RBC Bearings (RBC) 10-Q 5 Aug 21 2022 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Jul. 03, 2021	Jul. 30, 2021
Document Information Line Items
Entity Registrant Name	RBC BEARINGS INCORPORATED
Trading Symbol	ROLL
Document Type	10-Q
Current Fiscal Year End Date	--04-02
Entity Common Stock, Shares Outstanding		25,420,756
Amendment Flag	false
Entity Central Index Key	0001324948
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Period End Date	Jul. 3, 2021
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-124824
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4372080
Entity Address, Address Line One	One Tribology Center
Entity Address, City or Town	Oxford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06478
City Area Code	(203)
Local Phone Number	267-7001
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 03, 2021	Apr. 03, 2021
Current assets:
Cash and cash equivalents	$ 175,771	$ 151,086
Marketable securities	120,320	90,249
Accounts receivable, net of allowance for doubtful accounts of $1,872 at July 3, 2021 and $1,792 at April 3, 2021	105,756	110,472
Inventory	369,854	364,147
Prepaid expenses and other current assets	14,423	12,248
Total current assets	786,124	728,202
Property, plant and equipment, net	206,276	208,264
Operating lease assets, net	34,671	35,664
Goodwill	277,930	277,536
Intangible assets, net	153,756	154,399
Other assets	31,842	30,195
Total assets	1,490,599	1,434,260
Current liabilities:
Accounts payable	42,687	36,336
Accrued expenses and other current liabilities	46,724	43,564
Current operating lease liabilities	5,586	5,726
Current portion of long-term debt	505	2,612
Total current liabilities	95,502	88,238
Long-term debt, less current portion	10,249	13,495
Long-term operating lease liabilities	29,142	29,982
Deferred income taxes	17,956	17,178
Other noncurrent liabilities	63,374	55,416
Total liabilities	216,223	204,309
Stockholders’ equity:
Preferred stock, $.01 par value; authorized shares: 10,000,000 at July 3, 2021 and April 3, 2021, respectively; none issued or outstanding
Common stock, $.01 par value; authorized shares: 60,000,000 at July 3, 2021 and April 3, 2021, respectively; issued shares: 26,336,894 and 26,110,320 at July 3, 2021 and April 3, 2021, respectively	263	261
Additional paid-in capital	467,524	445,073
Accumulated other comprehensive loss	(8,172)	(10,409)
Retained earnings	884,851	858,852
Treasury stock, at cost, 916,273 shares and 884,701 shares at July 3, 2021 and April 3, 2021, respectively	(70,090)	(63,826)
Total stockholders’ equity	1,274,376	1,229,951
Total liabilities and stockholders’ equity	$ 1,490,599	$ 1,434,260

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jul. 03, 2021	Apr. 03, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in Dollars)	$ 1,872	$ 1,792
Preferred stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued
Preferred stock, outstanding
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	60,000,000	60,000,000
Common stock, issued	26,336,894	26,110,320
Treasury stock, shares	916,273	884,701

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Income Statement [Abstract]
Net sales	$ 156,205	$ 156,493
Cost of sales	92,432	97,040
Gross margin	63,773	59,453
Operating expenses:
Selling, general and administrative	29,802	26,829
Other, net	3,248	3,810
Total operating expenses	33,050	30,639
Operating income	30,723	28,814
Interest expense, net	319	425
Other non-operating (income)/expense	(465)	42
Income before income taxes	30,869	28,347
Provision for income taxes	4,870	5,658
Net income	$ 25,999	$ 22,689
Net income per common share:
Basic (in Dollars per share)	$ 1.04	$ 0.92
Diluted (in Dollars per share)	$ 1.03	$ 0.91
Weighted average common shares:
Basic (in Shares)	25,021,063	24,763,903
Diluted (in Shares)	25,308,723	24,933,941

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended
		Jul. 03, 2021	Jun. 27, 2020
Statement of Comprehensive Income [Abstract]
Net income		$ 25,999	$ 22,689
Pension and postretirement liability adjustments, net of taxes	[1]	318	260
Foreign currency translation adjustments		1,919	409
Total comprehensive income		$ 28,236	$ 23,358
[1]	These adjustments were net of tax expense of $83 and $79 for the three-month periods ended July 3, 2021 and June 27, 2020, respectively.

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Statement of Comprehensive Income [Abstract]
Net of tax expense	$ 83	$ 79

Consolidated Statements of Stoc

Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income/(Loss)	Retained Earnings	Treasury Stock	Total
Balance at Mar. 28, 2020	$ 259	$ 412,400	$ (6,898)	$ 769,219	$ (56,981)	$ 1,117,999
Balance (in Shares) at Mar. 28, 2020	25,881,415				(838,982)
Net income				22,689		22,689
Share-based compensation		5,438				5,438
Repurchase of common stock					$ (4,391)	(4,391)
Repurchase of common stock (in Shares)					(31,179)
Exercise of equity awards		231				231
Exercise of equity awards (in Shares)	4,200
Change in net prior service cost and actuarial losses, net of tax expense			260			260
Issuance of restricted stock
Issuance of restricted stock (in Shares)	56,157
Currency translation adjustments			409			409
Balance at Jun. 27, 2020	$ 259	418,069	(6,229)	791,908	$ (61,372)	1,142,635
Balance (in Shares) at Jun. 27, 2020	25,941,772				(870,161)
Balance at Apr. 03, 2021	$ 261	445,073	(10,409)	858,852	$ (63,826)	1,229,951
Balance (in Shares) at Apr. 03, 2021	26,110,320				(884,701)
Net income				25,999		25,999
Share-based compensation		5,772				5,772
Repurchase of common stock					$ (6,264)	(6,264)
Repurchase of common stock (in Shares)					(31,572)
Exercise of equity awards	$ 2	16,679				16,681
Exercise of equity awards (in Shares)	135,518
Change in net prior service cost and actuarial losses, net of tax expense			318			318
Issuance of restricted stock
Issuance of restricted stock (in Shares)	91,056
Currency translation adjustments			1,919			1,919
Balance at Jul. 03, 2021	$ 263	$ 467,524	$ (8,172)	$ 884,851	$ (70,090)	$ 1,274,376
Balance (in Shares) at Jul. 03, 2021	26,336,894				(916,273)

Consolidated Statements of St_2

Consolidated Statements of Stockholders’ Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Statement of Stockholders' Equity [Abstract]
Net of tax expense	$ 83	$ 79

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Cash flows from operating activities:
Net income	$ 25,999	$ 22,689
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	5,628	5,892
Deferred income taxes	725	2,865
Amortization of intangible assets	2,584	2,504
Amortization of deferred financing costs	106	141
Share-based compensation	5,772	5,438
Loss/(gain) on disposition of assets	13	3
Consolidation, restructuring and other non-cash charges	467
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	4,890	15,848
Inventory	(4,879)	(3,294)
Prepaid expenses and other current assets	(2,201)	1,240
Other non-current assets	(2,003)	(4,678)
Accounts payable	6,285	739
Accrued expenses and other current liabilities	2,899	(4,180)
Other non-current liabilities	7,008	3,152
Net cash provided by operating activities	53,293	48,359
Cash flows from investing activities:
Purchase of property, plant and equipment	(3,367)	(3,875)
Proceeds from sale of assets	5	5
Purchase of marketable securities	(29,949)
Acquisition of business		245
Net cash used in investing activities	(33,311)	(3,625)
Cash flows from financing activities:
Repayments of term loan	(5,753)
Repayments of notes payable	(128)	(122)
Exercise of stock options	16,681	231
Repurchase of common stock	(6,264)	(4,391)
Net cash provided by/(used in) financing activities	4,536	(4,282)
Effect of exchange rate changes on cash	167	(92)
Cash and cash equivalents:
Increase during the period	24,685	40,360
Cash, at beginning of period	151,086	103,255
Cash, at end of period	175,771	143,615
Supplemental disclosures of cash flow information:
Income taxes	606	899
Interest	$ 216	$ 267

Basis of Presentation

Basis of Presentation	3 Months Ended
	Jul. 03, 2021
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation The interim consolidated financial statements included herein have been prepared by RBC Bearings Incorporated, a Delaware corporation (collectively with its subsidiaries, the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The interim financial statements included with this report have been prepared on a consistent basis with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 3, 2021. We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP). As used in this report, the terms “we,” “us,” “our,” “RBC” and the “Company” mean RBC Bearings Incorporated and its subsidiaries, unless the context indicates another meaning. These statements reflect all adjustments, accruals and estimates, consisting only of items of a normal recurring nature, that are, in the opinion of management, necessary for the fair presentation of the consolidated financial condition and consolidated results of operations for the interim periods presented. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Annual Report on Form 10-K. The results of operations for the three-month period ended July 3, 2021 are not necessarily indicative of the operating results for the entire fiscal year ending April 2, 2022. The three-month periods ended July 3, 2021 and June 27, 2020 each include 13 weeks. The amounts shown are in thousands, unless otherwise indicated.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Jul. 03, 2021
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies The Company’s significant accounting policies are detailed in “Note 2 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended April 3, 2021. Significant changes to our accounting policies as a result of adopting new accounting standards are discussed below. Recent Accounting Standards Adopted In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Other new pronouncements issued but not effective until after April 2, 2022 are not expected to have a material impact on our financial position, results of operations or liquidity.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Jul. 03, 2021
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	3. Revenue from Contracts with Customers Disaggregation of Revenue The Company operates in four business segments with similar economic characteristics, including nature of the products and production processes, distribution patterns and classes of customers. Revenue is disaggregated within these business segments by our two principal end markets: aerospace and industrial. Comparative information of the Company’s overall revenues for the three-month periods ended July 3, 2021 and June 27, 2020 are as follows: Principal End Markets Three Months Ended July 3, 2021 June 27, 2020 Aerospace Industrial Total Aerospace Industrial Total Plain $ 48,968 $ 24,353 $ 73,321 $ 59,352 $ 19,523 $ 78,875 Roller 8,787 16,460 25,247 13,230 9,670 22,900 Ball 7,210 15,918 23,128 7,022 11,818 18,840 Engineered Products 15,928 18,581 34,509 19,378 16,500 35,878 $ 80,893 $ 75,312 $ 156,205 $ 98,982 $ 57,511 $ 156,493 Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders meeting the definition of a contract in the new revenue standard for which work has not been performed or has been partially performed and excludes unexercised contract options. The duration of the majority of our contracts, as defined by ASC Topic 606, is less than one year. The Company has elected to apply the practical expedient, which allows companies to exclude remaining performance obligations with an original expected duration of one year or less. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $288,731 at July 3, 2021. The Company expects to recognize revenue on approximately 56% and 84% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. Contract Balances The timing of revenue recognition, invoicing and cash collections affect accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the consolidated balance sheets. These assets and liabilities are reported on the consolidated balance sheets on an individual contract basis at the end of each reporting period. Contract Assets (Unbilled Receivables) As of July 3, 2021 and April 3, 2021, current contract assets were $6,196 and $5,584, respectively, and included within prepaid expenses and other current assets on the consolidated balance sheets. The increase in contract assets was primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations prior to billing partially offset by amounts billed to customers during the period. As of July 3, 2021 and April 3, 2021, the Company did not have any contract assets classified as noncurrent on the consolidated balance sheets. There were no impairment losses related to the Company’s contract assets during the three months ended July 3, 2021. Contract Liabilities (Deferred Revenue) As of July 3, 2021 and April 3, 2021, current contract liabilities were $14,624 and $16,998, respectively, and included within accrued expenses and other current liabilities on the consolidated balance sheets. The decrease in current contract liabilities was primarily due to the amount of advanced payments received and reclassifications between current and noncurrent contract liabilities based on anticipated timing of performance obligations and revenue recognized during the period. For the three months ended July 3, 2021, the Company recognized revenues of $4,650 that were included in the contract liability balance as of April 3, 2021. For the three months ended June 27, 2020, the Company recognized revenues of $5,821 that were included in the contract liability balance at March 28, 2020. As of July 3, 2021 and April 3, 2021, noncurrent contract liabilities were $9,642 and $3,754, respectively, and included within other noncurrent liabilities on the consolidated balance sheets. The increase in noncurrent contract liabilities was primarily due to the amount of advanced payments received and reclassifications between current and noncurrent contract liabilities based on anticipated timing of performance obligations and revenue recognized during the period. Accounts Receivable

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Jul. 03, 2021
Stockholders' Equity Note [Abstract]
Accumulated Other Comprehensive Income (Loss)	4. Accumulated Other Comprehensive Income (Loss) The components of comprehensive income (loss) that relate to the Company are net income, foreign currency translation adjustments, and pension plan and postretirement benefits. The following summarizes the activity within each component of accumulated other comprehensive income (loss), net of taxes: Currency Pension and Total Balance at April 3, 2021 $ 445 $ (10,854 ) $ (10,409 ) Amounts recorded in/reclassified from accumulated other comprehensive loss — 318 318 Net current period other comprehensive income 1,919 318 2,237 Balance at July 3, 2021 $ 2,364 $ (10,536 ) $ (8,172 )

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
	Jul. 03, 2021
Earnings Per Share [Abstract]
Net Income Per Common Share	5. Net Income Per Common Share Basic net income per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted net income per common share is computed by dividing net income by the sum of the weighted-average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options. The table below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic and diluted net income per common share: Three Months Ended July 3, 2021 June 27, 2020 Net income $ 25,999 $ 22,689 Denominator for basic net income per common share — weighted-average shares outstanding 25,021,063 24,763,903 Effect of dilution due to employee stock awards 287,660 170,038 Denominator for diluted net income per common share — weighted-average shares outstanding 25,308,723 24,933,941 Basic net income per common share $ 1.04 $ 0.92 Diluted net income per common share $ 1.03 $ 0.91 At July 3, 2021, 160,600 employee stock options and no restricted shares have been excluded from the calculation of diluted earnings per share. At June 27, 2020, 504,768 employee stock options and 61,025 restricted shares have been excluded from the calculation of diluted earnings per share. The inclusion of these employee stock options and restricted shares would be anti-dilutive.

Cash and Cash Equivalents and M

Cash and Cash Equivalents and Marketable Securities	3 Months Ended
	Jul. 03, 2021
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents and Marketable Securities	6. Cash and Cash Equivalents and Marketable Securities The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains its cash accounts primarily with Bank of America, N.A., Credit Suisse Group AG and Wells Fargo & Company. The domestic balances are insured by the Federal Deposit Insurance Company up to $250. The Company has not experienced any losses in such accounts. At July 3, 2021, the Company held $120,320 of short-term marketable securities comprised of mutual funds as part of the Company’s investment strategy compared to $90,249 at April 3, 2021. These investments are measured at fair value by using quoted prices in active markets and are classified as Level 1 of the valuation hierarchy. These mutual funds can be liquidated at the Company’s discretion. They are held for investment and are not considered debt securities. Preservation of principal is the primary goal of our cash and investment policy. Pursuant to our established investment guidelines, we strive to achieve high levels of credit quality, liquidity and diversification. Our investment guidelines do not permit us to invest in puts, calls, strips, short sales, straddles, options, commodities, precious metals, futures or investments on margin.

Inventory

Inventory	3 Months Ended
	Jul. 03, 2021
Inventory Disclosure [Abstract]
Inventory	7. Inventory Inventories are stated at the lower of cost or net realizable value, using the first-in, first-out method, and are summarized below: July 3, 2021 April 3, 2021 Raw materials $ 56,325 $ 57,764 Work in process 92,268 86,183 Finished goods 221,261 220,200 $ 369,854 $ 364,147

Debt

Debt	3 Months Ended
	Jul. 03, 2021
Debt Disclosure [Abstract]
Debt	8. Debt The balances payable under all borrowing facilities are as follows: July 3, April 3, Revolver and term loan facilities $ 6,188 $ 11,657 Debt issuance costs (1,112 ) (1,216 ) Other 5,678 5,666 Total debt 10,754 16,107 Less: current portion 505 2,612 Long-term debt $ 10,249 $ 13,495 The current portion of long-term debt as of July 3, 2021 includes the current portion of the Schaublin mortgage. The current portion of long-term debt as of April 3, 2021 includes the current portion of the Foreign Term Loan and the Schaublin mortgage. Domestic Credit Facility The Company’s credit agreement with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, Swingline Lender and Letter of Credit Issuer, and the other lenders party thereto (the “Credit Agreement”) provides the Company with a $250,000 revolving credit facility (the “Revolver”), which expires on January 31, 2024. Debt issuance costs associated with the Credit Agreement totaled $852 and will be amortized through January 31, 2024 along with the unamortized debt issuance costs remaining from the Company’s prior credit agreement. As of July 3, 2021, $1,022 in unamortized debt issuance costs remain. Amounts outstanding under the Revolver generally bear interest at (a) a base rate determined by reference to the higher of (1) Wells Fargo’s prime lending rate, (2) the federal funds effective rate plus 1/2 of 1% and (3) the one-month LIBOR rate plus 1%, or (b) LIBOR plus a specified margin, depending on the type of borrowing being made. The applicable margin is based on the Company’s consolidated ratio of total net debt to consolidated EBITDA at each measurement date. Currently, the Company’s margin is 0.00% for base rate loans and 0.75% for LIBOR loans. The Credit Agreement requires the Company to comply with various covenants including, among other things, a financial covenant to maintain a ratio of consolidated net debt to adjusted EBITDA not greater than 3.50 to 1. The Credit Agreement allows the Company to, among other things, make distributions to shareholders, repurchase its stock, incur other debt or liens, or acquire or dispose of assets provided that the Company complies with certain requirements and limitations of the Credit Agreement. As of July 3, 2021, the Company was in compliance with all such covenants. The Company’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Agreement, and the Company’s obligations and the domestic subsidiaries’ guaranty are secured by a pledge of substantially all of the domestic assets of the Company and its domestic subsidiaries. Approximately $3,550 of the Revolver is being utilized to provide letters of credit to secure the Company’s obligations relating to certain insurance programs. The Company has the ability to borrow up to an additional $246,450 under the Revolver as of July 3, 2021. Foreign Term Loan and Revolving Credit Facility On August 15, 2019, one of our foreign subsidiaries, Schaublin SA (“Schaublin”), entered into two separate credit agreements (the “Foreign Credit Agreements”) with Credit Suisse (Switzerland) Ltd. to (i) finance the acquisition of Swiss Tool, and (ii) provide future working capital. The Foreign Credit Agreements provided Schaublin with a CHF 15,000 (approximately $15,383) term loan (the “Foreign Term Loan”), which expires on July 31, 2024 and a CHF 15,000 (approximately $15,383) revolving credit facility (the “Foreign Revolver”), which continues in effect until terminated by either Schaublin or Credit Suisse. Debt issuance costs associated with the Foreign Credit Agreements totaled CHF 270 (approximately $277) and will be amortized throughout the life of the Foreign Credit Agreements. As of July 3, 2021, approximately $90 in unamortized debt issuance costs remain. Amounts outstanding under the Foreign Term Loan and the Foreign Revolver generally bear interest at LIBOR plus a specified margin. The applicable margin is based on Schaublin’s ratio of total net debt to consolidated EBITDA at each measurement date. Currently, Schaublin’s margin is 1.00%. The Foreign Credit Agreements require Schaublin to comply with various covenants, which are tested annually on March 31. These covenants include, among other things, a financial covenant to maintain a ratio of consolidated net debt to adjusted EBITDA not greater than 2.50 to 1 as of March 31, 2021 and thereafter. Schaublin is also required to maintain an economic equity of CHF 20,000 at all times. The Foreign Credit Agreements allow Schaublin to, among other things, incur other debt or liens and acquire or dispose of assets provided that Schaublin complies with certain requirements and limitations of the Foreign Credit Agreements. As of July 3, 2021, Schaublin was in compliance with all such covenants. Schaublin’s parent company, Schaublin Holding, has guaranteed Schaublin’s obligations under the Foreign Credit Agreements. Schaublin Holding’s guaranty and the Foreign Credit Agreements are secured by a pledge of the capital stock of Schaublin. In addition, the Foreign Term Loan is secured with pledges of the capital stock of the top company and the three operating companies in the Swiss Tool System group of companies. As of July 3, 2021, there was approximately $6,188 outstanding under the Foreign Term Loan and no amounts outstanding under the Foreign Revolver. Schaublin has the ability to borrow up to an additional $16,283 under the Foreign Revolver as of July 3, 2021. Schaublin’s required future principal payments are approximately $0 for the remainder of fiscal 2022, $0 for fiscal 2023, $2,931 for fiscal 2024 and $3,257 for fiscal 2025. Other Notes Payable In 2012 Schaublin purchased the land and building that it occupies for approximately $14,910. Schaublin obtained a 20-year fixed-rate mortgage of approximately $9,857 at an interest rate of 2.9%. The balance of the purchase price of approximately $5,053 was paid from cash on hand. The balance on this mortgage as of July 3, 2021 was approximately $5,678 and has been classified as Level 2 of the valuation hierarchy. The Company’s required future principal payments are approximately $379 for the remainder of fiscal 2022, $505 for each year from fiscal 2023 through fiscal 2026 and $3,279 thereafter.

Income Taxes

Income Taxes	3 Months Ended
	Jul. 03, 2021
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes The Company files income tax returns in numerous U.S. and foreign jurisdictions, with returns subject to examination for varying periods, but generally back to and including the year ending April 2, 2005. The Company is no longer subject to U.S. federal tax examination by the Internal Revenue Service for years ending before March 31, 2018. The effective income tax rates for the three-month periods ended July 3, 2021 and June 27, 2020, were 15.8% and 20.0%, respectively. In addition to discrete items, the effective income tax rates for these periods are different from the U.S. statutory rates due to the foreign-derived intangible income provision and U.S. credit for increasing research activities, which decrease the rate, and state income taxes that increase the rate. The effective income tax rate for the three-month period ended July 3, 2021 of 15.8% includes $2,139 of tax benefit associated with share-based compensation, along with $160 of tax benefit for the release of unrecognized tax positions associated with a statute of limitations expiration. The effective income tax rate without discrete items for the three-month period ended July 3, 2021 would have been 23.2%. The effective income tax rate for the three-month period ended June 27, 2020 of 20.0% includes $315 of tax benefit associated with share-based compensation, along with $75 of tax benefit for the release of unrecognized tax positions associated with a statute of limitations expiration. The effective income tax rate without discrete items for the three-month period ended June 27, 2020 would have been 21.3%. The Company believes it is reasonably possible that some of its unrecognized tax positions may be effectively settled within the next 12 months due to the closing of audits and the statute of limitations expiring in varying jurisdictions. The decrease in the Company’s unrecognized tax positions, pertaining primarily to federal and state credits and state tax, is estimated to be approximately $1,429.

Reportable Segments

Reportable Segments	3 Months Ended
	Jul. 03, 2021
Segment Reporting [Abstract]
Reportable Segments	10. Reportable Segments The Company operates through operating segments for which separate financial information is available, and for which operating results are evaluated regularly by the Company’s chief operating decision maker in determining resource allocation and assessing performance. Those operating segments are aggregated as reportable segments as they have similar economic characteristics, including nature of the products and production processes, distribution patterns and classes of customers. The Company has four reportable business segments, Plain Bearings, Roller Bearings, Ball Bearings and Engineered Products, which are described below. Plain Bearings. Roller Bearings. Ball Bearings. Engineered Products. Segment performance is evaluated based on segment net sales and gross margin. Items not allocated to segment operating income include corporate administrative expenses and certain other amounts. Three Months Ended July 3, June 27, Net External Sales Plain $ 73,321 $ 78,875 Roller 25,247 22,900 Ball 23,128 18,840 Engineered Products 34,509 35,878 $ 156,205 $ 156,493 Gross Margin Plain $ 31,524 $ 32,077 Roller 9,118 8,407 Ball 10,692 7,927 Engineered Products 12,439 11,042 $ 63,773 $ 59,453 Selling, General & Administrative Expenses Plain $ 5,885 $ 5,271 Roller 1,358 1,239 Ball 1,641 1,346 Engineered Products 4,249 3,812 Corporate 16,669 15,161 $ 29,802 $ 26,829 Operating Income Plain $ 24,830 $ 25,401 Roller 7,293 7,099 Ball 9,016 6,551 Engineered Products 7,603 5,981 Corporate (18,019 ) (16,218 ) $ 30,723 $ 28,814 Intersegment Sales Plain $ 1,567 $ 1,562 Roller 2,254 3,378 Ball 1,017 667 Engineered Products 10,482 10,649 $ 15,320 $ 16,256 All intersegment sales are eliminated in consolidation.

Subsequent Events

Subsequent Events	3 Months Ended
	Jul. 03, 2021
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events On July 24, 2021, the Company entered into a Purchase Agreement with ABB Asea Brown Boveri Ltd (“ABB”) pursuant to which the Company has agreed to acquire the mechanical power transmission division of ABB operated under the Dodge brand (“Dodge”). In connection with the acquisition, the Company will purchase the capital stock of certain entities, including Dodge Mechanical Power Transmission Company Inc. and certain other assets relating to ABB’s mechanical power transmission business. The purchase price for the acquisition will be $2,900,000 in cash, subject to certain adjustments, in accordance with the Purchase Agreement. With headquarters in Greenville, South Carolina, Dodge is a leading manufacturer of mounted bearings and mechanical products with market-leading brand recognition. Dodge manufactures a complete line of mounted bearings, enclosed gearing and power transmission components across a diverse set of industrial end markets. Dodge primarily operates across the construction and mining aftermarket, food & beverage, warehousing and general machinery verticals, with sales predominately in the Americas. The acquisition is supported by a fully committed bridge facility. Permanent financing is expected to include an appropriate mix of cash on hand, debt and equity. The Company expects to close the transaction in our fiscal 2022 third quarter, subject to customary closing conditions, including regulatory review. The Company has evaluated subsequent events through the issuance date of these financial statements. Other than the matter noted above, no material subsequent events were identified that require disclosure.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Jul. 03, 2021
Accounting Policies [Abstract]
Recent Accounting Standards Adopted	Recent Accounting Standards Adopted In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Other new pronouncements issued but not effective until after April 2, 2022 are not expected to have a material impact on our financial position, results of operations or liquidity.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Jul. 03, 2021
Revenue from Contract with Customer [Abstract]
Schedule of revenue from business segments of customers	Three Months Ended July 3, 2021 June 27, 2020 Aerospace Industrial Total Aerospace Industrial Total Plain $ 48,968 $ 24,353 $ 73,321 $ 59,352 $ 19,523 $ 78,875 Roller 8,787 16,460 25,247 13,230 9,670 22,900 Ball 7,210 15,918 23,128 7,022 11,818 18,840 Engineered Products 15,928 18,581 34,509 19,378 16,500 35,878 $ 80,893 $ 75,312 $ 156,205 $ 98,982 $ 57,511 $ 156,493

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Jul. 03, 2021
Stockholders' Equity Note [Abstract]
Schedule of accumulated other comprehensive income (loss), net of taxes	Currency Pension and Total Balance at April 3, 2021 $ 445 $ (10,854 ) $ (10,409 ) Amounts recorded in/reclassified from accumulated other comprehensive loss — 318 318 Net current period other comprehensive income 1,919 318 2,237 Balance at July 3, 2021 $ 2,364 $ (10,536 ) $ (8,172 )

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	3 Months Ended
	Jul. 03, 2021
Earnings Per Share [Abstract]
Schedule of basic and diluted net income per common share	Three Months Ended July 3, 2021 June 27, 2020 Net income $ 25,999 $ 22,689 Denominator for basic net income per common share — weighted-average shares outstanding 25,021,063 24,763,903 Effect of dilution due to employee stock awards 287,660 170,038 Denominator for diluted net income per common share — weighted-average shares outstanding 25,308,723 24,933,941 Basic net income per common share $ 1.04 $ 0.92 Diluted net income per common share $ 1.03 $ 0.91

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Jul. 03, 2021
Inventory Disclosure [Abstract]
Schedule of inventory	July 3, 2021 April 3, 2021 Raw materials $ 56,325 $ 57,764 Work in process 92,268 86,183 Finished goods 221,261 220,200 $ 369,854 $ 364,147

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jul. 03, 2021
Debt Disclosure [Abstract]
Schedule of debt	July 3, April 3, Revolver and term loan facilities $ 6,188 $ 11,657 Debt issuance costs (1,112 ) (1,216 ) Other 5,678 5,666 Total debt 10,754 16,107 Less: current portion 505 2,612 Long-term debt $ 10,249 $ 13,495

Reportable Segments (Tables)

Reportable Segments (Tables)	3 Months Ended
	Jul. 03, 2021
Segment Reporting [Abstract]
Schedule of segment information	Three Months Ended July 3, June 27, Net External Sales Plain $ 73,321 $ 78,875 Roller 25,247 22,900 Ball 23,128 18,840 Engineered Products 34,509 35,878 $ 156,205 $ 156,493 Gross Margin Plain $ 31,524 $ 32,077 Roller 9,118 8,407 Ball 10,692 7,927 Engineered Products 12,439 11,042 $ 63,773 $ 59,453 Selling, General & Administrative Expenses Plain $ 5,885 $ 5,271 Roller 1,358 1,239 Ball 1,641 1,346 Engineered Products 4,249 3,812 Corporate 16,669 15,161 $ 29,802 $ 26,829 Operating Income Plain $ 24,830 $ 25,401 Roller 7,293 7,099 Ball 9,016 6,551 Engineered Products 7,603 5,981 Corporate (18,019 ) (16,218 ) $ 30,723 $ 28,814 Intersegment Sales Plain $ 1,567 $ 1,562 Roller 2,254 3,378 Ball 1,017 667 Engineered Products 10,482 10,649 $ 15,320 $ 16,256

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Apr. 03, 2021	Jun. 27, 2020
Revenue from Contract with Customer [Abstract]
Aggregate amount of the transaction price allocated to remaining performance obligations	$ 288,731
Performance obligations expected to be satisfied in the future	The Company expects to recognize revenue on approximately 56% and 84% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter.
Current contract assets	$ 6,196	$ 5,584
Current contract liabilities	14,624	16,998
Revenue recognized included in the contract liability	4,650		$ 5,821
Noncurrent contract liabilities	9,642	3,754
Accounts receivable with customers, net	$ 105,756	$ 110,472

Revenue from Contracts with C_4

Revenue from Contracts with Customers (Details) - Schedule of revenue from business segments of customers - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	$ 156,205	$ 156,493
Plain [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	73,321	78,875
Roller [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	25,247	22,900
Ball [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	23,128	18,840
Engineered Products [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	34,509	35,878
Aerospace [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	80,893	98,982
Aerospace [Member] | Plain [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	48,968	59,352
Aerospace [Member] | Roller [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	8,787	13,230
Aerospace [Member] | Ball [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	7,210	7,022
Aerospace [Member] | Engineered Products [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	15,928	19,378
Industrial [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	75,312	57,511
Industrial [Member] | Plain [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	24,353	19,523
Industrial [Member] | Roller [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	16,460	9,670
Industrial [Member] | Ball [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	15,918	11,818
Industrial [Member] | Engineered Products [Member]
Revenue, Major Customer [Line Items]
Revenue from contracts with customers	$ 18,581	$ 16,500

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - Schedule of accumulated other comprehensive income (loss), net of taxes $ in Thousands	3 Months Ended
	Jul. 03, 2021USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (10,409)
Amounts recorded in/reclassified from accumulated other comprehensive loss	318
Net current period other comprehensive income	2,237
Ending balance	(8,172)
Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	445
Amounts recorded in/reclassified from accumulated other comprehensive loss
Net current period other comprehensive income	1,919
Ending balance	2,364
Pension and Postretirement Liability [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(10,854)
Amounts recorded in/reclassified from accumulated other comprehensive loss	318
Net current period other comprehensive income	318
Ending balance	$ (10,536)

Net Income Per Common Share (De

Net Income Per Common Share (Details) - shares	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Employee Stock Options [Member]
Net Income Per Common Share (Details) [Line Items]
Number of employee stock options and restricted shares excluded from calculation of diluted earnings per share	160,600	504,768
Restricted Stock [Member]
Net Income Per Common Share (Details) [Line Items]
Number of employee stock options and restricted shares excluded from calculation of diluted earnings per share		61,025

Net Income Per Common Share (_2

Net Income Per Common Share (Details) - Schedule of basic and diluted net income per common share - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Schedule of basic and diluted net income per common share [Abstract]
Net income (in Dollars)	$ 25,999	$ 22,689
Denominator for basic net income per common share — weighted-average shares outstanding	25,021,063	24,763,903
Effect of dilution due to employee stock awards	287,660	170,038
Denominator for diluted net income per common share — weighted-average shares outstanding	25,308,723	24,933,941
Basic net income per common share (in Dollars per share)	$ 1.04	$ 0.92
Diluted net income per common share (in Dollars per share)	$ 1.03	$ 0.91

Cash and Cash Equivalents and_2

Cash and Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Jul. 03, 2021	Apr. 03, 2021
Cash and Cash Equivalents [Abstract]
Federal deposit insurance	$ 250
Short-term marketable securities	$ 120,320	$ 90,249

Inventory (Details) - Schedule

Inventory (Details) - Schedule of inventory - USD ($) $ in Thousands	Jul. 03, 2021	Apr. 03, 2021
Schedule of inventory [Abstract]
Raw materials	$ 56,325	$ 57,764
Work in process	92,268	86,183
Finished goods	221,261	220,200
Inventory, Net, Total	$ 369,854	$ 364,147

Debt (Details)

Debt (Details) SFr in Thousands, $ in Thousands	Aug. 15, 2019USD ($)	Aug. 15, 2019CHF (SFr)	Oct. 01, 2012USD ($)	Jul. 03, 2021USD ($)	Jun. 27, 2020USD ($)	Aug. 15, 2019CHF (SFr)
Debt Instrument [Line Items]
Debt issuance costs				$ 106	$ 141
Future annual principal payments in Fiscal 2022				379
Future annual principal payments in Fiscal 2023				505
Future annual principal payments in Fiscal 2024				505
Future annual principal payments in Fiscal 2025				505
Future annual principal payments in Fiscal 2026				505
Future annual principal payments in Fiscal thereafter				3,279
Revolver [Member]
Debt Instrument [Line Items]
Line of credit				$ 3,550
Line of credit covenant terms				Amounts outstanding under the Revolver generally bear interest at (a) a base rate determined by reference to the higher of (1) Wells Fargo’s prime lending rate, (2) the federal funds effective rate plus 1/2 of 1% and (3) the one-month LIBOR rate plus 1%, or (b) LIBOR plus a specified margin, depending on the type of borrowing being made. The applicable margin is based on the Company’s consolidated ratio of total net debt to consolidated EBITDA at each measurement date. Currently, the Company’s margin is 0.00% for base rate loans and 0.75% for LIBOR loans.
Line of credit facility, remaining borrowing capacity				$ 246,450
Domestic Credit Facility [Member]
Debt Instrument [Line Items]
Unamortized debt issuance costs				$ 1,022
Line of credit covenant terms				The Credit Agreement requires the Company to comply with various covenants including, among other things, a financial covenant to maintain a ratio of consolidated net debt to adjusted EBITDA not greater than 3.50 to 1.
Foreign Term Loan [Member]
Debt Instrument [Line Items]
Unamortized debt issuance costs				$ 90
Foreign Revolver [Member]
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity				16,283
Amended Credit Agreement [Member] | Revolver [Member]
Debt Instrument [Line Items]
Line of credit				250,000
Unamortized debt issuance costs				$ 852
Debt instrument expiry date				Jan. 31, 2024
Schaublin [Member]
Debt Instrument [Line Items]
Debt issuance costs	$ 277	SFr 270
Future annual principal payments in Fiscal 2022				$ 0
Future annual principal payments in Fiscal 2023				0
Future annual principal payments in Fiscal 2024				2,931
Future annual principal payments in Fiscal 2025				3,257
Cash paid for purchase price			$ 5,053
Balance on mortgage loan				5,678
Schaublin [Member] | Land and Building [Member]
Debt Instrument [Line Items]
Land and building leased			$ 14,910
Period for fixed rate on mortgage loan			Schaublin obtained a 20-year fixed-rate mortgage of approximately $9,857 at an interest rate of 2.9%.
Mortgage loan fixed rate			$ 9,857
Mortgage loan interest rate			2.90%
Schaublin [Member] | Foreign Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument face amount	15,383					SFr 15,000
Credit facility outstanding amount				$ 6,188
Schaublin [Member] | Foreign Revolver [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 15,383					SFr 15,000
Schaublin [Member] | Foreign Credit Agreement [Member]
Debt Instrument [Line Items]
Line of credit covenant terms				The Foreign Credit Agreements require Schaublin to comply with various covenants, which are tested annually on March 31. These covenants include, among other things, a financial covenant to maintain a ratio of consolidated net debt to adjusted EBITDA not greater than 2.50 to 1 as of March 31, 2021 and thereafter. Schaublin is also required to maintain an economic equity of CHF 20,000 at all times.
Base Rate [Member] | Schaublin [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				1.00%

Debt (Details) - Schedule of de

Debt (Details) - Schedule of debt - USD ($) $ in Thousands	Jul. 03, 2021	Apr. 03, 2021
Schedule of debt [Abstract]
Revolver and term loan facilities	$ 6,188	$ 11,657
Debt issuance costs	(1,112)	(1,216)
Other	5,678	5,666
Total debt	10,754	16,107
Less: current portion	505	2,612
Long-term debt	$ 10,249	$ 13,495

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Income Tax Disclosure [Abstract]
Effective income tax rates	15.80%	20.00%
Income tax provision at the federal statutory rate reduced	15.80%	20.00%
U.S. corporate income tax rate amount (in Dollars)	$ 2,139	$ 315
Unrecognized tax positions associated with shared -based compensation (in Dollars)	$ 160	$ 75
Effective income tax rate without discrete	23.20%	21.30%
Estimated decrease in unrecognized tax positions in federal and state credits and state tax (in Dollars)	$ 1,429

Reportable Segments (Details) -

Reportable Segments (Details) - Schedule of segment information - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Net External Sales
Net External Sales	$ 156,205	$ 156,493
Gross Margin
Gross Margin	63,773	59,453
Selling, General & Administrative Expenses
Selling, General & Administrative Expenses	29,802	26,829
Operating Income
Operating Income	30,723	28,814
Intersegment Sales
Intersegment Sales	15,320	16,256
Plain [Member]
Net External Sales
Net External Sales	73,321	78,875
Gross Margin
Gross Margin	31,524	32,077
Selling, General & Administrative Expenses
Selling, General & Administrative Expenses	5,885	5,271
Operating Income
Operating Income	24,830	25,401
Intersegment Sales
Intersegment Sales	1,567	1,562
Roller [Member]
Net External Sales
Net External Sales	25,247	22,900
Gross Margin
Gross Margin	9,118	8,407
Selling, General & Administrative Expenses
Selling, General & Administrative Expenses	1,358	1,239
Operating Income
Operating Income	7,293	7,099
Intersegment Sales
Intersegment Sales	2,254	3,378
Ball [Member]
Net External Sales
Net External Sales	23,128	18,840
Gross Margin
Gross Margin	10,692	7,927
Selling, General & Administrative Expenses
Selling, General & Administrative Expenses	1,641	1,346
Operating Income
Operating Income	9,016	6,551
Intersegment Sales
Intersegment Sales	1,017	667
Engineered Products [Member]
Net External Sales
Net External Sales	34,509	35,878
Gross Margin
Gross Margin	12,439	11,042
Selling, General & Administrative Expenses
Selling, General & Administrative Expenses	4,249	3,812
Operating Income
Operating Income	7,603	5,981
Intersegment Sales
Intersegment Sales	10,482	10,649
Corporate [Member]
Selling, General & Administrative Expenses
Selling, General & Administrative Expenses	16,669	15,161
Operating Income
Operating Income	$ (18,019)	$ (16,218)

Subsequent Events (Details)

Subsequent Events (Details)	Jul. 24, 2021USD ($)
Subsequent Event [Member]
Subsequent Events (Details) [Line Items]
Purchase price acquisition	$ 2,900,000