Cover
Cover - shares | 3 Months Ended | |
Jun. 29, 2024 | Jul. 26, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Jun. 29, 2024 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Entity Information [Line Items] | ||
Entity Registrant Name | RBC BEARINGS INCORPORATED | |
Entity Central Index Key | 0001324948 | |
Entity File Number | 001-40840 | |
Entity Tax Identification Number | 95-4372080 | |
Entity Incorporation, State or Country Code | DE | |
Current Fiscal Year End Date | --03-29 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Contact Personnel [Line Items] | ||
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 | |
Entity Phone Fax Numbers [Line Items] | ||
City Area Code | (203) | |
Local Phone Number | 267-7001 | |
Entity Listings [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,229,863 | |
Common Stock, par value $0.01 per-share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per-share | |
Trading Symbol | RBC | |
Security Exchange Name | NYSE | |
5.00% Series A Mandatory Convertible Preferred Stock, par value $0.01 per-share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 5.00% Series A Mandatory Convertible Preferred Stock, par value $0.01 per-share | |
Trading Symbol | RBCP | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 29, 2024 | Mar. 30, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 76.8 | $ 63.5 |
Accounts receivable, net of allowances of $4.2 as of June 29, 2024 and $4.4 as of March 30, 2024 | 254.7 | 255.2 |
Inventory | 635 | 622.8 |
Prepaid expenses and other current assets | 27.7 | 24 |
Total current assets | 994.2 | 965.5 |
Property, plant and equipment, net | 356.8 | 361 |
Operating lease assets, net | 50.9 | 41.4 |
Goodwill | 1,874.2 | 1,874.9 |
Intangible assets, net | 1,375.9 | 1,391.9 |
Other noncurrent assets | 44.5 | 43.9 |
Total assets | 4,696.5 | 4,678.6 |
Current liabilities: | ||
Accounts payable | 127.5 | 116.2 |
Accrued expenses and other current liabilities | 190.5 | 167.3 |
Current operating lease liabilities | 8.5 | 7 |
Current portion of long-term debt | 3.8 | 3.8 |
Total current liabilities | 330.3 | 294.3 |
Long-term debt, less current portion | 1,127.6 | 1,188.1 |
Noncurrent operating lease liabilities | 42.9 | 35.3 |
Deferred income taxes | 280.2 | 284.2 |
Other noncurrent liabilities | 111.6 | 124.8 |
Total liabilities | 1,892.6 | 1,926.7 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value; authorized shares: 10,000,000 as of June 29, 2024 and March 30, 2024, respectively; issued shares: 4,600,000 as of June 29, 2024 and March 30, 2024, respectively | 0 | 0 |
Common stock, $.01 par value; authorized shares: 60,000,000 at June 29, 2024 and March 30, 2024, respectively; issued shares: 30,263,485 and 30,227,444 as of June 29, 2024 and March 30, 2024, respectively | 0.3 | 0.3 |
Additional paid-in capital | 1,630.6 | 1,625.2 |
Accumulated other comprehensive income/(loss) | (0.4) | 0.7 |
Retained earnings | 1,272.5 | 1,216.8 |
Treasury stock, at cost; 1,042,261 shares and 1,015,053 shares as of June 29, 2024 and March 30, 2024, respectively | (99.1) | (91.1) |
Total stockholders’ equity | 2,803.9 | 2,751.9 |
Total liabilities and stockholders’ equity | $ 4,696.5 | $ 4,678.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Jun. 29, 2024 | Mar. 30, 2024 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in Dollars) | $ 4.2 | $ 4.4 |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 4,600,000 | 4,600,000 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 30,263,485 | 30,227,444 |
Treasury stock, at cost | 1,042,261 | 1,015,053 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 406.3 | $ 387.1 |
Cost of sales | 222.3 | 219.2 |
Gross margin | 184 | 167.9 |
Operating expenses: | ||
Selling, general and administrative | 67.6 | 64.7 |
Other, net | 18.9 | 18.2 |
Total operating expenses | 86.5 | 82.9 |
Operating income | 97.5 | 85 |
Interest expense, net | 17.2 | 20.5 |
Other non-operating expense | 0.4 | 0.5 |
Income before income taxes | 79.9 | 64 |
Provision for income taxes | 18.5 | 14 |
Net income | 61.4 | 50 |
Preferred stock dividends | 5.7 | 5.7 |
Net income attributable to common stockholders | $ 55.7 | $ 44.3 |
Net income per common share attributable to common stockholders: | ||
Basic (in Dollars per share) | $ 1.92 | $ 1.53 |
Diluted (in Dollars per share) | $ 1.9 | $ 1.52 |
Weighted average common shares: | ||
Basic (in Shares) | 29,054,820 | 28,846,874 |
Diluted (in Shares) | 29,294,998 | 29,114,819 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income/(Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 61.4 | $ 50 | |
Pension and postretirement liability adjustments, net of taxes | [1] | 0 | 0.5 |
Change in fair value of derivative | [2] | (0.1) | 4.8 |
Foreign currency translation adjustments | (1) | 3.1 | |
Total comprehensive income | $ 60.3 | $ 58.4 | |
[1] These adjustments were net of tax benefit of $0.0 and net of tax expense of $0.2 for the three-month periods ended June 29, 2024 and July 1, 2023, respectively. These adjustments were net of tax benefit of $0.0 and net of tax expense of $1.4 for the three-month periods ended June 29, 2024 and July 1, 2023, respectively. |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income/(Loss) (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Pension and post retirement liability adjustments, net of tax expense | $ 0.2 | |
Pension and postretirement liability adjustments, net of tax benefit | $ 0 | |
Change in fair value of derivative, net of expenses | $ 1.4 | |
Change in fair value of derivative, net of tax benefit | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Millions | Common Stock | Preferred Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income/(Loss) | Retained Earnings | Treasury Stock | Total | |
Balance at Apr. 29, 2023 | $ 0.3 | $ 0 | $ 1,589.9 | $ (4.1) | $ 1,029.9 | $ (80.1) | $ 2,535.9 | |
Balance (in Shares) at Apr. 29, 2023 | 29,989,948 | 4,600,000 | (966,398) | |||||
Net income | 50 | 50 | ||||||
Stock-based compensation | 4.9 | 4.9 | ||||||
Preferred stock dividends | (5.7) | (5.7) | ||||||
Repurchase of common stock | $ (6.8) | (6.8) | ||||||
Repurchase of common stock (in Shares) | (32,804) | |||||||
Exercise of equity awards | 1 | 1 | ||||||
Exercise of equity awards (in Shares) | 11,772 | |||||||
Change in pension and post-retirement plan benefit adjustments, net | 0.5 | 0.5 | ||||||
Issuance of restricted stock, net of forfeitures | ||||||||
Issuance of restricted stock, net of forfeitures (in Shares) | 54,627 | |||||||
Change in fair value of derivative, net | 4.8 | 4.8 | ||||||
Currency translation adjustments | 3.1 | 3.1 | ||||||
Balance at Jul. 01, 2023 | $ 0.3 | $ 0 | 1,595.8 | 4.3 | 1,074.2 | $ (86.9) | 2,587.7 | |
Balance (in Shares) at Jul. 01, 2023 | 30,056,347 | 4,600,000 | (999,202) | |||||
Balance at Mar. 30, 2024 | $ 0.3 | $ 0 | 1,625.2 | 0.7 | 1,216.8 | $ (91.1) | 2,751.9 | |
Balance (in Shares) at Mar. 30, 2024 | 30,227,444 | 4,600,000 | (1,015,053) | |||||
Net income | 61.4 | 61.4 | ||||||
Stock-based compensation | 4.2 | 4.2 | ||||||
Preferred stock dividends | (5.7) | (5.7) | ||||||
Repurchase of common stock | $ (8) | (8) | ||||||
Repurchase of common stock (in Shares) | (27,208) | |||||||
Exercise of equity awards | 1.2 | 1.2 | ||||||
Exercise of equity awards (in Shares) | 8,642 | |||||||
Change in pension and post-retirement plan benefit adjustments, net | 0 | 0 | ||||||
Issuance of restricted stock, net of forfeitures | ||||||||
Issuance of restricted stock, net of forfeitures (in Shares) | 27,399 | |||||||
Change in fair value of derivative, net | (0.1) | (0.1) | [1] | |||||
Currency translation adjustments | (1) | (1) | ||||||
Balance at Jun. 29, 2024 | $ 0.3 | $ 0 | $ 1,630.6 | $ (0.4) | $ 1,272.5 | $ (99.1) | $ 2,803.9 | |
Balance (in Shares) at Jun. 29, 2024 | 30,263,485 | 4,600,000 | (1,042,261) | |||||
[1] These adjustments were net of tax benefit of $0.0 and net of tax expense of $1.4 for the three-month periods ended June 29, 2024 and July 1, 2023, respectively. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Pension and Postretirement Expenses | ||
Net of tax benefit | $ 0 | |
Net of tax expense | $ 0.2 | |
Change in Fair Value of Derivative | ||
Change in fair value of derivative, net of tax benefit | $ 0 | |
Change in fair value of derivative, net of tax expense | $ 1.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 61.4 | $ 50 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 30 | 29.7 |
Deferred income taxes | (4.1) | (2.6) |
Amortization of deferred financing costs | 0.6 | 0.9 |
Stock-based compensation | 6.5 | 5.4 |
Noncash operating lease expense | 1.7 | 1.7 |
Loss on disposition of assets | 0.2 | |
Consolidation, restructuring, and other noncash charges | 0.3 | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 0.5 | (12) |
Inventory | (12.1) | (15.6) |
Prepaid expenses and other current assets | (3.8) | (2.1) |
Other noncurrent assets | (0.6) | (2.6) |
Accounts payable | 11.3 | (6.8) |
Accrued expenses and other current liabilities | 23.9 | 13 |
Other noncurrent liabilities | (17.9) | 2.2 |
Net cash provided by operating activities | 97.4 | 61.7 |
Cash flows from investing activities: | ||
Capital expenditures | (9) | (6.7) |
Proceeds from sale of assets | 0.2 | |
Net cash used in investing activities | (9) | (6.5) |
Cash flows from financing activities: | ||
Repayments of term loans | (60) | (50) |
Repayments of notes payable | (1.1) | (1.1) |
Principal payments on finance lease obligations | (1.1) | (1) |
Preferred stock dividends paid | (5.7) | (5.7) |
Exercise of stock options | 1.2 | 1 |
Repurchase of common stock | (8) | (6.8) |
Net cash used in financing activities | (74.7) | (63.6) |
Effect of exchange rate changes on cash | (0.4) | (0.3) |
Cash and cash equivalents: | ||
Increase/(decrease) during the period | 13.3 | (8.7) |
Cash and cash equivalents, at beginning of period | 63.5 | 65.4 |
Cash and cash equivalents, at end of period | 76.8 | 56.7 |
Supplemental disclosures of cash flow information: | ||
Income taxes | 12.5 | 1.1 |
Interest | $ 22 | $ 25.1 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 29, 2024 | |
Basis of Presentation [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 (“SEC”). 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 March 30, 2024 (our “Annual Report”). 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 (“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 financial 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 our Annual Report. The results of operations for the three-month period ended June 29, 2024 are not necessarily indicative of the operating results for the entire fiscal year ending March 29, 2025. The three-month periods ended June 29, 2024 and July 1, 2023 each included 13 weeks. All dollar amounts contained in these financial statements and footnotes are stated in millions, except for per share data. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jun. 29, 2024 | |
Significant 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. Significant changes to our accounting policies as a result of adopting new accounting standards are discussed below. Recent Accounting Standards Adopted Not Applicable. Recent Accounting Standards Yet to Be Adopted In November 2023, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024. As of June 29, 2024, the Company is evaluating the impact the standard will have on its consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Jun. 29, 2024 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers Disaggregation of Revenue The following table disaggregates total revenue by end market which is how we view our reportable segments (see Note 12): Three Months Ended June 29, July 1, Aerospace/Defense $ 149.1 $ 120.5 Industrial 257.2 266.6 Total $ 406.3 $ 387.1 The following table disaggregates total revenue by geographic origin: Three Months Ended June 29, July 1, United States $ 360.1 $ 341.3 International 46.2 45.8 Total $ 406.3 $ 387.1 The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time: Three Months Ended June 29, July 1, Point-in-time 97 % 98 % Over time 3 % 2 % Total 100 % 100 % Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders meeting the definition of a contract 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 the Company 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 $461.6 at June 29, 2024. The Company expects to recognize revenue on approximately 64% and 92% 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 affects 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 June 29, 2024 and March 30, 2024, current contract assets were $8.0 and $6.9, 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 June 29, 2024 and March 30, 2024, the Company did not have any contract assets classified as noncurrent on the consolidated balance sheets. Contract Liabilities (Deferred Revenue) As of June 29, 2024 and March 30, 2024, current contract liabilities were $30.5 and $22.5, respectively, and are included within accrued expenses and other current liabilities on the consolidated balance sheets. The increase in current contract liabilities was primarily due to advance payments received and the reclassification of a portion of advance payments received from the noncurrent portion of contract liabilities partially offset by revenue recognized on customer contracts. For the three months ended June 29, 2024, the Company recognized revenues of $5.7 that were included in the contract liability balance as of March 30, 2024. For the three months ended July 1, 2023, the Company recognized revenues of $4.6 that were included in the contract liability balance at April 1, 2023. As of June 29, 2024 and March 30, 2024, noncurrent contract liabilities were $10.1 and $19.9, respectively, and included within other noncurrent liabilities on the consolidated balance sheets. The decrease in noncurrent contract liabilities was primarily due to advance payments received, partially offset by the reclassification of a portion of advance payments received to the current portion of contract liabilities. Variable Consideration The amount of consideration to which the Company expects to be entitled in exchange for goods and services is not generally subject to significant variations. However, the Company does offer certain customers rebates, prompt payment discounts, end-user discounts and the right to return eligible products. The Company estimates this variable consideration using the expected value amount, which is based on historical experience. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company adjusts the estimate of revenue at the earlier of when the amount of consideration the Company expects to receive changes or when the consideration becomes fixed. Accrued customer rebates were $41.0 and $38.0 at June 29, 2024 and March 30, 2024, respectively, and are included within accrued expenses and other current liabilities on the consolidated balance sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 3 Months Ended |
Jun. 29, 2024 | |
Accumulated Other Comprehensive Income/(Loss) [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, changes in fair value of derivatives, and pension plan and postretirement benefits. The following summarizes the activity within each component of accumulated other comprehensive income/(loss), net of taxes: Currency Change in Pension and Total Balance at March 30, 2024 $ (3.6 ) $ 1.2 $ 3.1 $ 0.7 Reclassification to net income — 0.8 — 0.8 Net loss on foreign currency translation (1.0 ) — — (1.0 ) Loss on derivative instrument, net of taxes — (0.9 ) — (0.9 ) Net current period other comprehensive income (1.0 ) (0.1 ) 0.0 (1.1 ) Balance at June 29, 2024 $ (4.6 ) $ 1.1 $ 3.1 $ ( 0.4 ) |
Net income Per-share Attributab
Net income Per-share Attributable to Common Stockholders | 3 Months Ended |
Jun. 29, 2024 | |
Net income Per-share Attributable to Common Stockholders [Abstract] | |
Net income Per-share Attributable to Common Stockholders | 5. Net income Per-share Attributable to Common Stockholders Basic net income per-share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted net income per-share attributable to common stockholders is computed by dividing net income attributable to common stockholders 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 and the conversion of our 5.00% Series A Mandatory Convertible Preferred Stock (the “MCPS”) to common shares. We exclude outstanding stock options, stock awards and the MCPS from the calculations if the effect would be anti-dilutive. The dilutive effect of the MCPS is calculated using the if-converted method. The if-converted method assumes that these securities were converted to shares of common stock at the beginning of the reporting period to the extent that the effect is dilutive. If the effect is anti-dilutive, we calculate net income per-share attributable to common stockholders by adjusting the numerator for the effect of the cumulative MCPS dividends for the respective period. For the three-month periods ended June 29, 2024 and July 1, 2023, respectively, the effect of assuming the conversion of the 4,600,000 shares of MCPS into shares of common stock was anti-dilutive, and therefore excluded from the calculation of diluted earnings per-share attributable to common stockholders. Accordingly, net income was reduced by cumulative MCPS dividends, as presented in our consolidated statement of operations, for purposes of calculating the numerator in the diluted net income per share attributable to common stockholders. For the three months ended June 29, 2024, 87,500 employee stock options and 7,818 restricted shares were excluded from the calculation of diluted earnings per-share attributable to common stockholders. For the three months ended July 1, 2023, 125,898 employee stock options and 485 restricted shares were excluded from the calculation of diluted earnings per-share attributable to common stockholders. The inclusion of these employee stock options and restricted shares would have been anti-dilutive. 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-share attributable to common stockholders. Three Months Ended June 29, July 1, Net income $ 61.4 $ 50.0 Preferred stock dividends 5.7 5.7 Net income attributable to common stockholders $ 55.7 $ 44.3 Denominator: Denominator for basic net income per share attributable to common stockholders — weighted-average shares outstanding 29,054,820 28,846,874 Effect of dilution due to employee stock awards 240,178 267,945 Denominator for diluted net income per share attributable to common stockholders — weighted-average shares outstanding 29,294,998 29,114,819 Basic net income per share attributable to common stockholders $ 1.92 $ 1.53 Diluted net income per share attributable to common stockholders $ 1.90 $ 1.52 |
Fair Value
Fair Value | 3 Months Ended |
Jun. 29, 2024 | |
Fair Value [Abstract] | |
Fair Value | 6. Fair Value Fair value is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 – Unobservable inputs for the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As a result of the occurrence of triggering events such as purchase accounting for acquisitions, the Company measures certain assets and liabilities based on Level 3 inputs. Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, trade accounts payable, accrued expenses, short-term borrowings, long-term debt, and a derivative in the form of an interest rate swap. Due to their short-term nature, the carrying value of cash and cash equivalents, accounts receivable, trade accounts payable, accrued expenses and short-term borrowings are a reasonable estimate of their fair value. Long-term assets held on our balance sheets related to benefit plan obligations are measured at fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $461.2 and $456.8 at June 29, 2024 and March 30, 2024, respectively. The carrying value of this debt was $494.4 at June 29, 2024 and $494.2 at March 30, 2024. The fair value of long-term fixed-rate debt was measured using Level 1 inputs. Due to the nature of fair value calculations for variable-rate debt, the carrying value of the Company’s long-term variable-rate debt is a reasonable estimate of its fair value. The fair value of the interest rate swap was $1.5 at June 29, 2024 and $1.6 at March 30, 2024, and included in other noncurrent assets on the Company’s consolidated balance sheets. The fair value of the interest rate swap is measured using Level 2 inputs. The interest rate swap, net of taxes, had accumulated other comprehensive income of $1.1 and $1.2 as of June 29, 2024 and March 30, 2024, respectively. The Company does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments. |
Inventory
Inventory | 3 Months Ended |
Jun. 29, 2024 | |
Inventory [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: June 29, March 30, Raw materials $ 142.8 $ 138.1 Work in process 144.6 137.9 Finished goods 347.6 346.8 $ 635.0 $ 622.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill Goodwill balances, by segment, consist of the following: Aerospace Industrial Total March 30, 2024 $ 199.2 $ 1,675.7 $ 1,874.9 Currency translation adjustments — (0.7 ) (0.7 ) June 29, 2024 $ 199.2 $ 1,675.0 $ 1,874.2 Intangible Assets Weighted June 29, 2024 March 30, 2024 Useful Gross Accumulated Gross Accumulated Product approvals 24 $ 50.7 $ 20.8 $ 50.7 $ 20.3 Customer relationships and lists 24 1,300.8 174.3 1,300.7 160.7 Trade names 25 217.2 34.9 217.2 32.5 Patents and trademarks 15 10.9 6.6 10.8 6.5 Domain names 10 0.4 0.4 0.4 0.4 Internal-use software 3 18.3 10.1 16.7 8.8 Other 5 1.6 1.2 1.6 1.3 1,599.9 248.3 1,598.1 230.5 Non-amortizable repair station certifications n/a 24.3 — 24.3 — Total 24 $ 1,624.2 $ 248.3 $ 1,622.4 $ 230.5 Amortization expense for definite-lived intangible assets during the three-month periods ended June 29, 2024 and July 1, 2023 was $17.8 and $17.5, respectively. These amounts are included in other, net on the Company’s consolidated statements of operations. Estimated amortization expense for the remainder of fiscal 2025 and for the five succeeding fiscal years and thereafter is as follows: Remainder of Fiscal 2025 $ 54.4 Fiscal 2026 68.5 Fiscal 2027 64.7 Fiscal 2028 64.7 Fiscal 2029 64.6 Fiscal 2030 64.6 Fiscal 2031 and thereafter 970.1 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Jun. 29, 2024 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities The significant components of accrued expenses and other current liabilities are as follows: June 29, March 30, Employee compensation and related benefits $ 46.4 $ 35.7 Taxes 35.2 23.1 Contract liabilities 30.5 22.5 Accrued rebates 41.0 38.0 Current finance lease liabilities 5.9 5.7 Accrued preferred stock dividends 4.8 4.8 Interest 4.8 10.4 Legal 1.3 1.3 Returns and warranties 9.5 9.2 Other 11.1 16.6 $ 190.5 $ 167.3 |
Debt
Debt | 3 Months Ended |
Jun. 29, 2024 | |
Debt [Abstract] | |
Debt | 10. Debt Domestic Credit Facility In fiscal 2022, RBC Bearings Incorporated, our top holding company, and our Roller Bearing Company of America, Inc. subsidiary (“RBCA”) entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), 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) a $1,300.0 term loan (the “Term Loan”), which was used to fund a portion of the cash purchase price for the acquisition of Dodge Industrial, Inc. (“Dodge”) and to pay related fees and expenses, and (b) a $500.0 revolving credit facility (the “Revolving Credit Facility” and together with the Term Loan, the “Facilities”). Debt issuance costs associated with the Credit Agreement totaled $14.9 and are being amortized over the life of the Credit Agreement. Initially, amounts outstanding under the Facilities generally bore interest at either, at the Company’s option, (a) a base rate determined by reference to the higher of (i) Wells Fargo’s prime lending rate, (ii) the federal funds effective rate plus 1/2 of 1.00% and (iii) the one-month LIBOR rate plus 1.00% or (b) the LIBOR rate plus a specified margin, depending on the type of borrowing being made. The applicable margin was based on the Company’s consolidated ratio of total net debt to consolidated EBITDA (as defined within the Credit Agreement) from time to time. In December 2022, the Credit Agreement was amended to replace LIBOR with the secured overnight financing rate administered by the Federal Reserve Bank of New York (“SOFR”) so that borrowings under the Facilities denominated in U.S. dollars bear interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement) plus a credit spread adjustment of 0.10% plus a margin ranging from 0.75% to 2.00% depending on the Company’s consolidated ratio of total net debt to consolidated EBITDA. The Facilities are subject to a SOFR floor of 0.00%. As of June 29, 2024, the Company’s margin was 1.00% for SOFR loans, the commitment fee rate was 0.175%, and the letter of credit fee rate was 1.00%. A portion of the Term Loan is subject to a fixed-rate interest swap as discussed in Note 13. The Term Loan matures in November 2026 and amortizes in quarterly installments with the balance payable on the maturity date. The Company can elect to prepay some or all of the outstanding balance from time to time without penalty, which will offset future quarterly amortization installments. Due to prepayments previously made, the required future principal payments on the Term Loan are $0 for fiscal 2025, $0 for fiscal 2026, and $615.0 for fiscal 2027. The Revolving Credit Facility expires in November 2026, at which time all amounts outstanding under the Revolving Credit Facility will be payable. The Credit Agreement requires the Company to comply with various covenants, including the following financial covenants: (a) a maximum Total Net Leverage Ratio (as defined within the Credit Agreement) of 5.00:1.00, which maximum Total Net Leverage Ratio shall decrease during certain subsequent test periods as set forth in the Credit Agreement (provided that, no more than once during the term of the Facilities, such maximum ratio applicable at such time may be increased by the Company by 0.50:1.00 for a period of twelve (12) months after the consummation of a material acquisition); and (b) a minimum Interest Coverage Ratio of 2.00:1.00. As of June 29, 2024 the Company was in compliance with all debt covenants. The Credit Agreement allows the Company to, among other things, make distributions to stockholders, 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. 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 assets of the Company and its domestic subsidiaries. As of June 29, 2024, $615.0 was outstanding under the Term Loan, $3.7 of the Revolving Credit Facility was being utilized to provide letters of credit to secure the Company’s obligations relating to certain insurance programs, and $18.0 of the Revolving Credit Facility had been used to fund the purchase of the business assets of Specline, Inc. in fiscal 2024. The Company had the ability to borrow an additional $478.3 under the Revolving Credit Facility as of June 29, 2024. Senior Notes In fiscal 2022, RBCA issued $500.0 aggregate principal amount of 4.375% Senior Notes due 2029 (the “Senior Notes”). The net proceeds from the issuance of the Senior Notes were approximately $492.0, after deducting initial purchasers’ discounts and commissions and offering expenses, and were used to fund a portion of the purchase price for the acquisition of Dodge. The Senior Notes were issued pursuant to an indenture with Wilmington Trust, National Association, as trustee (the “Indenture”). The Indenture contains covenants limiting the ability of the Company to (i) incur additional indebtedness or guarantee indebtedness, (ii) declare or pay dividends, redeem stock or make other distributions to stockholders, (iii) make investments, (iv) create liens or use assets as security in other transactions, (v) merge or consolidate, or sell, transfer, lease or dispose of substantially all of its assets, (vi) enter into transactions with affiliates, and (vii) sell or transfer certain assets. These covenants contain various exceptions, limitations and qualifications. At any time that the Senior Notes are rated investment grade, certain of these covenants will be suspended. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by RBC Bearings and RBCA’s domestic subsidiaries that also guarantee the Credit Agreement. Interest on the Senior Notes accrues at a rate of 4.375% and is payable semi–annually in cash in arrears on April 15 and October 15 of each year. The Senior Notes will mature on October 15, 2029. The Company may redeem some or all of the Senior Notes at any time on or after October 15, 2024 at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The Company may also redeem up to 40% of the Senior Notes using the proceeds of certain equity offerings completed before October 15, 2024, at a redemption price equal to 104.375% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, at any time prior to October 15, 2024, the Company may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount, plus a “make–whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If the Company sells certain of its assets or experiences specific kinds of changes in control, the Company must offer to purchase the Senior Notes. Foreign Borrowing Arrangements One of our foreign subsidiaries, Schaublin SA, has a CHF 5.0 (approximately $5.8 USD) credit line (the “Foreign Credit Line”) with Credit Suisse (Switzerland) Ltd. to provide future working capital, if necessary. As of June 29, 2024, $2.2 had been borrowed from the Foreign Credit Line and $0.1 was being utilized to provide a bank guarantee. Fees associated with the Foreign Credit Line are nominal. The balances payable under all our borrowing facilities are as follows: June 29, March 30, Revolver and term loan facilities $ 635.2 $ 695.2 Senior notes 500.0 500.0 Debt issuance costs (10.1 ) (10.7 ) Other 6.3 7.4 Total debt 1,131.4 1,191.9 Less: current portion 3.8 3.8 Long-term debt $ 1,127.6 $ 1,188.1 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 29, 2024 | |
Income Taxes [Abstract] | |
Income Taxes | 11. 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 March 28, 2020, although certain tax credits generated in earlier years are open under statute from March 29, 2008. The Company is no longer subject to U.S. federal tax examination by the Internal Revenue Service for years ending before March 28, 2020. The effective income tax rates for the three-month periods ended June 29, 2024 and July 1, 2023, were 23.1% and 21.9%, respectively. In addition to discrete items, the effective income tax rates for both these periods were different from the U.S. statutory rates due to the foreign-derived intangible income provision and U.S. credit for increasing research activities, which decreased the rate, and state income taxes, foreign income taxes, and nondeductible compensation, which increased the rate. The effective income tax rate for the three-month period ended June 29, 2024 of 23.1% included $0.6 of discrete tax benefits associated with stock-based compensation. The effective income tax rate without discrete items for the three-month period ended June 29, 2024 would have been 23.8%. The effective income tax rate for the three-month period ended July 1, 2023 of 21.9% included $0.4 of discrete tax benefits associated with stock-based compensation and $0.1 of discrete tax benefits associated with other items. The effective income tax rate without discrete items for the three-month period ended July 1, 2023 would have been 22.6%. 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 various 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 $1.9. Global Minimum Tax In October 2021, the Organisation for Economic Co-operation and Development (“OECD”) announced an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large multinational corporations at a minimum rate of 15%. Subsequently multiple sets of administrative guidance have been issued. Many non-US tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 with the adoption of additional components in later years or announced their plans to enact legislation in future years. We are continuing to evaluate the impacts of enacted legislation and pending legislation to enact Pillar Two Model Rules in the non-US tax jurisdictions in which we operate. At this time, we do not anticipate the enacted or pending legislation to have a material impact on our consolidated financial statements. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Jun. 29, 2024 | |
Reportable Segments [Abstract] | |
Reportable Segments | 12. Reportable Segments The Company operates through operating segments and reports its financial results based on how its chief operating decision maker makes operating decisions, assesses the performance of the business, and allocates resources. Our operating segments are our reportable segments. These reportable operating segments are Aerospace/Defense and Industrial and are described below. Aerospace/Defense. Industrial. 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. Where not separately disclosed, corporate costs are allocated to each segment. Identifiable assets by reportable segment consist of those directly identified with the segment’s operations. Three Months Ended June 29, July 1, Net External Sales Aerospace/Defense $ 149.1 $ 120.5 Industrial 257.2 266.6 $ 406.3 $ 387.1 Gross Margin Aerospace/Defense $ 63.1 $ 47.3 Industrial 120.9 120.6 $ 184.0 $ 167.9 Selling, General & Administrative Expenses Aerospace/Defense $ 10.3 $ 9.1 Industrial 34.1 34.0 Corporate 23.2 21.6 $ 67.6 $ 64.7 Operating Income Aerospace/Defense $ 50.6 $ 36.8 Industrial 72.5 71.1 Corporate (25.6 ) (22.9 ) $ 97.5 $ 85.0 June 29, March 30, Total Assets Aerospace/Defense $ 820.4 $ 798.6 Industrial 3,782.3 3,779.6 Corporate 93.8 100.4 $ 4,696.5 $ 4,678.6 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Jun. 29, 2024 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 13. Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations, including market risks relating to fluctuations in interest rates. Derivative financial instruments are recognized on the consolidated balance sheets as either assets or liabilities and are measured at fair value. Changes in the fair values of the derivative are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of a hedged transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income/(loss) are subsequently included in earnings in the periods in which earnings are affected by the hedged item. The Company does not use derivative instruments for speculative purposes. On October 28, 2022, the Company entered into a three-year USD-denominated interest rate swap (the “Swap”) with a third-party financial counterparty under the Credit Agreement (see Note 10). The Swap was executed to protect the Company from interest rate volatility on our variable-rate Term Loan. The Swap became effective December 30, 2022 and is comprised of a $600.0 notional with a maturity of three years. The notional was $400.0 as of June 29, 2024. We receive a variable rate based on one-month Term SOFR and pay a fixed rate of 4.455%. As of June 29, 2024, approximately 79% of our debt bears interest at a fixed rate after giving effect to the interest rate swap agreement in place. The notional on the Swap amortizes as follows: Year 1: $600.0 Year 2: $400.0 Year 3: $100.0 The Swap has been designated as a cash flow hedge of the variability of the first unhedged interest payments (the hedged transactions) paid over the hedging relationship’s specified time period of three years attributable to the borrowing’s contractually specified interest index on the hedged principal of its general borrowing program or replacement or refinancing thereof. The fair value of the Swap has been disclosed in Note 6. The balance in accumulated other comprehensive income/(loss) related to the Swap has been disclosed in Note 4. The gain/loss reclassified from accumulated other comprehensive income/(loss) into earnings has been recorded as interest income/expense on the Swap and included in the operating section of the Company’s consolidated statements of cash flows. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | |
Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 50 | $ 61.4 | $ 50 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Jun. 29, 2024 | |
Significant Accounting Policies [Abstract] | |
Recent Accounting Standards Adopted | Recent Accounting Standards Adopted Not Applicable. |
Recent Accounting Standards Yet to Be Adopted | Recent Accounting Standards Yet to Be Adopted In November 2023, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024. As of June 29, 2024, the Company is evaluating the impact the standard will have on its consolidated financial statements. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Revenue from Contracts with Customers [Abstract] | |
Schedule of Disaggregates Total Revenue by Reportable Segments | The following table disaggregates total revenue by end market which is how we view our reportable segments (see Note 12): Three Months Ended June 29, July 1, Aerospace/Defense $ 149.1 $ 120.5 Industrial 257.2 266.6 Total $ 406.3 $ 387.1 |
Schedule of Disaggregates Total Revenue by Geographic Origin | The following table disaggregates total revenue by geographic origin: Three Months Ended June 29, July 1, United States $ 360.1 $ 341.3 International 46.2 45.8 Total $ 406.3 $ 387.1 |
Schedule of Percentage Revenue Recognized for Performance Obligations Satisfied Over Time Versus the Amount of Revenue Recognized | The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time: Three Months Ended June 29, July 1, Point-in-time 97 % 98 % Over time 3 % 2 % Total 100 % 100 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Loss) (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Accumulated Other Comprehensive Income/(Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income/(Loss), Net of Taxes | The following summarizes the activity within each component of accumulated other comprehensive income/(loss), net of taxes: Currency Change in Pension and Total Balance at March 30, 2024 $ (3.6 ) $ 1.2 $ 3.1 $ 0.7 Reclassification to net income — 0.8 — 0.8 Net loss on foreign currency translation (1.0 ) — — (1.0 ) Loss on derivative instrument, net of taxes — (0.9 ) — (0.9 ) Net current period other comprehensive income (1.0 ) (0.1 ) 0.0 (1.1 ) Balance at June 29, 2024 $ (4.6 ) $ 1.1 $ 3.1 $ ( 0.4 ) |
Net income Per-share Attribut_2
Net income Per-share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Net income Per-share Attributable to Common Stockholders [Abstract] | |
Schedule of Basic and Diluted Net Income Per-Share | 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-share attributable to common stockholders. Three Months Ended June 29, July 1, Net income $ 61.4 $ 50.0 Preferred stock dividends 5.7 5.7 Net income attributable to common stockholders $ 55.7 $ 44.3 Denominator: Denominator for basic net income per share attributable to common stockholders — weighted-average shares outstanding 29,054,820 28,846,874 Effect of dilution due to employee stock awards 240,178 267,945 Denominator for diluted net income per share attributable to common stockholders — weighted-average shares outstanding 29,294,998 29,114,819 Basic net income per share attributable to common stockholders $ 1.92 $ 1.53 Diluted net income per share attributable to common stockholders $ 1.90 $ 1.52 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Inventory [Abstract] | |
Schedule of Inventories | Inventories are stated at the lower of cost or net realizable value, using the first-in, first-out method, and are summarized below: June 29, March 30, Raw materials $ 142.8 $ 138.1 Work in process 144.6 137.9 Finished goods 347.6 346.8 $ 635.0 $ 622.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of Goodwill Balances, by Segment | Goodwill balances, by segment, consist of the following: Aerospace Industrial Total March 30, 2024 $ 199.2 $ 1,675.7 $ 1,874.9 Currency translation adjustments — (0.7 ) (0.7 ) June 29, 2024 $ 199.2 $ 1,675.0 $ 1,874.2 |
Schedule of Intangible Assets | Intangible Assets Weighted June 29, 2024 March 30, 2024 Useful Gross Accumulated Gross Accumulated Product approvals 24 $ 50.7 $ 20.8 $ 50.7 $ 20.3 Customer relationships and lists 24 1,300.8 174.3 1,300.7 160.7 Trade names 25 217.2 34.9 217.2 32.5 Patents and trademarks 15 10.9 6.6 10.8 6.5 Domain names 10 0.4 0.4 0.4 0.4 Internal-use software 3 18.3 10.1 16.7 8.8 Other 5 1.6 1.2 1.6 1.3 1,599.9 248.3 1,598.1 230.5 Non-amortizable repair station certifications n/a 24.3 — 24.3 — Total 24 $ 1,624.2 $ 248.3 $ 1,622.4 $ 230.5 |
Schedule of Estimated Amortization Expense | These amounts are included in other, net on the Company’s consolidated statements of operations. Estimated amortization expense for the remainder of fiscal 2025 and for the five succeeding fiscal years and thereafter is as follows: Remainder of Fiscal 2025 $ 54.4 Fiscal 2026 68.5 Fiscal 2027 64.7 Fiscal 2028 64.7 Fiscal 2029 64.6 Fiscal 2030 64.6 Fiscal 2031 and thereafter 970.1 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The significant components of accrued expenses and other current liabilities are as follows: June 29, March 30, Employee compensation and related benefits $ 46.4 $ 35.7 Taxes 35.2 23.1 Contract liabilities 30.5 22.5 Accrued rebates 41.0 38.0 Current finance lease liabilities 5.9 5.7 Accrued preferred stock dividends 4.8 4.8 Interest 4.8 10.4 Legal 1.3 1.3 Returns and warranties 9.5 9.2 Other 11.1 16.6 $ 190.5 $ 167.3 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Debt [Abstract] | |
Schedule of Balances Payable Under All Borrowing Facilities | The balances payable under all our borrowing facilities are as follows: June 29, March 30, Revolver and term loan facilities $ 635.2 $ 695.2 Senior notes 500.0 500.0 Debt issuance costs (10.1 ) (10.7 ) Other 6.3 7.4 Total debt 1,131.4 1,191.9 Less: current portion 3.8 3.8 Long-term debt $ 1,127.6 $ 1,188.1 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Reportable Segments [Abstract] | |
Schedule of Reportable Segment | Identifiable assets by reportable segment consist of those directly identified with the segment’s operations. Three Months Ended June 29, July 1, Net External Sales Aerospace/Defense $ 149.1 $ 120.5 Industrial 257.2 266.6 $ 406.3 $ 387.1 Gross Margin Aerospace/Defense $ 63.1 $ 47.3 Industrial 120.9 120.6 $ 184.0 $ 167.9 Selling, General & Administrative Expenses Aerospace/Defense $ 10.3 $ 9.1 Industrial 34.1 34.0 Corporate 23.2 21.6 $ 67.6 $ 64.7 Operating Income Aerospace/Defense $ 50.6 $ 36.8 Industrial 72.5 71.1 Corporate (25.6 ) (22.9 ) $ 97.5 $ 85.0 June 29, March 30, Total Assets Aerospace/Defense $ 820.4 $ 798.6 Industrial 3,782.3 3,779.6 Corporate 93.8 100.4 $ 4,696.5 $ 4,678.6 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Basis of Presentation [Abstract] | ||
Quarterly period contains | 13 weeks | 13 weeks |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | |
Revenue from Contracts with Customers [Line Items] | |||
Remaining performance obligations | $ 461.6 | ||
Contract assets | 8 | $ 6.9 | |
Contract current liabilities | 30.5 | 22.5 | |
Recognized revenues | 5.7 | $ 4.6 | |
Noncurrent contract liabilities | 10.1 | 19.9 | |
Accrued rebates | $ 41 | $ 38 | |
Transferred over Time [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Revenue from remaining performance obligation percentage over twelve months | 64% | ||
Revenue from remaining performance obligation percentage over twenty-four months | 92% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) - Schedule of Disaggregates Total Revenue by Reportable Segments - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Schedule of Disaggregates Total Revenue by Reportable Segments [Line Items] | ||
Net sales | $ 406.3 | $ 387.1 |
Aerospace/Defense [Member] | ||
Schedule of Disaggregates Total Revenue by Reportable Segments [Line Items] | ||
Net sales | 149.1 | 120.5 |
Industrial [Member] | ||
Schedule of Disaggregates Total Revenue by Reportable Segments [Line Items] | ||
Net sales | $ 257.2 | $ 266.6 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Details) - Schedule of Disaggregates Total Revenue by Geographic Origin - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Schedule of Disaggregates Total Revenue by Geographic Origin [Line Items] | ||
Net sales | $ 406.3 | $ 387.1 |
United States [Member] | ||
Schedule of Disaggregates Total Revenue by Geographic Origin [Line Items] | ||
Net sales | 360.1 | 341.3 |
International [Member] | ||
Schedule of Disaggregates Total Revenue by Geographic Origin [Line Items] | ||
Net sales | $ 46.2 | $ 45.8 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers (Details) - Schedule of Percentage Revenue Recognized for Performance Obligations Satisfied Over Time Versus the Amount of Revenue Recognized | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Schedule of Percentage Revenue Recognized for Performance Obligations Satisfied Over Time Versus the Amount of Revenue Recognized [Line Items] | ||
Percentage of Point-in-time | 97% | 98% |
Percentage of Over time | 3% | 2% |
Percentage of revenue | 100% | 100% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) (Details) - Schedule of Accumulated Other Comprehensive Income/(Loss), Net of Taxes $ in Millions | 3 Months Ended |
Jun. 29, 2024 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at March 30, 2024 | $ 0.7 |
Reclassification to net income | 0.8 |
Net loss on foreign currency translation | (1) |
Loss on derivative instrument, net of taxes | (0.9) |
Net current period other comprehensive income | (1.1) |
Balance at June 29, 2024 | (0.4) |
Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at March 30, 2024 | (3.6) |
Reclassification to net income | |
Net loss on foreign currency translation | (1) |
Loss on derivative instrument, net of taxes | |
Net current period other comprehensive income | (1) |
Balance at June 29, 2024 | (4.6) |
Change in Fair Value of Derivatives [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at March 30, 2024 | 1.2 |
Reclassification to net income | 0.8 |
Net loss on foreign currency translation | |
Loss on derivative instrument, net of taxes | (0.9) |
Net current period other comprehensive income | (0.1) |
Balance at June 29, 2024 | 1.1 |
Pension and Postretirement Liability [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at March 30, 2024 | 3.1 |
Reclassification to net income | |
Net loss on foreign currency translation | |
Loss on derivative instrument, net of taxes | |
Net current period other comprehensive income | 0 |
Balance at June 29, 2024 | $ 3.1 |
Net income Per-share Attribut_3
Net income Per-share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | ||
Jun. 29, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | |
Net income Per-share Attributable to Common Stockholders [Line Items] | |||
Stock options conversion | 5% | ||
Conversion, shares | 4,600,000 | 4,600,000 | |
Employee stock options [Member] | |||
Net income Per-share Attributable to Common Stockholders [Line Items] | |||
Number of shares | 87,500 | 125,898 | |
Restricted shares [Member] | |||
Net income Per-share Attributable to Common Stockholders [Line Items] | |||
Number of shares | 7,818 | 485 |
Net income Per-share Attribut_4
Net income Per-share Attributable to Common Stockholders (Details) - Schedule of Basic and Diluted Net Income Per-Share - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | |
Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Schedule of Basic and Diluted Net Income Per Common Share [Abstract] | |||
Net income | $ 50 | $ 61.4 | $ 50 |
Preferred stock dividends | 5.7 | 5.7 | |
Net income attributable to common stockholders | $ 55.7 | $ 44.3 | |
Denominator: | |||
Denominator for basic net income per share attributable to common stockholders — weighted-average shares outstanding | 29,054,820 | 28,846,874 | |
Effect of dilution due to employee stock awards | 240,178 | 267,945 | |
Denominator for diluted net income per share attributable to common stockholders — weighted-average shares outstanding | 29,294,998 | 29,114,819 | |
Basic net income per share attributable to common stockholders | $ 1.92 | $ 1.53 | |
Diluted net income per share attributable to common stockholders | $ 1.9 | $ 1.52 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Mar. 30, 2024 |
Fair Value [Abstract] | ||
Long-term fixed-rate debt, based on quoted market prices | $ 461.2 | $ 456.8 |
Carrying value of debt amount | 494.4 | 494.2 |
Fair value of the interest rate swap | 1.5 | 1.6 |
AOCI of interest rate swap, net of taxes | $ 1.2 | $ 1.1 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of Inventories - USD ($) $ in Millions | Jun. 29, 2024 | Mar. 30, 2024 |
Schedule of Inventories [Abstract] | ||
Raw materials | $ 142.8 | $ 138.1 |
Work in process | 144.6 | 137.9 |
Finished goods | 347.6 | 346.8 |
Inventory net, total | $ 635 | $ 622.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Goodwill and Intangible Assets [Abstract] | ||
Amortization expense | $ 17.8 | $ 17.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details) - Schedule of Goodwill Balances, by Segment $ in Millions | 3 Months Ended |
Jun. 29, 2024 USD ($) | |
Schedule of Goodwill Balances, by Segment [Line Items] | |
March 30, 2024 | $ 1,874.9 |
Currency translation adjustments | (0.7) |
June 29, 2024 | 1,874.2 |
Aerospace/ Defense [Member] | |
Schedule of Goodwill Balances, by Segment [Line Items] | |
March 30, 2024 | 199.2 |
Currency translation adjustments | |
June 29, 2024 | 199.2 |
Industrial [Member] | |
Schedule of Goodwill Balances, by Segment [Line Items] | |
March 30, 2024 | 1,675.7 |
Currency translation adjustments | (0.7) |
June 29, 2024 | $ 1,675 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Jun. 29, 2024 | |
Schedule of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,598.1 | $ 1,599.9 |
Accumulated Amortization | $ 230.5 | 248.3 |
Non-amortizable repair station certifications, Weighted Average Useful Lives | n/a | |
Non-amortizable repair station certifications, Gross Carrying Amount | $ 24.3 | 24.3 |
Non-amortizable repair station certifications, Accumulated Amortization | ||
Total, Weighted Average Useful Lives | 24 years | |
Total, Gross Carrying Amount | $ 1,622.4 | 1,624.2 |
Total, Accumulated Amortization | $ 230.5 | 248.3 |
Product Approvals [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 24 years | |
Gross Carrying Amount | $ 50.7 | 50.7 |
Accumulated Amortization | $ 20.3 | 20.8 |
Customer Relationships and Lists [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 24 years | |
Gross Carrying Amount | $ 1,300.7 | 1,300.8 |
Accumulated Amortization | $ 160.7 | 174.3 |
Trade Names [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 25 years | |
Gross Carrying Amount | $ 217.2 | 217.2 |
Accumulated Amortization | $ 32.5 | 34.9 |
Patents and Trademarks [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 15 years | |
Gross Carrying Amount | $ 10.8 | 10.9 |
Accumulated Amortization | $ 6.5 | 6.6 |
Domain Names [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 10 years | |
Gross Carrying Amount | $ 0.4 | 0.4 |
Accumulated Amortization | $ 0.4 | 0.4 |
Internal-use Software [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 3 years | |
Gross Carrying Amount | $ 16.7 | 18.3 |
Accumulated Amortization | $ 8.8 | 10.1 |
Other [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 5 years | |
Gross Carrying Amount | $ 1.6 | 1.6 |
Accumulated Amortization | $ 1.3 | $ 1.2 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details) - Schedule of Estimated Amortization Expense $ in Millions | Jun. 29, 2024 USD ($) |
Schedule of Estimated Amortization Expense [Abstract] | |
Remainder of Fiscal 2025 | $ 54.4 |
Fiscal 2026 | 68.5 |
Fiscal 2027 | 64.7 |
Fiscal 2028 | 64.7 |
Fiscal 2029 | 64.6 |
Fiscal 2030 | 64.6 |
Fiscal 2031 and thereafter | $ 970.1 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - USD ($) $ in Millions | Jun. 29, 2024 | Mar. 30, 2024 |
Schedule of Accrued Expenses and Other Current Liabilities [Abstract] | ||
Employee compensation and related benefits | $ 46.4 | $ 35.7 |
Taxes | 35.2 | 23.1 |
Contract liabilities | 30.5 | 22.5 |
Accrued rebates | 41 | 38 |
Current finance lease liabilities | 5.9 | 5.7 |
Accrued preferred stock dividends | 4.8 | 4.8 |
Interest | 4.8 | 10.4 |
Legal | 1.3 | 1.3 |
Returns and warranties | 9.5 | 9.2 |
Other | 11.1 | 16.6 |
Accrued expenses and other current liabilities | $ 190.5 | $ 167.3 |
Debt (Details)
Debt (Details) SFr in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 29, 2024 USD ($) | Apr. 02, 2022 USD ($) | Jun. 29, 2024 CHF (SFr) | |
Debt [Line Items] | |||
Future principal payments for fiscal 2025 | $ 0 | ||
Future principal payments for fiscal 2026 | 0 | ||
Future principal payments for fiscal 2027 | $ 615 | ||
Credit agreement, description | The Credit Agreement requires the Company to comply with various covenants, including the following financial covenants: (a) a maximum Total Net Leverage Ratio (as defined within the Credit Agreement) of 5.00:1.00, which maximum Total Net Leverage Ratio shall decrease during certain subsequent test periods as set forth in the Credit Agreement (provided that, no more than once during the term of the Facilities, such maximum ratio applicable at such time may be increased by the Company by 0.50:1.00 for a period of twelve (12) months after the consummation of a material acquisition); and (b) a minimum Interest Coverage Ratio of 2.00:1.00. | ||
Outstanding amounts under the term loan | $ 615 | ||
Revolving credit facility, borrowing capacity | $ 478.3 | ||
Net proceeds from issuance of senior notes | $ 492 | ||
Senior notes, interest rate | 4.375% | ||
Provide a bank guarantee | $ 0.1 | ||
Term Loan Facility [Member] | |||
Debt [Line Items] | |||
Credit facility maximum borrowing capacity amount | $ 1,300 | ||
October 15, 2024 [Member] | |||
Debt [Line Items] | |||
Percentage senior notes redemption capacity | 40% | ||
Redemption price of senior notes | 104.375% | ||
Redemption price of senior notes | 100% of the principal amount, plus a “make–whole” premium | ||
Senior Notes due 2029 [Member] | |||
Debt [Line Items] | |||
Senior notes, aggregate principal amount | $ 500 | ||
Principal amount percentage | 4.375% | ||
Purchase of Business Assets of Specline, Inc. [Member] | |||
Debt [Line Items] | |||
Revolving credit facility utilized | $ 18 | ||
New Credit Agreement [Member] | |||
Debt [Line Items] | |||
Credit agreement, description of variable rate basis. | amounts outstanding under the Facilities generally bore interest at either, at the Company’s option, (a) a base rate determined by reference to the higher of (i) Wells Fargo’s prime lending rate, (ii) the federal funds effective rate plus 1/2 of 1.00% and (iii) the one-month LIBOR rate plus 1.00% or (b) the LIBOR rate plus a specified margin, depending on the type of borrowing being made. The applicable margin was based on the Company’s consolidated ratio of total net debt to consolidated EBITDA (as defined within the Credit Agreement) from time to time. In December 2022, the Credit Agreement was amended to replace LIBOR with the secured overnight financing rate administered by the Federal Reserve Bank of New York (“SOFR”) so that borrowings under the Facilities denominated in U.S. dollars bear interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement) plus a credit spread adjustment of 0.10% plus a margin ranging from 0.75% to 2.00% depending on the Company’s consolidated ratio of total net debt to consolidated EBITDA. The Facilities are subject to a SOFR floor of 0.00%. As of June 29, 2024, the Company’s margin was 1.00% for SOFR loans, the commitment fee rate was 0.175%, and the letter of credit fee rate was 1.00%. | ||
Foreign Term Loan [Member] | |||
Debt [Line Items] | |||
Borrowed from the new foreign revolver | $ 2.2 | ||
Foreign Term Loan [Member] | Schaublin [Member] | |||
Debt [Line Items] | |||
Revolving credit facility utilized | 5.8 | SFr 5 | |
Revolving Credit Facility [Member] | |||
Debt [Line Items] | |||
Credit facility maximum borrowing capacity amount | 500 | ||
Revolving credit facility utilized | 3.7 | ||
Credit Agreement [Member] | Revolver [Member] | |||
Debt [Line Items] | |||
Amortized debt issuance costs | $ 14.9 | ||
Senior Notes [Member] | |||
Debt [Line Items] | |||
Mature date | Oct. 15, 2029 |
Debt (Details) - Schedule of Ba
Debt (Details) - Schedule of Balances Payable Under All Borrowing Facilities - USD ($) $ in Millions | Jun. 29, 2024 | Mar. 30, 2024 |
Schedule of Balances Payable Under All Borrowing Facilities [Abstract] | ||
Revolver and term loan facilities | $ 635.2 | $ 695.2 |
Senior notes | 500 | 500 |
Debt issuance costs | (10.1) | (10.7) |
Other | 6.3 | 7.4 |
Total debt | 1,131.4 | 1,191.9 |
Less: current portion | 3.8 | 3.8 |
Long-term debt | $ 1,127.6 | $ 1,188.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2021 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Taxes [Line Items] | |||
Effective income tax rates | 23.10% | 21.90% | |
Tax benefits associate with stock based compensation (in Dollars) | $ 0.6 | $ 0.4 | |
Effective income tax rate | 23.80% | 22.60% | |
Discrete tax benefits (in Dollars) | $ 0.1 | ||
Decrease in unrecognized tax positions, pertaining primarily to federal and state credits and state tax (in Dollars) | $ 1,900,000 | ||
Taxation of large multinational corporations minimum rate | 15% | ||
Foreign Tax Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Returns subject to examination | periods, but generally back to and including the year ending March 28, 2020, although certain tax credits generated in earlier years are open under statute from March 29, 2008 | ||
US Federal And State [Member] | |||
Income Taxes [Line Items] | |||
Effective income tax rates | 23.10% | 21.90% |
Reportable Segments (Details) -
Reportable Segments (Details) - Schedule of Reportable Segment - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | |
Net External Sales | |||
Net External Sales | $ 406.3 | $ 387.1 | |
Gross Margin | |||
Gross Margin | 184 | 167.9 | |
Selling, General & Administrative Expenses | |||
Selling, General & Administrative Expenses | 67.6 | 64.7 | |
Operating Income | |||
Operating Income | 97.5 | 85 | |
Total Assets | |||
Total Assets | 4,696.5 | $ 4,678.6 | |
Aerospace/Defense [Member] | |||
Net External Sales | |||
Net External Sales | 149.1 | 120.5 | |
Gross Margin | |||
Gross Margin | 63.1 | 47.3 | |
Selling, General & Administrative Expenses | |||
Selling, General & Administrative Expenses | 10.3 | 9.1 | |
Operating Income | |||
Operating Income | 50.6 | 36.8 | |
Total Assets | |||
Total Assets | 820.4 | 798.6 | |
Industrial [Member] | |||
Net External Sales | |||
Net External Sales | 257.2 | 266.6 | |
Gross Margin | |||
Gross Margin | 120.9 | 120.6 | |
Selling, General & Administrative Expenses | |||
Selling, General & Administrative Expenses | 34.1 | 34 | |
Operating Income | |||
Operating Income | 72.5 | 71.1 | |
Total Assets | |||
Total Assets | 3,782.3 | 3,779.6 | |
Corporate [Member] | |||
Selling, General & Administrative Expenses | |||
Selling, General & Administrative Expenses | 23.2 | 21.6 | |
Operating Income | |||
Operating Income | (25.6) | $ (22.9) | |
Total Assets | |||
Total Assets | $ 93.8 | $ 100.4 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Dec. 30, 2022 | |
Derivative Financial Instruments [Line Items] | ||
Maturity years | 3 years | |
Fixed rate of interest percentage | 4.455% | |
Specified time period | 3 years | |
Year 1 [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Notional amount | $ 600 | |
Year 2 [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Notional amount | 400 | |
Year 3 [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Notional amount | 100 | |
Interest Rate Swap [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Notional amount | $ 400 | $ 600 |
Percentage of debt that bears interest at a fixed rate | 79% |