Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 27, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | ALTRA INDUSTRIAL MOTION CORP. | ||
Entity Central Index Key | 0001374535 | ||
Trading Symbol | AIMC | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.7 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity File Number | 001-33209 | ||
Entity Tax Identification Number | 61-1478870 | ||
Entity Address, Address Line One | 300 Granite Street | ||
Entity Address, Address Line Two | Suite 201 | ||
Entity Address, City or Town | Braintree | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02184 | ||
City Area Code | 781 | ||
Local Phone Number | 917-0600 | ||
Entity Common Stock, Shares Outstanding (in shares) | 65,357,328 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: Portions of the following document are incorporated herein by reference into the Part of the Form 10-K indicated. | ||
Auditor Firm Id | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 208.9 | $ 246.1 |
Trade receivables, less allowance for credit losses of $4.5 and $4.1 million at December 31, 2022 and 2021, respectively | 244.6 | 224.5 |
Inventories | 338.9 | 267.8 |
Income tax receivable | 8.9 | 11.7 |
Assets held for sale | 377.3 | |
Prepaid expenses and other current assets | 35.1 | 40.4 |
Total current assets | 836.4 | 1,167.8 |
Property, plant and equipment, net | 275.1 | 275.8 |
Intangible assets, net | 970.4 | 1,057.2 |
Goodwill | 1,524.5 | 1,564 |
Deferred income taxes | 7.5 | 2.3 |
Other non-current assets | 21.3 | 13.5 |
Operating lease right of use assets | 41.4 | 50 |
Total assets | 3,676.6 | 4,130.6 |
Current liabilities: | ||
Accounts payable | 165.8 | 173.3 |
Accrued payroll | 67.9 | 81.8 |
Accruals and other current liabilities | 88.4 | 77 |
Income tax payable | 22.4 | 6 |
Current portion of long-term debt | 20.4 | 11.1 |
Liabilities held for sale | 53 | |
Operating lease liabilities | 12.4 | 14.3 |
Total current liabilities | 377.3 | 416.5 |
Long-term debt, net of current portion | 1,024.1 | 1,401 |
Deferred income taxes | 216.8 | 250.5 |
Pension liabilities | 17.3 | 29.9 |
Long-term taxes payable | 1.8 | 2.7 |
Other long-term liabilities | 6.3 | 7.3 |
Operating lease liabilities, net of current portion | 30.6 | 37.6 |
Stockholders’ equity: | ||
Common stock ($0.001 par value, 120,000,000 shares authorized, 65,279,961 and 64,923,539 shares issued and outstanding at December 31, 2022 and 2021, respectively) | 0.1 | 0.1 |
Additional paid-in capital | 1,727.6 | 1,718.4 |
Retained earnings | 381.7 | 277.6 |
Accumulated other comprehensive loss | (107) | (11) |
Total stockholders’ equity | 2,002.4 | 1,985.1 |
Total liabilities and stockholders’ equity | $ 3,676.6 | $ 4,130.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 4.5 | $ 4.1 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 65,279,961 | 64,923,539 |
Common stock, shares outstanding (in shares) | 65,279,961 | 64,923,539 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 1,945.5 | $ 1,899.8 | $ 1,726 |
Cost of sales | 1,252.6 | 1,224.4 | 1,103.6 |
Gross profit | 692.9 | 675.4 | 622.4 |
Operating expenses: | |||
Selling, general and administrative expenses | 370 | 368.7 | 332.2 |
Impairment charges | 13.2 | 142.4 | 147.5 |
Research and development expenses | 64.1 | 63.9 | 57.8 |
Restructuring costs | 5.2 | 3 | 7.4 |
Total operating expenses | 452.5 | 578 | 544.9 |
Income from operations | 240.4 | 97.4 | 77.5 |
Other non-operating income and expense: | |||
Interest expense, net | 51.5 | 94.5 | 72.1 |
Other non-operating (income)/expense, net | (0.4) | (4.9) | 1.4 |
Total other non-operating (income) expense, net | 51.1 | 89.6 | 73.5 |
Income before income taxes | 189.3 | 7.8 | 4 |
(Benefit)/Provision for income taxes | 62.3 | (19.9) | 29.5 |
Net income/(loss) | $ 127 | $ 27.7 | $ (25.5) |
Weighted average shares, basic | 65.1 | 64.8 | 64.6 |
Weighted average shares, diluted | 65.4 | 65.4 | 64.6 |
Net income/(loss) per share: | |||
Basic | $ 1.95 | $ 0.43 | $ (0.39) |
Diluted | 1.94 | 0.42 | (0.39) |
Cash dividend declared per share | $ 0.35 | $ 0.30 | $ 0.31 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | $ 127 | $ 27.7 | $ (25.5) |
Other comprehensive income: | |||
Change in fair value of interest rate swap, net of tax | (11.9) | ||
Reclassification of interest rate swap, net of tax | 21.5 | 6.9 | |
Pension & other post retirement benefit obligation adjustment, net of tax | 7.4 | 3.3 | (2.6) |
Reclassification adjustment of pension plan, net of tax | 0.1 | 0.6 | 0.4 |
Change in fair value of net investment hedge, net of tax | 31.2 | ||
Foreign currency translation adjustment | (103.5) | (57.5) | 87 |
Total other comprehensive (loss)/income: | (96) | (32.1) | 111 |
Total comprehensive (loss)/income | $ 31 | $ (4.4) | $ 85.5 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2019 | $ 1,922.3 | $ 0.1 | $ 1,696.7 | $ 315.4 | $ (89.9) |
Beginning balance (in shares) at Dec. 31, 2019 | 64.2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock | 9.3 | 9.3 | |||
Stock-based compensation and vesting of restricted stock (in shares) | 0.5 | ||||
Net income/(loss) | (25.5) | (25.5) | |||
Dividends declared | (20.4) | (20.4) | |||
Total comprehensive loss, net of tax | 111 | 111 | |||
Ending balance at Dec. 31, 2020 | 1,996.7 | $ 0.1 | 1,706 | 269.5 | 21.1 |
Ending balance (in shares) at Dec. 31, 2020 | 64.7 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock | 10.2 | 10.2 | |||
Stock-based compensation and vesting of restricted stock (in shares) | 0.1 | ||||
Issuance of common stock upon exercise of options | 2.2 | 2.2 | |||
Issuance of common stock upon exercise of options (in shares) | 0.1 | ||||
Net income/(loss) | 27.7 | 27.7 | |||
Dividends declared | (19.6) | (19.6) | |||
Total comprehensive loss, net of tax | (32.1) | (32.1) | |||
Ending balance at Dec. 31, 2021 | 1,985.1 | $ 0.1 | 1,718.4 | 277.6 | (11) |
Ending balance (in shares) at Dec. 31, 2021 | 64.9 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation and vesting of restricted stock | 9.2 | 9.2 | |||
Stock-based compensation and vesting of restricted stock (in shares) | 0.4 | ||||
Net income/(loss) | 127 | 127 | |||
Dividends declared | (22.9) | (22.9) | |||
Total comprehensive loss, net of tax | (96) | (96) | |||
Ending balance at Dec. 31, 2022 | $ 2,002.4 | $ 0.1 | $ 1,727.6 | $ 381.7 | $ (107) |
Ending balance (in shares) at Dec. 31, 2022 | 65.3 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash dividend declared | $ 0.35 | $ 0.30 | $ 0.31 |
Retained Earnings [Member] | |||
Cash dividend declared | $ 0.35 | $ 0.30 | $ 0.31 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income/(loss) | $ 127 | $ 27.7 | $ (25.5) |
Adjustments to reconcile net income/(loss) to net cash flows: | |||
Depreciation | 39 | 51.9 | 57.8 |
Amortization of intangible assets | 55.2 | 70.4 | 69.8 |
Amortization of deferred financing costs | 1 | 4 | 4.6 |
Loss on foreign currency, net | 1.8 | 1.5 | 1.2 |
Accretion of debt discount | 0.2 | 0.4 | 0.5 |
Non-cash amortization of interest rate swap expense | 25.7 | 9 | |
Impairment charges | 13.2 | 142.4 | 147.5 |
Payment for interest rate swap settlement | (34.7) | ||
Unrealized gain on investment in MTEK Industry AB | (0.7) | ||
Loss (gain) on disposals and other | 0.3 | (0.3) | 0.7 |
Loss on extinguishment of debt | 15.4 | ||
Loss on debt redemption | 0.1 | ||
Benefit for deferred taxes | (32.1) | (82.1) | (28.3) |
Stock based compensation | 15.3 | 15.7 | 13.2 |
Amortization of inventory fair value adjustment | 2.4 | ||
Changes in assets and liabilities, net of assets acquired: | |||
Trade receivables | (37.6) | 4.4 | 10.6 |
Inventories | (79) | (67.4) | 19 |
Accounts payable and accrued liabilities | 6 | 37 | 18.8 |
Other current assets and liabilities | 19.5 | (22.4) | (4.5) |
Other operating assets and liabilities | (6.6) | (7.3) | 2.8 |
Net cash provided by operating activities | 125 | 217 | 262.5 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (55.9) | (40.6) | (33.7) |
Proceeds from sale of property | 2.2 | ||
Proceeds from sale of JVS business | 321.7 | ||
Proceeds from cross currency interest rate swap settlement | 56.2 | ||
Investment in MTEK Industry AB | (4.6) | (5) | |
Acquisition of Nook Industries, net of cash acquired | (8.1) | (125.2) | |
Net cash provided by (used in) investing activities | 253.1 | (163.6) | 15.6 |
Cash flows from financing activities | |||
Payments of debt issuance costs | (3.7) | ||
Payments on Term Loan Facility | (10) | ||
Payments on Revolving Credit Facility | (355) | (5) | (100) |
Borrowing under Term Loan A Facility | 400 | ||
Borrowing under Revolving Credit Facility | 15 | 610 | 100 |
Repurchase of Note | (16.4) | ||
Dividend payments | (22.3) | (18.3) | (27.8) |
Payments of equipment, working capital notes, mortgages and other debt | (1.1) | (5.9) | (1.5) |
Proceeds from equipment, working capital notes, mortgages and other debt | 0.2 | 3.7 | |
Shares surrendered for tax withholding | (6.1) | (5.5) | (3.9) |
Proceeds from issuance of common stock upon exercise of options | 2.2 | ||
Net cash used in financing activities | (395.7) | (52.5) | (193.2) |
Effect of exchange rate changes on cash and cash equivalents | (19.6) | (9.2) | 2.2 |
Net change in cash and cash equivalents | (37.2) | (8.3) | 87.1 |
Cash and cash equivalents at beginning of year | 246.1 | 254.4 | 167.3 |
Cash and cash equivalents at end of year | 208.9 | 246.1 | 254.4 |
Cash paid during the year for: | |||
Interest paid on borrowings | 50.4 | 49.3 | 58.1 |
Income taxes paid | 85.1 | 82.3 | 61.7 |
Non-cash Financing and Investing: | |||
Nook Industries purchase price holdback | 8.2 | ||
Acquisition of property, plant and equipment included in accounts payable | $ 2.7 | 6.8 | 4.3 |
A & S Business [Member] | |||
Cash flows from investing activities | |||
Business acquisition purchase price adjustment | (1.9) | ||
Term Loan B | |||
Cash flows from financing activities | |||
Payments on Term Loan Facility | $ (1,030) | $ (160) |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies Basis of Preparation and Description of Business Headquartered in Braintree, Massachusetts, Altra Industrial Motion Corp. (the “Company”) is a leading global designer, producer and marketer of a wide range of electro-mechanical power transmission motion control (“PTMC”) products. The Company brings together strong brands with production facilities in 17 countries. Altra’s leading brands currently include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Kollmorgen, Lamiflex Couplings, Marland Clutch, Matrix, Nook Industries, Nuttall Gear, Stieber Clutch, Stromag, Svendborg Brakes, Portescap, TB Wood’s, Thomson, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch. On October 26, 2022, we entered into an Agreement and Plan of Merger (the “Regal Rexnord Merger Agreement”) with Regal Rexnord Corporation, a Wisconsin corporation (“Regal Rexnord”), and Aspen Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Regal Rexnord (“Merger Sub”), pursuant to which, and upon the terms and subject to the conditions described therein, Merger Sub will merge with and into the Company, with the Company surviving the merger as a wholly owned subsidiary of Regal Rexnord (the “Regal Rexnord Merger”). Under the Regal Rexnord Merger Agreement, at the closing of the Regal Rexnord Merger, each issued and outstanding share of our common stock (other than (i) shares owned by the Company, any subsidiary of the Company, Regal Rexnord, Merger Sub or any other subsidiary of Regal Rexnord, (ii) shares owned by stockholders of the Company who have validly exercised their statutory rights of appraisal under the General Corporation Law of the State of Delaware (“DGCL”) and (iii) Company Restricted Shares (as defined in the Regal Rexnord Merger Agreement) will be converted into the right to receive $ 62.00 in cash, without interest and subject to any required withholding of taxes. As announced in our Current Report on Form 8-K filed with the SEC on January 18, 2023, the Regal Rexnord Merger was approved by our shareholders. The consummation of the Regal Rexnord Merger is subject to customary closing conditions and is expected to occur in the first half of 2023 and potentially in the first quarter of 2023. If the Regal Rexnord Merger Agreement is terminated under specified circumstances, we will be required to pay Regal Rexnord a termination fee of $ 100 million. The Regal Rexnord Merger Agreement also provides that, in connection with the termination of the Regal Rexnord Merger Agreement under specified antitrust or foreign direct investment related circumstances, Regal Rexnord will be required to pay us a “reverse termination fee” of $ 200 million. During the twelve months ended December 31, 2022, the Company incurred approximately $ 9.9 million of costs in connection with the proposed merger. These costs related primarily to investment banking and legal fees and are included in transaction-related costs in the consolidated condensed statement of operations. The Company has not recognized any transaction-related costs that are contingent upon the consummation of the proposed merger, including contingent investment banking fees, legal costs, management retention bonuses, acceleration of stock compensation costs, and other costs. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Net Income/(Loss) Per Share Basic earnings per share is based on the weighted average number of shares of common stock outstanding and diluted earnings per share is based on the weighted average number of shares of common stock outstanding and all potentially dilutive common stock equivalents outstanding. Common stock equivalent shares are included in the per share calculations when the effect of their inclusion is dilutive. The following is a reconciliation of basic to diluted shares outstanding: Years Ended December 31, 2022 2021 2020 Shares used in net income per common share - basic 65.1 64.8 64.6 Effect of dilutive shares 0.3 0.6 — Shares used in net income per common share - diluted 65.4 65.4 64.6 Shares excluded as their inclusion would be anti-dilutive — — 0.2 Fair Value of Financial Instruments Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1- Quoted prices in active markets for identical assets or liabilities. • Level 2- Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived. • Level 3- Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents and are classified as Level 1. The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities are carried at cost, which approximates fair value, and are classified as Level 1. Debt under the Altra Credit Agreement (as defined herein) is classified as Level 2 and is comprised of the Term Loan Facility and the Revolving Credit Facility (both as defined herein). The carrying amount of the Term Loan Facility of $ 390.0 million and the Revolving Credit Facility of $ 265.0 million approximates fair value due to the fact that the interest rate on the debt is based on variable interest rates. The carrying amount of the Notes (as defined herein) was $ 383.7 million and the estimated fair value of the Notes was $ 384.7 million at December 31, 2022. The Notes are classified as Level 2. The Company determines the fair value of financial instruments using quoted market prices whenever available and classifies these investments as Level 1. When quoted market prices are not available for various types of financial instruments (such as derivative instruments), the Company uses standard models with market-based inputs, which take into account the present value of estimated future cash flows and the ability of the Company or the financial counterparty to perform. These investments are classified as Level 2. For cross-currency interest rate swaps and interest rate swaps, the significant inputs to these models are interest rate curves for discounting future cash flows and are adjusted for credit risk. See additional discussion of the Company’s use of financial instruments including cross-currency interest rate swaps and interest rate swaps included in Note 15. During 2022, the company recorded an impairment of $ 3.0 million related to a building expected to be sold upon the closing of its facility in Dessau, Germany. The Company estimated the fair value of the building based on appraisals and sales prices of like properties (Level 2). The net book value of the building is classified as an asset held for sale as part of “Prepaid expenses and Other current assets” in the consolidated balance sheet, as the Company expects it to be sold within the next twelve months. In December 2020 and May 2022, the Company invested approximately $ 5.0 million and $ 4.6 million, respectively, for a minority equity interest in a privately held manufacturing software company, MTEK Industry AB (“MTEK”), over which the Company does not exert significant influence. The equity investments do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value using the net asset value per share. Therefore, in accordance with ASU 2016-01, the Company elected to measure the investments at their cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or a similar investment of the same issuer. These investments are considered Level 3 assets based on the lack of observable inputs and are classified within other non-current assets in the consolidated balance sheets. The Company monitors its equity investment in MTEK for indicators of impairment or upward adjustments on an ongoing basis. If the Company determines that such an indicator is present, an adjustment will be recorded, which will be measured as the difference between the carrying value and estimated fair value. During the quarter ended June 30, 2022, the Company reassessed the value of its December 2020 investment and recognized a $ 0.7 million unrealized holding gain as a result of an observable price change from the additional investment made in May 2022. As of December 31, 2022, there were no other indicators that support an adjustment to MTEK’s carrying value. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the financial statements. Actual results could differ from those estimates. Foreign Currency Translation Assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. Dollar are translated into U.S. Dollars using exchange rates at the end of the respective period. Revenues and expenses are translated at average exchange rates effective during the respective period. Foreign currency translation adjustments are included in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Net foreign currency transaction gains and losses are included in the results of operations in the period incurred and included in other non-operating expense (income), net in the accompanying consolidated statements of operations. Net foreign currency transaction gains and losses for the years ended December 31, 2022, 2021 and 2020 were inconsequential. Trade Receivables All trade account receivables are reported net of allowances for credit losses. The allowance for credit losses represents the Company’s best estimate of the credit losses expected from our trade account receivables over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. The Company regularly performs detailed reviews of its pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. Inventories Inventories are generally stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) method. The carrying value of inventories acquired by the Company in its acquisitions reflects fair value at the date of acquisition as determined by the Company based on the replacement cost of raw materials, the sales price of the finished goods less an appropriate amount representing the expected profitability from selling efforts, and for work-in-process the sales price of the finished goods less an appropriate amount representing the expected profitability from selling efforts and costs to complete. The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product or product line. The Company records a charge to cost of sales for any amounts required to reduce the carrying value of inventories to its estimated net realizable value. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation of property, plant and equipment, including finance leases, is provided using the straight-line method over the estimated useful life of the asset, as follows: Buildings and improvements 7 to 45 years Machinery and equipment 2 to 15 years Finance leases Life of lease Leasehold improvements are depreciated on a straight-line basis over the estimated life of the asset or the life of the lease, if shorter. Improvements and replacements are capitalized to the extent that they increase the useful economic life or increase the expected economic benefit of the underlying asset. Repairs and maintenance expenditures are charged to expense as incurred. Lease Accounting Policy Arrangements that are determined to be leases at inception are recognized in operating lease right of use (ROU) assets, current lease liabilities, and long-term lease liabilities in the consolidated balance sheet. Operating lease liabilities are recognized based on the present value of the future fixed lease payments over the lease term at lease commencement date. As the Company’s leases typically do not provide an implicit rate, the Company applies its incremental borrowing rate based on the economic environment at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease prepayments made and initial direct costs incurred and is reduced by lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases are recognized on a straight-line basis over the lease term. Intangible Assets Intangible assets represent product technology, patents, tradenames, trademarks and customer relationships. Product technology, patents and customer relationships are amortized on a straight-line basis over 4 to 29 years , which approximates the period of economic benefit. Trademarks and the majority of our trade names are considered indefinite-lived assets and are not being amortized. Intangibles are stated at fair value on the date of acquisition. Intangibles are stated net of accumulated amortization. Goodwill Goodwill represents the excess of the purchase price paid by the Company over the fair value of the net assets acquired in each of the Company’s acquisitions. Impairment of Goodwill and Indefinite-Lived Intangible Assets The Company conducts an annual impairment review of goodwill and indefinite-lived intangible assets in October of each year, unless events occur which trigger the need for an interim impairment review. In connection with the Company’s annual impairment review, goodwill is assessed for impairment by comparing the fair value of the reporting unit to the carrying value. The Company’s measurement date is October 31st. The Company determines the fair value of its reporting units using a combination of the discounted cash flow model as well as a market-based approach relying on the Company’s market multiples. The determination of the fair value using the discounted cash flow model requires management to make significant estimates and assumptions related to forecasts of future revenues, profit margins, and discount rates. The determination of the fair value using the market approach requires management to make significant assumptions related to earnings before interest, taxes, depreciation, amortization (EBITDA) multiples and revenue multiples. The Company estimates future cash flows based upon historical results and current market projections, discounted at a market comparable rate. An impairment loss would be recognized to the extent that a reporting unit’s carrying amount exceeded its deemed fair value. Refer to Note 7 for additional discussion of the Company’s annual impairment review. For the Company's indefinite-lived intangible assets, mainly trademarks, the Company estimated the fair value first by estimating the total revenue attributable to the trademarks. Second, the Company estimated an appropriate royalty rate using the return on assets method by estimating the required financial return on our assets, excluding trademarks, less the overall return generated by our total asset base. The return as a percentage of revenue provides an indication of our royalty rate (between 1.0 % and 2.0 %). The Company compared the estimated fair value of our trademarks with the carrying value of the trademarks. Refer to Note 7 for additional discussion of the Company’s annual impairment review. Preparation of forecasts of revenue and profitability growth for use in the long-range plan and the discount rate require significant use of judgment. Changes to the discount rate and the forecasted cash flows could affect the estimated fair value of one or more of the Company’s reporting units and intangible assets and could result in an impairment charge in a future period. Impairment of Long-Lived Assets Other Than Goodwill and Indefinite-Lived Intangible Assets Long-lived assets, including definite-lived intangible assets are reviewed for impairment when events or circumstances indicate that the carrying amount of a long-lived asset may not be recovered. Long-lived assets are considered to be impaired if the carrying amount of the asset exceeds the undiscounted future cash flows expected to be generated by the asset over its remaining useful life. If an asset is considered to be impaired, the impairment is measured by the amount by which the carrying amount of the asset exceeds its fair value, and is charged to results of operations at that time. Held for Sale Assets and liabilities to be disposed of by sale (“disposal groups”) are reclassified into “held for sale” if their carrying amounts are principally expected to be recovered through a sale transaction rather than through continuing use. The reclassification occurs when the disposal group is available for immediate sale and the sale is probable. These criteria are generally met when an agreement to sell exists, or management has committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying amount or fair value less costs to sell and are not depreciated or amortized. When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was reclassified as held for sale. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group. Refer to Financial Note 3, “Acquisitions and Divestitures,” for more information. Revenue Recognition The Company recognizes revenue under the core principle of depicting the transfer of control to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Our sales revenue for product sales is recognized based on a point in time model, when control transfers to our customers, which is generally when products are shipped from our manufacturing facilities or when delivered to the customer’s named location. Certain large distribution customers receive annual volume discounts, which are estimated at the time the sale is recorded based on the estimated annual sales. Product return reserves are accrued at the time of sale based on the historical relationship between shipments and returns and are recorded as a reduction of net sales. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered as fulfillment activities and, accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. See Note 2 ( Revenue Recognition ) to the consolidated financial statements for further disclosures regarding revenue. Shipping and Handling Costs Shipping and handling costs associated with sales are classified as a component of cost of sales. Amounts collected from our customers for shipping and handling are recognized as revenue. Warranty Costs Estimated expenses related to product warranties are accrued at the time products are sold to customers. Estimates are established using historical information as to the nature, frequency, and average costs of warranty claims. Self-Insurance Certain exposures are self-insured up to pre-determined amounts, above which third-party insurance applies, including exposures for medical claims, workers’ compensation, vehicle insurance, product liability costs and general liability exposure. The accompanying balance sheets include reserves for the estimated costs associated with these self-insured risks, based on historic experience factors and management’s estimates for known and anticipated claims. A portion of medical insurance costs are offset by charging employees a premium equivalent to group insurance rates. The costs of retained loss for the self-insurance programs, at each balance sheet date, have not been material in any period. Research and Development Research and development costs are expensed as incurred. Advertising Advertising costs are charged to selling, general and administrative expenses as incurred and amounted to approximately $ 7.2 million, $ 6.0 million and $ 5.0 million, for the years ended December 31, 2022, 2021 and 2020 , respectively. Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company evaluates the realizability of its net deferred tax assets and assesses the need for a valuation allowance on a quarterly basis. The future benefit to be derived from its deferred tax assets is dependent upon the Company’s ability to generate sufficient future taxable income to realize the assets. The Company records a valuation allowance to reduce its net deferred tax assets to the amount that may be more likely than not to be realized. To the extent the Company establishes a valuation allowance on net deferred tax assets generated from operations, an expense will be recorded within the provision for income taxes. In periods subsequent to establishing a valuation allowance on net deferred assets from operations, if the Company were to determine that it would be able to realize its net deferred tax assets in excess of their net recorded amount, an adjustment to the valuation allowance would be recorded as a reduction to income tax expense in the period such determination was made. We assess our income tax positions and record tax benefits for all years subject to examination, based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions for which it is more likely than not that a tax benefit will be sustained, we record the amount that has a greater than 50% likelihood of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense in the consolidated statement of operations and included in accruals and other long-term liabilities in the Company’s consolidated balance sheet, when applicable. If we do not believe that it is more likely than not that a tax benefit will be sustained, no tax benefit is recognized. Changes in Accumulated Other Comprehensive Income (Loss) by Component The following is a reconciliation of changes in Accumulated Other Comprehensive Income (Loss) for the periods presented: Gains and Pension & Other Cumulative Total Accumulated other comprehensive income/(loss) by component, January 1, 2020 $ ( 16.5 ) $ ( 1.5 ) $ ( 71.9 ) $ ( 89.9 ) Change in fair value of interest rate swap, net of tax ( 11.9 ) — — ( 11.9 ) Reclassification of interest rate swap to income, net of tax 6.9 — — 6.9 Pension adjustments, net of tax — ( 2.6 ) — ( 2.6 ) Reclassification of pension adjustments, net of tax — 0.4 — 0.4 Foreign currency translation adjustments — — 87.0 87.0 Change in fair value of net investment hedge, net of tax — — 31.2 31.2 Net current-period other comprehensive income/(loss) ( 5.0 ) ( 2.2 ) 118.2 111.0 Accumulated other comprehensive income/(loss) by component, December 31, 2020 $ ( 21.5 ) $ ( 3.7 ) $ 46.3 $ 21.1 Reclassification of interest rate swap to income, net of tax 21.5 — — 21.5 Pension & other post retirement benefit obligation adjustment, net of tax — 3.3 — 3.3 Reclassification of pension adjustments, net of tax — 0.6 — 0.6 Foreign currency translation adjustments — — ( 57.5 ) ( 57.5 ) Net current-period other comprehensive income/(loss) 21.5 3.9 ( 57.5 ) ( 32.1 ) Accumulated other comprehensive income/(loss) by component, December 31, 2021 $ — $ 0.2 $ ( 11.2 ) $ ( 11.0 ) Pension & other post retirement benefit obligation adjustment, net of tax — 7.4 — 7.4 Reclassification of pension adjustments, net of tax — 0.1 — 0.1 Foreign currency translation adjustments — — ( 103.5 ) ( 103.5 ) Net current-period other comprehensive income/(loss) — 7.5 ( 103.5 ) ( 96.0 ) Accumulated other comprehensive income/(loss) by component, December 31, 2022 $ — $ 7.7 $ ( 114.7 ) $ ( 107.0 ) Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This ASU provides relief from certain accounting consequences that could result from the global markets’ anticipated transition away from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The relief provided by this ASU is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The optional amendments are effective as of March 12, 2020 through December 31, 2022. The Company evaluated the optional relief guidance provided within this ASU and concluded it will not have a material impact because the Company’s financial instruments potentially affected by this standard include language allowing for a rate other than LIBOR to be applied upon transition. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an entity generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendment. Early adoption is permitted, including adoption in an interim period. The Company does not expect adoption of this standard to have a significant impact on the consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition We sell our products through three primary commercial channels: original equipment manufacturers (OEMs), industrial distributors and direct to end users. Each of our segments sells similar products, which are balanced across end-user industries including, without limitation, energy, food processing, general industrial, material handling, mining, transportation, industrial automation, robotics, medical devices, and turf & garden. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under Accounting Standards Codification (“ASC”) 606-10-32-18 to not assess whether a contract has a significant financing component. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment from the Company’s manufacturing site or delivery to the customer’s named location. In determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. In certain circumstances, the Company manufactures customized product without alternative use for its customers, which would generally result in the transfer of control over time. The Company has evaluated the amount of revenue subject to recognition over time and concluded that it is immaterial. The following table disaggregates our revenue for each reportable segment. The Company believes that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Years Ended December 31, 2022 2021 2020 Net Sales: Power Transmission Technologies $ 985.6 $ 924.8 $ 818.6 Automation & Specialty 965.5 979.0 911.8 Inter-segment eliminations ( 5.6 ) ( 4.0 ) ( 4.4 ) Net sales $ 1,945.5 $ 1,899.8 $ 1,726.0 Net sales by geographic region based on point of shipment origin are as follows: Net Sales Years Ended December 31, 2022 2021 2020 North America (primarily U.S.) $ 1,124.2 $ 1,018.3 $ 914.9 Europe excluding Germany 344.8 341.9 289.3 Germany 209.5 200.0 185.8 China 148.0 222.9 222.5 Asia and other (excluding China) 119.0 116.7 113.5 Total $ 1,945.5 $ 1,899.8 $ 1,726.0 The payment terms and conditions in our customer contracts vary. In some cases, customers will partially prepay for their goods; in other cases, after appropriate credit evaluations, payment will be due in arrears. In addition, there are constraints that cause variability in the ultimate consideration to be recognized. These constraints typically include early payment discounts, volume rebates, rights of return, surcharges, and other customer consolidation. Payments received from customers are recorded as accounts receivable when an unconditional right to the consideration exists. A contract asset is recognized when the Company satisfies a performance obligation by transferring a promised good to the customer before consideration is due. A contract liability is recognized when consideration is received from a customer prior to the Company satisfying the related performance obligation. Contract assets and contract liabilities are recognized in other current assets and other current liabilities, respectively, in the Company’s consolidated balance sheets. The Company had inconsequential contract assets for the year to date periods ended December 31, 2022 and December 31, 2021, respectively. The opening and closing balances of the Company’s current contract liabilities as of the year to date periods ended December 31, 2022 and December 31, 2021 are as follows: Years Ended December 31, 2022 2021 Beginning balance $ 13.5 $ 10.3 Closing balance 16.9 13.5 Increase $ 3.4 $ 3.2 In the twelve-month period ended December 31, 2022 and December 31, 2021, respectively, all outstanding revenue has been recognized related to our contract liabilities at the beginning of the related period. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures Nook Industries Acquisition On December 31, 2021 , the Company acquired all of the issued and outstanding equity interests of Nook Industries, LLC (“Nook” or “Nook Industries”), a leader in the U.S. engineered linear motion industry. The acquisition expands the Company’s current portfolio of linear product offerings. The acquisition was accounted for as a business combination using the acquisition method of accounting and the results have been integrated into the Company's Automation & Specialty (“A&S”) segment. The aggregate purchase price of approximately $ 138.1 million consisted of $ 124.8 million of cash transferred, net of $ 5.1 million of cash acquired, and a noncontingent purchase price holdback of $ 8.2 million. The purchase price holdback was recorded in accruals and other current liabilities at December 31, 2021 and was paid in January 2022. The Company borrowed $ 130.0 million under its Revolving Credit Facility in December 2021 to finance the transaction. As of December 31, 2022, the Company’s acquisition accounting is complete and the allocation of price and the calculation of fair value of all the acquired identifiable assets and liabilities for the Nook Acquisition is final. The measurement period adjustments which reflected new information obtained about facts and circumstances that existed as of the acquisition date reduced goodwill by $ 0.1 million and related to changes in working capital, inventory, property, plant and equipment and accrued expenses. The purchase price allocation below includes such adjustments: At Acquisition Date (As Adjusted) Total cash consideration $ 129.9 Purchase price holdback 8.2 Fair value of consideration transferred 138.1 Recognized identifiable assets acquired and liabilities Cash and cash equivalents 5.1 Receivables 3.7 Inventory 10.5 Prepaids and other current assets 0.4 Property, plant and equipment 12.6 Deferred tax asset 0.9 Other non-current assets 5.0 Intangibles 55.1 Accounts payable ( 2.9 ) Accrued payroll ( 0.7 ) Accrued expenses and other current liabilities ( 2.5 ) Other long term liability ( 4.6 ) Total identifiable net assets acquired 82.6 Goodwill $ 55.5 The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill, which is deductible for income tax purposes in the United States. The goodwill in this acquisition is attributable to the Company’s expectation to achieve synergies, such as the ability to cross-sell products, and the ability to optimize the cost structure. Intangible assets acquired consist of: Customer relationships $ 54.0 Trade name 1.1 Total intangible assets $ 55.1 Customer relationships and trade name are subject to amortization, and will be recognized on a straight-line basis over the estimated useful lives of 18 years and 4 years , respectively, which represents the anticipated period over which the Company estimates it will benefit from the acquired assets. The following table sets forth the unaudited pro forma results of operations of the Company for the years ended December 31, 2021 and December 31, 2020 as if the Company had acquired Nook on January 1, 2020. The pro forma information contains the actual operating results of the Company and the Nook business, adjusted to include the pro forma impact of (i) additional depreciation expense as a result of estimated depreciation based on the fair value of fixed assets; (ii) additional expense as a result of the estimated amortization of identifiable intangible assets; (iii) additional interest expense associated with the borrowings used to finance the acquisition and (iv) inventory fair value adjustment. These pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the period or that may be obtained in the future. Pro forma (unaudited) Years Ended December 31, 2021 2020 Total revenues $ 1,940.6 $ 1,764.1 Net income (loss) 31.0 ( 30.0 ) Basic earnings per share $ 0.48 $ ( 0.46 ) Diluted earnings per share $ 0.47 $ ( 0.46 ) Jacobs Vehicle Systems (“JVS”) Divestiture In the fourth quarter of 2021, the Company committed to a plan to sell our JVS business within our A&S reporting segment in an effort to exit the heavy-duty trucks industry. On February 8, 2022, the Company entered into a purchase and sale agreement with Cummins Inc. (the “Buyer”) for $ 325.0 million in cash subject to customary adjustments, and on April 8, 2022, the Company completed the sale. Transaction costs related to the divestiture totaled approximately $ 8.6 million. The Company received net cash consideration of approximately $ 321.7 million, inclusive of customary purchase price adjustments. The Company determined the criteria to be classified as held for sale were met and the assets and liabilities were presented as held for sale in the Consolidated Balance Sheets and measured at the lower of carrying value or fair value less cost to sell from December 31, 2021 until the transaction was completed on April 8, 2022. The Company determined that the disposal group classified as held for sale did not meet the criteria for classification as discontinued operations as the disposal was not considered a strategic shift that had a major effect on the Company’s operations and financial results. The JVS business was not a significant disposal based on the Company’s quantitative and qualitative evaluation. Before measuring the fair value less costs to sell of the disposal group as a whole, the Company first reviewed individual assets and liabilities to determine if any fair value adjustments were required and concluded no individual asset impairments were required. Then, based on the purchase and sale agreement entered into by the Company and the Buyer, the Company determined the fair value of the disposal group to be equal to the selling price, less costs to sell. Based on this review, the Company recorded a non-cash goodwill impairment charge of $ 60.0 million reflected in the fourth quarter of 2021 as the sale was considered to be a triggering event to evaluate goodwill impairment for the JVS reporting unit. Additionally, the Company recorded an asset held for sale impairment charge of $ 82.4 million, for a total impairment charge of $ 142.4 million in 2021. The Company recorded additional asset held for sale impairment charges of $ 10.2 million during the year ended December 31, 2022. The assets and liabilities of the JVS business classified as held for sale at December 31, 2021 were as follows: December 31, 2021 Assets Current Assets Trade receivables $ 11.3 Inventories 16.3 Prepaid expenses and other current assets 2.3 Property, plant and equipment, net 64.6 Goodwill — Intangible assets, net 364.5 Other assets 0.7 Impairment on carrying value (1) ( 82.4 ) Total assets held for sale $ 377.3 Liabilities Current Liabilities Accounts payable $ 20.8 Other current liabilities 9.8 Deferred tax liabilities 22.3 Other liabilities 0.1 Total liabilities held for sale $ 53.0 (1) Includes the effect of approximately $ 10.8 million of favorable cumulative foreign currency translation adjustment and accumulated other post retirement benefit obligation gains. |
Lease Accounting
Lease Accounting | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Accounting | 4. Lease Accounting We lease property and equipment under finance and operating leases. At December 31, 2022, the Company’s right-of-use (“ROU”) assets and lease liabilities for operating and finance leases totaled approximately $ 46.0 and $ 43.3 million, respectively. At December 31, 2021, the Company’s ROU assets and lease liabilities for operating and finance leases totaled approximately $ 50.1 and $ 52.0 million, respectively. Finance lease ROU assets are included in Property, Plant and Equipment, net and finance lease liabilities are included in current and non-current Long-Term Debt on the Company’s consolidated balance sheets. Quantitative information regarding the Company’s leases is as follows: Years Ended December 31, 2022 2021 Lease cost (1) : Operating lease cost 13.9 16.1 Short-term lease cost 0.3 0.4 Total lease cost $ 14.2 $ 16.5 (1) Finance lease costs and variable lease costs are immaterial to the Company. The Company does no t have lease or sub-lease income. Maturities of Lease Liabilities Operating Finance 2023 $ 13.7 $ 0.0 2024 9.9 0.0 2025 7.2 0.0 2026 5.0 0.0 2027 2.7 0.0 After 2027 9.2 — Total lease payments 47.7 0.3 Less interest ( 4.7 ) — Present value of lease liabilities $ 43.0 $ 0.3 Years Ended December 31, 2022 2021 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16.3 $ 16.4 Investing cash flows from finance leases $ 2.0 $ — Weighted average remaining lease term - finance leases (in years) 4.92 1.29 Weighted average remaining lease term - operating leases (in years) 5.15 5.03 Average discount rate - finance leases 4.83 % 5.07 % Average discount rate - operating leases 3.64 % 3.52 % |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories consisted of the following: Years Ended December 31, 2022 2021 Raw materials $ 172.1 $ 124.1 Work in process 31.1 26.7 Finished goods 135.7 117.0 $ 338.9 $ 267.8 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment Property, plant and equipment consisted of the following: Years Ended December 31, 2022 2021 Land $ 40.3 $ 40.6 Buildings and improvements 135.2 141.3 Machinery and equipment 444.3 419.4 619.8 601.3 Less-Accumulated depreciation ( 344.7 ) ( 325.5 ) $ 275.1 $ 275.8 The Company recorded $ 39.0 million, $ 51.9 million and $ 57.8 million of depreciation expense in the years ended December 31, 2022, 2021, and 2020 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets In connection with the Company’s annual impairment review as of October 31st, goodwill and intangible assets are assessed for impairment by comparing the fair value of the reporting unit to the carrying value. During 2022, the Portescap reporting unit experienced lower than anticipated financial results and its fair value exceeded its carrying value by less than 10 % as of the annual impairment review for both goodwill and tradename intangible assets. Additionally, the Stromag reporting unit's tradename intangible asset fair value exceeded its carrying value by less than 10 %. The goodwill balance at the Portescap reporting unit was $ 162.0 million, out of a total goodwill balance of $ 1.5 billion as of December 31, 2022. The carrying values of the tradename intangible assets at the Portescap and Stromag reporting units were $ 28.0 million and $ 19.1 million, respectively, out of a total net intangible asset balance of $ 970.4 million as of December 31, 2022. All other reporting units have fair values that exceed their carrying value by 10 % or more. During the first quarter of 2020, the Company considered the economic impact of the COVID-19 pandemic to be a triggering event for the JVS reporting unit and, as a result, the Company performed an interim impairment review. As a result of both the COVID-19 related economic downturn and its impact on JVS’s anticipated financial results, the Company concluded that it was more likely than not that the JVS reporting unit’s carrying value exceeded its fair value and performed an interim impairment review for both JVS’s goodwill and tradename intangible asset. As a result of the interim impairment testing performed, the Company recorded non-cash impairment charges of $ 8.4 million and $ 139.1 million for indefinite-lived intangible assets and goodwill, respectively, at March 31, 2020. The changes in the carrying value of goodwill by segment for the years ended December 31, 2022 and 2021 are as follows: Power Automation & Total Goodwill $ 452.4 $ 1,314.5 $ 1,766.9 Accumulated impairment loss ( 31.8 ) ( 139.1 ) ( 170.9 ) Balance January 1, 2021 $ 420.6 $ 1,175.4 $ 1,596.0 Impact of changes in foreign currency and other ( 9.6 ) ( 18.0 ) ( 27.6 ) Acquired goodwill related to the acquisition of Nook Industries — 55.6 55.6 Other (1) — ( 60.0 ) ( 60.0 ) Balance December 31, 2021 411.0 1,153.0 1,564.0 Impact of changes in foreign currency and other ( 7.2 ) ( 32.2 ) ( 39.4 ) Measurement period adjustments related to the acquisition of Nook Industries — ( 0.1 ) ( 0.1 ) Balance December 31, 2022 $ 403.8 $ 1,120.7 $ 1,524.5 (1) Reflects the goodwill of the JVS reporting unit, which is the disposal group classified as held for sale in 2021. Refer to Note 3 for further information. The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: December 31, 2022 December 31, 2021 Cost Accumulated Net Cost Accumulated Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks (1) $ 204.3 $ 0.3 $ 204.0 $ 212.2 $ — $ 212.2 Intangible assets subject to amortization: Customer relationships 928.2 240.3 687.9 960.2 206.4 753.8 Product technology and patents 142.4 63.9 78.5 141.4 50.2 91.2 Total intangible assets $ 1,274.9 $ 304.5 $ 970.4 $ 1,313.8 $ 256.6 $ 1,057.2 (1) While the majority of the Company's tradenames are considered indefinite lived intangible assets, tradenames acquired through the acquisition of Nook are subject to amortization. The net book value of Nook’s tradename was approximately $ 0.8 million as of December 31, 2022. Changes in our gross intangible assets from December 31, 2021 to December 31, 2022 were primarily the result of foreign currency translation effects. The Company recorded $ 55.2 million, $ 70.4 million, and $ 69.8 million of amortization for the years ended December 31, 2022, 2021 and 2020, respectively. Customer relationships, product technology and patents are amortized over their useful lives ranging from 4 to 29 years . The weighted average estimated useful life of intangible assets subject to amortization is approximately 14 years. The estimated amortization expense for intangible assets is approximately $ 54.0 million in 2023 , $ 53.6 million in 2024, $ 53.0 million in 2025, $ 51.8 million in 2026, $ 51.8 million in 2027, and $ 503.0 million thereafter. |
Warranty Costs
Warranty Costs | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees [Abstract] | |
Warranty Costs | 8. Warranty Costs The contractual warranty period of the Company’s products generally ranges from three months to two years with certain warranties extending for longer periods. Estimated expenses related to product warranties are accrued at the time products are sold to customers and are recorded in accruals and other current liabilities on the consolidated balance sheet. Estimates are established using historical information as to the nature, frequency and average costs of warranty claims. Changes in the carrying amount of accrued product warranty costs for each of the years ended December 31, 2022, 2021 and 2020 are as follows: Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 8.3 $ 9.6 $ 10.0 Accrued current period warranty expense 3.3 3.7 3.5 Payments and adjustments ( 2.1 ) ( 5.0 ) ( 3.9 ) Balance at end of year $ 9.5 $ 8.3 $ 9.6 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Income (loss) before income taxes by domestic and foreign locations consists of the following: Years Ended December 31, 2022 2021 2020 Domestic $ 68.5 $ ( 143.8 ) $ ( 38.1 ) Foreign 120.8 151.6 42.1 Total $ 189.3 $ 7.8 $ 4.0 The components of the provision for income taxes consist of the following: Years Ended December 31, 2022 2021 2020 Current: Federal $ 45.8 $ 18.8 $ 14.5 State 6.7 3.8 2.2 Non-U.S. 41.9 39.6 41.1 94.4 62.2 57.8 Deferred: Federal ( 18.6 ) ( 70.8 ) ( 15.3 ) State ( 0.0 ) ( 6.1 ) ( 2.1 ) Non-U.S. ( 13.5 ) ( 5.2 ) ( 10.9 ) ( 32.1 ) ( 82.1 ) ( 28.3 ) Provision/(benefit) for income taxes $ 62.3 $ ( 19.9 ) $ 29.5 A reconciliation from tax at the U.S. federal statutory rate to the Company’s provision for income taxes is as follows: Years Ended December 31, 2022 2021 2020 Tax at U.S. federal income tax rate $ 39.7 $ 1.7 $ 0.9 State taxes, net of federal income tax effect 3.5 0.7 0.3 Other changes in tax rate 1.0 ( 0.2 ) ( 0.2 ) Outside basis difference 11.5 ( 11.5 ) — Foreign taxes 3.2 2.3 3.9 Global intangible low-taxed income 7.9 0.8 ( 2.1 ) Valuation allowance 0.1 0.5 0.5 Tax credits and incentives ( 3.1 ) ( 2.0 ) ( 2.5 ) Impairment charges ( 3.3 ) ( 14.5 ) 29.0 Other 1.8 2.3 ( 0.3 ) Provision/(benefit) for income taxes $ 62.3 $ ( 19.9 ) $ 29.5 The Company and its subsidiaries file a consolidated federal income tax return in the United States, as well as consolidated and separate income tax returns in various states. The Company and its subsidiaries also file consolidated and separate income tax returns in various non U.S. jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in all of these jurisdictions. With the exception of certain foreign jurisdictions, the Company is no longer subject to income tax examinations for the tax years prior to 2019. Additionally, the Company has indemnification agreements with the sellers of the Nook, A&S Business, Guardian, Svendborg, Lamiflex, Bauer, and Stromag entities that may provide for reimbursement to the Company for payments made in satisfaction of income tax liabilities relating to pre-acquisition periods. The Company does no t have any material unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense, if applicable. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows: Years Ended December 31, 2022 2021 Deferred tax assets: Post-retirement obligations $ 2.7 $ 5.7 Tax credits 1.1 1.8 Expenses not currently deductible 37.1 28.7 Net operating loss carryover 6.5 6.0 Debt and derivative instruments 1.4 8.6 Operating lease liabilities 9.9 12.1 Other 2.2 15.2 Total deferred tax assets 60.9 78.1 Valuation allowance for deferred tax assets ( 4.2 ) ( 4.3 ) Net deferred tax assets 56.7 73.8 Deferred tax liabilities: Property, plant and equipment 19.7 35.7 Intangible assets 217.8 256.6 Goodwill 11.2 9.9 Operating lease right of use asset 9.7 11.6 Other 7.6 8.2 Total deferred liabilities 266.0 322.0 Net deferred tax liabilities $ 209.3 $ 248.2 On December 31, 2022 the Company had state net operating loss (NOL) carry forwards of $ 13.7 million, which expire between 2025 and 2038 , and non U.S. NOL and capital loss carryforwards of $ 21.6 million, of which substantially all have an unlimited carryforward period. The NOL carryforwards available are subject to limitations on their annual usage. The Company also has federal and state tax credits of $ 1.5 million available to reduce future income taxes that expire between 2022 and 2036 . Valuation allowances are established for deferred tax assets when management believes it is more likely than not that the associated benefit may not be realized. The Company periodically reviews the adequacy of its valuation allowances and recognizes tax benefits only as reassessments indicate that it is more likely than not the benefits will be realized. Valuation allowances have been established due to the uncertainty of realizing the benefits of certain net operating losses, capital loss carryforwards, tax credits, and other tax attributes. The valuation allowances are primarily related to certain non-U.S. NOL carryforwards and capital loss carryforwards. As of December 31, 2022, the Company has approximately $ 62.8 million of undistributed earnings in its foreign subsidiaries. During the fourth quarter of 2022, the Company determined that approximately $ 28.6 million of these earnings are no longer considered permanently reinvested. The incremental tax cost to repatriate these earnings to the US is immaterial. The Company has not provided deferred taxes on approximately $ 34.2 million of undistributed earnings from non-U.S. subsidiaries as of December 31, 2022 which are indefinitely reinvested in operations. As a result of the multiple avenues to repatriate earnings to minimize the tax cost, and further given that a portion of these earnings are not liquid, it is not practical to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely. |
Pension and Other Employee Bene
Pension and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Employee Benefits | 10. Pension and Other Employee Benefits Defined Benefit (Pension) The Company sponsors various defined benefit (pension) plans for certain active employees. The following tables represent the reconciliation of the benefit obligation, fair value of plan assets and funded status of the respective defined benefit (pension) plans as of December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Change in benefit obligation: Obligation at beginning of year $ 43.2 $ 48.3 $ 42.2 Service cost 0.6 0.7 0.7 Interest cost 0.3 0.2 0.3 Contributions 0.2 0.2 0.2 Actuarial (gains) losses ( 9.6 ) ( 0.6 ) 2.4 Amendments — ( 0.7 ) 0.9 Foreign exchange effect ( 1.7 ) ( 2.7 ) 4.0 Benefits paid ( 2.0 ) ( 2.2 ) ( 2.4 ) Obligation at end of year $ 31.0 $ 43.2 $ 48.3 Change in plan assets: Fair value of plan assets, beginning of year $ 13.3 $ 12.9 $ 11.4 Actual return on plan assets 0.8 1.2 0.6 Contributions 0.4 0.5 0.6 Foreign exchange effect ( 0.1 ) ( 0.5 ) 1.1 Benefits paid ( 0.7 ) ( 0.8 ) ( 0.8 ) Fair value of plan assets, end of year $ 13.7 $ 13.3 $ 12.9 Unfunded status 17.3 29.9 35.4 Amounts recognized in the balance sheet consist of: Total non-current liabilities $ 17.3 $ 29.9 $ 35.4 For the pension plan presented above, the accumulated and projected benefit obligations exceed the fair value of plan assets. Certain, primarily unionized, employees are entitled to limited grandfathered postretirement benefits (medical, dental, and life insurance coverage). The accumulated benefit obligation for the post-retirement benefit plans, which are not funded, at December 31, 2022, 2021 and 2020 are $ 2.7 million, $ 4.2 million and $ 6.0 million respectively. The balances are included within other long-term liabilities on the consolidated balance sheet. The Company recorded an inconsequential amount of income for the years ended December 31, 2022, 2021 and 2020. The Company recorded a loss in Accumulated Other Comprehensive Income (Loss) during the year ended December 31, 2022 of $ 0.6 million ($ 0.4 million net of tax). The key economic assumptions used in the computation of the respective benefit obligations at December 31, 2022, 2021 and 2020, presented below are as follows: Non-US Pension Benefits 2022 2021 2020 Discount rate 3.24 % 0.67 % 0.61 % Rate of compensation increase 1.28 % 2.02 % 2.10 % The following table represents the components of the net periodic benefit cost associated with the respective plans: Pension Benefits Non-US Plans Years Ended December 31, 2022 2021 2020 Service cost $ 0.6 $ 0.7 $ 0.7 Interest cost 0.3 0.2 0.3 Expected return on plan assets ( 0.4 ) ( 0.4 ) ( 0.5 ) Amortization of actuarial losses and prior year service costs 0.0 0.6 0.4 Net periodic benefit cost $ 0.5 $ 1.1 $ 0.9 The key economic assumptions used in the computation of the respective net periodic benefit cost for the periods presented above are as follows: Pension Benefits Non-US Plan Years Ended December 31, 2022 2021 2020 Discount rate 6.63 % 2.66 % 1.86 % Rate of compensation increase 2.13 % 2.60 % 2.63 % Expected return on plan assets 3.15 % 3.40 % 3.70 % The expected long-term rate of return represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the benefit obligation. The assumption reflects expectations regarding future rates of return for the investment portfolio, with consideration given to the distribution of investments by asset class and historical rates of return for each individual asset class. Amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2022, 2021 and 2020 consist of the following: Years Ended December 31, 2022 2021 2020 Unrecognized actuarial (loss) gain $ 6.0 $ ( 2.1 ) $ ( 4.2 ) Unrecognized prior service credit 0.8 1.0 0.5 Accumulated other comprehensive (loss) income (net of ($ 1.4 million), $ 0.8 million and $ 1.0 million of tax (loss)/benefit, respectively) $ 6.8 $ ( 1.1 ) $ ( 3.7 ) The unrecognized prior service cost included in accumulated other compressive income (loss) and expected to be recognized in net periodic pension cost during the year ending December 31, 2023 is $ 0.1 million (net of $ 0.0 million tax). The actuarial losses included in accumulated other comprehensive income (loss) and expected to be recognized in net periodic pension cost during the year ending December 31, 2023 is $ 0.1 million (net of $ 0.0 million of tax). Other changes recognized in other comprehensive income (loss) in the years ended December 31, 2022, 2021 and 2020 were as follows: Years Ended December 31, 2022 2021 2020 Incurred net actuarial (loss) gain $ 7.9 $ 1.3 $ ( 2.6 ) Amortization of prior service credit ( 0.1 ) — ( 0.1 ) Amortization of net actuarial (loss) gain 0.1 0.6 0.5 Settlement recognition of net actuarial (loss) — 0.7 — Total recognized in accumulated other comprehensive (loss) income (net of $( 2.2 million), ($ 0.6 million) and $ 0.5 million) of tax (loss)/benefit, respectively) $ 7.9 $ 2.6 $ ( 2.2 ) Fair Value of Plan Assets The fair value of the Company’s pension plan assets at December 31, 2022, 2021 and 2020 by asset category is as follows: Years Ended December 31, 2022 2021 2020 Asset Category: Cash and cash equivalents (Level 1) $ 0.7 $ 1.0 $ 0.8 Fixed income (Level 1) 3.2 3.8 3.8 Investment grade (Level 2) 4.5 4.3 4.4 Other private investments (Level 3) 5.3 4.2 3.9 Total assets at fair value $ 13.7 $ 13.3 $ 12.9 The investment strategy is to achieve a rate of return on the plan’s assets that meets the performance of liabilities as calculated using a bank’s liability index with appropriate adjustments for benefit payments, service cost and actuarial assumption changes. A determinant of the plan’s return is the asset allocation policy. The plan’s asset mix will be reviewed by the Company periodically, but at least quarterly, to rebalance within the target guidelines. The Company will also periodically review investment managers to determine if the respective manager has performed satisfactorily when compared to the defined objectives, similar invested portfolios and specific market indices. Expected cash flows The following table provides the amounts of expected benefit payments, which are made from the plans’ assets and includes the participants’ share of the costs, which is funded by participant contributions. The amounts in the table are actuarially determined and reflect the Company’s best estimate given its current knowledge; actual amounts could be materially different. Pension Expected benefit payments (from plan assets) 2023 $ 1.9 2024 2.5 2025 1.8 2026 1.7 2027 1.8 Thereafter 7.9 The Company has no minimum cash funding requirements associated with its pension plans for years 2 0 23 through 2027. Defined Contribution Plans Under the terms of the Company’s defined contribution plans, eligible employees may contribute up to 75 % percent of their eligible compensation to the plan on a pre-tax basis, subject to annual IRS limitations. The Company makes matching contributions equal to half of the first six percent of eligible compensation contributed by each employee and made a unilateral contribution (including for non-contributing employees). The Company’s expense associated with the defined contribution plans was $ 12.5 million, $ 11.8 million and $ 11.4 million during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 11. Long-Term Debt Years Ended December 31, 2022 2021 Debt: Term loan $ 390.0 $ 400.0 Revolver 265.0 605.0 Notes 383.7 400.0 Mortgages and other 7.2 9.2 Finance leases 0.3 0.1 Total gross debt 1,046.2 1,414.3 Less: debt discount and deferred financing costs ( 1.7 ) ( 2.2 ) Total debt, net of debt discount and deferred financing costs 1,044.5 1,412.1 Less current portion of long-term debt ( 20.4 ) ( 11.1 ) Total long-term debt $ 1,024.1 $ 1,401.0 2021 Credit Agreement On November 17, 2021, the Company entered into a new Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for a five-year term loan in an aggregate principal amount of $ 400.0 million (the “Term Loan Facility”) and a five-year revolving credit facility in an aggregate committed principal amount of $ 1.0 billion (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”). The Company immediately provided notice to the administrative agent of the Credit Agreement to draw down $ 480.0 million under the Revolving Credit Facility. The aggregate proceeds of $ 880.0 million under the Credit Facilities were used to repay in full and extinguish all outstanding indebtedness for borrowed money under the 2018 Credit Agreement. The remaining availability under the Revolving Credit Facility will be used for working capital and general corporate purposes. The Credit Facilities are guaranteed on a senior secured basis by certain direct and indirect domestic subsidiaries of the Company (each a “Guarantor” and collectively the “Guarantors”; the Guarantors collectively with the Borrowers, the “Loan Parties”). The stated maturity date of the Credit Facilities is November 17, 2026 , and there are scheduled quarterly principal payments due on the outstanding amount on the Term Loan Facility. The amounts available under the Revolving Credit Facility may be drawn upon in accordance with the terms of the Credit Agreement. All amounts outstanding under the Credit Facilities are due on the stated maturity or such earlier time, if any, required under the Credit Agreement. The amounts owed under either of the Credit Facilities may be prepaid at any time, subject to usual notification and breakage payment provisions. Interest on the amounts outstanding under the Credit Facilities is calculated using either a Base Rate or Eurocurrency Rate, plus the applicable margin. The applicable margins for Eurocurrency Loans are between 1.000 % to 1.750 %, and for Base Rate Loans are between 0.000 % and 0.750 %. The amounts of the margins are calculated based on the Total Leverage Ratio (as defined in the Credit Agreement). A portion of the Revolving Credit Facility may be used for the issuance of letters of credit, and a portion of the amount of the Revolving Credit Facility is available for borrowings in certain agreed upon foreign currencies. The interest rate on the Credit Facilities was 5.446 % at December 31, 2022. Revolving borrowings and issuances of letters of credit under the Revolving Credit Facility are subject to the satisfaction of customary conditions, including the accuracy of representations and warranties and the absence of defaults. The Credit Agreement contains usual and customary representations and warranties, usual and customary affirmative and negative covenants and restrictions, which among other things, will require the Borrowers to provide certain financial reports to the Lenders, require the Company to maintain certain financial covenants relating to consolidated leverage and interest coverage, and limit the ability of the Company and its subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other equity distributions, purchase or redeem capital stock or debt, make certain investments, sell assets, engage in certain transactions, and effect a consolidation or merger. The obligations of the borrowers of the Credit Facilities under the Credit Agreement may be accelerated upon customary events of default, including non-payment of principal, interest, fees and other amounts, inaccuracy of representations and warranties, violation of covenants, cross default and cross acceleration, voluntary and involuntary bankruptcy or insolvency proceedings, inability to pay debts as they become due, material judgments, ERISA events, actual or asserted invalidity of security documents or guarantees and change in control. The Company incurred $ 3.7 million in issuance costs during the year ended December 31, 2021, which is being amortized over the term of the debt as an adjustment to the effective interest rate on the outstanding borrowings. As of December 31, 2022, the Company had $ 655.0 million outstanding on the Credit Agreement. As of December 31, 2022 and 2021, the Company had $ 4.1 million and $ 4.8 million in letters of credit outstanding, respectively. The Company had $ 730.9 million available to borrow under the Credit Facilities at December 31, 2022, subject to customary conditions including the accuracy of representation and warranties and the absence of defaults. Notes On October 1, 2018, (the “A&S Closing Date”), upon the closing of the Fortive Transaction the Company assumed $ 400 million aggregate principal amount of 6.125 % senior notes due 2026 (the “Notes”). The Notes will mature on October 1, 2026 . Interest on the Notes accrues from October 1, 2018 and is payable semi-annually commencing on April 1, 2019 . The Notes may be redeemed at the option of the issuer on or after October 1, 2023 . The Notes are guaranteed on a senior unsecured basis by the Company and certain of its domestic subsidiaries. During the year ended December 31, 2022, the Company repurchased in the open market approximately $ 16.3 million aggregate principal amount of its Notes and paid approximately $ 16.4 million, including an early termination premium of approximately $ 0.1 million, which was recorded within Other non-operating (income) and expense in the Consolidated Statement of Operations. 2018 Credit Agreement On October 1, 2018, the Company and certain subsidiaries maintained credit facilities with JPMorgan Chase Bank, N.A., as administrative and collateral agent, and a syndicate of lenders, which provided for a term loan in an aggregate principal amount of $ 1,340.0 million (the “2018 Term Loan Facility”) and a revolving credit facility in an aggregate committed principal amount of $ 300.0 million (the “2018 Revolving Credit Facility” and together with the 2018 Term Loan Facility, the “2018 Credit Facilities”). On November 17, 2021, in connection with the new Credit Agreement, the 2018 Credit Agreement was terminated and all outstanding indebtedness for borrowed money thereunder was repaid in full. Mortgages and Other Agreements The Company’s subsidiaries in Europe have entered into certain long-term fixed rate term loans that are generally secured by the local property, plant and equipment. The debt has interest rates that range from 1.0 % to 2.5 %, with various quarterly and monthly installments through 2028. Finance Leases The Company leases certain equipment under finance lease arrangements, whose obligations are included in both short-term and long-term debt. Finance lease obligations amounted to approximately $ 0.3 million and $ 0.1 million at December 31, 2022 and 2021, respectively. Assets subject to finance leases are included in property, plant and equipment with the related amortization recorded as depreciation expense. Overdraft Agreements Certain of our foreign subsidiaries maintain overdraft agreements with financial institutions. There were no borrowings as of December 31, 2022 or 2021 under any of the overdraft agreements. Maturities on Long-Term Borrowings Maturities on long-term borrowings, excluding finance leases and debt issuance costs, are as follows: Amount 2023 $ 20.4 2024 20.2 2025 20.2 2026 978.7 2027 — Thereafter 6.4 Total $ 1,045.9 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Common Stock (shares not in thousands) Effective October 1, 2018, the Company amended its Articles of Incorporation to increase the number of authorized shares of Altra common stock from 90,000,000 shares to 120,000,000 shares. As of December 31, 2022 and 2021, there were 65,279,961 and 64,923,539 shares of common stock issued and outstanding, respectively. Preferred Stock On December 20, 2006, the Company amended and restated its certificate of incorporation authorizing 10,000,000 shares of undesignated Preferred Stock (“Preferred Stock”). The Preferred Stock may be issued from time to time in one or more classes or series, the shares of each class or series to have such designations and powers, preferences, rights, qualifications, limitations and restrictions as determined by the Company’s Board of Directors. There was no Preferred Stock issued or outstanding at December 31, 2022, 2021, or 202 0 . Restricted Common Stock The 2014 Omnibus Incentive Plan (the “2014 Plan”) provides for various forms of stock based compensation to our directors, executive personnel and other key employees and consultants. Under the 2014 Plan, the total number of shares of common stock available for delivery pursuant to the grant of awards (“Awards”) was approximately 3.8 million as of December 31, 2022. The restricted stock and restricted stock units issued pursuant to the 2014 Plan generally vest ratably over a period ranging from immediately to five years from the date of grant, provided that the vesting of the restricted stock or restricted stock units may accelerate upon the occurrence of certain events. Restricted stock and restricted stock units awarded under the 2014 Plan are generally subject to restrictions on transfer, repurchase rights, and other limitations and rights as set forth in the applicable award agreements. The 2014 Plan permits the Company to grant, among other things, restricted stock, restricted stock units, stock options and performance share awards to key employees. Certain awards include vesting based upon achievement of specified market conditions. Compensation expense recorded (in selling, general and administrative expense) during the years ended December 31, 2022, 2021 and 2020 was $ 15.3 million, $ 15.7 million, and $ 13.2 million, respectively. The Company recognizes stock-based compensation expense on a straight-line basis for the shares vesting ratably under the plan and uses the graded-vesting method of recognizing stock-based compensation expense for the performance share awards based on the probability of the specific performance metrics being achieved over the requisite service period. Total remaining unrecognized compensation cost is approximately $ 19.9 million as of December 31, 2022 , and will be recognized over a weighted average remaining period of three years . Stock Options The fair value of each stock option granted was estimated on the date of grant using the Black-Scholes valuation model that uses the following weighted-average assumptions: Years Ended December 31, 2022 2021 Expected term (in years) 6.3 - 6.5 6.0 - 6.5 Expected volatility factor 44.20 % - 43.71 % 43.11 % - 42.16 % Risk free interest rate 1.86 % - 1.87 % 0.66 % - 0.75 % Expected dividend yield 1.25 % 0.80 % - 0.82 % The expected life of the options was calculated using the simplified method. The Company uses the simplified method to determine the expected term, as management does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The Company’s expected volatility assumption for options granted is based on the historical volatility of the Company's common stock price over the expected life of the options. The weighted average risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. The dividend yield uses the most recent quarterly dividend and the stock price as of the grant date, annualized and continuously compounded. The following table summarizes the stock option activity under the Company’s plan for the year ended December 31, 2022: Weighted Options Weighted-average Aggregate Outstanding at January 1, 2022 500.0 $ 39.26 Granted 176.2 45.05 Outstanding at December 31, 2022 7.6 676.2 $ 40.77 $ 12.8 Exercisable at December 31, 2022 7.0 415.0 $ 37.53 $ 9.2 Unvested and expected to vest at December 31, 2022 8.4 245.2 $ 45.86 $ 3.4 Restricted Stock Units The following table summarizes the Restricted Stock Unit (“RSU”) activity under the Company’s plan for the year ended December 31, 2022: Shares Weighted-average Aggregate Unvested at January 1, 2022 420.5 $ 42.21 Granted 229.9 44.38 Vested ( 212.4 ) 40.34 Canceled/Forfeited ( 63.1 ) 45.70 Unvested at December 31, 2022 374.9 $ 44.11 $ 22.4 The total fair value and total intrinsic value of RSUs vested during the year ended December 31, 2022 was $ 8.6 million and $ 9.9 million, respectively. Performance Share Awards During fiscal 2022, 2021 and 2020 , the Company granted Performance Share Awards (“PSAs”) to certain of its officers and employees. The performance objective of the PSAs measures the Total Shareholder Return (“TSR”) against the TSR for a peer group of companies over a measurement period of three years from the time of grant. Award payouts for the PSAs are based on the percentile rank of the Company’s TSR compared to the TSR of peer group companies over the performance period. The following table summarizes the PSA activity under the Company’s plan for the year ended December 31, 2022: Shares Weighted-average Aggregate Unvested at January 1, 2022 286.5 $ 40.23 Granted 132.8 45.45 Vested ( 232.1 ) 33.09 Unvested at December 31, 2022 187.2 $ 51.29 $ 11.2 The total fair value and total intrinsic value of PSAs vested during the year ended December 31, 2022 was $ 7.7 million and $ 12.2 million, respectively. The fair value of PSAs is determined utilizing the Monte Carlo simulation model. The following weighted-average assumptions were used in the Monte Carlo simulation model, which were based on historical data and standard industry valuation practices and methodology: Years Ended December 31, 2022 2021 PSA fair value per share $ 45.45 $ 64.43 Expected volatility factor 57.27 % 55.85 % Risk free interest rate 1.64 % 0.18 % Expected dividend yield 0.00 % 0.00 % Share Repurchase Program On April 26, 2022, our Board of Directors approved a share repurchase program authorizing the buyback of up to $ 300 million of the Company’s common stock through December 31, 2024 . There was no share repurchase activity during the year ended December 31, 2022. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations | 13. Concentrations Financial instruments, which are potentially subject to counterparty performance and concentrations of credit risk, consist primarily of trade accounts receivable. The Company manages these risks by conducting credit evaluations of customers prior to delivery or commencement of services. When the Company enters into a sales contract, collateral is normally not required from the customer. Payments are typically due within 30 days of billing. An allowance for potential credit losses is maintained, and losses have historically been within management’s expectations. No customer represented greater than 10% of total sales for the years ended December 31, 2022, 2021 and 2020. The Company is also subject to counter party performance risk of loss in the event of non-performance by counterparties to financial instruments, such as cash and investments and derivative transactions. Cash and investments are held by well-established financial institutions and invested in AAA rated mutual funds or United States Government securities. The Company is exposed to swap counterparty credit risk with financial institutions. The Company’s counterparties are well-established financial institutions. |
Restructuring, Asset Impairment
Restructuring, Asset Impairment, and Transition Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Asset Impairment, and Transition Expenses | 14. Restructuring, Asset Impairment, and Transition Expenses From time to time, the Company will initiate various restructuring programs and incur severance and other restructuring costs. During 2017, the Company commenced a restructuring plan (“2017 Altra Plan”) as a result of the Company’s purchase of Stromag and to rationalize its global renewable energy business. The actions taken pursuant to the 2017 Altra Plan included reducing headcount, facility consolidations and the elimination of certain costs. In 2022 and 2021, the Company did no t incur any costs as a result of the 2017 Altra Plan. In 2020, the Company incurred $ 0.5 million related to headcount reduction. The Company does not expect to incur any additional material costs as a result of the 2017 Altra Plan. During 2019, the Company commenced a restructuring plan (“2019 Altra Plan”) to drive efficiencies, reduce the number of facilities and optimize its operating margin. The Company expects to incur an additional $ 1.0 - $ 2.0 million in restructuring expenses under the 2019 Altra Plan over the next two years , primarily related to headcount reductions and plant consolidations. For the year to date period ended December 31, 2022, the Company incurred expenses of $ 5.2 million comprised mainly of severance costs. For the year to date period ended December 31, 2021, the Company recorded approximately $ 2.0 million in expenses related to workforce reductions, $ 0.8 million in expenses related to facilities consolidation and relocation costs, and $ 0.2 million in other restructuring expense related charges. For the year to date period ended December 31, 2020, the Company recorded approximately $ 5.0 million in expenses related to workforce reductions, $ 0.6 million in expenses related to facilities consolidation and relocation costs, and $ 1.3 million in other restructuring expense related charges. The following table is a reconciliation of the accrued restructuring costs between January 1, 2020 and December 31, 2022. 2017 Altra 2019 Altra Total All Balance at January 1, 2020 $ 1.5 $ 2.6 $ 4.1 Restructuring expense incurred 0.5 6.9 7.4 Cash payments ( 1.5 ) ( 7.7 ) ( 9.2 ) Balance at December 31, 2020 0.5 1.8 2.3 Restructuring expense incurred — 3.0 3.0 Cash payments ( 0.5 ) ( 4.3 ) ( 4.8 ) Balance at December 31, 2021 — 0.5 0.5 Restructuring expense incurred — 5.2 5.2 Cash payments — ( 2.2 ) ( 2.2 ) Balance at December 31, 2022 $ — $ 3.5 $ 3.5 The total accrued restructuring reserve as of December 31, 2022 relates to severance to be paid to former employees and facility consolidation and relocation costs under the 2019 Altra Plan and is recorded in accruals and other current liabilities on the accompanying consolidated balance sheet. The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2022. 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 4.0 $ 4.0 Automation & Specialty — 1.2 1.2 Expense for the year ending December 31, 2022 $ — $ 5.2 $ 5.2 The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2021. 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 1.8 $ 1.8 Automation & Specialty — 1.2 1.2 Expense for the year ending December 31, 2021 $ — $ 3.0 $ 3.0 The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2020. 2017 Altra 2019 Altra Total All Power Transmission Technologies $ 0.5 $ 4.2 $ 4.7 Automation & Specialty — 2.7 2.7 Expense for the year ending December 31, 2020 $ 0.5 $ 6.9 $ 7.4 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 15. Derivative Financial Instruments The Company may manage changes in market conditions related to interest on debt obligations and foreign currency exposures by entering into derivative instruments, including interest rate and foreign currency swap agreements. All derivative instruments are recognized as either assets or liabilities on the balance sheet at fair value at the end of each period. The Company determines the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Company uses standard models with market-based inputs, which take into account the present value of estimated future cash flows and the ability of Altra or the financial counterparty to perform. For cross-currency interest rate swaps, the significant inputs are interest rate curves for discounting future cash flows, and exchange rate curves of the foreign currency for translating future cash flows. For interest rate swaps, the significant inputs to these models are interest rate curves for discounting future cash flows that are adjusted for credit risk. Both cross-currency interest rate swaps and interest rate swaps are Level 2 investments. Refer to Note 1 for a description of the fair value levels. For designated hedging relationships, the Company formally documents the hedging relationship consistent with the requirements of ASC 815, Derivatives. Cross-Currency Interest Rate Swaps In December 2018, the Company entered into cross-currency swap agreements to hedge its net investment in Euro-denominated assets against future volatility in the exchange rate between the U.S. dollar and the Euro. By doing so, the Company synthetically converted a portion of its U.S. dollar-based long-term debt into Euro-denominated long-term debt. At inception, the cross-currency swaps were designated as net investment hedges. For net investment hedges, changes in the fair value of the effective portion of the derivatives’ gains or losses are reported as foreign currency translation gains or losses in accumulated other comprehensive income (loss) (“AOCIL”). The gains or losses on derivative instruments reported in AOCIL are reclassified to earnings in the period in which earnings are affected by the underlying item, such as a disposal or substantial liquidations of the entities being hedged. For the year ended December 31, 2019, the Company recorded a gain in AOCIL of approximately $ 19.8 million, net of $ 3.6 million of tax. During the first quarter of 2020, the global economy declined substantially due to the impact of COVID-19. This decline resulted in a significant increase in the value of the U.S. dollar. The appreciation of the U.S. dollar resulted in the Company’s cross-currency interest rate swaps being substantially in-the-money. Given the increased cash value of the hedges and the Company’s overall desire to strengthen its cash position, the Company terminated the cross-currency interest rate swaps during the first quarter of 2020. The Company received the cash value of the cross-currency interest rate swaps of approximately $ 56.2 million upon termination. In addition, the Company paid the interest owed and received the interest due, resulting in the recognition of approximately $ 3.3 million in net interest income, and paid termination fees of approximately $ 0.9 million. Through the date of the termination of the cross-currency interest rate swaps, the Company recorded a gain in AOCIL of approximately $ 31.2 million, net of $ 9.9 million of tax. At December 31, 2022 and 2021, the Company had a gain in AOCIL of approximately $ 44.8 million, net of $ 11.4 million of tax. That balance will remain in AOCIL until the period in which earnings are affected by the underlying item, such as a disposal or substantial liquidations of the entities being hedged. Interest Rate Swaps In January 2017, the Company entered into an interest rate swap agreement designed to fix the variable interest rate payable on a portion of its outstanding borrowings. This interest rate swap matured on January 31, 2020 . Additionally, in December 2018, the Company entered into an interest rate swap agreement designed to manage the cash flow risk caused by interest rate changes on the forecasted interest payments expected to occur related to a portion of its outstanding borrowings under the 2018 Altra Credit Agreement. The interest rate swap agreement was designed to manage exposure to interest rates on the Company’s variable rate indebtedness and was recognized on the balance sheet at fair value. The Company designated this interest rate swap agreement as a cash flow hedge and changes in the fair value of the swap were recognized in other comprehensive income until the hedged items were recognized in earnings. During the second quarter of 2020, the Company terminated the interest rate swap agreement. The Company paid the cash value of the interest rate swaps of approximately $ 34.7 million upon termination. In addition, the Company paid the interest owed and received the interest due, resulting in the recognition of approximately $ 0.1 million in net interest expense, and paid termination fees of approximately $ 0.1 million. Through the date of the termination of the interest rate swap, the Company recorded a loss in AOCIL of approximately $ 11.9 million, net of $ 3.8 million of tax benefit. For the year ended December 31, 2019, the Company recorded a loss in AOCIL of approximately $ 9.9 million, net of $ 1.7 million of tax benefit. The loss on the interest rate swap reported in AOCIL will be reclassified to earnings in future periods when the hedged transaction affects earnings or if it is determined that it is probable that the hedged transaction will not occur. The Company recorded $ 11.5 million and $ 3.3 million of net interest expense for the year to date periods ended December 31, 2020 and 2019, respectively. Approximately $ 9.0 million ($ 6.9 million net of tax) of the net interest expense is non-cash amortization, due to the termination of the interest rate swap, reclassified from AOCIL for the year to date period ended December 31, 2020. In November 2021, the Company terminated the 2018 Credit Agreement. As a result of the decision to terminate the 2018 Credit Agreement, the remaining balance of the unrealized loss in AOCIL of $ 14.9 million was immediately reclassified to “Interest expense, net” in the accompanying consolidated statement of earnings. During the year ended December 31, 2021, the Company reclassified $ 25.7 million ($ 21.5 million net of tax) of non-cash interest expense from AOCIL to earnings. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies General Litigation The Company is involved in various pending legal proceedings arising out of the ordinary course of business. These proceedings primarily involve commercial claims, product liability claims, personal injury claims, and workers’ compensation claims. With respect to these proceedings, management believes that the Company will prevail, has adequate insurance coverage or has established appropriate reserves to cover potential liabilities. Any costs that management estimates may be paid related to these proceedings or claims are accrued when the liability is considered probable and the amount can be reasonably estimated. There can be no assurance, however, as to the ultimate outcome of any of these matters, and if all or substantially all of these legal proceedings were to be determined adversely to the Company, there could be a material adverse effect on the results of operations, cash flows, or financial condition of the Company. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. For matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses, individually and in the aggregate, will not have a material effect on our consolidated financial statements. Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates. We will continue to consider the applicable guidance in ASC 450-20, based on the facts known at the time of our future filings, as it relates to legal contingencies, and will adjust our disclosures as may be required under the guidance. There were no material amounts accrued in the accompanying consolidated balance sheets for potential litigation as of December 31, 2022 or 2021. The Company also risks exposure to product liability claims in connection with products it has sold and those sold by businesses that the Company acquired. Although in some cases third parties have retained responsibility for product liability claims relating to products manufactured or sold prior to the acquisition of the relevant business and in other cases the persons from whom the Company has acquired a business may be required to indemnify the Company for certain product liability claims subject to certain caps or limitations on indemnification, the Company cannot assure that those third parties will in fact satisfy their obligations with respect to liabilities retained by them or their indemnification obligations. If those third parties become unable to or otherwise do not comply with their respective obligations including indemnity obligations, or if certain product liability claims for which the Company is obligated were not retained by third parties or are not subject to these indemnities, the Company could become subject to significant liabilities or other adverse consequences. Moreover, even in cases where third parties retain responsibility for product liability claims or are required to indemnify the Company, significant claims arising from products that have been acquired could have a material adverse effect on the Company’s ability to realize the benefits from an acquisition, could result in the reduction of the value of goodwill that the Company recorded in connection with an acquisition, or could otherwise have a material adverse effect on the Company’s business, financial condition, or operations. Environmental There is contamination at some of the Company’s current facilities, primarily related to historical operations at those sites, for which the Company could be liable for the investigation and remediation under certain environmental laws. The potential for contamination also exists at other of the Company’s current or former sites, based on historical uses of those sites. The Company currently is not undertaking any remediation or investigations and the costs or liability in connection with potential contamination conditions at these facilities cannot be predicted at this time because the potential existence of contamination has not been investigated or not enough is known about the environmental conditions or likely remedial requirements. Currently, other parties with contractual liability are addressing or have plans or obligations to address those contamination conditions that may pose a material risk to human health, safety or the environment. In addition, while the Company attempts to evaluate the risk of liability associated with these facilities at the time the Company acquired them, there may be environmental conditions currently unknown to the Company relating to prior, existing or future sites or operations or those of predecessor companies whose liabilities the Company may have assumed or acquired which could have a material adverse effect on the Company’s business. The Company is being indemnified, or expects to be indemnified, by third parties subject to certain caps or limitations on the indemnification, for certain environmental costs and liabilities associated with certain owned or operated sites. Accordingly, based on the indemnification and the experience with similar sites of the environmental consultants who the Company has hired, the Company does not expect such costs and liabilities to have a material adverse effect on its business, operations or earnings. There can be no assurance, however, that those third parties will in fact satisfy their indemnification obligations. If those third parties become unable to, or otherwise do not, comply with their respective indemnity obligations, or if certain contamination or other liability for which the Company is obligated is not subject to these indemnities, the Company could become subject to significant liabilities. From time to time, the Company is notified that it is a potentially responsible party and may have liability in connection with off-site disposal facilities. To date, the Company has generally resolved matters involving off-site disposal facilities for a nominal sum but there can be no assurance that the Company will be able to resolve pending or future matters in a similar fashion. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 17. Segment and Geographic Information The internal reporting structure used by our Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources determines the basis for our reportable operating segments. Our CODM is our Chief Executive Officer, and he evaluates operations and allocates resources based on a measure of income from operations. Our operations are organized in two reporting segments that are aligned with key product types and end markets served, Power Transmission Technologies and Automation & Specialty: • Power Transmission Technologies. This segment includes the following key product offerings: o Couplings, Clutches & Brakes. Couplings are the interface between two shafts, which enable power to be transmitted from one shaft to the other. Clutches in this segment are devices that use mechanical, hydraulic, pneumatic, or friction type connections to facilitate engaging or disengaging two rotating members. Brakes are combinations of interacting parts that work to slow or stop machinery. Products in this segment are generally used in heavy industrial applications and energy markets. o Electromagnetic Clutches & Brakes. Products in this segment include brakes and clutches that are used to electronically slow, stop, engage or disengage equipment utilizing electromagnetic friction type connections. Products in this segment are used in industrial and commercial markets including agricultural machinery, material handling, motion control, and turf & garden. o Gearing. Gears are utilized to reduce the speed and increase the torque of an electric motor or engine to the level required to drive a particular piece of equipment. Gears produced by the Company are primarily utilized in industrial applications. • Automation & Specialty. Our Automation & Specialty segment consists of the following key brands: o Kollmorgen: Provides rotary precision motion solutions, including servo motors, stepper motors, high performance electronic drives and motion controllers and related software, and precision linear actuators. These products are used in advanced material handling, aerospace and defense, factory automation, medical, packaging, printing, semiconductor, robotic and other applications. o Portescap: Provides high-efficiency miniature motors and motion control products, including brush and brushless DC motors, can stack motors and disc magnet motors. These products are used in medical, industrial power tool and general industrial equipment applications. o Thomson: Provides systems that enable and support the transition of rotary motion to linear motion. Products include linear bearings, guides, glides, lead and ball screws, industrial linear actuators, clutch brakes, precision gears, resolvers and inductors. These products are used in factory automation, medical, mobile off-highway, material handling, food processing and other niche applications. Segment financial information and a reconciliation of segment results to consolidated results follows: Year Ended December 31, 2022 2021 2020 Net Sales: Power Transmission Technologies $ 985.6 $ 924.8 $ 818.6 Automation & Specialty 965.5 979.0 911.8 Inter-segment eliminations ( 5.6 ) ( 4.0 ) ( 4.4 ) Net sales $ 1,945.5 $ 1,899.8 $ 1,726.0 Income from operations: Segment earnings: Power Transmission Technologies (1) $ 136.8 $ 128.6 $ 97.5 Automation & Specialty (2) 136.0 ( 8.3 ) ( 10.4 ) Corporate (3) ( 27.2 ) ( 19.9 ) ( 2.2 ) Restructuring and consolidation costs ( 5.2 ) ( 3.0 ) ( 7.4 ) Income from operations 240.4 97.4 77.5 Other non-operating (income) expense: Interest expense, net 51.5 94.5 72.1 Other non-operating expense (income), net ( 0.4 ) ( 4.9 ) 1.4 51.1 89.6 73.5 Income before income taxes 189.3 7.8 4.0 (Benefit)/Provision for income taxes 62.3 ( 19.9 ) 29.5 Net income/(loss) $ 127.0 $ 27.7 $ ( 25.5 ) (1) In 2022, the Company recorded a non-cash impairment charge of $ 3.0 million related to a building expected to be sold upon the closing of its facility in Dessau, Germany. The asset held for sale is part of “Prepaid expenses and Other current assets” in the consolidated balance sheet. (2) The Company recorded non-cash impairment charges of $ 10.2 million and $ 142.4 million in 2022 and 2021, respectively, at the JVS reporting unit related to the held for sale classification. In 2020, the Company recorded non-cash impairment charges of $ 8.4 million and $ 139.1 million for indefinite-lived intangible assets and goodwill, respectively, at the JVS reporting unit. (3) Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to the corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs and acquisition related expenses. Selected information by segment (continued) Years Ended December 31, 2022 2021 2020 Depreciation and amortization: Power Transmission Technologies $ 28.0 $ 31.5 $ 32.9 Automation & Specialty 63.6 88.2 91.5 Corporate 2.6 2.6 3.2 Total depreciation and amortization $ 94.2 $ 122.3 $ 127.6 Years Ended December 31, 2022 2021 Total assets: Power Transmission Technologies $ 1,075.0 $ 1,069.4 Automation & Specialty 2,511.2 2,879.2 Corporate (1) 90.4 182.0 Total assets $ 3,676.6 $ 4,130.6 (1) Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, property, plant and equipment and deferred financing costs. Net Sales Property, Plant and Years Ended December 31, Years Ended December 31, 2022 2021 2020 2022 2021 North America (primarily U.S.) $ 1,124.2 $ 1,018.3 $ 914.9 $ 160.4 $ 134.6 Europe excluding Germany 344.8 341.9 289.3 47.4 48.5 Germany 209.5 200.0 185.8 45.5 55.4 China 148.0 222.9 222.5 7.0 24.7 Asia and other (excluding China) 119.0 116.7 113.5 14.8 12.6 Total $ 1,945.5 $ 1,899.8 $ 1,726.0 $ 275.1 $ 275.8 Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for property, plant and equipment are based on the location of the entity, which holds such assets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events On February 1, 2023 , the Company declared a dividend of $ 0.09 per share for the quarter ended March 31, 2023, payable on April 4, 2023 to stockholders of record as of March 16, 2023 . The dividend will only be payable if the Regal Rexnord Merger has not closed prior to the close of business on the record date. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | ALTRA INDUSTRIAL MOTION CORP. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Allowance for Credit Losses: Balance at Additions Deductions Balance at For the year ended December 31, 2020 $ 5.1 $ 0.0 $ ( 0.2 ) $ 4.9 For the year ended December 31, 2021 4.9 0.1 ( 0.9 ) 4.1 For the year ended December 31, 2022 $ 4.1 $ 0.4 $ 0.0 $ 4.5 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Basis of Preparation and Description of Business | Basis of Preparation and Description of Business Headquartered in Braintree, Massachusetts, Altra Industrial Motion Corp. (the “Company”) is a leading global designer, producer and marketer of a wide range of electro-mechanical power transmission motion control (“PTMC”) products. The Company brings together strong brands with production facilities in 17 countries. Altra’s leading brands currently include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Kollmorgen, Lamiflex Couplings, Marland Clutch, Matrix, Nook Industries, Nuttall Gear, Stieber Clutch, Stromag, Svendborg Brakes, Portescap, TB Wood’s, Thomson, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch. On October 26, 2022, we entered into an Agreement and Plan of Merger (the “Regal Rexnord Merger Agreement”) with Regal Rexnord Corporation, a Wisconsin corporation (“Regal Rexnord”), and Aspen Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Regal Rexnord (“Merger Sub”), pursuant to which, and upon the terms and subject to the conditions described therein, Merger Sub will merge with and into the Company, with the Company surviving the merger as a wholly owned subsidiary of Regal Rexnord (the “Regal Rexnord Merger”). Under the Regal Rexnord Merger Agreement, at the closing of the Regal Rexnord Merger, each issued and outstanding share of our common stock (other than (i) shares owned by the Company, any subsidiary of the Company, Regal Rexnord, Merger Sub or any other subsidiary of Regal Rexnord, (ii) shares owned by stockholders of the Company who have validly exercised their statutory rights of appraisal under the General Corporation Law of the State of Delaware (“DGCL”) and (iii) Company Restricted Shares (as defined in the Regal Rexnord Merger Agreement) will be converted into the right to receive $ 62.00 in cash, without interest and subject to any required withholding of taxes. As announced in our Current Report on Form 8-K filed with the SEC on January 18, 2023, the Regal Rexnord Merger was approved by our shareholders. The consummation of the Regal Rexnord Merger is subject to customary closing conditions and is expected to occur in the first half of 2023 and potentially in the first quarter of 2023. If the Regal Rexnord Merger Agreement is terminated under specified circumstances, we will be required to pay Regal Rexnord a termination fee of $ 100 million. The Regal Rexnord Merger Agreement also provides that, in connection with the termination of the Regal Rexnord Merger Agreement under specified antitrust or foreign direct investment related circumstances, Regal Rexnord will be required to pay us a “reverse termination fee” of $ 200 million. During the twelve months ended December 31, 2022, the Company incurred approximately $ 9.9 million of costs in connection with the proposed merger. These costs related primarily to investment banking and legal fees and are included in transaction-related costs in the consolidated condensed statement of operations. The Company has not recognized any transaction-related costs that are contingent upon the consummation of the proposed merger, including contingent investment banking fees, legal costs, management retention bonuses, acceleration of stock compensation costs, and other costs. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Net Income/(Loss) Per Share | Net Income/(Loss) Per Share Basic earnings per share is based on the weighted average number of shares of common stock outstanding and diluted earnings per share is based on the weighted average number of shares of common stock outstanding and all potentially dilutive common stock equivalents outstanding. Common stock equivalent shares are included in the per share calculations when the effect of their inclusion is dilutive. The following is a reconciliation of basic to diluted shares outstanding: Years Ended December 31, 2022 2021 2020 Shares used in net income per common share - basic 65.1 64.8 64.6 Effect of dilutive shares 0.3 0.6 — Shares used in net income per common share - diluted 65.4 65.4 64.6 Shares excluded as their inclusion would be anti-dilutive — — 0.2 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1- Quoted prices in active markets for identical assets or liabilities. • Level 2- Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived. • Level 3- Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents and are classified as Level 1. The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities are carried at cost, which approximates fair value, and are classified as Level 1. Debt under the Altra Credit Agreement (as defined herein) is classified as Level 2 and is comprised of the Term Loan Facility and the Revolving Credit Facility (both as defined herein). The carrying amount of the Term Loan Facility of $ 390.0 million and the Revolving Credit Facility of $ 265.0 million approximates fair value due to the fact that the interest rate on the debt is based on variable interest rates. The carrying amount of the Notes (as defined herein) was $ 383.7 million and the estimated fair value of the Notes was $ 384.7 million at December 31, 2022. The Notes are classified as Level 2. The Company determines the fair value of financial instruments using quoted market prices whenever available and classifies these investments as Level 1. When quoted market prices are not available for various types of financial instruments (such as derivative instruments), the Company uses standard models with market-based inputs, which take into account the present value of estimated future cash flows and the ability of the Company or the financial counterparty to perform. These investments are classified as Level 2. For cross-currency interest rate swaps and interest rate swaps, the significant inputs to these models are interest rate curves for discounting future cash flows and are adjusted for credit risk. See additional discussion of the Company’s use of financial instruments including cross-currency interest rate swaps and interest rate swaps included in Note 15. During 2022, the company recorded an impairment of $ 3.0 million related to a building expected to be sold upon the closing of its facility in Dessau, Germany. The Company estimated the fair value of the building based on appraisals and sales prices of like properties (Level 2). The net book value of the building is classified as an asset held for sale as part of “Prepaid expenses and Other current assets” in the consolidated balance sheet, as the Company expects it to be sold within the next twelve months. In December 2020 and May 2022, the Company invested approximately $ 5.0 million and $ 4.6 million, respectively, for a minority equity interest in a privately held manufacturing software company, MTEK Industry AB (“MTEK”), over which the Company does not exert significant influence. The equity investments do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value using the net asset value per share. Therefore, in accordance with ASU 2016-01, the Company elected to measure the investments at their cost less impairment, if any, adjusted for observable price changes in orderly transactions for identical or a similar investment of the same issuer. These investments are considered Level 3 assets based on the lack of observable inputs and are classified within other non-current assets in the consolidated balance sheets. The Company monitors its equity investment in MTEK for indicators of impairment or upward adjustments on an ongoing basis. If the Company determines that such an indicator is present, an adjustment will be recorded, which will be measured as the difference between the carrying value and estimated fair value. During the quarter ended June 30, 2022, the Company reassessed the value of its December 2020 investment and recognized a $ 0.7 million unrealized holding gain as a result of an observable price change from the additional investment made in May 2022. As of December 31, 2022, there were no other indicators that support an adjustment to MTEK’s carrying value. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the financial statements. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. Dollar are translated into U.S. Dollars using exchange rates at the end of the respective period. Revenues and expenses are translated at average exchange rates effective during the respective period. Foreign currency translation adjustments are included in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Net foreign currency transaction gains and losses are included in the results of operations in the period incurred and included in other non-operating expense (income), net in the accompanying consolidated statements of operations. Net foreign currency transaction gains and losses for the years ended December 31, 2022, 2021 and 2020 were inconsequential. |
Trade Receivables | Trade Receivables All trade account receivables are reported net of allowances for credit losses. The allowance for credit losses represents the Company’s best estimate of the credit losses expected from our trade account receivables over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. The Company regularly performs detailed reviews of its pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. |
Inventories | Inventories Inventories are generally stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) method. The carrying value of inventories acquired by the Company in its acquisitions reflects fair value at the date of acquisition as determined by the Company based on the replacement cost of raw materials, the sales price of the finished goods less an appropriate amount representing the expected profitability from selling efforts, and for work-in-process the sales price of the finished goods less an appropriate amount representing the expected profitability from selling efforts and costs to complete. The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product or product line. The Company records a charge to cost of sales for any amounts required to reduce the carrying value of inventories to its estimated net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation of property, plant and equipment, including finance leases, is provided using the straight-line method over the estimated useful life of the asset, as follows: Buildings and improvements 7 to 45 years Machinery and equipment 2 to 15 years Finance leases Life of lease Leasehold improvements are depreciated on a straight-line basis over the estimated life of the asset or the life of the lease, if shorter. Improvements and replacements are capitalized to the extent that they increase the useful economic life or increase the expected economic benefit of the underlying asset. Repairs and maintenance expenditures are charged to expense as incurred. |
Lease Accounting Policy | Lease Accounting Policy Arrangements that are determined to be leases at inception are recognized in operating lease right of use (ROU) assets, current lease liabilities, and long-term lease liabilities in the consolidated balance sheet. Operating lease liabilities are recognized based on the present value of the future fixed lease payments over the lease term at lease commencement date. As the Company’s leases typically do not provide an implicit rate, the Company applies its incremental borrowing rate based on the economic environment at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease prepayments made and initial direct costs incurred and is reduced by lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases are recognized on a straight-line basis over the lease term. |
Intangible Assets | Intangible Assets Intangible assets represent product technology, patents, tradenames, trademarks and customer relationships. Product technology, patents and customer relationships are amortized on a straight-line basis over 4 to 29 years , which approximates the period of economic benefit. Trademarks and the majority of our trade names are considered indefinite-lived assets and are not being amortized. Intangibles are stated at fair value on the date of acquisition. Intangibles are stated net of accumulated amortization. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price paid by the Company over the fair value of the net assets acquired in each of the Company’s acquisitions. |
Impairment of Goodwill and Indefinite-Lived Intangible Assets | Impairment of Goodwill and Indefinite-Lived Intangible Assets The Company conducts an annual impairment review of goodwill and indefinite-lived intangible assets in October of each year, unless events occur which trigger the need for an interim impairment review. In connection with the Company’s annual impairment review, goodwill is assessed for impairment by comparing the fair value of the reporting unit to the carrying value. The Company’s measurement date is October 31st. The Company determines the fair value of its reporting units using a combination of the discounted cash flow model as well as a market-based approach relying on the Company’s market multiples. The determination of the fair value using the discounted cash flow model requires management to make significant estimates and assumptions related to forecasts of future revenues, profit margins, and discount rates. The determination of the fair value using the market approach requires management to make significant assumptions related to earnings before interest, taxes, depreciation, amortization (EBITDA) multiples and revenue multiples. The Company estimates future cash flows based upon historical results and current market projections, discounted at a market comparable rate. An impairment loss would be recognized to the extent that a reporting unit’s carrying amount exceeded its deemed fair value. Refer to Note 7 for additional discussion of the Company’s annual impairment review. For the Company's indefinite-lived intangible assets, mainly trademarks, the Company estimated the fair value first by estimating the total revenue attributable to the trademarks. Second, the Company estimated an appropriate royalty rate using the return on assets method by estimating the required financial return on our assets, excluding trademarks, less the overall return generated by our total asset base. The return as a percentage of revenue provides an indication of our royalty rate (between 1.0 % and 2.0 %). The Company compared the estimated fair value of our trademarks with the carrying value of the trademarks. Refer to Note 7 for additional discussion of the Company’s annual impairment review. Preparation of forecasts of revenue and profitability growth for use in the long-range plan and the discount rate require significant use of judgment. Changes to the discount rate and the forecasted cash flows could affect the estimated fair value of one or more of the Company’s reporting units and intangible assets and could result in an impairment charge in a future period. |
Impairment of Long-Lived Assets Other Than Goodwill and Indefinite-Lived Intangible Assets | Impairment of Long-Lived Assets Other Than Goodwill and Indefinite-Lived Intangible Assets Long-lived assets, including definite-lived intangible assets are reviewed for impairment when events or circumstances indicate that the carrying amount of a long-lived asset may not be recovered. Long-lived assets are considered to be impaired if the carrying amount of the asset exceeds the undiscounted future cash flows expected to be generated by the asset over its remaining useful life. If an asset is considered to be impaired, the impairment is measured by the amount by which the carrying amount of the asset exceeds its fair value, and is charged to results of operations at that time. |
Held for Sale | Held for Sale Assets and liabilities to be disposed of by sale (“disposal groups”) are reclassified into “held for sale” if their carrying amounts are principally expected to be recovered through a sale transaction rather than through continuing use. The reclassification occurs when the disposal group is available for immediate sale and the sale is probable. These criteria are generally met when an agreement to sell exists, or management has committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying amount or fair value less costs to sell and are not depreciated or amortized. When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was reclassified as held for sale. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group. Refer to Financial Note 3, “Acquisitions and Divestitures,” for more information. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue under the core principle of depicting the transfer of control to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Our sales revenue for product sales is recognized based on a point in time model, when control transfers to our customers, which is generally when products are shipped from our manufacturing facilities or when delivered to the customer’s named location. Certain large distribution customers receive annual volume discounts, which are estimated at the time the sale is recorded based on the estimated annual sales. Product return reserves are accrued at the time of sale based on the historical relationship between shipments and returns and are recorded as a reduction of net sales. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered as fulfillment activities and, accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. See Note 2 ( Revenue Recognition ) to the consolidated financial statements for further disclosures regarding revenue. |
Warranty Costs | Warranty Costs Estimated expenses related to product warranties are accrued at the time products are sold to customers. Estimates are established using historical information as to the nature, frequency, and average costs of warranty claims. |
Self-Insurance | Self-Insurance Certain exposures are self-insured up to pre-determined amounts, above which third-party insurance applies, including exposures for medical claims, workers’ compensation, vehicle insurance, product liability costs and general liability exposure. The accompanying balance sheets include reserves for the estimated costs associated with these self-insured risks, based on historic experience factors and management’s estimates for known and anticipated claims. A portion of medical insurance costs are offset by charging employees a premium equivalent to group insurance rates. The costs of retained loss for the self-insurance programs, at each balance sheet date, have not been material in any period. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Advertising | Advertising Advertising costs are charged to selling, general and administrative expenses as incurred and amounted to approximately $ 7.2 million, $ 6.0 million and $ 5.0 million, for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company evaluates the realizability of its net deferred tax assets and assesses the need for a valuation allowance on a quarterly basis. The future benefit to be derived from its deferred tax assets is dependent upon the Company’s ability to generate sufficient future taxable income to realize the assets. The Company records a valuation allowance to reduce its net deferred tax assets to the amount that may be more likely than not to be realized. To the extent the Company establishes a valuation allowance on net deferred tax assets generated from operations, an expense will be recorded within the provision for income taxes. In periods subsequent to establishing a valuation allowance on net deferred assets from operations, if the Company were to determine that it would be able to realize its net deferred tax assets in excess of their net recorded amount, an adjustment to the valuation allowance would be recorded as a reduction to income tax expense in the period such determination was made. We assess our income tax positions and record tax benefits for all years subject to examination, based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions for which it is more likely than not that a tax benefit will be sustained, we record the amount that has a greater than 50% likelihood of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense in the consolidated statement of operations and included in accruals and other long-term liabilities in the Company’s consolidated balance sheet, when applicable. If we do not believe that it is more likely than not that a tax benefit will be sustained, no tax benefit is recognized. |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in Accumulated Other Comprehensive Income (Loss) by Component The following is a reconciliation of changes in Accumulated Other Comprehensive Income (Loss) for the periods presented: Gains and Pension & Other Cumulative Total Accumulated other comprehensive income/(loss) by component, January 1, 2020 $ ( 16.5 ) $ ( 1.5 ) $ ( 71.9 ) $ ( 89.9 ) Change in fair value of interest rate swap, net of tax ( 11.9 ) — — ( 11.9 ) Reclassification of interest rate swap to income, net of tax 6.9 — — 6.9 Pension adjustments, net of tax — ( 2.6 ) — ( 2.6 ) Reclassification of pension adjustments, net of tax — 0.4 — 0.4 Foreign currency translation adjustments — — 87.0 87.0 Change in fair value of net investment hedge, net of tax — — 31.2 31.2 Net current-period other comprehensive income/(loss) ( 5.0 ) ( 2.2 ) 118.2 111.0 Accumulated other comprehensive income/(loss) by component, December 31, 2020 $ ( 21.5 ) $ ( 3.7 ) $ 46.3 $ 21.1 Reclassification of interest rate swap to income, net of tax 21.5 — — 21.5 Pension & other post retirement benefit obligation adjustment, net of tax — 3.3 — 3.3 Reclassification of pension adjustments, net of tax — 0.6 — 0.6 Foreign currency translation adjustments — — ( 57.5 ) ( 57.5 ) Net current-period other comprehensive income/(loss) 21.5 3.9 ( 57.5 ) ( 32.1 ) Accumulated other comprehensive income/(loss) by component, December 31, 2021 $ — $ 0.2 $ ( 11.2 ) $ ( 11.0 ) Pension & other post retirement benefit obligation adjustment, net of tax — 7.4 — 7.4 Reclassification of pension adjustments, net of tax — 0.1 — 0.1 Foreign currency translation adjustments — — ( 103.5 ) ( 103.5 ) Net current-period other comprehensive income/(loss) — 7.5 ( 103.5 ) ( 96.0 ) Accumulated other comprehensive income/(loss) by component, December 31, 2022 $ — $ 7.7 $ ( 114.7 ) $ ( 107.0 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This ASU provides relief from certain accounting consequences that could result from the global markets’ anticipated transition away from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The relief provided by this ASU is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The optional amendments are effective as of March 12, 2020 through December 31, 2022. The Company evaluated the optional relief guidance provided within this ASU and concluded it will not have a material impact because the Company’s financial instruments potentially affected by this standard include language allowing for a rate other than LIBOR to be applied upon transition. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an entity generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendment. Early adoption is permitted, including adoption in an interim period. The Company does not expect adoption of this standard to have a significant impact on the consolidated financial statements. |
Shipping and Handling Costs [Member] | |
Cost of sales | Shipping and Handling Costs Shipping and handling costs associated with sales are classified as a component of cost of sales. Amounts collected from our customers for shipping and handling are recognized as revenue. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of Basic to Diluted Shares Outstanding | The following is a reconciliation of basic to diluted shares outstanding: Years Ended December 31, 2022 2021 2020 Shares used in net income per common share - basic 65.1 64.8 64.6 Effect of dilutive shares 0.3 0.6 — Shares used in net income per common share - diluted 65.4 65.4 64.6 Shares excluded as their inclusion would be anti-dilutive — — 0.2 |
Depreciation and Estimated Useful Life of Property, Plant and Equipment, Including Finance Leases | Depreciation of property, plant and equipment, including finance leases, is provided using the straight-line method over the estimated useful life of the asset, as follows: Buildings and improvements 7 to 45 years Machinery and equipment 2 to 15 years Finance leases Life of lease |
Reconciliation of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following is a reconciliation of changes in Accumulated Other Comprehensive Income (Loss) for the periods presented: Gains and Pension & Other Cumulative Total Accumulated other comprehensive income/(loss) by component, January 1, 2020 $ ( 16.5 ) $ ( 1.5 ) $ ( 71.9 ) $ ( 89.9 ) Change in fair value of interest rate swap, net of tax ( 11.9 ) — — ( 11.9 ) Reclassification of interest rate swap to income, net of tax 6.9 — — 6.9 Pension adjustments, net of tax — ( 2.6 ) — ( 2.6 ) Reclassification of pension adjustments, net of tax — 0.4 — 0.4 Foreign currency translation adjustments — — 87.0 87.0 Change in fair value of net investment hedge, net of tax — — 31.2 31.2 Net current-period other comprehensive income/(loss) ( 5.0 ) ( 2.2 ) 118.2 111.0 Accumulated other comprehensive income/(loss) by component, December 31, 2020 $ ( 21.5 ) $ ( 3.7 ) $ 46.3 $ 21.1 Reclassification of interest rate swap to income, net of tax 21.5 — — 21.5 Pension & other post retirement benefit obligation adjustment, net of tax — 3.3 — 3.3 Reclassification of pension adjustments, net of tax — 0.6 — 0.6 Foreign currency translation adjustments — — ( 57.5 ) ( 57.5 ) Net current-period other comprehensive income/(loss) 21.5 3.9 ( 57.5 ) ( 32.1 ) Accumulated other comprehensive income/(loss) by component, December 31, 2021 $ — $ 0.2 $ ( 11.2 ) $ ( 11.0 ) Pension & other post retirement benefit obligation adjustment, net of tax — 7.4 — 7.4 Reclassification of pension adjustments, net of tax — 0.1 — 0.1 Foreign currency translation adjustments — — ( 103.5 ) ( 103.5 ) Net current-period other comprehensive income/(loss) — 7.5 ( 103.5 ) ( 96.0 ) Accumulated other comprehensive income/(loss) by component, December 31, 2022 $ — $ 7.7 $ ( 114.7 ) $ ( 107.0 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregates Revenue for Each Reportable Segment and Geographic Region | The following table disaggregates our revenue for each reportable segment. The Company believes that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Years Ended December 31, 2022 2021 2020 Net Sales: Power Transmission Technologies $ 985.6 $ 924.8 $ 818.6 Automation & Specialty 965.5 979.0 911.8 Inter-segment eliminations ( 5.6 ) ( 4.0 ) ( 4.4 ) Net sales $ 1,945.5 $ 1,899.8 $ 1,726.0 Net sales by geographic region based on point of shipment origin are as follows: Net Sales Years Ended December 31, 2022 2021 2020 North America (primarily U.S.) $ 1,124.2 $ 1,018.3 $ 914.9 Europe excluding Germany 344.8 341.9 289.3 Germany 209.5 200.0 185.8 China 148.0 222.9 222.5 Asia and other (excluding China) 119.0 116.7 113.5 Total $ 1,945.5 $ 1,899.8 $ 1,726.0 |
Summary of Opening and Closing Balances of Current Contract Liability | The opening and closing balances of the Company’s current contract liabilities as of the year to date periods ended December 31, 2022 and December 31, 2021 are as follows: Years Ended December 31, 2022 2021 Beginning balance $ 13.5 $ 10.3 Closing balance 16.9 13.5 Increase $ 3.4 $ 3.2 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Acquisition [Line Items] | |
Schedule of Assets and Liabilities of JVS Business Classified as Held for sale | The assets and liabilities of the JVS business classified as held for sale at December 31, 2021 were as follows: December 31, 2021 Assets Current Assets Trade receivables $ 11.3 Inventories 16.3 Prepaid expenses and other current assets 2.3 Property, plant and equipment, net 64.6 Goodwill — Intangible assets, net 364.5 Other assets 0.7 Impairment on carrying value (1) ( 82.4 ) Total assets held for sale $ 377.3 Liabilities Current Liabilities Accounts payable $ 20.8 Other current liabilities 9.8 Deferred tax liabilities 22.3 Other liabilities 0.1 Total liabilities held for sale $ 53.0 (1) Includes the effect of approximately $ 10.8 million of favorable cumulative foreign currency translation adjustment and accumulated other post retirement benefit obligation gains. |
Nook Industries, LLC [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | At Acquisition Date (As Adjusted) Total cash consideration $ 129.9 Purchase price holdback 8.2 Fair value of consideration transferred 138.1 Recognized identifiable assets acquired and liabilities Cash and cash equivalents 5.1 Receivables 3.7 Inventory 10.5 Prepaids and other current assets 0.4 Property, plant and equipment 12.6 Deferred tax asset 0.9 Other non-current assets 5.0 Intangibles 55.1 Accounts payable ( 2.9 ) Accrued payroll ( 0.7 ) Accrued expenses and other current liabilities ( 2.5 ) Other long term liability ( 4.6 ) Total identifiable net assets acquired 82.6 Goodwill $ 55.5 |
Schedule of Intangible Assets Acquired | The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill, which is deductible for income tax purposes in the United States. The goodwill in this acquisition is attributable to the Company’s expectation to achieve synergies, such as the ability to cross-sell products, and the ability to optimize the cost structure. Intangible assets acquired consist of: Customer relationships $ 54.0 Trade name 1.1 Total intangible assets $ 55.1 |
Schedule of Unaudited Pro Forma Results of Operations | The following table sets forth the unaudited pro forma results of operations of the Company for the years ended December 31, 2021 and December 31, 2020 as if the Company had acquired Nook on January 1, 2020. The pro forma information contains the actual operating results of the Company and the Nook business, adjusted to include the pro forma impact of (i) additional depreciation expense as a result of estimated depreciation based on the fair value of fixed assets; (ii) additional expense as a result of the estimated amortization of identifiable intangible assets; (iii) additional interest expense associated with the borrowings used to finance the acquisition and (iv) inventory fair value adjustment. These pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the period or that may be obtained in the future. Pro forma (unaudited) Years Ended December 31, 2021 2020 Total revenues $ 1,940.6 $ 1,764.1 Net income (loss) 31.0 ( 30.0 ) Basic earnings per share $ 0.48 $ ( 0.46 ) Diluted earnings per share $ 0.47 $ ( 0.46 ) |
Lease Accounting (Tables)
Lease Accounting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Quantitative Information Regarding Lease Cost | Quantitative information regarding the Company’s leases is as follows: Years Ended December 31, 2022 2021 Lease cost (1) : Operating lease cost 13.9 16.1 Short-term lease cost 0.3 0.4 Total lease cost $ 14.2 $ 16.5 (1) Finance lease costs and variable lease costs are immaterial to the Company. The Company does no t have lease or sub-lease income. |
Quantitative Information Regarding Maturities of Lease Liabilities | Maturities of Lease Liabilities Operating Finance 2023 $ 13.7 $ 0.0 2024 9.9 0.0 2025 7.2 0.0 2026 5.0 0.0 2027 2.7 0.0 After 2027 9.2 — Total lease payments 47.7 0.3 Less interest ( 4.7 ) — Present value of lease liabilities $ 43.0 $ 0.3 |
Quantitative Information Regarding Other Information | Years Ended December 31, 2022 2021 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16.3 $ 16.4 Investing cash flows from finance leases $ 2.0 $ — Weighted average remaining lease term - finance leases (in years) 4.92 1.29 Weighted average remaining lease term - operating leases (in years) 5.15 5.03 Average discount rate - finance leases 4.83 % 5.07 % Average discount rate - operating leases 3.64 % 3.52 % |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: Years Ended December 31, 2022 2021 Raw materials $ 172.1 $ 124.1 Work in process 31.1 26.7 Finished goods 135.7 117.0 $ 338.9 $ 267.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: Years Ended December 31, 2022 2021 Land $ 40.3 $ 40.6 Buildings and improvements 135.2 141.3 Machinery and equipment 444.3 419.4 619.8 601.3 Less-Accumulated depreciation ( 344.7 ) ( 325.5 ) $ 275.1 $ 275.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill by Segment | The changes in the carrying value of goodwill by segment for the years ended December 31, 2022 and 2021 are as follows: Power Automation & Total Goodwill $ 452.4 $ 1,314.5 $ 1,766.9 Accumulated impairment loss ( 31.8 ) ( 139.1 ) ( 170.9 ) Balance January 1, 2021 $ 420.6 $ 1,175.4 $ 1,596.0 Impact of changes in foreign currency and other ( 9.6 ) ( 18.0 ) ( 27.6 ) Acquired goodwill related to the acquisition of Nook Industries — 55.6 55.6 Other (1) — ( 60.0 ) ( 60.0 ) Balance December 31, 2021 411.0 1,153.0 1,564.0 Impact of changes in foreign currency and other ( 7.2 ) ( 32.2 ) ( 39.4 ) Measurement period adjustments related to the acquisition of Nook Industries — ( 0.1 ) ( 0.1 ) Balance December 31, 2022 $ 403.8 $ 1,120.7 $ 1,524.5 (1) Reflects the goodwill of the JVS reporting unit, which is the disposal group classified as held for sale in 2021. Refer to Note 3 for further information. |
Gross Carrying Value and Accumulated Amortization of Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: December 31, 2022 December 31, 2021 Cost Accumulated Net Cost Accumulated Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks (1) $ 204.3 $ 0.3 $ 204.0 $ 212.2 $ — $ 212.2 Intangible assets subject to amortization: Customer relationships 928.2 240.3 687.9 960.2 206.4 753.8 Product technology and patents 142.4 63.9 78.5 141.4 50.2 91.2 Total intangible assets $ 1,274.9 $ 304.5 $ 970.4 $ 1,313.8 $ 256.6 $ 1,057.2 (1) While the majority of the Company's tradenames are considered indefinite lived intangible assets, tradenames acquired through the acquisition of Nook are subject to amortization. The net book value of Nook’s tradename was approximately $ 0.8 million as of December 31, 2022. |
Warranty Costs (Tables)
Warranty Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees [Abstract] | |
Changes in Carrying Amount of Accrued Product Warranty Costs | Changes in the carrying amount of accrued product warranty costs for each of the years ended December 31, 2022, 2021 and 2020 are as follows: Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 8.3 $ 9.6 $ 10.0 Accrued current period warranty expense 3.3 3.7 3.5 Payments and adjustments ( 2.1 ) ( 5.0 ) ( 3.9 ) Balance at end of year $ 9.5 $ 8.3 $ 9.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes by Domestic and Foreign Locations | Income (loss) before income taxes by domestic and foreign locations consists of the following: Years Ended December 31, 2022 2021 2020 Domestic $ 68.5 $ ( 143.8 ) $ ( 38.1 ) Foreign 120.8 151.6 42.1 Total $ 189.3 $ 7.8 $ 4.0 |
Components of Provision (Benefit) for Income Taxes | The components of the provision for income taxes consist of the following: Years Ended December 31, 2022 2021 2020 Current: Federal $ 45.8 $ 18.8 $ 14.5 State 6.7 3.8 2.2 Non-U.S. 41.9 39.6 41.1 94.4 62.2 57.8 Deferred: Federal ( 18.6 ) ( 70.8 ) ( 15.3 ) State ( 0.0 ) ( 6.1 ) ( 2.1 ) Non-U.S. ( 13.5 ) ( 5.2 ) ( 10.9 ) ( 32.1 ) ( 82.1 ) ( 28.3 ) Provision/(benefit) for income taxes $ 62.3 $ ( 19.9 ) $ 29.5 |
Reconciliation from Tax at U.S. Federal Statutory Rate to Company's Provision (Benefit) for Income Taxes | A reconciliation from tax at the U.S. federal statutory rate to the Company’s provision for income taxes is as follows: Years Ended December 31, 2022 2021 2020 Tax at U.S. federal income tax rate $ 39.7 $ 1.7 $ 0.9 State taxes, net of federal income tax effect 3.5 0.7 0.3 Other changes in tax rate 1.0 ( 0.2 ) ( 0.2 ) Outside basis difference 11.5 ( 11.5 ) — Foreign taxes 3.2 2.3 3.9 Global intangible low-taxed income 7.9 0.8 ( 2.1 ) Valuation allowance 0.1 0.5 0.5 Tax credits and incentives ( 3.1 ) ( 2.0 ) ( 2.5 ) Impairment charges ( 3.3 ) ( 14.5 ) 29.0 Other 1.8 2.3 ( 0.3 ) Provision/(benefit) for income taxes $ 62.3 $ ( 19.9 ) $ 29.5 |
Significant Components of Deferred Tax Assets and Liabilities | Years Ended December 31, 2022 2021 Deferred tax assets: Post-retirement obligations $ 2.7 $ 5.7 Tax credits 1.1 1.8 Expenses not currently deductible 37.1 28.7 Net operating loss carryover 6.5 6.0 Debt and derivative instruments 1.4 8.6 Operating lease liabilities 9.9 12.1 Other 2.2 15.2 Total deferred tax assets 60.9 78.1 Valuation allowance for deferred tax assets ( 4.2 ) ( 4.3 ) Net deferred tax assets 56.7 73.8 Deferred tax liabilities: Property, plant and equipment 19.7 35.7 Intangible assets 217.8 256.6 Goodwill 11.2 9.9 Operating lease right of use asset 9.7 11.6 Other 7.6 8.2 Total deferred liabilities 266.0 322.0 Net deferred tax liabilities $ 209.3 $ 248.2 |
Pension and Other Employee Be_2
Pension and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Reconciliation of Benefit Obligation, Fair Value of Plan Assets and Funded Status of Respective Defined Benefit (Pension) and Postretirement Benefit Plans | The following tables represent the reconciliation of the benefit obligation, fair value of plan assets and funded status of the respective defined benefit (pension) plans as of December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Change in benefit obligation: Obligation at beginning of year $ 43.2 $ 48.3 $ 42.2 Service cost 0.6 0.7 0.7 Interest cost 0.3 0.2 0.3 Contributions 0.2 0.2 0.2 Actuarial (gains) losses ( 9.6 ) ( 0.6 ) 2.4 Amendments — ( 0.7 ) 0.9 Foreign exchange effect ( 1.7 ) ( 2.7 ) 4.0 Benefits paid ( 2.0 ) ( 2.2 ) ( 2.4 ) Obligation at end of year $ 31.0 $ 43.2 $ 48.3 Change in plan assets: Fair value of plan assets, beginning of year $ 13.3 $ 12.9 $ 11.4 Actual return on plan assets 0.8 1.2 0.6 Contributions 0.4 0.5 0.6 Foreign exchange effect ( 0.1 ) ( 0.5 ) 1.1 Benefits paid ( 0.7 ) ( 0.8 ) ( 0.8 ) Fair value of plan assets, end of year $ 13.7 $ 13.3 $ 12.9 Unfunded status 17.3 29.9 35.4 Amounts recognized in the balance sheet consist of: Total non-current liabilities $ 17.3 $ 29.9 $ 35.4 |
Key Economic Assumptions Used in Computation of Respective Benefit Obligations | The key economic assumptions used in the computation of the respective benefit obligations at December 31, 2022, 2021 and 2020, presented below are as follows: Non-US Pension Benefits 2022 2021 2020 Discount rate 3.24 % 0.67 % 0.61 % Rate of compensation increase 1.28 % 2.02 % 2.10 % |
Components of Net Periodic Benefit Cost | The following table represents the components of the net periodic benefit cost associated with the respective plans: Pension Benefits Non-US Plans Years Ended December 31, 2022 2021 2020 Service cost $ 0.6 $ 0.7 $ 0.7 Interest cost 0.3 0.2 0.3 Expected return on plan assets ( 0.4 ) ( 0.4 ) ( 0.5 ) Amortization of actuarial losses and prior year service costs 0.0 0.6 0.4 Net periodic benefit cost $ 0.5 $ 1.1 $ 0.9 |
Economic Assumptions Used in Computation of Respective Net Periodic Benefit Cost | The key economic assumptions used in the computation of the respective net periodic benefit cost for the periods presented above are as follows: Pension Benefits Non-US Plan Years Ended December 31, 2022 2021 2020 Discount rate 6.63 % 2.66 % 1.86 % Rate of compensation increase 2.13 % 2.60 % 2.63 % Expected return on plan assets 3.15 % 3.40 % 3.70 % |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2022, 2021 and 2020 consist of the following: Years Ended December 31, 2022 2021 2020 Unrecognized actuarial (loss) gain $ 6.0 $ ( 2.1 ) $ ( 4.2 ) Unrecognized prior service credit 0.8 1.0 0.5 Accumulated other comprehensive (loss) income (net of ($ 1.4 million), $ 0.8 million and $ 1.0 million of tax (loss)/benefit, respectively) $ 6.8 $ ( 1.1 ) $ ( 3.7 ) Other changes recognized in other comprehensive income (loss) in the years ended December 31, 2022, 2021 and 2020 were as follows: Years Ended December 31, 2022 2021 2020 Incurred net actuarial (loss) gain $ 7.9 $ 1.3 $ ( 2.6 ) Amortization of prior service credit ( 0.1 ) — ( 0.1 ) Amortization of net actuarial (loss) gain 0.1 0.6 0.5 Settlement recognition of net actuarial (loss) — 0.7 — Total recognized in accumulated other comprehensive (loss) income (net of $( 2.2 million), ($ 0.6 million) and $ 0.5 million) of tax (loss)/benefit, respectively) $ 7.9 $ 2.6 $ ( 2.2 ) |
Schedule of Fair Value of Pension Plan Assets | The fair value of the Company’s pension plan assets at December 31, 2022, 2021 and 2020 by asset category is as follows: Years Ended December 31, 2022 2021 2020 Asset Category: Cash and cash equivalents (Level 1) $ 0.7 $ 1.0 $ 0.8 Fixed income (Level 1) 3.2 3.8 3.8 Investment grade (Level 2) 4.5 4.3 4.4 Other private investments (Level 3) 5.3 4.2 3.9 Total assets at fair value $ 13.7 $ 13.3 $ 12.9 |
Summary of Amounts of Expected Benefit Payments | The following table provides the amounts of expected benefit payments, which are made from the plans’ assets and includes the participants’ share of the costs, which is funded by participant contributions. The amounts in the table are actuarially determined and reflect the Company’s best estimate given its current knowledge; actual amounts could be materially different. Pension Expected benefit payments (from plan assets) 2023 $ 1.9 2024 2.5 2025 1.8 2026 1.7 2027 1.8 Thereafter 7.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Outstanding Debt Obligations | Years Ended December 31, 2022 2021 Debt: Term loan $ 390.0 $ 400.0 Revolver 265.0 605.0 Notes 383.7 400.0 Mortgages and other 7.2 9.2 Finance leases 0.3 0.1 Total gross debt 1,046.2 1,414.3 Less: debt discount and deferred financing costs ( 1.7 ) ( 2.2 ) Total debt, net of debt discount and deferred financing costs 1,044.5 1,412.1 Less current portion of long-term debt ( 20.4 ) ( 11.1 ) Total long-term debt $ 1,024.1 $ 1,401.0 |
Maturities on Long-Term Borrowings | Maturities on Long-Term Borrowings Maturities on long-term borrowings, excluding finance leases and debt issuance costs, are as follows: Amount 2023 $ 20.4 2024 20.2 2025 20.2 2026 978.7 2027 — Thereafter 6.4 Total $ 1,045.9 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Fair Value of Valuation Assumptions | The fair value of each stock option granted was estimated on the date of grant using the Black-Scholes valuation model that uses the following weighted-average assumptions: Years Ended December 31, 2022 2021 Expected term (in years) 6.3 - 6.5 6.0 - 6.5 Expected volatility factor 44.20 % - 43.71 % 43.11 % - 42.16 % Risk free interest rate 1.86 % - 1.87 % 0.66 % - 0.75 % Expected dividend yield 1.25 % 0.80 % - 0.82 % |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the Company’s plan for the year ended December 31, 2022: Weighted Options Weighted-average Aggregate Outstanding at January 1, 2022 500.0 $ 39.26 Granted 176.2 45.05 Outstanding at December 31, 2022 7.6 676.2 $ 40.77 $ 12.8 Exercisable at December 31, 2022 7.0 415.0 $ 37.53 $ 9.2 Unvested and expected to vest at December 31, 2022 8.4 245.2 $ 45.86 $ 3.4 |
Summary of Restricted Stock Unit Activity | The following table summarizes the Restricted Stock Unit (“RSU”) activity under the Company’s plan for the year ended December 31, 2022: Shares Weighted-average Aggregate Unvested at January 1, 2022 420.5 $ 42.21 Granted 229.9 44.38 Vested ( 212.4 ) 40.34 Canceled/Forfeited ( 63.1 ) 45.70 Unvested at December 31, 2022 374.9 $ 44.11 $ 22.4 |
Summary of Performance Share Awards Activity | Shares Weighted-average Aggregate Unvested at January 1, 2022 286.5 $ 40.23 Granted 132.8 45.45 Vested ( 232.1 ) 33.09 Unvested at December 31, 2022 187.2 $ 51.29 $ 11.2 |
Performance Share Awards | |
Summary of Fair Value of Valuation Assumptions | The fair value of PSAs is determined utilizing the Monte Carlo simulation model. The following weighted-average assumptions were used in the Monte Carlo simulation model, which were based on historical data and standard industry valuation practices and methodology: Years Ended December 31, 2022 2021 PSA fair value per share $ 45.45 $ 64.43 Expected volatility factor 57.27 % 55.85 % Risk free interest rate 1.64 % 0.18 % Expected dividend yield 0.00 % 0.00 % |
Restructuring, Asset Impairme_2
Restructuring, Asset Impairment, and Transition Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of Accrued Restructuring Costs | The following table is a reconciliation of the accrued restructuring costs between January 1, 2020 and December 31, 2022. 2017 Altra 2019 Altra Total All Balance at January 1, 2020 $ 1.5 $ 2.6 $ 4.1 Restructuring expense incurred 0.5 6.9 7.4 Cash payments ( 1.5 ) ( 7.7 ) ( 9.2 ) Balance at December 31, 2020 0.5 1.8 2.3 Restructuring expense incurred — 3.0 3.0 Cash payments ( 0.5 ) ( 4.3 ) ( 4.8 ) Balance at December 31, 2021 — 0.5 0.5 Restructuring expense incurred — 5.2 5.2 Cash payments — ( 2.2 ) ( 2.2 ) Balance at December 31, 2022 $ — $ 3.5 $ 3.5 |
Reconciliation of Restructuring Expense by Segment | The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2022. 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 4.0 $ 4.0 Automation & Specialty — 1.2 1.2 Expense for the year ending December 31, 2022 $ — $ 5.2 $ 5.2 The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2021. 2017 Altra 2019 Altra Total All Power Transmission Technologies $ — $ 1.8 $ 1.8 Automation & Specialty — 1.2 1.2 Expense for the year ending December 31, 2021 $ — $ 3.0 $ 3.0 The following table is a reconciliation of restructuring expense by segment for the year ending December 31, 2020. 2017 Altra 2019 Altra Total All Power Transmission Technologies $ 0.5 $ 4.2 $ 4.7 Automation & Specialty — 2.7 2.7 Expense for the year ending December 31, 2020 $ 0.5 $ 6.9 $ 7.4 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Financial Information and Reconciliation of Segments Revenue to Consolidated Revenue | Segment financial information and a reconciliation of segment results to consolidated results follows: Year Ended December 31, 2022 2021 2020 Net Sales: Power Transmission Technologies $ 985.6 $ 924.8 $ 818.6 Automation & Specialty 965.5 979.0 911.8 Inter-segment eliminations ( 5.6 ) ( 4.0 ) ( 4.4 ) Net sales $ 1,945.5 $ 1,899.8 $ 1,726.0 Income from operations: Segment earnings: Power Transmission Technologies (1) $ 136.8 $ 128.6 $ 97.5 Automation & Specialty (2) 136.0 ( 8.3 ) ( 10.4 ) Corporate (3) ( 27.2 ) ( 19.9 ) ( 2.2 ) Restructuring and consolidation costs ( 5.2 ) ( 3.0 ) ( 7.4 ) Income from operations 240.4 97.4 77.5 Other non-operating (income) expense: Interest expense, net 51.5 94.5 72.1 Other non-operating expense (income), net ( 0.4 ) ( 4.9 ) 1.4 51.1 89.6 73.5 Income before income taxes 189.3 7.8 4.0 (Benefit)/Provision for income taxes 62.3 ( 19.9 ) 29.5 Net income/(loss) $ 127.0 $ 27.7 $ ( 25.5 ) (1) In 2022, the Company recorded a non-cash impairment charge of $ 3.0 million related to a building expected to be sold upon the closing of its facility in Dessau, Germany. The asset held for sale is part of “Prepaid expenses and Other current assets” in the consolidated balance sheet. (2) The Company recorded non-cash impairment charges of $ 10.2 million and $ 142.4 million in 2022 and 2021, respectively, at the JVS reporting unit related to the held for sale classification. In 2020, the Company recorded non-cash impairment charges of $ 8.4 million and $ 139.1 million for indefinite-lived intangible assets and goodwill, respectively, at the JVS reporting unit. (3) Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to the corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs and acquisition related expenses. |
Reconciliation of Segment Assets to Consolidated Assets | Selected information by segment (continued) Years Ended December 31, 2022 2021 2020 Depreciation and amortization: Power Transmission Technologies $ 28.0 $ 31.5 $ 32.9 Automation & Specialty 63.6 88.2 91.5 Corporate 2.6 2.6 3.2 Total depreciation and amortization $ 94.2 $ 122.3 $ 127.6 Years Ended December 31, 2022 2021 Total assets: Power Transmission Technologies $ 1,075.0 $ 1,069.4 Automation & Specialty 2,511.2 2,879.2 Corporate (1) 90.4 182.0 Total assets $ 3,676.6 $ 4,130.6 (1) Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, property, plant and equipment and deferred financing costs. |
Net Sales to Third Parties by Geographic Region | Net Sales Property, Plant and Years Ended December 31, Years Ended December 31, 2022 2021 2020 2022 2021 North America (primarily U.S.) $ 1,124.2 $ 1,018.3 $ 914.9 $ 160.4 $ 134.6 Europe excluding Germany 344.8 341.9 289.3 47.4 48.5 Germany 209.5 200.0 185.8 45.5 55.4 China 148.0 222.9 222.5 7.0 24.7 Asia and other (excluding China) 119.0 116.7 113.5 14.8 12.6 Total $ 1,945.5 $ 1,899.8 $ 1,726.0 $ 275.1 $ 275.8 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 26, 2022 USD ($) $ / shares | May 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Country | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Organization And Nature Of Business [Line Items] | ||||||
Number of countries in which the company has production facilities | Country | 17 | |||||
Advertising costs | $ 7.2 | $ 6 | $ 5 | |||
Tax benefit sustainable | greater than 50% | |||||
Non-cash impairment charges | $ 3 | |||||
Unrealized holding gain recognized | 0.7 | |||||
Merger Agreement [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Costs in connection with proposed merger | $ 9.9 | |||||
Merger Agreement [Member] | Regal Rexnord [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Restricted shares converted in cash without interest tax withholding | $ / shares | $ 62 | |||||
Payments for parent termination fee | $ 100 | |||||
Parent reverse termination fee | $ 200 | |||||
Minimum [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Royalty rate indication based on return as a percentage of revenue | 1% | |||||
Minimum [Member] | Product Technology, Patents and Customer Relationships [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Amortization period | 4 years | |||||
Maximum [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Royalty rate indication based on return as a percentage of revenue | 2% | |||||
Maximum [Member] | Product Technology, Patents and Customer Relationships [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Amortization period | 29 years | |||||
MTEK [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Minority equity interest in a privately held manufacturing software company | $ 4.6 | $ 5 | ||||
Unrealized holding gain recognized | $ 0.7 | |||||
Notes [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Debt | $ 383.7 | 400 | ||||
Estimated fair value | 384.7 | |||||
Altra Credit Agreement [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Debt | 390 | $ 400 | ||||
Altra Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Estimated fair value | 265 | |||||
Altra Credit Agreement [Member] | Term Loan Facility [Member] | ||||||
Organization And Nature Of Business [Line Items] | ||||||
Debt | $ 390 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Reconciliation of Basic to Diluted Shares Outstanding (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Shares used in net income per common share - basic | 65.1 | 64.8 | 64.6 |
Effect of dilutive shares | 0.3 | 0.6 | |
Shares used in net income per common share - diluted | 65.4 | 65.4 | 64.6 |
Shares excluded as their inclusion would be anti-dilutive | 0.2 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Depreciation and Estimated Useful Life of Property, Plant and Equipment, Including Finance Leases (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings and Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 45 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Finance Leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | Life of lease |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Reconciliation of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss) by Component | $ (11) | ||
Beginning balance | 1,985.1 | $ 1,996.7 | $ 1,922.3 |
Change in fair value of interest rate swap, net of tax | (11.9) | ||
Reclassification of interest rate swap, net of tax | 21.5 | 6.9 | |
Pension & other post retirement benefit obligation adjustment, net of tax | 7.4 | 3.3 | (2.6) |
Reclassification adjustment of pension plan, net of tax | 0.1 | 0.6 | 0.4 |
Foreign currency translation adjustment | (103.5) | (57.5) | 87 |
Change in fair value of net investment hedge, net of tax | 31.2 | ||
Net current-period other comprehensive income/(loss) | (96) | (32.1) | 111 |
Accumulated Other Comprehensive Income (Loss) by Component | (107) | (11) | |
Ending balance | 2,002.4 | 1,985.1 | 1,996.7 |
Gains and (Losses) on Cash Flow Hedges [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss) by Component | (21.5) | (16.5) | |
Change in fair value of interest rate swap, net of tax | (11.9) | ||
Reclassification of interest rate swap, net of tax | 21.5 | 6.9 | |
Net current-period other comprehensive income/(loss) | 21.5 | (5) | |
Accumulated Other Comprehensive Income (Loss) by Component | (21.5) | ||
Pension & Other Post Retirement Benefit Plans [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss) by Component | 0.2 | (3.7) | (1.5) |
Pension & other post retirement benefit obligation adjustment, net of tax | 7.4 | 3.3 | (2.6) |
Reclassification adjustment of pension plan, net of tax | 0.1 | 0.6 | 0.4 |
Net current-period other comprehensive income/(loss) | 7.5 | 3.9 | (2.2) |
Accumulated Other Comprehensive Income (Loss) by Component | 7.7 | 0.2 | (3.7) |
Cumulative Foreign Currency Translation Adjustment [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss) by Component | (11.2) | 46.3 | (71.9) |
Foreign currency translation adjustment | (103.5) | (57.5) | 87 |
Change in fair value of net investment hedge, net of tax | 31.2 | ||
Net current-period other comprehensive income/(loss) | (103.5) | (57.5) | 118.2 |
Accumulated Other Comprehensive Income (Loss) by Component | (114.7) | (11.2) | 46.3 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (11) | 21.1 | (89.9) |
Ending balance | $ (107) | $ (11) | $ 21.1 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 Channel | |
Revenue from Contract with Customer [Abstract] | |
Number of distribution channels | 3 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregates Revenue for Each Reportable Segment and Geographic Region (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 1,945.5 | $ 1,899.8 | $ 1,726 |
North America (primarily U.S.) [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,124.2 | 1,018.3 | 914.9 |
Europe Excluding Germany [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 344.8 | 341.9 | 289.3 |
Germany [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 209.5 | 200 | 185.8 |
China [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 148 | 222.9 | 222.5 |
Asia And Other (Excluding China) [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 119 | 116.7 | 113.5 |
Operating Segments [Member] | Power Transmission Technologies [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 985.6 | 924.8 | 818.6 |
Operating Segments [Member] | Automation & Specialty [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 965.5 | 979 | 911.8 |
Intersegment Eliminations [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ (5.6) | $ (4) | $ (4.4) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Opening and Closing Balances of Current Contract Liability (Detail) - ASU 2014-09 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Beginning balance | $ 13.5 | $ 10.3 |
Closing balance | 16.9 | 13.5 |
Increase | $ 3.4 | $ 3.2 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Apr. 08, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||||
Amount borrowed to finance acquisition | $ 15 | $ 610 | $ 100 | |||
Net cash consideration received | 321.7 | |||||
Asset held for sale impairment charge | 3 | |||||
Impairment charge | 13.2 | 142.4 | $ 147.5 | |||
Measurement period adjustments related to the Nook acquisition | (0.1) | |||||
Jacobs Vehicle Systems (JVS) Divestiture [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Divestiture of issued and outstanding interest of entities, selling price | $ 325 | |||||
Transaction Costs Related to Divestiture | 8.6 | |||||
Net cash consideration received | $ 321.7 | |||||
Jacobs Vehicle Systems (JVS) Divestiture [Member] | Held for Sale [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Non-cash goodwill impairment charge | $ 60 | |||||
Asset held for sale impairment charge | $ 10.2 | 82.4 | ||||
Impairment charge | 142.4 | |||||
Nook Industries, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date of acquisition | Dec. 31, 2021 | |||||
Aggregate purchase price | $ 138.1 | $ 138.1 | ||||
Cash post-closing adjustment | 124.8 | |||||
Cash acquired | 5.1 | $ 5.1 | 5.1 | $ 5.1 | ||
Noncontingent purchase price holdback | 8.2 | |||||
Measurement period adjustments related to the Nook acquisition | $ (0.1) | |||||
Nook Industries, LLC [Member] | Revolving Credit Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amount borrowed to finance acquisition | 130 | |||||
Nook Industries, LLC [Member] | Accrued Expenses and Other Liabilities [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Noncontingent purchase price holdback | $ 8.2 | |||||
Nook Industries, LLC [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 18 years | |||||
Nook Industries, LLC [Member] | Trade Name [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 4 years |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Purchase Price Allocation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Recognized identifiable assets acquired and liabilities assumed: | |||
Goodwill | $ 1,564 | $ 1,524.5 | $ 1,596 |
Nook Industries, LLC [Member] | |||
Consideration transferred: | |||
Total cash consideration | 129.9 | ||
Purchase price holdback | 8.2 | ||
Fair value of consideration transferred | 138.1 | 138.1 | |
Recognized identifiable assets acquired and liabilities assumed: | |||
Cash and cash equivalents | $ 5.1 | 5.1 | |
Receivables | 3.7 | ||
Inventory | 10.5 | ||
Prepaids and other current assets | 0.4 | ||
Property, plant and equipment | 12.6 | ||
Deferred tax asset | 0.9 | ||
Other non-current assets | 5 | ||
Intangibles | 55.1 | ||
Accounts payable | (2.9) | ||
Accrued payroll | (0.7) | ||
Accrued expenses and other current liabilities | (2.5) | ||
Other long term liability | (4.6) | ||
Total identifiable net assets assumed | 82.6 | ||
Goodwill | $ 55.5 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Schedule of Intangible Assets Acquired (Detail) - Nook Industries, LLC [Member] $ in Millions | Dec. 31, 2022 USD ($) |
Intangible assets acquired consist of: | |
Customer relationships | $ 54 |
Trade name | 1.1 |
Total intangible assets | $ 55.1 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Schedule of Unaudited Pro Forma Results of Operations (Detail) - Nook Industries, LLC [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 1,940.6 | $ 1,764.1 |
Net income (loss) | $ 31 | $ (30) |
Basic earnings per share | $ 0.48 | $ (0.46) |
Diluted earnings per share | $ 0.47 | $ (0.46) |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Schedule of Assets and Liabilities of JVS Business Classified as Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Trade receivables | $ 244.6 | $ 224.5 |
Inventories | 338.9 | 267.8 |
Prepaid expenses and other current assets | 35.1 | 40.4 |
Property, plant and equipment, net | 275.1 | 275.8 |
Intangible assets, net | 970.4 | 1,057.2 |
Other assets | 21.3 | 13.5 |
Total assets | 3,676.6 | 4,130.6 |
Current Liabilities | ||
Accounts payable | 165.8 | 173.3 |
Deferred tax liabilities | 216.8 | 250.5 |
Other liabilities | $ 6.3 | 7.3 |
JVS Divestiture [Member] | Held for Sale [Member] | ||
Current Assets | ||
Trade receivables | 11.3 | |
Inventories | 16.3 | |
Prepaid expenses and other current assets | 2.3 | |
Property, plant and equipment, net | 64.6 | |
Intangible assets, net | 364.5 | |
Other assets | 0.7 | |
Impairment on carrying value | (82.4) | |
Total assets | 377.3 | |
Current Liabilities | ||
Accounts payable | 20.8 | |
Other current liabilities | 9.8 | |
Deferred tax liabilities | 22.3 | |
Other liabilities | 0.1 | |
Liabilities, Total | $ 53 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Schedule of Assets and Liabilities of JVS Business Classified as Held for Sale (Parenthetical) (Details) $ in Millions | Dec. 31, 2021 USD ($) |
JVS Divestiture [Member] | Held for Sale [Member] | |
Business Acquisition [Line Items] | |
Favorable cumulative foreign currency translation adjustment and accumulated other post retirement benefit obligation gains | $ 10.8 |
Lease Accounting - Additional I
Lease Accounting - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right-of-use ("ROU") assets for operating and finance leases | $ 46 | $ 50.1 |
Lease liabilities for operating and finance leases | $ 43.3 | $ 52 |
Lease Accounting - Quantitative
Lease Accounting - Quantitative Information Regarding Lease Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease cost: | ||
Operating lease cost | $ 13.9 | $ 16.1 |
Short-term lease cost | 0.3 | 0.4 |
Total lease cost | $ 14.2 | $ 16.5 |
Lease Accounting - Quantitati_2
Lease Accounting - Quantitative Information Regarding Lease Cost (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Lease or sublease income | $ 0 | $ 0 |
Lease Accounting - Quantitati_3
Lease Accounting - Quantitative Information Regarding Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Maturities of Lease Liabilities, Operating Leases | ||
2023, Operating Leases | $ 13.7 | |
2024, Operating Leases | 9.9 | |
2025, Operating Leases | 7.2 | |
2026, Operating Leases | 5 | |
2027, Operating Leases | 2.7 | |
After 2027, Operating Leases | 9.2 | |
Total lease payments, Operating Leases | 47.7 | |
Less interest, Operating Leases | (4.7) | |
Present value of lease liabilities, Operating Leases | 43 | |
Maturities of Lease Liabilities, Finance Leases | ||
2023, Finance Leases | 0 | |
2024, Finance Leases | 0 | |
2025, Finance Leases | 0 | |
2026, Finance Leases | 0 | |
2027, Finance Leases | 0 | |
Total lease payments, Finance Leases | 0.3 | |
Present value of lease liabilities, Finance Leases | $ 0.3 | $ 0.1 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Lease Accounting - Quantitati_4
Lease Accounting - Quantitative Information Regarding Other Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 16.3 | $ 16.4 |
Investing cash flows from finance leases | $ 2 | |
Weighted average remaining lease term - finance leases (in years) | 4 years 11 months 1 day | 1 year 3 months 14 days |
Weighted average remaining lease term - operating leases (in years) | 5 years 1 month 24 days | 5 years 10 days |
Average discount rate - finance leases | 4.83% | 5.07% |
Average discount rate - operating leases | 3.64% | 3.52% |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 172.1 | $ 124.1 |
Work in process | 31.1 | 26.7 |
Finished goods | 135.7 | 117 |
Inventories, net | $ 338.9 | $ 267.8 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 619.8 | $ 601.3 |
Less-Accumulated depreciation | (344.7) | (325.5) |
Property, plant and equipment, net | 275.1 | 275.8 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 40.3 | 40.6 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 135.2 | 141.3 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 444.3 | $ 419.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 39 | $ 51.9 | $ 57.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | $ 1,524.5 | $ 1,564 | $ 1,596 | |
Intangible assets, carrying value | 970.4 | 1,057.2 | ||
Amortization of intangible assets | $ 55.2 | $ 70.4 | 69.8 | |
Weighted average estimated useful life of intangible assets | 14 years | |||
Estimated amortization expense, year 2023 | $ 54 | |||
Estimated amortization expense, year 2024 | 53.6 | |||
Estimated amortization expense, year 2025 | 53 | |||
Estimated amortization expense, year 2026 | 51.8 | |||
Estimated amortization expense, year 2027 | 51.8 | |||
Estimated amortization expense, thereafter | $ 503 | |||
Customer Relationships, Product Technology and Patents [Member] | Minimum [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Amortization period | 4 years | |||
Customer Relationships, Product Technology and Patents [Member] | Maximum [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Amortization period | 29 years | |||
Portescap Reporting Unit [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | $ 162 | |||
Intangible assets, carrying value | $ 28 | |||
Portescap Reporting Unit [Member] | Maximum [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 10% | |||
All Other Reporting Units [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 10% | |||
Jacobs Vehicle Systems [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Non-cash impairment charges | $ 8.4 | 8.4 | ||
Indefinite-lived intangible assets and goodwill Impairment charges | $ 139.1 | $ 139.1 | ||
Stromag Reporting Units [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Intangible assets, carrying value | $ 19.1 | |||
Stromag Reporting Units [Member] | Maximum [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 10% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Value of Goodwill by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 1,766.9 | ||
Accumulated impairment loss | (170.9) | ||
Goodwill, Beginning balance | $ 1,564 | $ 1,596 | |
Impact of changes in foreign currency and other | (39.4) | (27.6) | |
Acquired goodwill related to the acquisition of Nook Industries | 55.6 | ||
Other | (60) | ||
Measurement period adjustments related to the Nook acquisition | (0.1) | ||
Goodwill, Ending balance | 1,524.5 | 1,564 | |
Power Transmission Technologies [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 452.4 | ||
Accumulated impairment loss | (31.8) | ||
Goodwill, Beginning balance | 411 | 420.6 | |
Impact of changes in foreign currency and other | (7.2) | (9.6) | |
Goodwill, Ending balance | 403.8 | 411 | |
Automation & Specialty [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 1,314.5 | ||
Accumulated impairment loss | $ (139.1) | ||
Goodwill, Beginning balance | 1,153 | 1,175.4 | |
Impact of changes in foreign currency and other | (32.2) | (18) | |
Acquired goodwill related to the acquisition of Nook Industries | 55.6 | ||
Other | (60) | ||
Measurement period adjustments related to the Nook acquisition | (0.1) | ||
Goodwill, Ending balance | $ 1,120.7 | $ 1,153 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross Carrying Value and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, cost | $ 1,274.9 | $ 1,313.8 |
Total intangible assets, accumulated amortization | 304.5 | 256.6 |
Total intangible assets, net | 970.4 | 1,057.2 |
Customer Relationships [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, cost | 928.2 | 960.2 |
Intangible assets subject to amortization, accumulated amortization | 240.3 | 206.4 |
Intangible assets subject to amortization, net | 687.9 | 753.8 |
Product Technology and Patents [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, cost | 142.4 | 141.4 |
Intangible assets subject to amortization, accumulated amortization | 63.9 | 50.2 |
Intangible assets subject to amortization, net | 78.5 | 91.2 |
Tradenames and Trademarks [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization, cost | 204.3 | 212.2 |
Intangible assets not subject to amortization, accumulated amortization | 0.3 | |
Intangible assets not subject to amortization, net | $ 204 | $ 212.2 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Other Intangible Assets (Parenthetical) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net book value of tradename | $ 0.8 |
Warranty Costs - Additional Inf
Warranty Costs - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Guarantor Obligations [Line Items] | |
Product warranty period | 3 months |
Maximum [Member] | |
Guarantor Obligations [Line Items] | |
Product warranty period | 2 years |
Warranty Costs - Changes in Car
Warranty Costs - Changes in Carrying Amount of Accrued Product Warranty Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance at beginning of year | $ 8.3 | $ 9.6 | $ 10 |
Accrued current period warranty expense | 3.3 | 3.7 | 3.5 |
Payments and adjustments | (2.1) | (5) | (3.9) |
Balance at end of year | $ 9.5 | $ 8.3 | $ 9.6 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes by Domestic and Foreign Locations (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Domestic | $ 68.5 | $ (143.8) | $ (38.1) | |
Foreign | 120.8 | 151.6 | 42.1 | |
Income before income taxes | $ 189.3 | $ 7.8 | $ 4 | $ 189.3 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 45.8 | $ 18.8 | $ 14.5 |
State | 6.7 | 3.8 | 2.2 |
Non-U.S. | 41.9 | 39.6 | 41.1 |
Current provision for income taxes | 94.4 | 62.2 | 57.8 |
Deferred: | |||
Federal | (18.6) | (70.8) | (15.3) |
State | 0 | (6.1) | (2.1) |
Non-U.S. | (13.5) | (5.2) | (10.9) |
Deferred provision for income taxes | (32.1) | (82.1) | (28.3) |
Provision/(benefit) for income taxes | $ 62.3 | $ (19.9) | $ 29.5 |
Income Taxes - Reconciliation f
Income Taxes - Reconciliation from Tax at U.S. Federal Statutory Rate to Company's Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. federal income tax rate | $ 39.7 | $ 1.7 | $ 0.9 |
State taxes, net of federal income tax effect | 3.5 | 0.7 | 0.3 |
Other changes in tax rate | 1 | (0.2) | (0.2) |
Outside basis difference | 11.5 | (11.5) | |
Foreign taxes | 3.2 | 2.3 | 3.9 |
Global intangible low-taxed income | 7.9 | 0.8 | (2.1) |
Valuation allowance | 0.1 | 0.5 | 0.5 |
Tax credits and incentives | (3.1) | (2) | (2.5) |
Impairment charges | (3.3) | (14.5) | 29 |
Other | 1.8 | 2.3 | (0.3) |
Provision/(benefit) for income taxes | $ 62.3 | $ (19.9) | $ 29.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unrecognized Tax Benefits [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Undistributed earnings in foreign subsidiaries | 62,800,000 | ||
Foreign earnings no longer considered permanently reinvested | 28,600,000 | ||
Unrecognized deferred tax amount for undistributed earnings from non-U.S. subsidiaries | 34,200,000 | ||
Federal and State [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss carry forwards | 13,700,000 | ||
Tax credits available | 1,500,000 | ||
Non U.S. [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
NOL and capital loss carryforwards | $ 21,600,000 | ||
Earliest Tax Year [Member] | Federal and State [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss carry forwards, expiration year | 2025 | ||
Tax credit, expiration year | 2022 | ||
Latest Tax Year [Member] | Federal and State [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss carry forwards, expiration year | 2038 | ||
Tax credit, expiration year | 2036 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Post-retirement obligations | $ 2.7 | $ 5.7 |
Tax credits | 1.1 | 1.8 |
Expenses not currently deductible | 37.1 | 28.7 |
Net operating loss carryover | 6.5 | 6 |
Debt and derivative instruments | 1.4 | 8.6 |
Operating lease liabilities | 9.9 | 12.1 |
Other | 2.2 | 15.2 |
Total deferred tax assets | 60.9 | 78.1 |
Valuation allowance for deferred tax assets | (4.2) | (4.3) |
Net deferred tax assets | 56.7 | 73.8 |
Deferred tax liabilities: | ||
Property, plant and equipment | 19.7 | 35.7 |
Intangible assets | 217.8 | 256.6 |
Goodwill | 11.2 | 9.9 |
Operating lease right of use asset | 9.7 | 11.6 |
Other | 7.6 | 8.2 |
Total deferred liabilities | 266 | 322 |
Net deferred tax liabilities | $ 209.3 | $ 248.2 |
Pension and Other Employee Be_3
Pension and Other Employee Benefits - Reconciliation of Benefit Obligation, Fair Value of Plan Assets and Funded Status of Respective Defined Benefit (Pension) and Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts recognized in the balance sheet consist of: | |||
Total non-current liabilities | $ 17.3 | $ 29.9 | |
Pension Benefits [Member] | |||
Change in benefit obligation: | |||
Obligation at beginning of year | 43.2 | 48.3 | $ 42.2 |
Service cost | 0.6 | 0.7 | 0.7 |
Interest cost | 0.3 | 0.2 | 0.3 |
Contributions | 0.2 | 0.2 | 0.2 |
Actuarial (gains) losses | (9.6) | (0.6) | 2.4 |
Amendments | (0.7) | 0.9 | |
Foreign exchange effect | (1.7) | (2.7) | 4 |
Benefits paid | (2) | (2.2) | (2.4) |
Obligation at end of year | 31 | 43.2 | 48.3 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 13.3 | 12.9 | 11.4 |
Actual return on plan assets | 0.8 | 1.2 | 0.6 |
Contributions | 0.4 | 0.5 | 0.6 |
Foreign exchange effect | (0.1) | (0.5) | 1.1 |
Benefits paid | (0.7) | (0.8) | (0.8) |
Fair value of plan assets, end of year | 13.7 | 13.3 | 12.9 |
Unfunded status | 17.3 | 29.9 | 35.4 |
Amounts recognized in the balance sheet consist of: | |||
Total non-current liabilities | $ 17.3 | $ 29.9 | $ 35.4 |
Pension and Other Employee Be_4
Pension and Other Employee Benefits - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | |
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Defined contribution plans, maximum employee contribution | 75% | |||
Contribution description | The Company makes matching contributions equal to half of the first six percent of eligible compensation contributed by each employee | |||
Percent of contribution made | 6% | |||
Defined benefit plan, supplementary contributions by employer | $ 12,500,000 | $ 11,800,000 | $ 11,400,000 | |
Accumulated other comprehensive (loss) income, tax | (1,400,000) | 800,000 | 1,000,000 | |
Accumulated other comprehensive (loss) income, Net of tax | (6,800,000) | 1,100,000 | 3,700,000 | |
Scenario Forecast [Member] | ||||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Unrecognized prior service cost included in accumulated other compressive income (loss) | $ 100,000 | |||
Prior service cost recognized in net periodic pension cost | 0 | |||
Actuarial losses included in accumulated other comprehensive income (loss) | 100,000 | |||
Actuarial losses recognized in net periodic pension cost | $ 0 | |||
U.S Pension Plan 2023 [Member] | ||||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Minimum cash contribution to pension plan | 0 | |||
U.S. Pension Plan 2024 [Member] | ||||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Minimum cash contribution to pension plan | 0 | |||
U.S. Pension Plan 2025 [Member] | ||||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Minimum cash contribution to pension plan | 0 | |||
U.S. Pension Plan 2026 [Member] | ||||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Minimum cash contribution to pension plan | 0 | |||
U.S. Pension Plan 2027 [Member] | ||||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Minimum cash contribution to pension plan | 0 | |||
A&S Business [Member] | ||||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Accumulated other comprehensive (loss) income, tax | (600,000) | |||
Accumulated other comprehensive (loss) income, Net of tax | 400,000 | |||
A&S Business [Member] | Post Retirement Benefit Plans [Member] | Not Funded [Member] | Other Long-Term Liabilities [Member] | ||||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||||
Accumulated benefit obligation | $ 2,700,000 | $ 4,200,000 | $ 6,000,000 |
Pension and Other Employee Be_5
Pension and Other Employee Benefits - Key Economic Assumptions Used in Computation of Respective Benefit Obligations (Detail) - Pension Benefits [Member] - Non-U.S. Plans [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | |||
Discount rate | 3.24% | 0.67% | 0.61% |
Rate of compensation increase | 1.28% | 2.02% | 2.10% |
Pension and Other Employee Be_6
Pension and Other Employee Benefits - Components of Net Periodic Benefit Cost (Detail) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.6 | $ 0.7 | $ 0.7 |
Interest cost | 0.3 | 0.2 | 0.3 |
Non-U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.6 | 0.7 | 0.7 |
Interest cost | $ 0.3 | $ 0.2 | $ 0.3 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Expected return on plan assets | $ (0.4) | $ (0.4) | $ (0.5) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Amortization of actuarial losses and prior year service costs | $ 0 | $ 0.6 | $ 0.4 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Net periodic benefit cost | $ 0.5 | $ 1.1 | $ 0.9 |
Pension and Other Employee Be_7
Pension and Other Employee Benefits - Economic Assumptions Used in Computation of Respective Net Periodic Benefit Cost (Detail) - Pension Benefits [Member] - Non-U.S. Plans [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Economic Assumptions Used In Measuring Of Fair Value Securitized Loans [Line Items] | |||
Discount rate | 6.63% | 2.66% | 1.86% |
Rate of compensation increase | 2.13% | 2.60% | 2.63% |
Expected return on plan assets | 3.15% | 3.40% | 3.70% |
Pension and Other Employee Be_8
Pension and Other Employee Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | |||
Unrecognized actuarial (loss) gain | $ 6 | $ (2.1) | $ (4.2) |
Unrecognized prior service credit | 0.8 | 1 | 0.5 |
Accumulated other comprehensive (loss) income (net of ($1.4 million), $0.8 million and $1.0 million of tax (loss)/benefit, respectively) | $ 6.8 | $ (1.1) | $ (3.7) |
Pension and Other Employee Be_9
Pension and Other Employee Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | |||
Accumulated other comprehensive (loss) income, Net of tax | $ (1.4) | $ 0.8 | $ 1 |
Pension and Other Employee B_10
Pension and Other Employee Benefits - Other Recognized Change in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Incurred net actuarial (loss) gain | $ 7.9 | $ 1.3 | $ (2.6) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Amortization of prior service credit | $ (0.1) | $ (0.1) | |
Amortization of net actuarial (loss) gain | 0.1 | $ 0.6 | 0.5 |
Settlement recognition of net actuarial (loss) | 0.7 | ||
Total recognized in accumulated other comprehensive (loss) income (net of $(2.2 million), ($0.6 million) and $0.5 million) of tax (loss)/benefit, respectively) | $ 7.9 | $ 2.6 | $ (2.2) |
Pension and Other Employee B_11
Pension and Other Employee Benefits - Other Recognized Change in Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Recognized in accumulated other comprehensive (loss) income, tax (loss)/ benefit | $ 2.2 | $ 0.6 | $ 0.5 |
Pension and Other Employee B_12
Pension and Other Employee Benefits - Schedule Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Total assets at fair value | $ 13.7 | $ 13.3 | $ 12.9 |
Fixed income [Member] | Level 1 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Total assets at fair value | 3.2 | 3.8 | 3.8 |
Other Private Investments [Member] | Level 3 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Total assets at fair value | 5.3 | 4.2 | 3.9 |
Investment grade [Member] | Level 2 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Total assets at fair value | 4.5 | 4.3 | 4.4 |
Cash and cash equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Total assets at fair value | $ 0.7 | $ 1 | $ 0.8 |
Pension and Other Employee B_13
Pension and Other Employee Benefits - Summary of Amounts of Expected Benefit Payments (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Defined Benefit Plan Expected Future Benefit Payments Maturity [Line Items] | |
2023 | $ 1.9 |
2024 | 2.5 |
2025 | 1.8 |
2026 | 1.7 |
2027 | 1.8 |
Thereafter | $ 7.9 |
Long-Term Debt - Outstanding De
Long-Term Debt - Outstanding Debt Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Finance leases | $ 0.3 | $ 0.1 |
Total gross debt | 1,046.2 | 1,414.3 |
Less: debt discount and deferred financing costs | (1.7) | (2.2) |
Total debt, net of debt discount and deferred financing costs | 1,044.5 | 1,412.1 |
Less current portion of long-term debt | (20.4) | (11.1) |
Total long-term debt | 1,024.1 | 1,401 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 390 | 400 |
Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 265 | 605 |
Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 383.7 | 400 |
Mortgages and Other [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 7.2 | $ 9.2 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Nov. 17, 2021 | Oct. 01, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 3,700,000 | |||
Finance lease obligations | $ 300,000 | 100,000 | ||
Borrowings under overdraft agreements | $ 0 | 0 | ||
Mortgages and Other Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Description about maturity date of debt instrument | The debt has interest rates that range from 1.0% to 2.5%, with various quarterly and monthly installments through 2028. | |||
Minimum [Member] | Mortgages and Other Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate percentage | 1% | |||
Maximum [Member] | Mortgages and Other Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate percentage | 2.50% | |||
Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from credit facilities | $ 880,000,000 | |||
Debt issuance costs | 3,700,000 | |||
Outstanding debt | $ 655,000,000 | |||
Letters of credit outstanding | $ 4,100,000 | $ 4,800,000 | ||
Credit Agreement [Member] | Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Maximum amount available | $ 400,000,000 | |||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Maximum amount available | $ 1,000,000,000 | |||
Notice provided to administrate agent of credit facility to draw amount | $ 480,000,000 | |||
Credit Agreement [Member] | Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Nov. 17, 2026 | |||
Debt instrument, description of variable rate basis | Interest on the amounts outstanding under the Credit Facilities is calculated using either a Base Rate or Eurocurrency Rate, plus the applicable margin. The applicable margins for Eurocurrency Loans are between 1.000% to 1.750%, and for Base Rate Loans are between 0.000% and 0.750%. The amounts of the margins are calculated based on the Total Leverage Ratio (as defined in the Credit Agreement). | |||
Line of credit facility, interest rate during period | 5.446% | |||
Amount available under credit facility | $ 730,900,000 | |||
Credit Agreement [Member] | Credit Facilities [Member] | Minimum [Member] | Eurocurrency Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margins for loans | 1% | |||
Credit Agreement [Member] | Credit Facilities [Member] | Minimum [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margins for loans | 0% | |||
Credit Agreement [Member] | Credit Facilities [Member] | Maximum [Member] | Eurocurrency Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margins for loans | 1.75% | |||
Credit Agreement [Member] | Credit Facilities [Member] | Maximum [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margins for loans | 0.75% | |||
2018 Credit Agreement [Member] | 2018 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum amount available | $ 1,340,000,000 | |||
2018 Credit Agreement [Member] | 2018 Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum amount available | 300,000,000 | |||
A&S Business [Member] | 6.125% Senior Notes Due 2026 [Member] | Newco [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, aggregate principal amount | $ 400,000,000 | |||
Debt instrument, interest rate percentage | 6.125% | |||
Debt instrument, maturity date | Oct. 01, 2026 | |||
Debt instrument, interest payment terms | The Notes will mature on October 1, 2026. Interest on the Notes accrues from October 1, 2018 and is payable semi-annually commencing on April 1, 2019. The Notes may be redeemed at the option of the issuer on or after October 1, 2023. | |||
Debt instrument, semi-annually, payable date | Apr. 01, 2019 | |||
Debt instrument, redemption, description | The Notes may be redeemed at the option of the issuer on or after October 1, 2023. | |||
Debt instrument, redemption period, start date | Oct. 01, 2023 | |||
Debt instrument, payment amount | $ 16,400,000 | |||
Debt instrument, repurchase amount | 16,300,000 | |||
Debt instrument, early termination premium | $ 100,000 |
Long-Term Debt - Maturities on
Long-Term Debt - Maturities on Long-Term Borrowings (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 20.4 |
2024 | 20.2 |
2025 | 20.2 |
2026 | 978.7 |
Thereafter | 6.4 |
Total | $ 1,045.9 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Apr. 26, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 01, 2018 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 | 120,000,000 | 90,000,000 | ||
Common stock, shares issued (in shares) | 65,279,961 | 64,923,539 | ||||
Common stock, shares outstanding (in shares) | 65,279,961 | 64,923,539 | ||||
Preferred Stock, shares authorized (in shares) | 10,000,000 | |||||
Preferred Stock, shares issued (in shares) | 0 | 0 | 0 | |||
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 | |||
Compensation expense | $ 15.3 | $ 15.7 | $ 13.2 | |||
Remaining compensation cost yet to be recognized | $ 19.9 | |||||
Remaining compensation cost yet to be recognized , period | 3 years | |||||
Stock repurchase program, expiration period | Dec. 31, 2024 | |||||
Share repurchased | 0 | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 300 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate fair value of awards | $ 8.6 | 9.9 | ||||
Performance Share Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate fair value of awards | $ 7.7 | $ 12.2 | ||||
Period for measuring performance objective | 3 years | |||||
2014 Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock available for delivery pursuant to the grant of awards (in shares) | 3,800,000 | |||||
2014 Plan [Member] | Restricted Shares and Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares for vesting period | 5 years |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Fair Value of Each Option Granted (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 1.25% | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 3 months 18 days | 6 years |
Expected volatility factor | 43.71% | 42.16% |
Risk free interest rate | 1.86% | 0.66% |
Expected dividend yield | 0.80% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 6 months | 6 years 6 months |
Expected volatility factor | 44.20% | 43.11% |
Risk free interest rate | 1.87% | 0.75% |
Expected dividend yield | 0.82% | |
Performance Share Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
PSA fair value per share | $ 45.45 | $ 64.43 |
Expected volatility factor | 57.27% | 55.85% |
Risk free interest rate | 1.64% | 0.18% |
Expected dividend yield | 0% | 0% |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Contractual Life in Years | 7 years 7 months 6 days |
Weighted Average Remaining Contractual Life in Years, options exercisable at December 31, 2022 | 7 years |
Weighted Average Remaining Contractual Life in Years, options unvested and expected to vest at December 31, 2022 | 8 years 4 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning balance | shares | 500,000 |
Options granted | shares | 176,200 |
Options outstanding, ending balance | shares | 676,200 |
Options exercisable at December 31, 2022 | shares | 415,000 |
Options unvested and expected to vest at December 31, 2022 | shares | 245,200 |
Weighted-average grant date fair value | |
Weighted-average grant date fair value, options beginning balance | $ / shares | $ 39.26 |
Weighted-average grant date fair value, options granted | $ / shares | 45.05 |
Weighted-average grant date fair value, options ending balance | $ / shares | 40.77 |
Weighted-average grant date fair value, options exercisable at December 31, 2022 | $ / shares | 37.53 |
Weighted-average grant date fair value, options unvested and expected to vest at December 31, 2022 | $ / shares | $ 45.86 |
Aggregate Intrinsic Value, options outstanding | $ | $ 12.8 |
Aggregate Intrinsic Value, options exercisable at December 31, 2022 | $ | 9.2 |
Aggregate Intrinsic Value, options unvested and expected to vest at December 31, 2022 | $ | $ 3.4 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Shares unvested, beginning balance | shares | 420,500 |
Shares granted | shares | 229,900 |
Shares vested | shares | (212,400) |
Shares canceled/forfeited | shares | (63,100) |
Shares unvested, ending balance | shares | 374,900 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 42.21 |
Weighted-average grant date fair value, shares granted | $ / shares | 44.38 |
Weighted-average grant date fair value, shares vested | $ / shares | 40.34 |
Weighted-average grant date fair value, shares canceled/forfeited | $ / shares | 45.70 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 44.11 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract] | |
Aggregate Intrinsic Value at December 31, 2022 | $ | $ 22.4 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Performance Share Awards Activity (Detail) - Performance Share Awards $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Shares unvested, beginning balance | shares | 286,500 |
Shares granted | shares | 132,800 |
Shares vested | shares | (232,100) |
Shares unvested, ending balance | shares | 187,200 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 40.23 |
Weighted-average grant date fair value, shares granted | $ / shares | 45.45 |
Weighted-average grant date fair value, shares vested | $ / shares | 33.09 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 51.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |
Aggregate Intrinsic Value at December 31, 2022 | $ | $ 11.2 |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) - Customer | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Sales contract payments due period | 30 days | ||
Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers representing over 10% of total sales | 0 | 0 | 0 |
Restructuring, Asset Impairme_3
Restructuring, Asset Impairment, and Transition Expenses - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 5.2 | $ 3 | $ 7.4 | |
Workforce Reductions [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 2 | 5 | ||
Consolidation and Relocation Costs [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 0.8 | 0.6 | ||
Other Restructuring Expense [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 0.2 | 1.3 | ||
2017 Altra Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 0 | 0 | 0.5 | |
2019 Altra Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 5.2 | $ 3 | $ 6.9 | |
Expected period to incur restructuring expense | 2 years | |||
2019 Altra Plan [Member] | Minimum [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Expected additional restructuring cost remaining | $ 1 | |||
2019 Altra Plan [Member] | Maximum [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Expected additional restructuring cost remaining | $ 2 | |||
2019 Altra Plan [Member] | Severance [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 5.2 |
Restructuring, Asset Impairme_4
Restructuring, Asset Impairment, and Transition Expenses - Reconciliation of Accrued Restructuring Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 0.5 | $ 2.3 | $ 4.1 |
Restructuring expense incurred | 5.2 | 3 | 7.4 |
Cash payments | (2.2) | (4.8) | (9.2) |
Ending Balance | 3.5 | 0.5 | 2.3 |
2017 Altra Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0.5 | 1.5 | |
Restructuring expense incurred | 0 | 0 | 0.5 |
Cash payments | (0.5) | (1.5) | |
Ending Balance | 0.5 | ||
2019 Altra Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0.5 | 1.8 | 2.6 |
Restructuring expense incurred | 5.2 | 3 | 6.9 |
Cash payments | (2.2) | (4.3) | (7.7) |
Ending Balance | $ 3.5 | $ 0.5 | $ 1.8 |
Restructuring, Asset Impairme_5
Restructuring, Asset Impairment, and Transition Expenses - Summary of Reconciliation of Restructuring Expense by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | $ 5.2 | $ 3 | $ 7.4 |
Operating Segments [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | 5.2 | 3 | 7.4 |
Operating Segments [Member] | Power Transmission Technologies [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | 4 | 1.8 | 4.7 |
Operating Segments [Member] | Automation & Specialty [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | 1.2 | 1.2 | 2.7 |
2017 Altra Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | 0 | 0 | 0.5 |
2017 Altra Plan [Member] | Operating Segments [Member] | Power Transmission Technologies [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | 0.5 | ||
2019 Altra Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | 5.2 | 3 | 6.9 |
2019 Altra Plan [Member] | Operating Segments [Member] | Power Transmission Technologies [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | 4 | 1.8 | 4.2 |
2019 Altra Plan [Member] | Operating Segments [Member] | Automation & Specialty [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense | $ 1.2 | $ 1.2 | $ 2.7 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2017 | Nov. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||||
Gain (loss) in AOCIL | $ 31.2 | ||||||
Cross Currency Interest Rate Swap [Member] | |||||||
Derivative [Line Items] | |||||||
Proceeds from cross-currency interest rate swaps upon termination | $ 56.2 | ||||||
Paid termination fees | 0.9 | ||||||
Gain (loss) in AOCIL | $ 19.8 | ||||||
Gain (loss) in AOCIL | 44.8 | $ 44.8 | 31.2 | ||||
AOCIL tax expense (benefit) | 11.4 | 11.4 | 9.9 | 3.6 | |||
Cross Currency Interest Rate Swap [Member] | Interest Income [Member] | |||||||
Derivative [Line Items] | |||||||
Cumulative translation adjustment recognized net interest income (expense), net amount | $ 3.3 | ||||||
Interest Rate Swap [Member] | |||||||
Derivative [Line Items] | |||||||
Paid termination fees | $ 0.1 | ||||||
Gain (loss) in AOCIL | (11.9) | (9.9) | |||||
AOCIL tax expense (benefit) | 3.8 | 1.7 | |||||
Maturity date of interest rate swap | Jan. 31, 2020 | ||||||
Fair value of swap | 34.7 | ||||||
Net interest expense | $ 0.1 | 11.5 | $ 3.3 | ||||
Non cash interest expense related to termination of interest rate swap | 9 | ||||||
Non cash interest expense net of tax related to termination of interest rate swap | $ 6.9 | ||||||
Interest Rate Swap [Member] | Altra Credit Agreement [Member] | |||||||
Derivative [Line Items] | |||||||
Non-cash interest expense from AOCIL to earnings | 25.7 | ||||||
Non-cash interest expense, net of tax from AOCIL to earnings | $ 21.5 | ||||||
Interest Rate Swap [Member] | Interest Expense [Member] | Altra Credit Agreement [Member] | |||||||
Derivative [Line Items] | |||||||
Unrealized loss in AOCIL | $ 14.9 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency accrual | $ 0 | $ 0 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Segment and Geographic Inform_4
Segment and Geographic Information - Segment Financial Information and Reconciliation of Segments Revenue to Consolidated Revenue (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 1,945.5 | $ 1,899.8 | $ 1,726 | |
Income from operations | 240.4 | 97.4 | 77.5 | |
Restructuring and consolidation costs | (5.2) | (3) | (7.4) | |
Interest expense, net | 51.5 | 94.5 | 72.1 | |
Other non-operating expense (income), net | (0.4) | (4.9) | 1.4 | |
Total other non-operating (income) expense, net | 51.1 | 89.6 | 73.5 | |
Income before income taxes | 189.3 | 7.8 | 4 | $ 189.3 |
(Benefit)/Provision for income taxes | 62.3 | (19.9) | 29.5 | |
Net income/(loss) | 127 | 27.7 | (25.5) | |
Operating Segments [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Restructuring and consolidation costs | (5.2) | (3) | (7.4) | |
Operating Segments [Member] | Power Transmission Technologies [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 985.6 | 924.8 | 818.6 | |
Income from operations | 136.8 | 128.6 | 97.5 | |
Restructuring and consolidation costs | (4) | (1.8) | (4.7) | |
Operating Segments [Member] | Automation & Specialty [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 965.5 | 979 | 911.8 | |
Income from operations | 136 | (8.3) | (10.4) | |
Restructuring and consolidation costs | (1.2) | (1.2) | (2.7) | |
Intersegment Eliminations [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (5.6) | (4) | (4.4) | |
Corporate [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Income from operations | $ (27.2) | $ (19.9) | $ (2.2) |
Segment and Geographic Inform_5
Segment and Geographic Information - Segment Financial Information and Reconciliation of Segments Revenue to Consolidated Revenue (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Non-cash impairment charges | $ 13.2 | $ 142.4 | $ 147.5 | |
Non-cash impairment charges | 3 | |||
Jacobs Vehicle Systems [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Non-cash impairment charges | $ 10.2 | $ 142.4 | ||
Non-cash impairment charges of indefinite-lived intangibles assets | $ 8.4 | 8.4 | ||
Non-cash goodwill impairment charge | $ 139.1 | $ 139.1 |
Segment and Geographic Inform_6
Segment and Geographic Information - Reconciliation of Segment Assets to Consolidated Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total depreciation and amortization | $ 94.2 | $ 122.3 | $ 127.6 |
Total assets | 3,676.6 | 4,130.6 | |
Corporate [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total depreciation and amortization | 2.6 | 2.6 | 3.2 |
Total assets | 90.4 | 182 | |
Power Transmission Technologies [Member] | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total depreciation and amortization | 28 | 31.5 | 32.9 |
Total assets | 1,075 | 1,069.4 | |
Automation & Specialty [Member] | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total depreciation and amortization | 63.6 | 88.2 | $ 91.5 |
Total assets | $ 2,511.2 | $ 2,879.2 |
Segment and Geographic Inform_7
Segment and Geographic Information - Net Sales to Third Parties by Geographic Region (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,945.5 | $ 1,899.8 | $ 1,726 |
Property, plant and equipment, net | 275.1 | 275.8 | |
North America (primarily U.S.) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,124.2 | 1,018.3 | 914.9 |
Property, plant and equipment, net | 160.4 | 134.6 | |
Europe Excluding Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 344.8 | 341.9 | 289.3 |
Property, plant and equipment, net | 47.4 | 48.5 | |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 209.5 | 200 | 185.8 |
Property, plant and equipment, net | 45.5 | 55.4 | |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 148 | 222.9 | 222.5 |
Property, plant and equipment, net | 7 | 24.7 | |
Asia And Other (Excluding China) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 119 | 116.7 | $ 113.5 |
Property, plant and equipment, net | $ 14.8 | $ 12.6 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 12 Months Ended | |||
Feb. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||||
Cash dividends declared (in USD per share) | $ 0.35 | $ 0.30 | $ 0.31 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared (in USD per share) | $ 0.09 | |||
Dividend declaration date | Feb. 01, 2023 | |||
Dividend payable date | Apr. 04, 2023 | |||
Dividend record date | Mar. 16, 2023 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||
Balance at Beginning of Period | $ 4.1 | $ 4.9 | $ 5.1 |
Additions | 0.4 | 0.1 | 0 |
Deductions | 0 | (0.9) | (0.2) |
Balance at End of Period | $ 4.5 | $ 4.1 | $ 4.9 |