Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 18, 2018 | Sep. 30, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | RBC Bearings INC | ||
Entity Central Index Key | 1,324,948 | ||
Document Type | 10-K | ||
Trading Symbol | ROLL | ||
Document Period End Date | Mar. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Entity a Well-known Seasoned Issuer | Yes | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3,034,567,600 | ||
Entity Common Stock, Shares Outstanding | 24,406,363 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 54,163 | $ 38,923 |
Accounts receivable, net of allowance for doubtful accounts of $1,326 in 2018 and $1,213 in 2017 | 116,890 | 109,700 |
Inventory | 306,124 | 289,594 |
Prepaid expenses and other current assets | 6,473 | 9,743 |
Total current assets | 483,650 | 447,960 |
Property, plant and equipment, net | 192,513 | 183,625 |
Goodwill | 268,124 | 268,042 |
Intangible assets, net of accumulated amortization of $38,880 in 2018 and $30,191 in 2017 | 183,764 | 196,801 |
Other assets | 14,700 | 12,419 |
Total assets | 1,142,751 | 1,108,847 |
Current liabilities: | ||
Accounts payable | 45,188 | 34,392 |
Accrued expenses and other current liabilities | 40,777 | 44,532 |
Current portion of long-term debt | 19,238 | 14,214 |
Total current liabilities | 105,203 | 93,138 |
Long-term debt, less current portion | 154,117 | 255,586 |
Deferred income taxes | 11,749 | 12,036 |
Other non-current liabilities | 37,130 | 31,043 |
Total liabilities | 308,199 | 391,803 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares: 10,000,000 in 2018 and 2017; none issued or outstanding | ||
Common stock, $.01 par value; authorized shares: 60,000,000 in 2018 and 2017; issued shares: 25,123,694 in 2018 and 24,757,803 in 2017; outstanding shares: 24,105,029 in 2018 and 23,771,481 in 2017 | 251 | 248 |
Additional paid-in capital | 339,148 | 312,474 |
Accumulated other comprehensive income | (2,285) | (9,823) |
Retained earnings | 536,978 | 448,693 |
Treasury stock, at cost, 713,687 shares in 2018 and 667,931 shares in 2017 | (39,540) | (34,548) |
Total stockholders' equity | 834,552 | 717,044 |
Total liabilities and stockholders' equity | $ 1,142,751 | $ 1,108,847 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,326 | $ 1,213 |
Intangible assets, accumulated amortization | $ 38,880 | $ 30,191 |
Preferred stock, par value (in dollars per share) | $ .01 | $ .01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ .01 | $ .01 |
Common stock, authorized | 60,000,000 | 60,000,000 |
Common stock, issued | 25,123,694 | 24,757,803 |
Common stock, outstanding | 24,105,029 | 23,771,481 |
Treasury stock, shares | 713,687 | 667,931 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 674,949 | $ 615,388 | $ 597,472 |
Cost of sales | 416,838 | 385,792 | 378,694 |
Gross margin | 258,111 | 229,596 | 218,778 |
Operating expenses: | |||
Selling, general and administrative | 113,124 | 102,922 | 98,721 |
Other, net | 16,846 | 12,981 | 16,216 |
Total operating expenses | 129,970 | 115,903 | 114,937 |
Operating income | 128,141 | 113,693 | 103,841 |
Interest expense, net | 7,507 | 8,706 | 8,722 |
Other non-operating expense | 783 | 103 | 334 |
Income before income taxes | 119,851 | 104,884 | 94,785 |
Provision for income taxes | 32,710 | 34,261 | 30,891 |
Net income | $ 87,141 | $ 70,623 | $ 63,894 |
Net income per common share: | |||
Basic (in dollars per share) | $ 3.64 | $ 3 | $ 2.75 |
Diluted (in dollars per share) | $ 3.58 | $ 2.97 | $ 2.72 |
Weighted average common shares: | |||
Basic (in shares) | 23,948,565 | 23,521,615 | 23,208,686 |
Diluted (in shares) | 24,363,789 | 23,784,636 | 23,508,418 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 87,141 | $ 70,623 | $ 63,894 |
Pension and postretirement liability adjustments, net of taxes of $415 | 1,383 | 1,331 | 465 |
Foreign currency translation adjustments | 6,155 | (4,164) | 315 |
Total comprehensive income | $ 94,679 | $ 67,790 | $ 64,674 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Pension and postretirement liability adjustments, net of taxes | $ 415 | $ 415 | $ 415 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income / (Loss) [[Member] | Retained Earnings (Accumulated Deficit) | Treasury Stock [Member] | Total |
Balance at Mar. 28, 2015 | $ 238 | $ 262,091 | $ (7,770) | $ 314,176 | $ (19,302) | $ 549,433 |
Balance (in shares) at Mar. 28, 2015 | 23,833,185 | (439,864) | ||||
Net income | 63,894 | 63,894 | ||||
Stock-based compensation | 10,200 | 10,200 | ||||
Repurchase of common stock | $ (10,492) | (10,492) | ||||
Repurchase of common stock (in shares) | (163,171) | |||||
Exercise of equity awards | $ 3 | 4,580 | 4,583 | |||
Exercise of equity awards (in shares) | 171,319 | |||||
Change in net prior service cost and actuarial losses, net of taxes of $415, $782, $276 for year ended 2018, 2017 and 2016 respectively | 465 | 465 | ||||
Issuance of restricted stock (in shares) | 142,263 | |||||
Income tax benefit on exercise of non-qualified common stock options | 2,549 | 2,549 | ||||
Currency translation adjustments | 315 | 315 | ||||
Balance at Apr. 02, 2016 | $ 241 | 279,420 | (6,990) | 378,070 | $ (29,794) | 620,947 |
Balance (in shares) at Apr. 02, 2016 | 24,146,767 | (603,035) | ||||
Net income | 70,623 | 70,623 | ||||
Stock-based compensation | 12,111 | 12,111 | ||||
Repurchase of common stock | $ (4,754) | (4,754) | ||||
Repurchase of common stock (in shares) | (64,896) | |||||
Exercise of equity awards | $ 7 | 16,163 | 16,170 | |||
Exercise of equity awards (in shares) | 456,826 | |||||
Change in net prior service cost and actuarial losses, net of taxes of $415, $782, $276 for year ended 2018, 2017 and 2016 respectively | 1,331 | 1,331 | ||||
Issuance of restricted stock (in shares) | 154,210 | |||||
Income tax benefit on exercise of non-qualified common stock options | 4,780 | 4,780 | ||||
Currency translation adjustments | (4,164) | (4,164) | ||||
Balance at Apr. 01, 2017 | $ 248 | 312,474 | (9,823) | 448,693 | $ (34,548) | 717,044 |
Balance (in shares) at Apr. 01, 2017 | 24,757,803 | (667,931) | ||||
Net income | 87,141 | 87,141 | ||||
Stock-based compensation | 13,403 | 13,403 | ||||
Repurchase of common stock | $ (4,992) | (4,992) | ||||
Repurchase of common stock (in shares) | (45,756) | |||||
Exercise of equity awards | $ 3 | 13,271 | 13,274 | |||
Exercise of equity awards (in shares) | 255,732 | |||||
Change in net prior service cost and actuarial losses, net of taxes of $415, $782, $276 for year ended 2018, 2017 and 2016 respectively | 1,383 | 1,383 | ||||
Issuance of restricted stock (in shares) | 110,159 | |||||
Impact from adoption of ASU 2016-09 | 1,144 | 1,144 | ||||
Currency translation adjustments | 6,155 | 6,155 | ||||
Balance at Mar. 31, 2018 | $ 251 | $ 339,148 | $ (2,285) | $ 536,978 | $ (39,540) | $ 834,552 |
Balance (in shares) at Mar. 31, 2018 | 25,123,694 | (713,687) |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Change in net prior service cost and actuarial losses, net of taxes | $ 415 | $ 782 | $ 276 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 87,141 | $ 70,623 | $ 63,894 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 19,016 | 18,100 | 16,807 |
Excess tax benefits from stock-based compensation | (4,780) | (2,549) | |
Deferred income taxes | (702) | 8,323 | (336) |
Amortization of intangible assets | 9,344 | 9,272 | 9,000 |
Amortization of deferred financing costs | 1,424 | 1,424 | 1,333 |
Consolidation and restructuring charges | 6,619 | 1,443 | 190 |
Stock-based compensation | 13,403 | 12,111 | 10,200 |
Loss on disposition of assets | 241 | 2,504 | 3 |
Gain on acquisition | (293) | ||
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (5,934) | (7,294) | (619) |
Inventory | (14,490) | (9,057) | (25,460) |
Prepaid expenses and other current assets | 1,088 | (2,815) | (1,576) |
Other non-current assets | (3,355) | (2,412) | (1,876) |
Accounts payable | 10,494 | (1,397) | (2,756) |
Accrued expenses and other current liabilities | (2,285) | 5,480 | 14,246 |
Other non-current liabilities | 8,285 | 10 | 2,859 |
Net cash provided by operating activities | 130,289 | 101,242 | 83,360 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (27,976) | (20,894) | (20,864) |
Acquisition of businesses, net of cash acquired | (651) | (500,000) | |
Proceeds from sale of assets | 87 | 188 | 726 |
Net cash used in investing activities | (27,889) | (21,357) | (520,138) |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility | 225,000 | ||
Repayments of revolving credit facility | (84,000) | (84,500) | (56,000) |
Proceeds from term loans | 200,000 | ||
Repayments of term loans | (13,750) | (10,000) | (7,500) |
Finance fees paid in connection with credit facility | (7,122) | ||
Payments of notes payable | (475) | (469) | (1,229) |
Repurchase of common stock | (4,992) | (4,754) | (10,492) |
Exercise of stock options | 13,274 | 16,170 | 4,583 |
Excess tax benefits from stock-based compensation | 4,780 | 2,549 | |
Net cash (used in) provided by financing activities | (89,943) | (78,773) | 349,789 |
Effect of exchange rate changes on cash | 2,783 | (1,397) | 742 |
Cash and cash equivalents: | |||
Increase/(decrease) during the year | 15,240 | (285) | (86,247) |
Cash, at beginning of year | 38,923 | 39,208 | 125,455 |
Cash, at end of year | $ 54,163 | $ 38,923 | $ 39,208 |
Organization and Business
Organization and Business | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | 1. Organization and Business RBC Bearings Incorporated (the “Company”, collectively with its subsidiaries), is a Delaware corporation. The Company operates in four reportable business segments—roller bearings, plain bearings, ball bearings and engineered products—in which it manufactures roller bearing components and assembled parts and designs and manufactures high-precision roller and ball bearings. The Company sells to a wide variety of original equipment manufacturers (“OEMs”) and distributors who are widely dispersed geographically. In fiscal 2018, no one customer accounted for more than 9% of the Company’s net sales as compared to no more than 9% and 10% of the Company’s net sales in fiscal 2017 and 2016, respectively. The Company’s segments are further discussed in Part II, Item 8. “Financial Statements and Supplemental Data,” Note 17 “Reportable Segments.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies General The consolidated financial statements include the accounts of RBC Bearings Incorporated, Roller Bearing Company of America, Inc. (“RBCA”) and its wholly-owned subsidiaries, Industrial Tectonics Bearings Corporation (“ITB”), RBC Linear Precision Products, Inc. (“LPP”), RBC Nice Bearings, Inc. (“Nice”), RBC Precision Products - Bremen, Inc. (“Bremen (MBC)”), RBC Precision Products - Plymouth, Inc. (“Plymouth”), RBC Lubron Bearing Systems, Inc. (“Lubron”), RBC Oklahoma, Inc. (“RBC Oklahoma”), RBC Aircraft Products, Inc. (“API”), RBC Southwest Products, Inc. (“SWP”), All Power Manufacturing Co. (“All Power”), RBC Aerostructures LLC (“RAS”), Western Precision Aero LLC (“WPA”), Climax Metal Products Company (“CMP”), RBC Turbine Components LLC (“TCI”), Sonic Industries, Inc. (“Sonic”), Sargent Aerospace and Defense LLC (“Sargent”), Avborne Accessory Group, Inc. (“AMS”), Schaublin Holdings S.A. and its wholly-owned subsidiaries Schaublin SA, RBC Bearings Polska sp. Z.o.o., RBC France SAS and Schaublin GmbH (“Schaublin”), RBC de Mexico S DE RL DE CV (“Mexico”), RBC Bearings U.K. Limited and its wholly-owned subsidiary Phoenix Bearings Limited (“Phoenix”), Allpower de Mexico S DE RL DE CV (“Tecate”) and RBC Bearings Canada, Inc. Divisions of RBCA include: RBC Corporate, RBC E-Shop, RBC Aerospace sales office and warehouse, Transport Dynamics (“TDC”), Heim (“Heim Bearings Company”), Engineered Components (“ECD”), RBC Aerocomponents (“RAC”), PIC Design (“PIC Design”), RBC Hartsville, RBC West Trenton, RBC Bishopsville, RBC Eastern Distribution Center, Shanghai Representative office of Roller Bearing Company of America, Inc. (“RBC Shanghai”) and RBC Grand Prarie TX location. U.S. Bearings (“USB”) is a division of SWP and Schaublin USA is a division of Nice. All intercompany balances and transactions have been eliminated in consolidation. The Company has a fiscal year consisting of 52 or 53 weeks, ending on the Saturday closest to March 31. Based on this policy, fiscal year 2018 contained 52 weeks, 2017 contained 52 weeks and 2016 contained 53 weeks. The amounts are shown in thousands, unless otherwise indicated. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are used for, but not limited to, the accounting for the allowance for doubtful accounts, valuation of inventories, accrued expenses, depreciation and amortization, income taxes and tax reserves, pension and postretirement obligations and the valuation of options. Cash and Cash Equivalents 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 and Wells Fargo & Company. The balances are insured by the Federal Deposit Insurance Company up to $250. The Company has not experienced any losses in such accounts. Inventory Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The Company accounts for inventory under a full absorption method, and records adjustments to the value of inventory based upon past sales history and forecasted plans to sell our inventories. The physical condition, including age and quality, of the inventories is also considered in establishing its valuation. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from actual requirements if future economic conditions, customer inventory levels or competitive conditions differ from our expectations. Shipping and Handling The sales price billed to customers includes shipping and handling, which is included in net sales. The costs to the Company for shipping and handling are included in cost of sales. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation and amortization of property, plant and equipment, including equipment under capital leases, is provided for by the straight-line method over the estimated useful lives of the respective assets or the lease term, if shorter. Depreciation of assets under capital leases is reported within depreciation and amortization. The cost of equipment under capital leases is equal to the lower of the net present value of the minimum lease payments or the fair market value of the leased equipment at the inception of the lease. Expenditures for normal maintenance and repairs are charged to expense as incurred. The estimated useful lives of the Company’s property, plant and equipment follows: Buildings and improvements 20-30 years Machinery and equipment 3-15 years Leasehold improvements Shorter of the term of lease or estimated useful life Recognition of Revenue and Accounts Receivable and Concentration of Credit Risk The Company recognizes revenue only after the following four basic criteria are met: ● Persuasive evidence of an arrangement exists; ● Delivery has occurred or services have been rendered; ● The seller’s price to the buyer is fixed or determinable; and ● Collectability is reasonably assured. Revenue is recognized upon the passage of title, which generally is at the time of shipment, except for certain customers for which it occurs when the products reach their destination. Accounts receivable, net of applicable allowances, is recorded when revenue is recorded. We also recognize revenue on a Ship-In-Place basis for three customers who have required that we hold the product after final production is complete. In this case, a written agreement has been executed (at the customer’s request) whereby the customer accepts the risk of loss for product that is invoiced under the Ship-In-Place arrangement. For each transaction for which revenue is recognized under a Ship-In-Place arrangement, all final manufacturing inspections have been completed and customer acceptance has been obtained. In fiscal 2018, 2.9% of our total net sales were recognized under Ship-In-Place transactions compared to 2.6% in fiscal 2017. We also on occasion record deferred revenue on our balance sheet as a liability. Deferred revenue represents progress payments received, primarily from one customer, to cover purchases of raw materials per the terms of multi-year long term contracts. Revenue associated with these agreements is recognized in accordance with the criteria discussed above. The Company sells to a large number of OEMs and distributors who service the aftermarket. The Company’s credit risk associated with accounts receivable is minimized due to its customer base and wide geographic dispersion. The Company performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral or charge interest on outstanding amounts. The Company had no concentrations of credit risk with any one customer greater than approximately 6% of accounts receivables at March 31, 2018 and 8% at April 1, 2017. Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company reviews the collectability of its receivables on an ongoing basis taking into account a combination of factors. The Company reviews potential problems, such as past due accounts, a bankruptcy filing or deterioration in the customer’s financial condition, to ensure the Company is adequately accrued for potential loss. Accounts are considered past due based on when payment was originally due. If a customer’s situation changes, such as a bankruptcy or creditworthiness, or there is a change in the current economic climate, the Company may modify its estimate of the allowance for doubtful accounts. The Company will write-off accounts receivable after reasonable collection efforts have been made and the accounts are deemed uncollectible. Goodwill and Indefinite-Lived Intangible Assets Goodwill (representing the excess of the amount paid to acquire a company over the estimated fair value of the net assets acquired) and Indefinite Lived Intangible Assets are not amortized but instead are tested for impairment annually, or when events or circumstances indicate that the value may have declined. Separate tests are performed for goodwill and indefinite lived intangible assets. We apply a qualitative test of impairment on the indefinite lived intangible assets. This is done by assessing the existence of events or circumstances which would make it more likely than not that impairment is present. No such factors were identified during our current year analysis. The determination of any goodwill impairment is made at the reporting unit level and consists of two steps. First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the goodwill’s implied fair value. The Company applies the income approach (discounted cash flow method) in testing goodwill for impairment. The key assumptions used in the discounted cash flow method used to estimate fair value include discount rates, revenue growth rates, terminal growth rates and cash flow projections. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors for each reporting unit in determining the appropriate discount rate to be used. The discount rate utilized for each reporting unit for our fiscal 2018 test was 11.0% and is indicative of the return an investor would expect to receive for investing in such a business. Terminal growth rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and long-term growth rates. The terminal growth rate used for our fiscal 2018 test was 2.5%. The Company has determined that, to date, no impairment of goodwill exists and fair value of the reporting units exceeded the carrying value in total by approximately 74.1%. The fair value of the reporting units exceeds the carrying value by a minimum of 24.8% at each of the four reporting units. A decrease of 1.0% in our terminal growth rate would not result in impairment of goodwill for any of our reporting units. An increase of 1.0% in our discount rate would not result in impairment of goodwill for any of our reporting units. The Company performs the annual impairment testing during the fourth quarter of each fiscal year. Although no changes are expected, if the actual results of the Company are less favorable than the assumptions the Company makes regarding estimated cash flows, the Company may be required to record an impairment charge in the future. Deferred Financing Costs Deferred financing costs are amortized on a straight line basis over the lives of the related credit agreements. Income Taxes The Company accounts for income taxes using the liability method, which requires it to recognize a current tax liability or asset for current taxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences between the financial statement and tax reporting bases of assets and liabilities to the extent that they are realizable. Deferred tax expense (benefit) results from the net change in deferred tax assets and liabilities during the year. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. Temporary differences relate primarily to the timing of deductions for depreciation, stock-based compensation, goodwill amortization relating to the acquisition of operating divisions, basis differences arising from acquisition accounting, pension and retirement benefits, and various accrued and prepaid expenses. Deferred tax assets and liabilities are recorded at the rates expected to be in effect when the temporary differences are expected to reverse. 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 year presented as well as the computation of basic and diluted net income per common share: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Net income $ 87,141 $ 70,623 $ 63,894 Denominator: Denominator for basic net income per common share—weighted-average shares 23,948,565 23,521,615 23,208,686 Effect of dilution due to employee stock options 415,224 263,021 299,732 Denominator for diluted net income per common share—adjusted 24,363,789 23,784,636 23,508,418 Basic net income per common share $ 3.64 $ 3.00 $ 2.75 Diluted net income per common share $ 3.58 $ 2.97 $ 2.72 At March 31, 2018, 217,280 employee stock options and 53,073 restricted shares have been excluded from the calculation of diluted earnings per share. At April 1, 2017, 459,500 employee stock options and 3,000 restricted shares have been excluded from the calculation of diluted earnings per share. At April 2, 2016, 443,250 employee stock options and no 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. Impairment of Long-Lived Assets The Company assesses the net realizable value of its long-lived assets and evaluates such assets for impairment whenever indicators of impairment are present. For amortizable long-lived assets to be held and used, if indicators of impairment are present, management determines whether the sum of the estimated undiscounted future cash flows is less than the carrying amount. The amount of asset impairment, if any, is based on the excess of the carrying amount over its fair value, which is estimated based on projected discounted future operating cash flows using a discount rate reflecting the Company’s average cost of funds. To date, no indicators of impairment exist other than those resulting in the restructuring charges already recorded. Long-lived assets to be disposed of by sale or other means are reported at the lower of carrying amount or fair value, less costs to sell. Foreign Currency Translation and Transactions Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars using the exchange rate in effect at the balance sheet date. Results of operations are translated using the average exchange rate prevailing throughout the period. The effects of exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars are included in accumulated other comprehensive income (loss), while gains and losses resulting from foreign currency transactions are included in other non-operating expense (income). Net income of the Company’s foreign operations for fiscal 2018, 2017 and 2016 amounted to $776, $7,414 and $8,660, respectively. Total assets of the Company’s foreign operations were $135,801 and $125,164 at March 31, 2018 and April 1, 2017, respectively. Fair Value of Measurements Fair value is the price that would 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). Inputs used to measure fair value are within a hierarchy consisting of three levels. Level 1 inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs represent 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 inputs represent 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. The carrying amounts reported in the balance sheet for cash and cash equivalents, short-term investments, accounts receivable, prepaids and other current assets, and accounts payable and accruals, and other current liabilities approximate their fair value due to their short-term nature. The carrying amounts of the Company’s borrowings under its Wells Fargo Credit Agreement and Swiss Credit Facility approximate fair value, as these obligations have interest rates which vary in conjunction with current market conditions. The carrying value of the mortgage on our Schaublin building approximates fair value as the rates since entering into the mortgage in fiscal 2013 have not significantly changed. 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, all of which are presented in the consolidated statements of stockholders’ equity and comprehensive income (loss). The following summarizes the activity within each component of accumulated other comprehensive income (loss), net of taxes: Currency Pension and Postretirement Total Balance at April 1, 2017 $ (3,942 ) $ (5,881 ) $ (9,823 ) Other comprehensive income before reclassifications 6,155 429 6,584 Amounts reclassified from accumulated other comprehensive loss — 954 954 Net current period other comprehensive income 6,155 1,383 7,538 Balance at March 31, 2018 $ 2,213 $ (4,498 ) $ (2,285 ) Stock-Based Compensation The Company recognizes compensation cost relating to all share-based payment transactions in the financial statements based upon the grant-date fair value of the instruments issued over the requisite service period. The fair value of each option grant was estimated on the date of grant using the Black-Scholes pricing model. Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, “ Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In May 2017, the FASB issued ASU No. 2017-09, “ Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting In March 2017, the FASB issued ASU No. 2017-07, “ Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In October 2016, the FASB issued ASU No. 2016-16, “ Income Taxes (Topic 740):Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In addition, the Company will prospectively classify all tax-related cash flows resulting from share-based payments, including the excess tax benefits related to the settlement of stock-based awards, as cash flows from operating activities in the statement of cash flows. Prior to the adoption of this standard, these were shown as cash inflows from financing activities and cash outflows from operating activities. The adoption of the ASU also resulted in the Company removing the excess tax benefits from the assumed proceeds available to repurchase shares when calculating diluted earnings per share on a prospective basis. The revised calculation increased the diluted weighted average common shares outstanding by approximately 111 thousand shares in the period of adoption. The Company also made an accounting policy election to continue to estimate forfeitures as it did prior to adoption. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) The guidance permits use of either a retrospective or cumulative effect transition method. Based upon the FASB’s decision to approve a one-year delay in implementation, the new standard is now effective for the Company in fiscal 2019, with early adoption permitted, but not earlier than fiscal 2018. The Company has concluded it will utilize the modified retrospective method upon adopting this standard. The Company has completed their assessment of the impact of ASU No. 2014-09 on its business which has identified certain differences from the application of the new standard. The Company’s performance obligations under the new standard are not materially different from the existing standard. The majority of the Company’s contracts involve the sale of parts to customers and will continue to transfer control of assets at a point in time because the criteria in the new standard for over-time recognition have not been met. For a limited number of contracts, primarily related to services performed, the Company will now recognize revenue over time in proportion to costs incurred. For these contracts, the Company has concluded that the cost-to-cost measure of progress most accurately depicts the transfer of control of assets to the customer. Based upon the results of our assessment, the Company does not expect the new revenue standard to have a material impact on the Company’s pattern of revenue recognition, operating revenue, results of operations, or financial position; however, we will expand certain disclosures as required. In reaching this conclusion, the Company evaluated its different contracting practices including Master Agreements and Purchase Orders. The assessment included analyzing the standard’s impact on the Company’s revenue streams and above mentioned contracting practices. The Company has substantially completed the process of updating accounting policies, evaluating new disclosure requirements and implementing changes to its business processes, systems and controls to support revenue recognition and disclosure under the new guidance and will adopt the requirements of the new standard in the first quarter of fiscal 2019. The Company has determined that as a result of applying the modified retrospective method, the cumulative effect adjustment to retained earnings as of April 1, 2018 will be immaterial. Other new pronouncements issued but not effective until after March 31, 2018 are not expected to have a material impact on our financial position, results of operations or liquidity. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | 3. Allowance for Doubtful Accounts The activity in the allowance for doubtful accounts consists of the following: Fiscal Year Ended Balance at Additions Other* Write-offs Balance at March 31, 2018 $ 1,213 $ 125 $ 73 $ (85 ) $ 1,326 April 1, 2017 1,324 96 (157 ) (50 ) 1,213 April 2, 2016 860 191 308 (35 ) 1,324 *Foreign currency and acquisition transactions. |
Inventory
Inventory | 12 Months Ended |
Mar. 31, 2018 | |
Inventory, Net [Abstract] | |
Inventory | 4. Inventory Inventories are summarized below: March 31, 2018 April 1, 2017 Raw materials $ 44,102 $ 35,364 Work in process 77,890 79,048 Finished goods 184,132 175,182 $ 306,124 $ 289,594 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5. Property, Plant and Equipment Property, plant and equipment consist of the following: March 31, 2018 April 1, 2017 Land $ 19,723 $ 18,164 Buildings and improvements 86,237 81,467 Machinery and equipment 259,645 240,128 365,605 339,759 Less: accumulated depreciation and amortization (173,092 ) (156,134 ) $ 192,513 $ 183,625 |
Restructuring of Operations
Restructuring of Operations | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring of Operations | 6. Restructuring of Operations In the second quarter of fiscal 2018, the Company reached a decision to restructure its manufacturing operation in Montreal, Canada. After completing its obligations, the Company expects to close its RBC Canada location and consolidate certain residual assets into other locations by the end of this fiscal year. As a result, the Company recorded an after-tax charge of $5,577 associated with the restructuring in the second quarter of fiscal 2018 attributable to the Engineered Products segment. The $5,577 charge includes a $1,337 impairment of fixed assets and a $5,157 impairment of intangible assets offset by a $917 tax benefit. The impairment charges were recognized within the “Other, net” line item within the consolidated statement of operations. The Company determined that the market approach was the most appropriate method to estimate the fair value of the fixed assets using comparable sales data and actual quotes from potential buyers in the market place. The fixed assets are comprised of land, a building, machinery and equipment. The Company assessed the fair value of the intangible assets in accordance with ASC 360-10, which are comprised of customer relationships, product approvals, tradenames and trademarks. These fair value measurements were classified as Level 3 in the valuation hierarchy. In the third and fourth quarters of fiscal 2018, the Company incurred restructuring charges of $1,091 and $100 comprised primarily of employee termination costs and building maintenance costs. These costs were recorded within the “Other, net” line item within the consolidated statement of operations and are all attributable to the Engineered Products segment. The cumulative restructuring charges as of the end of the fourth quarter of fiscal 2018, net of taxes, were $6,768. The total impact of this restructuring is expected to be between $6,800 and $7,300 in after-tax charges, all attributable to the Engineered Products segment, and is expected to conclude in the first quarter of fiscal 2019. In the third quarter of fiscal 2017, the Company reached a decision to integrate and restructure its industrial manufacturing operation in South Carolina. The Company exited a few smaller product offerings and consolidated two manufacturing facilities into one. These restructuring efforts will better align our manufacturing capacity and market focus. As a result, the Company recorded a charge of $7,060 associated with the restructuring in the third quarter of fiscal 2017 attributable to the Roller Bearings segment. The $7,060 charge includes $3,215 of inventory rationalization costs, $261 in impairment of intangibles, $2,402 loss on fixed assets disposals, and $1,182 exit obligation associated with a building operating lease, of which, $766 remains. The reduction of the exit obligation since the third quarter of fiscal 2017 was primarily related to lease payments made. The inventory rationalization costs were recorded in Cost of Sales in the income statement. All other costs were recorded under operating expenses in the “Other, net” category of the income statement. The pre-tax charge of $7,060 was offset with a tax benefit of approximately $2,222. The Company determined that the market approach was the most appropriate method to estimate the fair value for the inventory, intangible assets, equipment and building operating lease using comparable sales data and actual quotes from potential buyers in the market place. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill Goodwill balances, by segment, consist of the following: Roller Plain Ball Engineered Total April 1, 2017 $ 16,007 $ 79,597 $ 5,623 $ 166,815 $ 268,042 Translation adjustments — — — 82 82 March 31, 2018 $ 16,007 $ 79,597 $ 5,623 $ 166,897 $ 268,124 Intangible Assets March 31, 2018 April 1, 2017 Weighted Gross Accumulated Amortization Gross Accumulated Amortization Product approvals 24 $ 50,878 $ 8,351 $ 53,869 $ 6,465 Customer relationships and lists 24 106,583 16,499 107,864 12,308 Trade names 10 18,734 6,765 19,923 5,137 Distributor agreements 5 722 722 722 722 Patents and trademarks 16 9,657 4,810 8,803 4,130 Domain names 10 437 430 437 386 Other 6 1,433 1,303 1,174 1,043 Non-amortizable repair station certifications n/a 34,200 — 34,200 — Total $ 222,644 $ 38,880 $ 226,992 $ 30,191 Amortization expense for definite-lived intangible assets during fiscal years 2018, 2017 and 2016 was $9,344, $9,272 and $9,000, respectively. Estimated amortization expense for the five succeeding fiscal years and thereafter is as follows: 2019 $ 9,054 2020 8,947 2021 8,896 2022 8,779 2023 8,695 2024 and thereafter 105,193 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Mar. 31, 2018 | |
Other Liabilities, Noncurrent [Abstract] | |
Accrued Expenses and Other Current Liabilities | 8. Accrued Expenses and Other Current Liabilities The significant components of accrued expenses and other current liabilities are as follows: March 31, 2018 April 1, 2017 Employee compensation and related benefits $ 14,240 $ 12,262 Taxes 2,939 2,501 Deferred revenue 13,613 17,974 Workers compensation 2,086 2,548 Legal 1,228 1,533 Other 6,671 7,714 $ 40,777 $ 44,532 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2018 | |
Debt Instruments [Abstract] | |
Debt | 9. Debt Credit Facility In connection with the Sargent Aerospace & Defense (“Sargent”) acquisition on April 24, 2015, the Company entered into a credit agreement (the “Credit Agreement”) and related Guarantee, Pledge Agreement and Security 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 and terminated the JP Morgan Credit Agreement. The Credit Agreement provides RBCA, as Borrower, with (a) a $200,000 Term Loan and (b) a $350,000 Revolver and together with the Term Loan (the “Facilities”). The Facilities expire on April 24, 2020. Amounts outstanding under the Facilities 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 rate 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 from time to time. Currently, the Company’s margin is 0.00% for base rate loans and 1.00% for LIBOR rate loans. As of March 31, 2018, there was $500 outstanding under the Revolver and $168,750 outstanding under the Term Loan, offset by $2,968 in debt issuance costs (original amount was $7,122). The Credit Agreement requires the Company to comply with various covenants, including among other things, financial covenants to maintain the following: (1) a ratio of consolidated net debt to adjusted EBITDA, not to exceed 3.50 to 1; and (2) a consolidated interest coverage ratio not to be less than 2.75 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 agreement. As of March 31, 2018, the Company was in compliance with all such covenants. The Company’s obligations under the Credit Agreement are secured as well as providing for a pledge of substantially all of the Company’s and RBCA’s assets. The Company and certain of its subsidiaries have also entered into a Guarantee to guarantee RBCA’s obligations under the Credit Agreement. Approximately $3,990 of the Revolver is being utilized to provide letters of credit to secure RBCA’s obligations relating to certain insurance programs. As of March 31, 2018, RBCA has the ability to borrow up to an additional $345,510 under the Revolver. Other Notes Payable On October 1, 2012, one of our foreign divisions, Schaublin, purchased the land and building, which it occupied and had been leasing, for 14,067 CHF (approximately $14,910). Schaublin obtained a 20-year fixed-rate mortgage of 9,300 CHF (approximately $9,857) at an interest rate of 2.9%. The balance of the purchase price of 4,767 CHF (approximately $5,053) was paid from cash on hand. The balance on this mortgage as of March 31, 2018 was 6,743 CHF, or $7,073. The balances payable under all borrowing facilities are as follows: March 31, 2018 April 1, 2017 Revolver and term loan facilities $ 169,250 $ 267,000 Debt issuance cost (2,968 ) (4,392 ) Other 7,073 7,192 Total debt 173,355 269,800 Less: current portion 19,238 14,214 Long-term debt $ 154,117 $ 255,586 The current portion of long-term debt as of both March 31, 2018 and April 1, 2017 includes the current portion of the Schaublin mortgage and the current portion of the revolver and term loan facilities. Cash interest paid during fiscal years 2018, 2017, and 2016 was $6,227, $7,279, and $7,664, respectively. The Company’s required future annual principal payments for the next five years and thereafter are $19,238 for fiscal 2019, $24,238 for fiscal 2020, $127,238 for fiscal 2021, $488 for fiscal 2022, $488 for fiscal 2023 and $4,633 thereafter. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Mar. 31, 2018 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Non-Current Liabilities | 10. Other Non-Current Liabilities The significant components of other non-current liabilities consist of: March 31, 2018 April 1, 2017 Non-current pension liability, net $ — $ 1,895 Other postretirement benefits 2,450 2,744 Non-current income tax liability 20,176 13,492 Deferred compensation 13,620 11,195 Other 884 1,717 $ 37,130 $ 31,043 |
Pension Plan
Pension Plan | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plan | 11. Pension Plan At March 31, 2018, the Company has one consolidated noncontributory defined benefit pension plan covering union employees in its Heim division plant in Fairfield, Connecticut, its Bremen subsidiary plant in Plymouth, Indiana and former union employees of the Tyson subsidiary in Glasgow, Kentucky and the Nice subsidiary in Kulpsville, Pennsylvania. Plan assets are comprised primarily of equity and fixed income investments, as follows: March 31, 2018 April 1, 2017 Cash and cash equivalents $ 1,107 $ 10,277 U.S. equity mutual funds 18,881 8,978 International equity mutual funds 1,985 — Fixed income mutual funds 2,936 3,899 $ 24,909 $ 23,154 The fair value of the above investments is determined using quoted market prices of identical instruments. Therefore, the valuation inputs within the fair value hierarchy established by ASC 820 are classified as Level 1 of the valuation hierarchy. The following tables set forth the funded status of the Company’s defined benefit pension plan and the amount recognized in the balance sheet at March 31, 2018 and April 1, 2017: March 31, 2018 April 1, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 25,049 $ 26,917 Service cost 232 251 Interest cost 904 889 Actuarial gain (38 ) (1,452 ) Benefits paid (1,577 ) (1,556 ) Benefit obligation at end of year $ 24,570 $ 25,049 Change in plan assets: Fair value of plan assets at beginning of year $ 23,154 $ 22,731 Actual return on plan assets 1,832 479 Employer contributions 1,500 1,500 Benefits paid (1,577 ) (1,556 ) Fair value of plan assets at end of year $ 24,909 $ 23,154 Over(Under)funded status at end of year $ 339 $ (1,895 ) Amounts recognized in the consolidated balance sheet: Non-current assets $ 339 $ — Non-current liabilities — (1,895 ) Net asset (liability) recognized $ 339 $ (1,895 ) Amounts recognized in accumulated other comprehensive loss: Prior service cost $ 71 $ 106 Net actuarial loss 7,596 9,064 Accumulated other comprehensive loss $ 7,667 $ 9,170 Amounts included in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2019: Prior service cost $ 35 Net actuarial loss 916 Total $ 951 Benefits under the union plans are not a function of employees’ salaries; thus, the accumulated benefit obligation equals the projected benefit obligation. The following table sets forth net periodic benefit cost of the Company’s plan for the three fiscal years in the period ended March 31, 2018: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Components of net periodic benefit cost: Service cost $ 232 $ 251 $ 272 Interest cost 904 889 920 Expected return on plan assets (1,610 ) (1,581 ) (1,615 ) Amortization of prior service cost 35 60 66 Amortization of losses 1,207 1,394 1,343 Net periodic benefit cost $ 768 $ 1,013 $ 986 The assumptions used in determining the net periodic benefit cost information are as follows: FY 2018 FY 2017 FY 2016 Discount rate 3.70 % 3.40 % 3.40 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % The discount rate used in determining the funded status as of March 31, 2018 and April 1, 2017 was 3.70%. To determine the postretirement net periodic benefit costs in fiscal 2018, the RP-2014 adjusted to 2006 blue collar mortality table projected to the measurement date with Scale MP-2017 was used. To determine the postretirement net periodic benefit costs in fiscal 2017, the RP-2014 adjusted to 2006 blue collar mortality table projected to the measurement date with Scale MP-2016 was used and for fiscal 2016 the RP-2014 adjusted to 2006 blue collar mortality table with Scale MP-2015 was used. In developing the overall expected long-term return on plan assets assumption, a building block approach was used in which rates of return in excess of inflation were considered separately for equity securities and debt securities. The excess returns were weighted by the representative target allocation and added along with an appropriate rate of inflation to develop the overall expected long-term return on plan assets assumption. The Company’s long-term target allocation of plan assets is 70% equity and 30% fixed income investments. The Company’s investment program objective is to achieve a rate of return on plan assets which will fund the plan liabilities and provide for required benefits while avoiding undue exposure to risk to the plan and increases in funding requirements. The following benefit payments, which reflect future service as appropriate, are expected to be paid. The benefit payments are based on the same assumptions used to measure the Company’s benefit obligation at the end of fiscal 2018: 2019 $ 1,654 2020 1,692 2021 1,707 2022 1,720 2023 1,725 2024-2028 8,272 Although no contributions are required for fiscal 2019, the Company expects to make cash contributions in the $750 to $1,500 range. One of the Company’s foreign operations, Schaublin, sponsors a pension plan for its approximately 146 employees in conformance with Swiss pension law. The plan is funded with a reputable (S&P rating A+) Swiss insurer. Through the insurance contract, the Company has effectively transferred all investment and mortality risk to the insurance company, which guarantees the federally mandated annual rate of return and the conversion rate at retirement. As a result, the plan has no unfunded liability; the interest cost is exactly offset by actual return. Thus, the net periodic cost is equal to the amount of annual premium paid by the Company. For fiscal years 2018, 2017 and 2016, the Company made contribution and premium payments equal to $889, $875 and $861, respectively. The Company also has defined contribution plans under Section 401(k) of the Internal Revenue Code for all of its employees not covered by a collective bargaining agreement. Employer contributions under this plan, ranging from 10%-100% of eligible amounts contributed by employees, amounted to $1,714, $1,585 and $1,354 in fiscal 2018, 2017 and 2016, respectively. Effective September 1, 1996, the Company adopted a non-qualified Supplemental Executive Retirement Plan (“SERP”) for a select group of highly compensated management employees designated by the Board of the Company. The SERP allowed eligible employees to elect to defer, until termination of their employment, the receipt of up to 25% of their salary. In August 2008, the plan was modified, allowing eligible employees to elect to defer up to 75% of their current salary and up to 100% of bonus compensation. Employer contributions under this plan equal the lesser of 25% of the deferrals, or 1.75% of the employee’s annual salary, which vest in full after one year of service following the effective date of the SERP. Employer contributions under this plan amounted to $271, $256 and $214 in fiscal 2018, 2017 and 2016, respectively. |
Postretirement Health Care and
Postretirement Health Care and Life Insurance Benefits | 12 Months Ended |
Mar. 31, 2018 | |
Defined Contribution Plan [Abstract] | |
Postretirement Health Care and Life Insurance Benefits | 12. Postretirement Health Care and Life Insurance Benefits The Company, for the benefit of employees at its Heim, West Trenton, Bremen and PIC facilities and former union employees of its Tyson and Nice subsidiaries, sponsors contributory defined benefit health care plans that provide postretirement medical and life insurance benefits to union employees who have attained certain age and/or service requirements while employed by the Company. The plans are unfunded and costs are paid as incurred. Postretirement benefit obligations are included in “Accrued expenses and other current liabilities” and “Other non-current liabilities” in the consolidated balance sheet. The following table set forth the funded status of the Company’s postretirement benefit plans, the amount recognized in the balance sheet at March 31, 2018 and April 1, 2017: March 31, 2018 April 1, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 2,963 $ 3,222 Service cost 33 42 Interest cost 98 102 Actuarial gain (297 ) (281 ) Benefits paid (126 ) (122 ) Benefit obligation at end of year $ 2,671 $ 2,963 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Company contributions 126 122 Benefits paid (126 ) (122 ) Fair value of plan assets at end of year $ — $ — Underfunded status at end of year $ (2,671 ) $ (2,963 ) Amounts recognized in the consolidated balance sheet: Current liability $ (221 ) $ (219 ) Non-current liability (2,450 ) (2,744 ) Net liability recognized $ (2,671 ) $ (2,963 ) Amounts recognized in accumulated other comprehensive loss: Prior service cost $ 15 $ 19 Net actuarial loss (85 ) 207 Accumulated other comprehensive loss $ (70 ) $ 226 Amounts included in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2019: Prior service cost $ 3 Net actuarial loss (14 ) Total $ (11 ) Fiscal Year Ended Components of net periodic benefit cost: March 31, 2018 April 1, 2017 April 2, 2016 Service cost $ 33 $ 41 $ 54 Interest cost 98 102 107 Prior service cost amortization 3 3 3 Amount of loss recognized (4 ) 26 37 Net periodic benefit cost $ 130 $ 172 $ 201 The Company measures its plans as of the last day of the fiscal year. The plans contractually limit the benefit to be provided for certain groups of current and future retirees. As a result, there is no health care trend associated with these groups. The discount rate used in determining the accumulated postretirement benefit obligation was 3.70% at March 31, 2018 and 3.70% at April 1, 2017. The discount rate used in determining the net periodic benefit cost was 3.70% for fiscal 2018, 3.40% for fiscal 2017, and 3.40% for fiscal 2016. To determine the postretirement net periodic benefit costs in fiscal 2018, the RP-2014 adjusted to 2006 blue collar mortality table projected to the measurement date with Scale MP-2017 was used. To determine the postretirement net periodic benefit costs in fiscal 2017, the RP-2014 adjusted to 2006 blue collar mortality table projected to the measurement date with Scale MP-2016 was used and for fiscal 2016 the RP-2014 adjusted to 2006 blue collar mortality table with Scale MP-2015 was used. The following benefit payments, which reflect future service as appropriate, are expected to be paid. The benefit payments are based on the same assumptions used to measure the Company’s benefit obligation at the end of fiscal 2018: 2019 $ 221 2020 223 2021 215 2022 193 2023 201 2024-2028 945 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Income before income taxes for the Company’s domestic and foreign operations is as follows: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Domestic $ 116,513 $ 94,629 $ 83,622 Foreign 3,338 10,255 11,163 Total income before income taxes $ 119,851 $ 104,884 $ 94,785 The provision for (benefit from) income taxes consists of the following: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Current tax expense: Federal $ 28,555 $ 21,903 $ 26,281 State 1,313 887 1,960 Foreign 3,544 3,148 2,986 33,412 25,938 31,227 Deferred tax expense: Federal (273 ) 8,299 (279 ) State 457 245 342 Foreign (886 ) (221 ) (399 ) (702 ) 8,323 (336 ) Total income taxes $ 32,710 $ 34,261 $ 30,891 On December 22, 2017, the United States enacted significant changes to the U.S. tax law following the passage and signing of the Tax Cuts and Jobs Act (“TCJA” or “the Act”). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a one-time repatriation tax on undistributed foreign earnings. The Act permanently reduces the U.S. corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017. The primary impacts of the TCJA reflected in the consolidated financial statements relate to the remeasurement of deferred tax assets and liabilities resulting from the change in the corporate rate and a one-time mandatory transition tax on accumulated earnings of foreign subsidiaries. The SEC provided guidance that allows the Company to record provisional amounts if the accounting assessment is incomplete for impacts of the Act, with the requirement that the accounting be finalized in a period not to exceed one year form the date of enactment. As of March 31, 2018 the Company has not completed the accounting for the tax effects of the Act. Therefore, the Company has recorded provisional amounts for certain effects of the TCJA. These estimates may be impacted by the need for further analysis and future clarification and guidance regarding available tax accounting methods and elections, earnings and profits computations and state conformity to federal changes. The Company recorded a net tax benefit of $152 in fiscal 2018 resulting from the TCJA. The provisional benefit recognized related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse was $9,318. The provisional expense recognized related to the one one-time mandatory deemed repatriation of foreign earnings was $9,166 of which the Company will elect to pay the one-time tax over a period of eight years. An analysis of the difference between the provision for income taxes and the amount computed by applying the U.S. statutory income tax rate to pre-tax income follows: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Income taxes using U.S. federal statutory rate $ 37,825 $ 36,710 $ 33,175 State income taxes, net of federal benefit 1,221 676 1,493 Domestic production activities deduction (1,374 ) (1,803 ) (2,320 ) Revaluation of deferred tax liabilities due to federal rate change (9,318 ) — — Stock based compensation (4,905 ) — — Foreign rate differential 1,604 (662 ) (1,321 ) Transition tax 9,166 — — Research and development credits (1,293 ) (1,163 ) (1,144 ) U.S. unrecognized tax positions 452 (290 ) 181 Other - net (668 ) 793 827 $ 32,710 $ 34,261 $ 30,891 Net deferred tax assets (liabilities) are comprised of the following: March 31, 2018 April 1, 2017 Deferred tax assets (liabilities): Postretirement benefits $ 577 $ 1,018 Employee compensation accruals 2,193 4,128 Net operating losses 682 443 Inventory 7,688 12,110 Stock compensation 4,917 6,455 Pension (78 ) 698 State tax 1,134 1,466 Other 3,774 3,947 Total gross deferred tax assets 20,887 30,265 Valuation allowance (2,318 ) (919 ) Total deferred tax assets $ 18,569 $ 29,346 Deferred tax liabilities: Property, plant and equipment (13,648 ) (19,548 ) Intangible assets (16,670 ) (21,834 ) Total deferred tax liabilities (30,318 ) (41,382 ) Total net deferred tax assets (liabilities) $ (11,749 ) $ (12,036 ) The Company evaluates deferred tax assets to ensure that the estimated future taxable income will be sufficient in character (i.e. capital versus ordinary income treatment), amount and timing to result in their recovery. After considering the positive and negative evidence, a valuation allowance has been recorded on certain state credits and state net operating losses as it is more likely than not (i.e. greater than a 50% likelihood) that these items will not be utilized. For the Company’s fiscal year ended March 31, 2018 the valuation allowance increased by $1,400 which pertained to an increase of state and foreign credits. For the Company’s fiscal year ended April 1, 2017 the valuation allowance increased by $339 which pertained to an increase of state credits. These valuation allowances are required because management has determined, based on financial projections and available tax strategies, that it is unlikely the net operating losses and credits will be utilized before they expire. If events or circumstances change, valuation allowances are adjusted at that time resulting in an income tax benefit or charge. At March 31, 2018, the Company has state net operating losses in different jurisdictions at varying amounts up to $9,338, which expire at various dates through 2038. At March 31, 2018, the Company has state credits in different jurisdictions at varying amounts up to $3,440 which will expire at various dates through 2038. At March 31, 2018, the Company has foreign credits in different jurisdictions at varying amounts up to $936 which will expire at various dates through 2038. The TCJA required a mandatory deemed repatriation of certain undistributed earnings of the Company’s foreign subsidiaries as of December 31, 2017. If the earnings were distributed in the form of cash dividends, the Company would not be subject to additional U.S. income taxes but could be subject to foreign income and withholding taxes. Under accounting standards (ASC 740) a deferred tax liability is not recorded for the excess of the tax basis over the financial reporting (book) basis of an investment in a foreign subsidiary if the indefinite reinvestment criteria is met. A provision has not been made for additional U.S. federal and foreign taxes at March 31, 2018 of approximately $2,165 of undistributed earnings of foreign subsidiaries because the Company intends to reinvest these funds indefinitely to support foreign growth opportunities. It is not practicable to estimate the unrecognized deferred tax liability on these undistributed earnings. These earnings could become subject to additional tax under certain circumstances including, but not limited to, loans to the Company, or upon sale or pledging of the subsidiary’s stock. Uncertain Tax Positions Unrecognized income tax benefits represent income tax positions taken on income tax returns but not yet recognized in the consolidated financial statements. If recognized, substantially all of the unrecognized tax benefits for the Company’s fiscal years ended March 31, 2018 and April 1, 2017 would affect the effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: March 31, April 1, April 2, Balance, beginning of year $ 13,775 $ 14,297 $ 5,514 Gross (decreases) increases – tax positions taken during a prior period (2,475 ) (488 ) 248 Gross increases – tax positions taken during the current period 1,146 1,280 8,745 Reductions due to settlement with taxing authorities — (223 ) — Reductions due to lapse of the applicable statute of limitations (511 ) (1,091 ) (210 ) Balance, end of year $ 11,935 $ 13,775 $ 14,297 The Company recognizes the interest and penalties accrued related to unrecognized tax benefits in income tax expense. The Company recognized an expense of $284 and a benefit of $36 of interest and penalties on its statement of operations for the fiscal years ended March 31, 2018 and April 1, 2017, respectively. The Company has approximately $1,148 and $864 of accrued interest and penalties at March 31, 2018 and April 1, 2017, respectively. The Company believes it is reasonably possible that some of its unrecognized tax positions may be effectively settled by the end of the Company’s fiscal year ending March 30, 2019 due to the closing of audits and the statute of limitations expiring in varying jurisdictions. The decrease, pertaining primarily to federal and state credits and state tax, is estimated to be $1,777. Cash outflows for income taxes during fiscal years 2018, 2017, and 2016 were $21,045, $29,699, and $21,305 respectively. The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to state or foreign income tax examinations by tax authorities for years ending before 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 28, 2015. A U.S. federal tax examination by the Internal Revenue Service for the year ended March 30, 2013 was effectively settled in fiscal 2016. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 14. Stockholders’ Equity Long-Term Equity Incentive Plans 2005 Long-Term Incentive Plan The 2005 Long-Term Incentive Plan provides for grants of stock options, stock appreciation rights, restricted stock and performance awards. Directors, officers and other employees and persons who engage in services for the Company are eligible for grants under the Plan. The purpose of the Plan is to provide these individuals with incentives to maximize stockholder value and otherwise contribute to the Company’s success and to enable the Company to attract, retain and reward the best available persons for positions of responsibility. 1,139,170 shares of common stock were authorized for issuance under the Plan, subject to adjustment in the event of a reorganization, stock split, merger or similar change in the Company’s corporate structure or in the outstanding shares of common stock. An amendment to increase the number of shares available for issuance under the 2005 Long-Term Incentive Plan from 1,139,170 to 1,639,170 was approved by shareholder vote in September 2006. A further amendment to increase the number of shares available for issuance under the 2005 Long-Term Incentive Plan from 1,639,170 to 2,239,170 was approved by shareholder vote in September 2007. A further amendment to increase the number of shares available for issuance under the 2005 Long-Term Incentive Plan from 2,239,170 to 2,939,170 was approved by shareholder vote in September, 2010. The Company may grant shares of restricted stock to its employees and directors in the future under the Plan. The Company’s Compensation Committee will administer the Plan. The Company’s Board also has the authority to administer the Plan and to take all actions that the Compensation Committee is otherwise authorized to take under the Plan. The terms and conditions of each award made under the Plan, including vesting requirements, is set forth consistent with the Plan in a written agreement with the grantee. 2013 Long-Term Incentive Plan The 2013 Long-Term Incentive Plan provides for grants of stock options, stock appreciation rights, restricted stock and performance awards. The purpose of the Plan is to provide our directors, officers and other employees and persons who engage in services for us with incentives to maximize stockholder value and otherwise contribute to our success and to enable us to attract, retain and reward the best available persons for positions of responsibility. 1,500,000 shares of common stock were authorized for issuance under the Plan, subject to adjustment in the event of a reorganization, stock split, merger or similar change in the Company’s corporate structure or in the outstanding shares of common stock. The Company may grant shares of restricted stock to its employees and directors in the future under the Plan. The Company’s Compensation Committee will administer the Plan. The Company’s Board also has the authority to administer the Plan and to take all actions that the Compensation Committee is otherwise authorized to take under the Plan. The terms and conditions of each award made under the Plan, including vesting requirements, is set forth consistent with the Plan in a written agreement with the grantee. 2017 Long-Term Incentive Plan The 2017 Long-Term Incentive Plan provides for grants of stock options, stock appreciation rights, restricted stock and performance awards. Directors, officers and other employees and persons who engage in services for the Company are eligible for grants under the Plan. The purpose of the Plan is to provide these individuals with incentives to maximize stockholder value and otherwise contribute to the Company’s success and to enable the Company to attract, retain and reward the best available persons for positions of responsibility. 1,500,000 shares of common stock were authorized for issuance under the Plan, subject to adjustment in the event of a reorganization, stock split, merger or similar change in the Company’s corporate structure or in the outstanding shares of common stock. The Company may grant shares of restricted stock to its employees and directors in the future under the Plan. The Company’s Compensation Committee will administer the Plan. The Company’s Board also has the authority to administer the Plan and to take all actions that the Compensation Committee is otherwise authorized to take under the Plan. The terms and conditions of each award made under the Plan, including vesting requirements, is set forth consistent with the Plan in a written agreement with the grantee. Stock Options. Restricted Stock. Stock Appreciation Rights. Performance Awards. Amendment and Termination of the Plan. A summary of the status of the Company’s stock options outstanding as of March 31, 2018 and changes during the year then ended is presented below. All cashless exercises of options and warrants are handled through an independent broker. Number Of Weighted Average Weighted Average Contractual Life (Years) Intrinsic Value Outstanding, April 1, 2017 975,974 $ 63.30 5.2 $ 32,976 Awarded 217,280 104.85 Exercised (255,732 ) 51.91 Forfeitures (105 ) 116.25 Outstanding, March 31, 2018 937,417 $ 76.03 5.2 $ 45,151 Exercisable, March 31, 2018 270,092 $ 62.10 4.0 $ 16,773 The fair value for the Company’s options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions, which are updated to reflect current expectations of the dividend yield, expected life, risk-free interest rate and using historical volatility to project expected volatility: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Dividend yield 0.00 % 0.00 % 0.00 % Expected weighted-average life (yrs.) 5.0 5.0 5.0 Risk-free interest rate 2.02 % 1.17 % 1.70 % Expected volatility 24.17 % 28.45 % 31.25 % The weighted average fair value per share of options granted was $26.73 in fiscal 2018, $20.58 in fiscal 2017and $22.05 in fiscal 2016. As of March 31, 2018, there was $11,983 of unrecognized compensation costs related to options which is expected to be recognized over a weighted average period of 3.4 years. The total fair value of options that vested in fiscal 2018, 2017 and 2016 was $27,113, $19,899, $12,126, respectively. The total intrinsic value of options exercised in fiscal 2018, 2017 and 2016 was $16,002, $21,188 and $7,219, respectively. Of the total awards outstanding at March 31, 2018, 924,595 are either fully vested or are expected to vest. These shares have a weighted average exercise price of $76.01, an intrinsic value of $44,557, and a weighted average contractual term of 5.2 years. A summary of the status of the Company’s restricted stock outstanding as of March 31, 2018 and the changes during the year then ended is presented below. Number Of Weighted-Average Non-vested, April 1, 2017 318,391 $ 73.02 Granted 116,273 108.06 Vested (123,572 ) 69.44 Forfeitures (6,114 ) 77.18 Non-vested, March 31, 2018 304,978 $ 87.75 The Company recorded $5,635 (net of taxes of $3,282) in compensation in fiscal 2018 related to restricted stock awards. These awards were valued at the fair market value of the Company’s common stock on the date of issuance and are being amortized as expense over the applicable vesting period. Unrecognized expense for restricted stock was $21,141 at March 31, 2018. This cost is expected to be recognized over a weighted average period of approximately 3.1 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies The Company leases facilities under non-cancelable operating leases, which expire on various dates through February 2028, with rental expense aggregating $5,440, $5,548 and $5,101 in fiscal 2018, 2017 and 2016, respectively. The Company also has non-cancelable operating leases for transportation, computer and office equipment, which expire at various dates. Rental expense for fiscal 2018, 2017 and 2016 aggregated $1,721, $1,656 and $1,606, respectively. Certain of the above leases are renewable while none contain material contingent rent or concession clauses. The aggregate future minimum lease payments under operating leases are as follows: 2019 $ 6,384 2020 4,656 2021 3,925 2022 2,732 2023 2,501 2024 and thereafter 3,525 As of March 31, 2018, approximately 8.5% of the Company’s hourly employees in the U.S. and abroad were represented by labor unions. The Company enters into government contracts and subcontracts that are subject to audit by the government. In the opinion of the Company’s management, the results of such audits, if any, are not expected to have a material impact on the cash flows, financial condition or results of operations of the Company. For fiscal 2018, 2017 and 2016, there were no audits by the government, the results of which, in the opinion of the Company’s management, had a material impact on the cash flows, financial condition or results of operations of the Company. The Company is subject to federal, state and local environmental laws and regulations, including those governing discharges of pollutants into the air and water, the storage, handling and disposal of wastes and the health and safety of employees. The Company also may be liable under the Comprehensive Environmental Response, Compensation, and Liability Act or similar state laws for the costs of investigation and cleanup of contamination at facilities currently or formerly owned or operated by the Company, or at other facilities at which the Company may have disposed of hazardous substances. In connection with such contamination, the Company may also be liable for natural resource damages, government penalties and claims by third parties for personal injury and property damage. Agencies responsible for enforcing these laws have authority to impose significant civil or criminal penalties for non-compliance. The Company believes it is currently in material compliance with all applicable requirements of environmental laws. The Company does not anticipate material capital expenditures for environmental compliance in fiscal years 2019 or 2020. Investigation and remediation of contamination is ongoing at some of the Company’s sites. In particular, state agencies have been overseeing groundwater monitoring activities at the Company’s facility in Hartsville, South Carolina and a corrective action plan at the Company’s facility in Clayton, Georgia. At Hartsville, the Company is monitoring low levels of contaminants in the groundwater caused by former operations. Plans are currently underway to conclude remediation and monitoring activities. In connection with the purchase of the Fairfield, Connecticut facility in 1996, the Company agreed to assume responsibility for completing clean-up efforts previously initiated by the prior owner. The Company submitted data to the state that the Company believes demonstrates that no further remedial action is necessary, although the state may require additional clean-up or monitoring. In connection with the purchase of the Company’s Clayton, Georgia facility, the Company agreed to take assignment of the hazardous waste permit covering such facility and to assume certain responsibilities to implement a corrective action plan concerning the remediation of certain soil and groundwater contamination present at that facility. The corrective action plan is ongoing. Although there can be no assurance, the Company does not expect the costs associated with the above sites to be material. From time to time, we are involved in litigation and administrative proceedings which arise in the ordinary course of our business. We do not believe that any litigation or proceeding in which we are currently involved, including those discussed below, either individually or in the aggregate, is likely to have a material adverse effect on our business, financial condition, operating results, cash flow or prospects. |
Other, Net
Other, Net | 12 Months Ended |
Mar. 31, 2018 | |
Other Net | |
Other, Net | 16. Other, Net Other, net is comprised of the following: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Plant consolidation and restructuring costs 7,685 $ 4,124 $ 1,063 Acquisition costs — 55 5,096 Provision for doubtful accounts 125 96 191 Amortization of intangibles 9,344 9,272 9,000 Other (income) expense (308 ) (566 ) 866 $ 16,846 $ 12,981 $ 16,216 |
Reportable Segments
Reportable Segments | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | 17. 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 with similar economic characteristics and that meet all other required criteria, including nature of the products and production processes, distribution patterns and classes of customers, are aggregated as reportable segments. 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. The accounting policies of the reportable segments are the same as those described in Part II, Item 8. “Financial Statements and Supplementary Data,” Note 2 “Summary of Significant Accounting Policies.” 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. Identifiable assets by reportable segment consist of those directly identified with the segment’s operations. Corporate assets consist of cash, fixed assets and certain prepaid expenses. Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Net External Sales Plain $ 296,708 $ 277,700 $ 270,534 Roller 132,021 109,483 112,039 Ball 67,806 58,448 53,650 Engineered Products 178,414 169,757 161,249 $ 674,949 $ 615,388 $ 597,472 Gross Margin Plain $ 115,592 $ 110,215 $ 103,500 Roller 55,028 41,678 47,469 Ball 27,965 22,772 21,352 Engineered Products 59,526 54,931 46,457 $ 258,111 $ 229,596 $ 218,778 Selling, General and Administrative Expenses Plain $ 25,991 $ 23,585 $ 21,008 Roller 6,307 6,116 5,958 Ball 6,773 5,657 5,512 Engineered Products 21,071 19,065 19,631 Corporate 52,982 48,499 46,612 $ 113,124 $ 102,922 $ 98,721 Operating Income Plain $ 86,334 $ 81,063 $ 73,289 Roller 48,699 33,821 41,270 Ball 20,919 16,593 15,182 Engineered Products 25,081 30,877 26,970 Corporate (52,892 ) (48,661 ) (52,870 ) $ 128,141 $ 113,693 $ 103,841 Total Assets Plain $ 401,248 $ 371,169 $ 628,531 Roller 157,012 147,226 286,418 Ball 60,000 55,788 55,675 Engineered Products 465,479 474,339 454,428 Corporate 59,012 60,325 (326,542 ) $ 1,142,751 $ 1,108,847 $ 1,098,510 Capital Expenditures Plain $ 11,468 $ 9,386 $ 5,984 Roller 4,245 4,021 4,239 Ball 2,407 2,155 1,457 Engineered Products 7,209 4,591 5,693 Corporate 2,647 741 3,491 $ 27,976 $ 20,894 $ 20,864 Depreciation & Amortization Plain $ 9,296 $ 9,075 $ 9,145 Roller 4,109 4,198 4,008 Ball 1,752 1,836 1,790 Engineered Products 10,777 10,443 9,411 Corporate 2,426 1,820 1,453 $ 28,360 $ 27,372 $ 25,807 Geographic External Sales Domestic $ 592,818 $ 540,774 $ 522,405 Foreign 82,131 74,614 75,067 $ 674,949 $ 615,388 $ 597,472 Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Geographic Long-Lived Assets Domestic $ 150,716 $ 144,389 $ 145,538 Foreign 41,797 39,236 39,206 $ 192,513 $ 183,625 $ 184,744 Intersegment Sales Plain $ 5,209 $ 4,061 $ 3,973 Roller 13,262 15,202 18,874 Ball 2,408 1,732 2,475 Engineered Products 31,857 28,955 30,341 $ 52,736 $ 49,950 $ 55,663 All intersegment sales are eliminated in consolidation. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
General | General The consolidated financial statements include the accounts of RBC Bearings Incorporated, Roller Bearing Company of America, Inc. (“RBCA”) and its wholly-owned subsidiaries, Industrial Tectonics Bearings Corporation (“ITB”), RBC Linear Precision Products, Inc. (“LPP”), RBC Nice Bearings, Inc. (“Nice”), RBC Precision Products - Bremen, Inc. (“Bremen (MBC)”), RBC Precision Products - Plymouth, Inc. (“Plymouth”), RBC Lubron Bearing Systems, Inc. (“Lubron”), RBC Oklahoma, Inc. (“RBC Oklahoma”), RBC Aircraft Products, Inc. (“API”), RBC Southwest Products, Inc. (“SWP”), All Power Manufacturing Co. (“All Power”), RBC Aerostructures LLC (“RAS”), Western Precision Aero LLC (“WPA”), Climax Metal Products Company (“CMP”), RBC Turbine Components LLC (“TCI”), Sonic Industries, Inc. (“Sonic”), Sargent Aerospace and Defense LLC (“Sargent”), Avborne Accessory Group, Inc. (“AMS”), Schaublin Holdings S.A. and its wholly-owned subsidiaries Schaublin SA, RBC Bearings Polska sp. Z.o.o., RBC France SAS and Schaublin GmbH (“Schaublin”), RBC de Mexico S DE RL DE CV (“Mexico”), RBC Bearings U.K. Limited and its wholly-owned subsidiary Phoenix Bearings Limited (“Phoenix”), Allpower de Mexico S DE RL DE CV (“Tecate”) and RBC Bearings Canada, Inc. Divisions of RBCA include: RBC Corporate, RBC E-Shop, RBC Aerospace sales office and warehouse, Transport Dynamics (“TDC”), Heim (“Heim Bearings Company”), Engineered Components (“ECD”), RBC Aerocomponents (“RAC”), PIC Design (“PIC Design”), RBC Hartsville, RBC West Trenton, RBC Bishopsville, RBC Eastern Distribution Center, Shanghai Representative office of Roller Bearing Company of America, Inc. (“RBC Shanghai”) and RBC Grand Prarie TX location. U.S. Bearings (“USB”) is a division of SWP and Schaublin USA is a division of Nice. All intercompany balances and transactions have been eliminated in consolidation. The Company has a fiscal year consisting of 52 or 53 weeks, ending on the Saturday closest to March 31. Based on this policy, fiscal year 2018 contained 52 weeks, 2017 contained 52 weeks and 2016 contained 53 weeks. The amounts are shown in thousands, unless otherwise indicated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are used for, but not limited to, the accounting for the allowance for doubtful accounts, valuation of inventories, accrued expenses, depreciation and amortization, income taxes and tax reserves, pension and postretirement obligations and the valuation of options. |
Cash and Cash Equivalents | Cash and Cash Equivalents 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 and Wells Fargo & Company. The balances are insured by the Federal Deposit Insurance Company up to $250. The Company has not experienced any losses in such accounts. |
Inventory | Inventory Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The Company accounts for inventory under a full absorption method, and records adjustments to the value of inventory based upon past sales history and forecasted plans to sell our inventories. The physical condition, including age and quality, of the inventories is also considered in establishing its valuation. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from actual requirements if future economic conditions, customer inventory levels or competitive conditions differ from our expectations. |
Shipping and Handling | Shipping and Handling The sales price billed to customers includes shipping and handling, which is included in net sales. The costs to the Company for shipping and handling are included in cost of sales. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation and amortization of property, plant and equipment, including equipment under capital leases, is provided for by the straight-line method over the estimated useful lives of the respective assets or the lease term, if shorter. Depreciation of assets under capital leases is reported within depreciation and amortization. The cost of equipment under capital leases is equal to the lower of the net present value of the minimum lease payments or the fair market value of the leased equipment at the inception of the lease. Expenditures for normal maintenance and repairs are charged to expense as incurred. The estimated useful lives of the Company’s property, plant and equipment follows: Buildings and improvements 20-30 years Machinery and equipment 3-15 years Leasehold improvements Shorter of the term of lease or estimated useful life |
Recognition of Revenue and Accounts Receivable and Concentration of Credit Risk | Recognition of Revenue and Accounts Receivable and Concentration of Credit Risk The Company recognizes revenue only after the following four basic criteria are met: ● Persuasive evidence of an arrangement exists; ● Delivery has occurred or services have been rendered; ● The seller’s price to the buyer is fixed or determinable; and ● Collectability is reasonably assured. Revenue is recognized upon the passage of title, which generally is at the time of shipment, except for certain customers for which it occurs when the products reach their destination. Accounts receivable, net of applicable allowances, is recorded when revenue is recorded. We also recognize revenue on a Ship-In-Place basis for three customers who have required that we hold the product after final production is complete. In this case, a written agreement has been executed (at the customer’s request) whereby the customer accepts the risk of loss for product that is invoiced under the Ship-In-Place arrangement. For each transaction for which revenue is recognized under a Ship-In-Place arrangement, all final manufacturing inspections have been completed and customer acceptance has been obtained. In fiscal 2018, 2.9% of our total net sales were recognized under Ship-In-Place transactions compared to 2.6% in fiscal 2017. We also on occasion record deferred revenue on our balance sheet as a liability. Deferred revenue represents progress payments received, primarily from one customer, to cover purchases of raw materials per the terms of multi-year long term contracts. Revenue associated with these agreements is recognized in accordance with the criteria discussed above. The Company sells to a large number of OEMs and distributors who service the aftermarket. The Company’s credit risk associated with accounts receivable is minimized due to its customer base and wide geographic dispersion. The Company performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral or charge interest on outstanding amounts. The Company had no concentrations of credit risk with any one customer greater than approximately 6% of accounts receivables at March 31, 2018 and 8% at April 1, 2017. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company reviews the collectability of its receivables on an ongoing basis taking into account a combination of factors. The Company reviews potential problems, such as past due accounts, a bankruptcy filing or deterioration in the customer’s financial condition, to ensure the Company is adequately accrued for potential loss. Accounts are considered past due based on when payment was originally due. If a customer’s situation changes, such as a bankruptcy or creditworthiness, or there is a change in the current economic climate, the Company may modify its estimate of the allowance for doubtful accounts. The Company will write-off accounts receivable after reasonable collection efforts have been made and the accounts are deemed uncollectible. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill (representing the excess of the amount paid to acquire a company over the estimated fair value of the net assets acquired) and Indefinite Lived Intangible Assets are not amortized but instead are tested for impairment annually, or when events or circumstances indicate that the value may have declined. Separate tests are performed for goodwill and indefinite lived intangible assets. We apply a qualitative test of impairment on the indefinite lived intangible assets. This is done by assessing the existence of events or circumstances which would make it more likely than not that impairment is present. No such factors were identified during our current year analysis. The determination of any goodwill impairment is made at the reporting unit level and consists of two steps. First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the goodwill’s implied fair value. The Company applies the income approach (discounted cash flow method) in testing goodwill for impairment. The key assumptions used in the discounted cash flow method used to estimate fair value include discount rates, revenue growth rates, terminal growth rates and cash flow projections. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors for each reporting unit in determining the appropriate discount rate to be used. The discount rate utilized for each reporting unit for our fiscal 2018 test was 11.0% and is indicative of the return an investor would expect to receive for investing in such a business. Terminal growth rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and long-term growth rates. The terminal growth rate used for our fiscal 2018 test was 2.5%. The Company has determined that, to date, no impairment of goodwill exists and fair value of the reporting units exceeded the carrying value in total by approximately 74.1%. The fair value of the reporting units exceeds the carrying value by a minimum of 24.8% at each of the four reporting units. A decrease of 1.0% in our terminal growth rate would not result in impairment of goodwill for any of our reporting units. An increase of 1.0% in our discount rate would not result in impairment of goodwill for any of our reporting units. The Company performs the annual impairment testing during the fourth quarter of each fiscal year. Although no changes are expected, if the actual results of the Company are less favorable than the assumptions the Company makes regarding estimated cash flows, the Company may be required to record an impairment charge in the future. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are amortized on a straight line basis over the lives of the related credit agreements. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method, which requires it to recognize a current tax liability or asset for current taxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences between the financial statement and tax reporting bases of assets and liabilities to the extent that they are realizable. Deferred tax expense (benefit) results from the net change in deferred tax assets and liabilities during the year. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. Temporary differences relate primarily to the timing of deductions for depreciation, stock-based compensation, goodwill amortization relating to the acquisition of operating divisions, basis differences arising from acquisition accounting, pension and retirement benefits, and various accrued and prepaid expenses. Deferred tax assets and liabilities are recorded at the rates expected to be in effect when the temporary differences are expected to reverse. |
Net Income Per Common Share | 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 year presented as well as the computation of basic and diluted net income per common share: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Net income $ 87,141 $ 70,623 $ 63,894 Denominator: Denominator for basic net income per common share—weighted-average shares 23,948,565 23,521,615 23,208,686 Effect of dilution due to employee stock options 415,224 263,021 299,732 Denominator for diluted net income per common share—adjusted 24,363,789 23,784,636 23,508,418 Basic net income per common share $ 3.64 $ 3.00 $ 2.75 Diluted net income per common share $ 3.58 $ 2.97 $ 2.72 At March 31, 2018, 217,280 employee stock options and 53,073 restricted shares have been excluded from the calculation of diluted earnings per share. At April 1, 2017, 459,500 employee stock options and 3,000 restricted shares have been excluded from the calculation of diluted earnings per share. At April 2, 2016, 443,250 employee stock options and no 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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses the net realizable value of its long-lived assets and evaluates such assets for impairment whenever indicators of impairment are present. For amortizable long-lived assets to be held and used, if indicators of impairment are present, management determines whether the sum of the estimated undiscounted future cash flows is less than the carrying amount. The amount of asset impairment, if any, is based on the excess of the carrying amount over its fair value, which is estimated based on projected discounted future operating cash flows using a discount rate reflecting the Company’s average cost of funds. To date, no indicators of impairment exist other than those resulting in the restructuring charges already recorded. Long-lived assets to be disposed of by sale or other means are reported at the lower of carrying amount or fair value, less costs to sell. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars using the exchange rate in effect at the balance sheet date. Results of operations are translated using the average exchange rate prevailing throughout the period. The effects of exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars are included in accumulated other comprehensive income (loss), while gains and losses resulting from foreign currency transactions are included in other non-operating expense (income). Net income of the Company’s foreign operations for fiscal 2018, 2017 and 2016 amounted to $776, $7,414 and $8,660, respectively. Total assets of the Company’s foreign operations were $135,801 and $125,164 at March 31, 2018 and April 1, 2017, respectively. |
Fair Value of Measurements | Fair Value of Measurements Fair value is the price that would 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). Inputs used to measure fair value are within a hierarchy consisting of three levels. Level 1 inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs represent 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 inputs represent 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. The carrying amounts reported in the balance sheet for cash and cash equivalents, short-term investments, accounts receivable, prepaids and other current assets, and accounts payable and accruals, and other current liabilities approximate their fair value due to their short-term nature. The carrying amounts of the Company’s borrowings under its Wells Fargo Credit Agreement and Swiss Credit Facility approximate fair value, as these obligations have interest rates which vary in conjunction with current market conditions. The carrying value of the mortgage on our Schaublin building approximates fair value as the rates since entering into the mortgage in fiscal 2013 have not significantly changed. |
Accumulated Other Comprehensive Income (Loss) | 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, all of which are presented in the consolidated statements of stockholders’ equity and comprehensive income (loss). The following summarizes the activity within each component of accumulated other comprehensive income (loss), net of taxes: Currency Pension and Postretirement Total Balance at April 1, 2017 $ (3,942 ) $ (5,881 ) $ (9,823 ) Other comprehensive income before reclassifications 6,155 429 6,584 Amounts reclassified from accumulated other comprehensive loss — 954 954 Net current period other comprehensive income 6,155 1,383 7,538 Balance at March 31, 2018 $ 2,213 $ (4,498 ) $ (2,285 ) |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation cost relating to all share-based payment transactions in the financial statements based upon the grant-date fair value of the instruments issued over the requisite service period. The fair value of each option grant was estimated on the date of grant using the Black-Scholes pricing model. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, “ Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In May 2017, the FASB issued ASU No. 2017-09, “ Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting In March 2017, the FASB issued ASU No. 2017-07, “ Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In October 2016, the FASB issued ASU No. 2016-16, “ Income Taxes (Topic 740):Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In addition, the Company will prospectively classify all tax-related cash flows resulting from share-based payments, including the excess tax benefits related to the settlement of stock-based awards, as cash flows from operating activities in the statement of cash flows. Prior to the adoption of this standard, these were shown as cash inflows from financing activities and cash outflows from operating activities. The adoption of the ASU also resulted in the Company removing the excess tax benefits from the assumed proceeds available to repurchase shares when calculating diluted earnings per share on a prospective basis. The revised calculation increased the diluted weighted average common shares outstanding by approximately 111 thousand shares in the period of adoption. The Company also made an accounting policy election to continue to estimate forfeitures as it did prior to adoption. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) The guidance permits use of either a retrospective or cumulative effect transition method. Based upon the FASB’s decision to approve a one-year delay in implementation, the new standard is now effective for the Company in fiscal 2019, with early adoption permitted, but not earlier than fiscal 2018. The Company has concluded it will utilize the modified retrospective method upon adopting this standard. The Company has completed their assessment of the impact of ASU No. 2014-09 on its business which has identified certain differences from the application of the new standard. The Company’s performance obligations under the new standard are not materially different from the existing standard. The majority of the Company’s contracts involve the sale of parts to customers and will continue to transfer control of assets at a point in time because the criteria in the new standard for over-time recognition have not been met. For a limited number of contracts, primarily related to services performed, the Company will now recognize revenue over time in proportion to costs incurred. For these contracts, the Company has concluded that the cost-to-cost measure of progress most accurately depicts the transfer of control of assets to the customer. Based upon the results of our assessment, the Company does not expect the new revenue standard to have a material impact on the Company’s pattern of revenue recognition, operating revenue, results of operations, or financial position; however, we will expand certain disclosures as required. In reaching this conclusion, the Company evaluated its different contracting practices including Master Agreements and Purchase Orders. The assessment included analyzing the standard’s impact on the Company’s revenue streams and above mentioned contracting practices. The Company has substantially completed the process of updating accounting policies, evaluating new disclosure requirements and implementing changes to its business processes, systems and controls to support revenue recognition and disclosure under the new guidance and will adopt the requirements of the new standard in the first quarter of fiscal 2019. The Company has determined that as a result of applying the modified retrospective method, the cumulative effect adjustment to retained earnings as of April 1, 2018 will be immaterial. Other new pronouncements issued but not effective until after March 31, 2018 are not expected to have a material impact on our financial position, results of operations or liquidity. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives Of The Company Property Plant And Equipment | The estimated useful lives of the Company's property, plant and equipment follows: Buildings and improvements 20-30 years Machinery and equipment 3-15 years Leasehold improvements Shorter of the term of lease or estimated useful life |
Schedule Of Calculation Of Weighted-Average Shares Outstanding | The table below reflects the calculation of weighted-average shares outstanding for each year presented as well as the computation of basic and diluted net income per common share: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Net income $ 87,141 $ 70,623 $ 63,894 Denominator: Denominator for basic net income per common share—weighted-average shares 23,948,565 23,521,615 23,208,686 Effect of dilution due to employee stock options 415,224 263,021 299,732 Denominator for diluted net income per common share—adjusted 24,363,789 23,784,636 23,508,418 Basic net income per common share $ 3.64 $ 3.00 $ 2.75 Diluted net income per common share $ 3.58 $ 2.97 $ 2.72 |
Schedule Of Accumulated Other Comprehensive Income (Loss) | The following summarizes the activity within each component of accumulated other comprehensive income (loss), net of taxes: Currency Pension and Postretirement Liability Total Balance at April 1, 2017 $ (3,942 ) $ (5,881 ) $ (9,823 ) Other comprehensive income before reclassifications 6,155 429 6,584 Amounts reclassified from accumulated other comprehensive loss — 954 954 Net current period other comprehensive income 6,155 1,383 7,538 Balance at March 31, 2018 $ 2,213 $ (4,498 ) $ (2,285 ) |
Allowance for Doubtful Accoun29
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of allowance for doubtful accounts | The activity in the allowance for doubtful accounts consists of the following: Fiscal Year Ended Balance at Additions Other* Write-offs Balance at March 31, 2018 $ 1,213 $ 125 $ 73 $ (85 ) $ 1,326 April 1, 2017 1,324 96 (157 ) (50 ) 1,213 April 2, 2016 860 191 308 (35 ) 1,324 *Foreign currency and acquisition transactions. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | Inventories are summarized below: March 31, 2018 April 1, 2017 Raw materials $ 44,102 $ 35,364 Work in process 77,890 79,048 Finished goods 184,132 175,182 $ 306,124 $ 289,594 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consist of the following: March 31, 2018 April 1, 2017 Land $ 19,723 $ 18,164 Buildings and improvements 86,237 81,467 Machinery and equipment 259,645 240,128 365,605 339,759 Less: accumulated depreciation and amortization (173,092 ) (156,134 ) $ 192,513 $ 183,625 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Goodwill Balances, By Segment | Goodwill balances, by segment, consist of the following: Roller Plain Ball Engineered Total April 1, 2017 $ 16,007 $ 79,597 $ 5,623 $ 166,815 $ 268,042 Translation adjustments — — — 82 82 March 31, 2018 $ 16,007 $ 79,597 $ 5,623 $ 166,897 $ 268,124 |
Schedule Of Intangible Assets | Intangible Assets March 31, 2018 April 1, 2017 Weighted Gross Accumulated Amortization Gross Accumulated Amortization Product approvals 24 $ 50,878 $ 8,351 $ 53,869 $ 6,465 Customer relationships and lists 24 106,583 16,499 107,864 12,308 Trade names 10 18,734 6,765 19,923 5,137 Distributor agreements 5 722 722 722 722 Patents and trademarks 16 9,657 4,810 8,803 4,130 Domain names 10 437 430 437 386 Other 6 1,433 1,303 1,174 1,043 Non-amortizable repair station certifications n/a 34,200 — 34,200 — Total $ 222,644 $ 38,880 $ 226,992 $ 30,191 |
Schedule Of Estimated Amortization Expense | Estimated amortization expense for the five succeeding fiscal years and thereafter is as follows: 2019 $ 9,054 2020 8,947 2021 8,896 2022 8,779 2023 8,695 2024 and thereafter 105,193 |
Accrued Expenses and Other Cu33
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of accrued expenses and other current liabilities | The significant components of accrued expenses and other current liabilities are as follows: March 31, 2018 April 1, 2017 Employee compensation and related benefits $ 14,240 $ 12,262 Taxes 2,939 2,501 Deferred revenue 13,613 17,974 Workers compensation 2,086 2,548 Legal 1,228 1,533 Other 6,671 7,714 $ 40,777 $ 44,532 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Instruments [Abstract] | |
Schedule of balances payable under borrowing facilities | The balances payable under all borrowing facilities are as follows: March 31, 2018 April 1, 2017 Revolver and term loan facilities $ 169,250 $ 267,000 Debt issuance cost (2,968 ) (4,392 ) Other 7,073 7,192 Total debt 173,355 269,800 Less: current portion 19,238 14,214 Long-term debt $ 154,117 $ 255,586 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of other non-current liabilities | The significant components of other non-current liabilities consist of: March 31, 2018 April 1, 2017 Non-current pension liability, net $ — $ 1,895 Other postretirement benefits 2,450 2,744 Non-current income tax liability 20,176 13,492 Deferred compensation 13,620 11,195 Other 884 1,717 $ 37,130 $ 31,043 |
Pension Plan (Tables)
Pension Plan (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of summary of plan assets | Plan assets are comprised primarily of equity and fixed income investments, as follows: March 31, 2018 April 1, 2017 Cash and cash equivalents $ 1,107 $ 10,277 U.S. equity mutual funds 18,881 8,978 International equity mutual funds 1,985 — Fixed income mutual funds 2,936 3,899 $ 24,909 $ 23,154 |
Schedule of funded status of defined benefit pension plan and amount recognized in balance sheet | The following tables set forth the funded status of the Company’s defined benefit pension plan and the amount recognized in the balance sheet at March 31, 2018 and April 1, 2017: March 31, 2018 April 1, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 25,049 $ 26,917 Service cost 232 251 Interest cost 904 889 Actuarial gain (38 ) (1,452 ) Benefits paid (1,577 ) (1,556 ) Benefit obligation at end of year $ 24,570 $ 25,049 Change in plan assets: Fair value of plan assets at beginning of year $ 23,154 $ 22,731 Actual return on plan assets 1,832 479 Employer contributions 1,500 1,500 Benefits paid (1,577 ) (1,556 ) Fair value of plan assets at end of year $ 24,909 $ 23,154 Over(Under)funded status at end of year $ 339 $ (1,895 ) Amounts recognized in the consolidated balance sheet: Non-current assets $ 339 $ — Non-current liabilities — (1,895 ) Net asset (liability) recognized $ 339 $ (1,895 ) Amounts recognized in accumulated other comprehensive loss: Prior service cost $ 71 $ 106 Net actuarial loss 7,596 9,064 Accumulated other comprehensive loss $ 7,667 $ 9,170 |
Schedule of components of net periodic benefit cost | Amounts included in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2019: Prior service cost $ 35 Net actuarial loss 916 Total $ 951 |
Schedule of forth net periodic benefit cost | The following table sets forth net periodic benefit cost of the Company’s plan for the three fiscal years in the period ended March 31, 2018: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Components of net periodic benefit cost: Service cost $ 232 $ 251 $ 272 Interest cost 904 889 920 Expected return on plan assets (1,610 ) (1,581 ) (1,615 ) Amortization of prior service cost 35 60 66 Amortization of losses 1,207 1,394 1,343 Net periodic benefit cost $ 768 $ 1,013 $ 986 |
Schedule of assumptions used in determining net periodic benefit cost | The assumptions used in determining the net periodic benefit cost information are as follows: FY 2018 FY 2017 FY 2016 Discount rate 3.70 % 3.40 % 3.40 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % |
Schedule of future service benefit payments | The benefit payments are based on the same assumptions used to measure the Company’s benefit obligation at the end of fiscal 2018: 2019 $ 1,654 2020 1,692 2021 1,707 2022 1,720 2023 1,725 2024-2028 8,272 |
Postretirement Health Care an37
Postretirement Health Care and Life Insurance Benefits (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Defined Contribution Plan [Abstract] | |
Schedule of funded status of postretirement benefit plans and amount recognized in balance sheet | The following table set forth the funded status of the Company’s postretirement benefit plans, the amount recognized in the balance sheet at March 31, 2018 and April 1, 2017: March 31, 2018 April 1, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 2,963 $ 3,222 Service cost 33 42 Interest cost 98 102 Actuarial gain (297 ) (281 ) Benefits paid (126 ) (122 ) Benefit obligation at end of year $ 2,671 $ 2,963 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Company contributions 126 122 Benefits paid (126 ) (122 ) Fair value of plan assets at end of year $ — $ — Underfunded status at end of year $ (2,671 ) $ (2,963 ) Amounts recognized in the consolidated balance sheet: Current liability $ (221 ) $ (219 ) Non-current liability (2,450 ) (2,744 ) Net liability recognized $ (2,671 ) $ (2,963 ) Amounts recognized in accumulated other comprehensive loss: Prior service cost $ 15 $ 19 Net actuarial loss (85 ) 207 Accumulated other comprehensive loss $ (70 ) $ 226 Amounts included in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2019: Prior service cost $ 3 Net actuarial loss (14 ) Total $ (11 ) |
Schedule of postretirement benefit costs | Fiscal Year Ended Components of net periodic benefit cost: March 31, 2018 April 1, 2017 April 2, 2016 Service cost $ 33 $ 41 $ 54 Interest cost 98 102 107 Prior service cost amortization 3 3 3 Amount of loss recognized (4 ) 26 37 Net periodic benefit cost $ 130 $ 172 $ 201 |
Schedule of expected postretirement benefit payments | The benefit payments are based on the same assumptions used to measure the Company’s benefit obligation at the end of fiscal 2018: 2019 $ 221 2020 223 2021 215 2022 193 2023 201 2024-2028 945 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | Income before income taxes for the Company’s domestic and foreign operations is as follows: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Domestic $ 116,513 $ 94,629 $ 83,622 Foreign 3,338 10,255 11,163 Total income before income taxes $ 119,851 $ 104,884 $ 94,785 |
Schedule of components of income tax expense (benefit) | The provision for (benefit from) income taxes consists of the following: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Current tax expense: Federal $ 28,555 $ 21,903 $ 26,281 State 1,313 887 1,960 Foreign 3,544 3,148 2,986 33,412 25,938 31,227 Deferred tax expense: Federal (273 ) 8,299 (279 ) State 457 245 342 Foreign (886 ) (221 ) (399 ) (702 ) 8,323 (336 ) Total income taxes $ 32,710 $ 34,261 $ 30,891 |
Schedule of effective income tax rate reconciliation | An analysis of the difference between the provision for income taxes and the amount computed by applying the U.S. statutory income tax rate to pre-tax income follows: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Income taxes using U.S. federal statutory rate $ 37,825 $ 36,710 $ 33,175 State income taxes, net of federal benefit 1,221 676 1,493 Domestic production activities deduction (1,374 ) (1,803 ) (2,320 ) Revaluation of deferred tax liabilities due to federal rate change (9,318 ) — — Stock based compensation (4,905 ) — — Foreign rate differential 1,604 (662 ) (1,321 ) Transition tax 9,166 — — Research and development credits (1,293 ) (1,163 ) (1,144 ) U.S. unrecognized tax positions 452 (290 ) 181 Other - net (668 ) 793 827 $ 32,710 $ 34,261 $ 30,891 |
Schedule of deferred tax assets and liabilities | Net deferred tax assets (liabilities) are comprised of the following: March 31, 2018 April 1, 2017 Deferred tax assets (liabilities): Postretirement benefits $ 577 $ 1,018 Employee compensation accruals 2,193 4,128 Net operating losses 682 443 Inventory 7,688 12,110 Stock compensation 4,917 6,455 Pension (78 ) 698 State tax 1,134 1,466 Other 3,774 3,947 Total gross deferred tax assets 20,887 30,265 Valuation allowance (2,318 ) (919 ) Total deferred tax assets $ 18,569 $ 29,346 Deferred tax liabilities: Property, plant and equipment (13,648 ) (19,548 ) Intangible assets (16,670 ) (21,834 ) Total deferred tax liabilities (30,318 ) (41,382 ) Total net deferred tax assets (liabilities) $ (11,749 ) $ (12,036 ) |
Schedule of unrecognized compensation cost, nonvested awards | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: March 31, April 1, April 2, Balance, beginning of year $ 13,775 $ 14,297 $ 5,514 Gross (decreases) increases – tax positions taken during a prior period (2,475 ) (488 ) 248 Gross increases – tax positions taken during the current period 1,146 1,280 8,745 Reductions due to settlement with taxing authorities — (223 ) — Reductions due to lapse of the applicable statute of limitations (511 ) (1,091 ) (210 ) Balance, end of year $ 11,935 $ 13,775 $ 14,297 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of summary of status of stock options outstanding | All cashless exercises of options and warrants are handled through an independent broker. Number Of Weighted Average Weighted Average Contractual Life (Years) Intrinsic Value Outstanding, April 1, 2017 975,974 $ 63.30 5.2 $ 32,976 Awarded 217,280 104.85 Exercised (255,732 ) 51.91 Forfeitures (105 ) 116.25 Outstanding, March 31, 2018 937,417 $ 76.03 5.2 $ 45,151 Exercisable, March 31, 2018 270,092 $ 62.10 4.0 $ 16,773 |
Schedule of black-scholes option pricing model | The fair value for the Company’s options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions, which are updated to reflect current expectations of the dividend yield, expected life, risk-free interest rate and using historical volatility to project expected volatility: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Dividend yield 0.00 % 0.00 % 0.00 % Expected weighted-average life (yrs.) 5.0 5.0 5.0 Risk-free interest rate 2.02 % 1.17 % 1.70 % Expected volatility 24.17 % 28.45 % 31.25 % |
Schedule of summary of status of restricted stock outstanding | A summary of the status of the Company’s restricted stock outstanding as of March 31, 2018 and the changes during the year then ended is presented below. Number Of Weighted-Average Non-vested, April 1, 2017 318,391 $ 73.02 Granted 116,273 108.06 Vested (123,572 ) 69.44 Forfeitures (6,114 ) 77.18 Non-vested, March 31, 2018 304,978 $ 87.75 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | The aggregate future minimum lease payments under operating leases are as follows: 2019 $ 6,384 2020 4,656 2021 3,925 2022 2,732 2023 2,501 2024 and thereafter 3,525 |
Other, Net (Tables)
Other, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Net | |
Schedule of other cost and expense, by component | Other, net is comprised of the following: Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Plant consolidation and restructuring costs $ 7,685 $ 4,124 $ 1,063 Acquisition costs — 55 5,096 Provision for doubtful accounts 125 96 191 Amortization of intangibles 9,344 9,272 9,000 Other (income) expense (308 ) (566 ) 866 $ 16,846 $ 12,981 $ 16,216 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Corporate assets consist of cash, fixed assets and certain prepaid expenses. Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Net External Sales Plain $ 296,708 $ 277,700 $ 270,534 Roller 132,021 109,483 112,039 Ball 67,806 58,448 53,650 Engineered Products 178,414 169,757 161,249 $ 674,949 $ 615,388 $ 597,472 Gross Margin Plain $ 115,592 $ 110,215 $ 103,500 Roller 55,028 41,678 47,469 Ball 27,965 22,772 21,352 Engineered Products 59,526 54,931 46,457 $ 258,111 $ 229,596 $ 218,778 Selling, General and Administrative Expenses Plain $ 25,991 $ 23,585 $ 21,008 Roller 6,307 6,116 5,958 Ball 6,773 5,657 5,512 Engineered Products 21,071 19,065 19,631 Corporate 52,982 48,499 46,612 $ 113,124 $ 102,922 $ 98,721 Operating Income Plain $ 86,334 $ 81,063 $ 73,289 Roller 48,699 33,821 41,270 Ball 20,919 16,593 15,182 Engineered Products 25,081 30,877 26,970 Corporate (52,892 ) (48,661 ) (52,870 ) $ 128,141 $ 113,693 $ 103,841 Total Assets Plain $ 401,248 $ 371,169 $ 628,531 Roller 157,012 147,226 286,418 Ball 60,000 55,788 55,675 Engineered Products 465,479 474,339 454,428 Corporate 59,012 60,325 (326,542 ) $ 1,142,751 $ 1,108,847 $ 1,098,510 Capital Expenditures Plain $ 11,468 $ 9,386 $ 5,984 Roller 4,245 4,021 4,239 Ball 2,407 2,155 1,457 Engineered Products 7,209 4,591 5,693 Corporate 2,647 741 3,491 $ 27,976 $ 20,894 $ 20,864 Depreciation & Amortization Plain $ 9,296 $ 9,075 $ 9,145 Roller 4,109 4,198 4,008 Ball 1,752 1,836 1,790 Engineered Products 10,777 10,443 9,411 Corporate 2,426 1,820 1,453 $ 28,360 $ 27,372 $ 25,807 Geographic External Sales Domestic $ 592,818 $ 540,774 $ 522,405 Foreign 82,131 74,614 75,067 $ 674,949 $ 615,388 $ 597,472 Fiscal Year Ended March 31, 2018 April 1, 2017 April 2, 2016 Geographic Long-Lived Assets Domestic $ 150,716 $ 144,389 $ 145,538 Foreign 41,797 39,236 39,206 $ 192,513 $ 183,625 $ 184,744 Intersegment Sales Plain $ 5,209 $ 4,061 $ 3,973 Roller 13,262 15,202 18,874 Ball 2,408 1,732 2,475 Engineered Products 31,857 28,955 30,341 $ 52,736 $ 49,950 $ 55,663 |
Organization and Business (Deta
Organization and Business (Details Narrative) | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Maximum amount of sales that one customer accounted for percentage | 9.00% | 9.00% | 10.00% |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Useful Life Description | Shorter of the term of lease or estimated useful life |
Maximum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Minimum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Accounting Policies [Abstract] | |||
Net income | $ 87,141 | $ 70,623 | $ 63,894 |
Denominator: | |||
Denominator for basic net income per common share - weighted-average shares | 23,948,565 | 23,521,615 | 23,208,686 |
Effect of dilution due to employee stock options | 415,224 | 263,021 | 299,732 |
Denominator for diluted net income per common share - adjusted weighted-average shares | 24,363,789 | 23,784,636 | 23,508,418 |
Basic net income per common share | $ 3.64 | $ 3 | $ 2.75 |
Diluted net income per common share | $ 3.58 | $ 2.97 | $ 2.72 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Accounting Policies [Abstract] | |||
Balance Beginning, Currency Translation | $ (3,942) | ||
Other comprehensive income before reclassifications, Currency Translation | 6,155 | ||
Amounts reclassified from accumulated other comprehensive loss, Currency Translation | |||
Net current period other comprehensive income, Currency Translation | 6,155 | $ (4,164) | $ 315 |
Balance Ending, Currency Translation | 2,213 | (3,942) | |
Balance Beginning, Pension and Postretirement Liability | (5,881) | ||
Other comprehensive income before reclassifications, Pension and Postretirement Liability | 429 | ||
Amounts reclassified from accumulated other comprehensive loss, Pension and Postretirement Liability | 954 | ||
Net current period other comprehensive income, Pension and Postretirement Liability | 1,383 | 1,331 | $ 465 |
Balance Ending, Pension and Postretirement Liability | (4,498) | (5,881) | |
Balance Beginning, Total | (9,823) | ||
Other comprehensive income before reclassifications | 6,584 | ||
Amounts reclassified from accumulated other comprehensive loss | 954 | ||
Net current period other comprehensive income | 7,538 | ||
Balance Ending, Total | $ (2,285) | $ (9,823) |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | Mar. 28, 2015 | |
Number of Employee Stock Options Excluded from the Calculation of Diluted Earnings Per Share | 217,280 | 459,500 | 443,250 | |
Net Income (Loss) | $ 87,141 | $ 70,623 | $ 63,894 | |
Assets, Total | $ 1,142,751 | $ 1,108,847 | 1,098,510 | |
Percentage of Total Net Sales Under Ship In Place Transactions | 2.90% | 2.60% | ||
Fair Value Inputs, Discount Rate | 11.00% | |||
Fair Value Inputs, Long-term Revenue Growth Rate | 2.50% | |||
Goodwill, Impaired, Facts and Circumstances Leading to Impairment | A decrease of 1.0% in our terminal growth rate would not result in impairment of goodwill for any of our reporting units. An increase of 1.0% in our discount rate would not result in impairment of goodwill for any of our reporting units. | |||
Tax benefit | $ 4,780 | 2,549 | ||
Unrecognized excess tax benefits | $ 11,935 | 13,775 | 14,297 | $ 5,514 |
U.S. statutory tax rate (in percent) | 21.00% | |||
Previously U.S. statutory tax rate (in percent) | 35.00% | |||
Stock-Based Compensation [Member] | ||||
Tax benefit | $ 4,917 | |||
Unrecognized excess tax benefits | 1,144 | |||
Foreign Tax Authority [Member] | ||||
Net Income (Loss) | 776 | 7,414 | $ 8,660 | |
Assets, Total | $ 135,801 | $ 125,164 | ||
Restricted Stock [Member] | ||||
Number of Employee Stock Options Excluded from the Calculation of Diluted Earnings Per Share | 53,073 | 3,000 | ||
Maximum [Member] | ||||
Cash, FDIC Insured Amount | $ 250 | |||
Percentage Of Goodwill Fair Value Exceeding Carrying Value | 74.10% | |||
Minimum [Member] | ||||
Percentage Of Goodwill Fair Value Exceeding Carrying Value | 24.80% | |||
Accounts Receivable [Member] | ||||
Concentration Risk, Percentage | 6.00% | 8.00% |
Allowance for Doubtful Accoun48
Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | ||
Receivables [Abstract] | ||||
Allowance for doubtful accounts, Balance at Beginning of Year | $ 1,213 | $ 1,324 | $ 860 | |
Allowance for doubtful accounts, Additions | 125 | 96 | 191 | |
Allowance for doubtful accounts, Other | [1] | 73 | (157) | 308 |
Allowance for doubtful accounts, Write-offs | (85) | (50) | (35) | |
Allowance for doubtful accounts, Balance at End of Year | $ 1,326 | $ 1,213 | $ 1,324 | |
[1] | Foreign currency and acquisition transactions. |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 44,102 | $ 35,364 |
Work in process | 77,890 | 79,048 |
Finished goods | 184,132 | 175,182 |
Inventory, total | $ 306,124 | $ 289,594 |
Property, Plant and Equipment50
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 19,723 | $ 18,164 |
Buildings and improvements | 86,237 | 81,467 |
Machinery and equipment | 259,645 | 240,128 |
Property, plant and equipment, Gross | 365,605 | 339,759 |
Less: accumulated depreciation and amortization | (173,092) | (156,134) |
Property, Plant and Equipment, Net, Total | $ 192,513 | $ 183,625 |
Restructuring of Operations (De
Restructuring of Operations (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Employee Termination Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 100 | $ 1,091 | |||
Roller Bearings [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 7,060 | ||||
Inventory rationalization costs | 3,215 | ||||
Impairment of intangible assets (excluding goodwill) | 261 | ||||
lease payments | 766 | ||||
Loss on fixed assets disposals | 2,402 | ||||
Exit obligation associated with building operating lease | 1,182 | ||||
Pre tax charges | 7,060 | ||||
Discrete tax benefit | $ 2,222 | ||||
Engineered Products [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 5,577 | ||||
Impairment of fixed assets | 1,337 | ||||
Impairment of intangible assets (excluding goodwill) | 5,157 | ||||
Discrete tax benefit | $ 917 | ||||
Total expected restructuring after-tax charges | $ 6,768 | ||||
Engineered Products [Member] | Subsequent Event [Member] | Minimum [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total expected restructuring after-tax charges | $ 6,800 | ||||
Engineered Products [Member] | Subsequent Event [Member] | Maximum [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total expected restructuring after-tax charges | $ 7,300 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Line Items] | |
Goodwill Beginnning Balance | $ 268,042 |
Translation adjustments | 82 |
Goodwill Ending Balance | 268,124 |
Roller [Member] | |
Goodwill [Line Items] | |
Goodwill Beginnning Balance | 16,007 |
Translation adjustments | |
Goodwill Ending Balance | 16,007 |
Plain [Member] | |
Goodwill [Line Items] | |
Goodwill Beginnning Balance | 79,597 |
Translation adjustments | |
Goodwill Ending Balance | 79,597 |
Ball [Member] | |
Goodwill [Line Items] | |
Goodwill Beginnning Balance | 5,623 |
Translation adjustments | |
Goodwill Ending Balance | 5,623 |
Engineered Products [Member] | |
Goodwill [Line Items] | |
Goodwill Beginnning Balance | 166,815 |
Translation adjustments | 82 |
Goodwill Ending Balance | $ 166,897 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizable repair station certifications | $ 34,200 | $ 34,200 |
Gross amount | 222,644 | 226,992 |
Accumulated Amortization | $ 38,880 | 30,191 |
Product Approvals [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 24 years | |
Gross Carrying Amount | $ 50,878 | 53,869 |
Accumulated Amortization | $ 8,351 | 6,465 |
Customer Relationships And Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 24 years | |
Gross Carrying Amount | $ 106,583 | 107,864 |
Accumulated Amortization | $ 16,499 | 12,308 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 10 years | |
Gross Carrying Amount | $ 18,734 | 19,923 |
Accumulated Amortization | $ 6,765 | 5,137 |
Distributor Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 5 years | |
Gross Carrying Amount | $ 722 | 722 |
Accumulated Amortization | $ 722 | 722 |
Patents And Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 16 years | |
Gross Carrying Amount | $ 9,657 | 8,803 |
Accumulated Amortization | $ 4,810 | 4,130 |
D Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 10 years | |
Gross Carrying Amount | $ 437 | 437 |
Accumulated Amortization | $ 430 | 386 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Lives | 6 years | |
Gross Carrying Amount | $ 1,433 | 1,174 |
Accumulated Amortization | $ 1,303 | $ 1,043 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets (Details 2) $ in Thousands | Mar. 31, 2018USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2,019 | $ 9,054 |
2,020 | 8,947 |
2,021 | 8,896 |
2,022 | 8,779 |
2,023 | 8,695 |
2024 and thereafter | $ 105,193 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Amortization of intangible assets | $ 9,344 | $ 9,272 | $ 9,000 |
Accrued Expenses and Other Cu56
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Other Liabilities, Noncurrent [Abstract] | ||
Employee compensation and related benefits | $ 14,240 | $ 12,262 |
Taxes | 2,939 | 2,501 |
Deferred revenue | 13,613 | 17,974 |
Workers compensation | 2,086 | 2,548 |
Legal | 1,228 | 1,533 |
Other | 6,671 | 7,714 |
Accrued Expenses And Other Current Liabilities Net | $ 40,777 | $ 44,532 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Debt Instrument [Line Items] | ||
Debt issuance cost | $ (2,968) | $ (4,392) |
Total debt | 173,355 | 269,800 |
Less: current portion | 19,238 | 14,214 |
Long-term debt | 154,117 | 255,586 |
Other Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 7,073 | 7,192 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 169,250 | $ 267,000 |
Debt (Details Narrative)
Debt (Details Narrative) SFr in Thousands, $ in Thousands | Oct. 01, 2012USD ($) | Oct. 01, 2012CHF (SFr) | Apr. 24, 2015USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) | Mar. 31, 2018CHF (SFr) | Oct. 01, 2012CHF (SFr) |
Debt Instruments, Issuance Costs | $ 2,968 | $ 4,392 | ||||||
Interest paid in cash | 6,227 | $ 7,279 | $ 7,664 | |||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 19,238 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 24,238 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 127,238 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 488 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 488 | |||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 4,633 | |||||||
Schaublin [Member] | ||||||||
Cash paid for purchase price | $ 5,053 | |||||||
Schaublin [Member] | CHF | ||||||||
Cash paid for purchase price | SFr | SFr 4,767 | |||||||
Schaublin [Member] | Land and Building [Member] | ||||||||
Land and building leased | $ 14,910 | |||||||
Period for fixed rate on mortgage loan | 20 years | 20 years | ||||||
Mortgage loan interest rate | 2.90% | 2.90% | ||||||
Mortgage loan fixed rate | $ 9,857 | |||||||
Mortgage loan | $ 7,073 | |||||||
Schaublin [Member] | Land and Building [Member] | CHF | ||||||||
Land and building leased | SFr | SFr 14,067 | |||||||
Mortgage loan fixed rate | SFr | SFr 9,300 | |||||||
Mortgage loan | SFr | SFr 6,743 | |||||||
New Credit Agreement [Member] | Maximum [Member] | ||||||||
Consolidated net debt adjusted EBITDA ratio | 3.50 | |||||||
Consolidated Interest Coverage Ratio | 2.75 | |||||||
New Credit Agreement [Member] | Minimum [Member] | ||||||||
Consolidated net debt adjusted EBITDA ratio | 1 | |||||||
Consolidated Interest Coverage Ratio | 1 | |||||||
Letter of Credit [Member] | ||||||||
Line of Credit | $ 3,990 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 345,510 | |||||||
Sargent Aerospace Defense Business [Member] | ||||||||
Business Acquisition, Date of Acquisition Agreement | Apr. 24, 2015 | |||||||
Sargent Aerospace Defense Business [Member] | New Credit Agreement [Member] | ||||||||
Debt Instruments, Issuance Costs | 2,968 | |||||||
Debt Issuance Original Amount | $ 7,122 | |||||||
Sargent Aerospace Defense Business [Member] | Base Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||||
Sargent Aerospace Defense Business [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||
Debt Instrument, Description of Variable Rate Basis | higher of (1) Wells Fargos 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 rate plus a specified margin, depending on the type of borrowing being made | |||||||
Sargent Aerospace Defense Business [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument, Face Amount | $ 350,000 | |||||||
Line of Credit | $ 500 | |||||||
Sargent Aerospace Defense Business [Member] | Term Loan [Member] | ||||||||
Debt Instrument, Face Amount | $ 200,000 | |||||||
Term Loan | $ 168,750 |
Other Non-Current Liabilities59
Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Other Liabilities, Noncurrent [Abstract] | ||
Non-current pension liability, net | $ 1,895 | |
Other postretirement benefits | $ 2,450 | 2,744 |
Non-current income tax liability | 20,176 | 13,492 |
Deferred compensation | 13,620 | 11,195 |
Other | 884 | 1,717 |
Other Liabilities, Noncurrent | $ 37,130 | $ 31,043 |
Pension Plan (Details)
Pension Plan (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Plan Assets | $ 24,909 | $ 23,154 |
Cash and Cash Equivalents [Member] | ||
Plan Assets | 1,107 | 10,277 |
U.S. equity mutual funds [Member] | ||
Plan Assets | 18,881 | 8,978 |
International Equity Mutual Funds [Member] | ||
Plan Assets | 1,985 | |
Fixed Income Funds [Member] | ||
Plan Assets | $ 2,936 | $ 3,899 |
Pension Plan (Details 1)
Pension Plan (Details 1) - Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | $ 25,049 | $ 26,917 | |
Service cost | 232 | 251 | $ 272 |
Interest cost | 904 | 889 | 920 |
Actuarial gain | (38) | (1,452) | |
Benefits paid | (1,577) | (1,556) | |
Benefit obligation at end of year | 24,570 | 25,049 | 26,917 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 23,154 | 22,731 | |
Actual return on plan assets | 1,832 | 479 | |
Employer contributions | 1,500 | 1,500 | |
Benefits paid | (1,577) | (1,556) | |
Fair value of plan assets at end of year | 24,909 | 23,154 | $ 22,731 |
Over(Under)funded status at end of year | 339 | (1,895) | |
Amounts recognized in the consolidated balance sheet: | |||
Non-current assets | 339 | ||
Non-current liabilities | (1,895) | ||
Net asset (liability) recognized | $ 339 | $ (1,895) |
Pension Plan (Details 2)
Pension Plan (Details 2) - Pension Plan [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Amounts recognized in accumulated other comprehensive loss: | ||
Prior service cost | $ 71 | $ 106 |
Net actuarial loss | 7,596 | 9,064 |
Accumulated other comprehensive loss | $ 7,667 | $ 9,170 |
Pension Plan (Details 3)
Pension Plan (Details 3) - Pension Plan [Member] $ in Thousands | Mar. 31, 2018USD ($) |
Amounts included in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2018: | |
Prior service cost | $ 35 |
Net actuarial loss | 916 |
Total | $ 951 |
Pension Plan (Details 4)
Pension Plan (Details 4) - Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Components of net periodic benefit cost: | |||
Service cost | $ 232 | $ 251 | $ 272 |
Interest cost | 904 | 889 | 920 |
Expected return on plan assets | (1,610) | (1,581) | (1,615) |
Amortization of prior service cost | 35 | 60 | 66 |
Amortization of losses | 1,207 | 1,394 | 1,343 |
Net periodic benefit cost | $ 768 | $ 1,013 | $ 986 |
Pension Plan (Details 5)
Pension Plan (Details 5) | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.70% | 3.40% | 3.40% |
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.00% |
Pension Plan (Details 6)
Pension Plan (Details 6) - Pension Plan [Member] $ in Thousands | Mar. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 1,654 |
2,020 | 1,692 |
2,021 | 1,707 |
2,022 | 1,720 |
2,023 | 1,725 |
2024-2028 | $ 8,272 |
Pension Plan (Details Narrative
Pension Plan (Details Narrative) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018USD ($)Number | Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) | |
Pension Plan Entire Disclosure [Line Items] | |||
Discount rate used in determining the accumulated postretirement benefit obligation | 3.70% | 3.70% | |
Cash contributions minimum | $ 750 | ||
Cash contributions maximum | $ 1,500 | ||
Minimum [Member] | |||
Pension Plan Entire Disclosure [Line Items] | |||
Target Allocation of Plan Assets in Equity | 30.00% | ||
Maximum [Member] | |||
Pension Plan Entire Disclosure [Line Items] | |||
Target Allocation of Plan Assets in Equity | 70.00% | ||
Schaublin Pension Plan [Member] | |||
Pension Plan Entire Disclosure [Line Items] | |||
Number of employees covered by the Schaublin pension plan | Number | 146 | ||
Company contribution and premium payments | $ 889 | $ 875 | $ 861 |
Pension Plans [Member] | |||
Pension Plan Entire Disclosure [Line Items] | |||
Employer contributions | $ 1,714 | 1,585 | 1,354 |
Pension Plans [Member] | Minimum [Member] | |||
Pension Plan Entire Disclosure [Line Items] | |||
Employer Contribution Percentage | 10.00% | ||
Pension Plans [Member] | Maximum [Member] | |||
Pension Plan Entire Disclosure [Line Items] | |||
Employer Contribution Percentage | 100.00% | ||
Supplemental Employee Retirement Plan [Member] | |||
Pension Plan Entire Disclosure [Line Items] | |||
Eligible employee compensation | 25.00% | ||
Employer contributions | $ 271 | $ 256 | $ 214 |
Percentage Of Employees Annual Salary | 1.75% |
Postretirement Health Care an68
Postretirement Health Care and Life Insurance Benefits (Details) - Postretirement Benefit Costs [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of year | $ 2,963 | $ 3,222 |
Service cost | 33 | 42 |
Interest cost | 98 | 102 |
Actuarial gain | (297) | (281) |
Benefits paid | (126) | (122) |
Benefit obligation at end of year | 2,671 | 2,963 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | ||
Company contributions | 126 | 122 |
Benefits paid | (126) | (122) |
Fair value of plan assets at end of year | ||
Underfunded status at end of year | (2,671) | (2,963) |
Amounts recognized in the consolidated balance sheet: | ||
Current liability | (221) | (219) |
Non-current liability | (2,450) | (2,744) |
Net liability recognized | (2,671) | (2,963) |
Amounts recognized in accumulated other comprehensive loss: | ||
Prior service cost | 15 | 19 |
Net actuarial loss | (85) | 207 |
Accumulated other comprehensive loss | $ (70) | $ 226 |
Postretirement Health Care an69
Postretirement Health Care and Life Insurance Benefits (Details 1) - Postretirement Benefit Plans [Member] $ in Thousands | Mar. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | $ 3 |
Net actuarial loss | (14) |
Total | $ (11) |
Postretirement Health Care an70
Postretirement Health Care and Life Insurance Benefits (Details 2) - Postretirement Benefit Plans [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 33 | $ 41 | $ 54 |
Interest cost | 98 | 102 | 107 |
Prior service cost amortization | 3 | 3 | 3 |
Amount of loss recognized | (4) | 26 | 37 |
Net periodic benefit cost | $ 130 | $ 172 | $ 201 |
Postretirement Health Care an71
Postretirement Health Care and Life Insurance Benefits (Details 3) - Postretirement Benefit Costs [Member] $ in Thousands | Mar. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 221 |
2,020 | 223 |
2,021 | 215 |
2,022 | 193 |
2,023 | 201 |
2024-2028 | $ 945 |
Postretirement Health Care an72
Postretirement Health Care and Life Insurance Benefits (Details Narrative) | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.70% | 3.70% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.70% | 3.40% | 3.40% |
Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.70% | 3.70% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.70% | 3.40% | 3.40% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Income Taxes [Line Items] | |||
Income before income taxes | $ 119,851 | $ 104,884 | $ 94,785 |
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Income before income taxes | 116,513 | 94,629 | 83,622 |
Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Income before income taxes | $ 3,338 | $ 10,255 | $ 11,163 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Current: | |||
Federal | $ 28,555 | $ 21,903 | $ 26,281 |
State | 1,313 | 887 | 1,960 |
Foreign | 3,544 | 3,148 | 2,986 |
Current Income Tax Expense (Benefit) | 33,412 | 25,938 | 31,227 |
Deferred: | |||
Federal | (273) | 8,299 | (279) |
State | 457 | 245 | 342 |
Foreign | (886) | (221) | (399) |
Deferred Income Tax Expense (Benefit) | (702) | 8,323 | (336) |
Total | $ 32,710 | $ 34,261 | $ 30,891 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income taxes using U.S. federal statutory rate | $ 37,825 | $ 36,710 | $ 33,175 |
State income taxes, net of federal benefit | 1,221 | 676 | 1,493 |
Domestic production activities deduction | (1,374) | (1,803) | (2,320) |
Revaluation of deferred tax liabilities due to federal rate change | (9,318) | ||
Stock based compensation | (4,905) | ||
Foreign rate differential | 1,604 | (662) | (1,321) |
Transition tax | 9,166 | ||
Research and development credits | (1,293) | (1,163) | (1,144) |
U.S. unrecognized tax positions | 452 | (290) | 181 |
Other - net | (668) | 793 | 827 |
Income Tax Expense (Benefit) | $ 32,710 | $ 34,261 | $ 30,891 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Deferred tax assets (liabilities): | ||
Postretirement benefits | $ 577 | $ 1,018 |
Employee compensation accruals | 2,193 | 4,128 |
Net operating losses | 682 | 443 |
Inventory | 7,688 | 12,110 |
Stock compensation | 4,917 | 6,455 |
Pension | (78) | 698 |
State tax | 1,134 | 1,466 |
Other | 3,774 | 3,947 |
Total gross deferred tax assets | 20,887 | 30,265 |
Valuation allowance | (2,318) | (919) |
Total deferred tax assets | 18,569 | 29,346 |
Deferred tax liabilities: | ||
Property, plant and equipment | (13,648) | (19,548) |
Intangible assets | (16,670) | (21,834) |
Total deferred tax liabilities | (30,318) | (41,382) |
Total net deferred tax assets (liabilities) | $ (11,749) | $ (12,036) |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 13,775 | $ 14,297 | $ 5,514 |
Gross (decreases) increases - tax positions taken during a prior period | (2,475) | (488) | 248 |
Gross increases - tax positions taken during the current period | 1,146 | 1,280 | 8,745 |
Reductions due to settlement with taxing authorities | (223) | ||
Reductions due to lapse of the applicable statute of limitations | (511) | (1,091) | (210) |
Balance, end of year | $ 11,935 | $ 13,775 | $ 14,297 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Income Tax Contingency [Line Items] | |||
Valuation Allowances and Reserves, Period Increase (Decrease) | $ 1,400 | $ 339 | |
Net Operating Losses | 9,338 | ||
Undistributed foreign earnings | 2,165 | ||
Accrued interest and penalties | 1,148 | 864 | |
Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations | 511 | 1,091 | $ 210 |
Change In Interest And Penalties Related To Unrecognized Tax Benefits | 284 | 36 | |
Estimated Decrease In Unrecognized Tax Positions In Credits And State Tax | $ 1,777 | ||
Corporate income tax rate | 21.00% | ||
Previous Corporate income tax rate | 35.00% | ||
Income tax paid | $ 21,045 | $ 29,699 | $ 21,305 |
Foreign Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Credit Carryforward Expiration Year | 2,038 | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount, Total | $ 936 | ||
Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Credit Carryforward Expiration Year | 2,038 | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount, Total | $ 3,440 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Of Common Stock Options, Outstanding, Beginning balance | 975,974 | |
Number Of Common Stock Options, Awarded | 217,280 | |
Number Of Common Stock Options, Exercised | (255,732) | |
Number Of Common Stock Options, Forfeitures | (105) | |
Number Of Common Stock Options, Outstanding, Ending balance | 937,417 | 975,974 |
Number Of Common Stock Options, Exercisable, Ending balance | 270,092 | |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 63.30 | |
Weighted Average Exercise Price, Awarded | 104.85 | |
Weighted Average Exercise Price, Exercised | 51.91 | |
Weighted Average Exercise Price, Forfeitures | 116.25 | |
Weighted Average Exercise Price, Outstanding, Ending balance | 76.03 | $ 63.30 |
Weighted Average Exercise Price, Exercisable, Ending balance | $ 62.10 | |
Weighted Average Contractual Life (Years), Outstanding | 5 years 2 months 12 days | 5 years 2 months 12 days |
Weighted Average Contractual Life (Years), Exercisable | 4 years | |
Intrinsic Value, Outstanding | $ 45,151 | $ 32,976 |
Intrinsic Value, Exercisable | $ 16,773 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected weighted-average life (yrs.) | 5 years | 5 years | 5 years |
Risk-free interest rate | 2.02% | 1.17% | 1.70% |
Expected volatility | 24.17% | 28.45% | 31.25% |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Stockholders' Equity Note [Abstract] | |
Number Of Restricted Stock Shares, Non-vested, Beginning balance | shares | 318,391 |
Number Of Restricted Stock Shares, Granted | shares | 116,273 |
Number Of Restricted Stock Shares, Vested | shares | (123,572) |
Number Of Restricted Stock Shares, Forfeitures | shares | (6,114) |
Number Of Restricted Stock Shares, Non-vested, Ending balance | shares | 304,978 |
Weighted-Average Grant Date Fair Value, Non-vested, Beginning balance | $ / shares | $ 73.02 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 108.06 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 69.44 |
Weighted-Average Grant Date Fair Value, Forfeitures | $ / shares | 77.18 |
Weighted-Average Grant Date Fair Value, Non-vested, Ending balance | $ / shares | $ 87.75 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum option to purchase common stock, percentage | 10.00% | ||
Maximum fair market value limit to approve an award of incentive options | $ 100,000 | ||
Stock constituting voting interest, minimum | 10.00% | ||
Restricted stock outstanding | 304,978 | 318,391 | |
Total fair value of options vested | $ 27,113 | $ 19,899 | $ 12,126 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 26.73 | $ 20.58 | $ 22.05 |
Total intrinsic value of options exercised | $ 16,002 | $ 21,188 | $ 7,219 |
Total awards outstanding either fully vested or expected to vest | 924,595 | ||
Total awards outstanding, vested or expected to vest, weighted average exercise price | $ 76.01 | ||
Total awards outstanding, vested or expected to vest, intrinsic value | $ 44,557 | ||
Total awards outstanding, vested or expected to vest, weighted average contractual term in years | 5 years 2 months 12 days | ||
Two Thousand Five Long TermIncentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options | 138,500 | ||
Number Of Common Stock Options, Exercisable, Ending balance | 99,800 | ||
Restricted stock outstanding | 9,259 | ||
Option to be exercised within period, maximum, in years | 10 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 21,141 | ||
Unrecognized compensation costs related to options expected to be recognized over a weighted average period in years | 3 years 1 month 6 days | ||
Net of taxes | $ 3,282 | ||
Restricted stock awards compensation | $ 5,635 | ||
Two Thousand Thirteen Long Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant options | 798,917 | ||
Common stock authorized for issuance | 1,500,000 | ||
Option to be exercised within period, maximum, in years | 7 years | ||
Number Of Common Stock Options, Exercisable, Ending balance | 170,292 | ||
Restricted stock outstanding | 295,719 | ||
2017 Long - Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock authorized for issuance | 1,500,000 | ||
Option to be exercised within period, maximum, in years | 10 years | ||
Two Thousand Five Longterm Incentive Plan Amendments In September Two Thousand Ten [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 2,239,170 | ||
Two Thousand Five Longterm Incentive Plan Amendments In September Two Thousand Ten [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 2,939,170 | ||
More Than Ten Percent Company's Voting Power [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price minimum percent of fair market value of common stock share | 110.00% | ||
Two Thousand Five Long Term Incentive Plan Amendment In September Two Thousand Seven [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,639,170 | ||
Two Thousand Five Long Term Incentive Plan Amendment In September Two Thousand Seven [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 2,239,170 | ||
Two Thousand Five Long-Term Incentive Plan, Amendments In September Two Thousand Six [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,139,170 | ||
Two Thousand Five Long-Term Incentive Plan, Amendments In September Two Thousand Six [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,639,170 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options | 937,417 | 975,974 | |
Number Of Common Stock Options, Exercisable, Ending balance | 270,092 | ||
Unrecognized compensation costs | $ 11,983 | ||
Unrecognized compensation costs related to options expected to be recognized over a weighted average period in years | 3 years 4 months 24 days |
Commitments and Contingencies83
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 6,384 |
2,020 | 4,656 |
2,021 | 3,925 |
2,022 | 2,732 |
2,023 | 2,501 |
2024 and thereafter | $ 3,525 |
Commitments and Contingencies84
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases Rent Expense For Transportation Computer And Office Equipment | $ 1,721 | $ 1,656 | $ 1,606 |
Employees Represented By Labor Unions | 8.50% | ||
Operating Leases, Rent Expense | $ 5,440 | $ 5,548 | $ 5,101 |
Operating Lease Expiration Date | February 29, 2028 |
Other, Net (Details)
Other, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Other Net | |||
Plant consolidation and restructuring costs | $ 7,685 | $ 4,124 | $ 1,063 |
Acquisition costs | 55 | 5,096 | |
Provision for doubtful accounts | 125 | 96 | 191 |
Amortization of intangibles | 9,344 | 9,272 | 9,000 |
Other (income) expense | (308) | (566) | 866 |
Other, net | $ 16,846 | $ 12,981 | $ 16,216 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Segment Reporting Information [Line Items] | |||
Net External Sales | $ 674,949 | $ 615,388 | $ 597,472 |
Gross Margin | 258,111 | 229,596 | 218,778 |
Selling, General & Administrative Expenses | 113,124 | 102,922 | 98,721 |
Operating Income | 128,141 | 113,693 | 103,841 |
Total Assets | 1,142,751 | 1,108,847 | 1,098,510 |
Capital Expenditures | 27,976 | 20,894 | 20,864 |
Depreciation & Amortization | 28,360 | 27,372 | 25,807 |
Geographic External Sales | 674,949 | 615,388 | 597,472 |
Geographic Long-Lived Assets | 192,513 | 183,625 | 184,744 |
Intersegment Sales | 52,736 | 49,950 | 55,663 |
Plain [Member] | |||
Segment Reporting Information [Line Items] | |||
Net External Sales | 296,708 | 277,700 | 270,534 |
Gross Margin | 115,592 | 110,215 | 103,500 |
Selling, General & Administrative Expenses | 25,991 | 23,585 | 21,008 |
Operating Income | 86,334 | 81,063 | 73,289 |
Total Assets | 401,248 | 371,169 | 628,531 |
Capital Expenditures | 11,468 | 9,386 | 5,984 |
Depreciation & Amortization | 9,296 | 9,075 | 9,145 |
Intersegment Sales | 5,209 | 4,061 | 3,973 |
Roller [Member] | |||
Segment Reporting Information [Line Items] | |||
Net External Sales | 132,021 | 109,483 | 112,039 |
Gross Margin | 55,028 | 41,678 | 47,469 |
Selling, General & Administrative Expenses | 6,307 | 6,116 | 5,958 |
Operating Income | 48,699 | 33,821 | 41,270 |
Total Assets | 157,012 | 147,226 | 286,418 |
Capital Expenditures | 4,245 | 4,021 | 4,239 |
Depreciation & Amortization | 4,109 | 4,198 | 4,008 |
Intersegment Sales | 13,262 | 15,202 | 18,874 |
Ball [Member] | |||
Segment Reporting Information [Line Items] | |||
Net External Sales | 67,806 | 58,448 | 53,650 |
Gross Margin | 27,965 | 22,772 | 21,352 |
Selling, General & Administrative Expenses | 6,773 | 5,657 | 5,512 |
Operating Income | 20,919 | 16,593 | 15,182 |
Total Assets | 60,000 | 55,788 | 55,675 |
Capital Expenditures | 2,407 | 2,155 | 1,457 |
Depreciation & Amortization | 1,752 | 1,836 | 1,790 |
Intersegment Sales | 2,408 | 1,732 | 2,475 |
Engineered Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Net External Sales | 178,414 | 169,757 | 161,249 |
Gross Margin | 59,526 | 54,931 | 46,457 |
Selling, General & Administrative Expenses | 21,071 | 19,065 | 19,631 |
Operating Income | 25,081 | 30,877 | 26,970 |
Total Assets | 465,479 | 474,339 | 454,428 |
Capital Expenditures | 7,209 | 4,591 | 5,693 |
Depreciation & Amortization | 10,777 | 10,443 | 9,411 |
Intersegment Sales | 31,857 | 28,955 | 30,341 |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Selling, General & Administrative Expenses | 52,982 | 48,499 | 46,612 |
Operating Income | (52,892) | (48,661) | (52,870) |
Total Assets | 59,012 | 60,325 | (326,542) |
Capital Expenditures | 2,647 | 741 | 3,491 |
Depreciation & Amortization | 2,426 | 1,820 | 1,453 |
Foreign Tax Authority [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 135,801 | 125,164 | |
Geographic External Sales | 82,131 | 74,614 | 75,067 |
Geographic Long-Lived Assets | 41,797 | 39,236 | 39,206 |
Domestic Tax Authority [Member] | |||
Segment Reporting Information [Line Items] | |||
Geographic External Sales | 592,818 | 540,774 | 522,405 |
Geographic Long-Lived Assets | $ 150,716 | $ 144,389 | $ 145,538 |