Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'REXNORD CORPORATION | ' |
Entity Central Index Key | '0001439288 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 101,351,586 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $311.30 | $339 |
Receivables, net | 339.3 | 368.3 |
Inventories, net | 380.6 | 359.7 |
Other current assets | 52.2 | 53.8 |
Total current assets | 1,083.40 | 1,120.80 |
Property, plant and equipment, net | 435 | 440.9 |
Intangible assets, net | 589.5 | 592.6 |
Goodwill | 1,168.60 | 1,150.70 |
Insurance for asbestos claims | 36 | 36 |
Other assets | 41.9 | 42.5 |
Total assets | 3,354.40 | 3,383.50 |
Current liabilities: | ' | ' |
Current maturities of debt | 33.4 | 29 |
Trade payables | 198.6 | 241.1 |
Compensation and benefits | 52.1 | 61.4 |
Current portion of pension and postretirement benefit obligations | 5.1 | 5.8 |
Other current liabilities | 106.2 | 112.2 |
Total current liabilities | 395.4 | 449.5 |
Long-term debt | 1,938.90 | 1,943 |
Pension and postretirement benefit obligations | 145.7 | 147.7 |
Deferred income taxes | 219.7 | 207.1 |
Liability for asbestos claims | 36 | 36 |
Other liabilities | 46.7 | 38.1 |
Total liabilities | 2,782.40 | 2,821.40 |
Stockholders' equity: | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 1 | 1 |
Additional paid-in capital | 876.3 | 872.7 |
Retained deficit | -269.2 | -281.3 |
Accumulated other comprehensive loss | -29.5 | -23.8 |
Treasury stock at cost | -6.3 | -6.3 |
Total Rexnord stockholders' equity | 572.3 | 562.3 |
Non-controlling interest | -0.3 | -0.2 |
Total stockholders' equity | 572 | 562.1 |
Total liabilities and stockholders' equity | $3,354.40 | $3,383.50 |
Condensed_Colsolidated_Balance
Condensed Colsolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Common stock, par value | $0.01 | ' |
Common stock, shares authorized | 200,000,000 | ' |
Common stock, shares issued | 102,214,378 | 102,055,058 |
Preferred stock, par value | $0.01 | ' |
Preferred stock, shares authorized | 10,000,000 | ' |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 900,904 | 900,904 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $509.80 | $508.70 |
Cost of sales | 330.5 | 326.8 |
Gross profit | 179.3 | 181.9 |
Selling, general and administrative expenses | 104.8 | 106.6 |
Restructuring and other similar charges | 3.4 | 1.8 |
Amortization of intangible assets | 13.5 | 12.5 |
Income from operations | 57.6 | 61 |
Non-operating expense: | ' | ' |
Interest expense, net | -22.5 | -35 |
Loss on the extinguishment of debt | 0 | -4 |
Other expense, net | -1.3 | -6.2 |
Income from operations before income taxes | 33.8 | 15.8 |
Provision for income taxes | 21.8 | 2.2 |
Net income | 12 | 13.6 |
Non-controlling interest loss | -0.1 | -0.2 |
Net income attributable to Rexnord | $12.10 | $13.80 |
Net income per share: | ' | ' |
Basic (in dollars per share) | $0.12 | $0.14 |
Diluted (in dollars per share) | $0.11 | $0.14 |
Net income per share attributable to Rexnord: | ' | ' |
Basic (in dollars per share) | $0.12 | $0.14 |
Diluted (in dollars per share) | $0.12 | $0.14 |
Weighted-average number of shares outstanding | ' | ' |
Basic (in dollars per share) | 101,235 | 97,237 |
Effect of dilutive stock options (in dollars per share) | 3,294 | 3,192 |
Diluted (in dollars per share) | 104,529 | 100,429 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income attributable to Rexnord | $12.10 | $13.80 |
Other comprehensive loss: | ' | ' |
Foreign currency translation adjustments | -1.7 | -2.5 |
Unrealized loss on interest rate derivatives, net of tax | -3.7 | 0 |
Change in pension and other postretirement defined benefit plans, net of tax | -0.3 | -0.3 |
Other comprehensive loss, net of tax | -5.7 | -2.8 |
Non-controlling interest loss | -0.1 | -0.2 |
Total comprehensive income | $6.30 | $10.80 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Operating activities | ' | ' |
Net income | $12 | $13.60 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ' | ' |
Depreciation | 15.1 | 15 |
Amortization of intangible assets | 13.5 | 12.5 |
Amortization of deferred financing costs | 0.4 | 1 |
Loss on dispositions of property, plant and equipment | 0 | 0.4 |
Deferred income taxes | 14.4 | 0.8 |
Other non-cash (credits) charges | -0.1 | 1.4 |
Loss on debt extinguishment | 0 | 4 |
Stock-based compensation expense | 1.6 | 1.5 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | 19.8 | -2.8 |
Inventories | -19.3 | -12.8 |
Other assets | 1.5 | -2.7 |
Accounts payable | -43.2 | -5.8 |
Accruals and other | -9.3 | -53.4 |
Cash provided by (used for) operating activities | 6.4 | -27.3 |
Investing activities | ' | ' |
Expenditures for property, plant and equipment | -8.7 | -7.8 |
Acquisitions, net of cash | -27.7 | -4.4 |
Cash used for investing activities | -36.4 | -12.2 |
Financing activities | ' | ' |
Repayments of long-term debt | -4.9 | -1.9 |
Proceeds from borrowings of short-term debt | 4.6 | 5.3 |
Repayments of short-term debt | -0.1 | -150.6 |
Payment of deferred financing fees | 0 | -1.1 |
Proceeds from exercise of stock options | 0.4 | 0.3 |
Third party investment in non-controlling interest | 0 | 0.4 |
Excess tax benefit on exercise of stock options | 1.6 | 0.5 |
Cash provided by (used for) financing activities | 1.6 | -147.1 |
Effect of exchange rate changes on cash and cash equivalents | 0.7 | -2.6 |
Decrease in cash and cash equivalents | -27.7 | -189.2 |
Cash and cash equivalents at beginning of period | 339 | 524.1 |
Cash and cash equivalents at end of period | $311.30 | $334.90 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies | ' |
Basis of Presentation and Significant Accounting Policies | |
The unaudited condensed consolidated financial statements included herein have been prepared by Rexnord Corporation (“Rexnord” or the "Company"), in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. | |
In the opinion of management, the condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations for the interim periods. Results for the interim periods are not necessarily indicative of results that may be expected for the fiscal year ending March 31, 2015. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's fiscal 2014 Annual Report on Form 10-K. | |
The Company | |
Rexnord is a growth-oriented, multi-platform industrial company with what it believes are leading market shares and highly trusted brands that serve a diverse array of global end-markets. The Company's heritage of innovation and specification have allowed it to provide highly engineered, mission critical solutions to customers for decades and affords it the privilege of having long-term, valued relationships with market leaders. The Process & Motion Control platform designs, manufactures, markets and services specified, highly-engineered mechanical components used within complex systems where our customers' reliability requirements and cost of failure or downtime is extremely high. The Process & Motion Control product portfolio includes gears, couplings, industrial bearings, aerospace bearings and seals, FlatTop™ chain, engineered chain and conveying equipment. The Water Management platform designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade specification drainage products, flush valves and faucet products, backflow prevention pressure release valves, and PEX piping used primarily in non-residential construction end-markets and engineered valves and gates for the water and wastewater treatment market. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers in order to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The guidance specifies revenue should be recognized in the amount that reflects the consideration the company expects to be entitled to in exchange for the transfer of promised goods or services to customers. ASU 2014-09 will be effective for the Company in the first quarter of fiscal 2017 and allows for full retrospective adoption applied to all periods presented or retrospective adoption with the cumulative effect of initially applying this update recognized at the date of initial application. The Company is currently evaluating the method of adoption and the potential impact adoption will have on our consolidated financial statements. | |
In March 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08"), which changes the criteria for reporting discontinued operations. ASU 2014-08 allows only disposals representing a strategic shift in operations to be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. In addition, the new guidance requires expanded disclosures about discontinued operations, as well as pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. ASU 2014-08 will be effective for the Company in the first quarter of fiscal 2016. As this guidance is a prospective change, adoption of this standard is not expected to have a material impact on the Company's results of operations, financial position or cash flows. | |
Immaterial Out-of-Period Adjustment | |
During the first quarter of fiscal 2015, the Company recorded an out-of-period adjustment related to its customer rebate incentive accrual. This adjustment decreased net income for the first quarter of fiscal 2015 by $5.3 million (after considering applicable tax effects) and had no impact on reported cash flow from operations. Management performed an evaluation and concluded the effect of the adjustment was immaterial to previously issued financial statements and is not expected to be material for the fiscal year ended March 31, 2015. |
Acquisitions
Acquisitions | 3 Months Ended |
Jun. 30, 2014 | |
Acquisitions [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
Fiscal Year 2015 Acquisition | |
On April 15, 2014, the Company acquired Green Turtle Technologies Ltd., Green Turtle Americas Ltd. and Filamat Composites Inc. (collectively "Green Turtle") for a total cash purchase price of $27.7 million, excluding transaction costs and net of cash acquired. Green Turtle, based in Toronto, Ontario, and Charlotte, North Carolina, is a manufacturer of branded fiberglass oil and grease separators and traps. This acquisition broadens the product portfolio of the Company's existing Water Management platform. | |
The Company's results of operations include the acquired operations subsequent to April 15, 2014. The acquisition of Green Turtle was not material to the Company’s condensed consolidated financial statements. Pro-forma results of operations and certain other U.S. GAAP disclosures related to the acquisition during the first quarter ended June 30, 2014 have not been presented because they are not significant to the Company's condensed consolidated statements of operations and financial position. | |
The Green Turtle acquisition was accounted for as a business combination and recorded by allocating the purchase price of the acquisition to the fair value of the assets acquired and liabilities assumed at the acquisition date. The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill. The initial purchase price allocation resulted in non-tax deductible goodwill of $20.3 million, other intangible assets of $10.4 million and other net liabilities of $3.0 million. The purchase price allocation is preliminary and subject to final working capital and other valuation adjustments that will be completed within the one year period following the acquisition date. | |
Fiscal Year 2014 Acquisitions | |
On December 16, 2013, the Company acquired Precision Gear Holdings, LLC (“PGH”) for a total cash purchase price of $77.1 million, net of cash acquired and excluding transaction costs. PGH has two operating subsidiaries, Merit Gear LLC (“Merit Gear”), located in Antigo, Wisconsin, and Precision Gear LLC (“Precision Gear”), located in Twinsburg, Ohio. Merit Gear is a build-to-print manufacturer of high-quality gearing and specialized gearboxes primarily for the North American oil and gas market, along with other diversified industrial markets. Precision Gear is a leading manufacturer of highly specialized gears primarily serving the aerospace market, along with various other industrial markets. This acquisition was complementary to the Company's existing Process & Motion Control platform. | |
On August 30, 2013, the Company acquired certain assets of L.W. Gemmell ("LWG") for a total cash purchase price of $8.2 million, excluding transactions costs. LWG, based in Australia, is a distributor of non-residential plumbing products. A portion of LWG's historical sales were from existing Rexnord Water Management product lines. As such, the acquisition provided the Company with additional product offerings and the opportunity to expand its international presence through a more direct ownership structure. | |
On August 21, 2013, the Company acquired certain assets of Micro Precision Gear Technology Limited ("Micro Precision") for a total cash purchase price of $22.2 million, excluding transactions costs. Micro Precision, based in the United Kingdom, is a built-to-print manufacturer of specialty gears and electric motor components primarily sold to the aerospace market. This acquisition expanded the Company's existing Process & Motion Control product offerings and its presence in Europe. | |
On April 26, 2013, the Company acquired Klamflex Pipe Couplings Ltd. ("Klamflex") for a total cash purchase price of $4.5 million, net of cash acquired and excluding transaction costs. Klamflex, based in South Africa, is a manufacturer of pipe couplings, flange adapters, dismantling joints and repair clamps. This acquisition broadened the product portfolio of the Company's existing Water Management platform and expanded the Company's presence globally. | |
The Company's results of operations include the acquired operations subsequent to the respective acquisition dates included above. The acquisitions of PGH, LWG, Micro Precision and Klamflex were not material to the Company’s condensed consolidated financial statements, either individually or in the aggregate. Pro-forma results of operations and certain other U.S. GAAP disclosures related to the acquisitions during fiscal year ended March 31, 2014 have not been presented because they are not significant to the Company's condensed consolidated statements of operations and financial position, either individually or in the aggregate. | |
The fiscal year 2014 acquisitions were accounted for as business combinations and recorded by allocating the purchase price of the acquisitions to the fair value of the assets acquired and liabilities assumed at the acquisition date. The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill. The aggregate purchase price allocation resulted in goodwill of $24.9 million ($22.8 million of tax deductible goodwill), other intangible assets of $25.1 million, property, plant and equipment of $36.7 million and other net assets of $25.3 million. The purchase price allocation is preliminary and subject to valuation adjustments that will be completed within the one year period following each acquisition date. | |
During fiscal 2014, the Company also established a new French sales office in its Water Management platform to expand its European water and wastewater market presence via a joint venture between the Company and six external sales associates. The Company contributed an immaterial amount of capital to the joint venture. As the Company has a 51% ownership stake and is deemed to have significant control over the new legal entity, the financial statements of the new joint venture have been wholly consolidated in accordance with ASC 810, Consolidations. The remaining 49% of the joint venture that is not owned by the Company has been presented as a non-controlling interest throughout the financial statements. |
Restructuring_and_Other_Simila
Restructuring and Other Similar Costs | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Restructuring and Other Similar Costs Disclosure [Abstract] | ' | ||||||||||||||||
Restructuring and Other Similar Costs | ' | ||||||||||||||||
Restructuring and Other Similar Costs | |||||||||||||||||
During the first quarter ended June 30, 2014, the Company continued to execute various restructuring actions. These initiatives were implemented to reduce operating costs while also modifying the Company's footprint to reflect changes in the markets it serves, the impact of acquisitions on the Company's overall manufacturing capacity and the refinement of its overall product portfolio. These restructuring actions primarily resulted in workforce reductions, impairment of assets, lease termination costs, and other facility rationalization costs. Management expects to continue executing initiatives to optimize its operating margin and manufacturing footprint as well as select product-line rationalizations. As such, the Company expects further expenses related to workforce reductions, impairment of assets, lease termination costs, and other facility rationalization costs. The Company's restructuring plans are preliminary and related expenses are not yet estimable. | |||||||||||||||||
The following table summarizes the Company's restructuring costs during the three months ended June 30, 2014 and June 29, 2013 by classification of operating segment (in millions): | |||||||||||||||||
Restructuring Costs | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Process & Motion Control | Water Management | Corporate | Consolidated | ||||||||||||||
Severance costs | $ | 1.5 | $ | 0.7 | $ | — | $ | 2.2 | |||||||||
Lease termination and other costs | 0.4 | 0.8 | — | 1.2 | |||||||||||||
Total restructuring and other similar costs | $ | 1.9 | $ | 1.5 | $ | — | $ | 3.4 | |||||||||
Restructuring Costs | |||||||||||||||||
Three Months Ended June 29, 2013 | |||||||||||||||||
Process & Motion Control | Water Management | Corporate | Consolidated | ||||||||||||||
Severance costs | $ | 0.4 | $ | 0.7 | $ | 0.4 | $ | 1.5 | |||||||||
Lease termination and other costs | 0.2 | 0.1 | — | 0.3 | |||||||||||||
Total restructuring and other similar costs | $ | 0.6 | $ | 0.8 | $ | 0.4 | $ | 1.8 | |||||||||
The following table summarizes the activity in the Company's restructuring accrual for the three months ended June 30, 2014 (in millions): | |||||||||||||||||
Severance Costs | Lease Termination and Other Costs | Total | |||||||||||||||
Restructuring accrual, March 31, 2014 | $ | 3.7 | $ | 0.4 | $ | 4.1 | |||||||||||
Charges | 2.2 | 1.2 | 3.4 | ||||||||||||||
Cash payments | (2.7 | ) | (0.3 | ) | (3.0 | ) | |||||||||||
Non-cash charges | — | (0.8 | ) | (0.8 | ) | ||||||||||||
Restructuring accrual, June 30, 2014 (1) | $ | 3.2 | $ | 0.5 | $ | 3.7 | |||||||||||
-1 | The restructuring accrual is included in other current liabilities in the condensed consolidated balance sheets. |
Income_Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The provision for income taxes for all periods presented is based on an estimated effective income tax rate for the respective full fiscal years. The estimated annual effective income tax rate is determined excluding the effect of significant discrete items or items that are reported net of their related tax effects. The tax effect of significant discrete items is reflected in the period in which they occur. The Company's income tax expense is impacted by a number of factors, including the amount of taxable earnings derived in foreign jurisdictions with tax rates that are generally lower than the U.S. federal statutory rate, state tax rates in the jurisdictions where the Company does business and the Company's ability to utilize various tax credits and net operating loss (“NOL”) carryforwards. | |
The income tax provision was $21.8 million in the first quarter of fiscal 2015 compared to an income tax provision of $2.2 million in the first quarter of fiscal 2014. The effective income tax rate for the first quarter of fiscal 2015 was 64.5% versus 13.9% in the first quarter of fiscal 2014. The effective income tax rate for the first quarter of fiscal 2015 was significantly higher than the U.S. federal statutory rate of 35% mainly due to certain one-time costs of $10.1 million associated with a change to the U.S. income tax entity classification of a foreign subsidiary. Excluding the one-time costs the effective tax rate would have been 34.6% in the first quarter of fiscal 2015. The effective income tax rate for the first quarter of fiscal 2014 was below the U.S. federal statutory rate of 35% mainly due to the accrual of foreign income taxes at rates which are generally below the U.S. federal statutory rate and the recognition of certain, previously unrecognized tax benefits due to the lapse of the applicable statutes of limitations. | |
At June 30, 2014, the Company had a $25.5 million liability for unrecognized net income tax benefits. At March 31, 2014, the Company's total liability for unrecognized net income tax benefits was $23.6 million. The Company recognizes accrued interest and penalties related to unrecognized income tax benefits in income tax expense. As of June 30, 2014 and March 31, 2014, the total amount of gross, unrecognized income tax benefits included $10.2 million and $9.9 million of accrued interest and penalties, respectively. The Company recognized $0.2 million of net interest and penalties as income tax benefit during the three months ended June 30, 2014. The Company recognized $0.5 million of net interest and penalties as income tax expense during the three months ended June 29, 2013. | |
The Company conducts business in multiple locations within and outside the U.S. Consequently, the Company is subject to periodic income tax examinations by domestic and foreign income tax authorities. Currently, the Company is undergoing routine, periodic income tax examinations in both domestic and foreign jurisdictions. The Company has recently been notified by the Internal Revenue Service that it intends to conduct an income tax examination for the tax year ended March 31, 2013. Field work is anticipated to begin during the third or fourth quarter of the current fiscal year. During the first quarter ended June 29, 2013, the Company completed an examination of its Italian corporate income tax returns for the tax years ended March 31, 2008 through March 31, 2011. Similarly, during the second quarter ended September 28, 2013, the Company completed an examination of certain German subsidiaries’ corporate income and trade tax returns for the tax years ended March 31, 2006 through March 31, 2010. The Company paid approximately $0.7 million and $0.4 million upon the conclusion of the Italian and German examinations, respectively. However, these amounts did not have a negative financial statement impact to the Company as the amounts were either previously reserved as an unrecognized tax benefit or appropriately accounted for as a deferred tax item. It appears reasonably possible that the amounts of unrecognized income tax benefits could change in the next twelve months as a result of such examinations; however, any potential payments of income tax, interest and penalties are not expected to be significant to the Company's consolidated financial statements. With certain exceptions, the Company is no longer subject to U.S. federal income tax examinations for tax years ending prior to March 31, 2011, state and local income tax examinations for years ending prior to fiscal 2010 or significant foreign income tax examinations for years ending prior to fiscal 2009. With respect to the Company's U.S. federal NOL carryforward, the short tax period from July 21, 2006 to March 31, 2007 (due to the change in control when Apollo Management, L.P. acquired the Company) and the tax years ended March 31, 2008, 2009 and 2010 are open under statutes of limitations; whereby, the Internal Revenue Service may not adjust the income tax liability for these years, but may reduce the NOL carryforward and any other tax attribute carryforwards to future, open tax years. |
Earnings_per_Share
Earnings per Share | 3 Months Ended |
Jun. 30, 2014 | |
Earnings per Share Disclosure [Abstract] | ' |
Earnings Per Share | ' |
Earnings per Share | |
Basic net income per share is computed by dividing net income by the corresponding weighted average number of common shares outstanding for the period. Diluted net income per share is computed based on the weighted average number of common shares outstanding increased by the number of incremental shares that would have been outstanding if the potential dilutive shares were issued through the exercise of outstanding stock options to purchase common shares, except when the effect would be anti-dilutive. The computation for diluted net income per share for the three months ended June 30, 2014 excludes 86,909 options to purchase shares due to their anti-dilutive effect. The computation for diluted net earnings per share for the three months ended June 29, 2013 excludes options to purchase 3,612,487 shares due to their anti-dilutive effect. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||||||||||
Stockholders' equity consists of the following (in millions): | ||||||||||||||||||||||||||||||||
Preferred Stock | Common | Additional | Retained | Accumulated | Treasury Stock | Non-controlling Interest (1) | Total | |||||||||||||||||||||||||
Stock | Paid-In | Deficit | Other | Stockholders’ | ||||||||||||||||||||||||||||
Capital | Comprehensive | Equity | ||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | — | $ | 1 | $ | 872.7 | $ | (281.3 | ) | $ | (23.8 | ) | $ | (6.3 | ) | $ | (0.2 | ) | $ | 562.1 | ||||||||||||
Total comprehensive income (loss) | — | — | — | 12.1 | (5.7 | ) | — | (0.1 | ) | 6.3 | ||||||||||||||||||||||
Stock-based compensation expense | — | — | 1.6 | — | — | — | — | 1.6 | ||||||||||||||||||||||||
Exercise of stock options, net of shares surrendered | — | — | 0.4 | — | — | — | — | 0.4 | ||||||||||||||||||||||||
Tax benefit on stock option exercises | — | — | 1.6 | — | — | — | — | 1.6 | ||||||||||||||||||||||||
Balance at June 30, 2014 | $ | — | $ | 1 | $ | 876.3 | $ | (269.2 | ) | $ | (29.5 | ) | $ | (6.3 | ) | $ | (0.3 | ) | $ | 572 | ||||||||||||
____________________ | ||||||||||||||||||||||||||||||||
(1) Represents a 49% non-controlling interest in a Water Management joint venture. See Note 2 Acquisitions for additional information. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
The changes in accumulated other comprehensive loss, net of tax, for the three months ended June 30, 2014 are as follows (in millions): | |||||||||||||||||
Interest Rate Derivatives | Foreign Currency Translation | Pension and Postretirement Plans | Total | ||||||||||||||
Balance at March 31, 2014 | $ | (1.7 | ) | $ | 7.8 | $ | (29.9 | ) | $ | (23.8 | ) | ||||||
Other comprehensive income before reclassifications | (3.7 | ) | (1.7 | ) | — | (5.4 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | (0.3 | ) | (0.3 | ) | |||||||||||
Net current period other comprehensive loss | (3.7 | ) | (1.7 | ) | (0.3 | ) | (5.7 | ) | |||||||||
Balance at June 30, 2014 | $ | (5.4 | ) | $ | 6.1 | $ | (30.2 | ) | $ | (29.5 | ) | ||||||
The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the three months ended June 30, 2014 and June 29, 2013 (in millions): | |||||||||||||||||
First Quarter Ended | |||||||||||||||||
June 30, 2014 | June 29, 2013 | Income Statement Line | |||||||||||||||
Pension and other postretirement plans | |||||||||||||||||
Amortization of prior service credit | $ | (0.5 | ) | $ | (0.5 | ) | Selling, general and administrative expenses | ||||||||||
Provision for income taxes | 0.2 | 0.2 | |||||||||||||||
Total net of tax | $ | (0.3 | ) | $ | (0.3 | ) |
Inventories
Inventories | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
The major classes of inventories are summarized as follows (in millions): | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Finished goods | $ | 239.2 | $ | 227.4 | ||||
Work in progress | 76.7 | 72.4 | ||||||
Raw materials | 63 | 58 | ||||||
Inventories at First-in, First-Out ("FIFO") cost | 378.9 | 357.8 | ||||||
Adjustment to state inventories at Last-in, First-Out ("LIFO") cost | 1.7 | 1.9 | ||||||
$ | 380.6 | $ | 359.7 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets | |||||||||||||||||||||||||
The changes in the net carrying value of goodwill and identifiable intangible assets for the three months ended June 30, 2014 by operating segment, are presented below (in millions): | |||||||||||||||||||||||||
Amortizable Intangible Assets | |||||||||||||||||||||||||
Goodwill | Indefinite Lived Intangible Assets (tradenames) | Tradenames | Customer Relationships | Patents | Total Identifiable Intangible Assets Excluding Goodwill | ||||||||||||||||||||
Process & Motion Control | |||||||||||||||||||||||||
Net carrying amount as of March 31, 2014 | $ | 904 | $ | 197.6 | $ | 1.9 | $ | 94.4 | $ | 3.7 | $ | 297.6 | |||||||||||||
Acquisitions | — | — | — | — | — | — | |||||||||||||||||||
Amortization | — | — | (0.1 | ) | (7.6 | ) | (0.3 | ) | (8.0 | ) | |||||||||||||||
Currency translation adjustment and other | (2.0 | ) | 0.3 | — | 0.1 | — | 0.4 | ||||||||||||||||||
Net carrying amount as of June 30, 2014 | $ | 902 | $ | 197.9 | $ | 1.8 | $ | 86.9 | $ | 3.4 | $ | 290 | |||||||||||||
Water Management | |||||||||||||||||||||||||
Net carrying amount as of March 31, 2014 | $ | 246.7 | $ | 140.8 | $ | — | $ | 147 | $ | 7.2 | $ | 295 | |||||||||||||
Acquisitions | 20.3 | — | 1.6 | 7.3 | 1.5 | 10.4 | |||||||||||||||||||
Amortization | — | — | (0.1 | ) | (4.8 | ) | (0.6 | ) | (5.5 | ) | |||||||||||||||
Currency translation adjustment and other | (0.4 | ) | (0.2 | ) | — | (0.2 | ) | — | (0.4 | ) | |||||||||||||||
Net carrying amount as of June 30, 2014 | $ | 266.6 | $ | 140.6 | $ | 1.5 | $ | 149.3 | $ | 8.1 | $ | 299.5 | |||||||||||||
Consolidated | |||||||||||||||||||||||||
Net carrying amount as of March 31, 2014 | $ | 1,150.70 | $ | 338.4 | $ | 1.9 | $ | 241.4 | $ | 10.9 | $ | 592.6 | |||||||||||||
Acquisitions | 20.3 | — | 1.6 | 7.3 | 1.5 | 10.4 | |||||||||||||||||||
Amortization | — | — | (0.2 | ) | (12.4 | ) | (0.9 | ) | (13.5 | ) | |||||||||||||||
Currency translation adjustment and other | (2.4 | ) | 0.1 | — | (0.1 | ) | — | — | |||||||||||||||||
Net carrying amount as of June 30, 2014 | $ | 1,168.60 | $ | 338.5 | $ | 3.3 | $ | 236.2 | $ | 11.5 | $ | 589.5 | |||||||||||||
The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of June 30, 2014 and March 31, 2014 are as follows (in millions): | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Weighted Average Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Patents | 10 years | $ | 40.2 | $ | (28.7 | ) | $ | 11.5 | |||||||||||||||||
Customer relationships (including distribution network) | 13 years | 591.5 | (355.3 | ) | 236.2 | ||||||||||||||||||||
Tradenames | 7 years | 3.6 | (0.3 | ) | 3.3 | ||||||||||||||||||||
Intangible assets not subject to amortization - tradenames | 338.5 | — | 338.5 | ||||||||||||||||||||||
$ | 973.8 | $ | (384.3 | ) | $ | 589.5 | |||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Weighted Average Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Patents | 10 years | $ | 38.7 | $ | (27.8 | ) | $ | 10.9 | |||||||||||||||||
Customer relationships (including distribution network) | 12 years | 584.3 | (342.9 | ) | 241.4 | ||||||||||||||||||||
Tradenames | 7 years | 2 | (0.1 | ) | 1.9 | ||||||||||||||||||||
Intangible assets not subject to amortization - tradenames | 338.4 | — | 338.4 | ||||||||||||||||||||||
$ | 963.4 | $ | (370.8 | ) | $ | 592.6 | |||||||||||||||||||
Intangible asset amortization expense totaled $13.5 million for the three months ended June 30, 2014. Intangible asset amortization expense totaled $12.5 million for the three months ended June 29, 2013. | |||||||||||||||||||||||||
The Company expects to recognize amortization expense on the intangible assets subject to amortization of $53.4 million in fiscal year 2015 (inclusive of $13.5 million of amortization expense recognized in the three months ended June 30, 2014), $53.4 million in fiscal year 2016, $34.3 million in fiscal year 2017, $23.3 million in fiscal year 2018, and $22.4 million in fiscal year 2019. |
Other_Current_Liabilities
Other Current Liabilities | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Other Current Liabilities | ' | |||||||
Other Current Liabilities | ||||||||
Other current liabilities are summarized as follows (in millions): | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
Customer advances | $ | 8.3 | $ | 8.1 | ||||
Sales rebates | 15.9 | 22.7 | ||||||
Commissions | 7.7 | 7.9 | ||||||
Restructuring and other similar charges (1) | 3.7 | 4.1 | ||||||
Product warranty (2) | 7.6 | 8.6 | ||||||
Risk management (3) | 9.5 | 9.1 | ||||||
Legal and environmental | 2.9 | 4.5 | ||||||
Deferred income taxes | 15.6 | 10.9 | ||||||
Taxes, other than income taxes | 7.9 | 9.5 | ||||||
Income taxes payable | 11.8 | 11.2 | ||||||
Other | 15.3 | 15.6 | ||||||
$ | 106.2 | $ | 112.2 | |||||
____________________ | ||||||||
-1 | See more information related to the restructuring obligations within Note 3. | |||||||
-2 | See more information related to the product warranty obligations within Note 14. | |||||||
-3 | Includes projected liabilities related to losses arising from automobile, general and product liability claims. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Long-Term Debt | |||||||||
Long-term debt is summarized as follows (in millions): | |||||||||
June 30, 2014 | March 31, 2014 | ||||||||
Term loan (1) | $ | 1,917.80 | $ | 1,921.90 | |||||
New Market Tax Credit (2) | 37.4 | 37.4 | |||||||
8.875% senior notes due 2016 | 1.3 | 1.3 | |||||||
Other (3) | 15.8 | 11.4 | |||||||
Total | 1,972.30 | 1,972.00 | |||||||
Less current maturities | 33.4 | 29 | |||||||
Long-term debt | $ | 1,938.90 | $ | 1,943.00 | |||||
____________________ | |||||||||
-1 | Includes an unamortized original issue discount of $17.6 million and $18.3 million at June 30, 2014 and March 31, 2014, respectively. | ||||||||
-2 | In connection with the New Market Tax Credit incentive program, the Company also provided an aggregate $27.6 million in the form of a loan receivable. The aggregate loan receivable is presented within Other Assets on the condensed consolidated balance sheets as of June 30, 2014 and March 31, 2014. | ||||||||
-3 | Includes additional debt at various wholly-owned subsidiaries, comprised primarily of borrowings at foreign subsidiaries and capital lease obligations. | ||||||||
Senior Secured Credit Facility | |||||||||
On August 21, 2013, the Company entered into a Third Amended and Restated First Lien Credit Agreement (the "Credit Agreement"). The senior secured credit facilities under the Credit Agreement are funded by a syndicate of banks and other financial institutions and provide for loans of up to $2,215.0 million, consisting of (i) a $1,950.0 million term loan facility with a maturity date of August 21, 2020 (the "Term Loan"); and (ii) a $265.0 million revolving credit facility with a maturity date of March 15, 2017; under the revolving credit facility, the Company has borrowing capacity available for letters of credit and for borrowings on a same-day notice, referred to as swingline loans. | |||||||||
At June 30, 2014, borrowings under the Credit Agreement had an effective and average interest rate of 4.00%, determined as the LIBO rate (subject to a 1% floor) plus an applicable margin of 3.00%. The interest rates for the Term Loan are subject to a leverage-based pricing grid. In the event the Company's first lien leverage ratio is less than 3.25 to 1.0, its applicable margin on the Term Loan borrowings would decrease twenty-five (25) basis points. The Company's actual first lien leverage ratio was 3.86 to 1.0 as of June 30, 2014. | |||||||||
As of June 30, 2014, the remaining mandatory principal payments prior to maturity on the Term Loan were $117.0 million. Principal payments of $4.9 million are scheduled to be made at the end of each calendar quarter until June 30, 2020. | |||||||||
No amounts were borrowed under the revolving credit facility at June 30, 2014 or March 31, 2014; however, $29.9 million and $29.1 million of the revolving credit facility were considered utilized in connection with outstanding letters of credit at June 30, 2014 and March 31, 2014, respectively. | |||||||||
As of June 30, 2014, the Company was in compliance with all applicable covenants under its Credit Agreement, including compliance with a maximum permitted first lien leverage ratio (the Company's sole financial maintenance covenant under its revolver) of 7.75 to 1.0. | |||||||||
Partial Prepayment of Old Term Loan | |||||||||
In the first quarter of fiscal 2014, the Company entered into an Incremental Assumption Agreement relating to its then-existing credit agreement, which reduced the then-applicable margin on the term loan facility by seventy-five (75) basis points. In connection with the Incremental Assumption Agreement, the Company made a $150.0 million prepayment on the term loan facility. The Company also recognized a related pre-tax loss of $4.0 million related to the portion of debt that was considered modified in the accordance with ASC 470-50, Debt Modifications and Extinguishments, which was comprised of $0.8 million of fees paid to lenders and a non-cash write-off of $2.4 million of deferred financing costs and $0.8 million of original issue discount, respectively. | |||||||||
Accounts Receivable Securitization Program | |||||||||
In fiscal 2012, the Company entered into a five-year Amended and Restated Receivables Funding and Administration Agreement (the “RFAA”) by and among Rexnord Funding LLC (“Funding,” a wholly-owned bankruptcy-remote special purpose subsidiary), the financial institutions from time to time party thereto, and General Electric Capital Corporation, as a lender, a swing line lender and administrative agent. The RFAA is the principal operative agreement under which certain subsidiaries continuously sell substantially all of their domestic trade accounts receivable to Funding for cash and subordinated notes (the “Program”). | |||||||||
At June 30, 2014, the Company's available borrowing capacity under the Program was $100.0 million, based on the current accounts receivables balance subject to the Program. There were no borrowings outstanding under the Program as of June 30, 2014. As of June 30, 2014, Funding was in compliance with all applicable covenants and performance ratios contained in the RFAA. | |||||||||
See Note 11 to the audited consolidated financial statements of the Company's fiscal 2014 Annual Report on Form 10-K for further information regarding long-term debt. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Derivative Financial Instruments | ' | ||||||||||
Derivative Financial Instruments | |||||||||||
The Company is exposed to certain financial risks relating to fluctuations in foreign currency exchange rates. The Company currently selectively uses foreign currency forward exchange contracts to manage its foreign currency risk. All hedging transactions are authorized and executed pursuant to defined policies and procedures that prohibit the use of financial instruments for speculative purposes. | |||||||||||
Foreign Exchange Contracts | |||||||||||
The Company periodically enters into foreign currency forward contracts to mitigate the foreign currency volatility relative to certain intercompany and external cash flows expected to occur. These foreign currency forward contracts were not accounted for as effective cash flow hedges in accordance with ASC 815, Derivatives and Hedging (“ASC 815”) and as such were marked to market through earnings. See the amounts recorded on the condensed consolidated balance sheets and recognized within the condensed consolidated statements of operations related to the Company's foreign currency forward contracts within the tables below. | |||||||||||
Interest Rate Swaps | |||||||||||
During fiscal 2014, the Company entered into three forward-starting interest rate swaps to hedge the variability in future cash flows associated with a portion of the Company’s variable-rate term loans. The forward-starting interest rate swaps convert $650.0 million of the Company’s variable-rate term loans to a weighted average fixed interest rate of 2.55% plus the applicable margin (inclusive of a 1% LIBOR floor). All of the interest rate swaps become effective beginning on September 28, 2015 with a maturity of September 27, 2018. The interest rate derivatives have been designated as effective cash flow hedges in accordance with ASC 815. The fair values of these interest rate derivatives are recorded on the Company's condensed consolidated balance sheets with the corresponding offset recorded as a component of accumulated other comprehensive loss, net of tax. See the amounts recorded on the condensed consolidated balance sheets related to the Company's interest rate swaps within the tables below. | |||||||||||
The Company's derivatives are measured at fair value in accordance with ASC 820, Fair Value Measurements and Disclosure (“ASC 820”). See Note 13 Fair Value Measurements for more information as it relates to the fair value measurement of the Company's derivative financial instruments. | |||||||||||
The following tables indicate the location and the fair value of the Company's derivative instruments within the condensed consolidated balance sheets segregated between designated, qualifying ASC 815 hedging instruments and non-qualifying, non-designated hedging instruments (in millions). | |||||||||||
Fair value of derivatives designated as hedging instruments under ASC 815: | |||||||||||
June 30, 2014 | March 31, 2014 | Balance Sheet Classification | |||||||||
Liability Derivatives | |||||||||||
Interest rate swaps | $ | 8.7 | $ | 2.7 | Other long-term liabilities | ||||||
Fair value of derivatives not designated as hedging instruments under ASC 815: | |||||||||||
June 30, 2014 | March 31, 2014 | Balance Sheet Classification | |||||||||
Asset Derivatives | |||||||||||
Foreign currency forward contracts | $ | — | $ | 0.1 | Other current assets | ||||||
Liability Derivatives | |||||||||||
Foreign currency forward contracts | $ | 0.4 | $ | — | Other current liabilities | ||||||
The following table indicates the location and the amount of gains or losses associated with the Company's derivative instruments, net of tax, within the condensed consolidated balance sheets (for qualifying ASC 815 instruments) and recognized within the condensed consolidated statements of operations. The information is segregated between designated, qualifying ASC 815 hedging instruments and non-qualifying, non-designated hedging instruments (in millions). As of June 30, 2014, there was no ineffectiveness on the Company's designated hedging instruments. | |||||||||||
Amount of loss recognized in accumulated other comprehensive loss on derivatives | |||||||||||
Derivative instruments designated as cash flow hedging relationships under ASC 815 | |||||||||||
30-Jun-14 | 31-Mar-14 | ||||||||||
Interest rate swaps | $ | 3.7 | $ | 1.7 | |||||||
Amount recognized in other expense, net | |||||||||||
Derivative instruments not designated as hedging instruments under ASC 815 | Condensed Consolidated Statements of Operations Classification | First Quarter Ended | |||||||||
June 30, 2014 | June 29, 2013 | ||||||||||
Foreign currency forward contracts | Other expense, net | $ | (0.4 | ) | $ | 0.3 | |||||
Due to the forward starting nature of the interest rate swaps, the Company does not expect to reclassify any amount within accumulated other comprehensive loss into earnings as interest expense during the next twelve months. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. ASC 820 also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed assumptions about the assumptions a market participant would use. | |||||||||||||||||
In accordance with ASC 820, fair value measurements are classified under the following hierarchy: | |||||||||||||||||
• | Level 1- Quoted prices for identical instruments in active markets. | ||||||||||||||||
• | Level 2- Quoted prices for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable. | ||||||||||||||||
• | Level 3- Model-derived valuations in which one or more inputs or value-drivers are both significant to the fair value measurement and unobservable. | ||||||||||||||||
If applicable, the Company uses quoted market prices in active markets to determine fair value, and therefore classifies such measurements within Level 1. In some cases where market prices are not available, the Company makes use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters. These measurements are classified within Level 3 if they use significant unobservable inputs. | |||||||||||||||||
Foreign Currency Forward Contracts and Interest Rate Swaps | |||||||||||||||||
The Company transacts in foreign currency forward contracts and interest rate swaps, which are impacted by ASC 820. The fair value of foreign currency forward contracts is based on a pricing model that utilizes the differential between the contract price and the market-based forward rate as applied to fixed future deliveries of currency at pre-designated settlement dates. The fair value of interest rate swaps is based on pricing models. These models use discounted cash flows that utilize the appropriate market-based forward swap curves and interest rates. | |||||||||||||||||
The Company endeavors to utilize the best available information in measuring fair value. As required by ASC 820, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Foreign currency forward contracts and interest rate swaps reside within Level 2 of the fair value hierarchy. There were no transfers of assets between levels during the three months ended June 30, 2014 and March 31, 2014. The following table provides a summary of the Company's assets and liabilities recognized at fair value on a recurring basis as of June 30, 2014 and March 31, 2014 (in millions): | |||||||||||||||||
Fair Value as of June 30, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Liabilities: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 0.4 | $ | — | $ | 0.4 | |||||||||
Interest rate swaps | — | 8.7 | — | 8.7 | |||||||||||||
Total liabilities at fair value | $ | — | $ | 9.1 | $ | — | $ | 9.1 | |||||||||
Fair Value as of March 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||||
Total assets at fair value | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swaps | $ | — | $ | 2.7 | $ | — | $ | 2.7 | |||||||||
Total liabilities at fair value | $ | — | $ | 2.7 | $ | — | $ | 2.7 | |||||||||
Fair Value of Non-Derivative Financial Instruments | |||||||||||||||||
The carrying amounts of cash, receivables, payables and accrued liabilities approximated fair value at June 30, 2014 and March 31, 2014 due to the short-term nature of those instruments. The fair value of long-term debt as of June 30, 2014 and March 31, 2014 was approximately $1,989.8 million and $1,995.1 million, respectively. The fair value is based on quoted market prices for the same issues. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
Commitments and Contingencies | |||||||||
Warranties: | |||||||||
The Company offers warranties on the sales of certain products and records an accrual for estimated future claims. Such accruals are based upon historical experience and management's estimate of the level of future claims. The following table presents changes in the Company's product warranty liability (in millions): | |||||||||
Three Months Ended | |||||||||
30-Jun-14 | 29-Jun-13 | ||||||||
Balance at beginning of period | $ | 8.6 | $ | 8.8 | |||||
Charged to operations | — | 1.1 | |||||||
Claims settled | (1.0 | ) | (0.9 | ) | |||||
Balance at end of period | $ | 7.6 | $ | 9 | |||||
Contingencies: | |||||||||
The Company's subsidiaries are involved in various unresolved legal actions, administrative proceedings and claims in the ordinary course of business involving, among other things, product liability, commercial, employment, workers' compensation, intellectual property claims and environmental matters. The Company establishes accruals in a manner that is consistent with accounting principles generally accepted in the United States for costs associated with such matters when liability is probable and those costs are capable of being reasonably estimated. Although it is not possible to predict with certainty the outcome of these unresolved legal actions or the range of possible loss or recovery, based upon current information, management believes the eventual outcome of these unresolved legal actions, either individually or in the aggregate, will not have a material adverse effect on the financial position, results of operations or cash flows of the Company. | |||||||||
In connection with the Carlyle acquisition in November 2002, Invensys plc ("Invensys") has provided the Company with indemnification against certain contingent liabilities, including certain pre-closing environmental liabilities. The Company believes that, pursuant to such indemnity obligations, Invensys is obligated to defend and indemnify the Company with respect to the matters described below relating to the Ellsworth Industrial Park Site and to various asbestos claims. The indemnity obligations relating to the matters described below are subject, together with indemnity obligations relating to other matters, to an overall dollar cap equal to the purchase price, which is an amount in excess of $900 million. The following paragraphs summarize the most significant actions and proceedings: | |||||||||
• | In 2002, Rexnord Industries, LLC (“Rexnord Industries”) was named as a potentially responsible party (“PRP”), together with at least ten other companies, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the “Site”), by the United States Environmental Protection Agency (“USEPA”), and the Illinois Environmental Protection Agency (“IEPA”). Rexnord Industries' Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and IEPA allege there have been one or more releases or threatened releases of chlorinated solvents and other hazardous substances, pollutants or contaminants, allegedly including but not limited to a release or threatened release on or from the Company's property, at the Site. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of USEPA's past costs. Rexnord Industries' allocated share of past and future costs related to the Site, including for investigation and/or remediation, could be significant. All previously pending property damage and personal injury lawsuits against the Company related to the Site have been settled or dismissed. Pursuant to its indemnity obligation, Invensys continues to defend the Company in known matters related to the Site and has paid 100% of the costs to date. | ||||||||
• | Multiple lawsuits (with approximately 1,000 claimants) are pending in state or federal court in numerous jurisdictions relating to alleged personal injuries due to the alleged presence of asbestos in certain brakes and clutches previously manufactured by the Company's Stearns division and/or its predecessor owners. Invensys and FMC, prior owners of the Stearns business, have paid 100% of the costs to date related to the Stearns lawsuits. Similarly, the Company's Prager subsidiary is a defendant in two pending multi-defendant lawsuits relating to alleged personal injuries due to the alleged presence of asbestos in a product allegedly manufactured by Prager. Additionally, there are numerous individuals who have filed asbestos related claims against Prager; however, these claims are currently on the Texas Multi-district Litigation inactive docket. The ultimate outcome of these asbestos matters cannot presently be determined. To date, the Company's insurance providers have paid 100% of the costs related to the Prager asbestos matters. The Company believes that the combination of its insurance coverage and the Invensys indemnity obligations will cover any future costs of these matters. | ||||||||
In connection with the acquisition of The Falk Corporation (“Falk”), Hamilton Sundstrand has provided the Company with indemnification against certain products-related asbestos exposure liabilities. The Company believes that, pursuant to such indemnity obligations, Hamilton Sundstrand is obligated to defend and indemnify the Company with respect to the asbestos claims described below, and that, with respect to these claims, such indemnity obligations are not subject to any time or dollar limitations. | |||||||||
The following paragraph summarizes the most significant actions and proceedings for which Hamilton Sundstrand has accepted responsibility: | |||||||||
• | Falk, through its successor entity, is a defendant in multiple lawsuits pending in state or federal court in numerous jurisdictions relating to alleged personal injuries due to the alleged presence of asbestos in certain clutches and drives previously manufactured by Falk. There are approximately 100 claimants in these suits. The ultimate outcome of these lawsuits cannot presently be determined. Hamilton Sundstrand is defending the Company in these lawsuits pursuant to its indemnity obligations and has paid 100% of the costs to date. | ||||||||
Certain Water Management subsidiaries are also subject to asbestos litigation. As of June 30, 2014, Zurn and numerous other unrelated companies were defendants in approximately 7,000 asbestos related lawsuits representing approximately 26,000 claims. Plaintiffs' claims allege personal injuries caused by exposure to asbestos used primarily in industrial boilers formerly manufactured by a segment of Zurn. Zurn did not manufacture asbestos or asbestos components. Instead, Zurn purchased them from suppliers. These claims are being handled pursuant to a defense strategy funded by insurers. | |||||||||
As of June 30, 2014, the Company estimates the potential liability for the asbestos-related claims described above, as well as the claims expected to be filed in the next ten years to be approximately $36.0 million, of which Zurn expects its insurance carriers to pay approximately $29.0 million in the next ten years on such claims, with the balance of the estimated liability being paid in subsequent years. The $36.0 million was developed based on an actuarial study and represents the projected indemnity payout for claims filed in the next 10 years. However, there are inherent uncertainties involved in estimating the number of future asbestos claims, future settlement costs, and the effectiveness of defense strategies and settlement initiatives. As a result, actual liability could differ from the estimate described herein. Further, while this current asbestos liability is based on an estimate of claims through the next ten years, such liability may continue beyond that time frame, and such liability could be substantial. | |||||||||
Management estimates that its available insurance to cover this potential asbestos liability as of June 30, 2014, is approximately $250.5 million, and believes that all current claims are covered by insurance. However, principally as a result of the past insolvency of certain of the Company's insurance carriers, certain coverage gaps will exist if and after the Company's other carriers have paid the first $174.5 million of aggregate liabilities. | |||||||||
As of June 30, 2014, the Company had a recorded receivable from its insurance carriers of $36.0 million, which corresponds to the amount of this potential asbestos liability that is covered by available insurance and is currently determined to be probable of recovery. However, there is no assurance that $250.5 million of insurance coverage will ultimately be available or that this asbestos liability will not ultimately exceed $250.5 million. Factors that could cause a decrease in the amount of available coverage include: changes in law governing the policies, potential disputes with the carriers regarding the scope of coverage, and insolvencies of one or more of the Company's carriers. | |||||||||
The Company's subsidiaries, Zurn PEX, Inc. and Zurn Industries, LLC ("Zurn Industries"), were named as defendants in a number of individual and class action lawsuits in various United States courts. The plaintiffs in these suits claimed damages due to the alleged failure or anticipated failure of Zurn brass fittings on the PEX plumbing systems in homes and other structures. | |||||||||
In July 2012, the Company reached an agreement in principle to settle the liability underlying this litigation. The settlement is designed to resolve, on a national basis, the Company's overall exposure for both known and unknown claims related to the alleged failure or anticipated failure of Zurn brass fittings on PEX plumbing systems, subject to the right of eligible class members to opt-out of the settlement and pursue their claims independently. The settlement received final court approval in February 2013, and utilizes a seven year claims fund, which is capped at $20 million, and is funded in installments over the seven year period based on claim activity and minimum funding criteria. The settlement also covers class action plaintiffs' attorneys' fees and expenses totaling $8.5 million, which were paid in the first quarter of fiscal 2014. | |||||||||
Historically, the Company's insurance carrier had funded the Company's defense in the above referenced proceedings. The Company, however, reached a settlement agreement with its insurer, whereby the insurer paid the Company a lump sum in exchange for a release of future exposure related to this liability. | |||||||||
The Company has recorded an accrual related to this brass fittings liability, which takes into account, in pertinent part, the insurance carrier contribution, as well as exposure from the claims fund, opt-outs and the waiver of future insurance coverage. | |||||||||
In 2010, Sloan Valve Company (“Sloan”) filed a complaint against the Company’s subsidiary, Zurn Industries, for patent infringement in the United States District Court for the Northern District of Illinois. The complaint alleged, among other things, that Zurn Industries’ manual dual flush valve infringed Sloan’s patent for its “Flush Valve Handle Assembly Providing Dual Mode Operation” and sought an unspecified amount of damages, including a request for treble damages and attorneys’ fees related to Sloan’s allegation of willful infringement. In June 2014, the court entered a consent judgment, consistent with the settlement agreement between Zurn Industries and Sloan, which included, among other things, a dismissal of all claims and counterclaims between the parties. The resolution of this case did not have a material adverse impact on the Company's condensed consolidated results of operations. |
Retirement_Benefits
Retirement Benefits | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | |||||||
Retirement Benefits | ' | |||||||
Retirement Benefits | ||||||||
The components of net periodic benefit cost are as follows (in millions): | ||||||||
Three Months Ended | ||||||||
June 30, 2014 | June 29, 2013 | |||||||
Pension Benefits: | ||||||||
Service cost | $ | 0.4 | $ | 0.5 | ||||
Interest cost | 7.7 | 7.3 | ||||||
Expected return on plan assets | (7.7 | ) | (7.7 | ) | ||||
Amortization of: | ||||||||
Prior service cost | — | 0.1 | ||||||
Net periodic benefit cost | $ | 0.4 | $ | 0.2 | ||||
Other Postretirement Benefits: | ||||||||
Service cost | $ | — | $ | — | ||||
Interest cost | 0.3 | 0.3 | ||||||
Amortization: | ||||||||
Prior service credit | (0.5 | ) | (0.5 | ) | ||||
Net periodic benefit credit | $ | (0.2 | ) | $ | (0.2 | ) | ||
During the first three months of fiscal 2015 and 2014, the Company made contributions of $1.5 million and $1.4 million, respectively, to its U.S. qualified pension plan trusts. | ||||||||
In accordance with the Company's accounting policy for defined benefit pension and other postretirement benefit plans, actuarial gains and losses above a specified threshold are immediately recognized in the Company's operating results during the fourth quarter. This adjustment is measured annually in connection with the Company's required year-end re-measurement of plan assets and benefit obligations, or upon any off-cycle re-measurement event. As a result, a mark-to-market adjustment may be recorded in the fourth quarter of fiscal 2015 in accordance with the Company's pension accounting policy. See Note 16 to the audited consolidated financial statements of the Company's fiscal 2014 Annual Report on Form 10-K for further information regarding retirement benefits. |
Stock_Options
Stock Options | 3 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Stock Options [Abstract] | ' | |||||||||||||
Stock Options | ' | |||||||||||||
Stock Options | ||||||||||||||
ASC 718, Compensation-Stock Compensation (“ASC 718”), requires compensation costs related to share-based payment transactions to be recognized in the financial statements. Generally, compensation cost is measured based on the grant-date fair value of the equity instruments issued. The Company recognizes the compensation cost for options granted over the requisite service period, generally as the awards vest. The fair value of each option is determined on the date of grant using the Black-Scholes valuation model. See Note 15 to the audited consolidated financial statements of the Company's fiscal 2014 Annual Report on Form 10-K for further information regarding stock-based compensation and related plans. | ||||||||||||||
For the first quarter ended June 30, 2014, the Company recorded $1.6 million of stock-based compensation expense. For the first quarter ended June 29, 2013, the Company recorded $1.5 million of stock-based compensation expense. As of June 30, 2014, there was $12.9 million of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted average period of 3.2 years. | ||||||||||||||
The following table presents the Company's stock option activity during the first three months of fiscal 2015 and 2014, respectively: | ||||||||||||||
Period from April 1, 2014 through June 30, 2014 | Period from April 1, 2013 through June 29, 2013 | |||||||||||||
Shares | Weighted Avg. Exercise Price | Shares | Weighted Avg. Exercise Price | |||||||||||
Number of shares under option: | ||||||||||||||
Outstanding at beginning of period | 8,652,834 | $ | 10.79 | 9,450,197 | $ | 9.85 | ||||||||
Granted | — | — | 881,940 | 19 | ||||||||||
Exercised | (206,155 | ) | 7.19 | (116,172 | ) | 5.24 | ||||||||
Canceled/Forfeited | (104,148 | ) | 20 | (204,406 | ) | 21.36 | ||||||||
Outstanding at end of period (1) | 8,342,531 | $ | 10.76 | 10,011,559 | $ | 10.47 | ||||||||
Exercisable at end of period (2) | 5,039,432 | $ | 5.45 | 5,783,533 | $ | 5.34 | ||||||||
______________________ | ||||||||||||||
-1 | The weighted average remaining contractual life of options outstanding at June 30, 2014 is 5.2 years. | |||||||||||||
-2 | The weighted average remaining contractual life of options exercisable at June 30, 2014 is 3.4 years. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2014 | |
IPO, Debt redepmtion, and termination of management agreement [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Under the Stockholders Agreements with affiliates of Apollo Management and George Sherman, in certain circumstances the Company is obligated to register with the Securities and Exchange Commission shares owned by those stockholders and bear related expenses of offerings by them. In the first quarter of fiscal 2015 and 2014, the Company effected such registrations and paid offering expenses (excluding underwriting discounts and commissions, which were paid be the selling stockholders) on behalf of Apollo affiliates; such costs were $0.2 million and $0.9 million, respectively. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Business Segment Information | ' | ||||||||
Business Segment Information | |||||||||
The results of operations are reported in two business segments, consisting of the Process & Motion Control platform and the Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services specified, highly engineered mechanical components used within complex systems where our customers' reliability requirements and cost of failure or downtime is extremely high. The Process & Motion Control product portfolio includes gears, couplings, industrial bearings, aerospace bearings and seals, FlatTop™ chain, engineered chain and conveying equipment. This segment serves a diverse group of end markets, including mining, general industrial applications, cement and aggregates, agriculture, forest and wood products, petrochemical, energy, food & beverage, aerospace and wind energy. The Water Management platform designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade specification drainage products, flush valves and faucet products, backflow prevention pressure release valves and PEX piping used in non-residential construction end-markets and engineered valves and gates for the water and wastewater treatment market. The financial information of the Company's segments is regularly evaluated by the chief operating decision maker in determining resource allocation and assessing performance. Management evaluates the performance of each business segment based on its operating results. The same accounting policies are used throughout the organization (see Note 1). | |||||||||
Business Segment Information: | |||||||||
(in Millions) | |||||||||
First Quarter Ended | |||||||||
June 30, 2014 | June 29, 2013 | ||||||||
Product information | |||||||||
Process & Motion Control: | |||||||||
Original Equipment Manufacturers/ End-Users | $ | 166.3 | $ | 168.8 | |||||
Aftermarket | 138.3 | 145.8 | |||||||
Total Process & Motion Control | 304.6 | 314.6 | |||||||
Water Management | |||||||||
Water Safety, Quality, Flow Control and Conservation | 131.8 | 117.4 | |||||||
Water Infrastructure | 73.4 | 76.7 | |||||||
Total Water Management | 205.2 | 194.1 | |||||||
Consolidated | $ | 509.8 | $ | 508.7 | |||||
Income (loss) from operations | |||||||||
Process & Motion Control | $ | 48.3 | $ | 51.3 | |||||
Water Management | 18.5 | 18.7 | |||||||
Corporate | (9.2 | ) | (9.0 | ) | |||||
Consolidated | $ | 57.6 | $ | 61 | |||||
Non-operating expense: | |||||||||
Interest expense, net | $ | (22.5 | ) | $ | (35.0 | ) | |||
Loss on the extinguishment of debt | — | (4.0 | ) | ||||||
Other expense, net | (1.3 | ) | (6.2 | ) | |||||
Income from operations before income taxes | 33.8 | 15.8 | |||||||
Provision for income taxes | 21.8 | 2.2 | |||||||
Net income | 12 | 13.6 | |||||||
Non-controlling interest loss | (0.1 | ) | (0.2 | ) | |||||
Net income attributable to Rexnord | $ | 12.1 | $ | 13.8 | |||||
Depreciation and Amortization | |||||||||
Process & Motion Control | $ | 19 | $ | 18.3 | |||||
Water Management | 9.6 | 9.2 | |||||||
Consolidated | $ | 28.6 | $ | 27.5 | |||||
Capital Expenditures | |||||||||
Process & Motion Control | $ | 7.7 | $ | 6 | |||||
Water Management | 1 | 1.8 | |||||||
Consolidated | $ | 8.7 | $ | 7.8 | |||||
June 30, 2014 | 31-Mar-14 | ||||||||
Total Assets | |||||||||
Process & Motion Control | $ | 2,276.80 | $ | 2,251.70 | |||||
Water Management | 1,063.70 | 1,039.00 | |||||||
Corporate | 13.9 | 92.8 | |||||||
Consolidated | $ | 3,354.40 | $ | 3,383.50 | |||||
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers in order to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The guidance specifies revenue should be recognized in the amount that reflects the consideration the company expects to be entitled to in exchange for the transfer of promised goods or services to customers. ASU 2014-09 will be effective for the Company in the first quarter of fiscal 2017 and allows for full retrospective adoption applied to all periods presented or retrospective adoption with the cumulative effect of initially applying this update recognized at the date of initial application. The Company is currently evaluating the method of adoption and the potential impact adoption will have on our consolidated financial statements. | |
In March 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08"), which changes the criteria for reporting discontinued operations. ASU 2014-08 allows only disposals representing a strategic shift in operations to be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. In addition, the new guidance requires expanded disclosures about discontinued operations, as well as pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. ASU 2014-08 will be effective for the Company in the first quarter of fiscal 2016. As this guidance is a prospective change, adoption of this standard is not expected to have a material impact on the Company's results of operations, financial position or cash flows. |
Restructuring_and_Other_Simila1
Restructuring and Other Similar Costs (Tables) | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Restructuring and Other Similar Costs Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||||||
The following table summarizes the Company's restructuring costs during the three months ended June 30, 2014 and June 29, 2013 by classification of operating segment (in millions): | |||||||||||||||||
Restructuring Costs | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Process & Motion Control | Water Management | Corporate | Consolidated | ||||||||||||||
Severance costs | $ | 1.5 | $ | 0.7 | $ | — | $ | 2.2 | |||||||||
Lease termination and other costs | 0.4 | 0.8 | — | 1.2 | |||||||||||||
Total restructuring and other similar costs | $ | 1.9 | $ | 1.5 | $ | — | $ | 3.4 | |||||||||
Restructuring Costs | |||||||||||||||||
Three Months Ended June 29, 2013 | |||||||||||||||||
Process & Motion Control | Water Management | Corporate | Consolidated | ||||||||||||||
Severance costs | $ | 0.4 | $ | 0.7 | $ | 0.4 | $ | 1.5 | |||||||||
Lease termination and other costs | 0.2 | 0.1 | — | 0.3 | |||||||||||||
Total restructuring and other similar costs | $ | 0.6 | $ | 0.8 | $ | 0.4 | $ | 1.8 | |||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | ||||||||||||||||
The following table summarizes the activity in the Company's restructuring accrual for the three months ended June 30, 2014 (in millions): | |||||||||||||||||
Severance Costs | Lease Termination and Other Costs | Total | |||||||||||||||
Restructuring accrual, March 31, 2014 | $ | 3.7 | $ | 0.4 | $ | 4.1 | |||||||||||
Charges | 2.2 | 1.2 | 3.4 | ||||||||||||||
Cash payments | (2.7 | ) | (0.3 | ) | (3.0 | ) | |||||||||||
Non-cash charges | — | (0.8 | ) | (0.8 | ) | ||||||||||||
Restructuring accrual, June 30, 2014 (1) | $ | 3.2 | $ | 0.5 | $ | 3.7 | |||||||||||
-1 | The restructuring accrual is included in other current liabilities in the condensed consolidated balance sheets. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | ' | |||||||||||||||||||||||||||||||
Stockholders' equity consists of the following (in millions): | ||||||||||||||||||||||||||||||||
Preferred Stock | Common | Additional | Retained | Accumulated | Treasury Stock | Non-controlling Interest (1) | Total | |||||||||||||||||||||||||
Stock | Paid-In | Deficit | Other | Stockholders’ | ||||||||||||||||||||||||||||
Capital | Comprehensive | Equity | ||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | — | $ | 1 | $ | 872.7 | $ | (281.3 | ) | $ | (23.8 | ) | $ | (6.3 | ) | $ | (0.2 | ) | $ | 562.1 | ||||||||||||
Total comprehensive income (loss) | — | — | — | 12.1 | (5.7 | ) | — | (0.1 | ) | 6.3 | ||||||||||||||||||||||
Stock-based compensation expense | — | — | 1.6 | — | — | — | — | 1.6 | ||||||||||||||||||||||||
Exercise of stock options, net of shares surrendered | — | — | 0.4 | — | — | — | — | 0.4 | ||||||||||||||||||||||||
Tax benefit on stock option exercises | — | — | 1.6 | — | — | — | — | 1.6 | ||||||||||||||||||||||||
Balance at June 30, 2014 | $ | — | $ | 1 | $ | 876.3 | $ | (269.2 | ) | $ | (29.5 | ) | $ | (6.3 | ) | $ | (0.3 | ) | $ | 572 | ||||||||||||
____________________ | ||||||||||||||||||||||||||||||||
(1) Represents a 49% non-controlling interest in a Water Management joint venture. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The changes in accumulated other comprehensive loss, net of tax, for the three months ended June 30, 2014 are as follows (in millions): | |||||||||||||||||
Interest Rate Derivatives | Foreign Currency Translation | Pension and Postretirement Plans | Total | ||||||||||||||
Balance at March 31, 2014 | $ | (1.7 | ) | $ | 7.8 | $ | (29.9 | ) | $ | (23.8 | ) | ||||||
Other comprehensive income before reclassifications | (3.7 | ) | (1.7 | ) | — | (5.4 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | (0.3 | ) | (0.3 | ) | |||||||||||
Net current period other comprehensive loss | (3.7 | ) | (1.7 | ) | (0.3 | ) | (5.7 | ) | |||||||||
Balance at June 30, 2014 | $ | (5.4 | ) | $ | 6.1 | $ | (30.2 | ) | $ | (29.5 | ) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the three months ended June 30, 2014 and June 29, 2013 (in millions): | |||||||||||||||||
First Quarter Ended | |||||||||||||||||
June 30, 2014 | June 29, 2013 | Income Statement Line | |||||||||||||||
Pension and other postretirement plans | |||||||||||||||||
Amortization of prior service credit | $ | (0.5 | ) | $ | (0.5 | ) | Selling, general and administrative expenses | ||||||||||
Provision for income taxes | 0.2 | 0.2 | |||||||||||||||
Total net of tax | $ | (0.3 | ) | $ | (0.3 | ) |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Schedule of Inventory, Current | ' | |||||||
The major classes of inventories are summarized as follows (in millions): | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Finished goods | $ | 239.2 | $ | 227.4 | ||||
Work in progress | 76.7 | 72.4 | ||||||
Raw materials | 63 | 58 | ||||||
Inventories at First-in, First-Out ("FIFO") cost | 378.9 | 357.8 | ||||||
Adjustment to state inventories at Last-in, First-Out ("LIFO") cost | 1.7 | 1.9 | ||||||
$ | 380.6 | $ | 359.7 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | ' | ||||||||||||||||||||||||
The changes in the net carrying value of goodwill and identifiable intangible assets for the three months ended June 30, 2014 by operating segment, are presented below (in millions): | |||||||||||||||||||||||||
Amortizable Intangible Assets | |||||||||||||||||||||||||
Goodwill | Indefinite Lived Intangible Assets (tradenames) | Tradenames | Customer Relationships | Patents | Total Identifiable Intangible Assets Excluding Goodwill | ||||||||||||||||||||
Process & Motion Control | |||||||||||||||||||||||||
Net carrying amount as of March 31, 2014 | $ | 904 | $ | 197.6 | $ | 1.9 | $ | 94.4 | $ | 3.7 | $ | 297.6 | |||||||||||||
Acquisitions | — | — | — | — | — | — | |||||||||||||||||||
Amortization | — | — | (0.1 | ) | (7.6 | ) | (0.3 | ) | (8.0 | ) | |||||||||||||||
Currency translation adjustment and other | (2.0 | ) | 0.3 | — | 0.1 | — | 0.4 | ||||||||||||||||||
Net carrying amount as of June 30, 2014 | $ | 902 | $ | 197.9 | $ | 1.8 | $ | 86.9 | $ | 3.4 | $ | 290 | |||||||||||||
Water Management | |||||||||||||||||||||||||
Net carrying amount as of March 31, 2014 | $ | 246.7 | $ | 140.8 | $ | — | $ | 147 | $ | 7.2 | $ | 295 | |||||||||||||
Acquisitions | 20.3 | — | 1.6 | 7.3 | 1.5 | 10.4 | |||||||||||||||||||
Amortization | — | — | (0.1 | ) | (4.8 | ) | (0.6 | ) | (5.5 | ) | |||||||||||||||
Currency translation adjustment and other | (0.4 | ) | (0.2 | ) | — | (0.2 | ) | — | (0.4 | ) | |||||||||||||||
Net carrying amount as of June 30, 2014 | $ | 266.6 | $ | 140.6 | $ | 1.5 | $ | 149.3 | $ | 8.1 | $ | 299.5 | |||||||||||||
Consolidated | |||||||||||||||||||||||||
Net carrying amount as of March 31, 2014 | $ | 1,150.70 | $ | 338.4 | $ | 1.9 | $ | 241.4 | $ | 10.9 | $ | 592.6 | |||||||||||||
Acquisitions | 20.3 | — | 1.6 | 7.3 | 1.5 | 10.4 | |||||||||||||||||||
Amortization | — | — | (0.2 | ) | (12.4 | ) | (0.9 | ) | (13.5 | ) | |||||||||||||||
Currency translation adjustment and other | (2.4 | ) | 0.1 | — | (0.1 | ) | — | — | |||||||||||||||||
Net carrying amount as of June 30, 2014 | $ | 1,168.60 | $ | 338.5 | $ | 3.3 | $ | 236.2 | $ | 11.5 | $ | 589.5 | |||||||||||||
Schedule of Intangible Assets (Excluding Goodwill) | ' | ||||||||||||||||||||||||
The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of June 30, 2014 and March 31, 2014 are as follows (in millions): | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Weighted Average Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Patents | 10 years | $ | 40.2 | $ | (28.7 | ) | $ | 11.5 | |||||||||||||||||
Customer relationships (including distribution network) | 13 years | 591.5 | (355.3 | ) | 236.2 | ||||||||||||||||||||
Tradenames | 7 years | 3.6 | (0.3 | ) | 3.3 | ||||||||||||||||||||
Intangible assets not subject to amortization - tradenames | 338.5 | — | 338.5 | ||||||||||||||||||||||
$ | 973.8 | $ | (384.3 | ) | $ | 589.5 | |||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Weighted Average Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Patents | 10 years | $ | 38.7 | $ | (27.8 | ) | $ | 10.9 | |||||||||||||||||
Customer relationships (including distribution network) | 12 years | 584.3 | (342.9 | ) | 241.4 | ||||||||||||||||||||
Tradenames | 7 years | 2 | (0.1 | ) | 1.9 | ||||||||||||||||||||
Intangible assets not subject to amortization - tradenames | 338.4 | — | 338.4 | ||||||||||||||||||||||
$ | 963.4 | $ | (370.8 | ) | $ | 592.6 | |||||||||||||||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of Other Current Liabilities | ' | |||||||
Other current liabilities are summarized as follows (in millions): | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
Customer advances | $ | 8.3 | $ | 8.1 | ||||
Sales rebates | 15.9 | 22.7 | ||||||
Commissions | 7.7 | 7.9 | ||||||
Restructuring and other similar charges (1) | 3.7 | 4.1 | ||||||
Product warranty (2) | 7.6 | 8.6 | ||||||
Risk management (3) | 9.5 | 9.1 | ||||||
Legal and environmental | 2.9 | 4.5 | ||||||
Deferred income taxes | 15.6 | 10.9 | ||||||
Taxes, other than income taxes | 7.9 | 9.5 | ||||||
Income taxes payable | 11.8 | 11.2 | ||||||
Other | 15.3 | 15.6 | ||||||
$ | 106.2 | $ | 112.2 | |||||
____________________ | ||||||||
-1 | See more information related to the restructuring obligations within Note 3. | |||||||
-2 | See more information related to the product warranty obligations within Note 14. | |||||||
-3 | Includes projected liabilities related to losses arising from automobile, general and product liability claims. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt | ' | ||||||||
Long-term debt is summarized as follows (in millions): | |||||||||
June 30, 2014 | March 31, 2014 | ||||||||
Term loan (1) | $ | 1,917.80 | $ | 1,921.90 | |||||
New Market Tax Credit (2) | 37.4 | 37.4 | |||||||
8.875% senior notes due 2016 | 1.3 | 1.3 | |||||||
Other (3) | 15.8 | 11.4 | |||||||
Total | 1,972.30 | 1,972.00 | |||||||
Less current maturities | 33.4 | 29 | |||||||
Long-term debt | $ | 1,938.90 | $ | 1,943.00 | |||||
____________________ | |||||||||
-1 | Includes an unamortized original issue discount of $17.6 million and $18.3 million at June 30, 2014 and March 31, 2014, respectively. | ||||||||
-2 | In connection with the New Market Tax Credit incentive program, the Company also provided an aggregate $27.6 million in the form of a loan receivable. The aggregate loan receivable is presented within Other Assets on the condensed consolidated balance sheets as of June 30, 2014 and March 31, 2014. | ||||||||
-3 | Includes additional debt at various wholly-owned subsidiaries, comprised primarily of borrowings at foreign subsidiaries and capital lease obligations. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||
Fair value of derivatives designated as hedging instruments under ASC 815: | |||||||||||
June 30, 2014 | March 31, 2014 | Balance Sheet Classification | |||||||||
Liability Derivatives | |||||||||||
Interest rate swaps | $ | 8.7 | $ | 2.7 | Other long-term liabilities | ||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||
Fair value of derivatives not designated as hedging instruments under ASC 815: | |||||||||||
June 30, 2014 | March 31, 2014 | Balance Sheet Classification | |||||||||
Asset Derivatives | |||||||||||
Foreign currency forward contracts | $ | — | $ | 0.1 | Other current assets | ||||||
Liability Derivatives | |||||||||||
Foreign currency forward contracts | $ | 0.4 | $ | — | Other current liabilities | ||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
The following table indicates the location and the amount of gains or losses associated with the Company's derivative instruments, net of tax, within the condensed consolidated balance sheets (for qualifying ASC 815 instruments) and recognized within the condensed consolidated statements of operations. The information is segregated between designated, qualifying ASC 815 hedging instruments and non-qualifying, non-designated hedging instruments (in millions). As of June 30, 2014, there was no ineffectiveness on the Company's designated hedging instruments. | |||||||||||
Amount of loss recognized in accumulated other comprehensive loss on derivatives | |||||||||||
Derivative instruments designated as cash flow hedging relationships under ASC 815 | |||||||||||
30-Jun-14 | 31-Mar-14 | ||||||||||
Interest rate swaps | $ | 3.7 | $ | 1.7 | |||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||
Amount recognized in other expense, net | |||||||||||
Derivative instruments not designated as hedging instruments under ASC 815 | Condensed Consolidated Statements of Operations Classification | First Quarter Ended | |||||||||
June 30, 2014 | June 29, 2013 | ||||||||||
Foreign currency forward contracts | Other expense, net | $ | (0.4 | ) | $ | 0.3 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ||||||||||||||||
The following table provides a summary of the Company's assets and liabilities recognized at fair value on a recurring basis as of June 30, 2014 and March 31, 2014 (in millions): | |||||||||||||||||
Fair Value as of June 30, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Liabilities: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 0.4 | $ | — | $ | 0.4 | |||||||||
Interest rate swaps | — | 8.7 | — | 8.7 | |||||||||||||
Total liabilities at fair value | $ | — | $ | 9.1 | $ | — | $ | 9.1 | |||||||||
Fair Value as of March 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||||
Total assets at fair value | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swaps | $ | — | $ | 2.7 | $ | — | $ | 2.7 | |||||||||
Total liabilities at fair value | $ | — | $ | 2.7 | $ | — | $ | 2.7 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability | ' | ||||||||
The following table presents changes in the Company's product warranty liability (in millions): | |||||||||
Three Months Ended | |||||||||
30-Jun-14 | 29-Jun-13 | ||||||||
Balance at beginning of period | $ | 8.6 | $ | 8.8 | |||||
Charged to operations | — | 1.1 | |||||||
Claims settled | (1.0 | ) | (0.9 | ) | |||||
Balance at end of period | $ | 7.6 | $ | 9 | |||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | |||||||
Schedule of Net Benefit Costs | ' | |||||||
The components of net periodic benefit cost are as follows (in millions): | ||||||||
Three Months Ended | ||||||||
June 30, 2014 | June 29, 2013 | |||||||
Pension Benefits: | ||||||||
Service cost | $ | 0.4 | $ | 0.5 | ||||
Interest cost | 7.7 | 7.3 | ||||||
Expected return on plan assets | (7.7 | ) | (7.7 | ) | ||||
Amortization of: | ||||||||
Prior service cost | — | 0.1 | ||||||
Net periodic benefit cost | $ | 0.4 | $ | 0.2 | ||||
Other Postretirement Benefits: | ||||||||
Service cost | $ | — | $ | — | ||||
Interest cost | 0.3 | 0.3 | ||||||
Amortization: | ||||||||
Prior service credit | (0.5 | ) | (0.5 | ) | ||||
Net periodic benefit credit | $ | (0.2 | ) | $ | (0.2 | ) |
Stock_Options_Tables
Stock Options (Tables) | 3 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Stock Options [Abstract] | ' | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||||||||
The following table presents the Company's stock option activity during the first three months of fiscal 2015 and 2014, respectively: | ||||||||||||||
Period from April 1, 2014 through June 30, 2014 | Period from April 1, 2013 through June 29, 2013 | |||||||||||||
Shares | Weighted Avg. Exercise Price | Shares | Weighted Avg. Exercise Price | |||||||||||
Number of shares under option: | ||||||||||||||
Outstanding at beginning of period | 8,652,834 | $ | 10.79 | 9,450,197 | $ | 9.85 | ||||||||
Granted | — | — | 881,940 | 19 | ||||||||||
Exercised | (206,155 | ) | 7.19 | (116,172 | ) | 5.24 | ||||||||
Canceled/Forfeited | (104,148 | ) | 20 | (204,406 | ) | 21.36 | ||||||||
Outstanding at end of period (1) | 8,342,531 | $ | 10.76 | 10,011,559 | $ | 10.47 | ||||||||
Exercisable at end of period (2) | 5,039,432 | $ | 5.45 | 5,783,533 | $ | 5.34 | ||||||||
______________________ | ||||||||||||||
-1 | The weighted average remaining contractual life of options outstanding at June 30, 2014 is 5.2 years. | |||||||||||||
-2 | The weighted average remaining contractual life of options exercisable at June 30, 2014 is 3.4 years. |
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||
Business Segment Information: | |||||||||
(in Millions) | |||||||||
First Quarter Ended | |||||||||
June 30, 2014 | June 29, 2013 | ||||||||
Product information | |||||||||
Process & Motion Control: | |||||||||
Original Equipment Manufacturers/ End-Users | $ | 166.3 | $ | 168.8 | |||||
Aftermarket | 138.3 | 145.8 | |||||||
Total Process & Motion Control | 304.6 | 314.6 | |||||||
Water Management | |||||||||
Water Safety, Quality, Flow Control and Conservation | 131.8 | 117.4 | |||||||
Water Infrastructure | 73.4 | 76.7 | |||||||
Total Water Management | 205.2 | 194.1 | |||||||
Consolidated | $ | 509.8 | $ | 508.7 | |||||
Income (loss) from operations | |||||||||
Process & Motion Control | $ | 48.3 | $ | 51.3 | |||||
Water Management | 18.5 | 18.7 | |||||||
Corporate | (9.2 | ) | (9.0 | ) | |||||
Consolidated | $ | 57.6 | $ | 61 | |||||
Non-operating expense: | |||||||||
Interest expense, net | $ | (22.5 | ) | $ | (35.0 | ) | |||
Loss on the extinguishment of debt | — | (4.0 | ) | ||||||
Other expense, net | (1.3 | ) | (6.2 | ) | |||||
Income from operations before income taxes | 33.8 | 15.8 | |||||||
Provision for income taxes | 21.8 | 2.2 | |||||||
Net income | 12 | 13.6 | |||||||
Non-controlling interest loss | (0.1 | ) | (0.2 | ) | |||||
Net income attributable to Rexnord | $ | 12.1 | $ | 13.8 | |||||
Depreciation and Amortization | |||||||||
Process & Motion Control | $ | 19 | $ | 18.3 | |||||
Water Management | 9.6 | 9.2 | |||||||
Consolidated | $ | 28.6 | $ | 27.5 | |||||
Capital Expenditures | |||||||||
Process & Motion Control | $ | 7.7 | $ | 6 | |||||
Water Management | 1 | 1.8 | |||||||
Consolidated | $ | 8.7 | $ | 7.8 | |||||
June 30, 2014 | 31-Mar-14 | ||||||||
Total Assets | |||||||||
Process & Motion Control | $ | 2,276.80 | $ | 2,251.70 | |||||
Water Management | 1,063.70 | 1,039.00 | |||||||
Corporate | 13.9 | 92.8 | |||||||
Consolidated | $ | 3,354.40 | $ | 3,383.50 | |||||
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies Immaterial Out-of-Period Adjustment (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Accounting Policies [Abstract] | ' |
Immaterial out of period adjustment | $5.30 |
Acquisition_Details
Acquisition (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 28, 2013 | Apr. 15, 2014 | Dec. 16, 2013 | Aug. 30, 2013 | Aug. 21, 2013 | Apr. 26, 2013 | Dec. 28, 2013 |
In Millions, unless otherwise specified | Green Turtle [Member] | Precision Gear Holdings [Member] | L.W. Gemmell [Member] | Micro Precision [Member] | Klamflex [Member] | Water Management French Sales Office [Member] | |||
Rate | |||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | ' | ' | ' | 15-Apr-14 | 16-Dec-13 | 30-Aug-13 | 21-Aug-13 | 26-Apr-13 | ' |
Business Combination, Consideration Transferred | ' | ' | ' | $27.70 | $77.10 | $8.20 | $22.20 | $4.50 | ' |
Goodwill | 1,168.60 | 1,150.70 | ' | 20.3 | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | ' | 25.1 | 10.4 | ' | ' | ' | ' | ' |
Net liabilities other than goodwill, intangibles, and property, plant, and equipment | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | ' | ' | 24.9 | ' | ' | ' | ' | ' | ' |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | ' | ' | 22.8 | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | ' | ' | 36.7 | ' | ' | ' | ' | ' | ' |
Net assets other than goodwill, intangibles, and property, plant, and equipment | ' | ' | $25.30 | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% |
Non-controlling interest (ownership percentage) | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% |
Restructuring_Cost_To_Date_by_
Restructuring Cost To Date by Segment (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | $3.40 | $1.80 |
Severance costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 2.2 | 1.5 |
Lease termination and other costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 1.2 | 0.3 |
Process & Motion Control | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 1.9 | 0.6 |
Process & Motion Control | Severance costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 1.5 | 0.4 |
Process & Motion Control | Lease termination and other costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 0.4 | 0.2 |
Water Management | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 1.5 | 0.8 |
Water Management | Severance costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 0.7 | 0.7 |
Water Management | Lease termination and other costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 0.8 | 0.1 |
Corporate | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 0 | 0.4 |
Corporate | Severance costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | 0 | 0.4 |
Corporate | Lease termination and other costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Charges | $0 | $0 |
Restructuring_Reserve_Rollforw
Restructuring Reserve Rollforward (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 | |
Restructuring Reserve [Roll Forward] | ' | ' | |
Restructuring accrual, March 31, 2014 | $4.10 | ' | |
Charges | 3.4 | 1.8 | |
Cash payments | -3 | ' | |
Restructuring Reserve, Settled without Cash | 0.8 | ' | |
Restructuring accrual, June 30, 2014 | 3.7 | [1] | ' |
Severance costs | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | |
Restructuring accrual, March 31, 2014 | 3.7 | ' | |
Charges | 2.2 | ' | |
Cash payments | -2.7 | ' | |
Restructuring Reserve, Settled without Cash | 0 | ' | |
Restructuring accrual, June 30, 2014 | 3.2 | [1] | ' |
Lease termination and other costs | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | |
Restructuring accrual, March 31, 2014 | 0.4 | ' | |
Charges | 1.2 | ' | |
Cash payments | -0.3 | ' | |
Restructuring Reserve, Settled without Cash | 0.8 | ' | |
Restructuring accrual, June 30, 2014 | $0.50 | [1] | ' |
[1] | The restructuring accrual is included in other current liabilities in the condensed consolidated balance sheets. |
Effective_Tax_Rate_Details
Effective Tax Rate (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Rate | Rate | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' |
Current Income Tax Expense (Benefit) | $21.80 | $2.20 |
Effective Income Tax Rate, Continuing Operations | 64.50% | 13.90% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% |
Write-off, deferred tax assets | $10.10 | ' |
Effective Income Tax Rate excluding write-off of deferred tax assets, Percent | 34.60% | ' |
Unrecognized_Tax_Benefits_Deta
Unrecognized Tax Benefits (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 | Mar. 31, 2014 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ' | ' | ' |
Unrecognized Tax Benefits | $25.50 | ' | $23.60 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 10.2 | ' | 9.9 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | ($0.20) | ($0.50) | ' |
Recognized_Tax_Interest_and_Pe
Recognized Tax Interest and Penalties (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Jun. 29, 2013 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ' | ' |
Income tax examination, penalties and interest paid | $0.40 | $0.70 |
AntiDilutive_Shares_Details
Anti-Dilutive Shares (Details) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 29, 2013 | |
Earnings per Share Disclosure [Abstract] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 86,909 | 3,612,487 |
Stockholders_Equity_Rollforwar
Stockholders' Equity Rollforward (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 | |
Balance at March 31, 2014 | $562.10 | ' | |
Total comprehensive income (loss) | 6.3 | 10.8 | |
Net income attributable to Rexnord | 12.1 | 13.8 | |
Net current period other comprehensive loss | -5.7 | -2.8 | |
Comprehensive (Income) Loss, Net of Tax, Attributable to Noncontrolling Interest | 0.1 | 0.2 | |
Stock-based compensation expense | 1.6 | ' | |
Stock-based compensation expense | 1.6 | 1.5 | |
Exercise of stock options, net of shares surrendered | 0.4 | ' | |
Tax benefit on stock option exercises | 1.6 | ' | |
Balance at June 30, 2014 | 572 | ' | |
Preferred Stock | ' | ' | |
Balance at March 31, 2014 | 0 | ' | |
Total comprehensive income (loss) | 0 | ' | |
Stock-based compensation expense | 0 | ' | |
Exercise of stock options, net of shares surrendered | 0 | ' | |
Tax benefit on stock option exercises | 0 | ' | |
Balance at June 30, 2014 | 0 | ' | |
Common Stock | ' | ' | |
Balance at March 31, 2014 | 1 | ' | |
Total comprehensive income (loss) | 0 | ' | |
Stock-based compensation expense | 0 | ' | |
Exercise of stock options, net of shares surrendered | 0 | ' | |
Tax benefit on stock option exercises | 0 | ' | |
Balance at June 30, 2014 | 1 | ' | |
Additional Paid-In Capital | ' | ' | |
Balance at March 31, 2014 | 872.7 | ' | |
Total comprehensive income (loss) | 0 | ' | |
Stock-based compensation expense | 1.6 | ' | |
Exercise of stock options, net of shares surrendered | 0.4 | ' | |
Tax benefit on stock option exercises | 1.6 | ' | |
Balance at June 30, 2014 | 876.3 | ' | |
Retained Deficit | ' | ' | |
Balance at March 31, 2014 | -281.3 | ' | |
Net income attributable to Rexnord | 12.1 | ' | |
Stock-based compensation expense | 0 | ' | |
Exercise of stock options, net of shares surrendered | 0 | ' | |
Tax benefit on stock option exercises | 0 | ' | |
Balance at June 30, 2014 | -269.2 | ' | |
Accumulated Other Comprehensive Loss | ' | ' | |
Balance at March 31, 2014 | -23.8 | ' | |
Net current period other comprehensive loss | -5.7 | ' | |
Stock-based compensation expense | 0 | ' | |
Exercise of stock options, net of shares surrendered | 0 | ' | |
Tax benefit on stock option exercises | 0 | ' | |
Balance at June 30, 2014 | -29.5 | ' | |
Treasury Stock | ' | ' | |
Balance at March 31, 2014 | -6.3 | ' | |
Total comprehensive income (loss) | 0 | ' | |
Stock-based compensation expense | 0 | ' | |
Exercise of stock options, net of shares surrendered | 0 | ' | |
Tax benefit on stock option exercises | 0 | ' | |
Balance at June 30, 2014 | -6.3 | ' | |
Non-controlling Interest | ' | ' | |
Balance at March 31, 2014 | -0.2 | [1] | ' |
Comprehensive (Income) Loss, Net of Tax, Attributable to Noncontrolling Interest | -0.1 | ' | |
Stock-based compensation expense | 0 | [1] | ' |
Exercise of stock options, net of shares surrendered | 0 | [1] | ' |
Tax benefit on stock option exercises | 0 | [1] | ' |
Balance at June 30, 2014 | ($0.30) | [1] | ' |
Non-controlling interest (ownership percentage) | 49.00% | ' | |
[1] | Represents a 49% non-controlling interest in a Water Management joint venture. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance at beginning of period | ($23.80) | ' |
Other comprehensive income before reclassifications | -5.4 | ' |
Amounts reclassified from accumulated other comprehensive loss | -0.3 | ' |
Net current period other comprehensive loss | -5.7 | -2.8 |
Balance at end of period | -29.5 | ' |
Interest Rate Derivatives | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance at beginning of period | -1.7 | ' |
Other comprehensive income before reclassifications | -3.7 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | ' |
Net current period other comprehensive loss | -3.7 | ' |
Balance at end of period | -5.4 | ' |
Foreign Currency Translation | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance at beginning of period | 7.8 | ' |
Other comprehensive income before reclassifications | -1.7 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | ' |
Net current period other comprehensive loss | -1.7 | ' |
Balance at end of period | 6.1 | ' |
Pension and Postretirement Plans | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance at beginning of period | -29.9 | ' |
Other comprehensive income before reclassifications | 0 | ' |
Amounts reclassified from accumulated other comprehensive loss | -0.3 | ' |
Net current period other comprehensive loss | -0.3 | ' |
Balance at end of period | ($30.20) | ' |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Amortization of prior service credit | $104.80 | $106.60 |
Provision for income taxes | 21.8 | 2.2 |
Net income | 12 | 13.6 |
Pension and Postretirement Plans | Amortization of prior service credit | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Amortization of prior service credit | -0.5 | -0.5 |
Provision for income taxes | 0.2 | 0.2 |
Net income | $0.30 | $0.30 |
Inventory_by_Category_Details
Inventory by Category (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Finished goods | $239.20 | $227.40 |
Work in progress | 76.7 | 72.4 |
Raw materials | 63 | 58 |
Inventories at First-in, First-Out (FIFO) cost | 378.9 | 357.8 |
Adjustment to state inventories at Last-in, First-Out (LIFO) cost | 1.7 | 1.9 |
Inventories, net | $380.60 | $359.70 |
Goodwill_and_Identifiable_Inta
Goodwill and Identifiable Intangible Assets (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Goodwill [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | $1,150.70 | ' |
Acquisitions | 20.3 | ' |
Amortization | 0 | ' |
Currency translation adjustment and other | -2.4 | ' |
Net carrying amount as of June 30, 2014 | 1,168.60 | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 338.4 | ' |
Acquisitions | 0 | ' |
Amortization | 0 | ' |
Currency translation adjustment and other | 0.1 | ' |
Net carrying amount as of June 30, 2014 | 338.5 | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Amortization | -13.5 | -12.5 |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 592.6 | ' |
Intangible assets (excluding goodwill), acquired during period | 10.4 | ' |
Amortization | -13.5 | -12.5 |
Currency translation adjustment and other | 0 | ' |
Net carrying amount as of June 30, 2014 | 589.5 | ' |
Trade names | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 1.9 | ' |
Acquisitions | 1.6 | ' |
Amortization | -0.2 | ' |
Currency translation adjustment and other | 0 | ' |
Net carrying amount as of June 30, 2014 | 3.3 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | -0.2 | ' |
Customer Relationships | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 241.4 | ' |
Acquisitions | 7.3 | ' |
Amortization | -12.4 | ' |
Currency translation adjustment and other | -0.1 | ' |
Net carrying amount as of June 30, 2014 | 236.2 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | -12.4 | ' |
Patents | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 10.9 | ' |
Acquisitions | 1.5 | ' |
Amortization | -0.9 | ' |
Currency translation adjustment and other | 0 | ' |
Net carrying amount as of June 30, 2014 | 11.5 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | -0.9 | ' |
Process & Motion Control | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 904 | ' |
Acquisitions | 0 | ' |
Amortization | 0 | ' |
Currency translation adjustment and other | -2 | ' |
Net carrying amount as of June 30, 2014 | 902 | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 197.6 | ' |
Acquisitions | 0 | ' |
Amortization | 0 | ' |
Currency translation adjustment and other | 0.3 | ' |
Net carrying amount as of June 30, 2014 | 197.9 | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Amortization | -8 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 297.6 | ' |
Intangible assets (excluding goodwill), acquired during period | 0 | ' |
Amortization | -8 | ' |
Currency translation adjustment and other | 0.4 | ' |
Net carrying amount as of June 30, 2014 | 290 | ' |
Process & Motion Control | Trade names | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 1.9 | ' |
Acquisitions | 0 | ' |
Amortization | -0.1 | ' |
Currency translation adjustment and other | 0 | ' |
Net carrying amount as of June 30, 2014 | 1.8 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | -0.1 | ' |
Process & Motion Control | Customer Relationships | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 94.4 | ' |
Acquisitions | 0 | ' |
Amortization | -7.6 | ' |
Currency translation adjustment and other | 0.1 | ' |
Net carrying amount as of June 30, 2014 | 86.9 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | -7.6 | ' |
Process & Motion Control | Patents | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 3.7 | ' |
Acquisitions | 0 | ' |
Amortization | -0.3 | ' |
Currency translation adjustment and other | 0 | ' |
Net carrying amount as of June 30, 2014 | 3.4 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | -0.3 | ' |
Water Management | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 246.7 | ' |
Acquisitions | 20.3 | ' |
Amortization | 0 | ' |
Currency translation adjustment and other | -0.4 | ' |
Net carrying amount as of June 30, 2014 | 266.6 | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 140.8 | ' |
Acquisitions | 0 | ' |
Amortization | 0 | ' |
Currency translation adjustment and other | -0.2 | ' |
Net carrying amount as of June 30, 2014 | 140.6 | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Amortization | -5.5 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 295 | ' |
Intangible assets (excluding goodwill), acquired during period | 10.4 | ' |
Amortization | -5.5 | ' |
Currency translation adjustment and other | -0.4 | ' |
Net carrying amount as of June 30, 2014 | 299.5 | ' |
Water Management | Trade names | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 0 | ' |
Acquisitions | 1.6 | ' |
Amortization | -0.1 | ' |
Currency translation adjustment and other | 0 | ' |
Net carrying amount as of June 30, 2014 | 1.5 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | -0.1 | ' |
Water Management | Customer Relationships | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 147 | ' |
Acquisitions | 7.3 | ' |
Amortization | -4.8 | ' |
Currency translation adjustment and other | -0.2 | ' |
Net carrying amount as of June 30, 2014 | 149.3 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | -4.8 | ' |
Water Management | Patents | ' | ' |
Finite-lived Intangible Assets [Roll Forward] | ' | ' |
Net carrying amount as of March 31, 2014 | 7.2 | ' |
Acquisitions | 1.5 | ' |
Amortization | -0.6 | ' |
Currency translation adjustment and other | 0 | ' |
Net carrying amount as of June 30, 2014 | 8.1 | ' |
Intangibles (Excluding Goodwill) [Roll Forward] | ' | ' |
Amortization | ($0.60) | ' |
Intangible_Asset_Schedule_Deta
Intangible Asset Schedule (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Finite-Lived Intangible Assets [Abstract] | ' | ' |
Accumulated amortization | ($384.30) | ($370.80) |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' |
Carrying amount of indefinite-lived intangible assets | 338.5 | 338.4 |
Gross carrying amount | 973.8 | 963.4 |
Net carrying amount | 589.5 | 592.6 |
Patents | ' | ' |
Finite-Lived Intangible Assets [Abstract] | ' | ' |
Weighted average useful life | '10 years | '10 years |
Gross carrying amount | 40.2 | 38.7 |
Accumulated amortization | -28.7 | -27.8 |
Net carrying amount | 11.5 | 10.9 |
Customer relationships (including distribution network) | ' | ' |
Finite-Lived Intangible Assets [Abstract] | ' | ' |
Weighted average useful life | '13 years | '12 years |
Gross carrying amount | 591.5 | 584.3 |
Accumulated amortization | -355.3 | -342.9 |
Net carrying amount | 236.2 | 241.4 |
Trade names | ' | ' |
Finite-Lived Intangible Assets [Abstract] | ' | ' |
Weighted average useful life | '7 years | '7 years |
Gross carrying amount | 3.6 | 2 |
Accumulated amortization | -0.3 | -0.1 |
Net carrying amount | 3.3 | 1.9 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' |
Carrying amount of indefinite-lived intangible assets | $338.50 | $338.40 |
Intangible_Amortization_Detail
Intangible Amortization (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Amortization [Abstract] | ' | ' |
Amortization of intangible assets | $13.50 | $12.50 |
Future_Amortization_Details
Future Amortization (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Future amortization expense | ' |
Future amortization expense, year one | $53.40 |
Future amortization expense, year two | 53.4 |
Future amortization expense, year three | 34.3 |
Future amortization expense, year four | 23.3 |
Future amortization expense, year five | $22.40 |
Other_Current_Liabilities_by_C
Other Current Liabilities by Category (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | $106.20 | $112.20 | ||
Customer advances | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 8.3 | 8.1 | ||
Sales rebates | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 15.9 | 22.7 | ||
Commissions | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 7.7 | 7.9 | ||
Restructuring and other similar charges | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 3.7 | [1] | 4.1 | [1] |
Product warranty | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 7.6 | [2] | 8.6 | [2] |
Risk management | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 9.5 | [3] | 9.1 | [3] |
Legal and environmental | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 2.9 | 4.5 | ||
Deferred income taxes | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 15.6 | 10.9 | ||
Taxes, other than income taxes | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 7.9 | 9.5 | ||
Income taxes payable | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | 11.8 | 11.2 | ||
Other | ' | ' | ||
Components of Other Current Liabilities [Line Items] | ' | ' | ||
Other Liabilities | $15.30 | $15.60 | ||
[1] | See more information related to the restructuring obligations within Note 3. | |||
[2] | See more information related to the product warranty obligations within Note 14. | |||
[3] | Includes projected liabilities related to losses arising from automobile, general and product liability claims. |
Summary_of_Debt_Details
Summary of Debt (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Debt Instruments [Abstract] | ' | ' | ||
Long-term debt, gross | $1,972.30 | $1,972 | ||
Current portion of long-term debt | 33.4 | 29 | ||
Long-term debt | 1,938.90 | 1,943 | ||
Other Debt [Member] | New Market Tax Credit | ' | ' | ||
Debt Instruments [Abstract] | ' | ' | ||
Long-term debt, gross | 37.4 | 37.4 | ||
Notes, Loans and Financing Receivable, Gross, Noncurrent | 27.6 | ' | ||
Other Debt [Member] | Other Subsidiary Debt [Member] | ' | ' | ||
Debt Instruments [Abstract] | ' | ' | ||
Long-term debt, gross | 15.8 | [1] | 11.4 | [1] |
Senior Notes [Member] | 8.875% Senior Notes due 2016 [Member] | ' | ' | ||
Debt Instruments [Abstract] | ' | ' | ||
Long-term debt, gross | 1.3 | 1.3 | ||
Credit Facility [Member] | Senior Secured Credit Facility [Member] | ' | ' | ||
Debt Instruments [Abstract] | ' | ' | ||
Long-term debt, gross | 1,917.80 | [2] | 1,921.90 | [2] |
Unamortized original issue discount | ' | 18.3 | ||
Term Loan Facility [Member] | Senior Secured Credit Facility [Member] | ' | ' | ||
Debt Instruments [Abstract] | ' | ' | ||
Unamortized original issue discount | $17.60 | ' | ||
[1] | In connection with the New Market Tax Credit incentive program, the Company also provided an aggregate $27.6 million in the form of a loan receivable. The aggregate loan receivable is presented within Other Assets on the condensed consolidated balance sheets as of JuneB 30, 2014 and MarchB 31, 2014. | |||
[2] | Includes an unamortized original issue discount of $17.6 million and $18.3 million at JuneB 30, 2014 and MarchB 31, 2014, respectively. |
LongTerm_Debt_Debt_refinancing
Long-Term Debt Debt refinancing (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Extinguishment of Debt [Line Items] | ' | ' | ||
Long-term debt, gross | $1,972.30 | $1,972 | ||
Credit Facility [Member] | Senior Secured Credit Facility [Member] | ' | ' | ||
Extinguishment of Debt [Line Items] | ' | ' | ||
Line of credit facility, maximum borrowing capacity | 2,215 | ' | ||
Long-term debt, gross | 1,917.80 | [1] | 1,921.90 | [1] |
Term Loan Facility [Member] | Senior Secured Credit Facility [Member] | ' | ' | ||
Extinguishment of Debt [Line Items] | ' | ' | ||
Line of credit facility, maximum borrowing capacity | 1,950 | [1] | ' | |
Revolving Credit Facility [Member] | Senior Secured Credit Facility [Member] | ' | ' | ||
Extinguishment of Debt [Line Items] | ' | ' | ||
Line of credit facility, maximum borrowing capacity | 265 | ' | ||
Long-term debt, gross | 0 | ' | ||
Senior Notes [Member] | 8.875% Senior Notes due 2016 [Member] | ' | ' | ||
Extinguishment of Debt [Line Items] | ' | ' | ||
Long-term debt, gross | $1.30 | $1.30 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | ' | ||
[1] | Includes an unamortized original issue discount of $17.6 million and $18.3 million at JuneB 30, 2014 and MarchB 31, 2014, respectively. |
Senior_Secured_Credit_Facility
Senior Secured Credit Facility (Details) (Senior Secured Credit Facility [Member], USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Credit Facility [Member] | Credit Facility [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] |
Senior Secured Leverage Ratio (Numerator) [Member] | Senior Secured Leverage Ratio (Denominator) [Member] | Rate | Eurocurrency Borrowings [Member] | Rate | Senior Secured Leverage Ratio (Denominator) [Member] | ||
Rate | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Debt, weighted average interest rate | ' | ' | ' | ' | 4.00% | ' | ' |
LIBOR floor | ' | ' | 1.00% | ' | ' | ' | ' |
Debt Instrument, basis spread on variable rate | ' | ' | ' | 3.00% | ' | ' | ' |
Step-down covenant terms, positive ratio | 3.25 | ' | ' | ' | ' | ' | 1 |
Step-up interest rate | ' | ' | ' | ' | -0.25% | ' | ' |
Covenant terms, company's ratio | 3.86 | 1 | ' | ' | ' | ' | ' |
Debt instrument, principal payments prior to maturity | ' | ' | $117 | ' | ' | ' | ' |
Debt instrument, periodic payment, principal | ' | ' | 4.9 | ' | ' | ' | ' |
Letters of credit outstanding, amount | ' | ' | ' | ' | $29.90 | $29.10 | ' |
Covenant terms, positive ratio | 7.75 | 1 | ' | ' | ' | ' | ' |
Debt_Modifications_Details
Debt Modifications (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Debt Instrument [Line Items] | ' | ' |
Loss on the extinguishment of debt | $0 | ($4) |
April 2013 Incremental Assumption Agreement [Member] | Term Loan Facility [Member] | Senior Secured Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Refinanced, Reduction to Effective Interest Rate | ' | 0.75% |
Repayments of Secured Debt | ' | 150 |
Loss on the extinguishment of debt | ' | -4 |
Retirement of Debt, Premium | ' | 0.8 |
Write off of Deferred Debt Issuance Cost | ' | 2.4 |
Retirement of debt, original issue discount | ' | $0.80 |
Other_Subsidiary_Debt_Details
Other Subsidiary Debt (Details) (Other Debt [Member], Accounts Receivable Securitization Program [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Other Debt [Member] | Accounts Receivable Securitization Program [Member] | ' |
Debt Instrument [Line Items] | ' |
Line of Credit Facility, Term | '5 years |
Line of Credit Facility, Remaining Borrowing Capacity | $100 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments Interest Rate Swap Details (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | Rate |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative, Notional Amount | $650 |
Derivative, Average Fixed Interest Rate | 2.55% |
Derivative, Floor Interest Rate | 1.00% |
Foreign_Currency_Forward_Contr
Foreign Currency Forward Contracts Asset Position (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Interest rate swaps | ' | ' |
Derivative [Line Items] | ' | ' |
Asset Derivatives | $8.70 | $2.70 |
Foreign currency forward contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Asset Derivatives | 0 | 0.1 |
Liability Derivatives | $0.40 | $0 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments Derivatives gain/losses in AOCI (Details) (Interest rate swaps, USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Interest rate swaps | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $3.70 | $1.70 |
Gain_or_Loss_Recognized_in_Inc
Gain or Loss Recognized in Income on Derivatives (Details) (Foreign currency forward contracts, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Foreign currency forward contracts | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Trading Gain (Loss) | ($0.40) | $0.30 |
Derivative_Fair_Value_Details
Derivative Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Liabilities: | ' | ' |
Foreign currency forward contracts | $0.40 | ' |
Interest rate swaps | 8.7 | 2.7 |
Total liabilities at fair value | 9.1 | 2.7 |
Assets: | ' | ' |
Foreign currency forward contracts | ' | 0.1 |
Total assets at fair value | ' | 0.1 |
Level 1 | ' | ' |
Liabilities: | ' | ' |
Foreign currency forward contracts | 0 | ' |
Interest rate swaps | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Assets: | ' | ' |
Foreign currency forward contracts | ' | 0 |
Total assets at fair value | ' | 0 |
Level 2 | ' | ' |
Liabilities: | ' | ' |
Foreign currency forward contracts | 0.4 | ' |
Interest rate swaps | 8.7 | 2.7 |
Total liabilities at fair value | 9.1 | 2.7 |
Assets: | ' | ' |
Foreign currency forward contracts | ' | 0.1 |
Total assets at fair value | ' | 0.1 |
Level 3 | ' | ' |
Liabilities: | ' | ' |
Foreign currency forward contracts | 0 | ' |
Interest rate swaps | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Assets: | ' | ' |
Foreign currency forward contracts | ' | 0 |
Total assets at fair value | ' | $0 |
LongTerm_Debt_Fair_Value_Detai
Long-Term Debt Fair Value (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Long-term Debt, Fair Value | $1,989.80 | $1,995.10 |
Warranty_Rollforward_Details
Warranty Rollforward (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Movement in Product Warranty Accrual [Roll Forward] | ' | ' |
Balance at beginning of period | $8.60 | $8.80 |
Charged to operations | 0 | 1.1 |
Claims settled | -1 | -0.9 |
Balance at end of period | $7.60 | $9 |
Loss_Contingencies_Details
Loss Contingencies (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Indemnification Resulting from Business Acquisition, Amount | $900 |
Damages from Product Defects [Member] | Zurn [Member] | ' |
Loss Contingencies [Line Items] | ' |
Claim Settlement Funding Period | '7 years |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Loss Contingency, Settlement Agreement, Consideration | 20 |
Loss Contingency, Settlement Agreement, Attorney Fees | 8.5 |
Asbestos Issue [Member] | Stearns [Member] | ' |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Indemnification Resulting from Business Acquisition, Percentage of Costs Paid to Date by Seller | 100.00% |
Loss Contingency, Pending Claims, Number | 1,000 |
Asbestos Issue [Member] | Prager [Member] | ' |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Loss Contingency, Pending Lawsuits, Number | 2 |
Insurance Coverage, Percentage of Costs Paid to Date by Insurance Providers | 100.00% |
Asbestos Issue [Member] | Falk [Member] | ' |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Indemnification Resulting from Business Acquisition, Percentage of Costs Paid to Date by Seller | 100.00% |
Loss Contingency, Pending Claims, Number | 100 |
Asbestos Issue [Member] | Zurn [Member] | ' |
Loss Contingency, Estimate [Abstract] | ' |
Estimated Insurance Recoveries | 36 |
Loss Contingency, Estimate of Possible Loss | 36 |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Loss Contingency, Pending Claims, Number | 26,000 |
Loss Contingency, Pending Lawsuits, Number | 7,000 |
Timeframe of Estimated Claims Disbursements | '10 years |
Estimated Claim Payments Made Over Specified Period | $29 |
Environmental Issue [Member] | Ellsworth Industrial Park Site [Member] | ' |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Loss Contingency, Number of Defendants | 10 |
Indemnification Resulting from Business Acquisition, Percentage of Costs Paid to Date by Seller | 100.00% |
Asbestos_Insurance_Coverage_De
Asbestos Insurance Coverage (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Supplementary Insurance Information [Line Items] | ' |
Insurance Policy Coverage | $250.50 |
Layer 1 [Member] | ' |
Supplementary Insurance Information [Line Items] | ' |
Insurance Policy Coverage | $174.50 |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Pension Benefits: | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' |
Service cost | $0.40 | $0.50 |
Interest cost | 7.7 | 7.3 |
Expected return on plan assets | -7.7 | -7.7 |
Amortization of prior service cost | 0 | 0.1 |
Net periodic benefit credit | 0.4 | 0.2 |
Other Postretirement Benefits: | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' |
Service cost | 0 | 0 |
Interest cost | 0.3 | 0.3 |
Amortization of prior service cost | -0.5 | -0.5 |
Net periodic benefit credit | ($0.20) | ($0.20) |
Pension_Plan_Contributions_Det
Pension Plan Contributions (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' |
Contributions by employer | $1.50 | $1.40 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' |
Stock-based compensation expense | $1.60 | $1.50 |
Total unrecognized compensation cost | $12.90 | ' |
Unrecognized compensation cost, period for recognition | '3 years 2 months 12 days | ' |
Stock_Option_Activity_Details
Stock Option Activity (Details) (USD $) | 3 Months Ended | |||||
Jun. 30, 2014 | Jun. 29, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ||
Outstanding at beginning of period | 8,652,834 | 9,450,197 | ' | ' | ||
Granted | 0 | 881,940 | ' | ' | ||
Exercised | -206,155 | -116,172 | ' | ' | ||
Canceled/Forfeited | -104,148 | -204,406 | ' | ' | ||
Outstanding at end of period | 8,342,531 | [1] | 10,011,559 | [1] | ' | ' |
Exercisable at end of period | 5,039,432 | [2] | 5,783,533 | [2] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ' | ' | $10.79 | $9.85 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0 | $19 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $7.19 | $5.24 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $20 | $21.36 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $10.76 | [1] | $10.47 | [1] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $5.45 | [2] | $5.34 | [2] | ' | ' |
Weighted average remaining contractual life of options outstanding | '5 years 2 months 12 days | ' | ' | ' | ||
Weighted average remaining contractual life of options exercisable | ' | '3 years 4 months 24 days | ' | ' | ||
[1] | The weighted average remaining contractual life of options outstanding at JuneB 30, 2014 is 5.2 years. | |||||
[2] | The weighted average remaining contractual life of options exercisable at JuneB 30, 2014 is 3.4 years. |
Related_Party_Transaction_Deta
Related Party Transaction (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 |
Related Party Transactions [Abstract] | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $0.20 | $0.90 |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 29, 2013 | Mar. 31, 2014 |
segments | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of Operating Segments | 2 | ' | ' |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' |
Net sales | $509.80 | $508.70 | ' |
Income (loss) from operations | 57.6 | 61 | ' |
Interest expense, net | -22.5 | -35 | ' |
Loss on the extinguishment of debt | 0 | -4 | ' |
Other expense, net | -1.3 | -6.2 | ' |
Income from operations before income taxes | 33.8 | 15.8 | ' |
Provision for income taxes | 21.8 | 2.2 | ' |
Net income | 12 | 13.6 | ' |
Non-controlling interest loss | -0.1 | -0.2 | ' |
Net income attributable to Rexnord | 12.1 | 13.8 | ' |
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' |
Depreciation and Amortization | 28.6 | 27.5 | ' |
Capital Expenditures | 8.7 | 7.8 | ' |
Total Assets | 3,354.40 | ' | 3,383.50 |
Process & Motion Control - Original Equipment Manufacturers/ End-Users [Member] | ' | ' | ' |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' |
Net sales | 166.3 | 168.8 | ' |
Process & Motion Control - Aftermarket [Member] | ' | ' | ' |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' |
Net sales | 138.3 | 145.8 | ' |
Process & Motion Control | ' | ' | ' |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' |
Net sales | 304.6 | 314.6 | ' |
Income (loss) from operations | 48.3 | 51.3 | ' |
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' |
Depreciation and Amortization | 19 | 18.3 | ' |
Capital Expenditures | 7.7 | 6 | ' |
Total Assets | 2,276.80 | ' | 2,251.70 |
Water Management - Water Safety, Quality, Flow Control and Conservation [Member] | ' | ' | ' |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' |
Net sales | 131.8 | 117.4 | ' |
Water Management | ' | ' | ' |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' |
Net sales | 205.2 | 194.1 | ' |
Income (loss) from operations | 18.5 | 18.7 | ' |
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' |
Depreciation and Amortization | 9.6 | 9.2 | ' |
Capital Expenditures | 1 | 1.8 | ' |
Total Assets | 1,063.70 | ' | 1,039 |
Corporate | ' | ' | ' |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' |
Income (loss) from operations | -9.2 | -9 | ' |
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' |
Total Assets | 13.9 | ' | 92.8 |
Water Management - Water Infrastructure [Member] | ' | ' | ' |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' |
Net sales | $73.40 | $76.70 | ' |