instruments, net of tax $ 2,695 Defined benefit pension costs: Prior service costs and deferrals $ 708 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (108 ) Net periodic benefit cost, net of tax $ 600 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding and the calculations of net earnings per common share attributable to EnerSys stockholders. Quarter ended Six months ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net earnings attributable to EnerSys stockholders $ 62,698 $ 47,424 $ 111,334 93,284 Weighted-average number of common shares outstanding: Basic 42,392,039 42,133,484 42,524,189 42,073,015 Dilutive effect of: Common shares from exercise and lapse of equity awards, net of shares assumed reacquired 316,043 640,222 389,069 600,829 Diluted weighted-average number of common shares outstanding 42,708,082 42,773,706 42,913,258 42,673,844 Basic earnings per common share attributable to EnerSys stockholders $ 1.48 $ 1.13 $ 2.62 $ 2.22 Diluted earnings per common share attributable to EnerSys stockholders $ 1.47 $ 1.11 $ 2.59 $ 2.19 Anti-dilutive equity awards not included in diluted weighted-average common shares 1,005,326 409,425 831,068 286,755 |
Business Segments
Business Segments | 6 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company's three reportable segments, based on geographic regions, are as follows: • Americas , which includes North and South America, with segment headquarters in Reading, Pennsylvania, USA; • EMEA , which includes Europe, the Middle East and Africa, with segment headquarters in Zug, Switzerland; and • Asia , which includes Asia, Australia and Oceania, with segment headquarters in Singapore. Summarized financial information related to the Company's reportable segments for the second quarter and six months ended September 29, 2019 and September 30, 2018 , is shown below: Quarter ended Six months ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net sales by segment to unaffiliated customers Americas $ 524,939 $ 388,574 $ 1,042,049 $ 781,148 EMEA 182,803 203,997 386,001 414,491 Asia 54,395 67,891 114,317 135,753 Total net sales $ 762,137 $ 660,462 $ 1,542,367 $ 1,331,392 Net sales by product line Reserve power $ 426,822 $ 313,338 $ 862,665 $ 637,356 Motive power 335,315 347,124 679,702 694,036 Total net sales $ 762,137 $ 660,462 $ 1,542,367 $ 1,331,392 Intersegment sales Americas $ 8,864 $ 7,888 $ 17,428 $ 13,746 EMEA 37,842 35,039 74,723 67,126 Asia 5,084 8,055 12,042 15,669 Total intersegment sales (1) $ 51,790 $ 50,982 $ 104,193 $ 96,541 Operating earnings by segment Americas $ 52,137 $ 48,306 $ 106,493 $ 96,042 EMEA 13,295 13,829 29,006 31,032 Asia (440 ) 2,343 201 3,848 Restructuring charges - Americas (541 ) — (1,126 ) — Restructuring and other exit charges - EMEA (32 ) (1,007 ) (1,326 ) (2,199 ) Restructuring charges - Asia (268 ) (114 ) (761 ) (661 ) Inventory adjustment relating to exit activities - Asia — — — (526 ) Fixed asset write-off relating to exit activities and other - Americas (5,441 ) — (5,441 ) — Total operating earnings (2) $ 58,710 $ 63,357 $ 127,046 $ 127,536 (1 ) Intersegment sales are presented on a cost-plus basis, which takes into consideration the effect of transfer prices between legal entities. (2 ) The Company does not allocate interest expense or other (income) expense to the reportable segments. Goodwill The changes in the carrying amount of goodwill by reportable segment during fiscal 2020 are as follows: Americas EMEA Asia Total Balance at March 31, 2019 $ 470,194 $ 143,269 $ 42,936 $ 656,399 Foreign currency translation adjustment (538 ) (4,732 ) (1,893 ) (7,163 ) Balance as of September 29, 2019 $ 469,656 $ 138,537 $ 41,043 $ 649,236 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 6, 2019, the Board of Directors approved a quarterly cash dividend of $0.175 per share of common stock to be paid on December 27, 2019, to stockholders of record as of December 13, 2019. On September 30, 2019, the Company completed the acquisition of all of the equity of N Holding AB (aka NorthStar) for $78,000 in cash consideration and the assumption of $104,500 in debt, which was funded using existing cash and credit facilities. NorthStar, headquartered in Stockholm, Sweden, through its direct and indirect subsidiaries, manufactures and distributes thin plate pure lead (TPPL) batteries and battery enclosures. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments except those otherwise described herein) considered necessary for a fair presentation have been included, unless otherwise disclosed. Operating results for the three months and six months ended September 29, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020 . The Consolidated Condensed Balance Sheet at March 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s 2019 Annual Report on Form 10-K (SEC File No. 001-32253), which was filed on May 29, 2019 (the “ 2019 Annual Report ”). EnerSys (the “Company,”) reports interim financial information for 13-week periods, except for the first quarter, which always begins on April 1, and the fourth quarter, which always ends on March 31. The four quarters in fiscal 2020 end on June 30, 2019, September 29, 2019, December 29, 2019, and March 31, 2020, respectively. The four quarters in fiscal 2019 ended on July 1, 2018, September 30, 2018, December 30, 2018, and March 31, 2019, respectively. The consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries and any partially owned subsidiaries that the Company has the ability to control. All intercompany transactions and balances have been eliminated in consolidation. |
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Issued But Not Yet Adopted | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). This update requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Effective April 1, 2019, the Company adopted the new standard under the modified retrospective approach, which resulted in no adjustment to the April 1, 2019 beginning Retained Earnings. There are optional practical expedients and policy elections made available to simplify the transition to the new standard. The Company has elected the following: • to adopt the optional transition method defined within ASU 2018-11 and not restate comparative prior periods but instead recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption; • the package of three practical expedients addressing whether a contract contains a lease, lease classification and initial direct costs; • to combine lease and non-lease components as a single component for all asset classes; • to use a portfolio approach to determine the incremental borrowing rate; and • to apply the short-term lease exception to leases that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Upon adoption, the Company recorded Right-of-use (“ROU”) assets and lease liabilities of approximately $84,878 and $87,248 , respectively. In addition, capital lease assets and liabilities are now classified as finance lease right-of-use assets and liabilities. The difference between the operating lease assets and lease liabilities primarily relates to unamortized lease incentives and deferred rent recorded in accordance with the previous lease guidance. Apart from the aforementioned changes, the adoption of this standard did not have a significant impact on the Company's operating results, financial position or cash flows. The discount rates used to calculate the ROU assets and lease liabilities as of the effective date were based on the remaining lease terms as of the effective date. See Note 3, Leases for additional information. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815)”: Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The Company adopted the standard effective April 1, 2019 and the adoption did not have any impact on the Company's operating results, financial position or cash flows. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". The new standard will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”). The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statements users. However, because the amendment only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The Company adopted this standard effective April 1, 2019 with the election not to reclassify $478 of stranded tax effects, primarily related to the Company's pension plans, from accumulated other comprehensive income (“AOCI”) to retained earnings, as the amount was not material. Accounting Pronouncements Issued But Not Adopted as of September 29, 2019 In June 2016, the FASB, issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)”: Measurement of Credit Losses on Financial Instruments, which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In contrast to current guidance, which considers current information and events and utilizes a probable threshold, (an “incurred loss” model), ASU 2016–13 mandates an “expected loss” model. The expected loss model: (i) estimates the risk of loss even when risk is remote, (ii) estimates losses over the contractual life, (iii) considers past events, current conditions and reasonable supported forecasts and (iv) has no recognition threshold. The Company is currently assessing the potential impact that the adoption will have on its consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense for the second quarter and six months ended September 29, 2019 were as follows: Classification Quarter ended Six months ended Operating Leases: Operating lease cost Operating expenses $ 7,260 $ 14,555 Variable lease cost Operating expenses 2,122 3,828 Short term lease cost Operating expenses 1,927 4,111 Finance Leases: Depreciation Operating expenses $ 138 $ 281 Interest expense Interest expense 10 22 Total $ 11,457 $ 22,797 |
Lessee, Supplemental Information Related To Leases [Table Text Block] | The following table presents the weighted average lease term and discount rates for leases as of September 29, 2019 : Operating Leases: Weighted average remaining lease term (years) 5.41 years Weighted average discount rate 5.38% Finance Leases: Weighted average remaining lease term (years) 3.45 years Weighted average discount rate 4.93% |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents future payments due under leases reconciled to lease liabilities as of September 29, 2019 : Finance Leases Operating Leases Six months ended March 31, 2020 $ 10,195 $ 13,770 Year ended March 31, 2021 194 22,752 2022 198 17,436 2023 155 12,390 2024 104 8,264 Thereafter 28 18,526 Total undiscounted lease payments 10,874 93,138 Present value discount 120 13,435 Lease liability $ 10,754 $ 79,703 |
Finance Lease, Liability, Maturity [Table Text Block] | The following table presents future payments due under leases reconciled to lease liabilities as of September 29, 2019 : Finance Leases Operating Leases Six months ended March 31, 2020 $ 10,195 $ 13,770 Year ended March 31, 2021 194 22,752 2022 198 17,436 2023 155 12,390 2024 104 8,264 Thereafter 28 18,526 Total undiscounted lease payments 10,874 93,138 Present value discount 120 13,435 Lease liability $ 10,754 $ 79,703 |
Lessee, Supplemental Cash Flow Information Related To Leases [Table Text Block] | The following table presents supplemental disclosures of cash flow information related to leases for the second quarter and six months ended September 29, 2019: Quarter ended Six months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 10 $ 22 Operating cash flows from operating leases 7,170 14,383 Financing cash flows from finance leases 138 281 Supplemental non-cash information on lease liabilities arising from right-of-use assets: Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Right-of-use assets obtained in exchange for new operating lease liabilities 2,318 4,946 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The acquired assets and assumed liabilities include the following: Accounts receivable $ 115,467 Inventories 84,297 Other current assets 6,822 Other intangible assets 332,000 Property, plant and equipment 20,987 Other assets 9,005 Total assets acquired $ 568,578 Accounts payable 35,803 Accrued liabilities 41,918 Deferred income taxes 56,331 Other liabilities 12,642 Total liabilities assumed $ 146,694 Net assets acquired $ 421,884 Purchase price: Cash paid for net assets acquired $ 650,000 Fair value of shares issued for net assets acquired 93,268 Working capital adjustment (766 ) Total purchase consideration 742,502 Less: Fair value of acquired identifiable assets and liabilities 421,884 Goodwill $ 320,618 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the estimated fair value of Alpha's identifiable intangible assets and the initial assessment of their respective estimated lives: Type Life in Years Fair Value Trademarks Indefinite-lived Indefinite $ 56,000 Customer relationships Finite-lived 14 221,000 Technology Finite-lived 10 55,000 Total identifiable intangible assets $ 332,000 |
Business Acquisition, Pro Forma Information | The following unaudited summary information is presented on a consolidated pro forma basis as if the acquisition had occurred on April 1, 2017: Quarter ended Six Months Ended September 30, 2018 September 30, 2018 Net sales $ 818,279 $ 1,653,571 Net earnings attributable to EnerSys stockholders 61,035 119,748 Net earnings per share attributable to EnerSys stockholders - basic 1.41 2.77 Net earnings per share attributable to EnerSys stockholders - assuming dilution 1.39 2.73 |
Schedule of Intangible Assets | Information regarding the Company’s other intangible assets are as follows: Balance as of September 29, 2019 March 31, 2019 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Indefinite-lived intangible assets: Trademarks $ 152,123 $ (953 ) $ 151,170 $ 152,484 $ (953 ) $ 151,531 Finite-lived intangible assets: Customer relationships 286,111 (53,690 ) 232,421 286,664 (42,704 ) 243,960 Non-compete 3,110 (2,804 ) 306 3,025 (2,807 ) 218 Technology 77,661 (15,819 ) 61,842 77,779 (12,229 ) 65,550 Trademarks 2,003 (1,278 ) 725 2,003 (1,236 ) 767 Licenses 1,196 (1,196 ) — 1,477 (1,187 ) 290 Total $ 522,204 $ (75,740 ) $ 446,464 $ 523,432 $ (61,116 ) $ 462,316 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | Inventories, net consist of: September 29, 2019 March 31, 2019 Raw materials $ 124,761 $ 138,718 Work-in-process 105,955 129,736 Finished goods 276,365 235,415 Total $ 507,081 $ 503,869 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And (Liabilities), Measured At Fair Value On A Recurring Basis | The following tables represent the financial assets and (liabilities) measured at fair value on a recurring basis as of September 29, 2019 and March 31, 2019 , and the basis for that measurement: Total Fair Value Measurement September 29, 2019 Quoted Price in Significant Significant Lead forward contracts $ 701 $ — $ 701 $ — Foreign currency forward contracts 38 — 38 — Total derivatives $ 739 $ — $ 739 $ — Total Fair Value Measurement March 31, 2019 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Lead forward contracts $ (902 ) $ — $ (902 ) $ — Foreign currency forward contracts (249 ) — (249 ) — Total derivatives $ (1,151 ) $ — $ (1,151 ) $ — |
Carrying Amounts And Estimated Fair Values Of Company's Financial Instruments | The carrying amounts and estimated fair values of the Company’s derivatives and Notes at September 29, 2019 and March 31, 2019 were as follows: September 29, 2019 March 31, 2019 Carrying Fair Value Carrying Fair Value Financial assets: Derivatives (1) $ 739 $ 739 $ — $ — Financial liabilities: Notes (2) $ 300,000 $ 306,000 $ 300,000 $ 297,000 Derivatives (1) — — 1,151 1,151 (1) Represents lead and foreign currency forward contracts (see Note 7 for asset and liability positions of the lead and foreign currency forward contracts at September 29, 2019 and March 31, 2019 ). (2) The fair value amount of the Notes at September 29, 2019 and March 31, 2019 represent the trading value of the instruments. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | Presented below in tabular form is information on the location and amounts of derivative fair values in the Consolidated Condensed Balance Sheets and derivative gains and losses in the Consolidated Condensed Statements of Income: Fair Value of Derivative Instruments September 29, 2019 and March 31, 2019 Derivatives and Hedging Activities Designated as Cash Flow Hedges Derivatives and Hedging Activities Not Designated as Hedging Instruments September 29, 2019 March 31, 2019 September 29, 2019 March 31, 2019 Prepaid and other current assets: Lead forward contracts $ 701 $ — $ — $ — Foreign currency forward contracts 154 — — — Total assets $ 855 $ — $ — $ — Accrued expenses: Lead forward contracts $ — $ 902 $ — $ — Foreign currency forward contracts — 8 116 241 Total liabilities $ — $ 910 $ 116 $ 241 |
The Effect Of Derivative Instruments On Consolidated Condensed Statements Of Income | The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended September 29, 2019 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ 7,872 Cost of goods sold $ 3,173 Foreign currency forward contracts (64 ) Cost of goods sold (63 ) Total $ 7,808 $ 3,110 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ (730 ) Total $ (730 ) The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended September 30, 2018 Derivatives Designated as Cash Flow Hedges Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Lead forward contracts $ (11,524 ) Cost of goods sold $ (3,742 ) Foreign currency forward contracts 138 Cost of goods sold 434 Total $ (11,386 ) $ (3,308 ) Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Pretax Gain (Loss) Foreign currency forward contracts Other (income) expense, net $ 96 Total $ 96 |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Analysis Of Changes In Liability For Product Warranties | An analysis of changes in the liability for product warranties is as follows: Quarter ended Six months ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Balance at beginning of period $ 56,179 $ 49,689 $ 54,568 $ 50,602 Current period provisions 6,475 6,181 13,994 11,017 Costs incurred (7,227 ) (7,920 ) (13,175 ) (12,301 ) Foreign currency translation adjustment (491 ) (217 ) (451 ) (1,585 ) Balance at end of period $ 54,936 $ 47,733 $ 54,936 $ 47,733 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of Restructuring Reserve | A roll-forward of the restructuring reserve is as follows: Employee Severance Other Total Balance as of March 31, 2019 $ 2,356 $ 596 $ 2,952 Accrued 2,369 173 2,542 Costs incurred (3,229 ) (696 ) (3,925 ) Foreign currency impact (24 ) (3 ) (27 ) Balance as of September 29, 2019 $ 1,472 $ 70 $ 1,542 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt And Capital Lease Obligations | The following summarizes the Company’s long-term debt as of September 29, 2019 and March 31, 2019 : September 29, 2019 March 31, 2019 Principal Unamortized Issuance Costs Principal Unamortized Issuance Costs 5.00% Senior Notes due 2023 $ 300,000 $ 2,185 $ 300,000 $ 2,497 Amended Credit Facility, due 2022 822,625 2,622 677,315 3,062 $ 1,122,625 $ 4,807 $ 977,315 $ 5,559 Less: Unamortized issuance costs 4,807 5,559 Long-term debt, net of unamortized issuance costs $ 1,117,818 $ 971,756 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost Related To Defined Benefit Pension Plans | The following tables present the components of the Company’s net periodic benefit cost related to its defined benefit pension plans: United States Plans International Plans Quarter ended Quarter ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Service cost $ — $ — $ 227 $ 252 Interest cost 154 157 364 457 Expected return on plan assets (114 ) (135 ) (518 ) (535 ) Amortization and deferral 51 36 245 304 Net periodic benefit cost $ 91 $ 58 $ 318 $ 478 United States Plans International Plans Six months ended Six months ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Service cost $ — $ — $ 462 $ 507 Interest cost 308 316 740 927 Expected return on plan assets (226 ) (257 ) (1,056 ) (1,087 ) Amortization and deferral 103 92 498 616 Net periodic benefit cost $ 185 $ 151 $ 644 $ 963 |
Stockholders' Equity and Nonc_2
Stockholders' Equity and Noncontrolling Interests (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Change In Number Of Shares Of Common Stock Outstanding | The following demonstrates the change in the number of shares of common stock outstanding during the six months ended September 29, 2019 : Shares outstanding as of March 31, 2019 42,620,750 Purchase of treasury stock (581,140 ) Shares issued towards equity-based compensation plans, net of equity awards surrendered for option price and taxes 242,224 Shares outstanding as of September 29, 2019 42,281,834 |
Components Of Accumulated Other Comprehensive Income | The components of AOCI, net of tax, as of September 29, 2019 and March 31, 2019 , are as follows: March 31, 2019 Before Reclassifications Amounts Reclassified from AOCI September 29, 2019 Pension funded status adjustment $ (20,791 ) $ — $ 474 $ (20,317 ) Net unrealized (loss) gain on derivative instruments (130 ) 3,129 (1,872 ) 1,127 Foreign currency translation adjustment (121,761 ) (35,196 ) — (156,957 ) Accumulated other comprehensive (loss) income $ (142,682 ) $ (32,067 ) $ (1,398 ) $ (176,147 ) |
Reclassification from Accumulated Other Comprehensive Income | The following table presents reclassifications from AOCI during the second quarter ended September 29, 2019 : Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in cash flow hedging relationships: Net unrealized gain on derivative instruments $ (3,110 ) Cost of goods sold Tax expense 736 Net unrealized gain on derivative instruments, net of tax $ (2,374 ) Defined benefit pension costs: Prior service costs and deferrals $ 296 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (59 ) Net periodic benefit cost, net of tax $ 237 The following table presents reclassifications from AOCI during the second quarter ended September 30, 2018 : Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in cash flow hedging relationships: Net unrealized loss on derivative instruments $ 3,308 Cost of goods sold Tax benefit (777 ) Net unrealized loss on derivative instruments, net of tax $ 2,531 Defined benefit pension costs: Prior service costs and deferrals $ 340 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (40 ) Net periodic benefit cost, net of tax $ 300 The following table presents reclassifications from AOCI during the six months ended September 29, 2019: Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in Cash Flow Hedging Relationships: Net unrealized gain on derivative instruments $ (2,452 ) Cost of goods sold Tax expense 580 Net unrealized gain on derivative instruments, net of tax $ (1,872 ) Defined benefit pension costs: Prior service costs and deferrals $ 601 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (127 ) Net periodic benefit cost, net of tax $ 474 The following table presents reclassifications from AOCI during the six months ended September 30, 2018: Components of AOCI Amounts Reclassified from AOCI Location of (Gain) Loss Recognized on Income Statement Derivatives in Cash Flow Hedging Relationships: Net unrealized loss on derivative instruments $ 3,522 Cost of goods sold Tax benefit (827 ) Net unrealized loss on derivative instruments, net of tax $ 2,695 Defined benefit pension costs: Prior service costs and deferrals $ 708 Net periodic benefit cost, included in other (income) expense, net - See Note 13 Tax benefit (108 ) Net periodic benefit cost, net of tax $ 600 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding and the calculations of net earnings per common share attributable to EnerSys stockholders. Quarter ended Six months ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net earnings attributable to EnerSys stockholders $ 62,698 $ 47,424 $ 111,334 93,284 Weighted-average number of common shares outstanding: Basic 42,392,039 42,133,484 42,524,189 42,073,015 Dilutive effect of: Common shares from exercise and lapse of equity awards, net of shares assumed reacquired 316,043 640,222 389,069 600,829 Diluted weighted-average number of common shares outstanding 42,708,082 42,773,706 42,913,258 42,673,844 Basic earnings per common share attributable to EnerSys stockholders $ 1.48 $ 1.13 $ 2.62 $ 2.22 Diluted earnings per common share attributable to EnerSys stockholders $ 1.47 $ 1.11 $ 2.59 $ 2.19 Anti-dilutive equity awards not included in diluted weighted-average common shares 1,005,326 409,425 831,068 286,755 |
Business Segments Business Segm
Business Segments Business Segments (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Selected Financial Data for Reportable Business Segments and Product Lines | Summarized financial information related to the Company's reportable segments for the second quarter and six months ended September 29, 2019 and September 30, 2018 , is shown below: Quarter ended Six months ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net sales by segment to unaffiliated customers Americas $ 524,939 $ 388,574 $ 1,042,049 $ 781,148 EMEA 182,803 203,997 386,001 414,491 Asia 54,395 67,891 114,317 135,753 Total net sales $ 762,137 $ 660,462 $ 1,542,367 $ 1,331,392 Net sales by product line Reserve power $ 426,822 $ 313,338 $ 862,665 $ 637,356 Motive power 335,315 347,124 679,702 694,036 Total net sales $ 762,137 $ 660,462 $ 1,542,367 $ 1,331,392 Intersegment sales Americas $ 8,864 $ 7,888 $ 17,428 $ 13,746 EMEA 37,842 35,039 74,723 67,126 Asia 5,084 8,055 12,042 15,669 Total intersegment sales (1) $ 51,790 $ 50,982 $ 104,193 $ 96,541 Operating earnings by segment Americas $ 52,137 $ 48,306 $ 106,493 $ 96,042 EMEA 13,295 13,829 29,006 31,032 Asia (440 ) 2,343 201 3,848 Restructuring charges - Americas (541 ) — (1,126 ) — Restructuring and other exit charges - EMEA (32 ) (1,007 ) (1,326 ) (2,199 ) Restructuring charges - Asia (268 ) (114 ) (761 ) (661 ) Inventory adjustment relating to exit activities - Asia — — — (526 ) Fixed asset write-off relating to exit activities and other - Americas (5,441 ) — (5,441 ) — Total operating earnings (2) $ 58,710 $ 63,357 $ 127,046 $ 127,536 (1 ) Intersegment sales are presented on a cost-plus basis, which takes into consideration the effect of transfer prices between legal entities. (2 ) The Company does not allocate interest expense or other (income) expense to the reportable segments. fiscal 2020 are as follows: Americas EMEA Asia Total Balance at March 31, 2019 $ 470,194 $ 143,269 $ 42,936 $ 656,399 Foreign currency translation adjustment (538 ) (4,732 ) (1,893 ) (7,163 ) Balance as of September 29, 2019 $ 469,656 $ 138,537 $ 41,043 $ 649,236 |
Basis of Presentation - (Additi
Basis of Presentation - (Additional Information) (Details) $ in Thousands | Apr. 01, 2019USD ($) |
Accounting Standards Update 2016-02 | |
Revenue from External Customer [Line Items] | |
Right-of-use asset | $ 84,878 |
Lease liability | 87,248 |
Accounting Standards Update 2018-02 | |
Revenue from External Customer [Line Items] | |
Stranded tax effects not reclassified | $ 478 |
Revenue Recognition - (Addition
Revenue Recognition - (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 762,137 | $ 660,462 | $ 1,542,367 | $ 1,331,392 | |
Remaining performance obligation | 65,975 | 65,975 | |||
Contract with customer, liability, current portion | 16,543 | 16,543 | $ 15,162 | ||
Contract with customer, liability, noncurrent portion | 6,808 | 6,808 | 6,360 | ||
Deferred Revenue, Revenue Recognized | 3,690 | 611 | 8,157 | 2,597 | |
Unbilled contracts receivable | 46,319 | 46,319 | $ 38,778 | ||
Right to recover product | 2,667 | 2,667 | |||
Refund liability | 5,213 | 5,213 | |||
Transferred over Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 33,595 | 16,491 | 75,090 | 34,895 | |
Service | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 61,282 | $ 37,105 | $ 122,000 | $ 69,200 |
Revenue Recognition - (Remainin
Revenue Recognition - (Remaining Performance Obligation) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 65,975 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 48,576 |
Remaining performance obligation, timing of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 16,621 |
Remaining performance obligation, timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 643 |
Remaining performance obligation, timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 119 |
Remaining performance obligation, timing of satisfaction | 1 year |
Leases - (Additional Informatio
Leases - (Additional Information) (Details) | Sep. 30, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Contract term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Contract term | 17 years |
Leases - (Balance Sheet Classif
Leases - (Balance Sheet Classification) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use asset | $ 77,259 |
Operating lease current liabilities | 22,122 |
Operating lease non-current liabilities | 57,581 |
Finance lease right-of-use asset | 10,724 |
Finance lease current liabilities | 10,261 |
Finance lease non-current liabilities | $ 493 |
Leases - (Lease Cost) (Details)
Leases - (Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating Leases: | ||
Operating lease cost | $ 7,260 | $ 14,555 |
Variable lease cost | 2,122 | 3,828 |
Short term lease cost | 1,927 | 4,111 |
Finance Leases: | ||
Depreciation | 138 | 281 |
Interest expense | 10 | 22 |
Total | $ 11,457 | $ 22,797 |
Leases - (Additional Informat_2
Leases - (Additional Information Related to Leases) (Details) | Sep. 30, 2019 |
Operating Leases: | |
Weighted average remaining lease term (years) | 5 years 4 months 28 days |
Weighted average discount rate | 5.38% |
Finance Leases: | |
Weighted average remaining lease term (years) | 3 years 5 months 12 days |
Weighted average discount rate | 4.93% |
Leases - (Finance and Operating
Leases - (Finance and Operating Lease Maturity Schedules) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Finance Leases | |
Six months ended March 31, 2020 | $ 10,195 |
Year ended March 31, 2021 | 194 |
Year ended March 31, 2022 | 198 |
Year ended March 31, 2023 | 155 |
Year ended March 31, 2024 | 104 |
Thereafter | 28 |
Total undiscounted lease payments | 10,874 |
Present value discount | 120 |
Lease liability | 10,754 |
Operating Leases | |
Six months ended March 31, 2020 | 13,770 |
Year ended March 31, 2021 | 22,752 |
Year ended March 31, 2022 | 17,436 |
Year ended March 31, 2023 | 12,390 |
Year ended March 31, 2024 | 8,264 |
Thereafter | 18,526 |
Total undiscounted lease payments | 93,138 |
Present value discount | 13,435 |
Lease liability | $ 79,703 |
Leases - (Supplemental Cash Flo
Leases - (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from finance leases | $ 10 | $ 22 |
Operating cash flows from operating leases | 7,170 | 14,383 |
Financing cash flows from finance leases | 138 | 281 |
Supplemental non-cash information on lease liabilities arising from right-of-use assets: | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | 0 | 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,318 | $ 4,946 |
Acquisitions - (Additional Info
Acquisitions - (Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 07, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||||
Closing day spot rate (USD per share) | $ 79.20 | |||||
Amortization of intangible assets | $ 7,309 | $ 2,046 | $ 14,625 | $ 4,115 | ||
Amortization of intangible assets, remainder of 2020 | 14,866 | 14,866 | ||||
Amortization of intangible assets, 2021 | 29,237 | 29,237 | ||||
Amortization of intangible assets, 2022 | 28,993 | 28,993 | ||||
Amortization of intangible assets, 2023 | 27,694 | 27,694 | ||||
Amortization of intangible assets, 2024 | 24,287 | 24,287 | ||||
Alpha | ||||||
Business Acquisition [Line Items] | ||||||
Initial purchase consideration | $ 750,000 | |||||
Consideration transferred | 742,502 | |||||
Estimated tax-deductible goodwill | $ 42,262 | 42,262 | ||||
Payments to acquire businesses | 650,000 | |||||
Shares issued in acquisition, value | 93,268 | |||||
Working capital adjustment | $ 766 | |||||
Shares issued in acquisition (USD per share) | $ 84.92 | |||||
Unrecognized Tax Benefits, Increase Resulting from Acquisition | $ 7,840 | |||||
Alpha | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets | 221,000 | |||||
Trademarks | Alpha | ||||||
Business Acquisition [Line Items] | ||||||
Acquired indefinite-lived intangible assets | $ 56,000 | |||||
Common Stock | Alpha | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued in acquisition (in shares) | 1,177,630 |
Acquisitions - (Assets and Liab
Acquisitions - (Assets and Liabilities Acquired) (Details) - USD ($) $ in Thousands | Dec. 07, 2018 | Sep. 30, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 649,236 | $ 656,399 | |
Alpha | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 115,467 | ||
Inventories | 84,297 | ||
Other current assets | 6,822 | ||
Other intangible assets | 332,000 | $ 332,000 | |
Property, plant and equipment | 20,987 | ||
Other assets | 9,005 | ||
Total assets acquired | 568,578 | ||
Accounts payable | 35,803 | ||
Accrued liabilities | 41,918 | ||
Deferred income taxes | 56,331 | ||
Other liabilities | 12,642 | ||
Total liabilities assumed | 146,694 | ||
Net assets acquired | 421,884 | ||
Cash paid for net assets acquired | 650,000 | ||
Shares issued in acquisition, value | 93,268 | ||
Working capital adjustment | (766) | ||
Consideration transferred | 742,502 | ||
Goodwill | $ 320,618 |
Acquisitions - (Summary of Inta
Acquisitions - (Summary of Intangible Assets) (Details) - Alpha - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2019 | Dec. 07, 2018 | |
Business Acquisition [Line Items] | ||
Other intangible assets | $ 332,000 | $ 332,000 |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |
Acquired intangible assets | $ 221,000 | |
Technology | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |
Acquired intangible assets | $ 55,000 | |
Trademarks | ||
Business Acquisition [Line Items] | ||
Acquired indefinite-lived intangible assets | $ 56,000 |
Acquisitions - (Pro Forma Infor
Acquisitions - (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||
Net sales | $ 818,279 | |
Net earnings attributable to EnerSys stockholders | $ 61,035 | |
Net earnings per share attributable to EnerSys stockholders - basic | $ 1,410 | |
Net earnings per share attributable to EnerSys stockholders - assuming dilution | $ 1,390 | |
Alpha | ||
Business Acquisition [Line Items] | ||
Net sales | $ 1,653,571 | |
Net earnings attributable to EnerSys stockholders | $ 119,748 | |
Net earnings per share attributable to EnerSys stockholders - basic | $ 2,770 | |
Net earnings per share attributable to EnerSys stockholders - assuming dilution | $ 2,730 |
Acquisitions - (Other Intangibl
Acquisitions - (Other Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross amount | $ 522,204 | $ 523,432 |
Total intangible assets, accumulated amortization | (75,740) | (61,116) |
Total intangible assets, net amount | 446,464 | 462,316 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross amount | 286,111 | 286,664 |
Finite-lived intangible assets, accumulated amortization | (53,690) | (42,704) |
Finite-lived intangible assets, net amount | 232,421 | 243,960 |
Non-compete | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross amount | 3,110 | 3,025 |
Finite-lived intangible assets, accumulated amortization | (2,804) | (2,807) |
Finite-lived intangible assets, net amount | 306 | 218 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross amount | 77,661 | 77,779 |
Finite-lived intangible assets, accumulated amortization | (15,819) | (12,229) |
Finite-lived intangible assets, net amount | 61,842 | 65,550 |
Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross amount | 152,123 | 152,484 |
Indefinite-lived intangible assets, accumulated amortization | (953) | (953) |
Indefinite-lived intangible assets, net amount | 151,170 | 151,531 |
Finite-lived intangible assets, gross amount | 2,003 | 2,003 |
Finite-lived intangible assets, accumulated amortization | (1,278) | (1,236) |
Finite-lived intangible assets, net amount | 725 | 767 |
Licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross amount | 1,196 | 1,477 |
Finite-lived intangible assets, accumulated amortization | (1,196) | (1,187) |
Finite-lived intangible assets, net amount | $ 0 | $ 290 |
Inventories - (Details)
Inventories - (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 124,761 | $ 138,718 |
Work-in-process | 105,955 | 129,736 |
Finished goods | 276,365 | 235,415 |
Total | $ 507,081 | $ 503,869 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - (Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | $ 739 | $ (1,151) |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 739 | (1,151) |
Lead forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 701 | (902) |
Lead forward contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 701 | (902) |
Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 38 | (249) |
Foreign currency forward contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | $ 38 | $ (249) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - (Additional Information) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face value of trades, percentage | 102.00% | 99.00% |
5.00% Senior Notes due 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate | 5.00% | |
Long-term debt | $ 300,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - (Carrying Amounts and Estimated Fair Values) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | $ 739 | $ 0 |
Notes | 300,000 | 300,000 |
Derivative liability | 0 | 1,151 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 739 | 0 |
Notes | 306,000 | 297,000 |
Derivative liability | $ 0 | $ 1,151 |
Derivative Financial Instrume_3
Derivative Financial Instruments - (Additional Information) (Details) $ in Thousands, lb in Millions | 6 Months Ended | |
Sep. 30, 2019USD ($)lb | Mar. 31, 2019USD ($)lb | |
Cost of Sales | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency cash flow hedge loss to be reclassified during next 12 months | $ 1,602 | |
Lead forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount in pounds | lb | 54 | 42 |
Fair value of hedges, net | $ 49,938 | $ 39,218 |
Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 45,350 | 42,318 |
Foreign currency forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 23,676 | $ 22,201 |
Maximum | Lead forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, remaining maturity | 1 year |
Derivative Financial Instrume_4
Derivative Financial Instruments - (Location and Amounts of Derivative Fair Values) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Derivatives and Hedging Activities Designated as Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets, fair value | $ 855 | $ 0 |
Derivatives liabilities, fair value | 0 | 910 |
Derivatives and Hedging Activities Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets, fair value | 0 | 0 |
Derivatives liabilities, fair value | 116 | 241 |
Foreign currency forward contracts | Derivatives and Hedging Activities Designated as Cash Flow Hedges | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets, fair value | 154 | 0 |
Foreign currency forward contracts | Derivatives and Hedging Activities Designated as Cash Flow Hedges | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities, fair value | 0 | 8 |
Foreign currency forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets, fair value | 0 | 0 |
Foreign currency forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities, fair value | 116 | 241 |
Lead forward contracts | Derivatives and Hedging Activities Designated as Cash Flow Hedges | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets, fair value | 701 | 0 |
Lead forward contracts | Derivatives and Hedging Activities Designated as Cash Flow Hedges | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities, fair value | 0 | 902 |
Lead forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets, fair value | 0 | 0 |
Lead forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities, fair value | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - (Derivatives Designated as Cash Flow Hedges) (Details) - Derivatives Designated as Cash Flow Hedges - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $ 7,808 | $ (11,386) | $ 4,101 | $ (10,289) |
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 3,110 | (3,308) | 2,452 | (3,522) |
Lead forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 7,872 | (11,524) | 4,496 | (11,009) |
Lead forward contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 3,173 | (3,742) | 2,732 | (2,719) |
Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | (64) | 138 | (395) | 720 |
Foreign currency forward contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ (63) | $ 434 | $ (280) | $ (803) |
Derivative Financial Instrume_6
Derivative Financial Instruments - (Derivatives Not Designated as Hedging Instruments) (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | $ (730) | $ 96 | $ (696) | $ (622) |
Foreign currency forward contracts | Other Income Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | $ (730) | $ 96 | $ (696) | $ (622) |
Income Taxes - (Additional Info
Income Taxes - (Additional Information) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Assets, Goodwill and Intangible Assets | $ 21,000,000 | $ 21,000,000 | ||
Effective income tax rates | (29.50%) | 18.60% | ||
Foreign income as a percentage or worldwide income | $ 0.72 | $ 0.68 | ||
Foreign effective income tax rates | (2.40%) | 11.10% | ||
Tax rate of Swiss subsidiary | 6.00% | 6.00% |
Warranty - (Analysis of Changes
Warranty - (Analysis of Changes in the Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Product Warranties Disclosures [Abstract] | ||||
Balance at beginning of period | $ 56,179 | $ 49,689 | $ 54,568 | $ 50,602 |
Current period provisions | 6,475 | 6,181 | 13,994 | 11,017 |
Costs incurred | (7,227) | (7,920) | (13,175) | (12,301) |
Foreign currency translation adjustment | (491) | (217) | (451) | (1,585) |
Balance at end of period | $ 54,936 | $ 47,733 | $ 54,936 | $ 47,733 |
Commitments, Contingencies an_2
Commitments, Contingencies and Litigation - (Additional Information) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Jun. 30, 2017 | Feb. 29, 2016 | Sep. 30, 2019 | Mar. 31, 2019 | |
Commitments, Contingencies And Litigation [Line Items] | |||||
Provision for environmental liabilities | $ 1,060 | $ 1,081 | |||
Belgium Anti-Competition Proceeding | |||||
Commitments, Contingencies And Litigation [Line Items] | |||||
Penalties paid relating to anti-competition investigations | $ 1,962 | 1,272 | |||
Germany Anti-Competition Proceeding | |||||
Commitments, Contingencies And Litigation [Line Items] | |||||
Penalties paid relating to anti-competition investigations | $ 14,811 | ||||
Reserves for anti-competition investigations | $ 0 | $ 7,258 | |||
Litigation Settlement, Amount Awarded to Other Party | $ 7,258 |
Restructuring Plans - (Addition
Restructuring Plans - (Additional Information) (Details) $ in Thousands | Sep. 19, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Employee | Sep. 30, 2018USD ($) | Mar. 31, 2019USD ($)Employee | Mar. 31, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||||
Write-off of assets relating to exit activities and other | $ 9,969 | $ 1,073 | ||||||
Restructuring and other exit (credits) | $ 6,282 | $ 1,121 | 8,654 | 2,860 | ||||
Restructuring costs incurred | 3,925 | |||||||
Restructuring reserve | 1,542 | 1,542 | $ 2,952 | |||||
EMEA | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | 32 | 1,007 | 1,326 | 2,199 | ||||
EMEA | Restructurings Related to Improving Efficiency Related to Supply Chain and General Operations | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Write-off of assets relating to exit activities and other | $ 7,400 | |||||||
Expected reduction in number of employees | Employee | 80 | |||||||
Restructuring and other exit (credits) | 248 | |||||||
Restructuring costs incurred | 425 | $ 2,844 | 1,350 | |||||
Restructuring reserve | 865 | 865 | ||||||
Expected additional restructuring charges | 1,700 | 1,700 | ||||||
EMEA | Restructurings Related to Improving Efficiency Related to Supply Chain and General Operations | Non-cash charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | 69 | |||||||
EMEA | Restructurings Related to Improving Efficiency Related to Supply Chain and General Operations | Cash charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | 3,104 | $ 2,260 | ||||||
EMEA | Restructurings Related to Improving Efficiencies of General Operations in the Americas | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Write-off of assets relating to exit activities and other | $ 2,500 | |||||||
Expected reduction in number of employees | Employee | 35 | |||||||
Restructuring and other exit (credits) | $ 347 | |||||||
Restructuring costs incurred | 632 | 83 | ||||||
Restructuring reserve | 156 | 156 | ||||||
EMEA | Restructurings Related to Improving Efficiencies of General Operations in the Americas | Non-cash charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | 537 | |||||||
Americas | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | 541 | 0 | 1,126 | 0 | ||||
Americas | Restructurings Related to Improving Efficiencies of General Operations in the Americas | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Write-off of assets relating to exit activities and other | $ 4,100 | |||||||
Expected reduction in number of employees | Employee | 85 | |||||||
Restructuring and other exit (credits) | $ 1,970 | |||||||
Restructuring costs incurred | 484 | 1,480 | ||||||
Restructuring reserve | 10 | 10 | ||||||
Americas | Restructurings Related to Improving Efficiencies of General Operations in the Americas | Non-cash charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | 2,095 | |||||||
Americas | Second Restructuring Related to Improving Efficiencies of General Operations | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Write-off of assets relating to exit activities and other | $ 1,400 | |||||||
Expected reduction in number of employees | Employee | 50 | |||||||
Restructuring and other exit (credits) | $ 1,126 | |||||||
Restructuring costs incurred | 687 | |||||||
Restructuring reserve | 441 | 441 | ||||||
Asia | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | 268 | 114 | 761 | $ 661 | ||||
Asia | Restructurings Related to Improving Efficiencies of Reserve Power Operations in EMEA | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Write-off of assets relating to exit activities and other | $ 5,300 | |||||||
Expected reduction in number of employees | Employee | 150 | |||||||
Restructuring and other exit (credits) | 631 | $ 2,772 | ||||||
Restructuring costs incurred | 1,697 | 1,683 | ||||||
Restructuring reserve | 70 | 70 | ||||||
Asia | Restructurings Related to Improving Efficiencies of Reserve Power Operations in EMEA | Non-cash charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | 130 | 771 | ||||||
Asia | Restructuring Related to Improving Profitability in India | Non-cash charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | $ 526 | |||||||
Closure Of Facility In Targovishte Bulgaria | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | $ 1,325 | 20,242 | ||||||
Expected remaining cost | $ 30,000 | |||||||
Strategy To Exit Manufacture Of Batteries For Diesel-Electric Submarines | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Proceeds from Sale of Productive Assets | 2,031 | |||||||
Gain (Loss) on Disposition of Assets | $ 892 | |||||||
Fixed Asset Write-Off, Kentucky And Tennessee Plants | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | $ 5,441 | |||||||
Richmond Kentucky Battery Formation Area Fire | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other exit (credits) | $ 1,934 | |||||||
Prepaid Insurance | $ 1,934 |
Restructuring Plans - (Roll-for
Restructuring Plans - (Roll-forward of Restructuring Reserve) (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserve, beginning balance | $ 2,952 |
Accrued | 2,542 |
Costs incurred | (3,925) |
Foreign currency impact | (27) |
Restructuring reserve, ending balance | 1,542 |
Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserve, beginning balance | 2,356 |
Accrued | 2,369 |
Costs incurred | (3,229) |
Foreign currency impact | (24) |
Restructuring reserve, ending balance | 1,472 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserve, beginning balance | 596 |
Accrued | 173 |
Costs incurred | (696) |
Foreign currency impact | (3) |
Restructuring reserve, ending balance | $ 70 |
Debt - (Long-term Debt Includin
Debt - (Long-term Debt Including Capital Lease Obligations) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 | Apr. 23, 2015 |
Debt Instrument [Line Items] | |||
Debt and capital lease obligations | $ 1,122,625 | $ 977,315 | |
Unamortized Issuance Costs | 4,807 | 5,559 | |
Long-term debt, net of unamortized issuance costs | 1,117,818 | 971,756 | |
5.00% Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300,000 | 300,000 | $ 300,000 |
Unamortized Issuance Costs | 2,185 | 2,497 | |
Secured Debt | Incremental Commitment Agreement | Amended Credit Facility, due 2022 | |||
Debt Instrument [Line Items] | |||
Incremental term loan commitment | 822,625 | 677,315 | |
Unamortized Issuance Costs | $ 2,622 | $ 3,062 |
Debt - (Additional Information)
Debt - (Additional Information) (Details) | Aug. 04, 2017USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2019CAD ($) | Mar. 31, 2019USD ($) | Apr. 23, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||
Increase in borrowing capacity limit | $ 325,000,000 | |||||||
Company owned capital stock, percentage securing senior secured credit facility | 65.00% | |||||||
Short-term debt | $ 34,351,000 | $ 34,351,000 | $ 54,490,000 | |||||
Short-term debt, weighted average interest rate | 4.00% | 4.00% | ||||||
Amortization expense relating to debt issuance costs and included in interest expense | $ 374,000 | $ 314,000 | $ 752,000 | $ 627,000 | ||||
Deferred issuance costs, net of accumulated amortization | 4,807,000 | 4,807,000 | 5,559,000 | |||||
5.00% Senior Notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 300,000,000 | 300,000,000 | 300,000,000 | $ 300,000,000 | ||||
Interest rate | 5.00% | |||||||
Standby Letters of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Available lines of credit | 425,615,000 | 425,615,000 | 546,960,000 | |||||
Stand by letters of credit | 3,955,000 | 3,955,000 | ||||||
Outstanding amount | 118,921,000 | 118,921,000 | 87,685,000 | |||||
Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Consideration transferred | 250,000 | |||||||
Amended Credit Facility, due 2022 | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | 100,000,000 | ||||||
Available lines of credit | 389,000,000 | 389,000,000 | ||||||
Amended Credit Facility, due 2022 | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 299,105,000 | |||||||
Debt instrument, face amount | $ 150,000,000 | |||||||
Available lines of credit | 433,625,000 | 433,625,000 | ||||||
Current portion of long-term debt | $ 33,888,000 | $ 33,888,000 | ||||||
Amended 2017 Term Loan | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 99,105,000 | |||||||
Amended 2017 Term Loan | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 133,050,000 | 449,105,000 | ||||||
Amended 2017 Revolver | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 700,000,000 | |||||||
LIBOR | 2017 Revolver And 2017 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
LIBOR | 2017 Revolver And 2017 Term Loan | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
LIBOR | 2017 Revolver And 2017 Term Loan | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.00% | |||||||
Federal Funds Effective Rate | 2017 Revolver And 2017 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Eurocurrency Base Rate | 2017 Revolver And 2017 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Debt Instrument Quarterly Installments Beginning December 31, 2018 Through December 30, 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, periodic payment | $ 5,645,000 | |||||||
Debt Instrument Quarterly Installments Beginning December 31, 2019 Through December 30, 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, periodic payment | 8,468,000 | |||||||
Debt Instrument Quarterly Installments Beginning December 31, 2020 Through September 29, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, periodic payment | 11,290,000 | |||||||
Debt Instrument Final Installments Payable On September 30, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, periodic payment | $ 320,000,000 | |||||||
Maximum Leverage Ratio | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 4 | 4 | ||||||
Maximum Leverage Ratio | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 3.50 | 3.50 | ||||||
Maximum Leverage Ratio | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 4 | 4 |
Retirement Plans - (Net Periodi
Retirement Plans - (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
United States Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 154 | 157 | 308 | 316 |
Expected return on plan assets | (114) | (135) | (226) | (257) |
Amortization and deferral | 51 | 36 | 103 | 92 |
Net periodic benefit cost | 91 | 58 | 185 | 151 |
International Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 227 | 252 | 462 | 507 |
Interest cost | 364 | 457 | 740 | 927 |
Expected return on plan assets | (518) | (535) | (1,056) | (1,087) |
Amortization and deferral | 245 | 304 | 498 | 616 |
Net periodic benefit cost | $ 318 | $ 478 | $ 644 | $ 963 |
Stock-Based Compensation - (Add
Stock-Based Compensation - (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grants | 4,173,554 | 4,173,554 | ||
Equity-based compensation expense | $ 4,994 | $ 4,788 | $ 8,868 | $ 9,129 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested restricted stock and restricted stock units (in shares) | 162,119 | |||
RSUs and PSUs outstanding (in shares) | 888,525 | 888,525 | ||
Market Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs and PSUs outstanding (in shares) | 207,340 | 207,340 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options exercised (in shares) | 661 | |||
Phantom Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs and PSUs outstanding (in shares) | 102,006 | 102,006 | ||
Non-employee Directors [Member] | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock unit grants during period (in shares) | 32,460 | |||
Non-employee Directors [Member] | Market Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock unit grants during period (in shares) | 171,980 | |||
Management And Other Key Employees [Member] | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock unit grants during period (in shares) | 301,321 | |||
Management And Other Key Employees [Member] | Market Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock unit grants during period (in shares) | 51,063 | |||
Management And Other Key Employees [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option grants outstanding (in shares) | 825,153 | 825,153 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 284,109 | |||
Management And Other Key Employees [Member] | Phantom Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock unit grants during period (in shares) | 62,512 |
Stockholders' Equity and Nonc_3
Stockholders' Equity and Noncontrolling Interests - (Change in the Number of Shares of Common Stock Outstanding) (Details) | 6 Months Ended |
Sep. 30, 2019shares | |
Common Stock Outstanding Roll Forward | |
Shares outstanding, beginning balance (in shares) | 42,620,750 |
Purchase of treasury stock (in shares) | 581,140 |
Shares issued towards equity-based compensation plans, net of equity awards surrendered for option price and taxes (in shares) | 242,224 |
Shares outstanding, ending balance (in shares) | 42,281,834 |
Stockholders' Equity and Nonc_4
Stockholders' Equity and Noncontrolling Interests - (Treasury Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | |
Equity [Abstract] | |||
Purchase of treasury stock (in shares) | 581,140 | ||
Treasury stock purchased during period, value | $ 34,561 | $ 0 | |
Treasury stock (in shares) | 12,803,302 | 12,227,773 | |
Treasury shares issued (in shares) | 5,611 | ||
Treasury shares issued (in dollars per share) | $ 62.55 |
Stockholders' Equity and Nonc_5
Stockholders' Equity and Noncontrolling Interests - (Components of Accumulated Other Comprehensive Income) (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | $ 1,286,017 |
Ending balance | 1,318,991 |
Pension funded status adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | 20,791 |
Before Reclassifications | 0 |
Amounts Reclassified from AOCI | (474) |
Ending balance | 20,317 |
Net unrealized (loss) gain on derivative instruments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | (130) |
Before Reclassifications | (3,129) |
Amounts Reclassified from AOCI | (1,872) |
Ending balance | 1,127 |
Foreign currency translation adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | (121,761) |
Before Reclassifications | 35,196 |
Amounts Reclassified from AOCI | 0 |
Ending balance | (156,957) |
Accumulated other comprehensive (loss) income | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Beginning balance | (142,682) |
Before Reclassifications | (32,067) |
Amounts Reclassified from AOCI | (1,398) |
Ending balance | $ (176,147) |
Stockholders' Equity and Nonc_6
Stockholders' Equity and Noncontrolling Interests - (Reclassifications from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized gain on derivative instruments | $ (564,820) | $ (499,582) | $ (1,143,538) | $ (1,004,652) |
Derivatives in cash flow hedging relationships | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax expense (benefit) | 736 | (777) | 580 | (827) |
Net of tax | (2,374) | 2,531 | (1,872) | 2,695 |
Derivatives in cash flow hedging relationships | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized gain on derivative instruments | (3,110) | 3,308 | (2,452) | 3,522 |
Defined benefit pension costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Prior service costs and deferrals | 296 | 340 | 601 | 708 |
Tax expense (benefit) | (59) | (40) | (127) | (108) |
Net of tax | $ 237 | $ 300 | $ 474 | $ 600 |
- (Other Disclosures) (Details)
- (Other Disclosures) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | $ 1,296,573 | $ 1,286,017 | $ 1,176,435 | $ 1,201,111 | $ 1,286,017 | $ 1,201,111 |
Stock-based compensation | 4,994 | 3,874 | 4,788 | 4,341 | ||
Exercise of stock options | (13) | 38 | 1,469 | 6,797 | ||
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | (169) | (6,081) | 69 | (3,453) | ||
Purchase of common stock | (11,532) | (23,029) | ||||
Other | (80) | (1) | (152) | |||
Net earnings | 62,698 | 48,636 | 47,447 | 46,020 | ||
Dividends ($0.70 per common share) | (7,399) | (7,499) | (7,376) | (7,371) | ||
Reissuance of treasury stock towards employee stock purchase plan | 213 | |||||
Contra equity - indemnification receivable for acquisition related tax liability | 2,002 | |||||
Other comprehensive income: | ||||||
Pension funded status adjustment, net of tax | 237 | 237 | 300 | 300 | 474 | 600 |
Net unrealized gain (loss) on derivative instruments, net of tax | 3,586 | (2,329) | (6,179) | 1,005 | 1,257 | (5,174) |
Foreign currency translation adjustment (excludes losses related to redeemable noncontrolling interests) | (32,199) | (3,211) | (14,150) | (72,163) | (35,410) | (86,313) |
Ending balance | $ 1,318,991 | $ 1,296,573 | $ 1,202,802 | $ 1,176,435 | $ 1,318,991 | $ 1,202,802 |
Dividends per common share (in dollars per share) | $ 0.175 | $ 0.7 | $ 0.175 | $ 0.175 | $ 0.35 | $ 0.35 |
Pension funded status adjustment, tax benefit (expense) | $ 59 | $ 68 | $ 40 | $ 68 | ||
Net unrealized gain (loss) on derivative instruments, tax (benefit) expense | (1,112) | 720 | 1,899 | (306) | ||
Preferred Stock | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | 0 | 0 | 0 | 0 | $ 0 | $ 0 |
Other comprehensive income: | ||||||
Ending balance | 0 | 0 | 0 | 0 | 0 | 0 |
Common Stock | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | 551 | 548 | 548 | 546 | 548 | 546 |
Exercise of stock options | 3 | 2 | ||||
Other comprehensive income: | ||||||
Ending balance | 551 | 551 | 548 | 548 | 551 | 548 |
Additional Paid-in Capital | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | 510,577 | 512,696 | 484,960 | 477,288 | 512,696 | 477,288 |
Stock-based compensation | 4,994 | 3,874 | 4,788 | 4,341 | ||
Exercise of stock options | (13) | 35 | 1,469 | 6,795 | ||
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | (169) | (6,081) | 69 | (3,453) | ||
Other | (80) | (1) | (152) | |||
Dividends ($0.70 per common share) | 209 | 133 | 187 | 141 | ||
Other comprehensive income: | ||||||
Ending balance | 515,598 | 510,577 | 491,472 | 484,960 | 515,598 | 491,472 |
Treasury Stock | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | (553,789) | (530,760) | (560,991) | (560,991) | (530,760) | (560,991) |
Purchase of common stock | (11,532) | (23,029) | ||||
Reissuance of treasury stock towards employee stock purchase plan | 213 | |||||
Other comprehensive income: | ||||||
Ending balance | (565,108) | (553,789) | (560,991) | (560,991) | (565,108) | (560,991) |
Retained Earnings | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | 1,491,329 | 1,450,325 | 1,358,897 | 1,320,549 | 1,450,325 | 1,320,549 |
Net earnings | 62,698 | 48,636 | 47,424 | 45,860 | ||
Dividends ($0.70 per common share) | (7,608) | (7,632) | (7,563) | (7,512) | ||
Other comprehensive income: | ||||||
Ending balance | 1,546,419 | 1,491,329 | 1,398,758 | 1,358,897 | 1,546,419 | 1,398,758 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | (147,902) | (142,682) | (112,076) | (41,717) | (142,682) | (41,717) |
Other comprehensive income: | ||||||
Pension funded status adjustment, net of tax | 237 | 237 | 300 | 300 | ||
Net unrealized gain (loss) on derivative instruments, net of tax | 3,586 | (2,329) | (6,179) | 1,005 | ||
Foreign currency translation adjustment (excludes losses related to redeemable noncontrolling interests) | (32,068) | (3,128) | (13,927) | (71,664) | ||
Ending balance | (176,147) | (147,902) | (131,882) | (112,076) | (176,147) | (131,882) |
Contra-Equity | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | (7,840) | (7,840) | 0 | 0 | (7,840) | 0 |
Contra equity - indemnification receivable for acquisition related tax liability | 2,002 | |||||
Other comprehensive income: | ||||||
Ending balance | (5,838) | (7,840) | 0 | 0 | (5,838) | 0 |
Total EnerSys Stockholders’ Equity | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | 1,292,926 | 1,282,287 | 1,171,338 | 1,195,675 | 1,282,287 | 1,195,675 |
Stock-based compensation | 4,994 | 3,874 | 4,788 | 4,341 | ||
Exercise of stock options | (13) | 38 | 1,469 | 6,797 | ||
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | (169) | (6,081) | 69 | (3,453) | ||
Purchase of common stock | (11,532) | (23,029) | ||||
Other | (80) | (1) | (152) | |||
Net earnings | 62,698 | 48,636 | 47,424 | 45,860 | ||
Dividends ($0.70 per common share) | (7,399) | (7,499) | (7,376) | (7,371) | ||
Reissuance of treasury stock towards employee stock purchase plan | 213 | |||||
Contra equity - indemnification receivable for acquisition related tax liability | 2,002 | |||||
Other comprehensive income: | ||||||
Pension funded status adjustment, net of tax | 237 | 237 | 300 | 300 | ||
Net unrealized gain (loss) on derivative instruments, net of tax | 3,586 | (2,329) | (6,179) | 1,005 | ||
Foreign currency translation adjustment (excludes losses related to redeemable noncontrolling interests) | (32,068) | (3,128) | (13,927) | (71,664) | ||
Ending balance | 1,315,475 | 1,292,926 | 1,197,905 | 1,171,338 | 1,315,475 | 1,197,905 |
Non- redeemable Non- Controlling Interests | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning balance | 3,647 | 3,730 | 5,097 | 5,436 | 3,730 | 5,436 |
Net earnings | 23 | 160 | ||||
Other comprehensive income: | ||||||
Foreign currency translation adjustment (excludes losses related to redeemable noncontrolling interests) | (131) | (83) | (223) | (499) | ||
Ending balance | $ 3,516 | $ 3,647 | $ 4,897 | $ 5,097 | $ 3,516 | $ 4,897 |
Earnings Per Share - (Reconcili
Earnings Per Share - (Reconciliation from Basic to Diluted Average Common Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net earnings attributable to EnerSys stockholders | $ 47,424 | $ 111,334 | $ 93,284 | |
Basic weighted-average number of common shares outstanding (in shares) | 42,392,039 | 42,133,484 | 42,524,189 | 42,073,015 |
Common shares from exercise and lapse of equity awards, net of shares assumed reacquired (in shares) | 316,043 | 640,222 | 389,069 | 600,829 |
Diluted weighted-average number of common shares outstanding (in shares) | 42,708,082 | 42,773,706 | 42,913,258 | 42,673,844 |
Basic earnings (loss) per common share attributable to EnerSys stockholders (in dollars per share) | $ 1.48 | $ 1.13 | $ 2.62 | $ 2.22 |
Diluted earnings (loss) per common share attributable to EnerSys stockholders (in dollars per share) | $ 1.47 | $ 1.11 | $ 2.59 | $ 2.19 |
Anti-dilutive equity awards not included in diluted weighted-average common shares (in shares) | 1,005,326 | 409,425 | 831,068 | 286,755 |
Redeemable Noncontrolling Interest [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net earnings attributable to EnerSys stockholders | $ 62,698 |
Business Segments - (Details)
Business Segments - (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Net sales | $ 762,137 | $ 660,462 | $ 1,542,367 | $ 1,331,392 |
Intersegment sales | 51,790 | 50,982 | 104,193 | 96,541 |
Operating earnings by segment | 58,710 | 63,357 | 127,046 | 127,536 |
Restructuring charges | (6,282) | (1,121) | (8,654) | (2,860) |
Energy Systems | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 426,822 | 313,338 | 862,665 | 637,356 |
Motive Power | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 335,315 | 347,124 | 679,702 | 694,036 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 524,939 | 388,574 | 1,042,049 | 781,148 |
Intersegment sales | 8,864 | 7,888 | 17,428 | 13,746 |
Operating earnings by segment | 52,137 | 48,306 | 106,493 | 96,042 |
Restructuring charges | (541) | 0 | (1,126) | 0 |
Americas | Fixed Asset Write-Off | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | (5,441) | 0 | (5,441) | 0 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 182,803 | 203,997 | 386,001 | 414,491 |
Intersegment sales | 37,842 | 35,039 | 74,723 | 67,126 |
Operating earnings by segment | 13,295 | 13,829 | 29,006 | 31,032 |
Restructuring charges | (32) | (1,007) | (1,326) | (2,199) |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 54,395 | 67,891 | 114,317 | 135,753 |
Intersegment sales | 5,084 | 8,055 | 12,042 | 15,669 |
Operating earnings by segment | (440) | 2,343 | 201 | 3,848 |
Restructuring charges | (268) | (114) | (761) | (661) |
Asia | Inventory Adjustment | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ (526) |
Business Segments - (Goodwill)
Business Segments - (Goodwill) (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | |
Balance at March 31, 2019 | $ 656,399 |
Foreign currency translation adjustment | (7,163) |
Balance as of September 29, 2019 | 649,236 |
Americas | |
Segment Reporting Information [Line Items] | |
Balance at March 31, 2019 | 470,194 |
Foreign currency translation adjustment | (538) |
Balance as of September 29, 2019 | 469,656 |
EMEA | |
Segment Reporting Information [Line Items] | |
Balance at March 31, 2019 | 143,269 |
Foreign currency translation adjustment | (4,732) |
Balance as of September 29, 2019 | 138,537 |
Asia | |
Segment Reporting Information [Line Items] | |
Balance at March 31, 2019 | 42,936 |
Foreign currency translation adjustment | (1,893) |
Balance as of September 29, 2019 | $ 41,043 |
Subsequent Events - (Details)
Subsequent Events - (Details) - USD ($) | Nov. 06, 2019 | Sep. 30, 2019 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Common stock dividends (in dollars per share) | $ 0.175 | |
N Holding AB [Member] | ||
Subsequent Event [Line Items] | ||
Payments to acquire businesses | $ 78,000 | |
Debt assumed | $ 104,500 |